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2000 Annual Financial Report40 f: ,GJAIAL copy CITY OF BANGER September 30, 2000 TABLE OF CONTENTS PAGE # AUDITOR'S REPORT I CITY OFFICIALS 2 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS 3 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES 4 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES - BUDGET AND ACTUAL 5 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND 6 COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND 7 NOTES TO FINANCIAL STATEMENTS 8-20 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATE�LIENTS COMBII�]ING STATEMENT OF REVENUES &EXPENDITURES - GENERAL FUND 21 COMBINING STATEMENT OF REVENUES & EXPENDITURES - SPECIAL REVENUE FUND 22 COMBINING STATEMENT OF REVENUES & EXPENDITURES - GENERAL FUND - BUDGET AND ACTUAL 23 COMBINING STATEMENT OF REVENUES & EXPENDITURES - SPECIAL REVENUE FUND - BUDGET AND ACTUAL 24 STATEMENT OF GENERAL FIXED ASSETS 25 SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 26 SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 27 STATEMENT OF GENERAL LONG-TERM DEBT 28 SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 29 SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 30 SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 31 SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 32 SUPPLEMENTAL INFORMATION SCHEDULE OF RESTRICTED ASSETS 33 SCHEDULE OF RESERVED FUND EQUITIES 34 SCHEDULE OF INSURANCE COVERAGE 35 ENTERPRISE FUND # OF CUSTOMERS AND RATES 36 ANALYSIS OF PROPERTY TAXES 37 William C. Spore, P.C. Certified Public Accountants Independent Auditor's Report 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, 2000, as listed in the table of contents. These general-purpose financial statements are the responsibility of the City of ;anger's management. Our responsibility is to express an opinion on these 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 Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 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, 2000, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 16, 2001 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 of 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 the general purpose financial statements t en as a whole. G r jVAax- William C. Spore, P.C. February 16, 2001 60 Suite 102 # Gra evine TX 76051 # 817/421-6619 3950 Hi hwa 3 p , S y CITY OF SANGER CITY OFFICIALS September 30, 2000 ELECTED OFFICIALS MAYOR MAYOR PRO TEM COUNCILMEMBERS APPOINTED OFFICIALS CITY MANAGER CITY SECRETARY/ASSISTANT CITY MANAGER MUNICIPAL COURT JUDGE CITY ATTORNEY Tommy Kincaid Andy Garza Glenn Ervin Joe Higgs Carroll McNiell Craig Waggoner Jack Smith Rosalie Chavez Danny Spindle Nichols, Jackson, Dillard, Hager & Smith SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 2 CITY OF SANGER COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS ASSETS Cash Receivables, Net of Allowances for Uncollectibles: Property Taxes Other Receivables Services Due from Other Funds Inventory/Prepaid Expense Restricted Assets - Cash Property, Plant and Equipment Net of Accumulated Depreciation Construction in Process Amount to be Provided for Retirement of General Long -Term Debt TOTAL ASSETS LIABILITIES Accounts Payable Accrued Expenses Due to Other Funds Customer Deposits Deferred Revenues Long -Term Debt: Compensated Absences Revenue Bonds Payable Certificate of Obligation Payable Notes Payable Capital Leases TOTAL LIABILITIES FUND EQUITY Contributed Capital Investment in General Fixed Assets Retained Earning - Reserved Retained Earning - Unreserved Fund Balance - Reserved Fund Balance - Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY September 30, 2000 GOVERNMENTAL FUNDS TYPE SPECIAL GENERAL REVENUE FUND FUND $ 48,601 $ 0 70,208 0 41,024 20,274 0 0 11,697 0 0 0 47,670 297,379 0 0 0 0 0 0 $ 2191200 317,653 $ 55,950 0 0 0 0 0 0 70,208 0 0 0 0 0 0 0 0 0 0 0 126,158 0 0 0 0 0 0 0 0 0 47,192 201274 451850 297,379 93,042 317,653 $ 219,200 317,653 PROPRIETARYI FUND TYPES UTILITY FUNDS $ 335,887 0 7,999 511,371 0 437,414 464,346 5,667,578 461913 0 $ 7,472,308 530,996 68,554 11,697 103,804 0 35,162 2,760,000 0 421,035 69,471 41000,719 442,674 0 306$315 2,7221600 0 0 3,471,589 $ 7,472,308 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3 ACCOUNT GROUPS TOTALS GENERAL GENERAL LONG- (memorandum only) FIXED ASSETS TERM DEBT 2000 1999 $ 0 $ 0 $ 384,488 $ 3587206 0 0 701208 69,386 0 0 691297 54,421 0 0 511,871 4381927 0 0 11,697 51029 0 0 437,414 245,655 0 0 809,695 903,763 3,063,257 0 0 0 0 2,644,670 y G,O�F'F,O/ V 8,730,835 46,913 2,644,670 $ 13,717,088 0 0 68,554 11,697 0 0 1031804 0 0 70,208 0 40,600 75,762 0 0 21760,000 0 1,4101000 11410,000 0 11029,741 11450,776 _ 0 1641329 233,800 0 21644,670 61771,547 0 0 442,674 3,063,257 0 3,063,257 0 0 3061315 0 0 21722,600 0 0 67,466 0 0 3431229 3,063,257 945,541 8,265,010 2141283 1,832,218 $ 12,386,898 254,734 59,718 5,029 93,350 69,386 68,158 2,920,000 1,520,000 444,712 348,400 5,783,487 442,674 2,801,060 305,441 2,6 39,429 299,232 65,575 6,603,411 $ 3,063,257 $ 2,644,670 $ 13,717,088 $ 12,386,898 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3 CITY OF SANGER COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES For the Year Ended September 30, 2000 TOTALS SPECIAL (memorandum only) REVENUES GENERAL REVENUE 2000 1999 Property Taxes $ 580,937 $ 0 $ 580,937 $ 5020660 Nonproperty Taxes 390,431 240,654 631,085 586,733 Penalties and Interest on Delinquent Taxes 12,924 0 12,924 91953 License and Permits 28,793 0 281793 251244 Fees and Services 403,841 0 403,841 374,497 Grants and Intergovernmental 84,593 0 84,593 1021066 Interest Income 51212 101903 16,115 71246 Miscellaneous Income 13,118 0 131118 10,707 Donations 301787 0 30,787 29834 TOTAL REVENUES 1,550,636 251,557 11802,193 11621,940 EXPENDITURES General Government 490,984 11013,067 11504,051 477,151 Public Safety 536,295 0 5361295 499,734 Highways and Streets 133,849 0 1331849 119,378 Health and Welfare 451200 0 45,200 309025 Culture and Recreation 2701563 0 2701563 255,357 Capital Outlay 263,898 0 2631898 266,663 Debt Service: Principal 202,188 5523 207,711 187,270 Interest 1081477 91476 117,953 117,523 TOTAL EXPENDITURES 21051,454 11028,066 31079,520 119531101 EXCESS REVENUES OVER (UNDER) EXPENDITURES (500,818) (776,509) (112771327) __ (331_,161) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Notes Payable 167,763 8502000 11017,763 181,969 p Y Sale of Assets 0 0 0 51000 Transfers In 305,452 0 305,452 357,743 TOTAL OTHER FINANCING SOURCES (USES) 473,215 850,000 11323,215 _ 544,712 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES (27,603) 73,491 459888 213,551 FUND BALANCE - BEGINNING 1201645 244,162 364,807 151,256 FUND BALANCE -ENDING $ 93,042 $ 317,653 $ 4109695 $ 364,807 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, 2000 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/Notes Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -ENDING BUDGET $ 566,795 