Draft Audit Book

if purchased or constructed. Donated assets are recorded at the estimated fair value on the date of donation.

Major outlays for capital assets and improvements are capitalized as the projects are constructed. The cost of
normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are
not capitalized. Major improvements are capitalized and depreciated over the remaining useful lives of the
related capital assets.

Depreciation is based on the estimated useful lives and has been calculated by use of the straight-line method
applied to cost. Equipment under capital lease obligations is amortized on the straight-line method over the
shorter period of the lease term or the estimated useful life of the equipment. Such amortization is included in
depreciation and amortization in the proprietary FFS. Interest cost incurred on borrowed funds during the period
of construction of capital assets is capitalized as a component of the cost of acquiring those assets. The City
uses the following schedule to determine the useful lives of capital assets:

Infrastructure/Improvements 10-50 Years
Buildings 15-50 Years
Equipment 3-15 Years

Inventories - The City reports inventories of supplies at cost including consumable utility maintenance and
office items. Supplies are recorded as expenditures when they are consumed, except for certain utility and other
supplies.

Long Term Debt - In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of Net Position. Bond
premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed
when incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.

Pensions - For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of
the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net
Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan
contributions are recognized in the period that compensation is reported for the employee, which is when
contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.

Fund Balances - In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance represent tentative management plans that are subject to change.

Sales Tax Revenue - The tax is collected by the vendor from consumers and is required to be submitted to the
State of Texas by the 20th of the month following collection. The State then remits the allocated amount of sales
tax to the City by the 10th of the month following vendor submission. These amounts are included in the gross
receipts tax revenue and are recorded as revenue when the underlying exchange has taken place, regardless if

the City has actually received the funds. The City collects and remits the appropriate portion designated for the

Borger Economic Development Corporation.

See accompanying notes to the financial statements.

49

Accrued Vacations - It is the City’s policy to permit full-time employees to accumulate earned but unused
vacation and sick pay benefits. Employees are generally allowed up to 25 days of vacation depending on the
length of service and can carry over up to 40 hours from year to year and is payable to the employee upon
resignation or termination. Sick leave accumulates at the rate of 12 days a year and is not payable at resignation
or termination. All sick pay and vacation pay are accrued when incurred in the government-wide or proprietary
fund financial statements.

Deferred outflows/inflows of resources - In addition to assets, the statement of net position will sometimes
report a separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The City has deferred outflows for
pensions related to contributions and investment experience.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The City’s deferred inflows include actuarial differences in expected and actual
experience. The City also has a deferred charge on a bond refunding, which is the difference in the carrying
value of refunded debt and its reacquisition price. This amount is deferred or amortized over the shorter of the
life of the refunded and new debt.

Equity Classifications

Government-Wide Financial Statements:
Equity is classified as net position and displayed in three components:

a. Net investment in capital assets – Consists of capital assets including restricted balances, net of
accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes,
or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets.

b. Restricted – Consists of net position with constraints placed on the use either by (1) external groups
such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law
through constitutional provisions or enabling legislation.

c. Unrestricted – All other net position that does not meet the definition of “restricted” or “net
investment in capital assets.”

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted
resources first, and then unrestricted resources as they are needed. Furthermore, committed fund balances are
reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for
purposes for which amounts in any of those unrestricted fund classifications can be used.

Fund Financial Statements:
Governmental fund equity is classified as fund balance. Fund balance is further classified as restricted or
unrestricted. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by
enabling legislation or constitutional provisions. Unassigned fund balance in the General Fund is the net
resources in excess of what can be properly classified in one on the above four categories. Negative unassigned
fund balance in governmental funds represents excess expenditures incurred over the amounts restricted,
committed, or assigned to those purposes.

Risk Management - The City is exposed to various risks of losses related to torts: theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees and natural disasters. For many years, the
City has been self-insured through the Texas Municipal League Intergovernmental Risk Pool to mitigate the
effects of any losses. There were no significant reductions in coverage from coverage in the prior year. Any

See accompanying notes to the financial statements.

50

settlement amounts have not exceeded coverage for the current year or the past three fiscal years.

Commitments and Contingencies - The City participates in some State and/or Federally assisted programs. In
connection with grants under these programs, the City is required to comply with specific terms and agreements,
as well as applicable Federal and State laws and regulations. Such compliance is subject to review and audit by
the grantors and their representatives. In the opinion of management, the City has complied with all requirements.
However, since such programs are subject to future audit or review, the possibility of disallowed expenditures
exists. In the event of such disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.

NOTE B - CASH DEPOSITS AND INVESTMENTS

Cash Deposits
The City’s investment policies are governed by State statutes and City ordinances. The Public Funds Investment
Act (PFIA), Chapter 2256 requires the City to adopt, implement and publicize an investment policy which covers
specific provisions in PFIA regarding investment practices, management reporting and policy establishment.
The investment policy in effect is available for public inspection at the City Hall. The PFIA establishes
authorized investment vehicles for the City. The City is in substantial compliance with the PFIA at the end of
the 2018 fiscal year.

Interest Rate Risk - The City and BEDC minimizes interest rate risk by limiting investments to having a
maturity date of one year or less.

Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank failure, the government’s
deposits may not be returned to it. The City manages its custodial credit risk by depositing its funds with
institutions participating in the Federal Deposit Insurance Corporation (FDIC) insurance programs and is able
to collateralize the deposits in accordance to State statutes or depositing into investment pools overseen by the
Texas State Comptroller of Public Accounts, such as TexPool.

In accordance with FDIC, public unit deposits are funds owned by the City. Time deposits, savings deposits and
other interest-bearing accounts of a public unit in an institution will be insured up to $250,000 in aggregate and
separate from the $250,000 coverage for public unit demand deposits at the same institution.

Statutes require collateral pledged for deposits in excess of the federal deposit insurance to be delivered, or a
joint safekeeping receipt be issued, to the City for at least the amount on deposit with the institution. The types
of collateral an institution is permitted to use as pledged securities are limited to direct obligations of the United
States Government and all bonds issued by any agency or political subdivision of the State of Texas.

As of September 30, 2018, the City’s funds on deposit were adequately covered by either FDIC insurance or
collateralized securities held by the financial institutions pledged to cover the City’s deposits. The City had no
bank deposits subject to custodial credit risk during the 2018 fiscal year.

Borger Economic Development Corporation - The BEDC maintains its funds in a separate financial institution
and TexPool accounts. Although the organization is a component unit of the City, its FDIC and collateralization
of its deposits are covered separately because the Corporation is a separate non-profit entity. BEDC also does
not participate in the City’s internal pooling of cash and investments as disclosed below.

See accompanying notes to the financial statements.

51

At September 30, 2018, the City and BEDC had insured bank balances as follows:

Carrying Amounts City of Borger Borger Economic
Demand Accounts Amarillo National Development
Time Deposits Corporation
Bank
Net Reconciling Items $ 624,752
Total Public Funds on Deposit $ 1,422,770 661,494
- (306,002)
980,244
(741,259)
681,511

Less FDIC Coverage (250,000) (250,000)
Amount to be Collateralized 431,511 730,244

Collateralized by Institution (3,052,780) (730,244)
Under (Over) Collateralized -
$ (2,621,269) $

The City utilizes a pooled cash method of disbursements, whereby one bank account is used by both types of
activities to pay expenditures, and the bank account is reimbursed by each fund for the proportionate amount
spent by each fund. Below are the amounts allocated to the specific activity:

Total carrying value of the cash and cash equivalents by activities as of September 30, 2018:

Pooled Cash Governmental Bus ines s -type City of Borger Borger Economic
Bank Deposits Activities Activities Total Development
Total Demand Accounts Corporation
$ 585,046 $ 96,465 $ 681,511
- - - $-
980,244
585,046 96,465 681,511
980,244

Cash on Hand $ 465 $ 800 $ 1,265 $ 129
Total Cash and Cash Equivalents 585,511 97,265 682,776 980,373

Statement of Net Asset Reconciliation

Restricted Cash $ 328,784 $ 20,451
Unrestricted Cash 76,814
Total Cash 256,727 97,265

$ 585,511 $

Investments

The City and BEDC maintain accounts with TexPool which a public funds investment pool is established under
the authority of the Interlocal Cooperation Act (the Act) foundation and subject to the provisions of the Act. In
addition to other provisions of the Act designed to promote liquidity and safety of principal, the Act requires the
pools to: 1) Have an advisory board composed of participants in the pool and other persons who do not have a
business relationship with the pool and are qualified to advise the pool; 2) Maintain a continuous rating of no
lower than AAA or AAA-m or an equivalent rating by Standard and Poor’s or other nationally recognized rating

See accompanying notes to the financial statements.

