1993 Annual Financial ReportSECRETARY
®�IaINAL COPY
CITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
TABLE OF CONTENTS
PAGE #
AUDITOR'S REPORT 1
CITY OFFICIALS 2
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS 3
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES 4
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES -
BUDGET AND ACTUAL 5
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN RETAINED EARNINGS - PROPRIETARY FUND 6
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND 7
NOTES TO FINANCIAL STATEMENTS 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
r
William l_
Spore Company,
Certified Public
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Sanger, Texas
We have audited the accompanying general purpose financial
statements of the City of Sanger, Texas as of September 30, 1993,
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, Governmental Auditing Standards, issued by the
Comptroller General of the United States, and the provisions of the
Office of Management and Budget Circular A-128, "Audits of State
and Local Governments." 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, 1993,
and the results of its operations and the cash flows of its
proprietary fund types for the year then ended in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on
the general purpose financial statements taken as a whole. The
combining and individual fund and account group financial
statements and schedules listed in the table of contents are
presented for purposes of additional analysis and are not a
required part of the general purpose financial statement of the
City of Sanger, Texas. Such information has been subjected to the
auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion is fairly presented in all
material respects in relation to the general purpose financial
statements taken as a whole.
William C. Spore & Company, P.C.
Certified Public Accountants
February 11, 1994
III ME
1600 Airport Freeway, Suite 208 • Bed ford, TX 76022 • 817/545-1040
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, 1993
Nel Armstrong
Jerry Jenkins
Margie Braxton
Tommy Kincaid
Russell Madden
Jack Richardson
John Hamilton
Rosalie Chavez
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
TOTALASSETS
LIABILITIES
Accounts Payable
Accrued Expenses
Customer Deposits
Deferred Revenues
Long -Term Debt:
Combensated Absences
Notes Payable
Revenue Bonds Payable
Certificate of Obligation Payable
Capital Leases
TOTAL LIABILITIES
FUND EQUITY
Contributed Capital
Investment in General Fixed Assets
Retained Earning - Reserved
Retained Earning - Unreserved
Fund Balance - Reserved
Fund Balance - Unreserved
TOTAL FUND EQUITY
TOTAL LIBILITIES AND
FUND EQUITY
September so, 1993
GENERAL
10,834 $
51,015
10,704
0
54,845
0
0
4,124
0
0
ENTERPRISE
20,398
0
0
3201331
347
1111874
0
2611130
3,633,450
$ 131,522 $ 4,347,530
161,540
7,039
0
51,015
0
0
0
0
0
219,594
0
0
0
0
4,124
(92,196)
(88,072)
$ 144,593
71,362
60,575
0
0
0
2,310,000
0
115,480
21702,010
100,196
0
249,697
11295,627
0
0
196459520
$ 131,522 $ 4,347,530
0 0 51,015 60,658
0 0 10,704 61,242
0 0 320,331 245,750
0 0 55,192 21650
0 0 111,874 78,801
0 0 0 21627
0 0 265,254 963,697
1,512,443 0 5,145,893 4,400,849
0 495,394 495,394 559,700
$ 11512,443 $ 495,394 $ 61486,889 $ 61486,631
$ 0 $ 0 $ 306,133 193,278
0 0 78,401 102,122
0 0 60,575 582675
0 0 51,015 60,658
0 12,800 12,800 91700
0 182,896 182,896 175,000
0 0 21310,000 2,3801000
0 295,000 295,000 375,000
0 4,698 120,178 72,225
0 4951394 31416,998 3,426,658
0 0 100,196 100,196
11512,443 0 11512,443 1,247,062
0 0 249,697 268,014
0 0 11295,627 11337,544
0 0 41124 99,539
0 0 (92,196) 71618
11512,443 0 31069,891 31059,973
$ 1,512,443 $ 495,394 $ 61486,889 $ 61486,631
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED 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 3o, 1993
1993 1992
$ 326,015 $ 340,502
223,715 196,222
8,062 8,510
201775 91382
1851805 173,791
1631691 31,422
39365 4,058
51041 20,161
21480 15,018
9381949
799,066
EXPENDITURES
General Government 361,719 336,920
Public Safety 304,383 371,109
Hiways and Streets 441,588 358,610
Health and Welfare 11,091 10,941
Culture and Recreation 71,647 62,208
Capital Outlay 280,381 108,715
Debt Service:
Principal 256,232 103,297
Interest 36,662 35,494
TOTAL EXPENDITURES 11763,703 11387,294
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 -BEGINNING