4001500 4,000 44,499 3991250 93,000 3,400 30,000 27,432 ,876 1,568 493,024 6611921 1181939 441900 2711280 2611537 110,000 91,490 21053,091 (484,215) 167,763 305,452 ACTUAL $ 5801937 390,431 12,924 28,793 403,841 84,593 5,212 13,118 30,787 1,550,636 490,984 536,295 1331849 451200 2701563 2631898 202,188 108,477 21051,454 (500,818) 167,763 305,452 4731215 473,215 $_ 011000 (27,603) 1201645 $ 93,042 VARIANCE $ 14,142 (102069) 8,924 (15,706) 4,591 (81407) 1,812 (16,882) 3,355 (18,240) 2,040 125,626 (14,910) (300) 717 (2,361) (92,188) (16,987) 1,637 (16,603) 0 0 $�16,603) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 5 0 0 0 0 0 0 0 0 0 0 0 0 2,000 101903 81903 0 0 0 0 0 0 233,100 251,557 18,457 BUDGET $ 566,795 631,600 4,000 44,499 3991250 93,000 5,400 30,000 27,432 11801,976 (Memorandum Only) ACTUAL $ 580t937 6317085 12,924 28,793 403,841 84,593 16,115 13,118 30,787 1,802,193 118,550 1,013,067 (894,517) 611,574 1,504,051 0 0 0 661,921 5361295 0 0 0 1181939 1331849 0 0 0 44,900 451200 0 0 0 2711280 270,563 0 0 0 261,537 2631898 0 0 1181550 1141550 0 0 0 5,523 9,476 11028,066 (776,509) 850,000 0 73,491 244,162 $ 317,653 (5,523) (9,476) (909,516) (891,059) 850,000 0 110,000 91,490 2,1711641 (369,665) 167,763 305,452 473,215 $ (41,059) 103,550 207,711 117,953 3,079,520 (1,277,327) 1,017,763 305,452 1,323,215 364,807 $ 410,695 VARIANCE $ 14,142 (515) 8,924 (15,706) 4,591 (8,407) 10,715 (16,882) 3,355 217 (892,477) 1251626 (14,910) (300) 717 (21361) (97,711) (26,463) (907,879) (907,662) 850,000 0 850,000 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE-5 CITY OF SANGER COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND For the Year Limed September 30, 2000 2000 OPERATING REVENUES 1999 Charges and Fees $ 4,086,359 $ 3,929,244 OPERATING EXPENSES Personnel Services 745,233 629,610 Purchase of Services 21232,882 21077,216 Materials and Supplies 87,584 1091543 Depreciation 444,407 4081547 Franchise Fees 81,662 81,476 TOTAL OPERATING EXPENSES 35911768 31306/392 OPERATING INCOME NONOPERATING REVENUES (EXPENSES) Interest Income Debt Service Interest, Fees & Discounts Transfers Out TOTAL NONOPERATING REVENUES (EXPENSES) NET INCOME RETAINED EARNINGS -BEGINNING RETAINED EARNINGS -ENDING 494.591 32,141 (187,235) (305,452) 622.852 60,763 (170,385) (357,743) (460,546) (467,365) 34,045 2,994,870 $ 3,028,915 2,839,383 $ 2,994,870 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 6 CITY OF SANGER COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES For the Year Ended September 30, 2000 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 Bond Issuance Costs 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 2000 4,023,869 (2,281,098) (740,030) 11002,741 (496,494) 111,882 (300,470) (164,144) 0 (298,784) 1999 $ 4,013,262 (1,148,010) 30,655 (114,614) 9151147 $ 8001533 $ 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 (2,280,413) (619,460) 11113,389 (1,214,097) 11980,513 (11832,210) (200,528) (147,303) (345,694) (1,759,319) 62,413 (583,517) 1,498,664 494591 ,$ 622,852 444,407 408,547 (72,944) 90,258 (2081625) (11095) 3297455 (13,571) 51403 121638 10,454 (61240) $ 1,002,741 $ 11113,389 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 7 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Sanger operates under a Council -Manager form of government, following the laws of a Home Rule Charter City as defined by the State of Texas. The City provides the following services: public safety police, fire and ambulance, parks, streets, sanitation, a public library senior center, community center and general administrative services along with water, sewer and electrical services. 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: As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Sanger (the primary government) and its component units. The following component units are included in the City's reporting entity because of its operational and financial relationship with the City. The City has two blended component units as follows: (4A) The Sanger Texas Industrial Development Corporation is governed by a board of f ive directors, all %J 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 S.T.I.D.C. 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 S.T.I.D.C. is to promote economic development within the City of Sanger. Separate financial statements of the component unit can be obtained from the City's administrative offices. (4B) The Sanger Texas Development Corporation (S.T.D.C.) is governed by a board of seven 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 S.T.D.C. was incorporated in the state of Texas as a non-profit industrial development corporation under Section 4B of the Development Corporation Act of 1979. The purpose of the S.T.D.C. is to promote economic and community development within the City of Sanger. Separate financial statements of the component unit can be obtained from the Citv's administrative offices. CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 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. 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. CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 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 assets 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. 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 sufficient to relate the cost of the depreciable in amounts Page - 10 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 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. 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 Manager 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. Page - 11 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 6. ENCUMBRANCES: Encumbrances represent commitments related to unperformed contracts for goods and services. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation, is utilized in the General Fund. Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. 7. CASH: At year-end the City's cash accounts totaled $1,194,083 was held in checking, savings or c accounts at a local bank. Of the Bank ba covered by federal depository insurance $1,086,737 was covered by collateral held by agent in the name of the City. There were no accounts. $1,194,183 of which ertificate of deposit lances, $107,346 was and the remaining the pledging Bank's uncollateralized cash The securities pledged by the City's depository institution are as follows: MW SECURITY FHLB Bond 2,300,000 11M 2,234,594 8. CAPITALIZED INTEREST: The City capitalizes construction period interest when applicable. There was no interest requiring capitalization during the fiscal year. 9: INVENTORIES: Inventories of the Enterprise Fund are valued at the lower of cost (first -in, first -out) or market. 10. 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 $40,600 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. Page - 12 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 11. 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. 12. ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS: Allowance for uncollectable accounts receivable in the Proprietary Fund at September 30, 2000 is $49,670. 13: 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, 2000. 14. COMPARATIVE DATA: Comparative data for the prior year have been presented in the accompanying statements in order to provide an understanding of 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 sI nce their inclusion would make the statements unduly complex and difficult to read. 15. 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. Page - 13 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 NOTE H: RETIREMENT PLANS: Firemen's Pension Fund: The City's firemen are covered contributory plan is operated and Retirement Funds. The September 30, 2000 was $3,200, Employee Retirement Plan: by the firemen's pension plan. This as part of the State Firemen's Relief pension expense for the year ended The City provides pension benefits for all of its full-time employees through a non-traditional, joint contributory, defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple -employer public retirement system. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City -financed monetary credits, with interest. Members can retire at ages sixty and above with ten or more years of service or with twenty five years of service regardless of age. A member is vested after ten years. The contribution rate for the employees is 5% of gross earning and the City provides a monthly contribution of 3.78% of gross earnings. This rate consists of the normal cost contribution and the prior service contribution rate. The normal cost contribution rate finances the currently accruing monetary credits and the prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's twenty five year amortization period. The City's contributions for the fiscal year totaled $46,338. The schedule of Actuarial Liabilities and Funding Progress for the year ended September 30, 2000 is as follows: Actuarial valuation date 12/31/99 Actuarial valuation of assets $1,002,978 Actuarial Accrued Liability $ 925,529 Percentage funded 108.4% Unfunded (Overfunded) actuarial accrued liability (UAAL) $ (77,449) Annual covered payroll $1,041,602 UAAL as percentage of covered payroll -7.4% Net pension obligation - beginning $ 0 Annual required contributions $ 46,338 Contributions made $ (460338) Net pension obligation - ending $ 0 Page - 14 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 The City of Sanger is one of 731 municipalities having the benefit plan administered by TMRS. Each of the 731 Municipalities have an annual, individual actuarial valuation performed. All assumptions for the 12-31-99 valuations are contained in the 1999 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas 78714-9153. NOTE C: LONG-TERM DEBT: The following is a summary of the City's Long -Term Debt. The future debt requirements are detailed in 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 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. Note Payable - Guarantee $38,969, I requires with the final installment at 6% and has thirty two National Bank - Original amount of forty eight monthly installments of $914 due April 2003. The note bears interest i 2000. The note proceeds we nstallments remaining at September 30, e used to purchase various pieces of equipment, which also serve as collateral for the note. Note Payable - Guarantee National Bank - Original amount of $38,023, the note requires thirty six monthly installments of $1,159 with the final installment due April 2003. The note bears interest at 6% and has thirty one installments remaining at September 30, 2000. The note proceeds were used to purchase a police vehicle, which also serves as collateral for the note. Note Payable $53,540, the Note Payable $43,184, the $1,029 with interest at Guarantee National Bank Original amount of - Guarantee NationalOriginal amount of note requires forty eight monthly installments of the final installment due July 2004. The note bears two percent under prime rate and has forty six Page - 15 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS installments were used to for the note. September 30, 2000 remaining at September 30, 2000. The note proceeds I a dump truck, which also serves as collateral Note Payable - Guarantee National Bank - Original amount of $18,028, the note requires thirty six monthly installments of $555, with the final installment due July 2003. The note bears interest at two percent under prime rate and has thirty four installments remaining at September 30, 2000. The note proceeds were used to purchase a Chevy truck, which also serves as collateral for the note. Note Payable - Guarantee National Bank - Original amount of $14,998, the note requires thirty six monthly installments of $461, with the final installment due September 2003. The note bears interest at two percent under prime rate and has thirty six installments remaining at September 30, 2000. The note proceeds were used to purchase a Dodge pickup, which also serves as collateral for the note. Note Payable - Guarantee National Bank - Original amount of $850,000, the note requires one hundred eighty monthly installments of $7,499, with the final installment due July 2015. The note bears interest at two percent under prime rate and has one hundred seventy eight installments remaining at September 30, 2000. The note proceeds were used to purchase land for a development project between the Sanger Texas Industrial Development Corporation and Walmart Stores East, Inc. The loan will be repaid from the 4A sales tax proceeds to be collected by the Sanger Texas Industrial Development Corporation. 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 - Ford Motor Credit Company - Original balance of $14,300. The lease requires forty eight monthly rental payments of $338, with thirteen payments remaining at September 30, 2000. 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 - Ford Motor Credit Company - Original balance of $46,548. The lease requires thirty six monthly rental payments of $1,401, with fourteen payments remaining at September 30, 2000. CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 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 two police vehicles. The vehicles are security for the lease. Capital Lease - Ford Motor Credit Company - Original balance of $95,453, The lease requires thirty six monthly rental payments of $2,903 with fifteen payments remaining at September 30, 2000. 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 four vehicles. The vehicles are security for the lease. Capital Lease - Lubbock National Bank - Original balance of $36,753. The lease requires sixty monthly rental payments of $734, with twenty six payments remaining at September 30, 2000. 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. 