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1990 Annual Financial ReportAUDIT REPORT •■ THE FISCAL YEAR ENDED l _M ,k .,M2KTf A, y � DENTONF TEXAS 76201 ' i } : } 1. ELECTED CITY OFFICIALS CITY COUNCIL Nel Armstrong Jerry Jenkins Margie Braxton Danny McDaniel Carroll McNeill Harvey W. Thomas APPOINTED OFFICIALS John Hamilton Rosalie Garcia Mayor Alderman Mayor ProTem Alderman Alderman Alderman Alderman City Manager City Secretary Tax Collector CITY OF SANGER, TEXAS TABLE OF CONTENTS SEPTEMBER 30, 1990 Accountants Report of Financial Statements and Supplemental Schedules Combined Balance Sheet -All Funds Combined Statement of Revenue, Expenditures, and Changes I n Fund Balances -All Governmental Fund Types Statement of Revenue, Expense, and Changes in Retained Earnings -Proprietary Fund Statement of Cash Flows - Proprietary Fund Notes to Financial Statements Balance Sheet -General Fund Statement of Revenue, Expendituresand Ch Balances -General Fund , anges in Fund Statement of Revenue, Expenditures, and Changes in Fund Balances -Budget versus Actual -General Fund Balance Sheet -Enterprise Fund Schedule of Revenue and Expenditures -Enterprise Fund Schedule of Revenue and Expenditures -Budget versus Actual -Enterprise Fund Statement of General Funded Debt Statement of Changes in General Fixed Assets -By Source Combined Schedule of Bonds Payable Property Tax Levies and Collections Utility Revenue Bonds -Principal and Interest Requirement Utility Rates Page 1 2-5 6-7 8 9 10-17 18 19-20 21 22-23 24 25 26 27 28-29 30 31 32 CERTIFIED PUBLIC ACCOUNTANT (917) 666.2449 520 SOUTH HIGHWAY 377 P,O, 60X 33 PINT POINT, TEXAS 76255 December 19, 1990 To the City Council City of Sanger, Texas We have audited the accompanying financial statements of the City of Sanger, Texas, as of September 30, 1990, and for the year then ended as listed in the table of contents. These financial statements are the responsibility of the City of Sanger, Texas, management. Our responsibility is to express an opinion on these financial statements based on 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the City of Sanger, Texas, as of September 30, 1990, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the 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 financial statements of the City of Sanger, Texas. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. � r J9 in P. Graves Certified Public Accountant Certified Internal Auditor Certified Fraud Examiner CITY OF SANGER, TEXAS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1990 Assets CASH AND INVESTMENTS: Cash (Note 8) $ Certificates of Deposit and Savings (Note 7) RECEIVABLES: Taxes Accounts (Net) Other DUE FROM OTHER FUNDS INVENTORY - at cost (Note 9) RESTRICTED ASSETS: Investments at cost PROPERTY, PLANT, AND EQUIPMENT: Land/Easement Building Water System Sewer System Electric System Equipment Improvements Accumulated Depreciation AMOUNT TO BE PROVIDED FOR RETIREMENT OF GENERAL LONG-TERM DEBT Governmental Fund Types Special Debt Library -General--Revenue--Service-Projects 6,067 $ 84,310 102,073 154 7,462 --------------------------- TOTAL ASSETS -------- See Notes to Financial Statements 2 Proprietary Fund Account Groups Totals ---------------- -------------------- ------------------------ General General Fixed Long -Term (Memorandum Only) Enterprise Assets Debt 1990 1989 -------------------------------------------------------------------- $ 221686 88,586 172,896 102,073 299,626 299,626 10,178 10,332 7,462 10,192 10,192 816,699 816,699 1,500 58,683 60,183 125,945 125,945 11076,536 11076,536 11805,221 11805,221 11528,464 1,528,464 293,308 380f695 674,003 14,623 491,647 506,270 (11814,007) (11814,007) $ 98,040 136,799 87,380 2941277 73,550 61,445 60,183 125,945 943,290 1,790,298 1,528,466 591,095 489,178 (1,648,489) 564,519 564,519 663,106 -------------------------------------------------------------------- $ 41153,612 $ 11056,970 $ 564,519 $ 51975,167 $ 61144,045 3 CITY OF SANGER, TEXAS COMBINED BALANCE SHEET (CONT'D) ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1990 