1998 Annual Financial ReportCITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
Prepared By:
William C. Spore &Company, P.C.
Certified Public Accountants
817-5454725
F 1 ,
8ECRETAny
TABLE OF CONTENTS
AUDITOR'S REPORT
CITY OFFICIALS
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES -
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN RETAINED EARNINGS - PROPRIETARY FUND
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND
NOTES TO FINANCIAL STATEMENTS
PAGE #
1
2
3
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
COMBINING STATEMENT OF REVENUES &EXPENDITURES
- GENERAL FUND 17
COMBINING STATEMENT OF REVENUES &EXPENDITURES
- GENERAL FUND - BUDGET AND ACTUAL 18
STATEMENT OF GENERAL FIXED ASSETS 19
SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 20
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 21
STATEMENT OF GENERAL LONG-TERM DEBT 22
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 23
SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 24
SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 25
SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 26
SUPPLEMENTAL INFORMATION
SCHEDULE OF RESTRICTED ASSETS 27
SCHEDULE OF RESERVED FUN-D EQUITIES 28
SCHEDULE OF INSURANCE COVERAGE 29
ENTERPRISE FUND # OF CUSTOMERS AND RATES 30
ANALYSIS OF PROPERTY TAXES 31
William C. Spore & Company, PC.
Certified Public Accountants
INWIMARMfiWaIR
To the City Council
City of Sanger, Texas
We have audited the accompanying general-purpose financial statements of the City of
Sanger, Texas, as of and for the year ended September 30, 1998, as listed in the table of
contents. These general-purpose financial statements are the responsibility of the City of
Sanger's management. Our responsibility is to express an opinion on these
i
general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Governmeni Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides to reasonable basis for our opinion,
In our opinion, the general-purpose financial statements referred to above present fairly, in
all material respects, the financial position of the City of Sanger, Texas, as of
September 30, 1998, and the results of its operations and the gash flows of its proprietary
fund types for the year then ended in conformity with generally accepted accounting
principles.
In accordance with Goverf�mer�t A2�ditif�g Standards, we have also issued our report dated
March 12, 1999 on our consideration of the City of Sanger's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grants.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining and individual fund and account
group financial statements and schedules listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the general purpose financial
statement of the City �f Sanger, Texas. Such information has been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in
our opinion is fairly presented in all material respects in relation to tihe general purpose
financial statements taken'as a whole.
William C. Spore &Company, P.C.
March 12, 1999
1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725
ELECTED OFFICIALS
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
APPOINTED OFFICIALS
CITY ADMINISTRATOR
CITY SECRETARY
MUNICIPAL COURT JUDGE
CITY ATTORNEY
CITY OF SANGER
CITY OFFICIALS
September 30,1998
Tommy Kincaid
Jerry Jenkins
Carroll McNiell
Mike James
Glen Ervin
Alice Madden
Jack Smith
Rosalie Chavez
Danny Spindle
Louis Nichols
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 2
CITY OF SANGER
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1996
ASSETS
GENERAL
Cash $ 41,393
Receivables, Net of
Allowances for Uncollectables:
Property Taxes 68,214
Other Receivables 25,299
Services 0
Due from Other Funds 0
Inventory/Prepaid Expense 21345
Restricted Assets - Cash 124,082
Property, Plant and Equipment
Net of Accumulated Depreciation 0
Construction in Process 0
Amount to be Provided for Retirement
of General Long -Term Debt 0
TOTAL ASSETS $ 261,333
LIABILITIES
Accounts Payable $ 34,843
Accrued Expenses 0
Due to Other Funds 71020
Customer Deposits 0
Deferred Revenues 68,214
Long -Term Debt:
Combensated Absences 0
Revenue Bonds Payable 0
Certificate of Obligation Payable 0
Notes Payable 0
Capital Leases 0
TOTAL LIABILITIES 110,077
FUND EQUITY
Contributed Capital 0
Investment in General Fixed Assets 0
Retained Earning - Reserved 0
Retained Earning - Unreserved 0
Fund Balance - Reserved 124,025
Fund Balance - Unreserved 27,231
TOTAL FUND EQUITY 151,256
TOTAL LIBILITIES AND
FUND EQUITY
ENTERPRISE
$ 4791944
0
8,164
5291185
7,020
1001094
1,018,720
4,195,625
7431909
0
$ 71082,661
317,471
72,943
0
99,590
0
19,809
2,900,000
0
325,000
65,791
3,800,604
442,674
0
3131924
2,5251459
0
0
3,282057,
$ 261,333 $ 7,082,661
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3
0
........................... .. . ......... . ..