52

services; and 3) Maintain the market value of its underlying investment portfolio within one half of one percent
of the value of its shares. The Weighted Average Maturity (WAM) of TexPool is 27 days. Participation in the

pools is allowed under the guidelines of the Act, is voluntary, and may be terminated and the funds withdrawn
at the discretion of the City Council and/or the BEDC board of directors.

The City utilizes a pooled cash method for its investments, whereby one investment custodian is used by both
types of activities and each fund is credited for the proportionate amount of investment income received by the
investments. Below are the amounts allocated to the specific activity:

Certificates of Deposit Governmental Bus ines s -type City of Borger Borger Economic
Amarillo Area Foundation Activities Activites Total Development
TexPool Investments Corporation
Total Investments $- $- $-
98,507 - 98,507 $ 700,000
-
6,516,609 5,020,866 11,537,475 -
$ 6,615,116 $ 5,020,866 $ 11,635,982
$ 700,000

Other Investments - The City is a participant in the Amarillo Area Foundation (AAF), which is an area
foundation serving the Texas Panhandle by providing grants and other services funded by donations and
investment earnings. Agencies invest funds with AAF and related earnings are distributed yearly. The City has
invested $98,507 with AAF as of September 30, 2018 and is considered restricted for financial statement
purposes.

Disclosures about Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Fair value measurements must maximize the use of
observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs
that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets or liabilities
Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or
liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 - Unobservable inputs supported by little or no market activity and are significant to the fair
value of the assets or liabilities

The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level
of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant
observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets and liabilities measured at fair value.
There have been no changes in the methodologies used at September 30, 2018.

Assets Held by Amarillo Area Foundation: Valued at fair value as reported by the trustee, which
represents the City’s pro rata interest in the assets of the foundation.

See accompanying notes to the financial statements.

53

Investment measured at fair value - Level 3 $ 98,507
98,507
Amarillo Area Foundation
Total investments measured at fair value 11,537,475
11,537,475
Investments measured at amortized cost $ 11,635,982

TexPool
Investments measured at amortized cost

Total Investments

Assets Measured at Fair Value on a Nonrecurring Basis

There were no fair values of assets and liabilities measured on a nonrecurring basis at September
30, 2018.

Changes in level 3 investments for the year ended September 30, 2018:

Balance at October 1, 2017 $ 1,626,916
Investment income 13,398
Dis trib utio ns
Management Fees (1,535,000)
Balance at September 30, 2018 (6,807)

$ 98,507

The City's policy is to recognize transfers between levels as of the actual date of the event or change in
circumstances. There were no transfers between levels during the year ended September 30, 2018.

NOTE C - RECEIVABLES

Accounts Receivable - Net - Accounts receivable shown in the Governmental Activities and Business-type
Activities at year-end represents net balances due from customers of solid waste and utility services provided by
the City. The City uses the reserve method to account for the allowance for bad debts and has reserved the
following amounts of accounts receivable as of September 30, 2018:

Refuse Collection Receivable Governmental Bus ines s -type Total
Utilities Receivable Activities Activities $ 290,189
Allowance for Uncollectibles
$ 290,189 $- 1,113,380
- 1,113,380 (100,767)
(71,154) $ 1,302,802
(29,613)
$ 260,576 $ 1,042,226

Property Taxes Receivable - Taxes receivable for the General and Other Governmental Funds as of
September 30, 2018 are considered delinquent property taxes. State statutes prohibit governments to write off
delinquent property taxes without prior legislative authorization. Property taxes of $523,469 are outstanding
and have been fully offset by an allowance.

Other Receivables - Accounts receivable shown in the Governmental Activities as Other Receivables at year-
end represents various receivables to the City in addition to providing services to its residents.

See accompanying notes to the financial statements.

54

NOTE D - INTERFUND TRANSFERS AND BALANCES
Inter-fund transfers are made for various purposes throughout the year.

The amounts due to/from funds are reported in the respective funds in the Fund Financial Statements but are
eliminated in the Government-wide Statement of Net Asses because all the funds are considered Governmental
Activities.

Because the City pools its TexPool investments into one fund, the Fund Financial Statements reports the
investments designated and allocated to the other funds as Due to Other Funds and Due from Other Funds,
respectively. For reporting in the Government-wide Statement of Net Position, these Due to and Due from
Other Funds are eliminated, and the investments reported in aggregate according the type of funds. A more
detailed disclosure of investments may be found in Note B above.

Transfers made by the City during the fiscal year ended September 30, 2018 are listed below:

Transfer To Transfer From Amount Purpose

General Fund Water and Sewer Fund $ 450,000 Reimbursment of expenses
Capital Equipment Fund General Fund 756,815 Capital expenditures
Capital Equipment Fund Various Funds Capital expenditures
Capital Equipment Fund Water and Sewer Fund 1,023,479 Capital expenditures
City Tourism Fund Hotel/Motel Fund 393,359 Designinated funds transfer
907,849
Total Transfers
$ 3,531,502

NOTE E - CAPITAL ASSETS
Capital asset activity for the City for the fiscal year ended September 30, 2018 is detailed below:

Governmental Activities: Balance Additions Deletions and Ending
Assets not Depreciated: 9/30/2017 Dis pos als Balance
Land $- 9/30/2018
Depreciable Assets: $ 1,192,723 $-
Buildings and Improvements 177,214 $ 1,192,723
Furniture and Equipment 13,924,418 1,007,523 -
In fras tru cture 13,251,568 (155,088) 14,101,632
Construction in Progress 6,953,341 49,067 14,104,003
Total Depreciable Assets 331,111 - 7,002,408
9,078 1,564,915 -
Accumulated Depreciation: 34,138,405 (155,088) 340,189
Buildings, Furniture, and Equipment (1,250,730) 35,548,232
In fras tru cture (11,910,714) (119,759) -
(4,020,297) 155,088 (13,161,444)
Total Accumulated Depreciation (15,931,011) (1,370,489) 155,088 (3,984,968)
(17,146,412)
Net Depreciable Assets 18,207,394 194,426 -
Net Governmental Activities 18,401,820
Capital Assets $ 19,400,117 $ 194,426 $-
$ 19,594,543

See accompanying notes to the financial statements.

55

The City reported $1,370,489 of depreciation in general fixed assets in use by governmental funds on the
Government-Wide Statement of Activities. The City did not allocate the depreciation to the various
governmental functions, instead presenting the amount separately from the departmental functions on the
statement.

Business-type Activities: Balance Additions Deletions and Ending
Assets not Depreciated: 9/30/2017 Dis pos als Balance
Land $- 9/30/2018
Depreciable Assets: $ 1,496,247 $-
Buildings and Improvements 17,451 $ 1,496,247
Furniture and Equipment 373,842 123,136 (7,180)
Infras truct ure 1,945,651 1,444,541 (86,407) 384,113
Construction in Progress 87,950,209 2,118,247 1,982,380
Total Depreciable Assets 3,703,375 - 89,394,750
618,657 (469,634) 2,267,270
Accumulated Depreciation: 90,888,359 (55,376) (563,221) 94,028,513
Buildings, Furniture, and Equipment (1,713,978)
Infras truct ure (1,605,655) (1,769,354) - (1,661,031)
(27,334,177) 93,587 (28,954,568)
Total Accumulated Depreciation (28,939,832) 1,934,021 93,587 (30,615,599)

Net Depreciable Assets 61,948,527 $ 1,934,021 (469,634) 63,412,914
Net Business-type Activities
Capital Assets $ 63,444,774 $ (469,634) $ 64,909,161

Capital asset activity for Borger Economic Development Corporation is disclosed below:

Balance Additions Deletions and Ending
9/30/2017 Disposals Balance
9/30/2018

Component Unit: $ 274,656 $ 1,071 $ (40,820) $ 234,907
Assets not Depreciated: 1,511,050 68,854 433,556 1,146,348
Land 1,785,706 69,925 (474,376) 1,381,255
Construction in Progress
819,961 675 (498,005) 322,631
Depreciable Assets: 29,453 5,303 - 34,756
Buildings and Improvements
Furniture and Equipment 849,414 5,978 (498,005) 357,387

Total Depreciable Assets (213,917) (26,537) 124,346 (116,108)
(26,529) (1,549) - (28,078)
Accumulated Depreciation: (240,446) (28,086) (144,186)
Buildings and Improvements 124,346
Furniture and Equipment 608,968 (22,108) 213,201
(373,659)
Total Accumulated Depreciation

Net Depreciable Assets

Net Componet Unit Capital Assets $ 2,394,674 $ 47,817 $ (848,035) $ 1,594,456

See accompanying notes to the financial statements.

