COA (2018/19) ACFR by City_of_Amarillo

CITY OF AMARILLO, TEXAS Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2019

Prepared by: Finance Department

Michelle Bonner Deputy City Manager

Public Health

Parks & Recreation

Airport

August 2018

Environmental Health

Public Transit

Information Technology Finance Human Resources

Women, Infants, and Children

and Welfare

Water Utilities

Animal Management

Library Municipal Court

Emergency Management/Radio

CIP Development

Fire

Police

Public Works

Community Development

Civic Center

Assistant City Manager Community Services

Safety

Facilities

City Secretary

Community Engagement

Communications &

Office of Public

Boards/Commissions

Planning & Development Services

Building

Public Safety & Organizational

Planning & Developrnent Services Services

Deputy City Manager

City Attorney

City Manager

Assistant City Manager

Municipal Judge

EElFfiTTt-fi}IT'T'IF

City of Amarillo, Texas Organization Chart

CITY OF AMARILLO, TE)ilS PRINCIPAL OFFICIALS SEPTEMBER 30,2019

GOVERNING BODY: Ginger Nelson Elaine Hays Freda Powell

Eddy Sauer Howard Smith

Mayor Councilmember Place I Councilmember Place 2 Councilmember Place 3 Councilmember Place 4

OTIIER PRIMCIPAL OFFICIALS: Jared Miller

Michelle Bonner Kevin Starbuck Floyd Hartman Bryan McWilliams Frances Hibbs Laura Storrs Raymond Lee Jonathan Gresham Ed Drain Michael Kashuba

JeffGreenlee

Nch Gagnon Valerie Kuhnert

City Manager Deputy City Manager Assistant City Manager Assistant City Manager City Attorney City Secretary Director of Finance Director of Public Works Interim Director of Utilities Police Chief Director of Parks and Recreation Fire Chief Information Services Director City Auditor

(F GovQlnncr$ Fhanco Officcor Aseooiadon

C€rtifieate of Achievement

frr Exgetrlenc,e in Finanqial Reporting Prosc'ntd.to

efiy of^*mqrlllo Texas For its Conlprehcnsivc Amul Fingnoial Rcport for ths Fisoal Ycar Ended

Septem-ber 30r 201t

Ol'bft-P'Un;rl Brccutivc D lrrotor/CEO

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION Organizational Chart Lisl of Elected and Appointed Officials GFOA Certificate of Achievement Letter of Transmittal................

FINANCIAL SECTION Independent Auditor's Report........

Management's Discussion and Analysis (Required Supplementary Information)

Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position

Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds.... Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............. Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities. Statement of Net Position - Proprietary Funds Statement of Revenueso Expenses, and Changes in Fund Net Position Proprietary Funds......... StatemCnt of Cash Flows - Proprietary Funds

28 29

3l 32 34 36

Statement of Fiduciary Net Position - Fiduciary Funds Statement of Changes in Fiduciary Net Position - Fiduciary Funds..

38 39

Statement of Net Position - Component Units... Statement of Revenues, Expenses, and Changes in Net Position - Cornponent Units

40 42 43

Notes to Basic Financial Statements Req uired Supplementatl Information

126

t27 t28 129

r30 Schedule of Contributions - Firemett's Relief and Retirement Fund Notes to Schedule of Rcquired Supplementary Information Firemen's Relief and Retirement Fund ........... Schedule of Net OPEB Liability and Related Ratios Schedule of Changes in the Net OPEB Liability and Related Ratios

l3l

JJ 34

TABLE OF CONTENTS, CONTINUED

Page Req ui red Su pplementara Information, Conti n ued

Schedule of Contributions and Related Ratios......... Notes to Schedule of Required Supplementary Information Other Postemployment Benefits (OPEB)

.. r35

t36

Combining Statements, Schedules and Other Information

t42

Funds

Combi Combi

Changes

144

Combining Balance Sheet - Other Grant Funds Combining Statement of Revenues, Expenditures, and Changes in

t46 t47

Fund Balances - Other Grant Funds

...... 148 tn

...... r50 Combining Balance Sheet - Seizure Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Seizure Funds.........

152 153

Combining Balance Sheet - Miscellaneous Special Revenue Funds,....... Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Miscellaneous Special Revenue Funds and Fund Balances

154

156

r60

itures, and Changes in

Combining Statement of Net Position - Internal Service Funds...... Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds......., Balance Sheet - General Fund Statement of Revcnues, Expenditures, and Changes in Fund Balances - General Fund......... Comparat ive Schedule of Revenues - Ceneral Fund........ Schedule of Expenditures by Department (GAAP Basis) - General Fund......... Schedule of Expenditures by Department - Budgetary Basis - General Furrd ... Statement of Net Position - Water and Sewer Systern Fund .............. Statement of Revenues, Expenses, and Changes in Net Positiorr - Water and Sewer System Fund.... Statement of Cash Flows - Water and Sewer System Fund Schedule of Operating Revenues - Water and Sewer System Fund Schedule of Operating Expenses by Departrnent - W ater and Sewer System Fund

t62 r66 ...... 167 168

..... t73 ..... 174 t75 178

.. 182 .. 188 189

r90

t9l

t92

Statement of Net Position - Drainage Utility Fund Statement of Revenues, Expenses, an d Changes in Net Position - Drainage Utility F und.... Staternent of Cash Flows - Drainage Utility Fund

196

Statement of Net Position - Airport Furrd...........

200

197

r98

TABLE OF CONTENTS, CONTINUED

Page

Combining Statements, Schetlules and Other Informationo Continued and Changes in Statement of Revenues, Net Position - Airport und Statement of Cash Flows - Airport Fund Schedule of Operating Revenues - Airport Fund

20t 202 203

Combining Schedule of Assets, Liabilities, and Fund Balances Housing and Urban Development Grants...... Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Housing and Urban Development Grants......

,.,..',206 ....... 208

Combining Schedule of Assets, Liabilities, and Fund Balances Public Health Grants. Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Public Health Grants Combining Schedule of Assets, Liabilities, and Fund Balances

.......210 .,.,,.,211

.......212

Justice Crants........ Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Justice Grants

Combining Schedule of Assets, Liabilit ies, and Fund Balances

',,,.'.213

214

Miscellaneous Grants Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Miscellaneous Grants........

2t6 218

Combining Statement of Fiduciary Funds Combining Statement of Changes in Fiduciary Funds.

..2t9

Statement of Changes in Assets and Liabilities - Agency Fund....................

..220

SUPPLEMENTARY INFORMATION Schedule of Investments - By Funds......... Ad Valorem Taxes Receivable by Roll Year........... Sched ule of Changes in Taxes A vailable

222 224 225

Comb ined Schedule of Outstand ing Debt Issuances... Combined Schedule of Debt Service Requirements to Maturity.... Schedule of Debt

226 228 230

Waterworks and Sewer Systern - Bond Principal Repayment Schedule . Waterworks and Sewer Systern - Historical Financial Data - Operating Statements.. Waterworks and Sewer System - Historical Financial Data - City's Equ ity in System. Waterworks and Sewer System - Historical Financial Data - Water and Sewer

232 233

Fund Operations...........

Waterworks and Sewer System - Historical Firrancial Data - Water and Sewer Fund Net Position,.. Drainage Utility - Condensed Schedule of Operatiorts and Debt Covenant

Compliance Testwork

....235 236 238

..239

Schedule of lrrsurance Coverage - All Funds .. Schedule of Revenues an d Expenditures by Departrnent - Budgetary Basis Public Health Fund Schedule of Revenues and Expenditurcs by Department - Budgetary Basis LEOSE Training Fund ..........

...234

240 241

TABLE OF CONTENTS, CONTINUED

Page

SUPPLEMENTARY INFORMATION' Continued Schedule of Revenues and Expenditures by Department - Budgetary Basis

- Budgetary Basis

- Budgetary Basis -

242

243

- Budgetary Basis

- Budgetary Basis Bonded Debt Service Fund

244

245 246

STATISTICAL DATA (UNAIJDITED) 249 Net Position by Component, Last Ten Fiscal Years.......... 250 Changes in Net Position, Last Ten Fiscal Years.......... 253 Ten Fiscal Years Last Funds, Governmental Fund Balances, 254 Changes in Fund Balances, Governmental Funds, Last Ten Fisca_l Years 255 Tax Revenues by Source, Governmental Funds, Last Ten Fiscal Years 2s6 Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years 257 Last Ten FiscalYears......... Tax Rates, Overlapping Property Direct and 258 Principal Property Taxpayers, Cunent Year and Nine Years Ago......'...'. 259 Propeity Tax Levies and Collections, Last Ten Fiscal Years.......... 260 Taxable Sales by Category, Last Ten Calendar Years.......... 261 Direct and Overlapping Sales Tax Rates, Last Ten Fiscal Years......... 262 Direct and Overlafiin[ CouernmentalActivities Debt, As of September 30,2019... 263 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years Fiscal Years......... 264 Ten Debt Margin, Last and Legal Ratios of General Bonded Debt Outstanding 265 Legal Debt Margin Information, Last Ten Fiscal Years.......... 266 Pledged-Revenue Coverage, Last Ten Fiscal Years.......... 267 Dembgraphic and Economic Statistics, Last Ten Calendar Years ......... 268 Years A8o.,.....:....... Nine and Principal Employers, Curent Year 269 City Goverrtrirent Budgeted Positions by Function/Program, Last Ten Fiscal Years.......... 271 Operating Indicators by Function/Program, Last Ten Fiscal Years 273 Capital Asset Statistics by Function/Program, Last Ten Fiscal Years Waterworks and Sewer Systern - Historical Information - Historical Summary 274 of Total Customers..... Waterworks and Sewer System - Historical Irrformation - Average Daily Water 275 Consurnptiorr and System Information...... 276 Waterworks and Sewer System - Water Rates 277 Waterworks and Sewer System - Sewer Rates......... 278 Drainage Utility - Top Ten Dra inage Customers...... 279 Hotel Occupancy Tax 280 Hotel Taxpayers............

=*=

CITYOFAMARILLO I

rrr --- THE OFFICE OF

CITY MANAGER

February 25,2020

To the Honorable Mayor and City Council,

City of Amarillo, Amarillo, Texas Ladies and Gentlemen:

We are pleased to present the Comprehensive Annual Financial Report (CAFR) for the City of Amarillo (the City) for the year ended September 30, 2019, in compliance with Article III, Section 27 of the City Charter. The purpose of the report is to provide the Mayor, City Council, City Staff, citizens, bond holders, and other interested parties with useful information concerning the City's operations and financial position. The City is responsible for the accuracy, completeness, and fairness of the data presented in this report.

To the best of our knowledge, the following report is accurate in all material respects. It has been prepared in accordance with standards prescribed by the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association of the United States and Canada (GFOA) and other rule-making bodies. We believe the report contains all disclosures necessary for the reader to understand the City's financial affairs.

The City Manager, through his appointee, the Deputy City Manager for Public Safety and Organizational Services, is responsible for establishing and maintaining an internal control structure to ensure that the assets of the government are protected from loss, theft or misuse, as wellas to ensure that adequate and reliable accounting data are compiled to allow for the preparation of accurate financial statements in conformity with accounting principles generally accepted in the United States of America. This internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met, and it is continually modified to accommodate new technology and other changing conditions. The concept of reasonable assurance recognizes that (l) the cost of the control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. In our opinion, the City employs sound accounting and control policies that fulfi ll these responsibilities. As a recipient of federal and state financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. In our opinion, the City employs an appropriate levelof controland review procedures to ensure compliance with all applicable requirements. We believe that this report is accurately and fairly presented, and that all disclosures necessary to enable the reader to gain an understanding of the Ciry's financial activities have been included. Independent audits are an essential element of financial control and accountability. The Ciry Charter requires an annual audit to be made of the financial records of the City by a Certified Public Accountant selected by the Ciry Council. The City has complied with this requirement and the auditors' opinion has been included in this report. 'Ihe auditors perfbrmed their examination in accordance witlr generally accepted auditing startdards and stated that, in their opinion, the financial staternents are presented fairly, in all material respects, in conforrnity with accounting principles generally accepted in the United States of Arnerica. 509 S.E. SEVEN'rH AVE. o P.O. BOX r97r o AMARILLO, r'eXns igr05-t97r o 806/378.3000 0 FAX 806/378-9394 0 TDD 806/378-4229

The City is required to undergo an annual single audit in conformity with the provisions of the U.S. Office of Management and Budget Compliance Supplernent and the State of Texas Uniform Grant Management Standards. Inforrnation related to the City's single audits, including the Schedule of Expenditures of FederalAwards and the auditors'reports on the internal control structure and compliance with applicable laws and regulations are included in separate federal and state "single audit" repofts.

Following the report of the independent auditors is Management's Discussion and Analysis (MD&A). Although the Securities and Exchange Commission has required public companies to present the MD&A for many years, this requirement is now promulgated by Govemmental Accounting Standards Board (GASB) Statement No. 34. The objective of the MD&A is to provide an objective and easily readable analysis of the government's financial activities based on cunently known facts, decisions, or conditions. The Statement specifies the topics that must be included in the MD&A, and we believe that our presentation is in conformity with this standard. Profile of the Ciry of Amarillo: The City of Amarillo is geographically located within the boundaries of both Potter and Randall Counties in the center of the Panhandle of Texas and now contains an area of 103.80 square miles. Located on Interstate Highway 40 at the crossroads of a number of other highways and railroad lines, the City is the trade, banking, transportation, medical seruices, and marketing center of the entire Panhandle, as well as for portions of New Mexico, Oklahoma, Colorado, and Kansas. The estimated 2019 population is206,876.

In accordance with its current Charter, adopted in 1913, the City of Amarillo operates under a council-manager form of government. As the legislative body, the City Council is responsible for enacting all ordinances, resolutions, and regulations governing the City, as well as for appointing the members of the various statutory and ordinance boards and for appointing the City Manager, As chief administrator, the City Manager is responsible for enforcement of the laws and ordinances, as well as for supervising all offices and departments created by the City Council. The City provides the full range of municipal services normally associated with a municipaliry, including police and fire protection, street paving and maintenance, traffic engineering, enforcement of building and sanitary codes, a civic center complex, parks, golf courses, swimming pools and other recreational facilities, and five public libraries. The City provides solid waste collection and disposal services and operates a transit system, for which operations are accounted for as general governmental functions. The City maintains the water and sewer systems, an international airport, and a drainage utility system, the operations of which are all accounted for as enterprise funds. Overview of the Financial Reporting Entity: In accordance with governmental accounting standards, various governmental entities with which we have relationships were evaluated to determine whether they should be reported in the Ciry's combined financial statements as a part of its reporting entity. Based on standards established by the GASB, an entity should be considered to be part of the City's reporting entity if it is concluded that the nature and significance of the relationship between the City and the entity is such that exclusiott would cause the Ciry's financial statements to be rnisleading or incomplete. Based on the accourrting standards, the financial affairs of the Amarillo Hospital District, the Amarillo Economic Developmerrt Corporation, the Amarillo-Potter Events Venue District, the Arnarillo Local Government Corporatiorr, the Amarillo Housing Finance Corporation and the Amarillo Health Facility Corporation are reported as component units in the City's financial statements. Tlre Amarillo Local Government Corporation was created in FY 20ll/12. The Amarillo Local Government Corporation's purpose is to assist with the redevelopment of the downtown area and other beneficial projects including the construction and operation of a downtown parking garage and leasing land frorn the City for

the downtown convention hotel. The City appoints the Amarillo Local Government Corporation Board, but the Boards are not substantially the same. The Amarillo Hospital District is a separate political subdivision of the state of Texas, but is considered part of the City's financial reporting entity because the City Council appoints the District's Board of Managers and has final authority over its budget. Similarly, the Arnarillo Economic Development Corporation is organized as a nonprofit corporation under the laws of the state of Texas, but is included in the financial statements because of the City Council's authority to select its Board of Directors and approve its budget. The Amarillo-Potter Events Venue District, approved by the voters on January 17, 1998, is considered part of the City's financial reporting entity because the City's Mayor appoints four of the seven members of the District's Board of Directors. Moreover, through a facility lease agreement, the City has financial responsibility with respect to the Venue District's debt service payment(s) if the related tax revenues were not sufficient to make the payment(s). However, only summarized information regarding these entities is presented in our financial statements. Complete financial statements are available in separately issued reporls for each of these entities. The affairs of the Amarillo Housing Finance Corporation are included in our financial reporting entity because of the City Council's appointment of its Board of Directors. The activities of this corporation are limited to issuance of housing bonds under provisions of the Texas Housing Finance Corporation Act, and its bonds are not general obligations of either the corporation or the City. It does not publish separate financial statements. The Amarillo Health Facility Corporation Board of Directors is appointed by the City Council. The purpose of the corporation is to authorize the issuance of bonds to providers of health care services in order to finance the acquisition, construction, and improvement of facilities. These bonds are not general obligations of either the corporation or the City. Since none of the component unit operations are integral to the operations of the City, their affairs are segregated from the financial presentation of the primary government. As provided by the new accounting model, the aggregate component unit information is reflected "discretely" in the city-wide financial statements. The City reports TIRZ #l and TIRZ #2 as blended Component Units. TIRZ #l and #2 each have a ten-member board. The City of Amarillo appoints three board members, Potter County appoints three members and Amarillo College, Amarillo Independent School District, Amarillo Hospital District and the Panhandle Groundwater District each appoint one board member. While TIRZ # I and #2 revenues can be pledged to support debt, only the City can issue the debt and pledge the TIRZ #l and #2 revenue. Moreover, the City Councilcreated TIRZ #l and#2 and has finalapproval authority on the budget and all TIRZ#l and#2 projects. Operating and Capital Budgets: Budgetary controls serve two main purposes. First, the annual appropriated budget approved by the City Council satisfies our legal obligation to review and adopt an annual budget. Second, budgetary controls provide management with an effective means of managing the financial activities of a particular functiorr or departrnent. Activities of the general fund, debt service funds, and major grants in existence at the beginning of the fiscal year, internal service funds, enterprise funds, and other special revenue funds are included irr the annual budget. The General Fund, Debt Service Fund, Compensated Absences, Public Health Fund, Law Errforcement Officers Standards and Education Training (LEOSE), Local Seized Property Fund, Court Technology Fund, Court Security Fund, and the Public Improvement Districts budgets are legally adopted arrd represent appropriation of funds. The internal service fund budgets and enterprise fund budgets are for management purposes only and do not represent appropriations. Grants included in the budget are estimates included for presentation purposes only to give the budget reader a better understarrding of the financial scope of the entire organization. Budgets are adopted for grarrt funds at the time formal acceptance of the grants is made by the City Council, such budgets generally being adopted for the time period covered by each grant. The City prioritizes the fbnding of capital projects on the basis of five-year capital irnprovement plans. A capital improvement is any expenditure for the purchase, construction, replaccmcnt, expansiott, or nrajor renovation of the physical assets of the City when the project is relatively expensive (nrore than lil

$25,000), long-term, and permanent. Some common examples are streets, libraries, traffic signal systems, fire stations, specialized equipment, and waterand sewer lines. Capital needs of less than $25,000 (minor replacement items) are provided for in the depaftment's annual budget. The first year of the five-year plan is the City's annual capital budget, which is approved by the City Council, along with the annual operating budget. Capital Improvement expenditures are controlled by means of individual project appropriations, and all funds needed to complete a project are reserved no later than the inception of the project.

As an enhancement of budgetary controls over expenditures, the City also maintains an encumbrance accounting system, which assures that adequate funds are set aside as commitments are made in the form of purchase orders. Open encumbrances for both purchase orders and construction contracts are repofted as reservations offund balances at year-end. Budget and Financial Reporting:

The City of Amarillo was awarded the Certificate of Achievement for Excellence in Financial Reporting for our 20l7ll8 Comprehensive Annual Financial Report (CAFR). In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR. Moreover, the CAFR must satisff generally accepted accounting principles, applicable legal requirements, and the Government Finance Officers Association's (GFOA) program standards.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to program requirements, and we are submitting it to the review process of GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA's Distinguished Budget Presentation Award for its annual budget document. In order to qualifo for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. Our latest budget has been

submitted for review, and we expect that our budget will earn the GFOA's Distinguished Budget Presentation Award. One of our most significant financial achievement this year is affirmation by Standard & Poor's of the City's General Obligation and the Water & Sewer Revenue Bond debt AAA rating. The City was rated a AAA debt rating from Standard & Poor's on the Drainage Utiliry System. The City enjoys a Moody's ratings of Aal on both the City's General Obligation debt and Water & Sewer Revenue bonds. The AAA rating is the Standard & Poor's highest rating debt rating. The Aal Moody's rating is one-third step below Standard and Poor's. The City also has an A+/Stable rating from Standard & Poor's on its Hotel Occupancy Tax revenue bonds. Cash Management and Investments:

State statutes govern the City's investment policies as well as the City's own written investment policy and strategy. In accordance with state law and the City Investment Policy, the City's investment objectives are to preserve capital, to provide Iiquidity, and to optirnize earnings within the constraints of capital preservation and liquidity. Ciry funds are deposited irr an FDIC-insured bank located within the City. Perrnissible investrnents include the following:

l. Interest-bearing accounts and bank money rnarket accounts at the City's authorized depository. Certificates of deposit including CDARS (Certificate of Deposit Accourrts Registry Service).

2. Obligations of the United States or its agencies and irrstrumentalities, The investment in agencies and instrumentalities is Iirnited to750/o of the portfolio.

3. No-load money market mutual funds that are corrtirruously rated AAA or AAAm by at least one lv

nationally recognized rating agency; is regulated by the Securities and Exchange Commission; complies with the requirements of a money market mutual fund; has an average weighted maturity of less than two years; has either a duration of: (a) one year or more and is invested exclusively in obligations approved under the Public Funds Investment Act; or (b) less than one year and the investment portfolio is limited to investment grade securities, excluding asset-back securities; and includes in its investment objectives the maintenance of a stable net asset value of $ 1.00 for each share.

4. Taxable municipal securities rated not less than AA- or its equivalent by a nationally recognized

rating agency. The total investment in taxable municipal securities is limited to 10% of the portfolio. To the extent that the investment in taxable municipal securities is not fully utilized in the portfolio, the unused portion can be invested in agencies' securities in addition to the 75o/o limit.

The City will not employ any investment strategy that is inherently risky and will not invest in any securities that are inherently risky. Prohibited securities include mortgage-backed securities that pay only interest, mortgage-backed securities that pay only principal, obligations where the interest rate is determined by an index that adjusts opposite to changes in a market index, obligations related to foreign currency or foreign market interest rates or indices, and obligations with maturities greater than five years.

The City's demand deposits, time deposits, and certificates of deposit balances that exceed FDIC insurance are collateralized by securities held by the Federal Reserue. The City uses third-party safekeeping for its investment securities. Long-term Financial Planning:

As mentioned above, in conjunction with our annual operating budget, we develop a five-year capital improvements estimate. When feasible, the City uses pay-as-you-go financing for capital. When debt is needed to finance capital assets, the City strives to schedule bond issues so that level payments are made over no more than the useful life of the assets. Historically, the excess of revenues over expenditures are eannarked for future capital needs, and the available resources of the general fund are transferred to capital projects funds during the budgetary process. Recent Debt Issuances:

While the City historically uses available funds from the excess of revenues over expenditures to provide for its major capital improvernent needs, our capital needs exceeded our ability to generate internal funds for capital. Starting in 2007, we had several debt issuances. Our new air terminal was funded with approximately $23 million from grants, approximately $8 million frorn Airport reserves, and $16,140,000 in certificates of obligation (COs). While these certificates have an ad valorem tax pledge, it is the City's intention to repay the certificates from an Airpon Passenger Faciliry Charge (PFC). The Federal Aviation Adrninistration (FAA) approved the new S4.50 PFC in 2008. The PFC, along with sorne future entitlement funds, should be sufficient to service the Airport COs, and the City should not have to levy a tax to support this debt in the future.

Our Potter Counry Well Field came into service in FY 2012/13. The well field is capable of producing up to 22 million gallons of water per day. Eventually, the well field can be expanded to produce up to 40 rnillion gallorrs per day. The Poner County Well Field project is the largest single capital project in our history. The Potter Counry Well Field is a new water supply for the City of Amarillo. The new well field will be able to supply the Ciry's current water rreeds without using our surface allocation from Lake Meredith and provide for future growth, The Water & Sewer Systern committed $5.7 million to the well field. In 2009, we were successf'ul in obtaining funds from the Texas Water Development Board (TWDB) in two issuarrces to cornplete the project througlr the Water Infrastructure Fund (WIF)

program. In both issuances, the TWDB purchased the City's COs and is the only bondholder. The first issuance was for $38,885,000 and the City received an overall interest rate of 2.10% on Z0-year debt. The City increased its Water & Sewer Rates by l0% to service the debt. In the second issuance, the City received 1.97% on $47,400,000 of 20-year debt. We added a high service pump station to our water treatment plant. The project was shovel ready and qualified as a "green" project due to the projected energy savings. Using current pricing, the new pump station should save approximately $200,000 in electricity. The City was also able to take advantage of the American Recovery and Reinvestment Act (ARRA) along with funding from Texas Water Development Board. The City issued $18,075,000 in COs at zero percent interest. The project was substantially complete at the end of calendar year 2011. The City had to increase water and sewer rates by for the increased debt serryice on the Pofter County Well Field project and the high l0% in

2}l}/ll

service pump station. 2010 Certificates of Obligation:

The City also received funding from the Texas Department of Transportation (TXDOT) for a much-needed bridge over the BNSF railroad tracks at the intersection of S.E. Third Avenue and Grand Street. Crand Street is one of the main north-south arterial streets for the east side of Amarillo. When the Grand Street crossing is blocked due to rail traffic, the other main north-south arterial, Eastern Street, is often also blocked. The bridge remedies the problem on Grand Street and even helps relieve congestion on Eastern Street, as well. The project cost approximately $5.67 million, with most of the funding coming from the Amarillo MPO and TXDOT Amarillo District ARRA funds (about $4.2 million). The balance of

the project cost was paid from City funds. Potter County contributed $241,000 to the project. The City issued $1,392,000 of Recovery Zone Build America Bonds, Series 2010 for its portion of the project cost. These bonds were issued with a true interest cost of 3.194%. The City's portion of the project was approximately $1.2 million; the balance of the bond proceeds will be used for street improvement projects within the Recovery Zone. With the Recovery Zone Build America Bonds, the City receives an interest credit of 45oh of the interest paid foreach interest payment made. This credit was used in calculatingthe above,3.l94%otrue interest cost. These credits are not exempt from the "fiscal cliff' legislation and were reduced slightly. However, the issue size is so small that it did not significantly impact the tax rate for debt service.

201I Certificates of Obligation: During January 201l, the City issued the 20llA COs in the amount of $3,750,000 and the 201lB in the amount of $2,210,000. The proceeds from the 20llA issue are for improvements to the Ross COs Rogers Golf Course. These certificates have a continuing fax pledge, but the City anticipates the issue will be repaid from golf course improvement and renovation fees. The proceeds from the 20llB issue are for improvements in the TIRZ #1. These issues have a continuing tax pledge, but the City anticipates the issue will be repaid from revenue generated from the TIRZ # L 201 I Water & Sewer Revenue Bonds:

In August 201 l, the City issued $16,300,000 in Water & Sewer Revenue Bonds. The bonds were issued to purchase additional water rights adjacerrt to the City's existing water rights in Roberts County. The City purchased 32,350 acres of water rights in Ochiltree Courrty, which is north of the City's existing water rights in Roberts County. When the City develops these rights, the City will have a very large contiguous area to develop. 2012 Debt Issuances:

On Decernber 12,2012, the City closed on two debt issues, The first debt issue is $6,260,000 in Cornbination Tax and Drainage Utility Revenue COs. The 2012A issue is rnainly for drainage improvevt

ments on Farmers Avenue. The City is leveraging state funds and the state will participate with approximately $1.7 million for paving improvements on the Farmers project. There should still be some remaining funds for other drainage improvements. In addition to the tax pledge, the Drainage COs have an unlimited net pledge of the Drainage Utility System of 1.25 times net revenue. The City intends to fund the debt entirely from the Drainage Utility and not levy a property tax for the COs. Thus, the debt is structured similar to the City's Water & Sewer revenue debt. The City needed the tax pledge because there had not been one full month of Drainage Utility revenue when the debt was issued. However, the City needed to fund the Farmer's project or risk losing state funding.

The second issue in 2012 is to purchase rolling stock for our fleet services. Rolling stock replacement was delayed during the recent economic downturn. The 20128 issue has a five-year maturity and the proceeds will be used to purchase rolling stock with at least a five-year life. The 20128 issue is for $2,790,000 in Combination Tax and Sanitation Revenue COs. The COs have a $1,000limit pledge of Sanitation Revenues and a property tax pledge. The City intends to pay for the COs from Fleet Services rental revenues and not lely a tax for the debt. Using the CO structure, the City got very attractive rates on the debt. The 2012,{ issuance has a 20-year maturity and has a true interest cost of 1.763%. The 20128 has a five-year maturity and has a true interest cost of 0.686%, 2013 Water and Sewer Revenue Bonds:

On July 10,2013, the City issued the Waterworks and Sewer System New Series 2013 Revenue Bonds in the amount of $1,310,000. The series has a ten-year maturity and a true interest cost of 0.39%. The proceeds will be used to fund the design of the Osage to Arden Road pipeline. 2014 Debt Issuances:

During 2014, the City had four debt issuances. The first was the issuance of the Waterworks and Sewer SystemRevenue bond's New Series 2014 CWSRF in the amgu{9{_$!,495,000. These bonds were issued thru the Clean Water State Revolving Fund program of the TWDB. This series has a 20-year maturity with a true interest cost of 1.94%. These funds will be used for the.design and construction of Georgii Street Interceptor project. This project will eliminate a lift station and ensure prgper operation of

the c-ollection system in ['he-area. Tliis bond issue will also fund the planning and design for the replacement of Lift Station 32.

The second debt issue was $6,080,000 of Drainage Utility Revenue Bonds with a true interest cost of 3.23yo, including maturities through 2034. This issue is rnainly for the T-Anchor Excavation project. The third issue was $2,650,000 of Tax Note, Series 2014 bonds with a true interest cost of 0916% and maturities through 2019 to purchase rolling stock for the City's Fleet Services. As mentioned previously, during the economic downturn the City delayed the replacement of rolling stock. This issue will allow the City to replace existing equipment. The funding for this issue will come from the Fleet Services fund. The final issue was the 2014 COs of $2,260,000, with a 2O-year maturity and 3.22%o interest to pay for park improvements. This issue will be funded by assessments to the property owners of the Colonies Public Improvement District arrd the Greenways Public Improvement District. 2015 Debt Issuances:

On October 2,2015 the City issued the City of Amarillo, Texas, Waterworks & Sewer System Revenue Bonds, Series 2015 in the amount of $17,195,000 and the City of Amarillo, Texas, Waterworks & Sewer System Refunding Borrds, New Series 2015A in the amount of $21,145,000. The 2015 series was issued through the TWDB at very favorable interest rates with a true interest cost at l.l7%o. The proceeds will fund a water transfer supply pipeline frorn the Osage Water Treatment Plant to the connection for the Arden Road Pump Station, and the addition of a pump and ground storage tank for the Arden Road Pump Station. The 2015A series refunded the 2005,2006 and 2006A bonds for a net present value benefit of $2,623,562 with a true irrterest cost of 2.38%. vil

2016 Debt Issuances:

On April 13,2016 the City issued the City of Amarillo, Texas, Hotel Occupancy Tax Revenue Bonds, Taxable Series 2015 in the amount of $11,995,000 with maturities through 2043 and a true interest cost of 4.1196%. The bonds will be used to construct and equip a downtown Amarillo parking garage located in the vicinity of the City's convention center facilities. 2017 Debt Issuances:

During 2017, the City had four debt issuances. On February 22,2017 the City issued the City of Amarillo, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2017 in the amount of $6,940,000. The bonds were issued for 20 years with a true interest cost of 2.736%. The bonds are being used to acquire a two-way radio communications system for public safety. Concurrently, the City issued $15,110,000 of General Obligation Refunding Bonds, Series 2017 to refund the CO 2007 bonds, with a true interest cost of 2.219% and maturities thru 2027. The 2017 GO Refunding bonds refunded the CO 2007 bonds for a net present value benefit of 52,422,114. The third issuance was on May I1,2017 for $21,280,000 in General Obligation Bonds, Series 2017 with a true interest cost of 3.18% and maturities ranging through 2042.Proceeds from these bonds are being used to fund year one of a five-year capital improvement program that was approved by voters in the November 2015 bond election. The fourth and final issuance for 2017 was also on May 11,2017, for $31,005,000 in Waterworks and Sewer System Revenue Bonds, Series 2017, issued for 20 years with a true interest cost of 2932%. These bonds are allowing the City to address much needed infrastructure projects for water and sewer. 2018 Debt Issuances:

During 2018, the City had five debt issuances. March 20,2018 the City issued $38,835,000 of Hotel Occupancy Tax Revenue Bonds, Taxable Series 2018 to construct and equip a multiuse facility. The bonds were issued for 30 years with a true interest cost of 4.30%. Then on July 18,2018, the City issued the General Obligation Bonds, Series 2018 in the amount of $22,145,000 with a true interest cost of 3.466%. These maturities range through2043. This is the second year of five anticipated bond issues associated with the November 2016 bond election to address streets and public safety capital needs. Concurrently on July 18,2018, the City issued $3,000,000 in Certificates of Obligation to pay for the improvernents to the Colonies. The Certificates of Obligation mature in 20 years at3.27o/o interest, The fourth and fifth issuances were on July 19,2018 and will allow the City to address much needed infrastructure projects for water and sewer. The fourth was the Watenvorks & Sewer System Revenue Bonds, New Series 201 8A in the amount of $ 12,500,000 through the TWDB with a true interest cost of 1.34% for 20 years. The City has enjoyed very favorable financing through the TWDB. The fifth issuance was the Waterworks and Sewer System Revenue Bonds, New Series 20188 in the amount of $ 14,610,000. The proceeds were year two of a five year capital plan totaling $ 140 million. The bonds were isstred for 20 years at a true interest cost of 3.238%. Our Local Economy:

Historically, major industries of the area include grains, cattle, beef processing, natural gas, oil, helium and other petroleum by-products, refining operations, and nuclear weapotls processing. These industries are still very irnportant to Amarillo; however, Amarillo has a more diverse economy. Food processing, defense industry, manufacturing, distribution, traffic and transpoftation, general retail, banking, criminal justice, rnedical facilities, administrative and back-office operations, and higher education are all important industries in Anrarillo.

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Amarillo is also a regional trade center for a very large five-state region. Tltus, retail sales, banking, and rnedical services are significant activities in Amarillo. Moreover, because of Amarillo's centrallocation in the United States and being traversed by I-40, l-27, and State Highway 287, traffic and transportation and travel and tourism are important industries to Amarillo'

Natural gas and petroleum are major industries in the City of Amarillo and the Panhandle' There was a decrease in the price of oil compared to last year, According to the Amarillo Economic Analysis, prepared by Amarillo National Bank, September 2019 oil was down 13% at $58.48 per barrel compared io September 2018 at $67.04 per barrel(r). Natural gas prices decreased 10% compared to last year. Natural gas was at $2.g7 per mmbtu last year compar-d to $2.67 per mmbtu at September 2019(r). Since we are Uottr a producer and a consumer of natural gas, part of our economy benefits from lower gas prices while it is detiimental to another part of our economy. Increases in natural gas prices mean higher royalty payments to landowners, but it atso means higher energy costs for our area farmers that use natural gas

for irrigation and other industries. While there is some benefit to lower oil and gas prices to the economy in general, changes in oil and gas prices have a direct impact on drilling activity in the Panhandle..In September 2019(r), there were 8 act'lve'drilling rigs comparedto22 in 2015<i),9 in 2016(r), l3 in 20l7tr), and 25 in 2018(r)' According to the Texas Cattle Feeders Association, our cattle feeding area produces about 6,000,000 fed cattle annually, which is about 28o/o of the nation's beef. Cattle prices dropped dramatically in 2016. Fed cattle prices were down slightly from last year at $99.96 per hundredweight compared to $ 107.85 at September 201 8(r).

Dairies have become major industries in the Panhandle. Dairies remain profitable; however, September 2019 milk prices were up to $17.00 per hundredweight compared to $14.00 at September 2gi gttl. The majority of principal area crops cannot be grown without irrigation and natural gas is the main fuel used for inigation. The major crops grown in the Panhandle are wheat and corn. Corn prices are up to $4.05(') per bushil at September 2019 compared to $3.83(r) last year. Wheat prices were down 30% from prior year, at $3.89 per bushel at September 2019. At September 201i, wheat had significantly increased to $7.67(') per bushel and continued to increase to $8.+8 per bushel at September 2012(r), Wheat was at $6.85 per bushel at September 2013, compared to $5.95 per bushel at September 2014(r), $4.43 per bushel at September 20l5tt), $3.23 per bushel at September 2016(r), $3.7f per bushel at September20lT(r), and $5.40 per bushel at September 2018(r)' Cotton was flat at $74.00(l) cents per pound at September 2019 compared to $74.10(r) cents per pound at September 2018(l), $71.40(r) cents per pound at September20.l7, $61.30(r) cents per pound at b.pterb., iOte, $eO.t0(r) cents per pound at September 2015, $66.90(r) cents per pound at September 2014 and $83.36 cents per pound in 2013(r). Historically, cotton has been grown south of Amarillo. However, new hybrids can be grown in our area.

Amarillo Economic Development Corporation:

The Amarillo Economic Development Corporation (AEDC) is the primary economic

development engine of the Amarillo comrnurrity, focused on industry growth and job ueation through business attraction and retentiorr initiatives. In 1989, the citizenry of Amarillo approved a measure to increase the sales tax rate by one-half cent to be dedicated to economic development programs' The vote proved to be a proactive one, as Amarillo was the second city in Texas to approve the sales tax for economic development in the first year the program was made available through the Texas Legislature' The missiorr of AEDC is to attract businesses to Amarillo which offer highly-skilled, highly-paid positions; to expand and retairr existing local businesses in Amarillo; and to create a business environmettt tonducive to entrepreneurship. The AEDC targets companies whose primary function is to produce goods

or services that are then sold outside of the immediate trade area, thereby introducing new monies into the local economy. This strategy is met by implementing aggressive business recruitment programs, local business retention and expansion programs, and protnoting the Amarillo, Texas brand worldwide.

In FY20l9, AEDC approved a job creation grant of up to $1.25 million to Asset Protection Unit, Inc. for the expansion of their data mining and overpayment recovery business. AEDC approved a developer incentive with Amarillo Morning, LLC to partially rebate up to $260,000 of the land sales price based on capital investment and jobs related to the project. AEDC approved an investment into the WTAMU Enterprise Center Accelerator Program in the amount of $200,000 per year for a 3 year period. This agreement provides for the establishment and operation of the Accelerator Program to assist participant businesses with intensive services intendedto gairr proof of concept and revenue. Finally, the AEDC approved the Second Amended and Restated Agreement between Bell Textron Inc. and the AEDC. This takes the agreement from a lease arrangement where the AEDC owns the property and transfers ownership to Belland the AEDC will have notes and a Deeds of Trust from Bellthat secure the communities interest in the project. The performance obligations of both parties remain the same as under the previous agreements.

The AEDC continued its partnership with West Texas A&M University through the EnterPrize Challenge, a local business plan competition funded by AEDC and facilitated by the WT Enterprise Center. The 24th annual Amarillo EnterPrize Challenge awarded five grants totaling $405,000 to new and emerging companies expected to create more than 24 new jobs and make substantial investments in the regional economy. To date, 96 businesses have received cash grants totaling more than $6.7 million, resulting in902 new jobs and $156 million in new revenue to the Amarillo economy. By contractual agreement, Texas Panhandle Regional Development Corporation (TPRDC) acts as the small business financing arm of AEDC. TPRDC provides small business financing for owner-occupied commercial real estate. This Certified Development Company approved three Small Business Administration 504 loans totaling over $4.8 million, which leveraged $2.4 million in bank financing and $600 thousand in owner equity. For the year, this program was responsible for the creation of 40 new jobs. TPRDC also funded four loans in 2019 totaling just under $3.3 million. Major Industries and Employers:

The Amarillo Chamber of Cornmerce lists 23 employers with 400 or more employees in Amarillo, This is a very diverse group of employers consisting of governmental entities, manufacturing, defense, industry, food processing, healthcare, general retail, traffic and transportation, energy companies, public utilities, higher education, financial services, retiremetrt services, the travel industry, and computer services(l).

Two of our largest employers are in the defense industry: Bell Helicopter and CNS Pantex. The Pantex Plant, located l7 miles northeast of Amarillo, itr Carson County, is charged with maintaining the safety, security and reliability of the nation's nuclear weapons stockpile. The Pantex Plant is managed and operated by CNS Parrtex for the U.S. Department of EnergyNational Nuclear Security Adrninistration. The Pantex mission is Securing America as the NNSA's production integrator and provider of the nuclear deterrent to the Depaftment of Defense; serving the Nuclear Security Enterprise through our highly reliable people, processes, infrastructure, and business systetns. Pantex Engineering has provided technology solutions for the manufacturing, evaluation, and testing of nuclear explosives, joint test beds, and other special nuclear materials. As the nation's primary site for assernbly and disassembly of nuclear weapons, Pantex also provides major suppoft through the External Mission Center to the DoD and the (3). (2). Approximately 3,203 people are employed at Pantex Uniied Kingdom (UK) Ministry of Defense

In 1998, Bell Textron announced its decision to locate its V-22 Tiltrotor Assembly Center in Arnarillo, Texas. The initial capital investment by the AEDC was $30,000,000 for the construction of a world-class facility. Overthe past l8 years, the invested amount in the Bell Textron Amarillo Assernbly

Center by the AEDC on behalf of the Amarillo community has surpassed $120,000,000, resulting in a campus of more than 1.5 million square feet under roof. The company has diversified its product offerings out of the Amarillo Assembly Center due to the significant level of support the community has provided. BellTextron's Amarillo Assembly Center builds the revolutionaryY-22 Osprey, the UH-l Huey, and the formidable AH-l Cobra. The AEDC has issued a series of bonds to finance the project. Under the terms of the lease, Bell's lease payment is abated so long as they meet local compensation and spending requirements. Amarillo is very proud of Bell Textron and the continued success their company has created for the region.

Bell continues to expand in Amarillo by offering new product lines for its customers around the world. In 2013, Bell constructed the first company-owned facility at the Amarillo Assembly Center. This 275,000-square foot, state-of-the-art building houses the 525 Relentless program. The 525 Relentless is a five-blade commercial helicopter primarily used for offshore oil and gas exploration, firefighting and emergency medical evacuations, paramilitary operations and VIP logistics. To assist Bell with the 525 Relentless project, City officials approved a84.2 million AEDC investment in the new facility. Textron, Bell's parent company, provided the remaining $24.8 million for the facility. ASARCO was organized in 1899 as American Smelting and Refining Company. Originally a consolidation of a number of lead-silver smelting companies, the Company has evolved over the years into an integrated producer of copper and other metals. The Amarillo Plant refines copper and precious metals. The plant consists of an anode department, tankhouse, refined casting departments, precious

metals refinery, a copper scrap facility, a precious metals scrap handling facility, nickel plant, selenium/tellurium plant and support facilities. The Company's Amarillo Copper Refinery in Amarillo together with the SX/EW plants at the Ray and Silver Bell mines produce approximately 315,000,000 pounds of refined copper per year. ASARCO employs 300(3) workers in Amarillo.

Other manufacturing operations in Amarillo include Owens Corning Fiberglass, which employs about 586(3) people. Owens Corning produces fiberglass for building products. Amarillo Gear has been in continual operation in Amarillo since l9l7 and manufactures the largest range of spiral bevel right-angl-e gear drives in the world since 1934. Amarillo Gear is a Marmon Walter/Berkshire Hathaway Company(o) and emPloYs 172(3).

International Paper Company produces containerboard packaging in Amarillo and employs I l0t3)

people. Crouse-Hinds is a division of Copper Industries. Cooper Crouse-Hinds has grown into a diversified worldwide provider of electrical products that perform reliably and safely in harsh and hazardous environments.

Food distribution is also an important industry to Amarillo. Affiliated Foods employs 1,205(3) workers in its facility. Ben E. Keith, a diitributor of food service products, employs 259{s) persons. One of our largest single employers is also in the food industry. Tyson Foods has 4,400(l) employees operating its plant in northeast Amarillo. Both ranching and cattle feeding are important to our area. There are several advantages to cattle feeding operations in our area. The area's central location reduces transpoftatiotl costs. There are locally grown feed grains and volume shipments frorn the Midwest which ensure a plentiful supply of feed. Relatively mild winters and good summer weather have helped the three-state area earn its reputation as "Cattle Feeding Country." Local lenders in the area understand the industry and are willing partners. According to the Texas Cattle Feeders Association, 30yo of the nation's beef is produced in the Texas Panhandle. Both Cactus Feeders and Friona Indusries are headquartered in Amarillo. Cactus Feeders has ten large-scale cattle feedyards across the Texas high plains and southwest Kansas. Since its founding in 1975, Cactus Feeders has grown into a $750 rnillion company that employs approxitnately 800 peopfe across six states. Cactus Feeders is the world's largest privately owtred cattle feeding operation(a). Founded in 1962, Friona Industries owns six state-of+he-art feedyards in northwestern Texas with a feeding capacity that ranks thern in the top ten feedyards worldwide(5).

Arnarillo is a regional medical center for a five-state geographic region and the health care industry is one of the largest ernployers in Amarillo. The Harrington Regional Medical Center in Amarillo was the first specifically designated city hospital district in Texas. From the beginning, the Medical Center was planned to include health care, the training of doctors and nurses, and tnedical research programs. The Harrington Regional Medical Center had 41O-acre campus and was supported by the Don and Sybil Harrington Regional Medical Center at Amarillo. The Medical Center's affiliated members include resident (on-campus) and non-resident (off-campus) patient care, patient service research, and education facilities. Each of these members provides vital services to our area(8). The Medical Center complex is home to several of our major employers: Baptist St. Anthony's Health Care System (BSA) with 3,200t3) employees and Northwest Texas Healthcare System (NWTHS) with 1,860(3) employees. Both BSA and NWTHS offer integrated acute care hospitals. BSA offers a full range of medical and surgical services at their acute care patient facilityttt) located within the Harrington Regional Medical Center. BSA is also a partner in Physicians Surgical Hospitals, LLP, which offers two additional acute care hospital facilities near the Medical Centeilr). For 2018, BSA is the second largest taxpayer.

NWTHS is a designated tertiary care and teaching institution, academically affiliated with Texas Tech University, licensed for 495 acute beds, including 106 mental health beds, and 4 at the Northwest Texas Surgery Center. The emergency department is a certified as an Advanced (Level-lll) Trauma Center, treating approximately 57,000 patients per year. Comprised of the main hospital, children's hospital, heart hospital, and an affiliated free-standing surgical hospital, NWTHS also serves as a regional treatment center, providing emergent life flight services to patients within the Texas Panhandle. NWTHS is one of our largest taxpayers(r2).

Our VA Medical Center employs approximately l,2l5tr) people. The Amarillo VA Health Care System, a division of the Southwest VA Health Care Network, provides prirnary specialty and extended care of the highest quality to veterans throughout the Texas and Oklahoma panhandles, eastern New

Mexico, and southern Kansas. Approximately 25,000 patients are treated annually. The health care system maintains 55 acute care inpatient beds for general medical, surgical, and intensive care. Geriatric and extended care is provided in the 120-bed skilled nursing home care unit. A modern ambulatory care center arrd rnedical arts building facilitates the delivery of primary care, specialty care, and preventive health services. The Amarillo VA Health Care System also ensures health care is accessible to those veterans residing in rural areas through three community-based outpatient clinics located in Lubbock, Childress, and Dalhart, Texas, as well as Clovis, New Mexico(6). The VA offers a wide array of mental health services, including substance use treatment and programs for the homeless. The VA also boasts an intensive mental health case management program.

Other large medical employers include the Texas Panhandle Centers Behavioral & Developrnen-

tal with 315(3) employees, Panhandle Eye Group with 200(3) employees, Family Medicine Centers with 250(3)ernployees, Amarillo Heart Group with 175(3)ernployees, the Don & Sybil Flarrington Cancer Center with 175(3) employees, Regence Health Network with 155(r) ernployees and Physicians Surgical l-lospitals with I 23(3) employees.

Mild weather, excellent medical facilities, and low living costs make Amarillo an excellent location for retirement living. There are several large retirement communities in Baptist Community Services/Park Central with 401(3) employees, Ussery-Roan Texas State Veterans Home with 100(3) employees, the Craig Senior Living with 137(3) employees, Heritage A Skilled Nursing and Rehab naCility with 100(3)employees, and Vibra Acute Medical Rehabilitation Hospitals with 200(3). For over 30 years, Insurance Management Services (lMS) has been a leader in Health Benefit Administration for employer groups of all sizes. IMS is locally owned and operated exclusively out of Amarillo(r0)and employs 146(3). IMS started as a small business with manual clairns administration and has evolved into a full-service, third-party adrninistrator with 45,000 covered lives(10). xil

Major retail stores draw customers from a wide region into our city. Amarillo is curently home to four Wal-Mart supercenters, two Wal-Mart Neighborhood Markets and two Sam's Club. Wal-Mart employs a total of 1,359(3) people and Sam's Club ernploys 150(3). United Supermarkets is a large employer and employs a total of l,604tll in their seven stores in Arnarillo. Toot'tr Totum has several convenience stores in Amarillo and employs 1,000(3).

Customer support and back office operations are also large employers, Maxor National Pharmacy Services Corporation is a pharmacy benefit management company headquartered in Amarillo and has 770(3) employees. The American Quarter Horse Association is also headquartered in Amarillo and employs 212{l). The Atmos Energy customer support center in Amarillo employs 3741t).

Amarillo also serves as a regional banking center. Bank of America, Citibank, Chase, and Wells Fargo have branches in Amarillo, along with regional banks and local banks. The banking industry is very important to Amarillo and banks are some of our larger employers. Amarillo National Bank is on our list of top ten taxpayers and employs 663(3). Happy State Bank employs 349tt). Herring Bank employs 100(3) and Bank of America employs 105(r). The Texas Department of Criminal Justice has two prison units in Amarillo and is a major employer. The two prisons provide 313tr) jobs. Higher education is a major employer in the Amarillo area. Our community college, Amarillo College, offers both vocational training and associate degree programs and has 642(3) employees. Texas Tech University has a large presence in our community. The Texas Tech Health Science Center in Amarillo has both a medical school and pharmacy school in Amarillo and employs 840(3), Texas Tech University provides training in our community for medical doctors earning specialty accreditation in family medicine. West Texas A&M University in nearby Canyon, which is a part of the Texas A&M University System, employs 801 full+ime employees(3). West Texas A&M University also has a campus in Amarillo. As mentioned earlier, the oil and gas industry is important in the Panhandle and enertry companies are also major employers. Valero Energy Corp. employs 105(3) and Davidson Oil Company employs l0g(3).

The traffic and transportation industry has been important to Amarillo from its beginning in 1887. Amarillo was founded near a bend in the Fort Worth and Denver (FW&D) Railroad tracks, which were under construction. The Burlington Northern Santa Fe Railroad is still one of our major employers with 805(3) employees. Trucking is also important to Amarillo. Kimrad Transport, LP, employs 126(3\ Baldwin Express, Inc, and Plains Transportation, Inc. are also in the trucking industry. Support for the trucking industry is a larger employer in Amarillo and includes companies like Amarillo Truck Center, Summit Truck Group, and Bruckner's.

Today, Arnarillo's airport has the third longest commercial runway in the world, There are numerous direct daily flights from Arnarillo to major hub airports having direct flights to foreign countries. You can get to Dallas-Ft. Worth Regional Airport in one hour; Houston Intercontinental in about arr hour and a hall Denver International in arr hour, Las Vegas in two hours, and LAX in four hours. Amarillo is a hub for major highways that connect to the rest of the region: I-40 to Oklahoma City and Albuquerque, U.S. 287 to Dallas and Fort Worth, and U.S. 87 to Denver(?). Because of Amarillo's location on Interstate 40, Interstate 27, and State Flighway 287, along with attractions in and nearby Amarillo, hospitality and tourism are sigrrificant industries. Approximately 9.5 million people travel through Amarillo annually, dining in almost 500 local restaurants. The Amarillo hotel industry has 78 hotels with approximately 6,800 rooms to rent.

Amarillo has an amusement park and an art museum. The Atnerican Quarter Horse Museum is located on Interstate 40. The Panhandle Plains State Historical Museum is in nearby Canyon, Texas. Palo

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Duro Canyon and the Alibates Flint Quarry are also nearby. Wonderland Amusement Park is located in north Amarillo.

Two of the larger employers are engineering firms. Talon/LPE is a full-service environmental consulting and engineering corporation and Zachry Engineering Inc. employs 185(r). The construction industry is also a major employer. J. Lee Milligan, Inc. employs 225(3) and L. A, Fuller & Sons Construction Inc. employs I l5(3) people.

In summary, Amarillo's local economy is broadly diversified. While Amarillo has several large industries and employers, no single industry or employer dominates the Amarillo economy. Current Economic Climate and Trends:

Amarillo has fared much better than most cities during the recent recession. We had neither a reduction in service nor any reduction in available hours to our citizens. In 2011, the City's Water & Sewer revenue debt was upgraded to AAA by Standard & Poor's and in 2014 the City's Drainage Utility revenue debt was rated AAA by Standard & Poor's. Amarillo is one of the few cities that has AAA General Obligation debt, AAA Water & Sewer revenue debt AAA Drainage Utility revenue debt by Standard & Poor's. The City has also been assigned an A+/Stable rating by Standard & Poor for the Hotel Occupancy Tax Revenue Bonds. Our sales tax for 2018/19 came in at $59.2 million, which is approximately $1.8 million, or 3.lYo more than 2017/18 sales tax of $57.4 million. Sales tax receipts remain very strong, with record receipts every year for ten years straight except for a small decrease in2017. The City feels that the significant increases in the 2013 and 2014 years were related to the May 2013 hailstorm. The City did see a drop in sales tax for2016/17. When preparing the2019/20 budget, the City included a2.5%o increase in sales tax estimates above the 2018/19 collections. The City's sales tax collections have trailed slightly below budgeted amounts for the first quarter of the 2019/20 fiscal year. Generally, sales tax is erratic on a month-to-month basis, with some months exceeding their coresponding previous year month and some

months being down compared to their corresponding previous year month. Amarillo's net hotel occupancy tax revenue saw a slight increase in 2018/19, recording approximately $6.a million, up from $6.3 million. The City had gross hotel occupancy tax receipts of $7.2 million and rebated $750 thousand to the convention hotel per the development agreement. Employment remains stable. Amarillo's unemployment rate is 23% compared to 2.8Vo last year and 3.lo/o the year before(l). Amarillo's unemployment was better than the state of Texas at3.3yo, and our national unemployment at 3.30/o(13). Water metered sales for 2018/19 decreased over the prior year by $6.3 million or ll.4Yo, after experiencing a large increase in revenues during 2017l18 as compared to 2016/17. Calendar year 2015 was the 4th wettest year in recorded history,20l7 was the l3tl'wettest year in recorded history, and 2019 was the l5tl' wettest year in recordcd history. In contrast, the Texas Panhandle received much less precipitation during 2016 and 2018. Water revenues can be significantly affected by the amount and timing of local rainfall. Rates were increased for the fourth tier structure for 2014/l5,by 3o/o overall fbr 2015/16 and by 3% overall for2016l17,20l7l18, and 2018120, Rates were increased in the 2013/14 by

2%o,it'tthepriortwofiscalyearsby ll%with 6%in20ll/l2and5oh in20l2ll3whichfundedthedebt service portion of the CRMWA water rights and the City of Amarillo water rights purchase. The Water and Sewer Fund netted $17.8 million in 2016/17, $27.4 million in 2017/l8,and $7.0 rnillion in 2018/19. Our property tax base continues to grow. As of January 2019, we had $13.1 billion in value compared to approximately $12.8 billion tlre previous year. In 2018/19, the City had $199 million in new property values compared to $237 million in2017l18. Building for new construction decreased for the 201 8/19 fiscal year. The City had $ 173.1 rnillion in perrnits cornpared to $289.1 million in 2017/18. Commercial permits decreased to $97.1 million in xlv

2018/19 compared to $138.9 million in2017/18. Residential permits also decreased to $76.0 million in 20l8ll9 compared to $150.1 million in 2017/18. The City did see an increase in building related to additions and repairs of $176.7 million in 2018/19 compared to $106.4 million in 2017/18. The City experienced a significant hailstorm event in May 2013, roofing permits increased significantly from $5.3 million in 20llll2 to $132.1 million in 20l2ll3 and $112.5 million in 2013/14. For the 2014/2015 roofing permits decreased with $25.5 million for the year, but were up again to $33.6 million in 2015/16, $40.4 million in 2016/l?, and $51.5 million in 2017/18. Roofing permits did decrease in 2018/19 to S40,3 million.

For 2018/19, the property tax rate increased over the prior year at $0.36838 per $100 oftaxable values up from $0.36364 in2017/18. This increase was to the interest and sinking portion of the tax rate to pay for the debt service associated with a general obligation bond issuance as approved by voters in a November 2016 bond election. The property tax rate increased by $0.00563 to $0.35072 in 2015/16 and remained flat in 2016/17. For the2019/20 budget, the prope(y tax rate increased $0.02013 to $0.38851 per $100 of taxable values. This increase is associated with the interest and sinking portion of the tax rate from the general obligation bonds approved by voters in the November 2016 bond election as well as with the addition of ten new firefighters to staff a second company station that was approved by voters

during the November 2016 bond election, the addition of three new Animal Management and Welfare positions to staffa new facility approved by voters during the November 2016 bond election, and with increased funding to streets, Amarillo continues to enjoy strong sales tax receipts and increasing property values. Amarillo has a very good quality of life and a lot of opportunity. Amarillo has a strong diversified economy with plenty

of jobs. We have major employers and industries for professionals, skilled craftsman, and laborers. Amarillo has the besGfunded Economic Development Corporation in the state and Chamber of Commerce to help attract and retain industry and support tourism. Amarillo has great public education and higher education. Amarillo has excellent medical facilities and very nice retirement facilities. We are well represented by national, regional, and local banks. Retail availability is diverse and strong in

Amarillo; anything you need and most everything you want can be found in Amarillo. We have amusement parks, regional parks, and neighborhood parks. We have sports teams, including a new AA baseball team, museums, area lakes, and other attractions. In short, Amarillo is a great place to live and work.

We wish to thank the Mayor and members of the City Council for their responsible manner of conducting the financial operations of the City.

Yours very truly,

Michelle Bonner Deputy City Manager - Public Safety and Organizational City of Amarillo, Texas

Mit City Manager City of Arnarillo, Texas J

Souroos:

(1) .A,marillo Economic Analysis. courtesy of Amarillo National Bank (2) CNS Pantox (3) Amarillo Chamberof Commercc includcs only full-timo omploycos (4) Cactus Fccdors (5) Friona Industrics (6) Amarillo VA Hoelth Cart Systom (7) Amarillo Economia Dovolopmcnt Corporation (8) llanington Rcgional Medical Center (e) Amarillo Goar (10) Insuranco Managomcnt Scrviccs (l l) Bapist St. Anthony's Hospial (12) Northwest Toxas Hospital (13) U.S. Burcau of Labor Statistics

xvi

CONNOR o McMILLON o MITCHELL. SHENNUM CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS

Indepentlent Auditor's Report The Honorable Mayor and Members of the City Council

City of Amarillo, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Amarillo, State of Texas (he City) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Staleme nls Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or erTor. A uditor Is Resp o ns ibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standuds, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate

801 Sourh Fillmore, Suirc 600, Arnrrillo, Tcxos 79101

. PO Box 15650, Amarillo, Tcxas 79105 . (806) 373.6661 . FAX (806) 372.1237 . www,cmmscp{,com

This page left blank intentionally.

discretely presented component units, each major fund, and the aggregate retnaining fund information of the City as of Septernber 30,2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change In Accounting Estimote

As discussed in Note I to the financial statements, 2019 the City had a change in accounting estimate. Our opinion is not modified with respect to this matter. Other Matters Re qu ire d Suppl e me n tary Informat ion

Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Budgetary Comparison Schedule - General Fund, the Schedule of Changes in Net Pension Liability and Related Ratios - Texas Municipal Retirement System, the Schedule of Contributions - Texas Municipal Retirement System, Notes to Required Supplementary Information Texas Municipal Retirement System, the Schedule of Changes in Net Pension Liability and Related Ratios Firemen's Relief and Retirement Fund, the Schedule of Contributions Firemen's Relief and Retirement Fund, Notes to Required Supplementary Information - Firemen's Relief and Retirement Fund, the Schedule of Net OPEB Liability and Related Ratios, Schedule of Changes to Net OPEB Liability and Related Ratios, Schedule of Contributions and Related Ratios OPEB, and Notes to Schedule of Required Supplemental Information OPEB on pages 5 through 21, and pages 126 through 138 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the lirnited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining statements, schedules and other information, supplementary information, and statistical section are presented for purposes of additional arralysis and are not a required part of the basic financial statements.

The combining statements, schedules and other information, and supplementary information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statetnents themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Aucliting Standards

In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2020 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.

Cuntzle,uYyacfru/lzz-fnU*Wl'l-' Amarillo, Texas February 25,2020

MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the City of Arnarillo's (City) Comprehensive Annual Financial Report (CAFR) presents an overview, through Managemcnt's Discussion and Analysis (MD&A), of the City's financial activities and performance during the fiscal year ended September 30, 2019. As the management of the City of Amarillo, we offer readers of these financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2019.

Financial Highlights:

o The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $9a5.81 million (net position). Of this amount, $899.08 million is invested in capital assets and infrastructure net of related debt. Of this amount, $38.27 million is restricted for debt service and other purposes. The remaining $8.46 million is unrestricted net position.

The City's total net position increased by $15.26 million before the increase in beginning net position for the prior period adjustment of $1.22 million related to capital assets, capital leases, and the establishment of a new Public Improvement District. Of this amount, a $0.34 million increase is attributable to governmentalactivities, and an increase of $14.92 million is attributable to net operating revenues of the business-type activities, which revenues are attributable to rates/fees established to fund both current operating needs and future development.

o As of the close of the current fiscal year, the City's governmental funds reported a combined ending fund balance of $l13.44 million. The General Fund's fund balance decreased by $2.85 million. The decrease in fund balance for capital projects funds was 540.27 million. This decrease was a result of construction being completed on general obligation bond and civic center improvement projects. Increases in other governmental funds, which include many grants and special revenue funds, were approximately $1.88 million.

At the end of the current fiscal year, the fund balance for the General Fund was $45.23 million, or 25.7% of total general fund expenditures. Expenditures and transfers out of the General Fund were $185.77 million, which amounts included transfers of general revenues to capital outlay, internal service funds, grant funds, compensated absences fund, and other funds which carry out general governmental operations. The General Fund remains in good financial condition with unassigned fund balarrce of $41.75 million.

o General Fund revenues increased over the previous fiscal year. The City saw an increase in sales

tax collections for fiscal year 2019. Total sales tax collections came in at $59.18 million, Sales tax receipts remain strong; fiscalyear20l9 saw an increase of approximately $1.77 million from fiscal year 201 8 collections, which set a new record in collections for the City. The City's sales tax collections have come in slightly lower than budgeted amounts, which included a 2.5% increase over the prior year, for the first quarter of the 2019120 fiscal year. Managemcnt keeps a close watch on sales tax collections to assist irr making changes during the year, if needed. The

City saw a slight increase in net hotel occupancy tax revenue in 2018/19, recording approxirnately $6.46 nrillion, up from $6.36 million. The City had gross hotel occupancy tax

receipts of $7.21 rnillion arrd rebated $750 thousand to the convention hotel per the development agreement. Electriciry and gas franchise fees came in lower than expected, $10.70 rnillion or a $975 thousand decrease frorn 201 7/ I 8. This decrease was related to the area experiencing both a mild winter and summer and from a rate decrease implemented by the electric cornpany due to fuel costs being down. The City also saw increased property tax collections of $45.11 million versus $44.06 million during 2017/18 due to increased appraised values in the City limits as well as a rate increase to fund voter approved generalobligation bonds from the November 2016 bond election. Sanitation fees and landfill charges came in approximately $467 thousand higher than 2017ll8 at $20.54 million. The Ciry saw irrcreased use at the landfill that affected these revenues.

Overview of the Financial Statements: Effective October 1,2001, the City adopted the provisions of Statement No. 34 issued by GASB. The financial presentation promulgated by that statement is very different from the governmental financial presentation that was generally accepted before the issuance of Statement No. 34. This discussion is intended to serve as an introduction to the City's basic financial staternents presented in conformity with this accounting standard. The City's basic financial statements are comprised of three components: l) government-wide financial statements, 2) fund financial statements, and 3) notes to the financiat statements. This report also contains required supplementary information, other supplementary information, and statistical information in addition to the basic financial statements themselves.

Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the finances of the City in a manner similar to a private-sector business.

The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net posilioin. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal periods (e.9., uncollected taxes).

Both of the government-wide financial statements distinguish governmental activities - functions of the City that are principally supported by taxes and intergovernmental revenues - from business-type activities - functions of the City that are intended to recover all or a significant portion of their costs through user fees and charges. The governmental aclivities of the City include public safety, streets and traffic, culture and recreation, solid waste, transit, urban redevelopment and tourism, as well as general government and staff services. The business-type activities of the City include a water and sewer system, drainage utility, and an international airpoft.

In addition to the financial statements of the City, the government-wide financial statements include information concerning six legally separate entities that are part of the City's financial reporting entity because of the City's oversight responsibility for their affairs. These entities include Amarillo Hospital District, Amarillo Economic Development Corporation, Amarillo-Potter Events Venue District, Amarillo Housing Financial Corporation, Amarillo Health Facilities Corporation, and Amarillo Local Government Corporation. This information is presented separately from that of the primary government (the City of Arnarillo) because such component units are not legally or functionally an integral part of the City. Fun<l financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate cornpliance with finance-related legal requirements. All of the funds of the Ciry can be divided into three categories: government f'unds, proprietary funds, and fiduciary funds.

Governmentfunds: Governmentalfunds are used to account for essentially the sarne functions reported as governmental activities in the government-wide financial statements. I-lowever, unlike the governrnent-wide financial statements, governmental fund financial statements focus on neur-lerm inflows and outflows of .spendable resources) as well as on balances of spendable resources available at the end of the fiscal year. Accordingly, these statements do not reflect capital assets or long-term debt, and they reporl capital outlay as opposed to depreciation and report proceeds and principal reductions of long-terrn debt as sources and expenditures whiclr incrcase or decrease fund balance. Such statements are useful in evaluating a government's near-term fi nancial requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmenlal funds with similar information presented for governmental aclivitre.s in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund staternent of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governrnental funds and governmental activities.

In addition to a general fund, the City maintains special revenue funds, wo debt service funds, ten capital projects funds, and one perrnanent fund. These funds have been categorized as either major or non-major based on the significance of their financial position or operations. For the current fiscal year, management has determined that the General Fund and the Capital Projects Funds meet the criteria for major fund classification. The City adopts annual appropriated budgets for most funds, other than funds controlled by the five-year capital improvement program or funds controlled by project-length grant budgets. Proprietary funth: The City maintains three different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer system, the drainage utility system, and for its international airport. Internal service funds are an accounting device used to accumulate and allocate costs internally among a governmental entity's various functions. The City uses internal service funds to account for its fleet of vehicles, its management information systems, and its general and employee health self-insured programs. Because over 80o/o of these seryices benefit governmental functions as opposed to business-type functions, their net position and unallocated (investment) earnings have been included with governmental activities in the government-wide financial statements. Fiduciary funds.' Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to suppoft the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund statements can be found on pages 38 and 39 ofthis report. Notes to the financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information: As the budgetary comparison schedules of the major governmental funds are not a part of the basic financial statements, this information is presented after the footnotes as required supplementary information This report also presents required supplementary information concerning the City's net pension liability and required contributions to its firefighters through the Firemen's Retirement and Relief Fund arrd its other ernployees through the Texas Municipal Retirement System. The City's net OPEB liability, changes in net OPEB liability and required contributions. GovernmenrWide Financial Analysis: Changes in assets over time may serve as a useful indicator of a government's financial position. Prior to the effective date of Statement No. 34 issued by the Coverrrmental Accounting Standards Board, capital assets used in governmental fund activities were accounted for in a "general fixed assets group of accounts" and were not depreciated. Effective with its adoption of Statement No.34 as of October 1,2001, the City computed the accumulated depreciation on all governmental activity capital assets, including infrastructure. Therefore, changes in assets of both governmental and business-type activities, including capital assets as well as current assets, provide meaningful inforrnation to the reader. The table below reflects the City's net position as of September 30, 2019, compared to the prior year (in thousands):

covamman'olAcwnbt

ffiffiffizorg Cuf'ant orSotc Noncur/cdt a!gob

t 160,782 48,607 84,769

165,959

408.885 .150.880

Cepltal lllot3

thratt.ly,/'actvnht

fori.l

Parcanl

78,229 3 7r,943

I 243,587 g 241,725

893.238 870.283

't.t90.1a3 1.120.e85

35,208 79,096

103,975 163,849

15.84% A.76V.

7739%

s 710.850 3 705.226 S 826.755 $ 821.313 31.537.605 31.520.538 100.00%

Totrl eragF Oelened outiows ot relourcet

!8 583 3

Cunent lleblll0€r

30,986 I

40,E40 3

320.033 277.ggg

0 360,018 t

To!!lllrblltlg3 Dotcrad lnllowt ol lccourcgt Not potllon: Nat ln\l.rtmanl ln clpltrl cssals

Rcaon !dfie8trlclod Unrerulctrd (dotlcit]

070 S

,tit

e.78't 3

4.564 3

43,228 E 3S,r07

230.448 253.972

58.384 3

32.424 O.OO%

83,213 E

79,747

559..181 939.8€0

12,95% 97.0e%

318.028 t 282378 t 288.979 S 042.394 I 007,007 100.00% ta lnt

s 390,471 t 388,320 30,041 30,3C2

lito

I 71!

7a6t I

22213

s 602,804 S 483,458 s 899,075 3 8t!9,778 8,233 7,aa2 tg,2?4 38,214

000% 95.00% 4,05qb

8.486 21.UA 0.89% Tot l netporldon E 300.973 I 390.100 I 548.841 I 533,rzr E 946,814 3 929,3{0 100.00% The City's net position increased by $15.26 million during the curent fiscal year. The following table reflects the elements of this change: 120.539) (20.7t61

38.004

12.84

Clty ot Amrtlllo, Trxr' . ChrngI ln N.t Podtlon (h $ou!lndt)

&vcmmanlttAcwnha E| hratt'ly,.ActMllht .',''''','4PorEant

20,t9

Roranuot ProgEm rownuot Cheroot lortctr,lcat Opcr.Ung gr!nb ond conubutona Copltol 0ranb and contibuton!

20rt

3 62,68{t 3

62,200

22,s69

2s,u7

r2,033

12,971

51,r r I 83,939

2019

201t

Totel re\,enue8

Exponrca: oanargl/rtrtt r!rVcar Publlc saloty

26,667 24,295 18,465 20217

?.01v.

49,193

cl,r r l

49,133

82,803

83,939

82,8ES

13.02% 24.47% 1.94%

2,711 688 a,422 7,246

, 431

,tt toa

ura aaa

18,729

sbooB/r.tnc

24,e40

Cultur. and rccr.sdon Solld wosto

29,712

29,071

13.403

r7,499

Trln3lt

5.042

Tourlsm/ gconomlclurign dg\,rlopmant lnlormsuon t9chn0l00y lntorori on long.tann dcbt

15,9r3 4,455

5.906 I 6,1 54

33tt

t eo6

\irtDter lnd 3awct

73,214

e2,229

Droha0o uUllty Arpon

3,203 16 e17

ld 541

234.010 221.0s4

E)ces! (detldoncy) betor. f.nrten

(2?0)

33s

Chon0o h not posldon Nct posldon, boglnnlng Pflof perlod 6dju0rnont (8ae Noto 'l)

422 (203t

a t6a

10c,311 111 152

3,e97 5,304

5,735

TrcnElco

0,e 13

a 633

r0,005 r0c,934 23,374

Totol epensos

201t

43.05t0

a,cr3

1r 3,381

20rt

r40,4t0 3 153,721

e3.064 $ rOr,612

Gonoral ri\enuar:

Poportytr)€8 Othort r€t lnauronce raco\,tflcoll ln!attncnt carnln9E, atc.

2019

2,9t9

01.030 79.7e9 16,476 t1,309

A A3'

6.42%

2 AOOA

ta, att

100.0070

5.760h 34.8890

18,729

rc,006

r 13,381

10c,934

24,440 25,712 r5,403 6,042 15,0r3 4,453 5,735 79,218 3.203 1n 417

25,974 2E,071

7.59.h 9.14%

17,499 5,6€6

4.74r/o

r5,164

1,t0v.

3.997 5,304

1.37%

62,22s 2,939

22.52qb

ld sal

r.E0%

t.7aeh 0.99% 30.4

925.040 302.817 100.00%

15,20C 31,8fi

(5!01

3ge

t2t

390,100

337,525

533,174

4e9

58.1 1 2

751

r4.e

91.692 509,028 (7.536)

15.2E3 3r.8r r 929,340 1.210

846,953 50.575

396.034 306.037 633.925 60't1,92 $0.559 897_529 0 39E,973 t 303,186 S 649,841 3 593,174 5 045,814 S e2e.340 Governmental activities.' The net position of the Governmental Activities was $396.97 million. Of this amount, approximately $396.47 million is net investment in capital assets. Restricted net position of approximately $3.12 million, $1.59 million, and $25.33 million is restricted for debt service, tax increment financing, and other purposes, respectively. This leaves a deficit unrestricted net position for Governmental Activities of $29.54 million. Net position of the Business-type Activities, which are comprised of the Water and Sewer Fund, Drainage Utility Fund, and the Airport Fund totaled $548.84 million. The unrestricted net position of the Business-type Activities is used to provide working capital and fund capital projects. Net po3l0on, bgglnnlng,

!r rgatnlcd

Nel poslton, ondlng

At September 30,2019, the net positiorr for the Governmental Activities increased $339 thousand.

Expenses increased over the prior year with the largest increase of $6.48 million in Public Safety. During 2018119, the City added five new firefighter positions to begin stafting the addition of a second company to an existing fire station. The capital project to fund the infrastructure tbr the second company station was approved by voters in the November 2016 bond election. Fire and Police both saw increases in expense related to the net pension obligation as applied through GASB 68. Police added funding for l7

police officers, including six new neighborhood police of'ficer positions. Animal Management and Welfare added two positions to staff a spay and neuter clinic that was also approved by voters during the November20l6bondelection.AnotherincreaseinexpenseswasinStaffServicesof$2.20million. The City made the first payment for maintenance related to its upgraded radio system and also saw increased expense across the board related to the net pension obligation. Additional resources were allocated to information technology to address enhanced security and continued technology irnprovements. Solid Waste continued to allocate additional resources to the big and bulky curbside program, to the pilot program for cafts, to dumpsters, to alley cleanup, and to urgent response crews; however, the landfill experienced an increased compaction ratio during 2018/19. This resulted in an increase to the rernaining capacity estimates for the landfill closure and post closure care costs which resulted in an overall decrease to the liability. The Governmental Activities saw increased sales tax collections. property tax collections. and hotel/motel tax collections. Durirrg 2018/19, the City changed the nrethodology used to estimate the long-term portion of the incurred-but-not-reported claims (IBNR) based on current industry best practices. This change in estimate decreased the Employee Insurance fund IBNR reserve, long-term portion, by approximately $3.8 million. The accomoanvins bar chart entitled Exoenses vs. Revenues - Governntental Activities - reflects the extent to wfiiclieaEh of the maior s,overnrfiental functions of the Citv is supported I'y revenues desienated for that purpose. These reveniues'include charges for services, int6reoveiilmental-revenues, and Eitizen oarticioajtioris and contributions. Charses for se"rvices include fees oflthe solid waste disposil utilitv and iransit'svstem. revenues of the auditoriiim-coliseum complex and parks department. and p'ermits. licinses. and fines. Foithe current vear. exDenses of the sovern*rental functions were $234,01 rhillion. Procram revenues consistins of chaiees for'services. ooerltine srants. and caoital srants were in total amou-nt of $87.47 million, res"ulting in-a net cost of govei"nmentil"functions in the ari'ount of $ 146.54 nrillion to be supported by deneral re-venues of the Citi which include property taxes and sales tax revenue. General rei6nues arid"transfers totaled $146.88 inillion. Cenerdl r'evenues, program revenues, and transfers combined were $234.35 million representing total revenues derived froni golernmental activities.

The chart below titled Exttenre,s vs. Revenues - Governmenlal Activities - shows the expenses and revenues bv activity. For rirost activities, expenses exceed revenues. Ceneral revenues suclr hs sales tax and property taxes lre used to furrd most of tlie governmental activities. Expenses vs Revenues Governnrental Activities 120,000 100,000 o

o o o

80,000

60,000 40,000 20,000

I Expenses Activity

I Revenugs

The accompanying pie chart entitled Revenues hy Source - Governntenlal Aclivitie.s - reflccts the major components of both revenues as described above ol' $233.79 million excluding transfbrs of $559 thousand.

Revenues by Source Governrnental Activities lnsurance

recowry/cost 3%

lnwstment earni Other taxes 1 'lolo

Charges for services 22%

2o/o

Operating grants 10o/o

Sales tax 25%

Capital grants 5olo

Property laxes22o/o

Business-type activities: Business+ype activities, which includc the Water and Sewer Fund. Drainage Utility Fund and the Airport Furrd, increased the City's net position by $14.92 million. The increase in net position for the business-type activities is attributable to increased revenue in the Water and Sewer Fund. Operating net income of the Water and Sewer Fund was $7.85 nrillion as compared to $25.51 million in the previous fiscal year. The operating income remains strong. Net position for the Water and Sewer Fund increased by $6.97 million. Airpoft net position increased by $a.29 million, which is nrainly attributable to an increase in nonopcrating revenues in the cunent year. The Drainage Utility Fund net position increased by $3.21 million. The Drainage Utility Fund was approved in late fiscal year 20lll12 and had assessment income starting October 1,2012. The Drainage Utility Fund had net operating incorne of $2.62 million for the seventh year of operation.

915% of the City's net position for the business+ype activities is net investment in capital assets (land. buildings, pipelines, streets, and runways, etc.). Management reviews the use of these assets on an ongoing basis and detennines whether any should be disposed of. All of these assets are either being used in current City operations or, as in the case of underground water rights, are being held for planned f'uture use.

