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2022 Annual Comprehensive Financial Report 1 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT 11 ip r :41 0 100,-.° , /flak w n�, F � obi s fir 4 ' CP Njill°1111111"iiiiitilik I alp �Sys 4 }; AhC44/ f;1(5. T E X A S B/ue Sk r<rinlden Opportim iies 1 940-761-7462 FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2022 `/ 1300 SEVENTH ST.WICHITA FALLS,TX 76301 WWW.WICHITAFALLSTX.GOV CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2022 ISSUED BY: DEPARTMENT OF FINANCE CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xv GFOA Certificate of Achievement xvi Organizational Chart xvii City Council& List of Principal Officials xviii-xix FINANCIAL SECTION Independent Auditor's Report 1-3 Management's Discussion and Analysis(Required Supplementary Information) 4-14 BASIC FINANCIAL STATEMENTS: Statement of Net Position A-1 15 Statement of Activities A-2 16 Balance Sheet-Governmental Funds A-3 17 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position A-4 18 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds A-5 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities A-6 20-21 Statement of Net Position-Proprietary Funds A-7 22-23 Statement of Revenues, Expenses and Changes in Net Position- Proprietary Funds A-8 24 Statement of Cash Flows-Proprietary Funds A-9 25-26 Statement of Fiduciary Net Position A-10 27 Statement of Changes in Fiduciary Net Position A-11 28 Notes to the Financial Statements 29-69 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule-General Fund B-1 70 Schedule of Changes in Net Pension Liability and Related Ratios— Texas Municipal Retirement System B-2 71 Schedule of Contributions—Texas Municipal Retirement System B-3 72 Schedule of Changes in Net Pension Liability and Related Ratios— Wichita Falls Firemen's Relief and Retirement Fund B-4 73 Schedule of Contributions—Wichita Falls Firemen's Relief and Retirement Fund B-5 74 Schedule of Changes in Net OPEB Liability and Related Ratios— City of Wichita Falls Retiree Health Care Plan B-6 75 Schedule of Contributions—City of Wichita Falls Retiree Health Care Plan B-7 76 Notes to the Required Supplementary Information 77-78 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS(CONT'D.) Exhibit Page COMBINING FINANCIAL STATEMENTS: Nonmajor Governmental Funds: Combining Balance Sheet C-1 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 80 Budgetary Comparison Schedule—Community Development Block Grant Fund C-3 81 Budgetary Comparison Schedule—Section 8 Housing Fund C-4 82 Budgetary Comparison Schedule—Home Investment Partnership Agreement Fund C-5 83 Budgetary Comparison Schedule—MPEC/Hotel/Motel Tax Fund C-6 84 Budgetary Comparison Schedule—Golf Fund C-7 85 Budgetary Comparison Schedule—Debt Service Fund C-8 86 Nonmajor Enterprise Funds: Combining Statement of Net Position D-1 87 Combining Statement of Revenues, Expenses and Changes in Fund Net Position D-2 88 Combining Statement of Cash Flows D-3 89-90 Internal Service Funds: Combining Statement of Net Position E-1 91 Combining Statement of Revenues, Expenses and Changes in Fund Net Position E-2 92 Combining Statement of Cash Flows E-3 93 Component Units: Combining Statement of Net Position F-1 94 Combining Statement of Activities F-2 95 SUPPORTING SCHEDULES: Combined Schedule of Bonded Debt and Interest Maturities G-1 96 Combined Schedule of Bonds Payable G-2 97-101 Debt Service Coverage—Revenue Bonds G-3 102 Capital Assets Used in the Operation of Governmental Funds- Schedule By Function and Activity G-4 103 Capital Assets Used in the Operation of Governmental Funds- Schedule of Changes By Function and Activity G-5 104 Regional Airport Fund—Capital Assets and Accumulated Depreciation G-6 105 Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation G-7 106 Transit Fund—Capital Assets and Accumulated Depreciation G-8 107 Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation G-9 108 Sanitation Fund—Capital Assets and Accumulated Depreciation G-10 109 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS(CONT'D.) Exhibit Page Water and Sewer Fund—Capital Assets and Accumulated Depreciation G-11 110 Waterpark Fund—Capital Assets and Accumulated Depreciation G-12 111 Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation G-13 112 Duplicating Services Fund—Capital Assets and Accumulated Depreciation G-14 113 Information Technology Fund—Capital Assets and Accumulated Depreciation G-15 114 Wichita Falls Economic Development Corporation—Capital Assets and Accumulated Depreciation G-16 115 Wichita Falls 4B Sales Tax Corporation—Capital Assets and Accumulated Depreciation G-17 116 STATISTICAL SECTION (UNAUDITED) Net Position By Component—Last Ten Fiscal Years H-1 117 Changes in Net Position—Last Ten Fiscal Years H-2 118-119 Fund Balances,Governmental Funds—Last Ten Fiscal Years H-3 120 Changes in Fund Balances,Governmental Funds—Last Ten Fiscal Years H-4 121 Tax Revenues By Source,Governmental Funds—Last Ten Fiscal Years H-5 122 Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years H-6 123 Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years H-7 124 Principal Property Taxpayers—Current Year and Nine Years Ago H-8 125 Property Tax Levies and Collections—Last Ten Fiscal Years H-9 126 Ratios of Outstanding Debt by Type—Last Ten Fiscal Years H-10 127 Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years H-11 128 Direct and Overlapping Governmental Activities Debt H-12 129 Computation of Legal Debt Margin—Last Ten Fiscal Years H-13 130 Pledged Revenue Coverage—Water and Sewer Revenue Bonds— Last Ten Fiscal Years H-14 131 Demographic Statistics—Last Ten Fiscal Years H-15 132 Principal Employers—Current Year and Ten Years Ago H-16 133 Full-Time Equivalent City Government Employees by Function/Program— Last Ten Fiscal Years H-17 134 Operating Indicators by Function/Program—Last Ten Fiscal Years H-18 135 Capital Asset Statistics by Function/Program—Last Ten Fiscal Years H-19 136 Graphics: Cash and Investments I-1 137 Total Bonds Payable 1-2 138 General Obligation Bonds Payable 1-3 139 Revenue Bonds Payable 1-4 140 General Fund Equity 1-5 141 Comparison of Tax Levy and Collections 1-6 142 Revenues by Source—FYE 9/30/22 1-7 143 Expenditures by Function—FYE 9/30/22 1-8 144 General Governmental Revenues(General Fund Only) 1-9 145 General Governmental Expenditures(General Fund Only) 1-10 146 INTRODUCTORY SECTION FINANCE DEPARTMENT 5',/(5 TEXAS Nue,5,kie .4o/dat OPyortunrties March 30, 2023 The Honorable Mayor, Members of the City Council, City Manager and Citizens of Wichita Falls,Texas, We are pleased to submit the Annual Comprehensive Financial Report of the City of Wichita Falls, Texas for the fiscal year ended September 30, 2022, together with the opinion of our independent certified public accountants, Edgin, Parkman, Fleming & Fleming, PC, whose report is included. The Finance Department prepared this report to present the financial position of the City. The financial statements and supporting schedules have been prepared in accordance with generally accepted accounting principles and meet the requirements of the State of Texas and the City Charter. Management assumes full responsibility for the completeness, fairness, and reliability of the information contained in this report, based on a comprehensive framework of internal controls established for this purpose. We believe the data presented here is accurate in all material aspects. It is presented to fairly set forth the financial position and results of operation of the City, as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Edgin, Parkman, Fleming & Fleming, PC, issued an unmodified opinion on the City's financial statements for the year ended September 30, 2022. The Independent Auditor's Report may be found on page 1 of this document. Management's Discussion and Analysis (MD&A) immediately follows the Independent Auditor's Report in this document. The MD&A provides additional detail and a narrative overview and analysis of the financial statements. It should be read in conjunction with the Basic Financial Statements and the Notes to the Basic Financial Statements. CITY OF WICHTA FALLS PROFILE The City of Wichita Falls is located in the south-central United States in north-central Texas. The City was incorporated in 1889 and now encompasses 70.1 square miles. The US Census for 2020 lists the City's population at 102,988.1 1 U.S.Census Bureau,https://www.census.gov/quickfacts/geo/chart/wichitafallscitytexas/PST045221,January 24,2023 Wichita Falls is linked to major southwestern, western, and mid-western cities by Interstate 44, U.S. Highways 82, 281, 277, 287, and Texas State Route 79. The city is approximately 130 miles northwest of the Dallas/Fort Worth Metroplex, 15 miles from the Red River that marks the Texas/Oklahoma border, and 125 miles south of Oklahoma City. The city is located in the cross- timbers area of the gently rolling north-central plains and is dissected by the Wichita River. Due to the city's geographic location, Wichita Falls serves as a regional economic hub for North Texas and south-central Oklahoma. Wichita Falls is the county seat of Wichita County and the major population center in North Texas. Neighboring counties include Archer and Clay. COMMUNITY PROFILE. WICHITA FALLS By most accounts, The City of Wichita=a s i. .__.mbrtao y nest:ed in Wichita Falls can ; :. �,. the northeast corner of: e panhandle/Plains area be summed up of North Texas.Wichita ra s is an economically with two words; progressive city. and •r:gin a to commerce and pleasant and h.•i • • iroustry with worldwlae a lcres:s Located in.and comfortable. ,^„.�� a 4 a 5 + :_ountyseatof Car-,,\Vichita Falls has ai r;asroximate paaa a'102.988.and is the f ' ,f h • _. -Os;Or0Sperau, 11.Texas and considered The central business district is 5 46'35'IbCI'' 1r Sheppard Air Force Base.which is home to the �--' • Air Force's largest technical training wing and Euro-NATO Joint Jet Pilot Training (ENJJPT) program. The City has several institutions of higher learning.an eager workforce.a strong xar' ; international presence through Sheppard Air 1 ^i Force Base.a community spirit geared toward j . famiy and friends. and a desire to see this thriving city continue to grow and prosper. Wichita=a s u aoout 15 \t I ,/ Wichita Falls experiences Annually, miles (24Kr south of , a humid subtropical temperatures climate. featuring 'or'g of 100 �.,a-at-, 115 mi s\ hot and -ur-id occur (185,sm)nor;n west of I summers.and cool approximately Fort Worth. Texas and 140 mi winters. The city has some of the 28 days (225'arV: southwest of Oklahoma highest sur"r-er daily maximum Year.with102 City.0-.a-oma.The City hasa total temperatures in the entire U.S. Hof area 701 souare miles Wichita Tempera:ures-ave hit 100 =(38 C:as temperatures Fa s is ess than two hours early as Marc- 27. and as ,ate as at 90'F or or-- =ort Worth and Octooer 17.Winters are mild.with on y higher. _r ore or;e.a snCWy days a season. 2 ECONOMIC CONDITION AND ACTIVITY Wichita Falls has successfully diversified its economy to include new manufacturing, government, medical services, retail, and service-related commerce. This diversification is in addition to the more typical North Texas industries of agriculture and oil and gas production. The Wichita Falls Metropolitan Statistical Area (MSA) houses a robust manufacturing sector, with many companies having employment in excess of 100 persons. The MSA is a metropolitan area in North Texas, which covers three counties,Archer, Clay, and Wichita. 2 City of Wichita Falls,Annual Operating Budget, FY 2022-23 available online at wichitafallstx.gov The Total Gross Domestic Product (GDP) of the Wichita Falls, TX MSA totaled $7,096,972,000 in 2021. This is an increase from the original 2020 estimate of$6,432,554,000 which was later updated to $6,556,197,000. From the most recently updated numbers released by the St. Louis Fed, the total increase year over year is 8.24%. The below graph shows the year over year increase or decrease in GDP for the MSA from years 2002 to 2021. Shaded areas of the chart indicate recessions. The large dip seen in 2015 occurred when the area was experiencing a historic drought that dropped lake levels significantly.3 FRED —Total Gross Domestic Product for Wichita Falls,TX(MSA) 100 7.5 5.0 E 2.5 f� 0.0 U 2.5 -5.0 -7.5 2004 2006 2008 2010 2012 2014 .716 2018 2020 Shaded areas indicate U.S.recessions Source-U.S.Bureau of Economic Analysis Fred-stlouisfed.org The largest portion of the MSA production includes Health, Social Services, and Manufacturing.'4The total population of the MSA decreased from 151,485 in 2019 to 149,013 in 2021. The unemployment rate for the Wichita Falls MSA is 3.50% in November of 2022. This is down from a high of 10.00% in April of 2020. 5'6 FRED --Resident Population in Wichita Falls.TX(M SA) 151 50 149 148 147 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Shaded areas indicate U.S.recessions- Source:U.S.Census Bureau fred_stlouisfed org 3 U.S. Bureau of Economic Analysis,Total Gross Domestic Product for Wichita Falls,TX(MSA) [NGMP48660],retrieved from FRED,Federal Reserve Bank of St. Louis Link:https://fred.stlouisfed.org,January 23,2022. 4Trading Economics,www.tradingeconomics.com,accessed 3/3/2022. 5 United States Bureau of Economic Analysis,www.bea.gov,accessed January 25,2023. The reader is directed to the cited sources.As this information changes,the US Bureau of Economic Analysis updates and revises this data. It is imperative that the reader is aware of this fact and sources this information as it may change. 6 U.S.Census Bureau, Resident Population in Wichita Falls,TX(MSA)[WIFPOP],retrieved from FRED,Federal Reserve Bank of St. Louis;https://fred.stlouisfed.org/series/WIFPOP,January 25,2023. III The economy is based on mineral production, retail trade, manufacturing, agribusiness, and government installations. Principal sources of agricultural income include cattle, cotton, and wheat. The City has several institutions of higher learning, a strong international presence through Sheppard Air Force Base, an eager workforce, all with a community spirit geared toward family, friends, and a desire to see that this thriving city continues to grow and prosper. The central business district is 5 miles from Sheppard Air Force Base. Sheppard Air Force Base was established in 1941 and is the most diverse training installation for the Air Force. The base is home to the Air Force's largest technical training wing and Euro-NATO Joint Jet Pilot Training program, which trains combat pilots for 14 NATO partners. Sheppard Air Force Base employed approximately 19,928 active duty and civilian personnel in 2021. The base has a gross domestic product of $2,183,933,000 and total disposable personal income of $1,236,660,000. Sheppard Air Force Base occupies a total of 5,736 acres. The City's major University is Midwestern State University (MSU). Established in 1922, MSU is a public university that currently enrolls 5,797 students. MSU offers 49 undergraduate programs and 27 graduate programs. The University has a student to faculty ratio of 16:1. 8 The City is also home to a branch of Vernon College, a fully accredited community college. Vernon College enrolls approximately 2,773 students. The College serves a 12-county area, which includes Archer, Baylor, Clay, Cottle, Foard, Hardeman, Haskell, King, Knox, Throckmorton, Wichita, and Wilbarger.9 The City's largest employers include the North Texas State Hospital-Wichita Falls Branch, Midwestern State University, James V. Allred Prison, Sheppard Air Force Base and United Regional Healthcare System. The City operates a Multi-Purpose Events Center(MPEC), which includes a coliseum, exhibit hall, and an agricultural arena/show barn. In the current year, the City has collaborated with a private investor to complete a hotel and convention center.This collaboration will include a privately-owned hotel with a private investment of over $48 million and a public conference center, supported with 4B Sales Tax funds. Construction on this facility began during the 2020-21 fiscal year. lV CIO r �..� Ni-II is l 1111 ill�■ 110 NI: 1111 ■u ■■ BIi uIII 1'' ■11 ■I1�: ®II.I ■Il NII Ii -'== - , r II 7 https://comptroller.texas.gov/economy/economic-data/military/2021/sheppard-afb.php,January 25,2023. 8 Midwestern State University,Quick Facts,https://msutexas.edu/about/quick-facts/index.php March 10,2022 9 Vernon College, https://www.collegetuitioncompare.com/edu/229504/vernon- co Ilege/en roll ment/#:—:text=Vernon%20College%20has%20a%20total%20of%202%2C773%20en rolled,All%202%2C773%20 students%20are%20enrolled%20into%20undergraduate%20programs, March 10,2022 iv CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT The City of Wichita Falls is a Council-Manager form of government organized under the Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from separate districts, one member at large, and an elected Mayor. The City Council appoints the City Manager, City Attorney, Municipal Court Judge, and City Clerk. All other staff members work under the direction of the City Manager. The City provides a full range of municipal services to the community. These services include public safety, fire protection, public works, health and welfare, parks and recreation, cemeteries, library, public improvement, engineering, planning and zoning, and general administrative services. As part of public works services, the City provides water, sewer, and sanitation for its citizens. The City also provides a full range of transportation options, including bus service, a regional and municipal airport, and a trolley. All funds included within the Financial Section of this report are considered to be financially accountable by the City and its elected and appointed officials. The financial statements of the City include all governmental activities, business-type activities, organizations, and functions as required by generally accepted accounting principles. The criteria considered in determining which activities are reported include: the organization's legal status, appointment of the organization's boards, the City's ability to impose its will on the organization, the ability to impose a financial benefit/burden on the City, and fiscal dependency by the organization on the City. The criteria used by the City for including activities in preparing its financial statements are in conformity with Governmental Accounting Standards Board (GASB) Statement 14, "The Financial Reporting Entity," as amended by Statement 61. FINANCIAL INFORMATION & FINANCIAL POLICY A further discussion of the City's Financial Policies may be found in the Notes to the Basic Financial Statements included in this document beginning on page 29. The City's financial direction begins with the City's Charter, which is the basis for all financial policies the City implements. The City maintains financial policies for general operations, which include policies for financial management and fund balances, budget compliance, debt issuance and management, accounts payable, water service, and purchasing, among others. Additional information about financial policies may be found in the City's Adopted Operating Budget in the Policy Statement section. In developing and evaluating the City's accounting system, the City Manager considers the adequacy of internal control as deemed appropriate. Internal control is designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by the City Manager. The City believes that its internal control adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. The Annual Operating Budget is proposed by the City Manager and approved by the City Council following public discussion. Budgetary control is maintained at the department (class)/fund level by v the Finance Department through the use of an integrated enterprise resource planning solution. All legally required funds are budget annually. In instances when budgetary transfers are necessary, management control of the operating budget is maintained at the fund and department level. The City Manager must approve transfers within a department of the same fund. Transfers across unlike Departments (outside of class) or funds must be approved by the City Council. A summary overview of the City's budget process is presented in the graphic below. The process starts in March and concludes with Budget Adoption in September. The City's fiscal year runs from October 1 to September 30. BUDGET CALENDAR Budget Kick-Off City Budget Manager Adoption Budget Hearings Public Budget Hearings Workshop with City Council Public Notice Bu.4 Comp, � City Council Budget Hearings 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, 2021, and related appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation. In September 2012, the City adopted a fund balance policy for the General Fund, Water/Sewer Fund, and the Sanitation Fund. The policy requires the City to maintain at least 20% of expenditures in unassigned fund balance in the General Fund, 17% of expenditures (less debt service expenses) in the Water/Sewer Fund, and 15% of expenditures in the Sanitation Fund. If funds fall below these percentages, plans are created to replenish these funds. These financial statements reflect that the policy has been followed in the General Fund, Water/Sewer Fund, and the Sanitation Fund. The City also maintains an informal policy to limit tax-supported debt to no more than 5% of total assessed property value or $1,500 per capita. As of September 30, 2022, the City's ad valorem tax- supported general obligation debt, totaled $43.3 million and equated to 0.74% of the assessed property value. vi Funds included in annual budgeted appropriations are listed below: Major/Non- Fund Fund Type Major Description Appropriated GOVERNMENTAL FUNDS: General Fund General Fund Major General Fund Yes Debt Service Fund Governmental Non-major Debt Service Yes Hotel/Motel fund Governmental Non-major Special Revenue Yes Water&Sewer Capital Fund Governmental Non-major Capital Fund Yes Microfiltration and Reverse Osmosis Fund Governmental Non-major Capital Fund Yes Lake Ringgold Fund Governmental Non-major Capital Fund Yes Community Development Fund Governmental Non-major Special Revenue Yes Section 8 Housing Fund Governmental Non-major Special Revenue Yes HOME Fund Governmental Non-major Special Revenue Yes Transportation Planning grant Fund Governmental Non-major Special Revenue Yes State Routine Airport Maint.Fund Governmental Non-major Special Revenue Yes Community&Rural Health Fund Governmental Non-major Special Revenue Yes TX Healthy Communities Governmental Non-major Special Revenue Yes Infectious Disease Fund Governmental Non-major Special Revenue Yes Tuberculosis Grant Governmental Non-major Special Revenue Yes Immunization Grant Program Fund Governmental Non-major Special Revenue Yes Comprehensive Cancer Control Program Fund Governmental Non-major Special Revenue Yes WIC Fund Governmental Non-major Special Revenue Yes Emergency Management Fund Governmental Non-major Special Revenue Yes PROPRIETARY FUNDS: Water&Sewer Fund Proprietary Major Enterprise Yes Sanitation Fund Proprietary Major Enterprise Yes Regional Airport Fund Proprietary Major Enterprise Yes Kickapoo Airport Fund Proprietary Non-major Enterprise Yes Transit Fund Proprietary Non-major Enterprise Yes Storm Water Fund Proprietary Non-major Enterprise Yes Waterpark Fund Proprietary Non-major Enterprise Yes Golf Course Fund Proprietary Non-major Enterprise Yes Fleet Fund Proprietary Non-major Internal Svc.Fund Yes Information Technology Fund Proprietary Non-major Internal Svc.Fund Yes Duplicating Services Fund Proprietary Non-major Internal Svc.Fund Yes Additional funds not appropriated in this budget include,funds used to account for long term debt,funds held in fiduciary funds, information on all funds may be found in the City's Annual Comprehensive Financial Report. GENERAL GOVERNMENTAL FUNCTIONS The City's two largest revenue sources are property tax (ad valorem tax) and sales tax. The City Council is responsible for adopting a tax rate annually. All eligible property within the City is subject to assessment, levy, and collections of a continuing, direct ad valorem tax. The City Council works closely with City staff to analyze and adopt rates that assist the City, the tax payer and the community at large. The following discussion highlights the property and sales tax information for the next fiscal year. As a reminder, the City may levy taxes only in accordance with the budget. The tax rate consists of two components, the amount of taxes to pay maintenance and operation expenditures and the amount of taxes to pay debt service (interest and sinking). The table below shows the total of each over the past five years. The City's property tax rate during the 2021-22 fiscal year was 0.760928 cents per$100 of assessed value. vii Average Property Tax Maintenance Interest&Rate &Operations Sinking Total Rate $Change %Change Annual %Change 2017-18 0.687815 0.018165 0.705980 - 0.00% 2018-19 0.687102 0.042778 0.729880 0.024 3.39% 2019-20 0.721571 0.041752 0.763323 0.033 4.58% 2020-21 0.722736 0.040587 0.763323 - 0.00% 2021-22 0.726565 0.034363 0.760928 (0.002) -0.31% 1.51% The adopted total tax rate is applied to the total Certified Value of the City to generate the total tax levy. This year the City saw increases in the Certified Valuation not seen in over a decade. This property tax rate generated approximately $43.2 million in revenues, of this amount $41.3 million was received into the City's General Fund for general city operation. This represents a collection rate of 99.42% of budget. The property tax base for FY 2023 is $6.6 billion, which is a 13.58% increase from the $5.8 billion tax Property Tax Values (in Billions) base in FY 2022. Over the past five $6.596 years, the City has $5.807 seen an average $5.075 $5.276 $5 456 annual growth rate of 6% in Property Tax Value, and a 10- year annual average growth rate of 4%. Home prices have reached record highs in the last several year. 2018-19 2019-20 2020-21 2021-22 LULL In 1998, voters in Wichita Falls approved a %-cent economic development sales tax. The passage of the sales tax for economic development created two separate corporations, the Wichita Falls Economic Development Corporation (WFEDC), previously referred to as a 4A Corporation, and the 4B Sales Tax Corporation. The WFEDC was created to fund industrial development projects, manufacturing, research, and development. These funds may be used to fund military base realignment, job training classes, and public transportation. The 4B Corporation may fund all projects the 4A Corporation may fund, in addition to parks, museums, sports facilities, conference facilities and affordable housing opportunities. Sales tax collected in accordance with the voter-approved %-cent economic development sales tax totaled $10,366,796 and is divided evenly between the two separate sales and economic development corporations for a total of $5,183,398 each. These corporations are discretely presented component units of the City. A further discussion of component units may be found in the Notes to the Basic Financial Statements, beginning on page 29 of this document. viii The City receives 2.0%of the sales tax collected within City limits. During $30,273,000 the 2021-22 fiscal year, the Citys, 2,a61 collected $31.0 million in sales taxes $24,s94,430 $25,205 998 $25,332,885 4 for general operations. The City ended the year with sales tax collections approximately 9.65% higher than the prior year. These collections do not include the sales tax, which is collected, and directed, t0 the City's discretely presented 2018.19 2019-20 2020-21 2021-22 Est.2021-22 component units as those funds are Actual Actual Actual Budget voter-approved for a specific and dedicated purpose outside of general city use. CITY RECEIPT OF ARPA FUNDS/PLANNNED USE: The City of Wichita Falls received $29,091,650 in American Rescue Plan Act Funds. The funds were received in equal installments May of 2021 and in May of 2022. The City waited for final US Treasury Guidance on expenditure of the funds to make final decisions regarding use. The City completed a thorough and public process to discuss options to use the funds with the City Council. Following 3 public meetings, the City Council approved a non-binding resolution of June 14, 2022 which set forward their plan for expenditure of the funds. On February 17, 2023 the City Council received an update on project status. Below is a list of the projects the City Council plans to undertake using these funds. The majority of the City's available funds fall into the "Lost Revenue" category of the grant guidance. Additional information may be found on the City's website. Project Name Administration -grant accountant, grant administration consultant Community Assistance - arts community, assistance to community non-profits, mental health services Community space health and wellness improvements: City/County Health Department COVID contact tracing and police dispatch overtime Community space health and wellness improvements, increased tourism, assistance to the arts: Memorial Auditorium, City/County Health Department, Lake Wichita, Athletic complex improvements, downtown lighting Broadband infrastructure Contactless payment systems Water system improvements Fire department personal protective equipment MAJOR INITIATIVES FOR FISCAL YEAR 2021-22: 1. The City implemented the following pay plan recommendations in FY 2022: • A flat salary increase of 2%for all employees. • An increase to the minimum pay, per job, for employees who, with the 2% increase, ix were still below the minimum pay for the grade of work they were completing. • Adjustments to steps for police officers and fire fighters whose pay, with the above increases, still did not reach the grade and step for their currently held positions. • Implementation of the merit based pay increase program at 2.5%for all employees. These pay recommendations tie directly to the Strategic Plan goal of "Improving Employee Recruitment and Retention" and maintaining a trained, committed, and valued workforce. In total, the implementation of the plan increased payroll costs by approximately $4.4 million citywide. 2. The FY 2022 budget included the use of one-time funds (surplus) in the General Fund to complete these one-time projects. Project Amount Police Department Parking Lot $66,550 Work on First Floor Bathroom 90,000 Memorial Auditorium Security Cameras 65,000 Golf Course Irrigation Improvements 61,000 Health Dept. Horse Trailer 8,000 Library Security System Upgrade 50,000 ADA Bathroom at Police Department 25,000 Tasers for Police Department 550,000 Playground Upgrade 50,000 Underground Street Light Boring Work 75,000 Traffic Signal Overhaul 100,000 Outdoor Warning System Circuit Board 21,450 Outdoor Warning Unit Amplifier 9,000 Emergency Cell Communications Unit 32,000 Total $1,203,000 3. The FY 2022 budget moved the operations of the MPEC from Spectra Management back to City Management and provides for a total of fifteen (15) new FTE's in the Hotel/Motel Fund. The budget also provided for six new positions in the Water&Sewer Fund. 4. The FY 2022 budget committed funds for future capital improvement and equipment needs. Together with the one-time funds, these commitments decreased unencumbered fund balance by$5,300,300 while the City maintained its fund balances to policy. Strategic Planning: In March 2021, the City Council and City staff conducted a 2-day strategic planning workshop at the MPEC to ensure the best possible decisions for Wichita Falls are made over the next few years. The Azimuth Group, Inc. was contracted to facilitate and document the results of this collective planning and priority-setting effort. The Strategic Plan is an example of the operation of the "Council- Manager" form of government in that the City Council adopts the Strategic Plan and its policies, and the City Manager is responsible for implementation. x The City Council ratified the plan and its goals on May 18, 2021. The plan describes the five highest priority items (those items with the greatest opportunity for continued improvement) as (1) Accelerate Economic Growth, (2) Provide Quality Infrastructure, (3) Redevelop Downtown (4) Efficiently Deliver City Services and (5)Actively Engage & Inform the Public. During the 2021-22 fiscal year,the City's efforts toward these goals included the following: In support of the goal, Provide Quality Infrastructure, the City issued $17.3 million in voter-approved General Obligation Bonds in 2018 to work on this project. While progress was slowed due to the Pandemic, it continued into the 2020-21 fiscal year. This issuance allowed for the extension of Maplewood Avenue from Lawrence Road to McNeil Avenue (estimated at $1.6 million), the widening of Taft Boulevard from FM 369 to FM 2380 (estimated at $4.7 million), and routine capital street repairs throughout the city limits (estimated at$11 million). In support of the goal, Efficiently Deliver City Services, in the fiscal year 2017-18, the Information Technology Department, Finance Department, and Human Resources Department began implementation of new Finance and Human Resources software applications with technology that integrates with the Utility Billing and Collections and Municipal Court systems. The 2018-19 fiscal year was the first year this software was used for budget creation. Since that time, the City has expanded and further integrated functionality in the system. In the 2019-20 fiscal year, the City integrated all payroll functions into the new system and increased the usage of the system in the Human Resources Department. Implementation of this software is now complete. The City continues, however, to implement smaller modules within the software to further streamline internal processes. These include grant management and project accounting, among others. The cost of the new systems was approximately $840,000 for the Finance and HR applications. These funds were provided for in the Information Technology fund and were saved over time to allow the City to implement this software solution without impact on available general revenues in any one year. During the 2021-22 fiscal year, this software was upgraded to the newest version available. This allowed the City to further integrate functionality and offer additional services to the community. In prior years, the City, in conjunction with Rolling Plains Management Corporation, applied for and received nearly $10 million in a grant awarded from the Federal Transit Administration (FTA) Section 5339 Buses and Bus Infrastructure Investment Grant Program to design and construct a bus maintenance and repair facility. The current facility was completed in 1984 and is located in the Central Services Complex. Given the expansion of route services over the years and an increase in the number of buses owned by the City, the Public Transportation Division has outgrown its current location. Additionally, Rolling Plains Management Corporation has a need for these services and desires to enter into a joint venture agreement to construct this facility to accommodate both organizations. The location for this facility is 2004 Old Windthorst Road, which previously housed an old fire station used by the City's Radio staff, as well as 7 acres to the south and west of this building. To move the project forward, the old fire station was decommissioned and demolished. The project began construction in early 2020 and continued despite the COVID-19 Pandemic. The completed facility opened during the 2021-22 fiscal year and will eventually included the following: • Wichita Falls Transit System administrative offices • Rolling Plains Management Corporation administrative offices (funding secured by their staff through TxDOT) xi • Shared-use facilities to include dispatch, restrooms, locker room, break room, conference room, and wellness room to be built as part of this grant application • Administrative space to accommodate social service organizations • Repair/Maintenance facility with seven pull-through bays • Bus Wash facility • Fueling facilities to accommodate both diesel and unleaded • Covered parking for buses • Parking to accommodate 60 buses FY 2023 BUDGET HIGHLIGHTS: Overall, property tax levies are expected to increase by 3.63%. The FY 2023 property tax base is anticipated to be 13.58% higher the prior year due to a strong area economy in recent years. The budget reduces the City's property tax rate from .760928 to .694321, or by 8.75%. Sales Tax receipts have shown significant growth since the pandemic and are expected to increase 21.11%compared to the previous year's budget and 1.34%from the FY 2022 collections. Service charges are expected to increase by 6.71% mostly due to the increase in water rates. The adopted budget includes a 5% increase to water rates for FY 2023 and the currently adopted fee ordinance includes a 5% increase in the following year in order to help keep up with the increased cost of chemicals and other supplies due to inflation, help maintain market competitive salaries for staff, and increase fund balance reserves to help ensure adequate funds for emergency needs that may arise. The examples of increased cost, shared during the City's FY 2023 Pre-Budget Workshop are listed below. The City has held water rates the same for 8 years in a row, absorbing all of the cost increases for labor, supplies, and construction over this time period. • Water main replacement cost has more than doubled since 2020, up an average of 111%. • 2020 Cost= $70.50/LF • Today's Cost= $148.00/LF • Sewer line replacement has increased 52% per linear foot since 2020. • 2020 Cost=$124/LF • Today's Cost= $188/LF • Due to the age of city water and sewer lines, additional funding is needed for replacement, repair and maintenance. The rising cost of goods and services through 9.5 inflation is a key issue that the adopted budget 9 8.5 is facing. While the City is now seeing 8.3 82 8.5 decreases in inflation, the costs are still hoovering at 6.5% above the prior year. These 75 increases in inflation affect all operations and a.5 the buying power of the City. 10 ' II6.5 Jan 2022 Apr 2022 Jul 2022 Oct2022 E,... Interest income is earned from reserves that �.._ «. _., are invested with local government investment pools and fixed income securities. In recent years, low interest rates meant that interest earnings were below .25%. Recent actions by the Federal Reserve increasing interest rates to 10 https://tradingeconomics.com/united-states/inflation-cpi accessed January 25,2023. xii help curb inflation have changed the outlook for the markets and the estimated earnings for the FY 2023 are 2.6%. This generates a $2,238,447 or 839.94% increase in this category. This budget includes across the board cost of living adjustments of 5.0%. This change will provide a 5.0% pay increase for all eligible employees. These pay recommendations tie directly to the Strategic Plan goal of Improving Employee Recruitment and Retention and maintaining a trained, committed, and valued workforce. This adopted budget includes the use of one-time funds (surplus fund balance) in the General Fund and other funds to complete these one-time projects: Project Amount Police Tactical SWAT Vehicle(MRAP) $340,000 Golf Course Pavilion and Range Lighting(gap funding) 311,000 Castaway Cove Water Park New Attraction (gap funding) 575,000 MPEC Co-Promotional Show Fund 100,000 MPEC Exhibit Hall Remodel Projects(Venue Bond gap funding) 2,589,000 Street Improvements 2,000,000 Police In-Car Video Infrastructure 800,000 Parks Master Plan 200,000 Parks and Recreation Equipment Replacement 525,000 Health Dept. Reception Area Remodel 350,000 Public Safety Facilities Needs Assessment 200,000 Contingency 700,000 General Fund Total $8,690,000 Water&Sewer Capital 1,400,000 Sanitation Fund—Landfill Scale&Compactor 1,929,287 Stormwater Fund-Quail Creek, Duncan Channel, Rhea Road 5,667,471 Golf Course Fund-Irrigation and Capital Improvements 205,867 IT Fund-Public Safety Radio Replacement 1,416,250 Grand Total One Time Uses $19,308,875 OTHER INFORMATION Independent Audit The City Charter requires an annual audit of the books of account, Government Finance Ol •.s,-- — financial records, and transactions of all administrative Certificate of departments of the City by Certified Public Accountants. The Achievement for Excellence accounting firm of Edgin, Parkman, Fleming & Fleming, PC was in Financial selected by the Mayor and City Council to satisfy this charter Reporting requirement. The auditors' report on the basic financial Prmeoled statements and combining fund statements and schedules is to Wich included in the financial section of this report. In addition to City ufTexastaFalls meeting the requirements set forth in the City Charter, the audit For its Amos/Comprelenerve also was designed to meet the requirements of the federal Single ForF113211Zi31 Repeal the Fre al Year Faded Audit Act Amendments of 1996 and related Uniform GuidanceSeptember*2C01 xiii P err .tEo 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 GOVERNMENT FINANCE OFFICERS ASSOCIATION Financial Reporting to the City of Wichita Falls for its Comprehensive Distinguished Annual Financial Report for the fiscal year ended September 30, 2021. Budget Presentation This was the 27th consecutive year that the City of Wichita Falls has Award achieved this prestigious award. In order to be awarded this Certificate PRESENTED =° of Achievement, a government must publish an easily readable and City of Wichita Falls Texas efficiently organized comprehensive annual financial report. This For he Fiscal leer Beawvg report must satisfy both generally accepted accounting principles and October 01,2021 applicable legal requirements. This Certificate of Achievement is valid for a period of one year only. We believe that our current Annual F E.cenirne Dlrvnr Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. The City has also earned the Distinguished Budget Award from the Government Finance Officers Association of the United States and Canada for the past three years. As stated by GFOA, "This award represents a significant achievement by the entity. