2022 Annual Comprehensive Financial Report 1 CITY OF WICHITA FALLS, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
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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.
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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
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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)
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n 7Y
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/
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
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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
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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
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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
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