56

NOTE F - LONG-TERM DEBT

In recent years, the City has shifted the debt service of both Governmental Activities and Business-type Activities
to the Interest and Sinking Fund. This fund collects and remits debt service payments from the General Fund,
other Non-major governmental funds and the Water and Sewer Fund and remits the debt service payments to the
proper lenders or agencies. The following detail the outstanding bonds, notes and capital lease obligations for
the City as of September 30, 2018:

Governmental Activities:

2013 Certificates of Obligation - The City issued Certificates of Obligation in 2013 to fund public works
projects for street improvements, parks and recreation improvements, improving and equipping various facilities,
drainage improvements and constructing and improving municipal parking facilities. The Certificates of
Obligations were issued in February 2013, with the first principal payment made February 1, 2014. Principal
payments ranging from $110,000 to $190,000 are due annually with interest paid on a semi-annual basis. The
debt service is being funded by funds from ad valorem tax revenue out of the interest and sinking fund.

2016 Certificates of Obligation - The City issued Certificates of Obligation in 2016 to fund public works
projects for street improvements, parks and recreation improvements, improving and equipping various facilities,
drainage improvements and constructing and improving public safety facilities. The Certificates of Obligations
were issued in June 2016, with the first principal payment scheduled on August 1, 2017. Principal payments
ranging from $110,000 to $355,000 are due annually with interest paid on a semi-annual basis. The debt service
is being funded by funds from ad valorem tax revenue out of the interest and sinking fund.

General Obligation Refunding Bonds, Series 2016 - In the fiscal year ended September 30, 2016 the City
issued General Obligation Refunding Bonds, Series 2016 for the advance refunding of the remaining portion of
the Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2006.
Principal payments ranging from $482,900 to $513,250 are due annually through 2022 with interest paid on a
semi-annual basis.

Happy State Bank - The City entered into a Note Payable with Happy State Bank in May 2009 to fund the
purchase of a fire engine. Annual principal and interest payments of $56,531 are to be made. Funds from the
City’s general revenue are used for the debt service of this note payable.

The debt service activity for the Government-type Activities of the City for the fiscal year ended September 30,
2018 is disclosed below:

Balance Additions Payments Balance
9/30/2017 9/30/2018

2013 Certificates of Obligation $ 2,445,000 $ - $ (125,000) $ 2,320,000
2016 Certificates of Obligation
2016 General Obligation Refunding 3,290,000 - (110,000) 3,180,000
Happy State Bank
2,285,000 - (440,000) 1,845,000
Balance of unamortized premium
106,452 - (52,111) 54,241

8,126,452 (727,111) 7,399,241

298,624 - (9,984) 288,640

$ 8,425,076 $ - $ (737,195) $ 7,687,881

The following schedule details the interest rate and current portion of the liabilities of the Governmental
Activities as of September 30, 2018:

See accompanying notes to the financial statements.

57

Interest Rate Original Maturity Principal Due
Amount Within One

Year

2013 Certificates of Obligation 2% to 3.25% $ 2,910,000 Feb, 2023 $ 125,000
2016 Certificates of Obligation 2% to 4% 3,645,000 Aug, 2036 115,000
2016 General Obligation Refunding 2% 2,730,000 Aug, 2022 450,000
Happy State Bank 4% May, 2019 54,241
$ 457,200
$ 744,241

The following schedule details the future maturities of the liabilities of the Governmental Activities as of
September 30, 2018:

Year Ended September 30, Principal Interes t Total Debt
2019 Service
2020 744,241 211,291
2021 705,000 194,600 955,532
2022 720,000 179,850 899,600
2023 735,000 164,377 899,850
310,000 149,300 899,377
2024-2028 1,635,000 621,338 459,300
2029-2033 1,870,000 330,150 2,256,338
2034-2038 680,000 55,000 2,200,150
$ 7,399,241 $ 1,905,906 735,000
$ 9,305,147

Business-type Activities:

Canadian River Municipal Water Authority Bond Obligations - The City is a member of the Canadian River
Municipal Water Authority (CRMWA), which is a governmental entity created by the Texas legislature with the
purpose of providing a municipal and industrial water source for the eleven (11) member cities of the Authority.
Being a member, the City is obligated to proportionately share in the financing of the construction and
maintenance of the dam and aqueduct, as well as the purchase of additional water rights and the development of
the Roberts County well fields.

The CRMWA related liabilities disclosed below are the obligations of the City as prorated and passed through
by CRMWA. The bonds are payable and secured by an irrevocable first lien and pledge of the City’s water and
sewer revenues in accordance with the City’s agreements with CRMWA.

The following disclosures are not intended to represent the full amount of notes and bond liabilities of CRMWA.
CRMWA issues a publicly available comprehensive annual financial report that includes financial statements
and required supplementary information for the Authority; the report also provides detailed explanations of the
contributions, liabilities and other information and assumptions concerning the member cities and the Authority.
The financial report may be obtained by writing to CRMWA, PO Box 9, Sanford, TX 79078 or on the Internet
at http://www.crmwa.com.

The descriptions of CRMWA’s bond obligations are detailed below, as well as the City’s proportionate share
and debt service activity. Respective principal payments are made annually in February and interest payments
are made semiannually in February and August of the fiscal year. Funding for these obligations comes from the

See accompanying notes to the financial statements.

58

operations of the Water and Sewer Fund.

USBR Series 1999 Refunding Series 2010 - In the fiscal year ended September 30, 2000, the Authority issued
the 1999 Series Contract Revenue Refunding bonds for refinancing the U.S. Bureau of Reclamation’s
Prepayment Project. The bond proceeds were used to retire the Bureau of Reclamation debt for the construction
of Sanford Dam, Lake Meredith and the original aqueduct system. In the fiscal year ended September 30, 2010,
the Authority issued Contract Revenue Refunding Bonds, Series 2010 for refunding of the Series 1999 Bureau
of Reclamation Prepayment Project.
As a result of the 1999 series USBR refinancing, the City realized a profit of $2,164,133 from the debt
restructuring and recorded the amount as deferred inflows of resources. During the fiscal year ending September
30, 2018, the City recognized approximately $139,410 of the gain as a reduction of interest expense with a
remaining amount of $334,348 to be amortized over the life of the original 1999 series prior to the refunding.

Conjunctive Use Groundwater Series 2009 - In the fiscal year ended September 30, 2005, the Authority issued
Contract Revenue Bonds, Series 2009 to finance the continuation and expansion of the Conjunctive Use
Groundwater Supply Project

Contract Revenue Refunding Bonds Series 2010 - In the fiscal year ended September 30, 2000, the Authority
issued Contract Revenue Bonds, Series 1999 for financing the construction of the Conjunctive Use Groundwater
Supply Project and for the advance refunding of the Contract Revenue Bonds, Series 1996. In the year ended
September 30, 2010 the Authority issued Contract Revenue Refunding Bonds, Series 2010 for the advance
refunding of the remaining portion of the Series 1999 bonds that the Series 2005 refunding did not cover.

Conjunctive Use Groundwater Series 2011 - In the fiscal year ended September 30, 2012, the Authority issued
Contract Revenue Bonds, Series 2011 to finance the continuation and expansion of the Conjunctive Use
Groundwater Supply Project

Contract Revenue Refunding Bonds Series 2014 - In the fiscal year ended September 30, 2015 the Authority
issued Contract Revenue Refunding Bonds, Series 2014 for the advance refunding of the remaining portion of
the Series 2005 bonds and most of the Series 2006.

Revenue Refunding Bonds Series 2012 - In the fiscal year ended September 30, 2013 the Authority issued
Revenue Refunding Bonds, Series 2012 to refinance the Conjunctive Use Groundwater Series 2005 debt.

General Obligation Bonds Series 2013 - The City issued General Obligation Bonds in 2013 to fund additions
to the Water & Sewer Fund.

Certificates of Obligation Series 2014 - The City issued Certificates of Obligation in 2014 to fund major
improvements to the Water & Sewer Fund infrastructure.

Contract Revenue Refunding Bonds Series 2017 - In the fiscal year ended September 30, 2018 the Authority
issued Contract Revenue Refunding Bonds, Series 2017 for the advance refunding a portion of the Series 2009
bonds.

Total interest expense for 2018 was $1,699,995.

See accompanying notes to the financial statements.