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%. Maturities 2002 through 2011 of the Bonds were advance refunded in June 1999 by the issuance of Texas Utility System Refunding Revenue Bonds, Series 2000. Maturities 2000 and 2001 will be retired as scheduled. Texas Utility System Revenue Bonds, Series of $1,0600,000, principal paid annually on semi-annually on May 15 and November 15, at to 4.75%. The bonds were issued to provide - Original amount 15; Interest paid ranging from 4.2% for improving and extending the City's Sewer System, The Bonds are to be repaid and are secured by the Enterprise Fund Net Revenues. 1996 May rates funds from Texas Utility System Refunding Revenue Bonds, Series 1999 - Original amount of $1,735,000, principal paid annually on May 15; Interest paid semi-annually on May 15 and November 15, at rates ranging from 4.25% to 4.40%. The bonds were issued to provide funds sufficient to advance refund maturities 2002 through 2011 of the City's outstanding Series 1991 Bonds. The Bond proceeds were used to purchase U.S. government securities. These securities were deposited into an irrevocable trust to provide for debt service of maturities 2002 through 2011. As a result, that portion of the 1991 series bonds is considered defeased, and the City has removed Page - 17 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 the liability from its accounts. The outstanding principle of the defeased bonds is $1,580,000 at September 30, 2000. The 1999 Bonds are to be repaid from and are secured by the Enterprise Fund Net Revenues. The Bond Obligations require that certain cash 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. Note Payable - Guarantee National Bank - Original amount of $169,076, the note requires forty eight monthly installments of $3,967 with the final installment due April 2003. The note bears interest at 6% and has thirty two installments remaining at September 30, 2000. The note proceeds were used to purchase various pieces of equipment, which also serve as collateral for the note. Note Payable - Guarantee National Bank - Original amount of $17,934, the note requires thirty six monthly installments of $547 with the final installment due April 2003. The note bears interest at 6% and has thirty one installments remaining at September 30, 2000. The note proceeds were used to purchase a city vehicle, which also serves as collateral for the note. Note Payable - Guarantee National Bank - Original amount of $2916521 the note requires thirty six monthly installments of $912, with the final installment due August 2003. The note bears interest at two percent under prime rate and has thirty four installments remaining at September 30, 2000. The note proceeds were used to purchase a Ford pickup, which also serves as collateral for the note. Note Payable - Guarantee National Ba: $64, 296, the note is due on demand, if note require improvements. s one annual payment, 2000. The note proceeds ik - original amount of no demand is made then the in Capital Lease - Ford Motor Credit Company - Original balance of $40,432. The lease requires sixty monthly rental payments of $779, with twenty six payments remaining at September 30, 2000. 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. Page - 18 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 Capital Lease - Ford Motor Credit Company - Original balance of $32,657. The lease requires thirty six monthly rental payments of $983, with fourteen payments remaining at September 30, 2000. 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 vehicle. The vehicle is security for the lease. Capital Lease - Ford Motor Credit Company - Original balance of $43,781. The lease requires thirty six monthly rental payments of $1,318 with fifteen payments remaining at September 30, 2000. 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 two vehicles. The vehicles are security for the lease. Capital Lease - Lubbock National Bank - Original balance of $36,753, The lease requires sixty monthly rental payments of $734, with twenty seven payments remaining at September 30, 2000. 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. 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: Principal Interest Principal Interest 2001 $320,423 $1561595 $ 303,453 $ 149,979 2002 259,956 139,900 328,797 126,451 2003 246,649 1261554 299,256 110,552 2004 230,353 112,759 195,000 97,333 2005 200,015 97,603 200,000 89,202 Future 1.346,674 351,192 1.924,000 394.0063 Total $2.6041,070 $ 984,603 $3.250,506 $ 967,580 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 $11669,307. Page - 19 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 2000 NOTE F: INTERFUND RECEIVABLE AND PAYABLE: At September 30, 2000 the Proprietary Fund owed the General Fund $11,697. The receivable and payable result from one fund paying an expenditure for another fund. NOTE G: BUDGET EXCEPTIONS: In February 2001 the City Council of the City of Sanger amended the original 1999/2000 budgeted revenues and expenditures. Budgeted Proceeds of Notes Payable were increased $38,023 for the Police department, $114,752 for the Street department, and $14,988 for the Administration department and Budgeted Capital Outlay for each of the departments were increased by the same amount to recognize capital additions made during the fiscal year that were funded from the proceeds of notes payable. Budgeted transfers in (revenues) were reduced by $169,678 to accurately reflect the amount of transfers from the proprietary fund to the general fund. Budgeted expenditures were reduced as follows to reflect the decrease in transfers in: Police department expenditures reduced by $1,567, Fire department expenditures reduced by $24,569, Street department expenditures decreased by $77,613, Parks department expenditures reduced by $54,061, and the Swimming Pool department expenditures were reduced by $11,8689 Library budgeted capital additions were increased by $21,432. These capital additions were funded from a $27,432 donation from a Local family which were not originally budgeted but were included I n the budget amendment. ACCOUNT GROUP FINANCIAL STATEMENTS & SCHEDULES CITY OF SANGER COMBINING STATEMENT OF RNT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANC ALANCES - SPECIAL REVENUE FUND 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 For the Year Ended September 30, 2000 ADMINI- SANITA- TRATION I POLICE FIRE I TION 161,650 0 0 0 12,924 0 0 0 28,793 0 0 0 6552 85,328 0 298,687 0 0 66,350 0 51212 0 0 0 13,118 0 0 0 21735 0 0 0 8111921 85,328 66,350 2981687 2089525 0 0 282,459 0 4351920 1001375 0 0 0 0 0 45,200 0 0 0 0 0 0 0 29,740 69,456 0 0 10,129 20,176 44,870 0 11104 21431 111256 0 2941698 527,983 156,501 282,459 EXCESS REVENUES OVER (UNDER) EXPENDITURES 517,223 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Pay. 14,988 Transfers In 305,452 TOTAL OTHER FINANCING SOURCES (USES) 3201440 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITU $ 8371663 171PI7�1 e ► ► ► ► FUND BALANCE -ENDING (442,655) (90,151) 16,228 38,023 0 0 0 0 0 38,023 0 0 $ 404,632) $ (90,151) $ 