GENERAL GENERAL LONG -
FIXED ASSETS TERM DEBT
C�
57
memorandum only)
1998 1997
$ 521,337 $ 287,688
0 0 68,214 60,607
0 0 33,463 27,805
0 0 529,185 383,766
0 0 7,020 124,825
0 0 102,439 1291551
0 0 11142,802 11616,909
2,536,808
0
0
0
0 1,834,320
$ 215361808 $ 11834,320
6,732,433
7431909
1,834,320
$ 11,715,122
0 0 72,943
7,020
0 0 99,590
0 0 68,214
0 351000 54,809
0 0 21900,000
0 1,625,000 1,625,000
0 0 3251000
0 174,320 240,111
0 11834,320 51745,001
0 0 442,674
2,536,808 0 2,536,808
0 0 313,924
0 0 21525,459
0 0 124,025
0 0 27,231
21536,808 0 51970,121
6,136,778
201,602
1,922,337
$ 101891,868
404,328
79,618
0
81,881
60,607
51,065
3,025,000
1,725,000
0
_ 172,727
516001226
442,674
2,378,632
377,718
1,9491511
1151007
28,100
5,291,642
$ 2,536,808 $ 1,834,320 $ 11,715,122 $ 10,891,868
It
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3
I`
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1998
REVENUES
Property Taxes $
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
1998
425,761
3441181
8,402
101,147
279,192
77,325
4,651
18,489
2,022
1,261,170
438,325
4241147
107,937
25,362
2351077
1581176
146,070
119,747
1,654,841
(393,671)
53,053
348,767
401,820
8,149
'rC�il�l
$ 151,256
1997
$ 406,208
296,516
8,125
31,864
293,938
349,695
11,134
43,037
23,240
1,463,757
462,911
399,425
2421165
3331688
1171918
55,366
128,867
127,170
11867,510
(403,753)
0
3251370
325,370
(78,383)
221,490
$ 1431107
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 4
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -GENERAL FUND
For the Year Ended September 30, 1998
REVENUES I BUDGE I ACTUAL I VARIANCE
Property Taxes $ 408,862 $ 425,761 $ 161899
Nonproperty Taxes 251,650 344,181 922531
Penalties and Interest on
Deliquent Taxes 81000 8,402 402
License and Permits 291000 25,102 (31898)
Fees and Services 2951300 3557237 591937
Grants and Intergovernmental 34,600 77,325 42,725
Interest Income 11500 41651 31151
Miscellaneous Income 50,000 187489 (31,511)
Donations 0 21022 21022
TOTAL REVENUES 11078,912 11261,170 1821258
EXPENDITURES
General Government 4261918 438,325 (11,407)
Public Safety 416,783 424,147 (71364)
Highways and Streets 108,000 PI07,937 63
Health and Welfare 251800 251362 438
Culture and Recreation 254,604 2351077 191527
Capital Outlay 1191950 158,176 (38,226)
Debt Service:
Principal 170,318 146,070 24,248
Interest 1181997 _ 119,747 (750)
TOTAL EXPENDITURES 11641,370 11654,841 (13,471)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (562,458) (393,671) 168,787
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 36,750 53,053 16,303
Transfers In 538,037 348,767 (189,270)
TOTAL OTHER FINANCING
SOURCES (USES) 574,787 401,820 (172,967)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 12,329 8,149 $ (4,180)
FUND BALANCE -BEGINNING 143,107
FUND BALANCE - ENDING $ 151,256
SEE P,CCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 5
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND
For the Year Ended September 30,1998
OPERATING REVENUES
Charges and Fees
OPERATING EXPENSES
Personnel Services
Purchase of Services
Materials and Supplies
Depreciation
Franchise Fees
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES)
Interest Income
Debt Service Interest, Fees & Discounts
Transfers Out
TOTAL NONOPERATING REVENUES
(EXPENSES)
f�]��P►_mi�il
RETAINED EARNINGS -BEGINNING
RETAINED EARNINGS -ENDING
1998
524,132
21019,451
79,802
3191900
83,694
1997
506,671
11699,137
71,466
2861995
72,091
3,026,979 2,636,360
950,612
49,808
(139,499)
(348,767)
816.012
68,372
(140,815)
(325,370)
(438,458) (397,813)
2,327,
229
$ 2,839,383
418,199
1.909.030
$ 2,327,229
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 6
CITY OF SANGER
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYP
For the Year Ended September 30, 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers
Cash Payments to Suppliers for Goods
and Services
Cash Payments for Employees Services
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets
Additions to Long -Term Debt
Principal Paid on Bonds and Notes
Interest Paid on Bonds and Notes
CDBG Grant Funds Received
Cash Transferred to Other Funds
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments
NET INCREASE (DECREASE) IN CASH
CASH -BEGINNING OF YEAR
CASH -END OF YEAR
Operating Income
3,849,882
(2,126,846)
(525,388)
1,197,648
(1,254,898)
402,184
(141,783)
(141,863)
0
(355,787)
(1,492,147)
48,636
(245,863)
1,744,527
$ 1,498,664
1997
$ 3,436,783
(1,759,205)
(509,553)
11168,025
(659,656)
0
(118,099)
(138,543)
192,700
(325,370)
,048,968)
90,176
209,233
1,535,294
$ 1,744,527
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
(Increase) Decrease in Receivables
(Increase) Decrease in Inventory/Prepaid Expense
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Customer Deposits
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$ 950,612
319,900
(145,419)
29,457
24,977
412
17,709
$ 1,197,648
$ 816,012
286,995
(15,906)
57,076
25,091
(1,560)
317
$ 1,168,025
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 19.98
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -
The City of Sanger operates under a Council -Mayor
government, following the laws of a General Law City as
the State of Texas. The City provides the following
public safety police, fire and ambulance, parks,
sanitation, a public library , senior center, community
general administrative services along with water,
electrical services,
form of
def ined by
services:
streets,
center and
sewer and
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governments. The following
is a summary of the more significant policies:
1. REPORTING ENTITY:
The City, for financial reporting purposes, includes all of the
funds and account groups relevant to the City of Sanger. The
financial statements presented herein do not include agencies which
have been formed under applicable state laws or separate and
distinct units of government apart from the City of Sanger.
There are no separately administered organizations that are
controlled or dependent on the City.
2. FUND ACCOUNTING:
The accounts of the City are organized on the basis of funds or
account groups, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for
by providing a separate set of self -balancing accounts which are
comprised of each fund's assets, liabilities, fund equity, revenues
and expenditures or expenses, as appropriate. Governmental
resources are allocated to and for individual funds based upon the
purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped,
in the financial statements in this report, into two generic fund
types and two broad fund categories as follows:
GOVERNMENTAL FUND TYPES
General Fund
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
PROPRIETARY FUND TYPES
Enterprise Funds
Enterprise funds are used to account for operations (a) that are
financed and operated in a manor similar to private business
enterprises - where the intent of the governing body is that costs
(expenses, including depreciation) of providing goods or services
to the general public on a continuing basis be financed or
recovered primarily through user charges or (b) where the governing
body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or
other purposes.
3. PROPERTY, PLANT AND EQUIPMENT AND LONG-TERM LIABILITIES:
The accounting and reporting treatment applied to property plant
and equipment and long-term liabilities associated with a fund are
determined by its measurement focus. All governmental fund types
are accounted for on a "financial flow" measurement focus. This
means that only current assets and current liabilities are
generally included on their balance sheets. Their reported fund
balance is considered a measure of "available= spendable resources".
Governmental fund operating statements present increases (revenue
and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said
to present a summary of sources and uses of "available spendable
resources" during a period.
Plant, property and equipment used in governmental fund type
operations are accounted for in the General Fixed Assets Account
Group, rather than in governmental funds. No depreciation has been
provided on such property, plant and equipment.
All property, plant and equipment are valued at historical cost or
estimated historical cost if actual cost is not available. Donated
property, plant and equipment are valued at their estimated fair
value on the date donated.
Public domain "infrastructure" general fixed as.sets consisting of
certain improvements other than buildings, such as roads,
sidewalks, and bridges are not capitalized.
Long-term liabilities expected to be financed from governmental
fund types are accounted for in the General Long -Term Debt Account
Group, not in the governmental funds.
