1987 Annual Financial ReportIGINAL GOt:)y
CITY OF BANGER, TEXAS
FINANCIAL REPORT FOR THE
THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
ELECTED CITY OFFICIALS
CITY COUNCIL
Nel Armstrong, Mayor
Jerry Jenkins, Alderman
Carolyn Adkins, Alderman
Danny Pic Daniel, Alderman
Carroll McNeill, Alderman
Harvey W. Thomas, Alderman
APPOINTED OFFICIALS
Stephen K. Shutt, City Manager
Rosalie Garcia, City Secretary and Tax Collector
CITY OF SANGER, TEXAS
TABLE OF CONTENTS
PAGE
Accountant's Report on Financial Statements and
Supplemental Schedules A-1
Single Audit A-2
FINANCIAL STATEMENTS
Combined
Combined Balance Sheet - All Funds B-1,2
Combined Statement of Revenue, Expenditures and Changes in
Fund Balances - All Governmental Fund Types B-3
Statement of Revenue, Expense and Changes in Retained Earnings -
Utility Fund B-4
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements
C-1 thru 6
General Fund
Balance Sheet D-1
Statement of Revenue, Expenditures and Changes in Fund Balances
(Estimated and Actual) D-293
Utility Fund
Balance Sheet - Sanger Electric E-1,2
Summary Schedule of Revenue and Expenditures E-3
Tax and Warrant Interest and Sinking Fund
Balance Sheet/Statement of Cash Receipts and Disbursements F-1
Payroll Fund
Balance Sheet G-1
Revenue Sharing Fund
Balance Sheet/Analysis of Changes in Fund Balance H-1
General Funded Debt
Statement of General Funded Debt I-1
CITY OF SANGER, TEXAS
TABLE OF CONTENTS (Cont'd)
General Fixed Assets
Statement of Changes in General Fixed Assets - By Source J-1
STATISTICAL SECTION
Property Tax Levies and Collections K-1
Combined Schedule of Bonds Payable K-2
Utility Revenue Bonds - Principal and Interest Requirements K-3
Utility Rates K-4
MASTON A. WRIGHT
CERTIFIED PUBLIC ACCOUNTANT
628 FIRST STATE BANK BLDG.
DENTON, TEXAS 76201
817/387-8721
January 29, 1988
Mayor and City Council
City of Sanger, Texas
MEMBER;
AMERICAN INSTITUTE
CERTIFIED PUBLIC ACCOUNTANTS
We have examined the financial statements of the various funds and account
groups of the City of Sanger, Texas, for the thirteen months ended September 30,
1987, listed in the foregoing table of contents. Except as explained in the
following paragraph, our examination was made in accordance with generally
accepted auditing standards and, accordingly, included such tests of the accounting
records and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion,. such financial statements present fairly the financial
position of the various funds and account groups of the City of Sanger, Texas,
at September 30, 1987, and the results of operations of such funds for the
thirteen months then ended in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceeding year. It
is our further opinion that the accounting requirements of the bond ordinances
for the revenue bond issues have been met.
The accompanying supplemental schedules and statistical section listed in
the foregoing table of contents are not considered essential for the fair
presentation of financial position, results of operations, or changes in financial
position in conformity with generally accepted accounting principles, but are
presented as additional analytical data. This information has been subjected to
the audit procedures applied in the examination of the financial statements
mentioned above and, in our opinion, is fairly stated in all material respects
in relation to the financial statements taken as a whole.
Maston A. Wright
Certified Public Accountant
A-1
MASTON A. WRIGHT
CERTIFIED PUBLIC ACCOUNTANT
623 FIRST STATE BANK BLDG, MEMBER:
DENTON, TEXAS 76201 AMERICAN INSTITUTE
817/387-8721 CERTIFIED PUBLIC ACCOUNTANTS
March 28, 1988
REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE)- BASED ON
A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL
PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE
SINGLE AUDIT ACT
To the City Council
Sanger, Texas
We have examined the general purpose financial statements of the City
of Sanger, for the year ended September 30, 1987, and have issued our
report thereon dated January 29, 1988. As part of our examination, we
made a study and evaluation of the internal control systems, including
applicable internal administrative controls, used in administering
Federal financial assistance programs to the extent we considered nec-
essary to evaluate the systems as required by generally accepted audi-
ting standards, the standards for financial and compliance audits con-
tained in the Standards for Audit of Governmental Organizations, Pro-
grams, Activities, and Functions, issued by the U.S. General Accounting
Office, the Single Audit Act of 1984, and the provisions of OMB Circular
A-128, Audits of State and Local Governments.
