1997 Annual Financial ReportCITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
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, 1997, 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, 1997, and the results of its operations and the cash flows of its proprietary
fund types for the year then ended in conformity with generally accepted accounting
principles.
In accordance with Government Azrditing Standards, we have also issued our report dated
February 9, 1998 on our consideration of the City of Sanger's internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining and individual fund and account
group financial statements and schedules listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the general purpose financial
statement of the City of Sanger, Texas. Such information has been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in
our opinion is fairly presented in all material respects in relation to the general purpose
financial statements taken as a whole.
. r
•• : • •. '
February 9, 1998
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, 1997
John W. Coker, III
Tommy Kincaid
Jimmy Frazier
Mike James
Jerry Jenkins
Alice Madden
Larry Keesler
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
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
Construction in Process
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
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
0
September 30, 1997
GENERAL 114
60,607
27,805
0
1171833
0
1161021
0
0
u
$ 366,315 $
$ 156,623 $
5,978
0
60,607
0
0
0
0
223,208
0
0
0
0
115,007
28,100
143,107
ENTERPRISE
0
0
383,766
6,992
91551
1,5001888
3,758,146
2011602
0
61224,584
247, 705
73,640
81,881
0
21,065
3,025,000
0
5,390
31454,681
442, 674
0
3771718
1,9491511
0
0
2,769,903
$ 366,315 $ 6,224,584
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3
(memorandum only)
1997 1996
$ 0 $ 0 $ 287,688 $
607 63,382
0 0 27,805 34,494
0 0 383,766 367,860
0 0 124,825 28,796
0 0 129,551 188,344
0 0 1,616,909 11523,731
2,378,632 0 6,136,778 5,700,719
0 0 201,602 63,878
244
0 1,922,337
$ 21378,632 $ 11922,337
,922,337
$ 10,891,868 $
2,048,204
101244, 872
$ 0 $ 0 $ 404,328 179,950
0 0 79,618 77$411
0 0 81,881 81,564
0 0 60,607 63,382
0 30,000 51,065 50,947
0 0 31025,000 3,1301000
0 1,725,000 11725,000 11815,000
0 167,337 172,727 224,693
0 11922,337 5,6001226 5,622,947
0
2,378,632
0
0
0
0
2,378,632
$ 2,378,632 $
1,922,337
442, 674
2,378,632
377,718
1,949,511
115,007
28,100
5,291,642
108,974
2,382,431
3111095
1,597,935
1 39,378
32,112
4,621,925
$ 10,891,868 $ 10,244,872
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
1
PAGE-3
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
For the Year Ended September 8o, taw
1997 1996
$ 4061208 $ 373,807
296,516 290,185
8,125 7,333
311864 19,968
2931938 265,913
3491695 94,900
111134 91038
43,037 20,205
231240 48,423
1,4631757 11129,772
EXPENDITURES
General Government 462,911 426,265
Public Safety 399,425 346,982
Highways and Streets 242,165 223,010
Health and Welfare 333,688 61,260
Culture and Recreation 117,918 100,421
Capital Outlay 55,366 109,309
Debt Service:
Principal 128,867 331,165
Interest 127,170 167,517
TOTAL EXPENDITURES 1,867,510 11765,929
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
(403,753) (636,157)
0 23,080
325,370 512,923
325,370
(78,383)
221,490
536,003
(100,154)
,644
321
$ 1431107 $ 2211490
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 4
REVENUES
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1997
BUDGET j I ACTUAL VARIANCE
Property Taxes $ 360,000 $ 406,208 $ 46,208
Nonproperty Taxes 245,000 296,516 51,516
Penalties and Interest on
Deliquent Taxes 81000 81125 125
License and Permits 28,500 31,864 31364
Fees and Services 233,000 293,938 60,938
Grants and Intergovernmental 34,600 349,695 315,095
Interest Income 11750 11,134 91384
Miscellaneous Income 82,000 43,037 (38,963)
Donations 0 23,240 23,240
TOTAL REVENUES 992,850 11463,757 470,907
EXPENDITURES
General Government 421,110 462,911 (41,801)
Public Safety 396,646 399,425 (21779)
Highways and Streets 124,283 242,165 (117,882)
Health and Welfare 22,000 333,688 (311,688)
Culture and Recreation 120,725 117,918 2,807
Capital Outlay 27,225 55,366 (28,141)
Debt Service:
Principal 129,208 128,867 341
Interest 127,357 127,170 187
TOTAL EXPENDITURES 11368,554 11867,510 (498,956)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (375,704) (403,753) (28,049)
OTHER FINANCING SOURCES (USES)
Transfers In 379,769 325,370 (54,399)
TOTAL OTHER FINANCING
SOURCES (USES) 379,769 325,370 (54,399)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 41065 (78,383) $ (82,448)
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
221,490
$ 143,107
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 3o, 1991
1997
OPERATING REVENUES
Charges and Fees $ 3,452,372 $
OPERATING EXPENSES
1996
3,361,752
Personnel Services 506,671 532,034
Purchase of Services 11699,137 11569,683
Materials and Supplies 71,466 77,078
Depreciation 286,995 252,458
Franchise Fees 72,091 72,359
TOTAL OPERATING EXPENSES 21636,360 21503,612
OPERATING INCOME 816,012 858,140
NONOPERATING REVENUES (EXPENSES)
Interest Income
Debt Service interest, Fees & Discounts