The two account groups are not "funds". They are concerned only
with the measurement of financial position. They are not involved
with measurement of results of operations.
Page - 9
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
Special reporting treatments are applied to governmental fund
prepaid expenses to indicate that they do not represent "available
spendable resources", even though they are a component of net
current assets. Such amounts are generally offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure
recognition for governmental fund types is limited to exclude
amounts represented by non -current liabilities. Since they do not
affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the
General Long -Term Debt Account Group.
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all
assets and liabilities (whether current or noncurrent) associated
with their activity are included on their balance sheets. Their
report fund equity (net total assets) is segregated into
contributed capital and retained earnings components.
Depreciation is provided in the proprietary funds in amounts
sufficient to relate the cost of the depreciable assets, to
operations over their estimated service lives on the straight-line
basis. The service lives by type are as follows:
Electric System 20 to 50 years
Water and sewer system 10 to 50 years
Furniture and Equipment 3 to 10 years
4. BASIS OF ACCOUNTING:
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of
the measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified
accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Gross
receipts and sales taxes are considered "measurable" when in the
hands of intermediary collecting governments and are recognized as
revenues at that time. All major revenues are susceptible to
accrual.
Expenditures are generally recognized under the modified basis of
''} accounting when the related fund liability is incurred. Exceptions
to this general rule include accumulated unpaid vacation and sick
time which are not accrued and principal and interest on general
long-term debt which is recognized when due.
Page - 10
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned,
and their expenses are recognized when they are incurred.
5. BUDGETS AND BUDGETARY ACCOUNTING:
The City follows these procedures in establishing the budgetary
data reflected in the financial statements:
A: Prior to July 1, the City Administrator submits to the City
Council a proposed operating budget for the fiscal year commencing
the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
B: Public hearings are conducted to obtain taxpayer comments.
C: Prior to October 1, the budget is legally enacted through the
passage of an ordinance.
D: The City Manager is authorized to transfer budgeted amounts
between departments within any fund, any revisions that alter the
total expenditures of any fund must be approved by the City
Council.
E: Budgets for the General and Proprietary Funds are adopted on a
basis consistent with generally accepted accounting principles
(GAAP).
F: Unused appropriations for all of the above annually budgeted
funds lapse at the end of the fiscal year.
At year-end the City's cash accounts totaled $1,664,140 of which
$1,664,040 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $112,784 was
covered by federal depository insurance and the remaining
$1,551,256 was covered by collateral held by the pledging Bank's
agent in the name of the City. There were no uncollateralized cash
accounts.
The securities pledged by the City's depository institution are as
follows:
SECURITY PAR FMV
TREASURY NOTE 21300,000 21448,063
7. CAPITALIZED INTEREST:
The City capitalizes construction period interest when applicable.
$44,046 of interest expense related to the construction of a new
sewer plant was capitalized during the current fiscal year.
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
8: INVENTORIES:
Inventories of the Enterprise Fund are valued at the lower of cost
(first -in, first -out) or market.
9. ACCUMULATED COMPENSATED ABSENCES:
It is the City's policy to permit employees to accumulate a limited
amount of earned but unused vacation and sick time, which will be
paid to employees upon separation from the City's service. In
governmental funds, the cost of vacation and sick leave is
recognized when paid. A long-term liability of $35,000 of accrued
vacation and sick leave has been recorded in the General Long -Term
Debt Account Group, representing the City's commitment to fund such
costs from future operations. Proprietary funds accrue vacation
leave in the period they are earned.
10. REVENUE RECOGNITION - PROPERTY TAXES:
Property taxes attach as an enforceable lien on property as of
January 1. Taxes are levied on October 1 and are due and payable
at that time. All unpaid taxed levied October 1 become delinquent
February 1 of the following year.
Property tax revenues are recognized when they become available.
Delinquent taxes are considered fully collectable and, therefore,
no allowance for doubtful taxes is provided.
11. ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS:
Allowance for uncollectable accounts receivable in the Proprietary
Fund at September 30, 1998 is $471725.
12: GRANT ACCOUNTING:
All grant funds received by the general fund are included as
intergovernmental revenues in the statements of revenues and
expenditures. All grant funds received by the proprietary fund
that are to be used for capital projects are recorded as
contributed capital in the balance sheet while grant funds received
for operating purposes are included in the proprietary fund
statement of revenues and expenses as other operating revenues.
There were no material grant funds received by the City during the
fiscal year ended September 30, 1998.
13. COMPARATIVE DATA:
Comparative data for the prior year have been presented in the
accompanying statements in order to provide an understanding of
it
Page - 12
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
changes in the City's financial position and operations. However,
complete comparative data (i.e., presentation of prior year totals
by fund type in each of the statements) have not been presented
since their inclusion would make the statements unduly complex and
difficult to read.
14. TOTAL COLUMNS ON COMBINED STATEMENTS:
Total columns on the Combined Statements are captioned "memorandum
only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial
position, results of operations, or changes in financial position
in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund
elimination's have not been made in the aggregation of this data.
NOTE B: RETIREMENT PLANS:
Firemen's Pension Fund:
The City's firemen are covered
contributory plan is operated
and Retirement Funds. The
September 30, 1998 was $3,728,
Employee Reti:ement Plan:
by the firemen's pension plan. This
as part of the State Firemen's Relief
pension expense for the year ended
The City belongs to the Texas Municipal Retirement System, a
retirement and disability pension system foz municipal employees in
the State of Texas. The plan is administered in accordance with
the Texas Municipal Retirement System Act and is governed by a
Board of Trustees appointed by the governor of the State of Texas.
The City has elected to have monthly contributions from the City's
employees in the amount of 5% of their gross earnings with the City
providing a monthly contribution of 4.07% of the monthly gross
earnings. Employee contributions are tax deferred and not subject
to federal income tax until they are withdrawn. The City's
contributions for the fiscal year totaled $35,004,
NOTE C: LONG-TERM DEBT:
The following is a summary of the City's Long -Term Debt. The
future debt requirements are detailed iri schedules included in
these financial statements.
General Long Term Debt:
Certificates of Obligation, Series 1994 - Original amount of
$1,900,000; principal paid annually starting September 1, 1995;
Interest paid semi-annually on March 1, and September 1, at rates
ranging from 5.60 to 7.50%. The Bonds were issued for street
improvements and library building construction and are to be repaid
Page - 13
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
from property tax revenues and are further secured by a pledge of
Enterprise Fund Net Revenues.
