HomeMy WebLinkAbout2025 Annual Financial ReportCITY OF
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2025
ANNUALFINANCIALREPORT
2025
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ANNUAL FINANCIAL REPORT
of the
City of Sanger, Texas
For the Year Ended
September 30, 2025
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City of Sanger, Texas
TABLE OF CONTENTS
September 30, 2025
FINANCIAL SECTION
Independent Auditor’s Report 1
Management’s Discussion and Analysis 7
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 18
Statement of Activities 22
Fund Financial Statements
Governmental Funds:
Balance Sheet 24
Reconciliation of the Balance Sheet to the Statement of Net Position-
Governmental Funds 27
Statement of Revenues, Expenditures, and Changes in Fund Balance-
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 31
Proprietary Funds:
Statement of Net Position 32
Statement of Revenues, Expenses, and Changes in Fund Net Position 34
Statement of Cash Flows 35
Notes to Financial Statements 37
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual -General Fund 80
Schedule of Changes in Net Pension Liability and Related Ratios 82
Schedule of Employer Contributions to Pension Plan 84
Schedule of Changes in OPEB Liability and Related Ratios 86
COMBINING AND INDIVIDUAL FUND FINANCIAL SCHEDULES
Combining Schedule of Revenues, Expenses, and Changes
in Fund Net Position -Proprietary Funds –by Department 90
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Members of the City Council
City of Sanger, Texas:
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type
activities, the discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Sanger, Texas (the “City”)as of and for the year ended September 30, 2025,
and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities,the discretely
presented component units,each major fund, and the aggregate remaining fund information of the City
of Sanger, Texas, as of September 30, 2025, and the respective changes in financial position and, where
applicable, cash flows for the year then ended in accordance 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 and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement. 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
The City’s management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of America,
and for 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.
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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 one year after the date that the financial statements are issued.
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 GAAS 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 GAAS, 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.
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Emphasis of Matter
As discussed in Note V.G. to the financial statements, due to the implementation of GASB 101,
Compensated Absences,the City restated its beginning net position within governmental activities,
business-type activities, component unit activities, and the water, sewer, and electric fund. Our opinion
is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, schedule of changes in net pension liability and related ratios, schedule of
employer contributions to pension plan, schedule of changes in other postemployment benefits liability
and related ratios, and general fund budgetary comparison information 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise City of Sanger, Texas’ basic financial statements. The combining schedule by
department for the proprietary fund is presented for purposes of additional analysis and is not a required
part of the basic financial statements.
The combining schedule by department for the proprietary fund is the responsibility of management and
was derived from and relate directly to the underlying accounting and other records used to prepare the
basic 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 are fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2026
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely 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
effectiveness of the City’s 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.
BrooksWatson & Co.
Certified Public Accountants
Houston, Texas
January 22, 2026
MANAGEMENT'S DISCUSSION
AND ANALYSIS
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City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
September 30, 2025
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As management of the City of Sanger, Texas (the “City”), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2025.
Financial Highlights
The City's total combined net position is $74,507,016 at September 30,2025.Of this, $32,914,662
(unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and
creditors.
At the close of the current fiscal year, the City’s governmental funds reported combined fund
balances of $24,083,496, a decrease of $547,505.
As of the end of the year, the unassigned fund balance of the general fund was $18,520,185 or
114%of total general fund expenditures.
The City had an overall increase in net position of $8,974,058, which is primarily due to
revenues exceeding expenses for both governmental and business-type activities.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements consist of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This
report also includes supplementary information intended to furnish additional detail to support the
basic financial statements themselves.
Government-Wide Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, liabilities, and deferred
inflows/outflows with the difference reported as net position. Over time, 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 non-financial factors, such as the City’s property tax base and the condition of the
City’s infrastructure, need to be considered in order to assess the overall health of the City.
The statement of activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
8
are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety, public
works, and culture and recreation. The business-type activities of the City include water, sewer and
electric operations.
The government-wide financial statements include not only the City itself (known as the primary
government), but also the legally separate Sanger Industrial Development Corporation (“4A”) and the
Sanger Texas Development Corporation (“4B”), for which the City is financially accountable. Financial
information for these component units is reported separately from the financial information presented
for the primary government itself.
FUND FINANCIAL STATEMENTS
Funds may be considered as operating companies of the parent corporation,which is the City of
Sanger.They are usually segregated for specific activities or objectives. The City of Sanger uses fund
accounting to ensure and demonstrate compliance with finance-related legal reporting requirements.
The two categories of City funds are governmental and proprietary.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources,as well as on balances of spendable resources available at the end of the year. Such information
may be useful in evaluating the City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.By doing
so, readers may better understand the long-term impact of the government’s near-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 between governmental funds and governmental activities.
The City of Sanger maintains three individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
9
expenditures, and changes in fund balances for the general,debt service, and capital projects funds. All
three funds are considered to be major funds.
The City of Sanger adopts an annual appropriated budget for all funds. A budgetary comparison
schedule has been provided to demonstrate compliance with the general fund budget.
Proprietary Funds
The City maintains two different types of proprietary funds. Proprietary funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The
City uses a proprietary fund to account for its public utilities. All activities associated with providing
such services are accounted for in these funds, including administration, operation, maintenance, debt
service, capital improvements, meter maintenance, billing and collection.The City's intent is that costs
of providing the services to the general public on a continuing basis is financed through user charges in
a manner similar to a private enterprise. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City’s various functions. The City uses an internal
service fund to account for administrative support services to other funds of the City.
Component Units
The City maintains the accounting and financial statements for two component units. The 4A and the
4B are both discretely presented component units displayed on the government-wide financial
statements.
Notes to 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. The notes
are the last section of the basic financial statements.
Other Information
In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents
certain Required Supplementary Information (RSI). The RSI that GASB Statement No. 34 requires is a
budgetary comparison schedule for the general fund and schedules for the City’s Defined Pension
Plan. RSI can be found after the basic financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted previously, net position may serve over time as a useful indicator of the City’s financial
position. For the City of Sanger, assets and deferred outflows exceeded liabilities and deferred inflows
by $74,507,016 as of September 30, 2025,in the primary government.
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
10
A large portion of the City’s net position, $34,340,623,reflects its investments in capital assets (e.g.,
land, city hall, police station, streets, and drainage systems, as well as the public works facilities),less
any debt used to acquire those assets that are still outstanding. The City uses these capital assets to
provide services to citizens; consequently,these assets are not available for future spending.Although
the City’s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the City’s net position, $7,251,731, represents resources that are subject to
external restrictions on how they may be used. The remaining balance of $32,914,662 is unrestricted
and may be used to meet the government’s ongoing obligations to its citizens and creditors.
Long-term assets of governmental activities increased by $3,354,542 primarily due to greater capital
asset balances, which is the result of new roadway improvements and purchase of public safety
vehicles/equipment during the year.
Other liabilities of business-type activities decreased by $789,333 and is primarily attributable to fewer
outstanding payables to vendors and timing of repayments during the current year.
Total long-term liabilities of the primary government decreased by $3,122,913 primarily due to
principal payments made on long-term debt and a decline in the City’s net pension liability.
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
11
Statement of Net Position:
The following table reflects the condensed Statement of Net Position:
Cu rrent and
ot her assets $25,883,428 $22,652,619 $48,536,047 $26,746,021 $21,627,171 $48,373,192
Long-term a ssets 34,098,411 52,948,427 87,046,838 30,743,869 51,221,002 81,964,871
Tota l Assets 59,981,839 75,601,046 135,582,885 57,489,890 72,848,173 130,338,063
of Re so urces 932,495 255,689 1,188,184 817,654 272,625 1,090,279
Ot her liabilities 3,288,806 3,433,603 6,722,409 3,167,989 4,222,936 7,390,925
Long-term liab.15,836,428 39,412,069 55,248,497 17,451,891 40,919,519 58,371,410
Tota l L ia bilitie s 19,125,234 42,845,672 61,970,906 20,619,880 45,142,455 65,762,335
of Re so urces 249,313 43,834 293,147 118,504 14,545 133,049
Net Pos it ion:
Net i nves tment
in capit al assets 20,281,776 14,058,847 34,340,623 16,792,681 10,828,242 27,620,923
Restrict ed 4,627,950 2,623,781 7,251,731 4,058,537 3,461,094 7,519,631
Un restrict ed 16,630,061 16,284,601 32,914,662 16,717,942 13,674,462 30,392,404
Total Net Positio n $41,539,787 $32,967,229 $74,507,016 $37,569,160 $27,963,798 $65,532,958
2025
Def. O utflo ws
Activitie sActivitiesActivitiesTotal
Def. Inflo ws
2024
Go ve rnm enta l Business-Type
Activitie s To ta l
Go ve rnm enta l Busine ss-Type
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
12
Statement of Activities:
The following table provides a summary of the City’s changes in net position:
Re ve nues
Pr ogr am revenues:
Charges for ser vices $4,439,328 $11,809,446 $16,248,774 $2,824,610 $15,522,110 $18,346,720
Gr ants and cont ri.1,365,862 3,750,153 5,116,015 966,465 - 966,465
Gen er al revenues:
Pr oper ty taxes 9,074,520 - 9,074,520 8,777,206 - 8,777,206
Sales taxes 1,838,122 - 1,838,122 1,643,141 - 1,643,141
Fr anchise & loc al taxes 485,144 - 485,144 473,083 - 473,083
In vestment income 635,658 389,020 1,024,678 622,104 446,874 1,068,978
Ot her revenues 427,275 214,649 641,924 216,945 79,200 296,145
Tota l Re ve nues 18,265,909 16,163,268 34,429,177 15,523,554 16,048,184 31,571,738
Expenses
General gov er nment 3,936,995 - 3,936,995 3,504,862 - 3,504,862
Pub lic safet y 7,302,986 - 7,302,986 5,332,387 - 5,332,387
Pub lic works 2,171,707 - 2,171,707 2,000,936 - 2,000,936
Cult ur e a nd recr eation 1,031,765 - 1,031,765 974,952 - 974,952
In terest & fi scal chrgs .696,118 1,181,001 1,877,119 731,793 1,206,352 1,938,145
Water, sewer , & electric - 12,884,700 12,884,700 - 12,866,631 12,866,631
Tota l Expenses 15,139,571 14,065,701 29,205,272 12,544,930 14,072,983 26,617,913
Ch ange in Net Positio n
Before Transfers 3,126,338 2,097,567 5,223,905 2,978,624 1,975,201 4,953,825
Transfer s 844,289 2,905,864 3,750,153 (1 ,4 03,155)1,403,155 -
Tota l 844,289 2,905,864 3,750,153 (1 ,4 03,155)1,403,155 -
Ch ange in Net Positio n 3,970,627 5,003,431 8,974,058 1,575,469 3,378,356 4,953,825
Beginning Net Pos ition 37,569,160 27,963,798 65,532,958 35,993,691 24,585,442 60,579,133
Ending Net Positio n $41,539,787 $32,967,229 $74,507,016 $37,569,160 $27,963,798 $65,532,958
For the Year Ende d Se ptember 3 0, 2025
Business-Type
Go ve rnment
For the Year Ende d Se pte mber 3 0, 2024
To ta l
Ac tivitie sActivitiesGovernment
Go ve rnm enta l Busine ss-Type Primary
To ta l
Primary Go ve rnm enta l
Ac tivitie s Ac tivitie s
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
13
Graphic presentations of selected data from the summary tables are displayed below to assist in the
analysis of the City’s activities.
For the year ended September 30, 2025, revenues from governmental activities totaled $18,265,909.
Property tax, charges for services, and sales taxes are the City’s largest revenue sources. Charges for
services increased by $1,614,718 or 57%primarily due to nonrecurring building permits earned on new
developments and greater ambulance services in the current year. Grants and contributions increased
by $399,397 or 41%primarily due to an increase in roadway impact fees received in the prior year. Sales
taxes increased by $194,981 or 12%primarily due to economic growth fueled by local purchases. Other
revenues increased by $210,330 or 97% primarily due to gains on sale of capital assets in the current
year. All other revenues remained relatively stable when compared to the previous year.
This graph shows the governmental function expenses of the City:
For the year ended September 30, 2025, expenses for governmental activities totaled $15,139,571. This
represents an increase of $2,594,641 or 21%from the prior year. The City’s largest functional expense is
public safety of $7,302,986,which primarily includes costs for the police department, animal control,
fire department, and EMS services. Public safety expenses increased by $1,970,599 or 37%primarily as a
result of greater personnel costs, as the City hired new patrol officers, added new fire department
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
14
positions, and approved pay raises during the year. General government increased by $432,133 or 12%
due to administrative support transfers to the internal service fund and greater hours worked by
administrative employees during the year.Public works expenses increased by $170,771 or 9%due to
asphalt repairs and engineering fees related to new developments in the current year.Culture and
recreation expenses increased by $56,813 or 6%primarily due to new pay plan increases implemented
in October of 2024.All other expenses remained relatively stable when compared to the previous year.