The management of the City of Sanger is responsible for establishing and
maintaining internal control systems used in administering Federal fin-
ancial assistance programs. In fulfilling that responsibility, estimates
and judgments by management are required to assess the expected benefits
and related costs of control procedures. The objectives of internal
control systems used in administering Federal financial assistance pro-
grams are to provide management with reasonable, but not absolute, as-
surance that, with respect to Federal financial assistance programs,
resource use is consistent with laws, regulations, and policies; re-
sources are safeguarded against waste, loss, and misuse; and reliable
data are obtained, maintained, and fairly disclosed in reports.
Because of inherent limitations in any system of internal accounting
and administrative controls used in administering Federal financial
assistance programs, errrors or irregularities may nevertheless occur
and not be detected. Also, projection of any evaluation of the systems
to future periods is subject to the risk that procedures may become in-
adequate because of changes in conditions or that the degree of compliance
with the procedures may deteriorate.
Our study included all of the applicable control categories listed in
the first paragraph. With respect to internal control systems used in
administering major Federal financial assistance programs, our study
and evaluation included considering the types of errors and irregularities
that could occur, determining the internal control procedures that should
prevent or detect such errors and irregularities, determining whether
the necessary procedures are prescribed and are being followed satis-
factorily, and evaluating any weaknesses.
With respect to the internal control systems used solely in adminis-
tering the nonmajor Federal financial assistance programs of the City
of Sanger, our study and evaluation was limited to a preliminary review
of the systems to obtain an understanding of the control environment
and the flow of transactions through the accounting system. Our study
and evaluation of the internal control systems used solely in admini-
stering the nonmajor Federal financial assistance programs of the City
of Sanger, did not extend beyond this preliminary review phase.
Our study and evaluation was more limited than would be necessary to
express an opinion on the internal control systems used in administer-
ing the Federal finacial assistance programs of the City of Sanger.
Accordingly, we do not express an opinion on the internal control sys-
tems used in administering the Federal financial assistance programs
of the City of Sanger. Further, we do not express an opinion on the
internal control systems used in administering the major Federal fin-
ancial assistance programs of the City of Sanger.
Also, our examination, made in accordance with the standards mentioned
in the first paragraph, would not necessarily disclose material weak-
nesses in the internal control systems used Solely in administering non -
major Federal financial assistance programs.'
Any weaknesses were considered in determining the nature,timing, and
extent.of the audit tests to be applied in (1) our examination of the
1987 general purpose financial statements and (2) our examination and
review of the City's compliance with laws and regulations noncompliance
with which we believe could have a material effect on the allowability
of program expenditures for each major Federal financial assistance pro-
gram and nonmajor Federal financial assistance programs. This report
does not affect our reports on the general purpose financial statements
and on the City's compliance with laws and regulations dated January
29, 1988.
This report is intended solely for the use of management and should not
be used for any other purpose. This restriction is not intended to limit
the distribution of thes report, which, upon acceptance by the City of
Sanger, is a matter of public record.
Maston A. Wright
ASSETS
CASH AND INVESTMENTS
Cash
Certificates of deposit & savings
RECEIVABLES
Taxes
Accounts (Net)
DUE FROM OTHER FUNDS
INVENTORY — at cost
RESTRICTED ASSETS
Cash
Investments at cost
?RoprRTY, PLANT & EQUIPMENT
Laced/Easements
Building
Water System
Sewer System
Electric System
Equipment
Improvements
Accumulated Depreciation
AMOUNT TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG—TERM DEBT
TOTAL ASSETS
CITY OF BANGER, TEXAS
COMBINED BALANCE SKEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1987
Governmental Fund Types Proprietary Fund Account GL Ol1pS
General General Totals
Soecial Debt Library Fixed Long -Term (Memorandum Only)
General Revenue Service Proiects Enterprise Assets Debt 1987
$ 15,759 $ 906 $ - $ 972 $ 148,/+59 $ - $ - $ 166,096
56,141 341 - 10,652 f66,3514 -�/ - - 233,488
--
707112 - - - - - - 70,112
252,158 - 2527158
2,855 - - - - - - 2,855
52>238 - - 52,238
123,354 \� '
120,310 -
57;702 - -
-