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation." The City of Wichita Falls is dedicated to increasing fiscal transparency. The City participates in the Texas State Comptrollers Transparency Star program. The program recognizes government entities for going above and beyond in their transparency efforts. The program awards a total of 5 stars for entities that accomplish the following: • Open their books not only in their traditional finances, but also in the areas of contracts and procurement, economic development, public pensions, and debt obligations; and • Provide clear and meaningful financial information not only by posting financial documents, but also through summaries, visualizations, downloadable data, and other relevant information. 4rQJt�y4°,0 r nc scarenc y#�. 7 Acknowledgments My appreciation and thanks are extended to the personnel of the Finance Department who made this report possible. I also extend my appreciation to the City Council, City Manager, City xiv Department Directors and staff for their contributions to the sound financial management of the City. Respectfully submitted, Jessica Williams, MPA, CPFO Chief Financial Officer xv Government Finance Officers Association Certificate for Excellence in Financial Reporting Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Wichita Falls Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30,2021 Ca P 7 :u Executive Dircetor/CEO The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2021. This was the 27th consecutive year that the City of Wichita Falls has achieved this prestigious award. In order to be awarded this Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. This Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 4 4 II t • ti M1 t * Il+�g4 tt1 ..���ttt Y i✓ ,,.G �1��. � f e A I r . . r Ariwr xvi City of Wichita Falls Organization Chart GED City Council • Municipal Court Judge City Manager City Attorney Assistant City Manager Assistant City Manager Parks & Recreation ; Strategic Planning • Waterpark/Golf Course • Development Services • Information Technology Property Administration • Building Maintenance • Housing/Planning/Code Public Works Department • Human Resources Street Maintenance (Employee Benefits • Engineering • Personnel • Sanitation •• Risk Management J • Public Utilities J Communications & Marketing • Fire Department Convention & Visitors Bureau • 1 Public Information Fire Marshal's Division • Multi-Purpose Event Center J Emergency Management • Operations Division Finance Department . C \ Safety & Training J • Accounting• • Budgeting & Finance Police Department • Municipal Court Community Operations • Purchasing Public Safety Training • Utility Collections J Technical Services ; Aviation, Traffic & Transportation Investigation Operations • Health Department Airports Environmental Health Traffic Engineering Laboratory Services Transportation Planning Animal Services Fleet Maintenance Public Health/Nursing Public Transportation WIC Administration xvii City of Wichita Falls City Leadership as of 09/30/2022 Stephen Santellana Mayor Bobby Whiteley Michael Smith Larry Nelson At Large& Mayor Pro Tern District 1 District 2 •►yw� • Jeff Browning Tim Brewer Steve Jackson District 3 District 4 District 5 nf,{( y, 41) ;aPCV n 7Y 0,4 / Fs' Darron Leiker City Manager xvii CITY OF WICHITA FALLS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30,2022 TITLE NAME Mayor Stephen Santellana Mayor Pro-Tem &At Large Bobby Whiteley District 1 Councilor Michael Smith District 2 Councilor Larry Nelson District 3 Councilor Jeff Browning District 4 Councilor Tim Brewer District 5 Councilor Steve Jackson City Manager Darron Leiker City Attorney Kinley Hegglund Municipal Court Judge Diane Dockery City Clerk Marie Balthrop Assistant City Manager Paul Menzies Assistant City Manager Blake Jurecek Director of Aviation/Traffic and Transportation John Burrus Chief Financial Officer Jessica Williams Director of Public Health Lou Kreidler Police Chief Manuel Borrego Fire Chief Ken Prillaman Director of Public Works and Public Utilities Russell Schreiber ME t II min or lir Milg! 4 �4:4n i�i'�'ii lr r i- te r `d„,4 d P rkf24,7 i d+ 8` T 1. P- d,n. �■1! 1 xix FINANCIAL SECTION I. • EDGIN, PARKMAN, FLEMING & FLEMING, PC CERTIFIED PUBLIC ACCOUNTANTS ail1401 HOLLIDAY ST.,SUITE 216 • P.O.Box 750 MICHAEL D.EDGIN,CPA WICHITA FALLS,TEXAS 76307-0750 DAVID L.PARKMAN,CPA PH.(940)766-5550 • FAx(940)766-5778 A.PAUL FLEMING,CPA Independent Auditor's Report on Financial Statements The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Wichita Falls, Texas (the City) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of September 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Wichita Falls, Texas, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedule—General Fund, the schedules on the Texas Municipal Retirement System, the Wichita Falls Firemen's Relief and Retirement Fund, and the Wichita Falls Retiree Health Care Plan be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining financial statements, supporting schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining financial statements and supporting schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining financial statements and supporting schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued under separate cover our report dated March 28, 2023, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Respectfully submitted, eldIrrm, TOA4A-1.441 7 Edgin, Parkman, Fleming & Fleming, PC March 28, 2023 3 MANAGEMENT'S DISCUSSION AND ANALYSIS CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 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, 2022. The management of the City offers it here to the readers of its financial statements. Readers should use the information presented in conjunction with additional information furnished in our letter of transmittal,which is in the Introductory Section of this Annual Comprehensive Financial Report. Financial Highlights The assets and deferred outflows of the City of Wichita Falls exceeded its liabilities and deferred inflows on September 30,2022,by$474,397,503(net position). The net position for the City increased by$41,362,066 over the prior year. This increase is a result of an increase in net position of$24,480,148 from the current fiscal year business-type activities and an increase in net position of $16,881,918 from the current fiscal year governmental activities. The unrestricted net position for Governmental Activities was ($70,492,162), while the Business-type Activities had an unrestricted net position of $56,488,735, for an overall unrestricted net position of ($14,003,427). Governmental Activities increased by $14,304,208 in unrestricted net position from the prior year, while Business-type Activities unrestricted net position increased by $11,041,112 from the prior year. The increase in unrestricted net position in the Governmental Activities is due to increases in the City's total Assets and Deferred Outflows of Resources of$4,702,232 offset by an increase in total Liabilities and Deferred Inflows of $883,935. Assets increased by $10,433,789 due to increases in cash and cash equivalents,investments, and capital assets not being depreciated. Investments increased$19,629,602 due to implementation of an active investment portfolio in accordance with the State of Texas Public Funds Investment Act. Deferred Outflows of Resources decreased $5,731,557 due to changes in actuarial assumptions in the Fire Fighters Pension Fund and a decrease on Deferred losses on bond refunding. The City completed two refunding transactions in FY 2021-22. The City's total assets also benefited from increases in fund balance in the City's General Fund of$8,629,522 to $46,061,227, of which $45,732,320 is unassigned. The City's General Fund benefited from increased property valuations. Over the past five years, the City has seen an average growth rate of 3.28% in the Certified Property Tax Values.The economy in the Certified Property Values(in Billions) area is strong, with home prices seeing record growth. In the 2021-22 fiscal year, property tax values increased 6.45%. Increases include an increase in sales tax collections. Sales Tax is affected by changes in the economy. Sales Tax receipts have steadily recovered month over month since the onset of the pandemic.Total sales tax collections exceeded $31 million in general fund receipts.This is an increase of$2.7 million over the prior year collections. Liabilities in the City's General Fund decreased by $415,885 primarily due to decreased accrued payroll costs at year end.The City's final pay day for the fiscal year occurred on 9/30/2022. Business-type Activities unrestricted net position increased by $11,041,112. Assets and Deferred Outflows increased $12,505,479, primarily due to increases in cash and cash equivalents and capital assets net of accumulated depreciation. Cash and cash equivalents increased by $7,175,316. Of this amount, the largest increase was in the Non-major Enterprise funds, which in total increased $2,356,568 coupled with an increase in the Sanitation fund of $2,208,158 over the prior year. The Sanitation fund benefited from increased usage and a change in business practice at the landfill which increased traffic to the landfill. Capital assets net of accumulated depreciation increased $8,630,361. An increase in construction activity and project completion assisted this increase. 4 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 These funds have also received additional capital equipment over the past several years. As interest rates began rising toward the end of the fiscal year, the City began seeing a return on interest income nearing levels collected prior to COVID. This assisted many funds with slight revenue increases. Internal Balances also increased by $1,069,599. These increases were offset by changes in liabilities. Overall, liabilities decreased by$11,831,873, primarily due to decreases in net pension liability after one year and net OPEB liability after one year. Investment returns early in the fiscal year drove a portion of this change. At September 30, 2022, the City's governmental funds reported combined ending fund balances of $64,589,622. Of this amount, $45,645,939, or 70.7%, is available for spending at the government's discretion (unassigned fund balance). At the end of the current fiscal year, the unassigned fund balance for the General Fund was$45,732,320, or 54.3%of total General Fund expenditures of$84,223,883. During the 2021-22 fiscal year,the City's total debt decreased by$16,325,778. The City retired$11,365,000 in Combination Tax and Revenue Bonds, of which $7,595,000 resulted from the issuance of "General Obligation Refunding Bonds,Taxable Series 2021", issued to refund the remaining outstanding Combination Tax and Revenue Certificates of Obligation Taxable Series 2010 and portions of the outstanding Combination and Tax Certificates of Obligation,Series 2013A. As a result of this refunding, the City reduced debt service payments by a total of$749,231,with an economic gain (difference between the present value of the debt service payments on the old and new debt present value of savings)of$681,211. On October 1, 2021, the City also issued $1,675,000 in bonds titled "General Obligation Refunding Bonds, Series 2021. These bonds were issued to refund the remaining outstanding Combination Tax and Revenue Certificates of Obligation, Taxable Series 2011. As a result of this refunding, the City reduced debt service payments by a total of$222,887, with an economic gain (difference between the present value of the debt service payments on the old and new debt present value of savings) of $202,982. Additional information on the City's debt service may be found in the Notes to the Basic Financial Statements. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The reporting focus is on the City as a whole and on individual major funds. It is intended to present a comprehensive view of the City's financial activities. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report contains other supplementary information in addition to the basic financial statements. Government-wide Financial Statements The government-wide financial statements, which can be found on pages 15-16 of this report, include the Statement of Net Position (Exhibit A-1) and the Statement of Activities (Exhibit A-2). These statements are designed to provide readers with a broad overview of the City's finances in a manner similar to a private-sector business. Both are prepared using the economic resources focus and the accrual basis of accounting,meaning that all current year's revenues and expenses are included regardless of when cash is received or paid. Thus, revenues and expenses are reported in these statements for some items that will result in cash flows in future fiscal periods(e.g., uncollected taxes and earned but not used vacation leave). The Statement of Net Position presents information on all of the City's assets and liabilities, including capital assets and long-term obligations. The difference between the City's assets and deferred outflows and liabilities and deferred inflows is reported as net position. Over time, the increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Other indicators of the City's financial position should be taken into consideration, such as the change in the City's property tax base and condition of the City's infrastructure (e.g., roads, traffic 5 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 signals,water and sewer lines,etc.),in order to more accurately assess the overall financial condition of the City. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. It focuses on both the gross and net costs of government services. This statement includes all current year revenues and expenses. The Statement of Net Position and the Statement of Activities divide the City's activities into three types: Governmental activities— Most of the City's basic services are reported here, including police, fire, parks and recreation, public works, health, traffic and transportation, community development and planning, duplicating services, information technology, health insurance claims, and general administration and finance. The Multi-Purpose Events Center and Champions Golf Course are also reported as governmental activities. Property taxes, sales taxes, franchise fees, and various grant funds provide the majority of financing for these activities. Business-type activities—Activities for which the City charges fees to customers to pay most or all of the cost of a service it provides are reported as business-type activities. The City's business-type activities include water and wastewater treatment and distribution,solid waste collection and disposal, regional and municipal airports, transit system, stormwater drainage improvements, fleet maintenance services, and water park operations. Component Units — Five legally separate organizations for which the City is financially accountable are included in these statements as discretely presented component units. These organizations include the Wichita Falls Economic Development Corporation, Wichita Falls 4B Sales Tax Corporation, Wichita Falls Reinvestment Zone#2,Wichita Falls Reinvestment Zone#3,and the Wichita Falls Reinvestment Zone#4. Fund Financial Statements The City of Wichita Falls, like other state and local governments, uses fund accounting to provide more detailed information about the City's most significant funds, not the City as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Some funds are required to be established by state law or bond covenants. However,the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities. All of the funds of the City can be divided into three categories:governmental funds, proprietary funds,and fiduciary funds. Governmental Funds—These funds are used to account for the majority of the City's activities, which are essentially the same functions reported as governmental funds in the government-wide statements. However, unlike the government-wide financial statements, governmental fund financial statements are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements focus on near-term inflows and outflows of expendable resources, as well as expendable resources available at the end of the fiscal year for future spending. Such information may be useful in evaluating a government's near-term financing requirements. The focus of the governmental fund's financial statements is narrower than that of the government-wide financial statements. Therefore, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide statements. By doing so, readers may better understand the long-term impact of the government's short-term financing decisions. Both the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison. The reconciliation explains the differences between the government's activities reported in the government- wide statements and the information presented in the governmental fund's financial statements. 6 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 The City of Wichita Falls maintains 16 individual governmental funds. Information for the General Fund and the American Rescue Plan Act Fund are presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances because they are considered major funds of the City. Data for the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds are provided in the Combining Financial Statement Section of this report. The Basic Governmental Funds Financial Statements can be found on pages 17-21 of this report. Proprietary Funds—When the City charges customers for services it provides,whether to outside customers or to other units within the City, the activities are generally reported in proprietary funds. The City of Wichita Falls maintains two different types of proprietary funds: enterprise funds and internal service funds. • Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer operations, sanitation collection and disposal services, regional and municipal airports, transit operations,stormwater drainage improvements,and water park operations. • Internal service funds are an accounting device used to report activities that provide supplies and services to other City programs, such as fleet maintenance, print shop services, information technology, and employee benefit trust. Because these services benefit both governmental and business-type functions, they have been allocated between governmental and business-type activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the business-type activities shown in the government-wide financial statements, only in more detail and include some of the internal service fund-type activities. The proprietary fund financial statements provide separate information for the Water and Sewer Fund, the Sanitation Fund, and the Regional Airport Fund since they are considered major funds of the City. The non-major proprietary funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for each of the non-major proprietary funds are provided in the Combining Financial Statement Section of this report. Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting method used for fiduciary funds is much like that used for proprietary funds. Custodial funds are a component of fiduciary funds and are used to account for situations where the City's role is purely custodial, such as receipt, temporary investment, and remittance of fiduciary funds to individuals, private organizations, or other governments. The City maintains one fiduciary fund. This fund is a custodial fund used to account for property that has been abandoned or unclaimed pending escheatment to the State of Texas. Notes to the Financial Statements The Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. These notes can be found on pages 29-69 of this report. Government-Wide Financial Analysis The City's combined net position was $474,397,503 as of September 30, 2022, an increase of$41,362,066 or 9.55% from the prior year. Using the tables below, an analysis of the net position of the City can be made. The largest portion of the City's net position, $466,748,385, or 98.39%, is reflected in capital assets (land and improvements, buildings, infrastructure, machinery, and equipment), less any related debt 7 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 used to acquire those assets that is still outstanding. The City uses these assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position,$21,652,545,or4.56%,represents resources that are subject to external restrictions on how they may be used. Net Position (in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Current and Other Assets $103,721 $82,606 $97,105 $89,234 $200,826 $171,840 Capital Assets 189,289 186,906 397,468 393,811 586,757 580,717 Total Assets 293,010 269,512 494,573 483,045 787,583 752,557 Deferred Outflows of Resources 34,248 39,980 4,973 4,484 39,221 44,464 Long Term Liabilities 142,975 184,964 112,491 126,153 255,466 311,117 Other Liabilities 38,385 24,613 6,951 7,810 45,336 32,423 Total Liabilities 181,360 209,577 119,442 133,963 300,802 343,540 Deferred Inflows of Resources 46,238 17,137 5,366 2,677 51,604 19,814 Net Position: Net Investment in Capital Assets 160,340 160,442 306,409 293,604 466,749 454,046 Restricted 9,812 7,260 11,840 11,837 21,652 19,097 Unrestricted (70,492) (84,924) 56,489 45,448 (14,003) (39,476) Total Net Position $99,660 $82,778 $374,738 $350,889 $474,398 $433,667 8 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 CHANGES IN NET POSITION (in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Revenues: Program Revenues: Charges For Services $11,562 $10,271 $76,039 $70,330 $87,601 $80,601 Operating Grants and Contributions 17,046 17,666 4,311 8,224 $21,357 25,890 Capital Grants and Contributions 1,876 1,997 3,048 874 $4,924 2,871 General Revenues: Property Taxes 45,230 43,020 - - 45,230 43,020 Sales Taxes 31,100 28,362 - - 31,100 28,362 Other Taxes/Fees 8,915 8,422 - - 8,915 8,422 Investment Earnings 679 48 237 24 916 72 Miscellaneous 566 521 2 - 568 521 Total Revenue 116,974 110,307 83,637 79,452 200,611 189,759 Expenses: Administrative Services 16,701 16,023 - - 16,701 16,023 Police 25,454 26,119 - - 25,454 26,119 Fire 22,600 26,145 - - 22,600 26,145 Parks and Recreation 5,810 5,135 - - 5,810 5,135 Accounting/Finance 722 760 - - 722 760 Community Development 7,498 6,955 - - 7,498 6,955 Public Works 8,621 7,895 - - 8,621 7,895 Health 7,066 6,229 - - 7,066 6,229 Traffic and Transportation 3,076 2,412 - - 3,076 2,412 MPEC 5,134 2,849 - - 5,134 2,849 Interest and Fees on Long-term Debt 1,456 1,696 - - 1,456 1,696 Regional Airport - - 2,929 2,753 2,929 2,753 Kickapoo Airport - - 1,643 1,186 1,643 1,186 Transit - - 3,124 2,255 3,124 2,255 Sanitation - - 10,857 10,138 10,857 10,138 Water and Sewer - - 33,729 33,126 33,729 33,126 Stormwater Drainage - - 1,148 1,138 1,148 1,138 Waterpark - - 1,681 1,605 1,681 1,605 Total Expenses 104,138 102,218 55,111 52,201 159,249 154,419 Increase(Decrease) in Net Position 12,836 8,089 28,526 27,251 41,362 35,340 Before Transfers Transfers 4,046 6,490 (4,046) (6,490) - - Increase(Decrease) in Net Position 16,882 14,579 24,480 20,761 41,362 35,340 Net Position-Beginning,original 82,778 68,027 350,892 330,128 433,670 398,155 Prior Period Adjustment - 172 (634) - (634) 172 Net Position-End of Year, Restated $99,660 $82,778 $374,738 S350,889 $474,398 $433,667 9 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Governmental Activities — Governmental Activities increased the City's net position by $6,881,918. The increase in net position in the Governmental Activities is primarily due to an increase in the City's Cash and Cash Equivalents and Investments of$21,584,282. This increase is primarily due to implementation of the City's active investment portfolio which invested $20M Par in US Treasuries over a laddered 36-month strategy. The City saw strong sales tax and property tax revenues during the year, which contributed to increased tax collections of$4,947,057. The City also saw a return to earned investment income which had fallen during COVID. During the fiscal year, the City collected $844,287 more in investment activity in the Governmental Funds than the prior year. Expenses increased during the fiscal year as the impact of COVID decreased,allowing the City to return to more standard operations. While this increase was expected, it is important to note that operations continue to lag pre-pandemic levels,with staffing and supply chain issues remaining. Increased gains during the fiscal year were offset with these increased expenses. Pension related costs due or payable within and after one year also increased significantly. Business-Type Activities— Business-type Activities increased the City's net position by $24,480,148. This increase is primarily due to an increase in Net Investment in Capital Assets of$8,630,361 and an increase in Cash and cash equivalents of $7,175,316. Total liabilities decreased $11,831,873. Of this, Long Term Liabilities, Portion Due or Payable After One Year decreased $9,210,025. This decrease is primarily reflective of the City's payment of bonds in the current year. The City's net investment in capital assets decreased $15,680,195,further increasing the impact to net position. Financial Analysis of the City's Funds Governmental Funds—The focus of the governmental funds is to provide information on near-term inflows, outflows,and balances of expendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2022, the City's governmental funds reported combined fund balances of$64,589,622, which is an increase of$7,102,883 from the prior year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year,the unassigned fund balance of the General Fund was $45,732,320, an increase of$8,550,929 from the prior year. As a measure of the General Fund's liquidity,it may be useful to compare both the unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 54.30%of total General Fund expenditures,while the total fund balance represents 54.69%of total General Fund expenditures. A discussion of sales and property taxes received in the fiscal year, which were the primary divers of these increases is included at the beginning of this MD&A and included in the Letter of Transmittal. The City received a total of$29.1 million in American Rescue Plan Act funds.These funds will be used for a variety of projects that address health,safety,tourism and benefits to the non-profit community. On June 14, 2022 the City Council adopted a non-binding resolution showing their support for a variety of projects for which the funds will be used.At this time,the Council has committed for use,$24,391,740 in funds with $4,699,910 remaining to be allocated at a future date. A list of projects the Council has approved is listed in the Letter of Transmittal. Proprietary Funds—The financial statements of the proprietary funds provide information for two types of funds:the business type(enterprise)funds and the internal service funds. The accounting principles applied to proprietary funds are similar to that of the private sector. Consequently, with the exception of the allocation of internal service fund net income or loss, the net position and changes in net position of the enterprise funds in these financial statements are identical with the net position and changes in net position reflected in the business-type activities in the city-wide presentation. 10 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 The City's internal service funds include the Fleet Maintenance Fund, Employee Benefit Trust Fund, Duplicating Services Fund, and the Information Technology Fund. At the close of September 30, 2022,the net position for the City's internal service funds was $41,321,129, an increase of$2,472,722. This change is due primarily to an increase in cash and cash equivalents of$1,540,886. This increase is seen primarily in the Employee Benefit Trust fund for which contributions were increased to offset the cost of rising health care plans. Current liabilities also decreased due to decreases in accrued vacation and sick leave. General Fund Budgetary Highlights The final amended expenditure budget for the General Fund, including transfers out, was increased by $3,171,403 from the original adopted budget in fiscal year 2021-22. This increase was primarily due to the carry-forward of projects from the prior year. Due to supply chain and staffing issues, much of the street improvement project anticipated for the fiscal year was moved into the next year. The project was ongoing at year end and the City's Charter directs staff to carry-forward funds for ongoing capital projects in this manner. The City also carried-forward funds for completion of the 7th Street Railroad Crossing, a street repair project required due to damage sustained in Winter Storm Uri. These are funds legally committed to the completion of these projects. Actual revenues in the General Fund for the 2021-22 fiscal year were $91,133,951, which was$7,046,139 over final budgeted revenues. Actual expenditures in the General Fund for the 2021-22 fiscal year were $84,223,883,which was$6,088,502 below final budgeted expenditures. Revenues remained steady during the fiscal year with record breaking sales tax collected as inflation hit the local economy. Property valuations have remained high as housing sales remained robust until later in the summer of 2022. Expenditure decreases reflect ongoing capital projects not completed during the year which required these costs to be carried-forward into the next year. The above paragraph discusses these projects. Staffing challenges have continued as the City is working its way out of the pandemic. These salary savings contributed to savings throughout the City. During the year, the City struggled to fill open positions. To offset this,the City held multiple hiring events, however, hiring lower paid positions remains a challenge. Capital Assets and Debt Administration Capital Assets—The City's investment in capital assets for its governmental and business-type activities as of September 30, 2022, amounts to $586,757,393 (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: • Street Rehabilitation and Utility Improvement Projects • Completion of the new Travel Administration/Maintenance Facility Project • Replacement of the Cypress Water Treatment Plant Microfiltration System • Construction in progress of various Trail Projects • Construction in progress of various Multipurpose Event Center Projects 11 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Capital Assets,net of Accumulated Depreciation (in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Land $10,753 $10,753 $11,072 $11,072 $21,825 $21,825 Land Betterments 15,286 15,593 34,583 35,275 49,869 50,868 Buildings,Systems and 41,419 43,010 320,806 314,493 362,225 357,503 Improvements Infrastructure 105,384 106,276 1,265 1,282 106,649 107,558 Machinery and Equip 6,850 7,675 2,208 2,185 9,058 9,860 Furniture and Fixtures - 1 - - - 1 Motor Vehicles - - 19,972 19,206 19,972 19,206 Right-to-use leased assets - - 2,237 2,300 2,237 2,300 Construction in Progress 9,597 3,827 5,325 10,298 14,922 14,125 Totals $189,289 $187,135 $397,468 $396,111 $586,757 $580,946 Additional information on the City's capital assets can be found in Note 7 on pages 45-46 of this report. Long Term Debt - At the end of the current fiscal year, the City had total bonded debt, notes, and capital leases outstanding of $137,796,472. During the 2021-22 fiscal year, the City's total debt decreased by$16,325,778. As of September 30, 2022, Moody's Investor's Service had assigned a credit rating of Aa2 for the City's General Obligation Bonds and a rating of A3 for the City's Water and Sewer System Revenue Bonds. Standard & Poor's had assigned a credit rating of AA for the City's General Obligation Bonds and a rating of A+for its Water and Sewer System Revenue Bonds. The rating for the Water and Sewer System Revenue Bonds was increased in November of 2019 due to the system's strengthened finances. 