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1999 Annual Financial ReportCITY OF BANGER FINANCIAL STATEMENTS September 30, 1999 TABLE OF CONTENTS AUDITOR'S REPORT 1 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 848 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS COMBINING STATEMENT OF REVENUES &EXPENDITURES - GENERAL FUND 19 COMBINING STATEMENT OF REVENUES & EXPENDITURES - SPECIAL REVENUE FUND 20 COMBINING STATEMENT OF REVENUES & EXPENDITURES - GENERAL FUND - BUDGET AND ACTUAL 21 COMBINING STATEMENT OF REVENUES & EXPENDITURES - SPECIAL REVENUE FUND - BUDGET AND ACTUAL 22 STATEMENT OF GENERAL FIXED ASSETS 23 SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 24 SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 25 STATEMENT OF GENERAL LONG-TERM DEBT 26 SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 27 SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 28 SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 29 SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 30 SUPPLEMENTAL INFORA�IATION SCHEDULE OF RESTRICTED ASSETS 31 SCHEDULE OF RESERVED FUND EQUITIES 32 SCHEDULE OF INSURANCE COVERAGE 33 ENTERPRISE FUND # OF CUSTOMERS AND RATES 34 ANALYSIS OF PROPERTY TAXES 35 UNAUDITED SCHEDULES DISCLOSURE OF YEAR 2000 ISSUES AND ACTIVITIES 36 William C. Spore & Company, PC. Certified Public Accountants 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, 1999, 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 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 pIan 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, 1999, 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 Governjuent Auditing Standa�•ds, we have also issued our report dated January 26, 2000 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. 4A At, William C. Spore & Company, P.C, January 26, 2000 1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725 ELECTED OFFICIALS MAYOR MAYOR PRO TEM COUNCILMEMBERS APPOINTED OFFICIALS CITY MANAGER CITY SECRETARY MUNICIPAL COURT JUDGE CITY ATTORNEY CITY OF SANGER CITY OFFICIALS September 30, 1999 Tommy Kincaid Jerry Jenkins Glenn Ervin Andy Garza Joe Higgs Carroll McNiell 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, 1999 GOVERNMENTAL FUNDS TYPE ASSETS GENERAL FUND Cash $ 49,794 Receivables, Net of Allowances for Uncollectibles: Property Taxes 69,386 Other Receivables 29,580 Services 0 Due from Other Funds 51029 Inventory/Prepaid Expense 21412 Restricted Assets - Cash 71,194 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 $ 2271395 LIABILITIES Accounts Payable $ 37,364 Accrued Expenses 0 Due to Other Funds 0 Customer Deposits 0 Deferred Revenues 691386 Long -Term Debt: Compensated Absences 0 Revenue Bonds Payable 0 Certificate of Obligation Payable 0 Notes Payable 0 Capital Leases 0 TOTAL LIABILITIES 1061750 FUND EQUITY Contributed Capital 0 Investment in General Fixed Assets 0 Retained Earning - Reserved 0 Retained Earning - Unreserved 0 Fund Balance - Reserved 55,070 Fund Balance - Unreserved 651575 TOTAL FUND EQUITY 120,645 TOTAL LIABILITIES AND FUND EQUITY SPECIAL REVENUE FUND 0 0 18,328 0 0 0 225,834 0 0 0 244,162 0 0 0 0 0 244,162 0 244,162 $ 227,395 244,162 PROPRIETARY FUND TYPES UTILITY FUNDS $ 308,412 0 6,513 438,927 0 243,243 606,735 5,463,950 2141283 0 $ 7,282,063 E� 217 ,370 59,718 5,029 93,350 0 29,958 2,920,000 0 410,114 10 31980 3,844,519 442,674 0 305,441 21689,429 0 0 31437,544 $ 7,282,063 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3 ACCOUNT GROUPS GENERAL FIXED ASSETS $ 0 GENERAL LONG- TERM DEBT 0 TOTALS (memorandum only) 1999 1998 $ 358,206 $ 521,337 0 0 69,386 68,214 0 0 54,421 33,463 0 0 4381927 529,185 0 0 51029 71020 0 0 2451655 102,439 0 0 903,763 11142,802 21801,060 0 81265,010 617321433 0 0 214,283 7431909 0 1,832,218 1,832,218 $ 2,8012060 $ 11832,218 $ 12,386,898 $ 0 $ 0 $ 254,734 0 0 59,718 5,029 0 0 93,350 0 0 69,386 0 38,200 0 0 0 11520,000 0 34,598 0 239,420 0 11832,218 0 0 2,801,060 0 0 0 0 0 0 0 0 0 2,801,060 0 $ 2,801,060 $ 1,832,218 68,158 2,920,000 1,5201000 444,712 348,400 5,783,487 442,674 2,801,060 305,441 2,6891429 2991232 65,575 6,603,411 1,834,320 $ 11,715,122 352,314 72,943 7$020 99,590 68,214 54,809 2,900,000 1,6251000 325,000 240,111 5,745,001 442,674 2,536,808 3131924 2,525,459 124,025 27,231 5,970,121 $ 12,386,898 $' 11,715,122 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, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING GENERAL 502,660 3801004 9,953 25,244 374,497 1021066 5,873 10,707 2,644 11413,648 SPECIAL REVENUE $ 0 206,729 0 0 0 0 1,373 0 190 208,292 TOTALS (memorandum only) 1999 1998 $ 502,660 586,733 0 9,953 25,244 374,497 1021066 7,246 10,707 2,834 11621,940 $ 425,761 344,181 8,402 101,147 279,192 77,325 4,651 18,489 2,022 1,261,170 470,159 6,992 477,151 438,325 499,734 0 499,734 4249147 119,378 0 119,378 107,937 301025 0 30,025 251362 2551357 0 2551357 2351077 2661663 0 2661663 158,176 0 187,270 0 187,270 146,070 1171523 0 117,523 119,747 11946,109 61992 11953,101 11654,841 (532,461) 201,300 (331,161) (393,671) 181,969 0 181,969 53,053 51000 0 51000 0 3571743 0 357,743 348,767 544,712 0 544,712 4019820 12,251 201,300 2131551 8,149 1081394 42,862 1511256 143,107 $ 120,645 $ 244,162 $ 364,807 $ 151,256 i 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, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING $ 4871700 $ 502,660 $ 329,230 380,004 41000 9,953 30,500 25,244 3491050 374,497 