(824,754) (588,228)
188,826
440,699
175,000
441, 012
629,525 616,012
(1951229) 27,784
1071157 79,373
FUND BALANCE -ENDING $ (881072) $ 107,157
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 so, 1993
REVENUES BUDGET ACTUAL VARIANCE
Property Taxes $ 319,421 $ 326,015 $ 6,594
Nonproperty Taxes 198,000 223,715 25,715
Penalties and Interest on
Deliquent Taxes 11,000 81062 (21938)
License and Permits 11,900 20,775 81875
Fees and Services 177,600 185,805 81205
Grants and Intergovernmental 30,918 163,691 132,773
Interest Income 31500 31365 (135)
Miscellaneous Income 17,000 51041 (11,959)
Donations 0 21480 21480
TOTAL REVENUES 769,339 938,949 16%610
EXPENDITURES
General Government 346,171 361,719 (15,548)
Public Safety 314,021 304,383 91638
Hiways and Streets 103,365 441,588 (338,223)
Health and Welfare 11,466 11,091 375
Culture and Recreation 90,822 71,647 19,175
Capital Outlay 80,540 280,381 (199,841)
Debt Service:
Principal 255,000 256,232 (11232)
Interest 28,700 36,662 (71962)
TOTAL EXPENDITURES 11230,085 11763,703 (533,618)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (460,746) (824,754) (364,008)
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 188,826 188,826
Transfers In 460,746 440,699 (20,047)
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
460,746
629,525
0 (195,229) $
107,157
$ (88,072)
168,779
(195,229)
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 30, 1993
1993
OPERATING REVENUES
Charges and Fees $ 2,834,347 $
OPERATING EXPENSES
Personnel Services 518,128
Purchase of Services 15455,922
Materials and Supplies 67,224
Depreciation 205,102
Franchise Fees 62,233
TOTAL OPERATING EXPENSES 2,308,609
OPERATING INCOME 525,738
NONOPERATING REVENUES (EXPENSES)
Interest Income
Debt Service Interest, Fees & Discounts
Loss on Advance Refunding of Bonds
Transfers Out
TOTAL NONOPERATING REVENUES
(EXPENSES)
NET INCOME
RETAINED EARNINGS -BEGINNING
RETAINED EARNIN-
GS ENDING
1992
2,495,739
526,731
1,372,538
71,121
195,172
57,091
2,222,653
273,086
16,315 52,135
(161,588) (228,507)
0 (103,994)
(440,699) (441,012)
(585,972) (721,378)
(60,234) (448,292)
1,605,558 2,053,850
$ 1,545,324 $ 1,605,558
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
CITY OF SANGER
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
For the Year Ended September 3o, 1993
1993 1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 21761,666 $ 21534,073
Cash Payments to Suppliers for Goods
and Services (1,603,799) (1,495,629)
Cash Payments for Employees Services (538,236) (514,161)
NET CASH PROVIDED BY OPERATING ACTIVITIES 619,631 524,283
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets (684,765) (4389608)
Additions to Long -Term Debt 70,369 21313,333
Principal Paid on Bonds and Notes (97,114) (11426,032)
Interest Paid on Bonds and Notes (162,954) (220,206)
Cash Transfered to Other Funds (440,699) (441,012)
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (11315,163) (212,525)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 18,618 51,621
NET INCREASE (DECREASE) IN CASH (676,914) 363,379
CASH - BEGINNING OF YEAR 958,442 595,063
CASH - END OF YEAR $ 281,528 $ 958,442
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating Income $ 525,738 $ 273,086
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation 205,102 195,172
(Increase) Decrease in Receivables (74,581) 43,203
(Increase) in Inventory & Prepaid Expenses (30,446) (252164)
Increase (Decrease) in Accounts Payable 11,290 30,464
Increase (Decrease) in Accrued Expenses (19,372) 12,391
Increase (Decrease) in Customer Deposits 11900 (41869)
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 619,631 $ 524,283
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1993
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
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.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1993
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
oDOerations 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, 1993
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, 1993
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 $296,486 of which
$296,386 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $139,034 was
covered by federal depository insurance and the remaining $157,352
was covered by collateral held by the pledging Bank's agent in the
name of the City. There were no uncollateralized cash accounts.
