1994 Annual Financial ReportCITY SECRETARY
�AIGINAL COPY
CITY OF BANGER, TEXAS
FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
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 8-16
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND 17
COMBINING STATEMENT OF REVENUES & EXPENDITURES
GENERAL FUND - BUDGET AND ACTUAL 18
STATEMENT OF GENERAL FIXED ASSETS 19
SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS 20
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND 21
STATEMENT OF GENERAL LONG-TERM DEBT 22
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 23
SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS 24
SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND 24
SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS 25
SUPPLEMENTAL INFORMATION
SCHEDULE OF RESTRICTED ASSETS 27
SCHEDULE OF RESERVED FUND EQUITIES 28
SCHEDULE OF INSURANCE COVERAGE 29
ENTERPRISE FUND # OF CUSTOMERS AND RATES 30
ANALYSIS OF PROPERTY TAXES 31
William C. Spore & Company, PC,
Certified Public Accountants
INDEPENDENT AUDITOR'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, 1994,
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, 1994,
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 2,/1994
1600 Airport Freeway, Suite 208 # Bedford, TX 76022 # Metro 8171540-2175
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, 1994
Nel Armstrong
Jerry Jenkins
Joe Bell
Margie Braxton
Tommy Kincaid
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
Restricted Assets - Cash
Property, Plant and Equipment
Net of Accumulated Depreciation
Amount to be Provided for Retirement
of General Long -Term Debt
TOTAL ASSETS
LIABILITIES
Accounts Payable
Accrued Expenses
Customer Deposits
Deferred Revenues
Long -Term Debt:
Combensated Absences
Notes Payable
Revenue Bonds Payable
Certificate of Obligation Payable
Capital Leases
TOTAL LIABILITIES
FUND EQUITY
Contributed Capital
Investment in General Fixed Assets
Retained Earning - Reserved
Retained Earning - Unreserved
Fund Balance - Reserved
Fund Balance - Unreserved
TOTAL FUND EQUITY
TOTAL LIBILITIES AND
FUND EQUITY
September w, i etm
GENERAL ENTERPRISE
$ 329334 $ 17,521
48,108 0
11,174 0
0 319,199
0 3,103
103,054
1,811,923 313,403
0 3,545,552
$ 11903,539 $ 41301,832
0
31,976
4, 776
0
48,108
0
0
0
0
0
84,860
0
0
0
0
1,811,923
6,756
1,818,679
$ 128,259
81,521
67,022
0
0
0
2,235,000
0
97,960
2,609,762
100,196
0
2451857
1,346,017
0
0
1,692,070
$ 1,903,539 $ 4,301,832
GENERAL
FIXED ASSETS
GENERALLONG-
TERM DEBT
(memorandum only)
1994 1993
$ 0 $ 0 $ 49,855 $ 31,232
0 0 48,108 51,015
0 0 11,174 10,704
0 0 319,199 320,331
0 0 3,103 55,192
0 0 103,054 111,874
0 0 21125,326 265,254
1,668,245 0 5,213,797 5,145,893
0 2,422,102
116689245 $ 214229102
2,422,102
$ 10,295,718 $
495,394
61486,889
$ 0 $ 0 $ 160,235 306,133
0 0 86,297 78,401
0 0 67,022 60,575
0 0 48,108 51,015
0
0
0
0
0
0
1,668,245
0
0
0
0
19668,245
23,500
470,353
0
11900,000
28,249
2,422,102
0
23,500
470,353
2,235,000
1,900,000
126,209
12,800
182,896
2,310,000
295,000
120,178
5,116,724 3,416,998
100,196
1,668,245
245,857
1,346,017
1,811,923
6,756
5,178,994
$ 1,668,245 $ 2,422,102 $ 10,295,718 $
100,196
1,512,443
249,697
112959627
4,124
(92,196)
31069,891
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, 1994
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTALREVENUES
EXPENDITURES
General Government
Public Safety
Hiways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
1994 1993
$ 3371362 $ 326,015
214,134 223,715
111283 8,062
241613 20,775
2051870 185,805
491241 163,691
14,200 31365
61146 51041
511335 21480
9111184 938,949
400,103
3201970
1279
13,327
88,259
155,802
451,516
46,457
1,775,713
361,719
3041383
4411588
11,091
71,647
2801381
256,232
36,662
1,763,703
(861,529) (824,754)
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued 1,900,000 188,826
Proceeds of Notes Payable 467,523 0
Transfers In 400,757 440,699
TOTAL OTHER FINANCING
SOURCES (USES) 21768,280 629,525
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
1,906,751
(195,229)
(88,072) 107,157
$ 11818,679 $
(88,072)
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 3o, 1994
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 Bonds Issued
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
W11191cumm
$ 329,140
220,520
11,000
12,300
185,120
30,500
3,500
17,000
0
341,842
3441881
3071122
11800
78,714
61,670
507,890
46,500
117009419
(891,339)
1,900,000
205,000
686,339
2,791,339
$ 1,900,000
ACTUAL
$ 3371362 $
214,134
11,283
24,613
205,870
49,241
14,200
6,146
51,335
9149184
VARIANCE
8,222
(6,386)
283
12,313
20,750
18,741
10,700
(10,854)
51,335
105,104
400,103 (58,261)
320,970 23,911
299,279 71843
13,327 (1,527)
88,259 (91545)
155,802 (94,132)
451,516 56,374
46,457 43
11775,713 (75,294)
(861,529) 29,810
1,900,000 0
467,523 262,523
400,757 (285,582)
2,768,280 (23,059)
1,906,751 $ 6,751
(88,072)
$ 11818,679