$8.23 million of the assets represent resources that are subject to external restrictions on lrow they may be used. These restrictions primarily represent accounts established in accordance with bond covenants together with bond proceeds held pending construction expenditures. Other restrictiorrs include arnounts to be spent in accordance with grant agreernents. The balance of net position is available to meet the City's ongoing obligations to citizens and creditors.

llater and Sewer Systent: Water metered sales were strong but decreascd by $6.30 million or ll.4%o largely due to the City not receiving large amounts of precipitation during 2018 while experiencing an increased amount of precipitation during 2019. The chart below reflects 2019 as the l5th wettest year in recorded history while 2018 was the l2'r'driest. Water revenues can be significantly affected by the amount and tirning of local rainfall. With the increase in water volurne sold due to drought corrditions combined with rate increases implenrented for fiscal years 2013114,2015/16, and 2016ll7 residential customers increased water sales in each of these years. A 3o/o rate increase was included in 2016/17, 2017118, and 2018/19. as well, r0

Changes in water usage have less effect on sewer revenues; however, this revenue source did increase by $136 thousand due to a 3o/o rate increase implemented during 2018/19. The chart below reflects the fluctuation in precipitation that the area has received over the past six years:

Year Precioitation @!g* 2014

19.40"

63'd driest (near normal**)

20r5

34.63^

20t6 20t7

4rlt wettest on record 36th driest on record

26.48"

2018

13.60"

l3th wettest on record l2th driest on record

20t9

25.88"

l5'h wettest on record

t7.20'

* Records go back to 1892.

** Normal precipitation is 20.36". Airport: The Airport has been in the process of improving facilities, and the Federal Aviation Administration (FAA) funds a significant part of the cost of these improvements. The Airport generally attempts to operate on a break-even basis with its net position increasing by $a.29 million. The largest increase in Airport revenue was seen in grant money received from the FAA for capital improvement projects. The passenger facility charge is approved to collect up to $19.2 million, which will be used to pay back certificate of obligation bonds issued on September 3, 2009 in the amount of $16.14 million. During 2018119, the Airport collected $1.40 million in passenger facilities charges, which is $92 thousand more than the previous year. Airport operating revenues increased from $9.91 million to $10.66 million; however, operating expenses increased only slightly from $14.58 million to $14.63 million. Operating revenues are derived from airlines, fees and commissions, and other building rentals.

Drainage Utility: The Drainage Utility Fund completed the seventh year of operation and recorded operating revenues of $5.58 million with $2.96 million in operating expenses resulting in net operating income of $2.62 million. Operating income will be used to service drainage debt that was issued during 2012/13 and 2013114. The total outstanding debt at year-end for the Drainage Utility Fund was $8.50 million. Operating income will also be used to fund drainage projects, many of which are in the design and engineering stages at the end ofthis fiscal year. Financial Analysis of the City's Funds: Government funds: The focus of the financial statements of governntental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirement. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As management has long adhered to a policy of financing construction out of unreserved fund balances available afterall current needs have been met, these balances also serve as an indication of the amounts available for expansiorr or replacement of infrastructure and other capital improvements.

At the end of the current fiscal year, the City's governmental funds reporled combined ending fund balancesof$ll3.44rnilliorr,adecreaseofapproximately$4l.24millionfromtheprioryear. Beginning in fiscal year ending September30,20ll, the City implemented and began reporting the fund balance structure under guidelines established by GASB 54. GASB 54 requires the fund balances of governntental funils be segregated into five rnajor components. These are: Non-spendable, Restricted, eomrnitted, Assigned and Unassigned. Of the total fund balances, approxirnately half has been designated by rnarragement for specifrc purposes and is being accounted for in governmental furrds estalilished to control the expenditure of the funds for designated purposes. These funds consist primarily of the Capital Projects Funds and the Compensated Absences Fund, which were established to currently fund the City's liability under its sick and annual leave policy. The balance is available to fund current expenditures or to fund future capital improvement or operating needs. All of this unassigned fund baiance is accounted for in the General Fund, which is the primary operating fund of the City. At the end of the current fiscal year, the total fund balance of the General Fund was $45.23 milliort, of which $41 .75 million was unassigned.

The fund balance of the General Fund decreased by $2.86 million during the current year. The fund bal' ance of the Capital Projects Funds decreased by $40.27 million. This decrease includes dollars spent on completed projects including projects from the first and second year of funding for the approved plojects from the November 2016 bond election. The capital projects funds had assigned fund balances of $39.64 rnillion at September30,20l9. These funds are assigned for construction projects in progress and for projects currently in the planning stages and in the City's five-year capital plan. The HUD Programs Fund accounts for funds administered by the City for the U.S. Department of Housing and Urban Development, including block grants, housing assistance, and various smaller low-income programs. Most of the grants awarded to the City are expenditure driven; thus, for most programs, revenues equal expenditures.

Proprietary funtls: The financial statements of the Proprietary Funds provide information for the two types of funds the Business-type (Enterprise) Funds and the Internal Service Funds. The Internal Service Fund financial statements reflect a net position of $51.20 million. The purpose of Internal Service Funds is to provide services within a government on a break-even basis. Funds classified as Internal Service are: Fleet Services, Information Services, Risk Management and Employee Insurance.

The net income or loss from these Internal Service Funds has been allocated back to the using departments or funds for the city-wide financial statements. The unrestricted net position of the Internal Service Funds is generally used to replace capital assets.

Net position of the Internal Service Funds increased in the 2018/19 fiscal year by $2.94 million. At September 30, 2018, the City recorded $99.65 million prior period adjustment in the Employee Insurance Fund related to the implementation of GASB 75 Accounting and Financial Reportingfor Postemployment Benefit Other than Pensions. Prior to the implementation of GASB 75, the City reportgd the postemployment health benefits in the Employee Insurance Fund, under the requirements of GASB 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. GASB 45 was implemented in fiscal year 2008, and the City was responsible for funding the annual required contribution (ARC) and disclosing the Actuarial Accrued Liability, From 2008 to 2017, the City recorded a postemployment benefit obligation liability for the portion of ARC that was not fully funded. In January 2013, to address the postemployment benefit obligation liability, the City began prefunding a portion of its Other Postemployment Benefits (OPEB) liability via an irrevocable multi-employer O_PEB irust (PEB Trust) in additionalto pay as you go costs. During 2014 and 2015, the City made significant plan design changes. Effective January 1,2015, all Medicare eligible retirees were transitioned to a private Medicare supplement plan and are longer covered on the City-sponsored plan. The City provides i monthly stipend of $150 to assist retirees in the payment of the supplement premium. The removal of the GASB 45 liability, in the Employee Insurance Fund, caused the historical overall deficit in net position for the Internal Service Funds to be elimirrated. With these changes and the implementation of GASB 75, the City recorded a net OPEB liability of $49.07 million in the Staternettt of Net Position. At September 30, 2019, the City's total OPEB liability was $64,305,284, of which the City has funded S15,237,541 through the PEB Trust, resulting in a net OPEB liability of $49,067,743. See footnote l0 for additional details related to the Defined Other Postetnploymetrt Benefit Plan. Tlre accoulrting principles applied to these funds are similar to that of the private sector. Consequently, with the exception of the allocation of Internal Service Fund losses to business-type activities, the net position and changes in net position of the Enterprise Funds in these financial statements is identical with the net position and changes in net position in the city-wide financial presentation.

Capital Assets and Debt Administration: Cnpital dssels.. The City's investment in capital assets as of September 30, 2019, was $ I .19 billion, net of accumulated depreciation. The following tabulation summarizes the City's capital assets at September 30,

20t9 CIV ot Amrrlllo, Texss - C!pltll Assott (ln housands - net ofdoprocittion)

Gove',,mental Aclvltlcg

,ttt

Lend, ar3monF !nd watar rlghls

lnfrsslructlre

37,702

164,638 4,751

4,729

Llbraryr'rourcor

Totsl cspltel ersetr

2019

2018

82,1e6 S 83,024

191,909 34,759 5,750 66 06n

2018

20,t9

l'eit.tcdl

frattttadt

0 r23,285

120,729 't€4,038 4,751 433,752

1A2,717

4,725

11,7U

493,752 01,478 0,628

4,640

4,548

440,034 50,921

Arpori hcllldos Dlclnage lm Pro\,9m 9n18 Bulldlnge and ohcr impto\omonB Equlpmcnt 8nd whlclag Caplt6l Leaso As!at con3hlction ln progress

^'%

41,119 0 1e2,717

lortl

Ash.tt-typc Actlvklot

142,058 31,706 2,397 aq sta

446,834 50,921 11,754 191.000 39,405 5.750 147,045

01,478

0,02s 142.058 36,254 2,557 151,1 19

91.197 81305 s 408.883 S 452.766 $ 693.258 3 071.038 $ 1.190.143 31.123.802

For this purpose, the vehicles, management information systems, and other assets of the Internal Service Funds are classified as assets used in government activities. Refer to Note 7 in the Notes to Basic Financial Statements for additional information related to capital assets. The City of Amarillo attempts to fund its capital needs on a pay-as-you-go basis to the extent possible. However, the City has recently borrowed funds in order to complete significant infrastructure projects. The City attempts to take advantage of favorable interest rates and use debt only when conditions are favorable. Note l2 to the financial statements discloses in detailthe debt activities of the City. In addition, a Combined Schedule of Outstanding Debt Issuances is provided in the supplemental section of the CAFR. The following table shows the City's total principal amounts outstanding under bond agreements as of September 30, 2019: crty ol Amarrlro,

lT::il;*".lne

Cove|?ment l Acttvftlct

ffiffiffi7Gcncrrl obllgltlon bondg Cor0tlcates ol oblioedon

Spcci.l .3sossmeni dqbi Hotel occupancyt!xdobl Fleel servces rownue bond8 Watar !nd towot talanue bondg \A/et€r 6uhorltydebt

56,732 $ 0,0s5 10,699 50,515

Tolrl outglendlng debt

Butlno'!-,yF Acltvltlat $

folcl 0

r r,457

50,830 455 163.700 52,744 8,493 1,830

Dnln!96 uullty rotpnue bondg Arporl

59,4E4 0,570

oebt

r75,450 58,331

9,005 3.570

56,752 0.085 10,099 50,515 103,700 52,744 8,405

r,830

50,484 6,570 11,457 50,830 455 175,450 58,331 9,005 3,570

s r24.231 S 128.796 3 220,700 $ 240,350 C 35r,000 I 375,152

Refer to Notes I I and l2 in the Notes to Basic Financial Statements for additional information related to long+erm debt and other commitments.

General Fund Budgetary Highlights The primary purpose of the General Fund is to account tbr general revenues such as property taxes, sales taxes, and other taxes and expenditures related to essential City functions and programs. The Ceneral Fund is comprised of rnultiple departments that carry out many of the City's essential functions fiorn street repair and maintenance, traffic, fire and police protection, sanitation collection and disposal. and other administrative functions just to name a few.

General Fund Revenues: The total General Fund revenues budgeted tbr fiscal year 2018/19 were $185.13 million. Certain reclassifications of interdepartmental reimbursements are made frorn the approved budget for financial reporting purposes. Actual sales tax revenue accounts for 32.40% of the General Fund total revenue excluding transfers. Sales tax revenues were budgeted for $58.36 million. Actualsalestaxrevenuesfor20l8/t9were$59.l8million, Salestaxrevenuesweregreaterthanexpected budgeted amounts by approxirnately $816 thousand. Sales tax receipts have been very strong for several years; however, the 2016/17 receipts were slightly lowerthan the 2015/l6year. ln 2018/19, the City saw record sales tax receipts once again. The city's 2019120 budget estimate anticipates strong revenue levels; the budget includes a2.5Vo increase in sales tax revenues over the 2018/19 receipts. Another major component of General Fund revenues is ad valorem property taxes. As detailed on page 175. General Fund ad valorem tax collections were budgeted at $40.36 million. Actual ad valorem taxes were $40.80 million. Other General Fund revenues are comprised of charges tbr services, business taxes, fines and forfeitures, investment earnings, and miscellaneous revenues. ln total, the actual General Fund revenues were lower than budgeted revenues by $2.47 million mainly due to eleotricity and gas franchise fees being lower than anticipated. attached chart shows the major sources of total General Fund -The revenues as summarized on page 126:

General Fund Actual Revenues Fiscal Year 2018/2019 Actual

lnrestmentearnings 1o/o

Fines and forfeitures Charges forservices 2%

Other rentals & misc

20o/o

0o/o

contrib Qo/o

Ad lalorem taxes 250/o

lntergowrnm 3o/o

lnterfund 1o/o

Licenses & perm Sales tax

2o/o

320/o

Business taxes 9o/o

Mixed belerage tax 1o/o

Hotel occupancy 4o/o

GeneralFund Property Tax Revenue and SalesTax Revenue Last Five FlscalYears

45,L08,274 20L9 59,175,698

44,062,709 2018

7,403,759

42,003,099 2017

40,001,867 2016

Propcrty Tax Rcvenue Sa les Tax Revenue

,686,657 2015

20,000,000

40,000,000

60,000,000

90,000,000

ln the above graph you can see the growth rate ofthe General Fund property tax revenue (ad valorem tax collections) in contrast with the growth rate of sales tax revenue. The sales tax revenue has faired well and has a healthy, positive trend line. The City management keeps a watchful eye on the monthly sales tax to spot any flattening trends that might develop. Ad valorem tax revenues show an increase mainly due to increa6ed propertt values. The tax rate in effect for the year ending September 30, 2019, was $0.35838 which is greater than the prior year's rate of $0.36364. The incrase was on the portion of the tax rate used to supported general obligation debt. Voters approved the issuance of general obligation bonds in Novermber 2016 to address streets and public safety needs. The total value of properties on the tax roll is now approximately $15.3 billion. General Fund Expendltures: The total General Fund operating expenditure budget excluding fund transfers for fiscal year 2018/19 was $180.05 million. Total actual expenditures and appropriations against the operating budget for 2018/19 were $175.18 million. This resulted in underspending the budget by $4.87 million. Police and Fire protection combined account for approximately 460/o of the General Fund expenditure budget. Operating transfers to Capital Projects Funds and other funds were budgeted for $8.21 million.

Actual General Fund transfers during the year were $10.04 million. The following chart shows the breakdown by functional area of the General Fund actual expenditures fbr 201 8/ l9:

Ge neral F und Expenditures

Fiscal Year 201 8/2019

Percents ofTotal rium/coliseum

Operating transfers

2o/o

lnformation tech 2o/o

ic devAo

Trans

1o/o

Hl'B$rotection 18o/o

3o/o

Streeb, traffic, engineering

government 3o/o

60/o

Staff services

2o/o

60/o

Other Solid wa

7o/o

9o/o

Parks 4o/o

Police protection

Participant recreation

260/o

4o/o

The City's primary source of funding the annual General Fund CIP program has been through reallocation of excess revenues and unspent monies from the preceding fiscal year. The goal was to maintain an adequate level of fund balance or reserves within the General Fund I'or contingencies and operations and to allocate any excess funds to the capital improvement program. On Novernber 8,2016, the citizens of Amarillo voted in a bond electiorr that included seven propositions totaling $340 million which would allow the City to implement a five year general capital program. The anticipated tax increasc for the bond election was $0.20 with the issuance of the bonds over a five year period. fwo of the seven propositions were approved by voters with a total capital funding of S109.6 million to fund street improvernents and public safety capital needs. The City Council has also approved a $29.5 million project for automated metering infrastructure. anticipated to be funded through a Texas Water Developnrerrt Board loarr, arrd has postponed, for one year, year four of the Water and Sewer capital improvement plan, Water and sewer rates have been increased by 4o/o to support the loan. Year fbur will be supported with a 30% water and sewer rate increase to fund revenue bonds. the fourth of five planned similar increases. All other CIP needs will be met through reallocatiorr of excess revenues and unspent monies frorn the preceding tiscal year.

Economic Factors antl Next Year's Budget and Rates

The Budget totals approximately $401.6 million, with $262.4 million approved for operation and maintenance functions, $99.9 rnillion in capital, and $39.3 rnillion required to support existing debt service paytnents. The annual Budget is the most important policy document for consideration by the Council. It identifies required funding to deliver more than 250 prograrns and services to the citizens of Amarillo. The 2019/2020 Annual Operating Budget is presented to Council as a program based budget, i.e. the various programs offered by City departments are presented with program descriptions and performance measures to define the leveland quality of services delivered to Amarillo citizens. This Budeet represents maintenance of curent service levels for more than 250 programs funded by the City. All-progiams have a demonstrated connection to the BluePrint for Amarillo and supporting Council pillars.

As experienced in previous years, the development of the Budget has been challenging, however, the Budgel addresses enhancemehts to the public safety function and employee compensation. The sales tax reveiues have been strong for the current year and are projected to increase by 2.5%. Taxable pr,operty values remain strong with a 3.0% increase for 2019. These sources of revenue make up the largest percentage of our funding for general government expenses. Every effort. has been made to maintain current levels of service throughout the City with available revenues. The impact of increasing costs in several vital areas of commodities, materials, supplies, fuel, electricity and persotrnel have required we make some difficult choices to balance the Budget. This Budget represents a $22.0 million increase from the prior year. The Budget addresses the BluePrint for Amaiillo.-Budget enhancements focus on public safety and the continuatiott of year three of the capital improvemeni program. The current Budget includes funding fgr lgn -additional Fire.Department poiitions hnd three ddditional positions at Animal Management and Welfare, along with additional iunding for street maintenance and the continuation of the Coming Home program aimed at assisting the chronically homeless population in Amarillo. With the future expansion of Station #5 and the change to a two-company station, the additional ten fire positions added this year complete the needed staffing fqr the se_cond company. During the current year, ihe Department intends to use lhe additional personnel to help offset increases in overtime expenses.

CONSOLIDATED BUDGET Our 2019/2020 budget is $401.6 million; which is an increase of 5.79o/o, or $22.0 million, as compared to our 201 812019 budget of $379.6 million. The areas ofspecific increase/decrease in this budget are:

General Fund Operating Water & Sewer Operating Capital Irnprovement Projects

FY 2018/2019 Fy 20t912020 $ 188,459,283 $ 185,751,940

7o Chanse

t.46%

51,800,039

51,522,427

-0.54%

87,368,647

99,895,087

14.34%

24,180,939

24,1I I ,776

-0.29%

9,666,778

10,948,277

13.25o/o

lnsurance Operaling

31,732,143

35,761,467

12.70%

Debt Service Airport Operating Drainage Util ity Operating Informatiorr Technology Operating

38,093,763 9,374,581

3.08%

3,393,216

39,266,478 9,602,514 3,257,336

-4.00%

5,374,219

5,832,3 58

8s2%

Special Revenue Operating Fleet Services Operating

2A3%

FY 2018/2019 Fv 20t912020 Capital Transfers Less: Interfund Transfers

TotalBudget

2,819,904

2,562,867

(69.982.933)

rcg.661.634',) 401,558,236

s 379,573,236

7o Chanse

-9.t2% -0.46% s.79%

Municipal government is a service business and the predominant expense category in our Budget is always'personnel and the associated employee salary and benefit expenses. Personnel costs. compr-ise az%i oi S167.l million, of our 201912020 net Budget. The second largest category is Capital Improvement Projects at $99.9 million,. or 25Y0, of lhe net Budget. The City bldget reflects 1 l3.yl increase in insurance costs related to increasing claims and insurance cost. The increase in health insurance claims is related to large claim experience during the 20171201 8 fiscal year. Capital reflects a 14% increase over the prior yeai, which includes $29.5 million for the Advanced Meter Infrastructure (AMI) project for the Water and Sewer Fund. Debt Service accounts forjust under 100/0, or $39.3 million, of the net Budget. Debt service expenditures include all funds. The Debt Service category includes a 3%o inuease which includes the anticipated debt seruice dollars associated with the voter approved general obligation debt and an additional bond issue in the Water and Sewer fund to address needed capital infrastructure projects. Fleet Services reflect a 13.26% increase in operating costs related to increased costs in maintenance and auto parts.

Propertv and Sales Taxes For the 2019/2020 fiscalyear, the property tax rate increased $0.0175 for operations and maintenance and $0.00263 for the voter approved debtservice associated with the approval of Proposition I and 2 during the November 8,2016 b6id election for a total increase of $0.02013. The 201912020 rate is $0.38851 per $100 taxable value versus the 2018/2019 rate of $0.36838. A historical review of the rate reflects that the City Council increased the property tax rate by one-cent t9 $0.32009 for the z0lllz0l?.fiscal^y^e_ar after thr6e years with the same properry tax rate and by $0.02 in the 2013/2014 fiscal year,.by $0.005 in the 2014/2015 fiscal year and by $0:00563 to $0.35072 for the 2015/2016 fiscal year. The rate increases associated wirh 261712018 and 2018/2019 were directly related to the debt service poftion of the tax rate. It is interesting to note that while the property tax rate and associated levy is often in the public eye, it raises less revEnue than is required to operate only the Amarillo Police Department for the upcoming fiscal year.

The sales tax is the City's largest revenue source, Amarillo has long enjoyed a history of steadily increasing sales tax, which has offset our low property tax rate. However, in the. 2016/201 7 fiscal year the City sawieceipts decliningby l%. We are pleased to note that the City is experiencing increased sales tax recbipts for the current year and are estimating $58.9 rnillion, which is a trending^up o^f 2.5%..Next-year's estiniate includes a 2.5o/o increase (S60.3 million). The sales tax budget of $60.3 million for the 2019/2020 fiscal year is not sufficient alone to fund the budgets for Public Safety. The City relies on multiple revenue sources to support General Fund operations. Franchise Fees. User Fees and Charges

During 2016 the City initiated a $140 million five-year €or11nunlty Invesflnent Program with^

corresponding 3% rate increases in 2016/2017,2017 /2018, and 201 8/2019 to fund the first three years of the program.-The 2019/2020 budget includes a 7Yo water and sewer -rate increase, which will fund the addilion of automated metering infrastructure Q%) and provide for an increase in operating and rnaintenance (3%). The City anticipates resuming year four of the five-year Community Investment Program with 3% rate increasesin20201202l. The water rate structure isdesigned so that customers who only use water for domestic use still have very reasonable rates. A residential .10,000-gallon water user wili have a monthly rate of $34.51, which is very low compared to other Texas cities. The Budget includes an increase in the Solid Waste rates. Residential customers will see a $1,74 increase on their monthly bill and commercial customers will see a 5olo increase. In addition, the tipping fee at the City's landfill was increased by $2.00/ton. This additional funding will allow the City to fund two additional crews to provide curbside and alley pickup service, address equipment needs related to growtlt,

Franchise Fees. User Fees and Charses (Continued) and improve customer service. The 2019/2020 fiscal year budget includes a4%oDrainage fee increase. It is anticipated that this will be the third of five 4V, Drainage fee increases to fund the Community Investment Program.

Emnlovee Staffins

The 201912020 Budget consists of 2,226 permanent and 351 part-time employee positions. Permanent positions have increased by 25 positions over the curent year and part-time positions have decreased by I L As reviewed previously, the Budget includes enhancements to Public Safety with funding for ten Fire positions. Animal Management and Welfare is adding three new positions to staff a medical clinic that is anticipated to be completed in 2019. Solid Waste is adding eight new positions and Building Safety is adding one new position to address customer service in each respective department. Public Communications is reclassifoing a position to enhance the City's social media engagement. Police is adding one police officer that will be assigned as a school liaison officer and is partially funded by the school district. Below is a summary of the staffing changes for permanent positions for the 2019120 Budget:

Position Title

Department

Airport Business & Procurement Coordinator Airport Maintenance Coordinator Airport Operations Manager Utility Worker Assistant Shelter Veterinarian Rescue Coordinator Veterinary Assistant Adm in istrative Specialist Permit Technician Plumbing Inspector Engineering Assistant II GIS Technician Administrative Techn ician Social Worker

Airport Airport Airport Airport Animal Management and Welfare Animal Management and Welfare Animal Management and Welfare Building Safety Building Safety Building Safety Capital Projects Development and Eng. Capital Projects Development and Eng. City Manager Coming Home Custodial Operations Fire

Custodian I

Fire Captain Fire Driver Fire Fighter Fire Lieutenant Adrninistrative Assistant IV Assistant Aquatics Coordinator

Full Time I I I 2

I 1

I I I

-l -l I I I

Fire

Municipal Court Parks and Recreation

-l -l

Greenskeeper I

Parks and Recreation

Utility Worker

Parks and Recreation

-2

V isitor Services Special ist

Parks and Recreation

Police Officer

Police

Social Media Coordinator

Public Communications

Emplovee Staffi ng (Continued)

Position Title

Department

Solid Waste Equipment Operator I Solid Waste Equipment Operator II Utility Worker Environmental Compliance Technician Utility Worker

Solid Waste Collection Solid Waste Collection Solid Waste Collection Solid Waste Disposal Street

Full Time I

2 4 I

-2 25

Emnlovee Comnensation

l) 2% pay increase for civilian employees as pay-for-performance, based on annual evaluations; and 2\ 2% pay increase for Police and Fire employees. The total cost of these pay plan improvements and benefits is $3.2 million. Most of the cost ($2.3 million) is in the Ceneral Fund.

Canital Imnrovement Proeram The 2019/2020 capital budget is $99,895,087. The voters approved, on the November 8, 2016 bond election, $109 million for public safety and street improvements. The City continues the implementation of these bond funded improvements over a five-year period, with the third and fourth issue during 2020. The budget includes an anticipated 4% rate increase for Water & Sewer for a bond issue to create an automated metering infrastructure (AMI). To do this the City pushed back year four of the planned fiveyear Water & Sewer capital program. The Budget also includes year three of the Drainage Community Improvement Program (Program) with an anticipated 40lo increase in drainage fees for a proposed future bond issue to fund the Program, the third of five similarly planned increases.

Future Priorities The201912020 Budget has prioritized enhancements to public safety. Going forward the City will need to identifo additional budget dollars to address the maintenance of aging city facilities. Funding for park facility improvement is limited. Going forward budget dollars will need to be identified to support the City park system. Annual funding of compensated absences will be a priority for 202012021 as the compensated absences fund is nearing depletion. In 2016, the voters approved the issuance of $89 million for Street improvements to be issued over a five year period with the last issuance in the 2021 fiscal year. Looking past 2021, the City willneed to budget dollars to continue funding maintenance of the City street infrastructure. Additionally, the City has recently released information on a proposed renovation and expansion of the Civic Center. The prelirninary plan calls for a potential bond election in May 2020. The conversatiorr around a potential action on the Civic Center will remairr a priority in future budget cycles.

Requect for lnformation :

This financial rcport is dcsigncd to plovido a general ovoliow of thc City of Amarillo's finances. Questions concorning any of thc information provide.d in this rcport or rcquosts for additional finanoial information strould bc addrcssed to the Dirpctor of Financo, City of emarillo, P.O. Box 1971, Amarillo, Texas 79105-1971.

This pago teft blank intentionally.

BASIC FINAI{CIAL STATEMENTS

Theso statements present an ovcrvicw of tho financial position and transactions of the entiro roporting cntity. The Statement of Net Position and Statcmcnt of Activitics rcport information on all of tho

nonfiduciary nosourccs and activitics of tho primary govcrnment and its componcnt units. These statcmcnts, as well as tho Statemcnt of Nct Position and Satcmcnt of Activities of tho componont units, aro prcsontcd on a basis of accounting promulgated by thc Govornmental Accounting Standards Board, which is similar to the generally accepted accounting principlcs applicablc to commercial enterprises. The finanoial statcmonts of tho govcrnmcntal funds, proprietary funds, and thc fiduciary funds aro prcsontcd in accordance with goncrally acoeptcd govommcntal accounting principlcs to tltc types of funds prescnted.

This page left blank intentionally.

CITY OF AMARILLO, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30,20I9 Prlnnrv (:ovornmonl

Govcrnmcntol Busincss-type A.tiviti.r

A.tiviliA

$ 42.050.034

$ 39.463.139

76.78r.r68 25,483, I 95

42,658,607 I 9,963,492 (25J83, l es)

3,284,4t7

t,627,t24

Componcnt I lnitr

Tolnl

ASSETS

CTIRRENT ASSE'I'S Cush and cash equivalents

lnvestments Reccivablcs, nct Intcmal balanccs lnvcntorics and prcpaid expenses Other cunent assets

I 7,759, I 84

8t.513.r73 n9,439,775

s 3r.973,r71 I 84.569,499

37,722,676

8,542,03 I

4.91 l,54 r

3.363,026 1.09?.971

Total cuncnt assets

I 65.357.998

78.229.t67

243.sE7.165 233.s45.698

34,87 t .0 t9

55,200,849

90,07 I,868

NONCURRENT and cash cquivalcnts Restrictcd cash ^SSETS Rcstrictcd invcstmcnts Rcccivablcs, nct Ohcr noncunent asse$ Land and building held for future inccntivcs Capital asscts:

50,0t2,882

L:nd

15.60?,065 25,5 I 2,097

Contributcd right ofway coscmcnts Watcr rights and contracts. net ofamortization lnfristructure. net of deptecialion Buildings and improvcmcnls, ncl of dcprcciotion Equipment and vchiclcs, nct ofdcprcciltion Crphol Loosc Asrct. nq ofamonizrtion Librory resources. net of deprecialion Construction in progres

r62,716,65 r r 9 r.909.466 34,759,362 5,?50,t 70

^SSETS DEFERRED OUTFLOWS OF RESOURCES Dcfcncd outflows

TOTAL DEFERRED OUTFLOWS OF RESOURCES

67,494

67.494

4,819,613 2,485,t l0 74,860,845

20,426,678 27,997,207 74,860,845

n,753.525

t74.4?0,176 69s365,390

503.555.924 4,645,s53

7,tgnl;

73.093.859 I I,091

39,404,915 5,?50, I 70

4,722,7n 55.907.693

9t.t36.973

4,722,7n t47.044.666

545.49 I .856

748.525.886

t.294.0t7.742

149.676.879

s 710.849.854 S 826.?5s.0S3

$ 1.537.604.907

s 383.222.577

Total noncuncnt asscts

TOTAL

19,225,012

t3,735,622

$ 48.582,825 $ $ 48.582.825 $

t34.66t

9,781.412 S

58.364.23? E

2,067,274

12 S

58.364137 S

2.067 .274

9.781.4

LIABILITIES CURRENT LIABILITIES

$ 26,150,296

$ 22,E94,668

4,343,643 6.069.782

5.837,260

14,258,552

49,044,964 I 0. I 80.903 6,069,782 I 4,258,552

1.966.628

237.483

2.204.nt

Total currcnt liabilitics

39.984.540

43.227.963

83.2 I 2.503

6.730.69 I

NONCURRENT LIARILITIES Liabilitics poyablc from rcstrictcd osscts Noncuncnt portion of long.tcrm obligations

t23,496,725

2 I 7.524.803

341 .02 I ,52E

5 1.513.298

2.s78.684

2,s78,684 3,878,395

864.E07

Accounls pryablc and accrued expenses Cunent portion of long-term obligotions Estimated licbility for self-insured losscs, cuncnl portion Bondcd dcbt cuncnt maturity Cuncnt portion ofcapital lease liability Cunent portion of compensared absencc$

156,637

3.878.395

Nct OPEB liability Nct pcnsion liubility

t 2l.39E

l 0,588,t54

r9.455

3,582.046 41,334,66?

7,733,076 0.746.885

3,582,046 49,067,743 127.477.306

65,516 t.742-727

239^448.25S

559.48 r.43?

53.6 r9,03 l

I 16,730,42 I

Total noncunent licbilities

DE}'ERRED INFLOWS OF RESO(IRCES Dcfened inflorvs

DT:I'ERRED INF'LOWS ON RESOTIRCNS NET POSITION

Nct investment in capittl osscts Resrricted for: Dcbt scrvicc Tox incrcmcnt financing Other purposes Unresrricted (dcfici0

TOTAL NET POSITION

2 1,286.7Et

I 0.588.954

20,42t,974

Compcnsatcd abscnces, net Self-insured losses, net ofcurrcnt ponion Landfill closurc and postclosurc carc

'I'OTAL LIABILITIES

2,07E,69r 4.630.000 22,000

1.454.t I I

I,454,l9l

Other accrued expenses Capital leo.se liobility Estirnatcd liabilitics for:

.TOTAL

320.033, l 82

s 360.0r7.722 s 2E2.676.2r8 S 642.693.940 g 60.349.722 s s

2.441.586 S 5.0t9.053 S 2.441.586 S 5.0t9.053 S

7.460.639 7.460.639

$ s

781 ,749 781 ,749

s 396.470.86 I

g 502.604.330

s 899.075.r91

$ 61.735.665

3, 123,097

8,233,447

I I,356,544 I ,590,86 I

7,071 ,045

25.327.t29

r r.997.330 243.3s4.340

I,590,86 I 25,327,329

(29.538.777\

38.003.41?

8.464.640

$ 396.973.37r S 548.841.t94 S 945.814.565 5 324.158.380 The accompanying notes are an integral part of the basic financial statements, 25

CITY OF AMARILLO, TEXAS STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2OI9 Progrnm Rcvenucg

Opcrating Grrnts end

nnd

Scrviccs

Contributions

Contributlons

Expenscs

Functlons/Prosrems

GOVERNMENTAL ACTIVITIES Gcncrul govcrnment Staff serviccs

4,139,692

5.655.939

Other Streels, traflic and cnginccring Culturc and rccrcation

Auditorium/coliscum Librarics

BUSIN ESS-TYPE ACTIVITIES Watcr and Sewer Drainage Utility

222,764 r33,s99

1,84 1,665

2,165,279 r,686,805

?,006,458 47,000

6,944,703

2,629,24t t52,974

398,004 47,742

2,305,474 3,732,734

8,106

6,80r,449

356,40 I

3.330.55 l

6r.086

66,632

t 1,629,896

69,137

234.0r 0.682

52.586.t42

22,853,t20

12.033.363

73,2 r 5,660

76,075,403 5,594,762

t4,6t7,231

I 2.r93.s8 r

2.713.821

9r.035.835

93.863.746

2,7t3,82t

6.422.346

325.046,517 $

146,449,888 $

25,566,941 $

18,455.709

59,547,t40 24.173.802

n,935,272

Total business-type activilies

COMPONENTTINITS

TOTAL COMPONENT ('NITS

2,230,360

2,098,738 508,440 3.8t 5,168

Airpon

Amarillo l{ospital District Amarillo Economic Dcvclopmcnt Corporttion nmarillo-Potlcr Evcnts District Amarillo Housing Finance Corporation Amarillo Hcalth Facilities Corporation Amarillo Local Govcmmcnt Corporation

8,484, I 58

20,97t,89t

3,202,944

TOTAL PRIMARY GOVERNMENT

973,620 2t 5.002

5t,841,113

8,366.908 r 5,402.955 6,042,060 4,454,886 3,237,465 12,675.458 5.735.225

Totsl govcrnmentol activities

29,000 $

40,968,455 20,571,349 24,640,143

4,528,740 9,87t,990

Parks Participant rccrcation Solid wastc Transit In formation technology Economic developmort/Tourism Urban rcdevclopmcnVhorsing lntcrcst on long-tcrm dcbt

4,2r 9,658

13.989,540

Prrblic safcty and health Policc protection Fire protcction

Crpitnl Grrnts

Chargcs for

355,752 $

15.876.674 $

798,604 $

3,834,920 r 06,359

3,228,t42

t23 442.852

2.042.521

88.99r.605 $

GF,NERAL REVENUES Property taxcs. lcvicd for gcncral purposcs Propcrty taxcs, lcvicd for dcbt serviccs Salcs tarcs Mixed beveragc taxes I-lotel occupancy taxcs Gross rcccipts busincss taxcs Unrcstrictcd invcstmcnt eomings lnsuruncc rccovcry/cost

't'RANSt'EnS Total gcneral rcvcnucs and transfcrs

CHANGI' IN NE'T POSI'IION NET POSITION, BEGINNINC O}'Y8^R PRIOR PERIOD ADJUSTMENT (NOTE I) NUr PosriloN, BEGINNING OF YEAR, RES'rA'rED NET POSITION. END OF YT:^R

The accompanying notes are an integral parr of the basic financial statemcnts 26

Nct (Expcnsc) Rcvcnuc rnd Chnngcc ln Net Posltlon

Primarv Governmcnt

Componcnt

Burlnesr-typc Actlvltlee

Govcrnmcntrl Actlvltleg

Totsl s

1,918,867

(9,554,880)

1,918,867 (9,554,880)

Unlts $

(49,776,684) (38,669,577) (6,763,442)

(49,776,684) (38,669,577)

(6,763,442' (14,422,180)

(14.422,180)

(1,687,098)

(t,687,098) (4,328,024) (7,566,516) (4,626,068)

(4,328,024) (7,566,516) (4,626,068)

5,568,936

(2,294,022) (4,4t4,886)

(2294,022'

(3237,465)

(3237A65)

(4,454,886)

(909,793)

(5-735.225',1

6.733.223\

(l46.s38.057)

fl46.538.057)

4.r05.339

4,958,481 2,900,258 4.105.339

r r 06r' o?t

l1.964.078

r r.964.078

034,373979)

4858,481 2,900,258

(t46,538,05?)

(47,256,t t6) (20,338,882) (3,121,783)

t23 ( t.599.669)

(72,3t6,327\

45,893,341 5,218,010 59,t 75.698

45,893,341 5,218,010

954,629

954,629 6.458,248 r 7.350.836 8,166,217 6,612,636

6,458,248 r 7,350,836

3,5 I 0,746

4,655,471

6,6t2,636 558.955

(558.955)

146,877,824

2.95r.79r

3,120,780 12,520,329

r49-829^61 5

35.366.34 I

339,767

r4.9r5.869

r 5.255.636

(36.949.986)

396,165,877

533,1 73,91 7

929,339.794

361, I 08,366

467 727

75r.408

r.219.135

396.633.504

19,725,232

59,t75,698

396,973.371

930.558.929

533.92s,325

548.84r.r94

945.814.565

The accompanying notes are an integral palt of the basic financial statcments. 27

36r.r08,366 324.r58.310

CITY OFAMARILLO,TEXAS GOVERNMENTAL FI.JNDS BALANCE SIIEET SEPTEMBER 30,20I9

Gencral

Fund ASSE'T'S Cash and cash equivalents

Restricted cash and cash cquivalcnts Invcstmcnts, at fair values

$ 5,083,107

Crpital

Othcr

'l'otal

Projects Fund

Governmental Funds

Governmcntal l'unds

t6,654,7s6

6,726,360

I,584,l2l

30,157,944

3.044,663

34.91t,144

12.002.095

2.249.4t0

t3,735,622

Restricted investments Receivables, net of allowanccs for uncollcctiblcs

Accrued intcrcst Othcr accrued revenue Due from other funds unrestrictcd Duc from othcr govcmments

Invcntory ofsupplies Prepaid items

21,594 s6,682

127,446

226,639

104,001

5,235

335,875

74,530

I,638.392 4,325,149 7.356,455

1.638,392 4,250,5 r 9

5,795,614 I,160,490

1,560,841

t 0,60E

12,077

I, I 60,490

$ 59.087.410 S 62.792.704 $

TOTAL ASSETS

249,968 3,727,269

3,543, l4 I

655,26t

Advanccs to othcr funds

34,796,728 49.t62.649 13,735,622

228,374

Propcrty taxes Accounts

28,464,223

23.750.652 $

22,68s 655.26t 145.630.766

LTABILITIES AND FUND BALANCES

LIABILITIES

$ 2,560,790

Vouchers payable Accounts payable

5,36,7,715

873,966 $

8,802,47 I

2,877,033 6,457,694

679,192

14,661

Due lo other funds - unrestricted Due to other govcrnmcnts Uncarned revenues - property t&\es

705,488 I 58.844

14,699

I 73.543

Unearned revenues - other Advanccs from othcr funds

152,264

70,649

222,9t3

1.310.522

r.3 r0.522

5.804. r r 3

32. r 86,494

Accrued expenditures Dcposits

Total liabilities

4,495.817

l r 0.575

939.592 27,793 r.268.955

6,280,000

1,275,6E4

E,261,t72 95 t.380

8E,99E

22.253

929,t27

t3,855,90 r

t 2,526,480

6,574,485 1.394,19t

FUND BAI,ANCES Nonspendablc: 8,558

r0.608

Prepaid items

r. r 60.490

Invcntory

69.530 655,26 r

Property ta,xes Advanccs to othcr funds Corpus or principal Restricted fbr:

6.895

76,425 655.26 r

n,69;

t7.693

3.04r.9r r

Dcbt scrvicc

t0.626.6t2

Capital projccts Spccial purposcs

r9,r66 r. r 60.490

3.04 r.9

r0.626.6 r2

I,584,t2I

r 4. r62.{t53

t5.746.974

708.629

708,629

Committcd [or: Cornpensatcd abscnccs Assigncd for: Capital projects

39.639,6 r2

r.509 50.266.224 s 59.087.4 t0 s 62,792.704

4t.751.499

45.23

Total l'und balances

.I'O1'AL

39,639.6 r2

41.7 5t.4q9

Unassigncd

LIAI}ILTIIES AND FUND BALANCES

I 7.946.539

|3.444.272

23.750.652 $

r45.630.766

The accompanying notes are an integral parr of the basic financial statements 28

CITY OF AMARILLO, TEXAS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2019

s n3,444.272

TOTAL FUND BALANCES. COVERNMENTAL FUNDS The City uses intcrnal scrvicc funds to chargc the costs of fleet services, information services, risk managemcnt and cmployee health services to other departmens of thc City on a cost-rcimburscmcnt basis. Thc asscts and liabilities, excluding capital asscts, ofthc intcrnal scrvicc funds arc includcd in the governmental activities in the statement of

24,654.908

nct position, 496.885.2 I 5

Capital assets uscd in govcmmcntal activities are not financial resources and, therefore, are not rcportcd as asscts in govcrnmental funds. Current year capital outlays arc cxpcnditurcs in thc fund financial statcments. but they should be shown as incrcascs in capital assets in the government-wide financial statements. Thc nct cffcct of including thc balances for capital assets (net ofdeprcciation) in thc govcmmcntal activities is to increase net position. Capital assets, net October I, 20 I 8 (restated)

Nct current year additions Nct cuncnt ycar deletions Capital asscts, net September 30, 2019

$ 452,766,197 I t9,t62,340

(75,043,322) _$_196,885,2 r 5_

(158,52t,0t5) Long-term liabilities, including bonds payablc and compcnsatcd abscncc liabilitics, are not due and payable in the currcnt pcriod and. thcrcforc, are not reported as liabilities in the funds. In addition, long-tcrm dcbt principal payments are expenditures in thc fund financial statcmcnts. but they should be shown as reductions in long+erm dcbt in thc govcrnment-wide financial statements. The net cffcct of including thc long-tcrm liabilitics and thc debt principal payments is to decrcasc nct position. Thosc liabilities consist of:

$ t27,840.368

Long-term debt

2 r.766.0 t 5

Compensated absence

5,332,586

Capital lease

Landfill closure and postclosure

3.582.046

$ t58.521.015

Includcd in the items related to dcbt is thc rccognition of thc City's net pension liability required by GASB 68 in the

(70,r45,7r r)

amountof$ll2.563.442.adefenedrcsourceoutflow intheamountof$43.436.505.andadcfcrrcdrcsourceinflow in the amount of $1,018,774. lncluded in the itcms rclatcd to dcbt is thc rccognition of the City's net other postemploymcnt bcncfits (OPEB) liabilty rcquired by GASB 75 in the amount of $39,293,449. a dcfcncd rcsourcc outflow in the amount of $2,520,767. and a dcfcrrcd rcsource inflow in lhe amount of$428,312.

(37.200.994\

27,85(r,696

Various other reclassifications and eliminations arc ncccssary to convcrt from the modified accrual basis of accounting to thc accrual basis ofaccounting, These include recognizing uncarncd rcvcnuc as rcvcnuc. climinating interl'und transactions, and recognizing thc rcccivablc fiom thc business-type activities for services provided by the intcrnal scrvicc funds. Thc net efl'cct ofthese reclassifications and rccognitions is to incrcasc nct position,

rcvcnuc payablc balanccs lntra-cntity rcccivablcs Prepaid insurancc

Uncarncd Accrucd intcrcst lntcrnal

396,456

(692,155) 25,483,195 2,033,640 635,560

27.856.696

$ 396.973.37r

NET POSITION OF GOVERNMENTAL ACTIVITIES The accompanying notes are an integral part of the basic financial statements. 29

ctTY oFAMARILLO, TEXAS GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CIIANGES lN FUND BALANCES YEAR ENDED SEPTEMBER 30,2OI9

Gcneral Fund

Tolll

Cepitnl Projccts

Olhcr Govcrnmcntrl

Govcrnmcntrl

Fund

Funds

REVENUES Taxcs Ad valorcm toxes

8,010 $

Sales taxes

59,r 75,698

50,326,2E4 59,r 75,698

Mixcd bcverage taxes

954,629 6,458,248 r 7,350,836

954.629 6,458,248 r 7.350,836

3,534,1?4

t.534.174

$ 45,108,274

Hotcl occupancy taxes Gross rcceipts busincss taxcs Liccnsc and prmits Interfund rcvcnucs Intcrg,ovcmmental revenucs

Citizcn contributions Conslruction participation Rcvenue fiom participating trxing entities Chargcs for scrvices Fines and forfciturcs lnvestment earnings Ohcr rcntals and commissions

Misccllancous Total revcnucs

5.21

325,290

I 8y'64,367

I,879,045 23.69r.E37

7.228,259

9,001 69,13?

7,291,t96

r,879,045 4.902, I E0 78,098

Parks

Participant recreation Solid wastc Transit systcm Urbon redevelopmcnt and housing lnformation technolory Economic development/tourism Capital outlay Debt service Principol retirement lntcrcst and fiscal chargcs Terminotion vscation und sick leavc pay Total expenditurcs

1.902.043

28t290

60.90;

53,384

609,697 395.576

I 82.660,809

9.?38.483

29,667,418

222.066.7t0

342,t63

n,359,719

221,98;

4A43,0n t,424,73t 609,697

OTIIER FINANCING SOURCES (USF,S): 'franslbrs from othcr tbnds Trsnslbrs to othcr funds Total otltcr linancing sources (uses) Nct change in fund balanccs

FUND BALANCES, BECINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES, BECINNING OF YEAR' RESTATED FUND BALANCIiS, END OF YEAR

6,019,094 3,704,55 I

364,83?

48,392,5 r4

3317?,23E r 2,089,990 r 5.69r,637

6.800, r 90

33,4?7,23E r 8,890, l 80

3,612,282

33 t,248

4.003.530

4,11t,262 7,615,t72

I t5

4,lr1,3?7

832,206 23,109

8,447,378 6,961,704

47 245,482

782,t95

r 5,69 r ,637

6,944,595 16.558.56E 5,380, l 96

16,561 ,807

3,239

5.380. I 96 12.665.085

r 2,665,085

4,454,886

4.454,886 2,607,820

r 7,828

t97,t26

59,956,72s

741,267 285.793

60139.644

4,1 r0,037

4,r 10,037

3.366,915

5,043,070

5.043,070

2.t26.448

t?5,72t.94t

60.759.987

33.665.568

270.t47,496

6.938.868

(s 1.021.504)

(3.998, l 50)

(48-080.786)

250,064

l l,042.5 r 5

7,275,t67

I 8,567,746

( 10.044.644)

(6,90 r ,689)

( r,396,770)

( 1 8.343,1 03)

6.6 r 2.636

6.612.636

Procecds tiom lnsuronce

39.506. t9t

4,658.07 t

4,658.07t r 1,0r7,6r6

Exccss (dcficicncy) of revenues ovcr (undcr)

cxpenditures

r,076,355

r,076,355 2,823,304 I,576,083 317,777

36,460,898

EXPENDITURES Cunent Gcncral government Staffscrviccs Public safery and hcalth Policc protection Firc protcction Other Streets. traflic and cnginccring Culturc and recrealion Auditorium - coliseum LibrErics

87.099

(9.794.580) t0,753.462 (2.855.7r2) (40,268,042) 48.087,22 r

48.087.22t

90.534.266 90.534.266

s45.231.509 s 50.266,224 $

s.878.397

6.837.279

1.880.247

(4 1.243.507)

6-066-628

154.688.1 l5

(336)

t6.066.292

t54.687.179

17.946.539 $

113,444.2??

The accompanying notes are an integral part of the basic financial statements. 30

CITY OF AMARILLO, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITI.'RES, AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS I'O THE S'TATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30,20I9

'TOTAL NET CIIANGE IN FUND BALANCES. GOVERNMENTAL FUNDS

(4r,243.507)

Thc City uscs an intemal servicc fund to charge the costs of fleet services. information serviccs. risk management and cmploycc health services to other depanments of the City. The nel income (loss) of the intemal scrvicc fund is included in the govcmmental activities in the Stotement ofActivities. except for net income (los) allocatcd to thc business-typc activities for services provided by the intemal service funds to those activities. The net effect ofthis consolidation is to increase net position.

2,936.839

Cuncnt ycar capital outlays and long-tcrm dcbt principal plymcnts arc cxpcnditurcs in thc fund financial statcmcnls, but thcy should bc shown os incrcoscs in capital asscts snd rcductions in long-tcrm dcbt in thb govcmmcnt-widc financial stEtcmcnts. lssuancc of long-term dcbt providcs cuncnt tinancisl rcsources to lhe governmental fundsl howcvcr, it should bc shown as an incrcasc in long-lcrm liabilities in thc govemment-wide financial statements, The ncl cffcct of including thc 2019 capital oullays, issuancc oflong-tcrm dcbt, and dcbt principal paymenls is to increase

68,2 I 5,693

nel position. Capital outlay Rcsidual voluc ofusscts disposcd of

$ 60,439,644 (r59,90r)

Library books additions Contributed capital Long-tcrm dcbt principal prymcnts

449,758

3,316,t55 4.1 10.037

$ 68.2r5-593 Depreciation is not recognized as an cxpen$c in the govcmmenlal funds since il docs not rcquire the use ofcunent financial resourccs. The net effcct ofthe cuncnt ycar's dcprccialion is to dccrease net position,

( l 9,30?,996)

GASB 68 reluircs that ccnain cxpcnditurcs bc dcrccognized and rccordcd instcod as dcfcncd outllows ofrcsourccs. Ofthcse previously dcfened ouiflows, ($9.154,875) were recognizcd in the cunent year as cxpenditurcs. dccrcasing thc changc in net position. Contributions made afler the measurement date ofDecember 31.2018 causcd the changc in the ending net posirion to increase by $9.101,191, The City's inveslment gains (lossses) over related pension expense were S38,564,168, differenccs in expected and actual experiencc and changes in assumptions were ($4,524,261), and the incresse in expense of ($47,747,517) was recognized due to the cunent year changes in net

(r 3.76 r.293)

pcnsionliobility. Thcinrpactofollrhcscodjusrmcnrsistodccrcascthcchsngeinnctpositionby($13,?61,293).

GASB 75 requires thnt cenain expenditures be derecognized and recorded instead as deferred outflows ofresources, Ofthese previously defened outflows, (S1,487,803) were recognizld in the current year ns expendhures, decreasing the change in nct position. Contributions modc aflcr thc mcEsurcmcnt dotc ofDcccmbcr 31,2018 couscd the change in thc cnding nct posilion to incrcosc by 51,517,619. Thc City's invcslmcnt gains (lossscs) ovcr rclatcd othcr postemployrnent bcncfits (OPEB) cxpcnse wcrc $1,523,810, changcs in assumptions wcrc ($510,176) and thc incrcosc in expcnsc of ($568,337) was rccognizcd duc to lhc currcnt ycor chongcs in nct OPEB liability. Thc irnpact of oll thcsc sdjustmcnts is to incrcosc thc chmgc in nct posilion by $475,3 I 3,

475.1t3

Various otlrer rechssifications and elirninations are neccsssry to conven frorn the modilied sccrusl basis of rccounting ro rhc cccrull brsis of occounting. Thcsc includc rccognizing uncamcd rcvcnuc as rcvcnue, climincting intcrfund trsnsactions and the nct loss on scrviccs providcd to thc busincss-typc activitics by thc intcrnol scrvice funds, Thc net cffcct ofthcsc rcclsssifications and rccognitions is to incrcosc (dccrcasc) nct position.

3,024,9 t8

Compcnsatcd abscnccs

Unearned rcvenue Nct loss of intcrnol scrvicc funds sllocated ro busincs$.rype sctivitics

337,693 185,067 (438.578) 2,704,297 (692, r s5)

Landfill closurc ond post-closurc clrc Accrucd interest pcycble Dcfcncd amount for issuancc prcmiums/costs

328.594 3 024 918

CIIANGE IN NET POSITION OF GOVF.RNMENTAL ACTIVITINS

339-767

Thc accompanying notes are an integral part of the basic financial statements.

CI'TY OF AMARILLO, TEXAS PROPRIETARY FUNDS STATEMENT OF NET POSITION SEPTEMBER 30,20I9

Busincss-Tvoc Activitics - Entcrorisc Funds

Govcnrmentrl Actlvltics lntcrnNl

WRtcr Rnd Scwcr

Drainrgc

Cash and cash cquivalcnts

$ 35,164,365

$ 2,343,651

r.955,r23

$ 39,463,139

lnvestments, st fair values

32,886,057

5,263,r 70

4,509,380

42,658,607

27,6 t 8,5 l9

Accounts rcccivablc, nct Accrucd intcrcst rcccivable

7 ,517,503

9t0,8t3

92,454

8,580,770

2,13 1,032

224,453

12,356

236,809

l4t,8t0

Other accrued revenue

5.073.r86

228,8 r3

5,302,399

Due from other frrnds Duc from othcr govcmmcnts

r,030,428

4,3 13,086

4,3 r 3,086

23,650

1.627,t24

1.250.853

ASSETS CURRENT ASSETS

Alrporl

Ulillty

Totnl

Servlce Funds

I,530,428

500,000

r3,t85,8t r

3,395,79 I 2 r4,83 r

Invcntory ofsupplies

t.603.474

Prepaid cxpcnscs

Total cunent assets

83.559.E66

9.0 r 7.634

I r.134.862

103.712.362

48.328.637

55,086,751 67,494

69,768

44,330

55,200,849

74,29t

NONCURRENT ASSETS Restricted cash and cash equivalcnts Othcr noncuncnt asscts

67,494

Capital assets

tand

2,040,262

2,0r0

Contributcd right of way cascmcnts Undergound water rights Accumulated deplction - undcrground

I,7r3,5l6

77 t,594

2,77?,34t

4,8r9,6 r3 2,485,1 l0 58,332,683

58,332.683 (9,404.38 r)

(9.404,38r)

Water supply contract

50,336,389

Accumulatcd amortization - watcr supply contract Pipclincs and plant

(24,403,846)

683,446,448

Accumulated depreciation pipelines and plant

(236,8 r r,478)

watcr rights

(236,8 r I,478)

Runways, bui ldings ond improvements Accumulatsd depreciation - runways. buildings and improvcmcnts lmprovements Accumulatcd dcprcciation - improvcmcnts

t59,t t0.945

r59,t r0.945

(t02,189,991)

(r02.r89.99r)

t2,365,644

(6r2,r r9)

Equipmcnt and vchiclcs Accumulated depreciation - cquipmcnt and vchiclcs

2,365,644

6,663,240

(612,t l9)

(4,60t,1 l0)

4,860.698

34.348

8,420.400

13,3 15,446

73,9Q7,421

(3,642,6e5)

(20,6ee)

(5,006.4ee)

(8,669.893)

(49.94 r. r 56)

Copital lease

7, r 90,243

Accumulatsd arnonization

( r ,440.073)

66.204.539

8.132.752

I 6. I 99.682

9r.136.973

98.384

Total capital assets. nct of accumulated depreciation

592.672.t35

2t .213.530

79.3 l 1.878

693.257.543

3 1.876.949

Total noncuncnt asscts

647.826.380

2t.343.298

79.356.208

748.525.886

3 t .95 t.240

s 731.386.246 $ 30.360.932 $ 90.491.070

$ 852.238.248

Construction in progrcss

To'rAL AssETs DEFERRED OT'TFLOWS OF RESOURCES Deferred outflows

TOTAL DEFERRED OUTFLOWS

$ $

8.278.493 $ 8.278.493 $

329.904 $ 1.t73.0t5 $ s 329.904 $ r.r73.0r5

9.781.412 S 9.781.412 S

OF RESOURCES

The accompanying notes are an integral parr of the basic financial statements. 32

80.279.877

2.625.554 2.625-554

CITY OF AMARILLO, TEXAS PROPRIETARY FUNDS STATEMENT OF NET POSITION, CONTINUED

30,20I'

SEPTEMBER

Buslncss-Tvnc Activities - Entcrprisc Funds Govcrnmcntal

LIABILITIES CURRENT LIABILITIES Vouchcrs payablc Accounts poyoble Accrucd cxpcnscs Dcposits Consumcr sccurity dcposits Share of Water Authority dcbt - curcnt Duc to other funds - unrestricted Estimatcd liability for incuned losscs Bondcd dcbt cunent maturity

Wntcr nnd

Drnlnngc

Sewcr

Utilitv

2,7r3,696 t,492,979

r r6J53

Actlvltica lnternnl

Alroort

I 80,35?

102,048

r I,920,23 r

38,738 4,005.303 5,837,260 800,000

865,744 440,947 I 89,839 27,323

3,696,903

674,70t 129,250

12,212,118

305,4 t 8

66,061

4,005,303 5,83?,260 800,000

t,973,552

180,t85 6,069,782

r4.258.552

5 t 5,000

I 94 9R7

l1 67)

?R 77? t94

930.0.t0

Bonded debt. nct of cuncnt Water Authority dcbt, nct of currcnt Provision for compcnsatcd abscnccs, nct Other accrued gxpgnscs Estimatcd liobilities for incurred Ioss. nct Capital lccsc liability Nct OPEB liability Nct pcnsion liability

l 55,583.382 53,880,68 I

8,060,740

663,576 2,578,684

22,674

5,893,036 fl 462 nr0

47ri- I 58

t,261.04 t 1.80?.908

Total noncuncnt liabilities

227 062.174

9. r 38.57 r

3.247.506

219 4dn 25S

Q nanan/.)lQ

Total cuncnt liabilitics

2.1 t4,283

I t.770,000

Cuncnt porlion ofcapital lease liability Cunent portion of compcnsatcd obscnces

Scrvlcc Funds

Totnl

177 tlR?

r,454, t9l 9ri 809

43.227,963

s 510 1?6

'1DL ?.s23.820

NONCURRENT LIABILITIES

TOTAL LIABILITIES DEFERRI'D INFLOWS OF RESOURCES Dcfcncd inflows

TOTAL DEFERRED INFLOWS

t63,644,t22 53,880,68 I 864,807 2,578,684

t78,557

525,778 10,588,954 3,878,395

518,999

c rr,<Q1(2rt

c rnn(o(lt

{

6 7?l 1?(

4.393.280

147.817

4??

?tn

ta1 Qt1

{

All 0<A

rt ?O1

056 $ t

7,733,076

2,04 r,2 r 8

I 0.746.885

L I (\(\ ct79

21.20t.124

(

1A'rtt /.LA

010.0s:l s

oor' {6n

(

00ll snn

26,544,363

( nto n<?

OF RESOURCES

NET POSITION Net investment in capital asscts Rcstrictcd for debt servics Unrcstrictcd

$ 4t2,568.2l4

g t2,697,790

$ 77,338,326

$ 502,604,330

8,119,349 49,7A* S)4

69,768 ? ?0s.950

44,330 7.032. r 38

8,233,447 (t\ IAG 6l)

84.414.794

574,324,389

{ 4110 dlfr 0R7

TOTAL NET POSITION

$ 20.473.50R s

Anrounts duc govcmmental activities for allocablc sharc ofnct cxpcnses ofccnain intcrnal scrvicc lunds

1?S.lR1 lqSl

I'OTAL NE'T POSITION OF BUSINESS. TYPE AC'TIVI'I'IES IN STATEIVIENT OF NET POSI'I'ION

{ {dn R4r r04

The accornpanying notes are an integral part of the basic financial statements 33

74,29t

t4 SRO ril?

{r r00 27r

CITY OF AMARILLO, I'EXAS PROPRIETARY I'I.'NDS STATEMENT OF REVENTIES, EXPENSES, AND C}IANGES IN FUND NET POSITION YEAR ENDED SEPTEMBER 30,2OI9

Busincss-Tvnc Activitics - Enlcrprisc Funds

Wetcr rnd

Drrinage

Scrvcr

Utility

OPEMTING REVENUES Airficld fccs and commissions

AlrDort

Governmental Activitics lntcrnel

Total

894,784 $

Scrvice Funds

894,784 $

Charges for serviccs

1,602,066

Employees' benefit plan contributions

5,840,096

Intemal charges Misccllancous revenues Other building and ground rentals

49,504,904

l7l I,741,376

t,741,376

Rcnts and mi$cellaneous

(83,91e)

(83,ere)

Tap fees and frontagc chargcs Terminal building area rental

430,966

430,966 8,020,295

8,020,295

74,684,864

Utility salcs and service

5.582. r 79

5.s82. r 79

?5.03t.9t I

s.s82.179 10.656.455

9r.270.545

56.947.237

I 5, r 80,072

r,295,842

3,627,273

20,r03,r87

6,r63,r44

1,644,628

t44,769

525,439

2,3 14,836

4,430,477

5 t2,020

4,467,998

I,73 I,353

r7.859,t6t

2,970,t39

s,269,514 I 5,087,259

Drainage utility assessments

Total operating revenues

OPERATING EXPENSES Salarics, wages and fringe benefits Supplics

2,552,736

Fuel and oil

Fucl and power

3,955,978

Contractual scrviccs

I 5,245,320

Water Authority chargcs

s,269,st4

Other charges Claim and loss adjustments Dcprcciation

11,642,064

882,488 475,056

4,549,879 4,929,061

22,98t,496 14.246.222

I 65.05;

5.267.59;

Total operating expenscs

67. r 83,798

2.963.211

Operating incomc (loss)

7.848. I I 3

2,6 r

8,968

9.678.868

8.298.589

14.633.8 t4

84.780.823

53.905.382

(3,97'1,359)

6.489.722

3.04 r.855

2,7t3,82t

I,398,694

r,085,820 I,398,694

NONOPERATINC REVENIIES (EXPENSES) Guin (loss) in disposal ofproperty

(29,74s)

(2e,745)

Grnnts-in-aid Intergovcrnmcntal rcvcnuc Passenger I'acility charge

t,073,237

Intcrcst camings

3,t24,26;

I 2,583

(r,5r3,838)

r s8.95?

3,484,703

177,69t

Changc in valuc of invcstments

26,043

Other rnisccllancous rcvcnucs Intcrest expensc artd fiscal chargcs

I 38,432

t73,229 234.274

(It0.68t)

20t,484

(6.470.440)

Q39.733\

l 6.583

26,043 138,432 (6.693.590)

(2,302,686)

(2s.666)

4.452.530

2.t24.t78

(439.325)

5,545,427 2,593,302

415,t7 t

8,6 I 3,900

2,602.530

'l'otal nonopcrating rcvcnucs (expenses) lnconrc (loss) bcforc contributions and transfcrs

The accompanying notes are an integral part of the basic financial statements. 34

CITY OF AMARILLO, TEXAS PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION, CONTINUED YEAR ENDED SEPTEMBER 30,2OI9

Burlness-Tvoc ^Actlvltlcs - Enterorlsc Funds Govcrnmcntol

Wrtcr rnd

Drrlnrgc Utlllty

Sewcr

NONOPERATING REVENUES (EXPENSES), CONTINUED Capiul conributions Trrnsfen ftom othcr funds

2,098,738

508,440 $

147,210 (35.500)

(670.665)

Tronsfen to other funds Changc in nct positiort

NET POSITION, EEGINNING

OFYEAR PRIOR PERIOD ADJUSTMENT

OI'YEAR, RESTATED NET POSITION, END OFYEAR

Totrl

Alrnort

3,815,168 I

. .

Servlcc Funds

6,422,346 $ 147,210 (705.155)

334,309

6,973,500 3,213,452 4,290,339 14,477,291

2,936,939

462.429,987 t7.260,087 79,405,616 559,095,690

48.355-8?0

(3t)

751,408

(93,438)

462-462.587 17.260.056 80.124.455 559.847.098

48.262.432

32,600

NET POSITION, BEGINNING

Actlvltlcs Intcrnrl

718,839

$ 469.436.087 S 20.473.508 S 84.414.794

Allocation of net cxpcnscs of ccrtain intcmal servicc funds to business-t1pc activitica

$ 574,324,389 (25.483.195)

NET POSITION OF BUSINESS.TYPE

ACTIVITTES IN STATEMENT OF' NET POSITION

s 548^841.t94

Rcconclllatlon of thc Strtcmcnt of Rcvenues' Expendlturclr rnd Chrngcs ln Fund Nct Poslllon of Proprlctrry Fun& to lhc Strtcmcnt of Actlvltlcs Totol nct change in fund balanccs - proprietary funds

s 14,477,291

Intemal service fund allocation for proprietary funds

438.578

s r4.9r5.869

Changc in nct position for primary 8ovcmmcnt business'type activities

The accompanying notes are an integral part of thc basic financial statements. 35

5r.t99.2?t

CITY OF AMARTLLO, TEXAS PROPRIETARY FUNDS STATEMENT OF C^SH FLOWS YEAR ENDED SEPTEMBER 30,2()I9

Burincss.Tvnc Activitics. Entcrnrisc Funds

Govcrnmcntll Wntcr rnd Scwer

CASH FLOWS FROM OPERATING ACTIVITIES Cash rcccivcd from third po(ics

$ 75.340,604 $

Drrinage UtilitY

Airoort

Tatol

5,036,709 $ 10,795,084 S 91,172,J97 $ 56,?40,089

Cash rcccivcd from City dcpartments Cosh psymcnts to supplie$ for goods and scrvicc Cosh poymcnB to cmployecs Cash paymcnts for claims and loss

Activilies lntcrnrl Scrrlce Funds

(30,247,103)

(r,42r,6r r)

(5,065,2 r 9)

(36,?34,533)

( r6,995,53 r )

( 14,5 r 8,465)

( r,239,562)

(3,4t1,763)

(r9,r7r,790)

(5,784,948)

(26.r09.6r 8)

adjustmcnts

Nct cosh provided (used) by opcratinS, activities

30.s74.436

2.t75.536

(670,66s)

2-3 r6. r 02

35.266.074

7.849.992

CASH FLOWS FROM NONCAPITAL FTNANCINC ACTTVITIES (35,500)

(706,t65)

Transfers from other funds

t41,2t0

147,210

Sales to other depanments

r2,583 (500,000)

r2,583

Transfers to other funds

Amounts borrowed/repaid from othcr funds

( l 70,645)

Intergovernmental revenue

t,013,2t7

(670,64s)

334,309

(487)

t,073,237 (3.20?.89;)

Arnounts loaned to olher funds Cash paynents received for passengcr

hcility charge

r.398.694

I _398.694

Net cash provided (uscd) by noncapital

financing activitics

2\1.927

1375.707\

1.398.694

r.254.9 t 4

(2.874.071)

(3 l,047,s44)

(2,932,s36)

(7,6il,932)

(4 r.592.0 r 2)

(5.249.277-'

3,599.325

5.523.987

( l,740,000)

( r 4,000,000)

CASH FLOWS FROM CAPITAL AND RELATED FINANCTNG ACTIVITIES Acquisition ond construction of capital !sscts

Copital gants received lssuance ofbonds Principal paid on bond maturitics Principal paid on proportionatc sharc of

t,924,662

(455.000)

Water Authoriry dcbt Principal paid on capital lcasc

(s.s8?,r 25)

Interest cxpcnsc

(7,299,466)

Procccds from salc ofcapitul ussets

(5,587, r 2s)

(246,30s) (r3r,023)

(t,t92,8?7' (7,676,794\

( r r 9,409)

336.205

116.205

5 r 2.393

(s3-423.268)

(3-688-84r) (5.883.630) (62.995;t39\

Net cash provided (used) by capital and related finoncing activitics

(5r0,0d)

( r r.7s0.000)

The accompanying notes are an integral part of the basic financial statements. 36

(6.504. I 70)

CITY OFAMARTLLO,TE)(AS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS, CONTINUED YEAR ENDED SEPTEMBER 30,2()I9

Buslncss.Tvne Activitica. Enlcrorise Funds

Wntcr nnd

Drrinrge

Scwcr

Ulllltv

$ 32,?50,000

$ 6.250.000

Govcrnmcnlnl Activitics Intcrnnl Scnicc Funds

Totrl

Airoort

CASTI FLOWS FROM INVESTING

ACTIVTTIES Proceeds from sales and maturitics of

$ 47.250.000 $

30,700,000

(29,322,8t2)

(26,2s0,t22\

I 62^603

3.1 r9.365

832.304

1.1 52.0 t 4

2 r.046.553

s.282. l 82

Purchase of investmcnt sccuritics

( t 6,309,1 ?3)

(s.753,0s0)

8,250.000 (7,260.5E9)

lnterest and gains on invcstments

2.191.278

I 59.484

r 9-238- r 05

656.434

investment securities

Net cash providcd (used) by investing activities

Net increase (decrease) in cash

(3,378,800) (1,032,578) (r,016,820) (5.428,198)

and cash equivalents

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS, AT END OF YEAR (RESTRICTED AND UNRESTRICTED)

3.0r6.273

3.44.5.997

93.629.9t6

s 90.25r.r r6 $ 2.4r3.4r9

r 00-092.

l 86

r.999.4s3 S 94-663-988 S

3,753,933

9-906-169

I 3_660- I 02

RECONCILIATION OF OPERATING

lNcoME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Opcrating incomc (loss) Adjustrncnts to rcconcilc opcrating incomc (loss) to nct crsh providcd by

7.848,rr3 S 2,618,968 $ (3,977,3s9) $ 6,489,722 $

3,041,855

opcrating activitics:

Dcprcciation and amortization (lncrcase) decrease in accounls rcceivablc

t4,246,222 ( r r0,672)

r65,056 (545,470)

5,267,590 69,229

(586.9 r 4)

(207,r4E)

(lncreasc) dccrease in deferted outflows

(2,724,4t6)

(20 r,4s3)

(3,s7t,t14)

( l,336,247)

322,050

(645,305) 69, I 20

t,6t7

25,21 5

26,832

(s8 l ,282)

l E,97 r

s76,922

538,654

(294,958)

6r,73 I

270,6t4

r r2,091

3t7.260

7.808.408

t4,072

(r99,0r9)

1,623,461

(391 ,0 r 9)

(26,506)

(e4,88 r )

(5 r2.406)

(8,346) (206.050)

281

97.596

(lncrease) decrcass in othcr accrucd rcvcnuc (lncreasc) decrease in prcpaid cxpcnscs

I 9.678,868

8,298.5E9

39r,r70 25,602

(lncrcase) dccrcasc in invcntorics

(s7,23e) (220,254)

lncrease (decreasc) in vouchcn payablc lncreasc (dccrcasc) in accounts psyoble Incrcasc (dccrcasc) in accrued operating cxpcnscs lncrcasc (dccrcasc) in dcfcrrcd inflows lncrcasc (dccrcasc) in customer deposits

97,3 r 5

Incrcasc (dccrcose) in provision for compcnsoted absences lncrcose (dccrease) in nel OPEB liability lncrease (decrease) in net pension liabiliry

( r6s,7s5)

(t5,729)

12,882

( r68,602)

(43,344)

85,237

8.374 277.522

18.239

I I t,850

922.575

5,062,91 3

29,524 t,942,659

3,862,8 l 6

626,622

Increase (dccrcasc) in IBNR accrual

(27,987\

(27.987)

lncrease (dccrcose) in othcr accrucd cxpcnscs lncrease (decrcssc) in cstimatcd claims

(1.754.744\

liabilitics Nst cash provided (used) by operatinS, octivities

NONCASH INVESTING. CAPITAL AND FINANCING ACTIVITIES Amortization of bond prcmiums Dccrcascs (incrcascs) in fair valucs of invcstmcnts

Capital lcase Capital conuibutions to/tiom other funds lnvestment premium/discount amortizrtion

s 30.s74.436 $ s

(752.87t)

2.3?5.536 S 2.316.t02 $ 35.266.074 $

(4,94r) $

(329.6781

(

r36,492) $

($94,304) $

(26.043)

(355.72 l )

7.849.992

(7,566)

(13.229\ 742,945

t74,076

(r0,r50)

3.616

t74,076 (6,534)

The accompanying notes are an integral part of the basic financial statements.

CITY OF AMARILLO,TEXAS TIDUCTARY TUNDS STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2OI'

ASSETS

Prlvitc-

Post

Purpose Trust Funds

Employmcnt Bcnellts Trust Fund

Cash and cash cquivalcnts

3t,772 $

Agency

Fund

788,260

t5.231-S4r S

788.260

100,270

15,t37,271

Inv€stmcnts, at fair valucs

TOTALASSETS

3r.112 $

31,772 $

LIABILITIES Duc to agcncics

TOTAL LIABILITIES NETPOSITION Hcld for o$er govcrnmcnts, lndividuals, €ntitics Nct position rcsrictcd for OPEB

$ s $ 15.237.54 r

TOTAL NET POSTTION

3t-772 $

ts-231.541 S

The accompanying notes are an integral part of the basic financial statcments. 38

788.260 788^260

CITY OF AMARILLO, TEXAS FTDUCIARY FUNDS STATEMENT OF CIIANGES IN TIDUCIARY NET POSTTTON FORTHE FISCALYEAR ENDED SEPTEMBER 30,2()T' Prlvotc.

Post

Purpocc

Employmcnt Bcnell$ Trurt Fund

Trugt Fundr

ADDITIONS Enployer Conuibutions Inrcsurent inoomc (loss)

Total rdditionr

5,722,602

520

0.083.206)

520

4,639,396

DEDUCTIONS Bcncflts pald

3,022,968 r.022^06n

Totd dcdnctions Charyc in na posltlon

NET POSITION, BEGINNING OF YEAR s

NET POSITION, END OF YEAR

520

t,516J28

31,252

13,621,1 l3

7t 77r.

Thc accompanying notcs are an integral part of the basic financial statcmcnts 39

I t t17 q4t

CITY OF AII.IARI LLO, TEXAS STATEI}IENT OF NET POSITION -CO}IPONENTUNITS SEPTEII'IBER 30,2019

Amarillo

Amarillo-

Amarillo

Potter

Housing

HGspital

Economic Development

Events Venuc

Financc

District

Corporation

District

Corporation

Health Facilities Corporation

Local Government Corporation

15,487,5?l

s 17,66t,5l0

s 2,178919

Amarillo

Total

ASSETS

CURRENT..\SSETS Cash and cash equivalents

r 55,259,437

lnvestments Receivables, net

26,530,000

2,?50,000

8,229,324

300,459

Other current assets

Tolal currerlt assets

3,997

499,839

35,973,171

r84,569,499

30,062

8,542,031

t 2,248

3,363,026

46230

3,3t6,796

lnventories and prepaid exp€nses

$ 138335 S -

1,097,97t

977,396

r20,575

l?5,Gr t,200

5L544,4W

5275,608

r r,997,330

6,175,868

1,051,8t4

233,545,698

5t2,087

34O59

138,335

NONCURRENT ASSETS Restricted cash and cash equivalents Receivables, nel

50,0 r2,882

t9,225,012 50,0r2,882

7,t99,374

Olher noncurrent assets Land and buildingheld for fulure incentives Capital assas:

Buildings and impro\€nrents, nel of

$ r87,068,285

s t24,799'0A9 S 16,398,153

DEFERRED OUTFLOTVS OF RESOURCES

s 138,335 S 34,059

554,013 $

s 54,784,?36 S 383,222,s77 s

r.500.000

r,500,000

1,500,000 s

554,013

t3261

13,26t

Defened outflo$'s on n€f pension liability

OF RESOURCES

t49.676,879

54,272,649

I I,t22,545

?L254,600

t2,027-085

Total noncurent assets

TOTAL DEFERRED OUTFLOTVS

t34,66r

t34,66t

Conslruclion in process

Deferad charge on refunding Deferred outflo\rs on net OPEB liability

I t,09r

I t,09t

Equipnrent and vehicles, net ofdeprecialion

TOTAL ASSETS

73,093,859

54,272,649

10,059,640

8,?3 t,8 t 5

29,755

depreciation

13,26t

5s4$r3 $

The accompanying notes are an htegral part of the basic financial statements-

2,067,274

CITY OF AIIIARILLO, TEXAS STATENTENT OF NET POSITION - COIIIPONENT UNITS, CONTINUED SEPTEIUBER 30,2019

Amarillo

Amarillo-

Amarillo

Pottcr

Housing

Hcalth

Hcspital

Economic Devclopment

Events Venue

Finance

Facilities

Dislrict

Corporation

District

Corporation

[,ocal Governmcnt Corlroration

Amarillo

Total

LI..\BILITIES AND NET POSITION CURRENT LI}TBILITIES Accounts pa5able and accrued expenses

55r,08r s

Cunent portion of long-temr obligations Estinrated liabilitl, for incurred losses current porlion

22.000

Total current liabilities

573,08 r

8r5,r57

4,10s,000

7t0,914

r,539 S

2,078,691 4,630,000

525,000

22,000 4,920,157

1235,914

t,539

6.730,69r

9,364,658

2,033,640

5 I,5 13,298

NONCT]RRENT LIABI LITIES Liabilities payable frorn rcslricted assels accrued interest Net pension liability

40,r r5,000

Conrpensated absences

Total noncurrent liabilities

TOTAL LlrtBlLlTlES

65,5 t6

t,742,727 65,5 r6

t2t,398

t2 t,398

1,742.72'1

Nel OPEB liability Estinrated liabilities Self-insured losses, ncl ofcurcnt portion

t56,637

r 56,63?

Noncurrent porlion of long-lcrnr obligations

r9,455

19,455

t,762,t82

40,458,55 t

9,364,658

2,033,640

2,335,263

45,378,708 t0,600,572

2,035, I 79

5i,6 t 9,03 t 60.J49.722

DEFERRED INFLOWS OF RESOURCES Defened inllow

?80,554

t95

'181,749

Total defern:d inflorys of resources

780,554

r95

781,749

29,755

8,73 r,8 r 5

?35,086

6,019,23 r

t,05 r,8 t 4

NET POSITION Net investnrent in capilal asrts

52,239,0W

6r,735,665

Restricled for: Debt servioe Other purposes Unrcslricted

TOTALNET POSITION

I t,997,330 t 73,425.383

4,56r,694 138,335

64,681,32t

7,07 r,045 I 1,997,330

34,059

5t0,548

2.r3,354,340

s 185,452,468 $ 79,432,367 S 6,35r,594 S 138,335 $ 34,059 S sL749,5s7 $ 324,158,380 The accompanying notes are an integral part of the basic financial statements.

CITY OF ANTARILLO, TEXAS STATEI\IENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - CONTPONENT Un.ITS YEAR ENDED SEPTEITIBER 30,2019

Amarillo

Amarillo-

Amarillo

Economic

Potter

Housing

Hospital

Dcvclopment Corporation

Evcnts Venue

Financc

District

Corporation

Health Fecilities Corporation

Local Governmenl Corporation

District

Total

EXPENSES Functions/Programs:

Public health

s 59,547,t40 $

2i,596,36?