The securities pledged by the City's depository institution are as
follows:
SECURITY PAR
TREASURY NOTE 11300,000
FNMA 100,000
FMV
1,478,344
103,281
$1,581,625
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1993
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 CitI 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 $12,800 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, 1993 is $37,390.
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.
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
Page - 12
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1993
and Retirement Funds. The pension expense for the year ended
September 30, 1993 was $3,410.
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 4.25% 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 $30,755.
NOTE C: LONG-TERM DEBT:
The following is a summar
future debt requirements
these financial statements.
General Long Term Debt:
y of the City's Long -Term Debt. The
are detailed in schedules included in
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 11.00%. 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.
The Certificates of Obligation require that certain reserve
accounts be maintained as property taxes are collected.
Note Payable to Gainesville National Bank - The note bears interest
at 1% below prime rate and requires quarterly principal payments of
$50,000 beginning December 15, 1993, with the balance due September
15, 1994. The note proceeds were used for street improvements.
Capital Lease - Ford Motor Credit - Original balance of $9,500.
The lease requires twenty four monthly rental payments of $273.54,
with eighteen payments remaining at September 30, 1993. The City
has a purchase option during the term of the lease to purchase the
quipment at a designated purchase option pri
ece. The
City intends
Page - 13
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1993
Proprietary Fund:
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 Lease - Kansas State Bank - Original balance of $83,333.
The lease requires forty eight monthly rental payments of
$2,002,39, with twenty nine payments remaining at September 30,
1993. The City has a purchase option during the term of the lease
to purchase the equipment at a designated purchase option price.
The City intends to exercise this option at the end of the lease
term. The proceeds of the lease were used to purchase a Digger
Derrick unit. The equipment is security for the lease.
Capital Lease - Case Credit Corporation - Original balance of
$381750. The lease requires forty eight monthly rental payments of
$939,74, with forty four payments remaining at September 30, 1993.
The City has a purchase option during the term of the lease to
purchase the equipment at a designated purchase option price. The
City intends to exercise this option at the end of the lease term.
The proceeds of the lease were used to purchase a trencher. The
equipment is security for the lease.
Capital Lease - Ford Motor Credit - Original balance of $31,618.
The lease requires forty eight monthly rental payments of $752.73,
with forty payments remaining at September 30, 1993. 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, 1993
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
1994 $275,981 $ 32,242 $ 111,886 $ 159,235
1995 101,613 16,178 119,757 152,319
1996 105,000 81400 1131570 145,152
1997 --- --- 95,267 139,073
1998 --- --- 90,000 134,050
Future --- --- 11895,000 1,040,276
Total $482,594 $ 56,820 $2,425,480 $1,770,105
NOTE E: PRIOR -YEAR DEFEASANCE OF DEBT:
In 1992, the City defeased its Series 1985 Revenue Bonds by placing
the proceeds of new bonds in an irrevocable trust to provide for
all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds
are not included in the City's financial statements On September
301 1993, $765,000 of bonds outstanding are considered defeased.
