1995 Annual Financial ReportSlEGFIEPTArgy
CITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
TABLE OF CONTENTS
PAGE #
AUDITORS 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 8-16
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND 17
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND - BUDGET AND ACTUAL 18
STATEMENT OF GENERAL FIXED ASSETS 19
SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 20
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 21
STATEMENT OF GENERAL LONG-TERM DEBT 22
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 23
SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 24
SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 24
SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 25
SUPPLEMENTAL INFORMATION
SCHEDULE OF RESTRICTED ASSETS 27
SCHEDULE OF RESERVED FUND EQUITIES 28
SCHEDULE OF INSURANCE COVERAGE 29
ENTERPRISE FUND # OF CUSTOMERS AND RATES 30
ANALYSIS OF PROPERTY TAXES 31
William C. Spore & Company, PC.
Certified Public Accountants
INDEPENDENT AUDITOR�5 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 September 30, 1995,
and for the year then ended, as listed in the table of contents.
These general purpose financial statements are the responsibility
of City of Sanger, Texas, management. Our responsibility is to
express an opinion on these general purpose financial statements
based upon our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general
purpose financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall general purpose
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, 1995,
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.
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 taken as a whole.
William C. Spore & Company, P.C.
Certified Public Accountants
January 29, 1996
1600 Airport Freeway, Suite 208 # Bedford, TX 76022 # 817/545-7725
ELECTED OFFICIALS
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
APPOINTED OFFICIALS
CITY ADMINISTRATOR
CITY SECRETARY
MUNICIPAL COURT JUDGE
CITY ATTORNEY
CITY OF SANGER
CITY OFFICIALS
September 30, 1995
Nel Armstrong
Tommy Kincaid
Joe Bell
Margie Braxton
Glenn Ervin
Jack Richardson
John Hamilton
Rosalie Chavez
Danny Spindle
Ronald Neiman/Louis Nichols
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 2
CITY OF SANGER
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
ASSETS
Cash
Receivables, Net of
Allowances for Uncollectables:
Property Taxes
Nonproperty Taxes
Services
Other
Inventory/Prepaid Expense
Restricted Assets - Cash
Property, Plant and Equipment
Net of Accumulated Depreciation
Amount to be Provided for Retirement
of General Long -Term Debt
TOTAL ASSETS
LIABILITIES
Accounts Payable
Accrued Expenses
Customer Deposits
Deferred Revenues
Long -Term Debt:
Combensated Absences
Notes Payable
Revenue Bonds Payable
Certificate of Obligation 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 LIBILITIES AND
FUND EQUITY
September 30, 1995
GENERAL
0
55,425
1 1,766
0
0
3,116
4631019
0
u
ENTERPRISE
47,432
0
0
3751826
849
110,654
2721463
3,466,235
$ 580,785 $ 4,273,459
0
199,067
4,649
0
55,425
0
0
0
0
0
259,141
0
0
0
0
465,607
(143,963)
321,644
$ 580,785
151,227
79, 222
71,483
0
0
0
2,155,000
0
52,420
2,509,352
100,196
0
291,494
1, 3721417
0
0
1,764,107
$ 4,273,459
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 3
0
GENERAL
FIXED ASSETS
GENERALLONG-
TERM DEBT
0
(memorandum only)
1995 1994
$ 91,891 $ 49,855
0 0 55,425 48,108
0 0 14,766 11,174
0 0 375,826 319,199
0 0 849 31103
0 0 113,770 103,054
0 0 735,482 2,125,326
2,273,121
0 2,355,289
$ 29273,121 $ 21355,289
5,739,356 5,213,797
2,355,289 2,422,102
$ 91482,654 $ 10,295,718
$ 0 $ 0 $ 350,294 160,235
0 0 83,871 86,297
0 0 71,483 67,022
0 0 55,425 48,108
0
0
0
0
0
0
2, 273,121
0
0
0
0
2,273,121
26,000
205,000
0
11900,000
224,289
21355,289
26,000
205,000
2,155,000
1,900,000
276,709
5,123,782
100,196
2,273,121
291,494
1,372,417
465,607
(143,963)
4,358,872
23,500
470,353
2,235,000
1,900,000
126,209
5,116,724
100,196
1,668,245
245,857
1,316,017
1,811,923
6,756
5,178,994
$ 2,273,121 $ 2,355,289 $ 9,482,654 $ 10,295,718
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 3
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1995
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
TOTALREVENUES
EXPENDITURES
General Government
Public Safety
Hiways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
1995 1994
$ 3511547 $ 337,362
250,426 214,134
6,367 11,283
22,776 24,613
234,670 205,870
35,974 49,241
84,359 14,200
81667 6,146
58,570 51,335
1,053,356 914,184
427,943 400,103
308,566 320,970
1,416,832 29%279
17,307 13,327
78,640 88,259
604,876 155t802
297,813 451,516
167,725 46,457
3,319,702 1,775,713
(2,266,346) (861,529)
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued 0 1,900,000
Proceeds of Capital Leases/Notes Payable 228,500 467,523
Transfers In 540,811 400,757
TOTAL OTHER FINANCING
SOURCES (USES) 769,311 21768,280
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES (11497,035) 11906,751
FUND BALANCE - BEGINNING 11818,679 (88,072)
FUND BALANCE -ENDING
$ 321,644 $ 11818,679
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 4
i'
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September, 30, 1995
REVENUES BUDGET ACTUAL VARIANC�
Property Taxes $ 345,227 $ 351$47 $ 61320
Nonproperty Taxes 219,250 250,426 31,176
Penalties and Interest on
Deliquent Taxes 11,000 61367 (41633)
License and Permits 19,600 22,776 31176
Fees and Services 209,400 234,670 25,270
Grants and Intergovernmental 33,500 35,974 21474
Interest Income 11750 84,359 82,609
Miscellaneous Income 17,000 8,667 (81333)
Donations 0 58,570 58,570
TOTAL REVENUES 856,727 11053,356 196,629
EXPENDITURES
General Government 375,464 427,943 (52,479)
Public Safety 320,062 308,566 11,496
Hiways and Streets 101,716 11416,832 (11315,116)
Health and Welfare 17,620 17,307 313
Culture and Recreation 96,644 78,640 18,004
Capital Outlay 38,475 604,876 (566,401)
Debt Service:
Principal 246,142 2970813 (51,671)
Interest 139,055 167,725 (28,670)
TOTAL EXPENDITURES 1,335,178 31319,702 (11984,524)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (478,451) (21266,346) (1$787,895)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases 0 228,500 228,500
Transfers In 483,551 540,811 57,260
TOTAL OTHER FINANCING