Transfers Out
TOTAL NONOPERATING REVENUES
(EXPENSES)
NET INCOME
RETAINED EARNINGS -BEGINNING
RETAINED EARNINGS -ENDING
68,372
(140,815)
(325,370)
45,506
(145,604)
(512,923)
(397,813) (613,021)
418,199
11909,030
$ 21327,229 $
245119
,
1,663,911
1,909,030
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, 1991
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 31436,783 $ 39379,799
Cash Payments to Suppliers for Goods
and Services (11759,205) (11788,051)
Cash Payments for Employees Services (509,553) (527,730)
NET CASH PROVIDED BY OPERATING ACTIVITIES 11168,025 1,064,018
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets
Additions to Long -Term Debt
Principal Paid on Bonds and Notes
Interest Paid on Bonds and Notes
CDBG Grant Funds Received
Cash Transfered 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
(659,656)
0
(1181099)
(1381543)
1921700
(325,370)
(1,048,968)
90,176
209,233
1,535,294
$ 1,744,527 $
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
(Increase) Decrease in Receivables
(Increase) Decrease in Inventory/Prepaid Expense
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Customer Deposits
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$ 816,012 $
286,995
(15,906)
5 r,076
25,091
(11560)
317
$ 1,168,025 $
(168,389)
11060,000
(118,931)
(134,713)
81778
(512,923)
133,822
17,559
1,215,399
319,895
1,535,294
858,140
252,458
7,966
(751973)
7,466
3,880
10,081
1,064,018
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 7
CITY OF SANGER
4 NOTES TO FINANCIAL STATEMENTS
September 30, 1997
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sanger operates under a Council -Mayor
government, following the laws of a General Law City as
the State of Texas. The City provides the following
public safety police, fire and ambulance, parks,
sanitation, a public library , senior center, community
general administrative services along with water,
electrical services.
form of
def fined 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
eC1IN0 Mie1
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
` CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
NO .VW'%k_
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.
I`? CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
i
Special reporting treatments are applied to governmental fund
prepaid expenses to indicate that they do not represent "available
spendable resources", even though they are a component of net
current assets. Such amounts are generally offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure
recognition for governmental fund types is limited to exclude
amounts represented by non -current liabilities. Since they do not
affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the
General Long -Term Debt Account Group.
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all
assets and liabilities (whether current or noncurrent) associated
with their activity are included on their balance sheets. Their
report fund equity (net total assets) is segregated into
contributed capital and retained earnings components.
Depreciation is provided in the proprietary funds in amounts
sufficient to relate the cost of the depreciable assets, to
operations over their estimated service lives on the straight-line
basis. The service lives by type are as follows:
Electric System 20 to 50 years
Water and sewer system 10 to 50 years
Furniture and Equipment 3 to 10 years
4. BASIS OF ACCOUNTING:
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of
the measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified
accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Gross
receipts and sales taxes are considered "measurable" when in the
hands of intermediary collecting governments and are recognized as
revenues at that time. All major revenues are susceptible to
accrual.
Expenditures are generally recognized under the modified basis of
accounting when the related fund liability is incurred. Exceptions
to this general rule include accumulated unpaid vacation and sick
time which are not accrued and principal and interest on general
Long-term debt which is recognized when due.
Page - 10
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned,
and their expenses are recognized when they are incurred.
5. BUDGETS AND BUDGETARY ACCOUNTING:
The City follows these procedures in establishing the budgetary
data reflected in the financial statements:
A: Prior to July 1, the City Administrator submits to the City
Council a proposed operating budget for the fiscal year commencing
the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
B: Public hearings are conducted to obtain taxpayer comments.
C: Prior to October 1, the budget is legally enacted through the
passage of an ordinance.
D: The City Manager is authorized to transfer budgeted amounts
between departments within any fund; any revisions that alter the
total expenditures of any fund must be approved by the City
Council.
E: Budgets for the General and Proprietary Funds are adopted on a
basis consistent with generally accepted accounting principles
(GAAP).
F: Unused appropriations for all of the above annually budgeted
funds lapse at I of the fiscal year.