NOTE F: PURCHASE COMMITMENT:
On January 7, 1985 the City entered into a ten year contract with
the Brazoz Electric Power Cooperative, Inc, whereby the City
purchases electric power and energy at agreed upon rates, subject
to a fuel adjustment charge and power adjustment on demand and
energy charges. Power purchased for the current fiscal year
totaled $1,215,622.
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
AN D ACCOU NT G ROU P STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September au, 199a
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 -BEGINNING
FUND BALANCE -ENDING
3261015 $ 0 $ 0 $ 0
97,221 0 0 0
81062 0 0 0
51850 10,151 0 0
0 0 20,612 0
0 0 0 31,701
750 0 49 0
41173 0 0 0
0 0 11150 0
442,071 10,151 21,811 31,701
137,495 42,357 0 0
0 0 254,090 50,293
0 0 0 0
11,091 0 0 0
0 0 0 0
51787 0 12,695 17,891
0 0 0 0
0 0 0 0
154,373 42,357 266,785 68,184
287,698 (32,206) (244,974) (36,483)
0 0 0 0
440,699 0 0 0
440,699 0 0 0
728,397 $ (32,206) $ (244,974) $ (36,483)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 16
$ 0 $
0
0
3,577
159,937
0
0
868
0
164,382
0 $
126,494
0
0
0
28,419
875
0
0
155,788
181,867 0
0 0
0 441,588
0 0
0 0
0 18,774
0 256,232
0 36,662
181,867 753,256
0
1,197
0
5,318
0
0
0
6,515
0
0
0
28,305
14,018
0
0
42,323
0
0
0
0
0
0
1,330
1,330
0
0
5,256
98,253
1,691
0
0
105,200
0
0
0
0
0
0
0
326,015
223,715
8,062
20,775
185,805
163,691
3,365
5,041
2,480
0 938,949
0 0 0 361,719
0 0 0 304,383
0 0 0 441,588
0 0 0 11,091
7,069 24,554 11,719 71,647
41353 203,293 31570 280,381
0 0 0 256,232
0 0 0 36,662
11,422 227,847 15,289 1,763,703
(17,485) (597,468) (35,808) (10,092) (122,647) (15,289)=
0 188,826
0 0
0 188,826
0
0
C�]
0
0
0
0
0
0
0
0
(824,754)
188,826
440,699
629,525
(195,229)
107,157
$ (88,072)
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, 1993
REVENUES I BUDGET ACTUAL VARIANCE
Property Taxes $ 319,421 $ 326,015 $ 6,594
Nonproperty Taxes 90,000 97,221 7,221
Penalties and Interest on
Deliquent Taxes 11,000 81062 (21938)
License and Permits 11200 51850 41650
Fees and Services 0 0 0
Grants and Intergovernmental 0 0 0
Interest Income 31500 750 (21750)
Miscellaneous Income 17,000 41173 (12,827)
Donations 0 0 0
TOTAL REVENUES 442,121 4421071 (50)
EXPENDITURES
General Government 147,987 137,495 10,492
Public Safety 0 0 0
Hiways and Streets 0 0 0
Health and Welfare 11,466 11,091 375
Culture and Recreation 41500 0 41500
Capital Outlay 61800 51787 11013
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 170,753 154 7373 16,380
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 271,368 287,698 16,330
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0 0 0
Transfers In 460t746 440,699 (20,047)
TOTAL OTHER FINANCING
SOURCES (USES) 460,746 440,699 (20,047)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 732,114 $ 728,397 $ (31717)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGETI ACTUAL VARIANCE
$ 0 $ 0 $ 0ma ma
$
0
0
7,500
0
0
0
0
0
7F'1LiIl
0
10,151
0
0
0
0
0
10,151
0
2,651
0
0
0
0
0
2,651
BUDGET I I ACTUAL
0
0
15,400
0
0
0
0
15,400
0
0
20,612
0
49
0
1,150
21, 811
VARIANCE
0
0
0
51212
0
49
0
1,150
6,411
38,804 42,357 (3,553) 0 0 0
0 0 0 264,899 254,090 10,809
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
31750 0 31750 14,000 12,695 11305
0 0 0 0 0 0
0 0 0 0 0 0
421554 42,357 197 278,899 266,785 12,114
(35,054) (32,206)
0
0
U
0
0
�7
