1992 Annual Financial ReportCITY SECRETARY
ORIGINAL COPY
CITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1992
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 8-15
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND 16
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND - BUDGET AND ACTUAL 17
STATEMENT OF GENERAL FIXED ASSETS 18
SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 19
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 20
STATEMENT OF GENERAL LONG-TERM DEBT 21
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 22
SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 23
SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 24
SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 25
SUPPLEMENTAL INFORMATION
SCHEDULE OF RESTRICTED ASSETS 26
SCHEDULE OF RESERVED FUND EQUITIES 27
SCHEDULE OF INSURANCE COVERAGE 28
ENTERPRISE FUND # OF CUSTOMERS AND RATES 29
ANALYSIS OF PROPERTY TAXES 30
SporeWilliam C. • •
Certified Public Accountants
INDEPENDENT AUDITORS 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, 1992,
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, 1992,
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.
Oze! " c *404 ch'a� t 660e awel PC
William C. Spore & Company, P.C.
Certified Public Accountants
December 11, 1992
ELECTED OFFICIALS
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
APPOINTED OFFICIALS
CITY ADMINISTRATOR
CITY SECRETARY
MUNICIPAL COURT JUDGE
CITY ATTORNEY
CITY OF BANGER
CITY OFFICIALS
September 30, 1992
Nel Armstrong
Jerry Jenkins
John Berndt
Margie Braxton
Tommy Kincaid
Russell Madden
John Hamilton
Rosalie Garcia
Danny Spindle
Ronald Neiman
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 Expenses
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
F�
September au, 1992
GENERAL
16,373 $
60,658
61,242
0
0
0
0
99,539
C
0
ENTERPRISE
94,284
0
0
2451750
2,650
78,801
2,627
8641158
3,153,787
$ 237,812 $ 4,442,057
0
59,975
10,022
0
60,658
0
0
0
0
0
130,655
0
0
0
0
99,539
7,618
107.157
0
133,303
92,100
58,675
0
0
0
21380,000
0
72,225
2,736,303
100,196
0
2681014
1,337,544
0
0
1,705,754
$ 237,812 $ 4,442,057
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 3
E�
GENERAL
FIXED ASSETS
GENERAL LONG-
TERM DEBT
(memorandum only)
1992 1991
0 $ 0 $ 110,657 $ 261,821
0 0 60,658 61,828
0 0 61,242 10,380
0 0 245,750 288,953
0 0 21650 21136
0 0 78,801 53,001
0 0 2,627 71611
0 0 963,697 423,851
1,247,062
C�7
0 559,700
$ 11247,062 $ 559,700
4,400,849
559,700
$ 6,4861631 $
4,077,198
490,072
51676, 851
$ 0 $ 0 $ 193,278 119,158
0 0 102,122 81,053
0 0 58,675 63,544
0 0 60,658 61,828
E�
0 9,700 9,700 11,775
0 175,000 175,000 34,227
0 0 21380,000 1,455,000
0 375,000 375,000 450,000
0 0 72,225 0
0 559,700 31426,658 21276,585
0
1,247,062
0
0
0
0
11247,062
1,247,062 $
0
0
0
0
0
0
0
55%700
0
100,196
1,247,062
268,014
11337,544
99,539
7,618
31059,973
6,486,631 $
100,196
1,166, 847
396,675
1,657,175
82,358
(21985)
31400,266
5,676,851
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, 1992
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
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -ENDING
0
1992 1991
3401502 $ 352,352
196,222 212,077
81510 13,002
91382 10,149
1731791 182,240
311422 29,809
058 81513
201161 10,374
151018 19,107
7991066 837,623
336,920
3711109
358,610
101941
62,208
10 3,715
103,297
35,494
1,387,294
357,703
2801270
2531262
12,625
34,303
1091877
100, 222
37,118
1,185,380
(588,228) (347,757)
175,000
441,012
616,012
27,784
14,000
323,321
337,321
(10,436)
79,373 89,809
107,157 $
79,373
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 4
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1992
REVENUES I BUDGET ACTUAL VARIANCE
Property Taxes $ 336,300 $ 340,502 $ 41202
Nonproperty Taxes 202,000 196,222 (51778)
Penalties and Interest on
Deliquent Taxes 11,000 81510 (21490)
License and Permits 14,600 91382 (51218)
Fees and Services 177,240 173,791 (3,449)
Grants and Intergovernmental 28,850 31,422 21572
Interest Income 51300 41058 (1,242)