The Certificates of Obligation require that certain reserve
accounts be maintained.
Capital Lease - Midwest Bankers Group - Original balance of
$172,179. The lease requires a down payment of $13,150 (paid in
February 1995) plus nine annual rental payments of $24,105
beginning in February 1996. The City has a purchase option during
the term of the lease to purchase the equipment at a designated
early term/purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase a new pumper fire truck. The truck is
security for the lease.
Capital Lease - Motorola Communications and Electronic, Inc. -
Original balance of $33,654. The lease requires five annual rental
payments of $8,219 beginning in August 1995, The City has a
purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase radio communication equipment.
The equipment is security for the lease.
Capital Lease - Banc One Leasing Corporation - Original balance of
$19,200. The lease requires forty eight monthly rental payments of
$468, with twelve payments remaining at September 30, 1998. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase a brush chipper for the
street department. The chipper is security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
$141300. The lease requires forty eight monthly rental payments of
$338, with thirty seven payments remaining at September 30, 1998.
The City has a purchase option during the term of the lease to
purchase the equipment at a designated purchase option price. The
City intends to exercise this option at the end of the lease term.
The proceeds of the lease were used to purchase a Asphalt Roller.
The equipment is security for the lease.
Capital Lease - Lubbock National Bank - Original balance of
$36,753. The lease requires sixty monthly rental payments of $734,
with fifty one payments remaining at September 30, 1998. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase computer hardware and software.
The equipment is security for the lease.
Page - 14
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
Capital Lease - Kustom Signal - Original balance of $2,000. The
Lease requires one annual rental payments of $2,000 in March 1999.
The proceeds of the lease were used to purchase a police
surveillance system. The system is security for the lease.
Proprietary Fund:
Texas Utility System Refunding and Improvement Revenue Bonds,
Series 1991 - Original amount of $2,230,000, principal paid
annually on May 15, Interest paid semi-annually on May 15 and
November 15, at rates ranging from 4.70% to 7.15%. The bonds were
issued to provide funds sufficient to refund all of the City's
outstanding Series 1976, 1977, and 1985 Bonds plus an additional
$800,000 for improvements to the City's Waterworks System. The
refunding of the Bonds provided for lower future debt service
requirements due to reduced interest rates. The Bonds are to be
repaid from and are secured by the Enterprise Fund Net Revenues.
Texas Utility System Revenue Bonds, Series 1996 - Original amount
f $1,0600,000, princi opal paid annually on May 15; Interest paid
semi-annually on May 15 and November 15, at rates ranging from 4.2%
to 4.75%. The bonds were issued to provide funds for improving and
extending the City's Sewer System. The Bonds are to be repaid from
and are secured by the Enterprise Fund Net Revenues.
The Bond Obligations require that certain dish reserve accounts be
maintained.
Note Payable - Guarantee National Bank - Original amount of
$325,000, the note is due on demand, if no demand is made then the
note requires five annual principal payments of $65,000 beginning
in December 1998. The note bears interest at 6.5% with annual
interest payments also due each December until the note is paid in
full. The note proceeds were used to construct a ground storage
tank and to paint one of the City's water towers.
Capital Lease - Ford Motor Credit Company - Original balance of
$40,432. The lease requires sixty monthly rental payments of $779,
with forty nine payments remaining at September 30, 1998. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase a New Holland Backhoe.
The equipment is security for the lease.
National
Capital Lease - Lubbock
$36,752. The lease requires sixty
with fifty one payments remaining
has a purchase option during the t
equipment at a designated purchase
to exercise this option at the end
ter
Bank Original balance of
-
monthly rental payments of $734,
at September 30, 1998. The City
of the lease to purchase the
option price. The City intends
o
f the lease term. The proceeds
of the lease were used to purchase c
omputer naraware ana sorzware.
The equipment is security for the lease.
Page - 15
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
NOTE D: DEBT SERVICE REQUIREMENTS NEXT FIVE YEARS:
Debt service requirements for each of the next five years are as
follows:
General Fund:
Proprietary Fund:
Year Principal Interest Principal Interest
1999 $146,466 $109,891 $ 474,182 $ 181,444
2000 138,241 99,408 1551155 168,034
2001 150,202 89,198 166,197 159,327
2002 153,480 80,487 172,309 149,921
2003 158,342 71,622 172,948 140,275
Future 110052,589 2280040 2,150,000 750F583
Total $1,799,320 $ 678,646 $33 290,791 $105491F584
NOTE E: PURCHASE COMMITMENT:
On June 5, 1995 the City entered into a eight year contract with
the Brazoz Electric Power Cooperative, Inc., whereby the City
purchases electric power and energy at agreed upon rates, subject
to a fuel adjustment charge and power adjustment on demand and
energy charges. Power purchased for the current fiscal year totaled
$1,596,920.
NOTE F: INTERFUND RECEIVABLE AND PAYABLE:
At September 30, 1998 the General Fund owed the Proprietary Fund
$7,020. The receivable and payable result from one fund paying an
expenditure for another fund.
NOTE G: YEAR 2000 COMPLIANCE:
The Year 2000 compliance issues primarily relate to the City's
computer systems as they are used for the processing of utility
billing and collection transactions, municipal court, accounts
payable, payroll and general ledger transactions. At September 30,
1998 the City had completed the assessment and remediation stages.
The City also has potential year 2000 compliance issues related to
the services its vendors provide the City, primarily with its
utility vendor and with Denton County related to the assessing and
collecting of property taxes. The City has not received any
information from its vendors that would indicate they will have a
year 2000 problem and be unable to provide the City with services.