438>870 _
125>945 - I25,945
941,368 - - 941,368
12790,298 - - 1,7901298
11406,640 - - 11406,640
2192430 2577034 - 4769464
446,577 - 446,577
(123542020) - - (1,354,020)
760,300 760,300
$322,879 $ 1,247* S -0- $11,624 $ 4,066,339 $888,239 $760,300 S 61050>628
B_t
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
Due to other funds
Customer Deposits
Deferred tax revenue
PAYABLE FROM RESTRICTED 4SSETS
Revenue bonds payable
Accrued interest payable
REVENUE BONDS PAYABLE
CERTIFICATES OF OBLIGATION
INSTALI.*�tNT NOTE PAYABLE
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Investment in general fixed assets
Retained Earnings
Reserved for revenue bond
retirement
Unreserved
Fund Balances
Unreserved
Designated for debt service
Undesignated
TOTAL FOND EQUITY
TOTAL Li�BZLITiS & FUND EQUITY
CITY OF BANGER, TEXAS
COMBINID BALANCE SHEET (Can't)
ALL FUND TYPES AND ACCOUNT GROUPS
September 30> 1987
Governmental Fund Types Proprietary Fund
Special Debt Library
General Revenue Service Projects Enterprise
Account Groups
General General
Fixed Long-Te=m
Assets Debt
Totals
(Memorandum Only)
1987
$ 15,224 $ - $ - $ 166 $ 123,837 $ - $ - $ 139,227
_ - - - 2,855 - - = 2,855
_ _ - 80,819 - - 80,819
- _ - 70,112
70,112 - - - -
_ _ - 80,000 - - 80,000
_ _ _ _ 61,185 - - 61,185
_ _ - 1,745,000 - - 1,745,000
-_ _ _ _ _ - 700,000 700,000
_ _ - 49,649 - 60,300 109,949
$ 85,336 $ -0- � -0- $ 166 $ 2,143,345 $ -0- $ 760,300 � 2,989,147
$ _ $ _ $ _ $ - $ 100,197 $ - $ - $ 100,197
_ _ _ _ - 888,239 - 888,239
_ _ - 773,456 - - 773,456
_ _ _ - 1,049,341 - - 1,049>341
178,012 - - - - - - 178,012
59,531 1,247 - 11,458 - - - �72,236
$ 59,531 S 1,247 S -0- s i1,458 $ 1,922,994 5888,239 S -0- S 2,383,469
S 237,543 S 1,247 S -0- S 11,524 $ 4,066,339 5888,239 S 760,300 $ 6,050,628
See :cotes to the Financial Statements
B-=
CZTY OF BANGER, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES
FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
Governmental Fund
Special Debt Library
General Revenue Service Projects
Totals
(Memorandum Only)
1987
Ad valorem taxes,
penalties, and interest $ 291,164 $ -0- $ -0- $ -0- $ 291,164
Franchise taxes 322152 -0- -0- -0- 322152
Municipal sales tax 99,130 -0- -0- -0- 99,130
Sanitation 99,926 -0- -0- -0- 999926
Court/Fines 33,689 -0- -0- -0- 33,689
Intergovernmental revenue -0- 3,447 -0- 11,128 14,575
Interest Income 81401 20 1,143 1,118 10,682
Miscellaneous 78,101 -0- -0- -0- 78,101
TOTAL REVENUES $ 642,563 $ 3,467 $ 19143 $ L21246 $ 659,419
EXPENDITURES
Current
General government $ 294,179 $ -0- $ -0- $ -0- $ 2942179
Public works 244,692 -0- -0- -0- 244,692
Public safety 182,649 7,135 -0- -0- 189,784
Non -departmental -0- -0- -0- 13,926 13,926
Capital Outlay 27044 -0- -0- -0- 2,044
Debt Service
Principal Retirement 19,861 -0- 40,000 -0- 59,861
Interest 67,511 -0- 4,100 -0- 71,611
Fees 1,146 -0- 125 -0- 1,271
TOTAL EXPENDITURES $ 312,082 $ 79135 $ 44,225 $ 132926 $ 877,368
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ (169,519) $(31668) $(43,082) $ (1,680) $ (2177949)
OTHER FINANCING SOURCES (USES)
Operating transfers in $ 169,423 $ -0- $ 352451 $ -0- $ 2047874
Operating transfers out (37,166) -0- (129018) -0- (49,184)
TOTAL OTHER FINANCING
SOURCES (USES) $ 132,257 $ -0- $ 23,433 $ -0- $ 155,690
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) $ (375262) $(31668) $(19,649) $ (1,680) $ (629259)
FUND BALANCES -BEG. OF YEAR $ 96,793 $ 4,915 $ 199649 $ 135138 $ 134,495
FUND BALANCES -END OF YEAR $ 59,531 $ 1,247 $ -0- $ 11,458 S 72,236
B-3
CITY OF SANGER) TEXAS
UTILITY FUND
STATEMENT OF REVENUE AND EXPENSE AND CHANGES IN RETAINED EARNINGS
FOR THE THIRTEEN MONTHS ENDING SEPTEMBER 309 1987
Operating Revenue:
Electricity
Water Sales
Sewer Charges
Miscellaneous
Total Operating Revenues
Operating Revenue Deductions:
Sanger Electric System
Water Department
Less: Utilities Expense and
Capital Outlays
Sewer Department
Less: Utilities Expense and
Capital Outlays
Total Operating Revenue
Deductions
Operating Revenue before Depreciation
Depreciation
Operating Revenue
Non -Operating
Interest
EPA Grant
Non -Operating
Interest
Fees
Transfer
Net Revenue
Revenue
Earnings
Expense
Expense and
n Revenue Bonds
to Other Funds (Net)
Retained Earnings
Beginning of Year
Retained Earnings - End of Year
1987
$ 1,745,482
283,977
149,182
9,950
$ 2,188,591
$ 1,549,636
103,656
40,293
$ 1,693,585
$ 495,006
(136,924)
$ 358,082
$ 53,742
46,481
$ 1009223
$ (187,646)
(155,690)
$ 114,969
$ 1,707,828
$ 1,822,797
These financial statements are subject to the accountant's opinion
ujmc
. CITY OF BANGER, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1987
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sanger operates under a Council -Manager form of government and
provides the following services as authorized by its charter: public safety
(police and fire), highway and streets, sanitation, health and social services,
culture -recreation, public improvements, planning and zoning, and general
administrative services.