Miscellaneous Income 15,100 20,161 51061
Donations 0 15,018 15,018
TOTAL REVENUES 790,390 799,066 81676
EXPENDITURES
General Government 336,719 336,920 (201)
Public Safety 313,737 371,109 (57,372)
Hiways and Streets 151,743 358,610 (206,867)
Health and Welfare 13,400 10,941 2,459
Culture and Recreation 85,048 62,208 22,840
Capital Outlay 88,645 108,715 (20,070)
Debt Service:
Principal 88,928 103,297 (14,369)
Interest 35,040 35,494 (454)
TOTAL EXPENDITURES 1,113,260 113870294 (274,034)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (322,870) (588,228) (265,358)
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 175,000 175,000
Transfers In 327,445 441,012 113,567
TOTAL OTHER FINANCING
SOURCES (USES) 327,445 6160012 288,567
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 4,575 27,784 $ 23,209
FUND BALANCE -BEGINNING 799373
FUND BALANCE - ENDING $ 107,157
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, 1992
1992
OPERATING REVENUES
Charges and Fees $ 2,495,739 $
OPERATING EXPENSES
1991
2,386,276
Personnel Services 526,731 486,431
Purchase of Services 11372,538 1,367,752
Materials and Supplies 71,121 63,464
Depreciation 195,172 175,390
Franchise Fees 57,091 56,721
TOTAL OPERATING EXPENSES 21222,653 21149,758
OPERATING INCOME 273,086 236,518
NONOPERATING REVENUES (EXPENSES)
Interest Income 52,135 53,616
Debt Service Interest, Fees & Discounts (228,507) (141,067)
Loss on Advance Refunding of Bonds (103,994) 0
Transfers Out (4419012) (323,321)
TOTAL NONOPERATING REVENUES
(EXPENSES) (721,378) (410,772)
NET INCOME (448,292) (174,254)
RETAINED EARNINGS - BEGINNING 21053,850 21228,104
RETAINED EARNINGS -ENDING
$ 1,605,558 $ 2,053,850
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 3o, 1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers
Cash Payments to Suppliers for Goods
and Services
Cash Payments for Employees Services
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets
Additions to Long -Term Debt
Principal Paid on Bonds and Notes
Interest Paid on Bonds and Notes
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
0
1992
2,534,073 $
(1,495,629)
(5149161)
524,283
(438,608)
2,313,333
(1,426,032)
(220,206)
(441, 012)
(212,525)
51,621
363,379
595,063
1991
2,396,703
(1,557,831)
(469,277)
369,595
(180,098)
0
(117,480)
(143,264)
(323,319)
(764,161)
61,658
(332,908)
927,971
958,442 $ 595,063
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
Decrease in Receivables
(Increase) in Inventory & Prepaid Expenses
Increase (Decrease) in Accounts Payable
(Decrease) in Accrued Expenses
(Decrease) in Customer Deposits
NET CASH PROVIDED BY OPERATING
ACTIVITIES
0
0
273,086 $ 236,518
195,172
43,203
(251164)
30,464
12,391
(4,869)
524,283 $
175,390
10,673
(46,072)
(28,041)
21,373
(246)
369,595
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
11 September 30, 1992
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 Sander.
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.
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, 1992
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"
certain improvements other
general fixed assets consisting of
Long-term liabilities expected to be financed from governmental
fund types are accounted for in the General Long -Term Debt Account
Group, not in the governmental funds.
The two account groups are not "funds". They are concerned only
with the measurement of financial position. They are not involved
with measurement of results of operations.
Page - 9
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1992
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, 1992
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned,
and their expenses are recognized when they are incurred.
5. BUDGETS AND BUDGETARY ACCOUNTING:
The City follows these procedures in establishing the budgetary
data reflected in the financial statements:
A: Prior to July 1, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the
following October 1. The operating budget includes proposed
expenditures and the means of financing them.