Business-type activities are shown comparing operating costs to revenues generated by related
services.
For the year ended September 30, 2025, charges for services by business-type activities totaled
$11,809,446.This represents an increase of $3,712,664 or less than 1%from the previous year. Grants
and contributions increased by $3,750,153 or over 100% as a direct result of grant reimbursements from
TXDOT for the I-35 relocation project in the current year.
Utility service expenses remained relatively consistent with the prior year.Interest and fiscal charges
increased by $25,351 or 2%, and is also considered consistent.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related
legal requirements.
Governmental Funds -The focus of the City’s governmental funds is to provide information of near-
term inflows, outflows and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements.In particular,unassigned fund balance may serve as a useful measure of
the City’s net resources available for spending at the end of the year.
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
15
As of the end of the year the general fund reflected a total fund balance of $23,111,771.Of this, $23,344
is restricted for municipal court, $410,033 is restricted for tourism, $114,111 is restricted for library
improvements, $196,329 for public safety, $27,289 is restricted for parks, $2,412,862 is restricted for
roadway impact fees, and $1,239,934 is restricted for capital projects.In addition, $167,684 is committed
for employee benefits.Unassigned fund balance totaled $18,520,185 as of yearend.The general fund
increased by $383,154 primarily as a result of greater than expected revenues and less than anticipated
expenditures.
The capital projects fund reflected an ending balance of $664,292, a decrease of $902,867. This decrease
was a result of significant capital outlay expenditures recognized during the year.
The debt service fund reflected an ending balance of $307,433, a decrease of $27,792. This decrease was
due to current year expenditures exceeding revenues.
Proprietary Funds -The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
GENERAL FUND BUDGETARY HIGHLIGHTS
There was a total positive budget variance of $638,549 in the general fund. This is a combination of a
positive revenue variance of $126,722, a positive expenditure variance of $497,447,and a positive
variance of $14,380 in other financing sources and uses. The most significant revenue variances were
for licenses/permits and intergovernmental revenues.The net positive budget variance for the general
fund was $638,549 for the year.
CAPITAL ASSETS
As of the end of the year, the City’s governmental activities funds had invested $34,065,411 in a variety
of capital assets and infrastructure, net of accumulated depreciation. Depreciation is included with the
governmental capital assets as required by GASB Statement No. 34. The City’s business-type activities
funds had invested $52,948,427 in a variety of capital assets and infrastructure, net of accumulated
depreciation.
Major capital asset events during the current year include the following:
I-35 relocation and aesthetics project investments totaling $3,512,172.
AMR Metering system investments for $276,889.
Marion Road arterial improvements totaling $372,302.
Senior Center improvements for $253,007.
Purchased four F-150 trucks in the police department totaling $297,374.
City of Sanger, Texas
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
September 30, 2025
16
Purchased Axon software in car dash cameras for $210,091.
Purchased public safety vehicles & equipment totaling $2,230,818.
Purchased Chevrolet Silverado in the electric department for $99,443.
Purchased modular building for fire services totaling $448,780.
Roadway & street infrastructure improvements totaling $586,891.
Purchased new blowers for wastewater treatment plant totaling $128,140.
More detailed information about the City’s capital assets is presented in note IV. D to the financial
statements.
LONG-TERM DEBT
At the end of the current year, the City had total long-term debt (including premiums)outstanding of
$54,228,745. The City made principal payments on outstanding bonds, notes,and leases of $2,204,035.
More detailed information about the City’s long-term liabilities is presented in note IV. E to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Mayor and City Council are committed to maintaining and improving the overall wellbeing of the
City of Sanger and improving services provided to their public citizens. The City is considering
budgeting conservatively for the upcoming year and planning to maintain similar services.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City of Sanger’s finances for all
those with an interest in the City’s finances. Questions concerning this report or requests for additional
financial information should be directed to the City Manager at the City of Sanger City Hall at 502 Elm
Street, Sanger, Texas 76266.
FINANCIAL STATEMENTS
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Current assets:
Cash and cash equivalents $24,066,985 $15,123,972 $39,190,957
Restricted cash 126,428 - 126,428
Investments 595,027 765,159 1,360,186
Receivables, net 978,844 5,170,918 6,149,762
Inventory - 1,592,570 1,592,570
Due from component units 116,144 - 116,144
25,883,428 22,652,619 48,536,047
Noncurrent assets:
Lease receivable, noncurrent portion 33,000 - 33,000
Capital assets
Non-depreciable 15,241,797 12,413,090 27,654,887
Net depreciable capital assets 18,823,614 40,535,337 59,358,951
34,098,411 52,948,427 87,046,838
59,981,839 75,601,046 135,582,885
Deferred Outflows of Resources
Deferred charge on refunding 7,789 57,122 64,911
Pension outflows 918,699 197,312 1,116,011
OPEB outflows 6,007 1,255 7,262
Total Deferred Outflows of Resources 932,495 255,689 1,188,184
See Notes to Financial Statements.
City of Sanger, Texas
STATEMENT OF NET POSITION (Page 1 of 2)
September 30, 2025
Activities Activities
Primary Government
Governmental
Total
Business-Type
Assets
Total Assets
Total Current Assets
Total Noncurrent Assets
18
$6,306,468 $3,127,280
- -
102,746 309,488
153,638 153,638
- -
- -
6,562,852 3,590,406
- -
- -
259 -
259 -
6,563,111 3,590,406
- -
- -
- -
- -
Component Units
Sanger Industrial
Dev. Corp. (4A)Dev. Corp. (4B)
Sanger Texas
19
Liabilities
Current liabilities:
Accounts payable and
accrued liabilities $1,523,593 $1,152,398 $2,675,991
Accrued interest payable 119,574 452,469 572,043
Customer deposits - 581,447 581,447
Due to primary government - - -
Compensated absences - current 452,265 115,989 568,254
Long term debt due within one year 1,193,374 1,131,300 2,324,674
3,288,806 3,433,603 6,722,409
Noncurrent liabilities:
Debt due in more than one year 13,084,138 38,820,019 51,904,157
Compensated absences - noncurrent 120,233 26,755 146,988
OPEB liability 143,102 30,735 173,837
Net pension liability 2,488,955 534,560 3,023,515
15,836,428 39,412,069 55,248,497
19,125,234 42,845,672 61,970,906
Deferred Inflows of Resources
OPEB inflows 27,815 5,974 33,789
Pension inflows 176,281 37,860 214,141
Lease related 45,217 - 45,217
249,313 43,834 293,147
Net investment in capital assets 20,281,776 14,058,847 34,340,623
Restricted for:
Debt service 307,433 - 307,433
Parks 27,289 - 27,289
Economic development - - -
Roadway impact fees 2,412,862 - 2,412,862
Capital improvements 1,136,549 2,623,781 3,760,330
Other purposes 743,817 - 743,817
Unrestricted 16,630,061 16,284,601 32,914,662
$41,539,787 $32,967,229 $74,507,016
See Notes to Financial Statements.
Total Noncurrent Liabilities
Total Current Liabilities
Governmental
Activities
Primary Government
Total
Net Position
Total Net Position
Total Liabilities
Total Deferred Inflows of Resources
Activities
Business-Type
City of Sanger, Texas
September 30, 2025
STATEMENT OF NET POSITION (Page 2 of 2)
20
$13,992 $14,951
- -
- -
58,072 58,072
12,330 -
- -
84,394 73,023
- -
3,166 -
- -
- -
3,166 -
87,560 73,023
- -
- -
- -
- -
259 -
- -
- -
6,475,292 3,517,383
- -
- -
- -
- -
$6,475,551 $3,517,383
Dev. Corp. (4A)Dev. Corp. (4B)
Sanger Industrial Sanger Texas
Component Units
21
Capital
Grants and
Contributions
Primary Government
Governmental Activities
General government $3,936,995 $3,209,673 $180,000 $-
Public safety 7,302,986 1,229,655 206,514 -
Public works 2,171,707 - - 979,348
Culture and recreation 1,031,765 - - -
Interest and fiscal charges 696,118 - - -
15,139,571 4,439,328 386,514 979,348
Business-Type Activities
Water 2,437,273 3,104,287 - -
Sewer 2,464,073 (674,211) - 3,750,153
Electric 7,526,366 9,379,370 - -
Utility administration 1,637,989 - - -
Total Business-Type Activities 14,065,701 11,809,446 - 3,750,153
Total Primary Government $29,205,272 $16,248,774 $386,514 4,729,501
Component Units
Sanger Ind. Dev. Corp. (4A)400,345 - - -
Sanger Texas Dev. Corp. (4B)349,145 - - -
$749,490 $- $- $-
General Revenues:
Taxes
Property taxes
Sales taxes
Franchise and local taxes
Investment income
Other revenues
Gain on sale of capital assets
Insurance recoveries
Transfers
Change in Net Position
Beginning Net Position, as previously presented
Adoption of GASB 101
Beginning Net Position, as adjusted
Ending Net Position
See Notes to Financial Statements.
City of Sanger, Texas
STATEMENT OF ACTIVITIES
Operating
For the Year Ended September 30, 2025
Program Revenues
Total Governmental Activities
Functions/Programs Services
Total General Revenues and Transfers
Expenses Contributions
Charges for Grants and
22
$(547,322) $- $(547,322) $- $-
(5,866,817) - (5,866,817) - -
(1,192,359) - (1,192,359) - -
(1,031,765) - (1,031,765) - -
(696,118) - (696,118) - -
(9,334,381) - (9,334,381) - -
- 667,014 667,014 - -
- 611,869 611,869 - -
- 1,853,004 1,853,004 - -
- (1,637,989) (1,637,989) - -
- 1,493,898 1,493,898 - -
(9,334,381) 1,493,898 (7,840,483) - -
(400,345)-
- (349,145)
(400,345) (349,145)
9,074,520 - 9,074,520 - -
1,838,122 - 1,838,122 909,167 909,167
485,144 - 485,144 - -
635,658 389,020 1,024,678 148,564 75,702
328,051 214,649 542,700 - 1,800
94,918 - 94,918 - -
4,306 - 4,306 - -
844,289 2,905,864 3,750,153 - -
13,305,008 3,509,533 16,814,541 1,057,731 986,669
3,970,627 5,003,431 8,974,058 657,386 637,524
37,932,640 28,066,154 65,998,794 5,827,419 2,879,859
(363,480) (102,356) (465,836) (9,254) -
37,569,160 27,963,798 65,532,958 5,818,165 2,879,859
$41,539,787 $32,967,229 $74,507,016 $6,475,551 $3,517,383
Primary Government Component Units
Net (Expense) Revenue and Changes in Net Position
Activities
Governmental
Dev. Corp. (4A)Dev. Corp. (4B)Total
Business-Type
Activities
Sanger Industrial Sanger Texas
23
Cash and cash equivalents $22,819,165 $641,249 $307,433
Restricted cash - 126,428 -
Investments 595,027 - -
Receivables, net 739,124 186,151 33,776
Lease receivables 52,793 - -
Due from component units 116,144 - -
$24,322,253 $953,828 $341,209
Liabilities
Accounts payable and
accrued liabilities $961,752 $289,536 $-
961,752 289,536 -
Deferred Inflows of Resources
Unavailable revenue
Property taxes 178,120 - 33,776
EMS revenue 25,393 - -
Lease related 45,217 - -
Total Deferred Inflows of Resources 248,730 - 33,776
Restricted for:
Municipal court 23,344 - -
Tourism 410,033 - -
Library 114,111 - -
Public safety 196,329 - -
Debt service - - 307,433
Parks 27,289 - -
Roadway impact fees 2,412,862 - -
Capital projects 1,239,934 664,292 -
Committed for:
Employee benefits 167,684 - -
Unassigned reported in:
General fund 18,520,185 - -
23,111,771 664,292 307,433
$24,322,253 $953,828 $341,209
See Notes to Financial Statements.
City of Sanger, Texas
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2025
Total Liabilities, Deferred Inflows, and Fund
Balances
Assets
Service
Total Liabilities
Capital
Total Fund Balances
Total Assets
Fund Balances
General
Debt
Projects Fund
24
$23,767,847
126,428
595,027
959,051
52,793
116,144
$25,617,290
$1,251,288
1,251,288
211,896
25,393
45,217
282,506
23,344
410,033
114,111
196,329
307,433
27,289
2,412,862
1,904,226
167,684
18,520,185
24,083,496
$25,617,290
Funds
Total
Governmental
25
(This page intentionally left blank.)
26
Fund Balances - Total Governmental Funds $24,083,496
Adjustments for the Statement of Net Position:
Capital assets used in governmental activities are not current financial
resources and, therefore, not reported in the governmental funds.