Liabilities -and -Fund -Equity LIABILITIES: Accounts Payable $ Due to other funds Customer Deposits Deferred tax revenue PAYABLE FROM RESTRICTED ASSETS: Revenue bonds payable (Current) Accrued Interest Payable REVENUE BON Governmental Fund Types ----------------------------- Special Debt Librar General Revenue Service Projec ---------------------------------- 102,073 DS PAYABLE (Less Current) CERTIFICATES OF OBLIGATION INSTALLMENT NOTE PAYABLE TOTAL LIABILITIES FUND EQUITY: Contributed capital Investment in general fixed assets Retained Earnings Reserved for revenue bond retirement Unreserved Fund Balances Unreserved Undesignated TOTAL FUND EQUITY ------------------------ $ ----------------------------- 89,809 $ ------------------------------- TOTAL LIABILITIES & FUND EQUITY ------ $ 2001066 $ $ $ See Notes to Financial Statements Proprietary Fund Account Groups Totals ------------------ ------------------ --------------------- General General Fixed Long -Term (Memorandum Only) Enterprise Assets Debt 1990 1989 ------------------------------------------------------------------ $ 130,880 $ $ $ 130,880 $ 122,073 72,695 63,790 63,790 61,108 102,073 86,811 1051000 105,000 95,000 52,232 60,416 48,062 11455,000 1,455,000 1,565,000 520,000 520,000 585,000 18,410 44,519 62,929 107,781 ------------------------------------------------------------------ $ 11825,312 $ $ 564,519 $ 21500,088 $ 21743,530 $ 100,196 $ $ $ 100,196 $ 100,196 1,056,970 1,056,970 1,026,348 871,231 871,231 871,231 1,356,873 I 1,356,873 1,374,677 89,809 28,063 ------------------------------------------------------------------ $ 21328,300 $ 11056,970 $ $ 31475,079 $ 31400,515 ------------------------------------------------------------------ $ 41153,612 $ 11056,970 $ 564,519 $ 51975,167 $ 61144,045 5 COMBINED STATEMENT OF J FOR ' w CITY OF SANGER, TEXAS REVENUES, EXPENDITURES, AND ALL GOVERNMENTAL FUND TYPES THE YEAR ENDED SEPTEMBER 30, REVENUES: Ad valorem taxes, penalties, and interest Franchise taxes Municipal sales tax Sanitation Court/Fines Intergovernmental revenue Interest Income Miscellaneous Forgiveness of Debt (Note 6) TOTAL REVENUES EXPENDITURES: Current: General Government Public Works Public safety Non -departmental Capital Outlay Debt Service: Principal Retirement Interest Fees TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) FUND BALANCES -BEG. OF YEAR FUND BALANCES -END OF YEAR CHANGES IN FUND BALANCES 1990 Governmental Fund Types ------------------------------ Special Debt Library -General--Revenue--Service--Projects $ $ 350,751 $ $ 24,016 93,490 159,162 18,525 10,452 57,420 68,374 266,028 241,696 3 0,622 93,976 60,536 757 ------------------------- $ (44,965) $ 106,711 --------------------------- $ 106,711 $ $ $ 61,746 $ ------------------------- (Note 5)$ 28,063 $ $ 89,809 $ $ -------------------------------------- (Memorandum Only) 1990 1989 -------------------------------------- $ 350,751 $ 347,871 24,016 28,925 93,490 95,003 159,162 145,733 18,525 17,442 11,814 10,452 61311 57,420 46,925 68,374 ----------------------------------------------- $ 782,190 $ 700,024 ----------------------------------------------- $ 133,540 $ 206,098 266,028 212,446 241,696 212,842 20,812 30,622 30,220 93,976 86,276 60,536 54,877 757 1,033 827,155 $ 824,604 (44,965) $ (124,580) $ 106,711 $ 123,245 ----------------------------------------------- $ 106,711 $ 123,245 ----------------------------------------------- $ 61,746 $ (11335) ----------------------------------------------- $ 28,063 $ 28,018 ----------------------------------------------- $ 89,809 $ 26,683 7 CITY OF SANGER, TEXAS FUND STATEMENT OF REVENUE AND EXPENSERISE AND CHANGES FOR THE YEAR ENDED SEPTEMBER Operating Revenue: Electricity Water Sales Sewer Charges Sanitation Miscellaneous Total Operating Revenues Operating Deductions: Sanger Electric System Water Department Sewer Department Other Departmental Expense Total Operating Deductions Operating Revenue before Depr. Depreciation Operating Revenue Non -Operating Revenue: Interest Earnings EPA Grant Total Non -Operating