59

The debt service activity for the Business-type Activities of the City for the fiscal year ended September 30,
2018 is disclosed below:

Balance Additions Payments Balance
9/30/2017 9/30/2018

General Obligation Refunding Bonds, $ 4,420,000 $- $ (200,000) $ 4,220,000
Series 2013 30,350,000 - (905,000) 29,445,000
Certificates of Obligation, Series 2014
CRMWA Related Obligations: 174,461 - (174,461) -
USBR Series 1999 Refunding Series
2010 147,410 - (40,743) 106,667
Contract Revenue Refunding 820,003 - (806,547) 13,456
Conjunctive Use Groundwater Series 3,592,663 (200,629) 3,392,034
2010 636,193
Conjuctive Use Groundwater Series - - (9,156) 627,037
2009 2,275,424 -
Conjuctive Use Groundwater Series 1,998,487 - (69,499) 2,205,925
2011 43,778,448 -
Contract Revenue Refunding (350,786) 1,647,701
Conjunctive Use Groundwater Series 254,953 $- (2,756,821) 41,657,820
2017 $ 44,033,401
(9,688) 318,350
Refunding Revenue Bonds Series 2012 $ (2,766,509) $ 41,976,170

Refunding Revenue Bonds Series 2014

Balance of unamortized premium

The following schedule details the interest rate and current portion of the liabilities of the Business-type
Activities as of September 30, 2018:

Interest Rate Original Maturity Due Within
Amount One Year

General Obligation Refunding Bonds, 5.5% to 6% $ 5,245,000 Aug, 2033 $ 205,000
Series 2013 2.0% to 4.723% 32,955,000 Aug, 2039 925,000
Certificates of Obligation, Series 2014
CRMWA Related Obligations: 3% 496,016 Feb, 2020 75,642
Contract Revenue Refunding 3% 1,171,146 Feb, 2020 13,456
Conjunctive Use Groundwater Series 5.55% 2,781,080 Feb, 2029 36,438
2010 3.0% to 3.6% 2,515,661 Feb, 2025 72,586
Conjuctive Use Groundwater Series 2.0% to 5.0% $ 2,801,041 Feb, 2027 368,445
2009 5.00% 4,581,076 Feb, 2031 209,328
$ 1,905,895
Refunding Revenue Bonds Series 2017

Refunding Revenue Bonds Series 2012

Refunding Revenue Bonds Series 2014
Conjuctive Use Groundwater Series
2011

See accompanying notes to the financial statements.

60

The following schedule details the future maturities of the liabilities of the Business-type Activities as of
September 30, 2018:

Principal Interes t Total Debt
Service

Year Ended September 30,

2019 1,905,895 1,878,602 3,784,497

2020 1,963,032 1,811,415 3,774,447

2021 2,021,861 1,738,464 3,760,325

2022 2,112,408 1,651,112 3,763,520

2023 2,205,525 1,558,955 3,764,480

2024-2028 10,323,957 6,346,352 16,670,309

2029-2033 9,885,142 4,063,422 13,948,564

2034-2038 9,145,000 1,826,957 10,971,957

2039-2043 2,095,000 98,947 2,193,947

$ 41,657,820 $ 20,974,226 $ 62,632,046

NOTE G - COMMITMENTS

Construction Commitments

The City has the following construction commitments as of September 30, 2018. These projects are evidenced
by contractual arrangements with construction contractors.

Commitments of Governmental-type Activities include an evaluation study of the Transfer Station Floor in the
amount of $12,000.

Commitments of the Water and Sewer Fund include a contract for the construction, engineering and
installation of Water Well # 14 in the Stinnett Wellfield. The original contract amount was $856,275 with a
remaining balance as of September 30, 2017 of $237,618.

Operating Lease Commitments

The City leases equipment under operating leases expiring on various dates. Total operating leases rental
expense for 2018 fiscal year was $36,605.

The following is a schedule by year of future minimum lease payments under operating leases as of September
30, 2018 that have initial or remaining terms in excess of one year:

Year Ended September 30, Amount
2019
2020 $ 14,756
2021 8,325
2022 2,724
-

$ 25,805

See accompanying notes to the financial statements.

61

NOTE H - TRANSFER STATION COMPLIANCE STATEMENT

The City meets the Local Government Financial Test and Government Guarantee as specified in the Texas
Administrative Code (TAC), Chapter 37. The City is the owner of Transfer Station, MSW #40015, for which
financial assurance for closure and post-closure care is achieved through the financial tests specified in Paragraph
37.271 of the TAC.

NOTE I - PENSION PLAN AND OTHER POSTEMPLOYMENT BENEFITS

Pension Trust Fund:

Plan Description
The City of Borger, Texas participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined
benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees
in the State of Texas. The TMRS Act places the general administration and management of the TRMS with a
six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the
Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-
qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available
comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.

All eligible employees of the City are required to participate in TMRS.

Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body
of the City, within the options available in the state statutes governing TMRS.

At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the City-
financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their
retirement benefit in one of seven payments options. Members may also choose to receive a portion of their
benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot
exceed 75% of the member’s deposits and interest.

The plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing TMRS. Plan provisions for the City were as follows:

Plan Year Plan Year
2018 2017

Employee Deposit Rate 7% 7%
Matching Ratio (City to Employee) 2 to 1 2 to 1
Years Required for Vesting
Service Retirement Eligibility 10 10
(Expressed as Age/Years of Service)
60/10, 0/20 60/10, 0/20

See accompanying notes to the financial statements.

62

Employees covered by benefit terms

At the December 31, 2016 valuation and measurement date, the following employees were covered by the

benefit terms:

2017 2016

Inactive employees or beneficiaries currently receiving benefits 86 82

Inactive employees entitled to but not yet receiving benefits 60 61
Active employees 168 165
314 308

Contributions

The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the City.
Under the State law governing TMRS, the contribution rate for each City is determined annually by the actuary,
using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated
amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount
to finance any unfunded accrued liability.

Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The
contribution rates for the City of Borger, Texas were 17.50% and 16.12% in calendar years 2014 and 2015,
respectively. The City’s contributions to TMRS for the year ended September 30, 2018, were $1,299,672, and
exceeded the required contributions.

Net Pension Liability

The City’s Net Pension Liability (NPL) was measured as of December 31, 2016, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.

Actuarial assumptions:
The Total Pension Liability in the December 31, 2016 actuarial valuation was determined using the following
actuarial assumptions:

Inflation 2.50%

Salary increases 3.5% to 10.5%

Long-term assumed investment rate of return 6.75%

Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates
multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis
by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000
Disabled Retiree Mortality Table is used, with slight adjustments.

Actuarial assumptions used in the December 31, 2016, valuation were based on the results of actuarial experience
studies. The experience study in TMRS was for the period January 1, 2006 through December 31, 2009, first
used in the December 31, 2010 valuation. Healthy post-retirement mortality rates and annuity purchase rates
were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated
December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change

See accompanying notes to the financial statements.

63

to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional
changes were made for the 2016 valuation.

The long-term expected rate of return on pension plan investments is 6.75%. The pension plan’s policy in regard
to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan
assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production
of income, in order to satisfy the short-term and long-term funding needs of TMRS.

The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Target Long-term
Allocation Expected Real
Domestic Equity Rate of Return
International Equity 17.50%
Core Fixed Income 17.50% 4.55%
Non-Core Fixed Income 10.00% 6.35%
Real return 20.00% 1.00%
Real Estate 10.00% 3.90%
Absolute Return 10.00% 3.80%
Private Equity 10.00% 4.50%
Total 5.00% 3.75%
100.00% 7.50%

Discount Rate

The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rates specified
in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to
make all projected future benefit payments of current active and inactive employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the Total Pension Liability.

See accompanying notes to the financial statements.

64

Balances at 09/30/2017 Total Pension Plan Fiduciary Net Pension
Changes of the year: Liability Net Position (A s s et)
(a) Liability
Service cost (b) (a) - (b)
Interes t $ 42,904,678 $ 35,161,060
Difference between expected and actual experience $ 7,743,618
Changes in assumptions 1,376,836 -
Benefit payments, including refunds of member contributions 2,874,583 - 1,376,836
Contributions - employer - 2,874,583
Contributions - employee (89,908) -
Net investment income - (2,013,357) (89,908)
Administrative expense 1,258,054
Other (2,013,357) 589,111 -
Net Changes - 4,872,787 (1,258,054)
Balances at 09/30/2018 - (25,255)
- (1,280) (589,111)
- 4,680,060 (4,872,787)
- $ 39,841,120
25,255
2,148,154 1,280
$ 45,052,832 (2,531,906)
$ 5,211,712

Sensitivity of the net pension liability to changes in the discount rate.