Capital assets - non-depreciable 15,241,797
Capital assets - net depreciable 18,621,272
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the governmental funds.
Property tax receivable 211,896
EMS receivable 25,393
Deferred outflows (inflows) of resources, represent a consumption (acquisition) of net position that
applies to a future period(s) and is not recognized as an outflow (inflow) of resources
(expense/ expenditure) (revenue) until then.
Deferred charge on refunding 7,789
Pension contributions 583,089
OPEB contributions 2,190
Pension outflows 203,756
Pension inflows (150,981)
OPEB outflows 2,991
OPEB inflows (23,823)
Internal service funds are used by management to charge the cost of internal services
to individual funds. The assets and liabilities of the internal service funds
are included in governmental activities in the statement of net position.
Net position - governmental activities (168,690)
Some liabilities, including bonds payable and deferred charges, are not reported as
liabilities in the governmental funds.
Accrued interest (119,574)
Compensated absences (467,593)
Bond premium (16,904)
Net pension liability (2,131,735)
OPEB liability (122,564)
Non-current liabilities due in one year (1,187,472)
Non-current liabilities due in more than one year (13,054,546)
$41,539,787
See Notes to Financial Statements.
City of Sanger, Texas
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
September 30, 2025
Net Position of Governmental Activities
27
Revenues
Property tax $7,526,421 $- $1,624,485
Sales tax 1,838,122 - -
Franchise and local taxes 485,144 - -
License and permits 1,825,281 - -
Charges for services 1,384,392 - -
Fire and rescue 1,082,150 - -
Contributions and donations 107,790 - -
Intergovernmental 98,724 186,151 180,000
Fines and forfeitures 147,505 - -
Investment income 583,292 35,392 16,974
Roadway impact fees 793,197 - -
Other revenue 328,051 - -
16,200,069 221,543 1,821,459
Expenditures
Current:
General government 3,760,495 - 1,250
Police department 3,651,772 - -
Municipal court 231,812 - -
Fire and EMS 5,767,897 - -
Parks and recreation 795,624 - -
Public works 2,030,449 - -
Debt service:
Principal 4,439 - 1,129,700
Interest - - 718,301
Capital outlay 25,902 1,616,448 -
16,268,390 1,616,448 1,849,251
Excess of Revenues Over (Under) Expenditures (68,321) (1,394,905) (27,792)
Other Financing Sources (Uses)
Transfers in 844,289 492,038 -
Transfers (out)(492,038) - -
Sale of capital assets 94,918 - -
Insurance recoveries 4,306 - -
451,475 492,038 -
383,154 (902,867) (27,792)
Beginning fund balances 22,728,617 1,567,159 335,225
$23,111,771 $664,292 $307,433
See Notes to Financial Statements.
Capital
Ending Fund Balances
Total Other Financing Sources (Uses)
Total Expenditures
Net Change in Fund Balances
General
Total Revenues
ServiceProjects Fund
City of Sanger, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Debt
GOVERNMENTAL FUNDS
For the Year Ended September 30, 2025
28
$9,150,906
1,838,122
485,144
1,825,281
1,384,392
1,082,150
107,790
464,875
147,505
635,658
793,197
328,051
18,243,071
3,761,745
3,651,772
231,812
5,767,897
795,624
2,030,449
1,134,139
718,301
1,642,350
19,734,089
(1,491,018)
1,336,327
(492,038)
94,918
4,306
943,513
(547,505)
24,631,001
$24,083,496
Total
Funds
Governmental
29
(This page intentionally left blank.)
30
Amounts reported for governmental activities in the statement of activities are
different because:
Net changes in fund balances - total governmental funds $(547,505)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital outlay 4,968,491
Depreciation expense (1,602,985)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
EMS receivable (170,149)
Property tax receivable 93,763
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in governmental funds.
Compensated absences (76,018)
Accrued interest 8,405
Pension expense (7,291)
OPEB expense (20,674)
The issuance of long-term debt (e.g., bonds, leases, certificates of obligation)
provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effect of issuance
costs, premiums, discounts, and similar items when they are first issued; whereas,
these amounts are deferred and amortized in the statement of activities.
This amount is the net effect of these differences in the treatment of long-term
debt and related items.
Principal payments 1,134,139
Amortization of deferred charges (907)
Amortization of bond premium 14,685
Internal service funds are used by management to charge the cost of internal services
to individual funds. The City reports the net gain (loss) of internal
service funds within governmental activities.176,673
$3,970,627
See Notes to Financial Statements.
Change in Net Position of Governmental Activities
For the Year Ended September 30, 2025
City of Sanger, Texas
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
31
Current Assets
Cash and cash equivalents $15,123,972 $299,138
Investments 765,159 -
Receivables, net 5,170,918 -
Inventory 1,592,570 -
22,652,619 299,138
Noncurrent Assets
Capital assets:
Non-depreciable 12,413,090 -
Net depreciable capital assets 40,535,337 202,342
52,948,427 202,342
75,601,046 501,480
Deferred charge on refunding 57,122 -
Pension outflows 197,312 131,854
OPEB outflows 1,255 826
Total Deferred Outflows of Resources 255,689 132,680
Total Noncurrent Assets
Total Assets
Water, Sewer
Assets
Service
Deferred Outflows of Resources
Internal
& Electric
Total Current Assets
City of Sanger, Texas
STATEMENT OF NET POSITION (Page 1 of 2)
PROPRIETARY FUND
September 30, 2025
Activities
Governmental
32
Current Liabilities
Accounts payable and accrued liabilities $1,152,398 $272,305
Accrued interest 452,469 -
Customer deposits 581,447 -
Lease liabilities - current - 5,902
Compensated absences - current 115,989 83,776
Bonds and leases liabilities - current 1,131,300 -
3,433,603 361,983
Noncurrent Liabilities
Compensated absences - noncurrent 26,755 21,129
Lease liabilities - noncurrent - 12,688
Net pension liability 534,560 357,220
OPEB liability 30,735 20,538
Bonds and lease liabilities - noncurrent 38,820,019 -
42,845,672 773,558
OPEB inflows 5,974 3,992
Pension inflows 37,860 25,300
43,834 29,292
Net investment in capital assets 14,058,847 183,752
Restricted for capital improvements 2,623,781 -
Unrestricted 16,284,601 (352,442)
$32,967,229 $(168,690)
See Notes to Financial Statements.
Total Net Position
Net Position
Liabilities
Total Liabilities
Total Current Liabilities
Total Deferred Inflows of Resources
PROPRIETARY FUND
September 30, 2025
Deferred Inflows of Resources
City of Sanger, Texas
STATEMENT OF NET POSITION (Page 2 of 2)
Governmental
Activities
Water, Sewer Internal
& Electric Service
33
Operating Revenues
Charges for services $ 15,113,178 $ 4,043,016
Connection fees 73,608 ‐
Tap fees 372,813 ‐
Other revenue 214,649 30,000
15,774,248 4,073,016
Operating Expenses
Salaries and wages 3,297,150 2,048,546
Contracted services 1,027,171 1,282,625
Utilities 372,284 118,206
Materials and supplies 323,367 313,181
Water and electric purchases 4,924,221 ‐
Repairs and maintenance 804,405 100,090
Depreciation 2,136,102 33,695
12,884,700 3,896,343
2,889,548 176,673
Nonoperating Revenues (Expenses)
Investment income 389,020 ‐
Interest expense (1,181,001) ‐
(791,981)‐
2,097,567 176,673
Capital grants 3,750,153 ‐
Transfers (out) (844,289)‐
5,003,431 176,673
28,066,154 (225,756)
(102,356) (119,607)
27,963,798 (345,363)
$ 32,967,229 $ (168,690)
See Notes to Financial Statements.
Internal
Service
Governmental
Activities
City of Sanger, Texas
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUND
For the Year Ended September 30, 2025
Water, Sewer
& Electric
Ending Net Position
Total Operating Revenues
Total Operating Expenses
Change in Net Position
Operating Income (Loss)
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Beginning net position, as previously reported
Adoption of GASB 101
Beginning net position, as adjusted
34
Cash Flows from Operating Activities
Receipts from customers $ 12,593,633 $‐
Receipts from interfund charges for administrative services ‐ 4,073,016
Payments to suppliers (9,025,388) (1,742,537)
Payments to employees (3,463,363) (2,261,246)
Receipts from (payments to) other funds 1,910 ‐
106,792 69,233
Cash Flows from Noncapital Financing Activities
Operating transfers (out) (844,289) ‐
(844,289) ‐
Cash Flows from Capital and Related Financing Activities
Capital purchases (3,863,527) (42,525)
Capital grants 3,750,153 ‐
Principal paid on lease liabilities ‐ (9,596)
Principal paid on debt (1,060,300) ‐
Interest paid on debt (including bond issuance costs) (1,322,338) ‐
(2,496,012) (52,121)
Cash Flows from Investing Activities
Purchases of investments, net (17,259) ‐
Interest on investments 389,020 ‐
371,761 ‐
(2,861,748) 17,112
17,985,720 282,026
$ 15,123,972 $ 299,138
See Notes to Financial Statements.
Net Cash Provided (Used) by Noncapital Financing Activities
Net Cash Provided (Used) by Capital and Related Financing
Activities
Ending Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning cash and cash equivalents
Net Cash Provided by Investing Activities
City of Sanger, Texas
STATEMENT OF CASH FLOWS
PROPRIETARY FUND (Page 1 of 2)
For the Year Ended September 30, 2025
Net Cash Provided (Used) by Operating Activities
& Electric
Water, Sewer
Governmental
Activities
Internal
Service
35
Reconciliation of Operating Income
to Net Cash Provided by Operating Activities
Operating Income / (Loss)$2,889,548 $176,673
Adjustments to reconcile operating
income / (loss) to net cash provided / (used):
Depreciation 2,136,102 33,695
Changes in Operating Assets and Liabilities:
(Increase) Decrease in:
Accounts receivable (3,263,612) -
Inventory (608,235) -
Due from/to other funds 1,910 -
Other deferred outflows of resources - pensions 10,749 33,007
Deferred inflows of resources - pensions 29,142 18,392
Other deferred outflows of resources - OPEB (468) (210)
Deferred inflows of resources - OPEB 147 (625)
Increase (Decrease) in:
Accounts payable and accrued liabilities (965,705) 71,565
Compensated absences (54,366) (73,122)
Customer deposits 82,997 -
Net pension liability (148,020) (183,635)
OPEB liability (3,397) (6,507)
$106,792 $69,233
See Notes to Financial Statements.
STATEMENT OF CASH FLOWS
Net Cash Provided (Used) by Operating Activities
PROPRIETARY FUND (Page 2 of 2)
For the Year Ended September 30, 2025
& Electric
Water, Sewer
Governmental
Activities
Service
Internal
City of Sanger, Texas
36
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS
September 30, 2025
37
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Government‐Wide Financial Statements
The government‐wide financial statements (i.e., the statement of net position and
the statement of activities) report information on all of the nonfiduciary activities of
the primary government and its component units. Governmental activities, which
normally are supported by taxes, intergovernmental revenues, and other
nonexchange transactions, are reported separately from business‐type activities,
which rely to a significant extent on fees and charges to external customers for
support. Likewise, the primary government is reported separately from certain legally
separate component units for which the primary government is financially
accountable.
B. Reporting Entity
The City of Sanger, Texas (the “City”) was incorporated in 1886 and operates under
a Council‐Manager form of government. The City provides: general government,
public safety, public works, culture and recreation, water, sewer, and electricity
operations.
The City is an independent political subdivision of the State of Texas governed by
an elected council and a mayor and is considered a primary government. As
required by generally accepted accounting principles, these basic financial
statements have been prepared based on considerations regarding the potential for
inclusion of other entities, organizations, or functions as part of the Cityʹs financial
reporting entity. The Sanger Industrial Development Corporation (“4A fund”) and
the Sanger Texas Development Corporation (“4B fund”), although legally separate,
are considered part of the reporting entity. No other entities have been included in
the Cityʹs reporting entity. Additionally, as the City is considered a primary
government for financial reporting purposes, its activities are not considered a part
of any other governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations
or functions in the Cityʹs financial reporting entity are based on criteria prescribed
by generally accepted accounting principles. These same criteria are evaluated in
considering whether the City is a part of any other governmental or other type of
reporting entity. The overriding elements associated with prescribed criteria
considered in determining that the Cityʹs financial reporting entity status is that of a
primary government are that it has a separately elected governing body; it is legally
separate; and is fiscally independent of other state and local governments.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
38
Additionally, prescribed criteria under generally accepted accounting principles
include considerations pertaining to organizations for which the primary
government is financially accountable, and considerations pertaining to
organizations for which the nature and significance of their relationship with the
primary government are such that exclusion would cause the reporting entityʹs
financial statements to be misleading or incomplete.