551000 102,066 11000 51873 351000 10,707 0 2,644 2911480 11413,648 14,960 50,774 5,953 (51256) 25,447 47,066 4,873 (24,293) 2,644 1223168 469,007 470,159 (1,152) 5011855 499,734 21121 1251860 119,378 61482 301650 301025 625 2771835 2551357 22,478 1211853 266,663 (144,810) 155,905 187,270 (31,365) 113,565 117,523 (3,958) 11796,530 1,946,109 (149,579) (505,050) (532,461) (27,411) 0 181,969 181,969 0 52000 51000 530,808 357,743 (173,065) 5301808 544,712 131904 $ 25,758 12,251 $ (13,507) 1081394 $ 120,645 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 5 0 0 0 0 0 0 0 0 0 1,373 0 0 0 190 3,000 208,292 0 0 0 0 1,373 0 190 205,292 BUDGET $ 487,700 332,230 4,000 30,500 3491050 55,000 1,000 35,000 0 1,294,480 ACTUAL $ 5021660 586,733 9,953 25,244 374,497 102,066 7,246 10,707 2,834 1,621,940 0 6,992 (6,992) 469,007 477,151 0 0 0 501,855 499,734 0 0 0 1251860 1191378 0 0 0 301650 301025 0 0 0 277,835 2551357 0 0 0 121,853 2661663 0 0 0 3,000 0 0 0 U 3,000 N 6,992 201,300 0 0 0 0 201,300 42,862 $ 244,162 0 0 (61992) 198,300 0 0 0 u $ 198,300 155,905 113,565 11796,530 (502,050) 0 0 530,808 530.808 28,758 187,270 117,523 1,9531101 (331,161) 181,969 5,000 357.743 544,712 2131551 151,256 $ 364,807 VARIANCE $ 14,960 254,503 5,953 (5,256) 25,447 47,066 6,246 (24,293) 2,834 327.460 (8,144) 2,121 6,482 625 22,478 (144,810) (31,365) (31958) (156,571) 170,889 181,969 5,000 (173,065) 13.904 184,793 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 Ended September 30,1999 1999 OPERATING REVENUES Charges and Fees $ 3,929,244 $ 3,977,591 OPERATING EXPENSES Personnel Services 6291610 524,132 Purchase of Services 21077,216 21019,451 Materials and Supplies 109,543 79,802 Depreciation 4081547 3191900 Franchise Fees 81,476 831694 TOTAL OPERATING EXPENSES 3,3061392 310269979 OPERATING INCOME NONOPERATING REVENUES (EXPENSES) Interest Income Debt Service Interest, Fees & Discounts Transfers Out TOTAL NONOPERATING REVENUES (EXPENSES) ►I�I��I�L�►�ir RETAINED EARNINGS -BEGINNING RETAINED EARNINGS -ENDING 622,852 60,763 (170,385) (357,743) (467,365) 2,839,383 $ 2,994,870 $ 950,612 49,808 (139,499) (348,767) (438,458) 2,327,229 2,839,383 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, 1999 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 1999 4,013,262 (2,280,413) (619,460) 11113,389 (1,214,097) 11980,513 (11832,210) (200,528) (147,303) (345,694) 1,759,31 62,413 (583,517) 1,498,664 $ 915,147 $ 3,849,882 (2,126,846) (525,388) 11197,648 (1,254,898) 402,184 (141,783) (141,863) 0 (355,787) (1,492,147) 636 (245,863) 1,744,527 $ 1,498,664 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: 14 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 622852 , 408,547 90,258 (I ,095) (13,571) 12,638 (61240) 1,113,389 $ 950,612 319,900 (145,419) 29,457 241977 412 17,709 $ 1,197,648 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 7 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Sanger operates under a Council -Mayor form of government, following the laws of a General Law 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 five directors, all of whom are appointed by the City Council of the City of Sanger and any of whom can be removed from office by the City Council at its' will. The 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. Page - 8 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 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. Page - 9 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 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 Electric System 20 to 50 years Water and sewer system 10 to 50 years Furniture and Equipment 3 to 10 years in amounts straight-line Page - 10 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 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 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. Be Public hearings are conducted to obtain taxpayer comments. C: Prior to October 1, the budget is legally enacted through the i 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, 1999 6. CASH: At year-end the city cash accounts totaled $1,261,969 of which $1,261,869 was held in checking, savings or certificate of deposit accounts at a local bank. Of the Bank balances, $106,770 was covered by federal depository insurance and the remaining $1,155,099 was covered by collateral held by the pledging Bank's agent in the name of the City. There were no uncollateral ized cash accounts. The securities pledged by the City's depository institution are as follows: SECURITY PAR FMV TREASURY NOTES 2,300,000 2,333,781 7. CAPITALIZED INTEREST: The City capitalizes construction period interest when applicable. $19,678 of interest expense related to the construction of a new sewer plant was capitalized during the current fiscal year. 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 $38,200 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. Page - 12 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 11. ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS: Allowance for uncollectable accounts receivable in the Proprietary Fund at September 30, 1999 is $46,869. 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, 1999. 13. 