12 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Outstanding Debt at Year-End (in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 General Obligation Bonds $26,751 $26,275 $5,809 $ - $32,560 $26,275 Combination Tax and 12,455 16,665 29,435 36,590 41,890 53,255 Revenue Bonds Venue Tax 2,585 2,635 - - 2,585 2,635 Revenue Bonds Utility System Revenue Bonds 38,660 46,670 38,660 46,670 Premiums on Bonds 1,460 1,524 3,002 4,345 4,462 5,869 Notes Payable 3,431 4,010 14,208 15,408 17,639 19,418 Right-to-use Leases - - 2,876 2,901 2,876 2,901 Total 46,682 51,109 93,990 105,914 140,672 157,023 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, 2022, was $.760928 per$100 which means that the City has a tax margin of$1.489072 per$100, and could generate up to $86,485,054 additional tax revenue a year from the present assessed valuation of $5,807,983,335 before the limit is reached. The current ratio of general bonded debt outstanding to the assessed value of all taxable property is.56%. Additional information about the City's long-term debt can be found in Note 12 on pages 60-64 of this report. Economic Factors and Next Year's Budget and Rates The total operating budget for the City includes all expenditures, revenues, and transfers anticipated in the coming year. This includes expenditures for items funded outside of the City, like federal grants for large capital projects and funds for programs received from other sources. The budget also includes the adoption of payments for debt services. The total Adopted City Operating Budget for the 2022-23 fiscal year is $233,816,962, which is an increase of$38,367,087, or 19.63%,from the 2021-22 Adopted Operating Budget of $195,449,875. This budget includes the use of$19.3 million in available one-time surplus funds. These funds result from collections over a fund's Council adopted fund balance policy. As the City entered into this fiscal year, mounting pressure from rising inflation became challenging. During the creation of the fiscal year 2022-23 budget inflation rose to 40-year highs. The City has seen the price of chemicals, required to keep the water system operating increase over 100%. Staffing continues to be challenging with approximately 80 positions unfilled at the end of fiscal year 2021-22. Challenges addressing growing gaps in pay between public and private sector employees are also straining resources.The fiscal year 2022-23 budget addresses these issues and many of the City's long-term capital infrastructure needs. Strong sales tax collections in the prior year created available one-time resources. 13 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Increases in costs in the Water&Sewer fund were addressed with a City Council adopted increase to retail water and sewer rates,the first increase to these rates in over 8 years. The entire Budget may be found on the City's website at www.wichitafallstx.gov. Moving forward, into the FY 2023-24 budget year,the City continues to monitor changing economics. The local economy is projected to remain strong due to the addition of a Hotel and Conference Center downtown and the completion of two new high schools. The City received additional federal funds to combat the COVID-19 Pandemic from the American Rescue Plan which the City Council has committed to funding non-profits, travel and tourism improvements and needed health and safety projects. Management strongly encourages the reader to review the Finance Department's available resources online. Requests for Information This financial report is designed to provide a general overview of the finances of the City of Wichita Falls for all those with an interest in the government's finances. Questions concerning any of the information provided in this report, or request for additional financial information, should be addressed to the City Finance Department, 1300 Seventh Street,Wichita Falls,Texas 76301. 14 BASIC FINANCIAL STATEMENTS EXHIBIT A-1 CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30,2022 Primary Government Governmental Business-type Component Activities Activities Total Units Assets Cash and cash equivalents $ 73,550,801 $ 55,629,667 $ 129,180,468 $ 53,330,953 Investments 19,629,602 - 19,629,602 - Receivables(net): Taxes and assessments 1,241,708 - 1,241,708 - Customer and trade - 8,119,446 8,119,446 - Government agencies 12,388,076 1,151,324 13,539,400 1,882,512 Other 1,983,602 730,438 2,714,040 388,600 Internal balances (14,305,492) 14,305,492 - - Inventory 216,048 1,992,808 2,208,856 - Prepaid items 797,398 486,722 1,284,120 14,311 Other assets 104,641 - 104,641 - Restricted assets: Cash and cash equivalents 8,114,799 14,688,619 22,803,418 - Capital assets not being depreciated 20,349,227 16,397,685 36,746,912 2,517,331 Capital assets net of accumulated depreciation 168,939,702 381,070,779 550,010,481 8,467,239 Total assets 293,010,112 494,572,980 787,583,092 66,600,946 Deferred Outflows of Resources Pension-related 31,874,387 1,954,121 33,828,508 - OPEB-related 2,178,475 823,833 3,002,308 - Deferred losses on bond refundings 195,185 2,194,761 2,389,946 - Total deferred outflows of resources 34,248,047 4,972,715 39,220,762 - Liabilities Accounts payable-trade 3,163,980 1,532,348 4,696,328 2,494,505 Accrued payroll 1,249,800 357,705 1,607,505 Accrued interest payable 197,304 388,387 585,691 - Payable to government agencies 600,158 68,538 668,696 - Estimated health claims payable 891,315 - 891,315 - Other liabilities 4,147,907 1,118,560 5,266,467 868,142 Unearned revenue 28,134,842 - 28,134,842 - Customer deposits - 3,485,750 3,485,750 - Long-term liabilities: Portion due or payable within one year 7,416,733 12,281,014 19,697,747 560,000 Portion due or payable after one year 50,397,243 88,895,511 139,292,754 27,883,264 Net pension liability(payable after one year) 74,352,128 7,226,750 81,578,878 Net OPEB liability(payable after one year) 10,808,905 4,087,601 14,896,506 Total liabilities 181,360,315 119,442,164 300,802,479 31,805,911 Deferred Inflows of Resources Pension-related 45,182,304 4,966,683 50,148,987 - OPEB-related 1,055,664 399,220 1,454,884 - Total deferred inflows of resources 46,237,968 5,365,903 51,603,871 - Net Position Net investment in capital assets 160,339,899 306,408,486 466,748,385 175,548 Restricted for: Perpetual care(nonexpendable) 1,639,863 - 1,639,863 - Debt service(expendable) 1,769,521 11,840,406 13,609,927 - Federal grant programs(expendable) 4,691,928 - 4,691,928 - Tourism(expendable) 1,710,827 - 1,710,827 - Unrestricted (70,492,162) 56,488,735 (14,003,427) 34,619,487 Total net position $ 99,659,876 $ 374,737,627 $ 474,397,503 $ 34,795,035 See accompanying notes to the basic financial statements. 15 CITY OF WICHITA FALLS, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2022 Program Revenues Operating Charges for Grants and Functions/Programs Expenses Services Contributions Primary government: Governmental activities: Administrative services $ 16,701,365 $ 5,556,508 $ 269,224 Police 25,454,226 393,772 139,389 Fire 22,599,594 60,360 682,841 Parks and recreation 5,810,019 334,990 1,154,162 Accounting/finance 722,292 - - Community development 7,498,256 2,231,598 6,167,954 Public works 8,620,682 39,213 496,760 Health 7,065,470 1,131,018 3,927,292 Traffic and transportation 3,076,440 109,655 2,680,076 Multi-Purpose Events Center 5,134,193 1,705,277 35,500 Interest and fees on long-term debt 1,455,563 - 1,492,654 Total governmental activities 104,138,100 11,562,391 17,045,852 Business-type activities: Regional Airport 2,929,361 1,921,572 450,093 Kickapoo Airport 1,642,866 1,127,421 - Transit 3,123,714 538,637 3,861,105 Sanitation 10,857,203 16,901,006 - Water and sewer 33,728,464 50,122,232 - Stormwater drainage 1,147,940 3,751,220 - Waterpark 1,681,431 1,677,399 - Total business-type activities 55,110,979 76,039,487 4,311,198 Total primary government $ 159,249,079 $ 87,601,878 $ 21,357,050 Component units: Community development $ 8,891,283 $ 720 $ 1,764,467 General revenues and transfers: Taxes: Property tax Sales tax Franchise fees Hotel occupancy tax Beverage tax Investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net position-beginning,as originally stated Prior period adjustment Net position-beginning,as restated Net position-ending See accompanying notes to the basic financial statements. 16 EXHIBIT A-2 Net(Expense)Revenue and Changes in Net Position Capital Primary Government Grants and Governmental Business-type Component Contributions Activities Activities Total Units $ - $ (10,875,633) $ - $ (10,875,633) $ - (24,921,065) - (24,921,065) - (21,856,393) - (21,856,393) - (4,320,867) - (4,320,867) - (722,292) - (722,292) - 901,296 - 901,296 - 893,093 (7,191,616) - (7,191,616) - (2,007,160) - (2,007,160) - (286,709) - (286,709) - 982,955 (2,410,461) - (2,410,461) - 37,091 - 37,091 - 1,876,048 (73,653,809) - (73,653,809) - 44,000 - (513,696) (513,696) - (515,445) (515,445) - 1,276,028 1,276,028 - 6,043,803 6,043,803 - 666,819 - 17,060,587 17,060,587 - 2,337,093 - 4,940,373 4,940,373 - (4,032) (4,032) - 3,047,912 - 28,287,618 28,287,618 - $ 4,923,960 (73,653,809) 28,287,618 (45,366,191) - $ - - - - (7,126,096) 45,229,447 - 45,229,447 1,115,004 31,099,772 - 31,099,772 10,366,796 5,681,541 - 5,681,541 - 2,873,908 - 2,873,908 - 359,797 - 359,797 - 679,311 236,378 915,689 395,696 566,004 2,099 568,103 489,195 4,045,947 (4,045,947) - - 90,535,727 (3,807,470) 86,728,257 12,366,691 16,881,918 24,480,148 41,362,066 5,240,595 82,777,958 350,891,630 433,669,588 29,554,440 (634,151) (634,151) - 82,777,958 350,257,479 433,035,437 29,554,440 $ 99,659,876 $ 374,737,627 $ 474,397,503 $ 34,795,035 EXHIBIT A-3 CITY OF WICHITA FALLS, TEXAS BALANCE SHEET-GOVERNMENTAL FUNDS SEPTEMBER 30,2022 Total ARPA Nonmajor Governmental General Fund Governmental Funds Assets Cash and cash equivalents $ 20,863,688 $ 28,603,253 $ 15,832,075 $ 65,299,016 Investments 19,629,602 - - 19,629,602 Receivables(net): Taxes and assessments 958,240 - 283,468 1,241,708 Other City funds 5,646,370 - - 5,646,370 Government agencies 5,827,208 - 6,560,868 12,388,076 Other 2,058,032 - (83,611) 1,974,421 Inventory 190,403 - 25,318 215,721 Prepaid items 138,504 - 658,894 797,398 Other assets 1,000 - 103,640 104,640 Total assets $ 55,313,047 $ 28,603,253 $ 23,380,652 $ 107,296,952 Liabilities Accounts payable $ 1,806,431 $ 364,183 $ 903,891 $ 3,074,505 Accrued payroll 1,110,574 461 112,369 1,223,404 Payable to other City funds - - 3,339,093 3,339,093 Payable to government agencies 495,492 - 104,666 600,158 Other liabilities 3,684,630 19,168 433,554 4,137,352 Claims and judgments payable 11,922 - - 11,922 Unearned revenue - 28,078,856 55,986 28,134,842 Total liabilities 7,109,049 28,462,668 4,949,559 40,521,276 Deferred inflows of resources Unavailable revenues 2,142,771 - 43,283 2,186,054 Fund balances Nonspendable: Inventory and prepaid items 328,907 - - 328,907 Permanent Fund principal - - 1,639,863 1,639,863 Restricted for: Debt service - - 1,726,237 1,726,237 Capital projects - - 5,635,746 5,635,746 Federal and state grant programs - 140,585 4,551,343 4,691,928 Tourism - - 1,710,827 1,710,827 Committed for: Golf course - - 318,920 318,920 Local projects - - 2,891,255 2,891,255 Unassigned 45,732,320 - (86,381) 45,645,939 Total fund balances 46,061,227 140,585 18,387,810 64,589,622 Total liabilities,deferred inflows of resources and fund balances $ 55,313,047 $ 28,603,253 $ 23,380,652 $ 107,296,952 See accompanying notes to the basic financial statements. 17 EXHIBIT A-4 CITY OF WICHITA FALLS, TEXAS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2022 Total fund balances-governmental funds(Exhibit A-3) $ 64,589,622 Amounts reported for governmental activities in the Statement of Net Position(Exhibit A-1) are different because: Capital assets used in governmental activities are not financial resources and therefore no reported in the funds.Capital assets at year-end consist of Gross capital assets $ 355,029,790 Related accumulated depreciation 170,150,184 184,879,606 Property taxes receivable and municipal court fines are not available to pay for current period expenditures and therefore are reported as deferred inflows of resources in the funds 2,186,054 Long-term liabilities are not due and payable in the current period and therefor( not reported as liabilities in the funds.Long-term liabilities at year-end consist of Bonds payable 41,791,340 Premiums on bonds payable 1,480,657 Notes payable 3,430,974 Accrued vacation and sick leave 10,172,126 Claims and judgments payable 850,551 Accrued interest 197,304 (57,922,952) In the governmental funds financial statements,refunding losses are expended when incurred,whereas in the government-wide financial statements the losses are capitalize( and amortized. 195,185 The City's net pension liability and related deferred outflows and inflows related to it participation in the Texas Municipal Retirement System and the Wichita Falls Firemen's Relief and Retirement Fund do not meet criteria to be reported in the governmental fund, financial statements.These items consist of Net pension liabilities 73,843,738 Deferred outflows-pension related items (31,736,918) Deferred inflows-pension related items 44,832,907 (86,939,727) The City's net OPEB liability and related deferred outflows and inflows related to the Cit, of Wichita Falls Retiree Health Care Plan do not meet the criteria to be reported in thr governmental funds financial statements.These items consist of Net OPEB liabilities 10,634,616 Deferred outflows-OPEB related items (2,143,348) Deferred inflows-OPEB related items 1,038,642 (9,529,910) Internal service funds are used by management to charge the costs of duplicating services information technology and health insurance claims to the individual funds.The assets am liabilities of these internal service funds are included with the governmental activities 18,131,393 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 thr business-type activities. This amount represents the governmental activity portior of the central garage activity. (15,929,395) Total net position-governmental activities(Exhibit A-1; $ 99,659,876 See accompanying notes to the basic financial statements. 18 EXHIBIT A-5 CITY OF WICHITA FALLS, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Total ARPA Nonmajor Governmental General Fund Governmental Funds Revenues Taxes $ 80,448,805 $ - $ 4,752,451 $ 85,201,256 Charges for services 2,974,901 - 653,584 3,628,485 Licenses and permits 2,303,431 - - 2,303,431 Fines and forfeitures 2,303,149 - 364,829 2,667,978 Intergovernmental revenue - 427,493 13,563,845 13,991,338 Contributions 239,454 - 2,815,060 3,054,514 Miscellaneous revenue 2,864,211 139,937 2,914,492 5,918,640 Total revenues 91,133,951 567,430 25,064,261 116,765,642 Expenditures Administrative services 15,320,078 - 1,415,210 16,735,288 Police 27,830,038 - 348,619 28,178,657 Fire 18,427,056 - 789,241 19,216,297 Parks and recreation 5,755,938 - 19,811 5,775,749 Accounting/finance 836,651 - 12,625 849,276 Community development 2,405,539 - 5,543,563 7,949,102 Public works 5,407,106 - 5,243 5,412,349 Health 3,448,077 427,493 3,647,765 7,523,335 Traffic and transportation 2,007,744 - 665,899 2,673,643 Multi-Purpose Events Center - - 4,295,907 4,295,907 Capital outlay 2,785,656 - 5,481,963 8,267,619 Debt service-principal - - 3,613,482 3,613,482 Debt service-interest and paying agent fees - - 1,651,608 1,651,608 Debt service-bond issuance costs - - 83,463 83,463 Total expenditures 84,223,883 427,493 27,574,399 112,225,775 Excess of revenues over(under)expenditures 6,910,068 139,937 (2,510,138) 4,539,867 Other Financing Sources(Uses) Issuance of refunding bonds - - 3,099,822 3,099,822 Premium on issuance of refunding bonds - - 275,205 275,205 Payment to refunded bond escrow agent - - (3,292,314) (3,292,314) Transfers in 3,845,430 - 2,156,981 6,002,411 Transfers out (2,125,976) - (1,396,132) (3,522,108) Total other financing sources(uses) 1,719,454 - 843,562 2,563,016 Net change in fund balance 8,629,522 139,937 (1,666,576) 7,102,883 Fund balances-beginning 37,431,705 648 20,054,386 57,486,739 Fund balances-ending $ 46,061,227 $ 140,585 $ 18,387,810 $ 64,589,622 See accompanying notes to the basic financial statements. 19 EXHIBIT A-6 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2022 Net change in fund balances-total governmental funds(Exhibit A-5) $ 7,102,883 Amounts reported for governmental activities in the Statement of Activities(Exhibit A-2)are different because: Capital outlays are reported in governmental funds as expenditures.However,in the Statement of Activities,the cost of those assets are allocated over their estimated useful lives as depreciation expense.The net difference between the two is as follows: Capital outlay during the year $ 8,267,619 Depreciation expense for the year 7,021,530 1,246,089 Donated capital assets are not recorded as revenues in the governmental funds.In the the Statement of Activities,the value of the assets are added to capital assets and the contribution is recorded as a capital contribution. 1,876,048 Proceeds from the sale of capital assets are recorded as revenues when received in the 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. (53,666) Because property tax receivables and municipal court receivables will not be collected for several months after the City's fiscal year ends,they are not considered'available'revenues and are deferred in the governmental funds.Deferred inflows increased by this amount this year. 17,605 The issuance of long-term debt provides current financial resources to governmental funds.However, the issuance increases long-term liabilities in the Statement of Net Position.The City issued bonds during 2021-2022. (3,375,027) Repayment of long-term debt principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the Statement of Net Position.Bond and note principal payments in 2021-2022 were: 7,781,647 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 (630,269) Claims and judgments payable 75,451 (554,818) 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 30,2021 233,951 Accrued interest at September 30,2022 197,304 36,647 Amortization of deferred losses on refundings is only reported in the government-wide financial statements.Current year amortization was: (53,728) The City participates in two defined benefit pension plans.Contributions to the plans are expenditures at the fund level when payments are due.At the government-wide level,pension expenses are recognized on an actuarial basis.Payments were more than the actuarial expense in the current year. 2,647,920 The City sponsors an OPEB plan for retiree health care.Contributions to the plan are expenditures at the fund level when payments are due.At the government-wide level,pension expenses are recognized on an actuarial basis.Payments were more than the actuarial expense in the current year. 486,230 See accompanying notes to the basic financial statements. 20 EXHIBIT A-6 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2022 Internal service funds are used by management to charge the costs of duplicating services, information technology and health insurance claims to the individual funds.The net revenues of these internal service funds are included with the governmental activities. 604,161 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. (880,073) Change in net position of governmental activities(Exhibit A-2) $ 16,881,918 See accompanying notes to the basic financial statements. 21 EXHIBIT A-7 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2022 Enterprise Funds Non major Water and Regional Enterprise Internal Sewer Sanitation Airport Funds Total Service Funds Assets Current assets: Cash and cash equivalents $ 29,106,590 $ 12,422,299 $ (135,878) $ 12,184,510 $ 53,577,521 $ 10,303,931 Restricted cash and cash equivalents 13,020,867 - 1,667,752 - 14,688,619 8,114,799 Receivables(net): Customer and trade 5,937,289 1,779,915 - 402,242 8,119,446 - Government agencies 71,859 - 450,093 629,372 1,151,324 - Other 529,170 19,445 73,753 74,008 696,376 43,244 Inventory 1,071,364 - 71,929 151,121 1,294,414 698,394 Prepaid items - - 414 11,818 12,232 474,817 Total current assets 49,737,139 14,221,659 2,128,063 13,453,071 79,539,932 19,635,185 Long-term assets: Capital assets,net of accumulated depreciation 257,709,839 9,291,747 45,921,548 62,446,202 375,369,336 26,508,451 Total long-term assets 257,709,839 9,291,747 45,921,548 62,446,202 375,369,336 26,508,451 Total assets 307,446,978 23,513,406 48,049,611 75,899,273 454,909,268 46,143,636 Deferred Outflows of Resources Pension-related 1,053,293 441,655 30,961 216,056 1,741,965 349,625 OPEB-related 485,473 178,337 9,307 73,857 746,974 111,986 Deferred losses on bond refundings 2,194,761 - - - 2,194,761 - Total deferred outflows of resources 3,733,527 619,992 40,268 289,913 4,683,700 461,611 See accompanying notes to the basic financial statements. 22 EXHIBIT A-7 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2022 Enterprise Funds Non major Water and Regional Enterprise Internal Sewer Sanitation Airport Funds Total Service Funds Liabilities Current liabilities: Accounts payable-trade 966,074 39,186 11,605 205,940 1,222,805 399,018 Accrued payroll 191,572 78,609 7,550 41,923 319,654 64,447 Accrued vacation and sick leave 447,228 200,264 22,169 90,309 759,970 199,387 Payable to other City funds - - 141,832 1,703,162 1,844,994 462,283 Payable to government agencies - 65,665 1,729 1,144 68,538 - Estimated health claims payable - - - - - 891,315 Other liabilities (179,506) 40,832 110,637 1,146,598 1,118,561 10,555 Payable to U.S.Government-current maturity 47,216 - - - 47,216 - Right-to-use leases-current maturities - - 27,321 - 27,321 - Notes payable-current maturities 754,702 - - - 754,702 465,597 Bonds payable-current maturities 9,771,284 - - - 9,771,284 - Accrued interest-revenue bonds 388,387 - - - 388,387 - Total current liabilities 12,386,957 424,556 322,843 3,189,076 16,323,432 2,492,602 Long-term liabilities: Payable to U.S.Government,less current maturities 104,550 - - - 104,550 - Right-to-use leases,less current maturities - - 2,848,743 - 2,848,743 - Notes payable,less current maturities 12,836,101 - - - 12,836,101 - Bonds payable,less current maturities 67,134,938 - - - 67,134,938 - Estimated liability for landfill closure and post-closure care costs - 6,303,124 - - 6,303,124 - Customer deposits 3,485,750 - - - 3,485,750 Net pension liability 3,895,298 1,633,334 114,499 799,022 6,442,153 1,292,987 Net OPEB liability 2,408,765 884,852 46,179 366,454 3,706,250 555,640 Total long-term liabilities 89,865,402 8,821,310 3,009,421 1,165,476 102,861,609 1,848,627 Total liabilities 102,252,359 9,245,866 3,332,264 4,354,552 119,185,041 4,341,229 Deferred Inflows of Resources Pension-related 2,677,097 1,122,531 78,691 549,139 4,427,458 888,622 OPEB-related 235,255 86,420 4,510 35,790 361,975 54,267 Total deferred inflows of resources 2,912,352 1,208,951 83,201 584,929 4,789,433 942,889 Net Position Net investment in capital assets 169,991,520 9,291,747 43,045,485 62,446,202 284,774,954 26,042,854 Restricted for debt service 11,840,406 - - - 11,840,406 - Unrestricted 24,183,868 4,386,834 1,628,929 8,803,503 39,003,134 15,278,275 Total net position $ 206,015,794 $ 13,678,581 $ 44,674,414 $ 71,249,705 335,618,494 $ 41,321,129 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 39,119,133 Net position of business type actisee accompanying notes to the basic financial statements. $ 374,737,627 J 23 EXHIBIT A-8 CITY OF WICHITA FALLS, TEXAS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Enterprise Funds Non major Water and Regional Enterprise Internal Sewer Sanitation Airport Funds Total Service Funds Operating revenues: Charges for services $ 49,066,576 $ 16,895,772 $ 60,717 $ 5,410,010 $ 71,433,075 $ 14,522,002 Rents,concessions and other 1,055,656 5,234 1,860,855 1,684,667 4,606,412 960,247 Contributions - - - - - 15,186,716 Total operating revenues 50,122,232 16,901,006 1,921,572 7,094,677 76,039,487 30,668,965 Operating expenses: Personnel services 9,774,626 3,979,535 384,074 2,562,742 16,700,977 2,884,845 Supplies and materials 3,226,016 378,011 443,738 1,709,530 5,757,295 4,231,736 Maintenance and repairs 2,032,341 128,713 118,092 468,848 2,747,994 3,328,250 Utilities and other services 5,156,204 5,212,548 201,338 1,059,433 11,629,523 390,973 Insurance and contract support 889,058 37,636 114,079 157,341 1,198,114 12,028,728 Other expenses 2,168,173 523,166 176,935 186,903 3,055,177 2,016,539 Depreciation and amortization 8,845,792 315,725 1,595,482 1,484,282 12,241,281 5,388,794 Total operating expenses 32,092,210 10,575,334 3,033,738 7,629,079 53,330,361 30,269,865 Operating income(loss) 18,030,022 6,325,672 (1,112,166) (534,402) 22,709,126 399,100 Nonoperating revenues(expenses): Investment earnings(loss) 118,885 54,020 10,951 52,522 236,378 (1,590,615) Gain/(loss)on sale/abandonment of capital assets 2,099 - - - 2,099 110,275 Interest expense and paying agent fees (2,493,662) - (29,015) - (2,522,677) (18,259) Intergovernmental operating grants - - 450,093 3,861,105 4,311,198 - Total nonoperating revenues(expenses) (2,372,678) 54,020 432,029 3,913,627 2,026,998 (1,498,599) Income(loss)before contributions and transfers 15,657,344 6,379,692 (680,137) 3,379,225 24,736,124 (1,099,499) Capital contributions 666,819 - 44,000 2,337,093 3,047,912 - Transfers in - 574,149 - 544,717 1,118,866 3,953,748 Transfers out (2,633,743) (4,047,236) (57,219) (433,190) (7,171,388) (381,529) Change in net position 13,690,420 2,906,605 (693,356) 5,827,845 21,731,514 2,472,720 Net position-beginning,as originally stated 192,325,374 10,771,976 46,001,921 65,421,860 38,848,409 Prior period adjustment - - (634,151) -Net position-beginning,as restated 192,325,374 10,771,976 45,367,770 65,421,860 38,848,409 Net position-ending $ 206,015,794 $ 13,678,581 $44,674,414 $ 71,249,705 $ 41,321,129 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 2,748,634 Change in net position of business-type activities $ 24,480,148 See accompanying notes to the basic financial statements. 24 EXHIBIT A-9 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Enterprise Funds Non major Water and Regional Enterprise Internal Sewer Sanitation Airport Funds Total Service Funds Cash flows from operating activities: Received from customers and users $ 50,416,524 $ 16,766,615 $ 1,930,555 $ 7,155,375 $ 76,269,069 $ 4,399,197 Received from interfund charges - - - - - 25,594,419 Other operating receipts - - - - - 677,636 Payments to suppliers (13,694,066) (3,477,023) (1,020,111) (2,990,927) (21,182,127) (22,681,376) Payments for interfund services (3,860,998) (3,683,446) (140,287) (1,501,006) (9,185,737) (661,180) Payments to employees (7,973,936) (3,335,241) (285,315) (2,101,983) (13,696,475) (2,636,316) Net cash provided by operating activities 24,887,524 6,270,905 484,842 561,459 32,204,730 4,692,380 Cash flows from noncapital financing activities: Intergovernmental operating grants - - 305,067 5,082,108 5,387,175 (703,938) Interfund loans received(repaid) - - (218,476) 250,042 31,566 - Transfers in from other funds - 574,149 - 72,973 647,122 3,953,748 Transfers out to other funds (2,615,743) (4,047,236) (57,219) (433,190) (7,153,388) (381,529) Net cash provided(used)by noncapital financing activities (2,615,743) (3,473,087) 29,372 4,971,933 (1,087,525) 2,868,281 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (5,391,565) (764,308) (73,750) (3,229,346) (9,458,969) (5,322,610) Proceeds from sale of capital assets - - - - - 110,275 Proceeds from sale of refunding bonds 6,170,178 - - - 6,170,178 - Payment to escrow agent for refunded bonds (6,059,832) - - - (6,059,832) - Payment of bond issuance costs (110,346) - - - (110,346) - Principal paid on long-term debt (10,686,000) - (25,433) - (10,711,433) (456,557) Interest and fees paid on long-term debt (3,503,155) - (29,015) - (3,532,170) (18,259) Net cash provided(used)for capital and related financing activities (19,580,720) (764,308) (128,198) (3,229,346) (23,702,572) (5,687,151) Cash flows from investing activities: Investments earnings(losses) 118,885 54,020 10,951 52,522 236,378 (1,590,615) Net cash provided(used)by investing activities 118,885 54,020 10,951 52,522 236,378 (1,590,615) Net Increase(Decrease)in Cash and Cash Equivalents 2,809,946 2,087,530 396,967 2,356,568 7,651,011 282,895 Cash and Cash Equivalents-Beginning 39,317,511 10,334,769 1,134,907 9,827,942 60,615,129 18,135,835 Cash and Cash Equivalents-Ending $ 42,127,457 $ 12,422,299 $ 1,531,874 $ 12,184,510 $ 68,266,140 $ 18,418,730 Reconciliation of cash and cash equivalents on the balance sheet to the statement of cash flows: Cash and cash equivalents $ 29,106,590 $ 12,422,299 $ (135,878) $ 12,184,510 $ 53,577,521 $ 10,303,931 Restricted assets-cash and cash equivalents 13,020,867 - 1,667,752 - 14,688,619 8,114,799 Total cash and cash equivalents at end of year $ 42,127,457 $ 12,422,299 $ 1,531,874 $ 12,184,510 $ 68,266,140 $ 18,418,730 See accompanying notes to the basic financial statements. 25 EXHIBIT A-9 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Enterprise Funds Non major Water and Regional Enterprise Internal Sewer Sanitation Airport Funds Total Service Funds Reconciliation of Operating Income(Loss)to Net Cash Provided by Operating Activities: Operating income(loss) $ 18,030,022 $ 6,325,672 $ (1,112,166) $ (534,402) $ 22,709,126 $ 399,100 Adjustments to reconcile operating income(loss) to net cash provided(used)by operating activities: Depreciation and amortization 8,845,792 315,725 1,595,482 1,484,282 12,241,281 5,388,794 Customer deposits received(refunded) 81,576 - - - 81,576 - (Increase)decrease in assets and deferred outflows: Receivables: Customer and trade 469,555 (134,391) - (6,467) 328,697 - Other (256,839) - 8,983 67,165 (180,691) 664 Inventory 12,160 - (71,929) (104,366) (164,135) 28,323 Prepaid items 460 - (414) 1,944 1,990 325 Deferred outflows-pension-related (178,846) (92,473) (7,353) (61,683) (340,355) (55,770) Deferred outflows-OPEB-related (14,206) 35,846 (6,726) 12,590 27,504 31,877 Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade 41,420 (69,495) (102) (360,997) (389,174) 145,160 Accrued payroll (289,679) (110,833) (4,828) (57,718) (463,058) (92,503) Accrued vacation and sick leave 9,239 13,434 12,818 15,274 50,765 22,181 Estimated health claims payable - - - - - (489,640) Payable to government agencies - 65,665 1,440 63 67,168 - Other liabilities (495,480) (13,391) 57,333 241,219 (210,319) 1,623 Estimated liability for landfill closure - 573,270 - - 573,270 Net pension liability (2,852,354) (1,061,124) (67,674) (392,192) (4,373,344) (974,535) Net OPEB liability 48,650 (187,781) 33,256 (66,477) (172,352) (164,834) Deferred inflows-pension-related 1,357,747 595,691 43,071 316,224 2,312,733 445,259 Deferred inflows-OPEB-related 78,307 15,090 3,651 7,000 104,048 6,356 Total adjustments 6,857,502 (54,767) 1,597,008 1,095,861 9,495,604 4,293,280 Net cash provided by operating activities $ 24,887,524 $ 6,270,905 $ 484,842 $ 561,459 $ 32,204,730 $ 4,692,380 Noncash capital and financing activities: Capital assets received from developers $ 666,819 $ - $ 44,000 $ - $ 710,819 $ - Capital assets transferred(to)from other funds (18,000) - - 471,744 453,744 - Capital assets contributed by component units - - - 2,337,093 2,337,093 - See accompanying notes to the basic financial statements. 26 EXHIBIT A-10 CITY OF WICHITA FALLS, TEXAS STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2022 Custodial Fund Assets Cash and cash equivalents $ 207,318 Liabilities Other liabilities 207,318 Net position $ See accompanying notes to the basic financial statements. 27 EXHIBIT A-11 CITY OF WICHITA FALLS, TEXAS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Custodial Fund Additions Escheatment additions $ 43,251 Deductions Escheatment deductions 43,251 Change in net position - Net position-beginning - Net position-ending $ - See accompanying notes to the basic financial statements. 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to accounting principles generally accepted in the United States of America (GAAP) applicable to state and local governments. GAAP for local governments includes those principles prescribed by the Governmental Accounting Standards Board (GASB), which includes all statements and interpretations of the National Council on Governmental Accounting (NCGA) unless modified by the GASB, and those principles prescribed by the American Institute of Certified Public Accountants in the publication entitled Audits of State and Local Governmental Units. The following is a summary of the more significant policies and practices used by the City. A. Reporting Entity The City is a municipal corporation governed by an elected Mayor and six-member City Council. As required by various Governmental Accounting Standards Board (GASB) statements, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data presented by the City. A discretely presented component unit, on the other hand, is reported in a separate column in the basic financial statements to emphasize it is legally separate from the City. Each blended and discretely presented component unit has a September 30th year end. Blended Component Unit Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust" was made and entered into between the City and the Employee Benefit Trust Committee, acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the health and welfare program funded by the Trust, and/or officers or employees of the City. The purpose of the Trust is to provide health and welfare benefits, which may include life, accidental death and dismemberment, disability, medical and dental insurance, and any other benefits as determined by the Trustee Committee. The Trust is funded through contributions by the City and employees who choose to participate. It may be terminated in writing, at any time, by either party. The Employee Benefit Trust Fund is presented in the accompanying financial statements as an internal service fund. Discretely Presented Component Units The Wichita Falls Economic Development Corporation. The Wichita Falls Economic Development Corporation is a non-profit corporation formed in May 1997 for the purpose of increasing employment opportunities, primarily through assisting qualifying enterprises with funds provided by a portion of the local sales tax. Assistance may be in the form of incentive grants, loans or leases which call for discounted rates or rebates for job development. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its operations, the Wichita Falls Economic Development Corporation is considered to be part of the City's reporting entity and presented in the accompanying basic financial statements as a discretely presented component unit. The Wichita Falls Economic Development Corporation utilizes full accrual accounting. 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a non- profit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities, and the related maintenance and operating costs of such projects. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its operations, the Wichita Falls 4B Sales Tax Corporation is considered to be part of the City's reporting entity and presented in the accompanying basic financial statements as a discretely presented component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting. Wichita Falls Reinvestment Zone#2. On August 16, 2005,the City of Wichita Falls,Texas, with the advice and consent of the Wichita Falls Independent School District and Wichita County, approved the creation of the Wichita Falls Reinvestment Zone #2 (Zone). This Zone is permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.The area of the Zone is approximately 236 acres and includes the Lawrence Road area of the City. The purpose of the Zone is to capture increments of growth in real property values in the Zone from base values established on January 1, 2004, and use the ad valorem taxes derived from these increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the Zone or for the payment of debt service on bonds issued to provide funds for public improvements. The Zone terminates on December 31, 2025, or when all debt has been paid if later. After all costs have been paid at the end of the tax increment financing period, any money remaining is to be remitted to the taxing entities. Since the City Council appoints a majority of its Board, approves its budget, and exercises final authority over its operations, the Wichita Falls Reinvestment Zone #2 is considered to be part of the City's reporting entity and presented in the accompanying basic financial statements as a discretely presented component unit. The Zone utilizes full accrual accounting. Wichita Falls Reinvestment Zone#3. On September 1, 2009, the City of Wichita Falls, Texas, with the advice and consent of the Wichita Falls Independent School District and Wichita County, approved the creation of the Wichita Falls Reinvestment Zone #3 (Zone). This Zone is permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.The area of the Zone is approximately 630 acres and includes a significant portion of the Eastside Neighborhood. The purpose of the Zone is to capture increments of growth in real property values in the Zone from base values established on January 1, 2009, and use the ad valorem taxes derived from these increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the Zone or for the payment of debt service on bonds issued to provide funds for public improvements. The Zone terminates on December 31, 2029. After all costs have been paid at the end of the tax increment financing period, any money remaining is to be remitted to the taxing entities. Since the City Council appoints a majority of its Board, approves its budget, and exercises final authority over its operations, the Wichita Falls Reinvestment Zone #3 is considered to be part of the City's reporting entity and presented in the accompanying basic financial statements as a discretely presented component unit. The Zone utilizes full accrual accounting. 