2,86t,344

2.6r9.956

366,798

2,986,7s4

24,173,802

3,228,t42

Econonric der,,elopnrent/Tourism lntercst on long term debt

$ 59,547,r40 2,042,52t

2t,553,846

Econonric developnrenl/industrial

Contractual

Total program expeos€s

PROGRAI\I REVENUES Inlergorernmanlal revenuc - op€rating Charges for services / Local Provider Participation

59,547,1,10

Total prograrn re\€nues Net (experse) revenue

442,852

355,752 r r.902,t37

Gain (lcs) on dispcal of property Miscellaneous

2,M2,52t

88,99t,605

?98,60d 15,369,8r9

3,467,682

349,002

r57.853

t35

r8,236

106.359

123

t2.29t.024

3.834.920

r06,359

123

442,852

16,6't5,278

(47.256.t r6)

(20,338,882)

(3,121,783)

t23

(r,599,66e)

(72,316,3271

GENERAL REVENUES 3,t20,780

Gross reoeipts buiness tanes lnv€stnrent eamings (loss)

Total pneral reltnuc Change in net pcilion

NET POSITION, BEGINNING OF YE.\R

-'ET POSITION, En'D OFYEAR

t9,725,232 3,t20,?80

t9,725,232

Sales lares r t,255,8t0

t.r47.t55

I14,407

2,206

75t

t2,520.329

I t,255,8r0

20.872.38'l

3,235, r87

2,206

75r

35,366,34 r

(36.000,306)

533,505

I t3,404

2,329

751

221.452.774

78,898,862

6,238,r90

r36,006

$ 185,452,468 S 79,432,36't S 6,351,594

138,335 $

The accompanying notes are an integral part of the basic furancial statements. 42

(r,59,669)

(36,949,986)

33,308 54,349,226 361,108.366 34,0s9 $ 52,749,557 $ 324,158,380

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE I . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Definition and Scope of Reporting Entity The City of Amarillo (the City) was chartered in 1913, as authorized by a statute enacted by the Texas Legislature that year, as the first city in Texas and fifth city in the United States to adopt the commission form of government. The principal services accounted for as general governmental functions include public safety and health, streets, solid waste, culture and recreation, planning and zoning, a transit system and general administrative service. In addition, the City maintains the water and sewer system, drainage utilities, and the airpoft, the operations of which are accounted for as enterprise funds. The Governmental Accounting Standards Board (GASB) established standards for defining the financial reporting entity. Under such standards, the following entities have been determined to be component units of the City for financial reporting purposes because of their operational or financial benefit or burden relationships with the City. Based on these standards, the City has the following component units:

Discretely Presented Component Units

Amarillo Hospital District The Amarillo Hospital District (the District), the first city hospital district in Texas, was established on March 24,1959, by an amendment to the Constitution of the State of Texas. Its area is co-extensive with the incorporated limits of the City of Amarillo. The facilities built by the District constitute a regional center, serving the populace of an area that extends far beyond the boundaries of the City and county, across the entire Panhandle of the State of Texas and even surrounding states. Because of economic changes in the healthcare industry, in May 1996 the physical plant of the District was sold to a for-profit hospital entity, Northwest Texas Healthcare System, which, as one of the conditions of the sale, assumed responsibility for medical care of indigent citizens of the District to 2021 in exchange for inflationadjusted, annual payments in the range of (in 1995 dollars) $6 million to $8 million. The inflation adjustment ceased in 2006 and the payment is fixed for the balance of the contract, which will be an additional l0 years unless the provider opts to extend the contract an additional l5 years. The quarterly payment to the provider is currently fixed at $1,735,385 per quarter or $6,941,540 annually. Certain public health services, which had been provided by the District, were assumed by the City. The District has no employees, but continues to exist as a governmental entity. Effective October l, 1996, the City assumed rCsponsibility for serving the District as its fiscal agent for purposes of maintaining its financial records. However, since the sale of the hospital, the District has not had to levy an ad valorem tax. The earnings from the sales proceeds together with the funds on hand at the time of the sale have been sufficient to fund indigent care payments and other expenses of the District.

The District currently collaborates with Northwest Texas Healthcare System to ensure both parties best allocate their resources for the provision of care to the low income and needy residents in their community. As part of this collaboration, Nofthwest has proposed that the District fund payments to Northwest under the Medicaid program ("Medicaid"). Accordingly, the District suspended the "lndigent Care Agreement," which was part of the sales agreement and replaced it with an almost identical agreement called the "Health Care Services Agreement." With the suspension of the "lndigent Care Agreement," the District was no longer obligated to make indigent care payments. However, the District funded Northwest Texas Hospital's Medicaid program. The "lndigent Care Agreement" was amended to extend thc suspension through May 8,2021. The District is prepaid through May 8,2020 and has provided $76.2 million in funding to the Medicaid program versus $93.7 million in indigent care payments that would have been due under the contract.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE r - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Definition and Scope of Reporting Entity (Continued) On August 8,2017 the Amarillo Hospital District held a public hearing and created a Local Provider Participation Fund (LPPF). At the same meeting the District set the mandatory payment rate for the 2017 fiscal year 2% of net patient revenue as reported in the 2015 American Hospital Association Annual Survey of Hospitals. The mandatory payments will be deposited into the LPPF. The funds may be used to support the nonfederalshare of payments described in Section 2954.103(c)(l) of the Health and Safety Code. The LPPF is broad based as it applies to all nonpublic hospitals located in Amarillo Hospital District that provide inpatient hospital services. The formula for calculating the mandatory payments is the same for each hospital (2% of net patient revenues). No hospitals are held harmless or exempt from paying the mandatory payments. On December 7,2018, the District funded $23,300,360 from LPPF for an intergovernmental transfer for uncompensated care program.

The District is considered to be a part of the City's financial reporting entity because its Board of Managers is appointed by the City Council and, additionally, the City Council has final authority over any tax lely and the total amount of the annual budget. The Boards are not substantially the same, nor does the District provide services to the City. Amarillo Economic Development Corporation The Amarillo Economic Development Corporation (AEDC) is a nonprofit corporation that was formed in 1990 for the purpose of increasing employment opportunities, primarily through assisting qualifying enterprises with funds provided by a portion of the local sales tax. Assistance may be in the form of incentive grants, loans, or leases which call for either discounted rates or rebates based on job developmeht and or local spending. The City serves as fiscal agent for AEDC's funds as well as its accounting records. AEDC is considered to be a part of the City's financial reporting entity, because the City Council appoints its Board of Directors and approves its budgets. The Boards are not substantially the same, nor does AEDC provide services to the City. Amarillo-P otter Events Venue District

The Amarillo-Potter Events Venue District (Venue District) was established in January 1998, upon the approval of the voters of the City of Amarillo and Potter County to create a.vehicle for financing,a llvestock arena and expansion of the Civic Center. In December 1998, the District issued $10 million in bonds to finance the first phase of this construction, consisting of the livestock arena, and in December 2000 the final $6.75 million of bonds were issued to fund the Civic Center expansion. In November 2005, the District refunded the 2000 bond issue, and in 2016 the District refunded the 2005 bonds. The 1998 Bonds were refunded in 2009. Debt service is provided by a 2Yo hotel occupancy tax and a 5% short-term motor vehicle rental tax, which became effective April l, 1998. Should such tax revenues be insufficient, a rerrtal payment from the City for use of the expanded Civic Center facilities is required. The City's rental obligaiion is the greater of any $10 per month or any shortfall in the debt service fund due to insufficient Venue District tax receipts. The City serves as a fiscal agent for Venue District funds as well as the accounting records. The Venue District is considered to be a part of the City's financial reporling entity, because the City's mayor appoints four of the seven rnembers of the Vettue District's Board of Directors. However, the Boards are not substantially the same. Amarillo Hous ing F inance Corporat ion

Arnarillo Housirrg Finance Corporation (AHFC) was established to provide funding for honre purchases by low- to moderate-incorne persons and families. Under the current program, moftgage loarrs are restricted to first-time hornebuyers in targeted areas of the City. Beginning in April 1996, it has issued single-family mortgage revenue bonds irr the principalarnounts of $15,700,000, arrd $10,000,000 in 2003. The bonds are purchased by Freddie Mac, loans are made by local lending institutions, and the fundingof the rnorlgages with the bond proceeds is handled by the trust departrnent of a financial institution. The City servtfas fiscal agent for AHFC. AHFC is considered to be a patt of the City's financial reporting 44

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Definition and Scope of Reporting Entity (Continued) entity, because the City Council appoints its Board of Directors and has discretion over their terms of office as well as the programs and activities of the Corporation. The Boards are not substantially the same, nor does AHFC provide services to the City. Amarillo Local Government Corporalion

Amarillo Local Government Corporation (LGC) is a nonprofit corporation thatwas formed March 20ll for the purpose of aiding and assisting the City to promote the development of the geographical_area of the City. The City serves as fiscal agent for LGC funds as well as its accounting records. LGC is considCred to be a part of the City's financial reporting entity, because the City Council appoints its Board of Directors, however the Boards are not substantially the same.

Amarillo Health Facilities Corporation The Amarillo Health Facility Corporation (the Corporation) was established to assist the public health function. This Corporation can provide for the acquisition, improvement, renovation, furnishing or equipment of a project that is determined by the Board of Directors, who are appointed by the City Council, to be required, necessary or convenient for health care, research, and education within the State of Texas to assist the maintenance of public health. Assistance may be in the form of the issuance of bonds and loaning money to these providers of health care services. The City serves as fiscal agent for the Corporation finds as well as its accounting records. The Corporation is considered to be a part of the City's financial reporting entity, because the City Council appoints the Board of Directors and has the authority to approve the budget.

While the above-named entities are considered part of the City's overall reporting entity, they are discretely presented in a separate column of the City's combined financial statements to emphasize that they are legally separate from the City. Blended Component Units Tax Incremenl Reinvestment Zone #I

The Tax Incrernent Reinvestment Zone Number One (TIRZ #l) was created by the City Council in FY The purpose of the 2007 pursuant to the Texas Tax Increment Financing Act, Tax Code, Chapter 3l zone is to promote the development of or redevelopment of certain contiguous geographic areas in the City. The operations of TIRZ #l benefit the City's redevelopment of downtown. TheCity Co_gnc[ has final approval authority on the budget and all TIRZ#l projects and issues debt on behalf of TIRZ #1. TLRZili revenues are pledged toward repayment of the debt. The operations of TIRZ #l are included in the governmental activities of the governmerrt-wide financial statements as a separate special revenue

fund. Tax Increment Reinveslnrenl Zone #2

The Tax Increment Reinvestment Zone Number Two (TIRZ #2) was created by the City Council in FY The purpose of the 2017 pursuant to the Texas Tax Increment Financing Act, Tax Code, Chapter zone is to promote the development of or redevelopment of certain contiguous geographic areas in the City. The City Council has final approval authority on the budget and all TIRZ #2 projecls. flrq opirations of TIRZ #2 is included in the governmental activities of the government-wide financial

3ll.

statements as a separate special revenue fund.

The component units separately issued financial statements may be obtained by contacting the Director of Finance, City of Arnarillo, P.O. Box 1971, Amarillo, Texas 79105. 45

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Entled September 30, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) repoft infonnation on all of the nonfiduciary activities of the primary government and its component uhits. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reponed separately. from certain legally separate iomponent units for which the primary government is financially accountable. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: l) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are repofted instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds on the basis of acCounting applicable to funds-based financial statements. A separate financial statement is also provided for fiduciary funds, which with respect to the City comprise only cash and investments which are handled by the City in the capacity of an agent. These assets are excluded from the Statement of Net Position because they do rrot represent resources of the City.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are repofted using the economic resources measurement focus and fie accrual basis of accounting as are the proprietary flund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for whichlhey are

levied. Grants and similar iterns are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial staternents are reported using the flow of current financial resources measurement fbcus and the rnodified accrual basis of accounting. This means that only current assets and current liabilities are generally included on the balance sheets. The reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financing uses) in net currellt assets. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is ittcurred, as under accrual accounting. However, debt service experrditures, including employee termination payments rnade by the Compensated Absences Fund, are recorded only when payments are due. Sales taxes are considered "measurable" when in the hands of the State Cornptroller and are recognized as revenue at that time. Other rnajor revenues that are determined to be susceptible to accrual include property taxes, utility franchise taxes, interesto rentals, charges for services, and intercity charges. Waste collection fees are recorded as revenue when billed, which is on a cycle billing basis. Intergovernmental grants or revenues based on thc "reimbursements of expenditures" concept are recorded as revenues when ihe related expenditures are made. Other intergovernmental revenues are reflected as revenues at the time of rcceipt or earlier if the availability criterion is met.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The City reports the following major governmental funds:

The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. The Capital Projects Fundis a combination of all capital outlay funds, which accounts for construction projecti that are financed primarily by general revenues, as well as accounts for the resources set aside to fund the City's capital plans with respect to projects including streets.

All proprietary funds are accounted for on a cost of services or "flow of economic resources"

measurement focus. This means that all assets and all liabilities (including capital assets and long-term debt) associated with their activities are included on their balance sheets. Costs of provldjng goods and services during the period include depreciation on capital assets. All proprietary funds follow generally accepted accounting principles prescribed by GASB.

Consequently, their affairs are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. The City reports the following major proprietary funds:

The llater and Sewer Fund accounts for the provision of water and sewer services to residents and commercial enterprises of the City and proximate area. The Drainage Utility Fund provides for a dedicated funding source for the operations and maintenance of the existing storrn-water system.

The Airport Fund accounts for the operation of the City's inte,rnational airpoft, which provides runway and pasienger services as well as leases former U. S. Air Force facilities to commercial tenants.

Additionally, the City repofts the following fund types:

Four inlernal service funds account for fleet services, information services, risk management, and

employee health services provided to the other departments of the City on a cost-reimbursement basis.

Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the City under the terms of a formal trust agreement. Post Ernployment Benefits Trust Fund - This fund was established by the City effective January 2013 to account for funds to finance other post employment benefits paid by the City and the payment of these benefits as they corne due. The fund presently is accounting for the payment of retiree's benefits on a "pay as you go basis.

The private purpose trust funds account for activities that are not City programs, but are programs sponsored by individuals, private organizations, or other governments. Although the City serves as fiscal agent, the funds received and held under the Centennial Parkway fund, the Indigent Dog Bite Victim fund and the Arnarillo Industrial Development Corporation are not available to support the City activities and programs, but are received and held for individuals, private organizations or other governments. The agency fund is custodial in rrature and does not present results of operations or have a measurement focus.- The Civic Center Operations fund is used to account for assets that the City holds for others in an agency capacity.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINAI\CIAL STATEMENTS Year Ended September 30' 2019 NOTE l - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are administrative service charges and payments in lieu of taxes between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include: l) charges to customers or applicants forgoods, seruices or privilege-s provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include alltaxes and investment revenues.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water and Sewer Fund, the Drainage Utility Fund and the Airport Fund are charges to customers for sales and services, including tap fees intended to recover the cost of connecting new customers to the water and sewer system. The principal operating revenues of the internal service funds are charges to other funds for services and allocations of self-insurance costs. Operating expenses for these funds include the direct costs of personnel, supplies, and similar items needed to render the sales and services, including depreciation on capital assets, as well as administrative expenses. All revenues and expenses not meefing this definition, iuch as investment earnings and passenger facility charges, are reported as nonoperating revenues and expenses.

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. Estimates Inherent in Financial Statements Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The estimated liabilities related to self-insurance costs, net pension liability and net OPEB liability are material estimates that are particularly susceptible to significant changes in the near term. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position

or Fund Equity Deposit.s and Investntents

With the exception of cenain restricted and special funds, the City pools the resources of the various funds in order to facilitate the management of cash. Records are maintairred that reflect each fund's equity irr the pooled account. For financial reporting purposes a portion of the investmerrt portfolio is classified as equi valent to cash. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less, whi ch present an insignificant risk of changes in value because of changes in interest rates.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position

or Fund Equity (Continued) Debt securities held by the City's various operating and reserve funds are valued at fair value.

Inlerfund Rece ivable and, Payables

Activities between funds generally represent payment of charges to various departments for services rendered by other departments, reimbursements for allocated shares of expenditures, transfers of the City's unrestricted resources to supplement the inter-governmental grants and similar restricted resources of special revenue funds, and tiansfers of resources set aside to fund the long-term capital plan. Outslanding balances of these activities are repofted as "due to/from other funds" and "advances to/from other funds-." Any residual balances outstanding between the governmental activities and business-type activities are repofted in the government-wide financial statements as "internal balances" and "advances to/from other funds." Other Receivables Receivables of both governmental and proprietary funds are reported in the government-wide financial statements on the accrual basis of accounting.

In the governmental fund financial statements, receivables are comprised of those amounts that are consideied to be both measurable and available as defined under the modified accrual basis of accounting. As a city ordinance prohibits the appropriation of property taxes until collected, the entire amount of such taxes considered measurable and available has been reserved. Taxes receivable other than property taxes are reflected as accounts receivable (gross receipts business taxes) or due from other governments (sales taxes collected and disbursed by the State). Solid waste disposal fees are recorded when billed on a cycle billing basis. Most.intergovernmental grants^provide for.reimbursement of actual costs, and the related revenues are recognized in the fiscal period of the underlying expenditures. Because payments on paving notes and assessments are uncertain and often long deferred, they are reflected as revenues when collected.

Receivables of proprietary funds are recorded when eanred. Unbilled water and sewer revenues are estimated and accrued at year-end.

All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Invenlories, Prepaid and Unearned Revenue Inventories of supplies are reflected at cost, determined on an average-cost basis. Inventories of motor fuel and oil are maintained by Fleet Services (an internal service fund), while all other inventories of materials and supplies, including water and sewer pipeline and related stores and automotive parts, are rnaintained by the General Fund, being recorded under the "cortsumption method" as inventory acquisition (current assets) at tlre time the inventory items are purchased, and charged to the various funds and departments of the City on the basis of requisitions.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both governmerrt-wide and fund financial statements. Such items include payments of the housing assistance program which must be disbursed before fiscal year-end in order to be received by the vendori on October l, but are obligations of the fiscal year beginrring orr that date.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE l - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position

or Fund Equity (Continued) Unearned revenues reported in the governmental fund financial statements generally represent delinquent taxes in excess of amounts currently available and advance rentals collected by the City's auditoriumcoliseum complex.

Provision is made in the Risk Management and Employee Insurance funds (rzternal serttice funds) for the estimated amounts of liabilities related to incurred claims, including provisions for future settlement payments of both known and unknown loss events. Restricted Assets

Certain resources of the TIRZ #l Fund, the GO Bond Construction Fund, the Civic Center Improvement Fund, Fleet Services Fund, Water and Sewer Fund, the Drainage Utility Fund and the Airport Fund are set aside for the construction and purchase of capital assets as well as repayment of its revenue bonds under applicable bond covenants. Such resources and the related liabilities payable out of those resources are reported in the financial statements as noncurrent assets and liabilities.

Capital Assels Capital assets consist of property, plant, equipment, and infrastructure assets (streets, alleys, overpasses, curbs and gutters and drainage systems), as well as the cost of construction projects in process. Items having a value of more than $5,000 are capitalized. The costs of normal maintenance and repairs that do not add to the value of assets or materially extend their lives are not capitalized.

Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets of the proprietary funds are also reported in the applicable financial statements, but capital assets are not included in the governmental fund financial statements.

Capital assets are stated at historical cost or at acq uisition value at date received, if donated, net of le depreciation. Material interest costs incurred during capital construction performed by type funds are capitalized. Interest expense incured by the governmental funds is not cap

Depreciation of all exhaustible capital assets used by proprietary funds is charged as an expense against their operations. Depreciation of capital assets used in governmental fund activities is reported only in the governmerrt-wide financial statements, Property, plant, equipment and infrastructure are depreciated or depleted over the estimated useful lives using the straight-line method. The estimated useful lives are generally within the following ranges: Buildings and improvements Streets and related infrastructure

Traffic signals Landfill improvements Water supply contract Water rights Water pipelines

Sewer pipelines Runways and related improvements

30-40 years 50 years 30 years 40 years 85 years

Motor buses

20-100 years 50 years

75 years I 0-30 years

7 years

Automobiles, vans

3-7 years

Data processing equ ipment Machinery and other equiprnent Office equipment Library books

5 years 7-30 years 5-10 years I 5 years

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE l - SUMMARY OF SICNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position

or Fund Equity (Continued) Intangible Assets Intangible assets consist of right-of-way easements. The right-of-way easements have an indefinite life and, accordingly, are not subject to amortization. Details relating to the City's intangible assets are provided at Note 7. Compensated Absence

City employees are entitled to paid vacation and sick leave, based on length of service, which ac-cumulate and pariially vest. The Cityb vested obligations under this policy are accrued and are reflected as liabilities in the government-wide and proprietary fund financial statements. Employees eligible for time-and-a-half overtime can accumulate paid time off in lieu of overtime pay. In aaaition to am-ounts for accumulated paid vacation and sick leav'e, comp time in lieu of overtime id also reflected as a liability in the government-wide and proprietary fund financial statements.

Long-Term Obligations Long-term debt and other long-term obligations are reported as liabilities in the government-wide and proplietary fund financial statements. Bonds payable are reported net of related discounts which are amortized over the terms of the related debts.

In the fund financial statements, governmental fund types report the proceeds of debt issuances, net of discounts, during the current period as other financing sources. 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/deductiotts from TMRS' 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 legaily due. Berrefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resodrces related to pensiorrs, and pension expense, information about the Fiduciary Net Position of the Amarillo Firemen's Relief and Retirement Fund (FRRF) and additions to/deductions from FRRF's Fiduciary Net Position have been determined orr the sanre basis as they are reported by FRRF. 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. O t her P os te mploy me n I BeneJits

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resoi.rrc6s related to OPEB, and OPEB expense, inforrnation about the fiduciary net position of the City's Post Employment Health Plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For purpose, the Plan iecognizes benefit payments when due and payable, in accordance with the benefit terms. Investments are reported at fair value. 5r

or Fund Equity (Continued) D eferre d Ou tfl ows/ Infl ows of Re s ourc e s

In addition to assets, the statement of net position includes a separate section for deferred outflows of resources, This separate financial statement element, deferred outflows of resources_, represents a consumption of net iosition that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. At Septembgr 3Q, 2019, the City^has three items that qualify for repord'ing in this category-a deferred charge on refunding of bonds, a deferred outflow related tb the City's net penlion liabilityand the net OPEB liability. Deferred Outflows of Resources Defened charge on refunding Deferred outflow related to the net pension liability

$ 2,821,883 30,558,759 21,733,557 3 250-038

TMRS FRRF

Defered outflow related to the OPEB liability

$_r&3ct^zu

Total Deferred Outflows of Resources

In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. This separate financial statement element, defened inflows of resources, represexts an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resburces (revenue) until that time. At September 30, 2019, the City had three items which qualiff for reporting in this category-defened inflow related to the City's deferred gain on refunding, net pension liability and the net OPEB liability. Defered Inflows of Resources Deferred gain on refunding Deferred inflow related to the net pension liability

$ 2,376,039

TMRS

1,969,991

FRRF

2,477,526

Deferred inflow related to the net OPEB liability

637,083

$ 7.460.639

Total Deferred Inflows of Resources Net Position

In the government-wide firrancial statements, the difference between the City's total assets, deferred outflowi of resources and liabilities and deferred inflows of resources represents net position. Net position displays the following three cotnponents:

Net inve.stntent in capital ossets This amount cottsists of capital assets net of accumulated depreciatiorr and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. Restricted net position - This amount is restricted by creditors, grantors, contributors, or laws or regulations of other governments.

IJnrestrictetl net po.sition - This an'rount is the net position that does not rneet the definition of "net investment ih capital assets" or "restricted net position." It represents the atnount available for future operations. 52

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position

or Fund Equity (Continued) Fund Balances In the governmental funds financial statements, fund balances are classified as follows:

Includes amounts that cannot be spent.because they are not in Nonspendable fund balance speniiable form or they are legally or contractually required to be maintained intact.

Restricted fund balance Includes amounts that are restricted to specific purposes because of state or federal laws or externally imposed conditions by grantors or creditors.

- Includes amounts that can only be used for specific purposes as pursuant to official action by the City Council prior to the end of the reporting period. Commitments are made and can be rescinded only via resolution by the City Council. Committed fund balance

- Comprises amounts the City intends to use f9r a^qpec1fic purpose but is neitli'er restricted nor commifted. The formal budget as approved by the City Council authorizes the City Manager to assign fund balance.

Assigned fund balance

Unassignedfund balance - Represents fund balance that has not been assigned to other funds and has noibeeri restricted, committed, or assigned to specific purposes within the general fund.

When restricted and other fund balance resources are available for use, it is the City's policy to use restricted resources first, followed by committed, assigned and unassigned amounts, respectively.

Prior Period Adjustments The setup of certain fixed assets in the fixed asset software allowedTor excess depreciation. Total net position at the beginning of the year was increased by $ 1,378,097. The Ciry has capitalized two leases bntered into duri-ng FY 201S.- This has irrcreased capital assets $1,460296, increased liabilities $1,618,922 and decreased beginning net position $158,525. The Pinnacle PID was established in FY 2018. A prior period adjustment of $336 to beginning fund balance was required. Govemmcntal Busincss-typc

Activities

Activitics

Tot{l

Componcnt Units

$ 396,165,877

$ 533,173,917

$ 929,339.794

$ 36r.108.366

626,689

75 t.408

t.378,097

Net poshion at Scptcmber 30,2018 as prcviously rcportcd

Prior pcrbd adjustmcnt rclatcd to capitalassets Prior pcriod adjustmcnt rehted to capital leases Prior pcrbd adjustment rehted lo public irnprovcntcnt districts

Nct position at Scptcmbcr30,2018, as rtstrlcd

( r 58,626)

( r 58.626)

(336)

s 396.633.604

s 533,925,325

$ e30.558.929 $ 36r.108.366

Change in Accounting Estimate

During 2019, the City changed the rnethodology used to estimate the long-term portion of the incurredbut-not-reported claims (IBNR). The new rnethodology is based on current industry best practices and trends which incorporates a factor arrd/or margin percentage to calculate large clairns IBNR. The change in estimate has decreased the Employee Insurance fund IBNR reserve, long-term portion, by approximately $3,800,000. 53

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Endetl September 30, 2019 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgetary Information

As provided by state law, the City follows these procedures in establishing the annual budgetary data reflected in the financial statements.

At least 30 days prior to the time when the City Council makes its tax levy for the commencing fiscal year beginning October l, the City Manager, as budget officer, files a proposed opelqtiqg budget, including^ proposedexpenditures and th-e meani of financing them. Such budget is_available for the_inspection of anytaxpayer, and public hearings are conducted subsequent to the time of fili4g. Prior to October l,_the budget is legally enacted through passage of an ordinance. Under the City's budget ordinance, the City Council has authority to make such changes in the budget as it deems wamanted. Additionally, the City Manager is authorized to transfer budgeted amo-unts amoqg departments and among expenditure- codes within any department or fund. The legal level of control (the level at which expenditures may not legally for each fund is the fund's total expenditure budget. Accordingly, revisions that exceed appropriations) -the iotal expenditures of a fund must be approved by the City Council. Except for the increase employment of encumbrance accounting, budgets are adopted consistent with generally accepted accounting principles. Unencumbered appropriations lapse at year-end. The annual formal appropriated budget as described above is employed as a management-control device during the year for thb General Fund, the debt service funds, and special revenue funds,and those grant funds-which are necessarily budgeted on a contract-period basis differing from the City's fiscal year. Expenditures for the public improvement districts are being gontrolled by long-term service. plans all6cated in relation to available, property-owner assessments. The service plan is the approved budget for the individual Public Improvement District, The following funds with legally adopted budgets have a budgetary comparison presented: the General,Fund, Debt Service. Fund, Compensated Absence Fund and certain non-major special revenue funds. The non-major special revenue funds with legally q{opt_e! budgets are as follows: Court Technology and Court Security Fund, Public Health Fund, LEOSE Training Fund, Local Seized Property Fund and the Public Improvement Districts, Budgeted amounts reflected therein are as originally adopted or, if applicable, as last amended by the City Council. Grant funds not included in the annual appropriated budget are subject to management control by means of project-length budgets authorized by the City Council in the grant application processes. Cumulative expenditures through September 30,2019, were withirr the limits prescribed by such budgets.

Capital outlay is corrtrolled through formal, job cost accounting, in which available monies are allotted ambng the planned construction and capital acquisition undertakings, and costs are accumulated subject to such allotments. Unencumbered appropriations do not lapse at year-end for Capital Projects Funds. The City adopts five-year, capital outlay plans to budget such projects. Encumbrance accountirrg, under which purchase orders, contracts and other committnents for the expenditure of monies are recorded in order to reserve that portion of the applic_able appropriation, is erriployed as an extension of formal budgetary integration in the governmental funds. Encumbrances out'standing at year-end are reported as reservations of fund balances, since they do not constitute expenditures or liabilities. Total encumbrances outstanding as of Septernber 30,2019, for General Fund

ard $316,106, for Special Revenue Funds are $407,051, for Capital Project Funds are $7,548,351 for Water and Sewer Frind are $348,501 , for Airport Fund are $20 I ,196, for Drainage Fund are $7 ,447 , for Fleet Services Fund are $2,002,449, for lnformation Services Fund are $42,811, for Risk Management Fund are $529,756.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Equity During the fiscal year ended September 30,2019, the Tax Increment Reinvestment Zone #l Fund had a fund deficit of $299,214, the Golf Course Improvement Fund had a fund deficit of $14,028 and the Miscellaneous Special Revenue Fund, Court Security Fund, had a $6 fund deficit. NOTE 3. DEPOSITS AND INVESTMENTS

All of the City's demand deposit and time accounts are held in a local banking institution under terms of a written depository contract. All of the City's demand and time accounts are insured or registered or held by the City or its agent in the City's name. Under the Revised Statutes of the State of Texas, all deposits, to the extent not insured by the Federal Deposit Insurance Corporation (FDIC), must be collateralized by securities or insured by a bond. At September 30, 2019, demand deposit and time deposits held by the depository institution, before reduction for checks issued and not presented, were in the total amount of $26,746,702. The accounts are collateralized by pledged securities of $35,700,001. The City has a secondary depository institution with demand deposits of $149,399, These amounts are secured by FDIC insurance.

Time certificates of deposit with original maturities of more than three months are classified as investments for financial reporting purposes.

The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the area of investment practices, management reports and establishment of appropriate policies. With the exception of the assets of the deferred compensation plan and pension assets, all investments are administered by City management under terms of an investment policy and strategy that is updated to conform to the Texas Public Funds Investment Act (the Act) as last amended. The preservation of capital is th.e City's most important investment objective.. Other objectives include. providing. liquidity. and maximizing earnings within the constraints of the other objectives. The City is in substantialcompliance with the requirements of the Act and with local policies. Under the City's policies, the maximum dollar weighted-average maturity of the investment portfolio may not exceed one year, and 80% of the portfolio must be in investments with maturities of two years or less. At Septernber 30,2019, the weighted-average maturity of the City's total investment securities was 0.75 years.

The City will only invest in the following types of securities:

. Bank money market funds and other interest-bearing accounts at the City's authorized depository. . Direct obligations of the United States government. . Obligations of agencies and instrumentalities of the United States, limited to 75% of the portfolio. . Highly rated investment pools and no-load money market mutual funds (AAA or AAArn). . Taxable municipal bonds, limited to l0% of the portfolio.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 3 - DEPOSITS AND INVESTMENTS (CONTINUED)

. Certificates of deposit including CDARS (Certificate of Deposit Accounts Registry Service). . For bond proceeds only, fully collateralized, flexible, repurchase agreements. Investments are separately owned by the various funds. Under applicable bond ordinances, funds of the Waterworks and Sewer Revenue bond redemption and reserve accounts may be invested only in U.S. Government or agency obligations or in obligations guaranteed by the U.S. Government or by its agencies. Funds not so invested are to be maintained in the City's depository and secured as provided by law. The City's investment policy also sets forth specific, investment requirements and strategies for its various fund types. The City does not enter into reverse repurchase agreements. All securities are held by the City's agent in the City's name.

Interest Rate Risk: In accordance with the Investment Policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of the investment portfolio to less than twelve months and requiring that 80% of the portfolio must be in investments with maturities of trvo years or less.

Credit Risk: The City invests in direct obligations of the United States and obligations of agencies and instrumentalities of the United States. The Policy also allows for the investment in taxable municipal securities rated not less than AA- (or equivalent). The City does not have any commercial paper or taxable municipal security investments at this time. The City does invest in a treasury only and a government agency no-load money market mutual fund that is continuously rated AAA or AAAm (or equivalent). Concentration of Credit Risk: As stated in the Investment Policy the City will diversiff investments when purchasing agency securities or commercial paper to avoid a concentration in one agency or company.

Custodial Credit Risk Deposits: In the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The City has tri-party agreements with both depositories and a third-party financial institution (Federal Reserve Bank) that holds pledged collateral in a ieparate custody account for the benefit of the City. All City deposits are fully collateralized by these pledged securities.

Custodial Credit Risk - Investments: For an investment, this is the risk that, in the event of the failure of the counterparfy, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City contracts with an outside financial institution as custodian for all investment transactiorrs and all irrvestmerrt transaction are made on a delivery versus payment method with the outside custodian. The securities are held in the City's name in a separate account. Access to this account is limited to the approved Investment Officers.

A summary of investment securities of the City at September 30,2019, and the corresponding weighted average maturity is shown in Table I below:

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 3 - DEPOSTTS AND INVESTMENTS (CONTINUED)

lnvcslmcnt Sccuritics U.S. Trcasury Obligations

llnrcatrictcd

Fnir Vnluc Rcstrictcd

Assels

s 24,035,560 72,750,85?

U.S. Govcmmcnt Sponsorcd Agrncies

Wcightcd Arrcrngc

Mrrurltv (Yern)

Toa!l

s 24.035.560

1.04

4,735,622

77,4E6,479

0.79 0.8s

96,786,4t7

4,735.622

r0 1.522.039

Noload U.S. Trcasury-only mutual funds

63.3 l s,649

9l ,014,3 l2

I 54,329,96

Total invcstmsnts

160,102,066

95,749,934

255,852,000

0.34

22,653,358

9.000.000

3 r.653,358

0,41

t82,755,424

104,'t49,934

287,505,358

0.35

(63,3 l 5,649)

(9r.014.3 l2)

0 54,329,96 t )

g n9.439.775

-J-W-

t r33.175.397

Total investment securities

Add: Time deposits with original maturilics ovcr lhrcc months

Total invcstmcnts Deduct: Cash oquivdents

Nct lnlrslmcnls for llnrnclll rcponlnS

0,?5

I'ablc I .- lnvcstmcnt Scuritlcs and Corresponllng WclShld Avcrugc Ma,uilly

NOTE 4 - FAIR VALUE MEASUREMENTS The City adopted Governmental Accounting Standards Board's (GASB) Statement No. 72, Fair Value Measurement and Application The standard established a three-level valuation hierarchy for disclosure based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hieiarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level3 measurements). An asset's fair value measurement level within the hierarchy is based on the lowest level of input that is significant to the valuation. The three levels are defined as follows:

o Level I - Quoted prices for identical assets or liabilities in active markets. o Level 2 - Observable inputs other than Level I 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.

o Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The City uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the City measures fair value using Level I inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs were used only when Level I or Level 2 inputs were not available.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 4. FAIR VALUE MEASUREMENTS (CONTINUED) Assets Measured at Fair Value on a Recurring Basis ['qir Vrlrre Melsrrrpmenlq I lcinor

Feir Vrlue

Quoted Prices

Significnnt

ln Activc Markets for

Observablc

Identical Assets (Level l)

(Level 2)

Other Inputs

Significnnt Unobservable Inputs (Level 3)

Sep!s!sJ9-20!9: Ccrtificatcs of Deposit U.S. govcrnmcnt and agcncy obligations Mutual funds - money market

Total

3 I,653,358

t 0 t.522,039

1,653.358 $

r,522,039

r sd ?r0 06t

I 54 ?29 061

$ 287.505.3.58 $_101"52Am9 $_r859$3r9

For the valuation of certain U.S. government and agency obligations and taxable municipal bonds at September 30,2019, the City used quoted prices in principal active markets for identical assets as of the valuation date (Level l). For the valuation of CDARS, certificates of deposit, and money market mutual funds at September 30, 2019, the City used significant other observable inputs as of the valuation date, particularly dealer market price for comparable investments as of the valuation date (Level 2). The valuation method for investments measured at net asset value (NAV) per share (or its equivalent) is presented in the following table:

OPEB Trust

Fair Value

Redemption Frequencv

Redemptio n Notice Period

$15,137,27 |

Daily

None

The Trust OPEB Funding Program investment utilizes a growth strategy seeking both a reasonable level of income and long-term growth capital and income. The Program invests in eight index and mutual funds. The fair values of the underlying investments are used to determine NAV per share (or its equivalent) of the Trust OPEB Funding Program investment. Assets Measured at Fair Value on a Nonrecurring Basis

There were no fair values of assets and liabilities measured on a norlrecurring basis at September 30, 2019.

NOTE 5 - TAXES Property taxes attach as an enforceable lien on property as of January l, are levied on October I of the sarne year, and unpaid taxes become delinquent after the following January 31.

The City Charter provides flor a maximum tax levy of $1.80 per $100 of assessed valuation, of which any in excess of $1.30 is linrited to debt service for waterworks bonds, and of which up to $0.05 is pledged for

Airport Maintenance to the extent Airport revenues may not be available.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE s - TAXES (CONTINUED) The combined tax rate of the 2018 tax roll for the 2018/19 fiscal year was $0.38851 per $100 of assessed valuation, resulting in a tax levy in the amount of $46,446,992 on taxable value of $13,149,054,756. Property taxes receivable at September 30, 2019, are reflected in Table 2 below:

Year of Lew 2019

$ 452,553

2018 2017

1t6,877

t83,266

20t6 2015

91,243 76,857

2014

69,528

20r3

59,482 52,830 57,965 52,993 39,857

2012

20n 20r0 2009

30,675

2008 2007 2006

26,071

24,923 59.7r 8 1,394,838 r . r 44.870

Prior Total taxes receivable Less: Allowance for estimated uncollectible portion Net taxes receivable Less: Provisions for collections defened over 60 days Amount available (reserved in accordance with City ordinances) Table 2

249,968 113.543

s_J6A25

- Taxes Recelvable at Septenber 30, 2019

Beginning July I , 1996, Potter and Randall Counties assumed responsibility of tax collections for various taxing enfitieswithin their borders, including the City of Ama-rillo. The cost of this service is included in the General Fund. The Potter-Randall Appraisal District performs the appraisal function. The total City sales tax rate is 2%o,which includes a l/2-cent sales tax collected by the AEDC limited to development purposes.

NOTE 6. RESTRICTED ASSETS, LIABILITIES AND RESERVES As required by bond indentures, the Water Sewer System, Drainage Utility, Airport, and Fleet Services maintain separate accounts for revenue bond debt service/retirement which are reported as noncurrent assets and related liabilities, and restricted net position, as reflected in Table 3; Rclnted

Restricted

Linhilifias

A ccefc

Restricted Nat Pnsilinn

General Fund

llotel occupancy tax account

t.J84.t2t

{

s r.584.r2r

Total bond debt service/retirement

$. . -r.584J2r

s___Lr&il2t

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 6 - RESTRTCTED ASSETS, LIABILITIES AND RESERVES (CONTINUED) Relrted

Restricted

Rcstricted Nef Dncitinn

l.iqhilitiec

A sccfc

Bonded Debt Service Fund

2.752

s 3.04t.9t I

2.752

337.5r r

337^5ll

337.51I

(

Bond proceed account

s r.r44.966

552.r 17

Totrl bond debt service/rctirement

$_ru44166

$_$Lru

s r0.625.512 $_10t26.6U

Bond proceed account

$ 32.42 r.089

s 32.42r.089

Totel bond debt service/retirement

s_32^42L089

$ 32^421-08q

Bond interest and redemption

Total bond debt service/retirement

$ $

3.044.663

s s

337.51 l

3.044.663

3.041.91I

General Construction Fund Bond procccd account

Totrl bond debt service/retirement Civic Center Imorovement Fund

s s r

GO Bond Construction Fund

Water Sewer Svstem Bond escrow and procced accounts Revenue bond interest and redemption Revenue bond rescrvc

Total bond debt service/retirement

46,967,402 5,722,319

g 46,967,402 $ 5, 722,3t9

t ?o7 0?o ) ?o? n?n $ 55.086.75r $ 46.e57.402 $_!.!rJU2

Airoort PFC tunds Rcvcnuc bond interest and redemption

Totel bond debt service/retirement

43,879 $

43,879

$__443f,0

44.330

$ s

69.768

(

69.768

74.29r

( (

45t

d5t

Dreinaqe UtilitY Bond intcrcst and rcdcmption

Total bond debt service/retirement Fleet Bond interest and redemption

Totnl bond debt service/retirement

S_JA.Z2J.

$ $

Table 3 - Restricted Funds/Reserued Retained Earnings

The Revenue bond reserve account reflects the amount required in the revenue bond covenants.

74.29t

JA2LL

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 7. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2019, was as follows: Bolsnccs

Ocrobor l. 20rfl

Addirionr

l)clarioar

Brhnces Scptcmbcr 30. 20t0

(R$trac{) Clpitnl osctr urcd by govcmmcntnl nctiviticr. nt cort Cnpitnl nssctr, not bcing dcDrcci[tcd Lnnd

Contributcd ROW casrncnts Capital prqjccts in proccss 1'otsl cspitsl r*rct*. not bcing dcprecictcd C$pitcl sJiat$. boing dcprecirtcd I n frsrt ruct urc Building ond othcr improvcrncnt$ Equipmcnt ond vchiclce Copital lcasce Librery collcctions Total cepilal arscts. bcing dcprcciotcd Lcrr lccuurulrted dcprcciution for;

lnfrlrtilcturc Buildings nnd othcr improvcmcnts Equipmcnt snd vchiclcs Capital lcascs Librory collcctions 'l'otfl I sccurnulrlcd dcprcciulion 'lbtnl cnpitnl urcts, bcing dcprccintcd, nct Nct cnDilnl nsrcts uscd by govcmtrrctrt[l [ctivitic$ Crpitol nsrcts urcd by busincss.typc activitics, il cost: Entcrprisc funde Watcr and scwcr Land Conrtruction in progresx Contributcd llOW liuscrncnts 'lbtll cupitnl niscr$, not bcing dcprccintcd (lnpitrl rsscts, bcing dcprccintcd Wstcr rights nnd contrncts

Buildingt nnd irnDrovcmcntg Equipmcnt ond vchiclcs Total cephel sescts. bcing dcprcciarcd Lcss accunrulotsd dcprcciotion for: Watcr rights nnd contrncir Buildings nnd improvcmcnts EqIiDmcnt ond vchiclcs Total nccurnulntcd dcprcciation Total cnpital aeacts. b€ing dcprcciotcd nct Nct capital osscts uscd by Watcr and Scwcr Drainogc utility Lsnd Contributcd ROW curorncntr ('ontnrction in progrcst 'l'olnl cnpital trssctr, not bcing dcprccintcd Clpitd !r$ct6, bcing dcprccintcd Building rnd imprgvcmcnts liquiDmcnt lnd vchiclcs Totnl cnpitol osrcts, bcinn dcprccintcd Lcss occumulntcd dcprcciation for: Buildirtg end intprovcrrtcntr Equipnront snd vchiclcs '['otul sccurnulltcd dcprcciltion 'Iotol crpitfll nsscts, bcing dcprcciatcd nct Nct cnpitnl nsscts uscd by Drninngc trtility

r 5.565.683

4 L382

22.t35.942 69.5t4.417 t07.2 t6, t02

3.3?6. I JJ

2q7,523,147 298.00 I .26E t02.46 t.847 2.793.350

60.r06.233 63.523.110

73,7 r3.017 73.7 t3,0 t 7

2.928.808 .t.396.894

449.758 83.245.155

r 32,884,8 r 5

I 55.e43.62 I

5,cr53,227 I 1.586.270

70.7J6.0J3

8.544.99J

396.253 3.307.850

1.043.82 r

4?8.t72 27.fi)6.585 55.638.570 119.162..140

55.907.693 97 02(r 355 30 t.554.6e3

4.03 t .546 I

r5.60?.06J

25.j I 2.Cr97

359.439.3J7

6 I .438.08t

8.059,075 708.838,687

363.288.592 345.550.0q5 452,766.tq7

0. r 3J.J93

I t0.577.904

r05.2J5. r22 7. t90,244

442,31

E.0(r(r.522

78t.505.938 r 38.838.042 r

442.3 I I

.3.34.1.$ I I

t.330.305 -,\@

.18I .647.578

75.043.322

309.858.360 .1t6.88J.2 r J

2(r,429,682

(r(r,204,539

26.12q,682

t.7 t3.5 r6 6e.958.3 r 7

2,040.262 6t,008.1t t2

t.539,440

2.040.262 .3

t,025.409 174.016

65.t88.5t4 r08.669.072 658.274.445

17t,256.t69 32,2(r(r,444 224,522,E86

3.584,244 260.37?.574 510.882.J95 576.071.t09

25.766.629 68J.187 26.451.816 I,54 I,783 t2,52q,205

175.234 t4.246.222 12.20J.J9,1 43.405.079

5r4.626

t37.r4r 7?t.767

240.613 I

16.783 i5?.3e6 37.1.371 26.804.0J3

t08.669.072 683.446.448 4.860.698 79(r.97{r.2 I ll 3.1.808.227 236.8 t 1.478

7.642.6rt 274.262.400 522.713.818 J92.672.135 2.0 I ()

2.010 263, I 54

s08,440

I t.087.386 I t.352.550

2.932.536 3.440.97(r

7,078,474

5.287. I 70

36.935 ?. I I 5.409

5.287.t10

449.487

I 62.632

20.862

2,424 (r5.056

470.349 6.645.060

5.t22.t l4

8.563.0r0

I 7.997.6

6?.529.89 r

70,49J,760 |,440,074

8.805.288

77 t ,5q4

t ??? ?{)

5.287. I 70 5.21r7. I 70

9 50(r 356 t2.165.641

2.58? 2.581

34.348 r 2.39q.992

(r 12,I l9

2.587 2.587

20.699

632.8t8 I1.761.171 2t.273.J30

5.287.r?0

Airpon Land

Construction irr pr'ogr'css Totol cophol orrcts. not bcing dcpreciotcd Capitd lssets. bcing dcprcciutcd Building und irnprovcmcnts liquipucnt und vchiclcs Total cnpitnl oeects. bcing dcprcciatcd Lccs accumulstcd dcprcciarion for: Building and irnprovcurcnts Equiprncnt ond vchiclcs Totol accunrulotcd dcprccisrion Total copitol osscts. bcillg dcprcciutcd nct Nct cspitcl {iscti uscd by Airpon Nct cupitll liscts uscd by burincss typc rctivitics Oovcmnrcnt-widc nct c0pit0l 0ssctg 'l'ahlc J

2,111.34t 8.908.775 I t.686,t 16 | 58,845,282

7.346,267 7,346.267

55..160

2.777,34 r l1r 100 6$?

55.;r60

I 8.977_023

t0.e15

8.387,446

265,663 55.362

t67.232.728

32 1.025

97.366.88 r

4.823. r r0

4.584.426 r0t.95 r.307

444,480

22.407

02. I E9,99 I 5.006.499

5.267.590 (4.946.565 )

:2.407

t07.t96.490

?.399.702 54,3(r7.87 I

55..16 t

.12.146.584

79..1I I .878 69.r.257.54.1

sr.r23.802.4J3 S r73.J30.2il

s r 07. r89.906

s t.r90.r42.75E

65.28 t ,42 I

76.967,537 (r71.036.256

('aptal Assct lcttrty

r 59. I

22.408

8.420.,100 I 67.53 t.34J I

60..1.14.{r55

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 7 - CAPTTAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the City as follows Governmental activities General government

54,508

964,906

Staff services Police protection Fire protection Other public safety and health

577,866

954,t89 777,695 8,519,771

Streets, traffic and engineering Culture and recreation Solid waste services

6,074,748 959,402

Transit services Total governmental fund departments Internal service fund depreciation allocable to governmental activities based on predominant usage

424.9n 19,307,996 8 298 589

Total governmental activities

$ 27.606.s85

Business-type activities Water and sewer system Drainage utility

$l 4,246,222 165,056 5 ),61 59n

Airpoft Total business-type activities

s 10.678.968

Water and Sewer System Capital Assets The City of Amarillo is one of I I cities that can receive surface water from a reservoir created by a dam on the Canadian River, which river arises from the headwaters of the Sangre de Cristo Mountains in New Mexico and crosses the Panhandle of Texas before merging into the Red River in eastern Oklahoma. The reservoir and related aqueduct system are operated by the Canadian River Water Municipal Water Authority (CRMWA), a subdivision of the State of Texas. The reservoir has experienced a serious decline in available water due to the drought conditions in the Texas Panhandle. Curently, the City of Amarillo is not allocatirrg water from this source, The related infrastructure recorded on the City's books for CRMWA assets at Septernber 30,2019, is $50.3 million. The related amortized cost of these assets is $24.4 million.

The Ciry owns $58,332,683 of underground water rights in Roberts, Ochiltree, Hutchison, Potter, Randall, Carson, Hartley and Dallam counties with the majority in Roberts and Hutchison counties. Much of the water rights held in Potter, Randall and Carson counties have been developed and are currently being utilized. The City owns undeveloped water rights in Hartley and Dallam counties in the nofthwesterrr portion of the Texas Panhandle. Proceeds from the sale of past water rights are held in a separate interest-bearing accourrt for future water right purchases.

Airport Capital Assets Airport capital assets include runways, buildings, and related irnprovements constructed by the Federal government for use as an Air Force Base on land contributed by the City, which was returned to the City in 1967 and 1970 upon closing of the Base. Upon return of such assets to the City, the land was recorded on the books of the Airport at $1,521,510, its original cost to the City, and improvements were recorded at $ 14,356,430, representing constructiorr cost less a provision for depreciation to date returned.

Certain lands and irnprovernents not utilized by the City for airport purposes are leased to various commercial enterprises. A new terrninal facility was completed prior to September 30,2014 and total cost of $52,499,341 was capitalized by the Airport. The Airporl had various construction projects in process at September 30,2019, 62

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 7 - CAPITAL ASSETS (CONTINUED) Drainage Capital Assets The Drainage Utility Fund currently has $8,732,752 in construction in progress,as of S_eptember 30,2019. It also hadlight of way easements of $771,594, equipment and vehicles of $34,348, infrastructural of 512,365,644, and land of $2,010.

NOTE 8. LEASES The City leases the multi-purpose events venue to an unrelated third party under a noncancelable operatini; lease. The followihg ieflects the carrying amount and accumulated depreciation of assets held for lease at September 30,2019: Buildings and improvements Other depreciable capital assets Accumulated depreciation

941,735,527 5,900,387

Assets under operating lease

s46529-JJ1

(806 r97)

More information about this lease is included in Note I l. The following is a schedule by years of minimum future rentals to be received from such noncancelable operating leases as of September 30,2019:

Year Ended Seotember 30. 2020

$ 175,000

2021

175,000

2022

175,000

2023

175,000

2024

175,000

2025-2029

875,000

2030-2034

875,000

2035-2039

700.000

$ 3.325.000

Total minimum future rentals Operating Leases

The City leases digital video red light carnera equipment from American Traffic Solutions, lnc. under a cancelable operating lease. Total costs for the lease were $561,34! fo1 the year ended September 30, 2019. The City entered into a four-year operating lease with Club Car for golf cars with monthly lease expense of $22,720 and a total cost of $1,090,560. Annual lea-se payments are 5272,640 for FY 2020 and 2021, and $136,320 for 2022. Total costs for the lease were 5272,640 for the year ended September 30, 2019. The City entered into a twenty-year operating lease with Poner County for frber optic cable band width with monthly lease expense of $1,500 and a total cost of $360,000. Annual lease paymenlq qre $18,000 for FY 2020 througtr2038, and $6,000 for FY 2039. Total costs forthe lease were $12,000 for the year ended September t0,2019, The City leases land to LGC for downtown development. See Note

24 for details regarding the lease.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 8 - LEASES (CONTINUED) Operating Leases Future minimum lease payments under the noncancelable operating leases with initial or remaining terms

of one year or more are as follows: Year Ended Septembe r 30. 2020

$ 290,640

2021

290,640

2022

ts4320

2023

18,000

2024

18,000

2025-2029

90,000

2030-2034

90,000

2035-2039

78,000

$ r.029.600

Total minimum future minimum lease payments Capital Leases

In 2017, the City entered into a five year noncancelable lease agreement with Caterpillar Financial

Services Corporation for a landfill compactor with monthly lease expense of $14,186 and a total cost of $851,160. Annual lease payments are 9170,232 for FY 2020 and202l,and $42,558 for2022. Total costs for the lease were $170,232 for the year ended September 30, 2019.

In 2018, the City entered into a five year noncancelable lease agreement with Caterpillar Financial Services Corporation for a tractor scraper with monthly lease expense of $11,724 and a total cost of 5703,425. Arinual lease payments are $140,685 for FY 2020,2021,2022, and $35,172 for 2023. Total

costs for the lease were $140,685 for the year ended September 30, 2019.

In 2018, the City entered into a five-year lease purchase agreement with Dell Financial Services Corporation for a hexagon cluster with annual lease expense of $44,587 and_a total cost of 542,935: Annual lease payments are $44,587 for FY 2020,2021, and2022. Total costs for the lease were $44,587 for the year ended September 30, 2019. In 2018, the City entered into a five-year lease purchase agreement with Dell Financial Services Corporation for an infrastructure refresh with variable annual lease expense beginning in 2018 of $240,000, $292,000, $447,000, $447,000, and $437,516 and a total cost of $1,863,516. Annual lease payments are $447,000 for FY 2020,2021, and $437,516 for 2022. Total costs for the lease were $292,000 for the year ended September 30,2019. In 2019, the City entered into a five-year lease purchase agreement with De Lage Landen Public Finance, LLC for a Vermeer Horizontal Grinder with monthly lease expense of $7,966 and a total cost of $477,951. Annual lease payments are $95,590 for FY 2020,2021,2022,2023, and 563,727 for 2024. Total costs for the lease were $3 I ,863 for the year ended September 30, 2019.

In 2019, the City entered into a five-year lease purchase agreement with Caterpillar Financial Services Corporation for a tractor scraper with monthly lease expense of $16,287 qqd a tgtql c9_q ol$977,244. Annual lease payments are $195,449 for FY 2020,2021,2022,2023, and $65,149 for2024. Total costs for the lease were $130,299 for the year ended September 30,2019.

In 2019, the City entered into a five-year lease purchase agreenlent with Dell Financial Services Corporation for ari isilon with annual lease expense of $38,033 in the first year and $50,108 thereafter and a total cost of $238,465. Annual lease payments are $50,108 for FY 2020,2021,2022, and 2023. Total costs for the lease were $38,033 for the year ended September 30, 2019. 64

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 8 - LEASES (CONTINUED) C apital Leases (Continued)

ln 2019, the City entered into a five-year lease purchase agreement with Dell Financial Services Corporation for a data dornain with annual lease expense of $63,995 in the first year and $74,496 thereafter and a total cost of $361,979. Annual lease payments are $74,496 for FY 2020,2021,2022, and 2023. Total costs for the lease were $63,995 for the year ended September 30, 2019. In 2019, the City entered into a five-year lease purchase agreement with Dell Financial Services

Corporation for an airport infrastructure refresh with annual lease expense of $l16,226 and a total cost of $58l,130. Annual leaie payments are 5116,226 for FY 2020,2021,2022, and 2023. Total costs for the lease were 9116,226 for the year ended September 30,2019, In 2019, the City entered into a five year noncancelable lease agreement with Trinity Innovative Solutions for police body and in-car cameras with annual lease expense of $280,966 in the first year and $296,466 thereafter and a total cost of $1,454,830. Annual lease payments are $293,466 for FY 2020,2021,2022, and 2023. Total costs for the lease were $280,966 for the year ended September 30, 2019. Following is a summary of future minimum lease payments under these capital leases as of September 30, 2019:

Year Ended Sentember 30. 2020

$ 1,627,839

2021

1,627,839

2022

1,490,681

2023

860,506 128,877

2024

5,735,742

(403,1s6)

Less: imputed interest Present value of capital leases

5,332,586

Less: current maturities of capital lease obligations

( r3s4,r9r)

$ 3.878.395

Long-te rm capital lease obligations

NOTE 9 - DEFINED BENEFIT PENSION PLANS The City participates in funding two retirement plans. TRMS is an agent, multiple-employer, publicemployee retircment system which is a nontraditional, joint-contributory, hybrid defined benefit plan. The FRRF Plan is a single-employer, contributory defined benefit plan. Substantially all ernployees of the City are eligible to participate in one of these two plans. The components of the net pension liability of the City at Septernber 30,2019, were as follows:

TMRS

FRRF

Total

Total pension liability Fiduciary net position

$ 482,888,674

$ 211,239,766

$ 694,128,440

162'766 40'7

566.56r r34

City's net pension liability City's net pension liability as a percentage of total pension liability

sJg,a$.847

$ 4$311J59

$ 127.477.306

L63S%

22.9s%

_t837%

401994 72'1

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9. DEFINED BENEFIT PENSION PLANS (CONTINUED) TMRS

FRRF

Total

$_3!.558J59

$lJ-733J12

$J2^PAM

Defened inflow of resources

l.969.oql

s___2*u1256

L_-AA412L7

Pension expense

$_8^775-470

$_6.62[OE2

$J109552

Deferred outflows of resources

The City's total payroll for the fiscal year ended September 30,2019, was $l10,920,108 and the portion covered by the two plans was as follows:

$ 88,422,191

TMRS

?0 1r r 0s0

FRPG

Total covered payroll

$ t 08.733.281

Including cunent employees, annuitants and terminated employees entitled to future benefits, the City had 4,159 members of TMRS and 498 members of FRRF as of the dates of the latest actuarialvaluations.

In addition to the two retirement plans funded by the City, employees may participate in a deferred

compensation plan. Details of the various plans are as follows: Texos Municipal Retirement Syslem QMRS)

Plan Descriplion The City participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the City. 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 municipalemployees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, T\[RS is not fiscally defendelrt on the State of Texas. TMRS' 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 atwww.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 ernployee's contributions, with interest, arrd the City-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirernent 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 75o/o of the rnetnber's deposits and interest. Plan provisions for the City are as follows:

2018 Plan Year 2017 7% 7% 2 to I 2 to I 5 5

Plan Year Employee deposit

rate ernployee) vestirrg

Matching ratio (City to Years required for

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019

NOTE 9 - DEFTNED BENEFIT PENSION PLANS (CONTINUED) Texas Municipal Retirement System (TMRS) (Continued) B e nefi ts P r ov ide d (Conti nued)

Plan Year

2018 Plan Year 2017

Service retirement eligibility (expressed as age/years of service) 60/5, 0/20 100% repeating Updated service 0% of CPI Annuity increase (to

credit retirees)

6015,0/20 100% repeating

0% ofCPI

Upon joining the Plan, the City granted its employees monetary credits of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the

plan. Monetary credits for service since the plan began are a percent (currently 200% for City of Amarillo employees) of the employee's accumulated contributions. In addition, the City can grant as often as annually another type of monetary credit referred to as an updated service credit. The updated service credit is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest, if the current employee contribution rate and the City's matching percent had always been in existence, and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employerfinanced monetary credits with interest were used to purchase an annuity. Employees Covered by Benefit Terms

At the December 31,2018, valuation and measurement date, the following employees were covered by the benefit terms:

lnactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits

1,160 1,168

Active employees Total employees

1.83 r

4.1s9

Contributions The contribution rates for employees in TMRS are either sYo, 6yo, or 7%o of employee gross earnings, and the City-matching percentages are either l00yo,l50yo, or 200Y0, both as adopted by the governing body of the City. Under the state law governing TMRS, the contribution rate for each city is deterrnined

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 ernployees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contributeT.00o/o of their anrrual gross earnings during the fiscal

year. The contribution rates for the City were 12.44% and 12.18% in calendar years 2018 and 2019, respectively. The City's contributions to TMRS for the year ended September 30,2019, were $ I 0,83 5,85 I .

Net Pension Liability

The City's net pension liability was measured as of December 31,2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 67

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Texas M u n ic ip al Re t i re men t Syst e m QM RS) (Conti nued)

Actuarial Assumptions

The total pension liability in the December 31,2018, actuarial valuation was determined using the fol lowing actuarial assumptions:

Inflation Overall payroll growth Investment rate of return

2.5%o per year 3.5o/o to I 0.syo, including infl ation

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 Blue Collar Adjustment 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. Mortality rates for disabled annuitants use the same moftality table and rates above with a 3-year setfonvard forboth males and females. In addition,a3%o minimum mortality ratewill be applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor.

Actuarial assumptions used in the December 31,2018, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period December 31,2010 through December 31,2014, first used in the December 31, 2015 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 to the EAN actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2017 and 201 8 valuation. The long-term expected rate of return on pension plan investments is 6.75%. The pension_planls 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 satisry the short-term and long-term funding needs of TMRS. The long+erm expected rate of return on pension plan investments was determined using a building-block method ln 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 irre 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 Allocation

Long-Term Expected Real Rate of Return (Arithmetic)

Domestic equity

t7.5%

4.55%

International equity Core fixed income Non-core fixed income

17j%

63s%

Real estate Real return Absolute return Private equity

Total

10.0%

1,00%

20.0%

3.90% 3.80% 4.50% 3.75% 7.50%

10.0%

t0.0% 10.0%

s,0% =J-Q.0*Q%

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9. DEFINED BENEFIT PENSION PLANS (CONTINUED) Texas M unicipal Retirement System (TM RS)(Continued)

Discount Rate The discount rate used to measure the total pension liability was 6.750/0. 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 fo be available to make all projected future benefit payments of current active and inactive bmployees. 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. Changes in Net Pension Liabilily The changes in net pension liability are summarized in the following table: lncrease (Decrease)

Total Pcnsion Liabil'ty (a)

Phn Fiduciary Net Position

Net Pension

(b)

Liabillty (a) - (b)

$ 469.605.335 $ 428.t04.463 $ 41.500.872

Bahncc at Dcccmbcr 31,2017 Changes for thc ycar: Scrvicc cost

12,336,149

Intcrest

3 I,164,809

3 r,r64,809

Changc of benefit terms Difference between expectcd and actual cxpcricnce

(2,072,564)

(2,072.564)

Changes of assumptions Contributions - cmployer

10,870,;28

Contributions - employee

6,t26,62t

(6,r26,621)

Net investment income

(r2,8r r,240)

t2,8t 1,240

(28,r45,055)

Benefrt payments, including rcfunds of cmploycc contributions Administrative expcnsc Othcr changcs

r3.283.339

Nct changcs Balance at December 3 l, 20lE

( r0.870.72E)

(28,145,055)

(247,841\

247.Ut

/t2.949\

12.949

Q4.2t9.736\

37.503.075

s 482.888.674 S 403.884.727 S

79.003.947

Tablc 5 - TMRS Net Penslon l.lablllty

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%o, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:

l7o Increase in in Rate Discount Rate Discount Rate 5.750/" 6.75Vo 7.7SVo $ 138,955,414 $ 79,003,947 $ 29,102,282

lolo Decrease

Discount

City's net pension liability

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9. DEFINED BENEFIT PENSION PLANS (CONTINUED) Texas Municipol Retirement System (TMRS) (Continued)

Sensitivity of the Net Pension Liabilig lo Changes in the Discount.Rale (Continued) Pension Plan Fiduciary Net Position

The pension plan's Fiduciary Net Position has been determined on the same basis used by the pension plan, which is generally accepted accounting principles prescribed by GASB. Detailed information about the pension plan's basis of accounting and policies is available in a separately issued TMRS financial report. That report may be obtained on the Internet atwww.tmrscom Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30,2019, the City recognized pension expense of $8,775,470.

At September 30, 2019, the City reported defened outflows of resources and deferred inflows of resources related to pensions from the following sourcesl

Differences between expected and actual

Deferred Outflows of

Deferred Inflows of

Resources

economic experience Changes in actuarial assumptions Difference between projected and actual investment earnings Contributions subsequent to the measurement date

Total

$30.558.759 $1.469.991

440,431

149,763

$ 1,969,991

22,219,390

7.749.t75

The $7,749,175 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 ended September 30, 2020. Other amounts reported as defemed outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended Sentember 30.

2020 202t 2022 2023 Total

$ 7,558,425

2,530,936 2,408,573 8.34 r.659

$ 20,839.503

Firemen's Relief nnd Retirement Fund (FRRE) Plan De.scription The City contributes to the FRRF, which is a single-employer, contributory defined benefit plan maintained for members of the City of Arnarillo Fire Department. The benefit and contribution provisions of

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 9 - DEFINED BENEFTT PENSION PLANS (CONTINUED) Firements Relief and Retirement Fund (FRRD (Continued) Plan Descripr,on (Continued) this plan are established under the authority of the Texas Local Fire Fighters Retirement Act (TLFFRA). The Board of Trustees of the Fund consists of three firefighters and two citizens elected by the members, together with the Mayor or the Mayor's designated representative and the Director of Finance of the City. Within parameters established by TLFFRA, the plan may be amended upon approval by the Board and a vote of the membership. BeneJits Provided

The Plan's benefit provisions are established under the authority of the TLFFRA. Specific plan provisions are governed by a plan document and a trust agreement executed by the Board of Trustees. The following is a brief summary of the benefit provisions of the Plan.

Under the Plan, firefighters can retire at age 50 with 20 years of service and receive either (l) a monthly retirement benefit equalto 3.45% of the firefighter's highest average salary multiplied by the firefighter's total years of service, if hired prior to January l, 201 8 or (2) a monthly retirement benefit equal to the sum of (a) 3.25% of the firefighter's highest average salary multiplied by the firefighter's years of service up to a maximum of 20 years and (b)2.50% of the firefighter's years of service in excess of 20 years, if hired on or after January l, 2018. A firefighter's highest average salary is the greater of (l) the firefighter's highest five-year average salary for any period prior to retirement or (2) the firefighter's highest threeyear average salary prior to January 1,2018. ln all retirement options, the Plan provides the firefighters with an annuity for life and can also provide a life annuity for their spouses. Firefighters who retire after completing 20 years of service, but who have not attained the age of 50, may elect to begin receiving berrefits at age 45 or more in accordance with a lower scale of factors applied to the highest average salary. Firefighters age 53, with 23 years or more of service, may elect to participate in the Deferred Retirement Option Plan (DROP), under which a participant may convert his benefits accruing after the date of the election to a deferred retirement option payment (a form of lump sum distribution) to be paid in fullwithin 36 months of retirement. The standard benefit is payable in the form of a joint and 66-2/3% spouse annuity, but a firefighter may elect a joint and 100% spouse annuity, a l5-year certain and life thereafter annuity, a straight life annuity, or a pop-up option. Additionally, an option that provides an annually increasing retirement benefit in connection with any of the above annuity forms is available.

A firefighter who becomes disabled as a result of his duties as a firefighter is eligible for the normal monthly retiremerrt berrefits if he has 20 or more years of service, A firefighter with less than 20 years of service is entitled to a benefit equal to eitlrer (l) 69% of his highest average salary, if hired prior to January 1,2018 or(2)65% of hishighestaveragesalary, if hiredonorafterJanuary 1,2018. Off-duty disability retirement benefits are provided for as a percentage of the on-duty disability benefits, with the percentage being on a graduated scale based on years ofservice. The standard death benefit available to the spouse of a deceased firefighter who has met the eligibility requirements for DROP is two+hirds of the benefits the firefighter would have received had he retired on his date of death, plus any DROP payment to which the firefighter would have been entitled. Lesser rnonthly benefits are provided for a spouse of a firefighter who dies before meeting the qualifying criteria. lf a firefighter has attained age 50 and has completed at least 20 years of service, he can elect to have his spouse receive a larger benefit in the event he dies prior to retiring from the fire department. An active firefighter must elect the optional death benefit on or before the date he attairrs age 60. If a firefighter dies while he is an active firefighter and after electing the optionaljoint and 100% survivor pre-retirernent death benefit, the firefighter's spouse will receive a survivor's benefit equal to 100% of the amount the

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9. DEFINED BENEFIT PENSION PLANS (CONTINUED) Firemen's Relief ond Retirement Fund (FRRFI (Continued) B en efi ts P rov ide d (C ontinue d)

firefighter would have received if the firefighter had retired on his date of death. If this election is made, the firefighter who elects the higher pre-retirement death benefrt will receive a slightly low^e_r_pension upon actual retirement. Each child of a deceased firefighter is entitled to a monthly benefit of $335 ($570 if there is no spouse receiving benefits) untilage 18, or until age25 while a full+ime student. The Plan has a $7,500 lump sum death benefit provision.

A firefighter who terminates after completing at least l0 years of service, but who has not attained the age of 50, ii entitled to receive a deferred vested retirement income commencing at the end of the month in which the firefighter would have both attained age 50 and completed 20 years of service. Firefighters' salaries are not subject to the Federal Insurance Contributions Act and, consequently, Plan benefits are not integrated with Social Security benefits. Employees Covered by Benefit Terms

As provided under TLFFRA, all firefighters must be less than 36 years of qge upon ent€ring service for the City as a firefighter and must become members of the Plan, which provides them with pension, death, and disability benefits. The Plan covers curent and former firefighters as well as beneficiaries of current and former firefighters. The types of employees covered, as well as Plan membership as of December 3 I , 2018, the measurement date, are as follows: Active: 38

Vested Nonvested

233 271

Tenninated: 4

Nonvested Retired: Vested

Pensioners:

t87

Service retirement Disability retirement Spouses/children

4 29

220 498

Total participants Conlribulions

The Plan's minimum required contribution provisions are established under the authority of TLFFRA. There are no contracts governing contributions to tlre Plan. Specific plan contribution rates are governed by a plan document. Changes in the members'contribution rate require a plan amendment, An actuarial valuaiion is performed every two years to be certain the plan benefits and plan contributions are in balance. There are no statutory reserve requirements for the Plan. The Ciry employer contribution rate was 18.83% of the firefighters' gross pay starting January 2014 and was increased to 19.57% stafting January 2017, The Plan is funded by a conribution by each firefighter. The firefighters' contribution rate is 13.00% of gross pay. If a fi refighter terrninates service with the 72

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Firemen's Relief and Retirement Fund (FRRF/ (Continued) C ont r i but i o,ns (Cont inued)

Fire Department of the City and he is not entitled to any of the benefits as described abovg h_e will receive a lump sum payment of the contributions he made without accumulated interest. A firefighter who has become eligible for benefits may also elect to receive a refund of his contributions, but will forfeit his right to any benefits which he might otherwise have been entitled to receive. Net Pension Liability

The City's net pension liability was measured as of December 31,2018, and thetotal pension liability used to calculate the net pension liability was determined by an actuarial report as of December 3 I, 2018. Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of December 31,2018, using the following actuarial assumptions applied to all prior periods included in the measurement:

250% 3.s0% 7.50%

Inflation Salary increases Investment rate

Mortality rates were based on the RP-2000 combined employee and healthy annuitant, projected to 2024 using Scale AA with separates rates for males and females. The long+erm expected rate of return on pension plan_investments was determined using a building-block^ methodln 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 majgr asset class. These ranges ire cornbined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target allocation percehtage and by adding expected inflation. Best estimates of arithmetic r-eal rates bf return for each major asset class included in the pension plan's target asset allocation are summarized in the following table: Asset

Long-term expected real rate ofreturn

class

Cash and short-term fixed

income Equities

income

0.00%

0.68% 5.44%

Fixed

Change in As.sumptions

The rate of return on the actuarialvalue of assets was lowered from 8.00% to7.50o/o. The rate of increase in total payroll was lowered from 4.00% to 3.50%. The rate of inflation was lowered frorn 3.00% to 2.500/0.

Discount Rale The discount rate used to measure the total pension liability was 7.500/0. The projection of cash flows used to determine the discount rate assurned that contributions from plan members will be made at the current contribution rate and that contributions frorn the City will be rnade at contractually required rates determined by the City or management. Based on these assumptions, the pension plan's.fiduciary net position was-projected to be available to make all projected future benefit payrnents of current plan inembers. Th6refbre, the long-term expected rate of return on pension plan investrnents was applied to all periods of projected benefit payments to determine the total pension liability. 73

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 9 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Firemen's Relief nnd Retirement Fund (FRRF/ (Continued) Changes in Net Pension Liability The changes in net pension liability are summarized in the following table: lncrease (Decrease)

Total Pension

Plan Fiduciary

Net Pension

Lhbility

Net Position

Liability

(a)

(b)

(a) - (b)

s 203.068.750 S t71.845303 S 3t.223347

Balancc at Dcccmbcr 31,2017 Changes for the year: Service cost

lnterest

5.368.3 r 6

5.368,3 t 6

15.169.042

15,t69.042

Change of bcncfrt tcrms

Differencc bctwccn cxpcctcd and actual cxpcricncc Changcs of assumptions Contributions - cmployer Contributions - employee

Net investment income Gain or (Loss) due to difference in projected vs. actual carnings Benefit payments, including rcfunds of cmploycc contributions

(12,36,342)

Administrative cxpcnsc Othcr changcs

8.r7r.0r6

Net changes

3,969,2s5

(3,969,255)

2,636,7A

(2,636,704)

(3233,r90)

3,233,190

(12,366,342)

(86,r28)

86,128

705

(705)

(9.078.996) t7.2s0.0t2

s 2fi.239.766 S t62.766.407 S 48.473.359

Belance nt December 31, 2018 Table 6 - FRRF Nct Pcnsion Llabtlity

Sensitivity of the Net Pension Liability to Changes in the Discounl Rale

The following presents the net pension liability of the City calculated using the discount rate of 7.50%o, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.50%) or one percentage point higher (8.50%) than the current rate. Changes in Nel Pension Liability

l7o Decrease Current discount l7o Increase (8.50%) (6.50%) rate (7.507o) city's net pension liability

$49qt4

$ 48,473J52 s27.2a1327.

Pension Plan Fiduciary Net Position

The pension plan's Fiduciary Net Position has been determined on the same basis used by the pension plan, which is generally accepted accounting principles prescribed by GASB. Detailed information about the pension plan's basis of accourrting and policies is available in a separately issued FRRF financial report. This report, and fufther details concerning the plan, is available by contacting the Board of Trustees, Firemen's Relief and Retirement Fund, City of Arnarillo, P.O. Box 1971, Arnarillo, Texas 79 r 05.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE 9. DEFINED BENEFIT PENSION PLANS (CONTINUED) Firemen's Relief and Retirement Fund (FRRF) (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2019, the City recognized pension expense of $6,625,082.

At September 30, 2019, the City reported defered outflows of resources and deferred inflows of resouri:es related to pensions from the following sources:

Deferred

Outflows of

Deferred Inflows of

Resources Resources

Differences between expected and actual

$ 2,889,392 $ 2,477,526

economic experience Changes in actuarial assumptions Difference between projected and actual investment earnings Contributions subsequent to the measurement date

9,036,184 7,008,416 ),799 s65

$JJJ3355J. $_ 2.477.s2i6

Total

The $2,799,565 reported as deferred outflows of resources .rel-ated to .pensions^ resulting from contribution6 subsequent to the measurement date will be recognized as a reduction ^of th.e net_pension liability for the yeir ended September 30, 2020.. Other amounts reported as deferred outflows of resou.c"r and deferred inflows o?resources related to pensions will be recognized in pension expense as follows: Year ended Sentember 30.

$ 4,137,831

2020

1,682,935 2,153,157 4,562,472

2021

2022 2023

2024

I ,381 ,995

2 538.076

Thereafter

$_l-tu[56rrc6

Total Deferred Compensation Plan

In addition ro the TMRS and FRRF plans, the City offers its full-time eqploy_ees a choice of deferred compensation plans created in accor<iance with Int-ernal Revenue-Cod.e (lRC) Secti.on^457. The plans, avaiiable to ali City employees, permit them to defer a portion of their salaries until future years. .The deferred compensalion is nbt available to employees_until termination.of employment, retiretnent,.death or unforeseeable emergency. The employee Iiability for the related Federal income taxes is deferred until the funds are paid to tlie paiticipating-employee or beneficiary under the terms of the agreement. The laws governing deferred compensation plarrs require plan assets to be held by a trust for the exclusive benefit of-plan pari'icipants and tlieir benefii:iaries. Because the assets held under these plans are not the City's proierty'and ire not subject to City control, they have been excluded from these financial statements.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINA,NCIAL STATEMENTS Year Ended September 30,2019 NOTE 10 -DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN Plan Administration The City administers a multi-employer agent, defined benefit post-employment heath plan (Plan). The Plan does not include the pension benefits discussed in Note 9. The Finance Director is responsible for administration of the plan with Council oversight. The plan is reported as a Trust Fund in the City's financial statements. The plan does not issue a publicly available financial report.

Plan Membership As of December 3 l, 2018, the measurement date of the Plan, the plan membership data is as follows:

Active employees Retirees

Total

l,gg0

6ll

2.6A1

Eligibility Req uirements Employees of the City who have l0 years of full+ime service with the City or the AEDC who are eligible to retire under the TMRS, the FRRF, or the AEDC, may continue coverage in the City-sponsored group healthcare plan as a retiree.

To be eligible to retire under TMRS, participants must attain either 20 years of TMRS service, or five years of TMRS service and age 60. To be eligible to retire under the FRRF, participants must attain 20 years of FRRF service and age 45. To be eligible to retire under the AEDC, participants must attain age 65. Employees who become disabled after attaining l0 years of full+ime service with the City or the AEDC are also eligible to continue coverage in the City-sponsored group healthcare plan.

Employees may obtain dependent coverage at retirernent, regardless of whether or not the employee was receiving dependent coverage immediately prior to retirement. The applicable contribution rate is based on the employee's service at retirement.

A widow/widower of an employee who l) met the requirements above to continue coverage in the Citysponsored group healthcare plan at the time of death, and 2) had spouse coverage at the time of death, is eligible to continue coverage in the City-sponsored group healthcare plarr, at the applicable retiree rate, based on the ernployee's service at the time of death.

A divorced spouse of an employee who was l) rnet by the requirements above to continue coverage in the City-sponsored group healthcare plan at the time of divorce, and 2) had spouse coverage at the tirne of divorce, is eligible to continue coverage in the City-sponsored group healthcare plan, at the applicable retiree rate, based on the employee's service at the time of the divorce. Retirees and Spouses who was eligible to continue coverage in the City-sponsored group healthcare plan at retirement may remain in the plan until death. Retirees who are Medicare eligible must apply for Medicare.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 10. DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Benefits Provided The Plan provides for medical insurance of eligible retirees and their dependents through the City's group health insurance plan, which covers both active and retired members. Benefit provisions are established and amended by the City Council.

Contributions

In January 2013, the City began prefunding a portion of its Other Postemployment Benefits (OPEB) liability via an irrevocable multi-employer agent OPEB trust (PEB Trust) in addition to pay-as-you-go costs. Assets in the PEB Trust can only be used to fund other postemployment benefits, such as medical costs for eligible retirees, and any eligible spouse or children. The City increased prefunding contributions to 2.43%o commencing January 1,2014. During calendar year 2018, the City made contributions of 2.43% of payroll intb the OPEB Trust (approximately $2.7 million) and pay-as-you-go cost of approximately $3 million for a total contribution at December 31,2018 of approximately $5.7 million. The City Council has the authority to increase or decrease prefunding contribution rates. Effective January 1,2015, all inactive participants age 65 or older electing a post-retirement medical benefit with the City enrolled in Medicare will receive a stipend of $150 per month toward their cost of medical coverage. The $150 stipend is not expected by the City to increase. The following table summarizes the range of monthly retirees' health and basic life premiums based on years of service and date of retirement.