2,848
0
0
0
(263,499) (244,974)
0
0
C�7
18,525
C
2,848 $ (263,499) $ (244,974) $ 18,525
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, 1993
REVENUES I ACTUAL 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 18,100 31,701 13,601
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 18,100 31,701 13,601
EXPENDITURES
General Government 0 0 0
Public Safety 49,122 50,293 (1,171)
Hiways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 15,500 17,891 (2,391)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 64,622 68,184 (31562)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (46,522) (36,483) 10,039
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 $ (46,522) $ (36,483) $ 10,039
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGET ACTUAL I VARIAN I BUDGET j I ACTUAL VARIANCE
$ 0$ 0$ 0$ 0$ 0$ 0
0 0 0 108,000 126,494 18,494
0 0 0 0 0 0
3,200 31577 377 0 0 0
154,200 159,937 51737 0 0 0
0 0 0 0 28,419 28,419
0 0 0 0 875 875
0 868 868 0 0 0
0 0 0 0 0 0
157,400 164,382 61982 108,000 1559788 47,788
159,380 181,867 (22,487) 0 0 0
0 0 0 0 0 0
0 0 0 103,365 441,588 (338,223)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 24,500 18,774 51726
0 0 0 255,000 256,232 (11232)
0 0 0 28,700 36,662 (71962)
159,380 181,867 (22,487) 411,565 753,256 (341,691)
(11980) (17,485) (15,505) (303,565) (597,468) (293,903)
0 0 0 0 188,826 188,826
0 0 0 0 0 0
0 0 0 0 188,826 188,826
$ (1,980) $ (17,485) $ (15,505) $ (303,565) $ (408,642) $ (105,077)
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, 1993
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)
BUDGET I I ACTUALJ I VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 1,197 1,197
0 0 0
12,818 59318 (71500)
0 0 0
0 0 0
0 0 0
12,818 61515 (6,303)
0 0 0
0 0 0
0 0 0
0 0 0
39,042 28,305 10,737
91740 14,018 (41278)
0 0 0
0 0 0
48,782 42,323 61459
(35,964) (35,808) 156
0 0 0
0 0 0
0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (35,964) $ (35,808) $ 156
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGET ACTUAL VARIANCE BUDGET I ACTUAL VARIANCE
$ 0$ 0$ 0$ 0$ 0$ 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 81000 51256 (21744)
0 0 0 0 98,253 98,253
0 0 0 0 11691 11691
0 0 0 0 0 0
0 1,330 11330 0 0 0
0
97,200
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
91482 71069 21413 24,873 24,554 319
41000 41353 (353) 0 203,293 (203,293)
0 0 0 0 0 0
0 0 0 0 0 0
133482 11,422 2,060 24,873 227,847 (202,974)
(13,482) (10,092) 31390 (16,873) (122,647) (105,774)
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
1,330
11330 81000 105,200
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
CITY OF SANGER
COMBINING 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 a0, 199a
$ 0
0
0
EXPENDITURES
General Government 0
Public Safety 0
Hiways and Streets 0
Health and Welfare 0
Culture and Recreation 12,925
Capital Outlay 21250
Debt Service:
Principal 0
Interest 0
TOTAL EXPENDITURES 15,175
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (15,175)
OTHER FINANCING SOURCES (USES)
Proceeds of Notes Payable 0
Transfers In 0
TOTAL OTHER FINANCING
SOURCES (USES) 0
$ 0
0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (15,175) $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
0
0
0
0
0
0
0
0
0
0
0
11,719
3,570
0
0
VARIANCE
$ 0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,206
(1,320)
0
0
15,289 (114)