Revenue Non -Operating Expense: Interest Expense and Fees on Revenue Bonds Transfer to Other Funds (Net) Total Non -Operating Expense Net Revenue Retained Earnings: Beginning of Year End of Year IN RETAINED EARNINGS 30, 1990 1990 1989 $ 11758,754 $ 11761,675 322,211 259,220 232,380 177,442 150,848 145,444 852 2,450 ---------------------- $ 21465,045 $ 21346,231 $ 1,485,360 $ 1,309,833 219,548 139,709 86,977 92,128 195,771 $ 11987,656 $ 11541,670 $ 477,389 $ 804,561 --(165,518) (144,603) -------------------- $ 311,871 $ 659,958 $ 83,360 $ 62,076 4,490 $ 83,360 $ 66,566 (256, 626) (383, 627) ------------------- $ (413,035) $ (548,602) $ (17,804) $----177,922 $ 21228,105 $ 21245,909 These Financial Statements are subject to the accountants opinion. 1001 CITY OF SANGER, TEXAS ACCRUAL CASH FLOW STATEMENT FOR THE YEAR ENDED SEPTEMBER 30, 1990 Year to Date Cash from Operating Activities: Sales $ 21465,045 (Increase) Decrease -Accounts Receivable 49,873 Total Cash from Customers $ 21514,918 Total Cash from Operations $ 21514,918 Cash Disbursed for Operating Activities Cost of Sales $ 11485,360 (Increase) Decrease - Accounts Payable (71978) Cash Paid for Merchandise $ 11477,382 Expenses: Operating Expenses $ 924,440 (Increase) Decrease -Accrued Expenses (41170) Less Depreciation Expense (165,518) Cash Paid for Expenses $ 754,752 Total Cash Disbursed $ 21232,134 Net Cash from Operations $ 282,784 Cash Flow from Investing Activities: Interest Income $ 83,360 Interest Expense (156,409) Cash from Investing $ (73,049) Cash Flow from Financing Activities: Increase (Decrease) -Long Term Debt (106,298) (Increase) Decrease Fixed Assets (166,292) Increase (Decrease) in Fund Equity 11380 Cash from Financing $ (271,210) Net Increase (Decrease) in Cash $ (62,527) Reconciliation: Cash in Bank - Operating $ (60,578) Cash in Bank - Investments 30,834 Restricted Assets (32,783) Net Change in Cash Accounts $ (62,527) CITY OF SANGER, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1990 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 C0t0Z comprehensive annual financial report included the accounts of all City operations. The accounting policies %d 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 consist only of the fund and account groups for 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 Accounting --------------- The accounts of the City are organized on the basis of fund 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, liabilities, 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 the 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 payment of, general long-term debt principal, capitalized lease obligations, interest, and related costs. 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 to 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 governmental funds. The two account groups are not "funds". They are concerned only with the measurement of financing position. They are not involved with measurement of results of operations. Because U.L 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. 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 orted fund equity (net total assets) is segregated into contributedecapital 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 b y prop rietary funds is charged as an expense against their operationse Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the 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. 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. 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. 12 Expenditures are generally recognized under the modified 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. 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. 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. 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 VW67e "e 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 segregated 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 ii'i, 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. 