16,228 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 COMMUNITY SWIMMING & SENIOR STREETS I FLBRARY I PARKS POOL CENTERS TOTAL $ 0 $ 0 $ 0 $ 0 $ 0 $ 5801937 228,781 0 0 0 0 390,431 0 0 0 0 0 2,569 0 18,243 0 0 0 0 0 27,432 228,781 481244 0 0 0 0 0 0 620 620 0 0 6,680 0 0 0 0 6,680 0 12,924 0 28,793 4,025 4031841 0 84,593 0 5,212 0 13,118 0 30,787 4,025 11550,636 0 0 0 0 0 490,984 0 0 0 0 0 5361295 1331849 0 0 0 0 133,849 0 0 0 0 0 451200 0 76,497 142,287 31,696 20,083 270,563 115,264 46,704 11096 0 11638 2631898 107,213 19,800 0 0 0 202,188 77,266 16,420 0 0 0 108,477 4331592 159,421 1431383 31,696 211721 21051,454 (204,811) (111,177) (142,763) (25,016) (17,696) (500,818) 114,752 0 0 0 167,763 0 0 0 0 0 305,452 114,752 0 0 0 0 473,215 $ (90,059) $ (111,177) $ (142,763) $ (25,016� $_ (171696) (27,603) 120,645 $ 93,042 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND 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 For the Year Ended September 30, 2000 MOTEL ECON4DEVEL. ECO BEVEL. A7TOTAL $ 0 $ 11,872 0 0 0 0 1,098 0 0 12,970 0 $ 1141391 0 0 0 0 4,082 0 0 118,473 0 $ 0 114,391 2401654 0 0 0 0 0 0 0 0 5,723 101903 0 0 0 0 120.114 251.557 EXPENDITURES General Government 2,757 110039582 61728 11013,067 Public Safety 0 0 0 0 Highways and Streets 0 0 0 0 Health and Welfare 0 0 0 0 Culture and Recreation 0 0 0 0 Capital Outlay 0 0 0 0 Debt Service: Principal 0 51523 0 51523 Interest 0 91476 0 91476 TOTAL EXPENDITURES 21757 11018,581 61728 110281066 EXCESS REVENUES OVER (UNDER) EXPENDITURES 101213 (900,108) 1131386 (776,509) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Pay. 0 850,000 0 8501000 Transfers In 0 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 8501000 0 8501000 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 101213 (50,108) 113,386 73,491 FUND BALANCE - BEGINNING 51,715 96,293 , 96154 244,162 — 9 -- 4 - FUND BALANCE - ENDING $ 61,928 $ 46,185 $ 209,540 $ 317,653 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22 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 For the Year Ended September 3012000 ADMINISTRATION BUDGET IACTUAL E VARIANCE $ 5661795 $ 580,937 $ 170,500 161,650 41000 12,924 44,499 28,793 101000 6,552 0 0 31400 51212 30,000 13,118 0 2,735 829,194 811,921 EXPENDITURES General Government 2331824 Public Safety 0 Highways and Streets 0 Health and Welfare 44,900 Culture and Recreation 0 Capital Outlay 34,589 Debt Service: Principal 0 Interest 0 TOTAL EXPENDITURES 3131313 EXCESS REVENUES OVER (UNDER) EXPENDITURES 5151881 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 14,988 Transfers In 305,452 TOTAL OTHER FINANCING SOURCES (USES) 320,440 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ 8361321 208,525 0 0 45,200 0 29,740 10,129 1,104 294,698 517,223 14,988 305,452 320.440 14,142 (8,850) 8,924 (15,706) (3,448) 0 1,812 (16,882) 2,735 (17,273) 25,299 0 0 (300) 0 4,849 (10,129) (1,104) 18,615 0 0 0 $ 837,663 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 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 For the Year Ended September 30, 2000 POLICE BUDGET ACTUAL ] VARIANCE $ 0 $ 0 0 0 73,750 0 0 0 0 73,750 0 0 85,328 0 0 0 0 85,328 0 0 0 0 11,578 0 0 0 0 11,578 EXPENDITURES General Government 0 0 0 Public Safety 5101420 4351920 74,500 Highways and Streets 0 0 0 Health and Welfare 0 0 0 Culture and Recreation 0 0 0 Capital Outlay 69,456 691456 0 Debt Service: Principal 0 20,176 (20,176) Interest 0 21431 (21431) TOTAL EXPENDITURES 5791876 5271983 511893 EXCESS REVENUES OVER (UNDER) EXPENDITURES (506,126) (442,655) 63,471 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 381023 381023 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 381023 38,023 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (468,103) $ 404,632) $ 63,471 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Anded September 30, 2000 FIRE REVENUES BUDGET ACTUAL j 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 781000 661350 (11,650) Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 0 0 TOTAL REVENUES 78,000 66,350 (11,650) EXPENDITURES General Government 0 0 0 Public Safety 151,501 1001375 51,126 Highways and Streets 0 0 0 Health and Welfare 0 0 0 Culture and Recreation 0 0 0 Capital Outlay 51000 0 51000 Debt Service: Principal 0 44,870 (44,870) Interest 0 11,256 (11,256) TOTAL EXPENDITURES 1561501 156,501 0 EXCESS REVENUES OVER (UNDER) EXPENDITURES (78,501) (901151) (11,650) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 0 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (78,501) 901151) 11,650 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the l uar Ended September 30, 2000 SANITATION 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 Fees and Services 300,000 2981687 (11313) Grants and Intergovernmental 0 0 0 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 _ _ 0 0 TOTAL REVENUES 300,000 2989687 (11313) EXPENDITURES General Government 2591200 282,459 (23,259) 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 259,200 282,459 (23,259) EXCESS REVENUES OVER (UNDER) EXPENDITURES 40,800 16228 (24,572) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 0 V $ 40,800 $ _ 16_228 C $ 24,572 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 2000 STREETS REVENUES I BUDGET ACTUAL I VARIANCE Property Taxes $ 0 $ 0 $ 0 Nonproperty Taxes 2301000 228,781 (11219) Penalties and Interest on Delinquent Taxes 0 0 0 License and Permits 0 0 0 Fees and Services 0 0 0 Grants and Intergovernmental 0 0 0 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 _ 0 0 TOTAL REVENUES 230,000 228,781 (11219) 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 0 0 1181939 0 0 115,264 90,200 75,022 399,425 (169,425) 114,752 0 114,752 $ (54,673) 0 0 133,849 0 0 115,264 107,213 77,266 433,592 (204,811) 114,752 0 114,752 $ (90,059) 0 0 (14,910) 0 0 0 (17,013) (2,244) (34,167) (35,386) 0 0 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 2000 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES LIBRARY BUDGET ACTUAL] VARIANCE 0 0 1,500 15,000 0 0 27,432 1932 43 0 0 2,569 18,243 0 0 27,432 48,244 0 0 1,069 3,243 0 0 0 4,312 0 0 0 0 0 0 0 0 0 0 0 0 731311 76,497 (31186) 321432 46,704 (14,272) 19,800 19,800 0 16,468 16,420 48 142,011 159,421 (17,410) (98,079) (111,177) (13,098) 0 0 0 0 0 0 0 0 0 $ (98,079) $ (1111177) $ (131098) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 2000 PARKS 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 0 0 0 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 620 620 TOTAL REVENUES 0 620 620 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 142,287 142,287 0 Capital Outlay 11096 15096 0 Debt Service: Principal 0 0 0 Interest 0 0 0 TOTAL EXPENDITURES 1431383 1431383 0 EXCESS REVENUES OVER (UNDER) EXPENDITURES (143,383) (142,763) 620 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 0 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (143,383) $ (142,763) $ 620 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended Septenrher 30, 2000 SWIMMING POOL REVENUES F 