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, 1994
1994
OPERATING REVENUES
1993
Charges and Fees $ 2,899,777 $ 2,834,347
OPERATING EXPENSES
Personnel Services 502,407 518,128
Purchase of Services 11431,368 19455,922
Materials and Supplies 64,719 67,224
Depreciation 241,576 205,102
Franchise Fees 64,532 62,233
TOTAL OPERATING EXPENSES 21304,602 21308,609
OPERATING INCOME 595,175 525,738
NONOPERATING REVENUES (EXPENSES)
Interest Income 12,097 16,315
Debt Service Interest, Fees & Discounts (159,965) (161,588)
Transfers Out (400,757) (440,699)
TOTAL NONOPERATING REVENUES
(EXPENSES) (548,625) (585,972)
NET INCOME 46,550 (60,234)
RETAINED EARNINGS - BEGINNING 11545,324 11605,558
RETAINED EARNINGS - ENDING $ 11591,874 $ 11545,324
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 6
CITY OF SANGER
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
For the Year Ended September 30, 1994
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
1994
2,907,356
(1,567,838)
(492,109)
847,409
(153,678)
21,340
(113,860)
(160,399)
(400,757)
(807,354)
rr>��
49,396
281,528
$ 330,924
1993
$ 2,761,666
(1,603,799)
(538,236)
619,631
(684,765)
70,369
(97,114)
(162,954)
(440,699)
(1,315,163)
18,618
(676,914)
958,442
$ 281,528
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES: IN IN
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
(Increase) Decrease in Receivables
(Increase) Decrease in Inventory
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Customer Deposits
NET CASH PROVIDED BY OPERATING
ACTIVITIES
0
595175
,
241,576
1,132
8,820
(1 51334)
10,593
6,447
84
7,409 $
525
,738
205,102
(74,581)
(301446)
11,290
(191372)
1900
619,631
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -
The City of Sanger operates under a Council -Mayor form of
government, following the laws of a General Law City as defined by
the State of Texas. The City provides the following services:
public safety police, fire and ambulance, parks, streets,
sanitation, a public library , senior center, community center and
general administrative services along with water, sewer and
electrical services.
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governments. The following
is a summary of the more significant policies:
1. REPORTING ENTITY:
The City, for financial reporting purposes, includes all of the
funds and account groups relevant to the City of Sanger. The
financial statements presented herein do not include agencies which
have been formed under applicable state laws or separate and
distinct units of government apart from the City of Sanger.
There are no separately administered organizations that are
controlled or dependent on the City.
2. FUND ACCOUNTING:
The accounts of the City are organized on the basis of funds or
account groups, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for
by providing a separate set of self -balancing accounts which are
comprised of each fund's assets, liabilities, fund equity, revenues
and expenditures or expenses, as appropriate. Governmental
resources are allocated to and for individual funds based upon the
purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped,
in the financial statements in this report, into two generic fund
types and two broad fund categories as follows:
GOVERNMENTAL FUND TYPES
General Fund
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
Page - 8
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
PROPRIETARY FUND TYPES
Enterprise Funds
Enterprise funds are used to account for operations (a) that are
financed and operated in a manor similar to private business
enterprises - where the intent of the governing body is that costs
(expenses, including depreciation) of providing goods or services
to the general public on a continuing basis be financed or
recovered primarily through user charges or (b) where the governing
body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or
other purposes.
3. PROPERTY, PLANT AND EQUIPMENT AND LONG-TERM LIABILITIES:
The accounting and reporting treatment applied to property plant
and equipment and long-term liabilities associated with a fund are
determined by its measurement focus. All governmental fund types
are accounted for on a "financial flow" measurement focus. This
means that only current assets and current liabilities are
generally included on their balance sheets. Their reported fund
balance is considered a measure of "available spendable resources".
Governmental fund operating statements present increases (revenue
and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said
to present a summary of sources and uses of "available spendable
resources" during a period.
Plant, property and equipment used in governmental fund type
operations are accounted for in the General Fixed Assets Account
Group, rather than in governmental funds. No depreciation has been
provided on such property, plant and equipment.