Page - 16
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1996
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
ADMINI-
TRATION
$ 4251761 $
145,779
8,402
20,684
4,633
0
4,651
18,489
0
628.399
154,357
0
0
25,362
0
45,364
4,693
1,910
POLICE I FIRE]
0
0
76,045
0
0
0
0
76,045
0
3531008
0
0
0
37,579
7,172
1,047
0
0
0
61,001
0
0
0
61.001
0
71,139
0
0
0
17,927
22,112
8,574
231,686 398,806 119,752
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 396,713
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases 36,753
Transfers In 348,767
TOTAL OTHER FINANCING
SOURCES (USES) 385,520
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITU $ 782,233
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
(322,761)
2,000
(58,751)
0
0
0
SANITA-
TION
0
4,418
259,544
0
0
0
0
263,962
283,968
0
0
0
0
0
0
0
2831968
(20,006)
0
0
0
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -17
COMMUNITY'
SWIMMING & SENIOR
STREETS LIBRARY PARKS POOL CENTERS TOTAL
$ 0 $ 0 $ 0 $ 0 $ 0 $ 425,761
198,402 0 0 0 0 344,181
0 0 0 0 0 8,402
0 0 0 0 0 251102
0 21579 0 8,908 31528 355,237
0 161324 0 0 0 77,325
0 0 0 0 0 41651
0 0 0 0 0 18,489
0 0 2,022 0 0 21022
198,402 181903 21022 81908 31528 11261,170
0 0 0 0 0 438,325
0 0 0 0 0 424,147
107,937 0 0 0 0 107,937
0 0 0 0 0 25,362
0 601534 140,186 27,645 61712 235,077
491889 31032 4,385 0 0 158,176
94,093 18,000 0 0 0 146,070
88,989 19,227 0 0 0 119,747
340,908 100,793 144,571 27,645 61712 1,654,841
(142,506) (81,890) (142,549) (18,737) (31184) (393,671)
14,300 0 0 0 53,053
0 0 0 0 0 348,767
14,300 0 0 0 0 401,820
$ (128,206) $ (81,890) $ (1421549) $ (181737) $ 3,184 81149
143,107
$ 151,256
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -17
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -GENERAL FUND
For the Year Ended September 30, 1998
ADMINISTRATION
BUDGET ACTUAL VARIANCE
$ 408,862
111,650
8,000
21,000
0
0
1,500
50,000
0
601,012
$ 425,761
145,779
8,402
20,684
4,633
0
4,651
18,489
0
6281399
EXPENDITURES
General Government 150,563 154,357
Public Safety 0 0
Highways and Streets 0 0
Health and Welfare 251800 25,362
Culture and Recreation 0 0
Capital Outlay 42,750 45,364
Debt Service:
Principal 41740 41693
Interest 11910 11910
TOTAL EXPENDITURES 225,763 231,686
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 375,249 396,713
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 36,750 36,753
Transfers In 538,037 348,767
TOTAL OTHER FINANCING
SOURCES (USES) 574,787 3851520
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 9501036 $ 782,233
16,899
34,129
402
(316)
4,633
0
3,151
(31,511)
0
27,387
(3,794)
0
438
0
(2,614)
470
(5,923)
21,464
3
(189,270)
(189,267)
$ (167,803)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1998
POLICE
BUDGET (— ACTUAL j I VARIANCE
0
0
25,000
0
0
0
0
25,000
0
0
76,045
0
0
0
0
76,045
EXPENDITURES
General Government 0 0
Public Safety 348,283 353,008
Highways and Streets 0 0
Health and Welfare 0 0
Culture and Recreation 0 0
Capital Outlay 21,600 37,579
Debt Service:
Principal 71753 71172
Interest 11047 11047
TOTAL EXPENDITURES 3781683 3981806
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (353,683) (322,761)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 0 2,000
Transfers In 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 21000
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (353,683) $ (320,761)
$ 0
0
0
0
51,015
0
0
0
0
51,045
0
(4,725)
0
0
0
(15,979)
581
0
(20,123)
30,922
$ 32,922
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30,1998
FIRE
REVENUES BUDGET ACTUAL VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 0 0 0
Penalties and Interest on
Delinquent Taxes 0 0 0
License and Permits 0 0 0
Fees and Services 0 0 0
Grants and Intergovernmental 20,000 61,001 41,001
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 201000 61,001 41,001
EXPENDITURES
General Government 0 0 0
Public Safety 681500 71,139 (21639)
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 291600 17,927 11,673
Debt Service:
Principal 231926 22,112 11814
Interest 81574 81574 0
TOTAL EXPENDITURES 130,600 119,752 10,848
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (110,600) (58,751) 51,849
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (110,600) $ (58,751) $ 51,849
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year knuvd September 30, 1998
_SANITATION
REVENUES I BUDGET I I ACTUAL I VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 0 0 0
Penalties and Interest on
Delinquent Taxes 0 0 0
License and Permits 81000 41418 (3,582)
Fees and Services 259,300 259,544 244
Grants and Intergovernmental 0 0 0
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 267,300 263,962 (31338)
EXPENDITURES
General Government 276,355 283,968 (7,613)
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 0 0 0
Debt Service:
Principal 0 0 0
Interest _ 0 0 0
TOTAL EXPENDITURES 2761355 283,968 (71613)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (91055) (20,006) (10,951)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 0 0 0
Transfers In 0 0 0
it
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (91055) $ (20,006) $ (10,951)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
i
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
j EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
For rile Year Ended September 30, 1998
STREETS
BUDGET ACTUAL VARIANCE
$ 0 $ 0 $
140,000 1981402
0
0
0
0
0
0
0
0
0
0
0
0
0
0
140,000
0
0
1081000
0
0
201000
374
115,899
88,
332,273