Range of Monthly Retiree Health Premiums Retiree Health Premium Fiscal Year 2018 Retiree Ranse of Monthlv Health Premium Rates

$ 179.19 -$s23.26

Retiree only Retiree and spouse Retiree and children Retiree and family

$ 358.39-$ r,046.49 $ 322.ss-$781.29 $ 501 .75 - $ I, r 97.02

Summary of Significant Accounting Polieies Basis of Accounting

The Post Employment Benefit Trust Fund's financial statements are prepared using the accrual basis of accounting. Employer contributions are recognized when due and the employer has made a fonnal commitment to provide the contributions. Benefits and refunds are recogrrized when due and payable in accordance with the terms of the plan. Method Used to Value Investments Investments are repofted at fair value. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE IO.DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Investments

Investment Policy The Trustees may invest funds held in the OPEB Trust Fund at their discretion in including, certificates of deposit; mutual funds, and other forms of security investments.

Rate of Return For the year ended December 31, 2018, the annual money-weighted rate of return on investments, net of investment expense, was (7 .24)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for changing amounts actually invested.

Net OPEB Liabilig of the City The components of the net OPEB liability of the City at September 30, 2019, were as follows:

TotalOPEB Liability OPEB Plan Fiduciary Net Position Net OPEB Liability

64,305,284

. 4%067.t43

ls211 541

Plan Fiduciary Net Position as a percentage of The Total OPEB Liability

23.70%

Target Asset Class

Asset Allocation

0.66% 51.36% 47 g(o/"

Bank Insured Deposit/Cash Equities

MutualFunds

100 000/^

Actuarial Assumptions The total OPEB liability in the October 1,2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Additional Actuarial Methods and Assumptiotts: Valuation date October 1,2017

date end valued Long-term rate of return Payroll growth rate Discount rate Healthcare cost trend rate Measurenrent Fiscal year Benetits

December 3 l, 2018 September 30, 2019 Pre-65 and Post-65 medical and prescription drug benefits 7 .50%o

3.00% for TMRS & AEDC 4.00% for FRRF 6.75% (partial pre-funding) 8.00%

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE l0 -DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Actuarial Assumptions (Continued) Actuarial cost

method

Actuarial value of

assets

City contributions Dental benefits

Entry Age Normal level percent of pay, Investment gains/losses are amortized over 5 years, liability gains/losses are amortized

:JS$fJ;ffi XJJi:'[t'r:'retime'andPranchangesare Market Value 2.43% of total payroll Premiums contributed by retirees, disabled participants and

R:r:#:i.Tt3;txti:::ffi ff ;,:ffiT:ffs'iff :?i[ a:,Tf coverage was not valued in their valuation.

Mortality TMRS and AEDC participants - The mortality rates used in the pension plan in which the employee, retiree, or beneficiary is assumed to participate. Healthy pre-retirement - Gender-distinct fullygenerational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multiplied by 54.5% for males and 5l.SYo for females. Healthy post-retirement Gender-distinct fully-generational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multiplied by 109% for males and 103% for females. Disabled Gender-distinct fully-generational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multiplied by 109% for males and 103% for females with a 3year set-forward for both males and females and a 3o/o minimum mortality rate. FRRF participants RP-2000 Combined Healthy Mortality Table projectedto2024 using scale AA. Dependent Status Spouse Age Differential Children

o o

Husbands are assumed to be two years older than wives. Assume current and future retirees have no covered

children. Per Capita Claims and

Administrative Costs

Per capita medical and prescription drug claims and administration costs (PCCC) were developed based on the following:

- Claims experience, stop loss fees and administration

costs for actives and retirees from January l, 2015 to

October 31,2017.

- Clairns experience was adjusted for plan values,

healthcare cost ffend, and age-sex differences between active employees and retirees.

Healthcare Cost Trend Rates

Trend rates are used to project current combined medical and prescription drug claims arrd adrninistration costs and retiree contributions. If healthcare inflation were to

continue as its current rate, eventually 100% of the Cross National Product (GNP) would be allocated for healthcare services. Since this is urrrealistic, healthcare cost trend rates are assurned to decrease in future years.

Changes in Assumptions and Methods since Prior Valuation The following changes were made as of October 1,2017: Healthcare Cost Trend Rates were updated from 9.00% in 201 6 stepping down to 5.00% in 2024, to 8.50% in 2018 stepping down to 5.000/o in 2025, Mortality Rates were updated based on changes in the Decernber 31,2016 TMRS and December 31,2015 FRRF Actuarial Valuations. Disabiliry Rates were added. Tlre discount rate methodology and Actuarial Cost Method were updated according to the new GASB 74 and 75 accounting standard.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE IO - DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Changes in Assumptions and Methotls since Prior Valuation (Continued) Chsnqes in the Nct OPEB Liebilitv lncrease (Decrease)

Total OPEB

Plan Fiduciary

Net OPEB

Liability

Net Posilion

Liabiliry

$ 61.979.142 $ t3.62t.It3 $ 48.358.029

Balances as of September 30, 2018 Changes for the year: Service cost

I,955,516

lnterest on the total OPEB liability Changes of benefrts Difference between expected and actual cxpcricncc

4.t38,657

4,138,657

Changes in assumptions Empoycr contributions

(745,063)

(745,063) 2,700,901

(2,700,90t)

Plan mcmbcr contributions ( t,084,473)

Nct investment income (3.022,968)

Benefit payments, including employee refunds Administrative expense Other changes

2.326.142

Net changes

1,084y'73

(3,022.968)

1.5t5.428

709-714

$ 64.305.284 $ 15.237.541 S 49.Ul7.743

Balances as of Scplcmber 30, 2019

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate l-percentage-point lower and l-percentage-point higher than the current discount rate of 5.75%o. Current Net OPEB Liability

l7o Decrease

Discount Rate

l7o lncrease

$ 55,904,016

$ 49,067,743

$ 43,142,270

Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a healthcare cost trend rates l-percentage-point lower arrd lpercentage-point higher than the current healthcare cost trend rates of8.00%

l tllo Decrease

Net OPEB Liability

$ 44,087,271

Current Healthcare Discount Rate

l7o Increasc

$ 49,067,743

$ 54,972,105

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 300 2019 NOTE IO - DEFINED OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTTNUED) OPEB Liabilities, OPEB Expensen and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs

The net OPEB liability was measured as of December 31,2018, and the total OPEB liability used to calculate the net OPEB liability was detennined by an actuarial valuation as of October 1,2017. For the year ended September 30, 2019, the City recognized total OPEB expense of $(593,297).

At September 30, 2019, the City reported its collective defened outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred

Outflows of

Inflows of

Resources Resources

Differences between expected and actual experiences Changes in actuarial assumptiotts Diffeiences between projected and actual investment earnings

Total as of measurement date

$ 1,354,909 $

I 354-909

637,083 637,083

I RS5 l?S

Contributions paid to subsequent to the measuremettt date

Total as of fiscal year end

$-l25OO3-8 $-6iL083

The net amounts of the employer's balances of deferred outflows and inflows of resources related to OPEB willbe recognized in OPEB expense as follows: Year ended Sentember 30. 2020

202t

t 96,500

196,500 196,500

2022 2023

333,488

2024

( 107,980)

(97.r 82)

Thereafter

Total

7t7 ^826

Payable to OPEB Plan

At September 30,2019, the City reported a payable of $568 for the outstanding amount of contributions to the Plan required for the year ended September 30,2019.

Financial Slutemenls

The Plan does not publish separate financial staternents. Further infonnatiott regarding the Plan, including the rnost reient actuarial study, may be obtained from the Finance Director, City of Arnarillo.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE II - COMMITMENTS The Ciry has several ongoing commitments. One of the more significant commitments is the City's commitment to the Canadian River Municipal Water Authority (CRMWA). The City is obligated to pay its pro rata share of operating costs of the Canadian River Municipal Dam and Aqueduct System along with the City's portion of the CRMWA debt. These costs are included in the Water and Sewer system. In the event of the acquisition and financing of additional water rights, the City would be responsible for contract payments to CRMWA for its proportionate share of the debt service on the bonds issued. Due to the increasing decline of Lake Meredith, CRMWA began acquiring additional water rights in Gray, Hutchinson, Roberts, and Wheeler Counties beginning in 2004. In the process of acquiring water rights, CRMWA is now one of the largest water rights owners in Texas. The City leases facilities adjoining to the City's Civic Center from the Amarillo-Potter Events Venue District (the Venue District). Under the terms of the lease the City is obligated to pay the greater of $ l0 per month or any shortfall in the District's required monthly deposit to the debt service account. The City has not had to pay more than $120 in lease payments since the inception of the District in 1998. Moreover, the Venue District's tax revenues currently can cover debt service payments approximately two times. Therefore, the City does not anticipate paying more than $120 in lease payments in 2019-20. However, the City has appropriated $1,110,841 of its available Fund Balance in the City's 2019-20 budget for its potential commitment to the Venue District although City Management does not believe that any payment beyond $120 will be necessary.

Most of the City's commitments are in capital projects. Many of these projects take more than a year to design, bid, and construct; therefore, the appropriation and commitment do not end at year-end. At September 30,2019, the City had commitments with respect to completion of various capital projects, as For this purpose, commitments are defined as the difference between the reflected in Table appropriation for the project and amounts paid or recognized as liabilities at year-end; additional funding from outside sources are shown as a reduction to the amounts reported as committed. Sufficient resources were either on hand in the City's accounts or authorized and available to complete all committed projects.

Expcctcd Oulsidc Complctc ll City's Outsirlc Funding Scptcmbcr30, Remlining 2019 Committcd Authorizetions Funding Sourccs Rcccivcd Projcct

Covcmmcntal uotivities Strcct improvcments General conslruction Solid wastc irnprovcrncnts Civic Ccntcr irnprovcmcnts CO Bond Construction 'lbtol - govcmmcntal t'und uctivities lntcrnal scrvice l'und projects

20,09s,354

$ 2788 t,964

$ 10,1e2,812

$ 1,32s3r8

4t,7t4176

63227,832

59,040,672

30,t67277

9E0,784 7,360,039

33,329

5,05s,r46

46.835278 20.022.t45

46.633.85

4.894.988

9,5 I 6.564

3r64.83

19.729.090

20.032.946

138030.634 158.067219 r 19.132.166 56.150.102

42.945.479

5,088,475 14.612.97c) 56.5 l 9.350

lntbrmation services

t.948,784

Flcet Services 'lbtal - all govemrnental-type activhies

3.5 t 7.429

Br,uincss-typc activities Watcr and scwcr systcm improvcmcnts

Airpon Drcincgc utility Toral - cll busincss-ryJr sctivnics

Tolrrl - Nll city projcct

7U,7t4

6771M

r921,634 q8.r83

3.419.&6

158.771.933 I 19.tt09.730

56248.485

48286. I 59

l(r4$76,Xr7

4t,t07175

56,7 r0,031

-:- t9,774273 I 1.824.t93

4,610065 r2,0s2,430 r.805093

7t.469,526

26,139,339

72.705.941

18.497.s88

143.496.U7

22.90193s 2t1.724.241

16,199,68r

2247,8ts

8.732.75t %.zl0l-958

4. I 56084

63-l r3.910

$ 357.221.088 $ 231.477.874 $13t3.307.3t8 $152.650.443 $ lll.4(n.089

Tahle 7 - llrlinishad Construction Projects

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE ll - COMMTTMENTS (CONTINUED) The City currently has ten Public Improvement Districts (PIDs). Nine of the ten PIDs are located in residential areas of the City and the last PID is Iocated in a business park. These PIDs were established to provide and maintain enhanced amenities beyond what the City would rlormally approve in a standard development. Most of these amenities take the form of linear parks with walkways, additional landsciping, special features such as bridges and clock towers and special lighting. Since the residents adjacent to these amenities benefit more than the general public, the residents adjacent to the enhanced areas pay special assessments each year for these enhanced amenities. The PIDs are responsible for the maintenance and ongoing upkeep of these enhanced facilities along with the original cosf of the improvements. The City has issued Certificates of Obligations to pay for improvements at the Greenways Public Improvement District. The first issue was for $600,000 in 2001; the second issue was for $620,000 in 2003, a third issue was for $600,000 in 2008, and a fourth issue of $725,000 in 2014. The special assessments paid by the residents are used to pay for the maintenance and upkeep of the special amenities and to service the debt on the Certificates of Obligation. At the end of frscal year 2019, there was approximately $965,445 due the developer of the Greenways for unreimbursed improvements.

The City is obligated to issue additional debt and pay the developer when there are sufficient prope(y owners to support the debt service payments. All of the enhanced amenities at the Greenways were originally estimated to be approximately $2.5 million and estimated expenditures for the2019/2020 fiscal year are $350,000. The Colonies Public Improvement District also has approximate ly $3 million of unreimbursed costs to the developer for enhanced amenities. The City issued Certificates of Obligations to reimburse the developer

for these enhancements. The bonds were issued during 2006 in the amount of $585,000, $1,500,000 during 2008, $1,535,000 in 2014, and S3,000,000 in 2018. The special assessments paid by the residents will be used to pay the debt service associated with this issue. The City is obligated to issue debt when there are sufficient property owners to suppolt the debt to pay the developer along with the ongoing maintenance and upkeep of the amenities. All of the enhanced amenities at the Colonies were originally estimated to be approximately $4.6 million and estimated expenditures for the 2019/2020 fiscal year are approximately $300 to $400 thousand. The other PIDs are fully developed and there is not an amount to be paid to the developer.

The City has committed $181,650 to Center City for dowrrtowrr redevelopment. Center City works closely with the City, citizens, and the downtown developer to promote and improve the downtown area. The City previously entered into a development agreement, which was assigned to the Amarillo Local Government Corporation (LGC) in 201 L The Corporation's cltarge was to work with a developer(s) on the following three downtown initiatives: a convention hotel, a parking garage, and a multi-purpose event venue (MPEV) that will also serve as a minor league ball park. On November 12,2014, the LCC approved a Convention Center Flotel Agreement and a separate Convention Center Parking Garage Agreement. The developer of the convention hotel will operate the hotel and the LGC will operate the parking facility. The parking garage developer will operate the retail portion of the garage. The hotel agreernent includes rebates of State sales and hotel occupancy taxes, rebate of local hotel occupancy taxes and a perfonnance assurance of up to $2 million to assure a minimum performance of the hotel. On December 22,2014, the City Councilapproved Addendum #l to the Interlocal Local Agreement between the City and LGC confirming that the City will provide public revenue, as necessary, to fund the downtown projects arrd to fund the hotel performance assurance.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Endcd September 30, 2019 NOTE u - COMMITMENTS (CONTINUED) The Convention Center Hotel opened on Septernber 8,2017. The performance assurance period began July l, 20l.8.and will run for 42 months ending on Dec.ember 31,2021. During this period the City will assure a minimum performance of the hotel up to $2 million, with no more than $l million drawn in any l2 month period. The performance assurance criteria are 65%o occupancy rate and an average daily room rate (ADR) of $ 130, prior to the opening of the MPEV. After the opening of the MPEV, the criteria changes to 63Yo occupancy and $125 average daily rate. The City has not had to pay anything related to this assurance yet.

On August 11,2015, the Amarillo City Council approved Resolution 08-ll-15-3 regarding the implementation of the proposed Convention Hotel and Parking Carage projects as Downtown Catalyst projects. The proposed resolution: l) amends and restates Resolution 08-23-l I as amended by Resolution ll-ll-14-l approved by the Amarillo City Council on August 23, 2011, and November 11,2014, respectively, 2) provides for the updated financial, contractual, and business structure of the Convention Hotel and Parking Garage projects, and 3) accepts the general terms of the financing plan for the hotel, parking garage, and MPEV. On February l7,20l6,the LGC approved the parking gar^ge construction project in the amount of $15.65 million. Funding for this project includes bond proceeds, reserves from the Civic Center Improvement Fund, General Construction Fund, TIRZ #1, and an additional funding from Center City. On February 2, 2016, the City Council amended the loan agreement between the City and TIRZ #l authorizing a loan of $1.85 million. During April 2016, the City issued approximately $12 million in hotel occupancy tax revenue bonds to fund the parking garage. The parking garage was opened on July 1,2017 .

The City entered into a rental lease agreement in September of 2017 as the lessor with Panhandle Baseball Club, Inc as the lessee of the multi-purpose event venue (MPEV). The agreement includes a $45.54 million construction budget. The initial term runs through 2048 with the annual rent payments of $400,000 beginning April 1,2019 through 2038. The lessee, beginning April 1,2019, shall pay annual rent of $400,000. A portion of the annual rent ($225,000) will be allocated into an MPEV Capital Improvements and Maintenance Reserve. Prior to January 15, 2035 the City and the lessee will have the ability to negotiate a plan for renovation to the MPEV, the agreement anticipates renovation costs of $15 million. Upon successful negotiation of the renovation milestones which includes the renovation plan, amendment and completiorr of the renovation improvements the City and the lessee will have the ability to negotiate a series of renovation term extensiorr options totaling l5 years. The agreemerrt identifies surface parking area as 1,000 parking spaces which are owned or controlled by the City and located no more than 1,600 feet from the MPEV. As detailed in the agreement the lessee shall have the exclusive use of the surface parking area for all events at the MPEV. During January 2018 the City entered into a Construction Manager at Risk agreemerrt for the construction of the MPEV. The maximum guarantee price of the MPEV is $45.54 rnillion. On March 20,2018, the City issued the Hotel Occuparrcy Tax Revenue Bonds, Taxable Series 2018 in the amount of $38.8 million to construct and equip the MPEV. 'l'he additional funding for this project is from the Civic Center Improvement Fund reserves. The MPEV opened in April 2019. The City anticipates the use of hotel occupancy taxes to fund the two bond issues associated with the downtown parking garage and MPEV, specifically the Hotel Occupancy Tax Revenue Bonds Series 2016 arrd Series 2018. Currently,3.SYoof theTYo hotel tax revenues are used to offset the operating loss at the Civic Center Cornplex. Also 3% of the hotel tax is normally allocated to the Chamber of Commerce's Convention and Visitor's Counsel to promote tourism and conventions in the City. The remaining half percent is used to subsidize events. Cenerally, the 3.5% for the Civic Center Complex is rnore than enough to offset the loss, and the balance is transferred to the Civic Center Improvement Fund for future capital needs. For the Civic Center, the net result of issuing the hotel tax revenue bonds will be fewer funds fbr future capital for a period of time. The hotel occupancy tax revenue will ultirnately need to grow to rnake up for

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE il, COMMITMENTS (CONTINUED) the projected reductions to the Chamber and Civic Center. Fortunately, the City has significant grow_th_gf hotdl occupancy tax revenues; with the 2018/2019 fiscal year collections the best year yet with a 3.5% increase over the prior year; and average increases over the previous ten years at 5.SYo which includes the 2016/2017 fiscal year which was the only year in this period that reflected a decrease (2.9%).

NOTE 12 - LONG.TERM OBLIGATIONS Tax Supported Debt On February 3,201l, the City issued the 2011A and 201lB Ceftificates of Obligation series. The 201lA series was issued in the amount of $3,750,000 to fund the reconstruction of one of the City's municipal golf courses. The debt service for this issue will be funded by revenue generated lom the Clty golf courses. The maturities range thru 2037 with annual principal payments from $l10,000 to $245,000 and provide for interest rates ranging from 3.50%to 5.25%. The 20llB series was issued in the amount of $2,210,000 to fund streetscape improvements in the City's downtown central business district. The Accordingly, the debt streetscape project is part of our "Downtown Strategic Action Plan" for TIRZ # service for this issue will be funded by the TIRZ #l revenue. The maturities range thru 2032 with annual principal payments from $90,000 to $170,000 and provide for interest rates ranging from 3.50Yo to

6.00%.

On April 15,2010, the City issued $1,392,000 Recovery Zone Build America Borrds, Series 2010. These bondd were issued at5.816/o with a 45% interest subsidy from the United States Treasury. The rnaturities range thru 2030 with an average interest coupon of 3.196% (net of the subsidy). The proceeds are to fund theCity's portion of the construction of a bridge at Grand and 3rd Strget, as well as street and drainage improv-emerrts. The annual principal maturities range from $69,000 to $88,000.

On September 3, 2009, the City issued the Series 2009 General Obligation Refunding Bonds in the amount of $4,825,000. These bonds refunded the 2001 General Obligation Bonds, with the exception of the August 15,2010 principal payment of $285,000, which was paid by the City. The refund_i1g met the requirements of an in-substance defeasance and the applicable bonds were removed from the City's books of account. The refunding was undertaken to reduce total debt service payments over the next l3 years by approximately $287,000, and resulted in an economic gain of approximately $23 1,000. Interest on the 2009 bonds is payable in semi-annual installments at rates ranging frorn 3S0%to 4.00%o, and the serial bonds mature annually to August 15,2022, in amounts ranging frorn $455,000 to $485,000. The City has reserved the right to redeem ihe bonds with maturities on or after August 15,2019, on August 15,2018,

or any date thereafter.

On February 22,2017, the Ciry issued $15,110,000 of General Obligation Refunding Bonds fgr the purpose of the refunding the Combination Tax and Revenue Certificates of Obligation Bonds, Series 2007. The refunding was undertaken to reduce total debt service payments over the next ten years by $2.7 rnillion and resulted in a present value benefit of $2.4 million. Interest is payable in setni-annual installments which began May 15,2017 ata4.00Vo interest rate and the term bonds mature annually to May 15,2027 in amounts ranging from $1,335,000 to $1,760,000. The bonds are not subject to optional redemption.

Irr conjunction with the General Obligation Refunding Bonds issued on February 22, 2017, the Cityissued-$6,940,000 of Combination Tax and Revenue Certificates of Obligation for the purpose of acquiring a two-way radio communications system for the public safety department. Interest is payable irr semi-annual installments which will begin February 15,2018, at rates ranging from 3.00% to 3.50%, and the term bonds mature annually to February 15,2037 in amounts ranging from $140,000 to $620,000. The City reserved the right to redeem the bonds with rnaturities on or after February 15,2028, on February 15,2027, or any date tlrereafter.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Tax Supported Debt (Continued) The City issued $21,280,000 of General Obligation Bonds on May ll,2017 to address public safety and street capital improvement projects approved by voters during a November 2016 bond election. Interest is payable in semi-annual installments which will begin February 15,2018, at rates ranging from 3.00% to 5.00%, and the serial bonds mature annually to February 15,2042 in amounts ranging from $540,000 to $1,270,000. The City reserved the right to redeem the bonds with maturities on or after February 15, 2028, on February 15,2027, or any date thereafter.

On July 18,2018, the City issued $22,145,000 of General Obligation Bonds for the purpose of public safety and street capital improvement projects approved by voters during a November 2015 bond election. Interest is payable in semi-annual installments which will begin February 15, 2019, at rates ranging from 3.125% to 5.00%, and the serial bonds mature annually to February 15,2041 in amounts ranging from $535,000 to $1,325,000 with additional maturities of $1,685,000 3.00% term bonds due FebruaV 15, 2030 and $2,605,000 3.625% term bonds due February 15,2043. The City resenred the right to redeem the bonds with maturities on or after February 15,2029, in whole or from time to time in part in principal amounts of $5,000 or any integral multiple thereof, on February 15,2028, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. The City's General Obligation debt is rated AAA by Standards and Pooy's and Aal by Moody's.

Special Assessment Debt

On November 26, 2003, the City issued $620,000 of Combination Tax and Revenue Certificates of Obligation for the purpose of financing the construction of additional park facilities in the Greenways Public Improvement District of the City. Debt service is to be funded out of special assessments on properties within the District. Interest is payable in semi-annual installments at 3J0Vo, and the certificates are subject to mandatory redemption in annual amounts ranging from $40,000 to $45,000. Final maturity is August 15,2023. On May 24,2006, the City issued $585,000 of Cornbination Tax and Revenue Certificates of Obligation for the purpose of financing enhancements of the park facilities in the Colonies Public Improvement District. Debt Service is to be funded out of special assessments on properties within the District. Principal and interest are payable monthly at a rate of 4.75Y0, and the certificates are subject to mandatory redemption in annual amounts ranging from $18,920 to $43,909. The final maturity is February 15,2026,

On July 17,2008, the City issued $600,000 (2008A) and $1,500,000 (20088) of Combinatiorr Tax and Revenue Certificates of Obligation for the purpose of firrancing errhancernents of the park facilities in the Greenways Public Improvement District and the Colonies Public Improvement District, respectively. Debt Service is to be funded out of special assessments on properties within each District. For the 2008A issue prirrcipal and interest are payable semi-annually at a rate of 4,28%0, and the certificates are subject to rnandatory redemption in annual atnoutrts rarrging frorn $30,000 to $45,000. The final rnaturity is February 15,2028. For the 20088 issue principal and interest are payable semi-annually at a rate of 4.080 , and the certificates are subject to mandatory redemption in annual amounts ranging from $75,000 to $ I 10,000. The final maturity is February I 5, 2028.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Special Assessment Debt (Continued)

On April 1,2014, the City issued $2,250,000 of Combination Tax and Revenue Certificates of Obligation, Series 2014 for the purpose of financing enhancements of the park facilities in the Greexways Public Improvement District ($725,000) and the Colonies Public Improvement District ($1,535,000), respectively. Debt Service is to be funded out of special assessments on properties within each District. The principal and interest are payable in semi-annual installments at rates ranging from 225o/o \o 3.625%, and the cdrtificates are subjebt to mandatory redemption in annual amounts ranging from $95,000 to $155,000. The finalmaturity is August 15,2034.

In conjunction with the General Obligation Bonds issued on July 18, 2018, the City issued $3,000000 of Combination Tax and Revenue Certification of Obligation for the purpose of improving park facilities in the Colonies PID. Interest is payable in semi-annual installments which will begin February 15,2019, at rates ranging from 3.00% to 4.00%, and the serial bonds mature annually to February 15, 2038 in amounts ianging from $110,000 to $205,000. The City reserued the right to redeem the bonds with maturities on oiafter February 15, 2029, in whole or from time to time in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2028, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. On April 13,2016, the City issued the Hotel Occupancy Tax Revenue Bonds, Taxable Series 2016 (Series 2016i in the amount of $11,995,000 to construct and equip the downtown Amarillo parking garage located in the vicinity of the City's convention center facilities. Debt service is to be funded by the Hotel Occupancy Tax. Principal and interest are payable annually at rates ranging from 1.85% to 4.25% and are subject to mandatory rellemption in annual arnounts ranging from $320,000 to $740,000, Final maturity is August 15,2043.

On March 20,2018, the City issued the Hotel Occupancy Tax Revenue Bonds, Taxable Series 2018 (Series 2018) in the amount of $38,835,000 to construct and equip a multiuse facility. Debt service is to be funded by the Hotel Occupancy Tax. Principal and interest are payable annually at rates ranging from 2.80% to 4.15% and are subject to mandatory redemption in annual amounts ranging from $800,000 to $1,220,000. Firral maturity is August 15, 2033 with additional maturities of $6,915,000 4.20o/o term bonds due August 15,2038 and $19,120,000 4.40% term bonds due August 15,2048. The City reserved the right to redeem the bonds with maturities on or after August 15, 2027, in whole or from time to tirne in part in principal amounts of $5,000 or any integral multiple thereof, on August 15,2026, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. Fleet Services Bonds

On February 25,2014, the City issued Tax Notes, Series 2014 in the amount of $2,650,000. The Notes have a five-year life and are payable in semi-annual installments with interest rates at 2.00%, This issue will be used to f'und roll stock in the Fleet Services fleet. The Notes are subject to mandatory redemption in annualamounts of $455,000. The Notes tnatured during 2019. Summary of changes in the governmental activities debt for the year ended September 30,2019, is as

follows:

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Tax Supponed Debt Principal balanccs outstanding Octobcr l, 201 8

66,054,000

Spcchl Asscssrncnt Dcbt and Othcr Rcvcnuc Sourccs

$ 62,286,733

Flcct

Total

Scrviccs

Govcrnmcnt

Dcbt

Activitics Dcbt

455,000

$ t28,795,733

New bond issue Principal matruitics

(3.237.000)

(873.037)

Balances September 30, 2019

62,81?,000

6r,413,696

r24,230,696

Balancc of unamortizcd discouny'prcmium

3-394.938

214.734

3.609.672

Net balanccs, Scptcmbcr 30,2019

$ 66.2r r.938

s 61.628-430 s

(455.000)

(4.565.037)

s r27-840.368

Water and Sewer Bonds On April 1,2009, the City issued $38,885,000 Combination Tax and Revenue Certificates of Obligation bonds, Series 2009 to help fund the Potter County well field project. The outstanding bonds mature annually through 2028 in principal amounts ranging from $2,095,000 to $2,555,000 and provide for interest rates ranging from 1.812% to 3.018%.

On December 29,2009, the City issued the Combination Tax and Revenue Certificates of Obligation Series 20098 in the amount of S47,400,000. The Series 20098 bonds mature annually through 2029 in principal amounts ranging from $2,540,000 to $3,400,000 and provide for interest rates ranging from 1S91%to2.587%o. The City also issued Combination Tax and Revenue Ce*ificates of Obligation Series 2009C in the amount of $18,075,000. The Series 2009C bonds mature annually through 2031 with annual principal payment of $905,000 and provide for a 0Yo interest rate. On August l, 201 l, the City issued General Obligation Refunding Bonds, Series 201 I of $5,605,000 par value to refund S5,680,000 of the 2003 Waterworks and Sewer System Revenue Bonds. The advance refunding met the requirement of an in-substance defeasance and the applicable bonds were removed from the City's books of account. The refunding was undeftaken to reduce the total debt seruice payments over the next twelve years by $840,080 and resulted in an economic gain of $7 I 6,61 8 with a net present value benefit of $337,772. $410,000 of the outstanding remaining principal of the 2003 issue was paid off in2012. The outstanding Series 20ll bonds mature annually thru 2023 with principal amounts ianging from $525,000 to $575,000 and provide for interest rates ranging from 2.625%to3.125%. On August 1,201l, the City issued the Waterworks and Sewer System New Series Revenue Bonds, New Series 201 I in the amount of $ 16,300,000. The Series bonds mature annually through 203 I in principal amounts ranging from $720,000 to $1,150,000 and provide for interest rates ranging from 3.00% to 4.125%. The proceeds were used to fund the purchase of Ochiltree County water rights. On July 10,2013, the City issued the Waterworks and Sewer System New Series Revenue Bonds, Series 2013 in the amount of $1,310,000. Tlre Series bonds mature annually through 2023 in principal amounts ranging from $130,000 to $135,000 arrd provide for interest rates ranging from 0.25% to 0.85%. The proceeds will be used to fund the design of the Osage to Arden Road pipeline.

On January 22, 2014, the City issued the Waterworks and Sewer Systern New Series Revenue Bonds, Series 2014 in the amount of $8,495,000. The Series 2014 bonds mature annually through 2033 in principal amounts ranging from $j90,d00 to $495,000 and provide for interest rates ringing flom 0.36% to2.62%. These funds will be used for the design and constnrctiorr of Georgia Street Interceptor project. This project will eliminate a lift station and ensure proper operation of the collection system in the area.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Water and Sewer Bonds (Continued) This bond issue will also fund the planning and design for the replacement of Lift Station 32. Included in this financing is an additional amount of $441 ,13 I of loan forgiveness for a total project of $8.9 million. On October 2,2015, the City issued the City of Amarillo, Texas, Waterworks & Sewer System Refunding Bonds, New Series 2015A (Series 2015A Bonds) in the amount of $21,145,000. The Series 2015A Bonds refunded the Series 2005,2006 and 20064 Bonds. The refunded bonds are considered defeased and have been removed from the City's books. The refunding was undertaken to reduce total debt service payments overthe next sixteen years by $4,259,179 and resulted in an economic gain of $3,494,212and the present value benefit of $2,623,562. The outstanding Series 2015A Bonds mature annually thru2032 with principal payments ranging from S375,000 to $1,730,000 and provide for interest rates ranging from 2.00%to 4.00%.

On October 2,2015, the City issued the City of Amarillo, Texas, Waterworks & Sewer System Revenue Bonds, Series 2015 in the amount of $17,195,000. The Series 2015 bonds mature annually through 2035 in principal amounts ranging from $815,000 to $950,000 and provide for interest rates ranging from 0.50% to I .59Yo. These funds will be used for the construction of the Arden Road transmission pipeline project from the Osage water treatment plant to the connection for the Arden Road pump station. This allows the City to move an additional 20 million gallons per day which allows the City to deliver the new water supply from the Potter County well field to the west side of town.

On May ll,2017 the City issued the City of Amarillo, Texas, Waterworks & Sewer System Revenue Bonds, New Series 2017 in the amount of $31,005,000. The New Series 2017 bonds mature annually through 2037 in principal amounts ranging from $1,175,000 to $2,035,000 and provide for interest rates ranging from 3.00% to 5.00%. These funds will be used for the construction of the improvement and extension of the City's waterworks and sewer system as identified through a five year community improvement plan. On July 19,2018, the City issued the City of Amarillo, Texas, Waterworks & Sewer System Revenue Bonds, New Series 2018A in the amount of $12,500,000. The New Series 2018A bonds mature annually through 2038 in principal arnounts ranging from $575,000 to $705,000 and provide for interest rates ranging from 0.36% to L60%. These funds will be used for the construction of Lift Station 32. The City reserved the right to redeem the bonds with maturities on or after April 1,2029, in whole or from time to time in part in principal amounts of $5,000 or any integral multiple thereof, on October 1,2028, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. On July 19,2018, the City issued the City of Amarillo, Texas, Waterworks & Sewer System Revenue Bonds, New Series 20188 in the amount of $14,610,000. The New Series 20188 bonds mature annually through 2034 tn principal amounts ranging from $520,000 to $845,000 and provide for interest rates ranging from 3.00% to 5.00% with additional maturities of $1,790,000 350% term bonds due April l, 2036and$1,915,0003.50%terrnbondsdueApril l,2033.Thesefundswill beusedfortheimprovement and extension of the City's waterworks and sewer system as identified through a five year community improvemerrt plarr. The City reserved the right to redeem the bonds with maturities on or after April l, 2029, in whole or from time to time in part in principal amounts of $5,000 or any integral multiple thereof, on April 1,2028, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30r20t9 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Water and Sewer Bonds (Continued)

A summary of changes in Water and Sewer System bonded debt for the year ended September 30,2019, is as follows:

$ 175,450,000

Principal outstanding, October l, 2018 New Issues Principal maturities

fl I 750 0n0\

Principal outstanding, September 30, 2019 Unamortized redemption premium

163,700,000 3 6s3.382

Net balances, September 30, 2019

$16?113.382

The net revenues of the Water and Sewer System are pledged to secure this debt. In accordance with bond covenants, the following special funds or accounts must be maintained:

. o

A revenue fund, to which all gross revenues are to be credited immediately upon receipt.

An interest and redemption fund, to be funded by transfers from pledged revenues ln

approximately equal monthly installments, sufficient to pay the next succeeding interest and piincipal payments. The 2019/2020 obligation is $16,019,146. At September 3 0, 2019, the amount available in this account was $5,722,319.

A reserrye fund, to be funded monthly by transfers from pledged revenues in the amount equal to l/60th of the average annual principal and interest requirements of the bonds until the fair value of the reserve fund is equal to the average annual debt service requirements of the then outstanding bonds. At September 30, 2019, the combined requirement amounted to $2,397,030, and the amount available in this account was $2,397,030.

The interest/redemption and reserve funds required by the bond covenants are reported in the financial statements as noncurrent assets and liabilities. The various revenue bond covenants require that the City carry insurance against risks, accidents or casualties to the extent usually canied by corporations operating like properties. The City is subject to arbitrage provisions under the Internal Revenue Code, which requires that excess earnings on invested proceeds from tax-exempt bond sales over interest expense paid to bond holders be remitted to the Internal Revenue Service. The City did not have an arbitrage liability at September 30, 2019. The City has maintained its tax-exempt status during 201 9.

The City has the right to issue additional Waterworks and Sewer Revenue Bonds, subordinate to these issues, Moreover, the City can issue additional parity debt so long as the net Water and Sewer Systern revenues exceed the debt service on the prior bonds together with any additional borrowings by 1.25 times.

On June I l, 2018, Standard & Poor's Rating Services affirmed its AAA rating, with a stable outlook, on the City of Arnarillo, Texas Waterworks and Sewer System Revenue Bonds.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Water Authority Obligations

In 1968 the City, together with l0 other cities, entered into a contract with the Canadian River Municipal Water Authority (CRMWA) to reimburse it for the cost of constructing a dam and aqueduct system in exchange for the water to be provided from the reseryoir. The dam is located approximately 35 miles northeast of the City. During April 2005, the member cities of CRMWA agreed to participate in two CRMWA debt issues. The first issue was the 2005 Contract Revenue Refund Series and was used to refund a portion of the Series 1999 issue. During 2015, the 2005 Series was refunded with the 2014 refunding issue. During 2010, the

l999issuewasrefundedwithbondsmaturingin2020.

AtSeptember30,20l9,theCity'sproportionate

share of the 2010 issue is $213,418. The City's share of the annual principal amount is $213,418 providing for interest of rate 3.50%. At September 30, 2019, the City's portion of the 2014 refunding bonds is $549,878 with a principal amount of $549,878 providing for an interest rate of 5.00%.

On January 22, 2013, CRMWA issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2012 in the amount of $39,505,000 for the advance refunding of the 2005 CRMWA Contract Revenue Series. The2012 Refunding Bonds will reduce total debt service payments over the next thirteen years by $5,063,754 with Amarillo's share at $2,443,576. The refunding resulted in an economic gain of S4,259,006 with Amarillo's share at S2,044,083. The City's outstanding portion of this bond issue is $15,616,925 at September30,20l9, with principal maturing annually through February 15,2025, and interest of 5.00%. In total, the payments to CRMWA will remain constant throughout the term of the various bond issues. The City's portion of the principal payments range from $ I , I 34 ,779 to $3,348,405. During 2006, the member cities of CRMWA agreed to participate in the 2006 CRMWA debt issue. The Contract Revenue Bonds, Series 2006 were issued in the amount of $49,075,000. During 2015, the 2006 CRMWA issue was partially refunded with the 2014 refunding issue. At September 30, 2019, the City's proportionate share of the 2014 issue is $8,780,906. The City's portion of the principal payments for the 2014 issue range from S463,079 to $1,368,251 with an interest rate of 5.00%. During November 2009, CRMWA issued debt in the amount $21,105,000. The City participated in this issue and the City's proportionate share of this indebtedness was $8,573,062. The City's portion of the arrnual principal payments ranged from $268,606 to $951,547 with interest rates of 3.00% to 5.00%. The City's proportionate share of this indebtedness matured during 2019.

During December 2011, CRMWA issued debt in the amount $81,630,000 to fund the purchase of additional water rights in the Ogallala Aquifer. The City participated in this issue and the City's proportionate share of the bond issue was $33,536,053. The bonds were issued at a premium and the City's proportionate share was $3,091,199 with bond issuance cost of $473,755. The City's portion of the annual principal payments range from $649,625 to $2,567,688 with interest rates of 4.00% to 5.00%. At September 30, 2019, the City's proportionate share of the outstanding indebtedness was $23,293,035. Bonds are secured by a lien on the participating tnernber cities' project payments. As mentioned above, on November 4,2014, CRMWA issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2014 in the amount of $42,165,000 to refund a portion of CRMWA's outstanding Contract Revenue Refunding Bonds, Series 2005 and a portion of the CRMWA's outstanding Contract Revenue Bonds, Series 2006. The 2014 Refunding Bonds will reduce total debt service payments over the next 13 years by $5,157,098 with Amarillo's share at $?,437,634. The refunding resulted in an economic gain of $4,468,378 with Arnarillo's slrare at $2,139,336. The City's portion of this bond issue was $20,294,781 with principal maturing annually through February 15,2027, and arr interest rate of 5.00%. In total, the payments to CRMWA will remain constant throughout the term of the various bond issues. As noted above, the City's proportionate share of this indebtedness is $549,878 at Septernber 30, 2019.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Water Authority Obligations (Continued) CRMWA issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2017 in the amount of $l1,465,000 with interest rates ranging from 3.00% - 5.00%. The proceeds were used to advance refund $13,575,000 of outstanding Contract Revenue Bonds, Series 2009 which had interest rates ranging from 4.00% - 5.00%. The net proceeds of $14,228,820 (including a $1,317,090 premium, a debt service reserve contribution of $1,684,400, less $237,670 in underwriting fees and other issuance costs) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds. The refunded portion of the Contract Revenue Bonds, Series 2009 is considered defeased and the liability for those bonds has been removed from the statement of net position. The City's proporlionate share of Series 2017 bonds is $4,290,080 at September 30,2019. The City increased Water and Sewer rates by 6% beginning October l,20ll, and by 5% effective October 1,2012, to help pay for the purchase of the Ochilree County water rights and the City's portion of the CRMWA debt. The City increased rates effective October l,2013,by 2% to help pay for the 2013 and 2014 Water and Sewer Revenue bonds.

Summary Information - Long-Term Bonds and Contracts

A summary of changes in the City's CRMWA debt for the year ended September 30,2019, is reflected in the following table:

$ 58,331,367

Principal outstanding, October 1, 2018 Principal maturities

(s.s87.r2s)

Principal outstanding, September 30, 2019

52,744,242 6.973-699

Unamortized redemption discount/premium Net balances, September 30, 2019

$_tL1ft-gal

Airport Bonds On Seotember 3.2009. the Citv issued $15.140.000 Combination Tax and Revenue Certificates of Obliqaiion Series'2009A bonds to helD fund th'e tefminal buildinc proiect. The outstandinc bonds mature innuZity inrough 2020 principal amouht of $ I ,830,000 and provide'for- an interest rate of 4383yo.

$ /r3,570,000 740 000)

Principal outstanding, October l, 2018 Principal maturities

Principal outstanding, September 30n 2019 Unamortized redemption prem ium

1,830,000 147 55?

Net balances, September 30, 2019

Q I O?1 <<t

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Drainage Utility Bonds On December 12.2012. the Citv issued $6.260.000 in Combination Tax and Drainace Utilitv Revenue Certificates of O6lisati6ns (COi). The z}izA'issue is mainlv for drainase imorovdments o'n Farmers Avenue. The 2012X bonds have a final maturiw of Aucust 15:2032. The COs a're subiect to mandatorv redemption in annual amounts ranging from $250,00dto $320,000 and provide for ah interest rate of 2.00y;. In addition to the tax pletreel the Draina'se Utilitv COs have ah unlimited net pledee of the Drainaqe Utiliw Svstem of 1.25'timds net revenue.-ttre Ciw intends to fund the debt entirelv-from the Draina[e Utilit!' arid not levy a propefty tax for the COs. Thris, the debt is structured similar tdthe Water

& SewEr revenire debt.

On Aoril 1.2014. the Ciw issued $6.080.000 in Drainaqe Utiliw Revenue Bonds. The 2014 issue is mainli for drainarie imoroiements on Marfin Road. The 2O t + Uonas have a final maturiw of 2034. The bondiare subiect-to m'andatorv redemption in annual amounts ransinq from $265.000 to $410.000 and provide for inierest rates rangiirg from'3.00yoto3.75yo. The bondJhive an unlimited net pledle of the brainage Utility System of t )5Times net revenue.

$ 9,005,000

Principal outstanding, October 1, 2018

(s 10.000)

Principal maturities

Principal outstanding, September 30, 2019 Unamoft ized redemption premium

8,495,000 R0 740

Net balances, September 30, 2019

$_&571J40

Summary Information - Long-Term Bonds and Contracts Bond issues outstanding at September 30,2019, are summarized in Table 8 below. I ntc rcst

Mrlurily

Finel

Principol Amounl

Annunl Principol lnst:rllmcnls

Rrtcs

Drte

Outstrndins

3.50. 4,00%

7022

$ 1.405.000

$ 455.000

5,81% 4,00%

2030 2027 2037

852.000 t2,3 r5,000 6.085.000 20,460.000

69.000

88.000

|.335.000

r.760.000 620.000 1.270.000

2 l.700.000

r 40.000 540.000 535.000

City of Amarillo indcbtness General Obligation dcbt Payablc l'rorn t&\ revcnues Gcncrul Obligation Bonds. Scries 2009 Rccovcry Zone lluild Arnericu Bonds, Scries 2010 Gcncral Obligution Rcllnding Bonds. Series 2017 Ccrtilicatcs of Obligation, Serics 2017 Gcncral Obligation Bonds. Series 201? Gcneral Obligation Bonds. Scries 2018 Payablc ltom spccial asscsmcnts Combination taVrcvcnuc ccrtilicates of obligution. Scrics 2003 Cornbirrution tax/rcvcnuc ccrtilicatcs of obligution. Scrics 2006 Combination taVrcvcnuc ccililicatcs ol obligotion, Scrics 2008A Cornbinotion taVrcvcnuc ccnilicatcs ol obligation, Scrics 200811 Conrbirration taVrcvcnuc ccrtiticstcs ot' obligction, Scrics 20 l4 Cornbirration tsVrcvcnuc ccrtit'icotcs of obligation, Scrics 20 I 8 Itayablc liorn othcr sourccs Combination taVrcvcnuc ccrtificatcs of obligation. Scrics 201 IA Combinotion taVrcvcnuc ccrtilrcatcs ol obligution. Scrics 201 I B Hotcl occupancy tox rcvcnuc bonds, Scrics 20 l(r llotcl occupancy tox rcvcnuc bonds, Scrics 20 I 8

3.00. 3.50% 3,00 - 5.00%

$ 485,000

3.r25.5.00%

2042 2043

3.'t0%

2023

70.000

40.000

4s.000

4.15%

2026

253.696

l 8.920

43,909

4.28o/o

2028

335.000

30,000

45,000

4.08e/o

2028

830,000

75,000

1t0,000

2,250 - 3.6250/o

2034

I,820,000

95,000

r 55,000

3,00 - 4,00%

2038

2,905,000

I I 0,000

205,000

3.50 - 5.25o/o

203'7

2.995.000

r 10.000

24s.000

3.50 - 6.00%

2032

r.590.000

90.000

l.s5 - 4.25%

2043

I l,(180,000

320,000

740,000

2.80 - 4.150/o

2048

3S.835.000

800.000

r,220,000

r.325.000

70.000

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Summary Information - Long-Term Bonds and Contracts (Continued) Annurl

lntcrcst

Ilhturity

Principrl Amount

Prlnclpnl

Rrtes

Dstc

Ou$trndln!

lnstNllmcnts

3.00 - 4.125'/o

203t

0.25 .0.8s% 0.36 .2.620/o 0.50. r.s9%

2023

2.00.4.0Qo/o

2032

3,00.5.00%

2037 2038 2038

0.950.000 535,000 6, I 70,000 l 3.860.000 14.280.000 28,650,000

Flnel (Continucd)

Watcrworks ond Scwcr Bonds 201 I revenue issuance 2013 revenue issuancc 2014 revenue issuance 201 5 revenue issuance 201 5A revenue refunding issuance 2017 rcvcnuc issuancc 2018A rcvcnuc issumcq 201 8B rcvenue issuance Combination toii,/revenue cenificate$ of obligation, Series 2009 Combination tax/rcvcnus ccrtificatcs of obligetion, Scrics 20098 Combinution tax/revcnue cenil'rcales of obligation, Series 2009C General Obligation bonds, Scrics 201I

2033

2035

0,36 - 1,6070 3.00. 5,00%

|, r 50,000 I 35,000 495,000 950.000 1.730.000 2,035,000 705,000 845,000

8 l t,000

I 3,935,000

375.000 I , I 75,000 575,000 520,000

20.70s.000

2.095,000

I t,885,000

r.8r2.3.018% 2028 1.591 .2,587o/o 2029

720.000 r 30,000 390,000

. 2.555.000

29,680,000 2,540,000 .

0.00o/o

203 r

2.625 - 3.t250/o

2023

10.860.000 2. r 90.000

4.783o/o

2020

1,830,000

3.00 - 3.t50/o

2034

4,860.000

2.00%

2032

3,635,000 29E,255,696

3.500/o

2020

2r3,4r8

4.00 - 5.000/o 5,00%

203 r

23,293,035 I 5,6 r 6,925

3,400,000

90s.000

s25.000 575.000

Airpon Bonds CombinEtion tax/rwcnuc ccrlificotcs of obligation, Scrics 2009A Drainage Bonds 2014 revenue issuance Combination tax/revenue cefl ificares of obligation, Scrics 2012A

Tolrl Chy of Anrdllo l$$urnccl Cansdian River Water Aulhority indcbtodncss 2010 refunding issuance (Conjunclive Lhe Croundwatcr) 201 I rcvcnuc issuancc 2012 rcfunding issuoncc 2014 rcfunding issuEnce 201 7 refunding issuance

5,00%

2025 2021

3.00. s.00%

2029

9,330,784 4,290,080 s2,744,242

Totrl Clty shrrr of Wntcr Authorily lndcbtncss

. 250,000 . 265,000

4t0.000 320,000

2r3.4r8

649,625 -

t,t34,779 -

463,079 85,301 -

2,567,618 3,348,405

t,368,25t 553,46t

s 350.999.938

Totnl bond issucs outstrndlng

Tablc 8

l,830,000

- Dcscrlptlon ol Indlvldual Bond Issues Outstanding

The annual requirements to amoftize all bonds outstanding, including interest, are shown in Table 9 below. For thc

Spccirl Assessmenl

Wrtler& Sewcr

f,nd othcr suDooricd Dcbt

Deba

Yelr Dndcd Trx-Supportcd Dcbt

Selracmbe r 30.

Principal 2020

3,439,000

lntcrcst

Prhrcioal

Intcrest

t 2,3 r6,751

584.643

448.448

Princinal

\Voaer Auahorlty Dcbt

lnlcrcst

Princioal

lntcrcst

I 1.770.000

s 4,249.r46

$ 5,837,275

s 2.535,750

2021

3,575,000

426.596

I 2.005.000

4.027.638

6,06 1.028

2,259,165

3,7r 7,000

2,177,420 2,028,s24

6l l,325

?022 2023 2024

638,088

402,750

I 2,2?5,000

3.771.135

6.358.023

3,373.000

1,872,071

659,936

378,306

I 2,580,000

3,467,077

6.674,5 I I

3.5 I 5.000

1,729.939

636,87s

351 ,989

I 2,4?5,000

2025-2029

I 5. I 80.000

6,396.907

3,3 12,829

r ,33 r ,333

6 r ,605,000

2030-2034

10,018,000

4,232,427

2.975,000

639,0s0

2035-2039

r t,285,000

2.483.906

1.480.000

I I t.791

2040.2044

8.7 r 5.000

559.028

s 62,8t7.000

3, l 36,534

?,014,796

t.963.299 t.650.443 r,3 l?,830

0,390, I 26

17,58t,296

2,84 1,252

27,675,000

3,89r,r67

3,2 l?,3 t 3

t12,857

r 3,3 I 5,000

842,569

s 23.79s.973 s 10.898.696 $ 4,090,263 $ 163,700,000 S 33,?75,392 S 52,?44,242 S 12,740,596

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30' 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Summarl Information - Long-Term Bonds and Contracts (Continued) For the

Yclr Ended

Alryott

Sepaembcr 30,

Dcbt Principal

llotel Occuplncy Tox

Drninegc Dcbl Principal

lntcrcst

515,000 s

Totrl

Debt lntercst

lntcrcst

Principal

Intcrcst

320.000

s 2.057,969

s 24.295.91E

$ I I,E82,t70

I, I 30,000

2,051,089

23,902,353

I 1.159.302

l, I 55,000

2,020,934

24,6?8,1 I l

10,390,986

25,0t7,447 25,42t,671

9,545,871

Princiorl

202t

520,000

aAtt

535,000

230,344 217,394 204,344

2023

540,000

190.894

l. r 90.000

1,987,080

2024

555,000

t77,294

I,225.000

r.949.93 r

2025-2029

3,000,000

669,106

6,810,000

I 07,489. I 25

30,704,452

2030-2034

2,830,000

249,013

54,955,3 I 3

t6,826,724

2020

,830,000

43,162

8,662.5 I 7

8,240,000

9.075,728 ?,642,2t0

2035-2039

7,910,000

4,796,330

33,990,000

8,234,596

2040-2044

I 3,890,000

4,400,278

22,605,000

4,959,306

8.645.000

97t.520

8.645^000

97t.520

204s.2048

r.830,000 s

43,762

$ 8.495.000 s r.938,389 $ 50,51sp00 $ 36,9s3,069 $3s0,999,938 S[3,33?,444

'l'ablc 9 - Annwl Daht Scrvicc Rcqulrcncnts, lncludlng Intsrcst

Provision for Compensated Absences The City provides for its full+ime employees annual leave of two to five weeks, depending upon years of service with the City. Civilian, full-time employees hired prior to October 1,2007 and Fire Fighters and Police Officers may accumulate up to 65 days of annual leave to be paid in a lump sum upon termination of employment. Civilian, full-time employees hired after October 1,2007 may accumulate 30 days of annual leave to be paid in a lump sum upon termination of employment. The City also provides its full+ime employees sick leave of twelve working days each year for Civilian employees and fifteen working days each year for Fire Fighters and Police Officers. For full-time Civilian employees hired prior to October 1,2007 sick leave may be accumulated without limit. Upon termination, if the employee has over ten years of continuous service, they will receive a lump sum payment of their sick leave not to exceed 90 days. Fire Fighters and Police Officers, regardless of y-ears of sbrvice, shall be paid a lump sum payment not to exceed 90 days upon their termination of employment.

Full-time Civilian cmployees hired prior to October 1,2007 and Fire Fighters and Police Officers who are eligible to retire will be allowed to convert any available sick leave, above the 90 days sick leave paid at retirement into a Health Reimbursement Account (HRA). For this purpose, each 30 hours of accrued sick leave above the 90 days will be converted to the equivalent of one month of retiree-orrly health benefit coverage. The resulting dollar value will be deposited into the retiree's HRA. Full+ime Civilian employees hired after October 1,2007 may accumulate 60 days of sick leave. This will be paid in a lump-surn upon termination if the enrployee has ten continuous years of service. In certain cases, compensatory time, in lieu of cash payments for overtime, may be granted to non-exempt employees at the rate of 1.5 hours for each hour worked for which overtime is required. Civilian emirloyees are limited to 80 hours of compensatory time while Fire Fighters and Police Officers may accrue up to 120 hours. Upon termination all non-exempt employees will be eligible to receive a lump sum payment for any accrued compensatory time which has not already been taken off as time off with pay.

The obligation of the City with respect to vested benefits at September 30,2019, under the annual leave policy was $10,360,544, compensated time policy was $l ,227,414, and under the sick leave policy was $9,233,892, and under the individual health retirernent account policy was $2,669,042. 95

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Provision for Compensated Absences (Continued) These obligations were recognized in the financial statements as summarized in the following tabulation:

Governmental

Proprietary

Funds

$ 22,769,639 $ 1,270,892

Balances at October l,2018 Terminations paid

(2,220,713)

| 819 6'76

Leave accrued

Q tt ?ae (nt

Balances at September 30,2019

(28 I ,5 l0) r r?_ s08

Ll*10229Q

Of the above obligations, $1,966,628 in the Government Funds and $237,483 in the Proprietary Funds are estimated to be current. In prior years, the General Fund has liquidated the compensated absences liability related to governmental funds.

In 1997 the City established a debt service fund to provide for the portion of the liability applicable to the General Fund and certain special revenue funds. The net position in the fund at September 30, 2019, was $683,801; $622,587 of the obligation is funded in separate internal service funds and is accrued as a liability of these funds.

Provision for Landfill Closure and Post-Closure Care Costs The City owns a 662-acre rurat site, which it operates for solid waste disposal purposes. Based on an amended permit issued by the Texas Commission on Environmental Quality dated August22,2007,the site has an estimated totalcapacity of 43,098,100 tons. It is estimated that 24.2% of the revised capacity was filled at September 30,2019, and that the landfill has a projected remaining life of approximately 123 years at the current rate of usage. State and federal laws and regulations require the City to place a final cover on the site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. The construction as well as the cost of wells, which have been installed for monitoring the underlying water table for any impact on it of ongoing landfill activities, were funded by waste collection and disposal revenues of the City's General Fund, and are included in capital assets of the governmental activities. Governmental accounting standards require that, for periods beginning after June 15, 1993, governmental entities recognize an accrued liability for the estimated cost of equipment, facilities, and services for closure, and post-closure care expected to result in disbursements near or after the date that the facility stops accepting solid waste. The amount of the liability is based on what it would cost to have all such closure and post-closure care performed in the current year, and is assigned to periods based on cumulative landfill use. The City engaged an independent engineer who estimated the cost of final cover at $8,145,871 for a 10O-acre, two-cell segment. The estimated cost of monitoring the entire 662 acres during the statutory 30-year period is an additional $1,780,200. Both computatiorrs were made in accordance with regulations of the Environmental Protection Agency, which require that tlre estimates be based on the current cost of hiring third parties to perforrn the services. The actual cost of these functions, when performed in future years, may differ because of inflation, changes in technology, changes in environmental regulations, or performance of certain of the functions by City personnel and equiprnent. Consideringthe clrarrge in the Consumer Price Index (CPI) arrd the addition of the Transfer station, closure costs would be about $l 1.5 rnillion and post-closure costs would be about $3.5 million for a total of $15 million in today's dollars. Based on the cumulative usage of 10,410,433 tons at September

30,2019, together with the estimated 43,098,100-ton capacity of the landfill, the accrued liability consists of the following elements: Provisiorr for final cover costs Cost of post-closure care and rnonitoring

$ 2,755,01 I

Total estimated accrued liability

$ 3.s82.p46

827.035

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019

NOrE 12 - LONG-TERM OBLIGATIONS (CONTINUED) Provision for Landfill Closure and Post-Closure Care Costs (Continued) Under laws and regulations administered by the Texas Natural Resource Conservation Commission, owners and operators are required to provide financial assurances that the funds needed for the closure of landfills will be available when needed. The City has elected to meet this responsibility by demonstrating its compliance with the "local government financial test," which promulgates criteria regarding financial strength, public notice, and record-keeping and reporting. The City fulfilled the financial strength test by dernonstrating a current Standard & Poor's rating of AAA, together with a ratio of total annual revenues to the gross estimated cost of environmental obligations in excess of 100/43, together with meeting certain general conditions. It fulfills the public notice component by disclosure in this footnote, and fulfills the record-keeping and reporting component by submission of reports to the Texas Commission on Environmental Quality. Long-term liabilities activity for the year ended September 30, 2019, was as follows: Bnlancc

Amortbltion/

Accrction

Smt. 30. 2018

Duc Withh

Bohncc

Additions

Rcductions

Smt 10 2010

6nc Yar

(rq3rstcd) Bonds paynbh: Govcrnrncntol octivhics Gocrd obligution bon& Rccovcry Zonc &rild ratmcticl bondr Tox-supponcd ccrtifrcatcs of obligotion

(Jnunortir:d offcring prcmiun Spccial osscssrncnt ond othcr dcbt Flcd Sqrviccs bonds Prcmium on Flca Scwicg bonds Totnl govcrnmcntd nctivitis

&rincsr-typc octivitics Wotcr & tcwcr bondr Prcmium on Wotcr & scwcr bonds Wor$ ourhority obligations Prcmium on wltn ruthority obligstionr Airport bonds Prcrnium on Airpon bonds Drainugc Uilhy bondr Prcmium on Drninngc utility bondr

Totol busincss-typc nctiviths Totsl Othcr lhbilhicr: Govcmmcnl!l octivilict Compcnsotcd nbscnccs Sclf-insuroncc liobility Cnphnl lcnsc linbility Provision for lnndfill nnd poitclosurc cotc costg Nct OPEB lhbility Nct pcnsion lhbiliry

Totol govcrnurcntol octivitics &rsincss-lypc rcliviticr Compcntntcd nbsmccr Othcr occrucd cxpcnscs Nct OPEB lhbilily Nct pcnsion lhbility Totnl busincss.rypc nctivitics Totol

3 ,8,565,000

919,000

6,570,000 3.8r 2. r 23 62,286,733 455,000 7,567

(202.45t)

t32,6r5,423

(2 10.0 l8)

175,450.000 3,E76.703 58,331,367 7.58J.873 3,570,000 280,044

(2,685,000) (6?,000) (485,000)

55,880,000 8J2.000 6.085.000

2,865,000

69,000 505.000

3,609,672 (873.037) (45s,000)

6 1.4 l 3,696

904,643

(4,56r.037)

rt1 R40 ?6R

4 747 647

( I 1.750,000)

I 63.700,000

I I,770,000

(5.587.125)

3.653.382 52,744,242

5,837,260

(7,367\

lrrt,t i-1 (6t2.t?4-t

6,973,699 (

'.r.lo.ooo)

( 136,492)

(s 10,000)

1,830,000 143,532 8,495,000 no ?do

r,830,000 r43.J52 5 I 5,000

9,00J.000 8t.681 258, t84.668

(976.928)

( 19.587. t23)

t'tr 6t0 6r t

390,800,091

( l.186,946)

(24.152.162\

36S.460.983

20,09r,8 l2 24,439,455

22,388.602 I 6,658,736 5,332,586

1.966,628 6.069,782 I,454, I 9t

(4.94 I )

22,769,639

r.839.676

(2.220.7t3)

19.786,858

695,845

(3,823,!)67)

2,36t,867

4.t14,342

( 1,203.623)

4.506,090 56.6E3.927 67.899.880

(2,704,297) (3,908,227) (6.903.753) (20,854.580)

I 12.908

6,286,343

40,736,8fi 67,040,247 t58,98t.758

3,s82,046 4 1,334,66?

u6,730,421 206.027.0s8

9.40O_60r

(28 l. J l0)

t.t02.2m

237,483

(27,987)

2,578.684

843,020 1.628.040

(7:r l, I 70)

t7.182,76t 74.483.E48 176,t64,5t9 s J66.964.6r0 S(l.186.946) S ?4,48:i,848

( r.605.794)

7,7i3,076 10,746.88' 22, I60.935

)17 dA1

228. r87.993

0 728 084

r,270.892 7,621.226 2,606,67t

5.681.972

6.58t.96E

(365.t2?\ (22.460.374) (46,612.s16)

s I 593.648,976 s 34. t67.539 - absences, postemployment benefits and net pension liability For the governmental activities, cornpensated are generally liquidated by the Ceneral Fund. Totsl long-icm lhlllhl$

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 13 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The following tabulation reflects the composition of interfund balances at September 30, 2019.

Receivable General Fund

Fund $ 4,250,519

Pavable tr'unds Nonmajor Govt. Funds Capital Projects Proprietary Funds

$_4,250119 Nonmajor Govt. Funds

Nonmajor Govt. Funds Internal Service

74,630

$ 4.250.51o $ 62,192 5,211

$_74630

s 3,385,781

2,290,000 800 000

7 ?)1

General Fund

Internal Service Funds

$ 1,170,5 l9

Internal Service Nonmajor Govt. Funds

7463.0

174,974 12,545 699,262 2-s00 000

Ceneral Fund

CapitalProjects

$leeilsl Proprietary Funds

$ 1,530,428

Nonmajor Govt. Funds CapitalProjects

Llt30"42S

$ 3.385.781 30,428 $ r 500 000 $ r.530.428

All transactions between funds represent "due to/from other funds" caused by cash from one fund paying for expenditures or expenses ofanother. The following tabulations summarize interfund cash transfers made during the year:

Transfers Out Fund General Fund

Transfers In Fund Capital Projects Nonrnajor Govt. Furrds Internal Service

10,044,644

$_10.044*644 Capital Projects

Nonmajor Govt. Funds

$ 6,901,689

$ 0.044.644 $ 250,064

Gerreral Fund

4,647,792

Nonmajor Govt. Funds Capital Projects Internal Service Proprietary Funds

$ 6.901.689 $ 1,396,770 $

l,g46,2g l r 6s ?07 r

1,693,081

163,542 147 2lO

$--Jt 9AfS&9 Nonmajor Govt. Funds Capital Projects

$:--LJe6Jfl Proprietary Funds

$ 8,029,056

lnternal Service Capital Projects

706,165

$__ _

781,095 615 615

$ r.396.770 $ 1iaI,460 10s $____ru6J_65

"06^16l

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 13 - INTERFUND RECETVABLES' PAYABLES, AND TRANSFERS (CONTINUED) In general, transfers are used to (l) move revenues from the fund that collects the moneyto the fund that expends the money, (2) move receipts restricted or earmarked for debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in a fund to provide operating advances to other funds in accordance with budgetary authorizations. The due to/from balances resulted from the time lag between the dates that transactions are recorded in the accounting system and payments between funds are made.

NOTE 14. WATER SUPPLY CONTRACT The City's water is supplied by a series of underground wells, together with water that is purchased from

CRMWA.

CRMWA is a water district that was created in 1953 by the Texas legislature for the purpose of supplying water from the Canadian River to eleven cities that wished to par-ticipate in its activities. A board of nineteen individual board members, two of whom are selected by the City, governs the affairs of the District.

CRMWA was originally created for the purpose of operating a dam, which had been constructed on the Canadian River approximately 35 miles northeast of Amarillo, the related water reservoir known as Lake Meredith, and an aqueduct system for the purpose of transporting the surface water to the member cities. The construction was performed under the direction of the U.S. Bureau of Reclamation. Prior to construction, each of the member cities was allotted a portion of the water rights together with a proportionate share of the cost of the dam based on its contractual share of the water and a share of the aqueduct costs based on its water allocation and distance from the reservoir.

In 1996 CRMWA initiated a project to purchase and develop underground water rights in the northeastern portion of the Texas Panhandle to supplement CRMWA's available surface water. Water is transported from the well fields to be mixed tith the lake water before entering the aqueduct system. Water deliveries of the well water to the member cities began in December 2001 . Each city is assessed for operating costs, which are accounted for by the City as an operating expense. Each member may sell part or all of its rights under the contract to other members of the aqueduct system.

The last audited financial statements of CRMWA, as of September 30,2019, and for its fiscal year then ended, reflect the following: Assets

equivalents receivable Inventory

Cash and cash

Due from member cities and other

$ I 8,691,255 12,832,325 1,012,144

Debt Seruice Funds Restricted cash and cash equivalents Due from cities Land Property, plant and equipment, rret of accumulated depreciation

11,682,902 I 09, I 58,790

5,236,502 325,764,343

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 14 - WATER SUPPLY CONTRACT (CONTINUED) Liabilities and Deferred Revenues Current liabilities Noncunent liabilities

15,632,821

r29 0?5 s7r

Net Position

$_139^708a69

Operating Revenues

$ 14,385,832

User assessments for operations

Operating Expenses

(16,499,534)

Nonoperating Revenue (Expense) Net contributions from member cities Nonoperating revenues (expenses)

(4.032.885)

6,367,924

),774 519 Net Increase @ecrease) in Net

Position

L-nLm-

CRMWA's debt consists of approximately $ l4l .4 million related to the underground water project. The CRMWA's annualdebt services requirements, including interest, range from $6.5 million to $18.4 million with final repayment in 2031. Because certain member cities elected to fund their proportionate shares of these costs on a separate basis, and the City's contractual share of the available lake water is 37.058% and 40.621% of well water. The City's share of this debt is approximately $53 million. The City's contractual water rights and its proportionate shares of CRMWA's various debt obligations are accounted for as assets and liabilities of its Water and Sewer System. Because the cities that are members of the aqueduct system have the right to elect members of the governing Board, this arrangement has one of the attributes of a joint venture. However, the City has not reported this contract as a joint venture for the following reasons:

CRMWA was created by the State of Texas and is a subdivision thereof, as opposed to having been created by the mernbers of CRMWA. The City has no vested rights in the assets of CRMWA, nor responsibility for its liabilities other than its proportionate share of the contractual construction obligations. The affairs of CRMWA are accounted for on a "financial flow" measurement focus, which is not consistent with the measurement focus required for the water and sewer enterprise fund.

NOTE 15 - HARRJNGTON LIBRARY CONSORTIUM The Ciry is a member, as well as the fiscal agent, of a library consortium comprised of itself together with the Amarillo Junior College District and Amarillo Independent School District, The Consortium's purpose is to maintain a computer-based, online automated system to enhance the delivery of library infonnation services to the citizens of the Panhandle of Texas. It provides a bibliographic database, an online catalog system, intralibrary and interlibrary circulation systerns, and sirnilar services to citizens through their local libraries. The Consonium is governed by a six-rnernber council comprised of the chief

administrator of the library services for each member, the chairmen of two of its committees and a representative of the Haffington User Croup.

r00

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE rs - HARRTNGTON LTBRARY CONSORTIUM (CONTINUED) The original funding for the Consortium was a grant from a local charitable organization, the Harrington Foundation. Continuing operations are financed through user fees from the members and from subscribing libraries in the region. During the year ended September 30, 2019, the Consortium served over 100 libraries. The condensed financial statements of the Consortium at September 30, 2019, and for the year then ended are summarized in the table below. Balance Sheet

$ 598,507 (38.864)

Cash and other assets, net

Cunent liabilities Net position

$j9.643

Operating revenues

$ 391,940

Revenues

12.897

Nonoperatin g revenues (expense)

404,937

Total revenues Expenses Operating expenses

(422-713\

Change in net position

$ 07.876)

NOTE 16. CONTINGENCIES AI\D RISK MANAGEMEN1 Self-Insurance and Risk Management The City's insurance coverage consists of self-insured programs supplemented by certain commercial insurance policies maintained with various carriers. The City's insurance and self-insurance programs are administefed by a risk-rnanagement committee comprised of selected City management personnel. Each type of potentialclaim is discussed below. The City of Amarillo has a blanket all risk property insurance policy. While the sum of the scheduled values is the policy limit, the blanket feature allows this limit to be used for one occunence. Thus, if a property's scheduled value was not sufficient to cover a loss, the entire blanket would be used to cover the loss. The schedule of values and the coverage have been increasing over the last three years as property is added to the schedule, and replacement values have increased with increases in construction costs. Settlements ofinsurance have not exceeded coverage in the past three years.

Health and Accident: The City self-insures medical benefits for employees, retirees, and their covered dependents. The Ciry purchases stop-loss coverage for specific claims over $750,000. There is no limit on this coverage.

Property: Property insurance is maintained with commercial carriers, with a self-insured retention per occurrence of $250,000 and wind/hail is 5% total value per location per occurrence. Total blanket coverage for all buildings and contents including terrorism coverage is $500 million. The property insurance policy also includes $50 million in flood and earth-quake coverage and has a Terrorism endorsement. The Ciry has received $6,682,261from the insurance carrier.

r0t

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 16 - CONTTNGENCTES AND RISK MANAGEMENT (CONTINUED) Self-Insurance and Risk Management (Continued)

The City has an endorsement to its property insurance coverage for Fire and Extended Coverage (explosion and damage). Insurance is maintained with commercial camiers to the extent of $500,000,000 potential liability. The City has incurred no losses with respect to this risk.

Automobile Liability and Physical Damage: The City has elected to fully self-insure these risks.

Workerc' Compensation: City employees are entitled to statutory workers'compensation benefits. The City has a self-insurance retention of $1.5 million per occurrence with statutory limits. The Excess Workers' Compensation and Employers' Liability Indemnity Policy was purchased to cover a major accident. Historically, the City has had two claims that exceeded $l million self-insurance retention. General Liability: The City has elected to self-insure public official, professional, and general liability contingencies to the full extent of its statutory limits. The City canies medical professional insurance on the City Care and Public Health clinics for $2 million each, $5 million aggregate with a $25,000 deductible. Additionally, no insurance is carried for crime or burglary losses or employee dishonesty, except for the minimal bonds required by law.

Law Enforcement Liability: The City has purchased Law Enforcement Liability Insurance with a $100,000 deductible per occurence and annual aggregate coverage of $6 million. The City's largest claim has been a $5 million Law Enforcement Liability Claim which was settled in FY 2004.

Unemployment Benefits: The City fully self-insures unemployment benefits, reimbursing the Texas Workfbrce Commission for claims on the basis of quarterly reports. Two internal service funds are used to account for the transactions associated with the various risks. Employee Insurance Fund: All full+ime employees are provided with health insurance and $10,000 life insurance in the City's basic benefit package. Full+ime employees can add dependents for health and life coverage. Retirees are also allowed to retain their health insurance, including dependent coverage after retirement along with the basic $10,000 life insurance benefit. While the City pays for the majoriry of the health insurance benefit, the employee is also required to participate in the cost of the program.

Additional group life insurance is also available, but solely at the employee's expense. The City has a third-party carrier for the life insurance benefit. The City currently has specific stop loss coverage with a $750,000 annual deductible, but is essentially self-insured for employee and retiree health coverage.

The Ernployee Insurance Fund is used to account for the collection of employer and employee contributions, and for payments of claims and insurance premiums. The City covers rnost of the cost of employee only coverage arrd contributes to spouse and family coverage. Retirees contribute based on their service with the City and retiree rates are also subsidized by the City. Liabilities are presented at the estimated amounts of incurred losses outstanding, without discourrtir:g. Effective January l, 2016, Aetna Life lrrsurance Company began providing the plan administration for the rnedical and dental programs. This change has allowed the City to obtain more favorable discounts with medical providers. Employees have up to one year after services are rendered in which to present their claims for reimbursement. The estimated current liability at September30,20l9, related to incurred but not reported (IBNR) claims was $1,809,223. The IBNR estimate was computed by rnanagemerrt based on historical patterns and reference to previous actuarial estimates.

t02

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 16 - CONTTNGENCTES AND RISK MANAGEMENT (CONTINUED) The following tabulation reflects changes in the estimated aggregate liabilities for incurred losses of the Employee Insurance Fund:

2019

Estimated liabilities at beginning of year Claims during year and changes in estimates Payments during year Estimated liabilities at end of year

2018 (restated)

5,563,967 $ 4,505,1 l3

18,519,897 21,664,093

0) ?74 641\ r20 60s 2?S\

1.800.223

s 5 553 967

Risk Management Fund

The transactions related to risk areas other than employee health are accounted for in the Risk Management Fund, which is funded through assessments to City departments at rates developed by reference to the actuarial studies of the self-insurance fund together with estimates of the charges by private insurers for similar coverages. Risks considered included general and airport liability, boiler and machinery, police, auto, and excess liability; workers' compensation; unemployment; crime/fidelity/burglary; propefty insurance deductibles and various other risk groups.

Actuarial studies of the Fund are made at least biennially. The actuary's methodology includes review of the City's historical experience with respect to each type of risk, together with insurance industry patterns and any amendments to the state workers'compensation laws.

An actuarial study of the self-insurance liability was done as of September 30, 2019. Management's estimate of the liability by the City was within recommended funding ranges of that study. Management estimated the liability for incumed losses at September 30, 2019, to be $14,849,513. The City is self-insured for most exposures. The most significant risk assigned to third-party carriers is the property insurance coverage in excess of the $250,000 retention. The Clty also carries Excess Workers' Compensation and Employers' Liability Indemnity insurance with self-insurance retention of $1.5 million.

The following tabulation reflects changes in the estimated aggregate liabilities for incurred claims of the Risk Management Fund:

Estimated liability at beginning of year Claims during year and changes in estinrates Payments during year

Estimated liability at end of year

2019

2018

s 14,222,891

$ 13,536,259

4,461,599 (3.834.977)

(3.272.32s)

$ r4.849.s r3

$ t4.222.801

3,958,957

Litigation The City has been named as defendant in a number of other lawsuits or complaints arising out of the ordinary course of conducting its operations. While several of these claims ask for the full amount allowed by state statute, it has been the City's experience that such actions, if pursued, result in losses of amounts substantially less than the claimed arnounts. These complaints are similar to complaints resolved in prior years, which settlements comprise the City's historical experience that formed the basis for the actuarial determination of the estimated liability for presented and unpresented claims payable at September 30,2019.

r03

The Hillside Terace Estates Subdivision vitrified clay pipe ("VCP") sewer main experienced collapse/breakage in several areas due to apparent deterioration and defects in the VCP and/or its design and installation.

In July 2018 the City notified the Texas Commission on EnvironmentalQuality ("TCEQ") of its intent to conduct an environmental health and safety compliance audit on a portion of the wastewater collection system located in Hillside Tenace Estatei Subdivision, in accordance with the Texas Environmental, Health and Safety Audit Privilege Act, Texas Health and Safety Code (Chapter I l0l) ("Audit Act"). The scope of the audit was to evaluate compliance with all applicable environmental, health, and safety regulations as well as other associated environmental permits, licenses, ceftificates, submissions, or registrations. The scope of the Audit was to investigate a limited portion of the pipe. Other potential environmental liability may exist with other areas of the pipe, and the City is still investigating to determine the scope and remediation necessary for such areas. Environmental and engineering consultants retained by the City, in conducting the Audit discovered several violations which were reported to the TCEQ along with recommendations for corrective action. Specifically at one or more locations the consultants identified subsurface soil/wastewater contamination which had escaped from the collapsed/broken VCP. Pursuant to the consultants' recommendations, the City intends to undertake corrective action to remediate the contamination at one or more locations. Although the extent of remediation cannot be fully identified pending further investigation and obtaining bids from qualified contractors to accomplish the work, a preliminary estimate of remediation costs is in range of $9 Million. Final remediation costs are subject to vary depending upon a number of factors including conditions encountered by the contractor and further investigations.

As a result of the apparent defects in the manufacture of the VCP and the design and installation of the sewer main, the City filed a lawsuit against several parties to recover its monetary damages. Although it is too early to determine the outcome of the litigation, damages recovered may be available to be used to offset the City's costs includirrg those related to remediation. Upon completion of the Hollywood Road Wastewater Treatment in the 1960s, the City of Amarillo began to discharge treated effluent into an on-site playa lake. This practice was in full conformance with all environmental regulations, was conducted under a lawfully issued State of Texas environmental discharge

permit, and was subject to regular monitoring and reporting standards. Over time, a sub-surface plume of water developed under the playa lake and has since slowly migrated outward. This plume is comprised of water that contains a chloride level that is higher than the native groundwater in the area.

The City ceased pumping treated effluent into the playa and the chloride content of the plume, both originally and currently, is below tlre federal and state limits for potable water. In fact, the water in the plume is of equal or better quality than that in the City's potable water system, which is rated "Superior" by the Texas Commission on Envirorrmental Quality. As the plume rnigrated outward, it has seeped into some domestic water wells near the facility. Due to this, the City has historically conducted a voluntary rnonitoring program of the nearby dornestic wells and continues to do so at this time. If this monitoring detects chloride content in a well that is higher than the

native groundwater, the City then either re-works the existing well, replaces it with a new well constructed to current standards, or provides a reverse osmosis treatment system based on the homeowner's preference.

r04

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 16 - CONTTNGENCIES AND RISK MANAGEMENT (CONTINUED) Pollution Remediation Obligation (Continued) Management believes that GASB 49 does not apply in thig instance since there has been no actual pollution by any legal definition of the term. However, the City intends to continue the practice.of mo^nitoring the plime, providing replacement wells and treatment systems and pursuing options for remediation in the future. The City has recorded a liability of $2.7 million to continue the voluntary monitoring and well replacement program throughout this fiscal year. The estimated amount could change in the future as the City evaluates various alternatives. Federal and State Grant Programs The City participates in numerous federal and state grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment bt the grantor agencies; therefore, to the extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received may be required.