All property, plant and equipment are valued at historical cost or
estimated historical cost if actual cost is not available. Donated
property, plant and equipment are valued at their estimated fair
value on the date donated.
Public domain "infrastructure" general fixed assets consisting of
certain improvements other than buildings, such as roads,
sidewalks, and bridges are not capitalized.
Long-term liabilities expected to be financed from governmental
fund types are accounted for in the General Long -Term Debt Account
Group, not in the governmental funds.
The two account groups are not "funds". They are concerned only
with the measurement of financial position. They are not involved
with measurement of results of operations.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
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, 1994
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 $2,175,181 of which
$2,175,081 was held in checking, savings or certificate of deposit
accounts at a local bank. Of the Bank balances, $106,402 was
covered by federal depository insurance and the remaining
$2,068,679 was covered by collateral held by the pledging Bank's
agent in the name of the City. There were no uncollateral 1zed cash
accounts.
The securities pledged by the City's depository institution are as
follows: WAfA
SECURITY
TREASURY NOTE
TREASURY NOTE
PAR
1,900,000
300,000
1,978,375
312,375
$21290,750
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
7. CAPITALIZED INTEREST:
The City capitalizes construction period interest when applicable.
There were no capitalized interest costs during the current fiscal
(ear.
8: INVENTORIES:
Inventories of the Enterprise Fund are valued at the lower of cost
(first -in, first -out) or market.
9. ACCUMULATED COMPENSATED ABSENCES:
It is the City's policy to permit employees to accumulate a limited
amount of earned but unused vacation and sick time, which will be
paid to employees upon separation from the City's service. In
governmental funds, the cost of vacation and sick leave is
recognized when paid. A long-term liability of $23,500 of accrued
vacation and sick leave has been recorded in the General Long -Term
Debt Account Group, representing the City's commitment to fund such
costs from future operations. Proprietary funds accrue vacation
leave in the period they are earned.
10. REVENUE RECOGNITION PROPERTY TAXES:
Property taxes attach as an enforceable lien on property as of
January 1. Taxes are levied on October 1 and are due and payable
at that time. All unpaid taxed levied October 1 become delinquent
February 1 of the following year.
Property tax revenues are recognized when they become available.
Delinquent taxes are considered fully collectable and, therefore,
no allowance for doubtful taxes is provided.
11. ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS:
Allowance for uncollectible accounts receivable in the Proprietary
Fund at September 30, 1994 is $34,872.
._' 12. TOTAL COLUMNS ON COMBINED STATEMENTS:
Total columns on the Combined Statements are captioned "memorandum
only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial
position, results of operations, or changes in financial position
in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
Page - 12
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
NOTE B:
September 30, 1994
RETIREMENT PLANS:
Firemen's Pension Fund:
The City's firemen are covered
contributory plan is operated
and Retirement Funds. The
September 30, 1994 was $3,122.
Employee Retirement Plan:
by the firemen's pension plan. This
as part of the State Firemen's Relief
pension expense for the year ended
The City belongs to the Texas Municipal Retirement System, a
retirement and disability pension system for municipal employees in
the State of Texas. The plan is administered in accordance with
the Texas Municipal Retirement System Act and is governed by a
Board of Trustees appointed by the governor of the State of Texas.
The City has elected to have monthly contributions from the City's
employees in the amount of 5% of their gross earnings with the City
providing a monthly contribution of 4.51% 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 $30,048.
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:
Certificates of Obligation, Series 1994 - Original amount of
$1,900,000; principal paid annually starting September 1, 1996I
Interest paid semi-annually on March 1, and September 1, at rates
ranging from 5.60 to 7.50%. The Bonds were issued for street
improvements and library building construction and are to be repaid
from property tax revenues and are further secured by a pledge of
Enterprise Fund Net Revenues.
The Certificates of Obligation require that certain reserve
accounts be maintained.
Note Payable to Guaranty National Bank ($265,353)- The note bears
interest at .5% below prime rate and matures September 30, 1995.
The note proceeds were used for street improvements.
Note Payable to Guaranty National Bank ($205,000)- The note bears
interest at .5% below prime rate and matures September 30, 1995.
The note proceeds were used to payoff the Combination Tax and
Utility System Junior Lien Revenue Certificates of Obligation,
Series 1986 in conjunction with the issuing of the 1994
Certificates of Obligation.
Page - 13
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
Capital Lease - Ford Motor Credit - Original balance of $9,500.
The lease requires twenty four monthly rental payments of $273.54,
with six payments remaining at September 30, 1994. 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 tractor. The equipment is
security for the lease.
Capital Lease - Associates Commercial Corporation - Original
balance of $30,066. The lease requires forty eight monthly rental
payments of $694.04, with forty two payments remaining at September
30, 1994. The City has a purchase option during the term of the
lease to purchase the equipment at a designated purchase option
price. The City intends to exercise this option at the end of the
lease term. The proceeds of the lease were used to purchase a Dump
Truck. The equipment is security for the lease.