13 Revenue Recognition - Property Taxes ----------------------------------- Property taxes attach as 1. Taxes are levied on time. All unpaid taxes 1 of the following year. an enforceable lien on property as of January October 1 and are due and payable at that levied October 1 become delinquent February 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 collectable and therefore no allowance for uncollectable taxes is provided. General obligation Enterprise Bonds ----------------------------------- The Water, Electric, and Sewer System Fund provides the annual debt service requirements on certain general obligation enterprise bonds (not secured by system revenues) issued to finance system I mprovements. 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. 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. 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 onlyforpayment and principal in the event there are not sufficientfunds lavailable in the required interest and sinking funds. For the year ended September 30, 1990, 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 Fund -Street Construction 8-11% interest rate Original Use Amount Road Improve. Notes Payable consisted of the following: Description Gainesville National Bank of Sanger 9.5% interest rate Gruman Emergency Products, Inc. 8.25% interest rate Sanger Bank 9.576 interest rate Sanger Bank 9.5� interest rate Gainesville National Bank of Sanger 9.5% interest rate TOTAL NOTE 4 - SECURITY BOND Use Utility Truck Fire Truck Police Car Patchman Fire Equipment current Amount $ 700,000 $ 520,000 $ 54,487 $ 18,410 76,688 27,125 23,914 2,281 23,675 3,724 16,000 11,389 $ 894,764 $ The Gainesville National Bank of Sanger operates as the depository bank for the City of Sanger. The Gainesville National Bank of Sanger pledged bonds totaling $1,300,000 as security for the City's cash accounts. NOTE 5 - Prior Period adjustment to General Fund Equity. On the FYE 09-30-89 audit report, the Police Reserve Checking � account was not reported as an asset or as fund equity. The total value of this savings account at 9-30-89 was $1,380, The following is a recalculation of the beginning General Fund balance: 15 582 ,929 Fund Balance as reported $ 26,683 Police Reserve Savings 11380 Fund Balance, as adjusted $ 28,063 NOTE 6 - FORGIVENESS OF DEBT - ENTERPRISE FUND During FYE 09-30-901 Sanger Electric entered into a loan agreement with the General Fund. Total funds loaned to General Fund were as follows: General Fund Street Fund Total Loans The City Council for the loan because funds were General Fund would need The debt was cancelled. $ 60,400 7,974 $ 68,374 City of Sanger decided not to repay this not available for repayment. Also, the a fund transfer to pay operaerating overhead. NOTE 7 - CERTIFICATES OF DEPOSIT - UNRESTRICTED The following is a listing of Certificates of Deposit and savings held by the General Fund that are unrestricted: Library CD Fire Truck Savings General Fund Equip, Street Bond Savings Fire Department CD Total Investments 57154 $ 1,500 197673 51757 Replacement 176891 71093 192211 17,453 57388 52,507 $ 84,310 The following is a listing of Certificates of Deposit and savings held by the Enterprise Fund that are unrestricted: Water Capital Reserve CD#58091 $ 4,466 Sewer Capital Reserve CD#58092 51499 Sanger Electric CD#58641 51,936 Sanger Electric CD#57167 15,598 Equipment Replacement CD#57829 11,087 Total Investments $ 88,586 16 NOTE 8 - CASH IN BANK - GENERAL FUND AND ENTERPRISE FUNDS GENERAL FUND - The following are included in cash for the General Fund: General Fund Checking Police Reserve Fire Department Accounts Payable Payroll Total 2493 $ 195164 3038 12930 299 (7,737) 1,407 11,128 802 467 6,067 ENTERPRISE FUND - The following are included in cash for the Enterprise Fund: Sanger Electric 2535 $ 17,453 Equipment Replacement 160002 41925 Water Capital Reserve 208108 103 Sewer Capital Reserve 208116 105 Cash on Hand - Register 100 Total $ 22,686 NOTE 9 - RESTRICTED ASSETS - ENTERPRISE FUND I The following Certificates of Deposit and savings accounts are held as restricted assets in the Enterprise Fund