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 111000 61680 (41320) Grants and Intergovernmental 0 0 0 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 0 0_ TOTAL REVENUES 11,000 61680 (41320) 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 311696 31,696 0 Capital Outlay 0 0 0 Debt Service: Principal 0 0 0 Interest 0 0 0 TOTAL EXPENDITURES 31,696 311696 0 EXCESS REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES (20,696) 0 0 (25,016) (4,320) 0 0 0 $ 4,320 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND 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 For the Year p nued September 30, Z000 COMMUNITY & SENIOR CENTERS BUDGET ACTUAL_ I VARIANCE 0 0 0 0 31000 41025 0 0 0 0 0 0 0 0 31000 41025 EXPENDITURES General Government 0 0 Public Safety 0 0 Highways and Streets 0 0 Health and Welfare 0 0 Culture and Recreation 23,986 201083 Capital Outlay 31700 11638 Debt Service: Principal 0 0 Interest 0 0 TOTAL EXPENDITURES 27,686 21,721 EXCESS REVENUES OVER (UNDER) EXPENDITURES (24,686) (17,696) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 0 Transfers In 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (24,686) $ (171696) E� 0 0 0 0 1,025 0 0 0 0 1,025 0 0 0 0 3,903 2,062 0 0 5,965 6,990 0 0 �7 6,990 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 2000 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING TOTAL BUDGET ACTUAL_ ] VARIANCE $ 5667795 $ 5801937 $ 14,142 4001500 390,431 (10,069) 41000 129924 81924 44,499 28,793 (15;706) 3991250 4031841 41591 93,000 84,593 (81407) 31400 51212 11812 307000 13,118 (16,882) 27,432 30,787 31355 1,568,876 1,550,636 (18,240) 493,024 490,984 2,040 6611921 5361295 1251626 1181939 133,849 (14,910) 441900 451200 (300) 2711280 2701563 717 2611537 263,898 (21361) 110,000 202,188 (92,188) 91,490 108,477 (16,987) 21053,091 2,0511454 11637 (484,215) 167,763 305,452 473.215 $ (11,000) (500,818) 167,763 305,452 473,215 (27,603) 120,645 $ 93,042 (16,603) 0 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 2000 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE - BEGINNING FUND BALANCE -ENDING NOTEL/MOTEL $ 0 $ 1,100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11,872 0 0 0 0 1,098 0 0 12,970 2,757 0 0 0 0 0 0 0 0 2,757 10,213 0 0 0 10,213 51,715 $ 61,928 VARIANCE $ 0 10,772 0 0 0 0 1,098 0 0 11,870 (2,757) 0 0 0 0 0 0 0 (21757) N u SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE 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 For the Year Ended September 30, 2000 ECONOMIC DEVELOPMENT -SECTION 4A BUD I ACTUAL] I VARIANCE $ 0 $ 115,000 0 0 0 0 1,000 0 0 116,000 EXPENDITURES General Government 116,000 Public Safety 0 Highways and Streets 0 Health and Welfare 0 Culture and Recreation 0 Capital Outlay 0 Debt Service: Principal 0 Interest 0 TOTAL EXPENDITURES 116,000 EXCESS REVENUES OVER (UNDER) EXPENDITURES 0 0 $ 114,391 0 0 0 0 4,082 0 0 118,473 1,003,582 0 0 0 0 0 5,523 9,476 11018, 581 (900,108) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 850,000 Transfers In 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 850,000 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ 0 (50,108) FUND BALANCE - BEGINNING 96,293 FUND BALANCE = ENDING $ 46,185 0 (609) 0 0 0 0 3,082 0 0 2,473 (887,582) 0 0 0 0 0 (5,523) (9,476) (902,581) (900,108) 850,000 0 850,000 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES = SPECIAL REVENUE FUND For the Year Anded Septenther 30, 2000 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING ECONOMIC DEVELOPMENT -SECTION 40 BUDGET ACTUAL VARIANCE $ 0 1151000 0 0 0 0 1,000 0 0 00 116,0 2,550 0 0 0 0 0 0 0 2,550 1131450 0 0 0 $ 113,450 $ 0 $ 0 114,391 (609) 0 0 0 0 5,723 0 0 1201114 6,728 0 0 0 0 0 0 0 6,728 113,386 0 0 0 1131386 $ 96,154 $ 209,540 0 0 0 0 0 0 0 (609) (4,178) 0 0 0 0 0 0 0 (41178) 4,787) 0 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 2000 TOTAL _ REVENUES I tsu DGET L ACTUAL VARIANCE Property Taxes $ 0 $ 0 $ 0 Nonproperty Taxes 231,100 2401654 91554 Penalties and Interest on Delinquent Taxes 0 0 0 License and Permits 0 0 0 Fees and Services 0 0 0 Grants and Intergovernmental 0 0 0 Interest Income 21000 10,903 87903 Miscellaneous Income 0 0 0 Donations 0 0 0 TOTAL REVENUES 233,100 2511557 180457 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/Note Payable Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING 118,550 0 0 0 0 0 0 0 118,550 114,550 0 0 C $ 114,550 1,013,067 0 0 0 0 0 5,523 9,476 110281066 (7761509) 8501000 0 8501000 73,491 244,162 $ 317,653 (894,517) 0 0 0 0 0 (5,523) (9,476) (909,516) (891,059) 850,000 0 850,000 059) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24 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, 2000 69,370 1,133,715 1,176,361 461,664 222.147 $ 3,063,257 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 25 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, 2000 BEGINNINGl JUMMETIONS ENDING $ 6%370 $ 0 $ 0 $ 69,370 11080,071 53,644 0 1,1331715 967,808 210,253 11700 11176,361 461,664 0 0 461,664 222,147 0 0 222,147 $ 2,801,060 $ 263,897 $ 1,700 $ 3,063,257 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 26 CITY OF SANGER SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT ENTERPRISE FUND For the Year Ending September 30, 2000 BEGINNING ADDITIONS DELETIONS I ENDING COST Water System $ 2,565,528 $ 40,506 $ 0 $ 2,606,034 Sewer System 31357,300 157,830 0 3/5159130 Electric System 21583,122 95,294 0 2,678,416 Equipment 847,459 56,268 0 903,727 Furniture & Office Equipment 191,194 91712 0 200t9O6 Building Improvements 34,433 288,425 0 322,858 Easement 11500 0 0 11500 TOTAL COST $ 9,580,536 $ 648,035 $ 0 $ 10,228,571 ACCUMULATED DEPRECIATION Water System $ 11016,073 $ 92,678 $ 0 $ 11108,751 Sewer System 961,055 991579 0 11060,634 Electric System 11449,844 150,689 0 11600,533 Equipment 520,123 781687 0 598,810 Furniture & Fixtures 151,748 13,452 0 165,200 Building Improvements 17,743 9$22 0 27,065 Easement 0 0 0 0 TOTAL ACCUMULATED DEPRECIATION $ 4,116,586 $ 444,407 $ 0 $ 4,560,993 NET PROPERTY, PLANT &EQUIPMENT $ 5,463,950 $ 5,667,578 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 27 CITY OF SANGER STATEMENT OF GENERAL LONG - TERM DEBT September 30, 2000 BOND OBLIGATIONS Series 1994 Certificates of Obligation NOTES PAYABLE Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank TOTAL NOTES PAYABLE CAPITAL LEASES Midwest Bankers Lubbock National Bank Ford Ford Ford TOTAL CAPITAL LEASE OBLIGATIONS ACCRUED COMPENSATED ABSENCES Accrued Vacation Pay Accrued Sick Pay TOTAL ACCRUED COMPENSATED ABSENCES TOTAL TO BE PROVIDED FOR. RETIREMENT OF GENERAL LONG -TERM DEBT 27,018 33,131 51,478 41,553 17$096 14,988 8441477 82,180 17,007 4,226 18,947 41,969 28,000 $ 12,600 $ 1,410,000 1,029,741 164,329 40,600 $ 2,644,670 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 28 CITY OF SANGER SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT For the Year Ended September 30, 2000 BEGINNING ADDITIONS IREDUCTION ENDING BOND OBLIGATIONS Series 1994 Certificates of Obligation