NOTE 17 - CONDUIT DEBT OBLIGATIONS From time to time, the City has issued industrial revenue bonds to provide financial assistance in privatesector entities for the acquisition and construction of commercial and health facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments ieceived on the underlying mortgage loans, Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. The City is not obligated in any manner for repayments of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying fi nancial statements. While the outstanding principal amount could not be determined, the original issues were as follows:

of issues I I

Number Issues

Amarillo Health Facilities Corporation Amarillo Housing Finance Corporation

Original issue amounts

S 3,155,000

10.000.000

$ 3.155.000 r

NOTE 18 - TAX ABATEMENTS AND ECONOMIC INCENTIVES

The City enters into econornic development agreements designed to promote development and redevelopment within the City, spur econotnic improvement, stimulate commercial activity, generate additional sales tax and hotel tax and enhance the property tax base and economic vitality of the City. These programs abate or rebate property taxes, sales tax, and hotel tax, and also include incentive paytnents and reductions in fees that are not tied to taxes. The Ciry's economic development agreements are authorized under Chapter 380 of the Texas Local Government Code and Chapter 3l I (Tax lncrement

Financing Act) and 312 (Property Redevelopment and Tax Abatement Act) and 351 (Municipal Hotel Occupancy Taxes) of the Texas Tax Code. Recipients may be eligible to receive economic assistance

based on the employment impact, economic impact or community impact of the project requesting assistance. Recipients receiving assistance generally commit to building or remodeling real property and related infrastructure, dernolishing and redeveloping outdated properlies, expanding operations, renewing facility leases, or bringing targeted businesses to the City. Agreements generally contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives.

t05

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE t8 - TAX ABATEMENTS AND ECONOMIC INCENTMS (CONTINUED) The City has three categories of economic development agreements:

o Tax Abaternents - Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to

designate tax reinvestment zones and negotiate tax abatement agreements with applicants. lhe.se abatement agreements authorize the appraisal districts to reduce the assessed value of the taxpayer's property by a percentage specified in the agreement, and the taxpayer will pay taxeson the lower assessed value during the term of the agreement. Property taxes abated under this program were $556,823 in fiscal year 2019.

o General Economic Development - The City enters into various agreements under Chapter 380 of the Texas Local Covernment Code to stimulate economic development. Agreements may rebate a flat amount or percentage of property, sales, or hotel tax received by the City, may result in fee reductions such as utility charges or building inspection fees, or make lump sum payments to offset moving expenses, tenant finish-outs, demolition costs, infrastructure reimbursements, redevelopment costs or other expenses. For fiscal year2019, the City rebated S750,484 in hotel taxes.

Tax Increment Financing - The City has adopted two Tax Increment Financing zones (TIFs) under Chapter 3l I of the Texas Tax Code. The City enters into economic development and infrastructure reimbursement agreements which earmark TIF revenues for payment to developers and represent obligations over the life of the TIF or until all terms of the agreements have been met. These obligations are more fully described in Note 22. Additionally, the City enters into general economic development agreements under Chapter 380 of the Texas Local Government Code which are funded with TIF resources. For fiscal year 2019, the City made $311,804 in payments for TIF obligations, $50,000 in incentive payments and $480,540 in property tax rebates from general TIF resources.

NOTE 19. AMARILLO HOSPITAL DISTRICT Significant Accounting Policies Financial Reporting Entity The financial reporting entity represents a political subdivision of the State of Texas and a component unit of the City. Its fiscal year coincides with that of the City.

On May 7,1996, the Amarillo Hospital District (District) sold its hospital facilities to a private hospital management company for approxirnately $121,000,000 and discontinued assessing ad valorem taxes for hospital purposes. With the exception of continuirrg the operatiorrs of a pediatric-specialty, nonprofit entity until 2000, the functions of thc District since the sale of the hospital facilities have consisted prirnarily of investing the sales proceeds for future hospital purposes and funding indigent care costs. The employee perrsion plan is held for payment of future benefits as former employees meet applicable retirement requ irements.

Measurement Focus, Basis of Accounting, antl Financial Statement Presentation

The District follows the provision of Governmental Accounting Standards Board Statement No. 34. While it is no longer errgaged in hospital operations, it continues to use the accounting principles applicable to enterprise funds.

The District follows GASB Statement No. 31, Accounling and Financial Reporting for Certain

Investntent Pool.s, which provides that investments generally are reported at fairvalue, and changes in fair value are recognized as revenue. r06

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 19 - AMARTLLO HOSPITAL DISTRICT (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Additionally, the District follows GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an Amendment of GASB Statement No. 27. The District has self-insured claims arising from professional malpractice.

Agreements with Respect to Hospital Sale

On May 7,1996, the District sold its physical plant, patient receivables, and other operating assets to a for-profit, hospital-management company which assumed all of its hospital operations, as well as responsibility for healthcare services to indigent and needy persons within the District. The total sales proceeds were approximately $l2l million. In return, the District will make indigent care payments to the buyer, payable in quarterly installments, for the next 25 years. The payments were $8,000,000 peryear through May 1999. Thereafter, through May 2006, payments varied between $6,000,000 to $8,000,000 per year, adjusted for inflation. Subsequent to May 2005, the payments per year will generally be equal to the lesser of the payments per year made in 2005 or 2006. For the years ended September 30, 2019, and 2018, the District recognized approximately $5,453,000 and $5,447,000, respectively, in indigent care expenses relating to the agreement. The District currently collaborates with Northwest Texas Healthcare System to ensure both parties best allocate their resources for the provision of care to the low income and needy residents in their community. As part of this collaboration, Northwest has proposed that the District fund payments to Northwest under the Medicaid upper payment limit program ("Medicaid UPL"). On November 9, 2006, the District temporarily suspended the "lndigerrt Care Agreement," dated May 7, 1996, for the period From November 9, 2006 through November 8, 2008, and replaced it with an almost identical agreement called the Health Care Services Agreement (HCA). The District remitted approximately $12,712,000 on November 20, 2006 to fund the Medicaid UPL program. The original agreement has been extended thirty-six times and as of September 30, 2019, is prepaid through May 8, 2020. The District has provided $76.2 million in funding to the Medicaid program versus $93.7 million in indigent care payments that would have been due under the contract. On May 3,2016, the District received written notice from UHS dated April 28,2016, pursuant to Section 7(b) of the Indigent Care Agreement (the Agreement) between UHS and the District, UHS elected to exercise its Extension Option (as defined in the Agreement) extending the term of the Agreement until May 7,2036

Waiver under Section lll5 of the Social Security Act The District agreed to participate in a waiver under Section ll15 of the Social Security Act that is designed to build on existing Texas health care refonns and to redesign health care delivery in the state admirristered through the Amarillo Department of Public Health. The waiver consists of two components: the Uncornpensated Care (UC) program and the Delivery System Reform Incentive Payments (DSRIP) program, which is a five-year program and is curently in its seventh year. The only requirement in year one was to submit a plan, while subsequent years required process and outcome metrics. The District has made intergovernmentaltransfers on behalf of this program of $7.6 million. On November 15,2018, the District approved a transfer of $ 123,000 for year seven. Deposits and Investments

The District's funds are required to be invested in accordarrce with the Public Furrds Investment Act. Bank deposits are collateralized by FDIC irrsurarrce or by pledged collateral. Governmental accounting t07

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE t9 - AMARTLLO HOSPITAL DISTRTCT (CONTINUED) Deposits and Investments (Continued) standards require the categorization of investments to give an indication of the level of risk assumed. Based on the applicable criteria, a summary of the District's investment securities at September 30,2019, are as follows: Untrstrictcd

FnlrVeluc Rcslrictcd

AsJcE

Assels

Wclghtcd Avcrrgc Mnturitv (Yes13)

Totrl

(cxcludinS sccurities lcnding)

lnvcstment Sccuritics

$ 4r,6r6J09

3 41.616309

0,41

U,S, Govcmment and govcmmcnt sporsorcd agcncics

98,912,7r0

98Bl2Jl0

4.03

Municipal bonds

14.730.418

0,63

tsszsel37

tss25el37

5.07

26.477370

26.477.170

I 8t,736,807

l 8 l,736,807

U.S. Treasury obligatiors

Tolal invcstrncnt securities

Noload U.S. Trcasury-only rnutual funds Total inveslments

Deduct: Cash cquivalcnts

Net investmenls for llnrnchl trponlng

Q6.4?7310\

06.477.370\

$ 155159.437

5.07

s tss.259.43?

5.07

Tobacco Settlement

During 1998 the State of Texas settled litigation against certain tobacco manufacturers, which entitles political subdivisions with legal responsibility for providing indigent healthcare serrrices to a portion of the settlement proceeds. As a result of the settlement, in 1998 the District received a distribution of approximately $2.9 million based on a per capita calculation (1990 federal census). Subsequent distributions have been made based on each subdivision's total unreimbursed indigent healthcare expenditures for the calendar year immediately preceding the year of distribution. As the various calculations are not determinable by the District, these revenues are not accrued. In 2019 and 2018, the District received approximately $356,000 and $357,000, respectively, in tobacco settlement funds. Employee Retirement Benefits Substantially all full+ime employees of the District were eligible for participation in the Retirement Plan for Employees of Northwest Texas Healthcare System (AHD Plan), a single-employer, noncontributory plan. Upon the sale of the Hospital in 1996, the AHD Plan was "frozen." The District recorded a net pension liability of 51,742,727. Significant actuarial assumptions used in the valuations include a rate of return on investments of 7 S%. GASB 68 also requires the District to disclose the sensitivity of the net pension liability to changes in the discount rate by disclosing what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.5%), $3,858,716, or one percentage point higher (8.5%), $(83,552). Cornpensation increases do not apply due to the plan being frozen. For the year ended September 30,2019, the District made a contribution of $ I ,500,000 to the AHD Plan. Subsequent to year end, the District made a contribution of 5500,000 to the AHD Plan.

Participants vested 100% upon completion of five years of service and vested participants are entitled to benefits upon retirement or upon termination of employment after 20 years of service. Upon sale of the Hospital, as described above, substantially all employees of the District were offered employment with the buyer or, with respect to certain public health functions, the Health Depanrnent of the Ciry, both of which alternatives are considered to be a continuation of employment for purposes of defining retirement

t08

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 19 - AMARILLO HOSPITAL DISTRICT (CONTINUED) Employee Retirement Benefits (Continued)

or termination. At October 1,2017, the plan had l16 participants classified as "active" under this provision, although the plan was "frozen" as it relates to District participants, as well as 368 retirees and 2l I terminated employees entitled to, but not receiving benefits. It is anticipated that the plan's assets will be held intact to fund retirement benefits as determined under this plan when the vested participants separate from service with the successor employers. The District is respbnsible for the pension plan and intends to make annual contributions at least equal to the actuarially determined contribution requirements to the plan. Commitments and Contingencies Although the District sold the Hospital on May 7, 1996, it retained the responsibility for certain claims as of the date of sale. The District self-insures substantially all of the important risks. In accordance with the limited liability provisions of the Texas Tort Claims Act, the District may be liable for settlement of malpractice claims up to a limit of $100,000 per person. Claims have been made alleging malpractice arising out of the ordinary course of business, and such litigation is in various stages of progress, The District self-insures for claims arising from professional malpractice.

It is the opinion of management that estimated self-insurance costs, including known claims and reserves for incumed but not reported claims, are adequate to provide for potential claims. Norlhwest Texas Healthcare System (Northwest) provides the tobacco prevention services and the pediatric sub-specialty care services in the community. Pediatric sub-specialty care is provided through Texas Tech. Northwest provides tobacco prevention and control services through a contract with the Hamington Cancer and Health Foundation. The District has approved a resolution to make monthly payments on behalf of NWTH to the Medicaid program of $123,000 through September 30, 2019. Financial Statements The District's financial offices were closed upon the sale of the hospital, and its Board selected the City of Amarillo as its fiscal agent. Accordingly, the separately issued financial statements for this entity and for its pension trust may be obtained by contacting the Director of Finance, City of Amarillo, P.O. Box 1971, Amarillo, Texas 79105.

NOTE 20. AMARILLO ECONOMIC DEVELOPMENT CORPORATION Significant Accounting Policies Operations

The Amarillo Economic Development Corporation (AEDC) was created by the City in 1990 under provisions of the Development Corporation Act of the State of Texas. Its operations are financed by the_ iroceeds of a ll}-percent economic-developmerrt, sales tax. It is governed by a five-member Board of Directors appointed by the City Council. The City serves as fiscal agent for AEDC, providing such services as accounting, investrnent, and management information services.

The rnission of AEDC is to attract businesses to Amarillo which offer highly skilled, highly paid positions, to expand and retain existing local businesses in Amarillo, and to create a business environment bonducive to entrepretreurship. The AEDC targets companies whose primary function is to produce

r09

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 20 - AMARILLO ECONOMIC DEVELOPMENT CORPORATION (CONTINUED) Signifi cant Accounting Policies (Continued) Op erat ions (Cont inued)

goods or services that are then sold outside of the immediate trade area, thereby introducing new monies into the local economy. This strategy is met by implementing aggressivetusiness recruitment programs, local business retention and expansion programs, and promoting AEDC and Amarillo, Texas, brands

worldwide. Projects involve construction of facilities which involve direct financing leases. Other projects have tak6n the form of grants or interest waivers on loans to industrial enterprises based on meeting targeted, job-creation levels, as well as grants and contracts supporting research and promotional activities.

Measurement Focus, Basis of Accounting, and Financial Statement Preparation The AEDC's fiscal year coincides with that of the City. AEDC follows the provisions of Governmental Accounting Standards Board Statement No. 34. Accordingly, it presents government-wide financial statements using accounting principles similar to those used by commercial enterprises. Investments are valued at fair market value. Grants are generally recorded as expenses and liabilities at the time of the awards. Crants subject to significant performance criteria are recorded when the funds are disbursed or the criteria satisfied, whichever is earlier.

The maximum potentialjob creation credits available against loan interest are recognized as development expense in the period in which the loans are made. Development notes receivable are repofted at their stated principal amounts, reduced by the estimated effect of the potential interest waivers as well as by an allowance for uncollectible arnounts. Direct financing leases are reported at the lower of the Corporation's investment in the property or the present value of the future minimum lease payments to be received plus the estimated residual value of the leased property. Income from finance leases is credited to income based on a constant periodic rate of return on the net investment in the lease allowance for uncollectible amounts. Direct financing leases are reported at the lower of the Corporation's investment in the property or the present value of the future minimum lease payments to be received plus tlre estimated residual value of the leased property. Income from finance leases is credited to income based on a constant periodic rate of return on the net investment in the lease. Property and equipment are recorded at cost, and donated property is recorded at fair value at date of receipt. Property and equipment consists primarily of hangars and related improvements located at the City'i airport, as to which the estimatcd useful lives are 30 years. Depreciation is provided on the straight-line method. Assets restricted by interest and sinking fund indenture agreements are segregated, and are presented as restricted assets.

Deposits and Investments The AEDC's cash and investrnents are managed by the City, which accounts for its liquid assets and its receipts and disbursements as one of its agency funds. The AEDC's uninvested cash is held in the City's depository in the City's name as agent for AEDC. All such cash is insured by the Federal Deposit Insurance Corporatiorr and other insurers. The AEDC's investments are administered by Ciry management under terms of an investment policy and strategy that has been updated to conform to the latest amendments to the Texas Public Funds lnvestment Act.

il0

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 20 - AMARTLLO ECONOMIC DEVELOPMENT CORPORATION (CONTINUED) Deposits and Investments (Continued)

A summary of the AEDC'S irrvestment securities at September 30, 2019, is as follows: F'air

Investments CDARs Money market mutual funds

Value

Weighted Average Maturity (Years)

$ 26,530,000

.28

48,948,542

.28

22.418.542

Total investments at fair value Deduct: Classified as cash equivalents for financial reporting Net investments

(22.4t8-542) $_26.530-000

-J8

Economic Development Loans

As one type of economic development project, the AEDC has made a number of loans to industrial enterprisdd under arrangements thit waive ui to'tOOX of the stated interest on such loans ifjob creation targets are met. These maximum allowances are recognized as development expenses in the period in which the loans are made. In addition to interest waivers, a provision has been made for uncollectible loans, including amounts related to the individual credits based on managements'analysis, as well as a provision for unidentified risks.

An analysis of loans and the related valuations allowances at Septernber 30,2019, are as follows: Principal balances Allowance for uncollectible accounts

$ 45,471,795

Loans, net of allowances

s_45,$J 1,795

Interest accrued and receivable on loans is $1,984,989 at September 30,2019.

Direct Financing Leases In August 1998, Bell Helicopter, the world's leading producerof helicopters, allnoullced its selection of Amarillo as the site for its new tiltrotor helicopter plant, based partly on incentives offered by AEDC. The incentive package includes manufacturing facilities financed by AEDC sales-tax-backed bonds up to a totalamount of $34 million, as well as industrial revenue bonds up to a totalamount of $8 million, plus cash of up to $5 million for site acquisition and employee training and relocation, Bell's obligations under a lease agreement are sufficient to service the construction debt, but if job creation goals are met, the resulting incentive credits could fully discharge Bell's payment obligations. As of September 30, 2019, the direct financing leases were converted to notes receivable.

In the 1999 fiscal year, approximately 65 acres of land adjacent to the City's airport were acquired for Phase I of this project, and construction of a hangar and an aircraft assembly building was begun. The first

building was completed in May 1999, and the second building was completed in March 2000. The rental terrn foi this phase of the project is 20 years, coinciding with the tenn of sales tax revenue bonds in face amount of $23,430,000 sold in order to fund the construction. The rental amount is to be the levelized debt service on the bonds. The resulting annual rentals, in the amount of $2,163,5030 were waived during the first year and, as noted above, subsequent annual rentals could be fully waived if job creatiort goals are met. All job creation goals were met during the fiscal year ended September 30, 2019 and Bell Hclicopter invoked their purchase option.

ill

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 20 - AMARILLO ECONOMTC DEVELOPMENT CORPOT{ATION (CONTINUED) Direct Financing Leases (Continued)

In fiscal year 2005, an expansion to the aircraft assembly building was completed for a total cost of $10,570,000. The rental term for this project is 20 years, beginning on the date the lease commenced. The resulting annual rentals, in the amount of $528,500 could be fully waived if job creation goals are met. This lease was converted to a note receivable on January 1,2019. The expansion to the Hanger was completed for a total cost of $14,234,368. The lease for this project commenced on January 1,2006. The rental for this project is 20 years, beginning on the date the lease commenced. The resulting annual rentals, in the amount of $711,718, could be fully waived if job creation goals are met. This lease was convefted to a note receivable on January 1,2019. Phase IV of the project was completed for a total cost of $15,028,921. The lease for this project commenced on January l, 2006. The rental term for this project is 20 years, beginning on the date the lease commenced. The resulting annual rentals, in the amount of $75 1,446, could be fully waived if job creator goals are met. This lease was converted to a note receivable on January 1,2019.

In fiscal year 2009, Phase VI was completed for a total cost of 522,242,454. The lease for this project commences on January 1,2010. The rental term for this project is 20 years, beginning on the date the lease commences. The resulting annual rentals in the amount of $1,884,509 could be waived if job creation goals are met. This lease was converted to a note receivable on January 1,2019.

In fiscal year 2011, a project was completed for a total cost of $31,749,325. The lease for this project commences on June 14,201l. The rental term for this project is 20 years, beginning on the date the lease commenced. The resulting annual rentals in the amount of $2,811,214 could be fully waived if job creation goals are met. This lease was converted to a note receivable on January 1,2019.

Additionally, in fiscal year 2006, AEDC acquired another 98.6 acres of adjacent land for future expansion, at a total cost of $782,540. In accordance with the terms of the incentive package, this land together with any improvements thereon will be subject to a purchase option at a nominal amount after redemption of any bonds issued for related construction. In fiscal year 2009, a project was completed for a tenant in which, subject to job creation targets, the tenant has the option to acquire the property in2029, for $1. The rental term for this project is 20 years beginning on the date the lease comrnenced. The resulting annual rentals in the amount of $630,000 could be fully waived if job creation goals are met. At September 30, 2019, AEDC's net investment in this lease, less discount for jobs credits, was $4,820,233.

In 1997, AEDC completed acquisition and renovation of a property for an industrial tenant in which,

subject to job creation targets, the tenant has the option to acquire the property in 2006, and every third year thereafter, for an amount equal to AEDC's initial investment reduced by subsequent rentals. During 2011, AEDC arnended the agreement with this tenant and advanced additional funds to the company for improvements. The additional amount advanced was approximately $166,000. The terms of the loan were changed to extend payments on the loan through August 2020 and allow for three additional threeyear successive terms to acquire the property as previously described. In 2019, the tenant exercised the option to acquire the property; thus, at September 30,2019, AEDC's net investment in this lease, less discount for job credits, was $-0-.

lt2

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Endetl September 30, 2019 NOTE 20 - AMARTLLO ECONOMTC DEVELOPMENT CORPORATION (CONTINUED) Direct Financing Leases (Continued)

In fiscal year 2015, a project was completed for a tenant in which a building and surrounding

improvements in the Centerport complex were constructed for a total cost of $9,607,823 with related land valued at $390,240. As part of a location incentive agreement between the tenant and AEDC, the tenant was given a $4,500,000 loan incentive credit, making the total lease amount $5,498,063. Also as part this transaction, the tenant transfened ownership of a building and land property in downtown Amarillo to the City of Amarillo, and the City of Amarillo subsequently obtained an appraisal that valued the downtown property at $5,020,000. The lease for this project commenced on March 31,2015. The term for this project is four years, beginning on the date the lease commenced. The resulting annual rentals in the hmount of $1,374,516 could bcfull waived ifjob creation goals are met and if the tenant does not cease operations in the facility during the four-year contract term. In 2019, the tenant satisfied the terms of the agreement; thus, at September 30, 2019, AEDC's net investment in this lease, less discount for job credits, was $-0-.

In fiscal year 2015, approximately 48 acres of land in AEDC's Centerport complex was deeded to a wind tower manufacturer. The lease for this project commences on November 15,2021. The rental term for this project is seven years, beginning on the date that the lease commences. The resulting annual rental of $274,286 could be fully or partially waived if job creation goals are met. At September 30, 2019, AEDC's net investment in this lease, less discount forjob credits, is $1,209,790. In 2017, AEDC released constructed assets to the wind tower manufacturer. The lease for this portion of the project also commences on November 15,2021with a rental term of seven years. The annual rent of $471,429 could be fully or partially waived if job creation goals are met. At September 30, 2019, AEDC's net investment in this portion of the lease, less discount for job credits, is $2,303,387. Year endins Sentember 30 2020

2021

2022 2023

2024 Future years

630,000 630,000 1,375,715 1,375,715 1,375,715 6. r 32.855

$ r r.s20.000 Operating Lease Activities The AEDC has other operating leases for office and warelrouse space to unrelated third parties. During 2019, they received $529,000 on those leases.

il3

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 20 - AMARILLO ECONOMTC DEVELOPMENT CORPORATION (CONTINUED) Capital Assets As part of its economic development program, the AEDC has constructed a number of improvements on property leased from the City's airport for the purpose of subleasing to qualifring enterprises.

Additionally, it holds equipment needed for administrative purposes. At September 30,2019, the AEDC's property, plant, and equipment were as follows: Buildings and Vehicles and Construction in Accumulated depreciation

improvements equipment progress

$ 12,081,247

Total capital assets

$ 8.866^476

27,889

134,661

(3.37't.321\

Employee Retirement Benelits The AEDC maintains a money purchase pension plan for its employees, which is designed to meet the requirements of Internal Revenue Code Section 401(a), and has adopted a current contribution rate of l0o/o of salaries. As the AEDC's policy is to fund credits as they accrue, there is no unfunded pension obligation. A local banking institution serves as trustee. The cost of this plan for the year ended September 30,2019, was 569,244.

Long-Term Debt

At the time of refunding there was $23,345,000 of outstanding Taxable Sales Tax Revenue Refunding and Improvement Bonds, Series 2007. The refunding was undeftaken to reduce total debt service payrnents over the next ten years by approximately $4,141,000 and resulted in an economic benefit of approximately $3,557,000. For financial reporting purposes, the debt has been considered defeased and, therefore, removed as a liability from AEDC's financial statements. In June 2019, AEDC issued its Taxable Sales Tax Revenue Refunding Bonds, Series 2019, dated June 18, 2019, in the face amount of $27,580,000. The 2019 issue refunded the 2009 bond issue, The 2019 Series has annual principal amounts ranging from $2,180,000 to $2,865,000. Annual debt requirements range from approximately $2,957,000 to $2,961,000 through August I 5, 2030. Interest rates on the outstanding bonds range from 2.40% to 3.24%. Scheduled principal payments are as follows: 2020,52,180,000; 2021,$2,235,000; 2022,$2,290,000; 2023,$2,350,000; 2024,$2,410,000 and thereafter $15,965,000.

At the time of the refunding there was $28,130,000 of outstanding Taxable Sales Tax Revenue Bonds, Series 2009. The refunding was undertaken to reduce total debt scrvice payments over the next l2 years by approximately $6,004,000 and resulted in an economic benefit of approximately $5,114,000. For financial reporting purposes, the debt has been considered defeased and, therefore, removed as a liability from AEDC's financial statements. AEDC's bonds are rated "AA-" by Standard & Poor's Ratings Services.

ll4

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 20. AMARILLO ECONOMIC DEVELOPMENT CORPORATION (CONTINUED) Commitments

At September 30, 2019, AEDC had outstanding commitments to make grants or extend credit to qualiSing enterprises, in the amount of approximately $92,000,000.

AEDC is obligated to the City for leases of warehouse property being subleased to various development and manufacturin g enterprises.

AEDC has committed approximately $69 million to a university. Subsequent to September 30,2019 AEDC has been notified that the university has met all required provisions for $30 million over the next five years. An additional $6 million has been committed to Bell Helicopter for a delivery center. Additionally, they have committed to a localpharmaceuticalgroup $13 million to assist w!t! job retention and creation. AEDC has paid approximately $2.9 million, leaving a commitment of $10.1 million. Another $3.0 million has been committed to the expansion of the Thrive scholarship program. The current commitment is approximately $2.9 million. AEDC has committed approximately $1.3 million and another $260,000 to business to assist with job creation and retention. In addition, AEDC has committed $550,000 to the WTAMU Enterprise Center Accelerator Program. Other various commitments outstanding are approximately $2 million. Net OPEB Liability For the fiscal year ended September 30,2019, AEDC's net OPEB liability is $65,516. Considering the annual expense less pay-as-you-go cost for retirees and trust contributions the result was an increase in the net OPEB liability of $5,233 for the year ended September 30, 2019.

Financial Statements Separately issued financial statements for this entity may be obtained by contacting the AEDC at its offices, which are located at 801 South Fillmore, Suite 205, Amarillo, Texas 79101.

NOTE 21 - AMARILLO.POTTER EVENTS VENUE DISTRICT Signifi cant Accounting Policies The Venue District is a governmental entity created by enabling resolutions of the City and Potter County (the County) in September 1997. In January 1998, the voters of the City and the County approved the proposed project, which consists of constructing a livestock arena at the county fair grounds to be used for livestock shows, spofting events, agricultural expositions and other civic or charitable events, together with expansion of the City's Civic Center to provide additional exhibit hall space and meeting rooms.

The construction of the livestock arena has been financed by citizen contributions, together with bonds serviced by a2% hotel occupancy tax and a 5%o tax on short-term auto rentals, both of which taxes were approved by the voters on January 17, 1998. The City has agreed to pay lease rentals, if necessary, to cover any shortfall in the tax revenues available for the debt service. The Venue District is governed by a seven-member Board of Directors, four of whom are appointed by the Mayor of the City and three of whom are appointed by the County Judge of the County. The budget is subject to approval by both the City Council and the County Cornmissioner's Court. The City serves as fiscal-agerrt for the Venue District, performing various adrninistrative services under a contract providing that it will be reimbursed for its cost of providing the services.

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CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019

NOrE 2l - AMARTLLO-POTTER EVENTS VENUE DISTRICT (CONTINUED) Significant Accounting Policies (Continued) The Venue District is considered to be a component unit of the City's financial reporting entity because of its oversight responsibility with respect to management, as well as its financial accountability with respect to debt service.

Measurement Focus, Basis of Accounting, and Financial Statement Preparation The Venue District's fiscal year coincides with that of the City. It follows the provisions of Governmental Accounting Standards Board Statement No. 34. Accordingly, it presents government-wide financial statements using accounting principles similar to those used by commercial enterprises.

Taxes collected by hotels and rental agencies are due to the Venue District by the tenth of the month following collection. Such taxes are recognized as revenues when collected by the remitters. Depreciation is provided for on the straight-line method over the estimated useful lives of the facilities. The primary depreciable asset of the Venue District at September 30,2019, was a livestock arena, and its estimated useful life is 40 years. Physical Facilities

A livestock arena and special events center (the Center) has been constructed on fairground properry owned by the County and has a total capacity of 10,000 persons. The total construction cost of the

facility was approximately $12.8 million. When completed as of June l, 2000, the Center was leased on a rent-free basis to the local nonprofit fair association. In January 2002 construction began on a 65,000 square foot addition to the City's Civic Center, together

with additional paved parking. The total construction cost of this facility was $9.6 million. Cost in excess of the funds provided by the Verrue District's bonds and available revenues are to be paid by the City with proceeds of its hotel-motel taxes earmarked for this expansion. Financing In December 1998, the Venue District issued sales tax and lease revenue bonds in the face amount of $10 million, secured by a pledge of the Venue District's tax revenues, as well as by a lease agreement from the City secured by its hotel occupancy taxes, to be applicable if there is a shortfall in the Venue District's revenues available for debt service. In November 2000, the Venue District issued additional bonds in the face amount of $6,750,000. On November 10, 2005, the Venue District issued $6,425,000 in SpecialTax and Lease Revenue Refunding Bonds (Series 2005) for a refunding of $6,340,000 of outstanding Special Tax and Lease Revenue Bonds, Series 2000. On September 20,2016, the Venue District issued $5,085,000 in Special Tax and Lease Revenue Refunding Bonds for a refunding of $5,105,000 of the Series 2005 outstanding bonds. The refunding was undertaken to reduce debt service payrnents by approximately $327,000 over the next 30 years. For financial reporting purposes, the debt has been considered defeased and, therefore, removed as a liability from the Venue District's financial statements. The principal amount outstanding at Septernber 30,2019, on the 2016 bond issue was $4,705,000 and the unamortized bond premium was $239,658.

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CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 2l - AMARTLLO-POTTER EVENTS VENUE DISTRICT (CONTINUED) Financing (Continued)

In August 2009, the Venue District issued $8,130,000 in Special Tax and Lease Revenue Refunding Bonds-for a refunding of outstanding Special Tax and Lease Revenue Bonds, Series 1998. The refunding was undeftaken to reduce total debt service payments over the next 20 years by approximately $652,000 and resulted in an economic gain of approiimately $435,000. The debt has been considered defeased and, therefore, removed as a liability from the Venue District's financial statements for reporting purposes. The principal amount outstanding at September 30,2019, on the bond issues was $4,945,000.

Commitments The District added an addendum to its agreement with Amarillo Tri-State Exposition, which provides that a monthly sum will be paid in consideration of management and operation of the Events Center. The monthly sum paid is subject to annual appropriation. On August 28, 2018, the District'sBoard approved an annual appropriation in the amount of $328,248 for the year ending September 30, 20 19, to Amarillo Tri-State Exposition. Additionally, the District's Board approved $ I , 1 I 9,960 for the Amarillo Tri-State participation and $355,609 for event development in its normal budgetary process. The District has made a similar commitment to the City. In the lease addendum with the City, the District agreed to a monthly sum in consideration of management and operation of the District's addition to the Clvic Center. The payment to the City is also subject to annual apploprjalion. On August 28,2018, the

District's Board approved an appropriation in the amount of $398,004 through the year ending September 30, 2019, to the City in its normal budgetary process. Additionally, the District's Board approved $200,000 for Civic Center improvements in its normal budgetary process, Financial Statements

Separately issued financial statements for this entity may be obtained by contacting the Director of Finance, City of Amarillo, P.O. Box 1971, Amarillo, Texas 79105.

NOTE 22 - AMARILLO HOUSING FINANCE CORPORATION

In 1996 AHFC issued bonds in the amount of $ 15,700,000 under authority of the Texas Housirrg Finance Corporation Act, and entered into a trusteed investment arrangement in which the proceeds are to be invested in GNMA and FHLMC certificates secured by the mortgage loans originated under a lending program prescribed by the Act. On February l, 1999 the AHFC refunded $5,500,000 and called $3,260,000 of this issue. The remaining bonds are payable solely from the Trust Estate, and are not general obligations of either the AHFC or the City. A sirnilar issuance was made in a prior year in the amount of $8,700,000. On February 28, 2000 the AHFC issued $15,000,000 under authority of the Texas' Housing Finance Corporation Act, and entered into a trusteed investment arran-gemen! in which proceeds are invested in GNMA and FNMA certificates. In 2003 the AHFC issued $10,000,000 under authority of the Texas' Housing Finance Corporation Act, and entered into a trusteed investment arrangement in which proceeds are invested in GNMA and FNMA certificates.

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 22 - AMARTLLO HOUSTNG FINANCE CORPORATION (CONTINUED) In December 2007, the Housing Finance Corporation converted its $5.6 million mortgage bond allocation to $4 million in Mortgage Creilit Certificates (MCC). MCCs allow first-titne homebuyers to take a tax credit of up to $2,000 a year on their income tax return for a portior of the mortgage interest paid during the year and the taxpayer is still allowed to deduct the balance of the mortgage interest as an itemized deduction. Also, MCCs work in any interest-rate environment, The program ended in December 2009. In total, the City utilized $2,730,817 of the $4 million in MCCs available. Financial Statements This organization does not publish separate financial statements, but its non-trusteed cash balance, used for miscellaneous operating expenses. Further information regard ing this entity may be obtained from the Director of Finance, City of Amarillo.

NOTE 23 - TAX INCREMENT REINVESTMENT ZONE #I The Tax Increment Reinvestment Zone Number One (TIRZ #l) was created in FY 2007 pursuant to the The purpose of the zone is to promote the Texas Tax Increment Financing Act, Tax Code, Chapter 3l development of or redevelopment of certain contiguous geographic areas in the City.

TIRZ #l enters into economic development agreements designed to promote development and

redevelopment within TIRZ #1, spur economic improvement, stimulate commercial activity, generate additional sales tax and hotel tax and enhance the property tax base and economic vitality of TIRZ #1. These programs abate or rebate property taxes, sales tax, and hotel tax, and also include incentive payments and reductions in fees that are not tied to taxes. TIRZ #l's economic development agreements are authorized under Chapter 380 of the Texas Local Government Code. Recipients may be eligible to receive economic assistance based on the employment impact, economic impact or community impact of the project requesting assistance. Recipients receiving assistarrce generally commit to building or remodeling real property and related infrastructure, demolishing and redeveloping outdated propefties, expanding operations, renewing facility leases, or bringing targeted businesses to TIR-Z #1. Agreements generally-contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives.

TIRZ #l has one category of economic development agreements:

o Tax Increment Financing - TIRZ #l has adopted two Tax Increment Financing zones (TIFs) under Chapter 3ll of the Texas Tax Code. TIRZ #l enters into economic development and

infrastructure reirnbursetnent agreements which earmark TIF revenues for payment to developers and represent obligations over the life of the TIF or until all terms of the agreernerrts have been rnet. TIRZ #l enters into general economic development agreements under Chapter 380 of the Texas Local Goverrrmerrt Code which are funded with TIF resources. For 2019, TIRZ #l made $480,540 in property tax rebates from general TIF resources.

At Septernber 30,2019, TIRZ #l has the following commitments outstanding: During 2017, the TIRZ #l Board approved a $125,000 community projects grant for wayfinding signage.

At September 30, 2019, no amounts have been disbursed and a cornmitment of $125,000 remains. On May 10, 201 8, the TIRZ # I Board approved a $50,000 community projects grant to West Texas A&M University at 800 S. Harrison for improvements. At September 30,2019, no amounts have been disbursed and a $50,000 commitment remains.

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CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 23 - TAX INCREMENT REINVESTMENT ZONE #l (CONTINUED) Qn December 4,2018, the TIRZ #l Board approved a $35,000 community projects grant to the owners of 300 SW lOth Street for improvements. At September 30,2019, no amounts have been disbursed and a $35,000 commitment remains.

On August 22, 2019, the TIRZ # I Board approved a $50,000 community projects grant to Happy State Bank ai 701 S Taylor for streetscapes. At September 30,2019, no amounts have been disbursed and a S50,000 commitment remains.

In FY 2017, the TIRZ # I Board, through the Center City program, approved a $50,000 allocation for the Jabeen Indian at 906 S Jackson. As of September 30, 2019, no disbursements have been made and a $50,000 commitment remains.

In FY 2018, the TIRZ #l Board, through the Center City program, approved a $50,000 allocation to Amarillo Hardware for 501 S Grant. As of September 30, 2019, no disbursements have been made and a $50,000 commitment remains.

On December 4, 2018, the TIRZ #l Board, through the Center City program, approved a $50,000 allocation for 300 SW lOth Street. At September 30,2019, no amounts have been disbursed. The TIRZ # I agreed to support the Potter County Courthouse renovation project with a debt issuance of $1,234,605. The TIM #l participation agreement with Potter County was amended November 16, 2010 and the funding obligation for the Courthouse was $745,426. On June 16,201l, the TIRZ #l Board amended the agreement to add $198,000 to the agreement. The TIRZ #l has agreed to do landscaping and streetscaping around the new Courthouse. The City of Amarillo issued applgltlnalely $2.2 million in Certificates irf Obligation in February 20ll using an unlimited pledge of TIRZ #l revenue for the Cour-thouse project and other streetscape improvements in downtown Amarillo.

The TIRZ #l Board approved approximately 52.7 million for the streetscape improvements for the Amarillo Convention Hotel, parking structure, and multi-purpose event venue. On January 14, 2016, the TIRZ#l Board voted to inciease the participation in the downtown projects from $2.7 million to $4.387 million. The increase of $1.687 million is in the fortn of a loan to the Amarillo Local Government grant. On the same date, Corporation -Board (LGC) with the original commitment of $2.7 million remaining as a agreed to fund the letail portion of the parking garage construction and a portion of the the streetscape and amended the TIRZ #l Project and Financing Plan accordingly. As of September 30, 2019, TIRZ #l has advanced $1,687,000 to LGC and $137,342 of accrued interest has been added to the outstanding principal balance, for a total outstanding balance of $1,824,342, During FY 2017, the City loaned TIRZ#l $1,500,000 to assist TIRZ #l with its obligation to fund $3.45 million for the retail space associated with the parking garage project and approximately $930,000 of streetscape improvements. As of September 30,2019, the outstanding balance on this loan is $1,371,378. Financial Statements Separately issued firrarrcial statements may be obtained by contactitrg the Director of Finance, City of Arnarillo, P.O. Box 1971, Arnarillo, Texas 79105.

NOTE 24 - AMARILLO LOCAL GOVERNMENT CORPORATION In March 201I, the Corporation was organized as a public nonprofit corporation for the purpose of aiding, assisting, and acting on behalf of the City in the perfbrmance of its governmental functiotts to promote the development of the geographic area of the City, including the vicinity of the downtown area, in

il9

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 24 - AMARILLO LOCAL GOVERNMENT CORPORATION fuftherance of the promotions, development, encouragement and maintenance of employment, commerce, convention and meeting activity, tourism and economic development in the City. The Corporation was created under the provisions of Subchapter D of Chapter 431, Texas Transportation Code and the Texas Nonprofit Corporation Law, Chapter 22, Business Organizations Code.

LGC is governed by a seven-member Board of Directors appointed by the City Council. LGC's annual operating budget, as well as projects undertaken by it, is subject to approval by the City Council. The City leased land to the LCG to build a convention hotel and parking garage. The term o{ the ground lease is for eighty (80) years. The LGC entered into a lease and development agreement with Supreme

Bright Amarillo II, LLC to construct a full-service convention center hotel with 225 rooms and appioximately 17,000 square feet of configurable meeting space. Construction of the hotel by the dbveloper was substantially completed and commencement of operations occurred on September 8, 2017. Pursuant to the lease and development agreement, LGC owns the hotel during the lease term and leases the hotel to the developer for eighty (80) years. Upon expiration or termination of the lease, ownership of the hotel transfers from LGC to the City. At September 30, 2017, LGC recorded $40,700,000 in contributed capital and capital assets for the hotel. During the lease term, the developer will receive all revenue from the hotel and will be responsible for all operating and maintenance costs, The agreement includes a performance assurance clause of up to $2 million, to be funded, if necessary, to assure a minimum performance of the hotel for a limited time surrounding the opening of it. As of September 30, 2019, the City has not had to fund any amount of the $2 million performance assurance clause. The LG_C, the City, and TIRZ #l have agreed not to incentivize another comparable hotel in the downtown area for

five years.

July l,2017,LGC completed construction of a 750-space parking garage adjacentlo the hotel. The cost of ihe parking garage was $16,947,568. LGC owns the parking garage and will operate the parking facility and retain all parking fee revenue. At the end of the eighty year ground lease, ownership of the parking garage willtransfer from LGC to the City. The hotel developer will have 150 reserved !pil9e-s-in ttre gaiale aid has agreed to pay $120,000 a y-ear in parking rent and an annual base rent of'$1,000, adjuited annually by CPI. LGC will operate the retail portion of the parking garage and will retain the revenue therefrom.

Financial Statements Separately issued financial statements may be obtained by contacting the Director of Finance, City of Amarillo, P.O. Box 1971, Amarillo, Texas 79105.

NOTE 25. TAX INCREMENT REINVESTMENT ZONE #2 The Tax Increment Reinvestment Zone Number Two (TIM #2) was created November 8, 2016 through an Ordinance of the City of Amarillo in accordance with the Tax Incentive Financing Act, codified at Chapter 3l I of the Texas Tax Code. TIRZ #2 will terminate no later than November 8, 2046. The purpose of the zone is to promote the development of or redevelopment of certain contiguous geographic

areas in the City.

Financial Statements Separately issued financial statements may be obtained by contacting the Director of Finance, City of Amarillo, P.O. Box 1971, Amarillo, Texas 79105.

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CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30, 2019 NOTE 26. NEW GASB PRONOUNCEMENTS GASB has issued several new pronouncements that the City has reviewed for application.

GASB Statement No. 84, Fiduciary Activities, the objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial- reporting purposes and how thoie activities should be reported. This statement establishes criteria for identifuing fiduciary activities of all state and local governments. Separate criteria are included to identifo fiduciary component urrits and postemployment benefit arangements that are fiduciary activities. This statement also-provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels-the government to disburse fiduciary resources. GASB No.84 is effective for reporting periods beginningafter December 15, 2018. - Earlier application is encouraged. The City is currently Cvaluating the effect of this statement on their financial statements. GASB Statement No. 85, Omnibus 2017, the objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). GASB 85 is effective for reporting periods beginning after June 15,2017. Earlier application is encouraged. The City implemented this statement in FY 2019. GASB Statement No. 87, Leases, the objective of this statement is to better meet the information needs of the 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 and recognized as inflows of resources or outflows of resources based on the paym€nt provisions of the contract. This statement establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an_underlying asset- Under this statement, a lessee io recbgnize a lease receivable and a deferred inflow of resources, thereby enhancing the re_levance and consistency of information about governments' leasing activities. GASB 87 is effectiye for reporting periods beginning after December 15,2019. Earlier application is encouraged. The Cify is curently bvaluating ihe effect of this statement on their financial statements.

GASB Statement No. 88, Certain Disclosures Related to Debl, Including Borrowing and Direct Placements. The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placementi. It also clarifies which liabilities golernments should include when disclosing information ielated to debt. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified. in debt agreements related to.siqlrificant events of default with finance-related consequences, significant termination events with finance-related consequences, and . significant subjeciive acceleration clauses. The requirements of this Staternent are effective for reporting periods beginning after June 15, 2018. Earlier application is encouraged. The City implemerrted this statement in FY 2019. GASB Statement No. 89, Accounting For Interest Cost Incurued Before the End of a Con.struction Period. The objectives of this Staternent are (l) to enhance the relevance and comparability of inforrnation about capital assets and the cost borrowing for a reporling period and (2) to simplify

accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost inclu-des-all interest that previously was accounted for in accordance with the requirernents of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Conlained in Pre-November 30, 1989 FASB and AICPA Pronouncenrenls, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be

l2r

CITY OF AMARILLO, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Year Ended September 30,2019 NOTE 26 - NEW GASB PRONOUNCEMENTS (CONTINUED) recognized as an expense in the period in which the cost incurred for financial statements prepared using the econornic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historicalcost of a capitalasset reported in a business-type activity or enterprise fund. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this Statement should be applied prospectively. The City implemented this statement in FY 2019.

GASB Statement No. 90, Majority Equity Interests - An Amendment of GASB Statements No. I4 and No. 61. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. For all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit. This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, defemed outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occured subsequent to the acquisition. The requirements of this Statement are effective for reporting periods beginning after December 15,2018. Earlier application is encouraged. The requirements should be applied retroactively, except for the provisions related to (l) reporting a majority equity interest in a component unit and (2) reporting a component unit if the government acquires a 100 percent equity interest. Those provisions should be applied on a prospective basis. The City is currently evaluating the effect of this statement on their financial statements.

GASB Statement No.9l, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (l) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifoing the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary comrnitrnents extended by issuers and arrangements associated with the conduit debt obligations; and improving required not disclosures. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuer's conduit debt obligations and a description of each type of cornrnitment. Issuers that recognize liabilities related to supporting debt service of conduit debt obligations also should disclose information about the amount recognized and how the liability changed during the reporting period. The requirements of this Statement are effective for repofting periods beginning after December 15, 2020. Earlier application is encouraged, The City is currently evaluating the effect of this statement on their financial statements.

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CITY OF AMARILLO, TEXAS NOTES TO BASIC FINAI.ICIAL STATEMENTS Year Ended September 30, 2019 NOTE 27 - SUBSEQUENT EVENTS The City evaluated for inclusion as a subsequent event disclosure those events that occuned prior to February 25,2020, the date the financial statements were issued.

On January 28, 2020, the City Council authorized the purchase of 509 Jackson Street in Downtown Amarillo in the amount of $3.85 million dollars.

On February ll, 2020, the City Council called a general obligation bond election for the voters to consider a$275 million improvement project for the City's convention center facilities to be funded by ad valorem taxes.

This information is an integral part of the accompanying basic financial statements. t23

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124

REQUIRED SUPPLEMENTARY INFORMATION Certain information that is not a part of the basic financial statements but, nevertheless, is considered to be an impoftant part of a governmental entity's financial report, must be presented immediately after the notes to the basic financial statements. This information includes the following: Budgetary comparison schedules for the General Fund and each major special revenue fund that has a legally adopted annual budget: Under these criteria, the budgetary comparison schedule of the General Fund is presented in this section. Pension trend data: The City's Net Pension Liability and Required Contributions for the Texas Municipal Retirement System, as well as the Firemen's Relief and Retirement Fund for City of Amarillo firefighters, is included in this section. Postemployment trend data: The City's Net OPEB Liability and Required Contributions, is included in this section.

125

l,424Jtt

36,,160,898 4,,143,01 I

t124,73t 609,697

28t,290 r82.660,809

37,.104I59 5,106,200

9t0,75t ,t40,434

2t7.94?

37,379,459

5,t06,200

9r0,75t 440,,134

237.946 I 85.079.s08

Misccllaneous rerenues

Tolal revenues

FUNDBALANCE ENDOFYEAR

FUND B.{LANCE BEGINNING OF YEAR

Net change in fund balances

Tramfers from olher funds Transl'ers to other furds Tolal other linancing sources (uses)

oTHER FTNANCTNG SOURCES (USES)

or.er (under) espendilures

Exess (dcliciency) of revenues

3 45.r 16,652 $ 4s.623:23

126

$ 45,734,540

(37,6r7) 503,03r

48,049,604

540,648

617,888

6 I ?,888

(2,3r s,06r)

48.087.22t

( r,78 r,82s)

(9,794,580) (2,855,?12)

56,549

2.399.7t 3

fl.838-374)

250,064

7.479.5t6

4,873,688

803,555

746,502

00.044-6{4)

510.648

I 75,t8t,293

(s40,648)

$,742,,689 5,3?3,045

9,7E3

(7,rsr)

(r0,044,644) (9,794.580)

250,064

6.938-868

s 4533r,509 $

See Independent Auditorrs Report.

48.049.604 48.049.604

(8.0r2.755) (2,932,952)

(2,426,381 )

t93,5t5

(7,890,756) (7.6972411

(8.26:70)

5,0?9,803

r80,0s4,981

r93,5r 5

5,2?0,860

r 79,808,648

6.136.602

Total expenditures

r5,692,906 5,380,t96 t75,72t,941

r6,449,t9r 6.t76.6@

16,999,t28

Transit

4,454,886

2n,476 4,454,886

4,454,885

il,m4,0il (r3,60s)

4,r 35,885

(r,303,808) r6,345,39r

(39?,783)

tnformation tochnology. Strces traflic and engineaing

|,z%Jn

I1,017,6t6

I r,r33,257

Staffscrvis

47,%ttc,9

7t2,142 r,28?J96

75?.J419

s,n7

48 560,379 I 5,086,t 95

t5,oll,583

7,&3,768 6,946206

(r4,s04) 47,245:482 t6,743,174

7,638,3,18 ,18,54E,905

I I t,t76

32t,140

4,t25,359 t2,087,863

(4,83t

I4,097

508,699

4,669,O75

t9?,995

t28,!28

3!0,768

(2,473,e7sl

43,343

16926t

(s40,086) (23,7 l 8) {943,s6r }

(2,09rJ69) (r54,r r6) 6,57t

(23,832)

7,618272

8,36t,t8?

7,80t,340

Participant r€cr€ation Police protection Solid waste

Parks

79,864

(ilz,2221

6,950,038

r1092,698

4"236,535

t2,,t09,@3

2,63?,938 8,1 1,t,350

Public safety and heahh

Libnrics

33,407J05 t I,(x)4

5,(b3,438 4,t97,806

General goYernrnenl

33,605,300

5,a77,774

2,543,820

3,676,46

28r29O t82,660,809 4,184 (64,000)

(6e933)

33,296,055

Firepmtation

3,672282 2,&7,820 ,f,658,071 ,f,l I 1,262

2,671,948

33,177238

3,99?334

2,67t,918

3,974,327

EXPENDTTURES Auditorium/coliseum Tourism

4,9@,t80

r7,350,836

78,098 36,450,898 4,{43,0t I

78,098

t0t,8t6

4,99',248 r0,m0

lntergolernmental revenue Contributions tiom citizens Charges for sen i:es Fines and forfeitures lnrestment eamings otlrcr rentals and commissions r 85, I 34,784

5 r 3,980

t,879,045 4,9@,180

t,879,0d5

s!42?6

3.688,290 1,812,174

&9,697

(663,r89)

3,5y.,t74

3,5v,174

r9,.142,305 3,688,290 1,872,414

I 9.442.305

Gross receipts bus- tanes Licenscs and permis

6,458,2,18

816J98

99.,629

874,76s 6,57017O

424,867

87.1,765 7,O77,O29

s9,t75,698 954,629 6,458248 t7,3s0,836

3 4s,r08:.7,r

59.t75,698

Basis

$ {5,t08,274

Bgsis

58.3592m

Amounts

Verience rrith Final Budget Posilivc (Negalivc)

$ ,14,683JO7

Final

Aclual on Budgelary

58,359,2m

Original

Acturl

Actutl Amounts Adjusaments to Budgetery

$ .14,683,107

REYENUES Ad ralorem taxes Sales tares Mised beuerage taxes Hotel occupancy uxes

Budgeled Amounls

YEAR ENDED Sf, PTEITTBER 30, 2OT9

CITY OF AMARILI.O, TEXAS REQUIRED SUPPLEIUENTARY INFORNHTION BUDGETARY COilIPARISON SCHEDULE. GENBRAL FUND

CITY OF AMARILLO, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND REI,ATED RATIOS SEPTEMBER to,20t9

20lt

(r)

20t?

(l)

20t6

(r)

2015

(r)

20t{

(l)

Tolrl Pcnrlon Llrbility Service cost

$ t2,336,t49

$ t2,t22,087

$ I t,329,t l8

$ r0,7r5146 s

9,500,808

3 1,164,809

30,060,764

29,137,163

28,509,723

27,566, r 83

783,261 (1,733,9t 5)

2,896,952

(425, r 98)

lntcrcsi (on the tol|l pcnsion liability) Changcs of bcnclit tcrms

Diffcrcncc botwcon cxpectcd

(2,072.564)

and actual otpricncc

7,6t7,9t9

Changc ofasumptions

Bcncfit payncnu, including rcfunds of employec contributionr

(28.145.055) (25288.785)

Nct chrngc ln Totnl Pcnclon Llnblllty

602.9581 (25.?69-544\ (21-770.206\

17,677,129

r 3, r 29,408

23,989,696

14,871,58?

45 1.928.006

438.798.598

4 r 4.808-002

399.937.3 r 5

f 1182.888.6?4 $ 460-605-tl5 3 4Sl-928-006 3 438-?98^598

s 4t4^808.902

I 3,283,339

Toml Pcnslon Llrblllty - Bcglnnln3

Totrl Pcnrlon Llrblllty - Endlng (r)

(2S

469-605-335

Plrn Flduclela Nct Posltlon

$ 8,771,979

Conuibutions - employcr

$ t0,8?0,?28

Conlributions - employee

6,126,621

5,977,591

5,573,830

5.589.3 t 4

5,307.r68

Nct investment income

( 12,81 I,240)

s324s$20

25,057,057

563,574

2 t,096,607

Bcncflt paymcnis, including refunds of cmploycc contributions

(28,145,055)

(25,288,785)

(25,602,958)

(25,169,544'

(247,84 I )

(276,t45)

(283,r70)

(343,32 r )

(2t,770206] (220283)

( I 3^995)

fl5:57)

( t 6.95?)

(l8.r l0) 13,167,1 55

Administrativc cxpcnsc

9899,142

/tt 040\

Ohcr

8.727,306

8,989,606

Nct Chrngo ln Plrn Flduclrry Net Posltlon

(242t9,7t6)

43,643A28

r3J56,808

( I 0,987,328)

Plrn Flduclrry Nct Posltlon - Bcglnnlng

428.t04.463

384.461.035

171.004221

38 t.991.555

368.824.400

Plrn Flduclrry Nct Podrlon - Ending (b)

$ 403.884.?27 $ 428.104.463 S 384,461,035 S 37t,004327

$ 38r.99r.555

Nct Pcnrlon Llnblllty - Endlng (n) - (b)

79,003,947 $ 41,500,872 g 67,466,971 S 67,794,371 S 32,817,147

Plnn Flduclrry Nct Polltlon m Pcrcentngc of Totrl Pcnslon Llnblllty Cowrcd Payroll

9l.160/o

83,070/o

84.350/o

s E7,r8r.265

$ 85,306,707

$ 79,614,328

$ 79,?85,899

90,620/o

48.650/o

84.740/o

83 '640/o

92.09%

s 75,816,680

Nct Porltlon Llrblllty ns n PcrccntnSc

ofCovcrcd Pryroll

(l)

Amounts arc boscd on thc Texas Municipal Retirement System Plan ycar end Dcccmbcr 3 t

lnformation to prescnt a ten-year history is not rcadily availablc.

See Indepcndcnt AuditoCs Report,

t27

8497%

43.290/o

CITY OF AMARILLO, TEXAS TE}(AS MUNTCIPAL RETIREMENT SYSTEM SCHEDULE OF CONTRIBUTIONS SEPTEMBER 30,2019

Actuarially dctermined contribution

2019

20r8

2017

20t6

2015

$ t0,835,851

$ t0,572,971

$ 8,973,486

$ 8,571,738

$ 8,723,824

t0-835.851

t0.572.97t

8.888. I 38

8.545.939

Contributions in rclation to thc actuarially determined contribution

Contribution deliciency (excess) Covered payroll

85.348 S

Ln.7

'7n

25.799 S $ 88.422.19t $ 86.398.268 $ 84.792.t91 $ 77.629.583 S 76.977.081 s

Contrlbutlons ac o percGntage of covered pryroll

12.25o/o

12.24o/o

Information to prcscnt a tcn-ycar history is not r€adily available.

See Independent Auditor's Report.

t28

t0.480/o

ll.0lo/o

ll.33o/o

CITY OF AMARILLO, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2019

NOTEl.VALUATIONDATE Actuarially determined contribution rates are calculated as of December 3l and become effective in January, 13 months later.

NOTE 2 . METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATES The following methods and assumptions are used to determine contribution rates:

Actuarial cost method

Entry age normal

Amortization method

Level percentage of payroll, closed

Remaining amortization period

27 years

Asset valuation method

l0 year smoothed market; l5% soft corridor

Inflation

2.50/o

Individual salary increases

3.50%to 10.5%, including inflation

Investment rate of return

6.7s%

Retirement age

Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experienced study ofthe period 2010-2014

Mortality

RP2000 Combined Healthy Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a

fully generational basis with scale BB NOTE 3. OTHER INT'ORMATION There were no benefit changes during the year

Sec lndependent Auditor's Report

t29

CITY OFAMARTLLO.TEXAS FIREMENIS RELIEF AND RETIREMENT FUND SCHEDULE OF CHANGES IN NET PENSTON LIABILTTY AND RELATED MTIOS SEPTEMBER 30,20t9

20t8

(l)

zontt,

2016

(r)

20t5

(rl

20t6

(l)

Totnl Pcnslon Llrblllty Senice cost

lntcrcrt (on thc total ponsion liability)

5,368,316

4,945,627

I 5, I 34,536

I 5. I 69,042

4.755.4t I

14,501,797

3.983.82r

I 3,596,993

3.830.597 13,071,902

Chrngo ofbcncflt tcrms Differcnce between exp€cled and actual cxpcricncc

(3,093,038)

4,740,4?2

Changc ofolsumptlonr

7.650.803

4,770.803

Benefit payments, including refundc of omployoc contributions

fl2.366.342) ilr.610.516) (lt.465.839) flt.340.691) il0.r31.932)

Nct ch.ngc ln Totrl Pcnrlon Urblllty

Totrl Pcnrlon Lleblllty - Bcglnnlng Tot.l Pcnllon Llnblllty - Endlng (r)

8,171,016

13,02?Atz

7,791,169

I 5,751,398

6,770,567

203.068.750

r90-04r.338

182.249.969

r65.498.57r

r s9.728.004

3 2n.239^?66 S 203-068-750 3 I90.04t.338 3 t82^249-96q S t66.498-S?t

Plrn Flduclrry Ncl Porlllon Contributions - omployer

3,969t55

3,879,330

3,635,605

Contrlbutionr - cmploycc

2.636.104

2,576,969

2,599,970

Na invcslmenl income

(3,233,190)

24,077,154

t3,708,943

3,559,28?

2J56.Et4 t2,177,8t4

3,3 r I,865

2,296,4?t

6,499,41I

Goin (loss) duc to dillcrcncc in

(t2,274,477)

projcctcd vs. actual cornings Benelit paynentr, including rcfunds of crnployee contributionr

( r 2,366,342)

(t I,610,5 t6)

(t I,465,839)

(t I,340,69t )

(r0,r3r,932)

(86.r28)

(76.3E3)

(80,849)

(436,742)

(e0.633)

705

2.147

10 0gr

30 r73

( tl(

Administrrtirrc cxpcnsc Othcr Nct Chrnge ln Plnn Flduclnry Nct Porltlon

(9.078.996)

I 8,848,70

Plnn Flduclrry Ncl Porltlon. Bcglnnlng

17t.843-403

1s2,906.702

?lrn Flduclnry Nct Porltlor - Endlng (b) Clly'r Nct Pcnslon Lhblllty - Endlng (r) - (b)

8,338,821 (5,807,802) r,8E0,347

t44-657.88t

I 50-465-683

tdt 4e( 1?A

s t62.766.407 3 171.845-403 S 152.996.702 $ 144.6s7.88r 3 150.465.683 s 48,473,359 S 3t,223,347 S 37,044.636 S 37,592,088 S t6,032,888

Plrn Flduclrry Net Porltlon nr n Perccntrgc of Tohl Pcnslon Llnbllhy Covcrcd Pryroll

77.050/o

$ 20,282,338

Nct Porlllon Llrblllty rr r Pcrtcnlrgc of Covcrtd Pnyrcll

(l)

84,620/o

s 19,822,841 t51,St%

238.99o/o

Amounls ore ba$ed on the Firemenb Reliefand Retirement Plan ycrr cnd Deccmbcr 3l

lnformation to present a ten-yerr history ir not rcadily avaihblc.

See Independent Auditor's Report. 130

80,510/o

s t9,307,5t5

l9l.87o/o

79.370/o

90.t7e/o

18,902,215

$ 17,588,238

198,88%

9l.160/o

CITY OFAMARILLO,TEXAS FTREMEN'S RELTEF AND RETIREMEM FUND SCHEDULE OT CONTRIBUTIONS SEPTEMBER 30,2019

Actuuially dctcrmincd contribution

2019

2018

2011

$ 3,980,t86

s 3,913,039

s 3,821,547

3.980.r86

3.9r3.039

3-821-547

Contributions in rclation to thc actuarially dctermincd contribution

Contrlbutlon dclicicncy (cxccss) Covorcd pryroll

2016

2015

s 3,576,2 6 $ 3,432,058 t

3-516-216

3.432.058

s $$ 20.3il.090 $ 20.057.182 $ t9.892.208 $ t8,890.426 S 18,288,555 s

Contrlbutlonr tt N pcrccnttgc of covered pryroll

t9.,to6

19.600/o

l8.9lolo

19,24o/o

Information to prescnt g 1sn-year history is not readily available.

See lndependent Auditor's Report,

t3t

18,77o/o

CITY OF AMARILLO, TEXAS F'IREMEN'S RELIEF AND RETIREMENT FUND NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2ol9 NOTE I . ACTUARIAL METHODS AND ASSUMPTIONS The information presented in the required supplementary schedules was determined as part of the biennial actuarialvaluatiohs. Additional information as of the latest actuarial valuation follows: Valuation date

December 31,2017

Actuarial cost method

Entry age Level percentage ofpay, open

Amortization method Remaining amortization period Asset calculation method

43.5 years Smoothed market value method

Actuarial assumptions: Inflation

750% 2s0%

Projected salary increases

3.50%

Investment rate of return

Contribution rate:

t9j7%

City of Amarillo

t3.00%

Employees

RP-2000 mortal ity table proj ected to 2024 using scale AA, male and female rates

Mortality rate

NOTE 2 - EMPLOYER CONTRIBUTIONS Employer fiscal year contributions are actuarially determined in the preceding valuation. The range of recommended contributions was based on amortization of the actuarial accrued liability over a period ranging from l0 to 30 years. The amortization period as of December 3l ,2017, was approxirnately 43.5 yeais, iaking into account the contributions made between January 1,2017, and December 31, 2017. The hmortization method was the level dollar method and the amortization period is an open amortization period. The annual contributions for the Plan years ending December 31,2018 and 2017 were irpproximately $4,000,000 and $3,900,000, respectively.

NOTE 3 - CHANGE IN ASSUMPTIONS The rate of return on the actuarial value of assets was lowered from 8.00% to 7 .50%o. The rate of increase

in total payroll was lowered from 4.00% to 3.50%. The rate of inflation was lowered from 3.00% to 2s0%. NOTE 4. OTHER INFORMATION - PLAN AMENDMENTS EFFECTIVE JANUARY I,2OI8 Under the Plan, firefighters can retire at age 50 with 20 years of service and receive either ( l) a monthly retirement benefit equal to 3.45% of the firefighters highest average salary multiplied by the firefighter's total years of service, if hired prior to January I , 201 8 or (2) a monthly retirement benefit equal to the sum of (aj3.ZSol" of the firefighter's highest average salary multiplied by the firefighter's years of service up to a maximum of 20 years and (b) 2.500/o of the firefighter's highest average salary multiplied by the firefighter's years of service in excess of 20 years, if hired on or_after January 1,2018. A firefighter's highest averdge salary is greater of (l) the firefighter's highest five-year average salary for gnl,period prior to retirement or (2) the firefighter's highest three-year average salary prior to January l, 2018. See lndependent Auditor's Reporr

t32

CITY OF AMARTLLO, TE)(AS REQUIRED SUPPLEMENTARY INFORMATION orHER PoSTEMPLOYMENT BENEFIT (OPEB) SCHEDULE OF NET OPEB LIABILITY AND RELATED RArlos (l) FOR THE YEAR ENDED SEPTEMBER 30,2019

TotalOPEB Liability Phn fduciary net position Net OPEB liability (asset)

20t9

2018

20t7

$ 64J0s384

s 6t979Ja

s 59,119J28

t5237.541

13.621.1l3

9.478.461

$ 49967J43 $ 48Js8,029 $ 49fi1267

Plan frduciary net position as a percentage of the total OPEB liabilily

23.700/o

21.980/o

16.030/o

$ 100,300,000 $ 97,400,000 s 99,700,000

Covercd payroll

Net OPEB lhbilrty (asset) as a percentage ofcovered payroll

49.220/o

(l) This schedule is intendcd to show l0 years-additional information will be prescntcd as it bccomes available.

See Independent Auditor's Report

r33

49.650/o

49.790/o

CITY OF AMARILLO, TEXAS REQUIRED SUPPLEMENTARY INFORMATION OTHBR POSTEMPLOYMENT BENEFIT (OPEB) SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS (1) FOR THE YEAR ENDED SEPTEMBER 30,2OI9 Measurement Year Ended Ausust 31.

20t7

2018

Total OPEB liability: Service cost

Interest

1,955,516

1,832,510

4,138,657

3,9444t8

(745,063) (3.022.968\

(2-9t7.5t4\

2,326,142

2,959,414

6r.979.142

59.119.728

2,700,901 $

2,&7,545

( 1,084,473)

1,495,107

Changes of benefrt terms D ifference betrveen expected and actual experience Changes of assumptions Benefits payments

Net change in total OPEB liability Total OPEB liability-be ginning Total OPEB liability-ending (a)

s 64.305284 S 61.979-142

Plan fiduciary net position:

Contributions-employer Net investment income Benefits payments

Administrative expense Other

1,616,428 4,142,652

Net change in plan fiduciary net position Plan fiduciary net position-beginning Plan fiduciary net position-ending (b)

s ts.237.s4t $

9.478.461 r3.62r.r r3

City's net OPEB liability-ending (a)-(b)

48.358.029

t3.621.il3

Plnn fiduciary net position as a percentage of the total OPEB liability

49.067.743 S

23.70%

21.98%

$ 100,300,000 $ 97,400,000

Covered payroll

Net OPEB liability as a percentage of covered payroll

48.92o/o

(l) This schedule is intended to show l0 years-additionalinfbrmation willbe presented as it becomes available.

Sce lndependent Auditor's Report

t34

49.65%

CITY OF .AMARILLO, TE)ilS REQUIRED ST'PPLEMENTARY INFORMATION oTHER POSTEMPLOYMENT BENEFIT (OPEB) SCHEDULE OF CONTRTBUTIONS AND RELATED RATIOS (1) FOR THE YEAR ENDED SEPTEMBER 30,2019

Actuarial determined contribution

2019

2018

2,700,901 s

2,&7,545

2.700.90r

2.647.545

Contributions in relation to the actuarhlly determined contribution

Conuibution defrc iency (exce ss)

100300,000 97,400,000

Coverod Payroll

Contributions as a percentage of covered-

2.6f/o

2.720/o

-0.320/o

13.84o/o

Bank Insured Deposit

0.660/o

2.50/o

Equities

51.360/o

50,370/o

payroll Annual money weighted rate of return, net of invesbnent expenses

Allocation

Mutual Funds Peb Trust of Toxas

41.980/o

47.13o/o

100.00%

r00.00%

(l) This schedule is intended to show l0 years-additional information will be presented as it becomes available.

See Independent Auditor's Report

r35

CITY OF AMARILLO, TEXAS OTHER POSTEMPLOYMENT BENEFITS (OPEB) NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2019 NOTE I . METHODS AND ASSUMPTIONS The following methods and assumptions are used to determine contribution rates:

Valuation Date

October 1,2017

Measurement Date

December 3 l, 201 8

Benefits Valued

Pre-65 and Post-65 medical and prescription drug benefits

Long-Term Rate of Return

7s0%

Discount Rates

6.7 5% (partial pre-fundin g)

Healthcare cost trend rate

8.00%

Payroll Growth Rate

3.00% forTMRS & AEDC, 4.00% for FRRF

Termination Rates

o TMRS and AEDC participants

For the first l0 years of service, the base table rates vary by gender, entry age, and length of seruice. These tables were selected based on the December 31, 2016 TMRS Actuarial Valuation, City experience and long-term expectations.

Mortality Rates

TMRS and AEDC participants

The mortality rates used in the pension plan in which the

employee, retiree or beneficiary is assumed to participate.

-Healthy

Pre-Retirernent

Post-Retirement

-Disabled

FRRF participants

Post-Retirement Medical Plan Change

Gender-distinct fully-generational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multipliedby 54.5% for males and 5l .5%o for females. Gender-distinct fully-generational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multiplied by 109% for males and 103% for females. Gender-distinct fully-generational RP-2000 Combined Healthy Mortality Table with Blue-Collar Adjustment projected using scale BB multiplied by 109% for males and 103% for females with a 3-year set-forward for both males and fernales and a3Yo minirnum mortality rate. RP-2000 Combined Healthy Mortality Table projected to 2024 using scale AA.

Effective January l, 2015, all inactive participants age

65 or older electing a post-retirement medical benefit with the City will receive a stipend of $150 per month toward their cost of rnedical coverage, The $150 stipend is not expected by the City to increase, arrd is a fixed variable in our model.

r36

CITY OF AMARILLO, TEXAS OTHER POSTEMPLOYMENT BENEFITS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2019 NOTE 1 . METHODS AND ASSUMPTIONS Dependent Status

r Spouse Age Differential o Children

Husbands are assumed to be two years older than wives. Assume current and future retirees have no covered children.

Per Capita Claims and

Administrative Costs

Per capita medical and prescription drug claims and administration costs (PCCC) were developed based on the following: - Claims experience, stop loss fees and administration costs for actives and retirees from January l, 2015 to October 31,2017. - Claims experience was adjusted for plan values, healthcare cost trend, and age-sex differences

Healthcare Cost Trend Rates

Trend rates are used to project current combined medical

between active employees and retirees.

Actuarial Cost Methods

Actuarial Value of Assets City Contributions Dental Benefits

and prescription drug claims and administration costs and retiree contributions. If healthcare inflation were to continue as its current rate, eventually 100% of the Gross National Product (GNP) would be allocated for healthcare services. Since this is unrealistic, healthcare cost trend rates are assumed to decrease in future years. Entry Age Normal level percent of pay. Investment gains/losses are amortized over 5 years, liability gains/losses are amortized over Average Working Lifetime, and Plan changes are recognized immediately. Market Value 2.43% of totalcovered payroll Premiums contributed by retirees, disabled participants and dependents for dental coverage are assumed to equal or exceed their expected dental per capita claims costs. Therefore, dental coverage was not valued in this valuation.

NOTE 2 - OTHER INFORMATION There were no benefit changes during the year.

The following changes were made as of October 1,2017:

Healthcare Cost Trend Rates were updated frorn 9.00% in 2016 stepping down to 5.00% in2024, to 8.50% in 201 8 stepping down to 5.0Q% in 2025

137

CITY OF AIVIARILLO, TEXAS

orrrER POSTDMPLOYMENT BENEFITS (OPEB)

NOTES TO REQnIRED SUPPLEMENTARY INFORIVIATION (CONTINUED) SEPTEMBER 30,2019

NOTE 2 - OfirER INT'ORI\{ATION (CONTINUED)

o Mortality Rates wert updatcd based on changcs in tho Desember 31, 2016 TMRS and Dccembcr 31, 2015 FRRI Actuarial Valuations o Disabiliry Ratcs werc added o The discount ratc mothodolory and Aotuarial Cost Mahod were updatcd according to tho now OASB 74 and 75 accounting standard

Scc Indcpcndcnt Auditor's Report

t38

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. This category includes the following funds:

Grant funds: These funds are used to account for the receipt and expenditure of funds received under various federal and state assistance programs. Public improvement districts: These funds are used to account for assessments levied against residential lots in various public improvement districts, the use of which is restricted for maintenance of beautification and recreational facilities. Seizures funds: These funds are used, to account for crime seizure proceeds awarded to the City, the use of which is restricted to law enforcement purposes.

Other: These funds include: Court Technology Fund: Fees collected by the Municipal Couft under state laws which restrict the use of the proceeds to technological enhancements for the Court. Court Security Fund: Fees collected by the Municipal Court under state laws which restrict the use of the proceeds to court security activities and cost for the Court.

LEOSE Training Program: Fees collected by the Municipal Couft under state laws for the purpose of providing continuing education for law enforcement and fire officers.

Homeland Security Program: The homeland security programs provide the Emergency Management Department with professional services and equipment, which allows the City to be operationally equipped and trained to respond to emergencies through the purchase of equipment, training, and exercises with the goal of improving the preparedness of local responders. Cable Capital Facilities Fund: Funds received and restricted for specific cable connectivity with Amarillo Independent School District. Photo Enforcement: Fees collected from red-light traffic violations that are restricted by State law to be used only for traffic intersectiott improvements. Public Library Bush Collection: Funds received and restricted for the purchase and maintenance of iterns in the Williarn Henry Bush Collection.

Library Trust: Various funds received for the sole benefit of the Amarillo Public Library. Flood Hazard: Fees collected for playa lake developrnent.

Centennial Plaza Trust: Funds received for irnprovernents at the Amarillo City Hall/Civic Center Complex.

Civic Amarillo: Funds accumulated and used by the Arnarillo Civic Center for the in-house promotiorr of events,

r39

This page left blank intentionally.

140

Other (Continued): Zoo Trust: Funds received and restricted for operations and improvements at the Amarillo Zoo.

Centennial Celebration: Funds received and restricted for the City's centennial celebration. Keep Amarillo Beautiful: Funds received for improvements to the Amarillo area.

Tax Increment Reinvestment Zone #t: Blended component unit created to promote the development of or redevelopment of certain contiguous geographic areas in the City.

Bonded Debt Seruice Fund

This fund cunently accounts for ad valorem taxes assessed for purposes of servicing the serial debt obligations of the 2001 general obligation bonds issued for library purposes, as well as special assessments made for servicing certificates of obligation issued for the Public Improvement District. Compensated Absences Fund This fund accounts for the ultimate payment of termination obligations to the employees of the City.

Permanent Fund

Pavillard Endowment: This fund accounts for a contribution to the City's Library, which was to be held to provide a lifetime income to the grantor and, thereafter, to use the income therefrom for purchases of children's books.

l4l

CITY OF AMARILLONTEXAS COMBINING BALANCE SHEET OF NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2019

Speclal Revenue Funds Housing rnd Urbrn Development

Grrnt

Crrn13

Funds

ASSETS Cash and cash cquivalents

Other

Public lmprovement Dlstricts

690,936 $ 8,651,855 $ 2,300,510 $

Investments, at fair valucs Rcccivablcs, net of allowances

Seizures

Other

Funds

649,t89 $

4,153,931 1,750,000

for uncollcctiblcs Property taxes Accounts

97,040

24,479

Accrucd Intcrctt Due from othcr funds unresricted Due from other governmcnts

49,539

17,863

700,855 3,312

838,589

3,388

Prcpaid itcms Restricted cash and cash cquivalents Restricted investrnents

TOTAL ASSETS

s,927

7,228

2t.397

8,163

602

r.541.682 S 9.540.949 $2.306.437 $

657.019 $

152,492 $

5,928,716

LIABILITIES AND FUNDBALANCES

LIABILITIES Vouchcrs payable Accounts payablc

Accrued expenditures Deposits Due to other funds - unrestrictcd Duc to other govetnments

183,358 S

442,859 $

26,282 S

316,267 6,629

204,184

31,000

68,975 376,571

21,164 I,268,955 505,000

496,774

1,000

2,054

210.856

22,108

145

Unearncd rrvcnucg - other Unearned rcvcnucs - property taxes Advoncc fiom other ftrnds

r.3 t 0.522

Total liabilitics

1.073.822

r. I 52.043

2,494

5,472

58,282

176,654

3.3 r 7.043

FUNDBALANCES Nonspendablc Prepaid items Uncollected taxes Corpus or PrinciPol Restricted for: Debt Service Special purposes Committcd for:

8,383,434 2,248,155

479,763 2,6t t.673

467.860

8.388.906 2.248.t55

480.365

2.6fi.613

r,54r,682

$ 9.540.949 S 2.306.437 S

657.019 $

5.928.716

439,828 25.54E

Compcnsatcd Absences

Total fund balances

TOTAL LIABTLITIES AND FUND BALANCES

602

See Indcpcndent Auditor's Report.

142

Totol

Bonded Dcbt

Compencrted

Service

Abcenccs

Pcrmrnent

Nonm{or

Fund

Govcrnmcntrl Fundr

t90,641 499,410

17,694

2t ,594

16,654,756 2,2491410

21,594

t27,446 5,235

,847

74,630 1,560,841

12,077 3,044,663

3,044,663

3.066.257

691 .898

$ 2, 752

7 .694

s 23.150.652

873,966

939,592 27,193

8,81 7

1,268,955 1,275,684

22,253 70,649 14,699

14,699

t.310.522 t7,451

5.804.r l3

17,693

8,558 6,895 17,693

8.8r7

6,895

3,04t,91I

3,04 I ,91 I

14,162,853 708,629

683.08r 683.08r

3,048.806

3.066.257

69r.898

r7.693

t7.946.539

17,694

s 23.750.652

See Independent Auditor's Report.

r43

CITY OF AMARILLO,TEXAS NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURESN AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,20I9 Soccial Revenue Fun<ls Housing and

Other

Urban Dcvclopment Grants

Grant Funds

Public Improvement Districts

Scizures Funds

REVENUES Ad valorem taxes - lbr dcbt service Intergovernmental revenucs Citizcn contributions Construction participation Revenue from participating taxing cntities Charges for services Fincs and forfeitures

11,629,897-

Other

175,491

6,659,979

9,001

69,137 13,840

150,847 2,1 16,01 6

Investment eamings

8,10;

142,099

Miscellaneous

52,681

703

637

I,076,355 s42,60t

2t7,350

1,358,733

6,127

t 59,01 I

n.773.656 6952,628 2,t 16,653 223,477

Total revcnucs

EXPENDITURES 199,562

Police protection Othcr public safety and health Staff serviccs Auditorium - coliscum Library

65,2 7

1,702,276

5,097,914 331,133

33 r,248

ll5 83 2,206

Parks

23,109

Participation rccreation 2,665,085

Urban redevelopment and housing

160,749

50,624

Capital outlay Debt scrvice principal retirement Interest and fiscal charges Economic Developmcnt & Tourism Termination vacation and sick leave pay

74,42;

741,267

12.665.085 5,679,233

Total cxpcnditures Excess (deficiency) of rcvcnucs

832.206

326.024 2.872.435

(89t,429) 1,273,395 1.284.447 (102,547) 44E,757

over (under) expenditules

OTHER FINANCING

souRcES (usEs)

'lransfers from othcr I'unds

t39.362 (500)

Transfers to othcr lunds

79.541

52.87E

(200,674)

(6r r.04r)

(752.567) r,r25,599 673.406 (102.547) (56.257)

Nct change in f'und balanccs FUND BALANCES, BEGINNING OF YEAR

1.220,427 7,263,307 1,575,085 582.912 2.667.930

PRIOR PERIOD ADJUSTMENT

(336)

FUND BALANCES, BEGINNING OF YEAR, RESTATED

1,220,427 7,263,307 1,574,?49

FUND BALANCES, END OF YEAR

(584.555)

582.912 2,667,930

467,860 $ 8,388.906 $ 2,248.155 $ 4E0.365 $ 2,61 1,673

See lndependent Auditor's Reporl,

t44

Bonded Dcbt

Totsl

Senlce

Compensatcd Absences

Permanent

Fund

5,2l8,olo

NonmaJor Govcrnmentrl Funds 5,218,010 18,464,367 9,001

69,t37 1,0?6,355

2,823,304 43,963

5 ,83 7

1,576,083 377,777 53,384

5.263.975

r5.837

29.667.4t8 364,837 6,800,190 342,163

1,030

331,248

lt5 832,206 23,109 12,665,085 285,793 4,1 10,037 5,043,070 741,26?