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
42,002.39, with seventeen payments remaining at September 30, 1994.
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.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
Capital Lease - Case Credit Corporation - Original balance of
$38,750. The lease requires forty eight monthly rental payments of
$939.74, with thirty two payments remaining at September 30, 1994.
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 $31IF
The lease requires forty eight monthly rental payments of $752.73,
with twenty eight payments remaining at September 30, 1994. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase a backhoe/loader. The
equipment is security for the lease.
Capital Lease - Maroon Cattle
Lenders) - Original balance
eight monthly rental payments
remaining at September 30, 19
during the term of the lea;
designated purchase option pz
this option at the end of tY
Lease were used to purchase
security for the lease.
Company (Purchased from Diversified
of $21,340. The lease requires forty
of $506.08, with forty three payments
94. The City has a purchase option
�e to purchase the equipment at a
c ie. The City intends to exercise
�e lease term. The proceeds of the
a Jet Sprayer. The equipment is
NOTE D: DEBT SERVICE REQUIREMENTS NEXT FIVE YEAR5:
Debt service requirements for each of the next five years are as
follows:
General Fund: Proprietary Fund.
Year
1995
1996
1997
1998
1999
Future
Total
Principal
$479,097
92,505
97,897
104,103
105,000
1r520,000
Interest
$170,854
120,013
113,246
106, 126
98,565
544,030
$2,398,602 $1,152j834
Principal
$ 124,717
118,863
100,913
93,467
100,000
1,795,000
$2,332,960
Interest
$ 153,432
145,933
139,500
134,126
128,830
911,445
$1,613,266
Page - 15
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 1994
NOTE E: PRIOR -YEAR DEFEASANCE OF DEBT:
In 1992, the City defeased its Series 1985 Revenue Bonds by placing
the proceeds of new bonds in an irrevocable trust to provide for
all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds
are not included in the City's financial statements. On September
30, 1994, $750,000 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 $1,252,075.
NOTE G: BUDGET EXCEPTIONS:
Due to actual utility fund revenues being less than budgeted
revenues and actual utility fund expenses exceeding budgeted
expenses only $400,757 of the budgeted $686,339 transfers from the
utility fund to the general fund were made. Due to the shortage of
transfers into the general fund the City borrowed an additional
$262,523 from Guaranty National Bank to finance street expansion
projects. This additional borrowing was not budgeted.
Land for the new library, valued at $50,000, was donated to the
City. This donation is recorded as donation revenues and capital
outlays in the library fund, both of which were unbudgeted items.
NOTE H: INTERFUND RECEIVABLE AND PAYABLE:
Permanent transfers were made to clear all interfund receivables
and payables occurring during the year. The receivable and
payables result from one fund paying an expenditure for another
fund.
Page - 16
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1994
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 Bonds Issued
Proceeds of Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
$ 3371362 $ 0 $ 0 $ 0
101,831 0 0 0
11,283 0 0 0
21661 14,275 0 0
21876 0 14,735 0
0 0 0 21,195
406 0 67 0
41112 0 0 0
0 0 11335 0
460,531 14,275 16,137 21,195
136,953 44,614 0 0
0 0 267,350 53,620
0 0 0 0
13,327 0 0 0
0 0 0 0
21855 0 19,750 71241
0 0 0 0
0 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
153,135 44,614 287,100 60,861
307,396 (30,339) (270,963) (39,666)
0
0
0
0
0
0
0
0
400,757
0
0
0
400,757
C$7
C
%
708,153 $ (30,339) $ (270,963) $ (39,666)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 17
0
6,260
176,733
0
0
0
0
182,993
0 $ 0 $ 0 $ 0 $
112,303 0 0 0
0 0 0 0
0 11417 0 0
0 0 0 11,526
31000 20,174 0 4,872
13,681 0 0 46
0 21034 0 0