B: Public hearings are conducted to obtain taxpayer comments.
C: Prior to October 1, the budget is legally enacted through the
passage of an ordinance.
D: The City Manager is authorized to transfer budgeted amounts
between departments within any fund, any revisions that alter the
total expenditures of any fund must be approved by the City
Council.
E: Budgets for the General and Proprietary Funds are adopted on a
basis consistent with generally accepted accounting principles
(GAAP).
F: Unused appropriations for all of the above annually budgeted
funds lapse at the end of .the fiscal year.
At year-end the City's cash accounts totalled $1,074,354 of which
$1,074,252 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $103,772 was
covered by federal depository insurance and the remaining $984,480
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: WOO
SECURITY
FMV
FNMA 1,000,000 $1,038,437
TREASURY NOTE 300,000 314,906
FNMA 100,000 108,750
$11462,093
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1992
7: INVENTORIES:
Inventories of the Enterprise Fund are valued at the lower of cost
(first -in, first -out) or market.
8. 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 $9,700 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.
9. 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.
10. ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS:
Allowance for uncollectible accounts receivable in the Proprietary
Fund at September 30, 1992 is $38,104.
11. 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.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1992
NOTE B: RETIREMENT PLANS:
Firemen's Pension Fund:
The City's firemen are covered by the firemen's pension plan. This
contributory plan is operated as part of the State Firemen's Relief
and Retirement Funds. The pension expense for the year ended
September 30, 1992 was $2,506.
Employee Retirement Plan:
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 4.61% 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 $30,237.
NOTE C: LONG-TERM DEBT:
The following is a summary of the City's Long -Term Debt. The
future debt requirements are detailed in schedules included in
these financial statements.
General Long Term Debt:
Combination Tax and Utility System Junior Lien Revenue Certificates
of Obligation, Series 1986 - Original amount of $700,000; principal
paid annually on August 1; Interest paid semi-annually on February
1, and August 1, at rates ranging from 7.00 to 8.00%. The Bonds
were issued for street improvements and are to be repaid from sales
tax and property tax revenues and are further secured by a pledge
of Enterprise Fund Net Revenues.
Note Payable to Gainesville National Bank - due March 1, 1993 plus
interest at 7.50% The note is secured by ambulance equipment owned
by the City.
The Certificates of Obligation require that certain reserve
accounts be maintained as property taxes are collected.
Proprietary Fund:
Texas Utility System Revenue Bonds, Series 1973 - Original amount
of $295,000; principal paid annually on May 15; Interest paid
semi-annually on May 15, and November 15, at 5.875%. The Bonds
were issued for improvements to and extension of the City's
Page - 13
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1992
Waterworks, Sewer and Electric Systems and are to be repaid from
and secured by the Enterprise Fund Net Revenues.
Texas Utility System Revenue Bonds, Series 1976 - Original amount
of $305,000, principal paid annually on May 15; Interest paid
semi-annually on May 15, and November 15, at rates ranging from
5.50 to 7.25%. The Bonds were issued for improvements to and
extension of the City's Waterworks, Sewer and Electric Systems and
are to be repaid from and secured by the Enterprise Fund Net
Revenues.
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.
Capital Leases - Original balance of $83,333, forty eight monthly
rental payments of $2,002.39. 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 Digger Derrick unit. 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:
Year Principal
Interest
Proprietary Fund:
Principal Interest
1993 $255,000 $ 361180 $ 89,265 $ 160,326
1994 90,000 22,900 95,761 155,050
1995 100,000 16,150 102,372 149,394
1996 105,000 81400 94,827 143,585
1997 --- --- 85,000 138,810
Future --- --- 1,9851000 1,174,326
Total $550,000
$ 83,630
$2,452,225 $1,921,491
Page - 14
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1992
NOTE E: ADVANCE REFUNDING OF BONDS:
On December 1, 1991 the City issued $898,994 (part of a total of
$2,230,000 Bond issue) in Revenue Bonds with an average rate of
approximately 6% to advance refund $795,000 of outstanding 1985
Series Revenue Bonds with an average interest rate of 12.75%. The
net proceeds of $868,337 (after $30,657 of bond issue costs) were
used to purchase State and Local Government Series - U.S. Treasury
Obligations. Those securities were placed in an irrevocable trust
with an escrow agent to provide for all future debt service
payments on the 1985 Series Bonds. As a result the 1985 Series
Bonds were considered to be defeased and the liability for those
bonds has been removed from the proprietary fund long-term debt.