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 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 by Page - 13 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 Employee Retirement Plan: 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 th plan, with interest, an interest. Members can more years of service e sum of the employee's contributions to the d the City -financed monetary credits, with retire at ages sixty and above with ten or m regardless of age. A member with twenty five years of service is vested after ten years. The contribution rate for the employees is 5% of gross earning and the City provides a monthly contribution of 4.05% 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 $41,120. NOTE C: LONG-TERM DEBT: The following is a summar future debt requirements these financial statements. General Long Term Debt: y of the City's Long -Term Debt. The are detailed in schedules included in 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 4 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 National Bank - Original amount of $38,969, the note requires forty eight monthly installments of $914 with the final installment due April 1, 2003. The note bears interest at 6% and has forty two installments remaining at September 30, 1999. The note proceeds were used to purchase various pieces of equipment, which also serve as collateral for the note. Page - 14 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 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 twenty five payments remaining at September 30, 1999. 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 twenty six payments remaining at September 30, 1999. 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 twenty seven payments remaining at September 30, 1999. 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 thirty eight payments remaining at September 30, 1999. 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 Page - 15 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 November 15, at rates ranging from 4.7016 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 1999. Maturities 2000 and 2001 will be retired as scheduled. Texas Utility System Revenue Bonds, Series 1996 - Original amount of $1,0600,000, principal 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. 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 the liability from its accounts. The outstanding principle of the defeased bonds is $1,580,000 at September 30, 1999. The advance refunding reduced total debt service over the next twelve years by approximately $163,459. This results in an economic gain (difference between the present values of the debt IT service payments on the old and new debt) to the City of approximately $130,776. 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 1, 2003s The note bears interest at 6% and has forty two installments remaining at September 30, 1999. The note proceeds were used to purchase various pieces of equipment, which also serve as collateral for the note. CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 Capital Lease - Ford Motor Credit Company - Original balance of $40,432. The lease requires sixty monthly rental payments of $779, with thirty seven payments remaining at September 30, 1999. 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. Capital Lease - Ford Motor Credit Company - Original balance of $32,657. The lease requires thirty six monthly rental payments of $1,401, with twenty six payments remaining at September 30, 1999. 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 twenty seven payments remaining at September 30, 1999s 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 thirty eight payments remaining at September 30, 1999. 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: NOMMS 2001 2002 2003 2004 Future Total Principal $192,247 209,693 174,819 1641671 167,588 885,000 mox, Wei Interest $106,398 92,665 81,293 71,667 62,480 165,_50 Principal $ 301,463 319,578 313,434 284,619 195,000 2.025,000 Interest $ 160,119 143,235 1251096 109,776 97,333 483,265 Page - 17 CITY OF SANGER NOTES TO FINANCIAL STATEMENTS September 30, 1999 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 $1,562,8880 NOTE F: INTERFUND RECEIVABLE AND PAYABLE: At September 30, 1999 the Proprietary Fund owed the General Fund $5,029. The receivable and payable result from one fund paying an expenditure for another fund. NOTE G: BUDGET EXCEPTIONS: Actual capital additions for the Administration, Police, Fire, Street departments exceeded budgeted expenditures (see pages 21). The capital additions were funded from the proceeds of capital leases, which were also not budgeted. In February 2000 the City Council of the City of Sanger amended the original 98/99 budgeted revenues and expenditures. Budgeted property tax revenues were increased $37,700 and Sanitation budgeted revenues were increased $70,000, Budgeted Administrative expenditures were increased as follows, legal services - $7,500, engineering services - $6,000, Enforcement/Inspection services - $19,700. Budgeted Senior Center expenditures were increased $4,500 and Sanitation collection budgeted expenditures were increased $70,000. The net effect of the budget amendments were to increase budgeted revenues and budgeted expenditures by $107,000 each. Page - 18 AND ACCOUNT GROUP STATEMENTS AND SCHEDULES William C. Spore & Company, PC. Certified Public Accountants To the City Council City of Sanger, Texas Our report on our audit of the general purpose financial statement of the City of Sanger, Texas as of September 30, 1999 and for the year then ended appears on page 1 above. That audit was conducted for the purpose of forming an opinion on