The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well
as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:

City of Borger's net pension liability 1% Decrease Current 1% increase
5.75% Discount Rate 7.75%

$ 11,472,513 of 6.75% $ 79,894
$ 5,211,713

Pension Plan Fiduciary Net Position

Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued TMRS
financial report. That report may be obtained on the Internet at www.tmrs.com.

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

For the year ended September 30, 2018, the City recognized pension expense of $1,558,557.

At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:

Contributions subsequent to 12/31/2017 Deferred Deferred
Difference in projected and actual earnings Outflows Inflows
Differences between actual and expected assumptions
Differences between actual and expected recognition $ 953,290 $-
Total - (1,016,483)
- (3,930)
- (402,564)

$ 953,290 $ (1,422,977)

$929,891 reported as deferred outflows of resources related to pensions resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability for the year ending

See accompanying notes to the financial statements.

65

September 30, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:

Year Ended September 30, Amount
2019
2020 $ (212,052)
2021 (197,337)
2022 (494,593)
2023 (515,297)
(3,698)

$ (1,422,977)

Supplemental Death Benefits Fund:

Plan Description - The City participates in the Supplemental Death Benefits Fund (SDBF), which is a cost-
sharing multiple-employer defined benefit group term life insurance plan operated by TMRS. This is a separate
trust administered by the TMRS Board of Trustees. TMRS issued a publicly available Comprehensive Annual
Financial Report that included financial and supplementary information for the SDBF. The report may be
obtained from the TMRS website at www.tmrs.org or by writing to TMRS, PO Box 149153, Austin, TX 78714-
9153.

Contributions - The City contributes monthly to the SDBF at a contractually required rate as determined by an
annual actuarial valuation. Such rates were 0.21% and 0.20% in 2018 and 2017, respectively, as a percentage
of covered payrolls resulted in expenses of $16,808 and $17,134 in 2018 and 2017 respectively. The rate is
based on the mortality and service experience of all employees covered by the SDBF and the demographics
specific to the workforce of the City and is equal to the cost of providing one-year term life insurance. The
funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit
payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during the employees’
entire careers. The contributions to the SDBF are pooled for investment purposes with those of the Pension
Trust Fund. The TMRS Act requires the Pension Trust fund to allocate the investment income to the SDBF on
an annual basis. There is a one year delay between the actuarial valuation that serves as the basis for the employer
contribution rate and the calendar year when the rate goes into effect (i.e. December 31, 2015 valuation is
effective for rates beginning January, 2017).

Benefits - The City elected to provide group-term life insurance coverage for both current and retired employees.
The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s
annual salary (calculation based on the employee’s actual earnings for a 12-month period preceding the month
of death). Retired employees are insured for $7,500.

The City’s contributions to the SDBF for the current and previous fiscal years are scheduled above, which
equaled the required contributions for each fiscal year. The actuarial valuation information for the City
Supplemental Death Benefit Fund is also scheduled above.

NOTE J - DISCRETELY PRESENTED COMPONENT UNIT

Component unit information for the City’s major component unit, Borger Economic Development Corporation,
is provided in the following condensed financial statements for the fiscal year ended September 30, 2018:

See accompanying notes to the financial statements.

66

CONDENSED STATEMENT OF NET ASSETS

Current Assets $ 980,373 Current Liabilities $ 16,248
Cash and Cash Equivalents 700,000 Accrued Payables and Expenses 175,600
Investments 169,260 Grants Payable - Current 191,848
Sales Tax Receivables 206,279 Current Liabilities
Notes and Loans Receivable 450 900,700
Other Receivables 5,151 Other Liabilities 900700
Prepaids Grants Payable - Long Term
2,061,513 Long Term Liabilities
Total Current Assets

Total Liabilities 1,092,548

Non-Current Assets 782,624 Net Position 2,028,012
Notes and Loans 1,594,456 Invested in Capital Assets 1,318,033
Capital Assets, Net 2,377,080 Unrestricted 3,346,045
Capital Non-Current Assets $ 4,438,593 Total Net Position $ 4,438,593
Total Net Position and Liabilities
Total Assets

CONDENSED STATEMENT OF REVENUES
EXPENSES AND CHANGES IN NET ASSETS

Revenues $ 1,037,552
Sales Taxes 28,135
Economic Loan Interest 39,438
Other Income
1,105,125
Total Revenue

Expens es

Salaries and Employee Benefits 173,102
Projects, Grants, and Other Expenses 1,268,003
Total Expenses 1,441,105
Change in Net Assets (335,980)
Net Position at Beginning of Period 3,682,025
Net Position at End of Period $ 3,346,045

BEDC has finalized an award agreement in the amount of $1,000,000 to Agrium U.S., Inc. The award is to be
funded over a ten year period and will only be advanced after the urea plant expansion is complete. The incentive
agreement is to assist Agrium in their efforts to promote economic development in the City of Borger. As of
September 30, 2017, $100,000 has been distributed on this agreement and there is a remaining commitment of
$900,000.

BEDC also had approximately $75,000 of remaining cost for their construction in progress project.

NOTE K – NEW STANDARDS IMPLEMENTATION

In FYE September 30, 2017, the City has implemented GASB Statement No. 77, Tax Abatement Disclosures.
This statement requires governments that enter into tax abatement agreements to provide certain disclosures
regarding these commitments. This statement did not have a significant impact on the City's financial statements.

See accompanying notes to the financial statements.

67

In FYE September 30, 2017, the City has also implemented GASB Statement No. 82, Pension Issues – an
Amendment of GASB Statements No. 67, No. 68 and No. 78. This statement addresses issues regarding (1) the
presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions
and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting
practice, and (3) the classification of payments made by employers to satisfy employee (plan member)
contribution requirements.

NOTE L – SUBSEQUENT PRONOUNCEMENTS

In FYE September 30, 2018, the City will implement GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. The Statement addresses accounting and financial
reporting for Postemployment Benefits Other than pensions (OPEB) that is provided to the employees of state
and local governmental employers. This Statement establishes standards for recognizing and measuring
liabilities, deferred outflows of resources, deferred inflows of resources, and expenses/expenditures. For defined
benefit OPEB, this Statement identifies the methods and assumptions that are required to be used to project
benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present
value to periods of employee service. Note disclosures and required supplementary information requirements
about defined benefit OPEB will be enhanced.

In FYE September 30, 2018, the City will implement GASB Statement No. 85, Omnibus 2017. The primary
objective of this Statement is to improve consistency in accounting and financial reporting for in-substance
defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with
only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust
for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for
prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in
substance.

In FYE September 30, 2021, the City will implement GASB Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified
as operating leases. It establishes a single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset.

The effects of Statements No.’s 75, 85 and 87 on the City’s financial statements have not been determined.

See accompanying notes to the financial statements.

68

Required Supplemental Information

69

CITY OF BORGER, TEXAS
SCHEDULE OF PENSION CONTRIBUTIONS
September 30, 2018

Last 6 Years (10 years will ultimately be displayed) 2016 2017 2018
2013 2014 2015 $ 1,228,767 $ 1,299,672 $ 1,258,054

Actuarially Determined Contribution $ 1,194,139 $ 1,213,535 $ 1,216,913 1,228,767 1,299,672 1,258,054
$- $- $-
Employer Contributions 1,194,139 1,213,535 1,216,913 $ 8,121,395 $ 8,652,943 $ 8,415,871

Contribution deficiency (excess) $- $- $- 15.13% 15.02% 14.95%

Covered payroll $ 6,784,881 $ 7,096,696 $ 7,200,669
Contributions as a percentage of 17.60% 17.10% 16.90%
covered payroll

Notes to Schedule of Contributions: Actuarially determined contribution rates are calculated as of
December 31 and become effective in January, thirteen months later.

Methods and Assumptions Used to Entry Age Normal
Determine Contribution Rates: Level Percentage of Payroll, Closed
25 Years
Actuarial Cost Method 10 Year smoothed market, 15% soft corridor
Amortizization Method 2.50%
Remaining Amortization Period 3.5% to 10.5% including inflation
Asset Valuation Method 6.75%
Inflation Experience-based table of rates that are specific to the City's plan of
Salary Increases benefits. Last Updated for the 2015 valuation pursuant to an
Investment Rate of Return experience study of the period 2010 - 2014.
Retirement Age RP2000 Contributed Mortality Table with Blue Collar Adjustment with
male rates multiplied by 109% and female rates multiplied by 103% and
Mortality projected on a fully generational basis with scale BB.
There wer no benefit changes during the previous year.
Other Information

See report of independent auditors.