(15,289) (114)
u
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
BUDGET ACTUAL VARIANCE
$ 319,421 $ 326,015 $ 61594
198,000 223,715 25,715
0
11,000 8,062 (2,938)
11,900 20,775 81875
177,600 185,805 81205
30,918 163,691 132,773
31500 31365 (135)
17,000 51041 (11,959)
0 21480 21480
769,339 938,949 169,610
346,171
314,021
103,365
11,466
90,822
80,540
255,000
28,700
11230,085
(460 t746)
0
460,746
460,746
0
361,719 (15,548)
304,383 9,638
441,588 (338,223)
11,091 375
71,647 19,175
280,381 (199,841)
256,232 (11232)
36,662 (71962)
11763,703 (533,618)
(824,754) (364,008)
188,826 188,826
440,699 (20,047)
629,525 168,779
(195,229) $ (195,229)
107,157
$ (88,072)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 17
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, 1993
G�
71,870
1261395
4971262
1221985
2151293
4781638
$ 1,512,443
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For the Year Ending September 30, 1993
COST BEGINNING ADDITIONS DELETIONS ENDING
Land $ 713870 $ 0 $ 0 $ 71,870
Buildings 126,395 0 0 126,395
Equipment 453,065 59,197 15,000 497,262
Fire Equipment 105,094 17,891 0 122,985
Swimming Pool 12,000 203,293 0 215,293
Improvements 478,638 0 0 478,638
INVESTMENT IN GENERAL
FIXED ASSETS $ 11247,062 $ 280,381 $ 15,000 $ 11512,443
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, 1993
BEGINNING I DELETIO I ENDING
COST
Water System $ 1,339,345 $ 549,068 $ 0 $ 1,888,413
Sewer System 11930,951 0 0 1,930,951
Electric System 1,609,613 37,474 0 11647,087
Equipment 320,163 90,681 0 410,844
Furniture & Fixtures 114,161 7,542 0 121,703
Building Improvements 14,623 0 0 14,623
Easement 11500 0 0 11500
TOTAL COST $ 5,330,356 $ 684,765 $ 0 $ 6,015,121
ACCUMULATED DEPRECIATION
Water System $ 505,879 $ 58,271 $ 0 $ 564,150
Sewer System 534,785 53,017 0 587,802
Electric System 846,559 50,033 0 896,592
Equipment 176,777 39,765 0 216,542
Furniture & Fixtures 106,721 21553 0 109,274
Building Improvements 51848 11463 0 71311
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 2,176,569 $ 205,102 $ 0 $ 2,381,671
NET PROPERTY, PLANT & EQUIPMENT $ 31153,787 $ 31633,450
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 20
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1993
Series 1986 Certificates of Obligation
NOTES PAYABLE
Note Payable -Gainesville National Bank
CAPITAL LEASES
Ford Motor Credit
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
TOTAL ACCRUED COMPENSATED ABSENCES
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT
4,300
8,500
$ 295,000
182,896
4,698
12,800
$ 495,394
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 21
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 1993
1BEGINNING1 JADDITION7S IREDUCTIONS ENDING
BOND OBLIGATIONS
Series 1986 Certificates of Obligation $ 375,000 $ 0 $
NOTES PAYABLE
Note Payable -Gainesville National Bank $ 175,000 $
Note Payable - Gainesville National Bank 0
TOTAL NOTES PAYABLE $ 175,000 $
CAPITAL LEASES
Ford Motor Credit $
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay $
Accrued Sick Pay
TOTAL ACCRUED COMPEN. ABSENCES $
80,000 $ 295,000
175,000 $ 0
182,896 $ 175,000 $ 182,896
0 $ 5,930 $ 1,232 $ 4,698
4,600 $
9,700 $
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT $ 559,700 $
0 $ 300 $ 4,300
3,400 0 8,500
3,400 $ 300 $ 12,800
192,226 $ 256,532 $ 495,394
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 22