0 50,000 0 0
128,984 73,625 0 16,444
218,536 0
0 0
0 299,279
0 0
0 0
0 31,466
0 451,516
0 46,457
218,536 828,718
0
0
0
0
401943
88,015
0
0
128,958
0
0
0
0
9,618
0
9,618
0
0
0
0
28,747
1,287
0
0
30,034
0
0
0
0
0
0
0
0
0
0
0
8,951
5,188
0
0
337,362
214,134
11,283
24, 313
205,870
49,241
14,200
6,146
51,335
914,184
400,103
320,970
299,279
13,327
88,259
155, 802
451,516
46,457
14,139 1,775,713
(35,543) (699,734) (55,333) (9,618) (13,590) (14,139) (861,529)
0 1,900,000 0 0 0 0 1,900,000
0 467,523 0 0 0 0 467,523
0 0 0 0 0 0 400,757
0 21367,523 0 0 0 0 21768,280
1,906,751
(88,072)
$ 11818,679
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, 1994
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 AMb
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued
Proceeds of Notes Payable
Transfers In
BUDGET I I ACTUAL LyARIANCE
$ 329,140 $ 337,362 $ 8,222
90,000 1019831 11,831
11,000 11,283 283
11800 21661 861
0 2,876 21876
0 0 0
400 406 6
17,000 41112 (12,888)
0 0 0
449,340 460,531 11,191
135,465 136,953 (19488)
0 0 0
0 0 0
11,800 13,327 (11527)
0 0 0
61100 21855 31245
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
0 0 0
0 0 0
153,365 153,135 230
295,975 307,396 11,421
0
0
6861339
686,339
0
0
400.757
400,757
9829314 $ 7089153
0
0
(285,582)
(285,582)
$ (274,161)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
BUDGET AU I UALJ VARIANCE BUDGET ACTUAL VARIANCE
$ 0$ 0$ 0$ 0$ 0$ 0
0 0 0 0 0 0
0 0 0 0 0 0
7,500 149275 61775 0 0 0
0 0 0 17,000 14,735 (21265)
0 0 0 0 0 0
0 0 0 0 67 67
0 0 0 0 0 0
0 0 0 0 11335 11335
71500 14,275 61775 17,000 16,137 (863)
43,305 44,614 (11309) 0 0 0
0 0 0 283,781 267,350 16,431
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 15,800 199750 (3,950)
0 0 0 0 0 0
0 0 0 0 0 0
43,305 441614 (1,309) 299,581 287,100 12,481
(35,805) (30,339) 51466 (282,581) (270,963) 11,618
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
$ (35,805) $ (30,339) $ 51466 $ (282,581) $ (270,963) $ 11,618
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1994
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
BUDGET
$ 0
0
0
0
0
18,000
0
0
0
18,000
0
61,100
0
0
0
15,500
0
0
76,600
(58,600)
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued 0
Proceeds of Notes Payable 0
Transfers In 0
TOTAL OTHER FINANCING
SOURCES (USES) 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (58,600)
ACTUAL
$ 0
0
0
0
0
21,195
0
0
0
21,195
0
53,620
0
0
0
7, 241
0
0
60,861
(39,666)
0
0
0
C�]
VARIANCE
$ 0
0
0
0
0
3,195
0
0
0
3,195
0
7,480
0
0
0
8,259
N
15,739
18,934
0
0
0
0
$ 18,934
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
AL VARIANCE BUDGET ACTUAL VARIANCE
BUDGET ALQ Q Q
$ 0$ 0$ 0$ 0$ 0$ 0
0 0 0 130,520 112,303 (18,217)
0 0 0 0 0 0
39000 61260 3,260 0 0 0
157,120 176,733 19,613 0 0 0
0 0 0 0 31000 3,000
0 0 0 31100 13,681 10,581
0 0 0 0 0 0
0 0 0 0 0 0
1601120 182,993 22,873 133,620 128,984 (41636)
163,072 218,536 (55,464) 0 0 0
0 0 0 0 0 0
0 0 0 307,122 299,279 71843
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 31,466 (31,466)
0 0 0 507,890 451,516 56,374
0 0 0 46,500 46,457 43
163,072 218,536 (55,464) 861,512 828,718 32,794
(2,952) (35,543) (32,591) (727,892) (699,734) 28,158
0 0 0 1,900,000 1,900,000 0
0 0 0 205,000 467,523 262,523
0 0 0 0 0 0
C
0 2,105,000 2,367,523 262,523
$ (32,591) $ 11377,108 $ 11667,789 $ 290,681
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 18
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
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
For the Year Ended September 30, 1994
BUDGETI I AU I UALJ I VARIANCE
$ 0 $ 0 $ 0
0 0 0
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued
Proceeds of Notes Payable
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
$
0 0 0
0 11417 11417
0 0 0
12,500 20,174 71674
0 0 0 y
0 22034 2,034
0 50,000 50,000
12,500 73,625 61,125
0 0 0
0 0 0
0 0 0
0 0 0
291056 40,943 (11,887)
19,270 88,015 (68,745)
0 0 0
0 0 0
48,326 128,958 (80,632)
(35,826) (55,333) (19,507)
0
0
0
0
0
0
0
C