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Wichita Falls Reinvestment Zone#4. On March 17, 2015,the City of Wichita Falls,Texas, with the advice and consent of the Wichita Falls Independent School District and Wichita County, approved the creation of the Wichita Falls Reinvestment Zone #4 (Zone). This Zone is permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.The area of the Zone is approximately 246 acres and includes a significant portion of the downtown area. The purpose of the Zone is to capture increments of growth in real property values in the Zone from base values established on January 1, 2015, and use the ad valorem taxes derived from these increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the Zone or for the payment of debt service on bonds issued to provide funds for public improvements. The Zone terminates on December 31, 2035. After all costs have been paid at the end of the tax increment financing period, any money remaining is to be remitted to the taxing entities. Since the City Council appoints a majority of its Board, approves its budget, and exercises final authority over its operations, the Wichita Falls Reinvestment Zone #4 is considered to be part of the City's reporting entity and presented in the accompanying basic financial statements as a discretely presented component unit. The Zone utilizes full accrual accounting. No separate audited financial statements are available for the City's blended and discretely presented component units. Complete financial statements for the individual component units may be obtained from the City's Director of Finance/CFO at 1300 7th Street,Wichita Falls,Texas. 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 Director of Finance from the City's Finance Department, three firefighters elected by a majority vote of the firefighters and two citizens, who are not employees or officers of the City and are chosen by the unanimous vote of the first five Trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Board. The activities of the Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and thus are excluded from the accompanying financial statements. B. Basis of Presentation Government-wide financial statements The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. However, interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) The government-wide statement of activities demonstrates the degree to which the direct expenses of a functional category(police, public works, etc.) or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, 2) grants and contributions that are restricted to meeting operational requirements of a particular function or segment, and 3) grants and contributions that are restricted to meeting the capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Fund financial statements Separate fund-based financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major enterprise funds are reported as separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets (combined with deferred outflows of resources), liabilities (combined with deferred inflows of resources), revenues or expenditures/expenses of either fund category for governmental and enterprise) for the determination of major funds. The major governmental funds are the General Fund and the American Rescue Plan Act (ARPA) Fund. The major enterprise funds are the Water and Sewer Fund, the Sanitation Fund and the Regional Airport Fund. Nonmajor funds are combined in a column in the fund financial statements. Nonmajor funds are detailed in the combining section of the statements. Internal service funds,which traditionally provide services primarily to other funds of the government, are presented in the summary form as part of the proprietary fund financial statements. Because the principal users of internal services are the City's governmental and business-type activities, financial statements of internal service funds are allocated (based on the percentage of goods or services provided) between the governmental and business-type activities when presented at the government- wide level. The government-wide focus is more on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. The focus of the fund financial statements is on the major individual funds of the governmental and business-type categories. Each presentation provides valuable information that can be analyzed and compared to enhance the usefulness of the information. C. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary funds. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year in which they are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed by the provider have been met. 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Government fund-level financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property tax, franchise fees, and sales tax associated with the current fiscal period are all susceptible to accrual and have been recognized as revenues of the current fiscal period. All of the revenue items are considered to be measurable and available only when cash is received. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. From the fund are paid general operating costs,fixed charges, and capital improvement costs that are not paid through other funds. The ARPA Fund is used to account for Coronavirus State and Local Fiscal Recovery Funds received through the American Rescue Plan Act of 2021. Nonmajor governmental funds are a summarization of all the nonmajor governmental funds. The City reports the following major proprietary funds: The Water and Sewer Fund accounts for the water and sewer utility services provided to residents of the City. Activities necessary to provide such services are accounted for in the fund, including, but not limited to, administration, operations, maintenance,finance and related debt service. The Sanitation Fund accounts for refuse collection services to the residents of the City as well as the operations of the City's landfill.Activities necessary to provide such services are accounted for in the fund, including, but not limited to, administration, operations and maintenance. The Regional Airport Fund accounts for the operations of the Wichita Falls Regional Airport. Operational activities, including administration, operations and maintenance, of the airport are accounted for in this fund. Other enterprise funds are a summarization of all of the nonmajor proprietary funds. The City additionally reports the following fund types: Internal service funds are used to account for the financing of materials and services provided by one department of the City to other departments of the City on a cost-reimbursement basis. The City uses internal service funds to report the activities of fleet maintenance, duplicating services, employee health and life insurance, and information technology. 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) A custodial fund is used to account for any unclaimed vendor or payroll checks that will be escheated to the State if they remain unclaimed.These funds are held on a purely custodial basis. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water and sewer, sanitation, transit, and airport funds are charges to customers for services. Operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first,then unrestricted resources as they are needed. Capital improvement assessments are recorded as revenues in the fiscal period when the assessment becomes both measurable and available to finance expenditures of the fiscal period. Assessment revenues are considered measurable and available when collected by the City and recognized as revenue at that time. Payments for capital improvement assessments received in advance of the levy are reflected as deferred revenue. D. Nonexchange Transactions In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. The statement defines when the City should recognize revenue or expense for nonexchange transactions involving financial or capital resources and how to account for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a government-mandated or voluntary nonexchange transaction. Under this standard, revenue transactions with purpose restrictions are recorded as restricted resources until the purpose restrictions are met. Nonexchange transactions include the following classifications: • Derived tax revenues result from assessments imposed by governments on exchange transactions. • Imposed nonexchange revenues result from assessments by governments on nongovernmental entities, other than assessments on exchange transactions. • Government-mandated nonexchange transactions occur when a government at one level provides resources to a government at another level and require that government to use them for a specific purpose or purposes established in the provider's enabling legislation. • Voluntary nonexchange transactions result from legislative or contractual agreements, other than exchanges, entered into willingly by two or more parties. Examples of the City's voluntary nonexchange transactions include capital grants, state shared revenue and private donations. 34 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Providers of government-mandated nonexchange transactions and voluntary nonexchange transactions should recognize liabilities and expenses/expenditures and recipients should recognize receivables (or decrease in liabilities) and revenue when all applicable eligibility requirements, including time requirements are met. All nonexchange transactions occurring in governmental fund types are also subject to the modified accrual revenue recognition criteria. Accordingly, assets and revenue should not be recognized unless measurable and available. E. Assets, liabilities and net position or fund balances 1. Cash, cash equivalents and investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments are carried at fair value. Fair value is determined as the price at which two willing parties would complete an exchange. Interest earned on investments is recorded in the funds in which the investments are recorded. 2. Inventory and Prepaid Items Inventories of the general and proprietary funds consist of supplies and various materials used for the maintenance of capital assets. The consumption method is used to account for these inventories. Under this method, inventory acquisitions are recorded in inventory accounts initially and charged as expenditures when used. Inventories are stated at average cost. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements via the purchases method. 3. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g. roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-like activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the time received. Capital assets are depreciated using the straight-line method over the following useful lives: 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Assets Years Buildings, systems and improvements 20-59 years Infrastructure 8-100 years Machinery, vehicles and other equipment 3-25 years Furniture and equipment 3- 10 years Right-to-use leased assets 50 years Contributions of funds from federal, state, or local grants restricted for the purpose of purchasing plant and equipment are recorded as revenue when received. The cost of water and sewer lines installed by developers is valued by the contractor and recorded as nonoperating revenue in the Water and Sewer Fund. 4. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Certain amounts related to the City's participation in pension plans (See Note 8) and OPEB plan (See Note 9) are reported in this category, along with deferred losses on bond refunding. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only two types of items that qualify for reporting in this category. Property taxes receivable ($937,424) and municipal court fines receivable ($1,248,630) are unavailable and therefore cannot be recognized as revenue in the governmental funds until they are received. There are also certain items related to the City's participation in pension plans (See Note 8) and OPEB plan (See Note 9)that are reported in this category. 5. Long-Term Obligations Long-term debt and other obligations for general government purposes are recorded in the government-wide statement of net position. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. For the government-wide financial statements and proprietary fund types, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method in the government-wide financial statements. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as deferred bond issue costs and amortized over the term of the related debt. In addition,gains or losses on proprietary fund bond refunding are amortized over the term of the lesser of the new bonds or the refunded bonds' life using the effective interest method. In the governmental fund financials, bond proceeds are reported as another financing source. Bond premiums and discounts in governmental funds are also recognized currently as other financing sources or uses. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 6. Fund Balances—Governmental Funds Fund balances of the governmental funds are classified as follows: Nonspendable Fund Balance — represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes receivable or principal of a permanent fund). Restricted Fund Balance — represents amounts that are constrained by external parties, constitutional provisions or enabling legislation. Committed Fund Balance — represents amounts that can only be used for a specific purpose by adoption of an ordinance by the City Council. Committed amounts cannot be used for any other purpose unless the governing board removes those constraints through the adoption of another ordinance. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation, but rather from inside the City. Assigned Fund Balance — represents amounts which the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. The City Council has by resolution authorized the Director of Finance/CFO to assign fund balance. Specific amounts that are not restricted or committed in a special revenue, capital projects, debt service or permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund's primary purpose. Assignments within the General Fund convey that the intended use of those amounts is for a specific purpose that is narrower than the general purposes of the City itself. Unlike commitments, assignments only exist temporarily. Therefore, additional action does not normally have to be taken for the removal of an assignment. Unassigned Fund Balance— represents amounts which are unconstrained in that they may be spent for any purpose. Only the General Fund reports a positive unassigned fund balance. Other governmental funds might report a negative balance in this classification because of overspending for specific purposes for which amounts had been restricted, committed or assigned. When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds. 7. Federal and State Grants Grants and shared revenues are generally accounted for within the appropriate fund of the City to be financed by such grants or shared revenues. Federal grants include Community Development Block Grant, Section 8 Housing Assistance, Home Investment Partnership Agreement Program, and numerous health-related grants. 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Each Federal grant is accounted for in a separate special revenue fund. State grant revenues received for purposes normally financed through the general government are accounted for within the General Fund. 8. Transactions Between Funds Outstanding balances between funds are reported as "due to/from other City funds." Any residual balances between governmental activities and business-type activities are reported in the government-wide statements as "internal balances." Nonrecurring or non-routine transfers of equity between funds are accounted for as transfers. 9. Vacation and Sick Leave All full-time employees accumulate vacation benefits based on length of service up to 20 days per year. The maximum allowable accumulation is 35 days. Upon leaving the employment of the City, employees will be paid for unused vacation days which they have accrued. Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety days. Additionally, police officers and firefighters may accumulate an unlimited number of sick leave days while employed with the City. Upon termination, police officers and firefighters are compensated for up to 720 hours and 1,080 hours, respectively. 10. Risk Management The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. The City maintains a group health insurance plan for employees and dependents which is partially self-insured by the City. A group life insurance plan is maintained through an insurance company. Contributions to the plans are provided for by both the City and participating employees. These contributions are recognized as revenues in the internal service fund used to account for these plans.The contributions made by the City are recorded as expenditures or expenses of the various funds as appropriate. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$500,000. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of pay-outs and other economic and social factors. 38 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) The City is also self-insured up to $250,000 for workers' compensation claims. Such claims are processed by a third-party administrator. The City's estimated liability for workers' compensation claims payable at September 30, 2022 is based on management's estimate of probable losses in the amount of $862,473. The payment dates of such claims cannot be precisely determined, but are expected to be paid on a periodic basis over the next few years. Accordingly, the long-term liability has been recorded in the government-wide financial statements. The following represents changes in the amount of claims liabilities for the City from October 1, 2020 to September 30, 2022: Health Workers' Care Compensation Liability balance, October 1, 2020 $ 679,002 $ 705,077 Incurred claims/adjustments 13,728,631 1,101,255 Claim payments ( 13,026,678) ( 880,330) Liability balance,September 30, 2021 1,380,955 926,002 Incurred claims/adjustments 11,325,583 1,301,846 Claim payments ( 11,815,223) ( 1,365,375) Liability balance,September 30, 2022 $ 891,315 $ 862,473 F. Pension Plan For purposes of measuring the net pension liability, deferred outflows of resources, and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and the Wichita Falls Firemen's Relief and Retirement Fund (WFFRRF) and additions to/deductions from Fiduciary Net Position have been determined on the same basis as they are reported to TMRS and WFFRRF. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee,which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. G. Other Post-Employment Benefits The fiduciary net position of the City of Wichita Falls Retiree Health Care Plan has been determined using the flow of economic resources measurement focus and full accrual basis of accounting. This includes for purposes of measuring the net OPEB liability,deferred outflows of resources and deferred inflows of resources related to other post-employment benefits, OPEB expense, and information about assets, liabilities and additions to/deductions from the Plan's fiduciary net position. Benefit payments are recognized when due and payable in accordance with the benefit terms. 39 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) H. New Accounting Standard Adopted For fiscal year 2022, the City implemented GASB Statement No. 87, "Leases". This statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Due to the implementation of GASB Statement No. 87, certain leases with an initial noncancelable period of more than one year that were reported as operating leases prior to the implementation of GASB Statement No. 87, will be reported as right-to-use leased assets and right-to-use lease liabilities. This reclassification resulted in the restatement of the City's statement of net position and statement of activities. Note 2 - COMPLIANCE AND ACCOUNTABILITY Finance-Related Legal and Contractual Provisions The City had no violations of finance-related legal and contractual provisions for the year ended September 30,2022. Deficit Fund Balances—Individual Funds The Airport Improvement Grant Fund,a special revenue fund, had a deficit fund balance of$86,381 as of September 30, 2022.The City plans for this deficit to be alleviated within a year. Note 3 - DEPOSITS AND INVESTMENTS Deposits All of the City's demand and time depository accounts are held in local banking institutions under the terms of written depository contracts. At September 30, 2022, the total amount of the City's demand and time deposits per the general ledger was $4,506,759, and the total amount per the City's September 30, 2022 bank statements was $5,456,974. The entire amount of the year-end bank statement balances was covered by federal depository insurance or by collateral held by the City's agent in the City's name. Investments The investment policies of the City and its discretely presented component units are governed by The Public Funds Investment Act (PFIA). Authorized investments include obligations of the U.S. Treasury, agencies and instrumentalities, obligations of the State of Texas and related agencies, obligations of states, agencies, counties, cities and political subdivisions of any state rated A or above by a nationally recognized investment rating firm, repurchase agreements, public funds investment pools, and commercial paper.The City was in compliance with PFIA during the year ended September 30, 2022. 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.) The investments of the City and its discretely presented component units at September 30, 2022 are as follows: Average Fair Value/ Credit Weighted Average Carrying Quality/ Days to Types of Investments Amount Cost Ratings Maturity Primary Government: TexPool $ 95,499,166 $ 95,499,166 Not rated 1 LOGIC 35,764,276 35,764,276 Not rated 1 U.S.Treasury Bill 1,970,533 1,970,533 N/A 142 U.S.Treasury Notes 17,526,141 17,752,499 N/A 478 Money market accounts 18,871,954 18,871,954 Not rated 1 Total primary government investments 169,632,070 169,858,428 Component Units: TexPool 51,032,322 51,032,322 Not rated 1 Total component unit investments 51,032,322 51,032,322 Total investments $220,664,392 $220,890,750 TexPool is a local government investment pool organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and operates under the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. The State Comptroller of Public Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. Pursuant to the TexPool Participation Agreement, administrative and investment services to TexPool are provided by Federated Investors, Inc., under an agreement with the Comptroller, acting on behalf of the Trust Company. As required by the Public Funds Investment Act, the Advisory Board is composed equally of participants in TexPool and other persons who do not have a business relationship with TexPool who are qualified to advise TexPool. TexPool is comprised of two investment alternatives: TexPool (which the City is invested in) and TexPool Prime. Both funds seek to maintain a net asset value of$1.00 per unit and are rated AAAm by Standard and Poor's. Local Government Investment Cooperative (LOGIC) was organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, and operates as a public funds investment pool under the Public Funds Investment Act. LOGIC is organized and existing as a business trust under the laws of the State of Texas with all Participant funds and all investment assets held and managed in trust by a Board of Trustees for the benefit of the Participants. The Board of Trustees is LOGIC's governing body and is comprised of employees, officers or elected officials of Participant Government Entities or individuals who do not have a business relationship with the Pool and are qualified to advise it. A maximum of two advisory board members represent the Co-Administrators of the Pool. LOGIC seeks to maintain a net asset value of$1.00 per unit and are rated AAAm by Standard and Poor's. 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.) The City categorizes its fair value measurements with the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy below. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City's assessment of the significance of particular inputs to these fair value measurements requires judgement and considers factors specific to each asset or liability. The City values its United States Treasury Bills and Notes using Level 1 inputs,which are quoted prices in active markets. The City values its money market accounts using Level 2 inputs, which are values provided by the City's depositories.TexPool and LOGIC are valued at net asset value per unit/share. GASB Statement No. 40 requires a determination as to whether the City was exposed to the following specific investment risks at year end and if so,the reporting of certain related disclosures: a. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings of securities by nationally recognized rating agencies are designed to give an indication of credit risk.At year end,the City was not exposed to credit risk. b. Custodial Credit Risk Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the deposits are uncollateralized, collateralized with securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. Investment securities are exposed to custodial risk if the securities are uninsured, are not registered in the name of the government, and are held by either the counterparty or the counterparty's trust department or agent but not in the City's name. At year end,the City was not exposed to custodial credit risk. c. Concentration of Credit Risk This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year end,the City was not exposed to concentration of credit risk. d. Interest Rate Risk This is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City manages its exposure to interest rate risk by allowing no more than 20% of the City's portfolio to be invested for a period greater than one year. 42 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.) e. Foreign Currency Risk This is the risk that exchange rates will adversely affect the fair value of an investment. At year end,the City was not exposed to foreign currency risk. Note 4 - PROPERTY TAXES Property taxes attach as an enforceable lien on property as of the prior January 1.Taxes are levied on October 1, and become delinquent after January 31, unless the half-payment option is elected, in which case one-half of the tax is due November 30, and the balance the following June 30. The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per $100 of assessed valuation for general governmental services including the payment of principal and interest on long- term debt. The combined tax rate to finance general governmental services for the year ended September 30, 2022 was $.760928 per$100 which means that the City has a tax margin of$1.489072 per$100, and could raise up to $86,485,054 additional tax revenue a year from the present assessed valuation of$5,807,983,335 before the limit is reached. Note 5 - RESTRICTED ASSETS Restricted assets in the Water and Sewer Fund, Regional Airport Fund, and Internal Service Funds, are held for specific purposes in accordance with bond ordinances or other legal restrictions. Water and Sewer restricted assets are comprised of the following: For Debt Service: Cash and cash equivalents $12,229,783 For Capital Improvements: Cash and cash equivalents 791,084 Total $13,020,867 Regional Airport restricted assets are comprised of the following: For Passenger Facility Charges: Cash and cash equivalents $ 560,151 For Customer Facility Charges: Cash and cash equivalents 1,107,601 Total $1,667,752 Internal Service Fund restricted assets are comprised of the following: For Employee Insurance: Cash and cash equivalents $8,114,799 43 00 00 ci N O 01 N n O_ bcA ID L el101 LC, ON HI 0 O > U a) ro Y O ..c al LD N O CO O Co O 0_ c Ol D0 LIDHI C, U ul 4 O H v u.., Hi N Lfl Lfl M Ol L(1 re,' N � ce m CO in in U U -a 0_ � v a) O N O N N N 1 1 1 HI (OHI ' HI Q Lf (n V c ) LIDc-I c-I -I-, U o * CV o ri c-i U • c m E 00 m N N aJ O s--i N CV' 7 U in +n H O E ++ 00 00 -1 O O N N V1 CO (0 L C 0 N. m 0 0 o CO 0) >._c N (a E Vl LO LD Ol c-i o o +-' co-• E C m 000 LLD Lm(l n N 0m N cO O c-I N Lfl CO N lD L(1 c-I a--' H a p c-1 co mi .— (L`. v a +' ._ U VI 6 CDa) C U i i N , N LA > N N N +C+ a) M m M Q -I-.0 N C .1/- if) Q 7 ++ 0 ▪ E ice-. ,_ Q) m CV 00i CO Hli r‘l O l , 7( , n O N O N 00 'Fi an 01 m O CO N LC) Q- N Lr) s N Z p CO ^ Co N o +, ~ Q o z W in _ 'V c nz X a a) LJJ H m M LU 0 T 00 W O a p n W ' CO >. C N N rsi O O'm m N W � Q v> a ^ LNn VI U ++, a H N N et O 4_. CU Q N CO N i O m lfl -C + Q co .Y all HI HI HI OOl +-' - m W Ol NLr, > V Z W cn to N f1 V tn. X w Q H c0 fl Z a + o LL- N .-i al 0 0 N 00 0- C , c-I L LL LJJ f6 v � CO a) 4 O H DC0 + v COn N- N CO rn m O = 0 0 N o m M Q C U cn o C a W s — (1) -0 +w+ 7 Ul 0- CIO Z O QCj i i upci Ol I� N C -I-'Z +' (O 'n N CO (.0Ns N — O o E _ C N. O M f m O aJ c L c s--I lD 00 01 m lD -0 N +-, 0 a) U- Cr, Lfl N- N v) z a o LU 0 C m o +' r. LI L N N 00 ci 00 ci 00 00 0 a) N ,..0i I� O Co N N c to 0 co m m No Cl. c-I00 N N 00% LD'N OO Ol O Ol O a) O C lD LID CO 0 O N - N -I-,m Cj ri Ln n N O a) _ in O _a > U O aJ c v Y 0_ E 13 aJ O u c N L 0 a) C 7 aJ +•' v cl- 6 Q./ C N l0 'c 7 ++ _o u > O aJ W VI (0 ca C as H co EU c — L (0 (0 ,n 0 v v ;g (0 •x '7 v+i L > Cl • U O aJ O 1 0 - 00070 J c Z 1- CC0 >- o) 0 Z CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 7 - CAPITAL ASSETS Capital asset activity for the year ended September 30, 2022 was as follows: Balance Balance Governmental activities: October 1, September 30, 2021 Increases Decreases 2022 Capital assets not being depreciated: Land $ 10,752,781 $ - $ - $ 10,752,781 Construction in progress 3,826,921 7,033,184 1,263,659 9,596,446 Total capital assets not being depreciated 14,579,702 7,033,184 1,263,659 20,349,227 Capital assets being depreciated: Land betterments 24,775,873 46,995 - 24,822,868 Buildings,systems and improvements 75,998,208 252,098 80,673 76,169,633 Infrastructure 209,968,030 3,508,557 214,201 213,262,386 Machinery and equipment 28,818,737 870,109 - 29,688,846 Furniture and fixtures 130,848 - - 130,848 Total capital assets being depreciated 339,691,696 4,677,759 294,874 344,074,581 Less accumulated depreciation for: Land betterments 9,183,410 353,487 - 9,536,897 Buildings,systems and improvements 32,988,356 1,805,937 43,563 34,750,730 Infrastructure 103,919,796 4,156,041 197,645 107,878,192 Machinery and equipment 21,143,405 1,695,273 - 22,838,678 Furniture and fixtures 129,916 466 - 130,382 Total accumulated depreciation 167,364,883 8,011,204 241,208 175,134,879 Total capital assets being depreciated, net 172,326,813 ( 3,333,445) 53,666 168,939,702 Governmental activities capital assets,net $186,906,515 $3,699,739 $1,317,325 $189,288,929 Depreciation expense was charged to functions as follows: Governmental activities: Administrative services $1,448,309 Police 700,751 Fire 211,047 Parks and recreation 283,236 Community development 6,918 Public works 3,478,603 Health 145,873 Traffic and transportation 702,831 Multi-Purpose Events Center 1,033,636 Total governmental depreciation $8,011,204 45 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 7 - CAPITAL ASSETS(CONT'D.) Balance Balance Business-type activities: October 1, September 30, 2021 Increases Decreases 2022 Capital assets not being depreciated: Land $ 11,072,444 $ - $ - $ 11,072,444 Construction in progress 10,298,306 12,209,137 17,182,202 5,325,241 Total capital assets not being depreciated 21,370,750 12,209,137 17,182,202 16,397,685 Capital assets being depreciated: Land betterments 59,553,736 940,324 - 60,494,060 Buildings,systems and improvements 486,457,358 16,546,108 241,000 502,762,466 Infrastructure 1,308,101 - - 1,308,101 Machinery and equipment 10,627,957 490,328 2,890 11,115,395 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 69,340,567 4,993,925 194,517 74,139,975 Right-to-use leased assets 3,066,768 - - 3,066,768 Total capital assets being depreciated 630,371,430 22,970,685 438,407 652,903,708 Less accumulated depreciation for: Land betterments 24,279,170 1,632,105 - 25,911,275 Buildings,systems and improvements 171,964,577 10,232,991 241,000 181,956,568 Infrastructure 26,162 17,441 - 43,603 Machinery and equipment 8,442,578 467,824 2,890 8,907,512 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 50,134,810 4,227,456 194,517 54,167,749 Right-to-use leased assets 766,692 62,587 - 829,279 Total accumulated depreciation 255,630,932 16,640,404 438,407 271,832,929 Total capital assets being depreciated, net 374,740,498 6,330,281 - 381,070,779 Business-type activities capital assets,net $396,111,248 $18,539,418 $17,182,202 $397,468,464 Depreciation expense was charged to programs as follows: Business-type activities: Regional Airport $ 1,603,634 Kickapoo Airport 529,661 Transit 503,005 Sanitation 3,433,039 Water and sewer 9,751,879 Stormwater drainage 573,574 Waterpark 245,612 Total business-type depreciation $16,640,404 46 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS Eligible City employees participate in one of two pension plans. Eligible firefighters participate in the Wichita Falls Firemen's Relief and Retirement Fund (WFFRRF). All other eligible employees participate in the Texas Municipal Retirement System (TMRS). The table below summarizes the amounts reported by the City for each plan as of September 30, 2022. Detailed information for each plan follows. TMRS WFFRRF Total Net pension liability $26,459,195 $55,119,682 $81,578,877 Deferred outflows of resources 7,154,595 26,673,913 33,828,508 Deferred inflows of resources 18,184,447 31,964,541 50,148,988 Pension expense ( 195,914) 5,060,189 4,864,275 Texas Municipal Retirement System Plan Description The City participates as one of 895 plans in the nontraditional, joint contributory, hybrid defined benefit plan administered by the TMRS. TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees.Although the Governor,with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.tmrs.corn. All eligible employees of the City are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the City Council,within the options available in the governing state statutes of TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the City-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. 47 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) Employees Covered by Benefit Terms At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 726 Inactive employees entitled to but not yet receiving benefits 517 Active employees 980 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the participating city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the participating city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees of the City are required to contribute 7% of their annual gross earnings. The contribution rates for the City were 16.57% and 16.42% in calendar years 2021 and 2022, respectively. The City's contributions to TMRS for the year ended September 30, 2022, were $8,805,755, and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2021, and the Total Pension Liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 2.75%per year Investment rate of return 6.75%, net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2020 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on the fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively,to reflect the impairment for younger members who become disabled.The rates are 48 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post- retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal (EAN) actuarial cost method and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, TMRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal year 2021 are summarized in the following table: Long-Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic) Global Equities 30% 5.30% Core Fixed Income 10% 1.25% Non-Core Fixed Income 20% 4.14% Real Return 10% 3.85% Real Estate 10% 4.00% Absolute Return 10% 3.48% Private Equity 10% 7.75% Total 100% 49 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Changes in Net Pension Liability Increase(Decrease) Total Pension Fiduciary Net Net Pension Liability Position Liability (a) (b) (a)—(b) Balances as of December 31,2020 $303,667,034 $260,052,260 $43,614,774 Changes for the year: Service cost 6,571,147 - 6,571,147 Interest on total pension liability 20,199,933 - 20,199,933 Change of benefit terms - - - Difference between expected and actual experience 937,276 - 937,276 Change of assumptions - - - Contributions—employer - 7,844,017 ( 7,844,017) Contributions—employee - 3,311,593 ( 3,311,593) Net investment income - 33,864,112 ( 33,864,112) Benefit payments, including refunds of employee contributions ( 15,388,693) ( 15,388,693) - Administrative expense - ( 156,861) 156,861 Other changes - 1,074 ( 1,074) Balances as of December 31,2021 $315,986,697 $289,527,502 $26,459,195 Sensitivity Analysis The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City's net pension liability/ (asset) would be if it were calculated using a discount rate that is 1 percentage point lower(5.75%) or 1 percentage point higher(7.75%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 5.75% 6.75% 7.75% Net pension liability(asset) $67,349,203 $26,459,195 ($7,378,894) Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2022, the City recognized pension expense (income) of ($195,914) related to its participation in TMRS. 50 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to TMRS from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 662,415 $ 803,698 Net difference in assumptions - 5,162 Net difference between projected and actual earnings - 17,375,587 Contributions made subsequent to measurement date 6,492,180 - Total $7,154,595 $18,184,447 $6,492,180 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the plan year ending December 31, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31: 2022 ($ 3,329,856) 2023 ( 7,371,721) 2024 ( 3,558,341) 2025 ( 3,262,114) Total ($17,522,032) 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. The stand-alone financial report for the Firemen's Relief and Retirement Fund can be obtained from the City's Director of Finance/CFO at 1300 7th Street, Wichita Falls,Texas. Benefits Provided Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a retirement benefit will receive monthly retirement equal to 2.55% (2.50% for those hired after April 20, 2016) of the firefighter's average salary, multiplied by the member's years of credited service. Benefits are calculated based upon a member's average salary for the 78 consecutive biweekly pay periods which produce the highest average. 