Discretely Presented Component Units
Sanger Industrial Development Corporation (4A)
The Sanger Texas Industrial Development Corporation (“4A”) is governed by a
board of five directors, all of whom are appointed by the City Council of the City of
Sanger and any of whom can be removed from office by the City Council at its will.
The 4A fund was incorporated in the state of Texas as a non‐profit industrial
development corporation under Section 4A of the Development Corporation Act of
1979. The purpose of the 4A fund is to promote economic development within the
City of Sanger. Discrete presentation is appropriate because the Corporation’s
Board is not substantially the same as the City.
Sanger Texas Development Corporation (4B)
The Sanger Texas Development Corporation (“4B”) is governed by a board of seven
directors, all of whom are appointed by the City Council at its will. The 4B fund was
incorporated in the state of Texas as a nonprofit industrial development corporation
under Section 4B of the Development Corporation Act of 1979. The purpose of the
4B fund is to promote economic and community development within the City of
Sanger. Discrete presentation is appropriate because the Corporation’s Board is not
substantially the same as the City.
C. Basis of Presentation Government‐Wide and Fund Financial Statements
While separate government‐wide and fund financial statements are presented, they
are interrelated. The governmental activities column incorporates data from
governmental funds while business‐type activities incorporate data from the
government’s enterprise funds. Separate financial statements are provided for
governmental funds and the proprietary funds.
As a general rule, the effect of interfund activity has been eliminated from the
government‐wide financial statements. Exceptions to this general rule are payments
in lieu of taxes where the amounts are reasonably equivalent in value to the
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
39
interfund services provided and other charges between the government’s water and
transit functions and various other functions of the government. Elimination of
these charges would distort the direct costs and program revenues reported for the
various functions concerned.
The fund financial statements provide information about the government’s funds.
Separate statements for each fund category—governmental and proprietary are
presented. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. All remaining governmental
and enterprise funds are aggregated and reported as nonmajor funds. Major
individual governmental and enterprise funds are reported as separate columns in
the fund financial statements.
The government reports the following major governmental funds:
Governmental Funds
Governmental funds are those funds through which most governmental functions
are typically financed.
General Fund
The general fund is used to account for all financial transactions not properly
includable in other funds. The principal sources of revenues include local
property taxes, sales and franchise taxes, licenses and permits, fines and
forfeitures, and charges for services. Expenditures include general government,
public safety, parks and recreation and public works.
Capital Projects Fund
The capital projects fund is used to account for capital asset activities for
governmental fund types.
Debt Service Fund
The debt service fund is used to account for debt service activities for
governmental fund types.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
40
Proprietary Fund Types
Proprietary funds are used to account for activities that are similar to those often
found in the private sector. All assets, liabilities, equities, revenues, expenses, and
transfers relating to the government’s business activities are accounted for through
proprietary funds. The measurement focus is on determination of net income,
financial position, and cash flows. Proprietary funds distinguish operating revenues
and expenses from non‐operating items. Operating revenues include charges for
services. Operating expenses include costs of materials, contracts, personnel, and
depreciation. All revenues and expenses not meeting this definition are reported as
non‐operating revenues and expenses. Proprietary fund types follow GAAP
prescribed by the Governmental Accounting Standards Board (GASB) and all
financial Accounting Standards Board’s standards issued prior to November 30,
1989. Subsequent to this date, the City accounts for its enterprise funds as presented
by GASB. The proprietary fund types used by the City include enterprise funds.
The government reports the following major enterprise fund:
Water, Sewer, & Electric Fund
This fund is used to account for the provision of water, sewer and electric
services to the residents of the City. Activities of the fund include administration,
operations and maintenance of the water production and distribution system,
water collection and treatment systems, and electric services. The fund also
accounts for the accumulation of resources for and the payment of long‐term
debt. All costs are financed through charges to utility customers.
Additionally, the government reports the following fund type:
Internal Service Fund
Revenues and expenses related to services provided to organizations inside the
City on a cost reimbursement basis are accounted for in an internal service fund.
The Cityʹs internal service fund was set up to provide administrative support
services to other funds of the City.
During the course of operations the government has activity between funds for
various purposes. Any residual balances outstanding at year end are reported as
due from/to other funds and advances to/from other funds. While these balances
are reported in fund financial statements, certain eliminations are made in the
preparation of the government‐wide financial statements. Balances between the
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
41
funds included in governmental activities (i.e., the governmental and internal
service funds) are eliminated so that only the net amount is included as internal
balances in the governmental activities column. Similarly, balances between the
funds included in business‐type activities (i.e., the enterprise funds) are eliminated
so that only the net amount is included as internal balances in the business‐type
activities column.
Further, certain activity occurs during the year involving transfers of resources
between funds. In fund financial statements these amounts are reported at gross
amounts as transfers in/out. While reported in fund financial statements, certain
eliminations are made in the preparation of the government‐wide financial
statements. Transfers between the funds included in governmental activities are
eliminated so that only the net amount is included as transfers in the governmental
activities column. Similarly, balances between the funds included in business‐type
activities are eliminated so that only the net amount is included as transfers in the
business‐type activities column.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable
measurement focus and basis of accounting. Measurement focus indicates the type
of resources being measured such as current financial resources or economic resources.
The basis of accounting indicates the timing of transactions or events for recognition
in the financial statements.
The government‐wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. 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
for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider have been met.
The governmental fund 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
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
42
and judgments, are recorded only when payment is due. General capital asset
acquisitions are reported as expenditures in governmental funds. Issuance of long‐
term debt and acquisitions under leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Entitlements are recorded as
revenues when all eligibility requirements are met, including any time
requirements, and the amount is received during the period or within the
availability period for this revenue source (within 60 days of year end).
Expenditure‐driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other eligibility requirements have been
met, and the amount is received during the period or within the availability period
for this revenue source (within 60 days of year end). All other revenue items are
considered to be measurable and available only when cash is received by the
government.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net
Position/Fund Balance
1. Deposits 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. For the purpose of the statement of cash flows, the
proprietary fund types consider temporary investments with maturity of three
months or less when purchased to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Reporting for Certain
Investments and External Investment Pools, the City reports all investments at fair
value, except for “money market investments” and “2a7‐like pools.” Money market
investments, which are short‐term highly liquid debt instruments that may include
U.S. Treasury and agency obligations, are reported at amortized costs. Investment
positions in external investment pools that are operated in a manner consistent with
the SEC’s Rule 2a7 of the Investment Company Act of 1940, such as TexPool, are
reported using the pools’ share price.
The City has adopted a written investment policy regarding the investment of its
funds as defined in the Public Funds Investment Act, Chapter 2256, of the Texas
Governmental Code.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
43
In summary, the City is authorized to invest in the following:
Obligations of the United States Government, its agencies and
instrumentalities, not to exceed two years to stated maturity.
Fully collateralized certificates of deposit from a bank doing business in
the State of Texas, not to exceed three years to the stated maturity.
Money market funds authorized by the Public Funds Investment Act of
the Texas Government Code Chapter 2256
Statewide investment pools
2. Fair Value
The City has applied Governmental Accounting Standards Board (“GASB”)
Statement No. 72, Fair Value Measurement and Application. GASB Statement No.
72 provides guidance for determining a fair value measurement for reporting
purposes and applying fair value to certain investments and disclosures related to
all fair value measurements.
3. Receivables and Interfund Transactions
Transactions between funds that are representative of lending/borrowing
arrangements outstanding at the end of the year are referred to as either “interfund
receivables/payables” (i.e., the current portion of interfund loans) or “advances
to/from other funds” (i.e., the non‐current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds” in
the fund financial statements. If the transactions are between the primary
government and its component unit, these receivables and payables are classified as
“due to/from component unit/primary government.” Any residual balances
outstanding between the governmental activities and business‐type activities are
reported in the government‐wide financial statements as “internal balances.”
Advances between funds are offset by a fund balance reserve account in the
applicable governmental fund to indicate they are not available for appropriation
and are not expendable available financial resources.
All trade receivables are shown net of any allowance for uncollectible amounts.
4. Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior
January 1 for all real and business personal property in conformity with Subtitle E,
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
44
Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent
if not paid before February 1 of the year following the year in which imposed.
Penalties are calculated after February 1 up to the date collected by the government
at the rate of 6% for the first month and increased 1% per month up to a total of
12%. Interest is calculated after February 1 at the rate of 1% per month up to the
date collected by the government. Under state law, property taxes levied on real
property constitute a lien on the real property which cannot be forgiven without
specific approval of the State Legislature. The lien expires at the end of twenty
years. Taxes levied on personal property can be deemed uncollectible by the City.
5. Inventories and Prepaid Items
The costs of governmental fund type inventories are recorded as expenditures when
the related liability is incurred, (i.e., the purchase method). The inventories are
valued at the lower of cost or market using the average cost method. Certain
payments to vendors reflect costs applicable to future accounting periods (prepaid
expenditures) are recognized as expenditures when utilized.
6. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable
governmental or business‐type activities columns in the government‐wide financial
statements. Capital assets are defined by the government, as assets with an initial
individual cost of more than $10,000 and an estimated useful life in excess of one
year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair
market value at the date of donation. Major outlays for capital assets and
improvements are capitalized as projects are constructed.
Interest costs incurred in connection with construction of enterprise fund capital
assets are capitalized when the effects of capitalization materially impact the
financial statements.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets’ lives are not capitalized.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
45
Property, plant, and equipment of the primary government, as well as the
component units, are depreciated using the straight‐line method over the following
estimated useful years.
Asset Description
Estimated
Useful Life
Vehicles 5‐10 years
Furniture and equipment 5 to 10 years
Infrastructure 10‐30 years
Water and sewer system 10‐30 years
Buildings and improvements 5‐40 years
7. 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, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/ expenditure) until then. An example is a deferred
charge on refunding reported in the government‐wide statement of net position. A
deferred charge on refunding results from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
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, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The government has only one type of item, which arises
only under a modified accrual basis of accounting, which qualifies for reporting in
this category. Accordingly, the item, unavailable revenue, is reported only in the
governmental funds balance sheet. The governmental funds report unavailable
revenues from two sources: property taxes and EMS revenues. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts
become available.
8. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In
order to calculate the amounts to report as restricted – net position and unrestricted
– net position in the government‐wide and proprietary fund financial statements, a
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
46
flow assumption must be made about the order in which the resources are
considered to be applied.
9. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned, and
unassigned fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund
financial statements a flow assumption must be made about the order in which the
resources are considered to be applied. It is the government’s policy to consider
restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund
balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
10. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the
nature of any limitations requiring the use of resources for specific purposes. The
government itself can establish limitations on the use of resources through either a
commitment (committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only
for the specific purposes determined by a formal action of the government’s highest
level of decision‐making authority. The governing council is the highest level of
decision‐making authority for the government that can, by adoption of an
ordinance prior to the end of the fiscal year, commit fund balance. Once adopted,
the limitation imposed by the ordinance remains in place until a similar action is
taken (the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as
committed. The governing body (council) has by resolution authorized the City
Manager to assign fund balance. The Council may also assign fund balance as it
does when appropriating fund balance to cover a gap between estimated revenue
and appropriations in the subsequent year’s appropriated budget. Unlike
commitments, assignments generally only exist temporarily. In other words, an
additional action does not normally have to be taken for the removal of an
assignment. Conversely, as discussed above, an additional action is essential to
either remove or revise a commitment.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
47
11. Compensated Absences
The liability for compensated absences reported in the government‐wide and
proprietary fund statements consist of unpaid, accumulated vacation and sick time
balances. The liability has been calculated using the vesting method, in which leave
amounts for both employees who currently are eligible to receive termination
payments and other employees who are expected to become eligible in the future to
receive such payments upon termination are included. Vested or accumulated
vacation leave and compensated leave of government‐wide and proprietary funds
are recognized as an expense and liability of those funds as the benefits accrue to
employees.
It is the Cityʹs policy to liquidate compensated absences with future revenues rather
than with currently available expendable resources. Accordingly, the Cityʹs
governmental funds recognize accrued compensated absences when it is paid.
12. Long‐Term Obligations
In the government‐wide financial statements, long‐term debt and other long‐term
obligations are reported as liabilities in the applicable governmental activities
statement of net position. The long‐term debt consists primarily of bonds payable
and accrued compensated absences.
Long‐term debt for governmental funds is not reported as liabilities in the fund
financial statements until due. The debt proceeds are reported as other financing
sources, net of the applicable premium or discount and payments of principal and
interest reported as expenditures. In the governmental fund types, issuance costs,
even if withheld from the actual net proceeds received, are reported as debt service
expenditures. However, claims and judgments paid from governmental funds are
reported as a liability in the fund financial statements only for the portion expected
to be financed from expendable available financial resources.