NOTES PAYABLE Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank TOTAL NOTES PAYABLE CAPITAL LEASES Midwest Bankers Lubbock National Bank Ford Ford Ford TOTAL CAPITAL LEASES ACCRUED COMPENSATED ABSENCES Accrued Vacation Pay Accrued Sick Pay TOTAL ACCRUED COMPEN. ABSENCES $ 1,520,000 $ 0 $ 110,000 $ 1,410,000 34,598 0 7,580 27,018 0 38,023 4,892 33,131 0 531540 21062 51,478 0 43,184 11631 41,553 0 18,028 932 17,096 0 14,988 0 14,988 0 850,000 51523 844,477 $ 34,598 $ 1,0171763 $ 22,620 $ 1,029,741 $ 99,598 $ 0 $ 17,418 $ 82,180 24,229 0 71222 17,007 7,870 0 31644 41226 34,231 0 15,284 18,947 73,492 0 31,523 41,969 $ 239,420 $ 0 $ 751091 $ 164,329 15,700 0 $ 38,200 $ 52500 $ 0 $ 28,000 3,100 12,600 3,100 $ 40,600 TOTAL TO BE PROVIDED FOR RETIREMENT OF GENERAL LONG -TERM DEBT $ 1,832,218 $ 1,023,263 $ 210,811 $ 2,644,670 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 29 CITY OF SANGER DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT Series 1994 Certificates of Obligation Year Ending September 30, PRINCIPAL 2001 $ 120,000 2002 1251000 2003 135,000 2004 1451000 2005 155,000 2006 165,000 2007 175,000 2008 1901000 2009 200,000 $ 11410,000 September 30, 2000 INTEREST $ 82,440 75,720 68,657 60,963 52,625 43,635 33,900 23,400 12,000 $ 453,340 NOTE PAYABLE -GUARANTEE NATIONAL BANK TOTAL REQUIREMENTS $ 202,440 200,720 2031657 205,963 207,625 208,635 208,900 213,400 2121000 $ 11863,340 Year Ending TOTAL September 30, PRINCIPAL INTEREST REQUIREMENTS 2001 $ 10,437 $ 11447 $ 11,884 2002 101254 716 101970 2003 61327 72 61399 $ 27,018 $ 21235 $ 29,253 NOTE PAYABLE - GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 PRINCIPAL $ 12,250 13,005 7,876 $ 33,131 INTEREST $ 1,655 899 235 $ 2,789 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 2004 PRINCIPAL $ 12,563 13,337 14,160 11,418 $ 51,478 INTEREST $ 2,749 1,975 1,152 1,342 $ 7,218 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 2004 PRINCIPAL $ 10,133 10,758 11,421 9,241 $ 41,553 INTEREST $ 2,218 1,593 929 1,050 $ 5,790 TOTAL REQUIREMENTS $ 13,905 13,904 8,111 $ 35,920 TOTAL 15312 REQUIREMENTS $ , 15,312 15,312 12,760 $ 58,696 TOTAL 12,351 REQUIREMENTS $ 12,351 12,350 10,291 $ 47,343 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 CITY OF SANGER DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT September 30, 2000 NOTE PAYABLE - GUARANTEE NATIONAL BANK Year Ending TOTAL September 30, PRINCIPAL INTEREST REQUIREMENTS 2001 $ 51789 $ 868 $ 61657 2002 61146 511 61657 2003 5,161 385 51546 $ 17,096 $ 11764 $ 18,860 NOTE PAYABLE - GUARANTEE NATIONAL BANK Year Ending TOTAL September 30, PRINCIPAL INTEREST REQUIREMENTS 2001 $ 41758 $ 770 $ 5$28 2002 51052 476 51528 2003 51178 350 5,528 $ 14,988 $ 1,596 $ 161584 NOTE PAYABLE "GUARANTEE NATIONAL BANK Year Ending TOTAL September 30, PRINCIPAL INTEREST REQUIREMENTS 2001 $ 34,458 $ 551535 $ 891993 2002 36,839 532154 89,993 2003 39,385 50,608 89,993 2004 42,106 47,887 89,993 2005 451015 44,978 891993 2006 48,126 41,867 89,993 2007 51,451 381542 89,993 2008 55,006 34,987 89,993 2009 58,807 31,186 89,993 2010 62,870 27,123 89,993 2011 67,214 22,779 89,993 2012 71,859 18,134 89,993 2013 76,824 13,169 89,993 2014 82,132 71861 89,993 2015 72$85 2,609 74,994 $ 844,477 $ 490,419 $ 1,334,896 Capital Lease -Midwest Bankers Year Ending September 30, Less Amount Representing Interest LEASE 14,243 $ 82,180 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 CITY OF SANGER DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT September 30, 2000 Capital Lease - LUBBOCK NATIONAL BANK Year Ending September 30, 2001 2002 2003 Less Amount Representing Interest PRINCIPAL $ 8,803 8,803 2,201 $ 19,807 2,800 $ 17,007 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, 2001 2002 Less Amount Representing Interest PRINCIPAL $ 4,051 338 $ 4,389 163 4,226 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, 2001 2002 Less Amount Representing Interest LEASE PAYMENT $ 16,813 2,802 19,615 Capital Lease -FORD MOTOR CREDIT Year Ending LEASE September 30, PAYMENT 2001 $ 34,838 2002 8,709 43,547 Less Amount Representing Interest 1,578 $ 41,969 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 CITY OF SANGER SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND For the Year Ended September 30, 2000 REVENUE BOND OBLIGATIONS Series 1991 Series 1996 Series 1999 TOTAL REVENUE BONDS I�I�-��J1Tl_a1 Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank Guarantee National Bank TOTAL NOTES PAYABLE CAPITAL LEASES Lubbock National Bank Ford Motor Credit Ford Motor Credit Ford Motor Credit TOTAL CAPITAL LEASES TOTAL LONG -TERM DEBT BEGINNING1 IKEDUCTION ENDING $ 2151000 $ 0 $ 9701000 0 11735,000 0 $ 2,9201000 $ 0 $ 105,000 $ 110,000 35,000 935,000 20,000 11715,000 160,000 $ 21760,000 150,114 0 32,891 17,934 21307 29,652 763 64,296 0 $ 111,882 $ 1001961 $ 26,224 24,014 33,356 $ 108,980 $ $ 3,439,094 $ 195,000 117,223 15,627 28,889 64,296 421.035 0 $ 7,179 $ 18,207 0 7,294 18,930 0 10,724 13,290 0 14,312 19,044 0 $ 39,509 $ 69,471 111,882 $ 300,470 $ 3,250,506 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 31 ties 1991 Revenue Year Ending September 30, 2001 CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND nds PRINCIPAL $ 110,000 1996 Revenue Bonds Year Ending September 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 es '1999 Kevenue Year Ending September 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PRINCIPAL $ 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 $ 935,000 ng bongs PRINCIPAL $ 20,000 140,000 1451000 1501000 155,000 165,000 170,000 180,000 190,000 195,000 2051000 $ 11715,000 September 30, 2000 INTEREST $ 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 $ 408,670 INTEREST $ 73,900 73,050 67,100 60,938 54,562 47,975 40,962 33,653 25,913 17,600 9,020 $ 504,673 TOTAL REQUIREMENTS $ 116,876 TOTAL REQUIREMENTS $ 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 $ 12343,670 TOTAL REQUIREMENTS $ 93,900 213,050 212,100 2101938 209,562 212,975 2101962 213,653 215,913 212,600 214,020 $ 21219,673 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND September 30, 2000 NOTE PAYABLE - GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 PRINCIPAL $ 65,000 65,000 65,000 $ 195,000 INTEREST $ 12,675 8,450 4,225 $ 25,350 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 PRINCIPAL $ 45,286 44,491 27,446 $ 117,223 INTEREST $ 6,277 3,106 319 $ 9,702 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 PRINCIPAL $ 5,778 6,135 3,714 $ 15,627 INTEREST $ 781 424 112 $ 1,317 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 2002 2003 PRINCIPAL $ 9,464 10,048 9,377 $ 28,889 INTEREST $ 1,476 892 652 $ 3,020 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2001 PRINCIPAL $ 64,296 11►j���1 TOTAL REQUIREMENTS $ 77,675 73,450 69,225 $ 220,350 TOTAL REQUIREMENTS $ 51,563 47,597 27,765 $ 126,925 TOTAL REQUIREMENTS $ 6,559 6,559 3,826 $ 16,944 10940 REQUIREMENTS $ , 10,940 10,029 $ 31,909 TOTAL REQUIREMENTS $ 68,154 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 