SOURCES (USES) 483,551 769,311 285,760
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 51100 (11497,035) $ (1,502,135)
FUND BALANCE - BEGINNING 11818,679
FUND BALANCE -ENDING
$ 321,644
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 5
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND
For the Year Ended September so, , 995
1995
OPERATING REVENUES
Charges and Fees $ 3,120,834 $
OPERATING EXPENSES
1994
2,899,777
Personnel Services 474,890 502,407
Purchase of Services 11514,747 11431,368
Materials and Supplies 73,073 64,719
Depreciation 244,889 241,576
Franchise Fees 69,031 64,532
TOTAL OPERATING EXPENSES 21376,630 21304,602
OPERATING INCOME 744,204 595,175
NONOPERATING REVENUES (EXPENSES)
Interest Income
Debt Service Interest, Fees & Discounts
Transfers Out
TOTAL NONOPERATING REVENUES
(EXPENSES)
NET INCOME
RETAINED EARNINGS -BEGINNING
RETAINED EARNINGS -ENDING
20,001
(151,357)
(540,811)
12,097
(159,965)
(400,757)
(672,167) (548,625)
72,037
1,591,874
$ 1,663,911 $
1,545,324
1,591,874
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 6
CITY OF SANGER
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
For the Year Ended September 30, 1994
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 31068,668 $ 21907,356
Cash Payments to Suppliers for Goods
and Services (11640,660) (11567,838)
Cash Payments for Employees Services (475,251) (492,109)
NET CASH PROVIDED BY OPERATING ACTIVITIES 952,757 847,409
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets (165,572) (153,678)
Additions to Long -Term Debt 0 21,340
Principal Paid on Bonds and Notes (125,540) (113,860)
Interest Paid on Bonds and Notes (154,118) (160,399)
Cash Transfered to Other Funds (540,811) (400,757)
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (986,041) (807,354)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 22,255 91341
NET INCREASE (DECREASE) IN CASH
CASH -BEGINNING OF YEAR
CASH -END OF YEAR
Operating Income
(11,029)
330,924
49,396
281,528
$ 319,895 $ 330,924
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
204
244,889
(56,627)
(71600)
22,968
462
E
4,461
$ 952,757 $
595,175
241, 576
1,132
8,820
(16,334)
10,593
6,447
847,409
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sanger operates under a Council -Mayor
government, following the laws of a General Law City as
the State of Texas. The City provides the following
public safety police, fire and ambulance, parks,
sanitation, a public library , senior center, community
general administrative services along with water,
electrical services.
form of
defined by
services:
streets,
center and
sewer and
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governments. The following
is a summary of the more significant policies.
1. REPORTING ENTITY:
The City, for financial reporting purposes, includes all of the
funds and account groups relevant to the City of Sanger. The
financial statements presented herein do not include agencies which
have been formed under applicable state laws or separate and
distinct units of government apart from the City of Sanger.
There are no separately administered organizations that are
controlled or dependent on the City.
2. FUND ACCOUNTING:
The accounts of the City are organized on the basis of funds or
account groups, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for
by providing a separate set of self -balancing accounts which are
comprised of each fund's assets, liabilities, fund equity, revenues
and expenditures or expenses, as appropriate. Governmental
resources are allocated to and for individual funds based upon the
purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped,
in the financial statements in this report, into two generic fund
types and two broad fund categories as follows:
GOVERNMENTAL FUND TYPES
General Fund
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
Page - 8
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
PROPRIETARY FUND TYPES
Enterprise Funds
Enterprise funds are used to account for operations (a) that are
financed and operated in a manor similar to private business
enterprises - where the intent of the governing body is that costs
(expenses, including depreciation) of providing goods or services
to the general public on a continuing basis be financed or
recovered primarily through user charges or (b) where the governing
body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or
other purposes.
3. PROPERTY, PLANT AND EQUIPMENT AND LONG-TERM LIABILITIES:
The accounting and reporting treatment applied to property plant
and equipment and long-term liabilities associated with a fund are
determined by its measurement focus. All governmental fund types
are accounted for on a "financial flow" measurement focus. This
means that only current assets and current liabilities are
generally included on their balance sheets. Their reported fund
balance is considered a measure of "available spendable resources".
Governmental fund operating statements present increases (revenue
and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said
to present a summary of sources and uses of "available spendable
resources" during a period.
Plant, property and equipment used in governmental fund type
operations are accounted for in the General Fixed Assets Account
Group, rather than in governmental funds. No depreciation has been
provided on such property, plant and equipment.
All property, plant and equipment are valued at historical cost or
estimated historical cost if actual cost is not available. Donated
property, plant and equipment are valued at their estimated fair
value on the date donated.
Public domain "infrastructure" general fixed 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.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
Special reporting treatments are applied to governmental fund
prepaid expenses to indicate that they do not represent "available
spendable resources", even though they are a component of net
current assets. Such amounts are generally offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure
recognition for governmental fund types is limited to exclude
amounts represented by non -current liabilities. Since they do not
affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the
General Long -Term Debt Account Group.