The City�s comprehensive annual financial report included the accounts of all
City operations.
The accounting policies of the City of Sanger, Texas conform to generally accepted
accounting principles. The following is a summary of such significant policies:
Principles Determining Scope of Reporting Entity
The financial statements of the City consists only of the funds and account
groups of the City. The City has no oversight responsibility for any other
governmental entity since no other entities are considered to be controlled by
or dependent on the City. Control or dependence is determined on the basis of
budget adoption, taxing authority, funding, and appointment of the respective
governing board.
Fund Accountin
The accounts of the City are organized on the basis of funds and account groups,
each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self -balancing accounts that comprise
its assets, liabilitites, fund equity, revenues, and expenditures, or expenses, as
appropriate. Government resources are allocated to and accounted for in 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 generic fund types and broad fund categories as
follows:
Governmental Funds
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.
Special Revenue Funds - The Special Revenue Funds account for revenues derived
from specific taxes or other earmarked revenue sources. The Revenue Sharing Fund
is a special revenue fund used to account for revenue from Federal Revenue Sharing.
Debt Service Fund - The General Debt Service Fund is used to account for the
accumulation of resources for, and the pdyment of, general long-term debt
principal, capitalized lease obligations, interest, and related costs.
C-1
Proprietary funds
Enterprise Fund - The Water Works, Electric and Sewer System Fund is used to
account for the operations of the Water, electric and Sewer Utility Enterprise
Fund. Enterprise Funds are used to account for operations (a) which are financed
and operated in a manner similar to private business enterprises - where the
intent of the governing body is the 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.
Fixed Assets and Long -Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long-
term liabilities associated with a fund are determined by its measurement
focus. All governmental funds are accounted for on a spending or "financial
flow" measurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. Their fund
balance (net current assets) is considered a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues
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.
Fixed assets used in governmental fund type operations (general fixed assets)
are accounted for in the General Fixed Assets Account Group, rather than in
governmental funds. Public domain ("infrastructure") general fixed assets
consisting of certain improvements other than buildings, including roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, and
lighting systems, have not been capitalized. Such assets are normally immovable
and of value only to the City, therefore, the purpose of stewardship for these
items is satisfied without recording of these assets. No depreciation has
been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if
actual historical cost is not available: Donated fixed assets are valued at
their estimated fair value on the date donated.
Long-term liabilities expected to be financed from governmental funds are
accounted for in the General Long -Term Debt Account Group, not in the govern-
mental 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.
Because of their spending measurement focus, expenditure recognition for
governmental fund types is limited to exclude amounts represented by noncurrent
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.
C-2
All proprietary funds are accounted for on a cost of services or "capital
maintenance" measurement'focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with their activity are included on
their balance sheets. Their reported fund equity (net total assets) is segregated
into contributed capital and retained earnings components. Proprietary fund
type operating statements present increases (revenues) and decreases (expenses)
in net total assets.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged
as an expense against their operations. Accumulated depreciation is reported
on proprietary fund balance sheets. Depreciation has been provided over the
estimated useful lives using straight line method. The estimated useful lives
are as follows:
Utility plant 40-50 years
Improvements 20-30 years
Machinery and Equipment 5-10 years
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 measurements made, regardless of
the measurement focus applied.
A11 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. Property Taxes are recorded as revenue when
levied even though a portion of the taxes may be collected in subsequent years.
Penalties and Interest, Court and Miscellaneous Revenues are recorded when
received in cash because they are generally not measurable until actually
received. Franchise Taxes, Sales Taxes, Intergovernmental Revenue, and Interest
Income are accrued, when their receipt occurs soon enough after the end of the
accounting period so as to be both measurable and available.
Expenditures are generally recognized under the modifed accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule
include principal and interest on general long-term debt which is recognized
when due.
A11 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. Unbilled Water Works, Electric, and Sewer
System Fund Utility service receivables are recorded at year end.
Investments
Investments are stated at cost or amortized cost, which approximates market.
C-3
Inventories
Inventory held by the Water Works, Electric and Sewer System Fund is priced
at the lower of cost (first -in, first -out) or market. Minimum amounts of
inventory are not maintained, therefore, equity reserves for inventory have
been presented on an average cost basis.