as required by Bond Ordinances and Customer Deposits: tw Sanger Electric Deposits 448 $ 7,880 Water Deposit 10553 61018 Sanger Electric CD #58026 127,308 Sanger Electric CD #57610 115,121 Water Deposit CD #93741 25,000 Sanger Electric Deposit CD #57855 25,000 Bond Construction Checking 2543 94,429 Bond Construction Savings _82 Reserve CD #56736 C_242,000_j Interest & Sinking Savings 192245 22,500X Interest & Sinking CD #57183 8814001� Emergency CD #57829 13,65,4 Emergency Checking 160101 420 Interest & Sinking CD #58117 48,887x Total $ 816,699 17 CITY OF SANGER, TEXAS GENERAL FUND BALANCE SHEET SEPTEMBER 30, 1990 Cash (Note 8) Investments (Note 7) Due from other Funds Taxes Receivable -Delinquent Fire Department CD (Note 7) Other Receivables TOTAL ASSETS ASSETS Sept. 30, 1990 $ 6,067 31,803 7,462 102,073 52,507 154 $ 200,066 LIABILITIES, REVENUES, AND FUND BALANCE --------------------------------- Accounts Payable Interest Payable Reserve for Uncollected Due to Other Funds Fund Balance (Note 5) Taxes -Delinquent TOTAL LIABILITIES, RESERVES, AND FUND BALANCE 8, 184 102,073 89,809 $ 200,066 Sept. 30, 1989 $ 12,583 23,836 2,855 87,380 50,000 $ 176,654 $ (460) 86,811 68,374 21,929 $ 176, 654 These financial statements and accompanying notes are subject to the accountant's opinion. E�3 CITY OF SANGER, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1990 1990 1989 ------------------------- REVENUES: Ad valorem taxes, penalties and interest $ 350,751 $ 347,871 Franchise taxes 24,016 28,925 Municipal sales tax 93,490 95,003 Sanitation 159,162 145,733 Court/Fines 18,525 17,442 Interest Income 10,452 51901 Miscellaneous 57,420 46,311 Forgiveness of Debt (Enterprise Fund - Note 6) 68,374 ------------------- TOTAL REVENUES $ 782,190 $ 687,186 EXPENDITURES: General Government $ 133,540 $ 206,098 TOTAL GENERAL GOVERNMENT $ 133,540 $ 206,098 Public Works: Sanitation $ 156,306 $ 133,356 Streets 83,730 70,270 Planning/Parks 11,449 81820 Public Works 14,543 ------------------- TOTAL PUBLIC WORKS $ 266,028 $ 212,446 Public Safety: Police $ 200,762 $ 184,475 Fire 40,934 28,367 ------------------- TOTAL PUBLIC SAFETY $ 241,696 $ 212,842 TOTAL CURRENT EXPENDITURES $ 641,264 $ 631,386 Capital Outlay 30,622 30,220 ------------------- TOTAL EXPENDITURES $ 671,886 $ 661,606 See Notes to Financial Statements CITY OF SANGER, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1990 1990 1989 ------------------------- OTHER FINANCING SOURCES (USES)s Debt Service $ (155,269) $ (142,186) Operating transfers in 106,711 123,245 Operating transfers out ---------- --------- TOTAL OTHER FINANCING SOURCES (USES) $ (48,558) $ (18,941) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ 61,746 $ 61639 FUND BALANCE (DEFICIT) Beginning of Year (Note 5) $ 28,063 $ 15,290 FUND BALANCE (DEFICIT) - End of Year $ 89,809 $ 21,929 See Notes to Financial Statements CITY OF SANGER, TEXAS GENERAL FUND SCHEDULE OF INCOME AND EXPENDITURES BUDGET VERSUS ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1990 Excess Over/(Under) Budget Actual Budget ----------------------------------- Revenue: Ad valorem Taxes: Penalties and Interest $ 351,752 $ 350,751 $ (11001) Franchise Taxes 25,250 24,016 (11234) Municipal Sales Taxes 102,250 93,490 (81760) Sanitation 145,250 159,162 13,912 Court/Fines 18,500 18,525 25 Interest Income 3,500 10,452 6,952 Miscellaneous Income 59,130 57,420 (11710) Forgiveness of Debt 68,374 68,374 --------------------------- Total Revenue $ 705,632 $ 782,190 $ 76,558 Expenditures: Current: General Government $ 118,909 $ 133,540 $ 14,631 Public Works 286,524 266,028 (20,496) Public Safety 235,604 241,696 61092 Capital Outlay 30,622 30,622 Debt Service: Principal Retirement 98,636 93,976 (41660) Interest 52,570 60,536 71966 Fees 757 757 --------------------------- Total Expenditures $ 792,243 $ 827,155 $ 34,912 Excess Expenditures Over Revenue $ 86,611 $ (44,965) $ 41,646 Operating Transfers In $ 91,711 $ 106,711 $ 15,000 Operating Transfers Out --------- --------- --------- Remaining Excess $ 51100 $ 61,746 $ 56,646 Fund Balance, Beginning (Note 5) 28,063 Fund Balance, Ending $ 89,809 These Financial Statements are subject to the accountant's opinion. 