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE
$ 0 $ 0$ 0 $ 0$ 0 $ 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 11,000 11,526 526
0 0 0 0 41872 41872
0 0 0 0 46 46
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 11,000 169444 51444
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
10,160 91618 542 22,873 28,747 (51874)
21500 0 21500 0 11287 (11287)
0 0 0 0 0 0
0 0 0 0 0 0
12,660 91618 31042 22,873 30,034 (79161)
(12,660) (9,618) 3,042
1,873) (13,590) (1,717)
0 0 0 0 0 0
0 U 0 0 0 0
0 0 0 0 0 0
0
0 0 0 0
3,042 $ (11,873) $ (13,590) $ (1,717)
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 1994
REVENUES I BUDGET I I AU I U�t 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 0 0 0
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 0 0 0
EXPENDITURES
General Government 0 0 0
Public Safety 0 0 0
Hiways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 16,625 81951 71674
Capital Outlay 21500 51188 (21688)
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 19,125 14,139 4,986
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (19,125) (14,139) 41986
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Issued 0 0 0
Proceeds of Notes Payable 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
U
(19,125) $ (14,139) $ 4,986
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
BUDGET
$ 329,140 $
220,520
11,000
12,300
185,120
30,500
3,500
17,000
0
809,080
341,842
3449881
307,122
11,800
78,714
61,670
507,890
46,500
1,700,419
(891,339)
1,900,000
205,000
686,339
2,791,339
$ 11900,000
ACTUA� VARIANCE
337,362 $ 81222
214,134 (61386)
11,283 283
24,613 12,313
205,870 20,750
49,241 189741
14,200 10,700
61146 (10,854)
51,335 519335
914,184 105,104
400,103 (58,261)
3209970 23,911
99,279 71843
13,327 (11527)
889259 (91545)
155,802 (94,132)
451,516 56,374
46,457 43
11775,713 (75,294)
(861,529) 29,810
1,900,000
467,523
400,757
0
262,523
(285,582)
2,768,280 (23,059)
1,906,751 $ 61751
(88,072)
$ 19818,679
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 18
COST
Land
Buildings
Equipment
Fire Equipment
Swimming Pool
Improvements
INVESTMENT IN GENERAL
FIXED ASSETS
CITY OF SANGER
STATEMENT OF GENERAL FIXED ASSETS
For the Year Ending September 30, 1994
0
71,870
2081715
5621216
1301226
2161580
4781638
$ 1,668,245
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
COST
Land
Buildings
Equipment
Fire Equipment
Swimming Pool
Improvements
INVESTMENT IN GENERAL
FIXED ASSETS
For the Year Ending September 30, 1994
DITIO� DELETIONS ENDING j
BEGINNING AD N _
$ 71,870 $ 0 $ 0 $ 71,870
126,395 82,320 0 2089715
497,262 64,954 0 562,216
122,985 71241 0 130,226
215,293 1,287 0 216,580
4789638 0 0 478,638
$ 11512,443 $ 155,802 $ 0 $ 11668,245
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 20
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30, 1994
BEGINNINGj 1ADDITIONS1DELETION I ENDING
COST
Water System $ 1,888,413 $ 9,264 $ 0 $ 1,897,677
Sewer System 11930,951 91010 0 11939,961
Electric System 11647,087 105,426 0 11752,513
Equipment 410,844 23,040 714 433,170
Furniture & Fixtures 121,703 71542 11007 128,238
Building Improvements 14,623 0 0 14,623
Easement 11500 0 0 11500
TOTAL COST $ 6,015,121 $ 154,282 $ 1,721 $ 6,167,682
ACCUMULATED DEPRECIATION
Water System $ 564,150 $ 67,693 $ 0 $ 631,843
Sewer System 587,802 53,520 0 641,322
Electric System 896,592 57,593 0 954,185
Equipment 216,542 56,094 462 272,174
Furniture & Fixtures 109,274 51214 655 113,833
Building Improvements 71311 11462 0 81773
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 2,381,671 $
NET PROPERTY, PLANT &EQUIPMENT $ 3,633,450
241,576 $ 1,117 $ 2,622,130
$ 3,545,552
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 21
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 1994
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
NOTES PAYABLE
Note Payable - Gainesville National Bank
Note Payable - Gainesville National Bank
G{� j
TOTAL NOTES PAYABLE
CAPITAL LEASES
Ford Motor Credit
Associates Commercial Corp.