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1993
Series 1986 Certificates of Obligation
Year Ending
September 30, PRINCIPAL
1994 $ 901000 $
1995 100,000
1996 105,000
$ 295,000 $
INTEREST
22,900 $
16,150
8,400
47,450 $
Note Payable - Gainseville National Bank
Year Ending
September 30, PRINCIPAL INTEREST
TOTAL
REQUIREMENTS
112,900
1161150
1131400
342,450
TOTAL
REQUIREMENTS
1994 $ 182,896 $ 9,145 $ 192,041
$ 182,896 $ 91145 $ 192,041
Capital Lease - Ford Motor Company
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 3,085 $ 197 $ 3,282
1995 1,613 28 1,641
$ 41698 $ 225 $ 41923
Total Bond Obligations and Notes Payable
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 275,981 $ 32,242 $ 308,223
1995 101,613 16,178 117,791
1996 105,000 81400 113,400
$ 482,594 $ 56,820 $ 539,414
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, 1993
REVENUE BOND OBLIGATIONS
Series 1973
Series 1976
Series 1991
TOTAL REVENUE BONDS
CAPITAL LEASES
Kansas State Bank
Case Credit Corporation
Ford Motor Credit
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEGINNINGj JADDITIONS1REDUCTIO I ENDING
$ 51000 $ 0 $
160,000 0
21215,000 0
0 38,750
0 31,619
$ 2,452,225 $
5,000 $ 0
50,000 110,000
15,000 2,2001000
70,000 $ 21310,000
19,265 $
3,017
4,832
70,369 $ 27,114 $
52,960
35,733
26,787
115,480
70,369 $ 97,114 $ 21425,480
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1993
Series 1976 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 55,000 $ 6,050 $ 61,050
1995 55,000 31025 58,025
$ 110,000 $ 91075 $ 119,075
Series 1991 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
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 1305000 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
$ 21200,000 $ 11746,980 $ 31946,980
Capital Lease - Kansas State Bank
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 20,761 $ 31268 $ 24,029
1995 22,372 1,657 24,029
1996 91827 185 10,012
$ 52,960 $ 51110 $ 58,070
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1993
Capital Lease - Case Credit Corporation
Year Ending
September 30,
1994
1995
1996
1997
PRINCIPAL
$ 8,733
9,459
10,244
7,297
$ 35,733
Capital Lease -Ford Motor Credit
TOTAL
INTEREST REQUIREMENTS
$ 21544 $ 11,277
11818 11,277
1,033 11,277
221 7,518
$ 51616 $ 41,349
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 71392 $ 11641 $ 91033
1995 71926 11107 91033
1996 81499 534 91033
1997 21970 42 31012
$ 26,787 $ 31324 $ 30,111
(TOTAL ALL DEBT
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1994 $ 111,886 $ 159,235 $ 271,121
1995 119,757 152,319 272,076
1996 113,570 145,152 258,722
1997 95,267 139,073 234,340
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
$ 21425,480 $ 11770,105 $ 41195,585
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
SUPPLEMENTAL INFORMATION
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1993
GENERAL FUND
Swimming Pool Funds
Police Department Funds
TOTALGENERALFUND
ENTERPRISE FUND
Revenue Bond I & S Funds
Revenue Bond Reserve Funds
Customer Utility Deposits
TOTAL ENTERPRISE FUND
$ 2,515
1,609
$ 6,003
243, 694
$ 261,130
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 26
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1993
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
249,697
$ 249,697
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 27
TYPE OF COVERAGE
Business Auto.