70

CITY OF BORGER, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
September 30, 2018

2015 2016 2017 2018

Total pension liability $ 1,059,002 $ 1,268,056 $ 1,347,044 $ 1,376,836
2,620,377 2,728,261 2,721,549 2,874,583
Service Cost (413,535) (824,925) 116,168 (89,908)
Interest (on the total pension liability) (10,102) - -
Difference between expected and actual experience (1,796,615)
Change in assumptions 1,469,229 (1,861,749) (1,851,623) (2,013,357)
Benefit payments, including refunds of employee 37,802,770 1,299,541 2,333,138 2,148,154
contributions $ 39,271,999 39,271,999 40,571,540 42,904,678
Net Change in Total Pension Liability $ 40,571,540 $ 42,904,678 $ 45,052,832
Total Pension Liability - Beginning
Total Pension Liability - Ending (a) $ 1,241,852 $ 1,296,579 $ 1,233,634 $ 1,258,054
502,774 570,462 571,127 589,111
Plan Fiduciary Net Position 48,665
Contributions - Employer 1,788,488 2,229,513 4,872,787
Contributions - Employee (1,861,749)
Net Investment Income (1,796,615) (29,643) (1,851,623) (2,013,357)
(18,674) (1,464) (25,191) (25,255)
Benefit payments, including refunds of employee contributions (1,535) 22,850 (1,357) (1,280)
Administrative Expense
Other 1,716,290 32,982,107 2,156,103 4,680,059
Net Change in Plan Fiduciary Net Position 31,265,817 $ 33,004,957 33,004,957 35,161,060
Plan Fiduciary Net Position - Beginning $ 32,982,107 $ 7,566,583 $ 35,161,060 $ 39,841,119
Plan Fiduciary Net Position - Ending (b) $ 6,289,892 $ 7,743,618 $ 5,211,713
City's Net Pension Liability - Ending (a) - (b)
83.98% 81.35% 81.95% 88.43%
Plan Fiduciary Net Position as a Percentage of Total Pension $ 7,182,483 $ 8,149,461 $ 8,158,955 $ 8,415,871
Liability
Covered Payroll

City's Net Pension Liability as a Percentage of Covered Payroll 87.57% 92.85% 94.91% 61.93%

NOTE: The City implemented GASB Statement No. 68 in FY 2015. Information in this table has been determined as of
the measurement date (December 31) of the net pension liability and will ultimately contain information for ten years.

See report of independent auditors.

71

This page intentionally left blank

72

Combining Fund Statements and Schedule

73

SPECIAL REVENUE FUNDS

Special Revenue funds are used to account for the proceeds of specific revenue sources (other than special
assessments, expendable trusts and major capital projects) that are legally restricted to expenditures for
specified purposes.

Tourism Fund – Accounts for the operations and expenses of attracting visitors and other events to the City.

Park and Recreation Project Fund - Accounts for the improvements and maintenance of the municipal parks
and special projects.

Police/100 Fund - Accounts for the donations supporting various police department projects.

Fire Equipment Fund – Accounts for the expenditures, grants, appropriations and other revenues designated
for the purchase of equipment for the fire department.

Emergency Operations Fund – Accounts for the expenditures, grants, appropriations and other revenues
designated for the operations of the Emergency Management department.

Municipal Court Security Fund - Accounts for state-mandated fees designated to maintain and upgrade the
court’s security system.

Fire Benevolent Fund - Accounts for the donations designated for supporting families of fireman injured or
killed in the line of duty.

Police Benevolent Fund - Accounts for the donations designated for supporting families of officers injured or
killed in the line of duty.

Municipal Court Technology Fund - Accounts for state-mandated fees designated for the court’s technology
upgrades and improvements.

Hotel/Motel Tax Fund - Accounts for the special assessment tax on motel room rentals used for the
promotion of the City.

Multi-Purpose Events Center Fund - Accounts for the expenditures, grant, appropriations and other
revenues for the operations, maintenance or improvements of future planned Multi-Purpose Events Center
Facility

Borger Community Designated Fund – Accounts for the expenditures, grants, appropriations and other
revenues for specific community maintenance or improvements as designated by the donors.

Special Crime Fund - Accounts for the expenditures, grants, appropriations and other revenues seized or
forfeited and designated for specific crime prevention or detection program of the police department.

74

OTHER GOVERNMENTAL FUNDS
Central Supply Fund – Accounts for the purchase of office, maintenance and other supplies and the
distribution to the various departments of the City.
Group Hospitalization Fund - Accounts for the premiums paid and expenses for the employees’ insurance
coverage.
Interest and Sinking Fund - Accounts for the designated tax funds and the associated principal and interest
expenditures related to the City’s current bond issuances.

75

This page intentionally left blank

76

CITY OF BORGER, TEXAS
COMBINING BALANCE SHEETS
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2018

Touris m Central Park and
Fund Supply Recreation
Fund
Project
Fund

ASSETS $- $ 16,477 $ 14,895
13,120 - -
ASSETS
Pooled Cash 1,240,550 - -
Restricted Pooled Cash - - -
In v es tmen ts - 15,051 -
Res tricted - 2,380
Unres tricted 2,503 - -
Inventories -
Other Receivables $ 31,528 $ 17,275
Due from Other Funds $ 1,256,173

Total Assets

LIABILITIES AND FUND BALANCE $ 20,687 $ 167 $-

LIABILITIES - - -
Accounts Payable 20,687 167 -
Payroll taxes and benefits payable
Due to Other Funds - - -
1,235,486 - -
Total Liabilities 31,361 17,275
- 31,361 17,275
FUND BALANCES 1,235,486 $ 31,528 $ 17,275
Restricted for Debt Service $ 1,256,173
Other Restricted
Unrestricted

Total Fund Balances (Deficit)

Total Liabilities and Fund Balances

See report of independent auditors.

77

Group Police/ Fire Emergency Municipal Interes t
Hospitalization 100 Equipment Operations Court and
Fund
Fund Fund Fund Security Sinking
Fund Fund

$ 16,746 $ 1,136 $ 91,624 $ 3,131 $ - $ -

- - - - 18,803 24,391

- - - - 29,200 248,990

- - 200,000 - - -

----- -

- - 439 - 64 435

----- -

$ 16,746 $ 1,136 $ 292,063 $ 3,131 $ 48,067 $ 273,816

$ - $- $ 5,181 $ - $- $ -

16,746

----- -

16,746 - 5,181 - - -

- - - - - 273,816

- - - - 48,067 -

- 1,136 286,882 3,131 - -

- 1,136 286,882 3,131 48,067 273,816

$ 16,746 $ 1,136 $ 292,063 $ 3,131 $ 48,067 $ 273,816

See report of independent auditors.

78

CITY OF BORGER, TEXAS
COMBINING BALANCE SHEETS - Continued
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2018

Fire Police Municipal
Benevolent Benevolent Court

Fund Fund Technology
Fund

ASSETS $ 6,282 $ 1,185 $-
Total Assets $ - - 493
ASSETS
Pooled Cash - - 3,000
Restricted Pooled Cash - 5,000 -
Investments - -
Res tricted - - 10
Un res tricted - 11 -
Inventories -
Other Receivables 6,282 $ 3,503
Due from Other Funds $ 6,196

LIABILITIES AND FUND BALANCE

LIABILITIES $ - $- $ -
Accounts Payable $

Due to Other Funds ---
---
Total Liabilities

FUND BALANCES - - -
Restricted for Debt Service - - 3,503
Other Restricted 6,282 6,196
Un res tricted -
6,282 6,196
Total Fund Balances (Deficit) 3,503
6,282 $ 6,196
Total Liabilities and Fund Balances $ 3,503

See report of independent auditors.

79

Hotel/ Multi Borger Capital Special Total
Motel Purpos e Community Equipment Crime Non Major
Tax Events Designated Fund Governmental
Fund Center Fund Fund
Fund Funds

$ 37,294 $ -$ - $ 19,685 $- $ 208,455
- - - - 11,408 68,215

- - 98,507 - 2,775 1,524,515
- - - 324,616 - 628,123
- - - - 15,051
- - - - 3 6,118
- - 273 - -
98,507 -
$ 37,294 $ -$ $ 14,186 $ 2,450,477
$ 344,574

$ 37,294 $ -$ - $ 86,320 $ - $ 149,649

- - 16,746
37,294 -
- -- -
-
- - 86,320 - 166,395
-
- - - - - 273,816
$ 37,294 $
- 72,227 - 14,186 1,373,469

- 26,280 258,254 - 636,797

- 98,507 258,254 14,186 2,284,082

- $ 98,507 $ 344,574 $ 14,186 $ 2,450,477

See report of independent auditors.