21 Current Assets: --------------- Cash (Note 8) Investments (Note 7) Accounts Receivable (Net of Allowance for Inventory Interest Receivable CITY OF SANGER, TEXAS ENTERPRISE FUND BALANCE SHEET SEPTEMBER 30, 1990 ASSETS Doubtful Accounts) Total Current Assets Restricted Assets: ------------------ Customer Deposits (Note 9) Investments at Cost (Note 9) Total Restricted Assets Property, Plant, and Equipment: ------------------------------- Electric Plant Water System Sewer System Furniture and Fixtures Easement Improvements Less: Accumulated Depreciation Total Total Assets Property, Plant, and Equipment 22,686 88,586 299,626 10,192 10,178 63,790 752,909 1,528,464 1,076,536 11805,221 293,308 1,500 14,623 (11814,007) $ 431,268 816,699 2,905,645 $ 4,153,612 CITY OF SANGER, TEXAS ENTERPRISE FUND BALANCE SHEET SEPTEMBER 30, 1990 (Continued) LIABILITIES AND EQUITY ---------------------- Current Liabilities: -------------------- Accounts Payable $ 130,880 Customer Deposits 63,790 Accrued Interest Payable 52,232 Current Portion of Long -Term Liabilities 113,017 Total Current Liabilities Long -Term Liabilities: ---------------------- Bonds Payable 11560,000 Notes Payable 18,409 Less: Current Portion (113,017) Total Long -Term Liabilities Contributions: -------------- Customers 25,314 In Aid of Construction 74,882 Total Contributions Equity: Retained Earnings, September 30, 1989 21245,909 Current Period Loss (17,804) Ending Retained Earnings Total Liabilities and Equity 23 $ 359,919 1,465,392 2,228,105 $ 4,153,612 CITY OF SANGER, TEXAS UTILITY FUND SUMMARY SCHEDULE OF REVENUES AND EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 1990 REVENUES: Electricity System Water System Sewer System Sanitation Miscellaneous Interest Grant EXPENDITURES: Sanger Electric System Water Department Sewer Department Debt Service Other Departmental Transfer to General Fund 1990 $ 1,758,754 $ 1,761,675 322,211 259,220 232,380 177,442 150,848 145,444 852 2,450 83,360 62,076 4,490 -------------------- $ 21548,405 $ 21412,797 $ 11555,440 $ 11367,455 268,256 193,553 133,707 125,265 156,409 164,975 195,771 -------------------- $ 21309,583 $ 1,851,248 (Net) $ 256,626 $ 383,627 These Financial Statements and accompanying notes are subject to the accountants opinion. 24 CITY OF SANGER, TEXAS ENTERPRISE FUND SCHEDULE OF INCOME AND EXPENDITURES BUDGET VERSUS ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1990 Revenue: Electric System Water Sewer Sanitation Miscellaneous Interest Total Revenue Operating Expenditures: Electric System Water Department Sewer Department Debt Service Other Departmental Total Operating Expenditures Transfer to General Fund Excess Income Over Expenditures Beginning Retained Earnings Ending Retained Earnings Excess Over/ (Under) Budget Actual Budget ------------------------------------ $1,620,000 305,310 232,500 23,150 11,000 $ 1,758,754 322,211 232,380 150,848 852 83,360 $ 138,754 16,901 (120) 150,848 (22,298) 72,360 ------------------------------------ $2,191,960 $ 2,548,405 $ 356,445 $1,432,177 $ 1,555,440 $ 123,263 129,435 268,256 138,821 78,977 133,707 54,730 150,931 156,409 51478 181,278 195,771 14,493 ----------------------------------- $11972,798 $ 21309,583 $ 336,785 ----------------------------------- $ 241,626 256,626 $ 15,000 ---------------------------------- $ (22,464)$ (17,804)$ 41660 2,245,909 $ 2,, 228105 These Financial Statements are subject to the accountants opinion. 25 CITY OF SANGER, TEXAS STATEMENT OF GENERAL FUNDED DEBT SEPTEMBER 30, 1990 Amounts to be provided for Retirement of Debt TOTAL ASSETS ASSETS 1990 $ 564,519 $ 663,106 ------------------------ $ 564,519 $ 663,106 LIABILITIES AND FUND BALANCE ---------------------------- Certificates of Obligation Note Payable TOTAL FUND BALANCE 5851000 44,519 78,106 ------------------------ $ 564,519 $ 663,106 These financial statements and accompanying notes are subject to the accountants opinion. 