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01-23-2024 (City Council) Agenda Packet P a g e | 1 Wylie City Council Regular Meeting January 23, 2024 – 6:00 PM Council Chambers - 300 Country Club Road, Building #100, Wylie, Texas 75098 CALL TO ORDER INVOCATION & PLEDGE OF ALLEGIANCE PRESENTATIONS & RECOGNITIONS PR1. Recognition of In-Sync Exotics. PR2. Eagle Scout Award - Brian Goodrich. PR3. National Human Trafficking Prevention Month. COMMENTS ON NON-AGENDA ITEMS Any member of the public may address Council regarding an item that is not listed on the Agenda. Members of the public must fill out a form prior to the meeting in order to speak. Council requests that comments be limited to three minutes for an individual, six minutes for a group. In addition, Council is not allowed to converse, deliberate or take action o n any matter presented during citizen participation. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items. If discussion is desired, that item will be removed from the Consent Ag enda and will be considered separately. A. Consider, and act upon, approval of January 9, 2024 Regular City Council Meeting minutes. B. Consider, and act upon, the City of Wylie Monthly Revenue and Expenditure Report for December 31, 2023. C. Consider, and place on file, the City of Wylie Monthly Investment Report for December 31, 2023. D. Consider, and place on file, the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of December 31, 2023. E. Consider, and act upon, Ordinance No. 2024-02 amending Ordinance No. 2023-39, which established the budget for fiscal year 2023-2024; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. F. Consider, and act upon, Ordinance No. 2024-03 amending Ordinance No. 2023-39, which established the budget for fiscal year 2023-2024; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. G. Consider, and act upon, Ordinance No. 2024-04 for a change in zoning from Multi-Family (MF) to Commercial Corridor - Special Use Permit (CC-SUP) on 0.198 acres to allow for an office use within a residential structure. Property located at 100 S. 3rd Street (ZC 2023-14). 1 P a g e | 2 REGULAR AGENDA 1. Consider, and act upon, Resolution No. 2024-02(R) authorizing the City Manager of the City of Wylie to execute the Grade Crossing Construction Agreement between The Kansas City Southern Railway Company and the City of Wylie, Texas concerning the construction of the railway crossing of Eubanks Lane, north of Centennial Drive. 2. Consider, and act upon, acceptance of the Annual Comprehensive Financial Report (ACFR) for FY 2022-23 following a presentation by the audit firm Weaver, LLP. EXECUTIVE SESSION Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on its negotiating position. ES1. Consider the sale or acquisition of properties located at Ballard/Brown, Brown/Eubanks, FM 544/Cooper, FM 544/Sanden, Jackson/Oak, Regency/Steel, State Hwy 78/Ballard, State Hwy 78/Brown, and State Hwy 78/Skyview. Sec. 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS; CLOSED MEETING. This chapter does not require a governmental body to conduct an open meeting: (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1). ES2. Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for Projects: 2013-9a, 2022-1c, 2022-10c, 2023-1c, 2023-2d, 2023-3b, 2023-4c, 2023-5b, 2023-9b, 2023-10a, 2023-12c, 2024-1a, and 2024-1b. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. READING OF ORDINANCES Title and caption approved by Council as required by Wylie City Charter, Article III, Section 13 -D. ADJOURNMENT CERTIFICATION I certify that this Notice of Meeting was posted on January 19, 2024 at 5:00 p.m. on the outside bulletin board at Wylie City Hall, 300 Country Club Road, Building 100, Wylie, Texas, a place convenient and readily accessible to the public at all times. ___________________________ ___________________________ Stephanie Storm, City Secretary Date Notice Removed 2 P a g e | 3 The Wylie Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary’s Office at 972.516.6020. Hearing impaired devices are available from the City Secretary prior to each meeting. If during the course of the meeting covered by this notice, the City Council should determine that a closed or executive meeting or session of the City Council or a consultation with the attorney for the City should be held or is required, then such closed or executive meeting or session or consultation with attorney as authorized by the Texas Open Meetings Act, Texas Government Code § 551.001 et. seq., will be held by the City Council at the date, hour and place given in this notice as the City Council may conveniently meet in such closed or executive meeting or session or consult with the attorney for the City concerning any and all subjects and for any and all purposes permitted by the Act, including, but not limited to, the following sanctions and purposes: Texas Government Code Section: § 551.071 – Private consultation with an attorney for the City. § 551.072 – Discussing purchase, exchange, lease or value of real property. § 551.074 – Discussing personnel or to hear complaints against personnel. § 551.087 – Discussing certain economic development matters. § 551.073 – Discussing prospective gift or donation to the City. § 551.076 – Discussing deployment of security personnel or devices or security audit. 3 Wylie City Council AGENDA REPORT Department: City Secretary Account Code: Prepared By: Stephanie Storm Subject Consider, and act upon, approval of January 9, 2024 Regular City Council Meeting minutes. Recommendation Motion to approve the Item as presented. Discussion The minutes are attached for your consideration. 