(192,273)
0
0
n
$ (192,273)
198,402
0
0
1071937
0
0
49,889
94,093
88,989
3401908
(142,506)
14,300
$ (128,206)
0
58,402
58,402
0
0
63
0
0
(29,889)
21,806
(615)
(81635)
49,767
14,300
0
14,300
$ 64,067
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30,1998
E
BUDGET j [ ACTUAL I VARIANCE
0
0
0
14,600
0
0
0
14.600
0
0
2,579
16,324
0
0
0
18,903
0
0
2,579
1,724
0
0
0
4,303
EXPENDITURES
General Government 0 0 0
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 63,239 60,534 2,705
Capital Outlay 31000 31032 (32)
Debt Service:
Principal 18,000 181000 0
Interest 191092 191227 (135)
TOTAL EXPENDITURES 1031331 100,793 21538
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (88,731) (81,890) 6,841
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (88,731) $ (81,890) $ 61841
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
1�1�r�1�11
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
For the Year Ended September 30, 1998
PARKS
BUDGET ACTUAL VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 21022 21022
0 21022 21022
0
0
0
0
1491351
3,000
0
0
1521351
(152,351)
0
$ (152,351)
0 0
0 0
0 0
0 0
140,186 91165
4,385 (11385)
0 0
0 0
144,571 7,780
(142,549)
0
0
$ (142,549)
9,802
0
0
0
$ 9,802
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
For The Year Ended September 30, 1998
SWIMMING POOL
(—BUDGET I L ACTUAL I I VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 0 0
11,000 81908 (2,092)
0 0 0
0 0 0
0 0 0
0 0 0
111000 81908 (2,092)
0
0
0
0
31,864
0
0
0
31.864
(20,864)
0
0
0
0
0
0
27,645
0
0
0
274645
(18,737)
0
0
0
0
0
0
4,219
0
0
0
4,219
2,127
0
0
0
$ 2,127
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1998
0
COMMUNITY & SENIOR CENTERS
BUDGET ACTUAL VARIANCE
0
0
0
0
0
0
0
0
EXPENDITURES
General Government 0
Public Safety 0
Highways and Streets 0
Health and Welfare 0
Culture and Recreation 10,150
Capital Outlay 0
Debt Service:
Principal 0
Interest 0
TOTAL EXPENDITURES 10,150
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (10,150)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases 0
Transfers In 0
TOTAL OTHER FINANCING
SOURCES (USES) 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (10,150)
0
0
3,528
0
0
0
0
3,528
0
0
0
0
6,712
0
0
0
6,712
0
0
0
0
3,528
0
0
0
0
3,528
0
0
0
3,438
0
0
0
3,438
6,966
u
$ 6,966
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital leases
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
For the Year Ended September 30, 1998
TOTAL
BUDGET ACTUAL VARIANCE
$ 4081862 $ 425,761 $
251,650 344,181
8,000 8,402
291000 25,102
2951300 355,237
341600 77,325
1,500 41651
501000 18,489
0 2,022
1,078,912
426,918
4161783
1081000
25,800
2541604
1191950
170,318
118,997
11641,370
(562,458)
36,750
538,037
574,787
$
12,329
1,261,170
438,325
4241147
1071937
25,362
2351077
158,176
146,070
119,747
1,654,841
(393,671)
53,053
348,767
8,149
143,107
$ 151,256
16,899
92,531
402
(31898)
59,937
42,725
3,151
(31,511)
2,022
182,258
(11,407)
(7,364)
63
438
19,527
(38,226)
24,248
(750)
(13,471)
168,787
16,303
(189,270)
(172,967)
$ (4,180)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -18
COST
Land
Buildings & Improvements
Equipment
Fire Equipment
Swimming Pool
INVESTMENT IN GENERAL
FIXED ASSETS
CITY OF SANGER
STATEMENT OF GENERAL FIXED ASSETS
For the Year Ending September 30, 1998
71,870
1,080,071
817,968
344,752
222,147
$ 2,536,808
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -19
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
COST
Land
Buildings & Improvements
Equipment
Fire Equipment
Swimming Pool
INVESTMENT IN GENERAL
FIXED ASSETS
For the Year Ending September 30, 1998
BEGINNING ADDITIONS DELETIONS ENDING
$ 71,870 $ 0 $ 0 $ 71,870
1,075,686 41385 0 11080,071
682,104 1351864 0 817,968
3261825 17,927 0 344,752
222,147 0 0 222,147
$ 2,378,632 $ 158,176 $
0 $ 2,536,808
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
7Se3��i;
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30,1998
BEGINNINUI JAULJIIIUNS DELETIONS ENDING
COST
Water System $ 2,115,023 $ 438,883 $ 0 $ 2,553,906
Sewer System 21148,577 61334 0 21154,911
Electric System 21240,164 1741362 0 21414,526
Equipment 495,016 74,474 0 569,490
Furniture & Office Equipment 138,097 46,551 0 184,648
Building Improvements 17,663 16,770 0 34,433
Easement 11500 0 0 11500
TOTAL COST $ 7,156,040 $ 757,374 $ 0 $ 7,913,414
ACCUMULATED DEPRECIATION
Water System $ 843,406 $ 80,496 $ 0 $ 923,902
Sewer System 809,533 64,541 0 874,074
Electric System 11192,001 1201347 0 11312,348
Equipment 412,706 41,067 0 453,773
Furniture & Fixtures 1261829 11,231 0 138,060
Building Improvements 13,414 29218 0 15,632
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 3,397,889 $_ 319,900 $ 0 $ 3,717,789
NET PROPERTY, PLANT & EQUIPMENT $ 317581151 $ 4,195,625
SEE ACCOMPANYING NOTES TO FINANCIA! STATEMENTS PAGE - 21
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1998
BOND OBLIGATIONS
Series 1994 Certificates of Obligation $ 11625,000
CAPITAL LEASES
Lubbock National Bank $ 32,059
Ford 11,283
Midwest Bankers 1151920
Motorola 71678
Kustom Signals 21000
Bank One 51380
TOTAL CAPITAL LEASE OBLIGATIONS 174,320
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
TOTAL ACCRUED COMPENSATED ABSENCES
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT
20,000
$ 15,000
35,000
$ 1,834,320
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 1998
1BEGINNING1 REDUCTION ENDING
BOND OBLIGATIONS
Series 1994 Certificates of Obligation $ 1,725,000 $ 0 $ 100,000 $ 11625,000
j.