At year-end the City's cash accounts totaled $1,904,597 of which
$1,904,497 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $114,293 was
covered by federal depository insurance and the remaining
$1,790,204 was covered by collateral held by the pledging Bank's
agent in the name of the City. There were no uncollateralized cash
accounts.
The securities pledged by the City's depository institution are as
follows:
SECURITY PAR FMV
TREASURY NOTE 2,2001000 21235,063
7. CAPITALIZED INTEREST:
The City capitalizes construction period interest when applicable.
$53,333 of interest expense related to the construction of a new
sewer plant was capitalized during the current fiscal year.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
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 $30,000 of accrued
vacation and sick leave has been recorded in the General Long -Term
Debt Account Group, representing the City's commitment to fund such
costs from future operations. Proprietary funds accrue vacation
leave in the period they are earned.
10. REVENUE RECOGNITION - PROPERTY TAXES:
Property taxes attach as an enforceable lien on property as of
January 1. Taxes are levied on October 1 and are due and payable
at that time. All unpaid taxed levied October 1 become delinquent
February 1 of the following year.
Property tax revenues are recognized when they become available.
Delinquent taxes are considered fully collectable and, therefore,
no allowance for doubtful taxes is provided.
11. ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS:
Allowance for uncollectable accounts receivable in the Proprietary
Fund at September 30, 1997 is $391624.
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.
During the fiscal year ended September 30, 1997 the City's
proprietary fund received $192,700 from a capital grant for water
and sewer system improvements.
Page - 12
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
V _. _
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
contributorI plan is operated
and Retirement Funds. The
September 30, 1997 was $3,300,
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 4.23% of the monthly gross
earnings. Employee contributions are tax deferred and not subject
to federal income tax until they are withdrawn. The City's
contributions for the fiscal year totaled $35,600,
Page - 13
I!
CITY OF SANGER
ii NOTES TO FINANCIAL STATEMENTS
September 30, 1997
NOTE C: LONG-TERM DEBT:
The following is a summary of the City Long -Term Debt. The
future debt requirements are detailed in schedules included in
these financial statements.
General Long Term Debt:
Certificates of Obligation, Series 1994 - Original amount of
$1,900,000; principal paid annually starting September 1, 1995;
Interest paid semi-annually on March 1, and September 1, at rates
ranging from 5.60 to 7.50%. The Bonds were issued for street
improvements and library building construction and are to be repaid
from property tax revenues and are further secured by a pledge of
Enterprise Fund Net Revenues.
The Certificates of Obligation require that certain reserve
accounts be maintained.
Capital Lease - Associates Commercial Corporation - Original
balance of $30,066. The lease requires forty eight monthly rental
payments of $694, with six payments remaining at September 30,
1997. 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 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, with thirteen payments remaining at September
30, 1997. 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.
'k Capital Lease - Midwest Bankers Group - Original balance of
$172,179. The lease requires a down payment of $13,150 (paid in
February 1995) plus nine annual rental payments of $24,105
beginning in February 1996. The City has a purchase option during
the term of the lease to purchase the equipment at a designated
early term/purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase a new pumper fire truck. The truck is
--" security for the lease.
Capital Lease - Motorola Communications and Electronic, Inc. -
Original balance of $33,654. The lease requires five annual rental
payments of $8,219 beginning in August 1995. The City has a
purchase option during the term of the lease to purchase the
Page - 14
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase radio communication equipment.
The equipment is security for the lease.
Capital Lease - Banc One Leasing Corporation - Original balance of
$19,200. The lease requires forty eight monthly rental payments of
$468, with twenty four payments remaining at September 30, 1997.
The City has a purchase option during the term of the lease to
purchase the equipment at a designated purchase option price. The
City intends to exercise this option at the end of the lease term.
The proceeds of the lease were used to purchase a brush chipper for
the street department. The chipper is security for the lease.
Proprietary Fund:
Texas Utility System Refunding and Improvement Revenue Bonds,
Series 1991 - Original amount of $2,230,000, principal paid
annually on May 15; Interest paid semi-annually on May 15 and
November 15, at rates ranging from 4.70% to 7.15%. The bonds were
issued to provide funds sufficient to refund all of the City's
outstanding Series 1976, 1977, and 1985 Bonds plus an additional
$800,000 for improvements to the City's Waterworks System. The
refunding of the Bonds provided for lower future debt service
requirements due to reduced interest rates. The Bonds are to be
repaid from and are secured by the Enterprise Fund Net Revenues.
Texas Utility System Revenue Bonds, SeriesOriginal 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.
The Bond Obligations require that certain cash reserve accounts be
maintained.
Capital Lease - Maroon Cattle Company (Purchased from Diversified
Lenders) - Original balance of $21,340. The lease requires forty
eight monthly rental payments of $506, with eleven payments
remaining at September 30, 1997. 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.