4, I 0,037 5,043,070

2.126,448

2.t26.448

9,164,137

2,126,448

33.66s.s68

(3,900,162)

(2,110,61l)

(3,998,150)

5,603,386

1,400,000

7,2?51167

fl.396.770) l,?03,224

(710,61l)

r.345.582

1.393.692

1,880,247

r6.056.628

t7,693

(336)

3.048.806

16,066,292

r7.693

1,393,692

1.345.582

683.08r

t7.693

See Indepcndcnt Auditor's Report, 145

17.946.539

CITY OF AMARILLO, TEXAS OTHER GRANT FUNDS COMBINTNG BALANCE SHEET SEPTEMBER 30,2OI9

Special Revenue Funds

Public Health

Justice

Miscellaneous

Grants

Grrnts

Total Other Grant Funds

ASSETS

$ 8,302,616 $

Cash and cash equivalents Receivables, net of allowanccs for uncollcctibles

Accounts Duc from other funds unrestricted Due from other governments Prepaid itcms

13,093

4,lgg 5,21 I

20,188

716,249

38,855

5.4?2

$ 9,033,747

TOTAL ASSETS

336,146 $

s 72.t36 S

8,651,855

24,479

12,652

17,863

83,485

838,589

2,69t

8,163

43s.066 $

9.540.949

LIABILITIES AND FUND BALANCES LIABILITIES

$ -$ 110,822 164,019

Vouchers payable Accounts payablc Duc to othcr ftrnds - unrestricted

Total liabilitics

332,037 $

u2,859

18,029 85.000

204,184

370.000

22,136 s0.000

644,841

72.136

43s.056

r.152.043

505,000

FUND BALANCES Nonspendable: Prepaid itcms Restricted: Special purposcs

5,472

8.383.434

8.383.434 8.388,906

8.388.906

Total fund balances

TOTAL LIABILITIES AND FUND BALANCES

s 9.033.747 $ 72.136 $

See lndependent Auditor's Report.

t46

435.066 $

9.540.949

CITY OF AMARILLO' TEXAS OTHER GMNT FUNDS COMBINING STATEMENT OF REVENUES' EXPENDITURES' AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30' 2OI9

Revenue Funds

Justlce Mlscellrneous Grants Grants

Health

Grrnts REVENUES Intergovcmmental revenucs Charges for services Investmcnt eamings

Misccllaneous Total rcvenues

$ 5,605,43t

Total exPenditurcs

$ 204,428 $ 849,120 $

593

5.898,970

204.428

4,640r761

ll0

703

849,230

6.952.628

457,153

5,097,914

33 l,133

33 I,t33

199,562

t99,562 44.676

s.948

s0.624

4.640.76t

244'238

794.234

s.679.233

t.258.209

(39.810)

s4.996

t.273,39s

OTHER FIN.ANCING SOURCES (USES) Transfers ftom other funds Opcrating transfers to othcr fundg

6,658,979 150,847 142,099

142,099

Exccss (defi ciency) of rcvcnues over

(under) cxpenditures

Grants Funds

150,847

EXPENDITURES Other public safcty and health Staffscrvices Police protcction Capital outlay

Totrl Other

37,861

fl30.661)

15,017

52,878

(70,013)

Q00.674\

Nct change in fund balances

1,127,548

(1,949)

1,125,599

FUND BALANCES, BEGINNING OF YEAR

7.261.358

1.949

7.263,307

FUND BALANCES, END OF YEAR

$ 8.388,906 $

See Indepcndcnt Auditor's Report.

t47

8.388.906

CITY OF AMARILLO, TEXAS PUBLIC IMPROVEMENT DISTRICTS COMBINING BALANCE SHEET SEPTEMBER 30,2019

Grecnwrys rt Hlllslde ASSETS Cash and cuh equivalents

Hcritrgc

Brcnnrn

The

Hillr

Boulcvrd

Colonicc

Tutburv

$ 497,900 $ 318,068 $

8,952 S 814,471 $

35,061

$ 497.800 $ 318.068 $

8.952 $ 814,471 $

35,061

Accounts recoivable

TOTALASSETS

LIABILITIES AND FUND BALANCES LIAEILITIES Duc to othcr funds - unrcsriccd ,dccounts Payablc Vouchers payablc

Total liabilitics

31,000 339

335

l4,l l3

816

339

3 1,335

l4.t l3

8r6

491.46t

286,733

8-952

800.358

34,245

497.46t

286,733

8-952

800.358

34,245

FUNDBALANCES Restrictcd for: Spccial purposcs

Total fund balanccs

TOTAL LIABILITIES AND FUNDBALANCES

s 407-800 3 318-068 3

See Independent Auditor's Report.

t48

I 0{t

tld d?l

?{ ortl

Polnt

Quril

Wert

Crcck

$ 208,558

10,232

Vlncverds Redctone $

8,362

I,t66 S 397,117 $

r.r00

1.450

2.?04

$ 2l t,262

s u.682 S 9-462 S

663

$ 2,300,510

673

5,927

1.166 S 391.177 S t.336 S 2.306.437

Totrl

Plnnecle

Townsqurrc

1,000

1,000 31,000

9,422

586

335

336

26,282

9,422

586

335

r,336

58,282

201,840

I1,096

9,462

l. r66

396,842

2,248,ts5

20t.840

l r.095

9,462

I,166

396,842

2.24E.t55

$ 2il-262 s

lt-682

SL6,

l166

S 10?.17? S

Sce Independent Auditor's Report.

r49

l.??rt

S2301t.4??

CITY OFAMARILLO, TEXAS PUBLIC IMPROVEMENT DISTRICTS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,2(}I9

REVENUES Chrrgcs for servicos Invcglncnt eernings

Greenwrys

Hcrllrgc

Brcnnln

Thc

rt Hllkldc

lllllr

Boulcvrrd

Colonleg

s 646,854

$ 16l,143 s

$ 1,054,712

Tutbury

15,296

619 647-473

l5l.l43

r.054-730

l6 to6

346,409

35,476

314993

9,946

Total o<pcnditures

346,409

35.4?6

374,993

9.946

Exccss (dcfi cicncy) of ttvcnues ovcr (under) cxpcnditurcs

30t.064

rzs-667

_67Wn_

6.3s0

Total rcrrcnuce

EXPENDITURES Parks

Bond issuancc cost Crpital outlay

OTIIER FINANCTNG SOURCES Isuurcc of longtcrm dcbt Pemium on bond

Transfcr ftom o0rcr funds Transfcr to odrcr funds Nct changc in fund brlanccs

(468.703)

042.338) 1s8,726

125,667

338.735

16r.065

338,735

l6l-066

s 497.461

s 286.?33

FUND BALANCES, BEGINNING

OFYEAR

211,034

6,350

n o(t

589.324

,? no{

8.952

589.324

71.895

PRIOR PERIOD ADJUSTMENT FUND BAI"ANCE, BEGINNING OFYEAR, RESTATED FUND BALANCES, END OF YEAR

See Independent Auditofs Rcport.

t50

8.952

S 800.358 S

34.245

Polnt

Qurll

Wert

Crcck

Vlncvrrdt

Townilurre

Rcdstono

Plnnrclc

$ t66,23t S

$ 52,00? $ 10,150 $ 7,950 $

673

Totrl

$ 2,116,016 637

166-231

613

2 I 16 ri53

869

337

832,206

s-494

869

??7

832.206

2.AS(t

(8)

t65.362

336

1,284,447

s2.007

l0-150

1.950

49,887

8,787

5A94

49.887

8-187

2.t20

t.363

(61t,04t) 2,120

1,363

2,456

(8)

165,362

199.720

9-133

7.006

t-t74

23 r.480

199-720

s 20r.840 s

1t.096

l-114

7-006

9.733

9.462

231.480

1.156 $ 396.842 S

See lndcpcndcnt Auditor's Report.

t5t

336

673,406

r.575.085 /e ea\

/224\

(336\

1-514-149

s 2.248.155

CITY OF AMARILLO, TEXAS SEIZURE FUNDS

COMBINING BALANCE SHEET SEPTEMBER 30,2019

Federal APD

Texrs NIrcotlcs

Locnl

Seized

ProperW

Prooerfv

Pronertv

$ 405,325

$ 223,764

$ 20,100

Total

ASSETS Cash and cash equivalents Prepaid items Due from other funds

602

602 7.228

7,228

TOTAL ASSETS

4 r 2.553

223,764

649,189

$ 20,702 $

657,019

LIABILITIES AND FUND BALANCES LIABILITIES Due to other funds - unrestricted Due to other governments Vouchers payable

Total liabilities

2,054-$

20,219

2,054 22,108 152,492

20.2t9

t76.654

602

1,889

150,580

1,912

t52.634

3.801

FUND BALANCES Nonspcndablc Prcpaid itcms Rcstricted for:

259.9t9

219.963

fi 19)

479.763

Total fund balances

259,9t9

219.963

483

480.365

TOTAL LIABILITIES AND FUND BALANCES

$ 4 2,553

Special purposes

s 223,764 $ 20,702

See Independent Auditor's Report.

t52

657,0 r 9

CITY OF AMARILLO, TEXAS SEIZURE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,2019

Texas

Federal APD

Local

Seized

Prooertv

REVENUES Investment eamings Seized property revenue

Total revenues

EXPENDITURES Police protection Capitaloutlay

Narcotics

Total

l8r

6,127

t24.948

2,019 92.402

128.875

94.421

l8l

223.477

t06,t37

59,136

t65,275

3,927

2t7.3s0

160,749

160.749

Total expenditures

265.886

s9.136

326.024

Excess (deficiency) of revenues over (under) expenditures

/t?enrl\

?5 285

t7s

(102,547\

Net change in fund balances

(138,01

35,285

t79

(t02,547)

397.930

184.678

304

s82.912

FIJND BALANCES'

BEGINNING OF YEAR FUND BALANCES, END OF YEAR

s 2s9.919 S 219.963

See lndependent Auditor's Report.

t53

_$_183_ _$_-4!0.38!_

CITY OFAMARILLO,TEXAS MISCELLANEOUS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30,20t9 Publlc

Llbrnrl LEOSE Crblc Photo Bush Court Trrlnlng Honelrnd Crpltrl Courl TcchnoloFr Sccurlty Prognn Sccurlty Frcllltls Enforccmenl Collecdon ASSETS Cosh ond cash cquivalcnts

$ 55,325 $ 7,44t $ 24,925 3 t,920 $

Accrucd intcrcst rcccivoblo lnvcstments, at fair values Duc llom other govornmgnts

TOTALASSETS

21,t97

s4ggggg

LTABILITIES AND FUND BALANCES

LIABILITIES Vouchcn payoblc Accounls poyablc

t9,673 t t,282,t48 $ 50,823

--t

?,447

Accrued cxpcnditures Dcposits Duc to other funds. unrsstrictsd

12,479

55,234 $ 338,t 80

t0,000

Advance ltom other funds

1.44?

Total liobilitios

rUND BALANCES Restrictcd: Special purposes

Totrl fund balanccs

TOTAL LIABILITIES AND FUND BALANCES

_Gt _5L33!-

--2292---381!!-!$JrL-r!.83L re.6?3 88E.734 t0.E23 -lgOZ;L _2!&_ _l9I -2!,92L -!rL $ 55.325 $ 7.441 $ 24.925 $ 23.317 $ 19.673 t r.2E2.r4E S 50.823 55.325

-------

See Independent Auditor's Repon.

r54

Llbrrty

Flood

Clvlc

Trurt

Hlard

Anrrlllo

Trurt

s 74,383

s 1,076p77

Ccntonnlrl Cclcbndon

Trr

Incrcnrcnl

lncremcnl

Rclnvslrncnt

Rclnvostmcnl 2,ona{-2

Tlnelll

t 20,674 t . .

$ 5t7,853 $ t44,0r9

856

I,250,000

-t-z!I!l- -t33zgl. i-:g!t!- -9-ll!9!!- -!-3993!- 3

793,534

84,t96

Tot.l

$ 4,153,93t 3,388

2,532 500p00

r "?95.066

r,710,000 2 t.39?

ttl-196

3 J-928-?r6

2,141

I1,400

s t 8,463

12.s02

8,662

21,164 1,268,933

1r6E,955

J1L9tL -?3JEL -$c.!tg506.850 1.058.878 _1!&_ -Lg$jgzg-

s 74383

t ? tr? tii

68,975

t76,t7l

t44.057

-29,9!L 20,674

$ fl?.853 -lJ1!9:t l-.19{4-

260,85;

2?0,856

t 1t6 177

r.3 r 0.522

1.595r80

r 8-463

1-3 l ?-041

1?00 ?r!\

r(3

?lt

t r(l I 6t3

t799 7t!\

63-731

2.611.673

1.206.066 S

84,196 3 5.928.7t6

See Independent Auditor's Report. 155

CTTY OF AMARILLO, TEXAS

MISCELLANEOUS SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 2OI9 Crble

LEOSE

Court Trrlnlng Technology Securl0 Progrrm Court

Crplrnl Frcllltlcr

Homelnnd SecurltY

Photo Enforcemcnt

REVENUES lntergovemmental revenues - operating

Citizen contributions Rcvcnue from participating to(ing cntities Chargcs for scrviccs Fines and forfeitures lnvcstnent esmings

23, 24

152,367

t27,358 ,263,2 l2

95,52 I

72.O97

127,358 95,52t

Total rcvenues

E)(PENDITURES

23,124

305,844 t75,062 39,478

Othcr public safety and hcalth Auditorium - Coliscum

152-367

r ttf 100

90,793

1,091,099

6l-620

12.800

Library Participant rccrcation Economic dwelopmcnt/touri sm Capital outlay

Total expenditures

305.844 t75,062 39.478

r52.4t3

r. I 03.899

Exccss (dcfi cicncy) of rcvenues ovcr (undcr) orpcnditurcs

(178,486) (79,54t) (t6,354\

(46)

l8t.4l0

oTHER FTNANCTNG SOURCES (USES) (30,000)

Trrnsfers to other funds

79.54t

Transfcrs from other funds

Total othcr financing sourccs and uses Net change in fund balanccs

FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR

(30.000)

79.54t

(178,486)

(6)

233.8rl

(16,354)

(461

4t,219

884

19.613

131.324

l?t

$ t9.6?3 s

888-734

(6) $ 24.925 (

s 55.325-$

t5r.4t0

See Independent Auditor's Report.

r56

Publlc

Trx

Llbrrry

lncrement

Relnvestmcnt Zonc #l

Relnvcstment

Bush

Librrry

Flood

Clvlc

Zoo

Centennlnl

Collccllon

Trusl

Hnzrrd

Amrrillo

Trust

Celcbrrtion

$$-$-$-$-

tt':

1,072

4t,768

t,072

tr"

ar*

Totrl

Zonc#2

t75,49t 9,001

973,620

,,,r,rri n'o',,untou; '

102,135

1,076,355 542,601 1,358,733 159.0t r

t02,735

3.32t.t92

94,014

"2.-

ttt"

r.067.694

1,702,276 33 t,248

33 t,248

l15 23,109 683,693

57,574

23,109 741,267

74.420 I t5

1.250

1.072

4t.768

331.248

23.109

683.693

57 -574

2-812-435

40.903

27,619

384.001

45.t61

448.757

(554,555)

(584,555) 79.541

(505.0r4)

(554.55 5)

1,072

r.250

4l-768

40.903

27-619

fi 70.554)

45.16 l

49,751

73, t33

l.0r7.t t0

465.941

I16,438 20,674

( 128.660'l

20-572

(299.214) S

5s.133 S 2-611.613

$ 50.823

?4-383 St^058.8?8 s505.850 st44.057

s 20.674

See lndependent Auditor's Report.

t57

156-257\ 2.667.c)30

This page left blank intentionally

r58

CAPITAL PROJECTS FUND

General Construction - To account for traffic engineering and other miscellaneous construction funded primarily by the general revenues of the City. This fund also accounts for costs of construction of various improvements to the City's parks, which in recent years have been financed primarily by general revenues, and in some instances by intergovernmental grants. The General Construction Fund is also used to account for general revenues designated for replacement of existing buildings, improvements and equipment, and for similar projects.

Street Assessments - To account for the construction of streets and alleys which are financed primarily by properly owner participation.

Street Improvement Fund - To account for improvements being made to major thoroughfares and the storm sewer system of the City financed by general revenues, augmented in some instances by property owner participation.

Golf Course Improvement Fund - To account for the portion of green fees designated for improvements to the public golf courses.

Solid Waste Disposal Improvement Fund - To account for costs of improvements to the City's solid waste disposal facilities, which in recent years have been financed primarily by general revenues. T-Anchor-Bivins Improvement Fund - To account for sales of City land, the proceeds of which are designated for future betterments to the historic Bivins home, which is owned and rented by the City to the Amarillo Chamber of Commerce and other community service organizations.

Civic Center Improvement Fund - To account for improvements to Civic Center Couvention Annex facilities, financed by rnotel tax receipts.

Animal Shelter Improvement Fund - To account for irnprovements to the Animal Shelter facilities.

Park Improvement Fund - To account for various Parks projects funded by the General Fund and other contributions and revenues.

GO Bond Construction Fund - To account for the corrstructiorr of street and public safety inrprovement projects as approved by voters irt the Novetnber 2016 bond election.

t59

CITY OF AMARILLO, TEXAS CAPTTAL PROJECTS FUND

SCHEDULE OF ASSETS, LIABILITIES, AND FUND BALANCES SEPTEMBER 30,2019

Golf Gcncrrl

Strcct

Conslructlon

Asge$menl3

Inprovemcnt

Fund

Courre lmprovement Fund

786,804

t 5,969

568.255 S r.287-470 S

15_969

ASSETS

CURRENTASSETS Cash and cash equivalents Rcstricted cash and cash equivalcnts Investment$ at fair valucs

2,432,435

568,255 $

337,5 I I 8,003, I 25

500,000

56,222 43.830

666

Rcstrictcd invcstments Due from othcr funds Due from oftcr govcrnmcnts Construction in progrcss Accounts rcccivable Accrucd intercst rcceivable

TOTALASSETS

s 10.873.t23 s

LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Vouchen payablc Accounts payablc Accnrcd cxpenditures Rcfrrndablc security deposit Due to other funds - unrcstrictcd

Total liabilitics

260,233 83,258 75,928

(3)

I10,5?5 30.000 29.997

419.4 t9

I 10,576

r0.453.704

457.679

1.287.470

( r 4.028)

r0.453.704

457.679

t.28?.4?0

il4.028I

FUND BALANCES Restricted for: Capital projcets Assigncd for: Capital projects Total fund balances

TOTAL LIABILITIES AND FUND BALANCES

$ t0-873-123 S

See lndcpcndent Auditor's Report.

r60

568.253 S 1.287.410 S

t5.969

Solld Wrstc

T-Anchor

Dlsposrl

Blvlng

Improvcncnt

lnprovcmcnt

Fund

1,971,512

Clvlc Center Improvcmcnt Fund

$ 233,608 $

Anlmrl Shcltcr

Prrk

GO Bond

lmprovcmcnt

lnprovcnrcnt

Congi

Fund

3,207 S 708,844 $

5,726

Totrl

26,421,089

7,735,622

6,000,000

13,735,622

33.163

460 7-245

t04-00t

12,002,095

3,498,970

t8-497

5.488.979

6,726,360 ?0,167,944

3,409,344

s 211-601 3 tr-178_729 S

499,620

56,682

3-20? S 708.844 S 32.t14.520 S

43,717

4,607,863 552,218

8,780

4,290

62.192.104

5,367,715

679,t92 88,998 I 10,575

fl)

552-ll7

4.290

6,250,000 6,280,000 I1,410,08t 12,526,480 10,626,612

10,626,612

5.484.689

233.607

5.484.689

233-607

r0.626.6 r 2

2?1 ri0R

S 1l 171.729 S

I ann o?q

7,707

708.845

21.024.439

39.639.612

3.207

708.845

21.024.439

50.266.224

7.207 S 708-844 532-414^520 $

See Independent Auditor's Rcport.

l6l

62.192.704

CITY OF AMARILLO, TE)6S

CAPITAL PROJECTS FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,2OI9

Golf Gencrrl Conctruction Fund

REVENUES Intergovernmental revenues

Strcct Asscrimcnt! Fund

$ 325,290 $

Strcct

lmprovcmcnt Fund

Coursc lmprovemcnt Fund

22t,989

Charges for serviccs

Construction participations Misccllancous Invcstment carnings

3,olo,o99 263 r 36

1.35 t

34.r l3

Total rcvenues

3,661,447

t.837.77t

34.1 r 3

EXPENDITURES Public Safcty Solid wastc Economic dcvclopmcnUtourism

Capitaloutlay

1,836,420

60,902

22t.989

782,t95 7,369

7.r90.876

r.850.025 r.052.883

7.980.440

1.850.025

Bond issuance costs Total cxpcnditurcs Excess (deficiency) of rcvcnucs

1.052.883

(4-318.993)

il2.254\ fl.0r8.770)

221.9E9

(1,566,262)

(263,862)

(25 r,r 88)

5,364,142

637,000

13,425

Total other financing sources and uses

3.797.880

373. r 38

Q37,763\

Net change in fund balanccs

(52r, I l3)

(t2,254)

(645,632)

(t5,774)

10.974.8t7

469.933

r.933. r 02

1.746

over (undcr) cxpcnditurcs

orHER FTNANCTNG SOURCES (USES) Transfcrs to othcr funds Transfcrs from other funds Proceeds from lnsurance Proceeds from issuance of long-tcrm dcbt Premium on bonds

FUND BALANCES, BEGINNING OFYEAR FUND BALANCES, END OF YEAR

s t0.4s3.?04 s

See lndependent Auditor's Report,

t62

4s7.6?9 S r.287.470 $

04.028)

Solld Wrste Dlsposnl

lmprovement f,'und

T-Anchor

Civic Center Improvement Fund

Blvlns lmprovement Fund

Animal Sheller lmprovemcnt Fund

Improvcmcnt Fund

Prrk

GO Bond Const

Totrl

Fund

325,290

22t,989 2,230,360

l5 I,380

7,229,259 60,902

r0l.E26

3.403

659.543

12.25t

824.400

1.902.043

101.826

3.403

2.889.903

12.25t

975.780

9.738.483

182,t95

3.n;

3.239

t7.828

r0.459 369. r 23

3 r .588.54 r

t7.805,277

59,956.725

372.362

3 r.699.000

11.805.211

60.759.987

o70-536\

(28.809.097)

t2.25t

06.829.497\

(5 1.02 1.504)

(364,249)

(4,443,877) 2,592,847 6,612,636

(t2,25I)

I I,042,5 l5

4.75 r.606

(r2.25l)

I,000,000

635.75 r 365,2 l5

3,403

(24,057,491')

5.n9.474

230,204

34.684.r03

$ 5.484.689 $ 233.607 $ r0,626.6r2

(6,901,689) I ,445,I

6,612,636

3,207

3.207

708.845

t0.753.462

( I 5,384,396)

(40,268,042)

36.408.835

90.s34.266

$ 708.84s S2t.024.439 S

See Independent Auditor's Report.

r63

t.445. t 0 t

s0.266.224

This page left blank intentionally

t64

INTERNAL SERVICE FUNDS

Fleet Seruices Fund - To account for the revenues and cost of operations of a central motor pool which includes all City-owned vehicles except fire trucks and buses. Vehicles are rented to using departments at estimated cost of usage. The original equipment was contributed to Fleet Services upon its organization on October 1,1973. Effective with the 1994/95 year, the City adopted a policy of financing additions, as well as replacements, out of Fleet Services' net earnings from user charges.

Information Senices Fund - To account for the revenues and costs of operations of the City's data processing system. Charges to using departments are based on estimated cost of providing the service, including depreciation on equipment. This fund was established Octoberl, 1979, upon transfer of the necessary equipment from the general fixed assets of the City.

Risk Management Fund - To account for funds accumulated from operating transfers and from assessments of the various City departments for the purpose of self-insuring liability, workmen's compensation, unemployment claims, and miscellaneous other risks.

Employee Insurance Funds - To account for self-insured medical and dental benefits together with life insurance for employees, retirees and covered dependents. Additionally, employee contributions to the flexible benefits plan and related expenditures are accounted for within these funds.

t65

CITY OF AMARILLO, TEXAS INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION SEPTEMBER 30, 2019 Flcct Scrvlccs

lnformntlon

Rlsk

Employee

Scwlccs

MNnf,qcmcnt

lnsurnncc

Totrl

ASSETS

CURRENTASSETS Cash and cash cquivalonts

lnvcstmcnts at fair valuc Receivables (net of allowanccs

4,423,605

E,2E0,060

996,377 3,323,364

12,0?3,575

4,092,420

4,073,409 3,99 r,520

$ r3,585,81

27,6r8,5r9

for uncollectiblcs) 307 20,146

59 1.88 r

I .538,816

2,t31,032

49,3t2

57,312

l 5,040

t4t,8t0

1.50 r .925

5l r ,954

50 1,1 92

870,710

209,t37

5,694

3,385,78 I 214,831

Accounts

Accrucd intcrcst Othcr accrugd revenue Duc from othcr funds Inventory ofsupplies at cost Prcpaid cxpcnses

t 4.464.067

Total cunent assets

374.640

8?6.213

s.212.482

r 8.142.593

r -2s0_853

r0-489.495

48.328.637

NONCT'RRENT,ASSETS

74,2rt

Rcstrictcd carh and cash cquivalcnts Capital asscts

?4,29t

lmprovements

768.005

5,895,23s

6,663,240

Accumulated depreciation E4uipmcnt Accumulatcd deprcciation Vehicles Accumulatcd depreciation Capital lcasc assct Accumuleted amortizrtion Construdion in progress Total copital osscts, net of

(269,453) 32t,299

(4,33 r,657)

(4,60r,r r0) t6,256

4,9?5

3,7t2,3t6

(t4,293)

(4,075)

(3,726,s99)

70,t75,t05 (46,2t4,557)

70,r75,r05 (46,2 r 4,557) 2,836,558 (84 r ,379) 98,384

accum. dcpreciation and amortization

Total noncunent assets

3,389,786 (3.3EE,66e)

(3 r 9,562)

4,353,68;

7,t90,243

(5eE,694)

( l ,440,073)

98 384

26.554.400

s_319.686

1.963

900

3 l -876.949

26.628.69t

5.3 19.686

I,963

900

31.95 t .240

10.490.395 $

80.279.877

2.62s.5s4

TOTALASSETS

s 4r-092.7s8 $ 10.552.168

DEFERRED OUTFLOWS

1.047.473 3

I 8.144.5s6

1.340.35t $

t5.373

222.3s7

LIABILITIES CURRENT LIABILITIES Vouchers payrblc Accounts payablc Accnred expenses Duc to othcr funds Estimatcd liability for incuned losses Cunent ponion ofcapital lcasc liability Cunent ponion of compensated abscnccs

438.4 t9

95,721

46,248

{

t34,769

t45,342

6l ,940 282,424 5.756

78,62 I 400,573 t 9,552 1

305,41E

80,1 85

4,260,559

r,809,223

674,701

729,250 1

80,1 85

ts.279

8 t.042

488

6,069,78? I ,454, t9 I 96.809

I . l 92.820

r .2 r 8.19s

4.6t0.6?9

2.488.642

9.5 t0.336

36,855

33,61 8

525,778

896,085

558,1 06

Total cunent liabilitics

NONCURRENT LIABILITIES Provision for compensatcd abscnccs, nct Estimatcd liability for incuned losses. net ofcurrent ponion Capital lease liability

25 r,313

203p92

|.473.027

2,405.368

Ner OPEB liability

,0?5,516 l.(146.914

883.2 l 9

2.t39.779

tl( tt4

I 0.667. r 57

t0,588,954

Nct pcnsion liobility

3,878,395 24.534

4,396,770

5,63?,358

TOTAL LIADILITIES

5.s8e,5e0 $

6.850.553 $ 15.277.836 $

DEFERRED INI'LOWS

354_800 S

Total noncunent liabilities

NET POSITION Nct investment in capital assets Rcstrictcd for dcbt scrvicc Unrcstrictcd

TOTAL NET POSITION

s 24,523,267

536.1 I I

2,018.233

?7 ,717

r.963

t07,949

2,04 r ,21 8

141 A77

4.166.q79

505.039

2t.201.t24

2,993.68r $

7s.872 $

2.48't.622

$ 36,195.84t $ 4,505,855 s

See Independent Auditor's Repon.

r66

994.s00

900

$ 26.544.363

7,642,299

?4.580.6 I 7

74,2rt

74,29t r r.598.283

30.71r.660

2,852,413 2,854.376

?64rrtt

s l .199.271

CTTY OF' AMARILLO, TEXAS INTERNAL SERVICE FUNDS COMBININC STATEMENT OF REVENUES, EXPENSgS,

AND CHANGES IN NT:T POSITION YEAR ENDED SEPTEMI}DR 30,20T9

Flcct

lnformntlon

Risk

Services

Scrviccs

Mrnlpcmcnt

OPERA'TING REVENI.IES Charges for services Internal chargcs

I 6.753.953

6,859,746

Employce lnsurnnce

Total

I,602,066

1.602,066

I 8,859.503

49.504,904

5,840,096

l7l

7.02t.702

26.30r.836

s6,947,237

,02t,702

Employee contributions Misccllaneous l 6.763.953

6.859.?46

Saluics, wagcs. fringcs

2,676,592

3,005,550

124,026

356,976

6,163,r 44

Supplies

3,204,03 r

445,723

735,676

45,041

4,430,477

Fucl and oil

2,552,736 r,907,026

29s,636

t,872,720

4,549,879

4,46r,599

r 8,5 r 9,897

22,98t,496

Total operoting revenues

OPERATING EXPENSES

Contractual scrviccs

474,497

2,552,136

Claims, nct of settlements Othcr chargcs

I,081.234

249,728

2,028,651

t,569,448

4,929.061

Dcprcciotion

7.490.808

807.383

332

6(t

8.298.s89

Total opcrating c*pcnscs

I ?.479.898

6.41 5.410

7.64s.920

22.364.154

53.905.382

Operating incomc (loss)

(7 r 5.945)

444.336

(624.2t8\

3.937.682

3.04r.855

NONOPERA'TING REVENTJES (EXPENSES) lnterest earnings

238,904

66,35 r

325,933

146,503

777,691

Changcs in value of investments

37,87t

t6,315

74,560

44,423

lntcrcst and fiscal chargcs Goin (loss) on propeny salcs

(42,5 r 5)

(68, r 66)

t73,229 (r r0,68r)

(225,858)

( r.287.980)

( t,5 t 3,838)

Miscellaneous rcvcnucs

234.274

Total nonoperating revenucs 242,676

0.2?3.420)

400.493

190.026

(439.325)

(473,269)

(829,084)

(223,725)

4, I 28,608

2,602,530

TO MI'NICIPALITY . CASII FROM MI.JNICIPALITY . CASII

3 r 2.466

21.843

Changc in nct position

( 160.803)

(807,24 I )

Q23.725)

4. I 28.608

2.936.839

36.t54.227

5.608.396

3.078. I 0 I

3.515.146

48.355.870

202.4t7

(295.300)

(555)

(93.438)

36.356.644

5,3 t 3.096

3.5 I 4.59 I

48.262.432

(cxpcnscs) lncome (loss) bcforc contributions and lransfcrs

TR,TNSFERS

Ng.T POSITION AT BECINNINC OF YEAR

PRIOR PDRIOD AD.IT'STMENT

334.309

'ror'AL Nr:'l PoslTloN AT BEGINNING OF' YEAR, RESTATED NE'T POSITION AT END OF YEAR

3,078, I 0 r

$ 36.195.84r $ 4.505.855 $ 2.854.376 $

See lndependent Auditor's Repon,

t67

7,643,199 $ 51,199,271

CIT'Y OT AMARILLO, TEXAS IN'I'ERNAL SERVICE FI.INDS COMBINING STATEMENT OF CASII FI,OWS YEAR ENDED SEPTEMBER 30,20I9

Flect Scrviccs

lnformation

Risk

Scrviccs

Mrnr(cmcnl

Employcc Insurencc

Totnls

$ 16,763,953

$ 6,859,916

$ 7,184,978

$ 25,93t,242

$ 56,740,089

(7,478,672)

(2,943,702)

(3,041,s42)

(3,s3 r,6r 5)

(r6,995,53r)

(2,543,038)

(2,784,30s)

(l10,841)

(346,764)

(s,784,948)

(3.834.977)

Q2,274.64t\

(26.r09.6r8)

l9?,618

(22t,77E)

7.849.992

(3.207.893)

(2 874 011\

CASI.I FLOWS TROM

OPERATING ACTIVITIES Cash received from City departmcnts Cosh payments to suppliers for goods and scrviccs Cash payments to employccs Cash payments for claims and loss adjustmcnts

Net cash providcd (uscd) by operating activities

6,742.243 1,r31,909

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES Transfen from other funds Amounts bonowed/repaid from othcr funds Amounts loaned to othcr funds Nct cash providcd (used) by noncapital fi nancing activities

312,466

334,309

21,843

0.50r.925)

(5 r 0.800)

(50r. t92)

(487) (693.976\

(l-l89-459)

(488.957)

(50 t. I 92)

rcrSt 463\

(487)

CASH FLOWS FROM CAPITAL

FINANCING ACTIVITIES (5,176,228)

(73,049)

(s,249,277)

Principal paid on bond maturities Principal paid on capital lcasc

(455,000) (42s,232)

(767,645)

(t,192,877)

Intcrcst cxpense Procecds from salc of cquipment

(5 r,243)

(68, r 66)

( r r 9,409)

5t2.393

Acquisition and construction of capital assets

(455,000)

s l 2_393

Net cash providcd (uscd) by capital financing octivitics

(5.595.3 I 0)

(908.860)

10,s00,000

r,750,000 (3,002,797)

I t,?50,000

6,700,000

30,700,000

(8,765,243)

(r r,982,290)

(2,499,792)

(26,250,t22)

258,39 r

69,439

335,761

r68.7 r 3

832,304

r.993.r48 il.183.358)

t03 47t

4.368.92 t

5 282 t82

t,950,622 (1,449,266)

(200,r03) 3,452,680

3,7s3,933

2.547.274 2.445.643

4,292,523

9,906, I 69

/6_504.170)

CAS}I FLOWS FROM INVESTING

ACTIVITIES Proceeds from salcs and malurities of

invcstmcnt sccuritics Purchase of investment sccuritics Interest and gains (losscs) on invcstmcnls

Nct cash providcd (uscd) by invcsting activitics Net incrcasc (dccrcasc) in cush and cash cquivalcnts

cAsH AND CASH EQtrlVAI.ENTS, AI'I}ECINNING OF YEAR

cAsu AND CASIT EQtIVALEN'I'S, A',r END oF YEAR (Rr:S'rRlC'r'ED AND tINRESTRICTED)

$ 4.497.896

$ 996.377 $ 4.092.420 $

See lndependent Auditor's Reporr

r68

620,729

4.073.409 $

r3.660.r02

CTTY OF AMARILLO, TEXAS

INTERNAL SERVICE FUNDS STATEMENT OF CASII FLOWS, CONTINI.IED YEAR ENDED SEPTEMBER 30,2OI9

RECONCILIATION OF OPERATING INCOME TO NET CASII PROVIDED (USED) BY OPERATING ACTIVITIES Opcruting income (loss)

Adjustments to reconcile operating incomc to net cosh provided by operating activitics: Depreciation (lncrcasc) dccrcasc in sccounts receivable

Flcct

lnformrtlon

Scrvlccs

Servlces

(7r5,945) $ 444,336 $ 7,490,808

(lncrease) dccrcasc in defcned outflows (lncrease) decrease in inventorics

Risk Manasement

(624,218) $

Totsls

3,937,682 $

3,041,85s

807,383

332

110

(370,594)

8,298,589 (207,148)

(r01,360)

(t,336,247\

(478,388)

(719,075)

163,276 (37,424)

24,780

822 (374,640)

(206,642)

(lncrease) decrease in prepaid cxpcnscs

Employcc lnsuruncc

25,602 (581 ,282)

Increase (decrease) in vouchcrs payablc

(235,479)

33,830

329

(93,638)

(294,958)

Increase (decrease) in accounts payable

44,525

(t,237)

224,734

49,238

Increase (decreasc) in accnrcd cxpcnscs

8,980

14,077

(3 r,484)

317,260 (8,346)

Increase (dccrcasc) in dcfencd inflows

(68,8r 5)

(t r4,498)

(6,3 re)

(r6,4r8)

(206,050)

(2 I,863)

(29,620)

238

7,901 (3,754,744)

(43,344) (3,754,744)

Increasc (dccrcasc) in provision for compcnsatcd absences Increase (decrease) in cstimated claims liabilities lncrease (decrease) in nct OPEB liability

14,834

t2,774

355

|,561

29,524

lncrease (decrease) in nct pcnsion liability

678,806

1,057,587

56,254

r 50,012

t,942,659

Net cash providcd (uscd) by operating activitics

626.622

626,622

Increase (decreasc) in IBNR accrual

s 61a22A7 S 1.r3t.909 S

t9?.6t8 S

(22t.778) $

7.849-992

(16,375) $

(74,560) $

(44,423) $

(t13,229)

NONCASH INVESTING, CAPITAL AND

FINANCING ACTIVITIES Dccrcases (increases) in fair values ofinvcstrncnls Transl'cn (to) ttom othcr funds - investments Capital lease

Amonization of bond prcmium

(37,87r) $ ?42,945

(7,566)

See Independent Auditor's Report. 169

742,945 (7,566)

This page left blank intentionally.

170

GENERAL FUND

The General Fund accounts for all unrestricted resources except those required to be accounted for in another fund. The revenues and expenditures of the Transit System, Solid Waste Department and the Auditorium-Coliseum are accounted for in this fund.

t7t

This page left blank intentionally

t72

CITY OF AMARILLO, TEXAS GENERAL FUND BALANCE SHEET SEPTEMBER 30, 2OI9 ASSETS

$ 5,083,107

Cash and cash equivalents Restricted cash and cash equivalents Investments at fair value Receivables (net of allowances for uncollectibles) Properry taxes Solid waste and other

I,584,121

34,911,144 228,374 3,543,141

Accrued interest

226,639

Other accrued revenue Due from other funds Due from other govemments

1,638,392

4,250,519 5,795,614 I,160,490

Inventory of supplies Prepaid items Advances to other funds

10,608 655.261

s 59.087.410

TOTAL ASSETS LTABTLITIES AND FUND BALANCE

LIABILITIES

$ 2,560,790

Vouchers payable Accounts payable

2,977,033 6,457,694

Accrued expenditures Deposits Due to other funds - unrestricted Due to other governments Unearned revenue - propefly taxes Uneamed revenues - other

14,661

705,488

929,t27 t 58,844

152,264

Total liabilities

13.855.90 r

FUND BALANCE Nonspendable:

Inventory

I,160,490

Prepaid items Property taxes Restricted for: Special purpose

10,609

69,530 I ,584, I

Commined for: Advances to other funds

655,26t

4t.751.499

Unassigned

Total fund balance

45.23 1.509

$ 59.087.4 r0

TOTAL LIABILTTIES AND FUND BALANCE

See Independent Auditor's Report. 173

CITY OF AMARILLO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SEPTEMBER 30,2019 REVENUES

Ta,xcs

Licensc and permits

t29,047,685 3,534,174 1,879,045

Interfund revenucs

4,902,180 78,098 36,460,898

Intergovernmental revenues Contributions - citizens Charges for services

4A43,0t1

Fincs and forfeitures Invcstmcnt eamings Othcr rcntals and commissions Miscellaneous

1,424,731 609,697

28r.290

Total revenues

t 82.660.809

EXPENDITURES Cunent General government

4,658,071

Staffservices Public safety and health Police protection Fire protection Othcr

I1,017,616 47,245,482 33,477,238 12,089,990 15,691,637

Strccts, traffic and engineering

Culturc and recreation Auditorium-coliscum Libraries

3,672,292

4,111,262 7,615,172

Parks

6,944,595

Participant recreation Solid waste Transit system Information technology Economic developmenVtourism Capital outlay

16,558,568

5,380,196 4,454,886 2,607,820

t97 t26 t75.72t.941

Total expenditures EXCESS OF REVENUES OVER

6,938,868

EXPENDITURES

oTHER FTNANCTNG SOURCES (USES) 250,064

Transfers from other funds Transfers to other funds

ilo.044.644\ (2.8ss.7 r 2)

Net change in fund balance

FUND BALANCE, BEGINNING OF YEAR

48.087.22t

FUND BALANCE, END OF YEAR

See Independent Auditor's Report.

114

45.231.509

CITY OF AMARILLO, TEXAS GENER.AL FUND

COMPARATIVE SCHEDULE OF REVENUES YEAR ENDED SEPTEMBER 30, 2OI9 Vrrirncc with

linrl budgct

Actunl

Dosltlve (neqnlivc)

Budscl

rcvcnuc

TAXES General property taxcs Ad valorem lax collections Pcnalty and interesl on delinquent taxcs Watcr & scwcr utility Gcncral salcs tax Mixed beveragc tax Hotel occupancy tax llotel occupancy tax rcbatc Gross receipls business taxes: Elcctric utility Tclcphonc utility

40,797,783 263,053 4,047,438

59,175,698 954,629 7,20E,732

(7s0.484)

8,222,t33 938,232 2,479,968 r,974,509 3.735.994

Gas utility

Cablc tclcvision Walcr & Scwcr utility Total taxcs

40,363,969 272,000 4,047,438 58,359,200 874,76s 7,077,029 (506.559)

433,8 r4

(E,947)

I 16,498 79,864

r3r,703 (243,925)

9.700.665 956,41I 2,984,762

( r,47E.s32)

r,989,7 r 9

( r 5,2 l0)

(r8,l7e) (504,?94)

3.810.748

(74.754\

129.047.685

t29.930.t47

(8E2.462)

99,379 774,298

100,000 8 r s,000

(62 r) (40,702)

42,t70

40,000

2,t70

t23,453

r06,3 r0

7,313

I,175

2,200 7.200

7,3r3 ( r.02s) (3,474)

r,5t0,925 t22,060 378, l4 r

t,7t7,280

( r26.35s)

140,840

LICENSES AND PERMITS Food and beveroge establishments

Liquor, bccr and winc licenses Rcstaurant pcrmits Food handlcr pcrmits Miscellaneous occupational Occupational and busincss Group care Transient bus licenses Solicitrtion permits

3,726

Building and structures Building pcrmits Elcctrical pcrmits Plumbing and gas pcrmils lleating ond air pcrmits Scwagc disposal pcrmits

Mobile horne parks Totol liccnscs and pcrmits

1 7,1

I r0,000

12.060

4 r 3,000

(34,859)

220,454 30.240

r 3s,000 218,000 24,300

5,840 2,454 5,940

3.534. I 74

3.(r88.290

fl54.1l6)

r 8,000

t,24E,77E 612.26'l

r, r 87,360

6t,4r8

657 il4

(44.847)

1.879.045

t.872.474

6.571

398.004

39E.004

279,4t9

299.024 567.018

( r9.60s)

(322,540)

INTERFUND REVENUES Airpon animal control

10,000

Communication scrviccs Sales to othcr I'unds Othcr intcrfund rchnburscntcnts Total intcrl'und rcvcnuc

( r0,000)

IN'I'ERGOVERNMENTAL REVENUES Gcncml govcrnment

Auditoriurn opcrating ass istancc Public safety ond health Emcrgcncy m0nagemenl pnnicipations Othcr

620, r 90

53.t72

Solid waste

52.460

State shared revcnucs

50.746

375.000 52.000

3.501 .36 l

3.15t.220

12d9 R50\

4.t02. l 80

5.442.266

(540.086)

78.098

r0l.8l6

(23.71 8)

( 1.254)

Trtnsit l:cdcral/stutc operaling assistance Total intcrgoverrrntenlal revcnucs

CONTRIBUTIONS FROM CITIZENS Donutions unrcstricted

See Independent Auditor's Report.

t75

CITY OF AMARILLO, TEXAS CENERAL FUND COMPARATIVE SCHEDULE OF REVENUES, CONTINUED YEAR ENDED SEPTEMBER 30,2OI9 Vnrinncc rvith finnl budgct nositivc (ncpntlvc)

Acturl Budqcl

revcnuc

CIIARGES FOR SERVICES Gcncral govcrnment Zoning, planning applicrtion fces Salc of city publications Construction and devclopment fccs Stoffservices lndirect cost reimbuffement Busincss typc fund administrativc fees Watcr & scwcr adminislrativc

r r 5,338

147,058

t87,220

(40. r 62)

t,7t9,720

l,809,590

(89,870)

1,457,E9E

r,457,898 I 75,790

175,790

Airport Olher administrativc fecs Weed mowing contract Weed bad debt adjustmcnt Wrccker seilice contract Fiscll agcnt fees Tcchnology fces Public safcty and hcslth Police liason officcr AECC porticipations

280,68 r

(259,346) 46,305 144,539

208,80r 1.004.070

t,029,t 14 r 54,200

EMS support Warrant fees Troffic occident reports Airport fire scrvice fee Firc inspcctions Animal shcltcr fccs Vilal stalislics fcc Miscellancous hcalth dcpartmcnt fccs Culture & rccrcalion

488,2 l4 36,4 r 6

t,9t4,289 102,896

r68,832 297,155 1.0t2 l,495,551 313,930

Auditorium rcntals Auditoriurn conccssions Auditorium ldvertising Auditorium box office

425.000 (380.000) 53,000 r60,629 r63,004 969,6r I t.003.672 I 54.200 533,300 43,000 l,9 r 4,289 r05,600

86,061

33,304 r 3,357 46,442 I .000,102 I E2,392

I,757,345 I I6.754

Golf othcr Swirnming pool fbcs Tennis ccntcr lbcs Wnrford Centcr Zoo admission lbcs Ril)c rlnge lies

(r44.3r9) t20,654 (6,695) ( r6,090)

45,797

34,459 25,442 (45,086) (6,584)

(2,704) r3,9r9

250,000

47, I 55

1,500

(488)

1,46E,790

26,761 43,726

r 54,9r

330.204

2.t l9

2,1t9 358,464

Library lote fees Library copy chorges Nonrcsidcnt library fees Bascball ficld rcntals Golf grccn fccs Golf mcmbcrship fccs

(36,785)

7E.553

339.500 95.000

I 8,964

30,000

3,304 r.35? (26,858) (374,898) (47,608) (276,390) (43,860)

12,000

73,300 r,375,000 230,000 2,033,735 160,6 t 4

(8.e3e)

t,226

64,451

7.008 73.000 262.750 l 23.500

Entry and lournarnsnt fccs

253,905

3 r t.185

(57.280)

Admission fees Solid rvrstc Collcction & disposal fees

I 8.882

l 7.300

r.582

17,3 15,293

17,638,000

(322,707\

3,224,4Q9

2,ss0,000 7 r,000 405,000

674,409

8.234 50. l 50 2 r6.980

Landlill chargcs

t9,476

Rccyclablc mrtcriols Forfcitcd discounts Transit Passcngcr rcvcnttc

442,694

(22.850)

(45.770) (59.04?)

(5 I,524)

37,6q4

Denrand rcsponsc

l 8.304

60.759 40.289

(42,625\ (2 I,985)

Misccllaneous transit rcvcnuc

47 928

298.94t

(25 r ,01 3)

36.460.898

3?.404.459

(943.56 I )

Totnl chargcs lbr scrviccs

l 18.t34

See I n d e p e n dffi't-lifiditoFFlEp o rr.

176

CITY OFAMARILLO,TE)(AS

GENEMLFUND COMPARATIVE SCHEDULE OF REVENUES, CONTINUED YEAR ENDED SEPTEMBER 30,2()I9

Vrrlrncc wllh

flnrl budgct

Actunl rovcnut

oortltlvc (ncqrtlvc)

Budrct

FTNESAND FORFEITURES

3,t?0 74,670 178,394 490.599

208,360 3r{tt 700

4.443.01I

s. r06.200

(663.r89)

t.424-731

9t0.751

5r3.980

1.424.711

910.75r

5 r3.980

Misdcmcrnor fccs

343,653

Parking lines Court Fccg OOer court rcvcnuc Misccllrncous fincs Strtc court costs

192,476

Total frnos and forfciturcs

TNVESTMENT EARNINGS htcrcat crningS Total invcstncnt crrnings

(6t t,25t)

3,771,300 328,900 t34,900 3,000

3.160049

Tnffrc fincs

93,040

14,753

57,576 170 ( I 8,370) (29,966)

(76.10r)

OTIIER RENTALS AND COMMISSTONS Amuscmcnt prrk commissions

87,536

96,483

(8,947)

Municipal building rents MPEV rcntr

263,891

238,590

25,301

Surfacc land rcnts Mlscallancour conccssions

36,144

36,620

47-t26

68.74t

(476), (21.615)

609.697

440.434

169.263

238,722 33,330

t76,580 40,000

62,142 (6,670) (5,617)

r7t,000

t7t,000

Total rennl/mmmissions

MISCELLANEOUS Usc ofmoncy and prcpery:

Miscollancous rcvcnues Salcs to oucidc utilides

5,617

Apprrisal district rtfunds 7,004 9,8?8

Dlgcounts csrncd Salc ofpropcrty and grins

5,504

(4,372) (7.644\

717 0L7

43.343

185,134,784

Q.473.975\

0.644\

Bad dcby'cxp rccovcry

?Rr ?00

Total misccllancous

TOTALREVENUES

1,500 14,250

t82.660,809 $

See Independcnt Auditor's Report. 177

CITY OFAMARILLO, TEXAS

GENEML FUND SCHEDULE OF EXPENDITURES BY DEPARTMENT (GAAP BASIS) YEAR ENDED SEPTEMBER 30, 2OI9 Salrries, wrges rnd

Contractual

frlnce bencfits

Suoolies

CENERALGOVERNMENT Mayor and council City manager Office of public communication City sccrctary Municipal court Judicial Office of Civic Hearing Planning and zoning

Total general government

2,669

services

5,3 l3

32,236

1,279,055

16,480

159,288

240,2t8

21,244

27,852

220,055 1,091,256 442,191 25,683

88,371

6t7

40,626 3,688

53,931

690.981

r3.616

30.732

3.991.107

189.349

349.5t2

546,279 945,340

26,542 40,664

594,250 174,713

552,610 325,060

t6,268

36,450

3,007

18,058

1,049,398

63,991

293,545

39,81 5

5,041

STAFF SERVICES Financial administration Director of finance Accounting

26t,097

Benefits Purchasing Central storcs

Information tcchnology Legal Personnel Human resources Safety and training Radio communications Occupancy Custodial opcrations Building maintcnance

Totalstaff seruices PUBLIC SAFETY AND HEALTH Police Police

Civilian personnel Total policc protcction Fire protcction Firc opcrations

Civilian personnel Total firc protcction

64t,222

172,370

153,428

293,873 285,200

13,2?8

21,474

9,655 403,634

I,069,730

42g,699

r.680-499

53 190

26,499 514.330

7.649.308

840.483

2.224.562

36,863,776 3.204.698

I,434,900

3,165,582

40.068.474

t.434.900

5.117.677

28,665,061 1.544.774

1,611,647

1,323,940 33,750

30.209.835

I .643. t65

|,357,690

l,968,g4g 2,236,586

42,515 439,112 43,206 86,257 45,192

r.952.09s

Other

Building safety Animal management and welfarc

249,663

Emergency servlces

4,l4l,l0g

AECC Environmental health

1,047,096 s0 712

Vitalstatistics Total othcr Total public safety and health

52,924 238, I 63 t 43,258

I1.596

t.278

9.694.t l4

667.878

1.280.166

79.972.423

3,745,943

7.755.533

Sce Independent Auditor's Report.

t78

573,462

27t,081

Page I of2

Totrl

charces 34,02

Totnl (GAAP)

Capital outlnv

Other

74,238

basis

74,238

9,030

3t7,073

26,932

1,212,745

1,476,172 295,119 317,073 1,212,745

5,943 32

49t,637

24.991

30,767 760.320

760.320

28.1 03

4.658.07r

4.658.071

E,766 6,486

1,175,837 1,167,203 265,380

2,639

I,175,83 7 1,167,203 265,380 610,314 348,764

4,454,986

4,454,886

25,824

1,432,759

1,432,758

13,41I

980,431

980,43 t

6,536

323,342 728,828

323,342

22,349

1,476,172

5,805

295,1 l9

4,283 4,996

18,520

30,767

6t0,3 t4 348,764

728,828 1,535,995

200.855

I,535,885 2.448.874

2.448.874

4,758,149

15.472.502

594,875 29,556

42,059,t 33 5. I 86.349

42,059,133 5.186.349

624,431

47.24s.482

47,245.482

248,276

31,848,924

3l,848,924

18.272

1.628.3 r 4

t.628.3 t 4

266.548

33.477.238

(6,666)

2,578,260 2,992,589 460,063

2,578,260

10,957

45,8 l0

114,270 271,534 21,360 1.524

2,992,589 460,063

4,737,062

4,737,062 2,708

1,256,906

65,r l0

447.832

12.089.990

r.338.8r r

92,8t2.7t0

2.708 2.708

See Independent Auditor's Reporr. 179

1,259,614

65.r t0 t2.092.698 92.8 r5.4 r 8

CITY OF AMARILLO, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BY DEPARTMENT (GAAP BASIS), CONTINUED YEAR ENDED SEPTEMBER 30, 20I9 Salarics,

Contractual

wages and

frinsc benefits

Supplies

services

STREETS, TRAFFIC & ENGINEERING 4,374,485 492,968 899,922

street maintenance

Trafiic engineering Traflic fi eld operations Public works Capital projects and development

Total streets, traffi c, cngineering

259,354 13,459

2,009,721

4,924,270 42,800 664,573

505, I 86

4,822

1.060.966

59.436

60, I 96 153,627

7.333.527

2.346.792

5.845.466

983,682 420,304

4t7,t78

t 68,216

12,528

272,844

4,756

lt2,02l

357,521

67,477 38,277 70,869

130,069

100,358 653,283

18,883 175,567

CULTURE & RECREATION Auditorium - coliseum Civic Center operations Civic Center administration Box office operations Civic Center sports Globe News Centcr Library operations

3,101,304

Parks Parks administration

33, I 88

125,437 I ,401 ,830

46,441

1,762,576 1,743

2,354,802

1,462,130

920,341

368,292

48.735

40.333

352,370 232,630 25,295

96,745 96,979 23,653

502,054 3,579,667

Park maintenance Senior serviccs Participant recreation Golf Operations Warford Center Zoo Swimming pools Tennis center Parks and recreation programs

Total culture and recreation

29,493

564.55 r

40, l 85

33,277 56,040 44,412 63,723

t3,046326

5,t I1.558

3.254.175

5,449,936 2.070.765

295,877 255.402

5,639,516 2.242.849

7.520.70t

551.279

7.882.365

2,190,052

403,0 r0

26,52t

892,0 l0

44,274

481.53 r

243,536 20,618 283.497

9,614 39.670

3.836,552

950,66 t

t20.079

SOLID WASTE Solid waste collection Solid waste disposal Total solid waste

TRANSIT Fixed routc Dcmand response

282,959

Transit Adrninistration Transit maintenance Total transit

ECONOMIC DEVELOPMENT 2.607,820

Tourisrn support

2.607.820

Total econom ic developrnent

TOTAL GENERAL FUND EXPENDII'URES

123.349.944

See Independcnt Auditor's Reporr, 180

$ 13.736.06s $ 30,039,sr2

Page2 oI2

Other Totnl

chrrqes

Total (GAAP)

outlrv

bnsis

42,875 41,139 11,522 5,819 64,497

9,600,984 590,366 3,585,738 576,023 1.338.526

,26 9

9,602,253 590,366 3,585,738 576,023 1.338.s26

r 6s,8s2

ls.69l^637

.269

t5.692.906

340,564 63,569 54,488

1,909,640 563,878 370,365

37,866

1,909,640 563,878 370,365 541,223 287,176

l8l,l08

4,111,262

8t2

541,223

287,t76

3,100

669,759

5,980

666,659

t22,641 4,122

6,866,714

6,966,714

8t,799

81,799

28,778

4,766,051 468,282 495,250 398,033 98,082

10,922 12,958 12,384

4,722 50,438

5,443

4,771,494 468,282 495,250 398,033 98,082 718,897

7t8.897 22.343.3t1

8.543

22.351,854

325,739 278,484 604.223

11,711,068

184,606

I1,895,674

184.606

16.743.t74

3 15,835

2,925,418 I,277,883

2,925,418

342,0t3

30.t 84

342,013 834.882

472.904

5.380. I 96

5.380. r 96

2,607,820

2.607.820

931,252

98,063

28,822

Crpitrl

8.399.294

4.847.s00

4.847,500 r 6,558.568

1,277,883 834.882

$ t75,524,8r5

t97.t26

See lndependent Auditor's Reporr

t8t

s 175.721.94t

CITY OF AMARILLO, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BY DEPARTMENT. BUDGETARY BASIS YEAR ENDED SEPTEMBER 30,20I9

Net Currcnt

Tolsl Currcnt Ycnr

Prid Prlor Ycrr

(GAAP Besis)

Encumbmnccs

Crnitrl Outlny

GENERAL GOVERNMENT Mayor and council City manager Office of public communication City secretary Municipal court

74,238 1,476,172

295,1 t9

295,1t9

317,073 1,212,745

26,49s

26,934

Judicial

49t,637

Office of Civil Hearing Planning and zoning Total general government

30,767 760,320

317,073 1,212,745 491,637 30,767 760 770

4.658.07 r

4.658.071

1,175,837 1,167,203 265,380

I,l 75,837

439

STAFF SERVICES Financial administration Director of finance

Accounting Benefits Purchasing Central stores

Information technology Legal Personnel Human resourccs Safety and training Radio communications Occupancy Custodial opcrations Building maintenance

1,167,203 265,380 610,314 348,764 4,454,886 1,432,758

6t0,314 348,764 4,454,886 1,432,758 980,43 t

323,342 728,828

12,000

6,914

980,431 323,342 728,828

2,710

1,535,885

2,510

t,535,885 2.448.874 t5.472.502

2.448.874

2,573

15.472.502

26.707

42,059,133 5. I 86,349

42,059,133 5,1 86,349

22,836

47.245.482

22.836

31,848,924

95,792

33,477,238

31,848,924 r.628.3 r 4 33.477.238

2,578,260

Emergency serviccs

2,992,589 460,063

AECC Environmcntal hcalth

4,737,062 t,256,906

Total staffserviccs

PUBLIC SAFETY AND HEALTH Police Police

Civilian personnel Miscellaneous police programs

Total police ptotection Fire Protection Fire operations

Civilian personnel Total fire protection

l ,628,3 l4

95.792

Other

Building safety Animal managcmont and wcllhrc

Vital statistics I'otal other Total public salbty and health

2,732

4,737.062 1 708

65,1 l0

1,259,614

14,274

65.1 r0

12.089.990

2,708

t2.092.698

2.0t0 r9,0r6

92,8t2,7t0

2.708

92.8 r 5.4 r8

137.644

See Independent Auditor's Report.

r82

Prge I of2

Encunbrnnccs

Totrl Actuil

rt End ofYcir

Eudlctnry Bnslc

$ 3 6,000

Vrrlrncc wlih Flnnl Budqct

Orlslnrl Budqct

Flnnl Budsct

1,475,733

I,392,505

82,700 1,478,180

33t,il9

340,013 399,971

342,952

8,462 2,447 I t,833

402,845

112,267

I,381,249

t,395,758

I83,0t3

553,407

555,909

74,238

290,578 1,212,745 491,637 30,767

82,694

.938 37.938

762.258

9r3.59;

9r9.530

64,172 (30,767) t57-272

4.669,075

5.063.438

5.t77.774

s08.699

I,l2l,l92

t,194A93

t 8,656

l,2l1,203

I,178,820

248,6 t 3

25 1,865

ll,617 (t3,5t5)

6,762

1,175,837 1,167,203 265,380 605,076

610,049

6t6,769

I t,693

348,764

362,98t

18,780

4,454,886 1,425,844

4,135,885

367,544 4,454,886

I,124,839

I,135,834

(290,010)

98 t,489

993,427

I,039,753

58,264

323,342

3 10,75 I

(8,987)

729,885

724,595

314,355 728,303

I,058 3,767

( I,582)

1,357

1,534,732

1,670,416

1,694,679

t49,947

158

2.446.459

2.755.t91

2.774.072

327.613

13.102

t 5.458.897

ts.269.t42

t5.74t.313

282.476

38,380 383

42,074,677

43,329,022 5,231,35?

43,280,201

1,205,524

5,186,732

5,268,704

81,972

38.763

47.261.409

48J6-bJ'',-

48.548.905

t.287.496

22,170

J ,775,302

3,689 25,859

.632.003 33.407.305

31,732,537 r.563.s r 8 33.296.0s5

32,024,888 r.580.4r 2 33.605.300

249,586 (5 t.59 t )

2,579,260 2,990,720

2,864,264

86;

2,573,009 3,100,618

t09,898

460,063

3,076,68 t 509,48 t

5t2,372

52,309

3,5t8

4,740,580

4,719,729

4,757,88 t

I 7,301

1,245,340

1,406,61 I

I,403,066

197.995 (5,25 t)

9,S0;

72.900

6t 172

62,057

157,726 ( t 0.843)

l4,l 8 I

t 2,087,863

t2.637.938

r2.409.003

321,t40

78.803

92.756.577

94.494.372

94.563.208

I ^806.63 I

See Independent Auditor's Report.

r83

CITY OF AMARILLO, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BY DEPARTMENT. BUDGETARY BASIS, CONTINUED YEAR ENDED SEPTEMBER 30,2019

Net Currcnt

Crpitrl Outlry

9,600,984 590,366 3,585,738 576,023

1,269

Totr! Currcnt Ycrr (GAAP Ilrsis)

Prid Prior Ycnr

9,602,253 590,366

I I,360 222

Encumbrrnccs

STREETS, TRAFFIC & ENGINEERING Strcct maintcnance

Traffic engincering Traffic ficld opcrations Public works Capital projects and dcvclopment

3.585.73 8

576,023

t.338.526

r.338.s26 r.269

t 5.691.637

Total streets, traffi c, engineering

23,672 35.254

r s.692.906

CULTURE & RECREATION Auditorium - coliseum Civic Center operations Civic Center administration Box office opcrations Civic Ccntcr sports Globe Ncws Ccnter Library opcrations

1,909,640 563,878 370,365 541,223

I,909,640 563,878 370,365 541,223 287,176

287,176 4,111,262

4,111,262

Parks Parks administration

3,1 00

666,659

669,759 6,966,714 8l ,799

6,866,714

Park maintcnancc Senior serviccs Participant Rccreation Golf Opcrations Warlbrd Center Zoo Swimming pools Tennis center Parks and recreation programs

81,799

Total culture and recreation

4,766,051 468,282 495,250 398,033 98.082 7r 8.897

5,443

22.343.3n I l,7l1,068

5,749 t 6,363

4,77 1,494

468,282 495,250 398,033 98,082 7 r 8,897

16,290

8.543

22.35 r.854

48,EE r

r 84,606

I 1,895,674

392,278

9t6 9,063 500

SOLID WASTE Solid waste collection Solid waste disposal Total solid wastc

4.847.500

8,205

t6.743.t74

400.483

2,925,418

I I,619

1,277,883

1,277.883

342,0 t 3

342.0 r 3

834.882

5.380. I 96

5.3 80. r 96

r r.6r9

2,607,820

2.607.820

(r4.000

2.607.820

64.000

4.847.500 r

6.558.568

r 84.606

TRANSIT Fixed route Demand response

Transit Administration 'Iransit maintcnancc

'[otal transit

ECONOMIC DEVELOPMENT '[ourisrn support

Economic dcvclopmcnt

Total cconomic development

TOTAL GENERAL FUND EXPENDITURES

$ r75,524,8t5

197,t26

$ 175 72t 94t

75t.522

OPERATING TRANSFERS: Operating J'ransfers to Othcr Funds

10.044.644

Operating'fransfers from Othcr Funds

(250.064)

TOTALS INCLUDING TRANSFERS

$ r85.3r9.395

10,044,644 (250.064)

s t97.t26 $ r85,5r6,52r

E--

See lndependent Auditor's Report. 184

75 r,522

Pngc 2 of 2

Encumbrnnccg nt End of Ycnr

Varirncc wilh

Tote I Acturl

Finrl Budgct

Finnl Budcct

Budgctrry Brsis

Originrl Budgct

10,335,706 684,589 3,894,802 506,659

9,739,445

104,391

688,465 3,906,597

98,321 320,859

5t 1,785

(64,238)

876

9,635,054 590, I 44 3,585,738 576,023 1.315.730

t.577.372

1.602.899

287-169

45.037

15,702,689

15.999. r 28

r6.449.19t

746,502

3,490 694

I,913,130

2,126,767 569,989 375,263 508,789

2,139,192

226,062

575,448

10,876

44,161

564,572 370,365 541,223 287,176

377,49t

7,126

509,939

(3 r,284)

107,988 I I I,176

393,5 l9

395, I 64

14,097

4,125,359

4,197,806

4,236,535

2,283 5,325

666,293 6,855,676

7,497,972

8l,799

112,977

145,t78

18,599 675,341 63,379

4,771,494

5,061 ,893

5,081,1I I

309,6t7

453,727 494,334 388,970 98,082

493,8 t 5

36,755 75,899

107,3 59

490,482 570,233 421,968 t 07,359

1.202

7t9.599

1.078.992

967,t95

247.596

28.826

22,33t,799

24.08?.823

24.233.304

r.90r.50s

I t.503,396

r 0,330,5 r 8

10,263,493

( I ,239,903)

4.841.995

4.755.677

4.778,090

(63.905)

r 6.345.39 t

r 5.086.195

r 5.04 r.583

( t.303.808)

2,g13,7gg 1,277,883

2,826,427

2,949,696

(65, I 03)

|,769,033

1,779,706

50 t ,823

1,735

2.700 2,700

4,468 4.468

5 13,50 t 7

562,555 496,726

694,992 ,531,017

32,998 9,277

346,481

424,387

427,364

834.882

t.t r6.755

I . I 20.834

80,883 285.952

5.373.045

6. t 36.602

6.176.600

803.s5s

2,543,920

2,671,948

t28,t28

2r0,874

:$ -:

$ 175. 81.293

10.044,644 (250.064)

$ t84.975.873

210.874

2.67t.948

2.67 t.948

2.543.820

r 79.808.648

7,890,756 ( r93.5 r5) r 87.505.889

See Independent Auditor's Repon.

r8s

r28.r28

I80.054.981

8,206,270

$ (1,838,374)

( r93.515)

56.549

I E8.067.736

4.873.688

3.09 I .863

This page left blank intentionally.

r86

STATEMENTS OX' WATER AI{D SEWER FITI\ID

This fund accounts for the provision of watcr and sowsr services to residents and commercial enterprises of the City and proximate arca. Watcr is obAined from a numbor of city-owncd wcll ficlds, as wcll as from an allocation of surface watcr from the Canadian Rivcr and underground wator from tlre northeast scctor of tho Panhandlc, both providcd by tho Canadian River Municipal Watcr Authority.

r87

CITY OF AMARILLO, TIiXAS WATER AND SEWER SYSTEM FTJND STATEMENT OF NET POSITION SEPTEMBER 30,20t9 ASSETS CTJRRENT ASSETS Cash end cash cquivalcnts Investments, st frir vclucs

3J, l 64,365

32,886,057

7,577,503 224,453

Accounts rcccivrblc, nct of allowanccs Accrucd intcrcst rcccivablc Other accrued rcvcnue Due fiom othet funds Prcprid cxpnses

5.073.586 1.030.428

t.603.474

ti {<O trt^

Totol cuncnt rsscts

NONCURRENT ASSf,TS 55,086,?51

Rcstrictcd cash and crsh cquivalcnts

67,494

Othcr noncurrcnt assct Copital asscts

2,040,262 t,713,516

Land

Contributcd right ofwuy cascmcnts Underground wrtcr ri ghts Accumulatcd dcplclion - undcrground watct rights Water supply contract Accumulatcd rmorliznlion - waier supply contract Pipclincs and plant Accumuluted deprecistion - pipelines and plont

58,332,683

(9,404,381) 50.336,389

(24.403.846) 683,446,448 (236.81 r.478) 4,860,698

Equipmcnt ond vchiclcs Accumulated dcpreciation - cquipmcnt and vchiclcs Construction in progrcss

(3.642.69s) 66.204.539 592.672.135

Totsl cspitrl asscts nct ofaccumulatcd dcprccintion

64?.826 380

Totrl noncurrcnt asscls

TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES

t s

Dcfensd outflows

TOTAL DEFERRED OUTFLOWS OF RESOURCES

731.386.246

8.278.493 E.27E.493

LIABILITIES CURRENT LIABILITIES s

Vouchers pryoblc

2,713,696

t,492,919

Accounts pnyable Accrucd cxpcnscs

I 1.920.23t

800,000 38,738

Duc to Other Funds Deposits

4.005.303

Consumcr sccurity dcposits Shorc ofwatcr authority dcbt. currcnt Bondcd debt cunent maurity Cuncnt portion ofprovision for compensated absenee$

5,837,260 l 1.770.000

t94.987 ?R 771 lOd

Toiol currcnt Iiobilitics

NONCURRENT LIABILITIES Bondcd dcbt. nct ofcuncnt

I 55.583,382

Water ruthority debt, net ofcurrcnt

J3,880.68 r

Othcr accrucd cxpcnscs Provision for compcnsotcd obscnccs. nct

2.57E.684

Nct OPEB liability

5,E93.036

663,576 8,462,8 t9

Nct pcnsion liobility Totol noncurrcnt lirbilitics

221,062,t78

TOTAL LIABILITIES

265.E35.372

4.393.280

4.393.2E0

DEFERRED INFLO}VS OF RESOTJRCES Dcfcrrcd inflols

TOTAL DEFERRED INFI,OWS OF RESOURCES NET POSTTION

Net investment in ccpitel ossets Rcstricted for dcbt scrvice Unrcstrictcd

412,J(r8,214 8,t 19,349 dA ?4L St4

TOTAL NET POSITION See lndependent Auditor's Report

t88

469.436.087

CITY OF AMARILLO, TEXAS WATER AND SEWER SYSTEM FUND STATEMENT OF REVENUESN EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED SEPTEMBER 30,2019 OPERATING REVENUES

$ 74,684,864

Utility sales and service

430,966 (83,919)

Tap fecs and frontagc charges Rents and miscellaneous

Total operating rcvenues

75,03 I ,91 r

OPERATING EXPENSES 15,180,072 1,644,628 3,955,978 15,245,320 5,269,514 11,642,064

Salaries, wages and fringe benefits Supplies Fuet and power Contractual services Water authority charges Other charges Depreciation

14.246.222

Total operating expenses

67,183,798

Operating income

7.848.1 r3

NONOPERATING REVENUES (EXPENSES) (29,745)

Gain (loss) on disposal of property Intergovernmental rcvenuc Intercst earnings Interest and fiscal charges

1,073,237

3,t24,262 (6.470.440)

Total nonoperating revenue (expenses)

(2,302,686\

Incomc bcforc contributions and transfers

5,545,427

2,098,739 (670.66s)

Capital contributions Transfers to othcr funds Change in net position

6,973,500

TOTAL NET POSITION, BEGINNING OF YEAR

462.429.987 32.600

PRIOR PERIOD ADJUSTMENT

TOTAL NET POSITION, BEGINNING OF YEAR, RESTATED

462-462.587

$ 469,436.087

TOTAL NET POSITION, END OF YEAR

See Independent Auditor's Report.

r89

CITY OF AMARILLO, TEXAS WATER AND SEWER SYSTEM FTIND STATEMENT OF CASII FLOWS YEAR ENDED SEPTEMBER 30, 2OI9 CASI'T FLOWS FROM OPERATING ACTIVITIES Cash rcccivcd liom third partics Ccsh paymcns to supplicrs for goods and scrviccs

$ 75,340,604 (t0,247,703) ( r4.5 r 8.465)

Cash paymcnts to employccs Net cash providcd (uscd) by opcrating activitics

30.574.436

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITTES Amounts losncd to / bonowcd from othcr funds lntcrgovemmental rcvcnuc

( r 70,64s) t,073,237

Transfcrs to othcr funds

(6?0-66S)

Nct cash providcd (uscd) by noncapital finuncing octivitics

23t.927

CASH FLOWS FROM CAPTTALAND RELATED FINANCING ACTIVITIES Acquisition and construction ofcapital ascs

(3 1,047,544)

Capital grants receivcd Principal paid on bond maturities Principal paid on proportionate share of water Authority debt

t,924,662 (r r,7s0,000) (5,587, r25)

Intcrest expcnsc

(7,299,466)

Procccds from solc ofcopitsl assets

336.205

(s3.423-268\

Net cash provided (uscd) by capital and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds ftom sales and maturities of investment securities Purchase of investment securities

32,750,000 ( 16,309,r 73)

2.797.278

Intcrcst ond goins on invcstments

Net cash providcd (used) by investing activitics

I 9.238.t05

(3.378.800)

Net decrease in cash and cash equivalcnts

CASH AND CASH EQUIVALENTS, AT BEGTNNING OF YEAR

93.629.9 t6

CASH AND CASH EQUIVALENTS, AT END OF YEAR (RESTRTCTED AND UNRESTRTCTED)

$ 90,25r,1r6

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating income Adjustments to reconcile operating income to net cash providcd by operoting activities: Deprcciation and amo(ization (lncrcasc) decreose in occounts reccivoble (lncrcasc) dccrcrse in defcrred outllows (lncrcosc) dccrcasc in other occrued revenue (lncrcasc) dccrcssc in prcpaid cxpcnscs lncrcosc (dccrcasc) in vouchcrs payablc Incrcasc (dccrcasc) in accouns payablc Incrcosc (dccrcasc) in accrucd opcrating cxpcnscs

7,848,r l3

t4.246,222

(l 10,672) (2.724,4t6) 322,0s0 I,617 (57,239)

(220,254)

lncrcase (dcceasc) in dcferred intlows

7,E08,408 (39 r.0 r9)

lncrease (decrease) in customer deposits Increase (decrease) in provision for compensated absences

( r 6s,7ss)

97.3t5

Incrcase (dccreuse) in net OPEB liability

85,237

Incrcosc (dccrcusc) in nct pcnsion liability Incrcosc (dcccasc) in othcr accrucd cxpenscs

3,862,8 l 6

Q7,9871

$ 30.574.436

Net cash provided (used) by operoting, cclivities

NONCASII INVESTING. CAPITAL AND FINANCING ACTIVITIES Amonizrtion of bond prcmiums lncrcascs in fair values ofinvestmcn$

(7s2,87 r )

(329.678)

lnterest expense capitalized Copital contributions

t74,016

lnvestment premium/d isoount amorliz0lion

( r0, r 50)

See lndependent Audito/s Report.

r90

CITY OF AMARILLO, TEXAS WATER AND SEWER SYSTEM FUND SCHEDULE OF OPERATING REVENUES YEAR ENDED SEPTEMBER 30, 2OI9

UTILITY SALES AND SERVICE

Water metered salcs Scwcr charges Industrial waste charges

48,906,889 23,765,730

l76,9g6

Forfcitcd discounc Salc of rcclaimed water

1,333,844

Water service charges Net loss on bad debts Lab fces

7t3,819 (948,984) 114,374

Liquid waste disposal

122.890

499,316

74,684,864

Total utility salcs and scrvicc

TAP FEES AND FRONTAGE CHARGES 232,827 93,201

Water tap fccs Sewer tap fccs Water frontagc charges Sewcr frontagc charges Greasc trap fccs

10,550 3,013

9t.375 430,966

Total tap fccs and frontage chargcs RENTS AND MISCELLANEOUS

(83.9r9)

Rents and miscellaneous

(83.919)

Total rcnts and miscellaneous

$ 75.03 t.91 I

TOTAL OPERATING REVENUE

See Independent Auditor's Report.

r9r

CITY OFAMARILLO, TEXAS WATER AND SEWER SYSTEM FUND SCHEDULE OF OPERATING EXPENSES BY DEPARTMENT YEAR ENDED SEPTEMBER 30, 2OI9

Srlrrles, Wngcs & Fringc Bencfits

Fucl rnd Power

Supplies

WATERAND SEWER SYSTEM FUND DEPARTMENT

Water production Water transmission Surface watcr treatmcnt Water distribution Water - general Wastewater collection Wastcwater trcatment

600,201 487,503 1,754,005 3,159,098

41,820 34,108

,l41,080 91,559

$ 1,546,580 l,2og,2g7 66,399 823

1,928,231 1,283,994

189,018 403,099 180,256

Utility billing

2,047,377

228,42

Director of utilities - administration Capital projects development and engineering

347,942 1.184.r05

20-196

2,397,616

Environmental laboratory

179,080 931,021

23,778

Sewer - general

Total operating expenses

15,045

$ 15.180.072 $ r.644.628 S 3.955.978

Scc lndependent AuditoCs Report. 192

lilrtcr Authorlty Chrrqcr

Sonrlcoc

s 5,269,514

Othcr Chrroa:

Contrrcturl

676,689

234,022

17l,l97

rcl,W

549,379 1,424,590

322,920

88,650 102.076

62,295 7,059,316 53,780 369,099 116,438 3,164,651 3E,317 12,219 47.080

$ rs.245.320

$ r 1.642.064

lu,942 9,813,027 1,098,366 147,353 1,049,051

Drprtclrtlon/ Anortlzltlon

Totel Currcnt

$ 3,856,226

s 6,955,538

2,946,099 706,505 2,359,038

5,009,120

2,006618

14,169,754

2,184,368

713?31569

t07,483

I,109,802 7,097,403 7,184,263

I,E59,302 3,164,651

52,612

3,415,799

27,2U

491,140 1.3s3.451

s 14.?A6.222

See Independent Auditofs Report.

r93

Ycrr

-gll!!tggg.