26 CITY OF SANGER, TEXAS STATEMENT OF CHANGES IN GENERAL FIXED ASSETS -BY SOURCE FOR THE YEAR ENDED SEPTEMBER 30, 1990 Improvements Machinery other than and Total Land Building Building Equipment ----- ---- -------- ---------------------- General Fixed Assets Beginning of Year $1,026,348 $58,683 $125,945 $ 474,555 $367,165 Capital Expenditures 30,622 17,092 13,530 -------------------------------------------------- General Fixed Assets End of Year $1,056,970 $58,683 $125,945 $ 491,647 $380,695 These financial statements and accompanying notes are subject to the accountant's opinion. 27 CITY OF SANGER, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30, 1990 --------Description -------------- General Obligation Bonds: Series 1986 Utilities Revenue Bond: Series 1973 Series 1976 Series 1977 Series 1982 Series 1985 Total Utility Revenue Bonds Totals Final Issues Maturity Interest Rates Dates Date Date --------- ------------- -------------- 9.385� 05/15, 11/15 1986 1996 05/15, 11/15 1973 1993 5 1/2%-7 1/ 0 05/15, 11/15 1976 1995 4.9*-6% 05/15, 11/15 1977 1996 12.71% 05/15, 11/15 1982 1997 9.3835% 05/15, 11/15 1985 2001 These financial statements and accompanying notes are subject to the accountants opinion. m Bonds Authorized Issued Retired $ 700,000 $ 700,000 $ 180,000 $ Outstanding 520,000 295,000 295,000 220,000 75,000 305,000 305,000 120,000 185,000 360,000 360,000 175,000 185,000 450,000 450,000 145,000 3051000 845,000 845,000 35,000 810,000 --------------------------------------------------- $2,255,000 $ 21255,000 $ 695,000 $ 11560,000 --------------------------------------------------- $2,955,000 $ 21955,000 $ 875,000 $ 21080,000 --------------------------------------------------- --------------------------------------------------- 29 CITY OF SANGER, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS FOR THE YEAR ENDED SEPTEMBER 30, 1990 Tax Assessed Tax Current Total Year Value Levy Collections Percent Collections Percent ------------------------ 1974-1979 $ 41,043,433 $ 255,144 $ 171 $ 00.07% $ 244,286 95*74 1980 91597,514 65,951 15 00.02% 64,064 97.14 1981 21,378,529 106,870 21 00.02% 107,174 100.,28 1982 40,919,840 184,139 206 00.11% 178,214 96.78 1983 43,072,978 202,443 187 00.09% 205,566 101.54 1984 44,445,069 215,559 311 00.14% 210,968 97.87 1985 51,763,572 271,672 1029 00.38% 251,426 92.55 1986 62,066,231 295,496 1250 00.42% 298,927 101.16 1987 74,735,416 308,107 2401 00.78% 282,729 91.76 1988 78,458,315 328,387 9597 02.92% 320,083 97.47 1989 81,801,369 361,971 324,642 89.6996 324,642 89.69 TAX RATE: 1971-1977 1978-1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 $ .60 .70 .50 .45 .47 .485 .524 .4740 .4163 .4181 .4425 These financial statements and the accountants opinion. accompanying notes are subject to CITY OF SANGER, TEXAS PRINCIPAL AND INTEREST REQUIREMENTS SEPTEMBER 30, 1990 UTILITY REVENUE BONDS Year Ended September 30 Principal Interest Total 1991 105,000 140,737 245,737 1992 115,000 132,066 247,066 1993 120,000 122,387 242,387 1994 130,000 112,788 242,788 1995 145,000 101,938 246,938 1996 160,000 89,180 249,180 1997 170,000 75,210 245,210 1998 190,000 56,510 246,510 1999 210,000 39,220 249,220 2000 210,000 19,900 229,900 2001 51000 475 51475 $ 11560,000 $ 890,411 $ 21450,411 GENERAL OBLIGATION BONDS 1991 70,000 41,300 111,300 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 -------------------------------------- $ 520,000 $ 151,400 $ 671,400 These financial statements and accompanying notes are subject to the accountants opinion. 31 CITY OF SANGER, TEXAS UTILITY RATES SEPTEMBER 30, 1990 Water Rates: First 2,000 gallons (minimum) $ 9.00 Per 11000 gallons thereafter 1.20 Sanitation Rates: Residential - Flat Rate $ 6.50 Commercial - Flat Rate 9.00 Sewer Rates: Residential First 11000 gallons $ 8.00 Per 1,000 gallons thereafter 0.60 Commercial First 11000 gallons $ 14.00 Per 11000 gallons thereafter 0.60 Number of Connections (September 30, 1990): Water 1,457 Sewer 1,404 Electric 11741 Water Usage 121,401,200 gallons These financial statements and accompanying notes are subject to the accountant's opinion.