51 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) Members hired prior to April 21, 2016 can receive a service retirement at ages 50 and above with 20 or more years of service. Members hired after April 20, 2016 can receive a service retirement at ages 55 and above with 20 or more years of service. Members are eligible for actuarially reduced early retirement benefits before the applicable retirement age, provided the employee has accrued at least 20 years of service. The plan also provides death and disability benefits. Members who terminate their service and are nonvested are entitled to the excess of the member's contributions over any benefits previously received. The valuations used for this plan are based on a valuation performed as of January 1, 2020. Employees Covered by Benefit Terms Plan membership as of January 1, 2022: Inactive employees or beneficiaries currently receiving benefits 147 Inactive employees entitled to but not yet receiving benefits 3 Active employees 160 Contributions The contribution rate for the firefighters is 13% and the City contributes 13.25%. Both the firefighters and City make contributions bi-weekly. Contribution requirements are not actuarially determined, however, state law requires that each plan of benefits adopted by the Fund must be approved by a qualified actuary. The actuary certifies that the contribution commitments by the firefighters and the City provide an adequate financing arrangement. Using the individual entry age normal cost method,the plan's normal cost is determined as a percentage of payroll. The City's contributions to the Plan for the year ended September 30, 2022,were$1,694,549, and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of January 1, 2021, and the Total Pension Liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The NPL related to Governmental Activities is generally liquidated by the General Fund through annual contributions. Actuarial Assumptions The Total Pension Liability in the January 1, 2021, actuarial valuation was determined using the following actuarial assumptions: Inflation 3.0% per year Salary increases Service-based Discount Rate 4.99% per year Investment rate of return 7.75%, net of pension plan investment expense, including inflation 52 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) Mortality rates for employee and healthy annuitant combined rates were taken from the PubS- 2010 Mortality Tables. The mortality assumptions for all participants are sex distinct with mortality improvement projected 5 years beyond the valuation date using scale MP-2020 and a base year of 2010. Actuarial assumptions used in the valuation were based on the results of actuarial experience studies.The experience study was last performed October 6, 2017. The long-term expected rate of return on pension plan investments was determined using a method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. For 2021 the inflation rate assumption of the investment advisor was 2.50%. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major class included in the Plan's target asset allocation as of December 31, 2020 are summarized in the following table: Long-Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic) Domestic Equity 40.00% 7.50% International Equity 15.00% 8.50% Domestic Fixed Income 20.00% 2.50% Global Fixed Income 5.00% 3.50% Real Estate 10.00% 4.50% GTAA 10.00% 3.50% Total 100.00% Discount Rate The projection of cash flows used to determine the discount rate assumed that current plan member and sponsor contributions will be made at the current contribution rate. Future member's contributions in excess of their normal cost were also included. Based on these assumptions, the pension plan's Fiduciary Net Position was projected to provide future benefit payments for 26 years. These payments were discounted using a discount rate of 7.75%. Future benefit payments beyond 26 years were discounted using a high quality municipal bond rate of 3.26%. The high quality municipal bond rate was based on the week closest to, but not later than, the measurement date of the S&P Municipal Bond 20 Year High Grade Rate Index as published by the S&P Dow Jones.The single equivalent discount rate was 4.99%. 53 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) Changes in Net Pension Liability Increase(Decrease) Total Pension Fiduciary Net Net Pension Liability Position Liability (a) (b) (a)—(b) Balances as of December 31, 2020 $137,970,820 $57,828,760 $80,142,060 Changes for the year: Service cost 3,462,346 - 3,462,346 Interest on total pension liability 6,175,999 - 6,175,999 Change of benefit terms - - - Difference between expected and actual experience ( 2,700,656) - ( 2,700,656) Change of assumptions ( 20,894,841) - ( 20,894,841) Contributions—employer - 1,615,588 ( 1,615,588) Contributions—employee - 1,583,797 ( 1,583,797) Net investment income - 8,128,492 ( 8,128,492) Benefit payments, including refunds of employee contributions ( 6,535,299) ( 6,535,299) - Administrative expense - ( 266,037) 266,037 Other - 3,386 ( 3,386) Balances as of December 31, 2021 $117,478,369 $62,358,687 $55,119,682 Sensitivity Analysis The following presents the net pension liability of the City, calculated using the discount rate of 5.80%, as well as what the City's net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage point lower(4.80%) or 1 percentage point higher(6.80%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 4.80% 5.80% 6.80% Net pension liability $70,077,975 $55,119,682 $42,668,515 Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2022,the City recognized pension expense of$5,060,189 related to the Wichita Falls Firemen's Relief and Retirement Fund. Pension Plan Fiduciary Net Position Detailed information about the pension Plan's Fiduciary Net Position is available in the separately issued Plan financial report. 54 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the WFFRRF from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 2,357,644 $ 3,632,592 Difference due to changes in actuarial assumptions 23,054,493 18,874,062 Net difference between projected and actual earnings - 9,457,887 Contributions made subsequent to measurement date 1,261,776 - Total $26,673,913 $31,964,541 $1,261,776 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the plan year ending December 31, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31: 2022 $ 32,658 2023 ( 724,218) 2024 640,388 2025 ( 739,469) 2026 ( 2,178,664) Thereafter ( 3,583,099) Total ($6,552,404) Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS Plan Description The City administers the City of Wichita Falls Retiree Health Care Plan for all permanent employees who retire after satisfying eligibility retirement requirements through a single-employer defined benefit plan. All employees who retire and are actively in one of the City's health plans can continue to receive health care benefits under the City's plan for themselves and any dependents for as long as the retiree and/or dependents live. The plan does not issue a stand-alone financial report. Retiree Premiums Pre-Medicare: Retirees share in the cost of the Plan by paying premiums according to the following schedule: 55 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) PPO PPO PPO Under 65 Core CAT HSA Retiree Only $ 406 $ 304 $ 288 Retiree/Spouse $1,630 $1,285 $1,229 Retiree/Child $1,273 $ 999 $ 954 Retiree/Family $2,344 $1,856 $1,778 Rates for pre-Medicare retirees over the age of 65 are $514 for retiree only and $1,028 for retiree/spouse. Post-Medicare: Eligible retirees and spouses on Medicare are eligible to participate in a Medicare supplement health care plan. Effective January 1, 2009, the following changes will be implemented to Medicare eligible retirees: For retirees and spouses who were on Medicare as of January 1, 2009, the City will provide $250 in premium assistance towards the full premium for a Medicare subsidy program. The $250 is expected to be a fixed amount. For retirees and spouses retired as of January 1, 2009 but not yet Medicare-eligible, the City will provide $100 in premium assistance towards the full premium for a Medicare subsidy program. The $100 is expected to be a fixed amount. For members who retire on or after January 1, 2009, the City will provide no premium assistance once Medicare-eligible. Benefits for Spouses of Retired Employees Spouses of retirees are eligible to participate in the retiree health care program. Spouses are eligible to continue with same coverage after the death of the retiree. Vision Coverage Vision coverage is offered through a separate, fully-insured plan. Retirees may participate but are 100%responsible for payment of the vision premiums. Dental Coverage Retirees and spouses, prior to qualifying for Medicare, are eligible to participate in the same dental care program as active employees. There is no dental coverage for retirees or spouses on the Medicare supplement. Life Insurance Coverage General employees and Firefighters receive $7,500 of employer-paid life insurance which is included in the liabilities of the Plan. No life insurance coverage is provided for spouses of retirees. Employees Covered by Benefit Terms At the December 31, 2021 measurement date, the following employees were covered by the benefit terms: 56 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Inactive plan members or beneficiaries currently receiving benefits 735 Inactive plan members entitled to but not yet receiving benefits - Active plan members 1,108 Actuarial Assumptions The demographic assumptions are based on the assumptions that were developed for the defined benefit plans in which the City participates (TMRS and the Firemen's Pension Plan). The TMRS assumptions are based on the experience study covering the four-year period ending December 31, 2018 as conducted for TMRS.The firefighter assumptions are based on the January 1, 2020 Valuation for the Wichita Falls Firemen's Relief and Retirement Fund. Actuarial Methods and Assumptions: Valuation Date December 31, 2020 Actuarial Cost Method Individual Entry Age Normal Discount Rate 6.75%as of December 31, 2020 Inflation 2.50% Salary Increases 3.50% to 11.50% for TMRS and 3.50% to 12.00% for Fire, including inflation Demographic Assumptions TMRS: Based on the experience study covering the four-year period ending December 31, 2018 as conducted for TMRS. Based on the January 1, 2020 valuation for the Wichita Falls Firemen's Relief and Retirement Fund. Mortality TMRS: For healthy retirees, the gender-distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are projected on a fully generational bases using the ultimate mortality improvement rates in the MP tables to account for future mortality improvements. Fire: For healthy retirees, gender-distinct PubS-2010 (safety employees) mortality tables are used. The rates are projected on a fully generational basis using the projection scale MP- 2019 to account for future mortality improvements. Participation Rates TMRS: 45% of employees retiring after the age of 49 or with disability at any age were assumed to elect retiree health care benefits through the City. 0% of TMRS employees retiring before the age of 49 were assumed to elect coverage. Fire: 70% of employees retiring at any age were assumed to elect retiree health care benefits through the City. Healthcare Cost Trend Rates Initial rate of 7.00% declining to ultimate rates of 4.25% after 13 years. Discount Rate A single discount rate of 6.75% was used to measure the total OPEB liability. The asset portfolio of the OPEB trust largely consists of long-term growth stocks and can therefore support a 6.75% long- term rate of return. The City's current funding policy is to pay the recommended actuarially determined contribution, which is based on a closed amortization period.As a result,the OPEB plan's fiduciary net position is expected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. 57 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Changes in Net OPEB Liability Increase(Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a)—(b) Balances as of December 31, 2020 $24,114,034 $7,959,928 $16,154,106 Changes for the year: Service cost 667,554 - 667,554 Interest on total OPEB liability 1,593,949 - 1,593,949 Change of benefit terms - - - Difference between expected and actual experience - - - Change of assumptions - - - Contributions—employer - 2,059,484 ( 2,059,484) Contributions—employee - - - Net investment income - 1,459,619 ( 1,459,619) Benefit payments, including refunds of employee contributions ( 1,667,492) ( 1,667,492) - Administrative expense - - - Other changes - - - Balances as of December 31, 2021 $24,708,045 $9,811,539 $14,896,506 Discount Rate Sensitivity Analysis The following schedule shows the impact of the net OPEB liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (6.75%) in measuring the net OPEB liability. Current 1% Discount 1% Decrease Rate Increase 5.75% 6.75% 7.75% $17,121,592 $14,896,506 $12,938,198 The following schedule presents the net OPEB liability of the plan using the assumed healthcare cost trend rate as well as what the net OPEB liability would be if it were calculated using a trend ratio that is 1% less than and 1%greater than the assumed healthcare cost trend rate: Current Healthcare 1% Cost Trend 1% Decrease Rate Increase $12,929,367 $14,896,506 $17,197,518 For Governmental Activities,the net OPEB liability is generally liquidated by the General Fund. 58 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2022, the City recognized OPEB expense of$1,638,741 related to the City of Wichita Falls Retiree Health Care Plan. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the City of Wichita Falls Retiree Health Care Plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience, liability $ 419,454 $ 202,946 Difference due to changes in actuarial assumptions 805,353 - Differences between expected and actual experience, assets - 1,251,938 Contributions made subsequent to measurement date 1,777,501 - Total $3,002,308 $1,454,884 $1,777,501 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the plan year ending December 31, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: 2023 $ 18,059 2024 ( 135,886) 2025 5,591 2026 ( 117,841) Total (S230,077) Note 10 - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or an unforeseen emergency. 59 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 11 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS State and federal laws and regulations require that the City place a final cover on its landfill when closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7, the City annually submits a financial assurance letter to the Texas Commission on Environmental Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $6,225,021 as of September 30, 2022, which is based on 24% usage of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $19,453,192 as the remaining estimated capacity is filled. The landfill is expected to be filled to capacity in 2153. Additionally, the City has recorded a liability of$78,103 for closure and postclosure care costs related to the City's transfer station. Actual costs may be higher due to inflation, change in technology, or changes in regulations. Note 12 - LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30, 2022 are summarized as follows: Balance at Balance at October 1, Retired and September 30, Due Within 2021 Issued Transferred 2022 One Year Governmental Activities: General obligation bonds $ 26,275,000 $3,099,822 $2,623,482 $ 26,751,340 $2,701,606 Combination tax and revenue bonds 16,665,000 - 4,210,000 12,455,000 970,000 Venue tax revenue bonds 2,635,000 - 50,000 2,585,000 50,000 Premiums on bonds 1,524,354 275,205 318,902 1,480,657 - Accrued vacation and sick leave payable 9,609,116 3,313,656 2,674,240 10,248,532 3,000,000 Notes payable 4,010,237 - 579,263 3,430,974 615,303 Claims and judgments payable 926,002 1,301,846 1,365,375 862,473 79,824 Total governmental activities 61,644,709 7,990,529 11,821,262 57,813,976 7,416,733 Business-type Activities: General obligation bonds - 6,170,178 361,518 5,808,660 353,394 Utility system revenue bonds, net of premium(discount) 46,670,000 - 8,010,000 38,660,000 8,410,000 Combination tax and revenue bonds 36,590,000 - 7,155,000 29,435,000 1,595,000 Premiums on bonds 4,344,896 - 1,342,334 3,002,562 - Accrued vacation and sick leave payable 819,152 822,347 758,548 882,951 675,000 Notes payable 15,407,763 - 1,199,598 14,208,165 1,220,299 Right-to-use lease liabilities 2,901,496 - 25,433 2,876,063 27,321 Landfill closure,post-closure costs 5,729,854 573,270 - 6,303,124 - Total business-type activities 112,463,161 7,565,795 18,852,431 101,176,525 12,281,014 Total long-term liabilities $174,107,870 $15,556,324 $30,673,693 $158,990,501 $19,697,747 For governmental activities, claims and judgments payable and compensated absences are generally liquidated by the General Fund. 60 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 12 - LONG-TERM LIABILITIES(CONT'D.) Bonds Payable Bonds payable as of September 30, 2022 are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized At 9/30/22 General Obligation Bonds: General Obligation Refunding 2.00%- 9/01/26 $200,000 to $9,650,000 $ 4,180,000 Bonds,Series 2015A 5.00% $1,105,000 General Obligation Refunding 0.73%- 9/01/26 $110,000 to 2,885,000 1,195,000 Bonds,Series 2015E 3.48% $310,000 General Obligation Bonds, 2.00%- 9/01/38 $550,000 to 16,345,000 14,010,000 Series 2018A 5.00% $1,155,000 General Obligation Refunding 2.00%- 10/01/28 $80,000 to 6,170,000 4,500,000 Bonds,Series 2018B 4.00% $725,000 General Obligation Refunding 4.00% 9/01/31 $140,000 to 1,675,000 1,525,000 Bonds,Series 2021 $195,000 General Obligation Refunding 0.40%- 9/01/33 $435,000 to 7,595,000 7,150,000 Bonds,Taxable Series 2021 2.03% $865,000 Total General Obligation Bonds 32,560,000 Combination Tax and Revenue Bonds: Combination Tax and Revenue 2.00%- 9/01/33 $530,000 to 19,875,000 12,455,000 Certificates of Obligation,Series 2013 3.375% $1,315,000 Combination Tax and Revenue 2.00%- 9/01/33 $505,000 to 13,000,000 2,570,000 Certificates of Obligation,Series 4.625% $905,000 2013A Combination Tax and Revenue 0.00%- 3/01/45 $890,000 to 33,545,000 26,865,000 Certificates of Obligation,Series 2015 2.12% $1,425,000 Total Combination Tax and Revenue Bonds 41,890,000 Revenue Bonds: Water&Sewer System Revenue 2.00%- 8/01/27 $2,635,000 to 74,005,000 38,660,000 Refunding Bonds,Series 2016 5.00% $9,705,000 Venue Tax Revenue Bonds, 4.00% 9/01/50 $45,000 to 2,680,000 2,585,000 Series 2020 $150,000 Total Revenue Bonds 41,245,000 Total All Bonds $115,695,000 61 If) CO l0 l0 CO M N M M c-1 N c-1 N m 01 l0 m c o N o N 0o l0 1-1 Ifl N CO v w N v r1 l0 CO .-1 If) CO N O lD Ql r 1p N V Q7 Ol c-I IN ✓ ci N N CO CO ci c-1 c-1 IN O1 N N CO N CO 01 al O N N CO I, V V 00 N .H IN (v1" c-1 O1 N (0 O I- N u1 N O M LC, N n N CO c-1 N 0 M l0 lD CO CO N Cr N m 01 .-1 Cr O .-1 O N N 01 In O Cr O ul u1 N N To !2 Oi N 00 lD 00 If) V 0) 00 0 M l0 O 'u 00 m IN u) N m Cr Cr 01 01 01 If) c-1 C CO c-1 M lD O Ol Ifl V N CO lD .--1 N V) 0 0 0 00 N Ol 00 I(1 CO d c-1 .-1 c-1 .-1 N .-1 M c-1 lf} if) V1 ci r, In N CO 1 LC, l0 Cr m N CO 00 00 Ol CO Cr Cr CO Crl0 N CO 00 lD N O hv N cr c-1 CO u1 01 CO CrlD CO c-1 lf1 01 Cl 00 00 CO I� n c-1. 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O O O O -o U s7 If) lD lD N c-1 Cr) c-1 .--1 00 E d N N N N N CO sH N (1) •, N I, c-1 CO I� CO CO O N Q -6 )- CO ID I, N V Q> M Ifl 00 O mv l0 I, O1 C11 M u1 m I, Cr) N W CO' N 0) O O1 Cr u1 W O CU CO ' O Q CO N O 00 V - ,-I' ,-I' N N �- }J fO if1 if) 4- LW _o 4 co co O O O O O O co u1 O - O O O O O O O O O I� N - a O O 0 0 0 O O 0 0 C LN(1 (00 (0 NO CO0 0 c�-I Il) (OD Ca L O .-I N O M Lf) O .-I u) Q 4--+ al d M CO" M M N o CO .-) M --4 (0 lf) cu Om N N (V N N N CC a-, CO M M V V u) 01 Ill (a C v 0 0 0 0 0 0 a -0 N N N N N N N C E M cr 1.0 CO N CO M 0p M 00 M 00 ro L CIO ` N N N N N N N M (1) 'Crlh 1.0O 0 0 co co co co co ,0 co co coO (6 O. N N N N N N N (V (V N N N I- J Q ) V0)) N ti N O CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 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, 2022, this fund had a fund balance of$1,290,689. The Combination Tax and Revenue Bonds are secured by ad valorem taxes levied against all taxable property as well as a pledge of surplus net revenues of the City's combined waterworks and sewer system. The Series 2010 and 2011 Certificates will be serviced by the Debt Service Fund by contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2016 Certificates will be serviced by the net revenues of the Water and Sewer Fund, as well as the Series 2010 Combination Tax and Revenue Refunding Certificates. A portion of the Series 2013 General Obligation Refunding Bonds will also be serviced by these net revenues. The Venue Tax Revenue Bonds were issued for the purpose of improving the City's MPEC and Memorial Auditorium facilities and are serviced by an additional hotel/motel tax designated for these purposes. All of the Water and Sewer Revenue Bonds were issued for purposes of improving the City's water and sewer systems and are serviced by the net revenues of the Water and Sewer Fund. Notes Payable United States Government—Lake Kemp The City of Wichita Falls and Wichita County Water Improvement District Number 2, upon the completion of the Lake Kemp reconstruction project in January 1976 by the U.S. Government, are required to reimburse the U.S. Government 22.7% of its reported total cost of $8,774,705, or $1,991,858. The City's share of this amount is 66.11%, or $1,316,817, payable in forty-nine annual installments through January 2025 of$51,974,which includes interest at the rate of 3.253%. The City's share of the total costs ($5,800,957) as well as the U.S. Government funded portion ($4,484,140) is reflected as capital assets in the Water and Sewer Enterprise Fund. Sun Trust Equipment Finance& Leasing Corp. —Energy Efficiency Project The City entered into a financing agreement in 2012 to finance a portion of an energy efficiency project that includes several City facilities. The agreement financed $4,419,310 of the total project. The assets are listed under"Buildings, systems and improvements" in both Governmental Activities and Business- type Activities. The note carries an interest rate of 2.54% and is for a period of 12 years, with final payment due in fiscal year 2024. Banc of America Public Capital Corp. —Water Meters The City entered into a financing agreement in 2016 to finance the replacement of all of the City's water meters. The total amount financed was $16,506,103. These assets are listed under "Buildings, systems and improvements" in Business-type Activities. The agreement carries an interest rate of 3.23%and is for a period of 20 years,with final payment due in fiscal year 2036. 63 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 12 - LONG-TERM LIABILITIES(CONT'D.) Signature Public Funding Corp. —Fire Equipment The City issued a financing agreement in 2017 for the purchase of fire department equipment in the amount of $2,682,710. These assets are listed under "Motor vehicles" in Business-type Activities. This agreement carries an interest rate of 1.98%and is for a period of 6 years with final payment due in fiscal year 2023. AMERESCO Inc. —Street Lights The City entered into a financing agreement in 2018 to finance the conversion of the City's street lights to more energy-efficient LED lights. These assets are listed under "Infrastructure" in Governmental Activities. This agreement carries an interest rate of 3.45% and is for a period of 15 years,with final payment due in fiscal year 2034. Signature Public Funding Corp. —Traffic Signals The City also issued a financing agreement in 2018 for the purchase of new traffic signal communication equipment in the amount of$414,225.These assets are listed under "Infrastructure" under Governmental Activities. This agreement carries an interest rate of 3.03% for a period of 5 years with final payment due in fiscal year 2023. Right-to-Use Leases The Regional Airport facilities are located on land at Sheppard Air Force Base. The land is leased from the Department of the Air Force for a period of fifty years, beginning May 15, 2009 and expiring May 14, 2059. The lease payment increases by 3% per year with a final lease payment of$157,805 in 2058.The total value of assets under this agreement was$3,066,768, with accumulated amortization of$829,279 as of September 30, 2022.An interest rate of 1%is imputed for this lease agreement. Note 13 - DEFEASED DEBT General Obligation Refunding Bonds,Taxable Series 2021 On October 1, 2021, the City issued $7,595,000 in bonds titled "General Obligation Refunding Bonds, Taxable Series 2021."These bonds were issued to refund the remaining outstanding Combination Tax and Revenue Certificates of Obligation, Taxable Series 2010 and portions of the outstanding Combination Tax and Revenue Certificates of Obligation, Series 2013A. A portion of the proceeds of the bonds were placed in an irrevocable trust in order to redeem the Series 2010 bonds on October 14, 2021. The remaining proceeds were placed in an irrevocable trust in order to redeem the Series 2013A bonds on September 1, 2023. The refunding met the requirements of an in-substance defeasance and the original bonds were removed from Governmental Activities and Business-type Activities. As a result of this refunding, the City reduced debt service payments by a total of$749,231, with an economic gain (difference between the present value of the debt service payments on the old and new debt present value of savings) of$681,211. 64 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 13 - DEFEASED DEBT(CONT'D.) General Obligation Refunding Bonds, Series 2021 On October 1, 2021, the City also issued $1,675,000 in bonds titled "General Obligation Refunding Bonds, Series 2021."These bonds were issued to refund the remaining outstanding Combination Tax and Revenue Certificates of Obligation,Taxable Series 2011. The proceeds of the bonds were placed in an irrevocable trust in order to redeem the Series 2011 bonds on October 14, 2021. The refunding met the requirements of an in-substance defeasance and the original bonds were removed from Governmental Activities. As a result of this refunding, the City reduced debt service payments by a total of$222,887, with an economic gain (difference between the present value of the debt service payments on the old and new debt present value of savings) of$202,982. Note 14 - INTERFUND BALANCES Transfers to and from other funds during the year ended September 30, 2022 were as follows: Transfers From Transfers To Amount Reason General Fund Nonmajor Governmental Funds $ 202,499 Supplement operating grants General Fund Nonmajor Governmental Funds 414,803 Supplement operating deficits General Fund Internal Service Funds 1,500,000 Supplement operating deficits General Fund Internal Service Funds 8,674 Purchase capital assets Nonmajor Governmental Funds Nonmajor Governmental Funds 938,944 Fund debt service payment Nonmajor Governmental Funds Nonmajor Enterprise Funds 457,188 Purchase capital assets Water and Sewer Fund General Fund 1,823,429 Administrative overhead Water and Sewer Fund Nonmajor Governmental Funds 157,700 Fund debt service payment Water and Sewer Fund Sanitation Fund 574,149 Transfer capital assets Water and Sewer Fund Nonmajor Enterprise Funds 18,000 Transfer capital assets Water and Sewer Fund Internal Service Fund 60,465 Transfer capital assets Sanitation Fund General Fund 1,710,001 Administrative overhead Sanitation Fund Internal Service Funds 2,337,235 Purchase capital assets Regional Airport Fund Nonmajor Governmental Funds 9,845 Supplement capital grants Regional Airport Fund Internal Service Fund 47,374 Purchase capital assets Nonmajor Enterprise Funds Nonmajor Governmental Funds 409,312 Fund debt service payment Nonmajor Enterprise Funds Nonmajor Governmental Funds 23,878 Supplement capital grants Internal Service Funds General Fund 312,000 Administrative overhead Internal Service Funds Nonmajor Enterprise Funds 69,529 Administrative overhead Total $11,075,025 Balances due to and from other funds as of September 30, 2022 were as follows: Due To Fund Due From Fund Amount Purpose General Fund Nonmajor Governmental Funds $3,339,093 Short-term loan General Fund Regional Airport Fund 141,833 Short-term loan General Fund Nonmajor Enterprise Funds 1,703,162 Short-term loan General Fund Internal Service Funds 462,283 Short-term loan Total $5,646,371 All amounts due are scheduled to be repaid within one year. 65 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 15 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNITS The City has five component units that are discretely presented in the City's basic financial statements. Condensed financial information for the year ended September 30, 2022 is as follows: Wichita Falls Wichita Falls Economic 4B Sales Development Tax Wichita Falls Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals Condensed statement of net position: Cash,investments and other current assets $27,084,569 $23,819,671 $2,994,806 $913,108 $804,222 $55,616,376 Capital assets,net of accumulated depreciation 2,429,495 8,555,075 - - - 10,984,570 Total assets 29,514,064 32,374,746 2,994,806 913,108 804,222 66,600,946 Accounts payable and other current liabilities 686,179 2,676,468 - - - 3,362,647 Long-term liabilities 9,948,264 18,495,000 - - - 28,443,264 Total liabilities 10,634,443 21,171,468 - - - 31,805,911 Net position 518,879,621 511,203,278 52,994,806 5913,108 $804,222 $34,795,035 Condensed statement of activities: Expenses: Community development $ 5,259,532 $ 2,913,129 $ 718,622 $ - $ - $ 8,891,283 Program revenues: Charges for services 720 - - - - 720 Operating grants and contributions 1,045,845 718,622 - - - 1,764,467 Total program revenues 1,046,565 718,622 - - - 1,765,187 Net program expense ( 4,212,967) ( 2,194,507) ( 718,622) - - ( 7,126,096) General revenues: Tax revenues 5,183,398 5,183,398 796,503 96,029 222,472 11,481,800 Non-tax general revenues 612,035 241,406 14,791 13,403 3,256 884,891 Total general revenues 5,795,433 5,424,804 811,294 109,432 225,728 12,366,691 Change in net position 1,582,466 3,230,297 92,672 109,432 225,728 5,240,595 Beginning net position 17,297,155 7,972,981 2,902,134 803,676 578,494 29,554,440 Ending net position 518,879,621 511,203,278 52,994,806 5913,108 $804,222 $34,795,035 66 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 16 - TAX ABATEMENT AGREEMENTS The City has approved value limitation agreements with companies for a limitation on the appraised value of properties within the City pursuant to Chapter 312 of the Texas Tax Code, as amended, i.e., the Property Tax Abatement Act. Under these agreements, the City has agreed to abate varying amounts of property taxes levied on qualified improvements during the abatement period. These abatements may be granted to businesses that construct improvements within certain areas designated by the Mayor and City Council. For the fiscal year ended September 30, 2022, the City abated property taxes totaling $1,718,655 under this program and received payments in lieu of taxes totaling$1,439,374. Note 17 - COMMITMENTS AND CONTINGENCIES Litigation The City is a defendant in various lawsuits. In the opinion of the City's management, any unrecorded liabilities resulting from such suits will not materially affect the financial position of the City. Contract Commitment with West Texas Utilities Company In 1977,the City and Wichita County Water Improvement District Number 2 entered into a sixty-year contract with the West Texas Utilities Company (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, 2022 was $.404046 per one thousand gallons. This contract can be terminated at any time by the Company. If the contract is terminated, the Company is required to make a maximum termination payment equal to the minimum charges which would have become due and payable during the following twenty-four month period. In December 2021,this contract was assumed by Oklaunion Industrial Park, LLC. 67 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2022 Note 17 - COMMITMENTS AND CONTINGENCIES(CONT'D.) Contract Commitments At September 30, 2022, the City was committed to various contracts. The amounts for which the various funds are committed to complete these contracts are as follows: General Fund $ 3,125,208 Nonmajor Governmental Funds 2,569,345 Water and Sewer Fund 6,945,536 Sanitation Fund 166,504 Non major Enterprise Funds 2,580,045 Total contract commitments-City $15,386,638 Federal and State Grants-Compliance Audits The City participates in numerous Federal and State grants, on both a direct and state pass-through basis, as well as on a service-provider basis. Principal among these are Community Development Block Grants, Section 8 Housing Assistance, Home Investment Partnership Agreement Program, and numerous health-related grants. In connection with these grants,the City is required to comply with specific terms and agreements as well as applicable Federal and State laws and regulations. Such compliance is subject to review and audit by the grantors and their representatives. In the opinion of management, the City has complied with all requirements. However, since such programs are subject to future audit or review, the possibility of disallowed expenditures exists. In the event of any disallowance of claimed expenditures, the City expects the resulting liability to be immaterial. Note 18 - PRIOR PERIOD ADJUSTMENT During fiscal year 2022, the City adopted GASB Statement No. 87, Leases. Prior to the implementation of GASB 87, certain City leases with an initial noncancelable period of more than one year were reported as operating leases. After the implementation of GASB 87, these leases and related assets were reported as right-to-use leased assets and right-to-use leased liabilities. The City's lease related to Regional Airport facilities was required to be reclassified under this new standard. The effect of reporting this lease as a right-to-use leased asset and right-to-use lease liability was an increase to right-to-use leased assets, net by $2,300,076 and an increase to right-to- use leased liabilities by$2,901,496 in the statement of net position for the Regional Airport Fund and Business-type Activities. Amounts reported as prepaid expenses as of September 30, 2021 were also reduced by $32,730 as part of this restatement. Therefore, the total prior period adjustment was a reduction in the beginning net position for the Regional Airport Fund and Business-type Activities of $634,151. 68 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2022 Note 19 - SUBSEQUENT EVENT Purchase of Fire Apparatus via Financing Arrangement In December 2021, the City approved the replacement of front-line fire apparatus. This purchase will be financed through the issuance of a note payable. However, the equipment was not delivered by September 30, 2022.Therefore, no assets or liabilities related to this transaction have been reflected during the year ended September 30, 2022. The total principal and interest payments will be $11,165,446 and will be repaid over 11 annual payments of $1,015,041. These annual payments begin on October 1, 2023. 