Although the advance refunding resulted in the recognition of an
accounting loss of $103,994 for the year ended September 30, 1992,
the City in effect reduced its aggregate debt service payments by
approximately $35,000 over the next nine years and obtained an
economic gain (difference between the present values of the old and
new debt service payments) of approximately $26,500.
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. Power purchased for the current fiscal year
totaled $1,083,.745.
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 - 15
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, 1992
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
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -ENDING
3401502 $ 0 $ 0 $ 0
80,161 0 0 0
8,510 0 0 0
11867 5,420 0 0
0 0 16,205 0
0 0 0 18,345
1,656 0 281 0
17,928 0 0 0
81750 0 0 268
459,374 51420 16,486 189613
142,698 34,490 0 0
0 0 2719707 9%402
0 0 0 0
10,941 0 0 0
2,000 0 0 0
81750 0 14,179 44,467
0 0 0 28,297
0 0 0 721
164,389 34,490 285,886 172,887
2941985 (29,070) (269,400) (154,274)
0 0 0 0
337,887 0 0 0
337,887 0 0 0
632,872 $ (29,070) $ (269,400) $ (154,274)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 16
$ 0 $ 0 $ 0 $ 0 $ 0 $ 340,502
0 116,061 0 0 0 196,222
0 0 0 0 0 81510
2,095 0 0 0 0 91382
157,586 0 0 0 0 173,791
0 0 13,077 0 0 31,422
0 803 0 10318 0 41058
11456 0 777 0 0 209161
0 0 61000 0 0 15,018
1619137 116,864 19,854 11318 0 799,066
1599732 0 0 0 0 336,920
0 0 0 0 0 3719109
0 358,610 0 0 0 358,610
0 0 0 0 0 10,941
0 0 36,134 81719 15,355 62,208
51272 9,650 12,267 14,130 0 108,715
0 75,000 0 0 0 103,297
0 34,773 0 0 0 35,494
165,004 478,033 48,401 22,849 15,355 1,387,294
(3,867)
(361,169) (28,547) (21,531) (15,355) (588,228)
175,000 0 0 0 175,000
0 0 103,125 0 441,012
175,000 0 103,125 0 616,012
81,594 $ (15,355)
27,784
79,373
$ 107,157
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 16
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1992
REVENUES BUDGET ACTUAL VARIANCE
Property Taxes $ 336,300 $ 340,502 $ 41202
Nonproperty Taxes 91,500 80,161 (11,339)
Penalties and Interest on
Deliquent Taxes 11,000 81510 (21490)
License and Permits 11200 11867 667
Fees and Services 0 0 0
Grants and Intergovernmental 0 0 0
Interest Income 5,300 1,656 (3,644)
Miscellaneous Income 15,100 17,928 21828
Donations 0 81750 81750
TOTAL REVENUES 460,400 45%374 (11026)
EXPENDITURES
General Government 150,040 142,698 71342
Public Safety 0 0 0
Hiways and Streets 0 0 0
Health and Welfare 13,400 10,941 21459
Culture and Recreation 4,500 21000 21500
Capital Outlay 21525 81750 (61225)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 170,465 164,389 61076
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 289,935 294,985 51050
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 0 0
Transfers In 327,445 337,887 10,442
TOTAL OTHER FINANCING
SOURCES (USES) 327,445 337,887 10,442
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 617,380 $ 632,872 $ 150492
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGETI ACTUAL VARIANCE
$ 0 $ 0 $ 0 $
0
0
8,500
0
0
0
0
0
8,500
0 0
0 0
51420 (31080)
0 0
0 0
0 0
0 0
0 0
5,420 (31080)
35,782 34,490 1,292
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
359782 34,490 11292
BUDGE JACTUALIVARIANCE
0
0
15,400
0
0
0
0
15,400
0
270,318
0
0
0
14,800
0
0
285,118
0 $ 0
0 0
0 0
0 0
16,205 805
0 0
281 281
0 0
0 0
16,486
0
271,707
0
0
0
14,179
0
0
285,886
(27,282) (29,070) (1,788) (269,718) (269,400)
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
1,086
0
(11389)
0
0
0
621
0
0
(768)
318
0
0
0
1,788) $ (269,718) $ (269,400) $ 318
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 30, 1992