Long‐term debt and other obligations, financed by proprietary funds, are reported
as liabilities in the appropriate funds. For proprietary fund types, bond premiums,
and discounts are deferred and amortized over the life of the bonds using the
effective interest method, if material. Bonds payable are reported net of the
applicable bond premium or discount. Issuance costs are expensed as incurred in
accordance with GASB statement no. 65.
Assets acquired under the terms of leases are recorded as liabilities and capitalized
in the government‐wide financial statements at the present value of net minimum
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
48
lease payments at inception of the lease. In the year of acquisition, lease transactions
are recorded as other financing sources and as capital outlay expenditures in the
general fund. Lease payments representing both principal and interest are recorded
as expenditures in the general fund upon payment with an appropriate reduction of
principal recorded in the government‐wide financial statements.
13. Estimates
The preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures/expenses during the reporting period. Actual results
could differ from those estimates.
14. Pensions
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 additions to/deductions from TMRS’s Fiduciary Net Position
have been determined on the same basis as they are reported by TMRS. 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.
15. Other Postemployment Benefits (“OPEB”)
The City has implemented GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. This statement
applies to the individual employers (TMRS cities) in the TMRS Supplemental Death
Benefits (SDB) plan, with retiree coverage. The TMRS SDBF covers both active and
retiree benefits with no segregation of assets, and therefore doesn’t meet the
definition of a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB)
and as such the SDBF is considered to be an unfunded OPEB plan. For purposes of
reporting under GASB 75, the retiree portion of the SDBF is not considered a cost
sharing plan and is instead considered a single employer, defined benefit OPEB
plan. The death benefit for active employees provides a lump‐sum payment
approximately equal to the employee’s annual salary, calculated based on the
employee’s actual earnings on which TMRS deposits are made, for the 12‐month
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
49
period preceding the month of death. The death benefit amount for retirees is
$7,500. GASB No. 75 requires the liability of employers and nonemployer
contributing entities to employees for defined benefit OPEB (net OPEB liability) to
be measured as the portion of the present value of projected benefit payments to be
provided to current active and inactive employees that is attributed to those
employees’ past periods of service (total OPEB liability), less the amount of the
OPEB plan’s fiduciary net position.
16. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City
recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in
the government‐wide financial statements. The City recognizes lease liabilities with
an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the
present value of payments expected to be made during the lease term.
Subsequently, the lease liability is reduced by the principal portion of lease
payments made. The lease asset is initially measured as the initial amount of the
lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is
amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1)
the discount rate it uses to discount the expected lease payments to present value,
(2) lease term, and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When
the interest rate charged by the lessor is not provided, the City generally uses its
estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments
included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City is reasonably certain to
exercise.
The City monitors changes in circumstances that would require a remeasurement of
its lease and will remeasure the lease asset and liability if certain changes occur that
are expected to significantly affect the amount of the lease liability.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
50
Lease assets are reported with other capital assets and lease liabilities are reported
with long‐term debt on the statement of net position.
Lessor: The City is a lessor for a noncancellable lease of a cell tower. The City
recognizes a lease receivable and a deferred inflow of resources in the government‐
wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at
the present value of payments expected to be received during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease
payments received. The deferred inflow of resources is initially measured as the
initial amount of the lease receivable, adjusted for lease payments received at or
before the lease commencement date. Subsequently, the deferred inflow of
resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate
it uses to discount the expected lease receipts to present value, (2) lease term, and
(3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for
leases.
• The lease term includes the noncancellable period of the lease. Lease receipts
included in the measurement of the lease receivable is composed of fixed payments
from the lessee.
The City monitors changes in circumstances that would require a remeasurement of
its lease, and will remeasure the lease receivable and deferred inflows of resources
if certain changes occur that are expected to significantly affect the amount of the
lease receivable.
17. Subscription based information technology arrangements (“SBITA”)
The City has adopted the provision of Governmental Accounting Standard Board
(GASB) Statement No. 96, entitled Subscription‐Based Information Technology
Arrangements (“SBITA”). When implementing GASB 96, the City records right to
use assets and subscription liabilities based on the present value of the payments
for the related arrangements. The assets will be included within capital assets, and
amortized straight‐line over the term of the arrangement. The liabilities will accrue
interest at the implied rate estimated by the City, and are relieved with payments
over the term of the arrangements.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
51
II. RECONCILIATION OF GOVERNMENT‐WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of certain differences between the governmental fund balance sheet
and the government‐wide statement of net position.
The governmental fund balance sheet includes reconciliation between fund balance‐
total governmental funds and net position‐governmental activities as reported in the
government‐wide statement of net position. One element of that reconciliation
explains that long‐term liabilities, including bonds, are not due and payable in the
current period and, therefore, are not reported in the funds.
B. Explanation of certain differences between the governmental fund statement of
revenues, expenditures, and changes in fund balances and the government‐wide
statement of activities.
The governmental fund statement of revenues, expenditures, and changes in fund
balances includes a reconciliation between net changes in fund balances – total
governmental funds and changes in net position of governmental states that, “the
issuance of long‐term debt (e.g., bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long‐term debt
consumes the current financial resources of governmental funds. Also,
governmental funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities.”
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Annual budgets are adopted on a basis consistent with generally accepted
accounting principles for all governmental and enterprise funds.
The appropriated budget is prepared by fund, function, and department. The legal
level of control is the fund level. No funds can be transferred or added to a
budgeted item without Council approval. Appropriations lapse at the end of the
year. Budget amendments were only re‐classes at the function level and below and
there was no increase in budgeted revenues or expenses by function from
amendments.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
52
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
As of September 30, 2025, the primary government had the following investments:
Investment Type
Certificates of deposit $ 1,360,186 0.52
Total fair value $ 1,360,186
Portfolio weighted average maturity 0.52
Average Maturity
Value (Years)
As of September 30, 2025, the 4A Component Unit had the following investments:
Investment Type
Certificates of deposit $ 102,746 0.09
Total fair value $ 102,746
Portfolio weighted average maturity 0.09
Average Maturity
Value (Years)
As of September 30, 2025, the 4B Component Unit had the following investments:
Investment Type
Certificates of deposit $ 309,488 0.43
Total fair value $ 309,488
Portfolio weighted average maturity 0.43
Average Maturity
Value (Years)
Interest rate risk – In accordance with its investment policy, the City manages its
exposure to declines in fair values by limiting the weighted average of maturity not
to exceed five years; structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations; monitoring credit ratings of
portfolio position to assure compliance with rating requirements imposed by the
Public Funds Investment Act; and invest operating funds primarily in short‐term
securities or similar government investment pools.
Credit risk – The City’s investment policy limits investments to obligations of the
United States, State of Texas, or their agencies and instrumentalities with an
investment quality rating of not less than “A” or its equivalent, by a nationally
recognized investment rating firm. Other obligations must be unconditionally
guaranteed (either express or implied) by the full faith and credit of the United
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
53
States Government or the issuing U.S. agency and investment pools with an
investment quality not less than AAA or AAA‐m, or equivalent, by at least one
nationally recognized rating service.
Custodial credit risk – deposits In the case of deposits, this is the risk that in the event
of a bank failure, the City’s deposits may not be returned to it. State statutes require
that all deposits in financial institutions be insured or fully collateralized by U.S.
government obligations or its agencies and instrumentalities or direct obligations of
Texas or its agencies and instrumentalities that have a market value of not less than
the principal amount of the deposits. As of September 30, 2025, the market values of
pledged securities and FDIC exceeded bank balances.
Custodial credit risk – investments For an investment, this is the risk that, in the event
of the failure of the counterparty, the City will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party.
The City’s investment policy requires that it will seek to safekeeping securities at
financial institutions, avoiding physical possession. Further, all trades, where
applicable, are executed by delivery versus payment to ensure that securities are
deposited in the City’s safekeeping account prior to the release of funds.
B. Receivables
1. The following comprise trade receivable balances of the primary government at
year end:
Property taxes $ 205,528 $‐ $ 38,055 $‐ $ 243,583
Sales tax 307,277 ‐ ‐ ‐ 307,277
Franchise & local taxes 65,683 ‐ ‐ ‐ 65,683
Hotel occupancy 34,600 ‐ ‐ ‐ 34,600
EMS 925,721 ‐ ‐ ‐ 925,721
Accounts 67,082 186,151 ‐ 1,761,772 2,015,005
Grants ‐ ‐ ‐ 3,483,521 3,483,521
Lease 52,793 ‐ ‐ ‐ 52,793
Allowance (866,767) ‐ (4,279) (74,375) (945,421)
$ 791,917 $ 186,151 $ 33,776 $ 5,170,918 $ 6,182,762
Debt
Total& Electric
Water, SewerCapital
General ServiceProjects
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
54
2. The following comprise trade receivable balances of the component units at year
end:
Sales tax $ 153,638 $ 153,638 $ 307,276
$ 153,638 $ 153,638 $ 307,276
Total4A 4B
3. The City is the lessor of a contract in which the City receives lease payments
from AT&T for the use of an existing cell tower. The lease commenced on May 1,
2018, with a term of 120 months. Monthly lease payments of $1,632 will be paid
through April 1, 2023. The lease payments increase to $1,795 per month for the
duration of the lease term, ending in April 2028. As of September 30, 2025, the
lease receivable and offsetting deferred inflows amounted to $52,793 and $45,217,
respectively.
The annual principal and interest payments to be received for the lease
receivable are as follows:
Year ending
September 30,
2026 $ 19,794 $1,750
2027 20,601 944
2028 12,398 169
$ 52,793 $2,863
Principal Interest (4%)
Governmental Activities
C. Inventory
The following comprise the inventory balances of the primary government at year
end:
Inventory type
Electric Department $ 1,399,977
Water Department 192,593
Total $ 1,592,570
Cost
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
55
D. Capital Assets
A summary of changes in governmental activities capital assets for the year end
was as follows:
Capital assets, not being depreciated:
Land $ 13,409,922 $‐ $‐ $ 13,409,922
Construction in progress 802,318 1,029,557 ‐ 1,831,875
14,212,240 1,029,557 ‐ 15,241,797
Capital assets, being depreciated:
Infrastructure 22,154,573 618,537 ‐ 22,773,110
Buildings and improvements 7,415,915 448,780 ‐ 7,864,695
Subscription assets 120,990 ‐ ‐ 120,990
Right to use assets 72,649 ‐ ‐ 72,649
Machinery and equipment 6,054,432 2,914,142 (107,853) 8,860,721
35,818,559 3,981,459 (107,853) 39,692,165
Less accumulated depreciation/amortiztion
Infrastructure 10,414,838 781,775 ‐ 11,196,613
Buildings and improvements 4,066,495 344,469 ‐ 4,410,964
Subscription assets 120,990 ‐ ‐ 120,990
Right to use assets 31,994 2,483 ‐ 34,477
Machinery and equipment 4,705,407 507,953 (107,853) 5,105,507
Total accumulated depreciation/amortization 19,339,724 1,636,680 (107,853) 20,868,551
Net capital assets being depreciated 16,478,835 2,344,779 ‐ 18,823,614
$ 30,691,075 $ 3,374,336 $‐ $ 34,065,411
Beginning Disposals /Ending
Balances Increases
Total Capital Assets
Total capital assets not being depreciated
Total capital assets being depreciated
BalancesReclassifications
Depreciation was charged to governmental functions as follows:
General government $ 111,493
Police department 194,338
Public works 792,370
Culture and recreation 276,345
Fire and rescue 228,440
Internal service 33,694
$ 1,636,680 Total Governmental Activities Depreciation Expense
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
56
A summary of changes in business‐type activities capital assets for the year end
was as follows:
Capital assets, not being depreciated:
Land $ 4,022,009 $‐ $‐ $ 4,022,009
Construction in progress 12,878,794 3,695,999 (8,183,712) 8,391,081
Total capital assets not being depreciated 16,900,803 3,695,999 (8,183,712) 12,413,090
Capital assets, being depreciated:
Infrastructure 55,333,918 52,438 8,183,712 63,570,068
Buildings and improvements 1,526,712 ‐ ‐ 1,526,712
Machinery and equipment 2,560,868 115,090 ‐ 2,675,958
Subscription assets 7,369 ‐ ‐ 7,369
Total capital assets being depreciated 59,428,867 167,528 8,183,712 67,780,107
Less accumulated depreciation/amortization
Infrastructure 22,248,080 1,909,972 ‐ 24,158,052
Buildings and improvements 748,897 86,767 ‐ 835,664
Machinery and equipment 2,104,322 139,363 ‐ 2,243,685
Subscription assets 7,369 ‐ ‐ 7,369
Total accumulated depreciation/amortization 25,108,668 2,136,102 ‐ 27,244,770
Net capital assets being depreciated 34,320,199 (1,968,574) 8,183,712 40,535,337
$ 51,221,002 $ 1,727,425 $‐ $ 52,948,427 Total Capital Assets
Beginning Disposals /Ending
Balances Increases Reclassifications Balances
Depreciation was charged to business‐type activities as follows:
Water $ 638,226
Sewer 1,226,537
Electric 271,339
$2,136,102 Total Business‐type Activities Depreciation/Amortization Expense
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
57
A summary of changes in component unit (4A Component Unit) capital assets for
the year end was as follows:
Capital assets, being depreciated:
Furniture and fixtures $ 40,950 $‐ $‐ $ 40,950
Total capital assets being depreciated 40,950 ‐ ‐ 40,950
Less accumulated depreciation
Furniture and fixtures 40,691 ‐ ‐ 40,691
Total accumulated depreciation 40,691 ‐ ‐ 40,691
Net capital assets being depreciated 259 ‐ ‐ 259
$ 259 $‐ $‐ $ 259 Total Capital Assets
Beginning Retirements/ Ending
Balances Additions Reclassifications Balances
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
58
E. Long‐term Debt
The following is a summary of changes in the City’s total governmental long‐term
liabilities for the year ended. The City uses the debt service fund to liquidate
governmental activities debts.