69 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT B-1 CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE-GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 74,429,860 $ 74,429,860 $ 80,448,805 $ 6,018,945 Charges for services 2,786,297 2,786,297 2,974,901 188,604 Licenses and permits 1,932,100 1,932,100 2,303,431 371,331 Fines and forfeitures 2,548,781 2,548,781 2,303,149 (245,632) Contributions 185,696 185,696 239,454 53,758 Miscellaneous revenue 2,205,078 2,205,078 2,864,211 659,133 Total revenues 84,087,812 84,087,812 91,133,951 7,046,139 Expenditures: Current: Administrative services 14,635,299 16,571,978 15,320,078 1,251,900 Police 28,909,301 28,909,301 27,830,038 1,079,263 Fire 18,645,596 18,684,466 18,427,056 257,410 Parks and recreation 6,495,407 6,495,407 5,755,938 739,469 Accounting/finance 894,155 894,155 836,651 57,504 Community development 2,541,552 2,541,552 2,405,539 136,013 Public works 5,825,328 5,837,328 5,407,106 430,222 Health 3,677,046 3,622,196 3,448,077 174,119 Traffic and transportation 1,876,929 1,850,899 2,007,744 (156,845) Capital outlay 3,640,369 4,905,103 2,785,656 2,119,447 Total expenditures 87,140,982 90,312,385 84,223,883 6,088,502 Excess of revenues over(under)expenditures (3,053,170) (6,224,573) 6,910,068 13,134,641 Other financing sources(uses): Transfers in 3,883,430 3,883,430 3,845,430 (38,000) Transfers out (671,463) (671,463) (2,125,976) (1,454,513) Total other financing sources(uses) 3,211,967 3,211,967 1,719,454 (1,492,513) Excess of revenues and other sources over(under)expenditures and other uses 158,797 (3,012,606) 8,629,522 11,642,128 Fund balance-beginning 37,431,705 37,431,705 37,431,705 - Fund balance-ending $ 37,590,502 $ 34,419,099 $ 46,061,227 $ 11,642,128 70 CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM 2021 2020 2019 Total Pension Liability Service cost $ 6,571,147 $ 6,472,668 $ 6,447,967 Interest on total pension liability 20,199,933 19,539,894 18,913,918 Changes of benefit terms - - 12,613,317 Difference between expected and actual experience 937,276 (1,175,031) (1,475,630) Changes of assumptions - - (26,378) Benefit payments/refunds of contributions (15,388,693) (14,828,151) (14,368,878) Net change in total pension liability 12,319,663 10,009,380 22,104,316 Total pension liability, beginning 303,667,034 293,657,654 271,553,338 Total pension liability, ending(a) $ 315,986,697 $303,667,034 $293,657,654 Fiduciary Net Position Contributions-employer $ 7,844,017 $ 7,598,124 $ 5,913,578 Contributions-employee 3,311,593 3,257,273 2,590,541 Net investment income 33,864,112 18,618,015 33,663,780 Benefit payments/refunds of contributions (15,388,693) (14,828,151) (14,368,878) Administrative expenses (156,861) (120,598) (190,372) Other 1,072 (4,705) (5,719) Net change in fiduciary net position 29,475,240 14,519,958 27,602,930 Fiduciary net position, beginning 260,052,262 245,532,304 217,929,374 Fiduciary net position, ending(b) $ 289,527,502 $260,052,262 $245,532,304 Net pension liability, ending= (a)- (b) $ 26,459,195 $ 43,614,772 $ 48,125,350 Fiduciary net position as a %of total pension liability 91.63% 85.64% 83.61% Covered payroll $ 47,308,476 $ 46,532,477 $ 46,321,599 Net pension liability as a %of covered payroll 55.93% 93.73% 103.89% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the standards of GASB 67/68, they should not be shown here. Therefore, we have shown only years for which the new GASB statements have been prepared. 71 EXHIBIT B-2 2018 2017 2016 2015 2014 $ 4,990,566 $ 4,917,413 $ 2,466,531 $ 4,697,339 $ 4,098,031 17,400,438 16,873,140 16,126,720 16,093,246 15,665,423 540,881 (1,117,057) 3,641,511 203,406 (2,042,671) 1,340,184 - (13,335,060) (12,461,447) (12,342,806) (12,073,025) (11,744,340) 9,596,825 8,212,049 9,891,956 10,261,150 5,976,443 261,956,513 253,744,464 243,852,508 233,591,358 227,614,915 $ 271,553,338 $261,956,513 $253,744,464 $ 243,852,508 $233,591,358 $ 5,783,625 $ 5,565,648 $ 5,339,437 $ 5,639,053 $ 5,379,333 2,558,451 2,470,741 2,494,525 2,497,984 2,303,770 (6,883,878) 28,538,620 13,331,438 296,795 11,109,980 (13,335,060) (12,461,447) (12,342,806) (12,073,025) (11,744,340) (133,122) (147,954) (150,608) (180,789) (116,005) (6,955) (7,498) (8,114) (8,931) (9,538) (12,016,939) 23,958,110 8,663,872 (3,828,913) 6,923,200 229,946,313 205,988,203 197,324,331 201,153,244 194,230,044 $ 217,929,374 $229,946,313 $205,988,203 $ 197,324,331 $201,153,244 $ 53,623,964 $ 32,010,200 $ 47,756,261 $ 46,528,177 $ 32,438,114 80.25% 87.78% 81.18% 80.92% 86.11% $ 45,081,895 $ 44,380,980 $ 44,793,885 $ 45,036,746 5 41,538,672 118.95% 72.13% 106.61% 103.31% 78.09% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TEXAS MUNICIPAL RETIREMENT SYSTEM 2022 2021 2020 Actuarial determined contribution $ 8,805,755 $ 7,624,424 $ 7,185,753 Contributions in relation to the actuarially determined contribution (8,805,755) (7,624,424) (7,185,753) Contribution deficiency Covered payroll $ 53,500,680 $ 46,206,994 $ 46,894,603 Contributions as a percentage of covered payroll 16.46% 16.50% 15.32% Valuation Date: Actuarially determined contribution rates are calculated as of December 31 and become effective 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll,Closed Remaining Amortization Period 24 years Asset Valuation Method 10 Year smoothed market; 12%soft corridor Inflation 2.5% Salary Increases 3.50%to 11.50%including inflation Investment Rate of Return 6.75% Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014-2018 Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females.The rates are projected on a fully generational basis with scale UMP. Other Information: There were no benefit changes during the year. 72 EXHIBIT B-3 2019 2018 2017 2016 2015 $ 5,877,907 $ 5,675,065 $ 5,521,772 $ 5,427,145 $ 5,422,031 (5,877,907) (5,675,065) (5,521,772) (5,427,145) (5,422,031) $ - $ $ - $ - $ $ 45,968,759 $ 44,522,000 $ 44,687,123 $ 44,674,967 $ 42,951,296 12.79% 12.75% 12.36% 12.15% 12.62% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND 2021 2020 2019 Total Pension Liability Service cost $ 3,462,346 $ 3,066,397 $ 2,916,767 Interest on total pension liability 6,175,999 6,287,518 6,110,936 Changes of benefit terms - - - Difference between expected and actual experience (2,700,656) - (399,085) Changes of assumptions (20,894,841) 8,631,596 3,933,059 Benefit payments/refunds of contributions (6,535,299) (5,901,298) (5,759,722) Net change in total pension liability (20,492,451) 12,084,213 6,801,955 Total pension liability, beginning 137,970,820 125,886,607 119,084,652 Total pension liability, ending(a) $ 117,478,369 $ 137,970,820 $ 125,886,607 Fiduciary Net Position Contributions-employer $ 1,615,588 $ 1,551,830 $ 1,442,485 Contributions-employee 1,583,797 1,551,830 1,468,465 Net investment income 8,128,492 7,864,359 9,142,584 Benefit payments/refunds of contributions (6,535,299) (5,901,298) (5,759,722) Administrative expenses (266,037) (115,915) (111,432) Other 3,386 - - Net change in fiduciary net position 4,529,927 4,950,806 6,182,380 Fiduciary net position, beginning 57,828,760 52,877,954 46,695,574 Fiduciary net position, ending(b) $ 62,358,687 $ 57,828,760 $ 52,877,954 Net pension liability, ending= (a)-(b) $ 55,119,682 $ 80,142,060 $ 73,008,653 Fiduciary net position as a %of total pension liability 53.08% 41.91% 42.00% Covered payroll $ 12,183,054 $ 11,937,154 $ 11,295,885 Net pension liability(asset) as a %of covered payroll 452.43% 671.37% 646.33% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the standards of GASB 67/68, they should not be shown here. Therefore, we have shown only years for which the new GASB statements have been prepared. 73 EXHIBIT B-4 2018 2017 2016 2015 2014 $ 3,073,858 $ 2,859,969 $ 1,560,472 $ 1,493,672 $ 1,447,068 5,899,445 5,728,347 5,827,804 5,298,361 5,537,931 (5,007,726) - - 7,781 - - 5,304,698 (2,151,748) (1,542,023) (320,862) (1,453,521) 14,862,872 24,107,651 - (423,984) (5,292,918) (5,250,040) (4,543,166) (3,950,906) (3,616,549) (2,780,862) 23,505,846 24,801,013 1,306,885 2,623,604 121,865,514 98,359,668 73,558,655 72,251,770 69,628,166 $119,084,652 $ 121,865,514 $ 98,359,668 $ 73,558,655 $ 72,251,770 $ 1,455,950 $ 1,411,351 $ 1,283,410 $ 1,273,913 $ 1,232,957 1,475,242 1,463,122 1,350,904 1,221,926 1,144,644 (2,225,595) 6,581,299 2,577,572 421,270 3,284,243 (5,292,918) (5,250,040) (4,543,166) (3,950,906) (3,616,549) (96,102) (124,267) (115,843) (87,245) (85,636) - 347,490 250 - - (4,683,423) 4,428,955 553,127 (1,121,042) 1,959,659 51,378,997 46,950,042 46,396,915 47,517,957 45,558,298 $ 46,695,574 $ 51,378,997 $ 46,950,042 $ 46,396,915 $ 47,517,957 $ 72,389,078 $ 70,486,517 $ 51,409,626 $ 27,161,740 $ 24,733,813 39.21% 42.16% 47.73% 63.07% 65.77% $ 11,348,015 $ 11,254,785 $ 10,391,569 $ 10,182,717 $ 9,520,903 637.90% 626.28% 494.72% 266.74% 259.78% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND 2022 2021 2020 Actuarial determined contribution $ 1,633,202 $ 1,587,003 $ 1,508,426 Contributions in relation to the actuarially determined contribution (1,633,202) (1,587,003) (1,508,426) Contribution deficiency Covered payroll $ 12,326,052 $ 12,039,888 $ 11,834,931 Contributions as a percentage of covered payroll 13.25% 13.18% 12.75% Valuation Date: 1/1/2020 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Compensation Remaining Amortization Period 43.3 years(as of 1/1/2020 valuation) Mortality PubS-2010(amount-weighted)tables Retirement Age Based upon tables dependent upon hire date,in conjunction with an actuarial study dated October 2017. Retirement Election Members eligible for the DROP are assumed to elect either straight service retirement benefits or the DROP,whichever is more valuable. Other members are assumed to receive straight service retirement benefits. Termination Rates Based upon service table,in conjunction with an actuarial experience study dated October 2017. Disability Rates Based upon member age,in conjunction with an actuarial experience study dated October 2017. Interest Rate: 7.75%per year,compounded annually, net of expenses.This is supported by the asset allocation of the trust and the long-term expected return by asset class. Salary Increases Based upon service table,in conjunction with an actuarial experience study dated October 2017. 74 EXHIBIT B-5 2019 2018 2017 2016 2015 $ 1,455,581 $ 1,411,351 $ 1,283,410 $ 1,273,913 $ 1,232,957 (1,455,581) (1,411,351) (1,283,410) (1,273,913) (1,232,957) $ - $ - $ - $ - $ $ 11,500,098 $ 11,214,407 $ 10,929,570 $ 11,088,538 $ 10,179,831 12.66% 12.59% 11.74% 11.49% 12.11% Payroll Growth 4.00%per year for amortization of the Unfunded Actuarial Accrued Liability.The assumed payroll growth was approved in conjunction with an actuarial study dated October 2017. Marital Status: 100%of actives are assumed to be married at time of benefit commence- ment. Males are assumed to be two years older than their spouses. Dependent Children: Each member is assumed to have two children.The first child is assumed to have been born when the member was 25.The second child is assumed to be two years younger. It is also assumed that benefits will be paid until each child reaches the age of 20. Contribution Rates: Members-13.00% City-13.00% Actuarial Asset Method: Fair Market Value CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS CITY OF WICHITA FALLS RETIREE HEALTH CARE PLAN 2021 2020 Total OPEB Liability Service cost $ 667,554 $ 557,600 Interest on total OPEB liability 1,593,949 1,471,238 Changes of benefit terms - - Difference between expected and actual experience - 678,603 Changes of assumptions - 733,999 Benefit payments/refunds of contributions (1,667,492) (1,689,454) Net change in total OPEB liability 594,011 1,751,986 Total OPEB liability, beginning 24,114,034 22,362,048 Total OPEB liability, ending(a) $ 24,708,045 $ 24,114,034 Fiduciary Net Position Contributions-employer $ 2,059,484 $ 2,051,116 Contributions-employee -Net investment income 1,459,619 1,022,243 Benefit payments/refunds of contributions (1,667,492) (1,689,454) Administrative expenses - - Other - - Net change in fiduciary net position 1,851,611 1,383,905 Fiduciary net position, beginning 7,959,928 6,576,023 Fiduciary net position, ending(b) $ 9,811,539 $ 7,959,928 Net OPEB liability/(asset), ending= (a)-(b) $ 14,896,506 $ 16,154,106 Fiduciary net position as a %of total OPEB liability 39.71% 33.01% Covered payroll $ 63,620,585 $ 59,760,545 Net OPEB liability(asset) as a %of covered payroll 23.41% 27.03% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the standards of GASB 74/75, they should not be shown here. Therefore, we have shown only years for which the new GASB statements have been prepared. 75 EXHIBIT B-6 2019 2018 2017 $ 523,568 $ 518,007 $ 505,385 1,432,914 1,480,271 1,456,410 (705,047) - 281,546 765,976 - (1,685,098) (1,679,932) (1,584,144) 552,930 379,275 377,651 21,809,118 21,429,843 21,052,192 $ 22,362,048 $ 21,809,118 $ 21,429,843 $ 2,214,088 $ 2,260,421 $ 2,029,653 1,204,836 (374,667) 737,181 (1,685,098) (1,679,932) (1,584,144) (1,202) (4,171) (344,259) - - 1,389,567 204,620 1,178,519 5,186,456 4,981,836 3,803,317 $ 6,576,023 $ 5,186,456 $ 4,981,836 $ 15,786,025 $ 16,622,662 $ 16,448,007 29.41% 23.78% 23.25% $ 58,259,148 $ 57,044,011 $ 55,647,372 27.10% 29.14% 29.56% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS CITY OF WICHITA FALLS RETIREE HEALTH CARE PLAN 2022 2021 Actuarial determined contribution $ 2,196,691 $ 2,125,861 Contributions in relation to the actuarially determined contribution (2,292,372) (1,966,977) Contribution deficiency(excess) $ (95,681) $ 158,884 Covered payroll $ 59,568,372 $ 54,420,074 Contributions as a percentage of covered payroll 3.85% 3.61% Valuation Date: December 31, 2020 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Individual Entry Age Normal Amortization Method Level Percentage of Pay Remaining Amortization Period 11 years; closed Asset Valuation Market Value Investment Rate of Return 6.75%, net of investment expenses, including inflation Inflation 2.50% Salary Increases 3.50%to 10.50%for TMRS and 3.50%to 12.00%for Fire, including inflation Payroll Growth 3.00% Demographic Assumptions TMRS: Based on the experience study covering the four-year period ending December 31, 2014 as conducted for the TMRS. Fire: Based on the January 1, 2018 valuation for the Wichita Falls Firemen's Relief and Retirement Fund. 76 EXHIBIT B-7 2020 2019 2018 $ 2,198,413 $ 2,134,381 $ 2,072,215 (2,153,169) (2,453,913) (2,072,215) $ 45,244 $ (319,532) $ - $ 55,361,994 $ 58,359,009 $ 55,042,215 3.89% 4.20% 3.76% Mortality TMRS: For healthy retirees, the gender-distinct RP-2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. Fire: The gender-distinct RP-2000 Combined Healthy Mortality Tables projected to year 2024 using Scale AA. Participation Rates TMRS: 45% of employees retiring after the age of 49 or with disability at any age were assumed to elect retiree health care benefits through the City. 0% of TMRS employees retiring before the age of 49 were assumed to elect coverage. Fire: 70% of employees retiring at any age were assumed to elect retiree health care benefits through the City. Healthcare Cost Trend Rates Initial rate of 7.10%declining to ultimate rates of 4.25%after 14 years. Other Information: There were no benefit changes during the year. CITY OF WICHITA FALLS, TEXAS NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2022 Budgetary Information Demonstrating compliance with the adopted budget is an important component of a government's accountability to the public. Many citizens participate in the process of establishing the annual operating budgets of state and local governments, and have a keen interest in following the actual financial progress of their governments over the course of the year. The City and many other governments revise their original budgets over the course of the year for a variety of reasons. Under the new reporting model, governments will continue to provide budgetary comparison information in their annual reports. An important change, however, is a requirement to add the government's original budget to the current comparison of final budget and actual results. The City adheres to the following procedures in establishing the operating budget reflected in the basic financial statements: On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted. The budget is legally enacted by the City Council through passage of appropriation and tax levying ordinances prior to September 30 and is published under a separate cover. An annual budget, including debt service requirements, is legally adopted for the General Fund on a basis which is consistent with generally accepted accounting principles. The City Council must approve any transfer of appropriation balances or portions thereof from one department to another. The City Manager has the authority, without City Council approval, to transfer appropriation balances from one expenditure account to another within a single department of the City. Supplemental appropriations of$3,171,403 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. Texas Municipal Retirement System Changes of benefit terms: For measurement date 12/31/2019, amounts reported as changes of benefit terms resulted from the City adopting a 7%employee contribution rate for all employees. 77 CITY OF WICHITA FALLS, TEXAS NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONT'D.) SEPTEMBER 30,2022 Wichita Falls Firemen's Relief and Retirement Fund Changes of benefit terms: For measurement date 12/31/2018, amounts reported as changes of benefit terms resulted from the following benefit amendments that were implemented into the Fund for all active participants: - A maximum accrued benefit cap of$100,000 per year - The average final compensation period was increased from 3 years to 5 years - The normal form of annuity payments was amended from a 66 2/3%Joint &Survivor Annuity to a Life Annuity Effective April 20, 2016,there have been multiple changes in benefits, as follows: - The member contribution rate was increased from 12%to 13%of salary for all members. - All future new entrants will accrue benefits under a "Tier 2" benefit structure. Changes of assumptions: For purposes of determining the GASB discount rate at the 12/31/2019 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 4.99%.The discount rate was decreased from 5.13%to 4.99%. For purposes of determining the GASB discount rate at the 12/31/2018 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.13%.The discount rate was increased from 5.03%to 5.13%. For purposes of determining the GASB discount rate at the 12/31/2017 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.03%.The discount rate was decreased from 5.81%to 5.03%. As a result of an actuarial experience study dated October 6, 2017, the following assumption changes were approved by the Board of Trustees: - The investment return assumption was lowered from 8.00% to 7.75% per year, net of all expenses. - The assumed rates of salary increases were amended. - The assumed rates of retirement were amended. - The assumed rates of withdrawal were amended. - The assumed rates of disablement were amended. For purposes of determining the GASB discount rate at the 12/31/2016 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.81%.The discount rate was decreased from 8.00%to 5.81%. 78 COMBINING FINANCIAL STATEMENTS Nonmajor Governmental Funds Special Revenue Funds The special revenue funds are used to account for the proceeds from specific revenue sources(other than for major capital projects or proprietary funds) that are either legally restricted to be expended for specified purposes or have revenue sources committed for specific purposes. Community Development Block Grant Fund The Community Development Block Grant Fund accounts for federal block grant revenues and related expenditures. Section 8 Housing Fund The Section 8 Housing Fund accounts for federal funds received to subsidize rents and housing payments for lower income families within the City. Home Investment Partnership Agreement Fund The Home Investment Partnership Agreement Fund accounts for federal funds received to provide home ownership opportunities to low income, first-time homebuyers through the acquisition, rehabilitation and resale of single-family dwellings that are currently owned by governmental agencies. MPEC/Hotel/Motel Tax Fund The MPEC/Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is expended on programs promoting the growth of the City of Wichita Falls. These funds are used to support the City's Multi-Purpose Events Center. Hotel/Motel Venue Tax Fund The Hotel/Motel Venue Tax Fund accounts for revenues derived from an additional occupancy tax which is expended on projects classified as a venue such as an arena, coliseum, stadium, or other facilities. Airport Improvement Grant Fund The Airport Improvement Grant Fund is used to account for improvements made to the City's Regional Airport that are funded by state and federal grants. Golf Fund The Golf Fund accounts for the activities at the Weeks Park Golf Course. Miscellaneous Special Revenue Fund The Miscellaneous Special Revenue Fund accounts for various revenues generated in the form of contributions, fees, concessions, rents and other charges and their related expenditures. This fund also includes revenues derived from various grants for health and police programs. The revenues in this fund are expended to support the activity generating the revenue or as designated by the contributor. This fund is not required to have a legally adopted budget; therefore no budgetary comparison schedule is presented. Debt Service Funds Debt Service Fund The Debt Service Fund is established by ordinances authorizing the issuance of general obligation bonds to provide for the payment of bond principal and interest. An ad valorem tax rate and tax levy are required to be computed and levied which will be sufficient to produce the funds required to pay principal and interest as they come due. This fund is also used to provide for the payment of paying agent fees. Excess Sales Tax Fund The Excess Sales Tax Fund is used to account for and administer the excess sales tax collected related to the property reduction tax. This fund is not required to have a legally adopted budget; therefore no budgetary comparison schedule is presented. Capital Projects Funds The capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by federal grants or proprietary funds. 2018-A Bond Projects This fund was established to account for the proceeds of the Series 2018-A General Obligation Bonds that were issued for the purpose of street improvements within the City. Venue Tax Bond Projects This fund was established to account for projects financed by the Venue Tax Revenue Bonds, Series 2021. These funds are to be used to make renovations to the Multi-Purpose Events Center and Memorial Auditorium. Miscellaneous Capital Projects Funds This fund is an accumulation of several projects that have been undertaken over the years including library renovations,street improvements and drainage improvements. Permanent Fund The permanent fund is used to account for principal trust amounts received and related interest income. The interest earnings of this fund may be used for maintenance of the City's cemeteries. CITY OF WICHITA FALLS,TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2022 Special Revenue Home MPEC/ Community Investment Hotel/ Hotel/ Airport Development Section 8 Partnership Motel Motel Improvement Block Grant Housing Agreement Tax Venue Tax Grant ASSETS Cash and cash equivalents $ - $ 1,905,619 $ 156,341 $ 1,561,805 $ 1,248,404 $ - Receivables: Taxes and assessments - - - 185,268 52,939 - Government agencies 1,554,459 - 1,450,617 - - 1,686,995 Other 8,455 - - (3,944) - - Inventory - - - 25,318 - - Prepaid items - - - 2,680 - - Other assets - - - 20,000 - - Total assets $ 1,562,914 $ 1,905,619 $ 1,606,958 $ 1,791,127 $ 1,301,343 $ 1,686,995 LIABILITIES AND FUND BALANCE Liabilities Accounts payable-trade $ 8,614 $ 707 $ - $ 96,525 $ - $ - Accrued payroll 4,822 8,482 250 39,054 - - Payable to other City funds 381,343 - - 1,192,613 - 1,767,762 Payable to government agencies - 72,460 20,000 9,904 - - Other liabilities 2,725 1 24,744 24,797 - 5,614 Unearned revenue - - - 18,750 -Total liabilities 397,504 81,650 44,994 1,381,643 - 1,773,376 Deferred inflows of resources Unavailable revenues - - - - - - Fund balance: Nonspendable: Permanent fund principal - - - - - - Restricted for: Debt service - - - - - - Capital projects - - - - - - Federal and state grant programs 1,165,410 1,823,969 1,561,964 - - - Tourism - - - 409,484 1,301,343 - Committed for: Golf course - - - - -Local projects - - - - - - Unassigned - - - - - (86,381) Total fund balance 1,165,410 1,823,969 1,561,964 409,484 1,301,343 (86,381) Total liabilities,deferred inflows of resources and fund balances $ 1,562,914 $ 1,905,619 $ 1,606,958 $ 1,791,127 $ 1,301,343 $ 1,686,995 79 EXHIBIT C-1 Permanent Debt Service Capital Projects Fund Total Miscellaneous 2018-A Venue Tax Miscellaneous Nonmajor Golf Special Debt Excess Bond Bond Capital Perpetual Governmental Fund Revenue Service Sales Tax Projects Projects Projects Care Funds $ 449,615 $ 1,441,602 $ 638,329 $ 435,549 $ 3,655,186 $ 1,977,411 $ 722,351 $ 1,639,863 $ 15,832,075 - - 45,261 - - - - - 283,468 1,866,791 2,006 - - - - - 6,560,868 (126,988) 38,866 - - - - - - (83,611) 25,318 - 1,214 655,000 - - - - - 658,894 80,640 3,000 - - - - - - 103,640 $ 403,267 $ 3,351,473 $ 1,340,596 $ 435,549 $ 3,655,186 $ 1,977,411 $ 722,351 $ 1,639,863 $ 23,380,652 $ 83,665 $ 253,943 $ 6,625 $ - $ 272,014 $ 173,548 $ 8,250 $ - $ 903,891 - 59,761 - - - - - - 112,369 (2,625) - 3,339,093 - 2,302 - - - - - - 104,666 682 106,976 - - 209,353 - 58,662 - 433,554 - 37,236 - - - - - - 55,986 84,347 460,218 6,625 - 481,367 173,548 64,287 - 4,949,559 - - 43,283 - - - - - 43,283 - - - - - - - 1,639,863 1,639,863 - - 1,290,688 435,549 - - - - 1,726,237 3,173,819 1,803,863 658,064 - 5,635,746 - - - - - - - - 4,551,343 1,710,827 318,920 - - - - - - - 318,920 - 2,891,255 - - - - - - 2,891,255 (86,381) 318,920 2,891,255 1,290,688 435,549 3,173,819 1,803,863 658,064 1,639,863 18,387,810 $ 403,267 $ 3,351,473 $ 1,340,596 $ 435,549 $ 3,655,186 $ 1,977,411 $ 722,351 $ 1,639,863 $ 23,380,652 CITY OF WICHITA FALLS,TEXAS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Special Revenue Home MPEC/ Community Investment Hotel/ Hotel/ Airport Development Section 8 Partnership Motel Motel Improvement Block Grant Housing Agreement Tax Venue Tax Grant Revenues: Taxes $ - $ - $ - $ 2,199,277 $ 624,886 $ - Charges for services 5,516 - - - - - Fines and forfeitures - - - - - - Intergovernmental revenue 1,244,016 4,347,420 434,184 - - 1,686,995 Contributions - - - 35,500 - - Miscellaneous revenue 5,768 43,997 23,400 1,704,673 - - Total revenues 1,255,300 4,391,417 457,584 3,939,450 624,886 1,686,995 Expenditures: Current: Administrative services 130,622 - - 58,325 3,000 - Police - - - - - - Fire - - - - - - Parks and recreation - - - - - - Accounting/finance - - - - - - Community development 880,828 4,288,948 100,832 - - - Public works - - - - - - Health - - - - - - Traffic and transportation - - - - - 54,466 Multi-Purpose Events Center - - - 4,295,907 - - Capital outlay - - - - - - Debt service: Principal retirement - - - - 50,000 - Interest and paying agent fees - - - - 105,400 - Bond issuance costs - - - - - - Total expenditures 1,011,450 4,288,948 100,832 4,354,232 158,400 54,466 Excess of revenues over (under)expenditures 243,850 102,469 356,752 (414,782) 466,486 1,632,529 Other financing sources(uses): Bond proceeds-refunding bonds - - - - - - Premium on refunding bond proceeds - - - - - - Payment to refunded bond escrow agent - - - - - - Transfers in - - - 414,803 - - Transfers out - - - - - (938,944) Total other financing sources(uses) - - - 414,803 - (938,944) Net change in fund balance 243,850 102,469 356,752 21 466,486 693,585 Fund balance-beginning 921,560 1,721,500 1,205,212 409,463 834,857 (779,966) Fund balance-ending $ 1,165,410 $ 1,823,969 $ 1,561,964 $ 409,484 $ 1,301,343 $ (86,381) 80 EXHIBIT C-2 Permanent Debt Service Capital Projects Fund Total Miscellaneous 2018-A Venue Tax Miscellaneous Nonmajor Golf Special Debt Excess Bond Bond Capital Perpetual Governmental Fund Revenue Service Sales Tax Projects Projects Projects Care Funds $ - $ - $ 1,928,288 $ - $ - $ - $ - $ - $ 4,752,451 585,018 63,050 - - - - - - 653,584 364,829 - - - - - - 364,829 5,390,169 - - - - 461,061 - 13,563,845 872,941 1,492,654 - - - 413,965 - 2,815,060 480,253 397,331 37,172 3 27,200 17,922 7,471 169,302 2,914,492 1,065,271 7,088,320 3,458,114 3 27,200 17,922 882,497 169,302 25,064,261 890,424 198,660 - - - 134,179 - - 1,415,210 348,619 - - - - - - 348,619 789,241 - - - - - - 789,241 19,811 - - - - - - 19,811 12,625 - - - - - 12,625 272,955 - - - - - - 5,543,563 4,978 - - 265 - - - 5,243 3,647,765 - - - - - - 3,647,765 611,433 - - - - - - 665,899 4,295,907 319,200 - - 3,736,426 457,562 968,775 - 5,481,963 3,563,482 - - - - - 3,613,482 1,546,208 - - - - - 1,651,608 82,713 - - 750 - - 83,463 890,424 6,212,662 5,205,028 - 3,736,691 592,491 968,775 - 27,574,399 174,847 875,658 (1,746,914) 3 (3,709,491) (574,569) (86,278) 169,302 (2,510,138) 3,099,822 - - - - - 3,099,822 275,205 - - - - - 275,205 (3,292,314) - - - - - (3,292,314) 236,222 1,505,956 - - - - - 2,156,981 (457,188) - - - - - - (1,396,132) (220,966) 1,588,669 - - - - - 843,562 174,847 654,692 (158,245) 3 (3,709,491) (574,569) (86,278) 169,302 (1,666,576) 144,073 2,236,563 1,448,933 435,546 6,883,310 2,378,432 744,342 1,470,561 20,054,386 $ 318,920 $ 2,891,255 $ 1,290,688 $ 435,549 $ 3,173,819 $ 1,803,863 $ 658,064 $ 1,639,863 $ 18,387,810 EXHIBIT C-3 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-COMMUNITY DEVELOPMENT BLOCK GRANT FUND FOR THE YEAR ENDED SEPTEMBER 30,2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ - $ - $ 5,516 $ 5,516 Intergovernmental revenue 1,544,016 1,544,016 1,244,016 (300,000) Miscellaneous revenue - - 5,768 5,768 Total revenues 1,544,016 1,544,016 1,255,300 (288,716) Expenditures: Administrative services 191,756 191,756 130,622 61,134 Parks and recreation 235,300 235,300 - 235,300 Community development 1,116,960 1,122,310 880,828 241,482 Total expenditures 1,544,016 1,549,366 1,011,450 537,916 Excess of revenues over(under) expenditures - (5,350) 243,850 249,200 Fund balance-beginning 921,560 921,560 921,560 - Fund balance-ending $ 921,560 $ 916,210 $ 1,165,410 $ 249,200 81 EXHIBIT C-4 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-SECTION 8 HOUSING FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 3,268,302 $ 3,268,302 $ 4,347,420 $ 1,079,118 Miscellaneous revenue - - 43,997 43,997 Total revenues 3,268,302 3,268,302 4,391,417 1,123,115 Expenditures: Community development 3,273,302 3,273,302 4,288,948 (1,015,646) Total expenditures 3,273,302 3,273,302 4,288,948 (1,015,646) Excess of revenues over(under)expenditures (5,000) (5,000) 102,469 107,469 Fund balance-beginning 1,721,500 1,721,500 1,721,500 - Fund balance-ending $ 1,716,500 $ 1,716,500 $ 1,823,969 $ 107,469 82 EXHIBIT C-5 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-HOME INVESTMENT PARTNERSHIP AGREEMENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 434,184 $ 434,184 $ 434,184 $ - Miscellaneous revenue - - 23,400 23,400 Total revenues 434,184 434,184 457,584 23,400 Expenditures: Community development 434,183 434,184 100,832 333,352 Total expenditures 434,183 434,184 100,832 333,352 Excess of revenues over(under)expenditures 1 - 356,752 356,752 Fund balance-beginning 1,205,212 1,205,212 1,205,212 - Fund balance-ending $ 1,205,213 $ 1,205,212 $ 1,561,964 $ 356,752 83 EXHIBIT C-6 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- MPEC/HOTEL/MOTEL TAX FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,100,000 $ 2,100,000 $ 2,199,277 $ 99,277 Contributions - - 35,500 35,500 Miscellaneous revenue 1,409,671 1,409,671 1,704,673 295,002 Total revenues 3,509,671 3,509,671 3,939,450 429,779 Expenditures: Administrative services 60,500 60,500 58,325 2,175 Multi-Purpose Events Center 3,849,171 3,849,171 4,295,907 (446,736) Total expenditures 3,909,671 3,909,671 4,354,232 (444,561) Excess of revenues over(under)expenditures (400,000) (400,000) (414,782) (14,782) Other financing sources(uses): Transfers in 400,000 400,000 414,803 14,803 Excess of revenues and other sources over(under)expenditures and other uses - - 21 21 Fund balance-beginning 871 871 409,463 408,592 Fund balance-ending $ 871 $ 871 $ 409,484 $ 408,613 84 EXHIBIT C-7 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-GOLF FUND FOR THE YEAR ENDED SEPTEMBER 30,2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ 830,000 $ 830,000 $ 585,018 $ (244,982) Miscellaneous revenue - - 480,253 480,253 Total revenues 830,000 830,000 1,065,271 235,271 Expenditures: Administrative services 910,000 910,000 890,424 19,576 Total expenditures 910,000 910,000 890,424 19,576 Excess of revenues over(under)expenditures (80,000) (80,000) 174,847 254,847 Other financing sources(uses): Transfers in 80,000 80,000 - (80,000) Total other financing sources(uses) 80,000 80,000 - (80,000) Excess of revenues and other sources over(under)expenditures and other uses - - 174,847 174,847 Fund balance-beginning 144,073 144,073 144,073 - Fund balance-ending $ 144,073 $ 144,073 $ 318,920 $ 174,847 85 EXHIBIT C-8 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,033,384 $ 2,033,384 $ 1,928,288 $ (105,096) Contributions 1,881,254 1,881,254 1,492,654 (388,600) Miscellaneous revenue - - 37,172 37,172 Total revenues 3,914,638 3,914,638 3,458,114 (456,524) Expenditures: Accounting/finance - - 12,625 (12,625) Debt service-principal 3,815,000 3,815,000 3,563,482 251,518 Debt service-interest and paying agent fees 1,605,594 1,605,594 1,546,208 59,386 Debt service-bond issuance costs - - 82,713 (82,713) Total expenditures 5,420,594 5,420,594 5,205,028 215,566 Excess of revenues over(under)expenditures (1,505,956) (1,505,956) (1,746,914) (240,958) Other financing sources(uses): Bond proceeds-refunding bonds - - 3,099,822 3,099,822 Premium on refunding bond proceeds - - 275,205 275,205 Payment to refunded bond escrow agent - - (3,292,314) (3,292,314) Transfers in 1,505,956 1,505,956 1,505,956 - Total other financing sources(uses) 1,505,956 1,505,956 1,588,669 82,713 Excess of revenues and other sources over(under)expenditures and other uses - - (158,245) (158,245) Fund balance-beginning 1,448,933 1,448,933 1,448,933 - Fund balance-ending $ 1,448,933 $ 1,448,933 $ 1,290,688 $ (158,245) 86 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. Kickapoo Airport Fund During the year ended September 30, 2000, the City acquired Kickapoo Downtown Airport, a private airport. The Kickapoo Airport Fund was established to account for the operating revenues and expenses of the airport. Transit Fund The Transit Fund accounts for the operation of the Wichita Falls transit system. This system is supported from passenger fees, subsidies from the General Fund and subsidies from the Federal Transit Administration. Stormwater Drainage Fund The Stormwater Drainage Fund was established to account for operating revenues and expenses associated with the Storm Water Drainage Utility System (System). The System was established effective May 1, 2001 and provides a funding mechanism for drainage improvements in the City. Waterpark Fund The Waterpark Fund was established to account for the operating revenues and expenses of the Castaway Cove Waterpark. The waterpark was purchased on February 4,2010. CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30,2022 Kickapoo Airport Transit Assets Current assets: Cash and cash equivalents $ (134,690) $ (7,310) Receivables(net of allowance for uncollectible accounts): Customer and trade - - Government agencies - 629,372 Other 75,505 10,129 Inventory 81,592 69,529 Prepaid items 6 - Total current assets 22,413 701,720 Capital assets,net of accumulated depreciation 11,501,507 18,177,028 Total assets 11,523,920 18,878,748 Deferred outflows of resources Pension-related 25,522 148,157 OPEB-related 7,506 46,236 Total deferred outflows of resources 33,028 194,393 Liabilities Current liabilities payable from current assets: Accounts payable-trade 3,425 7,505 Accrued payroll 5,868 29,597 Accrued vacation and sick leave 9,531 62,535 Payable to other City funds - 1,703,162 Payable to government agencies 4 - Other liabilities 20,057 1,116,150 Total current liabilities payable from current assets 38,885 2,918,949 Long-term liabilities: Net pension liability 94,384 547,917 Net OPEB liability 37,241 229,406 Total long-term liabilities 131,625 777,323 Total liabilities 170,510 3,696,272 Deferred inflows of resources Pension-related 64,867 376,564 OPEB-related 3,637 22,405 Total deferred inflows of resources 68,504 398,969 Net position Net investment in capital assets 11,501,507 18,177,028 Unrestricted (183,573) (3,199,128) Total net position $ 11,317,934 $ 14,977,900 87 EXHIBIT D-1 Total Nonmajor Stormwater Enterprise Drainage Waterpark Funds $ 11,251,603 $ 1,074,907 $ 12,184,510 402,242 - 402,242 629,372 (11,626) 74,008 151,121 11,812 11,818 11,653,845 1,075,093 13,453,071 30,323,038 2,444,629 62,446,202 41,976,883 3,519,722 75,899,273 35,463 6,914 216,056 12,009 8,106 73,857 47,472 15,020 289,913 195,010 - 205,940 6,458 - 41,923 18,243 - 90,309 1,703,162 1,140 1,144 7,605 2,786 1,146,598 227,316 3,926 3,189,076 131,149 25,572 799,022 59,586 40,221 366,454 190,735 65,793 1,165,476 418,051 69,719 4,354,552 90,134 17,574 549,139 5,820 3,928 35,790 95,954 21,502 584,929 30,323,038 2,444,629 62,446,202 11,187,312 998,892 8,803,503 $ 41,510,350 $ 3,443,521 $ 71,249,705 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIOP NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Kickapoo Airport Transit Operating revenues: Charges for services $ - $ 488,259 Rents, concessions and other 1,127,421 50,378 Total operating revenues 1,127,421 538,637 Operating expenses: Personnel services 236,890 1,478,813 Supplies and materials 734,853 686,247 Maintenance and repairs 17,603 297,144 Utilities and other services 78,355 246,590 Insurance and contract support 37,570 53,671 Other expenses 53,134 85,750 Depreciation and amortization 514,331 311,889 Total operating expenses 1,672,736 3,160,104 Operating income (loss) (545,315) (2,621,467) Nonoperating