This page left blank intentionally

t94

STATEMENTS OF DRAINAGE UTILITY FTTND

The Drainage Utility Fund provides for a dedicated funding source for the operations and maintenance of the existing storm-water system.

r95

CITY OF AMARILLO, TEXAS DRAIN.AGE UTILITY FUND STATEMENT OF NET POSITION SEPTEMBER 30,20t9

ASSETS

CURRENT ASSETS Cash and cash cquivalents Investments, at fair values

2,343,651 5,263,170 910,813 500,000

Accounts receivable Due from other funds

Total current asscts

9.0 r 7.634

NONCURRENT ASSETS 69,768

Restricted cash and cash equivalents Capital assets Land Contributed right of way easemcnts Infrastructure Accumulatcd dcpreciation - infrastructure Equipment and vehicles Accumulated depreciation - cquipmcnt and vehicles Construction in progress Total capital assets net ofaccumulated depreciation

2,010

771,594 12,365,644

(6t2,t l9) 34,348

(20,699) 8.732.752 21,273,530

2t.343.298

Total noncurrent asscts

TOTAL ASSETS

$ 30,360,932

DEFERRED OUTFLOWS OF RESOURCES Defered outflows

120.904

TOTAL DEFERRED OUTFLOWS OF RESOURCES

329,904

LIABILITIES CURRENT LIABILITIES I t 6,463

Vouchers payablc Accounts payablc Accrued expenses Accrued interest Bonded debt current maturity Cument portion of provision for compensated abscnccs

t 80,357

72,615 29,433 515,000

t7.072

Total current liabilities

930,940

NONCURRENT LI,ABI LITI ES Bondcd dcbt net of current Provision for cotnpensated absenccs, net Net OPEB liability Net pension liability

9,060,740 22,674

Total noncurrcnt liabilities

9.t38.57r

5?8,999 476,159

TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Defcrrcd inflows

10,069

t4?,8t7

TOTAL DEFERRED INFLOWS OF RESOURCES

t47,8I7

12,697,790

NET POSITION Net investment in capital assets Restricted for debt service Unrestricted

69,768 See Independent Auditor's Report.

7,705,950

$ 20.473.s08

TOTAL NET POSITION r96

CITY OF AIVIARILLO, TEXAS DRAINAGE UTILITY FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED SEPTEMBER 30,2019

OPERATING REVENUES s

Drainagc utility asscssmcnts Forfeitsd discounts

5,481,632

t00.547 5,582,t79

Total operating rcvcnues OPER.ATING EXPENSES Salarics, wages and fringc bcncfits

1,295,842 144,769 882,488 475,056

Supplics Contractual serviccs Other chargcs

165.056

Dcprcciation Total operating expcnscs

2.963.2n

Opcrating incomc (loss)

2,618,968

NONOPERATING REVENUES (EXPENSES) 201,484

Intercst camings Sales to othcr dcpartmcnts Intcrcst and fiscal chargcs

12,5E3

o39.733\ (25.666)

Total nonoperating revenuc (expcnscs)

2,593,302

Income bcforc contributions and transfers

508,440

Capital contributions Transfers from other funds Transfcrs to othcr funds

t47,210 (35.500)

Change in nct position

3,213,452

TOTAL NET POSITION, BEGINNINC OF YEAR

17.260.087

/?l\

PRIOR PERIOD ADJUSTMENT

TOTAL NET POSITION, BEGINNING OF YEAR, RESTATED

t7.260.0s6

s 20-47! s08

TOT.AL NET POSITION, END OF YEAR

Sce Indcpcndent Auditor's Report.

t97

CITY OF AMARILLO, TEXAS DRAINAGE UTILITY FUND STATEMENT OF CASH FLOWS YEAR ENDED SEPTEMBER 30,20I9

CASH FLOWS FROM OPERATING ACTIVITIES Cash received from third parties

$ 5,036,709 (1,421,61l)

Cash payments to suppliers for goods and services Cash paymcnts to employees

il.239.562\ 2.375.s36

Nct cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

t47,2t0

Transfcrs from other funds Sales to other departments Transfers to other funds Amounts bonowed from other funds

12,5 83

(35,500) (s00.000) (375-707\

Net cash providcd (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING .ACTIVITIES Acquisition and construction of capital assets Principalpaid on bond maturities

(2,932,536) (510,000) (246.305)

Interest expense

(3.688.841)

Nct cash provided (used) by capital and related financing activities CASH F'LOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investment securitics Purchase of investment sccuritics

6,250,000 (5,753,050) 159.484

Intcrest and gains on investments

656.434

Net cash provided (used) by investing activities

Nct increase (decrease) in cash and cash cquivalents

( I,032,578)

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR

3.445.997

CASH AND CASH EQUIVALENTS, AT END OF YEAR

(RESTRICTED AND UNRESTRICTED) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BV OPERATING ACTIVITIES

s 2.413.419

Operating income (loss) Adjustmcnts to reconcile operating income to net cash provided by operating activities: Depreciation and amortization (lncrease) decrease in accounts receivable (lncrease) decrcase in defened outflows Increase (decrease) in vouchers payablc Increasc (dccrease) in accounts payable

$ 2,6 t 8,968 165,056

(545,470) (201 ,453) 18,971

61,73 I 14,072

Increase (decrease) in accrucd operating expenses lncrcasc (decrease) in deferred inflows

(26,s06)

(t5,729\

Increase (decrease) in provision for compensated absences Increase (decrease) in net OPEB liability

8,374 277.522

Increase (decrcasc) in net pension liability

$ 2.37s.s36

Net cash provided (used) by operating activities

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Amortization of bond premiums

(4,94 t) 3,616

I nvestment premium/discount amortization

See lndependent Auditor's Report.

r98

AIRPORT FTINI)

This fund accounts for tho operation of tho Amarillo Intcrnational Airport. In addition to providing runways, a passengcr terminal and related faoilities, tho Airport includos improvomonts built by thc fedoral governmont for an air forcc basc on land which was returncd to tho City in 1967 and 1970. These facilitics, togcthcr with latcr additions, are loased to commorcial tonants for warohousing manufacturing and aircraft-rclated activitics.

r99

CITY OFAMARILLO,TEXAS AIRPORT FUND STATEMENT OF NET POSITION SEPTEMBER 30,2OI9 ASSETS CURRENT ASSETS

I,955,123 4,509,380

Cash and cash equivalcnts

Invcstments at fair value Reccivablcs (nct of allowances for uncollcctibles) Accounts Accrued interest Othcr accnted rcvenue

92,454 12,356

228,8t3 23,650 4.313.086

hepaid cxpcnses Due ftom othcr govcrnmcnts

I 1.134.862

Total cunent asscts NONCURRENT ASSETS

44,330

Resuicted cash and cosh equivalents Capital assets Land Runways, buildings and improvcrncnts Accumulated depreciation - runways' buildings and improvements Equipment and vehiclas Accumulatcd dcprcciation . equipmcnt and vehicles Constn'uction in progrcss

2,777,341 159,1 10,945

(102,189,99t) 8,420,400 (5,006,499) 16.199.682 ?9-3 I t-878

Total capital assets, net ofaccurnulated depreciation

79.356.208

Total noncuncnt assets

$ 90.49r.070 $ l.t73.0rs

TOTALASSETS DEFERRED OUTFLOWS OF RESOURCES Defened outflols TOTAL DEFERRED OUTFLOWS OF RESOURCES

t.173.015

LIABILITIES CURRENT LIABILITIES $

Vouchcrs payablc Accounts payable Accntcd cxpcnses Deposits Bonded debt cunent maturitv Cunent portion ofprovision for compcnsated absences Total cunent liabilities

866,744 440,947 I 89,839 27,323 1,9?3,552 25.424 3 523-829

NONCURRENT LIABILITIES

178,557

Provision for compensated absenccs, nct Net OPEB liability Nct pension liability

I,261,041 r.807.908 3-247.506

Totol noncunent liabilitics

TOTAT LIABILITIES

6.77r.335

DEFERRED INFLOWS OF RESOURCES Dcfcncd inflows

477.956

TOTAL DEFERRED INFLOWS OF RESOURCES NETPOSITION

Net investment in capital asseu Rcstricted for debt service Unrestrictcd

477.956 77,339,326 44,330 ?.032. I 38

TOTAL NET POSITION

See Independcnt Auditoy's Report.

200

84.414.794

CITY OF AMARILLO, TEXAS AIRPORT FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED SEPTEMBER 30,2019

OPERATING REVENUES

Airficld fccs and commissions

Terminal building revcnuc Othcr building rcvenuc

894,784 8,020,295

t.741.376

Total operating revenues

10.656.455

OPERATTNG EXPENSES Salaries, wages and fringes

3,62?,273

Supplics Fuel and power Contractual scrviccs Other charges

525,439 512,020 I,731,353 2,970,139 5.267.590

Dcprcciation Total opcrating cxpanses

14,633,814

Opcrating loss

(3,977,359')

NONOPERATTNG REVENUES (EXPENSES) Passenger faci lity chargc Intcrcst earnings Capital grants

1,398,694 158,957

2,713,921 26,043

Changc in value of investments Interest expense Other miscellaneous revenue

16,583

t38,432 4.452.530

Net nonoperating revenues (expenses)

475,171

Net loss before contributions

CAPITAL CONTRIBUTIONS

3,815,168

Chqngc in net position

4,290,339

NET POSITION AT BEGTNNING OF YEAR

79.405.6t6

PRIOR PERIOD ADJUSTMENT

7t 8.839

TOTAL NET POSITION, BEGINNING OFYEAR, RESTATED

80.t24.455

NET POSITION .AT END OF YEAR

See Independent Auditor's Report.

20t

84.414.794

CITY OF AMARILLO, TEXAS AIRPORT FUND STATEMENT OF CASH FLOWS YEAR ENDED SEPTEMBER 30, 20I9 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from third panics

Cash paymcnts to supplicrs for goods and services

10,795,084 (5,065,2 I 9)

Cash payments to employees

(3.4 t 3.763)

2.316.102

Net cash providcd (uscd) by opcrating activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash payments received for passenger facility charge

r.398,694

Net cash provided (used) by noncapital financing activitics

1.398.6,94

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Principal paid on bond moturities

(7,611,932) ( I,740,000)

Copital grants received

3,599,325

Interrst expensc

( r 31.023)

(5.883.630)

Net cash provided (used) by capital and related financing activitics

CASH FLOWS FROM INVESTING ACTTVITIES Proceeds from sales and maturitics of invcslmcnt sccuritics Purchase of investment securitics

8,250,000 (7,260,589) t62.603

Interest and gains on investments

Nct cash providcd (uscd) by investing activities

1.152.014

Net increase (dccrcasc) in cash and cash equivalents

( I,016.820)

CASTI AND CASH EQUIVALENTS,

AT BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS, AT END OF YEAR

(RESTRICTED AND UNRESTRICTED)

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASII PROVIDED BY OPERATING ACTIVITIES Opcrating incomc (loss) Adjustments to reconcile operating income (loss) to nct cash provided (uscd) by opcrating activitics:

3.0r6.273

(

I 9S9 45?

(3,977,359)

5,267,590 69,228 59,120

Dcprcciation

(lnoease) decrease in accounts rcccivablc (lncrease) decrease in othcr accrucd (lncrease) decrease in prepaid cxpcnscs (lncrcasc) dccrcase in deferred outl|ows Incrcasc (dccrcasc) in vouchers payable lncrease (decease) in accounts payablc

25,2t5 (645,305) 576,922

270,6t4 (r99.0r9)

lncrcasc (dccrcasc) in accrucd opcrating expenses Incrcasc (decrease) in deposits receivcd (lncrease) deqease in dcfcrrccd inflows Increase (decreose) in provision for cornpcnsatcd abscnccs

28t (94,881) r2,882 r 8.239

lncrcasc (dccrcasc) in nct OPEB obligation lncrcase (decrease) in net pension obligation

922,575

Nct cnsh providcd (uscd) by opcrating activities

2.3r6.r02

( r 36.492)

NONCASII INVES'I'TNG, CAPITAL AND FINANCING ACTIVITII'S Bond prcmium amortization Decrcase ( increase) in fair valuc of invcstnrcnts

(26,043)

See lndepcndent Auditor's Report,

202

CITY OF AMARILLO, TEXAS AIRPORT FUND SCHEDULE OF OPERATING REVENUES YEAR ENDED SEPTEMBER 30, 2019

AIRFIELD FEES AND COMMISSIONS $

Landing fees

Miliary fuel flowage commission

?58,025 136,759 894,784

Total airficld fccs and commissions

TERMINAL BUILDING REVENUES 2,419,152 218,650 122,416 2,132,619 3.127.458

Airline rentals Rcstaurant commissions Othcr terminal building rentals Car rental agencics Auto parking concession Total terminal building rcvcnucs

8.020.295

OTHER BUILDING REVENUES Lease rentals

508,980 302,580 455,682

Bell Helicopter Krams, Inc. Leading Edge Fixed basc operator Other building rentals Ground rentals Advcrtising commissions

192,456

u3,178 38 s00

1.74t.376

Total other building rcvcnucs

$ t0.6s6.455

TOTAL OPERATING REVENUES

See Independcnt AuditoCs Repon.

203

This page left blank intentionally,

204

COMBINING SCHEDULES Grant Programs The City participates in the following types of federal, federal-pass-through and state financial assistance programs, rnany of which benefit the entire 26-county region known as the Panhandle of Texas:

HUD Programs: These grants, funded by the U. S. Department of Housing and Urban Development, include both block grants and housing and emergency shelter assistance grants for the benefit of low and moderate-income persons.

Public Health: These funds account for grants received for public health purposes within the city-bicounty public health district, received primarily through the U.S. Department of Agriculture, U.S. Department of Health and Human Services, and Texas Department of State Health Services. Justice: These grants are received from the U.S. Department of Justice for assistance in both local and Panhandle area crime control, as well as from the Department of Transportation for traffic safety purposes.

Other: The City's transportation planning department administers grants from the U.S. Department of Transportation for general transportation planning. The City's emergency management department administers grants from the U.S. Department of Energy for planning with respect to the Pantex plant east of the City. The City occasionally receives assistance from various outside sources to offset the cost on the City to respond to disasters. The City's parks department administers a summer lunch program for low-income children funded by the U.S. Department of Agriculture. Agency and Private-Purpose Trust Funds The City accounts for the assets of the following other parties

Agency Fund

Civic Center Operations: Accounts for individual events at the City of Amarillo Civic Center Funds are held in these accounts until events occur and are balanced and closed out. Private-Purpose Trust Funds Centennial Parkway: Donations for trees and landscaping along Airport Boulevard.

Indigent Dog Bite Victim: Donatiorrs for health-related services for qualifying indigent dog bite victims.

Amarillo Industrial Development Corporation: Prornotion and development of comtnercial, industrial and manufacturing enterprises to promote and encourage employment and the public welfare.

205

CITY OF AMARILLO, TEXAS HOUSING AND URBAN DEVELOPMENT GRANTS COMBINTNG SCHEDULE OF ASSETS, LIABILITIES, AND FUND BALANCES SEPTEMBER 30,20I9

Housing

Community

.Asslstrncc

Development Block Grant

Pryments Progrom

ASSETS Cash and cash cquivalents

Partnership

Progrrm

487,013 $

26,39t

Accounts receivable Duc from othcr funds Due from other governments Prepaid itcms

TOTAL ASSETS

108,274

Home lnvestment

176,882

1.547 S

43,954 70,649

47,758 3,569 456

340,570

s38.796 $

45s.173

222,tt7

47,110 $

40,361

t83,713

33,973

56,692

69.t62

8.021

t05.716

300.t30

82.355

455,174

LIABILITIES AND FUND BALANCES

LIABILITIES Accounts payable Accrued cxpenditurcs Duc to othcr funds - unresricted Due to othcr govcmmcnts

145

70,64;

Unearned revenu€ Vouchers payablc Toral liabilitics

FUND BALANCES Nonspendablc:

456

Prcpaid items Rcstrictcd for:

ll,4l?

Special purposes

430,437

(l)

Committed for:

25.548

Compcnsatcd abscnccs

Total fund balances

TOTAL LIABILITIES AND FUND BALANCES

I I,417

456.441

r.s47 $

s38.796 $

See Independcnt Auditor's Report.

206

fl) 4ss.r73

Shcltcr Plus Crre/

Supportlve/

Permancnt Housing

Transitlonrl

Coming

Housinq

Home

16,768 $

12,794 $

Emcrgency Shelter

16,067 $ 759

690,936 97,040 49,539

26,378

62,828

700,855

828

2.028

7.712

6,066

1,022 90,628

Totel

HMIS

107.396 $

40.000 $

7,088 $

81.682 S

6,679

3t6,267 6,629

6,629 107,396

1.s41.682

75,000

40,000

496,774

t45 70,649 183.3s8

459 107.396

7.088

40,000

8r.679

t.073.822

2,028

2,484

(2,025)

439,828 2s.548

107.396 $

40.000 $

7,088 $

See Independent Auditor's Rcport.

201

467.860

8r.682 $

1.54r.682

CITY OFAMARILLO,TEXAS HOUSING AND URBAN DEVELOPMENT CRANTS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,2OI'

Communlty Development Block Grnnt REVENUES Grants-in-aid - capital

r,506, I 75

Chargcs for scrviccs

9,393

Construction participations lnvcstmcnt camings Miscctloncous rcvenucs

69,137

tlourlng

Home

Asslstrnce

lnvertmcnt

Prymcnlt

Pnrtncnblp Proerlm

Prolrtm

$ 8,878,75r S

742,420

4,447-

8,l0l 36.803 1.s84.705

8.923.655

746.867

Urban rcdwclopmcnt/housing

r.380.913

9-619-496

746.868

Total expendiores

r.580.933

9.679.496

?46.868

3.112

(755^841)

3,172

(755,84t)

(l)

7.645

t.2t2.282

Total revenucs

EXPENDITURES

Exccss (dcfi cicncy) of rwenucs

over (unda) cxpcnditurcs

oTHER FTNANCTNG SOURCES (USES) Transfer to othcr fund Opcrating transfcr from other fund Total other financing sources (uscs)

Nct changc in fund balances FUND BALANCES, BEGINNINC OF YEAR FUND BALANCES, END OFYEAR

r 1.417

See Independent Auditor's Report.

208

456.441

il)

Shcltcr Plur Crrc/ Pcrmrncnt Hourlnq

Supportlvc/

Trrnrldonrl

Conlng

Iloudnc

llomc

$ 400,233 I

Emcrlency Shcltcr

26,378 $

l3,ll2

Totrl

lIMTS

62,828

s 11,629,897 t3,840 69,137

8,l0l 52-6Sr

I 5.878

400.233

2(r-171

r 3.8?8

l3-t l2

62.828

tt-111-636

400.233

26.318

r55.240

t3.t t2

62.825

t2-665-08S

400.233

26.378

1s5.230

t3^l t2

A7 173

l2^663.08s

l89l-429'l

1r30^3621

(500)

(500) r30.362

(300)

138.862

139.362

Ito iit

(s00)

(752,567)

500 3

1.220^427

Scc Indcpcndcnt Auditor's Report.

209

46?.860

CITY OF AMARILLO, TEXAS PUBLIC HEALTH GRANTS COMBINING SCHEDULE OF ASSETS, LIABILITIES AND FUND BALANCES SEPTEMBER 30, 2OI9

Women,

lnfants & Children

Publlc Health

Total

ASSETS 8,097

$ 8,302,616

17l

4,lgg

2,706 429,2t6

5,472 5,211 716.249

s t 5q1 557

s 440.190

$ 9.033.747

$ 105,407

$ 164,019

$ 8,294,519

Cash and cash equivalents

Accounts receivable Other prepaid cxpcnses Duc from other funds - unrestricted Due from othcr govcrnments

TOTAL ASSETS

4,028 2,766 5,211 287,033

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payablc Due to other funds - unrestrictcd Accrucd Expenses Vouchers payable

Total liabilitics

58,612 370,000

370,000

106.566

4.256

tt0.822

ztr.973

432.868

644.84t

2,766

2,706

5,472

8.378.818

4.616

R ?R? A?d

8.38 r.584

7.322

8.388.906

s 8 593-557

s 440.190

s I 033 ?47

FUND BALANCES Nonspendablc: Prcpaid items Restrictcd: Special purposcs

Total fund balances

TOTAL LIABILITIES AND FUND BALANCES

See lndcpendent Auditor's Report.

2t0

CITY OF AMARILLO, TEXAS PUBLIC HEALTH CRANTS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 2019

Women,

REVENUES Intcrgovernmental revenucs Chargcs for scrviccs Investment camings Misccllancous rcvcnucs

Public Health

Infrnts & Chlklren

Totcl

$ 4,127,452

s 1,477,979

$ 5,605,431

150,847

t42,0gg

142,099

Total revenues

593

sq3

4.420.398

1,478,572

5.898.970

3.294.233

r.346.s28

4.640.761

3,294,233

1.346.528

4.640.76t

1.126.165

132.044

1.258.209

1r30.661)

fi30.66il

030.661)

EXPENDITURES Othcr public safety and health

Total cxpcnditurcs Excdss (dcficicncy) of rcvcnucs

ovcr (undcr) cxpcnditurcs

OTHER FINANCING SOURCES (USES) Operating ransfcrs to other fund

Total othcr financing sources and uses Net changc in fund balanccs

I,126,165

1,383

1,127,548

FUND BALANCES, AT BEGINNING OF YEAR

7.255.4t9

s.939

7.26r^358

s 8.381.s84 S

FUND BALANCES, AT END OF YEAR

See lndependent Auditor's Rcport.

2ll

7.322

-$..9,$9€99-

CITY OF AMARILLO, TEXAS JUSTICE GRANTS COMBINING SCHEDULE OF ASSETS, LIABILITIES AND FUND BALANCES SEPTEMBER 30n 2019

Selective

Justice

Tmffic

Assistrnt Grent

Enforcemcnt Proornm

Totrl

ASSETS Cash and cash equivalcnts

1,948

I I,145

20,1 gg

Accounts rcccivablc Due from other governments

38,855

TOTAL ASSETS

22.136

g 22,t36

{o ooo

13,093

20,188 38-8ss

72^t36

22,136

LIABILITIES AND FUND B.ALANCES LIABILITIES Accounts payable Vouchcrs payablc Due to othcr funds - unrestricted

22.136

Total liabilities

50,000

50.000

12.136

FUND BALANCES Rcstrictedr Special purposcs

Total fund balances

TOTAL LIABILTTIES AND FUND BALANCES

22 r?6

See Independent Auditor's Report.

212

50.000

72.176

CITY OF AMARILLO, TEXAS JUSTICE GRANTS

CoMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30,2OI9

Selective

Justlce Assistrnce

Grant REVENUES

Treflic Enforcement Proqram

$ 44.675 $

Totrl

159.753 $

204,428

44-675

t59.753

204.428

Policc protcction

1,948

197,614

t99,562

Capital outlay

44,676

IntergOvernmental rcvenucs

Total revenues

EXPENDITURES

Total expcnditurcs Exccss (deficiency) of

revcnucs ovcr (undcr) expenditures

44,676

46.624

t97.6t4

244-238

fl 949\

137^861)

(39.8r0)

37,861

37-86r

37.861

37.86r

orHER FTNANCING SOURCES (USES) Transfcrs from other fund

Total othcr financing sources and uses Nct change in firnd balances

(t,949)

(1,949)

FUND BALANCES, AT BEGINNING OF YEAR

1.949

FUND BALANCES, AT END OF YEAR

See lndependent Auditor's Report.

2t3

CITY OFAMARILLO,TEXAS MISCELLANEOUS GR.ANTS

COMBINING SCHEDULE OF ASSETS, LIABILITIES, AND FUND BALANCES SEPTEMBER 30,2019

Prntcx

Plrnt

Urbrn Trrnsportrllon Plrnnlnr

Environmcntrl

Ovcrelqht

ASSETS Cash and cash cquivalents

Accounts receivable Prcpaid cxpeng€ Due from other funds Duc from othcr govcnxncnts

TOTALASSETS

t2,977

3,784

450

92 2,241

60.94;

22-539

7t-3?3

14,373

78,.636

LIABILITIES AND FI'ND BAI,ANCES ,dccounb payablc

Due to othcr funds - unrcsrictcd

3,656

60,000

25,000

14.313

28.656

Vouchcrs payable

Total liabilities FUND BALANCES Rcstrictcdl Special purposes

Total fund balonccs 1L 717

TOTAL LIABILITIES AND FUND BALANCES

See Independent Auditofs Report.

214

28.6J6

Summer

Dlnrtor

Lunch

Arshtrncc

Prolrrm

319,385

Totrl

336,146 92 2,691 12,652

12,652

R3 4R5

332-03?

4?( ntA

18,029

332-031

85,000 332-037

112.0??

d33 06lt

??t 0?7

r?{ ocd

See Independent Auditot's Report,

2t5

CITY OFAMARTLLO,TEXAS MISCELLANEOUS GRANTS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED SEPTEMBER 30, 2OI9

Pantcx

REVENT'ES

Urbrn

Plant

TransDofirtlon

Envlronmcntrl

Plrnnlng

Overcleht

Intorgovemmental rcvenucs Donations

Total revcnucg

33t,t33 $

200,043

33r.r33

200.043

EXPENDITURES t24,082

Othcr public safety and hcalth Staff scniccs

331,133 5-948

Crpital outlay

r ?0-030

33t.t33

Total expendituns

?o nr?

Exccss (detlcicncy) ofrwenucc ovcr (undcr) expcnditurcs

oTHER I'INANCINC SOURCES (USES) (70,0t3)

Tnnsfcrs to other fund Opcrating transfcn fom othcr fund

(?0-013'l

Total other financing sourtes and uses Net changc in firnd balances

FIJND BALANCES,AT BEGINMNG OFYEAR

FI'ND BALANCES,AT END OFYEAR

See Independent Auditor's Rcport.

2t6

Dlsmtcr

Summcr Lunch

Acristrncc

Prolrrm $

Totrl

317,944

849,120

lt0

3r8-054

849.230

333,071

457,153 331,133 5.948 794.214

--l!g,gzL {15-0t7)

s4-996

(70,013)

l5_017

t{ rlt?

15.017

(54.996)

See Independent Auditotrs Rcport.

2t7

CITY OF AMARILLO, TEXAS COMBINING STATEMENT OF FIDUCI.ARY FUNDS SEPTEMBER 30, 2019

Amrrillo

ASSETS Cash and cash equivalents

Indigent

Industrlal

Totel

Ccntcnnirl

Dog Bltc

Devclopmcnt

Privrtc-Purposc

Perkwey

Victim

Corporrllon

Trust Funds

2,472 $

5,008 $

24,292 $

31,772

2,472 $

5,008 $

24,292 $

31.772

2.412 $ 2,472 $

5,008 $

24,292 $ 24.292 $

Invcstncnts, at fair valucs

TOTAL ASSETS NETPOSITION Held in trust for private purposes

TOTAL NET POSITION

5,008

See Independent Audito/s Rcport.

2t8

3t-772 3t.772

CITY OF AMARILLO, TEXAS COMBINING STATEMENT OF CHANGES IN FIDUCIARY FUNDS SEPTBMBER 30, 2019

Amarlllo

Industrlrl

Totrl

Ccntcnnlal

Indlgent Dog Blte

Development

Parkwry

Vlctlm

Coroorrtlon

Prlvrte-Purlosc Tnrst Funds

ADDITTONS: Employer Contributions Investment eamings

Total additions

520

s20

520

23,772

31.252

24,292

-!-!J!lL

DEDUCTIONS: Bcncfiu payments Total dcductions Change in net assets

NET POSITION, BEGINNING OF YEAR NET POSITION, END OF YEAR

2,472

5^008

2.472 $

5,008

See lndcpcndcnt AuditoCs Report.

2t9

CITY OF AMARILLO, TEXAS STATEMENT OF CHANGES IN ASSETS AND LTABILITIES AGENCY FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI9

Balancc

Bcglnning

ofYcar

Addltlons

Dcletlons

End of Ycrr

CIVIC CENTER OPERATIONS Assets Cash and cash cquivalents

Total asscts

Liabilities Due to other agcncics

Total liabilitics

s 4.463.318 $ 4.614.468 $ ?88,260 $ 939.410 $ 4.463.318 $ 4.614.468 S 788.260

$ 939,410

s 939.410

$ 4,614,468 $ 788,260 s e3e-410 s 4-463.318 S 4.614.468 S 788.2& $ 4,463,318

Scc Independent Auditor's Rcport.

220

SUPPLEMENTARY INFORMATION The following schedules are presented for the purpose of additional analysis and are not a required part of comprehensive annual financial report. The following types of information are included:

. Schedule of investments by funds . Schedules concerning ad valorem taxes . Schedules ofoutstanding debt issuances . Schedules for Watenvorks and Sewer System . Schedule for Drainage Utility . Schedule ofinsurance coverage - all funds . Non-MajorSpecialRevenueBudgets

22t

CITY OF AMARILLO, TEXAS SCIIEDULE OF INVESTMENTS. BY FUNDS SEPTEMBER 30,2OI'

tl.S- Tr.r.sR

No-Loed Funds

Fllr Vrlues

Plr Vrluc

Amortizcd Cort

Muturl

Amorilrcd Cost

Ohllillldil

Par Vrlue

Frir Vduei

GOVERNMENTAL FUNDS Unrestrictcd: Gcncral Fund

Houing and Urbrn Dcvclopmcnt Grants Funds Scizurc Fundr

Tax lncrcncnt Rcinvcstment Zonc

4,242943 S

1,981,200 s 2,000,000 s

1,985,460

2,11t 6,880

Compcnsotcd Abscnccs

769,294

7,969

Gcncral Obligrtion Dcbt Public Improvcmcnt Districb

29,58t

Cspitol Projccts Funds

3,653,061

Misccllancour qccill rcvcnuc

6,400.947

Total Unrc.ltrictcd

2,490,350 2,500,000 2,502,530

r 5-r t 2-852

4.471.550 4.500.000 4.487.990

Rcstrictcd:

Gencnl Construction Fund Civic Ccntcr lmprovcmcnl Fund GO Bond Consmction Fund

2,s26.56s 337,5t I 3J09.344 26.42 r,089

Boned Debt Scrvicc Fund

3,044,663

GcncralObligtion Debt

Tax lncrcmcnt Rcinvcatmcnt Zonc #l

Tottl Rcstricted

35_739-172

Totel Govcrnmcntal Funds

50.852.024

Watcr ond Scwcr Fund

35,013,867

Airporl Fund

t,533,740 t.9t 6.644

4,47t.550 4,500,000 4,48?,990

PROPRIETARY FUNDS ENTERPRISE FUNDS Unrcstrictcd:

Droirrrgc Utility

Total Unrcstrictcd

.....-..-

: 'l:lil:ill

'i:133:333 'i:lli:il! 741,284 75o,ooo 146,175

38.464-25 I

Rcstricted:

Wrter snd Sewcr Fund Airport Fund Drainagc Utility

55,086,751

44,330 69.768

Total Rcstrictcd

55.200.849

Total Entcrprisc Funds

93.665.r00

-_:

15.033.770 t5.000.000 15,052,940

_:-

INTERNAL SERVICE FT'NDS Unrcstrictcd: Flcct Scrviccs

4.t42,t27

lnformation Scrviccs

630,026

Risk Managcmcnt

3,461.40?

Employcc lnsurancc

1.504.986

Total Unrcstricted

, ::;tiiiti ,:;llilll

ij:l,l:l

988.379 t.000.000 995,700

9.738.546

Rcstrictcd: Flcct Scrviccs

Total lntcmol Scwicc Funds

TOTALS. ALL FI'NDS

14 29t 9.812.837

s 154.329.961

4.4Et.253 4,5oo.ooo 4,494.630

_: --$

s23.986.573 524.000.000 S24.035.560

--See Independent Auditor's Report. 222

US. Gov.nfrant rnd Govaninlnt€to[orad

Tolll

Ar.rchr lnlererl Berrlng Obllgadonr

Plr Vrluer

Frlr Vrlua

29,980,000

30,022,326

lnvc!lmcnlE

rl Frlr Vllucr

Add Thnc DGpoll$

s 36,250,729

$ 2,903.358

2,1?l

499.4t0

507,3?9

6,250,000

6,249,565

t2.405,162

(769,294) (7.969)

3,250,000

(3,633,06?)

It ?tt l/tt

7,903,358

12,002,095

16.d00.9't?)

r.250.000

d5.r 12.852'l

49-162-6/.9

I,144,966

3,000,000

(3,409,344)

7,135,622

2612t,089

6,000,000

(26.421.089) (3,044,663)

6.000.000

3,044,663

4.735.000

4.7t5.622

40.414.794

,.000.000

(35.7?9-172\

13.735.622

4t.46J.000

4 l-506-923

96.846.937

r6,903,3J8

(50.852.024)

62.898.2?t

5,000

I 8,33 I,l 57

66,399,924

t.500,000

(3t,0r3,86?)

32,886,057

2,000,000

2,008,1 I 5

4,?93,120

r.250,000

( r,533,740)

4,509,380

2.500.000

2.Jr6.395

5 l?0 nlt!

2.000.000

(1.916^6114)

( t/rt r tn

22.715.000

22-853-667

76-372.855

(38.464.251 )

t2 634607

r 8,2 r

r00.000 499.4t0

(33?,fl r)

337.51 I

4.735,622

34,911,144

(2.526.565)

2,526,565 4,?35,000

(29,58t)

6 400.94? 36 ??1.30t

(4342,94t' (2,r?l)

500.000

29.581

36J30.000

(6,880)

6,880

169,294 500.000

Totrl lnv6tnGnt!

Les Cash Ednlvrlenli

__!.?50.000-

55.086.75 I

(5S,086,75 l)

44,330

(44,330)

69.?68

160.?68\

sJ.200.849

(55.200.E49)

22.7r5.000

22.855.667

r3r_573_?0?

4.750.000

(93.66J.100)

3,500,000

3.52 r.0S0

8,672,t 87

3,?50,000

(4,t42,t27)

8,280,060

1,060,000

t.068.E74

2,203,390

r,?50,000

(630,026)

3,323,364

?,000,000

7,038.1 t5

(3,46 r,407)

12,023,5?5

1.495.820

t2.484.982 3.996 106

3,000,000

r.J00.000

t.500.000

( 1.s04.986'l

3.99r.520

r3-060_000

r 3. r 23.889

21.351.065

1(l ?1t <d.i\

2?-6r 8_5 r o

14,291

(74_29t\

42.658.607

13.060.000

l3.t 23.889

27 -43t.356

10.000.000

r9.8r 2.83?)

27.618.5 t 9

77.240.000 3

77.486.479

3 255.852.000

s 31.653.358

s fls4.329-961)

s 133-r75_39?

See Independent Auditor's Report.

223

CITY OF AMARILLO, TEXAS AD VALOREM TAXES RECEIVABLE BY ROLL YEAR SEPTEMBER 30,2019

Roll Ycrr

Gcncral Fund

Debt

2019

$ 401,265

20r8

162,670

20t?

t05,094

20,596 I1,783

2016

84,723

6,520

91,243

2015

71,080

5,777

76,957

2014

64,06t 54,403

20t2

49,243

sA67 5,019 4,587

69,528

20t3

52,830

201 I

52,608

5,357

57,965

20t0

4E,095

4,898

s2,993

2009

.36,113

3,684

39,857

2008

30,044

63r

30,675

584

26,07t

Scnice $

5 t,288

TotNl

$ 452,553 183,266

n6,877

59,482

2001

25,487

2006

24,335

588

24,923

2005 & Prior

58,608

I,l l0

59.718

1,266,889

127,949

1,394,E38

1,038,5 I 5

r06,355

1.144.870

228,374

21,594

24g,96g

158.844

t4,699

173,343

Total totcs receivable Allowance for uncollcctiblo ta.tes Nct taxes receivable Provision for dofened collections

Net trxes avrllrble for current cxpcnditurc

69.530

See Independent Auditor's Report.

224

6.895

76A25

CITY OF AMARILLO, TEXAS SCHEDULE OF CHANGES IN TAXES AVAILABLE YEAR ENDED SEPTEMBER 30, 2OI9

TAXES AVAILABLE BEGINNING, Net REVENUES Taxcs lcvicd Adjustmens

79,703

46,446,992

046.012) 46,300,980

Tax lcvy net of adjustmenc

t22,930

Decrease in allowancc for uncollcctible totcs

fl61.1Il)

Increasc in provision for dcfcncd collections

46,262,799

Net rcvenues

G6,266,077\

COLLECTIONS

(3.278\

Net increase (dccrcasc) in taxes available

TAXES AVAILABLE ENDING, Net

TOTAL AD VALOREM TA)(ES: Ad valorcm taxes - property ta:t rolls Penalty and intcrcst Payment in lieu of propcrly tD(

76.425

40,797,783 263,053

4.047.438 45,108,274

Togl General Fund tax rcvcnues

5,2t 8,010

Debt Scrvicc

TOTAL TAX REVENUES

See Independent Auditor's Report.

225

s0.326.284

CITY OF AMARILLO, TEXAS COMBINEI' SCIIEI'I,'LE OF OUTSTANDING I'EBT ISSUANCES SEPTEMEEN 30, ZOI9

lrru! D.l!

Flnrl

lntcrga Rrto on

Mllurllv Dllc

Outtllndlne M!turlllcr

3.50 .4.00%

GENERAL OELIGATION DEBTT .tdnrcrd rJ fax rlofrr{dt' Gcnonl Obligntion Bondr, Scriq 2009

09/03/09

08/r5t22

Rcc,ovory Zono Build Amodcr Bondr, Scri6 20 l0

04/t 5/t0

0t/t5/30

5,8t%

Ocnonl Obligotion Rcftnding Bondl Scior 2017

02n2^1

0snst21

4,00ch

Conitlcne of Obligotion. Scrio 20 l7

02nilt7

02il5t37

3,00.3,50%

Oancrd Obliguion 8ondr, Scrior 2017

oilnlt7

021t5t12

3.00 .5.00%

Oononl Oblignion Bonds, Scrio 2018

01/lut8

02n3t43

3.123 .3.00Vo

Scricr 2003 Orcorwlyr

tl25t03

08/l3t23

3,70%

Scficr 2006 Coloniog

$n4n6

4,750h

Scdor 2008A o'lonmyr

07n7108

oill3n6 02tl,n8

Scrior 20088 Colonio

07n1t08

Sorlg 2014 (t615,000 Oncnwryr t1,300,000 Colonior) Scrio 2018 Colonior

S',r,lccd by sltccld

mcab on.I othe rcrqnuc souftd',:

Public Impmvcmot Disricb:

Combin*ion Tot md Rwaruor Ccrltlcnc ofObligndon

4,28%

04/0t/t4

02t$n8 08nil34

2,250.3,623%

07/l8n8

05ilil'|

3.00.4.00%

02n3^t

02ilst37

t,so. s,2t%

02h3/lt

02^'/32

3.r0 .6,00%

t2il2^2 02nstA

084r/r8

t.250%

08/rrl19

2,009o

Wllcnrorlr md Sswor Rcvduq 201 I

08n0/t I

04/01/3 l

3,00 .4.125%

Oononl Oblignion 8ondr. Scrio 201t

08/30/l r

01NV2g

2.625 -3.t25%

Watcnvorkg and Scwcr Rcrrsluo. 2013

01n0n3

04nvzt

0.25 .0.8r%

Watcruorks and Scwcr Rwrrtuc, 20 I 4

01n2il4

04nv33

0,36.2.620/o

Watonvorks ond Scwcr Rcvcnuc 20lJ

r002/r5

04nv3,

0,J0. LJ97o

Wrtonvo*r and Scwor Rcvciluc 2015A

rcnut3 0snvt7

04NV32

2,00 .4.0070

04nU31

3,00.5,00%

07^9il8 07ilgn8

04/0 l/38

0.36 . I,60%

04/0 t/t8

3,00.5,00%

Wotcrworkr lnd Sowor Trx nnd Rovcnuo, 2009

04t0v09

05nst28

t.812.3.018%

wetcrworks snd SowcrTox end Rcvcnuc 20098

t2n9t09

05nst29

t,59t.2,5t70/o

Watcnvorkr ond ScwsrTox nd Rcvcnuo 2009C

02n2tn

oiltil3t

0.00%

09/03/09

02il3t20

4.7t3%

4,08%

OolfCounc Supporrcd: Scric 201 lA

Tlx Inc$mont Rclnvc'tltglt Zonc #l SlDporlcd: Scrior 20 I tB

Totd dcbt rrvlcod by propsly tn(ol lncludin5 ryccld orranmcnt lttd othot rovonuc rruroor Sa vlcel by Flcct Scnlca Fund Rcxauc (on Innmol Sanbc fund): Cornbinrdon Tax rnd Rcvoruo Corri[crtor ofObligrtion 20128

T!r. Not6i Soriot 2014 Tord dcbt rcwiccd by Flcct Scrvicqr Furdr rwcnuo REVENUE OELIGATION DEBT: Scnlclcl by Wnto ond Scwo Rtn.cnua:

Watcrrlorks ond Sowcr Rwcnuc, 201?

Watcrwo*r nnd Scwcr Rcvcnuc,20lEA Wilcrwork! rnd Scwcr Rworuc, 201EB Combinrtion Tox ond Rcvouo Ccnillcotc of Obligetion

Torol bonds rsrviccd by Wrtcr ud Sowc rovcnu$

liarvlcttl hy Altport Rcvsnac: Airpon Tat ond Rcvonuo. 2009A

krvlcel hS Dmlnuge Funl Rcvonuct Combination Ttx end Rcvcnuo Ccrtillcetg ofObllgndon, 2012A

t2^2il2

oEil5t32

2,000/o

Droinrgc Rcvcnuc 20 l4

04nln4

08/t 5/34

3.00.3.75o/o

Toral dcbt scrviccd by Droinogo Fund rtvcnuc

ltsrllcctl ht Hilol Oc.apancy Tat: Hotol Occupmcy Tox Rovonuo Bondt Tlxibla Scd6 2016

04/r3^6

08nst43

1.85 .4.25%

Hotcl Occupmcy Trs Rcvcnuo Bondl Tlxlblo Scior 20lt

03/20/1 8

08/r s/48

2.80 . 4, l57o

Tot|l bondr pryrblc' |

r Door nor includo lho City', proponionuo 3huo of tho Conadi0n Rivcr Wsrcr Aurhoriry indcbrcdnee. | Tohl intcNrt of t49,S0 I lc$ 45% o{ta rubridy fron thc Unitod Stato Tnlnry.

Tho dcbt :chcdulo rquircd by Scction 140,08 oftho Tcxor [.cil Govcmmcnt Codo b locdcd Er hnp://www.rrnuillo.gov/homc/rhowdocuncnl?id.4093

See Independent Auditor's Report.

226

1019.20 Mrturlds

Bond lruanccs

tcurd

Aulhorhd

Prlnclprl

ODhhndlno

Rctlrcd

lntcrclt

455.000

52,763

1.392,000

1.392.000

r40.000

8r2.000

69,000

27,226 ..

I 5, l 10,000

I5,t 10.000

2.795,000

12,31s.000

t.335.000

4.82t,000

4.E25,000

3,420,000

1,405,000

Totrl

507,763

96,226

492.600

1,827,600

6.940,000

6.940.000

8tt.000

6.085.000

505.000

t78,415

683.47t

2 t,280,000

2 1,280,000

820,000

20,460.000

J40.000

748.6 r9

I,288,6 r9

22.t4t.000

22.r4t.000

445.000

2 t.700,000

535.000

El7,06E

t.352.06t

620.000

620,000

450,000

170,000

40,000

6,290

46,290

585,000

589.000

33 1.30{

2r3.696

34.643

r r.303

45.946

600,000

265,000

335,000

30,000

13,696

43,6t6

1.r00.000

r.t00.000

670.000

830.000

75.000

32,334

t07,334

2.260.000

2.260,000

440,000

I,t20,000

95,000

5E,2 t9

153,21'

3,000,000

9t,000

2,90J,000

r r0.000

t00.48 I

2t0,48r

3,750,000

755,000

2,e9s.000

r 10.000

t42,425

252,423

2.2 r0_000

2.2 r0.000

620.000

l-300_000

90.000

83.700

t73.700

86-2 l?.000

86,2t7.000

t2,501,304

7t.7ts.696

4.023.643

2.765.199

6,788,842

2,790,000

2.790.000

2.650.000

J 440.000

3 440.000

,,440,000

t6.300.000

16.300.000

5.350.000

t0.950,000

720,000

420,E38

l. t40.838

5,60S,000

5,60t,000

3,4 15.000

2.190.000

t2t.000

64.4t0

589,450

I,3 r0,000

t.3 10.000

77t.000

,3r.000

r30.000

3.160

133.r60

8,495,000

8.495.000

2.325.000

6. r?0,000

390.000

r20.090

,10.090

l 7.19t.000

r 7.195,000

3.33t.000

13.860.000

8l t.000

t4?. I 02

962.t02

2 l. t4t.000

2 l.14r.000

6.865,000

14.280,000

1,380,000

467,06'

1.E47.069

3 1.005.000

3 1.00r.000

2.3rt.000

28.6r0,000

|, I 75,000

t, t2E,044

2.303.044

12.J00.000

r2.J00.000

6rJ.000

l 1.885,000

575,000

t38,E17

7t3,E11

14.6 10.000

14,6 10.000

675,000

I 3,935,000

520.000

s68,225

t.088.225

38,885,000

t8,t80,000

20.705.000

2,095.000

535,94 I

2.6t0,94 I

47.400.000

t7.?20.000

29,680,000

2,540,000

655,350

3, I 9r.3t0

t8.075_000

18.075.000

7.2 r 5.000

r0.860.000

90r.000

232.523.000

232.525.000

68.825,000

163.700.000

l 1.770.000

4,249.t46

16.019. r46

16, I 40,000

I 6,140,000

t4,3 t0,000

|,830,000

I,t30,000

43,762

t,873,762

6.260,000

6.260.000

2,625,000

3.635,000

2t0,000

72.100

322,700

6.080.000

1.220.000

4.860.000

26t,000

t57.644

422.644

l2.l'10.000

I2.340.000

3,845,000

8.493.000

, l t.000

230.344

745,344

3 15,000

I 1,680,000

320,000

45 t,836

l r.995,000

I t,995,000

38.833.000

?8 n33 000

s 403.4t2.000

s d03.492.000

905.000

771,836

38.835.000

3 r05.236.304

s 208.233.696

t.606. I 33

s 18.458,643

s 9.346.420

J 27,805.063

See Independent Auditor's Reporr.

227

8{9,397

r,92t 0@ l.960,uxt

20iG20i l

262,n7 t1r,57A 92,663

2{.Ot0

2jto,(m

2,{60,(m

2,550,0i00

j25,O0O

205q2Gl0

20rG2(}il

20{t-20t!

20{2-20r;

62-Et?-000 s

rj.t9pro

2,612,663

2,639,5?t

\6?,772

228

See Independent Auditofs Report.

fl39.r?01 St6.612.972S10,t9t696S{,(D0163S14.98&959

Irlor: Doonoticludcilt CiyiFqodlrcstarcoftbCanadinRiqwds^ulhdityid.ho&6-

Tol.ls

20{7-?Ot8

20{{-20t5 204t20t5 20{&20t7

!3.935.1.r! S

3{t.l2E

2295,On

203&2039

2(Xiz(X,l

{m,0it

2:20,Om

2037-203E

t?,1(5

.l{5,(m

{97,0t9

2j3t om 3,5t6

{61,/tl3

36Jrt

.125,(m

571.?Ut

2:55,01Xt

203'20i6 20i620i? 205,000

,r59,68,t

54.6t'l

,o5,(n0

6,19,022

2,lt0,0im

20i,r-20i5

208,586

.162,t(b

62463r

nstS

515,(n0

2,t3{,5r?

7t9,t47

2.1 tt,000

2,829,nn 2,t32,0t9 2.6{0,03t 2,638,t2t

J,732,520

620,nxt

,1,6?0,000

6t9,.f25

99t25

520,(n0

786..172

2,Or0.000

t63.7m-0(t0 t

t,6{xt,qr0

3,665,000

3.5@,000

,r.{to,(x)o

,r,290,000

7,t36,5r6

?5\5m ,t,9gt,(xro

790,353

t25,363

665,otx)

\E29,19 Lt26'{72

20ir-20i2 20;2-20jj 20i3-!0i,r

5290,?00

33-?7t

392 S

t97.4?5i92

t,775tO/

1r,&2

t55.3{5

3.E2t,t2E t,E20,3{5

4.789.992

.r.?85,958

26r,t28

379,992

{95,95t

7.920.174 926,116

6,9t0,000

! tj97,428

M,73t

t5a,?3r

I,O95J7.r

6,t25,@O

786,89r

t8t,t!x

t,r,o23,535

605,0m

10,030,000

15t27,7U

r6,016,t35 t6,0A7,oTt t5,6t t,53.t ts,6t7,245 t5,529,2r5

t6,0t9.tit6 t6,03163t

792,8t

tJo3,535 t367.428

Tord

207,6Et

t1320,qx)

2.Q77,7W

?,8o.L21t

3.t36.53.r

3,467.077

3,77t,t35

2139,2t5

9%,t76

9,15,825

{,2.t9,r.t6 ,rp27,638

t3,350,(x)0

t2,,t75,000

96t 8tt 9rq755 959,726

12,58{1,00i0

I!!cn3l

t2,tl5,@10 t3,090,0fi)

te2?5,mo

t2,005,(x)0

n,7?0,0q)

t,03t2{2

640.000

2.t29,022

t,fi0,83E

t,037,92t

1,033,09r

Prbciod

Wa&. rnd Srirr RGYauc Bods Ohbf Scniccd by lYea.r ud 56!r Rcycou6)

585,Om

295,&5

Torel

1833,638

9(B,638

L926,t71

(2,30o)

9?0,67{

r.958.000

202q2030

L926.4v7

(1.550)

r,896,firc

202&1029

236.1?6

z01xn

1920.,t50

(6,720)

r,t(,9,tru r,0i5,ot?

ur8.tm

2027-2028

266..825

68{t,000

52.r6.t39

(8,EA?l

t,269,676

5,986,0@

202&10!7

521,,&7

(r0,E76)

t,.ri{.{Ei

2mr2026

lza,w

663,909 (6.3,920

35t,969

636,t?5

52.il.5r6

378j06

4V).?SO

426.t%.

{{t.l,l8

53.r3.939

659,936

I[alrrsl

(118910)

t,7.t3,789

3-662.(m 3Jr8.000

202.t-2025

63t.088

5315,521

52$,mt

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6,2m

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ftlti"ull'

t t9.,tr5.000 t 20.0n0.000

fNifilh$"'

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t.602.t11

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iroinBd lhlorf,r J?.trt.@(, tr.t00000

See Independent Auditor's Report.

23t

CITY OF AMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM BOND PRINCIPAL REPAYMENT SCHEDULE SEPTEMBER 30,2019

Principal

Bonds Remaining

Percent of

Fiscrl Year

Rcpayment

Principrl

Endinc 09/30

Schedulc

Unpaid at End ofYeer

Rctircd

20t9

I1,770,000

2020

12,005,000

139,925,000

14.52o/o

202t

12,275,000

127,650,000

22.020/o

2022

12,580,000

I15,070,000

29.7to/o

2023

12,475,000

102,595,000

3?.330/o

2024

12,815,000

89,780,000

45.t60/o

2025

t3,090,000

76,690,000

53.15o/o

2026

13,350,000

63,340,000

6l.3lo/o

2027

12,320,000

51,020,000

68.83%

2028

10,030,000

40,990,000

74.960/o

2029

6,825,000

34,165,000

79.13o/o

2030

6,910,000 4,980,000

27,255,000

83.35%

2031

22,275,000

86.39o/o

2032

4,670,000

17,605,000

89.25o/o

2033

4,290,000

13,315,000

9t.870/o

2034

4,410,000

8,905,000

94.560/o

2035

3,560,000

5,345,000

96.730/o

2036

3,665,000

1,680,000

98,970/o

2037

1.680.000

151,930,000

?.t90/o

100.00%

$ r63.700.000

See Independent Audito/s Rcport.

232

CITY OFAMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM

HISTORICAL FINANCIAL D^T^ OPERATING STATEMENTS

Fhcrl Yorn Endcd Sootcnbcr 30. 20t9 OPERATING REVENUES

7r rtlr 0r

20t8

nt 20! lnl

2017

?l olR 060

20t3

2016

20r3

201.1

3 72.823.637 3 &.436.168 3 72.34r.356 I

70-809-219

I t,646,845

OPEMTINC EXPENSES(I) Poruoul rcwicor Supplior Contnctrnl & o0or co$icor

Totrl opcnro

15,180,0?2

t3,920,1??

ttAl2{r84

I 1,594,856

t,513,845 2?^1st.239

t4J67,892 t,350,992

12,388,8?3

1,644,628 36.r r2.8?6

t,440,246

tJ28,923

t,408194

26.7d2.886

2S-3d9.0r2

23.lll-tt70

t .017.376

t2-183-261

12.56t.770

30- r?8. r3

1472,230 )3.470.6q3 36-drr.600

36.0/,2.249

tt nttl act tl r3l ,16

l-926-?t4

l-483-214

(894-80r)

n-660-100I

t -{t 3-510

t-t42.27t

13-a0t-014'l

NONOPEMTTNG REVENUES (EXPENSES) o)

NETAVAIIABLE FOR

3 2d.020.669 3

t11.193.336 3 30.481.498 3 31.987.'106 3 29.434.869 3

36.683.390 I

37.272.829

Prinoipd

3 n,770,000

n,750.000 I

10.440.000 s

9.100.000 i

?,490,000

A.2t0.r46

1.72t.fi1

7,940,000 t

Intclrrt

1.777.268

2.7tt.760

DEBTSERVICE ANNUAL DEBT SERVICE

TOTAL DEBT SERVICE

Cwonjo

3 l6-019-t46 3 l5-g?/t-902 3 14-16?-268 3 ll-8{4-260 3 1.50x

2.58x

2.lJx

2.?0x

8.065.000 1.077.611 11.1.12.633

2,64x

_t!.ggJgg_

3.ts1.7t2

l--lll39!99- Llgg34l 3,30x

3,03x

(l) Excludor doprtoiation (2) lncludor CRMWA intcrtl oxpcnrc, but oxoludor bond intorol oxporrc

NETPOSTNON (Ar ofSEPTEMBER 30, 20lr)

Na lnvclmont in Cspital Alrct! R$rictcd for Rcvcn[c Bond Dcbt Rctircmonr

412,568,214 8.r r9,349

!*,7t 17t

Unrutrlctad

Totol Not Pocltlon

See Independent Auditor's Report.

233

469.436.087

CTTY OFAMARILLO,TEXAS

WATERWORKS AND SEWER SYSTEM HISTORICAL FINANCTAL DATA CITY'S EQUITY IN SYSTEM

Flrcrl Ycerr Endcd Scltcmbcr 30. 2019 Wstsrworks and scwcr systgm in Scrvicc

20r8

20r3

20t.1

20r3

t 668.7r6.261

046^260. r 52)

(23 r.80 r.?28)

Qt?.8t?.121\

(203.635.683)

( r 90-l 29.4 r 6)

st4A29,695

5 16.171.332

500.652,614

502.319.798

502,t44,223

4?8,5E6,E45

6 t.608.8 t 2

42.055.348

t9.32t.320

24.886.619

I 2. I 60.588

34.064.?99

Q74262,400\ (260.392,682)

Nct plant in scrvicc

526,467,596

Plug congtruction in prcgrcs

66.204.539

coning on linc

20r6

t 800,729,996 I 774,822,t17 $ 762,43r.484 | 792,454.402 $ 720,1t6,925 $ 70t.779.908

Rcscrve for dcprcciation

Net plant in seruicc and

2017

592,672.tt5 576.038.507 558126,680 539.9?3,994 527206,417 sr4pr3,8lr 512,65r,644

Plus rcstricted Nsse6 and other noncurcnt a$c$ and dcfened itcms

59.039.458

79,83 t.t 7E

55J66,473

4t,8?r.t05

3 r.64t.460

34J46.02r

Pluo working crpital

56.556.672

60376.904

66.t73.794

59.024.455

64.534.t77

74.220.979

66.127.9?7

708.268.265 7t6.246.589 6?9.866.947 6{4.869.554 623.386.054 622.980.81 I

602.779.688

221,062,178

242,066,602

228,699,627

2t2,855,741

208,856,127

221"508,391

2223,t6,20?

r 1.770.000

r t.750.000

10.440.000

9.100.000

8.065.000

7-940.000

7.400.000

Totrl asccts Othcr noncunrnt liabilities

24,000.067

Plus liobilitios pyablc from

rcstrictod ossctg Totsl oblilptiont

Cltyrr c{ully ln ryltcm

238.8t2.178 253-816.602 239.1t9.621 221.955.141 2t6.921.121 229.448.39t 229.706.201

t 469,436.087 t 462.429.987 s 440J27,320 $ 422.rr3.8r3 J 406,464,927 I 393.t32.420 S 373.073.481

COI'ER^GE OT DEBT SERVICE REQUIREMEM Not Syetcm Income Availsble for Debl SeMce for Fiscol YcEr Endcd 9/30/2019

24,020,669

Averege Annuol Principrl and lntcrqt Requircmcnts (2020-2037) Covrago ofAvcrage Annual Requirem?ntt by 2019 Nct Rcrcnucs

r0,393J42

Morimum Principal and lntorcst Rcquircmcnts. 2023 Covcregc ofMaximum Rcqulrcmcnts by 2019 Nct Rcvonucs

16,047977

2.31 x

1,50 x

Sec lndcpcndent Auditor's Report.

234

CITY OF AMARILLO, TEXAS IVATERWORKS AND SEWER SYSTEMS IIISTORICAL FINANCIAL DATA WATER AND SEWER FUND OPERATIONS

Fiscrl Ycrrs Ended Scotembcr 30. 2019

20 rE

2017

2016

20ls

20r4

20r3

$ 48,906,889

$ 5s,209,141

$ 48,620,594

$ 48,6?6.840

$ 41,t99.939

$ 47.606.516

$ 46.968.390

23,765,730

23,629,s03

2t.510,449

20.860.554

20.340,925

2 I,024,45 t

20,4 t9,533

299,876

223,978

280,702

250,E74

27t,604

265, r 40

3 t 6,450

1.333.844

l,3r0.3l0

t,24t,42t

r,300,605

852,854

1,242,53t

l,r68,r46

OPERATING REVENUES Water salcs Scwer chargcs

lndustrisl surchargcs Forfeited discounts - water Sale of reclaimed water

499,3 l6

433,467

512,347

529,786

622,529

s?4,786

598,1 3 1

Water service charges

713,E l9

r,370,966

r,3?3,862

t270,238

99t,326

t.240,897

l.l84.l9t

Woter tap fees

232,827

212,343

218,965

206,829

t65,88?

177,324

I 53.754

Sewcr lap fccs

93,201

54,4 r 8

88.05 t

72,057

46,t77

63,596

61,124

Grcasc tap fccs

9t,375

Wutcr frontage chorges

10,550

1,210

r 6,628

3,0r3

3,432

3,437

Nct loss on bsd dcbts

(948,984)

(392,544)

(203,659)

Lab fccs

n4.374

I I 1.643

149,495

Miscellaneous

(83.9 r 9)

127,1t6

82.405

37,288 6,283 2,?26 18.080 (53s.r64) (420.863) l4E,l73 148,168 35,836 153,054

I,925

Sewer frontage chargcs

?5.031.91I

82.295.583

73.938.069

72.82s.637 64.436.968

r 5,1 80,072

t3,920,t77

t4461.892

I 2.3 88.873

n,4?2,684

I 1,594.856

t,472,230

t,428,923

l,408,294

4,246,205

4,933,966

4,398, I 62

Total operating revenues

4928

8.208

(88.378)

(s03.962)

r 56,239

r43,8 r 4

?3-4t I

274,8t2

72.343.366 70.809.2r9

OPERATING EXPENSES Salarics, wages and ftingc bcncfits

I 1.646.845

t,644,628

1.5 I 3.845

I,350.992

I,440,246

Fucl and power

3.955.978

4,5E2,045

4,6r 8,493

4,t74,52t

Surface water

5,269,514

5,896,428

6,974,102

6,624,2t4

5,347,06 r

5,427,970

4,85 t,0?4

5.063.458

4.900.080

4.703.899

4.554.3 58

4.329,654

I,t 73,530

8,902, I 76

8,501 ,207

l 4,238,259

l 3.63?,200

13,378,6 r 2

(673.849)

(568.?55)

(651.429\

52.664,052

49.980^019

49.9 10.694

47.862.4t9 22.946.800

Supplics

15,245,320

5,88 I , 144

I I,642.064

t0,79t,622

r0,0E6,833

9,650,I 97

Dcprcciation

t4.246.222

t4,t96,462

r 4,550,803

l4,r 54,802

Less: interfund rcimburscmcnts

( 1.073.237)

( l.414.897)

il. r82.621)

Other contractual chargcs

Ohcr chrrgcs

Total opcrating cxpcnscs Opcroting incomc

66.110.561 5s.366.826 55.929.952 8.92 r

.350

(668 88l'r

26.928.75?

18,008,1

20,161,585

t4.456.949

22.432.672

NONOPERATINC REVENUES (EXPENSES) Capitol contributions

2,098,738

4.027.924

5.226.486

2,6 16,854

5,r 05,52 l

3,603,324

369,472

lntcrcst cemings

3.t24.262

t.590.073

394.95 I

420,2t3

356,274

259,94t

209,90 l

Disposition ofpropeny lnterest expcnse & liscal chargcs

(29.745)

829,031

24,654

l 2,669

3,4t7,620

3.8 16,207

57,883

(6.470.440)

(5.37(r.745)

(4.918.r41)

(5.66 1.205)

(s_82S-44 r )

(6. l s0.969)

(6188 1 .1 92)

( 1.277. I 85)

I _070.283

127.c)50

(2.61 1.469)

3.053.974

1.488.503

6.243.936\

Total nonopcrating rcvcnucs (cxpcnscs)

Total incomc bclbre tronslbrs

TRANSFERS FROM (TO) OTHER I'UNDS NET INCOME

7.644.165 27.999.040 18.736,067 17,550,1l6 17,s10,923 23,921,17s l(r,702,864 (922.560) il.r01-230) (2.499.t53) (250.456) u72.5t2\ $ 6.973.500 S 27.445.181 $ t7.813.507 $ t6.448.886 $ 15.0r r,770 $ 23,670,719 $ 16,530.352 (670.665)

( 553

-8S9)

See lndependent AuditoCs Report.

235

ctTY oFAMARILLO,TEXAS WATERWORKS AND SEWER SYSTEM TTISTORTCAL FINANCIAL DATA WATER AND SEWER FUND NET POSITION

Flscal Ycrrs Endcd Scntcmbcr 30. 20r 6

20ltl

201 5

20t3

20r9

20r8

$ 35,r64,365

$ 14,805,768

32,886,057

48.987.054

57,098,74t

50,749,952

48461,9?7

52,948,308

40,2?9,863

7,577,s03

7,497.259

5.638. r 33

5,498,742

5,?49,728

5,t97,?01

5,969,328

224,453

237.30t

t74,412

r32.048

94,835

100,484

7 t.974

Other accrued rcvcnuc

5,073.586

s.395,636

3,354,388

3,642,645

4,458,946

4, I 52,86 I

4J89,46s

Duc from othcr funds

1.030.428

29,355

34,957

Prcprid expenscs

1.603.474

l-309-727

l-434-7Sl

t.472.893

893.326

928.4 t 5

933.853

83.559.866 ?8.262.t00

83.234.09r

76.092.638

79_t30_51 I

87-968.330

78-l2l-225

55.086.75 l

50,39 I,049

40,77 I,986

29,549,585

32,t7t,215

23,672,965

(l)

7,902

309,407

327,t02

90.854

98.037

r 53.385

2017

AssETs CURRENT ASSETS Cash Inveslments - at fair msrket valuc

3 r5.498,647 $ 15.496.358

s 19.47r.699 $ 24.640,561

s 26,378,742

Rcccivables (nct of Ellowancc for uncollcctiblcs): Accounts Accrued interest

Total cuncnt ossets

NONCURRENT ASSETS Rcstrictcd cash

78,824,t48

Oher noncunent receivable 67194

Other noncuncnt osset

75,632

83.4t4 715,043

lntcrfund sdvance rcccivEblc Capitol lscts

land. eascmcnts ond

62.086.46r 6t.9r2.385 6t.585,830 60,954,487 59,444,991 58,993,887 59,163,418

water rights

Accumulotcd dcplction wuter rights

(9,404,38 l )

(8,626,6r2)

(7,848,843)

(7.071.535)

(6.3r0.3r r)

(s.588.870)

(4.863.498)

Supply contract

50,336,389

50.336.389

50,336,389

Accumulatcd amonizotion

(24.403.846)

(23,639.832)

(22.87s,8 r 7)

(22,1 r l,802)

(2 r,345,6e4)

(20,58 r,680)

(re,817,665)

Pipclincs and othcr improramcnts

683.446,448

658,2?4,445

646, I 80,868

6 16,942,368

606,r02.72 r

592.22t.300

554,949,5t7

Accumulatcd dcprcciation

( 1 62.1 8s.069)

(236,8 l 1,478)

(224,523,75t)

(2 l 2,025.705)

( 1 99. r 83.1 26)

(r 86.71 r.32r)

(r 74.r43,s86)

Equipment

4,860,698

4.299. r s8

4,328,397

4,22t,t58

4,252,824

4,228,332

4266,937

Accumulatcd dcprccialion

(3.642.695)

(3.602.487)

(3,509,787)

(3,435,265)

(3,44e,80 l )

(3,32 l,s4e)

(3J63, l 84)

Construction in progrcss

66.204.539

6t.608.812

42.055.348

39-32 l -320

24-886.6 r

I 2- l 69-588

34.064.799

Totul capital assets. ner

s92.672.t35 576.038.507 558.226.680 539.973.994 527.206.4t7 5t4.313.8t I

512.651.644

Total noncurrent ssscts

647.826.380 6s4.938.287 609.4r6.r86

TOTAL ASSETS

s 7tr.386-246

580,836,833

556.86t.941 547.t47.878 536.65t.?lt

$ 733.200.387 S 692,650,277 $ 657,829,471 t 63s,992,4s2 t 63s,116,208 S 614,774,936

DEFERRED OTITFLOW OF RESO(IRCES Defened out0orv of resourccs

TOT^I, DEFERRED OTITFLOWS

s s

8.278.4e3 s

5.898.163 s

4.42s.767 $

5.032.417 $

2.024.929 $

t.966.685 $

8.278.4t3 $

5.898.t63 $

4,425,?6? $

s,032,417 5

2,024,929 S

1,966,685 5

See Independent Auditor's Report.

236

CITY OF AMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM IIISTORICAL FINANCIAL DATA WATER AND SEWER FUND NET POSITION, CONTINUED

Flscal Ycars Endcd Scntcmbcr 30. 2019

20r8

2011

2015

20t5

2014

2013

LIABTLITIES CURRENT LIABILITIES

2.713.696 $

2,170,935 $

2,805,349 5

2,990,501 t

Accounts payable

t,492,979

t,713,233

r.65 r,160

t,090,247

r.988.469

737,303

448,080

Accrucd cxpcnscs

r 1.920,23 I

3.988.170

2,507,563

3,337,958

2,533, I 23

2,415,764

2,142,244

Vouchcrs payublc

Deposils Consumcr sccurity dcposits

,548,271 $

683,404

38J38

46,045

42,014

41,075

43,353

43,75E

36,899

4,005.303

3.900,68 l

3,??8,466

3,670,02?

3,622,203

3,478.194

3.36 1.020

2t3,205

220.629

253,t07

237,424

228,074

5,287.021 6,062,540

s,467,746

5.246,984

s,236,637

5,095,s27

l, l 50,000

32t,454

50,000

I 94,987

Compensated absences, cunent

587,641 $

t79,1

Proportionatc shuc of watcr authority indebtedness - currcnt installmcnts

s,837260 800,000

Due to other funds

Rcvcnuc bonds - cuncnt maturilics

l r _770.000

r t.750.000

r0.440.000

9. l 00.000

8,065.000

7.940-000

7.490.000

Total cunent liabilities

38.773.194

29.635.196

27.500.297

27.068.t 83

22.661.334

21.687.351

t9.485.248

NONCURRENT LIABILITIES Rcvcnue bonds - less cunent maturitics and unamonizcd

rs5.s83.382 t67,576,703 t51.406.891 t28,872,057 t22,5t0,609 130.639.582 128.779.108

issuancc costs

Proponionate share of water authority indcbtcdncss . lcss cunent installmenls

53,880,68 I

60,630,2 t9

66,586,546

73,178,176

79,t 48,283

86,4 16,820

88,758,2 I 0

Othcr accrucd cxpcnscs

2,s78.684

2,606,671

2,628,280

2,6ts,459

2.646,300

2,783,2s6

2,979,023

Provision for accrued sick and annual lcavc Net OPEB liability

663.576 5,893,036

845,20? 5,807,799

803.399

88 r ,816

1.0 r 3.225

r.l r3.512

1.148.t27

Nct pcnsion liability

I 462 gr9

4 600 003

7.274.511

7.308.233

3 537 7r0

sss 221

55t ?30

22?.062.t78 242.066.602 228.699.62t 2t2-855.74t 208.856.t27 221.508.391 222.2t6.20?

Total noncurrent liobilitics

TOTAL LIABILITIES

s 265.835.372 S 27t.70t.t98 S 256.t99.924 S 239.923.924 S 231.517.461 S 243.195.742 S 24r.70r.455

DEFERRED INFLOWS OF RDSOtTRCnS

Dcfcncd outflow of resources

TOTAL DEFERRED INFLOWS

S s

4.393.280 S

4.966.7(15 S

148.800 S

24.151 S

4.393.280 S

4.966.765 S

148.800 S

24.15

NET POSITION Net investrnent in capitsl asscts Resrricted for debt service

Unrcstrictcd

TOTAL NET POSI'I'ION

s 412,568.2t4

s 402.151.E12

$ 367.7E4.175

8, I I 9,349

7,466,900

6,337,577

48 748 524

52 8tl 275

65 50S 568

34.993 S 34.993 S

354^?34 S

354-734 S

g 35E.232,452 $ 336.363.074

$ 3t2.096.698

5,895,549

6,325,536

6,322,034

5,559,288

s8?858r2

63 776 317

75 I l3 6fl8

66 871 717

s 300,642,476

s 469.436.087 t 462.429.98? I440.727,320 $ 422.9r3.813 5 406.464.927 $ 393.532.420 $ 373.073.481

See Independent Auditor's Repon

237

Corcrage of Meximum Requiunarc

Maximun Primipal ad lntcresr Requircnrcntr 2032

Avtrage Aanrnl kfircipal and lnter€st Requar€manls (202G203) Coarage of Awrage Annual Roquircmnls

fr Debt Service

contribut fuxrs and lramfers

20rt

n7,t17 3.006.474

55Jrt

143,?98

\e56.3eo

,t2)99

2#t2lr 211,67

72,llt 6?J12

il0934

mt1

69J69

,153x

953,tlt 35lx v7511 359x

9175{4 3.3b( 3.,14x

7t939!

75t,t4

238

20t5

69,86t

t3.822

1I26.51t3

2013

69,171

3 3,3522,f6 S t,347372

9t,cx,

1.6?x

359(

See Independent Auditor's Reporl

212

T2t,tu 753,1,14

3.7Er

7193'!A

972Os

,f25,868

ts22ot

ns297

64s280

a2t37t 5rsBr9

r93957

ss32t2 671575

900.22t

t81299

7.63x

,f3t,,{98

420,988 ?.95x

$ 3,147,r2t 3 3JOt,653 S 3,1s22{5 S 3,]47372

mrc

7ts95? {-{t}x

20r8

69J15

s 2,t33,035 $ 2,70.,090 $ 2,st9929 m2334 69sJ59 69,t5t 3.6ft 4.0?x 3-87x

20r9

tt.4t6

20r3

6ru6t

$ a714'o90 S LStg,Vlg $ 3,1,17,t28 S 3,401553

COVERAGE AND FT'ND BAIANCE

7t,952

$ 2.833,035

9&92t

136,Wr

4{r2&

475,056 t65,055

3 5..t60.3,f5 $ 5,,15!t629 S 4,En,l 13

20t5

2.,f65.9,t3 L159,626 22t63O5

12\9st

t85,836

145,645

t41:t69

mr,r98 r,mrSrE rf rSss

3 s524555

20t6

905,6r I

tJo9:t6 9sT2t

$ s54OJr5

20t7

t29s,g2 tt4488

t271,66

3 sJ82.179 $ 554t0El

| Nonopa'ating rercnrs (erye rrses) exchde bmd inlercsil experse, cepital

l,let S)6tern hcomc Ayailatle

(

NUOIBER OF CI,'STOMERS

NET AVAIIABLE FOR DEBT SERVICE

NONOPERATING REVENUES (E,XPENSES)

Tot l expenses

DeFcbtion

Otherchargcs

OPERATING EXPE]TSES Ferssul srvfues Conuacruel & othcr servie orher srppli:s ad expensc

OPERATING REVENUES

20t9

CONDENSED SCHEDULB OF OPERATIONS YEAR ENDED SEPTEMBER 30, 2OI9

DRAINAGET]TTLIfi

CITY OF AMARILII), TEXAS

CITY OF AMARILLO, TEXAS SCHEDULE OF INSURANCE COVERAGE.ALL FUNDS SEPTEMBER 30,2019

Type of Coverage

Property Covered

Self-lnsured Retention

Limits of Liabilitv

General Fund Departments:

Buildings & Contents

$250,000 *

$500,000,000

$250,000

$500,000,000

Fire and extended coverage

$250,000

$500,000,000

Fire and extended coverage

$250,000

Fire and extended coverage

Water and Sewer Utility:

Buildings & Contents

Fire and extended

coverage

Airport: Buildings & Contents

Amarillo Hospital District Buildings & Contents

$619,3 I I

Bond

Polygraph Examiners

$5,000

Law Enforement Liabi I ity Insurance

City Council, City Manager, Ciry Anorney, and Selected Division Directors &

Law Enforement Coverage

Professional liabil ity

$6,000,000

24 hour accident protection

for business travel

Department Heads

Fire and extendcd coverage

$ 100,000

Explosion and damage Med Maland Gen Liability Public Health and Clinic

$250,000/$ 1,250,000 $250,000

s500,000,000

$25,000

$2,000,000/$5,000,000

$25,000

s3,000,000

Cybcr Sccurity Failure/Privacy Event Management

Cyber Security

Worker's Compensation

AllCity Employees

Injury to City Workers

$ 1,500,000

Statutory

Health lnsurance

$750,000

Unlimited

IndividualStop Loss Health Plan Participants

SURETY BONDS OF PRINCIPAL OFFICIALS

Title

Amount of Suretv Bond

City Manager

$50,000

BONDS REQUIRED BY CITY CHARTER:

Official Jared Miller OTHER

Exccss of $50,000 under the City of Amarillo Self-lnsurance PIan,

Statutory limits of liability

|lhese arnounts rctlcct total prcpcrly insurcd. thc total policy has a $500 million limit, Ellbctivc 07/01/201 8. hail and wind losses have a 5% dcductiblc pcr structurc location. with a minimum ol'$50.000 pcr location,

See lndepcndcnt Auditor's Report,

239

Public Health

Expenditures:

Public Health

Rerrenues:

s 3,294,233 $ $ 3,294,233 $

$ 4,420,398 $ s 4,420,39E $

Net Current

Capital Outlsy

$ 3,294,233 t 3,760,yr2

s 3,294,233 t 3,7ffi,9n

240

See Independent Auditofs Report

$ 3,2%,233 S $ 3,2%,233 s-

Budgct

$ 4,420J98

Basis

et End ofYear

Original

$ 4,420,39E t 4,755,222 $ 4,420,398 $ 4,755,222

Total Actual Budgctary

Encumbrances

Peid Prior Yeer Encumbrences

$ 4,420398 S

Besis)

Total Current Yeer(GAAP

PT'BLIC IIEALTH FT'ND SCHEDULE OF REVENUES AND EXPENDITURES BY DEPARTMENT - BT'DGETARY BASIS YEAR ENDED SEPTEMBER 30, 2OI9

CITY OF AMARILII), TEXA.S

Variance

$ (334.824)

t 4,75s,222

s 3.7ffi,n2 $ ff6?39 s 3,760,n2 S 466739

$ (334824)

s 4.7ss.222

Final Budget Budget

with Final

LEOSETraining

Expenditures:

LEOSE Training

Revenues:

CITY OF AMARILL,O' TEXAS

$ 39,478 $ $ 39,478 $

s 23,t24 S

s 23,124 $

Current

Net

Capitat Outlay

Paid Prior Year Encumbrances

Encumbrances at End ofYcar

24t

See Independent Audito/s Report.

s 39,478 $ s 39,478 $

$ 23,124 $ $ 23,124 $

Basis)

Year (GAAP

Total Current

Budget

Original

Final Budgct

Variance rvitb Final Budget

$ 39,478 $ 22,500 $ 44,5m $ $ 39$78 $ 22,500 S 44,5m s

5,022

s 23,1u $ 26,3t0 $ 26,3t0 $ (3,t86) s 23,124 $ 26,3t0 $ 26,3t0 $ (3,t86)

Basis

Budgetary

Total Actual

SCHEDULE OF REVENUESAND EXPENDITURES BY DEPARTMENT- BUDGETARY BASIS YEAR ENDED SEPTEMBER 30, 2OI9

r.Aw EN FORCEMENT OFFICERS STANDARDS AND EDUCATTON (LEOSE) TRAINTNG FUND

l-ocal Seized Property

Expenditures:

Local Seized Property

Revenues:

$ 59,136 S $ 59,136 s

s 94,42r $ s 94,42r $

Current

Net

Capital Outlay Encumbranccs

Paid Prior Year

242

See lndependent Auditor's Report.

27,8U $

s 59,136 $

$ 31,332 $ 31,332

Budget

Original

Final Budget

Veriance

$ $

$ 90350 $ 90,350 $

59,018

94,421

Budget

with Final

3 903s0 s 90,350 $

$ 94,421

27,8U $

s 94,421

Basis

at End ofYear

Budgetery

Total Actual Encumbrances

$ 59,t36 $

$ 94,42r $ $ 94,42r $

Basis)

(GAAP

Year

Total Current

YEAR ENDED SEPTEMBER 30, 2OT9

CITY OF AMARILII), TEXAS LOCAL SEIZED PROPERTY FI.'ND SCHEDULE OF REVENruES AND EXPENDITURF^S BY DEPARTMENT. BIJDGETARY BASIS

Cornperuated Absenes

Expcrditures:

Compasaled Absene

Rcvenues:

$ $

2,1261448 t

243

Vrriencc wilh Finel Budgct Finel Budgcl

27,ffi S 27,ffi $ 138&237 27,600 $ 27,6m $ 1388'237

Budgct

Origiml

] 2.t26,48 S r,666,87t S 1,666,878 S (459.570) 3 2,126.148 s r,666,878 $ t,666,878 3 (4s9,s70)

3 r.4t5.837 S 3 rJ15,837 s

Besi:

Budgclrry

et End ofYcer

Totel Acturl

Encunbrens

See Independent Auditofs Report.