Governmental Activities:
Bonds and certificates:
General Obligation Bonds $ 295,200 $‐ $ (30,600) $ 264,600 $ 31,200
Certificates of Obligation 10,635,800 ‐ (429,100) 10,206,700 452,500
Tax Notes 4,419,000 ‐ (670,000) 3,749,000 695,000
Less deferred amounts:
For issuance premiums 31,589 ‐ (14,685) 16,904 ‐
15,381,589 ‐ (1,144,385) 14,237,204 1,178,700
Other liabilities:
Lease liabilities 54,343 ‐ (14,035) 40,308 14,674
$ 15,435,932 $‐ $ (1,158,420) $ 14,277,512 $ 1,193,374
Long ‐term liabilities due in more than one year $ 13,084,138
Business‐Type Activities:
General Obligation Bonds $ 2,164,800 $‐ $ (224,400) $ 1,940,400 $ 228,800
Certificates of Obligation 36,534,200 ‐ (835,900) 35,698,300 902,500
Less deferred amounts:
For issuance premiums 2,452,276 ‐ (139,657) 2,312,619 ‐
41,151,276 ‐ (1,199,957) 39,951,319 1,131,300
$ 41,151,276 $‐ $ (1,199,957) $ 39,951,319 $ 1,131,300
Long ‐term liabilities due in more than one year $ 38,820,019
To tal Business‐Type Activities
Amounts
Beginning Amortization/ Ending Due within
One Year
Total Governmental Activities
Balance Additions Payments Balance
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
59
Long‐term debt at year end was comprised of the following debt issues:
General Obligation Bonds:
$2,830,000 General Obligation Refunding Bond, Series 2021B, due in
installments through 2033, interest at 0.25% to 2.13%$ 264,600 $ 1,940,000 $ 2,204,600
$ 264,600 $ 1,940,000 $ 2,204,600
Certificates of Obligation:
$1,750,000 Certificates of Obligation, Series 2007,
due in annual installments through 2027, interest at 4.4% $ 86,700 $ 168,300 $ 255,000
$5,025,000 Certificates of Obligation, Series 2023B,
due in annual installments through 2053, interest at 4% to 5%‐ 5,025,000 5,025,000
$5,870,000 Certificates of Obligation, Series 2015,
due in annual installments through 2035, interest at 3.4% to 5.5%‐ 4,080,000 4,080,000
$9,240,000 Certificates of Obligation, Series 2017,
due in annual installments through 2035, interest at 3% to 4%‐ 8,825,000 8,825,000
$1,535,000 Certificates of Obligation, Series 2019,
due in annual installments through 2026, interest at 3% to 4.75% 245,000 ‐ 245,000
$18,615,000 Certificates of Obligation, Series 2021A,
due in annual installments through 2046, interest at 2% to 4%‐ 17,600,000 17,600,000
$10,190,000 Certificates of Obligation, Series 2023C,
due in annual installments through 2053, interest at 4.89% to 5.55% 9,875,000 ‐ 9,875,000
$ 10,206,700 $ 35,698,300 $ 45,905,000
Plus deferred amounts:
Issuance premiums $ 16,904 $ 2,312,619 $ 2,329,523
$ 16,904 $ 2,312,619 $ 2,329,523
Limited Tax Notes:
$5,065,000 Tax Notes, Series 2023, due in installments
through August 1, 2030, interest at 3.7%$ 3,749,000 $‐ $ 3,749,000
$ 3,749,000 $‐ $ 3,749,000
Total
Business ‐
Total General Obligation Bonds
Total Certificates of Obligation
Go vernmental Type
Activities Activities
Total Deferred Amounts
Total Tax Notes
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
60
Long ‐term Debt (Continued ):
Lease & Subscription Liabilities:
$ 40,308 $‐ $ 40,308
$ 14,277,512 $ 39,951,319 $ 54,228,831 Total Long ‐term Liabilities
Lease for use of copier; with a term of 60 months; monthly
payments of $1,331; optional renewal period; 4% interest
Type
Total
Governmental
Activities
Business ‐
Activities
Long‐term liabilities applicable to the City’s governmental activities are not due
and payable in the current period and accordingly, are not reported as fund
liabilities in the governmental funds. Interest on long‐term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when due.
The annual requirements to amortize governmental and business‐type activities
debt issues outstanding at year ending were as follows:
General Obligation Bonds
General Obligation Bonds
Year ending
September 30,
2026 $ 31,200 $ 4,690 $ 228,800 $ 34,395
2027 31,800 4,341 233,200 31,833
2028 31,800 3,889 233,200 28,521
2029 33,000 3,390 242,000 24,860
2030 33,000 2,786 242,000 20,431
Thereafter 103,800 4,362 761,200 31,992
$ 264,600 $ 23,458 $ 1,940,400 $ 172,032
Principal Interest Principal Interest
Governmental Activities Business ‐Type Activities
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
61
Combination Tax and Revenue Certificates of Obligations
Year ending
September 30,
2026 $ 452,500 $ 548,126 $ 902,500 $ 1,254,461
2027 214,200 528,387 935,800 1,228,481
2028 180,000 518,130 1,010,000 1,195,331
2029 190,000 509,328 1,060,000 1,157,756
2030 200,000 499,828 1,100,000 1,117,950
Thereafter 8,970,000 7,066,370 30,690,000 9,812,038
$ 10,206,700 $ 9,670,169 $ 35,698,300 $ 15,766,017
Principal Interest Principal Interest
Governmental Activities Business ‐Type Activities
General obligation bonds are direct obligations of the City for which its full faith
and credit are pledged. Repayment of general obligation bonds are from taxes
levied on all taxable property located within the City.
Tax Notes
Year ending
September 30,
2026 $ 695,000 $ 125,856
2027 722,000 99,641
2028 749,000 72,428
2029 777,000 59,108
2030 806,000 14,911
$ 3,749,000 $ 371,944
Principal Interest
Governmental Activities
Lease liabilities
Year ending
September 30,
2026 $ 14,674 $1,303
2027 15,230 474
2028 10,404 156
$40,308 $1,933
Governmental Activities
Principal Interest
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
62
The City entered into leases to finance two copier machines. The property is
classified as right to use assets with a total carrying value as of yearend for
governmental activities of $25,879.
F. Other Long‐term Liabilities
The following is a summary of changes in the City’s other long‐term liabilities for
the year ended. In general, the City uses the general fund to liquidate
governmental activities compensated absences.
Governmental Activities:
Compensated Absences $ 391,575 $ 386,602 $ (310,584) $ 467,593 $ 368,489
Compensated Absences in
internal service fund 178,027 66,002 (139,124) 104,905 83,776
Total Governmental Activities $ 569,602 $ 452,604 $ (449,708) $ 572,498 $ 452,265
Long ‐term Liabilities Due in More than One Year $ 120,233
Business‐Type Activities:
Compensated Absences $ 197,110 $ 106,840 $ (161,206) $ 142,744 $ 115,989
Total Business‐Type Activities $ 197,110 $ 106,840 $ (161,206) $ 142,744 $ 115,989
Lo ng ‐term Liabilities Due in More than One Year $ 26,755
Component Unit Activities:
Compensated Absences $ 13,278 12,515 (10,297) 15,496 12,330
Total Component Unit Activities $ 13,278 $ 12,515 $ (10,297) $ 15,496 $ 12,330
Long ‐term Liabilities Due in More than One Year $ 3,166
Amounts
Due Within
One Year
Beginning
Balance Additions Reductions
Ending
Balance
G. Conduit Debt
Before the current year, the City issued notes payable totaling $230,461,407 for the
purpose of assisting with financing needed by not‐for‐profit organizations to
promote their cause. The final maturities on notes payable range from March 2019
through December 2041. The notes are secured by various assets of the borrower.
The City has no liability for the notes payable in the event of default by the
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
63
borrowers. Accordingly, the bonds are not reported as liabilities in the City’s
financial statements.
H. Deferred Charge on Refunding
Deferred charges resulting from the issuance of 2021B general obligation refunding
bonds have been recorded as a deferred outflow of resources and are being
amortized to interest expense over the terms of the respective refunded debts.
Current year balances for governmental and business‐type activities totaled $7,789
and $57,122, respectively. Current year amortization expense for governmental
and business‐type activities totaled $907 and $6,655, respectively.
I. Interfund Transactions
Amounts transferred between funds relate to amounts collected, various capital
expenditures, annual funding, and debt payments.
Transfers (Out):
General $‐ $492,038 492,038
Water, sewer, and electric 844,289 ‐ 844,289
Total $ 844,289 $ 492,038 $ 1,336,327
TotalGeneral Projects
Capital
Transfers In:
The internal service fund provides administrative services to the general and
water, sewer, & electric funds.
Below is a summary of the amounts paid from these funds to the internal service
fund for the year ended September 30, 2025:
Paid by:
General $ 2,021,508
Enterprise 2,021,508
$ 4,043,016
Internal Service
Received by:
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
64
As of September 30, 2025, the 4A and 4B component unit had a payable balance of
$58,072, respectively, totaling $116,144, due to the primary government.
Interfund balances resulted from the timing difference between the dates that (1)
interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between
funds are made. All balances are expected to be paid in the subsequent year.
J. Fund Equity
The City records fund balance restrictions on the fund level to indicate that a
portion of the fund balance is legally restricted for a specific future use or to
indicate that a portion of the fund balance is not available for expenditures.
The following is a list of fund balances restricted/committed by the City:
Municipal court $ 23,344 *$‐
Tourism 410,033 *‐
Library 114,111 **‐
Public safety 196,329 *‐
Debt service 307,433 ‐
Capital projects 1,904,226 ‐
Parks 27,289 ‐
Roadway impact fees 2,412,862 ‐
A.R.P grant ‐ public safety ‐ ‐
Employee benefits ‐ 167,684
$ 5,395,627 $ 167,684
* Restricted by enabling legislation
** Restricted by donor
Committed
Fund Balance
Restricted Gov.
Fund Balance
V. OTHER INFORMATION
A. Risk Management
The City 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 City
participates along with over 2,700 other entities in the Texas Municipal League’s
Intergovernmental Risk Pools. The Pool purchases commercial insurance at group
rates for participants in the Pool. The City has no additional risk or responsibility to
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
65
the Pool outside of the payment of insurance premiums. The City has not
significantly reduced insurance coverage or had settlements which exceeded
coverage amounts for the past three years.
B. Contingent Liabilities
Amounts received or receivable from granting agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any
disallowed claims, including amounts already collected, may constitute a liability of
the applicable funds. The amounts of expenditures which may be disallowed by the
grantor cannot be determined at this time although the City expects such amounts,
if any, to be immaterial.
Liabilities are reported when it is probable that a loss has occurred, and the amount
of the loss can be reasonably estimated. 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 payouts, and other economic and social factors.
C. Construction commitments
The government has active construction projects as of September 30, 2025. The
projects include street construction and improvements, sewer plant and the
construction of additional water lines and repairs.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
66
At year end the government’s commitments with contractors are as follows:
various 147,017$ Mayim Municipal
various 65,400 KSA Engineers
various 262,524 Alan Plummer Assoc.
Various Projects Totals 474,941$
AMR Metering System 70,666$ Aqua Metric Sales
Project Total 70,666$
Generators for Buildings 291,696$ Power Standard
Project Total 291,696$
WWTP Site Study 22,634$ KSA Engineers
Various Projects Totals 22,634$
Total 900,937$
Project
Construction
Commitment @
09/30/25
Vendor
D. Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage consisting of complex
regulations with respect to issuance of tax‐exempt bonds after August 31, 1986.