revenues(expenses): Investment earnings 575 - Intergovernmental operating grants - 3,861,105 Total nonoperating revenues(expenses) 575 3,861,105 Income (loss) before capital contributions and transfers (544,740) 1,239,638 Capital contributions - - Transfers in 453,744 72,973 Transfers out (23,878) - Change in net position (114,874) 1,312,611 Net position -beginning 11,432,808 13,665,289 Net position -ending $ 11,317,934 $ 14,977,900 88 EXHIBIT D-2 Total Non major Stormwater Enterprise Drainage Waterpark Funds $ 3,751,220 $ 1,170,531 $ 5,410,010 - 506,868 1,684,667 3,751,220 1,677,399 7,094,677 372,718 474,321 2,562,742 10,144 278,286 1,709,530 90,783 63,318 468,848 213,090 521,398 1,059,433 100 66,000 157,341 13,457 34,562 186,903 412,450 245,612 1,484,282 1,112,742 1,683,497 7,629,079 2,638,478 (6,098) (534,402) 45,015 6,932 52,522 - - 3,861,105 45,015 6,932 3,913,627 2,683,493 834 3,379,225 2,337,093 - 2,337,093 18,000 - 544,717 (409,312) - (433,190) 4,629,274 834 5,827,845 36,881,076 3,442,687 65,421,860 $ 41,510,350 $ 3,443,521 $ 71,249,705 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Kickapoo Airport Transit Cash flows from operating activities: Receipts from customers and users $1,199,449 $ 524,755 Payments to suppliers (934,756) (972,069) Payments for interfund services (93,338) (1,126,217) Payments to employees (203,962) (1,208,231) Net cash provided (used) by operating activities (32,607) (2,781,762) Cash flows from noncapital financing activities: Intergovernmental operating grants - 5,082,108 Interfund loan received (repaid) - 250,042 Transfers out to other funds (23,878) - Transfers from other funds - 72,973 Net cash provided (used) by noncapital financing activities (23,878) 5,405,123 Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (2,633,671) Proceeds from sale of capital assets - - Net cash provided (used)for capital and related financing activities - (2,633,671) Cash flows from investing activities: Interest on investments 575 - Net cash provided by investing activities 575 - Net Increase (Decrease) in Cash and Cash Equivalents (55,910) (10,310) Cash and Cash Equivalents- Beginning (78,780) 3,000 Cash and Cash Equivalents- Ending $ (134,690) $ (7,310) 89 EXHIBIT D-3 (Page 1 of 2) Total Non major Stormwater Enterprise Drainage Waterpark Funds $ 3,744,753 $ 1,686,418 $ 7,155,375 (84,343) (999,759) (2,990,927) (251,653) (29,798) (1,501,006) (269,240) (420,550) (2,101,983) 3,139,517 236,311 561,459 5,082,108 250,042 (409,312) - (433,190) 72,973 (409,312) - 4,971,933 (567,063) (28,612) (3,229,346) (567,063) (28,612) (3,229,346) 45,015 6,932 52,522 45,015 6,932 52,522 2,208,157 214,631 2,356,568 9,043,446 860,276 9,827,942 $ 11,251,603 $ 1,074,907 $ 12,184,510 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS(CONT'D.) NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Kickapoo Airport Transit Cash flows from operating activities: Operating income (loss) $ (545,315) $ (2,621,467) Adjustments to reconcile operating income (loss) to net cash provided by(used in) operating activities: Depreciation and amortization 514,331 311,889 (Increase) decrease in assets and deferred outflows of resources: Receivables: Customer and trade - - Other 72,028 (13,882) Inventory (34,837) (69,529) Prepaid items - - Deferred outflows- pension-related (5,343) (43,674) Deferred outflows-OPEB-related 1,526 13,438 Increase (decrease) in liabilities and deferred inflows of resources: Accounts payable-trade 2,083 (462,269) Accrued payroll (4,911) (37,945) Accrued vacation and sick leave 2,099 7,770 Payable to government agencies - - Other liabilities - 240,224 Net pension liability (61,327) (258,325) Net OPEB liability (7,991) (69,445) Deferred inflows- pension-related 34,421 218,922 Deferred inflows-OPEB-related 629 2,531 Total adjustments 512,708 (160,295) Net cash provided by(used in) operating activities $ (32,607) $ (2,781,762) Noncash capital and financing activities: Capital assets transferred (to)from other funds $ 453,744 $ - Capital assets contributed by component units - - 90 EXHIBIT D-3 (Page 2 of 2) Total Non major Stormwater Enterprise Drainage Waterpark Funds $ 2,638,478 $ (6,098) $ (534,402) 412,450 245,612 1,484,282 (6,467) - (6,467) 9,019 67,165 - - (104,366) - 1,944 1,944 (12,522) (144) (61,683) (397) (1,977) 12,590 99,471 (282) (360,997) (11,212) (3,650) (57,718) 7,508 (2,103) 15,274 - 63 63 (823) 1,818 241,219 (45,874) (26,666) (392,192) 1,431 9,528 (66,477) 55,521 7,360 316,224 1,953 1,887 7,000 501,039 242,409 1,095,861 $ 3,139,517 $ 236,311 $ 561,459 $ 18,000 $ - $ 471,744 2,337,093 - 2,337,093 Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Fleet Maintenance Fund The Fleet Maintenance Fund accounts for the costs associated with the operation, maintenance and replacement of the City's vehicle and equipment fleet. City departments which use the vehicles and equipment are charged a monthly rental fee based upon actual operating costs associated with each class of vehicle or equipment. Duplicating Services Fund The Duplicating Services Fund accounts for the costs associated with the operation and maintenance of the City's duplicating equipment. City departments which use the duplicating services are charged a fee based upon actual usage. Employee Benefit Trust Fund The Employee Benefit Trust Fund is used to account for and administer group health insurance,which is self-insured by the City,and life insurance for employees and covered dependents. Information Technology Fund The Information Technology Fund accounts for the costs associated with the operation and maintenance of the City's Information Technology assets. City departments which use information technology are charged a fee based on usage. EXHIBIT E-1 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30,2022 Employee Information Fleet Duplicating Benefit Technology Maintenance Services Trust Fund Totals Assets Current assets: Cash and cash equivalents $ 2,052,146 $ 109,590 $ 3,457,282 $ 4,684,913 $ 10,303,931 Restricted cash and cash equivalents - - 8,114,799 - 8,114,799 Receivables: Other 34,062 - 9,182 - 43,244 Inventory 698,394 - - - 698,394 Prepaid items 474,490 327 - - 474,817 Total current assets 3,259,092 109,917 11,581,263 4,684,913 19,635,185 Capital assets,net of accumulated depreciation 22,099,128 - - 4,409,323 26,508,451 Total assets 25,358,220 109,917 11,581,263 9,094,236 46,143,636 Deferred outflows of resources Pension-related 212,156 2,256 6,826 128,387 349,625 OPEB-related 76,859 901 - 34,226 111,986 Total deferred outflows of resources 289,015 3,157 6,826 162,613 461,611 Liabilities Current liabilities: Accounts payable-trade 309,543 3,366 (3,967) 90,076 399,018 Accrued payroll 38,051 420 1,182 24,794 64,447 Accrued vacation and sick leave 122,981 - - 76,406 199,387 Payable to other City funds - - 462,283 - 462,283 Estimated health claims payable - - 891,315 - 891,315 Other liabilities - - 10,555 - 10,555 Notes payable-current maturities 465,597 - - - 465,597 Total current liabilities 936,172 3,786 1,361,368 191,276 2,492,602 Long-term liabilities: Net pension liability 784,597 8,345 25,244 474,801 1,292,987 Net OPEB liability 381,351 4,469 - 169,820 555,640 Total long-term liabilities 1,165,948 12,814 25,244 644,621 1,848,627 Total liabilities 2,102,120 16,600 1,386,612 835,897 4,341,229 Deferred inflows of resources Pension-related 539,225 5,735 17,349 326,313 888,622 OPEB-related 37,245 436 - 16,586 54,267 Total deferred inflows of resources 576,470 6,171 17,349 342,899 942,889 Net position Net investment in capital assets 21,633,531 - - 4,409,323 26,042,854 Unrestricted 1,335,114 90,303 10,184,128 3,668,730 15,278,275 Total net position $ 22,968,645 $ 90,303 $ 10,184,128 $ 8,078,053 $ 41,321,129 91 EXHIBIT E-2 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Employee Information Fleet Duplicating Benefit Technology Maintenance Services Trust Fund Totals Operating revenues: Charges for services $ 10,891,479 $ 118,066 $ - $ 3,512,457 $ 14,522,002 Rents,concessions and other 12,000 - 948,247 - 960,247 Contributions - - 15,186,71E - 15,186,716 Total operating revenues 10,903,479 118,066 16,134,963 3,512,457 30,668,965 Operating expenses: Personnel services 1,746,530 18,082 14,918 1,105,315 2,884,845 Supplies and materials 4,072,692 1,040 - 158,004 4,231,736 Maintenance and repairs 2,283,737 232 - 1,044,281 3,328,250 Utilities and other services 123,925 747 80,910 185,391 390,973 Insurance and contract support 73,566 - 11,955,147 15 12,028,728 Other expenses 220,673 70,086 1,718,844 6,936 2,016,539 Depreciation and amortization 4,399,120 - - 989,674 5,388,794 Total operating expenses 12,920,243 90,187 13,769,819 3,489,616 30,269,865 Operating income(loss) (2,016,764) 27,879 2,365,144 22,841 399,100 Nonoperating revenues(expenses): Investment earnings(loss) - - (1,590,615) - (1,590,615) Gain(loss)on sale of capital assets 110,275 - - - 110,275 Interest expense (18,259) - - - (18,259) Total nonoperating revenues (expenses) 92,016 - (1,590,615) - (1,498,599) Income(loss)before transfers (1,924,748) 27,879 774,529 22,841 (1,099,499) Transfers in 3,953,748 - - - 3,953,748 Transfers out (381,529) - - - (381,529) Change in net position 1,647,471 27,879 774,529 22,841 2,472,720 Net position-beginning 21,321,174 62,424 9,409,599 8,055,212 38,848,409 Net position-ending $ 22,968,645 $ 90,303 $ 10,184,128 $ 8,078,053 $ 41,321,129 92 EXHIBIT E-3 CITY OF WICHITA FALLS,TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 Employee Information Fleet Duplicating Benefit Technology Maintenance Services Trust Fund Totals Cash flows from operating activities: Received from customers and users $ 289,014 $ - $ 4,110,183 $ - $ 4,399,197 Received from interfund charges 10,615,279 118,066 11,348,617 3,512,457 25,594,419 Other operating receipts - - 677,636 - 677,636 Payments to suppliers (6,693,105) (74,097) (14,365,180) (1,548,994) (22,681,376) Payments for interfund services (527,932) (5,771) - (127,477) (661,180) Payments to employees (1,600,198) (17,047) (53,288) (965,783) (2,636,316) Net cash provided by operating activities 2,083,058 21,151 1,717,968 870,203 4,692,380 Cash flows from noncapital financing activities: Interfund loans received(repaid) - - (703,938) - (703,938) Transfers in from other funds 3,953,748 - - - 3,953,748 Transfers out to other funds (381,529) - - - (381,529) Net cash provided(used)by noncapital financing activities 3,572,219 - (703,938) - 2,868,281 Cash flows from capital and related financing activities: Acquisition of capital assets (5,018,993) - - (303,617) (5,322,610) Proceeds from sale of capital assets 110,275 - - - 110,275 Principal paid on long-term debt (456,557) - - - (456,557) Interest and fees paid on long-term debt (18,259) - - - (18,259) Net cash used for capital and related financing activities (5,383,534) - - (303,617) (5,687,151) Cash flows from investing activities: Income(loss)on investments - - (1,590,615) - (1,590,615) Net cash used by investing activities - - (1,590,615) - (1,590,615) Net Increase(Decrease)in Cash and Cash Equivalents 271,743 21,151 (576,585) 566,586 282,895 Cash and Cash Equivalents-Beginning 1,780,403 88,439 12,148,666 4,118,327 18,135,835 Cash and Cash Equivalents-Ending $ 2,052,146 $ 109,590 $ 11,572,081 $ 4,684,913 $ 18,418,730 Cash flows from operating activities: Operating income(loss) $ (2,016,764) $ 27,879 $ 2,365,144 $ 22,841 $ 399,100 Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Depreciation and amortization 4,399,120 - - 989,674 5,388,794 (Increase)decrease in assets and deferred outflows: Receivables: Other 814 - (150) - 664 Inventory 28,323 - - - 28,323 Prepaid items 325 - - - 325 Deferred outflows-pension-related (33,428) (385) 3,207 (25,164) (55,770) Deferred outflows-OPEB-related 26,684 389 - 4,804 31,877 Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade 180,932 (938) (108,622) 73,788 145,160 Accrued payroll (56,561) (627) (3,629) (31,686) (92,503) Accrued vacation and sick leave 13,034 - - 9,147 22,181 Estimated health claims payable - - (489,640) - (489,640) Other liabilities - - 1,623 - 1,623 Net pension liability (594,551) (6,092) (52,176) (321,716) (974,535) Net OPEB liability (137,196) (1,993) - (25,645) (164,834) Deferred inflows-pension-related 269,564 2,912 2,211 170,572 445,259 Deferred inflows-OPEB-related 2,762 6 - 3,588 6,356 Total adjustments 4,099,822 (6,728) (647,176) 847,362 4,293,280 Net cash provided(used)by operating activities $ 2,083,058 $ 21,151 $ 1,717,968 $ 870,203 $ 4,692,380 93 Component Units Discretely Presented Component Units of the City of Wichita Falls are legally separate entities; however, the City is considered to be financially accountable for their operations. The five discretely presented component units are as follows: Wichita Falls Economic Development Corporation The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in May 1997 for the purpose of increasing employment opportunities, primarily through assisting qualified enterprises with funds provided by a portion of the local sales tax. The Corporation operates under the authority of Vernon's Civil Statutes,Article 5190.6,Section 4A. Wichita Falls 4B Sales Tax Corporation The Wichita Falls 4B Sales Tax Corporation is a nonprofit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities and the related maintenance and operating costs of such projects. These projects are funded by a portion of the local sales tax. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6,Section 4B. Wichita Falls Reinvestment Zone#2 The Wichita Falls Reinvestment Zone#2 was created in August 2005 by the City, with the advice and consent of the Wichita Falls Independent School District and Wichita County. The purpose of the Wichita Falls Reinvestment Zone#2 is to capture increments of growth in real property values in the designated zone area from base values established in January 2004 and use the ad valorem taxes derived from the increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the zoned area or for payment of debt service on bonds issued to provide funds for public improvements. Wichita Falls Reinvestment Zone#3 The Wichita Falls Reinvestment Zone #3 was created in September 2009 by the City, with the advice and consent of the Wichita Falls Independent School District and Wichita County. The purpose of the Wichita Falls Reinvestment Zone #3 is to capture increments of growth in real property values in the designated zone area from base values established in January 2009 and use the ad valorem taxes derived from the increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the zoned area or for payment of debt service on bonds issued to provide funds for public improvements. Wichita Falls Reinvestment Zone#4 The Wichita Falls Reinvestment Zone#4 was created in March 2015 by the City, with the advice and consent of the Wichita Falls Independent School District and Wichita County. The purpose of the Wichita Falls Reinvestment Zone#4 is to capture increments of growth in real property values in the designated zone area from base values established in January 2015 and use the ad valorem taxes derived from the increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the zoned area or for payment of debt service on bonds issued to provide funds for public improvements. EXHIBIT F-1 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30,2022 Wichita Falls Economic Wichita Falls Wichita Falls Wichita Falls Wichita Falls Development 4B Sales Tax Reinvestment Reinvestment Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals Assets Cash and cash equivalents $ 26,117,290 $22,499,633 $ 2,994,806 $ 915,002 $ 804,222 $ 53,330,953 Receivables: Government agencies 952,968 931,438 - (1,894) - 1,882,512 Other - 388,600 - - - 388,600 Prepaid items 14,311 - - - - 14,311 Capital assets,net of accumulated depreciation 2,429,495 8,555,075 - - - 10,984,570 Total assets 29,514,064 32,374,746 2,994,806 913,108 804,222 66,600,946 Liabilities Accounts payable-trade 549,745 1,944,760 - - - 2,494,505 Other liabilities 136,434 731,708 - - - 868,142 Long-term liabilities: Portion due or payable within one year 85,000 475,000 - - - 560,000 Portion due or payable after one year 9,863,264 18,020,000 - - - 27,883,264 Total liabilities 10,634,443 21,171,468 - - - 31,805,911 Net position Net investment in capital assets 175,548 - - - - 175,548 Unrestricted 18,704,073 11,203,278 2,994,806 913,108 804,222 34,619,487 Total net position $ 18,879,621 $11,203,278 $ 2,994,806 $ 913,108 $ 804,222 $ 34,795,035 94 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Program Revenue Operating Charges for Grants and Expenses Services Contributions Community development Wichita Falls Economic Development Corporation $ 5,259,532 $ 720 $ 1,045,845 Wichita Falls 4B Sales Tax Corporation 2,913,129 - 718,622 Wichita Falls Reinvestment Zone#2 718,622 - - Wichita Falls Reinvestment Zone#3 - - - Wichita Falls Reinvestment Zone#4 - - - Total component units $ 8,891,283 $ 720 $ 1,764,467 General revenues: Taxes: Property tax Sales tax Investment earnings Miscellaneous Total general revenues Change in net position Net position-beginning Net position-ending 95 EXHIBIT F-2 Net(Expense) Revenue and Changes in Net Position Wichita Falls Economic Wichita Falls Wichita Falls Wichita Falls Wichita Falls Development 4B Sales Tax Reinvestment Reinvestment Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals $ (4,212,967) $ - $ - $ - $ - $ (4,212,967) - (2,194,507) - - - (2,194,507) (718,622) - - (718,622) (4,212,967) (2,194,507) (718,622) - - (7,126,096) 796,503 96,029 222,472 1,115,004 5,183,398 5,183,398 - - - 10,366,796 184,035 180,211 14,791 13,403 3,256 395,696 428,000 61,195 - - - 489,195 5,795,433 5,424,804 811,294 109,432 225,728 12,366,691 1,582,466 3,230,297 92,672 109,432 225,728 5,240,595 17,297,155 7,972,981 2,902,134 803,676 578,494 29,554,440 $ 18,879,621 $ 11,203,278 $ 2,994,806 $ 913,108 $ 804,222 $ 34,795,035 SUPPORTING SCHEDULES CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30,2022 Fiscal Year General Obligation Bonds Combination Tax and Revenue Bonds Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds September 30, Maturities on Bonds and Interest Maturities on Bonds and Interest 2023 $ 3,055,000 $ 1,118,692 $ 4,173,692 $ 2,565,000 $ 1,203,281 $ 3,768,281 2024 3,165,000 1,019,767 4,184,767 2,620,000 1,144,076 3,764,076 2025 3,265,000 923,971 4,188,971 2,685,000 1,081,376 3,766,376 2026 3,020,000 797,928 3,817,928 2,750,000 1,013,327 3,763,327 2027 2,380,000 669,347 3,049,347 2,120,000 695,270 2,815,270 2028 2,450,000 594,991 3,044,991 2,165,000 647,043 2,812,043 2029 2,525,000 516,915 3,041,915 2,220,000 596,910 2,816,910 2030 1,855,000 449,952 2,304,952 2,275,000 541,927 2,816,927 2031 1,910,000 393,522 2,303,522 2,325,000 485,023 2,810,023 2032 1,765,000 335,216 2,100,216 2,385,000 426,018 2,811,018 2033 1,815,000 281,336 2,096,336 2,445,000 364,810 2,809,810 2034 990,000 225,750 1,215,750 1,145,000 299,781 1,444,781 2035 1,030,000 186,150 1,216,150 1,170,000 278,191 1,448,191 2036 1,070,000 144,950 1,214,950 1,185,000 255,699 1,440,699 2037 1,110,000 102,150 1,212,150 1,215,000 232,357 1,447,357 2038 1,155,000 57,750 1,212,750 1,235,000 208,162 1,443,162 2039 - - - 1,260,000 183,148 1,443,148 2040 - - - 1,285,000 157,250 1,442,250 2041 - - - 1,310,000 130,455 1,440,455 2042 - - - 1,340,000 102,761 1,442,761 2043 - - - 1,370,000 74,237 1,444,237 2044 - - - 1,395,000 44,997 1,439,997 2045 - - - 1,425,000 15,105 1,440,105 2046 - - - - - - 2047 - - - - - - 2048 - - - - - - 2049 - - - - - - 2050 - - - - - - $ 32,560,000 $ 7,818,387 $ 40,378,387 $ 41,890,000 $ 10,181,204 $ 52,071,204 96 EXHIBIT G-1 Revenue Bonds Totals-All Bonded Debt Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Maturities on Bonds and Interest Maturities on Bonds and Interest $ 8,460,000 $ 2,003,150 $ 10,463,150 $ 14,080,000 $ 4,325,123 $ 18,405,123 8,890,000 1,580,650 10,470,650 14,675,000 3,744,493 18,419,493 9,330,000 1,136,700 10,466,700 15,280,000 3,142,047 18,422,047 9,765,000 704,000 10,469,000 15,535,000 2,515,255 18,050,255 2,495,000 216,350 2,711,350 6,995,000 1,580,967 8,575,967 65,000 92,200 157,200 4,680,000 1,334,234 6,014,234 65,000 89,600 154,600 4,810,000 1,203,425 6,013,425 70,000 87,000 157,000 4,200,000 1,078,879 5,278,879 70,000 84,200 154,200 4,305,000 962,745 5,267,745 75,000 81,400 156,400 4,225,000 842,634 5,067,634 75,000 78,400 153,400 4,335,000 724,546 5,059,546 80,000 75,400 155,400 2,215,000 600,931 2,815,931 85,000 72,200 157,200 2,285,000 536,541 2,821,541 85,000 68,800 153,800 2,340,000 469,449 2,809,449 90,000 65,400 155,400 2,415,000 399,907 2,814,907 95,000 61,800 156,800 2,485,000 327,712 2,812,712 95,000 58,000 153,000 1,355,000 241,148 1,596,148 100,000 54,200 154,200 1,385,000 211,450 1,596,450 105,000 50,200 155,200 1,415,000 180,655 1,595,655 110,000 46,000 156,000 1,450,000 148,761 1,598,761 115,000 41,600 156,600 1,485,000 115,837 1,600,837 120,000 37,000 157,000 1,515,000 81,997 1,596,997 120,000 32,200 152,200 1,545,000 47,305 1,592,305 125,000 27,400 152,400 125,000 27,400 152,400 130,000 22,400 152,400 130,000 22,400 152,400 135,000 17,200 152,200 135,000 17,200 152,200 145,000 11,800 156,800 145,000 11,800 156,800 150,000 6,000 156,000 150,000 6,000 156,000 $ 41,245,000 $ 6,901,250 $ 48,146,250 $ 115,695,000 $ 24,900,841 $ 140,595,841 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30,2022 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Bonds: General Obligation Refunding Bonds, 2.00,2.25,2.625,2.75, 11/15/15 09/01/26 $ 200,000 (2016) Series 2015A 3.00,4.00,5.00 810,000 (2017) (3/1,9/1) 830,000 (2018) 870,000 (2019) 890,000 (2020) 915,000 (2021) 955,000 (2022) 990,000 (2023) 1,030,000 (2024) 1,055,000 (2025) 1,105,000 (2026) General Obligation Refunding Bonds, 0.73,1.19,1.62,1.99, 11/15/15 09/01/26 110,000 (2016) Series 2015B 2.29,2.62,2.83,2.91, 255,000 (2017) 3.11,3.27,3.48 255,000 (2018) (3/1,9/1) 260,000 (2019) 265,000 (2020) 270,000 (2021) 275,000 (2022) 285,000 (2023) 295,000 (2024) 305,000 (2025) 310,000 (2026) General Obligation Bonds, 2.00,3.00,4.00,5.00 08/01/18 09/01/38 550,000(2019) Series 2018A (4/1,10/1) 575,000(2020) 595,000(2021) 615,000(2022) 640,000(2023) 670,000(2024) 695,000(2025) 720,000(2026) 750,000(2027) 780,000(2028) 810,000(2029) 845,000(2030) 880,000(2031) 915,000(2032) 950,000(2033) 990,000(2034) 1,030,000(2035) 1,070,000(2036) 1,110,000(2037) 1,155,000(2038) 97 EXHIBIT G-2 (Page 1 of 5) Bonds Retired or Authorized Issued Refunded Outstanding $ 9,650,000 $ 9,650,000 $ 5,470,000 $ 4,180,000 2,885,000 2,885,000 1,690,000 1,195,000 16,345,000 16,345,000 2,335,000 14,010,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2022 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Refunding Bonds, 2.00,3.00,4.00 08/01/18 10/01/28 80,000(2019) Series 2018B (4/1,10/1) 515,000(2020) 530,000(2021) 545,000(2022) 565,000(2023) 590,000(2024) 610,000(2025) 635,000(2026) 675,000(2027) 700,000(2028) 725,000(2029) General Obligation Refunding Bonds, 0.398,0.686,0.959, 10/01/21 09/01/33 445,000(2022) Taxable Series 2021 1.109,1.281,1.431, 435,000(2023) 1.573,1.833,2.033 435,000(2024) (3/1,9/1) 440,000(2025) 85,000(2026) 785,000(2027) 795,000(2028) 805,000(2029) 820,000(2030) 835,000(2031) 850,000(2032) 865,000(2033) General Obligation Refunding Bonds, 4.00 10/01/21 09/01/31 150,000(2022) Series 2021 (3/1,9/1) 140,000(2023) 145,000(2024) 160,000(2025) 165,000(2026) 170,000(2027) 175,000(2028) 185,000(2029) 190,000(2030) 195,000(2031) Total General Obligation Bonds 98 EXHIBIT G-2 (Page 2 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 6,170,000 6,170,000 1,670,000 4,500,000 7,595,000 7,595,000 445,000 7,150,000 1,675,000 1,675,000 150,000 1,525,000 44,320,000 44,320,000 11,760,000 32,560,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2022 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Combination Tax and Revenue Bonds: Combination Tax and Revenue 2.00,3.00,3.25,3.375 03/01/13 09/01/33 530,000 (2014) Certificates of Obligation, (3/1,9/1) 795,000 (2015) Series 2013 815,000 (2016) 830,000 (2017) 845,000 (2018) 860,000 (2019) 890,000 (2020) 915,000 (2021) 940,000 (2022) 970,000 (2023) 1,000,000 (2024) 1,030,000 (2025) 1,060,000 (2026) 1,090,000 (2027) 1,125,000 (2028) 1,160,000 (2029) 1,195,000 (2030) 1,235,000 (2031) 1,275,000 (2032) 1,315,000 (2033) Combination Tax and Revenue 2.00,3.00,3.125,3.25, 08/15/13 09/01/33 505,000 (2014) Certificates of Obligation, 3.625,3.75,4.00,4.25, 500,000 (2015) Series 2013A 4.375,4.50,4.625 510,000 (2016) (3/1,9/1) 520,000 (2017) 530,000 (2018) 545,000 (2019) 560,000 (2020) 580,000 (2021) 595,000 (2022) 615,000 (2023) 630,000 (2024) 650,000 (2025) 675,000 (2026) 700,000 (2027)* 730,000 (2028)* 760,000 (2029)* 795,000 (2030)* 830,000 (2031)* 865,000 (2032)* 905,000 (2033)* *Refunded 99 EXHIBIT G-2 (Page 3 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 19,875,000 19,875,000 7,420,000 12,455,000 13,000,000 13,000,000 10,430,000 2,570,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2022 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Combination Tax and Revenue 0.00,0.09,0.40,0.68, 01/02/15 03/01/45 890,000 (2016) Certificates of Obligation, 0.89,1.05,1.16,1.29, 960,000 (2017) Series 2015 1.40,1.47,1.53,1.59 960,000 (2018) 1.64,1.69,1.74,1.79 960,000 (2019) 1.84,1.89,1.93,1.96 965,000 (2020) 1.99,2.02,2.05,2.08 970,000 (2021) 2.10,2.11,2.12 975,000 (2022) (3/1,9/1) 980,000 (2023) 990,000 (2024) 1,005,000 (2025) 1,015,000 (2026) 1,030,000 (2027) 1,040,000 (2028) 1,060,000 (2029) 1,080,000 (2030) 1,090,000 (2031) 1,110,000 (2032) 1,130,000 (2033) 1,145,000 (2034) 1,170,000 (2035) 1,185,000 (2036) 1,215,000 (2037) 1,235,000 (2038) 1,260,000 (2039) 1,285,000 (2040) 1,310,000 (2041) 1,340,000 (2042) 1,370,000 (2043) 1,395,000 (2044) 1,425,000 (2045) Total Combination Tax and Revenue Bonds Revenue Bonds: Water and Sewer System 2.00,4.00,5.00 06/01/16 08/01/27 2,635,000 (2017) Revenue Refunding Bonds, (2/1,8/1) 2,885,000 (2018) Series 2016 6,915,000 (2019) 7,265,000 (2020) 7,635,000 (2021) 8,010,000 (2022) 8,410,000 (2023) 8,835,000 (2024) 9,275,000 (2025) 9,705,000 (2026) 2,435,000 (2027) 100 EXHIBIT G-2 (Page 4 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 33,545,00C 33,545,000 6,680,000 26,865,000 66,420,00C 66,420,000 24,530,00C 41,890,000 74,005,00C 74,005,000 35,345,00C 38,660,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2022 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Venue Tax Revenue Bonds, 4.00 12/01/20 09/01/50 45,000(2021) Series 2020 (3/1,9/1) 50,000(2022) 50,000(2023) 55,000(2024) 55,000(2025) 60,000(2026) 60,000(2027) 65,000(2028) 65,000(2029) 70,000(2030) 70,000(2031) 75,000(2032) 75,000(2033) 80,000(2034) 85,000(2035) 85,000(2036) 90,000(2037) 95,000(2038) 95,000(2039) 100,000(2040) 105,000(2041) 110,000(2042) 115,000(2043) 120,000(2044) 120,000(2045) 125,000(2046) 130,000(2047) 135,000(2048) 145,000(2049) 150,000(2050) Total Revenue Bonds Total All Bonds 101 EXHIBIT G-2 (Page 5 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 2,680,000 2,680,000 95,000 2,585,000 76,685,00C 76,685,000 35,440,00C 41,245,000 $ 187,425,00C $ 187,425,000 $ 71,730,00C $ 115,695,000 EXHIBIT G-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE-REVENUE BONDS SEPTEMBER 30, 2022 Water and Sewer Revenue Bonds: Change in net position (Exhibit A-8) $ 13,690,420 Add: Depreciation and amortization $ 8,845,792 Interest expense and paying agent fees 2,493,662 Transfers out 2,633,743 13,973,197 Subtract: West Texas Utilities water revenues 745,461 Gain (loss)on sale/abandonment of capital assets 2,099 Capital contributions from developers 666,819 Transfers in - (1,414,379) Net earnings for determining debt service coverage $ 26,249,238 Priority Subordinate Lien Bonds Lien Bonds Net earnings for determining debt service coverage $ 26,249,238 Principal and interest requirements to maturity $ 48,146,250 $ - Number of years remaining to pay bonds 5 N/A Average annual principal and interest requirement 9,629,250 N/A Minimum bond covenant debt service coverage 1.25 1.10 Minimum debt service coverage requirement $ 12,036,563 $ - 12,036,563 Excess over debt service coverage requirements $ 14,212,676 102 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY SEPTEMBER 30,2022 Buildings Machinery Land and and and Betterments Improvements Equipment Administrative services: Mayor and City Council - City Manager - 265,898 2,020 Personnel/Risk Management - - 2,963 Martin Luther King Center - 749,447 - Library 477,942 4,495,425 572,630 General Public Information - 510,676 229,892 Building Maintenance - 2,770,246 136,877 Nondepartmental 46,347 380,754 85,497 Municipal Court 230,000 310,819 75,951 Legal - - 1,518 Homeland security - - 584,968 Training Center - - 2,271 Golf course 3,808,375 786,801 93,430 Total administrative services 4,562,664 10,270,066 1,788,017 Police 1,131,749 10,231,507 15,382,904 Fire 190,565 7,051,522 864,048 Parks and recreation: Recreation 754,606 1,660,599 201,645 Park maintenance 4,640,462 541,598 60,444 Cemetery 141,685 - 6,448 Lake Wichita Revitalization-Boardwalk 1,261,180 - - Lynwood Community Center - 214,895 - Total parks and recreation 6,797,933 2,417,092 268,537 Accounting/finance: Information Systems - - 10,074,994 Total accounting/finance - - 10,074,994 Community development: Planning - - 20,438 Inspection - - 1,360 Property management 10,334,824 420,892 9,274 Hazard Mitigation grant 170,800 - - Total community development 10,505,624 420,892 31,072 Public works: Engineering - 61,948 183,229 Street maintenance 99,796 100,108 30,606 Lake Wichita Revitalization - - - Infrastructure 1,365,633 - - Total public works 1,465,429 162,056 213,835 Health: Administration 34,820 2,996,016 298,903 General City nursing 76,411 1,123 10,108 Environmental health - - 69,596 Lab water pollution - - 45,235 Animal reclaim center 150,737 4,114,850 26,772 Total health 261,968 7,111,989 450,614 Traffic and transportation - 31,045 109,683 Multi-Purpose Events Center 9,560,210 38,473,465 505,142 Wichita Falls Business Park 1,099,507 - - Total capital assets used in the operation of governmental funds $ 35,575,649 $ 76,169,634 $ 29,688,846 103 EXHIBIT G-4 Furniture and Construction Fixtures Infrastructure in Progress Totals $ 5,218 $ - $ - $ 5,218 13,644 - - 281,562 4,660 - - 7,623 749,447 73,266 - - 5,619,263 3,184 - 99,900 843,652 2,907,123 512,598 616,770 1,518 584,968 2,271 4,688,606 99,972 - 99,900 16,820,619 8,759 - 205,700 26,960,619 2,111 8,108,246 2,616,850 5,242,504 148,133 1,261,180 214,895 9,483,562 10,074,994 10,074,994 20,438 1,360 10,764,990 170,800 10,957,588 245,177 230,510 900,925 900,925 197,354,017 7,096,131 205,815,781 197,354,017 7,997,056 207,192,393 3,329,739 87,642 69,596 45,235 4,292,359 7,824,571 15,908,368 - 16,049,096 22,117 - 1,291,679 49,852,613 1,099,507 $ 130,848 $ 213,262,385 $ 9,596,446 $ 364,423,808 EXHIBIT G-5 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30,2022 Beginning Ending Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Administrative services: Mayor and City Council $ 5,218 $ - $ - $ 5,218 City Manager 281,562 - - 281,562 Personnel/Risk Management 7,623 - - 7,623 Martin Luther King Center 749,447 - - 749,447 Library 5,619,263 - - 5,619,263 General Public Information 709,837 133,815 - 843,652 Building Maintenance 2,907,123 - - 2,907,123 Nondepartmental 512,598 - - 512,598 Municipal Court 585,085 31,685 - 616,770 Legal 1,518 - - 1,518 Homeland security 584,968 - - 584,968 Training center 2,271 - - 2,271 Golf course 4,688,606 - - 4,688,606 Total administrative services 16,655,119 165,500 - 16,820,619 Police 26,468,119 492,500 - 26,960,619 Fire 8,106,135 2,111 - 8,108,246 Parks and recreation: Recreation 2,616,850 - - 2,616,850 Park maintenance 5,195,509 46,995 - 5,242,504 Cemetery 148,133 - - 148,133 Lake Wichita Revitalization 1,261,180 - - 1,261,180 Lynwood Community Center 214,895 - - 214,895 Total parks and recreation 9,436,567 46,995 - 9,483,562 Accounting/finance: Information Systems 9,771,377 303,617 - 10,074,994 Total accounting/finance 9,771,377 303,617 - 10,074,994 Community development: Planning 20,438 - - 20,438 Inspection 1,360 - - 1,360 Property management 10,764,990 - - 10,764,990 Hazard Mitigation Grant 170,800 - - 170,800 Total community development 10,957,588 - - 10,957,588 Public works: Engineering 245,177 - - 245,177 Street maintenance 230,510 - - 230,510 Lake Wichita Revitalization 807,175 93,750 - 900,925 Infrastructure 198,402,757 7,507,036 94,012 205,815,781 Total public works 199,685,619 7,600,786 94,012 207,192,393 Health: Administration 3,218,086 111,653 - 3,329,739 General city nursing 87,642 - - 87,642 Environmental health 69,596 - - 69,596 Lab water pollution 45,235 - - 45,235 Animal reclaim center 4,292,359 - - 4,292,359 Total health 7,712,918 111,653 - 7,824,571 Traffic and transportation 15,885,679 283,606 120,189 16,049,096 Multi-Purpose Events Center 48,492,768 1,440,517 80,672 49,852,613 Wichita Falls Business Park 1,099,507 - - 1,099,507 Total capital assets $ 354,271,396 $ 10,447,285 $ 294,873 $ 364,423,808 104 EXHIBIT G-6 CITY OF WICHITA FALLS, TEXAS REGIONAL AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 20,389,856 $ 73,750 $ - $ 20,463,606 Buildings and improvements 34,104,170 - - 34,104,170 Machinery and equipment 219,529 - - 219,529 Furniture and fixtures 12,829 - - 12,829 Infrastructure 1,308,101 - - 1,308,101 Right-to-use leased assets 3,066,768 - - 3,066,768 Construction in progress - 44,000 - 44,000 Total capital assets 59,101,253 117,750 - 59,219,003 Accumulated Depreciation: Land and betterments 6,041,908 819,331 - 6,861,239 Buildings and improvements 4,750,952 677,112 - 5,428,064 Machinery and equipment 103,429 19,011 - 122,440 Furniture and fixtures 12,830 - - 12,830 Right-to-use leased assets 766,692 62,587 - 829,279 Infrastructure 26,162 17,441 - 43,603 Total accumulated depreciation 11,701,973 1,595,482 - 13,297,455 Net capital assets $ 47,399,280 $ (1,477,732) $ - $ 45,921,548 105 EXHIBIT G-7 CITY OF WICHITA FALLS, TEXAS KICKAPOO AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 13,643,355 $ - $ - $ 13,643,355 Buildings and improvements 3,264,730 - - 3,264,730 Machinery and equipment 583,215 - - 583,215 Construction in progress 35,247 453,744 - 488,991 Total capital assets 17,526,547 453,744 - 17,980,291 Accumulated Depreciation: Land and betterments 3,945,098 382,995 - 4,328,093 Buildings and improvements 1,519,561 107,433 - 1,626,994 Machinery and equipment 499,794 23,903 - 523,697 Total accumulated depreciation 5,964,453 514,331 - 6,478,784 Net capital assets $ 11,562,094 $ (60,587) $ - $ 11,501,507 106 EXHIBIT G-8 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 2,001,247 $ - $ - $ 2,001,247 Buildings and improvements 6,221,927 11,308,972 - 17,530,899 Machinery and equipment 521,446 25,294 - 546,740 Construction in progress 8,774,033 2,608,379 11,308,972 73,440 Total capital assets 17,518,653 13,942,645 11,308,972 20,152,326 Accumulated Depreciation: Land and betterments 89,668 10,549 - 100,217 Buildings and improvements 1,148,019 262,461 - 1,410,480 Machinery and equipment 425,722 38,879 - 464,601 Total accumulated depreciation 1,663,409 311,889 - 1,975,298 Net capital assets $ 15,855,244 $13,630,756 $ 11,308,972 $ 18,177,028 107 EXHIBIT G-9 CITY OF WICHITA FALLS, TEXAS STORMWATER DRAINAGE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Drainage $ 30,164,154 $ 186,509 $ - $ 30,350,663 Land and betterments 686,529 - - 686,529 Machinery and equipment 60,395 - - 60,395 Construction in progress 262,275 2,735,647 - 2,997,922 Total capital assets 31,173,353 2,922,156 - 34,095,509 Accumulated Depreciation: Drainage 3,270,319 402,724 - 3,673,043 Land betterments 46,246 6,355 - 52,601 Machinery and equipment 43,456 3,371 - 46,827 Total accumulated depreciation 3,360,021 412,450 - 3,772,471 Net capital assets $ 27,813,332 $ 2,509,706 $ - $ 30,323,038 108 EXHIBIT G-10 CITY OF WICHITA FALLS, TEXAS SANITATION FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 8,748,688 $ 866,574 $ - $ 9,615,262 Buildings and improvements 3,571,328 - - 3,571,328 Machinery and equipment 687,898 - 2,890 685,008 Construction in progress 141,701 764,308 866,574 39,435 Total capital assets 13,149,615 1,630,882 869,464 13,911,033 Accumulated Depreciation: Land and betterments 1,895,581 176,272 - 2,071,853 Buildings and improvements 1,924,776 94,685 - 2,019,461 Machinery and equipment 486,094 44,768 2,890 527,972 Total accumulated depreciation 4,306,451 315,725 2,890 4,619,286 Net capital assets $ 8,843,164 $ 1,315,157 $ 866,574 $ 9,291,747 109 EXHIBIT G-11 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 24,330,343 $ - $ - $ 24,330,343 Buildings,systems and improvements 399,685,772 5,006,656 241,000 404,451,428 Machinery and equipment 6,595,653 455,325 - 7,050,978 Furniture and fixtures 1,164 - - 1,164 Construction in progress 1,085,050 5,603,059 5,006,656 1,681,453 Total capital assets 431,697,982 11,065,040 5,247,656 437,515,366 Accumulated Depreciation: Land and betterments 12,258,059 236,603 - 12,494,662 Buildings,systems and improvements 153,813,677 8,332,979 241,000 161,905,656 Machinery and equipment 5,127,835 276,210 - 5,404,045 Furniture and fixtures 1,164 - - 1,164 Total accumulated depreciation 171,200,735 8,845,792 241,000 179,805,527 Net capital assets $ 260,497,247 $ 2,219,248 $ 5,006,656 5 257,709,839 110 EXHIBIT G-12 CITY OF WICHITA FALLS, TEXAS WATERPARK FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 389,894 $ - $ - $ 389,894 Buildings and improvements 4,622,343 18,903 - 4,641,246 Machinery and equipment 289,035 9,709 - 298,744 Total