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all
assets and liabilities (whether current or noncurrent) associated
with their activity are included on their balance sheets. Their
report fund equity (net total assets) is segregated into
contributed capital and retained earnings components.
Depreciation is provided in the proprietary funds in amounts
sufficient to relate the cost of the depreciable assets, to
operations over their estimated service lives on the straight-line
basis. The service lives by type are as follows:
Electric System 20 to 50 years
Water and sewer system 10 to 50 years
Furniture and Equipment 3 to 10 years
4. BASIS OF ACCOUNTING:
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of
the measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified
accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Gross
receipts and sales taxes are considered "measurable" when in the
hands of intermediary collecting governments and are recognized as
revenues at that time. All major revenues are susceptible to
accrual.
Expenditures are generally recognized under the modified basis of
accounting when the related fund liability is incurred. Exceptions
to this general rule include accumulated unpaid vacation and sick
time which are not accrued and principal and interest on general
long-term debt which is recognized when due.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
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 11 the City Administrator submits to the City
Council a proposed operating budget for the fiscal year commencing
the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
B: Public hearings are conducted to obtain taxpayer comments.
C: Prior to October 1, the budget is legally enacted through the
passage of an ordinance.
D: The City Manager is authorized to transfer budgeted amounts
between departments within any fund; any revisions that alter the
total expenditures of any fund must be approved by the City
Council.
E: Budgets for the General and Proprietary Funds are adopted on a
basis consistent with generally accepted accounting principles
(GAAP) .
F: Unused appropriations for all of the above annually budgeted
funds lapse at the end of the fiscal year.
At year-end the City's cash accounts totalled $827,373 of which
$827,273 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $111,616 was
covered by federal depository insurance and the remaining $715,657
was covered by collateral held by the pledging Bank's agent in the
name of the City. There were no uncollateralized cash accounts.
The securities pledged by the City's depository institution are as
follows:
SECURITY PAR
TREASURY NOTE 11900,000
FMV
1,981,938
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
7. CAPITALIZED INTEREST:
The City capitalizes construction period interest when applicable.
There were no capitalized interest costs 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 $26,000 of accrued
vacation and sick leave has been recorded in the General Long -Term
Debt Account Group, representing the City's commitment to fund such
costs from future operations. Proprietary funds accrue vacation
leave in the period they are earned.
10. REVENUE RECOGNITION - PROPERTY TAXES:
Property taxes attach as an enforceable lien on property as of
January 1. Taxes are levied on October J. and are due and payable
at that time. All unpaid taxed levied October 1 become delinquent
February 1 of the following year.
Property tax revenues are recognized when they become available.
Delinquent taxes are considered fully collectable and, therefore,
no allowance for doubtful taxes is provided.
11. ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS:
Allowance for uncollectible accounts receivable in the Proprietary
Fund at September 30, 1995 is $31,268.
12. 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
eliminations have not been made in the aggregation of this data.
i
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
NOTE B: RETIREMENT PLANS:
Firemen's Pension Fund:
The City's firemen are covered
contributory plan is operated
and Retirement Funds. The
September 30, 1995 was $2,520.
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 belongs to the Texas Municipal Retirement System, a
retirement and disability pension system for municipal employees in
the State of Texas. The plan is administered in accordance with
the Texas Municipal Retirement System Act and is governed by a
Board of Trustees appointed by the governor of the State of Texas.
The City has elected to have monthly contributions from the City's
employees in the amount of 5% of their gross earnings with the City
providing a monthly contribution of 4.19% of the monthly gross
earnings. Employee contributions are tax deferred and not subject
to federal income tax until they are withdrawn. The City's
contributions for the fiscal year totalled $28,390.
NOTE C: LONG-TERM DEBT:
The following is a summar
future debt requirements
these financial statementso
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
$1,900,000I 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 to Guaranty National Bank ($205,000)- The note bears
interest at .5% below prime rate and matures September 30, 1996.
The note proceeds were used to payoff the Combination Tax and
Utility System Junior Lien Revenue Certificates of Obligation,
Series 1986 in conjunction with the issuing of the 1994
Certificates of Obligation.
Capital Lease - Associates Commercial Corporation - original
balance of $30,066. The lease requires forty e0ght monthly rental
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
payments of $694.04, with thirty payments remaining at September
30, 1995. The City has a purchase option during the term of the
lease to purchase the equipment at a designated purchase option
rice. The City intends to exerci
pse this option at the end of the
lease term. The proceeds of the lease were used to purchase a Dump
Truck. The equipment is security for the lease.
Capital Lease - General Motors Acceptance Corporation - Original
balance of $22,717. The lease requires forty eight monthly rental
payments of $548.39, with thirty seven payments remaining at
September 30, 1995, The City has a purchase option during the term
of the lease to purchase the equipment at a designated purchase
option price. The City intends to exercise this option at the end
of the lease term. The proceeds of the lease were used to purchase
a vehicle for the fire department. The vehicle is security for the
lease.
Capital Lease - Midwest Bankers Group - Original balance of
$1721179. The lease requires a down payment of $13,150 (paid in
February 1995) plus nine annual rental payments of $24,105
beginning in February 1996. The City has a purchase option during
the term of the lease to purchase the equipment at a designated
early term/purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase a new pumper fire truck. The truck is
security for the lease.
Capital Lease - Motorola Communications and Electronic, -
Original balance of $33,654. The lease requires five annual rental
payments of $8,219 beginning in August 1995. The City has a
purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase radio communication equipment.
The equipment is security for the lease.
Proprietary Fund:
Texas Utility System Refunding and Improvement Revenue Bonds,
Series 1991 - Original amount of $2,230,000, principal paid
annually on May 15, Interest paid semi-annually on May 15 and
November 15, at rates ranging from 4.70% to 7.15%. The bonds were
issued to provide funds sufficient to refund all of the City's
outstanding Series 1976, 1977, and 1985 Bonds plus an additional
$800,000 for improvements to the City's Waterworks System. The
refunding of the Bonds provided for lower future debt service
requirements due to reduced interest rates. The Bonds are to be
repaid from and are secured by the Enterprise Fund Net Revenues,
The Bond Obligations require that certain cash reserve accounts be
maintained.
i
Page - 14
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
Capital Lease - Kansas State Bank - Original balance of $83,333.
