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Home My WebLink AboutCity of Weatherford - Public Financial Report Popular Annual Financial Report Fiscal Year Ended September 30, 2021 2 About the Popular Annual Financial Repoԭ The Popular Annual Financial Report (PAFR) is an unaudited summary report of the ﬁnancial acƟviƟes of the City and is prepared primarily from detailed informaƟon contained in the City’s Annual Comprehensive Financial Re- port (ACFR) for the ﬁscal year ended September 30, 2021 with selected informaƟon from ACFRs prepared in earlier ﬁscal years. The ACFR is prepared in accordance with generally accepted accounƟng principles (GAAP) and includes ﬁnan- cial statements audited by Paƫllo, Brown & Hill, L.L.P.. The City received an unmodiﬁed (or clean) opinion that the ﬁnancial statements present fairly, in all material respects, the ﬁnancial posiƟon of the City of Weatherford at September 30, 2021. The ACFR provides much more detail as well as full disclosure of all material events, both ﬁnancial and non-ﬁnancial and includes the City’s component units (related organizaƟons) and informaƟon on individual funds. The PAFR has been prepared to simplify the informaƟon in the ACFR and beƩer inform the public about the overall ﬁnancial condiƟon of the City, without the heavy use of technical accounƟng terms or excessive detail. The PAFR is not intended to provide a complete ﬁnancial picture of the City in accordance with GAAP. QuesƟons or feedback concerning any of the informaƟon provided in this report or requests for addiƟonal ﬁ- nancial informaƟon may be directed to the Finance Department via mail to P.O. Box 255, Weatherford, TX 76086, via email to dbrooks@weatherfordtx.gov or via telephone at 817-598-4130. Copies of both the PAFR and ACFR are available online at: hƩps://weatherfordtx.gov/129/AdministraƟon-AccounƟng Table Է Contents: Meet the Council……………………………..…………………………………………………...2 About the City.……………………………………………………………………………………….3 Weatherford by the Numbers………………………………………………………………..4 Government Wide Highlights..……………………………………………………………….5 General Fund………….……………………………………………………………………………..7 Municipal UƟlity System Fund….……………………………………………………………8 What we own…………………………………………………………………………………..……9 What we owe……………………………………………………………………………………...10 3 Weatherford Government The city is operated under the Council-Manager form of government. Policy-making and leg- islaƟve authority are vested in a governing council consisƟng of a Mayor and four council members. The City Council is responsible for passing ordinances, adopƟng the budget, ap- poinƟng boards and commiƩees, and hiring the City Manager, Municipal Court Judge, and City AƩorney. The Mayor and council members are elected on a non-parƟsan, at-large basis for staggered three-year terms. Meet the City Council Kevin Cleveland Council Member Place 4 James Hotopp City Manager Paul Paschall Mayor Jeff Robinson Council Member Place 2 MaƩ Ticzkus Council Member Place 3 Heidi Wilder Council Member Place 1 4 The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more detailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. About the City The City of Weatherford, incorporated in 1858, adopted its original charter and became a home-rule city in 1918. Located 25 miles west of Fort Worth, Weatherford serves as the seat of Parker County. Weatherford occupies a land area of 29.1 square miles and includes an esƟmated populaƟon of 36,997. Weatherford is located at the intersecƟons of U.S. Highways 180 and 80, approximately 25 miles west of the City of Fort Worth and approximately 60 miles west of the City of Dallas. Interstate 20 runs along the City's southern boundary and provides for major access to Fort Worth and Dallas. Weatherford is situated such that it has maintained an independent idenƟty from the Dallas Fort Worth Metroplex yet its close proximity to this major urban area has had a direct effect. Residents ﬁnd themselves able to achieve a rural lifestyle without sacriﬁcing the conveniences and labor market of a major metropolitan area. Many Weatherford residents commute into the Metroplex to work. Much of the City's commercial and industrial growth is directly aƩributable to its relaƟve locaƟon to the Metroplex. The City's major commercial and industrial employers ﬁnd Weatherford aƩracƟve since it offers the advantages of convenient access to the region's major transportaƟon and shipping infrastructure without the disadvantages related to physically locaƟng within a major urban area. Historically, the Dallas/Fort Worth Metroplex has enjoyed an extremely low unemployment rate. It has also enjoyed the growth of a diverse economic base. The outward growth of Dallas/Fort Worth will impact the transiƟon of Weatherford from its farming and ranching roots to increased urban resi- denƟal, commercial, and industrial development. 5 Demographics Economy Weatherford by the Numbers The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more detailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. 