CAPITAL LEASES
Associates Commercial Corp. $ 42103 $ 0 $ 4,103 $ 0
G.M.A.C. 61817 0 61817 0
Midwest Bankers 1310215 0 15,295 115,920
Motorola 14,849 0 71171 7,678
'I
Bank One 10,353 0 41973 51380
Lubbock National Bank 0 36,753 41694 32,059
Ford 0 141300 31017 11,283
Kustom Signal 0 21000 0 21000
TOTAL CAPITAL LEASES $ 167,337 $ 53,053 $ 461070 $ 174,320
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay $ 15,000 $ 51000 $ 0 $ 20,000
Accrued Sick Pay 151000 0 0 151000
TOTAL ACCRUED COMPEN. ABSENCES $ 30,000 $ 51000 $ 0 $ 351000
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT $ 1,922,337 $ 58,053 $ 146,070 $ 1,834,320
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-23
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
Year Ending
September 30, PRINCIPAL
1999 $ 1051000
2000 1101000
2001 1201000
2002 1251000
2003 1351000
2004 145,000
2005 155,000
2006 1651000
2007 175,000
2008 1901000
2009 200,000
$ 116251000
Year Ending
September 30,
1999
2000
2001
2002
2003
2004
Year Ending
September 30,
1999
Year Ending
September 30,
1999
PRINCIPAL
$ 16,322
17,418
18,588
19,835
21,168
22,589
September 30, 1998
INTEREST
$ 98,565
90,690
82,440
75,720
68,657
60,963
52,625
43,635
33,900
23,400
12,000
$ 6423595
INTEREST
$ 7,783
6,687
5,518
4,271
2,938
1,517
$ 115,920 $ 28,714
PRINCIPAL INTEREST
$ 7,678 $ 542
PRINCIPAL
$ 5,380
INTEREST
$ 233
TOTAL
REQUIREMENTS
$ 2031565
200,690
202,440
200,720
2031657
2051963
207,625
208,635
2080900
213,400
212,000
$ 21267,595
TOTAL
REQUIREMENTS
$ 24,105
24,105
24,106
24,106
24,106
24,106
$ 1449634
TOTAL
REQUIREMENTS
$ 8,220
TOTAL
REQUIREMENTS
$ 5,613
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24
i
i
Year Ending
September 30,
1999
2000
2001
2002
2003
Year Ending
September 30,
1999
2000
2001
2002
Year Ending
September 30,
1999
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
PRINCIPAL
$ 6,672
7,179
7,724
8,310
2,174
$ 32,059
PRINCIPAL
$
3,414
3,644
3,890
335
$ 11,283
PRINCIPAL
$ 2,000
September 30, 1998
INTEREST
$ 2,131
1,624
1,079
493
27
$ 5,354
INTEREST
$ 637
407
161
INTEREST
;Tnta�l fond bbligat.nns and Notes Payable ; <
Year Ending
September 30,
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Pl:1P►�171�
$ 146,466
138,241
150,202
153,480
1581342
167,589
1551000
1651000
175,000
190,000
2001000
$ 1,799,320
INTEREST
$ 109,891
99,408
89,198
80,487
71,622
62,480
52,625
43,635
33,900
23,400
12,000
$ 6781646
REQUIREMENTS
$ 8,803
8,803
8,803
8,803
2,201
$ 37,413
TOTAL
EMENTS
REQUIR
$ 4,051
4,051
4,051
338
$ 12,491
TOTAL
REQUIREMENTS
$ 2,000
TOTAL
REQUIREMENTS
$ 256,357
237,649
239,400
233,967
229,964
2301069
207,625
2081635
2081900
213,400
212,000
$ 214771966
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24
II
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 1998
REVENUE BOND OBLIGATIONS
Series 1991
Series 1996
TOTAL REVENUE BONDS
NOTES PAYABLE
Guarantee National Bank
CAPITAL LEASES
Maroon Cattle Co.
Ford Motor Credit
Lubbock National Bank
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEUININHINKil LtDDITIONS EDUCTION�q' I ENDING
$ 1,985,000 $ 0 $ 90,000 $ 1,895,000
1,0401000 0 351000 11005,000
r�
0253000 $ 0 $ 125,000 $ 21900,000
0 $ 325,000 $
0 $ 325,000
0 40,432 61699 33,733
0 36,752 41694 32,058
$ 51390 $_ _77,184 $ 16,783 $ 65,791
$ 3,030,390 $ 402,184 $ 141,783 $ 3,290,791
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 25
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year Ending
September 30,
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Year Ending
September 30,
1999
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
$ 100,000
1051000
110,000
115,000
125,000
130,000
140,000
150,000
1601000
170,000
1851000
195,000
210,000
$ 11895,000
$ 35,000
35,000
40,000
40,000
45,000
45,000
45,000
50,000
50,000
55,000
60,000
60,000
65,000
70,000
70,000
75,000
80,000
85,000
$ 1,005,000
September 30, 1998
INTEREST
$ 128,830
1221830
1161372
109,498
102,138
93,950
85,240
75,720
65,370
54,170
42,186
28,958
15,014
$ 11040,276
TOTAL
REQUIREMENTS
$ 228,830
227,830
226,372
224,498
227,138
223,950
225,240
225,720
225,370
224,170
227,186
223,958
225,014
$ 21935,276
TOTAL
INTEREST REQUIREMENTS
$ 43,368
42,212
41,005
39,585
38,105
36,395
34,640
32,840
30,790
28,690
26,297
23,628
20,898
17,908
14,652
11,363
7,837
4,037
$ 494,250
PRINCIPAL INTEREST
$ 325,000 $ 5,281
$ 78,368
77,212
81,005
79,585
83,105
81,395
79,640
82,840
80,790
83,690
86,297
83,628
85,898
87,908
84,652
86,363
87,837
89,037
$ 11499,250
TOTAL
REQUIREMENTS
$ 330,281
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 26
I
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1998
� ".it:4.RQ M4T:t:+1rR E
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1999 $ 71510 $ 11834 $ 91344
2000 71976 11368 91344
2001 81473 871 91344
2002 8,999 345 91344
2003 775 4 779
$ 33,733 $ 41422 $ 38,155
' . N <>
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1999 $ 61672 $ 21131 $ 81803
2000 71179 11624 81803
2001 71724 11079 81803
2002 81310 493 81803
2003 21173 28 21201
$ 32,058 $ 5$55 $ 37,413
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1999 $ 474,182 $ 181,444 0 655,626
2000 155,155 168,034 323,189
2001 166,197 159,327 325,524
2002 172,309 1491921 322,230
2003 1721948 140,275 3131223
2004 175,000 1301345 3051345
2005 1851000 1191880 304,880
2006 200,000 1081560 308,560
2007 210,000 96,160 306,160
2008 2251000 821860 307,860
2009 245,000 68,483 313,483
2010 2551000 52,586 307,586
2011 275,000 351912 310,912
2012 70,000 17,908 87,908
2013 70,000 14,652 84,652
2014 751000 11,363 861363
2015 80,000 71837 87,837
2016 85,000 4,037 891037
$ 31290,791 $ 11549,584 $ 41840,375
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 26
SUPPLEMENTAL INFORMATION
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1998
GENERAL FUND
Police Department Funds
Library Department Funds
Park Department Fund
Fire Siren Funds
Hotel/Motel Fund
Certificate of Obligation Reserve and I & S Funds
Unspent 1994 Certificate of Obligation Funds
TOTAL GENERAL FUND
$ 205
615
4,139
13,000
42,862
40,402
22,859
1?A nR7
ENTERPRISE FUND
1991 Revenue Bond I & S Funds $
1991 Revenue Bond Reserve Funds
1996 Revenue Bond Reserve Funds
Customer Utility Deposits
Unspent1996 Revenue Bond Funds
Underground Water Storage Tank Funds
Safety and Incentive Funds
TOTAL ENTERPRISE FUND
51,288
243,694
24,845
111968
1011253
5811528
668
476
$ 1,0181720
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 27
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUND
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1998
GENERAL FUND
Police Department Fund $ 205
Library Department Funds 615
Park Departmnet Fund 4,139