The lease requires forty eight monthly rental payments of
$2,002.39, with five payments remaining at September 30, 1995. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase a Digger Derrick unit.
The equipment is security for the lease.
Capital Lease - Case Credit Corporation - Original balance of
$38,750. The lease requires forty eight monthly rental payments of
$939,74, with twenty payments remaining at September 30, 1995. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase a trencher. The
equipment is security for the lease.
Capital Lease - Ford Motor Credit - Original balance of $31,618.
The lease requires forty eight monthly rental payments of $752.73,
with sixteen payments remaining at September 30, 1995. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase a backhoe/loader. The equipment
is security for the lease.
Capital Lease - Maroon Cattle Company (Purchased from Diversified
Lenders) - Original balance of $21,340. The lease requires forty
Bight monthly rental payments of $506.08, with thirty one payments
remaining at September 30, 1995. The City has a purchase option
during the term of the lease to purchase the equipment at a
designated purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase a Jet Sprayer. 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.
Year Principal Interest Principal Interest
1996 $322,568 $152,305 $ 118,862 $ 145,933
1997 124,736 125,312 1001091 139,384
1998 133,387 116,295 93,467 134,126
1999 129,000 106,889 1001000 128,830
2000 127,418 97,377 105,000 122,830
Future 1,492,180 467,584 1,690,000 788,615
Total $2.329,289 $1,065,762 $2,207,420 $1,459,718
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
NOTE E: PRIOR -YEAR DEFEASANCE OF DEBT:
In 1992, the City defeased its Series 1985 Revenue Bonds by placing
the proceeds of new bonds in an irrevocable trust to provide for
all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds
are not included in the City's financial statements. On September
30, 1995, $725,000 of bonds outstanding are considered defeased.
NOTE F: PURCHASE COMMITMENT:
On January 7, 1985 the City entered into a ten 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. The City is currently negotiating a renewal of the
power agreement. Power purchased for the current fiscal year
totaled $1,271,868.
NOTE G: BUDGET EXCEPTIONS:
Police department capital outlay expenditures exceeded budgeted
capital outlay by $34,9149 These unbudgeted expenditures were
financed from the proceeds of a capital lease.
Fire department capital outlay expenditures exceeded budgeted
capital outlay by $1951517. These unbudgeted expenditures were
financed from the proceeds of a capital lease.
Street department expenditures exceeded budgeted expenditures by
$1,315,116. These unbudgeted expenditures were paid for from bond
proceeds collected in the prior fiscal year.
Street department debt service expenditures exceeded budgeted
expenditures by $80,279. The unbudgeted expenditures were funded
by transfers from the proprietary fund. Actual transfers in from
the proprietary fund exceeded budgeted transfers by $73,774.
Library department capital outlay expenditures exceeded budgeted
capital outlay by $339,937. These unbudgeted expenditures were
paid for from bond proceeds collected in the prior fiscal year and
from donations to the Library in the amount of $48,570.
NOTE H: INTERFUND RECEIVABLE AND PAYABLE:
Permanent transfers were made to clear all interfund receivables
and payables occurring during the year. The receivable and
payables result from one fund paying an expenditure for another
fund.
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1994
REVENUES
Property Taxes $ 351,547 $ 0 $ 0 $ 0
Nonproperty Taxes 116,042 0 0 0
Penalties and Interest on
Deliquent Taxes 61367 0 0 0
License and Permits 936 12,587 0 0
Fees and Services 41561 0 13,000 0
Grants and Intergovernmental 41200 0 0 16,390
Interest Income 11889 0 95 0
Miscellaneous Income 81667 0 0 0
Donations 0 0 0 0
TOTAL REVENUES 494,209 12,587 13,095 161390
EXPENDITURES
General Government 144,006 44,462 0 0
Public Safety 0 0 263,125 45,441
Hiways and Streets 0 0 0 0
Health and Welfare 17,307 0 0 0
Culture and Recreation 0 0 0 0
Capital Outlay 880 0 49,864 198,517
Debt Service,
Principal 0 0 51846 17,870
Interest 0 0 21373 1,312
TOTAL EXPENDITURES 162,193 44,462 321,208 263,140
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 332,016 (31,875) (308,113) (246,750)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases 0 0 33,654 194,846
Transfers In 540,811 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 540,811 0 33,654 194,846
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 872,827 $ (31,875) $ (274,459) $ (51,904)
FUND BALANCE -BEGINNING
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 351$47
0 134,384 0 0 0 0 250,426
0 0 0 0 0 0 6,367
81118 0 11135 0 0 0 22,776
206,034 0 0 0 11,075 0 234,670
0 0 15,384 0 0 0 35,974
0 82,375 0 0 0 0 84,359
0 0 0 0 0 0 8,667
0 0 48,570 10,000 0 0 58,570
214,152 216,759 65,089 10,000 11,075 0 11053,356
239,475 0 0 0 0 0 427,943
0 0 0 0 0 0 308,566
0 11416,832 0 0 0 0 11416,832
0 0 0 0 0 0 17,307
0 0 29,616 91048 29,282 10,694 78,640
0 525 346,137 31940 31769 11244 604,876