32 CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND September 30, 2000 Capital Lease - LUBBOCK NATIONAL BANK Year Ending September 30, 2001 2002 2003 Less Amount Representing Interest LEASE PAYMENT $ 8,803 8,803 2,201 19,807 1,600 $ 18,207 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, 2001 2002 2003 Less Amount Representing Interest LEASE PAYMENT $ 9,344 9,344 1,557 20,245 1,315 $ 18,930 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, 2001 2002 Less Amount Representing Interest LEASE PAYMENT $ 11,796 1,967 13,763 473 $ 13,290 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, Less Amount Representing Interest LEASE 19,770 726 $ 19,044 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 32 CITY OF SANGER GOVERNMENTAL AND PROPRIETARY FUNDS SCHEDULE OF RESTRICTED CASH September 30, 2000 GENERAL FUND Police Department Funds Beautification Board Funds Library Funds Park Department Fund Certificate of Obligation Reserve and I & S Funds TOTAL GENERAL FUND SPECIAL REVENUE FUND Hotel/Motel Fund Economic Developemnt -Section 4A Economic Developemnt -Section 4B TOTAL SPECIAL REVENUE FUND $ 812 1,666 556 6,158 38,478 $ 47,670 36,049 199,402 $ 297,379 ENTERPRISE FUND Revenue Bond I & S Funds $ 690876 Revenue Bond Reserve Funds 243,782 Revenue Bond Emergency Fund 16,212 Customer Utility Deposits 106,329 Unspent 1996 Revenue Bond Funds 27,778 One Plus Program 176 Safety and Incentive Funds 493 TOTAL ENTERPRISE FUND $ 464,646 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 33 CITY OF SANGER GOVERNMENTAL AND PROPRIETARY FUNDS SCHEDULE OF RESERVED FUND EQUITIES GENERAL FUND Police Department Fund Beautification Board Funds Library Funds Park Departmnet Fund Minimum Required Reserves, Interest and Sinking Funds - 1994 Certificate of Obligation TOTAL GENERAL FUND SPECIAL REVENUE FUND Hotel/Motel Fund Economic Development -Section 4A Economic Development -Section 4b TOTAL SPECIAL REVENUE FUND ENTERPRISE FUND Minimum Required Reserves, Interest and Sinking Funds -Revenue Bonds One Plus Program Safety and Incentive TOTAL ENTERPRISE FUND September 30, 2000 $ 812 1,666 556 6,158 38,000 $ 47,192 $ 61,928 36,049 199,402 $ 297,379 $ 305,646 176 493 $ 306,315 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 34 CITY OF SANGER SCHEDULE OF INSURANCE COVERAGE September 30„ 2000 AMOUNT OF TYPE OF COVERAGE FROM TO COVERAGE CARRIER Business Auto: Liability 10/1/99 10/1/00 3,000,000 Texas Municipal League Physical Damage 10/1/99 10/1/00 Actual Cash Value Texas Municipal League Property Damage 10/1/99 10/1/00 Scheduled Equip. Texas Municipal League 31014,848 Workmen's Compensation 10/1/99 10/1/00 Statutory Texas Municipal League Liability - Law Enforcement Liability 10/1/99 10/1/00 1,0001000 Texas Municipal League Errors & Omissions 10/1/99 10/1/00 1,000,000 Texas Municipal League General Liability 10/1/99 10/1/00 31000,000 Texas Municipal League Mobile Equipment 10/1/99 10/1/00 2461615 Texas Municipal League Boiler & Machinery 10/1/99 10/1/00 5001000 Texas Municipal League Employee Bond 6/24/00 6/24/01 10,000 Western Surety SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 35 CITY OF SANGER PROPRIETARY FUND SUPPLEMENTALINFORMATION Septefriber 30, 2000 CLASSIFICATION OF CUSTOMERS Residential 1,763 Commercial, Demand & City 179 NUMBER OF CONNECTIONS 11942 RESIDENTIAL WATER RATES & COMMERCIAL Deposit $ 50.00 First 1,000 Gallons (minimum) $ 14.25 1,000 TO 5,000 Gallons $ 2.25 5,000 TO 15,000 Gallons $ 2045 151000 TO 30,000 Gallons $ 2085 Over 30,000 Gallons $ 3.65 1,375 386 SEWER RATES RESIDENTIAL COMMERCIAL Firs4-4 nf)n Gallons (minimum) $ 15.00 $ 21.00 Over 1,000 Gallons $ 1.00 $ 1.00 Maximum $ 30.00 $ NO MAX SMALL LARGE ELECTRIC RATES RESIDENTIAL COMMERCIAL COMMERCIAL Deposit $ 100.00 $ 200.00 $ 200.00 Facility Charge $ 8.00/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 I GALLONS OF WATER METERED (APPROX.) 2231076,179 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 36 CITY OF SANGER ANALYSIS OF TAXES RECEIVABLE For the Year Ended September 30, 2000 2000 1999 1998 1997 OLL 5 506 69 ADJUSTED TAX R 84 208 8 431,649 407,970 Less: Collections and Adjustments 560,137 484,054 415,237 392,929 CURRENT YEAR TAXES RECEIVABLE - END OF YEAR 24,071 22,644 16,412 15,041 PRIOR YEAR TAXES RECEIVABLE - END OF YEAR 46,137 46,742 51,802 45,566 TOTAL TAXES RECEIVABLE - END OF YEAR $ 70,208 $ 691386 $ 68,214 $ 60,607 Assessed Value Tax Rate per $100 Percent of Current Taxes Collected to Billed $ 111,724,586 $ 100,765,297 $ 91,334,817 $ 84,764,092 $ 0,5228 $ 0.5028 $ 094726 $ OA813 95.88% 9553% 96920% 96.31 % SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 37 WILLIAM C. SPORE, P.C. Certified Public Accountants 3950 Hwy 360, Ste 102, Grapevine, Texas 16039 8174210006619 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED UPON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING 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, 2000, and have issued our report thereon dated February 16, 2001. 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, m li n 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. This report is intended for the information and use of management, Honorable Mayor and City Council of the City of Sanger, Texas, and is not intended to be and should not be used by anyone other than these specified parties. CZMoo William C. Spore, P.C. February 16, 2001 WILLIAM C. SPORE, P.C. Certified Public Accountants 3950 Hwy 360, Ste 102, Grapevine, Texas 76059 817421-6619 To the 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, 2000, 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, In accordance with Government Auditing Standards, we have issued our report dated February 16, 2001 on our consideration of the City of Sanger's internal control over financial reporting. However, during our audit we became aware of matters that are opportunities for strengthening internal controls and operating efficiency. These matters are as follows: (1) The implementation of the Electric Departments inventory system has not been fully accomplished at September 30, 2000. The personnel responsible for the day to day updating of the inventory software should be fully trained in the use of the software and the reports it will generate. Systems to accurately track disbursements from inventory to the field should be implemented. Reports should be generated monthly and reviewed for accuracy in order to insure the system is maintained regularly and is up to date. Management of the City should be directly involved in the process of understanding the system and using the management tools that it will provide. The perpetual system should be matched to the physical inventory for accuracy and be used to determine the amount and value of parts on hand. We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestion with the City Manager and City Secretary, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. Sincerely, William C. Spore, P.C. February 16, 2001