the general purpose financial statement taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents, pages 19 - 35, 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 taken as a whole. The Disclosure of Year 2000 Issues and Activities on page 36 is not a required part of the general purpose financial statements of the City of Sanger, Texas, but is supplementary information required by the Governmental Accounting Standards Board. We did not audit and do not express an opinion on such information. We were unable to perform audit procedures on the Disclosure of Year 2000 Issues and Activities because of the nature of the subject matter underlying the disclosure requirements and because sufficiently specific criteria regarding the matters to be disclosed have not been established. In addition, we do not provide assurance that the City of Sanger, Texas, is or will become Year 2000 compliant, that the Year 2000 remediations efforts will be successful in whole or in part, or that parties with which the City does business are or will become Year 2000 compliant. i William C. Spore &Company, P.C. January 26, 2000 1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725 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 For the Year Ended S Ended September 30, 1999 ADMINI- TRATION $ 5021660 $ 166,751 9,953 24,499 507 0 5,873 10,707 0 720.950 POLICE L FIRE SANITA- TION 0 $ 0 $ 0 0 0 0 0 0 73,543 0 0 0 0 73,543 0 0 0 85,713 0 0 0 85.713 0 745 287,437 0 0 0 0 288,182 EXPENDITURES General Government 189,936 0 0 280,223 Public Safety 0 3851907 1131737 0 Highways and Streets 0 0 0 0 Health and Welfare 30,025 0 0 0 Culture and Recreation 0 0 0 0 Capital Outlay 29,454 65,994 1161912 0 Debt Service: Principal 91913 21,995 351170 0 Interest 21729 21373 10,895 0 TOTAL EXPENDITURES 262,057 476,269 276,714 280,223 EXCESS REVENUES OVER (UNDER) EXPENDITURES 4581893 (402,726) (191,001) 71959 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Pay. 83765 461548 99,773 0 Sale of Assets 5,000 0 0 0 Transfers In 357,743 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 371,508 46548 99,773 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITU $ 830,401 $ (356,178) $ (91,228) $ 71959 FUND BALANCE -BEGINNING FUND BALANCE -ENDING SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE -19 COMMUNITY SWIMMING & SENIOR STREETS LIBRARY PARKS POOL CENTERS TOTAL $ 0 $ 0 $ 0 $ 0 $ 0 $ 502,660 213,253 0 0 0 0 3801004 0 0 0 0 0 91953 0 0 0 0 0 25,244 0 21110 0 71565 31335 374,497 0 16,353 0 0 0 1021066 0 0 0 0 0 51873 0 0 0 0 0 10,707 0 21099 545 0 0 21644 2131253 201562 545 71565 31335 11413,648 0 0 0 0 0 470,159 0 0 0 0 0 499,644 119,378 0 0 0 0 119,378 0 0 0 0 0 301025 0 67,121 1449672 29,494 14,070 2551357 34,050 61509 131834 0 0 266,753 101,292 18,900 0 0 0 187,270 83,567 17,959 0 0 0 117,523 338,287 110,489 1581506 29,494 14,070 11946,109 (125,034) (89,927) (157,961) (21,929) (10,735) (532,461) 261883 0 0 0 181,969 0 0 0 0 0 51000 0 0 0 0 0 357,743 261,883 0 0 0 0 544,712 108,394 $ 120,645 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 19 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 EXPENDITURES General Government Public Safety Highways and Streets Health and Welfare Culture and Recreation Capital Outlay Debt Service: Principal Interest For the Year Ended September 30,1999 HOTEL/ MOTEL $ 0 11,875 0 0 0 0 787 0 0 12,662 3,809 0 0 0 0 0 0 0 0 TOTAL EXPENDITURES 3,809 EXCESS REVENUES OVER (UNDER) EXPENDITURES 81853 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Pay. 0 Sale of Assets 0 Transfers In 0 TOTAL OTHER FINANCING SOURCES (USES) 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 8,853 FUND BALANCE -BEGINNING FUND BALANCE -ENDING 42,862 ECON DEVEL. 4A $ 0 $ 97,427 0 0 0 0 293 0 190 97,910 1,617 0 0 0 0 0 0 0 0 1,611 96,293 0 0 0 0 96,293 0 ECON DEVEL. 4B 0 $ 97,427 97,720 1,566 0 0 0 0 0 0 0 0 1,566 96,154 0 0 0 0 96,154 El TOTAL 0 206,729 0 0 0 0 1,373 0 190 208,292 6,992 0 0 0 0 0 0 0 0 201,300 0 0 0 0 201,300 42,862 $ 511715 $ 96,293 244,162 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 20 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In ADMINISTRATION BUD I ACTUAL VARIANCE $ 4871700 $ 502,660 $ 149,230 166,751 TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ 41000 9,953 301500 24,499 0 507 0 0 11000 51873 351000 10,707 0 0 707.430 192,707 0 0 30,650 0 28,003 1,500 0 2521860 454,570 0 0 530.808 530,808 985,378 7201950 189,936 0 0 30,025 0 29,454 9,913 2,729 2621057 458,893 8,765 5,000 357.743 371,508 $ 830,401 14,960 17,521 5,953 (6,001) 507 0 4,873 (24,293) 0 13,520 2,771 0 0 625 0 (1,451) (8,413) (2,729) (91197) 4,323 8,765 5,000 73,065 (159,300) $ (154,977) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 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 30,1999 POLICE BUDGET I ACTUAL 1 VARIANCE $ 0 $ 0 0 0 0 0 0 0 55,250 731543 0 0 0 0 0 0 0 0 55,250 731543 EXPENDITURES General Government 0 0 Public Safety 385,640 385,907 Highways and Streets 0 0 Health and Welfare 0 0 Culture and Recreation 0 0 Capital Outlay 41,400 651994 Debt Service: Principal 41905 21,995 Interest 0 21373 TOTAL EXPENDITURES 431,945 476,269 EXCESS REVENUES OVER (UNDER) EXPENDITURES (376,695) (402,726) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 461548 Sale of Assets 0 0 Transfers In 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 461548 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (376,695) $ (356,178) 0 0 0 0 