Arbitrage regulations deal with the investment of tax‐exempt bond proceeds at an
interest yield greater than the interest yield paid to bondholders. Generally, all
interest paid to bondholders can be retroactively rendered taxable if applicable
rebates are not reported and paid to the Internal Revenue Service at least every five
years for applicable bond issues. Accordingly, there is the risk that if such
calculations are not performed correctly, a substantial liability to the City could
result. The City does anticipate that it will have an arbitrage liability and performs
annual calculations to estimate this potential liability. The City will also engage an
arbitrage consultant to perform the calculations in accordance with Internal
Revenue Service’s rules and regulations if indicated.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
67
E. Defined Benefit Pension Plans
1. Plan Description
The City of Sanger, Texas participates as one of 938 plans in the nontraditional, joint
contributory, hybrid defined benefit pension plan administered by the Texas
Municipal Retirement System (TMRS). TMRS is an agency created by the State of
Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple‐employer retirement
system for municipal employees in the State of Texas. The TMRS Act places the
general administration and management of the System with a six‐member Board of
Trustees. Although the Governor, with the advice and consent of the Senate,
appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s
defined benefit pension plan is a tax‐qualified plan under Section 401 (a) of the
Internal Revenue Code. TMRS issues a publicly available annual comprehensive
financial report (ACFR) that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
2. Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are
adopted by the governing body of the city, within the options available in the state
statutes governing 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 three 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.
The plan provisions are adopted by the governing body of the City, within the
options available in the state statutes governing TMRS.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
68
Plan provisions for the City were as follows:
Plan Year 2024 Plan Year 2023
Employee deposit rate 7.0% 7.0%
Matching ratio (city to
employee)
2 to 1 2 to 1
Years required for vesting 5 5
Service retirement eligibility
(expressed as age / years of
service)
60/5, 0/20 60/5, 0/20
Updated service credit 100% Repeating Transfers 100% Repeating Transfers
Annuity increase (to retirees) 0% of CPI 70% of CPI
Employees covered by benefit terms
At the December 31, 2024 valuation and measurement date, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 43
Inactive employees entitled to but not yet receiving benefits 53
Active employees 97
Total 193
3. Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee
gross earnings, and the city matching percentages are either 100%, 150%, or 200%,
both as adopted by the governing body of the 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 for the City of Sanger were required to contribute 7% of their annual
gross earnings during the fiscal year. The contribution rates for the City of Sanger
were 12.65% and 13.31% in calendar years 2024 and 2025, respectively. The City’s
contributions to TMRS for the year ended September 30, 2025, were $1,108,834, and
equal to the required contributions.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
69
4. Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2024, and
the Total Pension Liability (TPL) used to calculate the Net Pension Liability was
determined by an actuarial valuation as of that date.
Actuarial assumptions:
The Total Pension Liability in the December 31, 2024 actuarial valuation was
determined using the following actuarial assumptions:
Inflation 2.50% per year
Overall payroll growth 3.60% to 11.85%, including inflation 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 110% of the Public Safety
table used for males and 100% of the General Employee table used for females.
Mortality rates for healthy retirees and beneficiaries are based on the Gender‐
distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives,
healthy retirees and beneficiaries are projected on a fully generational basis by the
most recent Scale MP‐2021 (with immediate convergence) to account for future
mortality improvements. For disabled annuitants, the same mortality tables for
healthy retirees are 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 will be
applied to reflect the impairment for younger members who become disabled for
males and females, respectively. The rates are projected on a fully generational basis
by the most recent Scale MP‐2021 (with immediate convergence) to account for
future mortality improvements subject to the 3.5% and 3% floor.
.
The actuarial assumptions were developed primarily from the actuarial
investigation of the experience of TMRS as of December 31, 2022. They were
adopted in 2023 and first used in the December 31, 2023 actuarial valuation. The
post‐retirement mortality assumption for Annuity Purchase Rates (APRs) is based
on the Mortality Experience Investigation Study covering 2009 through 2011 and
dated December 31, 2013. 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..
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
70
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 weighting 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, Gabriel,
Roeder, Smith & Company (GRS) 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 real rates of return for each major asset
class in fiscal year 2025 are summarized in the following table:
Asset Class Target Allocation Long‐Term Expected Real Rate
of Return (Arithmetic)
Global Equity 35.0% 6.7%
Core Fixed Income 6.0% 4.7%
Non‐Core Fixed Income 20.0% 8.0%
Real Return 12.0% 8.0%
Real Estate 12.0% 7.6%
Absolute Return 5.0% 6.4%
Private Equity 10.0% 11.6%
Total 100.0%
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.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
71
Changes in the Net Pension Liability:
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability (a) – (b)
Balance at 12/31/23 $ 17,499,390 $ 14,173,311 $ 3,326,079
Changes for the year:
Service Cost 1,122,216 ‐ 1,122,216
Interest (on the Total Pension Liab.) 1,192,219 ‐ 1,192,219
Change in benefit terms ‐ ‐ ‐
Difference between expected and
actual experience 335,271 ‐ 335,271
Changes of assumptions ‐ ‐ ‐
Contributions – employer ‐ 982,847 (982,847)
Contributions – employee ‐ 503,881 (503,881)
Net investment income ‐ 1,475,208 (1,475,208)
Benefit payments, including
refunds of emp. contributions (795,980) (795,980) ‐
Administrative expense ‐ (9,445) 9,445
Other changes ‐ (221) 221
Net changes 1,853,726 2,156,290 (302,564)
Balance at 12/31/24 $ 19,353,116 $ 16,329,601 $ 3,023,515
Sensitivity of the net pension liability to changes in the discount rate
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 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% Decrease Current Single Rate 1% Increase
5.75% 6.75%7.75%
$5,807,278 $3,023,515 $734,659
Pension Plan Fiduciary Net Position:
Detailed information about the pension plan’s Fiduciary Net Position is available in
a separately‐issued TMRS financial report. That report may be obtained on the
internet at www.tmrs.com.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
72
5. Pension Expense and Deferred Outflows and Inflows of Resources Related to
Pensions
For the year ended September 30, 2025, the City recognized pension expense of
$948,026.
At September 30, 2025, the City reported deferred outflows and deferred inflows of
resources related to pensions from the following sources:
Difference between projected and
investment earnings $‐ $ (177,544)
Changes in actuarial assumptions ‐ (36,597)
Differences between expected and actual
economic experience 288,995 ‐
Contributions subsequent to the
measurement date 827,016 ‐
Total $ 1,116,011 $ (214,141)
Deferred Outflows
of Resources
Deferred (Inflows)
of Resources
The City reported $827,016 as deferred outflows of resources related to pensions
resulting from contributions subsequent to the measurement date that will be
recognized as a reduction of the net pension liability for the year ending September
30, 2026.
Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended December 31:
2025 $ 79,016
2026 210,397
2027 (137,835)
2028 (76,724)
2029 ‐
Thereafter ‐
$ 74,854
F. Postemployment Benefits Other Than Pensions
The City also participates in the cost sharing multiple‐employer defined benefit
group‐term life insurance plan operated by the Texas Municipal Retirement System
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
73
(TMRS) known as the Supplemental Death Benefits Fund (SDBF). The City elected,
by ordinance, to provide group‐term life insurance coverage to both current and
retired employees. The City may terminate coverage under and discontinue
participation in the SDBF by adopting an ordinance before November 1 of any year
to be effective the following January 1.
The death benefit for active employees provides a lump‐sum payment
approximately equal to the employee’s annual salary (calculated based on the
employee’s actual earnings, for the 12‐month period preceding the month of death);
retired employees are insured for $7,500; this coverage is an “other
postemployment benefit,” or OPEB.
The City contributes to the SDBF at a contractually required rate as determined by
an annual actuarial valuation. The rate is equal to the cost of providing one‐year
term life insurance. The funding policy for the SDBF program is to assure that
adequate resources are available to meet all death benefit payments for the
upcoming year; the intent is not to pre‐fund retiree term life insurance during
employees’ entire careers.
Employees covered by benefit terms
At the December 31, 2024 valuation and measurement date, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 30
Inactive employees entitled to but not yet receiving benefits 17
Active employees 97
Total 144
The City’s retiree contribution rates to the TMRS SDBF for the years ended 2025,
2024 and 2023 are as follows:
Plan/
Calendar Year
Annual
Required
Contribution
(Rate)
Actual
Contribution
Made
(Rate)
Percentage of
ARC
Contributed
2023 0.05% 0.05% 100.0%
2024 0.06% 0.06% 100.0%
2025 0.05% 0.05% 100.0%
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
74
The City’s contributions to the TMRS SDBF for the years ended 2025, 2024, and 2023
were $3,330, $3,169, and $2,246, respectively, which equaled the required
contributions each year.
Total OPEB Liability
The City’s Postemployment Benefits Other Than Pensions Liability (OPEB) was
measured as of December 31, 2024, and the Total OPEB Liability was determined by
an actuarial valuation as of that date.
Actuarial assumptions:
The Total OPEB Liability in the December 31, 2024 actuarial valuation was
determined using the following actuarial assumptions:
Inflation 2.50% per year
Overall payroll growth 3.60% to 11.85%, including inflation per
year
Discount rate 4.08%
Retirees’ share of benefit‐related costs $0
Administrative expenses All administrative expenses are paid
through the Pension Trust and accounted
for under reporting requirements under
GASB Statement No. 68
Salary increases were based on a service‐related table. Mortality rates for active
members, retirees, and beneficiaries were based on the gender‐distinct 2019
Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103%
and female rates are multiplied by 105%. The rates are projected on a fully
generational basis by the most recent Scale MP‐2021 (with immediate convergence)
to account for future mortality improvements. For disabled annuitants, the
mortality tables for healthy retirees are used with a 4‐year set‐forward for males
and a 3‐year set‐forward for females. In addition, a 3.5% and 3% minimum
mortality rate will be applied to reflect the impairment for younger members who
become disabled for males and females. The rates are projected on a fully
generational basis by the most recent Scale MP=2021 (with immediate convergence)
to account for future mortality improvements subject to the 3.5% and 3% floor.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
75
Discount Rate:
The discount rate used to measure the Total OPEB Liability was 4.08%. The
discount rate was based on the Fidelity Index’s “20‐Year Municipal GO AA Index”
rate as of December 31, 2024.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the
discount rate of 4.08%, as well as what the City’s total OPEB liability (asset) would
be if it were calculated using a discount rate that is 1‐percentage‐point lower
(3.08%) or 1‐percentage‐point higher (5.08%) than the current rate:
$212,580 $173,837 $144,230
1% Decrease
(3.08%)
Current Single Rate
4.08%
1% Increase
(5.08%)
Changes in the Total OPEB Liability:
Total OPEB
Liability
Balance at 12/31/23 $ 166,321
Changes for the year:
Service Cost 13,677
Interest 6,447
Change in benefit terms ‐
Difference between expected and
actual experience 2,677
Changes of assumptions (10,966)
Benefit payments (4,319)
Net changes 7,516
Balance at 12/31/24 $ 173,837
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
For the year ended September 30, 2025, the City recognized OPEB expense of
$14,059.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
76
At September 30, 2025, the City reported deferred outflows of resources and
deferred inflows of resources related to the OPEB liability from the following
sources:
Differences between expected and
actual economic experience
$ 4,242 $ ‐
Changes in assumptions ‐ (33,789)
Contributions subsequent to
measurement date 3,020 ‐
Total $ 7,262 $ (33,789)
Deferred Outflows
of Resources
Deferred (Inflows)
of Resources
The City reported $3,020 as deferred outflows of resources related to pensions
resulting from contributions subsequent to the measurement date that will be
recognized as a reduction of the OPEB liability for the year ending September 30,
2026.
Other amounts reported as deferred outflows and inflows of resources related to
OPEB will be recognized in pension expense as follows:
Year ended December 31:
2025 $ (5,094)
2026 (5,575)
2027 (10,085)
2028 (7,531)
2029 (1,262)
Thereafter ‐
$ (29,547)
G. Restatements
Due to the implementation of GASB 101, Compensated Absences, the City restated
beginning net position/fund balance for governmental activities, business‐type
activities, component‐unit activities, and the water, sewer, and electric fund. The
restatements are summarized on the next page.
City of Sanger, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2025
77
$ 37,932,640 $ 28,066,154 $ 28,066,154
Implemenation of GASB 101 (363,480) (102,356) (102,356)
$ 37,569,160 $ 27,963,798 $ 27,963,798
Prior year ending net position/fund
balance, as reported
Restated beginning net position/fund
balance
Electric Fund
Governmental
Activities
Business‐type
Activities
Water, Sewer
$ 8,707,278 $ 5,827,419
Implemenation of GASB 101 (9,254) (9,254)
$ 8,698,024 $ 5,818,165
Prior year ending net position/fund
balance, as reported
Restated beginning net position/fund
balance
Component‐Unit
Activities
Sanger Indust.