Page - 15
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
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
1998 $138,360 $116,934 $ 130,390 $ 178,679
1999 134,379 107,123 135,000 172,198
2000 127,418 97,377 140,000 165,042
2001 138,588 87,958 150,000 157,377
2002 144,835 79,991 155,000 149,083
Future 1.208,757 2990635 2,320,000 890,826
Total $1,892,337 $ 789,018 $,030,390 $1.713,205
NOTE E: PURCHASE COMMITMENT:
i 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
$1,423,3780
NOTE F: BUDGET EXCEPTIONS:
Home grant revenues and expenditures were not budgeted during the
fiscal year. Actual revenues were $305,923 and actual expenditures
were $306,672.
Street improvement expenditures of $101,441 TAT not budgeted.
F These unbudgeted expenditures were paid for from bond proceeds
collected in the prior fiscal year.
Library department expenditures exceeded budgeted expenditures by
$15,886. These unbudgeted expenditures were paid for from donated
revenues.
Parks department capital outlay expenditures exceeded budgeted
capital outlay by $8,599. These unbudgeted expenditures were paid
for from donated revenues.
NOTE G: 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.
Page - 16
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1991
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
4061208 $ 0 $ 0 $ 0
132,179 0 0 0
81125 0 0 0
855 24,707 0 0
41044 0 41,121 0
306,672 0 0 26,800
2,271 0 121 0
20,537 0 22,500 0
11000 0 0 0
881,891 24,707 63,742 26,800
143,849 47,685 0 0
0 0 325,539 73,886
0 0 0 0
333,688 0 0 0
0 0 0 0
31040 81396 15,110 0
0 0 61700 19,672
0 0 1,519 10,847
480,577 56,081 348,868 104,405
401,314 (31,374) (285,126) (77,605)
3251370 0 0 0
3251370 0 0 0
726,684 $ (31,374) $ (285,126) $ (77,605)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 17
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 406,208
0 164,337 0 0 0 0 296,516
0 0 0 0 0 0 81125
61302 0 0 0 0 0 31,864
237,154 0 21079 0 9,540 0 293,938
0 0 16,223 0 0 0 349,695
0 81742 0 0 0 0 11,134
0 0 0 0 0 0 43,037
0 0 15,000 71240 0 0 23,240
243,456 173,079 33,302 71240 9,540 0 11463,757
271,377 0 0 0 0 0 462,911
0 0 0 0 0 0 399,425
0 242,165 0 0 0 0 242,165
0 0 0 0 0 0 333,688
0 0 63,565 14,884 31,303 81166 117,918
0 0 14,237 11,599 11799 11185 55,366
0 86,295 16,200 0 0 0 128,867
0 94,402 20,402 0 0 0 127,170
271,377 422,862 114,404 26,483 33,102 9,351' 1,867,510
(279921) (249,783) (81,102) (19,243) (23,562) (91351) (403,753)
0 0 0 0 0 0 325,370
0 0 0 0 0 0 325,370
$ (27,921) $ (249,783) $ (81,102) $ (19,243) $ (23,562) $ (91351) (78,383)
221,490
$ 143,107
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 17
REVENUES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1997
BUDGET I I ACTUAL I VARIANCE
Property Taxes $ 360,000 $ 406,208 $ 46,208
Nonproperty Taxes 105,000 132,179 27,179
Penalties and Interest on
Deliquent Taxes 81000 81125 125
License and Permits 500 855 355
Fees and Services 0 41044 41044
Grants and Intergovernmental 0 306,672 306,672
Interest Income 11750 21271 521
Miscellaneous Income 82,000 20,537 (61,463)
Donations 0 11000 11000
TOTAL REVENUES 557,250 881,891 324,641
EXPENDITURES
General Government 149,104 143,849 51255
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 22,000 333,688 (311,688)
Culture and Recreation 0 0 0
Capital Outlay 0 31040 (31040)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 171,104 480,577 (309,473)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 386,146 401,314 15,168
OTHER FINANCING SOURCES (USES)
Transfers In 379,769 325,370 (54,399)
TOTAL OTHER FINANCING
SOURCES (USES) 379,769 325,370 (54,399)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 765,915 $ 726,684 $ (39,231)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1997
REVENUES I 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 20,000 26,800 61800
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 20,000 26,800 61800
EXPENDITURES
General Government 0 0 0
Public Safety 65,250 73,886 (81636)
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 0 0 0
Debt Service:
Principal 20,000 19,672 328
Interest 12,500 10,847 11653
TOTAL EXPENDITURES 971750 104,405 (61655)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (77,750) (77,605) 145
OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (77,750) $ (77,605) $ 145
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
BUDG I ACTUALJ IVARIANCEI IBUDGET AU I UALJ VARIANCE
$ 0$ 0$ 0$ 0$ 0$ 0
0 0 0 0 0 0
0 0 0 0 0 0
20,000 24,707 41707 0 0 0
0 0 0 20,000 41,121 21,121
0 0 0 0 0 0
0 0 0 0 121 121
0 0 0 0 , 22,500 22,500
0 0 0 0 0 0
20,000 24,707 41707 20,000 63,742 43,742
48,148 47,685 463 0 0 0
0 0 0 331,396 325,539 51857
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
91000 81396 604 10,775 15,110 (41335)
0 0 0 61700 61700 0
0 0 0 550 11519 (969)
57,148 56,081 11067 349,421 348,868 553
(37,148) (31,374) 51774 (32%421) (285,126) 44,295
0 0 0 0 0 0
0 0 0 0 0 0
$ (37,148) $ (31,374) $ 51774 $ (329,421) $ (285,126) $ 44,295
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
:::ii>;;;RYi>:::isv.;:i:::::::::::::::::..;4i;..:
...:.::.:.: .:::.:..........:....:.:::...> :..