TOTAL CAPITAL LEASE OBLIGATIONS
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
TOTAL ACCRUED COMPENSATED ABSENCES
U
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG - TERM DEBT
$ 1,900,000
$ 265,353�
205,000
1 ,614
26,635
13,800
$ 9,700
470,353
28,249
23,500
$ 2,422,102
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 22
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 1994
BOND OBLIGATIONS
Series 1986 Certificates of Obligation
Series 1994 Certificates of Obligation
TOTAL BOND OBLIGATIONS
BEGINNING JADDITIONS1 IREDUCTIONS ENDING
$ 295,000 $
0
0 $
1,900,000
295,000 $ 0
0 1/9009000
295,000 $ 1,900,000 $ 295,000
$ 11900,000
NOTES PAYABLE
Note Payable - Gainesville National Bank $ 182,896 $ 232,457 $ 150,000 $ 265,353
Note Payable - Gainesville National Bank 0 205,000 0 205,000
TOTAL NOTES PAYABLE $ 1829896 $ 437,457 $ 150,000 $ 470,353
CAPITAL LEASES
Ford Motor Credit $ 41698 $ 0 $ 3,084 $ 11614
Associates Commercial Corp. 0 30,066 39431 26,635
$ 41698 $ 30,066 $ 61515 $ 28,249
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay $ 41300 $ 91500 $ 0 $ 13,800
Accrued Sick Pay 81500 11200 0 91700
TOTAL ACCRUED COMPEN. ABSENCES $ 12,800 $ 10,700 $ 0 $ 23,500
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT $
495,394 $ 2,378,223 $ 451,515 $ 2,422,102
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 23
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1994
Series 1994 Certificates of Obligation
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 0 $ 1391055 $ 139,055
1996 85,000 119,190 204,190
1997 90,000 112,815 202,815
1998 100,000 106,065 206,065
1999 105,000 98,565 203565
2000 110,000 90,690 200,690
2001 120,000 82,440 202,440
2002 125,000 75,720 200,720
2003 135,000 68,657 203,657
2004 145,000 60,963 205,963
2005 155,000 52,625 207,625
2006 165,000 43,635 208,635
2007 175,000 33,900 208,900
2008 190,000 23,400 213,400
2009 200,000 12,000 212,000
$ 1,900,000 $ 1,119,720 $ 3,019,720
Note Payable -Gainseville National Bank
Year Ending
September 30,
PRINCIPAL
265,353 $
INTEREST
17,248
$ 265,353 $ 17,248
Note Payable -Gainseville National Bank
Year Ending
September 30, PRINCIPAL
1995 $ 205,000 $
$ 205,000 $
TOTAL
REQUIREMENTS
$ 282,601
$ 282,601
INTEREST
13,325 $
13,325 $
TOTAL
REQUIREMENTS
218,325
218,325
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 24
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 1994
Capital Lease - Ford Motor Company
Year Ending
September 30, PRINCIPAL
1995 $ 1,614 $
TOTAL
INTEREST REQUIREMENTS
Capital Lease -Associates Commercial Corp.
28 $ 1,641
1,641
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 7,130 $ 1,198 $ 8,328
1996 71505 823 81328
1997 71897 431 8,328
1998 41103 61 41164
$ 269635 $ 21513 $ 29,148
Total Bond Obligations and Notes Payable
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 479,097 $ 170,854 $ 649,951
1996 92,505 120,013 212,518
1997 97,897 113,246 211,143
1998 104,103 106,126 210,229
1999 105,000 98,565 203,565
2000 110,000 90,690 200,690
2001 120,000 82,440 202,440
2002 125,000 75,720 200,720
2003 135,000 68,657 203,657
2004 145,000 60,963 205,963
2005 155,000 52,625 207,625
2006 165,000 43,635 208,635
2007 1759000 33,900 208,900
2008 190,000 23,400 213,400
2009 200,000 12,000 212,000
$ 2,398,602 $ 11152,834 $ 31551,436
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 24
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 1994
REVENUE BOND OBLIGATIONS
Series 1976
Series 1991
TOTAL REVENUE BONDS
CAPITAL LEASES
Kansas State Bank
Case Credit Corporation
Ford Motor Credit
Maroon Cattle Co.
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEGINNIN IREDUCTI9.NJS ENDING
$ 110,000 $ 0 $ 55,000 $ 55,000
21200,000 0 20,000 21180,000
$ 21310,000 $ 0 $ 75,000 $ 2,235,000
$ 52,960 $ 0 $ 20,760 $ 32,200
35,733 0 81734 26,999
26,787 0 71392, 19,395
0 21,340 11974 19,366
$ 115,480 $ 21,340 $ 38,860 $ 97,960
$ 2,425,480 $ 21,340 $
113,860 $ 2,332,960
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 25
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 1994
Series 1976 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 55,000 $ 3,025 $ 58,025
Series 1991 Revenue Bonds
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 25,000 $ 144,712 $ 169,712
1996 85,000 143,400 2280400
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 1099498 224,498
2003 125,000 102,138 227,138
2004 1309000 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 2279186
2010 195,000 28,958 223,958
2011 210,000 15,014 225,014
$ 21180,000 $ 11601,248 $ 31781,248
Capital Lease -Kansas State Bank
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 22$72 $ 11657 $ 24,029
1996 91828 185 10,013
$ 32,200 $ 11842 $ 34,042
Capital Lease -Case Credit Corporation
Year Ending
September 30,
1995
1996
1997
PRINCIPAL
$ 9,459
10,244
7,296
INTEREST
$ 1,818
1,033
222
3,073
TOTAL
REQUIREMENTS
$ 11,277
11,277
71518
$ 30,072
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 26
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
Capital Lease - Ford Motor Credit
Year Ending
September 30,
1995
1996
1997
PRINCIPAL
$ 7,926
8,499
2,970
$ 19,395
September 30, 1994
INTEREST