Restricted Assets
These assets consist of cash and short-term investments restricted for Water
Works, Electric and Sewer System Fund debt service.
Reserves
The City records reserves to indicate that a portion of the fund balance is
Legally segregrated for a specific future use.
Following is a list of all reserves used by the City and a description of each:
Reserved for Revenue Bond Debt Service - An account used to segregate a portion
of fund balance for debt service resources legally restricted to the payment of
long-term debt principal and interest amounts maturing in future years.
Reserved for Revenue Bond Retirement - An account used to segregate a portion
of fund balance for debt service resources restricted to the payment of long-
term debt principal and interest amounts maturing in future years when sufficient
amounts are not reserved in bond debt service accounts.
Reserved for Revenue Bond Contingency - An account used to segregate a portion of
fund balance for debt service resources restricted to the payment of long-term
principal and interest amounts maturing in future years when sufficient amounts
are not reserved in the bond debt service and bond retirement reserve accounts.
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 taxes
Levied October 1 become delinquent February 1 of the following year.
Property tax revenues are recognized when they become available. Available includes
those property tax receivables expected to be collected within sixty days after
year end. Delinquent taxes are considered fully collectible and therefore no
allowance for uncollectible taxes is provided.
General Obligation Enterprise Bonds
The Water, Electric and Sewer System Fund provides the annual debt service require-
ments on certain general obligation enterprise bonds (not secured by system
revenues) issued to finance system improvements. Since the Water, Electric and
Sewer System Fund provides the annual debt service on these general obligation
enterprise bonds, the bonds are considered to be obligations of the Water, Electric
and Sewer System Fund and have been reported on the balance sheet of the Water,
Electric and Sewer System Fund.
C-4
General Obligation Enterprise Bonds (Cont'd)
Although the general obligation enterprise bonds are reported on the balance
sheet of the Water, Electric, and Sewer System Fund, they are backed by the full
faith and credit of the City and are therefore a contingent liability to the
general government.
Change in Year End
The City Council approved a change in the fisical year end. The City's records
will reflect a year end of September 30 instead of August 31. This change will
enable the City to be compared to other municipals of the same size. Due to
this change, the financial statements reflect thirteen months of operation.
Comparative Data
Comparative data for the prior year has not been presented in the accompanying
Financial statements as the current year information is based on a thirteen
month period compared to a twelve month period in prior years.
Total Columns on Combined Statements - Overview
Total columns on the Combined Statements = Overview 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 2 - DEBT SERVICE REQUIREMENTS
The City is required under provision of revenue bond ordinances to maintain
interest and sinking funds adequate for payments of interest and principal on
the revenue bonds, and to establish reserve and emergency funds which are to
be used only for payment of interest and }principal in the event there are not
sufficient funds available in the required interest and sinking funds. For
the thirteen months ended September 30, 1987, the required interest and sinking
Funds were adequately maintained and the required amounts of reserve and
emergency funds had been established.
NOTE 3 - CERTIFICATES OF OBLIGATION/NOTES PAYABLE
Certificates of Obligation consisted of the following:
Description
General
Use
Road Improve.
Original
$ 700,000
Current
Amount
$ 700,000
C-5
Notes Payable consisted of the following:
Original Current
Description Use Amount Amount
First National Bank
of Sanger Utility
9.5% interest rate Truck $ 54,487 $ 49,648
Gruman Emergency Products,
Inc.
8.25% interest rate Fire Truck 76,688 60,300
TOTAL $ 831,175 $ 809,948
NOTE 4 - SECURITY BOND
The First National Bank of Sanger operates as the depository bank for the
City of Sanger. The First National Bank of Sanger pledged bonds totaling
$989,145 as security for the City's cash accounts.
C-6
CITY OF SANGER, TEXAS
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30, 1987
ASSETS
September 30,
1987
Cash $ 15,759
Investments 56,141
Due from Other Funds: Sanger Electric 29855
Taxes Receivable -Delinquent 70,112
Due from Sanitation 11,055
Prepaid Insurance -0
TOTAL ASSETS $ 155,922
LIABILITIES, RESERVES,_ AND FUND BALANCE
Accounts Payable $ 15,224
Reserve for Uncollected Taxes -Delinquent 70,112
Fund Balance 70,586
TOTAL LIABILITIES, RESERVES, AND FUND BALANCE $ 155,922
These financial statements and accompanying notes are subject to the
accountants opinion.