REVENUES BUDGET I 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 18,100 18,345 245
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 268 268
TOTAL REVENUES 18,100 18,613 513
EXPENDITURES
General Government 0 0 0
Public Safety 43,419 99,402 (55,983)
Hiways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 51,700 44,467 71233
Debt Service:
Principal 13,928 28,297 (14,369)
Interest 11090 721 369
TOTAL EXPENDITURES 110,137 1721887 (62,750)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (92,037) (154,274) (62,237)
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (92,037) $ (154,274) $ (62,237)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDG I ACTUAL VARIANCE
$ 0 $ 0 $ 0 $
0 0 0
0
4,900
1539840
0
0
0
0
158,740
0
2,095
157,586
0
0
1,456
0
161,137
0
(2,805)
3,746
0
0
1,456
0
2,397
BUDGET
0 $
1102500
ACTUAL VARIANCE
0 $ 0
116,061 51561
0
0
0
0
0
0
0
0
0
0
0
0
0
803
803
0
0
0
0
0
0
110,500 116,864
150,897 159,732 (81835) 0 0
0 0 0 0 0
0 0 0 151,743 358,610
0 0 0 0 0
0 0 0 0 0
0 51272 (51272) 10,500 91650
0 0 0 75,000 75,000
0 0 0 33,950 34,773
1501897 1651004 (14,107) 271,193 478,033
7,843
0
0
(3,867) (11,710) (160,693)
0 0 0
0 0 0
0 0 0
6,364
0
0
(2061867)
0
0
850
0
(823)
(206,840)
(361,169) (200,476)
175,000 175,000
0 0
175,000
175,000
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 30, 1992
REVENUES 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 10,750 13,077 21327
Interest Income 0 0 0
Miscellaneous Income 0 777 777
Donations 0 6,000 61000
TOTAL REVENUES 10,750 19,854 9,104
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 35,763 36,134 (371)
Capital Outlay 61620 12,267 (51647)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 42,383 481401 (61018)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (31,633) (28,547) 31086
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (31,633) $ (28,547) $ 3,086
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGET ACTUAL VARIANCE BUDGET ACTUA� VARIANCE
0$ 0$ 0$ 0$ 0$ 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
81000 0 (81000) 0 0 0
0 0 0 0 0 0
0 11318 11318 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
81000 1,318 (61682) 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
321185 81719 23,466 12,600 15,355 (21755)
11700 14,130 (12,430) 800 0 800
0 0 0 0 0 0
0 0 0 0 0 0
331885 22,849 11,036 13,400 15,355 (11955)
(25,885) (21,531) 4,354 (13,400) (15,355) (1,955)
0 0 0 0 0 0
0 103,125 103,125 0 0 0
0 103,125 103,125 0 0 0
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 17
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, 1992
$ 71,870
126,395
453,065
105,094
12,000
478,638
$ 1,247,062
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For the Year Ending September 30, 1992
COST BEGINNING I I ADDITION I DELETION I ENDING
Land $ 63,120 $ 8,750 $ 0 $ 71,870
Buildings 126,395 0 0 126,395
Equipment 443,339 38,226 28,500 453,065
Fire Equipment 60,627 44,467 0 105,094
Swimming Pool 0 12,000 0 12,000
Improvements 473,366 51272 0 478,638
INVESTMENT IN GENERAL
FIXED ASSETS $ 11166,847 $ 108,715 $ 28,500 $ 11247,062
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 19
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30, I
BEGINNINGj IADDITIONS DELETIONS ENDING
COST
Water System $ 1,174,130 $ 165,215 $ 0 $ 1,339,345
Sewer System 11810,144 120,807 0 11930,951
Electric System 11572,994 36,619 0 1,609,613
Equipment 212,196 115,967 81000 3209163
Furniture & Fixtures 114,161 0 0 114,161
Building Improvements 14,623 0 0 14,623
Easement 11500 0 0 10500
TOTAL COST
$ 4,899,748 $ 438,608 $ 8,000 $ 5,330,356
Water System $ 459,176 $ 46,703 $ 0 $ 505,879
Sewer System 487,305 47,480 0 534,785
Electric System 7999816 46,743 0 846,559