Dev. Corp (4A)
H. New Accounting Standards
The City adopted GASB 101, Compensated Absences, during the year. The goal of the
standard is to create a more consistent model for accounting for compensated absences
that can be applied to all types of compensated absence arrangements.
The new guidance introduces three criteria for recording a liability in financial
statements prepared using the economic resources measurement focus (often referred
to as a “full accrual” basis). A liability should be recognized for leave that has not been
used if all of the following are true:
The leave is attributable to services already rendered.
The leave accumulates.
The leave is more likely than not to be used for time off or otherwise paid in
cash or settled through noncash means (likelihood of more than 50 percent).
This standard was applied retroactively and resulted in a sick leave liability of
$316,554, which was included within compensated absences as of September 30, 2025.
I. Subsequent Events
There were no subsequent events warranting disclosure through January 22, 2026,
the date the financial statements were available to be issued.
(This page intentionally left blank.)
78
REQUIRED SUPPLEMENTARY INFORMATION
79
Revenues
Property tax $7,715,872 $7,715,872 $7,526,421 $(189,451)
Sales tax 1,943,000 1,943,000 1,838,122 (104,878)
Franchise and local taxes 553,950 400,950 485,144 84,194
License and permits 459,250 659,250 1,825,281 1,166,031
Charges for services 1,427,850 1,427,850 1,384,392 (43,458)
Fire and rescue 885,947 885,947 1,082,150 196,203
Contributions and donations 57,170 154,699 107,790 (46,909)
Intergovernmental 2,053,803 2,053,803 98,724 (1,955,079)
Fines and forfeitures 196,926 196,926 147,505 (49,421)
Investment income 418,150 418,150 583,292 165,142
Roadway impact fees 100,000 100,000 793,197 693,197
Other revenue 116,900 116,900 328,051 211,151
15,928,818 16,073,347 16,200,069 126,722
Expenditures
Current:
General government 3,741,641 3,741,641 3,760,495 (18,854)
Police department 3,798,189 3,927,138 3,651,772 275,366
Municipal court 283,894 283,894 231,812 52,082
Fire and EMS 5,626,104 5,626,104 5,767,897 (141,793)
Parks and recreation 964,390 964,390 795,624 168,766
Public works 1,991,170 2,191,170 2,030,449 160,721
Debt service:
Principal - - 4,439 (4,439)
Capital outlay 31,500 31,500 25,902 5,598
16,436,888 16,765,837 16,268,390 497,447
Revenues Over (Under)
Expenditures $(508,070) $(692,490) $(68,321) $624,169
Final Budget
Total Expenditures
Actual
Total Revenues
Original
Budget
City of Sanger, Texas
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL- GENERAL FUND (Page 1 of 2)
For the Year Ended September 30, 2025
Variance with
Final Budget
80
Transfers in $1,144,289 $1,144,289 $844,289 $(300,000)
Transfers (out)(757,194) (757,194) (492,038) 265,156
Sale of capital assets 25,000 25,000 94,918 69,918
Insurance recoveries 25,000 25,000 4,306 (20,694)
437,095 437,095 451,475 14,380
Net Change in Fund Balance $(70,975) $(255,395) 383,154 $638,549
Beginning fund balance 22,728,617
$23,111,771
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
Ending Fund Balance
Total Other Financing Sources
(Uses)
Other Financing Sources (Uses)
Original
Budget
Variance with
Actual Final BudgetFinal Budget
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL- GENERAL FUND (Page 2 of 2)
For the Year Ended September 30, 2025
City of Sanger, Texas
81
Total pension liability
Service cost $1,122,216 $893,655 $776,119 $579,590
Interest (on the Total Pension Liability)1,192,219 1,090,782 1,028,630 845,902
Changes in benefit terms - - 1,680,179 -
Differences between expected and actual
experience 335,271 221,273 (260,060) 70,056
Changes of assumptions - (66,111) - -
Benefit payments, including refunds of
participant contributions (795,980) (706,224) (659,161) (474,649)
Net change in total pension liability 1,853,726 1,433,375 2,565,707 1,020,899
Total pension liability - beginning 17,499,390 16,066,015 13,500,308 12,479,409
Total pension liability - ending (a)$19,353,116 $17,499,390 $16,066,015 $13,500,308
Plan fiduciary net position
Contributions - employer $982,847 $773,936 $449,999 $401,724
Contributions - members 503,881 423,246 317,647 281,582
Net investment income (loss)1,475,208 1,422,148 (958,693) 1,491,263
Benefit payments, including refunds of
participant contributions (795,980) (706,224) (659,161) (474,649)
Administrative expenses (9,445) (9,034) (8,286) (6,891)
Other (221) (63) 9,888 47
Net change in plan fiduciary net position 2,156,290 1,904,009 (848,606) 1,693,076
Plan fiduciary net position - beginning 14,173,311 12,269,302 13,117,908 11,424,832
Plan fiduciary net position - ending (b)$16,329,601 $14,173,311 $12,269,302 $13,117,908
$3,023,515 $3,326,079 $3,796,713 $382,400
84.38%80.99%76.37%97.17%
Covered payroll $7,198,306 $6,046,378 $5,294,125 $4,693,038
42.00%55.01%71.72%8.15%
Plan fiduciary net position as a percentage
of the total pension liability
Fund's net position as a percentage of
covered payroll
Fund's net pension liability - ending (a) -
(b)
2024
City of Sanger, Texas
Years ended December 31,
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
202120222023
82
$547,534 $498,768 $462,521 $438,324 $408,943 $369,950
780,457 709,455 648,013 590,632 545,333 521,853
- - - - - -
38,473 89,057 93,857 38,794 (78,516) (89,808)
- 92,583 - - - 47,847
(351,235) (373,476) (251,071) (208,451) (230,245) (260,514)
1,015,229 1,016,387 953,320 859,299 645,515 589,328
11,464,180 10,447,793 9,494,473 8,635,174 7,989,659 7,400,331
$12,479,409 $11,464,180 $10,447,793 $9,494,473 $8,635,174 $7,989,659
$359,731 $321,275 $294,606 $276,169 $240,177 $231,097
264,509 243,698 226,912 217,171 202,113 195,568
787,844 1,365,511 (264,466) 1,040,205 461,955 9,831
(351,235) (373,476) (251,071) (208,451) (230,245) (260,514)
(5,093) (7,705) (5,106) (5,387) (5,214) (5,988)
(199) (231) (267) (273) (281) (296)
1,055,557 1,549,072 608 1,319,434 668,505 169,698
10,369,275 8,820,203 8,819,595 7,500,161 6,831,656 6,661,957
$11,424,832 $10,369,275 $8,820,203 $8,819,595 $7,500,161 $6,831,655
$1,054,577 $1,094,905 $1,627,590 $674,878 $1,135,013 $1,158,004
91.55%90.45%84.42% 92.89% 86.86% 85.51%
$4,408,488 $4,061,633 $3,781,589 $3,619,524 $3,368,554 $3,259,471
23.92%26.96%43.04% 18.65% 33.69% 35.53%
201620172019 201520182020
83
9/30/2025 9/30/2024 9/30/2023 9/30/2022
$1,108,834 $868,459 $494,726 $434,276
$1,108,834 $868,459 $681,853 $434,276
Contribution deficiency (excess)$- $- $(187,127) $-
Annual covered payroll $8,441,304 $6,843,081 $5,766,288 $5,099,265
13.14%12.69%11.82%8.52%
Valuation Date:
Notes Actuarially determined contribution rates are
calculated as of December 31 and become
effective in January 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 20 years
Asset Valuation Method 10 Year smoothed market; 12% soft corridor
Inflation 2.50%
Salary Increases 3.60% to 11.85% including inflation
Investment Rate of Return 6.75%
Retirement Age
Mortality
Other Information:
Notes There were no benefit changes during the year.
Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates
are multiplied by 103% and female rates are multiplied by 105%. The rates are
projected on a fully generational basis by the most recent Scale MP-2021 (with
immediate convergence).
Pre-retirement: PUB(10) mortality tables, with the 110% of the Public Safety table
used for males and the 100% of the General Employee table used for females. The
rates are projected on a fully generational basis by the most recent Scale MP-2021
(with imediate convergence).
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN
City of Sanger, Texas
Experience-based table of rates that are specific to the City's plan of benefits. Last
updated for the 2023 valuation pursuant to an experience study of the period
ending 2022
Contributions in relation to the actuarially
determined contribution
Employer contributions as a percentage of
covered payroll
Actuarially determined employer
contributions
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN
Years Ended:
84
9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016
$377,301 $341,109 $320,019 $287,348 $266,753 $247,432
$377,301 $341,109 $320,019 $287,348 $266,753 $247,432
$- $- $- $- $- $-
$4,462,235 $4,209,793 $4,060,365 $3,706,912 $3,549,724 $3,475,512
8.46%8.10%7.88%7.75%7.51%7.12%
85
Total OPEB liability
Service cost $13,677 $12,697 $19,059 $16,895
Interest (on the Total OPEB Liability)6,447 5,828 3,760 3,575
Changes in benefit terms - - - -
Differences between expected and
actual experience 2,677 2,822 2,729 81
Changes of assumptions (10,966) 8,936 (80,007) 6,480
Benefit payments, including refunds of
participant contributions (4,319) (3,023) (2,647) (2,347)
Net changes 7,516 27,260 (57,106) 24,684
Total OPEB liability - beginning 166,321 139,061 196,167 171,483
Total OPEB liability - ending $173,837 $166,321 $139,061 $196,167
Covered payroll $7,198,306 $6,046,378 $5,294,125 $4,693,038
2.41%2.75%2.63%4.18%
Notes to schedule:
1
2 No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay
related benefits.
This schedule is presented to illustrate the requirement to show information for ten years. However, until a
full ten-year trend is compiled, only available information is shown.
202120232022
Total OPEB Liability as a percentage of
covered payroll
2024
TEXAS MUNICIPAL RETIREMENT SYSTEM
Years ended December 31,
PENSION (OPEB) LIABILITY AND RELATED RATIOS
SCHEDULE OF CHANGES IN POSTEMPLOYMENT BENEFITS OTHER THAN
City of Sanger, Texas
86
1
$12,785 $8,529 $9,076 $7,601
3,799 3,938 3,691 3,432
- - - -
(468) (3,932) (9,264) -
24,053 22,174 (7,993) 9,310
(882) (812) (377) (363)
39,287 29,897 (4,867) 19,980
132,196 102,299 107,166 87,186
$171,483 $132,196 $102,299 $107,166 2
$4,408,488 $4,061,633 $3,781,859 $3,619,524
3.89%3.25%2.70%2.96%
20192020 20172018
87
(This page intentionally left blank.)
88
OTHER SUPPLEMENTARY INFORMATION
89
Operating Revenues
Charges for services $2,949,224 $2,858,192 $9,305,762
Connection fees - - 73,608
Tap fees 155,063 217,750 -
Other revenue - - -
3,104,287 3,075,942 9,379,370
Operating Expenses
Salaries and wages 915,846 441,668 1,721,044
Contracted services 256,691 79,412 508,961
Utilities 166,152 202,598 3,534
Materials and supplies 84,053 88,694 124,991
Water and electric purchases 205,233 - 4,718,988
Repairs and maintenance 171,072 425,164 177,509
Depreciation 638,226 1,226,537 271,339
2,437,273 2,464,073 7,526,366
667,014 611,869 1,853,004
Nonoperating Revenues (Expenses)
Investment income - - -
Interest expense - - -
- - -
Income (Loss) Before Transfers 667,014 611,869 1,853,004
Capital contributions - 3,750,153 -
Transfers (out)- - (749,289)
$667,014 $4,362,022 $1,103,715 Change in Net Position
Water
Total Operating Revenues
Total Operating Expenses
Operating Income (Loss)
Total Nonoperating Revenues (Expenses)
City of Sanger, Texas
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND
NET POSITION
PROPRIETARY FUNDS - BY DEPARTMENT
For the Year Ended September 30, 2025
Sewer Electric
90
$- $15,113,178
- 73,608
- 372,813
214,649 214,649
214,649 15,774,248
218,592 3,297,150
182,107 1,027,171
- 372,284
25,629 323,367
- 4,924,221
30,660 804,405
- 2,136,102
456,988 12,884,700
(242,339) 2,889,548
389,020 389,020
(1,181,001) (1,181,001)
(791,981) (791,981)
(1,034,320) 2,097,567
- 3,750,153
(95,000) (844,289)
$(1,129,320) $5,003,431
Administration Total
91