D-1
CITY OF SANGER, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES�AND CHANGES IN FUND BALANCE
(GAAP BASIS) AND ACTUAL
FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
REVENUES
Ad valoren taxes, penalties
and interest
Franchise taxes
Municipal sales tax
Sanitation
Court/Fines
Interest Income
Miscellaneous
TOTAL REVENUES
EXPENDITURES
General Government
TOTAL GENERAL GOVERNMENT
39
Actual
1987
Variance
Favorable
Unfavorable
$ 284,752 $ 291,164 $ 6,412
21,000 32,152 11,152
95,000 99,130 4,130
128,500 110,981 (17,519)
50,000 339689 (16,311)
39000 8,401 5,401
121065 78,101 (43,864)
$ 704,217 $ 653,618 $ (50,599)
316,378 $ 294,179 $ 22,190
$ 316078 $ 294,179 $ 22,190
Public Works
Sanitation $ 129,224 $ 157,983 $ (28,759)
Streets 719986 72,898 (912)
Planning/Parks 17,252 13,811 3,441
TOTAL PUBLIC WORKS
218,462 $ 244,692
See Notes to the Financial Statements
D-2
(26,230
CITY OF SANGER, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET (GAAP BASIS) AND ACTUAL
Public Safety
Police
Fire
TOTAL PUBLIC SAFETY
TOTAL CURRENT EXPENDITURES
Capital Outlay
TOTAL EXPENDITURES
OTHER FINANCING SOURCES (USES)
Debt Service
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER EXPENITURES AND
OTHER USES
FUND BALANCE (DEFICIT) -
Beginning of Year
FUND BALANCE (DEFICIT) -
End of Year
1987
Variance
Favorable
Budget Actual (Unfavorable)
$ 167,701
23,550
$ 165,319
17,330
$ 2,382
6.220
$ 191,251 $ 182,649 $ 8,602
$ 726,091 $ 721,520 $ 4,571
28,050 2,044 26,006
$ 754,141 $ 723,564 $ 30,577
$ 89,118
77,965
(88,518)
169It
(371166)
600
91,458
37,166
$ (11,153) $ 43,739 $ 54,892
$ (61t077)
$ 96,793
$ 70,586
See Notes to the Financial Statements
$ 34,870
I�
CITY OF BANGER, TEJ:AS
BANGER ELECTRIC SYSTEM
BALANCE SHEET
SEPTEMBER 30, 1987
ASSETS
Current Assets
Cash
Investment
Accounts Receivable
(Net of Allowance for Bad Debts)
Inventory
Total Current Assets
Restricted Assets
Customer Deposits
Total Restricted Assets
Fixed Assets
Electric Plant
Furniture and Equipment
Less: Accumulated Depreciation
Total Fixed Assets
Total Assets
$ 48,363
15,988
200,195
52,238
50,874
$ 316,784
$ 50,874
1,406,640
119,907
(593,493)
$ 933,054
$ 1130M12
These Financial Statements are subject to the accountant's opinion
E-1
CITY OF SANGER, TEXAS
SANGER ELECTRIC SYSTEM
BALANCE SHEET
SEPTEMBER 30, 1987
(Continued)
LIABILITIES
Current Liablilities
(Payable from Current Assets)
Due to Other Funds $ 29855
Account Payable 122,679
Consumer Deposits 50,874
Note Payable (Current Portion) 9,649
Total Current Liabilities $ 186,057
Other Liabilities
Note Payable 49,649
Less: Current Portion (91649)
Total Other Liabilities $ 40,000
Contribution
Customers 25,314
Total Contributions $ 25,314
Retained Earnings
Total Liabilities
$ 1,049,341
$ 1,300,712
These financial statements are subject to the accountant's opinion
E-2
CITY OF SANGER, TEXAS
UTILITY FUND
SUMMARY SCHEDULE OF REVENUES AND EXPENDITURES
FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
REVENUES:
Electricity System
Water System
Sewer System
Miscellaneous
Interest
Grant
EXPENDITURES:
FINAL
BUDGET
$ 1,552,300
2749800
1609000
5,500
15,300
-0-
2,007,900
FINAL
BUDGET
Sanger Electric System $ 1,402,254
Water Department 154,025
Sewer Department 67,191
Debt Service 177,127
$ 1,800,597
Transfer to General Fund (Net)
ACTUAL
$ 1,819,179
283,977
149,182
9,950
53,742
46,481
$ 2,362,511
ACTUAL
$ 1,557,831
153,309
79,266
187,646
$ 1,9781052
$ 155,690
(OVER)
UNDER
BUDGET
$ (266,879)
(9,177)
10,818
(4,450)
(389442)
(46, 481)
$ (3549611)
(OVER)
UNDER
BUDGET
$ (155,577)
716
(12,075)
(10,519)
$ (177,455)
These financial statements and accompanying notes are subject to the
accountants opinion
E-3
CITY OF SANGER, TEXAS
TAX AND WARRANT INTEREST AND SINKING FUND
BALANCE SHEET
SEPTEMBER 30, 1987
ASSETS
Investments
Total Assets
LIABILITIES AND FUND BALANCE
Fund Balance
1987
-0-
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
FOR THE THIRTEEN MONTHS ENDING SEPTEMBER 30, 1987
Receipts:
Interest
Appropriation from General Fund
Total Receipts
Disbursements:
Bond Retirements
Interest Payments
Agents Fees/Bank Charges
Total Disbursements
Excess of Receipts over Disbursements
Transfers to General Fund
Cash Balance, Beginning of Year
Cash Balance, End of Year
$ 1,143
35,451
$ 36,594
$ 40,000
4,100
125
$ 44,225
$ (7,631)
$ (12,018)
19.649
F-1
CITY OF SANGER, TEXAS
PAYROLL FUND
BALANCE SHEET
SEPTEMBER 30, 1987
ASSETS
Cash
Due from Other Funds
Total Assets
LIABILITIES AND FUND BALANCE
Fund Balance
Total Fund Balance
1987
$ 1,464
These financial statements and accompanying notes are subject to the
accountant's opinion.