Equipment 142,256 42,521 81000 176,777
Furniture & Fixtures 96,458 10,263 0 106,721
Building Improvements 41386 11462 0 51848
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 1,989,397 $ 195,172 $ 8,000 $ 2,176,569
NET PROPERTY, PLANT &EQUIPMENT $ 2,910,351 $ 3,153,787
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 20
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1992
BOND OBLIGATIONS
Series 1986 Certificates of Obligation
NOTES PAYABLE
Note Payable -Gainesville National Bank
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
TOTAL ACCRUED COMPENSATED ABSENCES
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG - TERM DEBT
0
4,600
5,100
$ 375,000
175,000
9,700
$ 559,700
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 21
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1992
Series 1986 Certificates of Obligation
Year Ending
September 30,
1993 $
1994
1995
1996
E�
PRINCIPAL
80,000 $
90,000
100,000
105,000
375,000 $
Note Payable - Gainseville National Bank
Year Ending
September 30,
1992
PRINCIPAL
$ 175,000 $
$ 175,000 $
Total Bond Obligations and Notes Payable
Year Ending
September 30,
1993
1994
1995
1996
INTEREST.
28,700 $
22,900
16,150
8,400
76,150 $
INTEREST
7,480 $
7,480 $
TOTAL
REQUIREMENTS
1089700
112,900
116,150
113,400
451,150
TOTAL
REQUIREMENTS
182,480
182,480
TOTAL
PRINCIPAL INTEREST REQUIREMENTS
$ 255,000 $ 36,180 $ 291,180
90,000 22,900 112,900
100,000 16,150 116,150
105,000 81400 113,400
$ 550,000 $ 83,630 $ 633,630
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 23
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 1992
REVENUE BOND OBLIGATIONS
Series 1973
Series 1976
Series 1977
Series 1982
Series 1985
Series 1991
TOTAL REVENUE BONDS
BEGINNING ADDITIONS IREDUCTIONS ENDING
$ 40,000 $ 0 $ 351000 $ 5,000
175,000 0 15,000 160,000
165,000 0 165,000 0
280,000 0 280,000 0
795,000 0 795,000 0
0 21230,000 15,000 21215,000
$ 1,455,000 $ 21230,000 $ 11305,000 $ 21380,000
NOTES PAYABLE
Note Payable - Gainesville National Bank $ 51930 $
TOTAL NOTES PAYABLE $ 51930 $
CAPITAL LEASES
Kansas State Bank
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
0 $ 51930 $ 0
$ 0 $ 83,333 $ 11,108 $ 72,225
$ 0 $ 83,333 $ 11,108 $ 72,225
$ 1,460,930 $ 2,313,333 $ 1,322,038 $ 2,452,225
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1992
Series 1973 Revenue Bonds
Year Ending
September 30, PRINCIPAL
1993 $ 5,000 $
$ 5,000 $
Series 1976 Revenue Bonds
Year Ending
September 30, PRINCIPAL
1993 $ 50,000 $
1994 55,000
1995 55,000
INTEREST
294 $
294 $
INTEREST
8,800 $
6,050
3,025
$ 160,000 $ 17,875 $
TOTAL
REQUIREMENTS
5,294
5,294
TOTAL
REQUIREMENTS
58,800
01,050
58,025
177.875
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1992
Series 1991 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1993 $ 15,000 $ 146,468 $ 161,468
1994 20,000 145,732 165,732
1995 25,000 144,712 169,712
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 110,000 116,372 226,372
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
$ 2,215,000 $ 1,893,448 $ 4,108,448
Capital Lease -Kansas State Bank
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1993 $ 19,265 $ 4,764 $ 24,029
1994 20,761 3,268 24,029
1995 22,372 11657 24,029
1996 9,827 185 10,012
$ 72,225 $ 91874 $ 82,099
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1992
TOTAL ALL DEBT
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1993 $ 89,265 $ 160,326 $ 249,591
1994 95,761 155,050 250,811
1995 102,372 149,394 251,766
1996 94,827 143,585 238,412
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 110,000 116,372 226,372
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 652370 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