Fire Siren Funds 13,000
Hotel/Motel Fund 42,862
Minimum Required Reserves, Interest and
Sinking Funds -1994 Certificate of Obligation 38,000
Unspent 1994 Bond Proceeds 22,859
Prepaid Expenses 2,345
TOTAL GENERAL FUND $ 124,025
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds - Revenue Bonds 312,780
Underground Water Storage Tank 668
Safety and Incentive 476
TOTAL ENTERPRISE FUND
313,924
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September 30,1998
AMOUNT OF _______
TYPE OF COVERAGE FROM TO COVERAGE CARRIER
Business Auto:
Liability 10/1/97 10/1/98 31000,000 Texas Municipal League
Physical Damage 10/1/97 10/1/98 Scheduled Equip, Texas Municipal League
Property Damage 10/1/97 10/1/98 Scheduled Equip. Texas Municipal League
21805,848
Workmen's Compensation 10/1/97 10/1/98 Statutory Texas Municipal League
Liability -
Law Enforcement Liability 10/1/97 10/1/98 1,000,000 Texas Municipal League
Errors & Omissions 10/1/97 10/1/98 11000,000 Texas Municipal League
General Liability 10/1/97 10/1/98 3,000,000 Texas Municipal League
Mobile Equipment 10/1/97 10/1/98 183,559 Texas Municipal League
Employee Bond 6/24/98 6/24/99 10,000 Western Surety
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 29
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 1998
WATER
CLASSIFICATION OF CUSTOMERS
Residential 1,680
Commercial, Demand & City 155
NUMBER OF CONNECTIONS
ELECTRIC
1,664
301
1,835 1,965
RESIDENTIAL
WATER RATES I & COMMERCIAL
Deposit $ 50.00
First 1,000 Gallons (minimum) $ 14.25
11000 TO 5,000 Gallons $ 1.95
51000 TO 15,000 Gallons $ 2.15
15,000 TO 30,000 Gallons $ 2.55
Over 30,000 Gallons $ 3.35
SEWER RATES RESIDENTIAL COMMERCIAL
SEWER
First 1,000 Gallons (minimum) $ 15.00 $ 21.00
Over 1,000 Gallons
Maximum $ 25.00 $ 125.00
SMALL LARGE
ELECTRIC RATES RESIDENTIAL COMMERCIAL COMMERCIAL
Deposit $ 100.00 $ 200.00 $ 200.00
Facility Charge $ 10.00/Month $ 12.50/Month $ --
Energy Charge $ .0621629/kwh $ 0676962/kwh $ .0237048/KWH
Demand Charge:
First 6 KWH (minimum) $ -- $ -- $ 53.39
Over 6KWH $ -- $ -- $ 8.29/kwh
GALLONS OF WATER METERED (APPROX.)
174,419,100
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 30
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE!
For the Year Ended September 30, 1998
1998
ADJUSTED TAX ROLL $ 431,649 $
Less: Collections and Adjustments 4151237
CURRENT YEAR TAXES RECEIVABLE -
END OF YEAR
PRIOR YEAR TAXES RECEIVABLE -
END OF YEAR
TOTAL TAXES RECEIVABLE -
END OF YEAR
Assessed Value
Tax Rate per $100
Percent of Current Taxes Collected to Billed
1997 1996
407,970 $ 379,002
392,929 363,109
16,412 15,041 15,893
51,802 451566 47,489
$ 68,214 $ 60,607 $ 63,382
$ 911334,817 $ 84,764,092 $ 78,240,705
$ OA726 $ 0.4813 $ 0.4837
96.20% 96.31 % 95081 %
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 31
William C. Spore & Company, PC.
Certified Public Accountants
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED UPON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENTAL A UDITING STANDARDS
To the City Council
City of Sanger, Texas
We have audited the financial statements of City of Sanger as of and for the year ended September 30,
1998, and have issued our report thereon dated March 12, 1999. We conducted our audit in
accordance with generally accepted auditing standards and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Com lip ance
As part of obtaining reasonable assurance about whether City of Sanger's financial statements are free of
material misstatement, we performed tests of its compliance with certain provision of laws, regulations,
contracts and grants, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards,
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Sanger's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and not to provide assurance on the internal control over financial reporting,
Our consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would
be material in relation to the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to be
material weaknesses. However, we noted other matters involving the internal control over financial
reporting that we have reported to management of the City of Sanger in a separate letter dated
March 12, 1999.
This report is intended for the information of the management ,Honorable Mayor and City Council of
the City of Sanger, Texas. However, this report is a matter of public record and its distribution is not
limited.
William C. Spore &Company, P.C.
March 12, 1999
i
1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725
William C. Spore & Company, PC.
Certified Public Accountants
MANAGEMENT LETTER
To the Honorable Mayor and City Council,
City of Sanger, Texas
In planning and performing our audit of the general purpose financial statements of the City of
Sanger, Texas, for the year ended September 30, 1998, we considered its internal control structure in
order to determine our auditing procedures for the purpose of expressing our opinion on the financial
statements and not to provide assurance on the internal control structure. However, as a result of our
audit we noted certain immaterial matters involving the internal control structure and its operation
that we wish to bring to your attention.
(1) A perpetual inventory system should be implemented for the Electric Department to track
additions to and removals from their inventory. This perpetual system could be matched to the
physical inventory for accuracy and be used to determine the amount and value of parts on hand.
(2) A system needs to be developed to reconcile the general ledger accounts on a timely basis.
All balance sheets accounts should be reconciled on a monthly basis and adjusted if needed. Revenue
and expenditure accounts should be matched to budget amounts and discrepancies investigated.
These reconcilement's need to be done at least monthly to verify the accuracy of the general ledger.
Checklists should be developed to assist in the closing of the month end books.
A material weakness is a reportable condition in which the design o�operation of one or more of the
internal control structure elem(;nts does not reduce to relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal course of
performing their assigned duties.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses as defined above. However, none of the
matters described above is believed to be a material weakness.
This report is intended solely for the information and use of the management, Mayor and City Council
of the City of Sanger, Texas.
Thank you,
William C. Spore &Company, P.C.
Certified Public Accountant
March 12, 1999
1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725