$ 2,r26,44t $ $ 2,126,148 s

3 1,415,837

r,4r5,837 S

2,r26,44E

Encumbrenccs

r.4r5.E37 t

Basb)

Ycer

Ycer(GAAP

Oullay

Peid Prior

Total Currcnl

r3rs,837 $

Nct Currcnt

Capital

CITY OF AMARILII), TEXAS COMPENSATED ABSENCES FUNI) SCHEDULE OF REVENUES AND EXPENDITURES BY DEPARTMENT. BI.IDGEtrARY BASIS YEAR ENDED SEPTEMBER 30, 2OI9

Court Security

CourtTechmlogr

Expenditures:

Court Security

Court Technologr

Rer.enu€s:

$ 4E0,906 $

175,M2

$ 305,844 $

s 9,t42 $

9,142 $

244

See Independent Auditor's Report

$ 480,906 $

t75.M2

$ 305,844

$ 302,420 $

$ 302320 $

$ t27,35E

t52,300

175,M2

152,300

s 142,6(n

Budget

Final

Variance

14E,942

(21,t20)

ts3942

14,818

$ 35,938

s 332,640

g 47tJ& $ 481,582 S 4E6,5E2 $

175,M2

s 296JO2 s 332,640

7,520

22,762

$ (15,242)

Budget

with Final

s 3v2A2O S 294900 $ 294,900 $

s t42,600

Budget

Original

$ l27Js8

Basis

Budgetary

Year Encumbrances at End ofYear

Total Actual

Paid Prior Encumbrances

175,M2

Capital Outlay

175,062

$ 127,3s8

Current

Net

Yeer (GAAP BasD

Total Current

CITY OF AIIIARILLO, TEXAS COURT TECHNOI.OGY AND COIJRTSECURITY FUNDS SCHEDULE OF REVENUES AND EXPENDITI.'RES BY DEPARTMENT. BUDGETARY BASIS YEAR ENDED SEPTEMBER 30, 2OI9

9946

337

$ r,443,247 S

869

Redsone

Pinnacle

5,494

Virryards

Tormsquare

8J87

Quail Creek

24s

See Independent Auditor's Report

$ r,443r47 S

337

869

5,494

49,88?

49,8t7

Point Wes

Tutbury

843,696

488,74?

843,6%

The Colonies

35476

488,747

35,476

s 2,r 16553 S

673

s 2,r 16,653 $

t66,23r

Heritage Hills

Greenuals al Hillside

Expenditures:

Pinnacb

Torvnsquare

673

t65,t64

166r64

83,(H3 83,043

869 337

t00

230,29t

(337)

82,t74

244 y2

zfi 5,?38

9,V7 3,738

7,U7

548

I,t8t

t0,49l 5t,068

9194 26,M8

5,494

8,787

49,887

9,946

28,279

(r r,528)

$4168 832,168

t29,378 843,696

$ 63,75s

$ 618,r25

r4?,8ll

63,755

$ 618,125

67 6?3

35,476

48&747

$ 1,443,247 S I,643,438 S t,673,538 $

s 2,116,653 $ 1,968,842 S 1968,842 $

673

t6623t

7,950

Redsone

t66,23t

10,162

t0,t50

10,150

r0,r50

7,950

s4000 t0,162 52"000

54007

52,W?

52,007

Poinl Wesr

Quail Crcek Vinel.ards

(t2)

(t23)

r44r9

16,296

t6296

t6,296

Tutbury

359

t4L84t 9r r,889

3,999

9l t,889 t6.4tg

t,054,730

s 643,474

t,054,730

643J474

r,054,730

The Colonies

s &7,473

Final Budgct

Variance rvith

t603u

Final Budget

160.,784

Budget

Original

t6l,t43

s &7,473

Total Actual Budgefary Basb

t6t,t43

Encumbranccs

Encumbranccs at End ofYcar

16t,t43

s 647,473

Basis)

Year

Peid Prior

Heritage Hills

Creens'a1ns at H illside

Revenues:

Nct Currcnt

Capital Outlay

Current Ycar (GAAP

Total

CITY OF AMARILI.O, TEXAS PUBLIC IMPROVEMENT DISTRICTS SCHEDULE OF REVENUES AND EXPENDITURES BY DEPARTMENT. BUDGETARY BASIS YEAR ENDED SEPTEMBER 30,2OI9

Bonded Debt Servie

Expolditurcs:

Bmded Debt Servioe

Revenues:

$ 9,r64,r37

$ 9,164,137

$$-

$ !0,86?36r $

$ t0,86?,36r

Nct Currtnt

Capital Outlay

246

See Independent Auditot's Report.

s 9.164,137 $ s 9,t64,137 $ s

s t0,867,361 $

atEnd ofYear

$ r0,86?,36t $

Encumbranccs

Budgct

Originel

Final Budsct

Veriancc rvith Final Budgct

$ 9,164,137 S 9,t742% S 9,174286 $ 9,t64,t37 S 9,t74,286 S I,171286

$ t

10,149

s t0,s67,361 S 8,5965&r $ 8,596,587 S 2270J74 s 10,867,36t s 8.596,587 $ &596,587 S 2270374

Budgcfary Besir

Besb)

Tolal Actual

Ycer

Ycer(GAAP Encumbranccs

Paid Prior

Totel Currrnt

CITY OF AMARILI.O, TEXAS BONDED DEBT SERVICE FUNI) SCHEDULE OF REVENUES AND EXPENDITURES BY DEPARTMENT - BUDGEf,ARY BASIS YEAR ENDED SEPTEMBER 30, 2OT9

STATISTICAL SECTION This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the irrfonrration in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Page

Contents

Financial Trends These schedules contain trend information to help the reader understand how the City's financial information and well-being have changed over time.

249-254

Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

25s-26t

Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional

262-266

debt in the future.

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time. Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's finarrcial information relates to the services the City provides and the activities it performs.

267-268

269-273

Waterworks and Sewer System Information These schedules contain inforrnation about how the City's Waterworks and Sewer Systenr financial information relates to services and activities provided.

Drainage Utility Information These schedules contain information about how the City's Drainage Utility financial inforrnation relates to services and activities provided. Hotel Occupancy Tax Information These schedules contains inforrnation about how the City's Hotel Occupancy Tax financial inforrnation relates to services and activities provided.

274-277

278

279-28t

Sources: Unless otherwise noted, the information in these schedules is derived frorn the comprehensive arrrrual financial reports for the relevant year. The City irnplernented Staternent No. 34 in2002; schedules presenting government-wide infonrration include information beginning in that year.

247

This page left blank intontionally.

248

2017

2016

20t5

it9,99t,605

42,06.r,112 58.053,615 533,173.917 S 509.02?:36

38,003,,il7

s 548,&{r,r9{ S

r099t,328

5J84,9{9 2t,r28J63

r,650,695

49,89rJ30

7,497,255

2544254

2Jr5.936

r,623,t6{ r,398,866

5,879,00t

693lJ21

6,020,692

sJv\7fi

73,94,837t

77972282

3,812,461

7,466,6t0

5 690,m3,03r

6573:194

82d3,m9

s 700,85e99t

86,3{9,99

8519242

72T?.2l|

s 717.367251

,t36jol

s 325.209.71.1

I,9t 2,9t4

s 634,370,030

9.1,t97.685 I t2,5?3,215

7J27,100

s 6at,7{7,901

28,'117J22

s tu\lJf//,J62

25L763AsS

258,0t t.{3t

s r2{,rs8j80 S 36t,t08,366 s 313.685,122 S 286243,001 s 270215,092

249

See Independent Auditofs Report.

24t347J24

238,880,978

243.351J{0

Otherpupoces Unftsiricr€d

y,9502 3J892{0 3389Jr6

99.053 12,119,902 3,950,662 3,6{3,1()6

5,485,866 5 I,9.12,802

7,07t,0{5

l,0t?,858

29s,372581

t,079,6il r,6??,r,6r

860,609 I t,099,766

r79:t7t.&8

1,(b{,112

53562t2 290.75tJ62

s 296JS8,8r0 s 3l{J04259 S 311,950,968 S 107,789.831

270,t4?,996

r,ovr,60r 3,v2,472

6{,798,?20 S6?J0?,6S1 s t2,468J52 S 13,(x4J63 313283298 S21,8fi},?38 S 13Jd0320 S l{J78,882 S 16,05?,8',18

I r_997,330

Tolal cornpomnt units actiriries na pcitirn

s 355,?9oJ9r s 369,6t2,0{0

929,339J9.t S846,952210 SS{0345r5 S83SJ22597 $819,508253 S?89,6?8,5?2 57792543n s766,672,986 $?{8,856,179

26,9t8,tU) 2rJ48256

7294,W

9,866,537

t2,r26,899

869,77?,2?{ S 813,811,953 S 799,698,856 S 771252,119 9,615J69 t,650J95

s 3?tJ02:08

s 387227,80{

69.367,279

s 3g),fiH"206

55,475,614

s 166.139,632

t,.176,61I

s 309,t60,3t6

20t0

s 361,086,?02

rJ06J08

s 308,95?Jlo

20t I

35,1 r9J87

3,8r2J6.r

t,763,860

s 320390,99r

tot2

{3:05,956 {2,852,895 38J22,07r 53,1,t3:32 6,t.0t8j01 5?,t9t,18,t E 4?t,?t5.!X0 s 458,1?7,828 S ,l:14J75,393 S 418,157,685 S 400,533J54 S 368'851'93

6J6827o

S .ll1,8O1,458

Debr sen'ie

6tJ35,665 s

Componcnt UniB Nrr inr€stlKfll itr capilal 6sels

Reqriclod fd:

s 9r5,8t.tj65 s

(3224 r,491)

29J78.5.r5

r.6t039s

I 1,855,t5?

s 935,r?t,9s9 S

S ,18936?,0t1

6.084,330

823t.,1.17

6,588,817

s {33,39t,r46

't,652)78

s 44{,384,784

502,604J30

.t83;157J2?

Total pirnag' gomrrstt nel ass€ls

Uregrided

Othcr prposes

Cqflal oulla)'

Tax incronen fimming

Debt service

R€slricled for

Nct inv€stmefll in c+ilal as$ls

Primary Gorrmmcrl

Tohl bllsineset)F rctivilies n€l posilion

Unregricted

Busincselypc Acli\itics N€I inrEiDrcnl in c4ilal assels Ratricrcd fc D$t senice Capiul ornlay Orler purposes

ToIal gorsnm€ntal adivii€s tr€-l posilion

S 337,924,9?.1

s 355J03,179

396,165,87?

s 350,8?8255 s 365,806,537 s 361330,425

s 396.9?3J?t S

(28,8632.r2)

({7,06.22571

(20,7 r 5,856)

(70:{.1,908)

Unrtstrided

6.673J94 16J1,1,594

8549212 22,33t,Or8

7,4n,255 (32,r8,802)

5,48,r,919

8,398,866

26,918,t00

29-178,545

Tar incrumt limncing Capital outby 1,550,695

2,5 I 5,935

r,623,164

OIherPttrpoces

526239

25112s1

3,782207

5.538,062

2,36r,008

s 329J50,783

20tl

I,993J9r I,650j95

:x0,688

s 330,r39j,r7

2014

r,650J95

386.319,8.t7 S 369,427,169 S 366J07,710 S 159,'187'691

20tE

3,62 t,710

S 4j2,567,629 S

20t9

Debr senie

Regricrod for

N€t in\Eshr€flt in capital rsets

Gorcmmmlal Aclirilies

(eccruel besis of accounling) (uneudited)

ctTY OF AIUARILLO, TEXAS NET POSITION BY COIITPONENT, IAST TEN FISCAL YEARS

Exhibit A-l

etiritis cxpcs

Scnie

Tohl goyarnmnlrl rclitilic pregnm muucs

Urba rcda'dopmmtlhusir6 Qperaing gas and ontributims Cafd grats ad otributi<tns

Emicdmloplmt

Trasir

Struar tnllic ad m6ilwir6 Cukm ard rcrcaion Solid rvcrc

Public sfct)'ad halth

Goeral gormmnt ad adminirtration

Fcts, Fincs, ad Cha6cs fs

Prcgam Rcrouc Goremmolal *rititic:

Totel cmFomnl units rclit'il..s.rpc66

Arwillo lcat Gorqmol Cspddis

Ta\ lrcrcftnr RcitrrEarEil Zoft *l

,{ruillo Hming Finm Ccpontion Arwillo Hcaltt Fcilities Csporeio

ArsillePorts Ermts Diraicl

Amillo Eormric Detdoprnmt Capoation

Componcnl unils -.tEillo Hospital Disllid

Total primr!' toYcrnmdl crpcrc

Tod burims-$F *tivitic <pors

.{irport

Drainagc Utility

\\'arcr ild 56\rr

B6ins-typc .clh'itics

Total gorumtd

Ulba rcdoelopmutrouing lntdFlo loqt-lgmd$r

Ecorcrnic dcreloprmt

Tmsit

Solid irslc

Culrreadnrrcarim

hrblic sfet1, ad hcdth Srrcar tratlic ud aqinuing

Gmenl gormmcnt rd adninisruion

Gorcmmo tal rclirilias:

Erpcnc

20tt 2017

70t6

l0t5

Fbol Y..r 10ta

2tlt3 2012

10t I

20t0

270

t.770.527

t.653

}rJ t4

1,5?6 20it,5 t8

250

See Independent Audito/s Report.

8,tt0,952 7,50i,497 7,55L299 7,76.1.312 't37.912 61t 394 7{&018 801,886 92t,593 vr\stg 1.316,20? SSl92,l ,686,&15 |,t{9.6r6 5,823,{t6 5:89,633 5,0s8,30S r,s20,423 t0,330,9t3 ?,006,?81 6307,719 6,E23,3t2 6,661,627 6,6t\Zm 20,9?t.89t 2O,52LOI2 2optt,{90 t9J6E069 20.0?t&r5 m,s6L416 19,638,691 18,644,919 1t,23{,773 l?.226,650 21.1,655 20i,175 2l3.El9 207,192 Zll,575 188,419 19{.725 193.226 556.401 202.330 30,0?6 20,500 18&392 95,{5E 296,014 ll9,7d2 ll9,E59 ?t,o79 t?d352 66.632 t0O.229 ?$,5n 21J39.{50 2?.853,t20 23.6{6,6t0 26,t27,95t 10,392,653 2t,711,742 20,7.1&r(n 2ql{9,589 19,723,706 lqss&v2 12.033.363 t2,971,s62 r5,2{5,0E0 to,,rfl.t5r 27,a7,1X 8,032,159 9,5263E 12,681,594 3,{.1{,571 729E.{06 E?t{?1625 88,826,20j 87,676,946 7620tJE3 97,r{6,543 ?6,5!Olt6 76,03&5t{ _ 75,514,443 65,87{,120 70.t22.26E f

9,875.597 S 9,686.712 S 9.166.838 S 9,086,805 Sto,2?7.35.r S 9532,962 S10,071,778 S10.023.0tt S10,235,7{5 St0,?25.1?6

10.108.393 t0,216.il9 -+ 9,675,?s3 8,920,t24 9,033,256 9,5t9,99'l

1.500 90'985 16,353 3a,253 125,q!0 61,08,1 ?,o.r?.5?t 2.022.550 311.006 s88,99r,605 S{5.t33.9i9 S4{.286,5E2 $i2.9ta??3 S{0,q05,262+S29,}14,914 S56,tJ8,818- S33.066.366 S2t.t26,m2 S31.061.329

{6,588 t,715,262 2J033 r3 2,J63,6,1{ 138,1.44? 3,042,3?E 3.202,9,r{ 2,953,630 t0,3t&9{2 E.479,t99 t,E03,.165 t0.563.835 3.593,.179 tl82.r.993 il.165,622 11.196.882 t.t.6l7.2it t.t,58l,lt9 7O,$?.9t6 ?1s08,703 6t T26,156 6t,352,898 61,20r,600 9t,035,t35 79J62,762 78,5{5,i59 75,t02,t5? 71,64t 603 s 32lJ!gM_ __9_:02.sr5J35 __q_:03.te6.s39_ __I_?e3.53t.et_ __l_?61355{9_ -_9.-?6t.303.63r- --l-26e.?3{.2n- --l-?5?'?8&!!l- -llli'055J91- -l-?l!d2!!2:s 59,54?.t.to s 22.8@.856 s r0,99r,65E s 8,4t2,393 s 9J3r.rE2 S 8.350:67 s 8.739,t62 s 8.5 10.747 s 9,333,545 s 9856,490 t8,705.55t t6,9i9,339 20,(Bt.29 2,1,13{,763 2E,t56J67 lq2ol,869 2t,.190,{66 t7.t6{,756 3q77i,567 24. t7i.802 2.363.?2t 3,r02,t10 2,3.15.52{ 3,268,5{0 2,t75,t30 2.792"003 2,358,525 3,r 36.507 2,2 0,34 I 3,228. l{?

73,215.660 62,2?5,013 61,909,502 59,?13,515 5E3?9,668 56,986,58? @,199,606 5E29O.626 52,E?2.999 52,.101,135

s23,t8{,tr8 S20_mt,.t(x) s2t.O6.t,80r s20,85r,218 StE.757,862 Sl?,393,464 St9,(N4,399 S16,23q072 S17,56&368 S18,553.i56 il_i.3s.9r? 106,93{,t35 t09,09&94.t t0r,r8t,567 93.E06.629 92,l.r8,5.r.t 93J96108 E?.6{3,28r E2,193.7?6 E053,1.6?3 2.r.6{0.1{3 23,3?3.7.tr 23,58t,.t60 A.a74.7t6 20.553.t5t m235.525 20.897,35E 21,680,105 m,357,26S 20.1t9,342 29.?t2.3{t 29,0?0.7j6 27,3E7,5m 26.367,514 2.1,95{,{5? 15225,79E 26J95,40.1 25,t07,E55 2.1.i80,362 24.297,9ts 12.960.9i3 ts,401955 t7,.$9,.t26 15,390,0?8 t3,834,793 13.746,t25 r3,812d05 13,950,138 13,73{,078 l3:le{67 5,0?3,359 5.61,1,55t 5.121,7{2 4.702.836 4.919,193 6,0{1060 5.665.659 5,.H6,{.t6 5,567,2.t3 5,!t2,26 3,314.06? 3,(xt6,.l9l 3,083,969 2,t{?,95t 5:69,868 1586,912 3,2!?,.t65 3.8{t,058 6,558,8t9 122il,9r8 t0,?16,405 t 1,291,36t !a50.1,610 I 1,779,399 I 1,667,515 I l,61 1.626 t2.6?5,.t58 I t,3tat4? t2,96t9,76? I l,r6&t?r 22t1.767 ai50,205 I.532,615 ll3t,?31 5.?35.2?5 5,363,?61 3,t46,654 a3?r.9t5 2,0.r5,t?5 1fi5.76{ 1t1,702,665 l?7.286,.195 189,06125t 197,225,575 190,735,?18 2i4,010,6E2 223.0J2,??; 221,651,171 2t8,it29.?E t$.2{b,t3?

20r9

CITY OF ATVTARILLO, TEXAS CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual besis of eccounling) (unauditcd)

Exhibit A-2

larc

lacsla'i{ fadcbt satic

trlixod bcrvrgc tuc

Salcs

Propcrty

ItopqD' ia{cs. la'i{ for gcrd prposes

Gommct{tl *livlics;

and Othcr Changc ir Ncl As!.ls

GcnolRo'auc

Aroillo llalth Frililics Co(po.di.n Td lmrffiil ReinrsmnrZo*dl Amillo l,ocal Gorwrnol Cdpor:aim Told cmponcnl utri.s ma sFnsc

Auillo Hsiry Finare Capontitn

AmilloPorts Erurs Distic

AtrilloHoqitd Disrrid Auitlo Emnic Dctdogmt Ccpcation

Compomnl lnits

Toral Crimrr- torwmol nct crPqrs

B{sirw{yF *riYili6

Gorerumtal acriritic

Ncl (Erpce) Rcrurc

Totel mpomntmi6 rcYmE

Cafd gnts'd mrrblins

Corporrior AmilLo Lml Gomt Opcraillt gmls ad onrihlins

Tat trcrgnenr Rcinlctncnl Zorc g I

An{illo Hcdth Facilitics Coryocaior

funaillo Housiq Finacc Ccpa-lrio

Amillo Ecoromic Derrclogrcar Ccpontln AmilillcPoncr Ert*s Di$kr

Cmporetrl uoiB Amillo Hcpird Di$rid

Totj primry gormmol rtlllrc

Totd breimsryp rctiritic pro6rm rerus

Opa'eing grqa ad conribuior Cepitd trds ild contribrxim

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5,527 (2?0)

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?99

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s (il',E?t

72{9,197

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s (106.?6.r,227)

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(1,188)

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s (95J{3,rr3) _s (er,32?3zi)_ s (9r,.10?,329)

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267

s (123,5.1239)

20,259,35t

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s (r,r222r,4@) It 6E{, t63

s (r36,974,525)

s 2t.n6sv2

s trt36,9{9

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s (ti{,?26,570)

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s 65.0r5,0v2

3,834,920

s r t,935.272

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20t9

clTY oF AIIIARTLLO, TEXAS CHANGES IN NET POSITION I.ASTTEN FISCAL YEARS, CONTINUED (accrual besis of accounting) (Unauditcd)

Exhibit A-2

Tud hsiacs*ypc zcrirtie

tarc

Tot.l ompornl unils .clivilhs

CrNrceipahsitEt xcs Urcstriocd inrcgrtcat mit6s

Salcs

kopsty lscs.la'it{ fadcbt scnis

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olls

dispcitln of propcrty

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Oftd

dispociliotr ofFopcrty

lncorc (<Fr*) frm w $d

Unrsric&d inv€srtml caflf ngs

Gresreiprshsirctrs

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20r5

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tq226,554

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5,qr2,ril t6,too.ytB ?35,,t49

$7,Xn

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t6.7a\221

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t8.28r,59{

5,93?,,O2

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t.t(b.ts .r96,0?3

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252

See Independent Auditor's Report.

r29,0r3 (8,256,t9t) i39.767 r4,9r5.t69 3t,682,2t 19.5@,155 s t5.255.636 s 3r,tilr5o s t1J03260 s (56.919.986) S .7,*il,939 S 2?,965.59d

s 2.{s3:9r

s il20.1.()63

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(13,16r,57.r) (&9t3,(X8)

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TrJm

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2,6v).&l{

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20I9

clTY oF AI|IARILL0, TEXAS CHANGES IN NET POSITION IASTTEN FISCALYEARS, CONTINUED (eccrual besis of eccounting) (Unauditcd)

Exhibit A-2

43,66r.6{l

{t.89{..r28

4 1.75t.,r99

6t:r2.763

39,639.6t2

s r06-600-t93

90.534,266

t,.lr2:t7

r3,2t5,529

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t.3.10,072

3,(Ht,9il

r7,693

4,53t 5.50t

r0,626.6t2 t.r.r62,853

6.895 r7,693

8.55E

62.308,5?5

3,550t32

r0.0r6.563

I.0!10,928

5,6{8

7218

55,145

7:r27 r,902J33

94J93

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6Jzt,69t

t0.t60.588

n 6,t80

1,7t4

7,332

s 5t704.50E $ 60.155.026

253

3E 633,.137

t,6ru,659

7.t27.61

69t,Trt

7.On

29,t55

32,7$Jr0

r0,(n3,t88

6.673:194

sA276

t2:t27

628,O29

.llJ0l,93.t

298,680

333t9.784

I t,500,973

3,8r2,46,1

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6J09

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t2:f79,76a

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246.,574

5,7.t0

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t1,222,t%

39,3{6,78? 2,656,334

2t0.o8t

s t.0t0..134

t 55.to.2t0 s s0.63{.024 S 53.909.060 S 5{,76?.ttt S 57.448.022

4tJ67.tt}

t47:t4O

8t.905

20to

t 46264.565 S {3-t07.?3,t S ,11.600-6r.1

295,059 .r4J.r.r,080

70,967

6,742

r,80{3.r5

?,742

t.%,717

20lt

u42

2012

u53.58r

2013

54-,141.526 50.057J.14

80,686

1,,rc2,375

?.742

20t4

t 48.fr9.85{t S 5tJ03,34? $ 55,932.329 S 51.713,160

See Independent Auditot's Report.

_s 7697e.!!l_

_t_!t362SU_

45,820

75,6 715,(X3

6t5,689

zll5

16J30.tR .r933t042

21,203

t,6Et,9s4

3 t.933

r,t7t.590

3.r,8?{

t,39t,03{ ?1,t95

2016

10,608

20t7

t.160,490 69,530 6J5,26t

s 4i.647.388 S 4t,087220

2,0tt

Soorce: lnfornration obtain€d frorn the City's Comprehemire Annual Fimrcbl Reports.

Toral ttl other govemmeatal funds

Assigred for: Cafltal projeus

Compercated absances

Commined foc

Special purposes

Dcbr snice fund Capital projccrs

Reslrided for:

Capts or principal

Prepaid itans Unc{llcted tax€s

Noncxpendable:

Undesigmtcd

Cornpensated absanccs ftmd

Spocial rer,enue funds

Unresened. rcported in: Dcbt sen'ice fund Capital poirts

Reserved

All Other Govcnmentrt Funds

Total gcnerel fund

Unresenedfumssigred

Ercumbrances

Nonspen&ble: Pretaid items lnvenlory Uncollected taxes Advances to othcr lunds Comminod for:

Rened

Gcncral Furd

2019

CITY OF AIVIARILLO, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) (unaudited)

Exhibit A-3

(udcr)

2.t?6..r,t8

mmepitel crpmditurtr

Dcbt smic s r pcn6t.t of

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Tud ulu lirrencing sore6 (usd)

lsaneof lc6-ram dcbt

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Bmdproim

Payrmt !o rcfud bond csctos'a8al

Orhc

2.tot 950

3. t.t99t

32.(X6.2.r2

.r_365%

6r.t9&038

6.837.279

63.960.00t)

927j6

(t r,.r90, l9{)

10,?g),666

(32, r5 r.796)

253,2r9,562

s (4r.2.r3.507)

6,612,636

It,567,7.16

(1t.3.r3.r03)

TrNfsloodrdfutrds

{{8,(no_786)

270.t{?.496

t.6@.652

2.84 r.509 3,.t?5.426

5.Orl.0?0

9,3t{,266

t t.995.0q)

({0r,232)

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12,826.,193

fl3.988.2il)

1.E6396

2.910?r'o

(33i1,23r) S

fl^05t-158)

254

2.Olg.h

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2.5r0.09t

2:60,(m

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I,r85J?l

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t3,95{,r6.r

3r5.623

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7t7.219

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l8,t.Yr9.l69

1,762267

2.Olgra

1.9t0%

(5,512213)

(,t?j.olst S ?20.665 S 2.173'E

t,05t.098

r,367.000

(7,5E3JE3)

7,27{,5tt

(6.5m.3! r)

t?3.7t0.q)t

5.??i.t52

5-960-000

(77.500)

(r0,37J,070)

to,265.t22

(6.246.t671

t73,995.690

1..157.052

t.5i2,6 t5

t,59t.569

r,37 1.563

r.662.908

2,5t6912 2.t.it t.672

r r,69rJ.l8

t.476,6t I

It.503,130

3.5t)6.s27 I t.5?E,?96 5,269.868

(2r3.2.!0)

t0,t20,2.19 (r0.333,4E9)

.t33.905

178.557.ffi

r,3t3,0t5

r,730,024

l-363.3 t3

t,706,7m t,673.t66

20.385,363

a&?.9tr

3.95?,3tE I t.912.850

r,763.860

207,,t()6.635 tt3.Ax,{?t

t.8.u,067 t,@0,5t2

3,m3,969 20,736,329

I,E5?,057

See Independent Auditot's Report.

2.la?Vo

3,(X)6J9r 12.66.1,E97

t2,26r.t00

2 I t.t96.?t9

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t2,53e33? (l2i{9,.1.15} (r,769,?r9)

fl t-518.{321

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j?.r.058

t,5t3,6Et

r,?5&596

r,968,331

t.6t4507

2,08{t.6t9

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epddilue;

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Dcbrsix

33r{,06? 3ts?3,059

r2,2r t.9tt

6.5s&8t9

2t575.n5

3,975.529 52.636.02r

60..139,6{{

3.S66,91 5

Capital otbry'

I t,635,9r,1

1o.816,5,12

I t.t07.5t8

r5,o7E 306

I t,66t,27t

t2.665,085

Urba cda'doprmt.nd husint Eonomic dmlo0rnqratruism

1,267,Ot6

r0,970,3E0

.t,.t02,tE8

.t,t20,53r

.1,633,595

.r,?t6,Et r

r0,532j9r

5,0it 5?6

t.3t0.196

t7.765,56t 18.t54,024

J2258,6t2

r3,043,.t(l?

I I,063,27r

19,t23,95.r

19,6,{4,639

r3.019.526

I t,3 I 1,765

r.t,925,03? 83,263,087

1.t,t75,8t6

86,t{{.050

rr.09a29r t9,50t.953 r9,0r0,9t2

t6,t07,om eaE8z532 r9,333.t?t

a6,573.732

20,n4tqr

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t,007.@r 85t 95I 526,to't

6:35p25

856.72t 30.025,565

6.mo 2,8t6,177

25396,99t

r,{?&752

95,671000 2260.,199

t78.99t.57t t67.7.rt.t23 167.1{0.590

t39.t70 8t{.676

89!0'296

2010

9E 72,r,@8

t,t,t32,7.t5

17,t62,7ft 1otJ86,353

r9.367,655 t06,3?9,423

2 1,952,536

t6,56 I,807

It 85t.Et6 I rzprr,659

2t.393,E46 r5.!93,540

2i.t29.9E9

Solid rvrrc

r8,623,409 I rL510,82.r

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20J?2.7i6 I t6.45t,569

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61t-O9?

t90.829-8t{ tE5.29.1.792

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4t?,8t6

471-337

2tt-0('7-766 213.899.010

r97.2t0J3t 20&r23.t5.t

t-E06.51t

i95,576 222.0f6.7tO

382,3(b 6?t,563

42I,t t9

.r9r,669

.t?9,t90

{8190t

566,680

609.697

Total remrc

5,8,r6,22J

6,r60,38t

{{&256 {t&222

560,5{5

626r 19 426,tt0

6te885

5,937.67

6,{t4,937

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5,699,964

1,0i12,999

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6,4t?,.il9

6.019J9{

9r.tJ25 3t,29t,$22

t0&3,r5 3t,985.47.r

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3t33r,237

35.t6t 83t

3{,67&tru

s9.,n4 am,676

?9?009

tTt(xn

655,85? 100.0@

22,t98

t,?6t,tt5

t0,t4{ {,685,O53

.t5,63E

20135t 2,6982t2 622,tt3 3,976,6r0

1,557.653

m,5r0.t02

1,584,965

2,284.J64

2,3 r 5, rt5

2.Jt9912

s 100,964,irc7

r05.t0t.533

20lt

t25,Ea8 I t,689,007 600,716

lnwstlmt carrinEs OttermtCsad missim Misllincore

36,1?.f,.r59

l0r2

5,On.741

Fircad fqfcitures

39,506,19t

t.675,1 r9

9t3.52 2 t,9.t5,5t5

3.51{l?0

t9.960.5t4

s ilt.2ta385

3,D9.01{

2013

s I1E34.r,966

?Jl1

38.909,r57 6,5{9.307 2,159.03r

Clurgcs fcwix

6d0,t29

t.076j55

Rcwc liom panicipatiog tair6 antilics Oth6 mdtt prticipdirc ?.16,065

t87,49 &?a3.879

.19.?6t

9,5fi,Or8

87,099

7.2y',396

Ciliznnrdbuli(rc

21,W

2627Lt6a

9r9,?10

29,t t6,563

2t,tz,.?t3

21.77t,871

tj6l765

s t2lj55,l}8r

t,2n,7i2

123,29,8ta

t,$79,0.t5 23.69t.837

s L975,922 t,069,.il0

125.702610

20r5

3,211,?t7

20t6

3j?9,t43

20r?

3,3m,716

I 3 t..t28,6

20tt

3.55{,t7{

s li{.265,695

t0tt

Coxrut ion participario

Gnmsin+id

lntcrgorvnrncdd rmu

lntdf@d6qc

Licreandpsmirs

Roum Ta6

(modified accruel basis of accounting) (unaudited)

CITY OF AIIIARILLO, TEXAS GOIIERNI}IENTAL FI'NDS CHANGES IN FUND BALANCES, GOVERNMENTAL FI'NDS, LAST TEN FISCAL YEARS

Exhibit A-4

\875554 a865,530

32,36t,774 33212,357

3609r,780 3?586,65?

20t2

20r3

2014

20t5

20t6

48-02o/o

9O-640/o

4032To

62-98'/o

63.Uoh

(3) $750,4t4 sas rcbaed during the par anded Septcmbcr 30, 2019. (2) $5?7260 nas rebaed &rring the )ear cndcd S@tsnbcr 30, 201 8. (l) $18,837 va nbatod duing thc par aded Seilember 3O,2O17.

2s5

See lndependent Auditor's Report.

* The City rws able to keep its pmpqty ta,\ raes fairly stable becarse ofsubstanlial gmrvth in prcperty tax valtrc (Se Exhibit A-6-)

Notcs:

20tG20t9

Change

954,629

t338%

17,350,836

wm8.362

59,171698

52r8,0r0

45,,08,274

893,587

20t9

t7,96a785

693?-936 8l 7208,732 (31

8r6r49

57,403J69

4496a'7W

20r8

55,544,44E

27E9,s43 4 504,tD

42,003,(89

2017

t23284,8t4

66t0,423 (l)

1t.l20h

t35,0t6179

r32,005,872

t25,72647

6'777,t85

znu83

t2r,3s5,08r

I18,34,966 t8,2E4,594

t6J78,5s7

6,341,559

810"126

56,093,996

40,00t,86?

I t 1,212,385

t05,t0t,533

r00,984,407

95,672,000

16,712,2,3

t6,100,508

t5,9t2,628

15,302,905

Total Tarcs

t8,226,5&

805,136

5Lt260t7 75t,825

595,0t6

55,48\6n

533,575

48256ffi4 54Jt3,835

1,78L8ffi

fi\0',s

16,033,6n

5,00etEl 5,69r,1l8 5,93UV2

4,399,887

Tarcs

Tarcs 5E5:r29

Tares

Occupency

Bevcregc

42,t71,836

Sehs Teres

Gross Rcccipts Busincss

Hotcl

MLcd

*iTfj,Hi,:.;f accou nti ng)

48tL16f

2,84683t

2,750,t67

30,903,042

20t I

\737,072

30,4?4,57t

20r0

Fiscal Year

Property Taxes* Dcbt Gencral Fund Senicc

(modi ned

CITY OF AMARILLO, TEXA,S TAX REVENUF,S BY SOT]RCE, GOVERNMENTAL FI'IYDS, LAST TEN FISCAL YEARS

Exhibt A-5

Notcs:

0.36838

r3,r49,054,756

256

See Independent Auditor's Report.

l0(P/oofactual valueforbusinesspenonalpopertyild lfitToforrpalestateptoFrty. TotrGaeperslfl)oftamblevalue.

Property in Potter Curnty ard Randall County is reassesd annually- The counties ass€ss popetty at approximately

Source Potter and Randall Counties

0.36361

n:rE1nl,Mt

t5,3t4,198,428

t$12t47,371

r3,47e05r,057

\t0u46,s87 \t65,t43572

t4 890J20,628

\82o,6s7,962

r16q862,666

o.35072

t2,065,46509

\0?4J3Eg3t

14140,204,030

t,767,776977

am4,664,460

.L37L427,053

0.350?2

tt,54LOS92&

8,54q723J24

r r,89626t,823

0.345(B

I t,t00,054Jt8

t,968J7E$72

t,650,46t,90t

0.34Ut9 t0J60,454,171

t,8t3,527$4t

r3,rb8J33 590

r,57q344,589

r r,489,089,00t

20t5 20t6 20t7 20t8 20t9

t?,573,9929t2

l,510,?66292

r r,0633r5J20

20r4

0.320(B

tz3589n9n

1,417,493521

t0,456402,589

t,90a510338

r0,94r,4r9,006

0.320(B

to257,946329

t,858JE5$70

2013

0.3r009

to,ossJmJ32

1,59,1987,161

12"1167t2,199

10,737236,627

t 1,650,694,E93

1,379;+95,577

t0,299Jt0,694

2012

0.3r009

I1,561,052$83

9991,35t,569

TerablcYaluc

Total Dircct Ter Ratc

l,569J0l3t,l

20t I

rJr3,355J90 t,35t,284t99

10,t47587,093

20r0

Propcrty

Asscsscd Valuc

Pcrsonal

Real Estatc

Ycar

Tar-Ercmpt

Busiocss

Fiscal

Total

Lcss:

CITY OFAMARILLO,TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALI'E OF TAXABLE PROPERTY, LAST lTN FISCAL YEARS (unaudited)

Exhibit A-6

School

District t.31700 r.36000

School

District r.29000 r.29000

Collcgc

District

0.t84t3 0.r8996

Dislrict 20 t. t7000

t.t7000

0.3r009 0.3r009

0.70r00

t.27650

r.23000

0.22790

0.36838

0.04 r40

statul€s-

257

See Independent Auditofs Report.

The nraximum ta\ ralc provided by City charter is $l -8Q of Nhich $1.30 may be levied for general purpos€s; thc rcmaining $0.50 may be uscd only for rvatenvorlis purposes.

0.35072

0.34509

r- 16900

t_t637t r. r 0330

0.44r26

0.32698

t.2337t t.r8590 0.43 126

0.68500 1.35000

r.26500

0.20750

r.23900

0.36364

t.t6t90 0.4t473

0.03666

1.2680,1

t.237't7

t.t6l90 0.40605

o-6&02 0.67000

0.32698

0.02506

r.35000

0.20?50

r. r8900

0.32698

20t7 20t8 20t9

1.35000

r.26000

r.26500

0.20750

r.18900

0.35072

0.023?4

0.32566

20t6

1.29000

1.2r500

0.20750

l. r8900

0.02594

0.3 r9r5

t.t6t90 0.399t4 0.63402

t.35000

20r5

t.29440

t.t6750 0.3924t o-63402

r.35000

t.22800

0.t9950

t. t8900

20t4

t.26960

1.t6744 0.38430

0-62?07

r.35000

1.26500

0.19950

t. I 7000

0.34009

0.026?4

0.3 r 335

0.32009

0.02733

0.29276

t.26960

0.63350

r.35000

r.29000

0.32009

0.r8938

20t 3

0.02730 t. t7000

0.02779

0.29230

t.t7289 0.37756

20t2

t.26862 r. I 8252

0.36890

0.599r r

0.28279

t.24950

t-I8544 0.36062

0.s9627

20t r

0.02770

o.28239

School

Dislrict

School

District

Bushlend Independcnt

County

lndcpendcnt

Park

llighland

Rendall

Poltcr County

20r0

Ratc

Dircct

Basic Rele

lndependent

Debt Sen'icc

Amarillo

and County Education

Toaal

Rivcr Rord

Obligalion

Cenyon lndependent

School District

Ycar

Fiscal

Amarillo Independent

Overlapping Ratcs

General

City Direct Rates

(rate per $100 ofassessed value) (unaudited)

CITY OF AMARILLO, TEXAS DIRECT AI\D OVERLAPPING PROPERTY TAX RATES, LAST TEN FISCAL YEARS

Erhibit A-7

1.o?vh l-06,ZYo 0.765Yo

0.672qo

o.65y4. O.629Yo

0.6t vo o-182% O-396Yo

140,723J97 2 139,623,171 3

1w,647,452 4

88J05Jr9 5 86,691,0t6 6

n,732,t69 7 80,r30,s85 8 63,402,t95 9 52,@0,896 l0

BSA Hospital LLC

Bell Helicopter Textron

Walmart

Northwest Texas Healthcare

BNSF RailwayCompany

Atmas Energlr

Case Pmperties

Amarillo Mall LLC

Amarillo Economic Development Corp.

9,463,555,829 92-524o/c 100_00096

12,165,998,654

3 t3,r{9J54J56

Source: Polter Randall Appraisal Disilrict

Total taxable wlue of all taxpa)€rs

Total taxable valuc ofother taxpaprs

258

See lndependent Auditot's Report-

94.71T/o

52739s,740 7-4?6.h

983,054t02

9,99tJ5t,569

5.2830,6

47954,689

0-fix)%

Ben E. Keilh

Total taxable value oflen hrgest taxpayen

o.x*h 8

36,8@,t35 0-0m%

AmarilloNatioml Bank

lfl).flD7o

o-480P/,

O37P/o

0-000p4

O-O4V/o

63gns23

O-334'/o

O-27\c/o

O-446Vo

0.843%

0.E489o

0.m096

0.00c6

O-Cl3o/o

37,T)5,299

33,345,621

2?,059,fl)6

44526,236

84,248J99

84,745,991

67388J38 3

0.fix)96

Valuc

Southrvesfem Bell Telepbone Cornpany

Southrvestenr Public Service

Terablc Valuc Rank

CityTarablc

Veluc

l-t3l%

Tareble Velue Rrnk

Pcrtenl ofTotal

CityTexablc

20r0 Pertcnt ofTotel

148,659,501 I

Taxpaycr

20t9

crrY oF AMARTLLO, TEXAS PRINCIPAL PROPERTY TAtrPAYERS, CTIRRENT YEAR AND NINE YEARS AGO (unaudited)

Exhibit A-8

Tax Levied for the Fiscal

Year

Ended

September 30,

98.64

36,762,612

38,751J0t

37,270,434

39236,66 40,948,124 44,623,248 46A46,992

2016

20t7

20r8

20t9

Sources: Potter and Randall County Tax Offices

99.45 99.38 99.46

99.0s 98.93

37,M3,7T1 38,993,703

40,726,636 44,198,870 45,951,750

301,165

242202 t67,080

98.76 99.05 99.05 98.93

40,559,556

44,198,870

45,951J50

259

See Independent Audito/s Rcport

99.62

35,527,615

20t5

98.64

35,179,859

35,6&,675

99.9t 32,802,991

40s9r6 347J56

2014

98.67

32,397,075

32,832,489

20t3

99.87

378323

98.69

31J38,183

32,159248

2012

99.93

30,6t6960 34116,506 339,267

98.82

30277,693

30,639,878

201I

99.65

29,9t32O3

3OA09J76

20r0

30,303,946

98.30

2902t939

29,523,733

2009 390,743

ofLew

98.37

Amount

Percentage

Total Collections to Date

99.73

ofLevy

Collections in Subsequent Yearc

2944,2626.t7

Amount

Collected within the Fiscal Year of the [,evy Percentage

(unaudited)

4206,E7.t7

Fiscal

CITY OF AMARTLLO, TEXAS

pRopERTy TAX LEVIES AND COLLECTIONS, LAST TEN FISCAL YEARS

Exhibit A-9

t99342

Mmufacturing

lVholesale Tradc

Orhcr Services

r01,35?

zlr0

Source: Srae olTexas http6//ourcpo-cFsbte.Di.uyallocalio./llistSal€s.isp

260

See Independent Audito/s Report.

29.

2U.

T/.

?% LYt

2f/.

_$ x868,62!_ -S \O4J8_ _t 2Jls,15e_

llot rcported tlol rcporbd

s 2,ilr,$6

Nurcporrd NoarEpodcd NotEpodcd

t,o?l 3 5,868 137,345 81,,197 77,49 185,594

t,334 t 1,217 8,828 8,995 156,65{ t4t,6m 83,862 6,& 70,539 65,543 161,328 1,15.841 1,420,091 r"553,612 tJ172n 3,030 3,r(x, \9U 82,826 74,283 SLtn 9,15? 13,495 il,6(b 2920' 47t76 37,n8 38,356 34,31t 45,&D 1,061 53 78 17,ffi. 49J&5 6sJ33 5,843 5,566 5:r9 2,ffi 2;76 2,s65 22,939 25,854 X,v72 339,9m 38t.756 ffi,977 95,560 86,5@ 80,9{6

20il

s 3 trt 345 _t_1.r04e{0_ _g-l,t0r,!!!_ l_:.r4$1!_ _!_1.r04,e!!_

Not repon€d

22.781

39t,3t2 407,%2

mt2

l{otreponed Notreponed Nolnpofled

Nde: R@rted sat€s tax inc-ludes only illorils sutibecr to $alc sal€s tax

r. All tndusri:s b a lotrl ofall industri€s t€po.tod and not rcport€d.

Not reported

Nor (€portcd

5,718

52r5 r43s5 21.43

r6,034

n 70J33

75,386

13Jg9

szJ3t 55

t2,{0 46,176

ttJlt .f9989

25ts

l,67tw 90,646

t,638,621

208536

114,6!,

77,ffi zfttls3

c2,?vt

2,tr2

89Jr8

I 10,173

tfiJm

l,,f?6

t56,la)

t 83m

t03,099

r,367

2ttl3

I t,988

Not rcDort€d

2011

CrhrdrrYar 20ls

Norrcpo(cd tlolrcponod NotrcPofod

ml6

L789 t L71l t \4t9 9,000 s,r{,r d3s0 156,533 13.1,,t54 149,903 t213]7 n6,G2, rot,6f7 90J34 77,U2 $,r03 t94,4t7 188,942 t933t2 t,653,926 1,688,?10 1,696,032 1,t69 tJ12 2J0t t20,7u r32,82t t30ft lt7l7 20J51 t6,6t I 48,556 45,984 tg,TA 16,168 50,199 42J8r n6763 71,048 75,056 69J86 4,591 5,066 4266 14071 rqm t,6r6 25915 5,33,f 28,1$ 1273f') 451,96t 1d3,1t 101,633 95,65 95247

20t7

Nor r€Dorred

rNotc: Stae hxable sd6 infonmlio.r b nol avaabbb for thc 2019 C.leda Ycar

Citydir€cl sales bx rate

All lnduslries r'

Ottrer

3@.

t@,053

Acmrnodation/Food Services

Ptrblic Adminisrradon

32,105

470,{98

ArtsrEnrcda inmenURecrea[on

3,85?

r3Jil

69,873

416

Educatftxd Servks lballh CarelSoci al Assblance

AdminlSrponAVac Mgmt/Rarcdiatim

Managenrent of Companics/Entcrprises

ProftssbmllScientilic/Tccinical Services

37,380

a2,wI 4t513

Lcing

Financc/lngrnance

R€al Estate/Rental

lnformatim

I,886 155,029

TnnsponatmAvarchnsing

r,680,577

t2,002

Corctnrtior

Reail Trade

ll 1,987

2Y.

6,159

t3,269 159,126

tftiliti€s

Agricultr€/Fdcsty/Fisbing/Hun ing MininetQrnrryi4il)al and Cas

mlg.

(unaudited)

(in Sl,00(b)

CITY OF AMARILI,O, TEXAS TAXABLE SALES BY CATEGORY, LAST TEN CALENDAR YEARS

Exhibit A-10

6.25

6.2s 6.25

62s 625 62s 625

2.0 2.O 2.O

2.0 2.0 2.0 2.0 2.O 2.O

201I

2012 2013

2014

20t5 2016 2017 2018

2019

261

See Independent Arditot's Report.

* The Amarillo Economic Development Corporation is funded with lD percent sales tax.

Nore: The City sales tax rate may be changed only with the appronal of the sate lqgislature.

Sources: City Budgpt Offrce and Department of Finance

6.2s

2.0

20t0 6.25

State

Rate

Fiscal Year

Direct

City"

(unaudited)

CITY OF AIUARILLO, TEXAS DTRECT AND OVERLAPPING SALES TAX RATES, LAST TEN FTSCAL YEARS

Exhibit A-ll

38.6896

684.r0r

63-960/ 45-82Yo

25-33Y.

4352t28 19,405,0m

\70oJs3

Radall Curnty

Highland Part lrdep€ndent School Disrdcr

Bushlard lndepcndent Sclrool Distrid

{d h$inesses should be taken into amunl. Horrever, this does not imp$ ttut every ta<pa1a

?52

See Independent Auditor's Report

City of Amuillo urstanding debt irrcludes all ggrrcrnmanal aciivilies debt.

b a resident and, therefore rcsponsible for repaying ttre debt of eadt overlryping gorcrm*nt

debt burden borne by the rcsideots

estimales lhe portion of the outstanding debt of thw overlapping govenrmenb th* is bome by the resklenS and brsinesses of the City of Amarillo. This process reognizes that, when onsidcrirg tre Citys ability o bsrr and repay long-lerm debt, rlp entirc

Notcs: Overhpping governmars ae those tha ooincide d l€d in pan, with the geogrqhic boundaties ofthe City. Thb sdodule

Debt outslanding data provided by each govemmental unit.

Sourtcs: AssssedvaluedatausodtoestimareryplicablepelwrtagresprovidodbytheMunicipalAdvisoryCouttciLOaober20lT-

Total dircct and ovcrlapping dcbt

CityofAmuillo*

Total ov€dapping debt

&89rJ7r

76-ll%o

7t,6?8221

Potl€r County

494,?85,043

50,5r5,m0

414,270,M3

a?$,8r3

54,551296

25.16%o

u%,t91

65,65?36

74955,471

83,9e7,434

10,954555

0ubtanding

Applicablc Dcbt

River Road lndepender* School Disricr

169,745,000

Canyon lndependart Schol Districr

100-00?6

9&E3%

l00.(Xt%

74,955,171

s 236757,1n

Amri llo Hospital Disrict

Amri llo Collqc Districl

Amaillo lndependent School District

OuHanding

Nct Ihbt

(unaudited)

Pcrccnt Applicablc

CITYOFAMARILLO,TEXAS ACTIVITIES DEBtr, AS OF SEPTEMBER 30, 2OI9

DI RECT AND OVERLAPPING GOVERNMENTAL

Erhibit A-12

vJj-z

93ZSf r

sssb'6sc zlttsr'99c

6rd7frt'en

%e67

wLz

%tLz

Lt't,,'J

rrvgtl

€I-Vrqlqxu

FGr.t p€l1sr1

E;a-.------_.ffi- IE$dFpf

ort']rdsr

zsf€Jt'H 80t'9t6'0e

t#(frL9

6ortBl6

6E lrd€r

olslst.U

rFo

94f,c0

xrgo

Jo{FA qlFlFrlry pa8nru4

,rresv p.ds

xPoFFqSlu.t

t4roaars.rl

r9r.'f00b[

rsffglt

f€ls6fLT. s€9't3.!t'82

€zr'r88t

8lt'r9f8

-ffiE-.----ffi--lfo-ffi---

sltw,{ 'IE sli r€.L J.sn td L rfl J.{tq 9Nl(INvrsrno do souvu SlllXEI. UrlIuVI{V dO,LI,IJ

Pr.ll

JaildDrO

002il ]6'Sil

8''t$

(E9'SZrr

x€ro tsg0 zg'ua

t90'€98'SZ

zzr'r6,f0l 96f€A

zsrtl6b

7lrar9i69 66fZrf,6r ag'illlJt7. orfr.t r'Fd. zil'dr9.rc.

8s6'r !c9'rt

l9s't[9't I cI5'lrob ol8?8'b

of,9Tt t't I

rg.gil

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959?T

!6SO t6t90

[t'9rl

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t0'16€ 9CUE

Stele

gett€r't 6,sltsfz

(m's6i6'lf

qn'o€rbg (m'966'll

mBrsb6

96s9rC€

rr6'sart

z9d(xn'l

s9fzgt

(po4pnrun)

5.St.n|tAl

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o*2i99)t

rs6trfrll

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zsf6rstst

,s''fs9't6 Let:s#ts

utotrsot 26f,0{,su

Effi-Erffi---E-Effi--dqr{ A!..Try.s.s

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tt'utl

96f,f6fil €66'6tdt

rsrft,r.gtf'.

xtLT

xsLT

t9'59''l

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60tsrf,0sl

ssd.96t

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6r6l9rt9r

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zsftsfegr t0l:9[f;Gt-t

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ev:dttz

959'egAr

w'c.

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rgdrfgs

6sou'6€ D€9S6f6

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r8t'tr0'6

otg.8f6;rze

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0',tsLla

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t6s8z

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grr,t9't

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zll)z I toz ot0z

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silau.rFl:Fuq,qtors.praTq Fnqtall:tlQp&{P-t5lF3r|(llJ.ll*tDdt qln C :srloN

'ude1 sJolpny tuapudapul aos

tgc,

5-6t96

.t..t296

2.t996

t.4r4.0m.403 l,J3r,4t9,E.ri r.{t9,05l6t s t22E.?!5.607 s 1,16t il.t.79{ s I,166,3t9,.163

32liY.

264

See Independent Auditot's Report.

2.9t9(

s l.t5,Ln2,66o S |,t20,tr6,52t S

r86.026,t3t

801.66{

98s_3,r

t.6ar

rJ06,&13,359

9C,022

99'r.26

J.71Y.

t90.969.712

r-096-576

1,226.{?

2-6U.

t86.&28,a95

200.E7t 7:X

2.r&727-5t6

t3t1.67e372

323.5i?.t69

l,i{5,5t0

r,5E6. r3

2.54%

32.r,t62,E49

3236.856

2,323,931

r-{t0.t62

2.r?.630-910

502.69r.25

t.or&E06

t.{7?_9;

2.ti96

305.?.ti,0t2

{62,565

&967,25r r0,969,250

7.338,808

23,r r7.3.t{l S 9.962.t82 130,575.609

137.972,05?

2r,.rz,&t{t

?1,4n.62

Fbcd Ycrr

2lll5

lq2rrJ:16

mr6

9,595,52.t

Noro: Duails rcgrding ftc Cit/s outsanding dcbt o bc foDd in fic nolcs lo lhc fireid sarmrr ' Erclud6 \\'ar.t AulhtriD'Dcbl

D.bls.i(rsrpclutrgc ofnoHpit l6Frditu6

kgaldcbrmqin

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rcpaygcral dcbl

Ls: ArrcmtssdGidclo

Ps€dla

Pcmlagc of eslimicd tclual p<opcty rzlrc

Total

Rod S6ic6 Bonds

9.0$,68t

5,63.r,t68

t,85{t,(X{

t,97t.551

t 575,7.10

t61,8,16,891

2t.ox,v72

.r9,2t1i99

!79.3!6,?03

r67,3rij82

69,642,2v2

6e5r0.56{

20t7

6r.6?8330

66.21 1938

Dainasc UtiliD'Bonds

20tt

\ltrer& Sarrbonds Airpon Bods

Gml bsrdod dcbl clstrdhg Tr slp'ponod dcbt SFocial wt/othcrd$t

20tt

CITYOFAMARILLO,TEXAS

t9oIu.t33

,r-139-636

r99-9r9-295

189,t60,t30

td?,(n3

969.80

t89.88,rJfl

381.655

y,E..gt

t.8596

190266.1'16

r328r,?Sr

t4r.t t9.9tt

&56t,t48

27J95,528

2012

l9&6r2.076

252,3r4

r,0t6.35

1.98Y.

r9E E6{3qr

t{6,6.12.250 t{,653,3E2

2E,6Er.635 8,887,r23

20il s

r7e{68.s r8

2t6,923

905.55

t.?3%

t71685,.r.rr

!5-96,r.670

r23,55 I,627

3,r65,3Ei

30.003,76r

20r0

2.49*

3-t3%

3-tc!5

3.1,1%

3.0r?5

t25?-39&20t tJ35,t9r.293 l2l1,6?3,2m l.l6t,69Jgt I,156,105,2tE t.05t-l??-T7t s t.fi5.031.163 s I,021,788.739 S 966,{5ilt3 S 983.636,770

r99J20-{il)

69&t65

I,007.65

r.t6%

t.t2N

2J58J59

l t,s95,596

t0,5m,2r7

r36269,r08 t t,8m,892 5,tr9,993

t3t 5?9,5t2

2t,863,061

t,25,620

20t3

l0,39r.a7l

21,649,Tn

20td

RATIOS OF GENERAL BONDSD DEBT OLTTSTANDING AND LEGAL DEBT IIIARGIN' IIC'ST TEN FISCAL YEARS (uoeudilcd)

Exhibit A-14

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31,9E7,4(b

2J6t,W3 2,497,U27

39,178,131

42,56t,770 42,585261 52,937,576

75,540,295

86,129,584

79,l99,65

20t7 20t8

20r9

2.70

2-t5 3:127269

4224902 4249,t48

9,100,(x)0

10,440,(n0

ilJ50,(n0 11,770,fi)0

30,4E1,498

41,193,536

24,020,69

2350,787

2p4t,420

266

See lndependent Audito/s Report.

Notes: Details regardingthe City's outsandingdebt can be fourd in the notes to the financial stat€rn€nts. Operafingexpanses do rxlt include interest depreciat

t.50

2.58

2.& 2J44affi

73,927,N0

34,139,162

3,077,633

2016

8,065,000

29A34,869

36,415,6(B

68,8E4,71I

3,034,233

20r5

3.44

7,4m,000

3,462,630

36,842249

36,683,390

76,988,269

3,186,396

20t4

3.03

3,1s7,712

7,490,000

4,320267

35,135,236

32.272,929

71,728432

20r3

3.03

31,E73,688

4252,O77

7,290,000

34,117,O20

70242,7E5

2012

39,676,4W

297E,655

3.89

5,350,000

t7,8y2Jm

34,436,713

3,172,696

3232,t74

Coverage

2898,168

Interest

7,210,000

76,794,307

20t I

Principal

Debt Scrvice

2.t7

Interest

Net Available Revenue

2,88/,,U4

55,502,109

20r0

Expenses

Total Rcvenuc

Lcss:

cRwtwA

Lcss:

Operating

Year

Fiscal

Water Revenue Bonds

PLEDGED-REVENI E CO\IERAGE, LAST TEN FTSCAL YEARS (unaudited)

crTY oF AMARTLLO, TEXAS

Erhibit A-16

4.1Yt 3.E%

3.lca 3.3Vo 3.l%o 2.8Yo

33,419 33,591 33,695

33,6t5 33,141 32,722 32,49E

33.6 33.5 33.4 33.s

334 33.7 33.7

40,337 40,691

4?-760

43296

4392s ,[4,] I I 46131 47,769

r0,399,700 r0,536,500

I1,155,(n0 t 1,335200 I 1,329,800

I 1,687,500 12,268,400

t2,766.953

194,375

t96,336

l9&402 199,7U 201,430 202,E00 204,E2E

2M,876

2012

20r3

20t4 20t5 20t6

2017

2018

2019

267

See Independent Auditor's Report.

* Median age \ras mt available for these years-

lnformation (texaslrni-corn) for August each laar Stovm.

5. Unernployment rates obtained fiom Local Arca Unemployment Siatistics (LAUS) Report from Texas L^abor Market

4- School enrollment was provided byAmarillo lndependent Schml Disuict.

3. Median age obtained frorn 2010 Census and American Community Stnvey l-Year (2018) and S-Year (201l-2017) estimates

2- Personal inconre and percapita income figuresoblained fiom U.S. DepartmentofCommerceb Bureau of EoonomicAnalysis, MSA Arca lnc,ome Summary- The 2010 through 2018 figures were updafed based on new eslimates duringNovember 2019. To catculate 2019 figures, Planning Department staffusod an average of increases fron lhe previous tso years.

(Amarillo grous by an average of l% or 27o annr.ully.)

l. Population estimates prepared by City of Amarillo Planning Department (2010 provided by Ceruus 2010).

5.1%

33,306

Sources:

5.6%

33,043

33.5

391413

10,088,700

195,666

20t r

2.7Vo

5.5%

32,744

34.3

37dO3

9,4y),900

t90,695

Rate (51

(in Sl,000s)

(r)

Uncmployment

({)

(3)

School

Enrollment

Median Age

(2) Permnal Income (2)

Per Capita

Personal Income

Population

20r0

Calendar Yeer

CITY OF AMARILLO, TEXAS ECONOMIC STATISTICS, LASTTEN CALENDAR YEARS DEMOGRAPHIC AND (unaudited)

Exhibit A-17

O.786To

O.SKITo

0.793!c O.786Yo

o.652%

t,359 7 1,215 8

1205 9 1,000 l0

Wahmart

Arnarillo VA Health Center

Affiliated Foods

Tmt'nTotum

88.705%

lil).fiXl/o

I r t,641

r25$s6

84-O76Yo

r00.fixr,6

128,885

153295

Toral employees of otheremplolcrs

Total Arnadllo MSA+ employnent

268

See lndependent Audito/s Report-

* Armrillo Maropolitan Swisri:al Arca (MSA) ernpht"neot figrre obnained fiom ilreU.S- Bupuof laborStlbtics (Economyat a Galog) alS€pl€mb€r20lt

Sources: The ten principal employers informaion was provided by thc Amarillo Chambcr of Commerce.

ll-295%o

Burlingtm Norrhern Santa Fe

t42ts

0.61r%

t0 769

0-(m%

Westem natioml Life lnsunance

l5.Y24Yo

O.779/o 5

980

0.0m%

24,41O

O.877Vo

4 1,104

0.0m%

Bell Helicopter, lnc.

Total employ'ees of the principal employers

O.731/o

O.674Yo

v20

0.Ofl)9/r

848

O.673Vo

O.6860/o

t-183%

2.Ot77o

2.994%o

Xcel Energr

United Supernurket

t-2t3%

1,860 5 1,604 6

Northsrsl Texas Hospital

2.87Wo

City MSA

Pcrccnt of Total

Rank Employment

1,489

2.087%

3203 3 3200 4

CNS Pantex

3,768

Employces

2010

2,626

2.Og9o/o

4,4{X) 2

Tyson Foods lnc.

BSA Health slstem

3.19Wo

s364 l

Anndlb lndependent School District

Employer

PerccntofTotal City MSAI

Employces Rank Employment

2019

PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINM YEARS AGO (unaudited)

crrY oF AMARTLIo, TEXAS

Exhibit A-18

.llicij

Ar&oliunColiran CrYicc.rrcr op.trbrs

Caid projc(tt -d dclrElo?n.lr creftc.riE

I a a

Fralicnu&s

CUUTURE& RECAEATIOI{

a 2,

to!

269

See Independent Audito,t's Report

naa

il'

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STREBIS. TRAFFIC & ENGINEBRING

o !t

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TUBLIC SAFGTY AND HEALTH Poac.

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llgll

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Finraldrhigrril IlrcoorofFrc Acfli.g

STAFFSERVICES

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GENERALGTOVERNMENT

FarcfirPrqnrl

C.ITYOFAMARILLO,TEKAS

ctTy covERNrltDNT BUDGETED POSITIONS BY Ft NCTIOI{/FR(rcRAM, llST TEN FtSrelL YEARII

Brhibit A-19

ToglStlccill Rcmnuc

Emergency Nlanaggn€nl

Commmiy Dcvelopnrort ad Housirg

Co.rt S€curi$. hud

CiD,.AnnuC 8ud$a

&Qacd pcitirc arc rrdc up of both full{ie ad p-Hift pcitirc.

Nol6:

270

ill \461

a{t3

2J% l-}9t

t {36

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7 79

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tr?3

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267

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275 51

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tro{

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106

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CITYCARECLIs*lC SPECIAL REI'u*UE

SELF TNSURANCE

FLEETSERVICLS

lNFORlll AT lon- SERV ICES

DRATNAGE UTILlTY

AIRPORT

Toral $'.lcr & Sct r Sl:slcm

DirEctorof Uiliti6 Capitd projccrs dd dcrclopmcnl cogiooaing

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TVATER & SETYER SI'STENI

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TRANSTT Trrtsat

Solid rrase coll€ditn Solid sxc dispel

SOLID IVASTE

Tod

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247

tE1

Golf 93

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t a2

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B..ld.d Parlirn n oasaLrbd30

tol5

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Box offioe operarions Civic Cerrer Sports

t0r9

(unauditcd)

Civic Centcr prornotions

Functiory'Prrg,rrm

CITY OF AIITARILLO, TEXAS

CITY GOVERNiIENT BUDGETED POSITIONS BY FTJNCTION/PROGRAII, IIIST TEN FISCAL YEARS

Exhibit A-19

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CITY OF AMARI I.I.O, TEtr(AS OPERATING INI'ICATORS BY FT'NCI'ION/?ROGRAM, IAST TEI{ FIS{CAL YEAR!;

Exhibit A-20

oliscrqn.

ltdrml plds

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273

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126

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CITY OF ATIARILII), TEXAS CAPITAL ASSET STATISTICS BY FTINCTION/PROGRAM, [I\ST TEN FISCAL YEARS (unrudited)

Erhibit A-21

Exhibit A-22

CITY OF AMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM HISTORICAL INFORM.A,TION

HrsroRrcAr tu*T$*Iffll;otnt cusroMERs

Flscal Ycar

Number of Customcrs

Ended Seotcmbcr 30

Water

Sewcr

2010

69,358

67,281

20r l

69,754

67,654

20t2

70,t51

68,020

2013

70,161

68,1 I I

20t4

70,441

69,039

20t5

71,029

69,166

2016

72,272

69,999

20t?

72,348

70,071

2018

73,t36

70,661

20t9

70,277

69,446

See Independ€nt Auditotrs Report,

274

Exhibit A-23

CITY OF AMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM HISTORICAL INFORMATION A,VERAGE DAILY WATER CONSUMPTION AND SYSTEM INFORMATION (Unaudited)

Flscal Year Ended Sentember 30

Wster

Maximum Daily Water

Consumption (Gallons)

Weter

Sewer

Hydrrnts

20r0

42,921,918

79,300,000

I,091

932

3,671

201 I

5 I ,308,71 o

88,700,000

1,106

943

3,732

Average Daily

Miles of Mnins

Number of

20t2

46,103,000

92,100,000

I,l l0

944

3,761

2013

44,131,039

84,500,000

I,120

955

3,E64

20t4

43,702,583

80,400,000

I,t 30

963

3,940

2015

37,590,000

65,970,000

I ,136

968

4,024

20t6

39,826,296

80,1 23,000

1,166

985

4,102

20t7

44,748,000

75,9E0,000

1,166

985

4,102

2018

49,077,500

77,970,000

1,177

998

4,228

2019

39,929,737

72,561,390

I,183

1,003

4,255

Ma,rimum Water Production Capacity (from Water Plant and Wells)

128.0 million gallons per day

Ma,ximum or Pcak Usage to Date

93.6 million gallons

Overhead Storage Capacity

8.5 million gallons

Ground Storagc Capacity

74.3 million gallons

TEN LARGEST WATER CUSTOMERS AND AVERAGE MONTHLY USE (thousrnd grllons)

l. Xcel Enerry

393,734

2. Tyson Fresh Meats

1t9,047

3. Texas Department of Comections

77,872

4. City of Amarillo

39,177

5. City of Canyon

34,016

6. Owens Coming

23,563

7. Plains Dairy

19,157

8. Asarco

13,774

9. BSA Hospital LLC

8,483

10. Northwest Texas Healthcare

7,331 CAPACI'I'Y OF SEWER TREATMENT PLANTS

(Two plants combined)

28.00 million gallons per day

Average daily sewage treated

16.56 million gallons per day

See lndependent Auditor's Report.

275

Exhibit A-24

CITY OF AMARILLO, TEXAS WATERWORKS AND SEWER SYSTEM WATER RATES SEPTEMBER 30,2019 (Unaudited)

Minimum Monthly Billing for First 3,000 Gallons Consumed:

Rrtes Per Month Inslde Ciw

Meter Size 5/8"

14.33

outside clw $

2t,49

19.23

28.85

r-v2'

36.9?

ttr

24.64 38.29

140.84

ztt,27

178.74

267.25

268.t I 400.88

8" and larger

368.45

552.67

Addltional Chargc by Volume (per 1,000 Gallons):

Inside

Restdential 3,001-10,000

Citv

57.43

Outsidc Citv

3.84 s,02

Over 30,000

2.56 3.34 4.95

Ovcr 50,000

5.63

8.45

2.92

4.38

Over 10,000

?,43

Commerclal Ovcr 3,000

Sourcc:

City of Amarillo Ordinance Number 7761 effective October I , 2018.

See Independent Auditor's Report.

216

Exhibit A-25

CITY OF' AMARILLO, TEXAS WATERWORKS AI\D SEWER SYSTEM SEWER RATES SEPTEMBER 30,2019 (Unaudited)

Besc

Rates

Amount

Per Month

Meter Slze

5/8',

16.23

t6.76 t7.20

l-v2' tI

18.67

2t.n

30.86

45.4t

8" and laqger

60.02

Additionrl Charge by Volume Commercial accounts arc chargcd on total wetcr uscd with a rate of $2,10 per 1,000 gallons of water consumed ovcr thc initial allotment of3,000 gallons. Rcsidcntial accounts arc chargcd bascd on thc avcragc watcr consumcd in Deccmbcr, January and Febnrary, but in no event shall rcsidential customers be charged for morc than 20,000 gallons of sewage. The volume chargc for sewcr accounts is $1.93 pcr 1,000 gallons of watcr consumcd ovcr thc initial allotment of 3,000 gallons.

Sourcc: City of Amarillo Ordinancc Number 7761 effective October l, 2018.

See Independent Auditor's Report.

277

Exhibit A-26 CITY OFAMARILLO, TEXAS DRAINAGE UTILITY Top Ten Drrinrge Customers (unrudited)

2019

Monthly

TotrlERU9 Rnnk

Customcr NrnG

Drrlnrgc Fcc

Burlington Northcrn City of Anarillo Amarillo ISD

2t,325

3,635

1,921

5,208

Poncr County

1,517

4,112

WdMart

1,401

Canyon ISD

3,794

3,798 2,150

Milligrn Rcd Esrrrc LLC

738

2,000

BSAHospitalLLC Chapmrnn GR Limitcd

694

l,gg0

542 444

1,470

1.204

l,owcs Homc Centcr lnc. Total

36.01I

57,790 9,850

89.462

Recldentlrl Rrlec Regidontial Rarcg arc based on statistical cvaluation of land parccl impcniour arca for singlc-lbmily propcrtics. Thc cquivclcnt rcsidcntirl unit (ERU) nto is $2.71 pcr ERU por month.

Equlvrlcnt Rcsldcnthl Units

Clruslllcdtlon

Monthlv Fcc

l1€r I

[,css than 2,072 squarc fcct impcwious arca

,068 ERU

1.84

Tier 2

2,072.3,236 square fect impcwious area

I.OO ERU

2.7t

ltcrJ

Grcatcr than 3,236 squarc fcct impcrvious arer

I.5I ERU

4.09

Conmerlcrl Rntco Total ERUs for commercial propcny is bascd on the impervious area for coch parcll dividod by 2,800 squorc fect with a minimum of ERU. Thc monthly Droinogc Utility chargc hr commcrcial propcrty is cllculotcd by muhiplying thc totrl numbcr of ERUs for parccl by thc ERU monthly billing rate,

See Independent AuditoCs Report.

278

Exhibit A-27

CITY OF AMARILLO, TEXAS HOTEL OCCUPANCY TAX (unaudited)

TIISTORICAL TAX COLLECTIONS Fiscal

Year TolalTo/o

201 r

4,399,987 4,7E2,868

20t2

5,002,181

2013

5,691,1l8 5,937,402

2010

20t4 2015

2016

20t7 2018

20t9

6,341,559 6,777,185

6,610,423 * 6,932,936 ** 7,208,732 i**

CONDENSDD STATEMENT OF OPER.ATIONS OFHOTELOCCUPANCY TAX FUND Fiscal Year Ended Scptembcr 30, Revenues: Pledged Hotel Taxes Number of Rooms

Maximum Annuat Dcbt Service (2039) Dcbt Service Covcragc (x)

20t9

20r8

2017

20r6

2015

$ 7,208,732

I 6,932,936

$ 6,610,423

$ 6,777,185

$ 6,341,559

6,851

7,050

6,715

6,690

6,007

$ 3,181,417

775,288

$ 775,288

2.18 x

2.27 x

8.53 x

8.74 x

Note: The maximum annual dcbt service and Debt Service Coverage for FY 2015-2012 arc prcsentcd as comparative information only. The Hotel Occupancy Tax Bonds wcre issucd April 13, 2016. 'i'r'* $750,484 was rebated during fiscal ycar Scptcmbcr 30, 2019. ** $577,260 was rcbated during fiscal year September 30, 2018. 'f' $18,837 was rebated during fiscal year September 30,2017.

Scc lndcpendcnt Auditor's Report,

279

8.18 x

Exhibh A.l8

CITY OF AMARILLO}TDXAS HOTELT^XPAYENS (oMudlrcd)

TOTAL lott

%orToTAL

COLLBCTTONg CAPACITY t4.?tt

OOLLECTloNS

l.?10

2t6 3l

0.00201r469

^M^lllIOINNAI{DSUITES MOTEL ^I\,TARIIJ.O AI\.IARTITOVALT'E INN

1,187

0.ot0co2lt

.r.231

t00

0.0062?t7t6

2.9t6

0.000104t0t

r21.8??

r3t

t,514

0.016t07$l 0.000491t$

r0t.126

ll4

0.0t4t6167t

r,?66

t0t

0.000244rtt

BEST VALUE INN & SUIllS

^I.IERIC^'S

^I\4MONXDR,D(IL INN ^sI,IMORE

^STROMOTEL EAnvtONT SUTTES Al{ARllIO IAST

0.000il16?l

B^YMO}N SUIrES AM{RIIIO UIEST EEST WESTIRN PIIJS . MIDICAL CEI.ITIR EESTWESTENN. SANIA F.l INN

62.156

0.00t7r976t

t02.?2t

0,014249996

BIGTEilNINN

rt.8t?

ta t4

BI.IDGETNN BODKII{PROPIRTY BRAZOLARA KAY CAlr,llLOTlNN c^NDttwooD surTEs Cll/l\IEZMADELINE CMCCEI{TZRINN COMFORT INN & SUNSS BAST coMroRT tNN & stmls wlsT COMTOST SUITES UE$l8RN PL^Z^

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0,000t4141 r

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0,00til7677 0.000ilt41I 0.00t6024il 0,0014$7t

coMFoRTStmJ sotnH cot NltYtNN&E!.rnEs COI'ITTYARD MARN TT MSDIC^L CEN1IR

91.810

0,012?16166

l6t.0D

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0.0r9?0r?96

COURTYARD MAN,HdIT AT{ARILI.O DOWNTOWN

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l.?6tt9t.0J

CO\I'EOYINN CR^IONBNRIMENTCOMMUMTY

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0.00r970r62

t06.t86

ll9

0.01a?t846t

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0.000t7221r

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0.oilt2762

0.000r699??

DAVTS CAMIIIE

D^YS rNN (MIDICAL CENTER) D^YS INNEAST DELI'X INN

DRTNYNN ECONOI TNN

ttls A}lARlLl,

t11,t2?

226

0,07t70t40t

ISTESS MO1EL

913

0,000126616

EXECUTIVE INN

,5.0.7

107

0.00?616tt9

EXPRISS INN

1.901

0.000tt9t?6

EX1END

STAY

19,69t

0.00r106422

^ STAY AMSRIC^ EX]EIIDID

0?.0r r

0,008602.92

6tt

8.58709E 05

t&.9t6

0.021618069

F^IRPIILD INN ^I{D AI{D SUrES WEST

t22,654

0,01?0t t20t

N83T^MOTIL

r.6r0 ,6,?r0

0.000500t22

il9

0.007E6$8.

214,J80

t21

0.0rril6c7?

t24.901

0,0r?r2706?

151

0,000101ttt

2,363

0.000ll7ttt

IIILTON CARDEN INN

Itt.29t

0.0t1?03'laJ

HOLIDAY INN EXPRE$S & SUITsS E^ST

t07.766

0.014949866

HOLIDAY INN EXPRESS & SUITE$ SOW}I

lr.t{o

0.01602816t

HOLIDAY INN E)(PRESS * SUTES WEST HOLIDAY INN BXPRESS & SUITES WOLFIN

26l.tt4

0,0t6N80632

2r9.701

t3t t0

HOLIDAY INN WE$T MEDIC^L CBNIER

211,236

ril

0.0t42t?8?8

HOLIDAY INN EAST

19.670

0.0t t0J224t

HOMET SUITBS

lE9.tal t6t.2r6

0.026294ta9

0.0229t0?6t

INTER$TATEMOTPL LA cAsn^ D8L soL

6,092

0.00084fl r4

422

,.Et4628.0t

LA Kry^ HOTIL

I.'JJ

r8t

0.00n72922

tt3,53?

0.02?l2J9J

EITBASSY St

SUEAM( DORIS PAIf,PIEI.D INN

SUITIS AIRPORT

nPTH SEASONS I.I^MITON INN & ST.'ITIS EAST HAMTTON INN & St,IIlS WIST HERITACE HOUSE DED & 8RE^KFAST HILLCRISTMOTEL

HOMS\vooDSUngS

LA QUINTA INN & SUNES MID.CITY

0,0104?8Bt

See Independcnt Auditor's Report

280

Exhlbh A.2t (Condnuod)

TEXA'

CITY OF

^M^RILLO, ltotELTAxtAyBnS (unmdltcd)

NAMS OT TAXPAYEN

TOTAL tO19 COLLECTIONS

%OFTOTAL cAPActTY

COLLECNONS

LAQUINTA MOTON NN AIRPORT

r00J6t

0.011$7.t0

LA QUINT^ MOTOR INN MIDIC^L CENTER

to,tl8

t28

0.01260112?

LUXI'RY tNN 8UNE8

rrJt6

0,wtww6

MCDANELMKKII

t.70t ,48

0,0001t390t

7.60llr3.0,

I I

3.?0t

0,000il4141

MCKASKI,BKATI'IY

MARIT^D T{ MEhIOOZIRTT

t.rt244B.O6

44.960

0.00623?101

^}D F^NMHOUSE MID CINTIJRY MERTS

J02

MITCHEII'NG

152

6.96t6780t 6.2719t80t

MICROTBL INN

ST'[ll

MOTEL6CA}.IYON DRIVE

2t.8t9

0.004@1472

MOIIL6ANFORT

7r.t8t

l2l

0.0102497tt

MOTEL6U/IST lNT PLACBHOTE

n,n6

l0?

76,000

0,0toil7211 0,010t1il61 1,0u9?E.ot 0.00ttE t$ 0.000t4il19

NANONALCONP

r rJ53

r HoTIL

ttl

It4

t0 I

QU^LTTYNNIAST

,1.?93

0.00?@t lt6

QU^LJT'NNWIST

2t169

I l,r

0,0029!0t1?

QU^LITY NNWIST MIDICAL CENTER

93.'l19

l0t

0.0r296il24

R,AMAMOTEL

r.099

0.000132426

RrD nooF ll,lN AMAR!"II) !A3T RrD ROO! tNl,l WIST REWOODMOTEL

tt,a76

100

0,004121'll?

?1,7.9

lt6

0,0009$aJt

2,52t

0,000tJ0226

RII.^)(INN

,?.9t6

0.00t26$91

RESIDENCE INN AM{RTII,O

131.il?

0,0t82t?021

ROln!66tNNMOttL

12.960

7t t6

ROY^LINN $LVENSN'RMOTEL SITIPINNATRPORT

410

SLEE? tN Al,lD SUlltsS wBSr MIDICAI CENTIR

SPRNOHILL SI'If8S AIU^RIIIO

1,063

PALODI,IROINN ItsRKNS PERRY

t,$0il&0t

0,00r?9?922

t.6923r1.0'

t6 2l

0.000t294?2

3tJ20

0.00t{68tt

ta.t2t

0.0t t670628

2,t7t

727,70t

t02

0.03t t87899

STARU'DOB

t,04t

0,000144r9t

STATBR ERICE

619

9,69?.5Dot

0.0192:t I

suNDowl'lMolEL

rtS.trt 2,ll?

0.00012?42t8

oIJPIR T CENIA^L

t9.294

0,00t4il 101

SUPBR I I^ST gUPBR I WEST

6t,216

0.00t300a?6

t0.895

0.00428t9t7

gUNsETTERR^CE

ata

t.?t86rE 0l

TEAM HOUSTNO

,.a49ll8 06

2,02'

0,0002t060t

STAYER|DOESUn$

TOWNI{OUSE MO1IL

mlPsPo$ltc lTU EY HILTON ANd^RILIO WEST VALI'EPLTCI

a,2a7

0,000594?t

12.0t4

t0 t6

t.2u

0.000t7767

0.000r74$9

t08.2.0

WAOONWIIEELMONL Y^NKEETIJ{CS

7.t08.1tt

0,0lt0t 16?2 0.00{'113966

49t9

-L4!-

Sec Independent Auditor's Report

28r