0 274,097 0 0 0 0 297,813
0 138,979 25,061 0 0 0 167,725
239,475 1,830,433 400,814 12,988 33,051 11,938 3,319,702
(25,323) (1,613,674) (335,725) (2,988) (21,976) (11,938) (2,266,346)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
228,500
540,811
769,311
(1,497,035)
1,818,679
$ 321,644
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 17
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 3o, mfo
REVENUES I BUDGET ACTUAL VARIANCE
Property Taxes $ 345,227 $ 351,547 $ 61320
Nonproperty Taxes 98,250 116,042 17,792
Penalties and Interest on
Deliquent Taxes 11,000 61367 (41633)
License and Permits 11800 936 (864)
Fees and Services 0 41561 4$61
Grants and Intergovernmental 0 41200 41200
Interest Income 11750 11889 139
Miscellaneous Income 17,000 81667 (81333)
Donations 0 0 0
TOTAL REVENUES 475,027 494,209 19,182
EXPENDITURES
General Government 145,311 144,006 11305
Public Safety 0 0 0
Hiways and Streets 0 0 0
Health and Welfare 17,620 17,307 313
Culture and Recreation 0 0 0
Capital Outlay 11100 880 220
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 164,031 162,193 11838
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 310,996 332,016 21,020
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases 0 0 0
Transfers In 483,551 540,811 57,260
TOTAL OTHER FINANCING
SOURCES (USES) 483,551 540,811 57,260
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 794,547 $ 872,827 $ 78,280
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
BUDG I VARIANCE
$ 0 $ 0 $ 0 $
ma
0 0
0 0
12,000 12,587
0 0
0 0
0 0
0 0
0 0
12,000 12,587
0
587
0
0
0
0
0
�l
BUDGET ACTUAL
0
0
16,000
0
0
0
0
16,000
0
0
13,000
0
95
0
0
13,095
VARIANCE
0
0
0
0
(31000)
0
95
0
0
(2,905)
43,809 44,462 (653) 0 0 0
0 0 0 270,247 263,125 71122
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
7,350 0 71350 14,950 49,864 (34,914)
0 0 0 71200 51846 11354
0 0 0 0 21373 (21373)
51,159 44,462 61697 292,397 321,208 (28,811)
(39,159) (31,875) 71284 (276,397) (308,113) (31,716)
0 0 0 0 33,654 33,654
0 0 0 0 0 0
0 0
$ (3%159) $ (31,875) $
0 0 33,654
7,284 $ (276,397) $ (274,459) $
33,654
1,938
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 3o, i =7
REVENUES 1 VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 0 0 0
Penalties and Interest on
Deliquent Taxes 0 0 0
License and Permits 0 0 0
Fees and Services 0 0 0
Grants and Intergovernmental 18,000 16,390 (11610)
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 18,000 16,390 (11610)
EXPENDITURES
General Government 0 0 0
Public Safety 49,815 45,441 41374
Hiways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 31000 198,517 (195,517)
Debt Service,
Principal 20,200 17,870 21330
Interest 0 11312 (11312)
TOTAL EXPENDITURES 73,015 263,140 (190,125)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (55,015) (246,750) (191,735)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases 0 194,846 194,846
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
0 194,846 194,846
$ (51,904) $ 31111
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
8 L - a6*ed a3H0t/11`d S310N aN`d i8Od3H SUNd1NnOOO f 33S
(9817'862:' L) $ (t7L9`E L9' L) $ (88 L'9 LE) $ (6L L'LZ) $ (EZE`9Z) $ 998,1 $
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(98b'86Z' L) (bL9`E L9' L) (88 L`9 LE) (6L L`LZ) (EZE`9Z) 998` l
(9tiZ'�6E' L) ££�`0E8' l 88L'9Eb (L£L`E9) 9Lb`6£Z t?tvs'98L
(tp36'tpZ) 6L6' 8£ L 990'tp L L 0 0 0
(996,99) L60't?LZ ZtbL'8 LZ 0 0 0
09 L' L 9Z9 9L9` L 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
(9LL'9L£`L) 2;£8'9Ltp`L 9LL'101 0 0 0
0 0 0 0 0 0
0 0 0 (LE L `£9) 9Lt7`6£Z tptp£'98 L
69L`96 69L'9 LZ 000' LZ L Z96'93 Z9 L't7 LZ 00Z`88 L
0 0 0 0 0 0
0 0 0 0 0 0
9LE'38 9LE'Z8 0 0 0 0
0 0 0 0 0 0
0 0 0 tF£9`E3 tF60,902; 00t7`Z8 L
0 0 0 8 L£`Z 8 L L'8 008'9
0 0 0 0 0 0
ty8E'E L ti8E'bE L 000` LZ L 0 0 0
0 $ 0 $ 0 $ 0 $ 0 $ 0 $
30NVIIJVA mlvni0`d 1 1390 30Nvi'HvA Nivniod l3Jans
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1995
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
Hiways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
:XCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases
Transfers In
BUDGET j I AL;I UALJ I VARIANCE
$ 0 $ 0 $ 0
0 0 0
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
0 0 0
0 11135 11135
0 0 0
15,500 15,384 (116)
0 0 0
0 0 0
0 48,570 48,570
159500 65,089 49,589
0 0 0
0 0 0
0 0 0
0 0 0
37,060 29,616 71444
61200 346,137 (339,937)
0 0 0
25,000 25,061 (61)
68,260 400,814 (332,554)
(52,760) (335,725) (282,965)
0 0 0
0 0 0
0 0 0
(52,760) $ (335,725) $ (282,965)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
8 L - 06ud (13HOViid S310N aN`d iHOd3d S,iNViNn000V 33S
(ZtlO'£) $ (9L6' LZ) $ (t7£6'81) $ L£5'6 $ (886'Z) $ (9Z9'ZL) $
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
(ZtbO'£) (9L6' LZ) (tb£6'81) L£9'6 (886'Z) (SZ5`ZL)
(L L L'£) L90'££ b£6'6Z (£9ti) 886`Z L 5Z9`Z L
0 0 0 0 0 0
0 0 0 0 0 0
(69L`£) 69L'£ 0 (Otrz' L) Otb6'£ OOL`Z
Z99 Z8Z'6Z b£6'6Z LLL 8t70'6 9Z8'6
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
SL 5L0' L L 000' L L 000'0 L 000'0 L 0
0 0 0 000'OL 000'OL 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
9L 9L0` L L 000` L L 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 $ 0 $ 0 $
30