$ 1,107
534
42
$ 1,683
Capital Lease -Maroon Cattle Company
TOTAL
REQUIREMENTS
$ 9,033
9,033
3,012
$ 21,078
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 41960 $ 11113 $ 61073
1996 51292 781 61073
1997 51647 426 61073
1998 31467 76 31543
$ 19,366 $ 21395 $ 21,761
TOTAL ALL DEBT
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
1995 $ 124,717 $ 153,432 $ 278,149
1996 118,863 145,933 264,796
1997 100,913 139,500 240,413
1998 93,467 134,126 227,593
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 2249170
2009 185,000 42,186 227,186
2010 195,000 28,958 223,958
2011 210,000 15,014 225,014
$ 21332,960 $ 11613,266 $ 31946,226
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 26
SUPPLEMENTAL INFORMATION
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 1994
GENERAL FUND
Police Department Funds
Certificate of Obligation Reserve Funds
Unspent 1994 Certificate of Obligation Funds
TOTAL GENERAL FUND
ENTERPRISE FUND
Revenue Bond I & S Funds
Revenue Bond Reserve Funds
Customer Utility Deposits
TOTAL ENTERPRISE FUND
38,000
1,770,942
$ 11811, 923
$ 2,163
243,694
67,546
$ 313,403
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 27
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 1994
GENERALFUND
Police Department Funds $ 2,981
Minimum Required Reserves, Interest and
Sinking Funds - 1994 Certificate of Obligation 38,000
Unspent 1994 Bond Proceeds 1,770,942
TOTAL GENERAL FUND $ 1,811,923
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds - Revenue Bonds 245,857
TOTAL ENTERPRISE FUND $ 245,857
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 28
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September 30, 1994
AMOUNT OF
TYPE OF COVERAGE FROM TO COVERAGE F7 CARRIER —�
Business Auto.
Liability 10/1/93 10/1/94 3,000,000 Texas Municipal League
Physical Damage 10/1/93 10/1/94 Scheduled Equip. Texas Municipal League
195,886
Property Damage 10/1/93 10/1/94 Scheduled Equip. Texas Municipal League
11779,750
Workmen's Compensation 10/1/93 10/1/94 Statutory Texas Municipal League
Liability -
Law Enforcement Liability 10/1/93 10/1/94 11000,000 Texas Municipal League
Errors & Omissions 10/1/93 10/1194 1,000,000 Texas Municipal League
General Liability 10/1/93 10/1/94 31000,000 Texas Municipal League
Mobile Equipment 10/1/93 10/1/94 153,594 Texas Municipal League
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
Page - 29
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
NUMBER OF CONNECTIONS
WATER RATES
Deposit
First 1,000 Gallons (minimum)
11000 TO 5,000 Gallons
51000 TO 15,000 Gallons
15,000 TO 30,000 Gallons
Over 30,000 Gallons
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
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, , oxf
WATER
ELECTRIC
1,410 1,290
132 252
11542 11542
RESIDENTIAL
& COMMERCIAL
$ 10.00
$ 1.85
$ 2.05
$ 2.45
$ 3.25
RESIDENTIAL COMMERCIAL
$ 10.00 $ 16.00
$ 25.00 $ 125.00
SMALL
RESIDENTIAL COMMERCIAL
SEWER
1,385
132
1,517
LARGE
COMMERCIAL
$ 50.00 $ 100.00 $ 100.00
$ 9.00/Month $ 11.50/Month $ --
$ .0621629/kwh $ .0676962/kwh $ 237048/KWH
$ -- $ -- $ 52.39
$ -- $ -- $ 8.29/kwh
GALLONS OF WATER METERED (APPROX.)
134,518,400
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 30
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 1994
1993 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
$ 328,494
7,432
335,926
3259020
10,906
37,202
$ 48,108
$ 69,862,557
$ 0.4702
96.75%
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED Page - 31
William C. Spore & Company, PC.
Certified Public Accountants
To the Honorable Mayor and City Council,
City of Sanger, Texas
In planning and performing our audit of the general purpose
financial statements of the City of Sanger, Texas, for the year
ended September 30, 1994, 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.
insure that all Utility Fund cash receipts are properly
entered into the accounts receivable computer system and that the
computer software in functioning and balancing properly the
accounts receivable subsidiary aging should be reconciled to the
general ledger accounts receivable account on a timely basis,
preferable monthly. The entries to the general ledger and accounts
receivable subsidiary are independent of each other and should be
used to verify that the same entries are made to each system.
(2) The credit memo system for tracing adjustments to individual
accounts receivable accounts is now in place. Pre -numbered credit
memos are used and a journal of the credit memos is maintained.
To enhance the system Department Heads should be approving credit
memos rather than the. billing clerk. A person independent of the
accounts receivable function should also periodically inspect the
credit memos to see that they all have proper department head
approval.
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
1600 Airport Freeway, Suite 208 # Bed ford, TX 76022 � Metro 817/540-2175
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 the information and use of the
management, Mayor and City Council of the City of Sanger, Texas.
Thank you,
w C f2c,
William C. Spore & Company, P.C.
Certified Public Accountant
February 2, 1995
Page - 2