capital assets 5,301,272 28,612 - 5,329,884 Accumulated Depreciation: Buildings and improvements 2,416,673 232,267 - 2,648,940 Machinery and equipment 222,970 13,345 - 236,315 Total accumulated depreciation 2,639,643 245,612 - 2,885,255 Net capital assets $ 2,661,629 $ (217,000) $ - 5 2,444,629 111 EXHIBIT G-13 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 436,269 $ - $ - $ 436,269 Buildings and improvements 4,822,934 25,068 - 4,848,002 Machinery and equipment 1,670,786 - - 1,670,786 Furniture and fixtures 2,950 - - 2,950 Motor vehicles 69,340,567 4,993,925 194,517 74,139,975 Total capital assets 76,273,506 5,018,993 194,517 81,097,982 Accumulated Depreciation: Land and betterments 2,611 - - 2,611 Buildings and improvements 3,120,599 123,328 - 3,243,927 Machinery and equipment 1,533,278 48,337 - 1,581,615 Furniture and fixtures 2,950 - - 2,950 Motor vehicles 50,134,812 4,227,456 194,517 54,167,751 Total accumulated depreciation 54,794,250 4,399,121 194,517 58,998,854 Net capital assets $ 21,479,256 $ 619,872 $ - $ 22,099,128 112 EXHIBIT G-14 CITY OF WICHITA FALLS, TEXAS DUPLICATING SERVICES FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Machinery and equipment $ 9,117 $ - $ - $ 9,117 Accumulated Depreciation: Machinery and equipment 9,117 - - 9,117 Net capital assets $ - $ - $ - $ - 113 EXHIBIT G-15 CITY OF WICHITA FALLS, TEXAS INFORMATION TECHNOLOGY FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Machinery and equipment $ 9,081,283 $ 303,617 $ - $ 9,384,900 Total capital assets 9,081,283 303,617 - 9,384,900 Accumulated Depreciation: Machinery and equipment 3,985,903 989,674 - 4,975,577 Net capital assets $ 5,095,380 $ (686,057) $ - $ 4,409,323 114 EXHIBIT G-16 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Land and betterments $ 1,177,156 $ - $ - $ 1,177,156 Buildings and improvements - 1,284,450 - 1,284,450 Construction in progress 1,340,175 - 1,340,175 - Total capital assets 2,517,331 1,284,450 1,340,175 2,461,606 Accumulated Depreciation: Buildings and improvements - 32,111 - 32,111 Net capital assets $ 2,517,331 $ 1,252,339 $ 1,340,175 $ 2,429,495 115 EXHIBIT G-17 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS 4B SALES TAX CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 Balance Balance 10/1/2021 Additions Deletions 9/30/2022 Capital Assets: Construction in progress $ 314,644 $ 8,240,431 $ - $ 8,555,075 Total capital assets 314,644 8,240,431 - 8,555,075 Accumulated Depreciation: None - - - - Net capital assets $ 314,644 $ 8,240,431 $ - $ 8,555,075 116 STATISTICAL SECTION (UNAUDITED) This part of the City of Wichita Falls, Texas' annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 114 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 119 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 124 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 129 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 131 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. CITY OF WICHITA FALLS, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Governmental activities Net investment in capital assets $ 138,319,208 $ 128,168,873 $ 143,014,752 $ 148,206,829 Restricted 6,248,074 5,290,076 3,715,125 4,468,638 Unrestricted 6,661,101 5,789,973 (59,103,807) (64,279,354) Total governmental activities net position $ 151,228,383 $ 139,248,922 $ 87,626,070 $ 88,396,113 Business-type activities Net investment in capital assets $ 198,540,484 $ 225,576,460 $ 238,249,137 $ 236,074,244 Restricted 11,881,663 11,885,698 11,800,667 11,082,332 Unrestricted 25,390,068 22,571,945 13,941,283 31,265,373 Total business-type activities net position $ 235,812,215 $ 260,034,103 $ 263,991,087 $ 278,421,949 Primary government Net investment in capital assets $ 336,859,692 $ 353,745,333 $ 381,263,889 $ 384,281,073 Restricted 18,129,737 17,175,774 15,515,792 15,550,970 Unrestricted 32,051,169 28,361,918 (45,162,524) (33,013,981) Total primary government net position $ 387,040,598 $ 399,283,025 $ 351,617,157 $ 366,818,062 117 EXHIBIT H-1 Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 150,776,165 $ 150,833,699 $ 152,824,700 $ 155,903,407 $ 160,441,794 $ 160,339,899 5,497,793 5,626,033 5,974,408 6,632,804 7,260,262 9,812,139 (68,466,161) (81,755,666) (85,423,347) (94,509,218) (85,096,370) (70,492,162) $ 87,807,797 $ 74,704,066 $ 73,375,761 $ 68,026,993 $ 82,605,686 $ 99,659,876 $ 250,154,417 $ 254,487,928 $ 264,868,493 $ 270,540,608 $ 293,604,354 $ 309,284,549 11,046,973 11,571,092 11,780,255 12,008,946 11,836,811 11,840,406 27,573,458 35,237,418 37,715,916 47,578,892 45,447,623 53,612,672 $ 288,774,848 $ 301,296,438 $ 314,364,664 $ 330,128,446 $ 350,888,788 $ 374,737,627 $ 400,930,582 $ 405,321,627 $ 417,693,193 $ 426,444,015 $ 454,046,148 $ 469,624,448 16,544,766 17,197,125 17,754,663 18,641,750 19,097,073 21,652,545 (40,892,703) (46,518,248) (47,707,431) (46,930,326) (39,648,747) (16,879,490) $ 376,582,645 $ 376,000,504 $ 387,740,425 $ 398,155,439 $ 433,494,474 $ 474,397,503 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Expenses Governmental activities: Administrative services $ 12,782,404 $ 13,873,741 $ 14,837,668 $ 14,235,870 Police 22,767,560 23,195,421 23,705,432 25,633,843 Fire 14,226,064 14,387,072 16,455,087 17,476,759 Parks and recreation 5,579,717 5,574,156 5,492,124 5,637,654 Accounting/finance 924,240 923,727 876,069 787,945 Community development 6,729,171 6,497,467 6,400,781 6,681,803 Public works 7,747,847 8,155,640 8,117,413 8,334,993 Health 5,167,794 5,166,135 5,398,191 5,707,386 Traffic and transportation 2,757,545 2,617,801 2,555,837 2,667,418 Multi-Purpose Events Center 4,136,952 4,302,368 4,553,654 4,544,817 Interest and fees on long-term debt 2,122,969 1,992,169 1,910,975 1,631,355 Total governmental activities expenses 84,942,263 86,685,697 90,303,231 93,339,843 Business-type activities: Municipal Airport 655,452 855,765 2,532,243 1,881,055 Kickapoo Airport 1,495,562 1,423,952 1,412,211 1,252,359 Transit 1,938,827 2,416,274 2,524,244 2,673,176 Sanitation 9,236,474 9,333,512 9,489,348 9,841,683 Water and Sewer 30,135,738 32,364,514 33,554,406 32,120,018 Stormwater drainage 430,012 560,389 674,839 828,537 Waterpark 1,397,270 1,456,084 1,557,158 1,598,720 Total business-type activities expenses 45,289,335 48,410,490 51,744,449 50,195,548 Total primary government expenses $ 130,231,598 $ 135,096,187 $ 142,047,680 $ 143,535,391 Program Revenues Governmental activities: Charges for services: Administrative services $ 4,304,737 $ 4,220,786 $ 4,030,674 $ 4,270,749 Police 624,272 339,867 396,228 335,112 Fire 18,459 15,854 6,866 1,749 Parks and recreation 524,519 530,305 447,990 429,207 Accounting/finance - - - - Community development 1,131,684 1,094,904 1,006,966 1,101,085 Public works 116,035 94,772 9,510 11,824 Health 1,073,172 1,051,444 995,634 1,051,834 Traffic and transportation 126,163 133,133 162,184 72,965 Multi-Purpose Events Center 1,597,702 1,553,729 1,604,828 1,561,783 Operating grants and contributions 11,157,348 10,837,248 11,019,845 14,803,477 Capital grants and contributions 4,394,038 12,956,740 5,349,242 3,942,929 Total governmental activities program revenues 25,068,129 32,828,782 25,029,967 27,582,714 118 EXHIBIT H-2 (Page 1 of 2) Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 15,198,841 $ 16,029,050 $ 15,853,414 $ 15,623,435 $ 16,023,333 $ 16,701,365 25,513,220 25,046,425 27,736,316 34,225,996 26,119,364 25,454,226 21,107,882 24,205,615 21,059,239 26,796,338 26,145,244 22,599,594 5,655,633 5,484,893 5,995,353 6,057,586 5,134,632 5,810,019 760,506 663,516 785,465 1,004,472 759,671 722,292 6,902,628 6,579,677 7,253,122 7,586,750 6,955,276 7,498,256 8,551,971 8,563,442 8,533,518 8,708,349 7,894,812 8,620,682 5,814,947 5,798,759 5,964,161 6,630,232 6,229,228 7,065,470 2,579,284 2,383,760 2,951,269 3,255,742 2,412,555 3,076,440 4,021,413 3,250,928 3,126,421 2,791,731 2,848,607 5,134,193 1,443,552 1,556,402 1,780,418 1,607,429 1,695,662 1,455,563 97,549,877 99,562,467 101,038,696 114,288,060 102,218,384 104,138,100 1,827,618 1,907,909 2,014,903 2,097,484 2,753,360 2,929,361 1,198,823 1,259,413 1,451,976 1,282,322 1,185,924 1,642,866 2,540,427 2,377,201 2,622,657 2,552,634 2,254,674 3,123,714 10,216,686 10,300,771 11,407,943 11,727,774 10,138,273 10,857,203 33,288,819 33,426,850 33,564,147 34,893,459 33,126,472 33,728,464 816,334 796,597 785,974 864,517 1,137,854 1,147,940 1,538,193 1,591,560 1,599,828 1,494,829 1,605,187 1,681,431 51,426,900 51,660,301 53,447,428 54,913,019 52,201,744 55,110,979 $ 148,976,777 $ 151,222,768 $ 154,486,124 $ 169,201,079 $ 154,420,128 $ 159,249,079 $ 4,735,471 $ 4,501,100 $ 4,657,529 $ 4,325,538 $ 6,858,710 $ 5,556,508 420,289 338,223 288,280 311,390 263,904 393,772 36,937 39,598 85,627 43,306 106 60,360 441,751 393,227 355,005 293,275 263,101 334,990 1,209,021 1,233,431 1,419,097 1,426,440 1,549,609 2,231,598 14,223 10,869 7,511 17,999 5,839 39,213 1,081,910 1,110,658 1,126,273 1,107,601 1,132,205 1,131,018 126,334 122,384 121,251 113,048 153,560 109,655 892,049 10,872 - 3,482 44,326 1,705,277 14,934,929 12,437,104 12,908,026 21,239,893 17,665,897 17,045,852 1,032,502 4,296,164 60,000 - 1,996,829 1,876,048 24,925,416 24,493,630 21,028,599 28,881,972 29,934,086 30,484,291 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION (CONTD.] LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Business-type activities: Charges for services: Municipal Airport 769,557 775,829 864,505 1,109,959 Kickapoo Airport 1,255,153 1,239,973 1,090,276 970,129 Transit 410,737 476,716 541,389 503,708 Sanitation 12,606,675 13,196,489 12,790,072 13,223,470 Water and Sewer 32,798,786 31,272,972 38,855,845 42,999,399 Stormwater drainage 2,503,255 2,601,158 2,763,120 3,703,803 Waterpark 1,398,164 1,292,639 1,492,787 1,437,615 Operating grants and contributions 3,787,014 1,830,334 1,826,749 2,282,163 Capital grants and contributions 1,339,265 1,017,827 1,558,589 209,110 Total business-type activities program revenues 56,868,606 53,703,937 61,783,332 66,439,356 Total primary government program revenues $ 81,936,735 $ 86,532,719 $ 86,813,299 $ 94,022,070 Net(Expense)/Revenue Governmental activities $ (59,874,134) $ (53,856,915) $ (65,273,264) $ (65,757,129) Business-type activities 11,579,271 5,293,447 10,038,883 16,243,808 Total primary government net expense $ (48,294,863) $ (48,563,468) $ (55,234,381) $ (49,513,321) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property tax $ 29,107,168 $ 29,784,202 $ 31,072,640 $ 34,515,164 Sales tax 22,062,365 22,397,536 22,403,406 22,373,768 Franchise fees 5,423,680 5,558,600 5,414,414 5,038,247 Hotel occupancy tax 1,578,764 1,684,329 1,775,372 1,910,468 Beverage tax 230,728 281,598 291,091 286,986 Bingo tax 40,122 36,688 32,764 26,736 Investment earnings 53,244 33,309 20,732 129,886 Miscellaneous 636,417 879,538 529,526 447,357 Transfers (1,473,837) (18,778,342) (2,072,770) 2,003,892 Total governmental activities 57,658,651 41,877,458 59,467,175 66,732,504 Business-type activities: Investment earnings 27,902 11,680 14,884 175,860 Miscellaneous 149,173 138,419 87,079 60,331 Transfers 1,473,837 18,778,342 2,072,770 (2,003,892) Total business-type activities 1,650,912 18,928,441 2,174,733 (1,767,701) Total primary government $ 59,309,563 $ 60,805,899 $ 61,641,908 $ 64,964,803 Change in Net Position Governmental activities $ (2,215,483) $ (11,979,457) $ (5,806,089) $ 975,375 Business-type activities 13,230,183 24,221,888 12,213,616 14,476,107 Total primary government $ 11,014,700 $ 12,242,431 $ 6,407,527 $ 15,451,482 119 EXHIBIT H-2 (Page 2 of 2) Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 1,120,916 1,178,304 1,165,060 868,429 1,511,517 1,921,572 884,354 924,673 944,394 765,536 757,246 1,127,421 432,083 431,419 498,808 405,969 611,213 538,637 13,394,186 13,701,215 14,776,821 15,192,130 16,154,115 16,901,006 43,527,980 46,225,281 44,464,193 46,673,593 45,810,693 50,122,232 3,738,019 3,728,335 3,730,485 3,787,383 3,706,349 3,751,220 1,321,622 1,501,475 1,425,913 1,271,508 1,779,308 1,677,399 1,701,652 3,938,011 4,857,917 5,738,059 8,223,555 4,311,198 396,830 876,211 89,890 727,961 874,423 3,047,912 66,517,642 72,504,924 71,953,481 75,430,568 79,428,419 83,398,597 $ 91,443,058 $ 96,998,554 $ 92,982,080 $ 104,312,540 $ 109,362,505 $ 113,882,888 $ (72,624,461) $ (75,068,837) $ (80,010,097) $ (85,406,088) $ (72,284,298) $ (73,653,809) 15,090,742 20,844,623 18,506,053 20,517,549 27,226,675 28,287,618 $ (57,533,719) $ (54,224,214) $ (61,504,044) $ (64,888,539) $ (45,057,623) $ (45,366,191) $ 35,120,896 $ 35,842,110 $ 37,898,136 $ 41,399,096 $ 43,019,695 $ 45,229,447 22,413,397 23,861,013 24,894,930 25,205,996 28,362,467 31,099,772 5,193,721 5,326,403 5,314,591 5,164,750 5,451,658 5,681,541 1,878,061 1,952,011 2,075,905 1,878,957 2,660,388 2,873,908 281,687 308,333 328,163 255,816 309,857 359,797 9,098 2,626 - - - - 303,325 625,368 1,375,504 581,802 47,531 679,311 1,651,791 496,434 341,079 525,007 521,187 566,004 5,184,169 4,611,766 6,453,485 5,045,896 6,490,207 4,045,947 72,036,145 73,026,064 78,681,793 80,057,320 86,862,990 90,535,727 415,837 748,434 1,005,000 371,124 23,871 236,378 22,028 89,332 10,654 (1,858) - 2,099 (5,184,169) (4,611,766) (6,453,485) (5,045,896) (6,490,207) (4,045,947) (4,746,304) (3,774,000) (5,437,831) (4,676,630) (6,466,336) (3,807,470) $ 67,289,841 $ 69,252,064 $ 73,243,962 $ 75,380,690 $ 80,396,654 $ 86,728,257 $ (588,316) $ (2,042,773) $ (1,328,304) $ (5,348,768) $ 14,578,692 $ 16,881,918 10,344,438 17,070,623 13,068,222 15,840,919 20,760,339 24,480,148 $ 9,756,122 $ 15,027,850 $ 11,739,918 $ 10,492,151 $ 35,339,031 $ 41,362,066 CITY OF WICHITA FALLS, TEXAS FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 General Fund Nonspendable $ 384,574 $ 180,992 $ 210,069 $ 157,494 Assigned 958,924 1,949,792 1,102,026 878,314 Unassigned 16,226,597 14,886,199 13,682,061 13,161,690 Total general fund $ 17,570,095 $ 17,016,983 $ 14,994,156 $ 14,197,498 All other Governmental Funds Nonspendable $ 84,940 $ 120,573 $ 95,283 $ 84,013 Restricted 26,934,100 13,834,375 5,977,567 5,729,434 Committed 2,896,812 2,831,488 2,734,119 2,694,718 Unassigned (269,288) (460,883) (550,863) (773,238) Total all other governmental funds $ 29,646,564 $ 16,325,553 $ 8,256,106 $ 7,734,927 120 EXHIBIT H-3 Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 131,311 $ 309,042 $ 359,446 $ 383,596 $ 251,665 $ 328,907 1,059,850 964,114 - - - - 13,138,307 14,133,369 18,310,378 26,955,178 37,181,391 45,732,320 $ 14,329,468 $ 15,406,525 $ 18,669,824 $ 27,338,774 $ 37,433,056 $ 46,061,227 $ - $ - $ 1,822 $ - $ 1,470,561 $ 1,639,863 5,617,402 23,075,586 21,903,321 16,435,498 16,582,041 13,764,738 2,670,133 2,208,977 2,865,289 2,495,627 2,380,635 3,210,175 (1,224,316) (904,338) (994,338) (994,338) (779,966) (86,381) $ 7,063,219 $ 24,380,225 $ 23,776,094 $ 17,936,787 $ 19,653,271 $ 18,528,395 CITY OF WICHITA FALLS, TEXAS CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Revenues Taxes $ 58,613,615 $ 59,739,545 $ 61,007,519 $ 64,201,677 Charges for services 3,422,621 3,331,183 3,362,172 3,370,573 Licenses and permits 2,234,081 2,048,293 1,941,205 1,971,212 Fines and forfeitures 2,435,625 2,402,794 2,262,781 2,561,817 Intergovernmental revenue 11,722,524 18,081,798 12,401,075 13,537,869 Contributions 3,828,862 5,712,190 4,011,809 5,208,537 Miscellaneous revenue 3,463,425 3,642,155 3,118,424 3,120,633 Total revenues 85,720,753 94,957,958 88,104,985 93,972,318 Expenditures Administrative services 12,677,867 13,347,029 14,413,640 14,805,672 Police 20,884,744 21,539,820 21,997,801 23,580,992 Fire 13,807,699 14,085,219 14,719,074 16,077,272 Parks and recreation 5,157,417 5,197,591 5,065,222 5,204,296 Accounting/finance 793,960 831,313 747,341 702,883 Community development 6,760,826 6,559,064 6,440,963 6,678,753 Public works 5,325,013 5,613,107 5,449,860 5,555,929 Health 5,004,381 5,057,946 5,217,970 5,483,135 Traffic and transportation 2,468,051 2,274,249 2,395,837 2,224,511 Multi-Purpose Events Center 3,365,932 3,536,661 3,747,189 3,718,058 Capital outlay* 7,867,468 5,230,269 5,368,119 6,343,551 Debt service-principal 2,515,000 3,000,000 3,350,000 3,745,000 Debt service-interest 1,618,299 2,342,331 1,998,760 1,764,412 Debt service-bond issuance costs 310,777 - - - Total expenditures 88,557,434 88,614,599 90,911,776 95,884,464 Excess of revenues over(under) expenditures (2,836,681) 6,343,359 (2,806,791) (1,912,146) Other Financing Sources(Uses) Proceeds from bonds 23,869,261 - - 13,482,256 Capital lease proceeds 2,666,243 - 47,848 (13,295,568) Payment to refunded bonds escrow agent (3,831,570) - - - Transfers in 7,181,518 16,643,513 17,594,910 7,574,334 Transfer out (10,636,058) (36,860,991) (23,335,238) (6,961,378) Total other financing sources(uses) 19,249,394 (20,217,478) (5,692,480) 799,644 Net change in fund balances $ 16,412,713 $ (13,874,119) $ (8,499,271) $ (1,112,502) Debt service as a percentage of noncapital expenditures 5.12% 6.41% 6.25% 6.15% *Some miscellaneous costs(labor,etc)from other departments are also included as capital additions. 121 EXHIBIT H-4 Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 64,886,137 $ 67,254,892 $ 70,389,292 $ 73,868,498 $ 79,855,276 $ 85,201,256 3,340,750 3,339,743 3,426,222 3,399,064 3,701,539 3,628,485 1,905,507 1,963,353 2,080,203 1,737,778 1,631,602 2,303,431 2,795,215 2,757,216 2,833,785 1,798,401 2,435,469 2,667,978 10,833,921 9,112,281 8,738,383 17,514,038 14,647,769 13,991,338 5,133,510 4,324,823 4,169,643 3,725,855 3,022,874 3,054,514 4,239,955 2,499,916 3,274,916 3,093,988 4,420,330 5,918,640 93,134,995 91,252,224 94,912,444 105,137,622 109,714,859 116,765,642 14,870,206 14,778,947 15,235,739 14,394,187 16,644,153 16,735,288 23,883,109 24,205,161 25,064,950 27,416,198 27,380,379 28,178,657 16,536,044 16,896,863 16,891,819 17,740,642 18,402,915 19,216,297 5,277,544 5,287,117 5,423,148 5,314,741 5,081,829 5,775,749 719,865 701,643 753,748 845,894 853,221 849,276 6,931,301 6,685,328 7,119,550 7,081,495 7,262,275 7,949,102 5,732,327 5,511,044 5,302,692 5,411,047 4,796,841 5,412,349 5,649,913 5,793,866 5,645,601 5,685,128 6,499,796 7,523,335 2,117,966 2,113,558 2,362,089 2,573,962 2,226,382 2,673,643 3,231,913 2,415,875 2,286,621 1,940,870 2,064,199 4,295,907 6,206,493 5,628,992 7,888,964 11,290,435 7,417,749 8,267,619 3,525,000 3,610,000 4,000,000 4,045,000 4,215,000 3,613,482 1,591,022 1,597,143 1,912,443 1,877,363 1,821,451 1,651,608 - - - - 103,139 83,463 96,272,703 95,225,537 99,887,364 105,616,962 104,769,329 112,225,775 (3,137,708) (3,973,313) (4,974,920) (479,340) 4,945,530 4,539,867 - 24,171,317 - - 2,685,339 3,375,027 - 3,310,009 - - - - - (6,546,898) - - - (3,292,314) 8,965,770 8,722,620 8,033,886 8,404,493 5,822,104 6,002,411 (6,367,674) (4,393,890) (3,295,594) (5,095,512) (1,642,211) (3,522,108) 2,598,096 25,263,158 4,738,292 3,308,981 6,865,232 2,563,016 $ (539,612) $ 21,289,845 $ (236,628) $ 2,829,641 $ 11,810,762 $ 7,102,883 5.68% 5.81% 6.43% 6.28% 6.20% 5.06% EXHIBIT H-5 CITY OF WICHITA FALLS, TEXAS TAX REVENUES BY SOURCE,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) Fiscal Hotel Year Property Sales Franchise Occupancy Beverage Bingo Total 2012-2013 $ 29,277,956 $ 22,062,365 $ 5,423,680 $ 1,578,764 $ 230,728 $ 40,122 $ 58,613,615 2013-2014 29,780,795 22,397,536 5,558,599 1,684,329 281,598 36,688 59,739,545 2014-2015 31,090,472 22,403,406 5,414,414 1,775,372 291,091 32,764 61,007,519 2015-2016 34,567,763 22,373,768 5,035,947 1,910,477 286,986 26,736 64,201,677 2016-2017 35,110,173 22,413,397 5,193,721 1,878,061 281,687 9,098 64,886,137 2017-2018 35,804,507 23,861,013 5,326,402 1,952,011 308,333 2,626 67,254,892 2018-2019 37,775,703 24,894,930 5,314,591 2,075,905 328,163 - 70,389,292 2019-2020 41,362,767 25,205,996 5,164,962 1,878,957 255,816 1,211 73,869,709 2020-2021 43,069,773 28,362,467 5,451,658 2,660,388 309,857 1,132 79,855,275 2021-2022 45,183,405 31,099,772 5,682,741 2,873,908 359,797 1,633 85,201,256 122 EXHIBIT H-6 CITY OF WICHITA FALLS,TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY- LAST TEN FISCAL YEARS(UNAUDITED) Personal Ratio of Total Real Property Property Total Total Assessed to Fiscal Assessed Assessed Assessed Direct Estimated Total Estimated Year Value Value Value Tax Rate Actual Value Actual Value 2012-2013 $ 3,749,608,055 $ 715,113,536 $4,464,721,591 $0.63526 $ 4,464,721,591 100.00% 2013-2014 3,777,010,620 771,002,233 4,548,012,853 0.63526 4,548,012,853 100.00% 2014-2015 3,859,560,337 765,251,406 4,624,811,743 0.65526 4,624,811,743 100.00% 2015-2016 3,944,783,610 820,827,696 4,765,611,306 0.70598 4,765,611,306 100.00% 2016-2017 4,031,689,962 817,687,012 4,849,376,974 0.70598 4,849,376,974 100.00% 2017-2018 4,123,022,727 818,629,114 4,941,651,841 0.70598 4,941,651,841 100.00% 2018-2019 4,230,948,499 843,630,297 5,074,578,796 0.72988 5,074,578,796 100.00% 2019-2020 4,387,106,524 889,487,609 5,276,594,133 0.76332 5,276,594,133 100.00% 2020-2021 4,582,918,683 872,960,736 5,455,879,419 0.76332 5,455,879,419 100.00% 2021-2022 4,952,234,074 855,749,261 5,807,983,335 0.76093 5,807,983,335 100.00% 123 EXHIBIT H-7 CITY OF WICHITA FALLS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES- LAST TEN FISCAL YEARS(UNAUDITED) Tax Rates Per$100 Valuation Fiscal City of Wichita Falls Wichita County Burkburnett ISD(1) Year M&O I&S Total M&O l&S Total M&O l&S Total 2012-2013 $ 0.62 $ 0.01 $ 0.63 $ 0.52 $ - $ 0.52 $ 1.17 $ 0.13 $ 1.30 2013-2014 0.62 0.01 0.63 0.51 - 0.51 1.17 0.12 1.29 2014-2015 0.64 0.02 0.66 0.51 - 0.51 1.17 0.14 1.31 2015-2016 0.69 0.02 0.71 0.55 - 0.55 1.17 0.14 1.31 2016-2017 0.69 0.02 0.71 0.58 0.03 0.61 1.17 0.37 1.54 2017-2018 0.69 0.02 0.71 0.58 0.08 0.66 1.17 0.37 1.54 2018-2019 0.69 0.04 0.73 0.59 0.07 0.66 1.17 0.37 1.54 2019-2020 0.72 0.04 0.76 0.60 0.07 0.67 1.07 0.37 1.44 2020-2021 0.72 0.04 0.76 0.57 0.07 0.64 1.05 0.38 1.43 2021-2022 0.73 0.03 0.76 0.54 0.07 0.61 1.05 0.37 1.42 City View ISD(2) Iowa Park CISD(3) Wichita Falls ISD(4) Grand M&O I&S Total M&O I&S Total M&O I&S Total Total 2012-2013 $ 1.17 $ 0.25 $ 1.42 $ 1.04 $ 0.24 $ 1.28 $ 1.04 $ 0.17 $ 1.21 $ 6.36 2013-2014 1.17 0.25 1.42 1.04 0.24 1.28 1.04 0.17 1.21 6.34 2014-2015 1.17 0.25 1.42 1.04 0.23 1.27 1.04 0.10 1.14 6.31 2015-2016 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.55 2016-2017 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.84 2017-2018 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.89 2018-2019 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.18 1.22 6.90 2019-2020 1.07 0.32 1.39 1.07 0.36 1.43 0.97 0.18 1.15 6.84 2020-2021 1.05 0.32 1.37 1.05 0.38 1.43 0.97 0.18 1.15 6.78 2021-2022 1.04 0.32 1.36 1.03 0.38 1.41 0.94 0.43 1.37 6.93 Notes: (1) Burkburnett Independent School District-25%in Wichita Falls city limits (2) City View Independent School District-90%in Wichita Falls city limits (3) Iowa Park Consolidated Independent School District-2%in Wichita Falls city limits (4) Wichita Falls Independent School District-99%in Wichita Falls city limits 124 EXHIBIT H-8 CITY OF WICHITA FALLS, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO SEPTEMBER 30,2022 2021-2022 2012-2013 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuation Oncor Electric Delivery Co $ 73,801,030 1 1.27% $ 37,907,410 2 0.85% GGP-Sikes Senter LLC 44,500,000 2 0.77% 52,243,735 1 1.17% Atmos Energy/Mid-Tex Division 31,319,180 3 0.54% 12,358,307 9 0.28% North American Pipe Corp 22,388,941 4 0.39% 13,587,762 7 0.30% Wal-Mart Stores East Inc 20,700,100 5 0.36% 20,364,442 4 0.46% Wal-Mart Stores Texas LP 20,311,831 6 0.35% 21,736,750 3 0.49% Kell West Regional Hospital LLC 16,400,569 7 0.28% 12,577,717 8 0.28% Arbor Creek Apartments LLC 16,225,900 8 0.28% - N/A 0.00% Tranter Inc 16,166,369 9 0.28% - N/A 0.00% Western Supplies Inc. 15,633,606 10 0.27% - N/A 0.00% Quail Creek Crossing Ltd - N/A 0.00% 19,848,000 5 0.44% Southwestern Bell - N/A 0.00% 17,021,110 6 0.38% Lowe's Home Centers Inc. - N/A 0.00% 12,009,365 10 0.27% Totals $ 277,447,526 4.78% $ 219,654,598 4.92% Source: Wichita Appraisal District 125 EXHIBIT H-9 CITY OF WICHITA FALLS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS- LAST TEN FISCAL YEARS(UNAUDITED) Collected within the Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Fiscal for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2012-2013 $ 28,362,591 $ 27,906,520 98.39% $ 295,261 $ 28,201,781 99.43% 2013-2014 28,876,552 28,375,563 98.27% 298,285 28,673,848 99.30% 2014-2015 30,270,748 29,809,308 98.48% 317,919 30,127,227 99.53% 2015-2016 33,644,264 33,124,968 98.46% 386,037 33,511,005 99.60% 2016-2017 34,228,872 33,694,059 98.44% 370,939 34,064,998 99.52% 2017-2018 34,887,074 34,298,367 98.31% 366,534 34,664,901 99.36% 2018-2019 37,037,918 36,347,721 98.14% 428,585 36,776,306 99.29% 2019-2020 40,280,490 39,531,671 98.14% 426,584 39,958,255 99.20% 2020-2021 41,645,982 41,044,294 98.56% 238,498 41,282,792 99.13% 2021-2022 44,194,571 43,425,840 98.26% - 43,425,840 98.26% 126 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 Revenue Notes System Year Bonds Revenue Bonds Bonds Payable Revenue Bonds 2012-2013 $ 5,491,678 $ 51,570,623 $ - $ 3,833,640 $ 99,211,869 2013-2014 4,679,866 49,302,503 - 3,510,950 95,723,505 2014-2015 3,850,706 46,710,294 - 3,230,595 92,086,092 2015-2016 16,129,132 31,138,675 - 2,857,166 87,938,263 2016-2017 14,132,973 29,435,100 - 2,466,589 83,098,973 2017-2018 36,285,854 21,261,971 - 5,468,665 78,150,943 2018-2019 33,792,967 19,464,301 - 5,068,463 69,257,091 2019-2020 30,787,806 18,122,209 - 4,555,678 60,215,005 2020-2021 27,728,646 16,735,708 2,635,000 4,010,237 51,014,896 2021-2022 28,178,294 12,487,817 2,585,000 3,430,974 41,662,562 (1)Amounts include bond premiums,where applicable. 127 EXHIBIT H-10 Business-type Activities Combination General Right-to-Use Total Percentage Tax and Obligation Notes Leases Primary of Personal Per Revenue Bonds Bonds Payable Payable Government Income Capita $ 27,887,899 $ 1,930,000 $ 1,771,259 $ - $ 191,696,968 8.74% $ 1,833.51 24,284,987 1,930,000 1,473,806 - 180,905,617 7.74% 1,724.59 54,125,933 1,930,000 1,160,389 - 203,094,009 8.47% 1,932.13 51,322,900 - 17,357,438 - 206,743,574 8.63% 1,974.44 46,298,092 - 19,503,566 - 194,935,293 8.14% 1,861.42 41,170,000 - 18,530,644 - 200,868,077 7.73% 1,917.65 39,665,000 - 17,568,069 - 184,815,891 7.58% 1,767.29 38,140,000 - 16,542,952 - 168,363,650 6.58% 1,610.09 36,590,000 - 15,407,763 - 154,122,250 6.05% 1,472.28 29,435,000 5,808,660 14,208,165 2,876,063 140,672,535 5.19% 1,372.44 EXHIBIT H-11 CITY OF WICHITA FALLS, TEXAS RATIOS OF GENERAL BONDED DEBT OUTSTANDING- LAST TEN FISCAL YEARS(UNAUDITED) Governmental Activities Percentage of General Combination Actual Taxable Fiscal Obligation Tax and Venue Tax Value of Per Year Bonds Revenue Bonds Revenue Bonds Total Property Capita 2012-2013 $ 5,491,678 $ 51,570,623 $ - $ 57,062,301 1.28% $ 545.78 2013-2014 4,679,866 49,302,503 - 53,982,369 1.19% 514.62 2014-2015 3,850,706 46,710,294 - 50,561,000 1.09% 481.01 2015-2016 16,129,132 31,138,675 - 47,267,807 0.99% 451.42 2016-2017 14,132,973 29,435,100 - 43,568,073 0.90% 416.03 2017-2018 36,285,854 21,261,971 - 57,547,825 1.16% 549.40 2018-2019 33,792,967 19,464,301 - 53,257,268 1.05% 509.27 2019-2020 30,787,806 18,122,209 - 48,910,015 0.93% 467.73 2020-2021 27,728,646 16,735,708 2,635,000 47,099,354 0.86% 449.92 2021-2022 28,178,294 12,487,817 2,585,000 43,251,111 0.75% 422.46 128 EXHIBIT H-12 CITY OF WICHITA FALLS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED SEPTEMBER 30,2022 Gross Percentage Amount Governmental Applicable Applicable Activities to City of to City of Debt (1) Wichita Falls(2) Wichita Falls Direct: City of Wichita Falls $ 43,301,111 100% $ 46,682,085 Overlapping: Wichita County 69,079,028 100% 69,079,028 Burkburnett Independent School District 41,051,614 25% 10,262,904 City View Independent School District 15,035,710 90% 13,532,139 Iowa Park Consolidated Independent School District 34,373,154 2% 687,463 Wichita Falls Independent School District 353,005,515 99% 349,475,460 Total overlapping 512,545,021 443,036,993 Total direct and overlapping bonded debt $ 559,227,106 $ 489,719,078 Sources: (1) Listed taxing jurisdictions (2) City of Wichita Falls Planning Department calculated based on percentage of taxing entity within the City of Wichita Falls city limits. 129 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN - LAST TEN FISCAL YEARS(UNAUDITED) Total assessed property value per 2021 tax roll $ 5,807,983,335 Maximum tax rate* $ 2.25/$100 Current tax rate for 2021 tax year .760928/$100 Maximum tax rate in excess of 2021 tax rate 1.489072/$100 Total legal debt margin $ 86,485,054 2012-2013 2013-2014 2014-2015 2015-2016 Assessed value $ 4,464,721,591 $ 4,548,012,853 $ 4,624,811,743 $ 4,765,611,30E Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 Current tax rate .63526/$100 .63526/$100 .65526/$100 .70598/$100 Maximum tax rate in excess of current rate 1.61474/$100 1.61474/$100 1.59474/$100 1.54402/$100 Total legal debt margin $ 72,093,645 $ 73,438,583 $ 73,753,723 $ 73,581,992 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$100 assessed valuation. The 2021 tax rate was$.760928 per$100 assessed valuation. * Maximum tax levy established by City Charter 130 EXHIBIT H-13 Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 4,849,376,974 $ 4,941,651,841 $ 5,074,578,796 $ 5,276,594,133 $ 5,455,879,419 $ 5,807,983,335 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 .70598/$100 .70598/$100 .72988/$100 .763323/$100 .763323/$100 .760928/$100 1.54402/$100 1.54402/$100 1.52012/$100 1.486677/$100 1.486677/$100 1.489072/$100 $ 74,875,350 $ 76,300,093 $ 77,139,687 $ 78,445,911 $ 81,111,304 $ 86,485,054 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 2012-2013 $ 32,200,867 $ 19,160,351 $ 13,040,516 2013-2014 30,839,265 20,981,384 9,857,881 2014-2015 38,456,107 20,477,673 17,978,434 2015-2016 42,499,482 20,415,375 22,084,107 2016-2017 43,054,453 21,643,920 21,410,533 2017-2018 46,159,318 20,861,265 25,298,053 2018-2019 44,671,282 21,755,354 22,915,928 2019-2020 46,388,403 23,627,160 22,761,243 2020-2021 45,310,693 22,937,053 22,373,640 2021-2022 49,376,771 23,246,418 26,130,353 Notes: (1) Includes all operating revenues with the exception of water sales to West Texas Utilities (see Exhibit G-3). (2) Includes all operating expenses of the Water and Sewer Fund with the exception of depreciation and amortization (see Exhibit G-3). (3) Excludes bond premium amortization. 131 EXHIBIT H-14 Debt Service Requirement Principal (3) Interest Total Coverage $ 3,325,000 $ 4,518,925 $ 7,843,925 1.66 3,460,000 4,385,925 7,845,925 1.26 3,610,000 4,238,875 7,848,875 2.29 4,625,000 3,356,255 7,981,255 2.77 2,635,000 3,777,314 6,412,314 3.34 2,885,000 3,535,250 6,420,250 3.94 6,915,000 3,391,000 10,306,000 2.22 7,635,000 2,682,000 10,317,000 2.21 8,010,000 2,300,250 10,310,250 2.17 8,410,000 1,899,750 10,309,750 2.53 EXHIBIT H-15 CITY OF WICHITA FALLS, TEXAS DEMOGRAPHIC STATISTICS- LAST TEN FISCAL YEARS(UNAUDITED) Per Capita Fiscal Estimated Personal Personal Median Education School Unemployment Year Population(1) Income Income(2) Age(1) Level Enrollment(3) Rate(4) 2012-2013 104,552 $ 2,193,605,512 $ 20,981 32.4 13.2 15,576 5.7% 2013-2014 104,898 2,336,602,95C 22,275 32.5 13.2 15,181 4.9% 2014-2015 105,114 2,397,229,884 22,806 32.5 13.2 15,155 4.4% 2015-2016 104,710 2,394,298,86C 22,866 32.5 13.2 15,181 4.8% 2016-2017 104,724 2,395,980,39E 22,879 32.5 13.2 15,124 3.4% 2017-2018 104,747 2,597,725,60C 24,800 32.8 13.2 15,150 3.1% 2018-2019 104,576 2,439,548,92E 23,328 32.9 13.2 15,158 3.0% 2019-2020 104,568 2,558,445,48C 24,467 32.9 13.2 15,133 7.0% 2020-2021 104,683 2,546,937,39C 24,330 33.1 13.2 14,144 6.5% 2021-2022 102,498 2,709,432,132 26,434 32.4 13.2 14,623 2.3% Sources: (1) World Population Review and U.S.Census Bureau (2) U.S.Census Bureau (3) Texas Education Agency (4) Bureau of Labor Statistics 132 EXHIBIT H-16 CITY OF WICHITA FALLS, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO(UNAUDITED) SEPTEMBER 30,2022 2021-2022 2012-2013 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment Sheppard Air Force Base 8,987 1 12.57% 10,015 1 14.01% United Regional Health Care System 2,305 2 3.22% 1,668 4 2.33% Wichita Falls ISD 1,854 3 2.59% 2,574 2 3.60% Midwestern State University 1,354 4 1.89% 1,309 6 1.83% City of Wichita Falls 1,223 5 1.71% 1,499 5 2.10% Wal-Mart-3 locations 1,069 6 1.50% 1,251 7 1.75% North Texas State Hospital 970 7 1.36% 1,987 3 2.78% James V.Allred Prison Unit 939 8 1.31% 980 9 1.37% United Supermarkets-3 locations 823 9 1.15% - N/A - Howmet Corporation 791 10 1.11% 1,084 8 1.52% Cryovac Division-Sealed Air Corp. - N/A 0.00% 780 10 1.09% Totals 20,315 28.41% 23,147 32.38% Sources: All data is from Wichita Falls Chamber of Commerce. 133 CITY OF WICHITA FALLS, TEXAS FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Administrative services 94.3 94.1 95.1 94.1 Police 299.5 300.0 299.0 299.0 Fire 162.5 162.5 162.5 162.5 Parks and recreation 92.9 92.1 92.6 92.6 Accounting/finance 27.0 27.0 26.4 26.2 Community development 42.0 42.0 41.0 41.0 Public works 78.5 78.5 78.5 78.5 Health 81.9 78.7 77.5 78.7 Traffic and transportation 53.6 56.1 56.1 57.0 Multi-Purpose Events Center 22.8 22.8 22.8 22.8 Water and sewer 182.1 189.1 187.7 188.6 Sanitation 81.5 83.5 83.5 85.5 Regional Airport 1.6 1.6 3.0 1.6 Kickapoo Airport 6.4 3.4 3.4 4.4 Transit 24.7 26.2 26.7 26.7 Stormwater Drainage 1.8 1.8 1.8 1.8 Source:City of Wichita Falls Human Resources Department 134 EXHIBIT H-17 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 86.0 85.7 85.9 86.2 88.4 87.0 295.8 295.5 295.5 295.5 295.5 295.5 162.5 162.5 164.0 164.0 164.0 164.0 89.5 88.8 90.7 90.7 90.9 91.2 26.0 25.7 25.7 25.6 26.3 26.6 40.0 40.0 40.0 40.0 41.0 41.1 72.5 72.5 72.5 71.5 70.0 70.0 78.8 76.3 75.4 75.4 70.3 70.3 52.0 52.0 52.0 50.1 52.0 52.0 22.8 4.6 4.0 4.0 3.5 17.2 186.1 183.9 183.9 183.9 184.0 190.0 86.5 86.5 86.5 86.5 86.5 86.5 1.6 1.6 1.6 3.1 3.1 9.1 4.4 4.4 4.4 4.4 4.4 4.4 25.2 25.2 24.2 24.2 24.2 24.2 4.8 4.8 4.8 4.8 5.3 5.3 CITY OF WICHITA FALLS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 General government Building permits issued 9,979 8,542 7,399 7,413 Building inspections conducted 12,823 13,472 12,852 11,302 Police Physical arrests 5,978 6,042 5,036 5,214 Parking violations 65 43 90 110 Traffic violations 21,651 22,538 18,792 19,424 Fire Emergency responses 8,979 8,708 9,392 9,432 Fires extinguished 591 452 432 477 Inspections 3,198 3,316 2,931 4,133 Refuse collection Refuse collected (tons) 124,250 121,502 76,145 136,646 Recyclables collected 18,884 14,643 1,384 16,134 Library Volumes in collection 173,996 174,993 194,715 176,160 Total volumes borrowed 276,065 293,860 293,364 282,808 Water New connections 134 (344) 74 (2,523) Water main breaks 954 944 863 696 Average daily consumption 15,564 13,207 12,051 14,974 (thousands of gallons) Wastewater Average daily sewage treatment 9,217 6,452 8,440 7,900 (thousands of gallons) Transit Total route miles 586,893 572,744 575,004 591,417 Passengers 485,101 460,484 462,853 486,104 This information provided by applicable City of Wichita Falls department. 135 EXHIBIT H-18 Fiscal Year 2016-17 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 7,874 6,590 5,866 5,323 5,492 7,413 10,803 10,760 12,250 13,744 11,821 10,942 5,845 4,869 4,963 3,779 2,768 3,501 175 27 113 32 24 36 23,514 23,979 23,831 15,390 18,749 19,028 8,442 11,229 12,337 12,037 13,518 13,368 449 601 490 576 591 713 3,175 3,248 3,295 937 1,853 2,699 136,911 131,442 155,767 155,752 164,911 181,457 18,232 23,079 24,311 21,730 23,473 23,858 820,301 854,142 976,145 1,002,768 1,190,927 1,508,436 294,798 333,381 366,800 234,496 340,991 306,068 3,144 160 182 371 224 86 519 766 546 618 401 614 14,180 15,131 13,895 14,110 13,722 14,688 9,877 8,974 8,927 10,339 10,339 9,148 586,565 591,538 606,501 550,901 549,512 561,393 493,164 464,838 445,029 244,265 234,872 243,252 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2012-2013 2013-2014 2014-2015 2015-2016 Police Stations 1 1 1 1 Patrol units 113 113 113 113 Fire stations 8 8 8 8 Refuse collection Collection trucks 36 36 36 36 Other public works Streets(miles) 515 515 515 530 Streetlights 7,942 7,972 7,996 8,015 Traffic signals 104 104 104 104 Parks and recreation Acreage 1,200 1,200 1,200 1,200 Playgrounds 39 39 39 39 Golf courses 1 1 1 1 Water Water mains(miles) 578 579 580 806 Fire hydrants 2,588 2,588 2,593 2,842 Storage capacity(thousands of gallons) 37,000 37,000 37,000 37,000 Wastewater Sanitary sewers(miles) 546 547 548 599 Storm sewers(miles) 98 98 98 98 Treatment capacity(thousands of gallons) 21,410 21,410 21,410 21,410 Transit Buses 14 14 13 13 This information maintained by the City of Wichita Falls Finance Department,with assistance frorr various departments. 136 EXHIBIT H-19 Fiscal Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 1 1 1 1 1 1 113 113 113 107 117 110 8 8 8 8 8 8 36 36 36 36 36 36 531 534 534 534 570 528 8,451 8,465 8,432 8,453 8,463 8,475 104 102 102 104 104 104 1,200 1,200 1,200 1,200 1,200 1,200 39 39 39 39 39 39 1 1 1 1 1 1 782 808 808 785 781 763 2,822 2,836 2,829 2,883 2,917 2,898 37,000 37,000 37,000 37,000 37,000 37,000 592 594 594 583 583 583 98 99 99 100 172 173 21,410 21,410 21,410 21,410 21,410 21,410 13 13 13 18 18 18 GRAPHICS F- m_ x w N O N IN WH F- z WJ , p n J OL<L (1) M W E - z '1UIJiTi O O O O NN O N Co lfl c I cI -1 (suo!II!w Li!) snip/0 N H m_ 2 X w N N O N v I N O X N w H J w o Lu J H m LaL Q o p' 07 01 00 M EN 0- L Q Q Q CU z E 2 m 4--, J Q (� O I o f2 N O ),, co .I L.) ; O N O p p p O LE, Lo O s— N (suo!II!w u!) saeuuoa M H m X W 4 N N O N L I ! 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