6 The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more detailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. Government-Wide Highlights Statement of Net Position: The Statement of Net Position presents information on all of the City’s as- sets and liabilities, deferred outflows, deferred inflows with the difference between the above reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City's financial position is improving or deteriorating. DescripƟon of Categories: Current and other assets – Assets that one can reasonably expect to convert to cash, sell, or consume within one year. Capital assets – The City’s long-term invest- ments in land, buildings, equipment, improve- ments, infrastructure, and construcƟon in pro- gress. Deferred ouƞlows of resources – This repre- sents a consumpƟon of net posiƟon that applies to future periods. Current and other liabiliƟes – These are primari- ly debts that can be paid off in one year or less. This includes accounts payable, accrued payroll, deposits payable, accrued interest payable, and unearned revenue. Long‐term obligaƟons – Represents the debt obligaƟons of the City. The proceeds from these various debt issues are used to ﬁnance large projects such as building construcƟon and reno- vaƟons and roadway construcƟon. Deferred inﬂows of resources – This represents an acquisiƟon of net posiƟon that applies to fu- ture periods. Net investment in capital assets – This repre- sents the City’s investment in its capital assets less accumulated depreciaƟon and any outstand- ing debt aƩributable to the acquisiƟon, construc- Ɵon, or improvement of these assets. Restricted – Resources whose use is subject to externally imposed restricƟons. The City has resources set aside for various purposes such as debt service requirements and future capital projects as established by the City Council. Unrestricted – These are resources that are ac- cessible to the City to provide services to the residents if there were no addiƟonal revenues or resources available. 7 Statement of Activities: The Statement of Activities presents information showing how the govern- ment’s net position changed during the most recent fiscal year for all governmental fund types. All changes in net position are reported as soon as the underlying event giving rise to the change occurs us- ing the full-accrual basis, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). DescripƟon of Revenues: Program revenues – Revenues that are earned as a direct result of a given funcƟon. Program revenues are offset by program ex- penses. OperaƟng contribuƟons and grants – Mon- ies received from parƟes outside the City and are generally restricted to one or more spe- ciﬁc programs. Capital contribuƟons and grants – Monies received for capital purposes, to purchase, construct, or renovate capital assets associ- ated with a speciﬁc program. Property taxes — The City assesses a proper- ty tax rate of $0.4829 per $100 of assessed valuaƟon of the property. The assessed valu- aƟon of property determined by the Parker County Appraisal District. Sales taxes — the sales tax rate of 8.25% is imposed on all taxable sales in the City. The City receives 1.50% of the taxable sales in the city. The State of Texas and Parker County receive 6.25% and 0.50% respecƟvely. Interest earnings — The City pools its availa- ble cash from various funds and invests in instruments allowed by the City’s investment policy. Earnings are allocated to various funds on the basis of proporƟonate cash bal- ances. The actual revenue realized is a func- Ɵon of current cash balances and market interest rates. RoyalƟes — the city receives royalƟes for waste received at the local landﬁll. Miscellaneous—Revenues that are non- recurring in nature such as reimbursable ex- penses. The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more de- tailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. 8 General Fund The General Fund is the chief operaƟng fund of the City of Weatherford; this fund is responsi- ble for all general city operaƟons and is primarily funded through sales tax, property tax, and uƟlity gross receipts and return on investments. Total General Fund revenues for the ﬁscal year were $38,472,924. The breakdown of where the revenues come from is as follows: The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more de- tailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. Where the Money Comes From? Where the Money Goes? Total General Fund expenditures for the ﬁscal year were $36,993,613. The breakdown of where the expendi- tures went is as follows: How much is in Reserves? Total fund balance in the General Fund at the end of the ﬁscal year was $23,313,989. The City’s ﬁnancial man- agement policies sƟpulate that the general fund shall maintain a balance equivalent to 90 days worth of opera- Ɵonal costs contained in the fund, known as a stabilizaƟon arrangement. At September 30, 2021, the balance commiƩed by the council was $9,628,531. Spendable, unreserved fund balance is equivalent to approximately 217 days worth of operaƟonal costs. 