BUDGET ACTUAL VARIANCE
$ 0 $ 0 $ 0 $
0 0 0
BUDGET ACTUAL VARIANCE
0 $ 0 $ 0
140,000 164,337 24,337
0 0 0 0 0 0
81000 61302 (11698) 0 0 0
202,000 237,154 35,154 0 0 0
0 0 0 0 0 0
0 0 0 0 81742 8,742
0 0 0 0 0 0
0 0 0 0 0 0
2101000 243,456 33,456 1409000 173,079 33,079
223,858 271,377 (47,519) 0 0 0
0 0 0 0 0 0
0 0 0 124,283 242,165 (117,882)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 86,308
0 0 0 94,000
223,858 271,377 (47,519) 304,591
(13,858) (27,921) (14,063)
0 0 0
0 0 0
86,295
94,402
422,862
13
(402)
(118,271)
(164,591) (249,783) (85,192)
0
0
$ (13,858) $ (27,921) $ (14,063)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1997
REVENUES I BUDGET I I ACTUALJ I 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 21079 21079
Grants and Intergovernmental 14,600 16,223 11623
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 15,000 15,000
TOTAL REVENUES 14,600 33,302 18,702
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 57,561 63,565 (61004)
Capital Outlay 41450 14,237 (91787)
Debt Service:
Principal 16,200 16,200 0
Interest 20,307 20,402 (95)
TOTAL EXPENDITURES 98,518 114,404 (15,886)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
(83,918) (81,102)
0
0
0
n
2,816
0
$
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
BUDG I VARIANCE I BUDGET ACTUAL IVARIANCE
$ 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 11,000 91540 (1,460)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 71240 71240 0 0 0
0 7,240 71240 11,000 91540 (11460)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
19,000 14,884 41116 32,414 31,303 11111
3,000 11$99 (81599) 0 11799 (11799)
0 0 0 0 0 0
0 0 0 0 0 0
22,000 26,483 (4,483) 32,414 33,102 (688)
(222000) (19,243) 21757 (21,414) (23,562) (21148)
0 0 0 0 0 0
0 0 0 0 0 0
$ (22,000) $ (1 %243) $ 21757 $ (212414) $ (23,562) $ (21148)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, i of
REVENUES I BUDGET ACTUAL 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
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 11,750 81166 31584
Capital Outlay 0 11185 (11185)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 11,750 91351 21399
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (11,750) (9$51) 21399
OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
$
C
0
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
BUDGET ACTUAL VARIANCE
$ 360,000 $ 406,208 $ 46,208
245,000 296,516 51,516
81000 8,125 125
28,500 31,864 31364
233,000 293,938 60,938
34,600 349,695 315,095
11750 11,134 91384
82,000 43,037 (38,963)
0 23,240 23,240
992,850 1,463,757 470,907
421,110 462,911 (41,801)
396,646 399,425 (21779)
124,283 242,165 (117,882)
22,000 333,688 (311,688)
120,725 117,918 2,807
27,225 55,366 (28,141)
129,208 128,867 341
127,357 127,170 187
11368,554 11867,510 (4981956)
(375,704) (403,753) (28,049)
379,769 325,370 (54,399)
379,769 325,370 (54,399)
$ 41065 (78,383) $ (82,448)
221,490
$ 143,107
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 18
COST
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, 1997
0
71, 870
5341404
6821104
3261825
2221147
541,282
$ 2,378,632
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 19
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For the Year Ending September 30, 1997
COST BEGINNING ADDITIONS DELETIONS ENDING
Land $ 71,870 $ 0 $ 0 $ 71,870
Buildings 513,725 20,679 0 534,404
Equipment 714,680 23,089 55,665 682,104
Fire Equipment 330,325 0 31500 326,825
Swimming Pool 220,348 11799 0 222,147
Improvements 531,483 91799 0 541,282
INVESTMENT IN GENERAL
FIXED ASSETS $ 21382,431 $ 55,366 $ 59,165 $ 21378,632
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 20
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30, 1997
BEGINNIN IDELETIO IENDING
COST