Liability
Physical Damage
Property Damage
Workmen's Compensation
Liability -
Law Enforcement Liability
Public Officials Liability
General Liability
Mobile Equipment
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September 30, 1993
AMOUNT OF
FROM TO COVERAGE FCARRIER
10/1 /92 10/1 /93 3,000,000 Texas Municipal League
10/1/92 10/1/93 Scheduled Equip. Texas Municipal League
345,503
10/1/92 10/1/93 Scheduled Equip. Texas Municipal League
11538,500
10/1 /92
10/1 /92
10/1/93 Statutory Texas Municipal League
10/1/93 1,000,000 Texas Municipal League
10/1/93 11000,000 Texas Municipal League
10/1/93 3,0001000 Texas Municipal League
10/1/93 68,550 Texas Municipal League
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 28
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 1993
WATER
1,298
205
NUMBER OF CONNECTIONS 1,503
RESIDENTIAL
WATER RATES & COMMERCIAL
Deposit $ 25.00
First 1,000 Gallons (minimum) $ 10.00
11000 TO 5,000 Gallons $ 1.80
51000 TO 15,000 Gallons $ 2.00
151000 TO 30,000 Gallons $ 2.40
Over 30,000 Gallons $ 3.20
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
ELECTRIC
1,418
283
COMMERCIAL
$
10.00
$
16.00
$
25.00
$
125.00
SMALL
RESIDENTIAL COMMERCIAL
SEWER
1, 334
133
LARGE
COMMERCIAL
$ 50.00 $ 100.00 $ 100.00
$ 9.00/Month $ 11.50/Month $ --
$ .0599161/kwh $ .0652494/kwh $ .022848/KWH
GALLONS OF WATER METERED (APPROX.)
147,824,000
50.50
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 29
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 1993
1992 Year Original Tax Roll
Adjustments to Original Tax Roll
ADJUSTED TAX ROLL
Less: Collections and Adjustments
CURRENT YEAR TAXES RECEIVABLE -END OF YEAR
PRIOR YEAR TAXES RECEIVABLE -END OF YEAR
TOTAL TAXES RECEIVABLE -END OF YEAR
Assessed Value
Tax Rate per $100
Percent of Current Taxes Collected to Billed
$ 317,173
8,753
325,926
315,955
9,971
r
41,044
51, 015
70,346,419
0.4633
96.94%
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 30
r
WilliamC.Spore ♦ Company,
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, 1993, 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. Penalties related to unpaid electric service billings are
deleted by the computer system which requires manual re -billing of
the penalties each month. This process is time consuming and makes
reconciling accounts receivables to the general ledger difficult.
The system should be upgraded to include the penalties in the
billings at month end and not require manually re -billing the
penalties. The penalties should become part of the customer
balance and included in all aging reports.
2. The system for tracking customer deposits should be
computerized to allow for prompt month end reconcilement to the
general ledger liability accounts and to the deposit bank accounts.
The current system is done manually and is not always reconciled in
a timely manner.
3. Customer deposit cash funds were used during the year to
reduce cash flow problems related to the slow reimbursement of the
swimming pool grant funds. The deposit liability cash accounts are
restricted funds and should not be used for general operating needs
of the City. Cash accounts equal to customer deposit liabilities
should be maintained at all times.
4. Pre -numbered tickets should be used by the Police Department
to allow for accountability of all tickets issued and the related
1600 Airport Freeway, Suite 208 • Bed ford, TX 76022 • 817/545-1040
fines. All ticket books should be accounted for and reconciled
periodically. All outstanding tickets should be accounted for on a
monthly basis and a numeric listing of all tickets written should
be maintained as part of the court accounting system.
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, we
noted the following reportable condition that we believe to be a
material weakness.
Condition -
The City's system of issuing credit memos related to utility
billings does not allow for assurance that all credit memos are
properly approved or accounted for. The internal control system
should be designed to assure that all utility billings and related
receivables are recorded in the City's financial records.
Recommendation -
Pre -numbered credit memos should be used and a tracking system to
account for all credit memos should be established. This tracking
system should also be used for making entries related to
receivables and billings in the general ledger. Each credit memo
should be approved by someone other than the billing clerk.
City 's Response -
Pre -numbered tickets are now in use and are being logged in a
credit memo journal for use in reconciling to the general ledger.
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,
wOUAA. �..F�
William C. Spore & Company,
Certified Public Accountants
February 11, 1994
Page - 2