NdIbdA �t/fllOt/ 1390f18 3oNdIddA 1df11�V 13paflB
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, i ms
REVENUES BUDGET ACTUA� VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 0 0 0
Penalties and Interest on
Deliquent 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 0 0 0
EXPENDITURES
General Government 0 0 0
Public Safety 0 0 0
Hiways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 19,825 10,694 91131
Capital Outlay 11500 11244 256
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 21,325 11,938 99387
;XCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
(21,325)
0
0
(11,938)
0
0
9,387
0
0
(21,325) $ (11,938) $ 9,387
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
BUDG I ACTUAL j I VARIANCE
$ 345,227 $ 351,547 $ 6,320
219,250 250,426 31,176
111000 61367
19,600 22,776 31176
209,400 234,670 25,270
33,500 35,974 21474
11750 84,359 8209
17,000 8,667 (8,333)
0 58,570 58,570
856,727 1,053,356 196,629
375,464 427,943 (52,479)
320,062 308,566 11,496
101,716 11416,832 (11315,116)
17,620 17,307 313
96,644 78,640 18,004
389475 604,876 (566,401)
246,142 297,813 (51,671)
139,055 1671725 (28,670)
11335,178 31319,702 (11984,524)
(478,451)
0
483,551
483,551
(2,266,346) (1,787,895)
228,500 228,500
540,811 57,260
769,311
285,760
(1,497,035) $ (1,5021135)
1,818,679
$ 321,644
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
Land
Buildings
Equipment
Fire Equipment
Swimming Pool
Improvements
INVESTMENT IN GENERAL
FIXED ASSETS
CITY OF SANGER
STATEMENT OF GENERAL FIXED ASSETS
For the Year Ending September 30, 1995
71,870
5051947
665,115
3281743
01349
481,097
$ 2,273,121
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 19
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For the Year Ending September 30, lava
COST BEGINNING ADDITIONS DELETIONS ENDINU
Land
Buildings 208,715 297,232 0 505,947
Equipment 562,216 102,899 0 665,115
Fire Equipment 130,226 198,517 0 328,743
Swimming Pool 216,580 31769 0 220,349
Improvements 478,638 21459 0 481,097
INVESTMENT IN GENERAL
FIXED ASSETS $ 11668,245 $ 604,876 $ 0 $ 21273,121
I,
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 20
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30, 1995
BEGINNING ! I DELETION.Sj I ENDING
COST
Water System $ 1,897,677 $ 0 $ 0 $ 11897,677
Sewer System 11939,961 11450 0 11941,411
Electric System 1,752,513 141,420 0 1,893,933
Equipment 433,170 21,185 0 454,355
Furniture & Fixtures 128,238 11518 0 129,756
Building Improvements 14,623 0 0 14,623
Easement 11500 0 0 11500
TOTAL COST $ 6,167,682 $ 165,573 $ 0 $ 6,333,255
ACCUMULATED DEPRECIATION
Water System $ 631,843 $ 67,886 $ 0 $ 699,729
Sewer System 641,322 54,038 0 695,360
Electric System 954,185 69,935 0 11024,120
Equipment 272,174 46,775 0 318,949
Furniture & Fixtures 113,833 41793 0 118,626
Building Improvements 81774 11462 0 10,236
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 21622,131 $ 244,889 $ 0 $ 21867,020
NET PROPERTY, PLANT &EQUIPMENT $ 3,545,551
$ 3,466,235
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 21
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1995
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
NOTES PAYABLE
Note Payable - Gainesville National Bank
TOTAL NOTES PAYABLE
CAPITAL LEASES
Associates Commercial Corp.
G.M.A.C.
Midwest Bankers
Motorola
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
$ 205,000
19,505
171997
1581979
27,808
14,000
$ 12,000
$ 1,900,000
205,000
224,289
26,000
$ 2,355,289
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 22
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 1995
BEGINNING DDITIONI IREDUCTIONS ENDING
BOND OBLIGATIONS
Series 1994 Certificates of Obligation $ 1,900,000 $ 0 $
TOTAL BOND OBLIGATIONS $ 11900,000 $ 0 $
NOTES PAYABLE
Note Payable - Gainesville National Bank $ 265,353 $ 0 $
Note Payable -Gainesville National Bank
TOTAL NOTES PAYABLE
CAPITAL LEASES
Ford Motor Credit
Associates Commercial Corp.
G.M.A.C.
Midwest Bankers
Motorola
TOTAL CAPITAL LEASES
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
205.000
0 $ 1,900,000
0 $ 1,900,000
265,353 $ 0
0 205,000
$ 470,353 $ 0 $ 265,353 $ 205,000
26,635 0 7,130 19,505
0 22,717 4,720 17,997
0 172,129 13,150 158,979
0 33,654 51846 27,808
$ 28,249 $ 228,500 $ 32,460 $
Accrued Sick Pay
9,700 2,300 0
TOTAL ACCRUED COMPEN. ABSENCES $ 23,500 $ 21500 $ 0 $
224289
,
14,000
12,000
26,000
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT $ 2,422,102 $ 231,000 $ 297,813 $ 2,355,289
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 23
i
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1995
Series 1994 Certificates of Obligation
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 85,000 $ 119,190 $ 204,190
1997 90,000 112,815 202,815
1998 100,000 106,065 206,065
1999 105,000 98,565 203,565
2000 110,000 90,690 200,690
2001 120,000 82,440 202,440
2002 125,000 75,720 200,720
2003 135,000 68,657 203,657
2004 145,000 60,963 205,963
2005 155,000 52,625 207,625
2006 165,000 432635 208,635
2007 175,000 33,900 208,900
2008 190,000 23,400 213,400
2009 200,000 12,000 212,000
$ 1,900,000 $ 980,665 $ 2,880,665
Note Payable - Gainseville National Bank
Ending
September 30,
PRINCIPAL
205,000 $
$ 205,000
INTEREST
Capital Lease -Associates Commercial Corp.