18,293 0 0 0 0 18,293 0 (267) 0 0 0 (24,594) (17,090) (2,373) (44,324) (26,031) 46,548 0 0 46,548 $ 20,517 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30,1999 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 401000 85,713 451713 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 0 0 TOTAL REVENUES 401000 859713 45,713 EXPENDITURES General Government 0 0 0 Public Safety 116,215 113,737 21478 Highways and Streets 0 0 0 Health and Welfare 0 0 0 Culture and Recreation 0 0 0 Capital Outlay 101000 1161912 (106,912) Debt Service: Principal 40,000 35,170 41830 Interest 121500 101895 11605 TOTAL EXPENDITURES 178,715 276,714 (97,999) EXCESS REVENUES OVER (UNDER) EXPENDITURES (138,715) (191,001) (52,286) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 99,773 99,773 Sale of Assets 0 0 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 99,773 99,773 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (1381715) $ (91,228) $ 47,487 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 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 30,1999 SANITATION BUDGET—] ACTUAL VARIANCE $ 0 $ 0 $ 0 0 0 0 0 0 0 0 745 745 279f300 287,437 81137 0 0 0 0 0 0 0 0 0 0 0 0 2791300 288,182 EXPENDITURES General Government 276,300 2801223 Public Safety 0 0 Highways and Streets 0 0 Health and Welfare 0 0 Culture and Recreation 0 0 Capital Outlay 0 0 Debt Service: Principal 0 0 Interest 0 0 TOTAL EXPENDITURES 276,300 2801223 EXCESS REVENUES OVER (UNDER) EXPENDITURES 31000 71959 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 0 Sale of Assets 0 0 Transfers In 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ 31000 $ 71959 (3,923) 0 0 0 0 0 0 0 (31923) 4,959 0 0 0 0 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 STREETS REVENUES BUDGET ACTUAL VARIANCE Property Taxes $ 0 $ 0 $ 0 Nonproperty Taxes 1801000 213,253 33,253 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 180,000 213,253 33,253 EXPENDITURES General Government 0 0 0 Public Safety 0 0 0 Highways and Streets 125,860 1191378 6,482 Health and Welfare 0 0 0 Culture and Recreation 0 0 0 Capital Outlay 201000 341050 (14,050) Debt Service: Principal 901600 1011292 (10,692) Interest 82,875 831567 (692) TOTAL EXPENDITURES 3191335 338287 (18,952) EXCESS REVENUES OVER (UNDER) EXPENDITURES (139,335) (125,034) 14,301 OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 261883 26,883 Sale of Assets 0 0 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 261883 261883 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (139,335) $ (98,151) $ 41,184 ,r SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30,1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING 3 SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 0 LIBRARY BUDGET ACTUAL VARIANCE 0 0 1,500 15,000 0 0 0 16,500 0 0 0 0 69,817 7,450 18,900 18,190 114,357 (97,857) 0 0 0 0 0 0 2,110 16,353 0 0 2,099 20,562 0 0 0 0 67,121 6,509 18,900 17,959 110,489 (89,927) 0 0 0 U $ (97,857) 0 0 0 0 610 1,353 0 0 2,099 4,062 0 0 0 0 2,696 941 231 3,868 7,930 0 0 0 0 $ 7,930 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING ';{ SOURCES (USES) - EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 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 0 545 545 0 545 545 0 0 0 0 0 0 0 0 0 0 0 0 1611629 144,672 16,957 151000 131834 11166 0 0 0 0 0 0 1761629 1581506 18,123 (1761629) (157,961) 181668 0 0 0 0 0 0 0 0 0 0 0 0 $ (1760629) $ (157,961) $ 181668 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 I CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 SWIMMING POOL REVENUES I BUDGET I 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 11,000 71565 (31435) Grants and Intergovernmental 0 0 0 Interest Income 0 0 0 Miscellaneous Income 0 0 0 Donations 0 0 0 TOTAL REVENUES 11,000 71565 (31435) 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 32,014 29,494 21520 Capital Outlay 0 0 0 Debt Service: Principal 0 0 0 Interest 0 0 0 TOTAL EXPENDITURES 32,014 29,494 21520 EXCESS REVENUES OVER (UNDER) EXPENDITURES (21,014) (21,929) (915) OTHER FINANCING SOURCES (USES) Proceeds of Capital Leases/Note Payable 0 0 0 Sale of Assets 0 0 0 Transfers In 0 0 0 TOTAL OTHER FINANCING SOURCES (USES) 0 0 0 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ (21,014) $ (21,929) $ (915) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING 1 SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 0 COMMUNITY & SENIOR CENTERS BUDGET ACTUAL] I VARIANCE 0 0 2,000 0 0 0 0 2,000 0 0 0 0 3,335 0 0 0 0 335 $ 0 0 0 1,335 0 0 0 0 1,335 0 0 0 0 0 0 0 0 0 0 0 0 14,375 14,070 305 0 0 0 14,375 (12,375) 0 0 0 0 0 14,070 (10,735) 0 0 0 0 N 305 1,640 0 0 0 0 $ 1,640 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING ` SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING BUDGET $ 487,700 329,230 4,000 30,500 349,050 55,000 1,000 35,000 0 11291,480 469,007 5011855 125,860 30,650 2771835 1211853 , 155,905 113565 1,796,530 (505,050) 0 0 530,808 TOTAL ACTUAL $ 5021660 380,004 9,953 25,244 3741497 102,066 5,873 10,707 2,644 1,413,648 470,159 4991644 1191378 30,025 2551357 2661753 187,270 117,523 1,946,109 (532,461) 181,969 5,000 357,743 VARIANCE $ 14,960 50,774 5,953 (5,256) 25,447 47,066 4,873 (24,293) 2, 344 122.168 (1,152) 2,211 6,482 625 22,478 (1441900) (31,365) (3,958) (149,579) (27,411) 181,969 5,000 (173,065) 530,808 544,712 13,904 $ 25,758 12,251 $ (13,507) 108,394 $ 120,645 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING � SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES �U : e w1�L�3��x71r•1�11�[�3 FUND BALANCE -ENDING HOTEL/MOTEL BUD I ACTUAL VARIANCE $ 0 $ 0 $ 0 31000 11,875 81875 0 0 0 0 0 0 0 0 0 0 0 0 0 787 787 0 0 0 0 0 0 31000 12,662 91662 0 31809 (31809) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 _ 0 0 31809 (31809) 3,000 89853 51853 0 0 0 0 0 0 0 0 0 0 0 0 $ 31000 81853 $ 5,853 42,862 $ 51,715 � SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES $ FUND BALANCE -BEGINNING FUND BALANCE -ENDING ECONOMIC DEVELOPMENT -SECTION 4A BUDGET_j I ACTUAL j I VARIANCE 0 0 0 0 0 0 0 0 0 $ 97,127 0 0 0 0 293 0 190 97,910 0 97,427 0 0 0 0 293 0 190 97,910 0 1,617 (1,617) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U 96,293 0 0 0 0 96,293 0 $ 96,293 0 0 (1,617) 96,293 0 0 0 U $ 96,293 i SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING ECONOMIC DEVELOPMENT -SECTION 4B BUDG I ACTUAL I VARIANCE 0 0 0 0 0 0 0 0 0 0 $ 0 97,427 0 0 0 0 293 0 0 97,720 $ 0 97,427 97,427 0 11566 (11566) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11566 (1,566) 0 96,154 951861 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 96,154 $ 95,861 u SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22 CITY OF SANGER COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND For the Year Ended September 30, 1999 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 Sale of Assets Transfers In TOTAL OTHER FINANCING � � SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -BEGINNING FUND BALANCE -ENDING TOTAL BUDGET I ACTUAL I L.Y�MFNUIAIMUC $ 0 $ 0 $ 0 31000 206,729 203,729 0 0 0 0 0 0 0 0 0 0 0 0 0 11373 11373 0 0 0 0 190 190 3,000 208,292 2051292 0 61992 (61992) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 61992 (61992) 31000 201,300 1981300 0 0 0 0 0 0 0 0 0_ 0 0 0 $ 31000 201,300 $ 198,300 42,862 $ 244,162 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22 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, 1999 69,370 1,0801071 967,808 461,664 2221147 $ 2,801,060 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE-23 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, 1999 BEGINNING ADDITIONS DELETIONS ENDING $ 711870 $ 0 $ 21500 $ 691370 1,080,071 0 0 11080,071 817,967 149,841 0 967,808 344,752 1161912 0 461,664 222,147 0 0 222,147 $ 2,536,807 $ 266,753 $ 2,500 $ 2,801,060 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE _ 24 CITY OF SANGER SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT ENTERPRISE FUND For the Year Ending September 30, 1999 BE"Illy ADDITIONS DELETION ENDING COST Water System $ 2,553,906 $ 11,622 $ 0 $ 2,565,528 Sewer System 21154,911 11202,389 0 31357,300 Electric System 21414,526 168,596 0 21583,122 Equipment 569,490 287,719 91750 847,459 Furniture & Office Equipment 184,648 61546 0 191,194 Building Improvements 34,433 0 0 34,433 Easement 11500 0 0 11500 TOTAL COST $ 7,913,414 $ 1,676,872 $ 9,750 $ 9,580,536 ACCUMULATED DEPRECIATION Water System $ 9231902 $ 920171 $ 0 $ 11016,073 Sewer System 874,074 861981 0 961,055 Electric System 11312,348 137,496 0 11449,844 Equipment 453,773 76,100 91750 5201123 Furniture & Fixtures 1381060 131688 0 151,748 Building Improvements 151632 21111 0 17,743 Easement 0 0 0 0 TOTAL ACCUMULATED DEPRECIATION $ 31717,789 $ 4081547 $ 9,750 $ 4,116,586 NET PROPERTY, PLANT & EQUIPMENT $ 41195,625 $ 514631950 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 25 CITY OF SANGER STATEMENT OF GENERAL LONG - TERM DEBT September 30, 1999 BOND OBLIGATIONS Series 1994 Certificates of Obligation NOTES PAYABLE Gainesville National Bank CAPITAL LEASES Midwest Bankers Lubbock National Bank Ford Ford Ford TOTAL CAPITAL LEASE OBLIGATIONS ACCRUED COMPENSATED ABSENCES f Accrued Vacation Pay Accrued Sick Pay TOTAL ACCRUED COMPENSATED ABSENCES $ 99,598 24,229 7,870 34,231 73,492 22,500 $ 15,700 $ 1,520,000 34,598 239,420 38,200 $ 1,832,218 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 26 CITY OF SANGER SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT For the Year Ended September 30, 1999 BEGINNING ADDITIONS REDUCTIONS{ ENDING BOND OBLIGATIONS Series 1994 Certificates of Obligation $ 11625,000 $ 0 $ 1051000 $ 11520,000 NOTES PAYABLE Guarantee National Bank $ 0 $ 381968 $ 41370 $ 34,598 CAPITAL LEASES Midwest Bankers $ 115,920 $ 0 $ 161322 $ 99,598 Motorola 71678 0 71678 0 Bank One 51380 0 5,380 0 Lubbock National Bank 321059 0 71830 24,229 Kustom Signal 21000 0 21000 0 Ford 11,283 0 31413 71870 Ford 0 461548 12,317 34,231 Ford 0 96,453 22,961 73,492 TOTAL CAPITAL LEASES $ 174,320 $ 143,001 $ 77,901 $ 239,420 ACCRUED COMPENSATED ABSENCES 'i Accrued Vacation Pay $ 20,000 $ 21500 $ 0 $ 22,500 II Accrued Sick Pay 15,000 700 0 15,700 TOTAL ACCRUED COMPEN. ABSENCES $ 35,000 $ 31200 $ 0 $ 38,200 TOTAL TO BE PROVIDED FOR RETIREMENT OF GENERAL LONG -TERM DEBT $ 1,834,320 $ 185,169 $ 187,271 $ 1,832,218 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 27 CITY OF SANGER DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT September 30, 1999 Series 1994 Certificates of Obligation Year Ending September 30, PRINCIPAL INTEREST 2000 $ 110,000 $ 90590 2001 1201000 82,440 2002 125,000 751720 2003 135,000 681657 2004 1451000 601963 2005 155,000 52,625 2006 165,000 431635 2007 1751000 331900 2008 1901000 23,400 2009 2001000 12,000 $ 1,520,000 $ 544,030 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2000 2001 2002 2003 PRINCIPAL $ 8,359 9,658 10,254 6,327 $ 34,598 Capital Lease -Midwest Bankers Year Ending September 30, 2000 2001 2002 2003 2004 Less Amount Representing Interest LEASE PAYMENT $ 24,105 24,105 24,106 24,106 24,106 $ 1201528 20,930 $ 99,598 Capital Lease - LUBBOCK NATIONAL BANK Year Ending September 30, 2000 2001 2002 2003 Less Amount Representing Interest PRINCIPAL $ 8,069 8,803 8,803 2,201 $ 27,876 3,647 $ 24,229 INTEREST $ 1,696 1,312 716 72 $ 3,796 TOTAL REQUIREMENTS $ 2001690 202,440 200,720 2031657 205,963 207,625 2081635 2081900 213,400 212,000 $ 23064,030 TOTAL REQUIREMENTS $ 10,055 10,970 10,970 6,399 $ 38,394 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 28 CITY OF SANGER DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT September 30, 1999 Capital Lease - FORD MOTOR CREDIT Year Ending September 30, 2000 2001 2002 Less Amount Representing Interest PRINCIPAL $ 4,051 4,051 338 $ 8,440 570 $ 7,870 Capital Lease -FORD MOTOR CREDIT Year Ending September 30, 2000 2001 2002 Less Amount Representing Interest LEASE PAYMENT $ 16,813 16,813 2,802 36,428 2,197 $ 34,231 Capital Lease -FORD MOTOR CREDIT Year Ending LEASE September 30, PAYMENT 2000 $ 34,838 2001 341838 2002 8,709 78,385 Less Amount Representing Interest 4,893 $ 73,492 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 28 CITY OF SANGER SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND For the Year Ended September 30, 1999 REVENUE BOND OBLIGATIONS Series 1991 Series 1996 Series 1999 TOTAL REVENUE BONDS NOTES PAYABLE Guarantee National Bank Guarantee National Bank CAPITAL LEASES Lubbock National Bank Ford Motor Credit Ford Motor Credit Ford Motor Credit TOTAL CAPITAL LEASES TOTAL LONG -TERM DEBT BEGINNING ADDITIONS EDUCTION ENDING $ 1,895,000 $ 0 $ 1,680,000 $ 215,000 11005,000 0 351000 9701000 0 11735,000 0 11735,000 $ 21900,000 $ 11735,000 $ 11715,000 $ 21920,000 $ 3251000 $ $ 651000 $ 260,000 0 1691076 181962 1501114 $ 3251000 $ 169,076 $ 831962 $ 410,114 $ 32,058 $ 0 $ 61672 $ 25,386 33,733 0 71509 26,224 0 32,656 81642 241014 0 43,781 10,425 33,356 $ 65,791 $ 76,437 $ 33,248 $ 108,980 $ 3,290,791 $ 1,980,513 $ 1,832,210 $ 3,439,094 ij SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 29 CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND ISeries 1991 Revenue Bonds Year Ending September 30, 2000 2001 Year Ending September 30, 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PRINCIPAL $ 105,000 1101000 $ 2151000 nqs PRINCIPAL $ 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 $ 970,000 Series 1999 Revenue Refun Year Enq�ng September 30, 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Bonds PRINCIPAL $ 20,000 20,000 140,000 1451000 1501000 1551000 1651000 1701000 1807000 1901000 1951000 205100000 $ 1,735,0 September 30, 1999 INTEREST $ 13,332 6,876 $ 20,208 INTEREST $ 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 $ 450,882 INTEREST 74 $ ,750 73,900 73,050 67,100 60,938 54,562 47,975 40,962 33,653 25,913 17,600 9,020 $ 579,423 TOTAL REQUIREMENTS $ 118,332 116,876 $ 235,208 TOTAL REQUIREMENTS $ 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 $ 1,420,882 TOTAL REQUIREMENTS 94 $ ,750 93,900 213,050 212,100 210,938 209,562 212,975 210,962 2131653 2151913 212,600 214,020 $ 2,3141423 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 'j CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND September 30, 1999 NOTE PAYABLE - GUARANTEE NATIONAL BANK Year Ending September 30, 2000 2001 2002 2003 PRINCIPAL $ 65,000 65,000 65,000 65,000 $ 260,000 INTEREST $ 16,900 12,675 8,450 4,225 $ 42,250 NOTE PAYABLE -GUARANTEE NATIONAL BANK Year Ending September 30, 2000 2001 2002 2003 PRINCIPAL $ 36,271 41,906 44,491 27,446 $ 150,114 Capital Lease - LUBBOCK NATIONAL BANK Year Ending September 30, 2000 2001 2002 2003 Less Amount Representing Interest LEASE PAYMENT $ 8,803 8,803 8,803 2,201 28,610 3,224 $ 25,386 Capital Lease -FORD MOTOR CREDIT Year Ending LEASE September 30, PAYMENT 2000 $ 91344 2001 9,344 2002 9,344 2003 779 28,811 Less Amount Representing Interest 2,587 $ 26,224 INTEREST $ 7,358 5,691 3,106 319 $ 16,474 TOTAL REQUIREMENTS $ 81,900 77,675 73,450 69,225 $ 302,250 TOTAL REQUIREMENTS $ 43,629 47,597 47,597 27,765 $ 166,588 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 CITY OF SANGER DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND September 30, 7999 Capital Lease - FORD MOTOR CREDIT Year Ending September 30, 2000 2001 2002 Less Amount Representing Interest LEASE PAYMENT $ 11,796 11,796 1,967 25,559 1,545 24,014 Capital Lease -FORD MOTOR CREDIT Year Ending LEASE September 30, PAYMENT 2000 $ 15,817 2001 15,817 2002 3,953 35,587 Less Amount Representing Interest 21231 $ 33,356 I SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30 i '' SUPPLEMENTAL INFORMATION CITY OF SANGER GOVERNMENTAL AND PROPRIETARY FUNDS SCHEDULE OF RESTRICTED CASH September 30,1999 GENERAL FUND Police Department Funds $ 229 Park Department Fund 61013 Certificate of Obligation Reserve and I & S Funds 56 ,536 Unspent 1994 Certificate of Obligation Funds 81416 j TOTAL GENERAL FUND $ 71,194 SPECIAL REVENUE FUND 'l Hotel/Motel Fund $ 511715 Economic Developemnt - Section 4A 87,129 Economic Developemnt - Section 4B 86,990 TOTAL SPECIAL REVENUE FUND $ 2251834 ENTERPRISE FUND Revenue Bond I & S Funds Revenue Bond Reserve Funds Revenue Bond Emergency Fund Customer Utility Deposits Unspent 1996 Revenue Bond Funds One Plus Program Safety and Incentive Funds TOTAL ENTERPRISE FUND 75,522 2431782 16,212 97,898 