Water System $ 1,910,239 $ 204,781 $ 0 $ 2,115,020
Sewer System 11941,411 207,166 0 21148,577
Electric System 11967,112 273,052 0 21240,164
Equipment 470,018 33,581 81583 495,016
Furniture & Fixtures 132,863 51234 0 138,097
Building Improvements 14,623 31040 0 17,663
Easement 11500 0 0 11500
TOTAL COST $ 6,437,766 $ 726,854 $ 8,583 $ 7,156,037
ACCUMULATED DEPRECIATION
Water System $ 768,243 $ 75,163 $ 0 $ 843,406
Sewer System 749,435 60,098 0 809,533
Electric System 11104,784 95,800 81583 11192,001
Equipment 363,168 49,538 0 412,706
Furniture & Fixtures 122,151 41680 0 126,831
Building Improvements 11,698 1,716 0 13,414
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION
NET PROPERTY, PLANT &EQUIPMENT
$ 3,119,479 $ 286,995 $ 8,583 $ 3,397,891
$ 3,318,287
$ 3,758,146
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1997
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
CAPITAL LEASES
Associates Commercial Corp.
G.M.A.C.
Midwest Bankers
Motorola
Bank One
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
4,103
6,817
1311215
14,849
10,353
15,000
$ 15,000
$ 1,725,000
167,337
30,000
$ 1,922,337
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 22
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 1997
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
CAPITAL LEASES
Associates Commercial Corp.
G.M.A.C.
Midwest Bankers
Motorola
Bank One
TOTAL CAPITAL LEASES
BEGINNINGJ JADDITIONS REDUCTIO I ENDING
$ 1,815,000 $
12,156
145,548
21,549
14,950
$ 206,204 $
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay $
Accrued Sick Pay
TOTAL ACCRUED COMPEN. ABSENCES $
13,000 $
14,000
27,000 $
0 $ 90,000 $ 1,725,000
0 $
0
0
0
0
2,000 $
1,000
3,000 $
7,898 $ 4,103
5,339 61817
14,333 131,215
6,700 14,849
4,597 10,353
38,867 $ 167,337
0 $ 15,000
0 15,000
0 $ 30,000
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT $ 2,048,204 $ 3,000 $ 128,867 $ 1,922,337
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1991
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
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 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
$ 11725,000 $ 748,660 $ 21473,660
apical Lease Associates Commercial Corp:::::::;;
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1998 $ 41103 $ 60 $ 41163
Year Ending
September 30,
1998
PRINCIPAL
$ 6,817
INTEREST
$ 312
Capital Lease.Midwest E3ankers ,, ::;::::
Year Ending
September 30,
1998
1999
2000
2001
2002
2003
2004
TOTAL
REQUIREMENTS
$ 7,129
TOTAL
PRINCIPAL INTEREST REQUIREMENTS
$ 15,295 $ 81810 $ 249105
16,322 71783 24,105
17,418 61687 24,105
18,588 5,518 24,106
19,835 41271 24,106
21,168 21938 24,106
22,589 1,517 24,106
$ 131,215 $ 37,524 $ 168,739
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
Year Ending
September 30,
1998
1999
Year Ending
September 30,
1998
1999
• PRINCIPAL
$ 7,172
71677
$ 14,849
PRINCIPAL
$ 4,973
5,380
$ 10,353
September 30, 1997
INTEREST
$ 1,047
542
$ 1,589
INTEREST
$ 640
233
$ 873
Total fond Obl�gatrons and Notes Payable...,;........
Year Ending
September 30, PRINCIPAL INTEREST
1998 $ 138,360 $ 116,934
1999 134,379 107,123
2000 127,418 97,377
2001 138,588 87,958
2002 144,835 79,991
2003 156,168 71,595
2004 167,589 62,480
2005 155,000 52,625
2006 165,000 43,635
2007 175,000 33,900
2008 190,000 23,400
2009 200,000 12,000
$ 11892,337 $ 789,018
TOTAL
REQUIREMENTS
$ 8,219
8,219
$ 16,438
TOTAL
REQUIREMENTS
$ 5,613
5,613
$ 11,226
TOTAL
REQUIREMENTS
$ 255,294
241,502
224,795
226,546
224,826
227,763
230,069
207,625
208,635
208,900
213,400
212,000
$ 21681,355
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 1997
REVENUE BOND OBLIGATIONS
Series 1991
Series 1996
TOTAL REVENUE BONDS
CAPITAL LEASES
Case Credit Corporation
Ford Motor Credit
Maroon Cattle Co.