G-1
CITY OF SANGER, TEXAS
REVENUE SHARING FUND
BALANCE SHEET
SEPTEMBER 30, 1987
ASSETS
Cash
Investments
Total Assets
1987
$ 906
341
LIABILITIES AND FUND BALANCE
Fund Balance $ 1,247
ANALYSIS OF CHANGES IN FUND BALANCE
FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
Balance, Beginning of Year
Add: Excess of Revenues over Expenditures
Revenue
Expenditures
Total
Balance, End of Year
1987
5
3,467
(7,135)
$(3,668)
H-1
These financial statements and accompanying notes are subject to the accountant's opinion.
CITY OF SANGER, TEXAS
STATEMENT OF GENERAL FUNDED DEBT
SEPTEMBER 309 1987
ASSETS
1987
Amounts to be provided for Retirement of Debt $ 760,300
TOTAL ASSETS $ 760,300
LIABILITIES AND FUND BALANCE
Certificate of Obligation $ 700,000
Note Payable 60,300
TOTAL LIABILITIES AND FUND BALANCE $ 760,300
These financial statements and accompanying note are subject to the
accountant's opinion.
I-1
CITY OF SANGER, TEXAS
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS -BY SOURCE
(Rounded to the Nearest Dollar)
FOR THE THIRTEEN MONTHS ENDED SEPTEMBER 30, 1987
General Fixed Assets
Beginning of Year
TOTAL
$881,195
Captial Expenditures 7,044
General Fixed Assets
End of Year $888,239
LAND
$58,683
BUILDING
$125,945
$125,945
IMPROVEMENTS
OTHER THAN
BUILDING
$ 446,577
$ 446,577
MACHINERY
AND
EQUIPMENT
7,044
$ 257,034
These financial statements and accompanying notes are subject to the accountant's
opinion.
J-1
Tax
Year
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
*1986
TAX RATE:
0
1971-1977
1978-1980
1981
1982
1983
1984
1985
1986
CITY OF BANGER,
PROPERTY TAX LEVIES AND
FOR THE THIRTEEN MONTHS ENDED
TEAXAS
COLLECTIONS
SEPTEMBER 30, 1987
Assessed Tax Current Total
Value Levy Collections Percent Collections Percent
59411,061 $ 32,466 $ 29,088 89.60% $ 29,907 92.12%
599749913 35,846 33,067 92.25% 36,040 100.54%
69478,717 38,873 35j643 91.69% 39,244 100.96%
6,7829337 40,694 371601 92.40% 39,885 98.00%
71740,725 46,444 41047 90.3O% 44,368 95.50%
81655,680 60,821 52j391 86.10% 54,643 89.80%
99597,514 655951 58j384 88.50% 64,036 97.10%
211378,529 106,870 99068 92.70% 107,144 100.30%
401919,840 1849139 1725019 93.42% 177,936 96.63%
4310739043 202,443 192y500 95.09% 205,226 101937%
441445,069 215,559 205,218 95.20% 209,739 97.30%
51,763,572 271,672 243,201 89.52% 2469664 90.79%
621066,231 2959496 264,530 89.52% 281,387 95.23%
$ .60
.70
.50
.45
.47
.485
.524
.4740
�ti Thirteen months of collections due to year end change.
These financial statements and accompanying notes are subject to the accountant's
opinion.