1711529 881 911 $ 606,735 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 31 CITY OF SANGER GOVERNMENTAL AND PROPRIETARY FUNDS SCHEDULE OF RESERVED FUND EQUITIES GENERAL FUND Police Department Fund Park Departmnet Fund Minimum Required Reserves, Interest and Sinking Funds - 1994 Certificate of Obligation Unspent 1994 Bond Proceeds Prepaid Expenses TOTAL GENERAL FUND j SPECIAL REVENUE FUND Hotel/Motel Fund Economic Development -Section 4A Economic Development - Section 4b TOTAL SPECIAL REVENUE FUND September 30, 1999 229 6,013 38,000 8,416 2,412 $ 55,070 51,715 96,293 96,154 $ 244,162 ENTERPRISE FUND Minimum Required Reserves, Interest and Sinking Funds - Revenue Bonds $ 303,649 One Plus Program 881 Safety and Incentive 911 TOTAL ENTERPRISE FUND $ 3051441 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 32 CITY OF SANGER SCHEDULE OF INSURANCE COVERAGE September 30,1999 AMOUNT OF TYPE OF COVERAGE FROM TO COVERAGE CARRIER Business Auto: Liability 10/1/98 10/1/99 3,000,000 Texas Municipal League Physical Damage 10/1/98 10/1/99 Actual Cash Value Texas Municipal League Property Damage 10/1/98 10/1/99 Scheduled Equip. Texas Municipal League 21995,848 Workmen's Compensation Liability - Law Enforcement Liability Errors & Omissions General Liability Mobile Equipment Boiler & Machinery Employee Bond 10/1/98 10/1/99 Statutory Texas Municipal League 10/1/98 10/1/99 1,000,000 Texas Municipal League 10/1/98 10/1/99 11000,000 Texas Municipal League 10/1/98 10/1/99 31000,000 Texas Municipal League 10/1/98 10/1/99 290,115 Texas Municipal League 10/1/98 10/1/99 372,800 Texas Municipal League 6/24/99 6/24/00 101000 Western Surety i SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 33 CLASSIFICATION OF CUSTOMERS Residential Commercial, Demand & City NUMBER OF CONNECTIONS WATER RATES Deposit CITY OF SANGER PROPRIETARY FUND SUPPLEMENTALINFORMATION September 30,1999 WATER 1,731 156 RESIDENTIAL COMMERCIAL 50.00 First 1,000 Gallons (minimum) $ 14.25 1,000 TO 5,000 Gallons $ 1.95 5,000 TO 15,000 Gallons $ 2.15 15,000 TO 30,000 Gallons $ 2.55 Over 30,000 Gallons $ 3.35 ELECTRIC 1,667 313 SEWER RATES RESIDENTIAL COMMERCIAL First 1,000 Gallons (minimum) $ 15.00 $ 21.00 Over 1,000 Gallons $ 1.00 $ 1.00 Maximum $ 25.00 $ 125.00 SEWER 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 GALLONS OF WATER METERED (APPROX.) 207,009,050 � SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 34 I f^ i CITY OF SANGER ANALYSIS OF TAXES RECEIVABLE For the Year Ended September 30,1999 I 1999 ADJUSTED TAX ROLL $ 506,698 Less: Collections and Adjustments 484,054 CURRENT YEAR TAXES RECEIVABLE - END OF YEAR PRIOR YEAR TAXES RECEIVABLE - END OF YEAR TOTAL TAXES RECEIVABLE - END OF YEAR 22,644 46,742 1998 4311649 415,237 16,412 51,802 Assessed Value $ 100,765,297 $ 91,334,817 Tax Rate per $100 $ 0.5028 $ 0.4726 Percent of Current Taxes Collected to Billed 95.53% 96.20% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 1997 $ 407,970 3921929 15,041 45,566 $ 84,764,092 96.31 PAGE - 35 CITY OF SANGER DISCLOSURE OF YEAR 2000 ISSUES AND ACTIVITY September 30, 1999 The Year 2000 Issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the City's operations. The City has completed an inventory of computer systems and other electronic equipment that may be affected by the year 2000 Issue and are necessary to conducting the City's operations and has subjected those systems to the following stages of work to address year 2000 issues. Awareness Stage - Establishing a budget and project plan for dealing with the year 2000 issue. Assessment Stage -Identifying the systems and components for which year 2000 compliance work is needed. Remediation Stage -Making changes to systems and equipment. ValidationlTesting Stage -Validating and testing the changes that were made during the remediation stage. The City of Sanger year 2000 work is in the following stages of work. C =Complete P = In Process AWARENESS ASSESSMENT REMEDIATION VALIDATION/ TESTING Accounting System C C C C Payroll System C C C C Water & Sewer System C C C C Police/Fire/Ambulance Systems C C C C Library System C C C C SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS Page - 36 i 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 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, 1999, and have issued our report thereon dated January 26, 2000, 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, Compliance 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. I William C. Spore & Company, P.C. January 26, 2000 I 1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725 William C. Spore & Company, PC. Certified Public Accountants 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, 1999, 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 Gover•nnaerrt Avditrng Standards, we have issued our report dated January 26, 2000 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 should be completed as soon as possible to assist the City in tracking additions to and removals from the inventory. This perpetual system should be matched to the physical inventory for accuracy and be used to determine the amount and value of parts on hand. The perpetual system should be maintained on a daily basis in order for the City to maximize its benefits. 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, 010447/ ,.. William C. Spore & Company, P.C. January 26, 2000 ,j 1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725