80

CITY OF BORGER, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
Year Ended September 30, 2018

REVENUES Touris m Central Park and
Taxes Fund Supply Recreation
Fund
Property $- Project
Occupancy - $- Fund
Charges for Service - -
Penalties, Fines and Forfeitures - - $-
Intergovernmental Grants and Subsidies - - -
Other Grants and Contributions - -
Investment Income - 19,047
6,993 - -
Total Revenues 6,993 - -
-
EXPENDITURES - - -
Current: - -
Public Safety 58,095 - 19,047
Public Works - -
Economic Development and Tourism -
Capital Outlay - - 1,649
Debt Service - -
Principal and Interest 58,095 - -
Administrative Fees (51,102) - -

Total Expenditures 907,849 - -
907,849 - -
Excess (Deficit) of Revenues over Expenditures 856,747 1,649
- 17,398
OTHER FINANCING SOURCES 378,739
Transfers In (Out) $ 1,235,486 31,361 (22,305)
$ 31,361 (22,305)
Total Other Financing Sources (4,907)

Net Change in Fund Balance 22,182
$ 17,275
Fund Balance (Deficit) - Beginning of Year

Fund Balance (Deficit), End of Year

See report of independent auditors.

81

Police/ Fire Emergency Municipal Interes t Fire
100 Equipment Operations Court and Benevolent
Fund
Fund Fund Security Sinking Fund
$- Fund Fund
-
- $- $- $- $ 1,017,478 $ -
-
- -- - --
-
- -- - --

- -- 2,424 --

-- - --

112,868 - - --

3,708 - 541 12,785 -

116,576 - 2,965 1,030,263 -

- 34,537 - 1,600 - 2,000
---- --
---- --
---- --

- - - - 954,431 -

---- 1,300 -

- 34,537 - 1,600 955,731 2,000

- 82,039 - 1,365 74,532 (2,000)

- (49,431) - (12,277) - -
- (49,431) - (12,277) - -
32,608 - (10,912) (2,000)
- 74,532
254,274 3,131 58,979 8,282
1,136 $ 286,882 $ 3,131 $ 48,067 199,284 $ 6,282
$ 1,136 $ 273,816

See report of independent auditors.

82

CITY OF BORGER, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE - Continued
NONMAJOR GOVERNMENTAL FUNDS
Year Ended September 30, 2018

Police Municipal Hotel/
Benevolent Court Motel
Tax
Fund Technology Fund
Fund
$-
REVENUES - $- $-
Taxes - - 311,594
- - -
Property - -
Occupancy - 3,231 -
Charges for Service 93 - -
Penalties, Fines and Forfeitures - -
Intergovernmental Grants and Subsidies 83
Other Grants and Contributions 311,594
Investment Income 3,314

Total Revenues 93

EXPENDITURES - 5,475 -
Current: - - -
Public Safety - - 162,319
Public Works - - -
Economic Development and Tourism
Capital Outlay - - -
Debt Service - - -
Principal and Interest
Administrative Fees - 5,475 162,319

Total Expenditures 93 (2,161) 149,275

Excess (Deficit) of Revenues over Expenditures

OTHER FINANCING SOURCES - - (149,275)
Transfers In (Out) - - (149,275)
93 (2,161)
Total Other Financing Sources -
Net Change in Fund Balance 6,103 5,664
6,196 $ 3,503 -
Fund Balance (Deficit) - Beginning of Year $-
Fund Balance (Deficit), End of Year $

See report of independent auditors.

83

Multi Borger Capital Special Total
Purpos e Community Equipment Crime Non Major
Events Designated Fund Governmental
Center Fund
Fund Funds
Fund
$- $ - $- $ 1,017,478
$- - -- 311,594
- - -- 19,047
- - -- 5,655
- - - 140 140
- - -- 112,868
- 1 2,310 251 40,162

13,397 1 2,310 391 1,506,944

13,397

- - - 2,790 46,402
- - - - 1,649
6,566 25,241 - - 252,221
- - 11,904 - 11,904

- - - - 954,431
- - - - 1,300

6,566 25,241 11,904 2,790 1,267,907

6,831 (25,240) (9,594) (2,399) 239,037

(1,607,467) 97,467 (188,040) - $ (1,023,479)
(1,607,467) 97,467 (188,040) - (1,023,479)
(1,600,636) 72,227 (197,634) (2,399)
(784,442)
1,600,636 26,280 455,888 16,585
$- $ 98,507 $ 258,254 $ 14,186 3,068,524
2,284,082

See report of independent auditors.

84

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
TOURISM FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Contributions Budget Budget Final Budget
Investment Income $-
$- $- 6,993 Favorable
Total Revenues 50 50 6,993 (Unfavorable)
50 50
$-
158,800 158,800 6,943
158,800 158,800 6,943
(158,750) (158,750)
EXPENDITURES 58,094 100,706
Economic Development and Tourism 200,000 200,000 58,094 100,706
200,000 200,000 (51,101) 107,649
Total Operating Expenditures $ 41,250 $ 41,250
Excess (Deficit) of Revenues over (under) Expenditures

OTHER FINANCING SOURCES 907,848 707,848
Transfers In 907,848 707,848
856,747 $ 815,497
Total Other Financing Sources
Net Change in Fund Balance 378,739
$ 1,235,486
Fund Balance, Beginning of Year
Fund Balance, End of Year

See report of independent auditors.

85

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
PARK AND RECREATION PROJECT FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Charges for Services Budget Budget Final Budget
Other Grants and Contributions $ 32,000 $ 19,047
Investment Income $ 32,000 - Favorable
32,000 (Unfavorable)
Total Revenues 32,000 19,047
32,000 $ (12,953)
32,000 32,000 -
32,000 -
-
- (12,953)
-
EXPENDITURES $- - 1,649 30,351
Public Works - 1,649 30,351
17,398 17,398
Total Operating Expenditures $-
Excess (Deficit) of Revenues over (under) Expenditures (22,305) (22,305)
(22,305) (22,305)
OTHER FINANCING SOURCES (4,907) $ (4,907)
Transfers In (Out)

Total Other Financing Sources
Net Change in Fund Balance

Fund Balance, Beginning of Year 22,182
Fund Balance, End of Year $ 17,275

See report of independent auditors.

86

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
POLICE CLUB 100 FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Contributions Budget Budget $- Final Budget
Investment Income
- $- - Favorable
Total Revenues - - (Unfavorable)
- -
$-
- - -
- - -
$- $-
EXPENDITURES - -
Public Safety -$ -
-
Total Operating Expenditures 1,136
Excess (Deficit) of Revenues over (under) Expenditures $ 1,136

Fund Balance, Beginning of Year
Fund Balance, End of Year

See report of independent auditors.

87

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
FIRE EQUIPMENT FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Intergovernmental Grants and Subsidies Budget Budget Final Budget
Contributions $-
Investment Income $- $- 112,868 Favorable
Total Revenues 25,000 25,000 3,708 (Unfavorable)
116,576
EXPENDITURES 25,000 25,000 $-
Public Safety $ 87,868
25,000 25,000
Total Operating Expenditures 25,000 25,000 3,708
Excess (Deficit) of Revenues over (under) Expenditures 91,576
- -
OTHER FINANCING SOURCES 34,537 (9,537)
Transfers In - - 34,537 (9,537)
- - 82,039 $ 82,039
Total Other Financing Sources
Net Change in Fund Balance $- $- (49,431) (49,431)
(49,431) (49,431)
Fund Balance, Beginning of Year 32,608 $ 32,608
Fund Balance, End of Year
254,274
$ 286,882

See report of independent auditors.

88

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
EMERGENCY OPERATIONS FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Investment Income Budget Budget Final Budget
$-
Total Revenues $- $- - Favorable
- - (Unfavorable)

- - -
- - -
$- $-
EXPENDITURES - -
Public Safety - -
-
Total Operating Expenditures -$
Excess (Deficit) of Revenues over (under) Expenditures
3,131
Fund Balance, Beginning of Year $ 3,131
Fund Balance, End of Year

See report of independent auditors.

89

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
MUNICIPAL COURT SECURITY FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Penalties, Fines and Forfeitures Budget Budget Final Budget
Investment Income $ 4,500 $ 2,424
$ 4,500 541 Favorable
Total Revenues 4,500 (Unfavorable)
4,500 2,965
50,000 $ (2,076)
50,000 50,000 541
$ (45,500) 50,000
$ (45,500) (1,535)
-
EXPENDITURES (45,500) - 1,600 48,400
Public Safety - 1,600 48,400
1,365 46,865
Total Operating Expenditures (45,500)
Excess (Deficit) of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (12,277) (12,277)
Transfers In (12,277) (12,277)
(10,912) 34,588
Total Other Financing Sources
Net Change in Fund Balance 58,979
$ 48,067
Fund Balance, Beginning of Year
Fund Balance, End of Year

See report of independent auditors.