TOTAL
REQUIREMENTS
223,450
223,450
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 71505 $ 823 $ 81328
1997 7,897 431 8,328
1998 41103 61 41164
$ 19,505 $ 11315 $ 20,820
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1995
Capital Lease - G.M.A.C.
Year Ending
September 30, PRINCIPAL
1996 $ 50374 $
1997 51806
1998 6,817
$ 17,997 $
Capital Lease -Midwest Bankers
INTEREST
775
312
2,294 $
TOTAL
REQUIREMENTS
6,581
6,581
7,129
20,291
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 13,431 $ 10,674 $ 24,105
1997 14,333 91772 24,105
1998 15,295 81810 24,105
1999 16,322 71783 24,105
2000 17,418 61687 24,105
2001 18,588 51518 24,106
2002 19,835 4,271 24,106
2003 21,168 2,938 24,106
2004 22,589 11517 24,106
$ 158,979 $ 57,970 $ 216,949
Capital Lease -Motorola
Year Ending
September 30,
TOTAL
PRINCIPAL INTEREST REQUIREMENTS
1996 $ 6,258 $ 1,961 $ 8,219
1997 6,700 1,519 8,219
1998 71172 11047 8,219
1999 7,678 541 81219
32,876
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1995
Total Bond Obligations and Notes Payable
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 322,568 $ 152,305 $ 4741873
1997 124,736 125,312 250,048
1998 133,387 116,295 249,682
1999 129,000 106,889 235,889
2000 127,418 97,377 224,795
2001 138,588 87,958 226,546
2002 144,835 79,991 224,826
2003 156,168 71,595 227,763
2004 167,589 62,480 230,069
2005 155,000 52,625 207,625
2006 165,000 43,635 208,635
2007 175,000 33,900 208,900
2008 190,000 23,400 213,400
2009 200,000 12,000 212,000
$ 2,329,289 $ 1,065,762 $ 3,395,051
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 24
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 1995
REVENUE BOND OBLIGATIONS
Series 1976
Series 1991
TOTAL REVENUE BONDS
CAPITAL LEASES
Kansas State Bank
Case Credit Corporation
Ford Motor Credit
Maroon Cattle Co.
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEGINNING IREDUCTIPNSI ENDING
$ 551000 $ 0 $ 55,000 $ 0
21180,000 0 25,000 2,1551000
$ 21235,000 $ 0 $ 80,000 $ 21155,000
26,999
19,395
19,366
$ 97,960 $
$ 2,332,960 $
0 $ 22,373 $ 9,827
0 10,281 16,718
0 71926 11,469
0 41960 14,406
0 $ 45,540 $ 52,420
0 $ 125,540 $ 2,207,420
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1995
Series 1991 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 85,000 $ 143,400 $ 228,400
1997 85,000 138,810 223,810
1998 90,000 134,050 224,050
1999 100,000 128,830 228,830
2000 105,000 122,830 227,830
2001 110,000 1169372 226,372
2002 115,000 109,498 224,498
2003 125,000 102,138 227,138
2004 130,000 93,950 223,950
2005 140,000 85,240 225,240
2006 150,000 75,720 225,720
2007 160,000 659370 225,370
2008 170,000 54,170 224,170
2009 185,000 42,186 227,186
i
2010 195,000 28,958 223,958
2011 210,000 15,014 225,014
$ 21155,000 $ 11456,536 $ 31611,536
Capital Lease - Kansas State Bank
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1996 $ 91827 $ 185 $ 10,012
$ 91827 $ 185 $ 10,012
Capital Lease -Case Credit Corporation
Year Ending
September 30,
1996
1997
PRINCIPAL
$ 10,244
6,474
INTEREST
$ 1,033
106
TOTAL
REQUIREMENTS
$ 11,277
6,580
16718
,$ 1,139 $ 17,857
Capital Lease -Ford Motor Credit
Year Ending
September 30,
1996
1997
PRINCIPAL
$ 8,499
2,970
INTEREST
$ 534
42
$ 11,469 $
TOTAL
REQUIREMENTS
$ 9,033
3,012
576 $
12,045
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
lI
Page - 26
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1995
Capital Lease - Maroon Cattle Company
Year Ending
September 30,
1996
1997
1998
PRINCIPAL
$ 5,292
5,647
3,467
TOTAL ALL DEBT
Year Ending
September 30,
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
PRINCIPAL
118,862
100,091
93,467
1009000
105,000
110,000
115,000
125,000
130,000
140,000
150,000
160,000
170,000
185,000
195,000
210,000
$ 21207,420
INTEREST
$ 781 $
426
76
INTEREST
145,933
139,384
134,126
128,830
122,830
116,372
109,498
102,138
93,950
85,240
75,720
65,370
54,170
42,186
28,958
15,014
$ 11459,718
TOTAL
REQUIREMENTS
6,073
6,073
3,543
15,688
TOTAL
REQUIREMENTS
264,795
239,475
227,593
228,830
227,830
226,372
224,498
227,138
223,950
2259240
225,720
225,370
224,170
227,186
223,958
225,014
$ 31667,138
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 26
SUPPLEMENTAL INFORMATION
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1995
GENERAL FUND
Police Department Funds $ 4,095
Certificate of Obligation Reserve Funds 38,528
Unspent 1994 Certificate of Obligation Funds 420,396
TOTAL GENERAL FUND $ 463,019
ENTERPRISE FUND
Revenue Bond I & S Funds
Revenue Bond Reserve Funds
Customer Utility Deposits
TOTAL ENTERPRISE FUND
$ 11,762
243,694
17,007
$ 272,463
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 27
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1995
GENERAL FUND
Police Department Funds
Minimum Required Reserves, Interest and
Sinking Funds - 1994 Certificate of Obligation
Unspent 1994 Bond Proceeds
Prepaid Expenses
TOTAL GENERAL FUND
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds - Revenue Bonds
TOTAL ENTERPRISE FUND
$ 4,095
38,000
420s396
3,116
$ 465,607
291,494
$ 291,494
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 28
TYPE OF COVERAGE
Business Auto:
Liability
Physical Damage
Property Damage
Workmen's Compensation
Liability -
Law Enforcement Liability
Errors &Omissions
General Liability
Mobile Equipment
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September 30, 1995
AMOUNT OF