$ 2,452,225 $ 1,921,491 $ 4,373,716
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1992
GENERAL FUND
Swimming Pool Funds $ 98,469
Police Department Funds 1,070
TOTAL GENERAL FUND $ 99,539
ENTERPRISE FUND
Revenue Bond I & S Funds $ 25,660
Revenue Bond Reserve Funds 237,482
Customer Utility Deposits 58,675
1991 Bond Construction Funds 542,341
TOTAL ENTERPRISE FUND $ 864,158
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 26
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1992
GENERAL FUND
Swimming Pool Funds
Police Department Funds
TOTAL GENERAL FUND
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds - Revenue Bonds
TOTAL ENTERPRISE FUND
1,070
$ 99,539
$ 268,014
$ 268,014
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 27
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
NUMBER OF CONNECTIONS
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 1992
ELECTRIC
1,331
263
1,312 1,594
RESIDENTIAL
WATER RATES & COMMERCIAL
Deposit $ 50.00
First 1,000 Gallons (minimum) $ 10.00
1,000 TO 5,000 Gallons $ 1.60
51000 TO 15,000 Gallons $ 1.80
15,000 TO 30,000 Gallons $ 2.20
Over 30,000 Gallons $ 3.00
SEWER RATES
First 1,000 Gallons (minimum)
Over 1,000 Gallons
Maximum
ELECTRIC RATES
Deposit
Facility Charge
Energy Charge
Demand Charge.
First 6 KWH (minimum)
Over 6KWH
RESIDENTIAL COMMERCIAL
$ 10.00 $ 16.00
$ 0.90 $ 0.90
$ 25.00 $ 125.00
SMALL
RESIDENTIAL COMMERCIAL
$
9.00/Month
$
11.50/Month
$
$
.0579161 /kwh
$
.06397/kwh
$
GALLONS OF WATER METERED (APPROX.)
165,505,640
SEWER
1,142
123
LARGE
COMMERCIAL
50.00
0224/KWH
50.00
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 29
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 1992
1991 Year Original Tax Roll $ 334,171
Adjustments to Original Tax Roll 71776
ADJUSTED TAX ROLL 341,947
Less: Collections and Adjustments 323,476
CURRENT YEAR TAXES RECEIVABLE -END OF YEAR 18,471
PRIOR YEAR TAXES RECEIVABLE -END OF YEAR 42,187
TOTAL TAXES RECEIVABLE - END OF YEAR $ 60,658
Assessed Value $ 73,804,893
Tax Rate per $100 $ 0.4633
Percent of Current Taxes Collected to Billed 94.60%
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 30
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, 1992, 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. Continued development of month end accounting procedures
checklists needs to be done to insure that all month end
entries are made and reports generated prior to closing the
month on the computer. These checklists would help reduce the
number of month end journal entries and reduce the possibility
of closing the month prior to all reports being run.
2. Accounting job procedure manuals need to be developed to allow
for continuity in the department when there is staff turnover.
These manuals could be in the form of an outline and should
include a calendar of when specific tasks are performed
throughout the year.
3. The City's computer package for tracking the Electric
department's inventory needs to be maintained on a more timely
basis. The software needs to be documented so that the City's
staff understands how to use the package, including
interfacing it with the accounts payable programs. Procedures
need to be put in place to insure that it is updated on a
regular (monthly) basis so that it can be used as a management
tool for the Electric department.
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 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
management, Mayor and City Council
Thank you,
VZ6 V4 C 6,.f , 0,
William C. Spore & Company, P.C.
Certified Public Accountants
December 11, 1992
the information and use of the
of the City of Sanger, Texas.
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