90

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
INTEREST AND SINKING SERVICE FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Property Taxes Budget Budget Final Budget
Investment Income $ 1,017,478
$ 955,000 $ 955,000 12,785 Favorable
Total Revenues 1,182 1,182 (Unfavorable)
1,030,263
956,182 956,182 $ 62,478
11,603
897,900 74,081
56,532
EXPENDITURES 897,900 1,750 897,900 -
Debt Service 56,532 956,182 56,531 1
Principal and Interest 1,750 1,300 450
Capital Lease Payments 956,182 - 955,731 451
Adminstrative Fees 74,532 74,532
- -
Total Operating Expenditures $-
Excess (Deficit) of Revenues over (under) Expenditures

OTHER FINANCING USES $ - - $ -
Transfers Out - 74,532 -
74,532
Total Other Financing Uses 199,284
Net Change in Fund Balance $ 273,816

Fund Balance, Beginning of Year
Fund Balance, End of Year

See report of independent auditors.

91

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
MUNICIPAL COURT TECHNOLOGY FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Penalties, Fines and Forfeitures Budget Budget Final Budget
Investment Income $ 3,231
$ 6,000 $ 6,000 83 Favorable
Total Revenues (Unfavorable)
6,000 6,000 3,314
$ (2,769)
6,000 6,000 83
6,000 6,000
$- $- (2,686)

EXPENDITURES 5,475 $ 525
Public Safety 5,475 525
(2,161) (2,161)
Total Operating Expenditures
Excess (Deficit) of Revenues over (under) Expenditures

Fund Balance, Beginning of Year 5,664
Fund Balance, End of Year $ 3,503

See report of independent auditors.

92

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
HOTEL/MOTEL OCCUPANCY TAX FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Occupancy Taxes Budget Budget Final Budget
$ 311,594
Total Revenues $ 375,000 $ 375,000 311,594 Favorable
375,000 375,000 (Unfavorable)

$ (63,406)
(63,406)

EXPENDITURES 175,000 175,000 162,319 12,681
Economic Development and Tourism 175,000 175,000 162,319 12,681
200,000 200,000 149,275 (50,725)
Total Operating Expenditures
Excess (Deficit) of Revenues over (under) Expenditures

OTHER FINANCING USES (200,000) (200,000) (149,275) 50,725
Transfers Out (200,000) (200,000)
$- $- (149,275) 50,725
Total Other Financing Uses
Net Change in Fund Balance -$ -

Fund Balance, Beginning of Year -
Fund Balance, End of Year $-

See report of independent auditors.

93

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAPITAL EQUIPMENT FUND
Year Ended September 30, 2018

REVENUES Original Final Actual Variance with
Grants and Contributions Budget Budget Final Budget
Investment Income $-
$- $- 2,310 Favorable
Total Revenues 500 500 2,310 (Unfavorable)
500 500
$-
1,297,320 1,297,320 1,810
1,297,320 1,297,320 1,810
(1,296,820) (1,296,820)
EXPENDITURES 11,904 1,285,416
Capital Outlay 804,648 804,648 11,904 1,285,416
(9,594) 1,287,226
Total Operating Expenditures 804,648 804,648
Excess (Deficit) of Revenues over (under) Expenditures $ (492,172) $ (492,172)

OTHER FINANCING USES 767,480 (37,168)
Transfers In (955,520) (955,520)
Transfers Out (188,040) (992,688)
(197,634) $ 294,538
Total Other Financing Uses
Net Change in Fund Balance

Fund Balance, Beginning of Year 455,888
Fund Balance, End of Year $ 258,254

See report of independent auditors.

94

ENTERPRISE FUNDS
BUDGET VS. ACTUAL
Water and Sewer Utility Fund - The Water and Sewer Utility Fund is used to accounts for the billings and
collections of water and wastewater services to the residents of the City. All activities necessary to provide such
services are accounted for in this fund including administration, operations billing and maintenance.

95

CITY OF BORGER, TEXAS
BUDGETARY COMPARISON SCHEDULE
WATER AND SEWER UTILITY FUND
Year Ended September 30, 2018

OPERATING REVENUES Original Final Actual Variance
Charges for Service Budget Budget Favorable
Industrial Water Sales $ 4,627,642 (Unfavorable)
Late Charges $ 4,962,600 $ 4,712,600 5,674,550
Tapping and Surcharge Fees 5,112,000 5,362,000 105,698 $ (84,958)
Other and Miscellaneous 111,000 111,000 27,510 312,550
Total Operating Revenues 46,000 46,000 536,357 (5,302)
89,000 89,000 10,971,757 (18,490)
OPERATING EXPENSES 10,320,600 10,320,600 447,357
Current 2,010,689 651,157
Salaries and Wages 1,991,630 2,015,630 648,724
Employee Benefits 709,960 696,960 664,294 4,941
Utilities 637,000 619,500 48,236
Departmental Operating Costs 1,266,552 (44,794)
Professional and Technical Services 1,323,962 1,369,962 153,744 103,410
Repairs and Maintenance 135,750 154,500 200,546
Other Purchased Services 191,710 211,610 160,775 756
Property and Facility 197,026 185,326 16,261 11,064
General and Administrative Supplies 17,000 15,000 167,023 24,551
Rental and Lease Agreements 179,120 187,170 16,166 (1,261)
Bad Debt Expense 14,500 17,500 100,181 20,147
Capital Outlay 15,000 15,000 1,334
Debt Service 4,500 2,057,231 (85,181)
Principal Payments 1,986,836 7,462,186 4,500
Total Operating Expenses 7,399,494 1,906,836 3,509,571
Operating Income (Loss) 2,921,106 7,399,494 (150,395)
2,921,106 198,420 (62,692)
NONOPERATING REVENUES (EXPENSES) 28,864 (1,699,995) 588,465
Investment Income (1,943,925) 28,864 (1,501,575)
Interest Expense (1,915,061) (1,943,925) 2,007,996 169,556
Total Nonoperating Revenues (Expenses) 1,006,045 (1,915,061) 243,930
Income Before Transfers 1,006,045 91,859 413,486
3,316,000 (935,218) 1,001,951
TRANS FERS (4,297,045) 3,316,000 (843,359)
Transfers In (4,297,045) $ 1,164,637 (3,224,141)
Transfers Out (981,045) 3,361,827
$ 25,000 (981,045)
Total Operating Transfers $ 25,000 137,686
Net Income (Loss) $ 1,139,637

Reconciliation of Net Loss for Budgetary Basis to $ 1,164,637
Statement of Activities for Water Utility Fund (1,769,354)
2,057,231
Net Loss - Budgetary Basis
Amounts reported in the Statement of Activities are different because: $ 1,452,514

Depreciation is reported in the Proprietary Funds Statement of
Activities but is not a budget expenditure item

Debt Service Expenditures reduce Water Fund liabilities
and are not considered current year expenses

Capital Outlay is a budet expenditure but is reported on the
Proprietary Funds Statement of Net Assets

Net Income - Financial Statement Basis

See report of independent auditors.

96

Other Information

97

CITY OF BROGER, TEXAS
SCHEDULE OF DELINQUENT TAXES RECEIVABLE

September 30, 2018

YEAR BALANCE ADJUSTMENTS COLLECTIONS BALANCE
2008 & PRIOR 10/1/2017 9/30/2018
2009
2010 $ 30,139 $ (3,353) $ 1,200 $ 25,586
2011
2012 $ 11,253 $ (561) $ 1,452 $ 9,240
2013
2014 $ 18,237 $ (984) $ 2,536 $ 14,717
2015
2016 $ 25,615 $ (806) $ 5,382 $ 19,427
2017
$ 29,614 $ (779) $ 6,421 $ 22,415
DELINQUENTS
$ 39,204 $ (1,104) $ 8,597 $ 29,503
CURRENT (2018)
$ 55,977 $ (814) $ 11,578 $ 43,585
TOTALS
$ 90,249 $ (3,389) $ 17,949 $ 68,911

$ 171,598 $ (2,698) $ 84,761 $ 84,140

$ -$ -$ -$ -

$ 471,887 $ (14,488) $ 139,875 $ 317,524
$ 4,033,826 $ -$ 3,858,488 $ 175,338

$ 4,505,713 $ (14,488) $ 3,998,363 $ 492,862

See report of independent auditors.

98