FROM TO COVERAGE CARRIER
10/1/94 10/1/95 3,000,000 Texas Municipal League
10/1/94 10/1/95 Scheduled Equip. Texas Municipal League
240,291
10/1/94 10/1/95 Scheduled Equip. Texas Municipal League
21259,750
10/1 /94
10/1 /94
10/1 /94
10/1 /94
10/1 /94
10/1/95 Statutory Texas Municipal League
10/1/95 1,000,000 Texas Municipal League
10/1/95 1,000,000 Texas Municipal League
10/1/95 31000,000 Texas Municipal League
10/1/95 196,934 Texas Municipal League
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 29
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
NUMBER OF CONNECTIONS
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 1995
WATER
1,470
144
ELECTRIC
1,326
263
1,614 1,589
RESIDENTIAL
rWATER RATES & COMMERCIAL
Deposit $ 25.00
First 1,000 Gallons (minimum) $ 11.00
1,000 TO 5,000 Gallons $ 1.85
51000 TO 15,000 Gallons $ 2.05
15,000 TO 30,000 Gallons $ 2.45
Over 30,000 Gallons $ 3.25
SEWER RATES RESIDENTIAL COMMERCIAL
First 1,000 Gallons (minimum) $ 12.00 $ 18.00
Over 1,000 Gallons $ 1.00 $ 1.00
Maximum $ 25.00 $ 125.00
ELECTRIC RATES
Deposit
Facility Charge
Energy Charge
Demand Charge.
First 6 KWH (minimum)
Over 6KWH
SMALL
RESIDENTIAL COMMERCIAL
SEWER
1,496
144
LARGE
COMMERCIAL
$ 50.00 $ 100.00 $ 100.00
$ 9.00/Month $ 11.50/Month $ --
$ .0621629/kwh $ .0676962/kwh $ 237048/KWH
GAI��ONS OF WATER METERED (APPROX.)
134,77f,324
52.39
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 30
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 1995
1994 Year Original Tax Roll
Adjustments to Original Tax Roll
ADJUSTED TAX ROLL
Less: Collections and Adjustments
CURRENT YEAR TAXES RECEIVABLE -END OF YEAR
PRIOR YEAR TAXES RECEIVABLE -END OF YEAR
TOTAL TAXES RECEIVABLE - END OF YEAR
Assessed Value
Tax Rate per $100
Percent of Current Taxes Collected to Billed
$ 345,228
13,216
358,444
345,530
12,914
42,511
$ 55,425
$ 75,541,218
$ 0,4745
96,40%
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 31
William C. Spore & Company, PC.
Certified Public Accountants
To the Honorable Mayor and City Council,
City of Sanger, Texas
In planning and performing our audit of the general purpose
financial statements of the City of Sanger, Texas, for the year
ended September 30, 1995, we considered its internal control
structure in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and
not to provide assurance on the internal control structure.
However, we noted certain matters involving the internal control
structure and its operation that we consider to be reportable
conditions under the standards established by the American
Institute of Certified Public Accountants. Reportable conditions
involve matters coming to our attention relating to significant
deficiencies in the design or operation of the internal control
structure that, in our judgement, could adversely affect the City's
ability to record, process, summarize, and report financial data
consistent with the assertions of management in the financial
statements.
These reportable conditions are 'as follows with suggestions for
system improvements.
(1) The Utility Fund customer bank account is under funded by
$55,000. The underfunding is due to transferring funds from the
deposit bank accounts to the operating accounts for debt service.
The funds were returned to the customer deposit accounts in
December 1995. Budgeting procedures should be put in place to more
accurately forecast cash flow needs for the City. Monthly budget
forecasts would allow the City to plan for it's cash flow needs and
short term borrowings could be used during periods of cash
shortages.
(2) Bond I & S funds should be funded on a monthly basis. At
September 30, 1995 the Utility fund's I & S accounts were under
funded by $361000. The accounts should be funded on a monthly
basis to meet the bond covenants..
(3) To insure that all Utility Fund cash receipts are properly
entered into the accounts receivable computer system and that the
computer software in functioning and balancing properly the
accounts receivable subsidiary aging should be reconciled to the
general ledger accounts receivable account on a timely basis,
preferable monthly. The entries to the general ledger and accounts
receivable subsidiary are independent of each other and should be
used to verify that the same entries are made to each system.
t
1600 Airport Freeway, Suite 208 # Bedford, � �6022 # S1�1,�4.�-i�2S
A material weakness is a
or operation of one or
elements does not reduce
errors or irregularities
relation to the financial
not be detected within a
course of performing their
reportable condition in which the design
more of the internal control structure
to relatively low level the risk that
in amounts that would be material in
statements being audited may occur and
timely period by employees in the normal
assigned duties.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be reportable conditions and, accordingly, would
necessarily disclose all reportable conditions that are also
considered to be material weaknesses as defined above. However,
none of the reportable conditions described above is believed to be
a material weakness.
This report is intended solely for the information and use of the
management, Mayor and City Council of the City of Sanger, Texas.
Thank you,
r
William C. Spore & Company, P.C.
Certified Public Accountant
January 29, 1996
Page - 2