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEGINNINyj 1ADDITIONS1REDUCTIONSI ENDING
$ 2,070,000 $
11060,000
$ 31130,000 $
2,969
9,114
$ 18,489 $
$ 3,148,489 $
0 $ 85,000 $ 1,985,000
0 20,000 1,0401000
0 $ 105,000 $ 31025,000
0 2,969 0
0 31724 51390
0 $ 13,099 $ 51390
0 $ 118,099 $ 3,030,390
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September so, 1997
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1998 $ 90,000 $ 134,050 $ 224,050
1999 100,000 128,830 228,830
2000 105,000 122,830 227,830
2001 110,000 116,372 226,372
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 65,370 225,370
2008 170,000 54,170 224,170
2009 185,000 42,186 227,186
2010 195,000 28,958 223,958
2011 210,000 15,014 225,014
$ 11985,000 $ 11174,326 $ 3,159,326
»:
erles 1:+9 Retrenue
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1998 $ 35,000 $ 44,452 $ 79,452
1999 35,000 43,368 78,368
2000 35,000 42,212 77,212
2001 40,000 41,005 81,005
2002 40,000 39,585 79,585
2003 45,000 38,105 83,105
2004 45,000 36,395 81,395
2005 45,000 34,640 79,640
2006 50,000 32,840 82,840
2007 50,000 30,790 80,790
2008 55,000 28,690 83,690
2009 60,000 26,297 86,297
2010 60,000 23,628 83,628
2011 65,000 20,898 85,898
2012 70,000 17,908 87,908
2013 70,000 14,652 84,652
2014 75,000 11,363 86,363
2015 80,000 71837 87,837
2016 85,000 41037 89,037
$ 1,0401000 $ 538,702 $ 11578,702
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 26
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, i my
Capital I:.,ease:Maraon Cattle Company
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1998 $ 51390 $ 177 $ 51567
$ 51390 $ 177 $ 51567
O.TALALL€D.B> <>
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1998 $ 130,390 $ 178,679 $ 309,069
1999 135,000 172,198 307,198
2000 140,000 165,042 305,042
2001 150,000 157,377 307,377
2002 155,000 149,083 304,083
2003 170,000 140,243 310,243
2004 175,000 130,345 305,345
2005 185,000 119,880 304,880
2006 200,000 108,560 308,560
2007 210,000 96,160 306,160
2008 225,000 82,860 307,860
2009 245,000 68,483 313,483
2010 255,000 52,586 307,586
2011 275,000 35,912 310,912
2012 70,000 17,908 87,908
2013 70,000 14,652 84,652
2014 75,000 11,363 86,363
2015 80,000 7,837 87,837
2016 85,000 41037 89,037
$ 31030,390 $ 11713,205 $ 41743,595
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 26
SUPPLEMENTAL INFORMATION
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1997
GENERAL FUND
Police Department Funds
Library Department Funds
Park Department Fund
Hotel/Motel Fund
Certificate of Obligation Reserve and 1 & S Funds
Unspent 1994 Certificate of Obligation Funds
Home Grant Funds
TOTAL GENERAL FUND
ENTERPRISE FUND
1991 Revenue Bond I & S Funds
1991 Revenue Bond Reserve Funds
1996 Revenue Bond I & S Funds
1996 Revenue Bond Reserve Funds
Customer Utility Deposits
Unspent1996 Revenue Bond Funds
Underground Water Storage Tank Funds
Safety and Incentive Funds
TOTAL ENTERPRISE FUND
$ 4,618
1,608
3,829
29,819
39,014
32,063
5,070
$ 116,021
$ 56,263
243,694
15,619
6,950
82,405
11029,892
65,034
1,031
$ 11500,888
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 27
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1991
GENERAL FUND
Police Department Fund
Library Department Funds
Park Departmnet Fund
Hotel/Motel Fund
Minimum Required Reserves, Interest and
Sinking Funds - 1994 Certificate of Obligation
Unspent 1994 Bond Proceeds
Home Grant Funds
TOTAL GENERAL FUND
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds - Revenue Bonds
Underground Water Storage Tank
Safety and Incentive
TOTAL ENTERPRISE FUND
$ 4,618
1,608
3,829
29,819
38,000
32,063
5,070
$ 115,007
311, 653
65,034
1,031
$ 377,718
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 28
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September au, 1997
AMOUNT OF
TYPE OF COVERAGE FROM TO COVERAGE F777767ARRIER
Business Auto:
Liability 10/1/96 10/1/97 3,000,000 Texas Municipal League
Physical Damage 10/1/96 10/1/97 Scheduled Equip. Texas Municipal League
Property Damage 10/1/96 10/1/97 Scheduled Equip. Texas Municipal League
21805,848
Workmen's Compensation 10/1196 10/1/97 Statutory Texas Municipal League
Liability -
Law Enforcement Liability 10/1/96 10/1/97 11000,000 Texas Municipal League
Errors & Omissions 10/1/96 10/1/97 11000,000 Texas Municipal League
General Liability 10/1/96 10/1/97 31000,000 Texas Municipal League
Mobile Equipment 10/1/96 10/1/97 217,634 Texas Municipal League
Employee Bond 6/24/97 6/24/98 10,000 Western Surety
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 29
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
NUMBER OF CONNECTIONS
WATER RATES—�
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 1997
1,547
157
ELECTRIC
1,339
282
1,704 1,621
RESIDENTIAL
& COMMERCIAL
Deposit $ 25.00
First 1,000 Gallons (minimum) $ 14.25
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) $ 15.00 $ 21.00
Over 1,000 Gallons $ 1.00 $ 1.00
Maximum $ 25.00 $ 125.00
SMALL
ELECTRIC RATES : RESIDENTIAL COMMERCIAL
Deposit
Facility Charge
Energy Charge
Demand Charge.