9 Where the Money Comes From? Total Municipal UƟlity System revenues for the ﬁscal year were $70,681,250. The breakdown of where the revenues come from is as follows: How much is in Reserves? Total net posiƟon in the Municipal UƟlity System fund the end of the ﬁscal year was $180,779,692. Of this amount, $119,956,098, is the systems investment in capital assets, $12,082,320 is reserved for various pur- poses such as construcƟon, debt service and rate stabilizaƟon. The remaining $48,741,274 is unrestricted and can be used to meet the Systems operaƟons and obligaƟons. The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more detailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. Where the Money Goes? Total Municipal System Fund expenses for the ﬁscal year were $72,189,052. The breakdown of where the ex- penses went is as follows: Municipal Utility System Fund The Municipal UƟlity System Fund is uƟlized to account for the operaƟons of the City’s electric distribuƟon, water treatment and distribuƟon, and wastewater collecƟon and treatment sys- tems. 10 What We Own Investment Management The City follows the pracƟce of pooling cash and investments of all funds except for restricted funds general- ly held by outside trustees or ﬁscal agents. Interest income earned on pooled cash and investments is allo- cated to those funds, which are required by law, local ordinance, administraƟve acƟon or agreements, to re- ceive interest based on the weighted average cash balances. The City invests temporarily idle cash in accordance with the Government Code and a formal investment poli- cy approved by the City Council on an annual basis. Investments must meet established criteria for safety, liquidity, diversiﬁcaƟon and yield. As of September 30, 2021 pooled investments had a market value of $123.7 million as follows: The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more detailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. Capital Assets As of September 30, 2021, the value of the City’s capital assets was $283.4 million, an increase of about $16.5 million or 6.2% from the previous ﬁscal year. Major events during the ﬁscal year include: Completion of design and commencement of construction for the Public Safety Building $8,703,889, Completion of the Boardwalk at Lake Weatherford $2,074,046, Construction of reclaimed water pump station and wastewater treatment plan improvements $2,668,068, Construction of reclaimed water pipeline $2,076,418, and Various system extensions and improvements to the City’s water, wastewater, and electric distribution system, as well as equipment purchases, approximated $5.2 million. 11 What We Owe The City’s bond debt outstanding at September 30, 2021, consists of the following: Debt Management The City of Weatherford occasionally issues debt to fund major capital pro- jects. Outstanding debt is conƟnuous- ly evaluated to take advantage of low- er interest rates and reduce long-term borrowing costs . Total long-term debt outstanding at September 30, 2021 was $94.4 mil- lion. Bond Rating The City of Weatherford and the Mu- nicipal UƟlity System hold raƟngs of AA and A+ from Standard and Poor’s, respecƟvely. The credit raƟngs express the conﬁ- dence of the raƟng agencies that the City has a strong capacity to meet its ﬁnancial commitments but is some- what more suscepƟble to the adverse effects of changes in circumstances and economic condiƟons than obli- gors in higher-rated categories. The financial information in this report is derived from the City’s Annual Comprehensive Financial Report (ACFR) for FY 2020/21. The ACFR provides more de- tailed information and is prepared in conformity with generally accepted accounting principles, and available at: https://www.weatherfordtx.gov/129/ Administration-Accounting. 12 GFOA Awards: The Government Finance Officers AssociaƟon of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial ReporƟng to the City of Weatherford for its Popular Annual Report for the ﬁscal year ended September 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial ReporƟng is a presƟgious naƟonal award recognizing conformance with the highest standards for preparaƟon of state and local govern- ment popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial ReporƟng, a government unit must publish a Popular Annual Financial Report whose contents conform to program stand- ards of creaƟvity, presentaƟon, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial ReporƟng is valid for a period of one year only. This is the ﬁrst year the City of Weatherford has received a Popular Award. We believe our current report conƟnues to conform to the Popular Annual Finan- cial ReporƟng requirements, and we are submiƫng it to GFOA. The City of Weatherford’s annual comprehensive ﬁnancial report for the year ended September 30, 2020 was awarded the CerƟﬁcate of Achievement for Excellence in Financial ReporƟng by the Government Finance Officers AssociaƟon of the United States and Canada (GFOA). The CerƟﬁcate of Achievement is the highest form of recogniƟon for excellence in state and local government ﬁnancial reporƟng. In order to be awarded a CerƟﬁcate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive ﬁnancial report, whose contents conform to program standards. Such ACFR must saƟsfy both generally accepted accounƟng principles and applicable legal requirements. A CerƟﬁcate of Achievement is valid for a period of one year only. We believe our ACFR conƟnues to conform to the CerƟﬁcate of Achieve- ment program requirements and we are submiƫng our ACFR for the current year to the GFOA. City of Weatherford, Texas Finance Department 303 Palo Pinto Street Weatherford, Texas 76086 www.weatherfordtx.gov