K-1
Description
General Obligation Bonds
Series 1982
Series 1986
Interest Rates
10.10%
9.385%
CITY OF BANGER, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 1987
Dates
Final
Issues Maturity
Date Date
Bonds -
Authorized Issued Retired Outstanding
05/15, I1/15 1982 1987 $ 150,000 $ I50,000 $ 150,000 $ -0-
05/15, 11/15 L986 1996 700,000 7009000 -0- 700,000
Utilites Revenue Boad
Series 1973 5 1/2i-5 7/8% 05/15, 11/15 1973 1993 _ 2952000 -__ 2951000 _____.-.-I351000 ___ _._1601000
Series 1976 5 1/2i-7 1/4% 05/15, 11/15 1976 1995 305,000 305P000 90,000 215400
Series 1977 4.9% - 6% 05/152 11/15 1977 1996 360,000 360s000 115,000 2459000
Series 1982 12.71i 05/159 11/15 1982 1997 450,000 450,000 80,000 3707000
Series 1985 9.3835% 05/159 11/15 1985 2001 8452000 8457000 10,000 835,000
Total Utility Revenue Bonds $ 29255,000 $ 27255,000 $ 4309000 $ 1,8252000
Totals $ 3,105,000 $ 3,105,000 $ 580,000 $ 2,5257000
These financial statements and accompanying notes are subject to the accountant's opinion.
K-Z
CITY OF SANGER, TEXAS
PRINCIPAL AND INTEREST REQUIREMENTS
SEPTEMBER 30, 1987
UTILITY REVENUE BONDS
Year Ended
September 30 Principal Interest Total
1988 $ 80,000 $ 161,831 $ 241,831
1989 90,000 155,607 245,607
1990 953000 148,495 243,495
1991 1059000 140,737 245,737
1992 115,000 132,066 247,066
1993 1209000 1229387 242,387
1994 130,000 112,788 2429788
1995 145,000 101,938 246,938
1996 1609000 89,180 249,180
1997 170,000 75,210 245,210
1998 190,000 56,510 2469510
1999 210000 39,220 249,220
2000 210,000 199900 229,900
2001 5,000 475 59475
$ 1,825,000 $ 19356,344 $ 39181,344
GENERAL OBLIGATION BONDS
1988 $ 55,000 $ 60,550 $ 115,550
1989 60,000 54$00 114,500
1990 65,000 48,125 113,125
1991 70,000 41000 111,300
1992 75,000 33,950 108,950
1993 80,000 28,700 108,700
1994 90,000 22,900 112,900
1995 100,000 16,150 116,150
1996 105,000 8,400 113,400
$ 700,000 $ 314,575 $ 13014,575
These financial statements and accompanying notes are subject to the accountant's
opinion.
K-3
CITY OF BANGER, TEXAS
UTILITY RATES
SEPTEMBER 30, 1987
Water Rates $
First 1,000 gallons (minimum) 8.00
Per 1,000 gallons thereafter 1.00
Sanitation Rates $
Residential - Flat Rate 6.50
Commericial - Flat Rate 9.00
Sewer Rates
Residential
First 1,000 gallons $ 8.00
Per 1,000 gallons thereafter .60
Commercial
First 1,000 gallons $ 14.00
Per 1,000 gallons thereafter .60
Number of Connections (September 30, 1987)
Water 1,199
Sewer 11362
Electric 1,546
Water Usage 153,919,000 gallons
K-4
These financial statements and accompanying notes are subject to the accountant's opinion
MASTON A. WRIGHT
CERTIFIED PUBLIC ACCOUNTANT
628 FIRST STATE DANK BLDG.
DENTON, TEXAS 76201
817/387-8721
March 299 1988
City Council
City of Sanger
Sanger, Texas 76266
MEMBER:
AMERICAN INSTITUTE
CERTIFIED PUBLIC ACCOUNTANTS
Following are a number of improvements we feel would strengthen the
operation of the City.
Computer Back -Up
Off -premise storage should be available for computer back-up disk. A
back-up system should be available through a written dealer agreement or with
another city using the same system.
Receipt Books
Books should be in sequencial numerical order. All copies of voided
receipts should be kept in the receipt book. Deposit dates and amounts should
be reflected in the receipt book.
Education
The City should provide necessary education, training, and supervision of
employees to insure proper knowledge and understanding of duties to be performed.
Seminars, outside consultants, continuing education classes are a few suggestions.
Interfund Transfers
A responsible official should approve all Interfund transfers. All transfers
should be reconciled to their proper clearing of the account.
Special Assessments
A detail ledger should be maintained by property showing total assessment
due and method of payment. This ledger should be reconciled to the general
ledger and reviewed by an official to determine proper amounts were charged.
Proper documentation to open and close the account should be maintained in the
file.
Permits
Permits should be pre -numbered, triple in copies, and controlled by an
employee not responsible for the issuance of the permits.
Files
Purchase order copies should be maintained in a numerical order file.
Deposits
A11. deposits should be made to a checking account and then disbursed to
the various investment accounts.
City Council
City of Sanger
Separation of Duties
No one employee should have the responsibility of reconciling, posting,
issuing checks or making deposits. Separation of responsibilities should be
maintained wherever possible.
Sincerely,
Maston A. Wright
Certified Public Accountant
BUILDING INSPECTIONS
Pei VA 3 WOON
October 1506,00
November 656000
December 336,50
January 25000
February 1348:60
P2arch 463 , 70
TOTAL 4335.80