First 6 KWH (minimum)
Over 6KWH
50.00 $ 100.00
$
SEWER
1,517
157
1,674
LARGE
COMMERCIAL
100.00
$ 10.00/Month $ 12.50/Month $ --
$ .0621629/kwh $ .0676962/kwh $ 237048/KWH
$ -- $ -- $ 53.39
$ -- $ -- $ 8.29/kwh
GALLONS OF WATER METERED (APPROX.)
133,390,135
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 30
Original Tax Roll
Adjustments to Original Tax Roll
ADJUSTED TAX ROLL
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 1997
1997 1996
$ 395,154 $ 373,477 $
12,816 51525
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
407, 970
392,929
15,041
45,566
379,002
363,109
15,893
47,489
1995
3459228
13,216
358,444
345,530
12,914
42,511
$ 60,607 $ 63,382 $ 55,425
$ 84,764,092 $ 78,240,705 $ 75,541,218
$ 0.4813 $ 0.4837 $ 0.4745
96.31 % 95,81 % 96.40%
91
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 31
William C. Spore & Company, PC.
Certified Public Accountants
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED UPON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENTAL 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,
1997, and have issued our report thereon dated February 9, 1998. 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. However, we noted other matters involving the internal control over financial
reporting that we have reported to management of the City of Sanger in a separate letter dated
February 9, 1998.
This report is intended for the information of the management ,Honorable Mayor and City Council of
;, � the City of Sanger, Texas, the Department of Housing and Urban Development and the Texas
Department of Housing and Urban Affairs. However, this report is a matter of public record and its
distribution is not limited.
c
William C. Spore & Company, P.C,
February 9, 1998
1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725
William C. Spore & Company, PC.
Certified Public Accountants
MANAGEMENT LETTER
To the Honorable Mayor and City Council,
City of Sanger, Texas
In planning and performing our audit of the general purpose financial statements of the City of Sanger,
Texas, for the year ended September 30, 1997, we considered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the financial statements
and not to provide assurance on the internal control structure. However, as a result of our audit we
noted certain immaterial matters involving the internal control structure and its operation that we wish
to bring to your attention.
C�7:� �► K�l►ilY:i�]iLYI
(1) The City has placed too much reliance on grant administrators related to the maintenance of
grant financial files at City Hall. Grant files should include copies of all paid invoices related to grant
funds and local match. All grant revenue and expenditure activities should be tracked in the City's
general ledger in departments separate from the other City accounts.
Grant financial reports prepared by grant administrators should be matched to the City's accounting
records. The City should maintain a calendar of grant financial reporting due dates and request that
grant administrators present the financial reports to the City well in advance of the due dates; thus
allowing the City time to review the reports and to report any discrepancies to the grant administrators.
The City should also not rely on the grant administrator maintaining files related to paid invoices. A
complete set of paid invoices should be maintained by the City's staff as part of the grant files.
GENERAL INTERNAL CONTROLS:
(1) All accounts payable should be approved in writing by the department head responsible for the
budget category being charged. Vouchers without proper signature should be returned to the
department head prior to entry into the accounting system for payment.
1600 Airport Freeway, Suite 208 #Bedford, TX 76022 # 817/545-7725
A material weakness is a reportable condition in which the design or operation of one or more of the
internal control structure elements does not reduce to relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of performing their
assigned duties.
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses as defined above. However, none of the
matters described above is believed to be a material weakness.
This report is intended solely for the information and use of the management, Mayor and City Council
of the City of Sanger, Texas.
Thank you,
William C. Spore &Company, P.C.
Certified Public Accountant
February 9, 1998