4 01/23/2024 Item A. Page | 1 Wylie City Council Regular Meeting Minutes January 09, 2024 – 6:00 PM Council Chambers - 300 Country Club Road, Building #100, Wylie, Texas 75098 CALL TO ORDER Mayor Matthew Porter called the regular meeting to order at 6:03 p.m. The following City Council members were present: Councilman David R. Duke, Councilman Dave Strang, Mayor pro tem Jeff Forrester, Councilman Scott Williams, Councilman Sid Hoover, and Councilman Gino Mulliqi. Staff present included: City Manager Brent Parker; Deputy City Manager Renae Ollie; Assistant City Manager Lety Yanez; Fire Chief Brandon Blythe; Police Lieutenant Trey Cotten; Community Services Director Jasen Haskins; Public Information Officer Craig Kelly; City Secretary Stephanie Storm; Parks and Recreation Director Carmen Powlen; Purchasing Manager Chris Rodriguez; Finance Director Melissa Brown; City Engineer Tim Porter; and various support staff. INVOCATION & PLEDGE OF ALLEGIANCE Councilman Strang led the invocation, and Councilman Duke led the Pledge of Allegiance. PRESENTATIONS & RECOGNITIONS PR1. Wylie Way Students (K-12). Mayor Porter, WISD Board President Jacob Day, and WISD Superintendent Dr. David Vinson presented a medallion to students demonstrating “Shining the Wylie Way.” Every nine weeks one student from each WISD campus is chosen as the “Wylie Way Student.” Mayor Porter recognized National Law Enforcement Appreciation Day and thanked the Police Department for all that they do. COMMENTS ON NON-AGENDA ITEMS Any member of the public may address Council regarding an item that is not listed on the Agenda. Members of the public must fill out a form prior to the meeting in order to speak. Council requests that comments be limited to three minutes for an individual, six minutes for a group. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. Dr. Fazla Rabbi Hossain, representing BTP, requested that the Council add an item to a future agenda for a cease- fire resolution. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motio n. There will not be separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. A. Consider, and act upon, approval of December 12, 2023 Regular City Council Meeting minutes. 5 01/23/2024 Item A. Page | 2 B. Consider, and act upon, the City of Wylie Monthly Revenue and Expenditure Report for November 30, 2023. C. Consider, and place on file, the City of Wylie Monthly Investment Report for November 30, 2023. D. Consider, and act upon, Ordinance No. 2024-01 amending Ordinance No. 2023-39, which established the budget for fiscal year 2023-2024; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. E. Consider, and act upon, a request regarding the demolition of a residential structure i n accordance with Ordinance No. 2022-34. Property located at 300 N. Second St. within the Downtown Historic District. F. Consider, and act upon, the recommendation to reject all bids for W2024-11-A for Janitorial Services. Council Action A motion was made by Mayor pro tem Forrester, seconded by Councilman Strang, to approve the Consent Agenda as presented. A vote was taken and the motion passed 7-0. REGULAR AGENDA 1. Hold a Public Hearing, consider, and act upon, the writing of an ordinance for a change in zoning from Multi-Family (MF) to Commercial Corridor - Special Use Permit (CC-SUP) on 0.198 acres to allow for an office use within a residential structure. Property located at 100 S 3rd Street (ZC 2023-14). Staff Comments Community Services Director Haskins addressed the Council stating the applicant is requesting to rezone the property located at 100 S. Third Street, consisting of just under 0.2 acres, from multifamily to commercial corridor with a special use permit (SUP) to allow the property to be used as a commercial use, but with the existing residential structure. The conditions also allow for a reduced front setback of 13 feet eight inches instead of the typical 25; however, staff does not see an issue as it will be rear entry and parking. The S UP will be rescinded if the structure is destroyed, or if the applicant does not either own or manage the property or the use. Haskins reported notices were sent to 16 property owners within 200 feet as required by law and two responses were received in favor and one in protest. Additionally, three responses in favor were received but were located outside of the notification area. The Planning and Zoning (P&Z) Commission did ask the applicant what kind of business they were going to use the structure for and the applicant responded they would have a home healthcare dispatch office. The P&Z Commission did vote 7-0 to recommend approval. Haskins added the applicant did request that the zoning exhibit act as the site plan; therefore, the approval of the SUP is also approval of the site plan for them to move forward with the construction. Public Hearing Mayor Porter opened the public hearing on Item 1 at 6:45 p.m. asking anyone present wishing to address Council to come forward. Bob Heath addressed the Council stating this is a historical structure that they wish to turn into office space for a hospice care business. Their company has turned several historical structures into office space, has restored more than 50 percent of the historical buildings downtown and many others around it, and cares greatly about the preservation of historical structures. Mayor pro tem Forrester commended Mr. Heath on all that he has done renovating buildings downtown and asked if he sees an issue where this building would have to be destroyed. Heath replied no, most updates will be inside the structure and the outside will look the same, just better. Councilman Duke asked if anyone would be living in the structure. Heath replied no it will be office space only. Councilman Mulliqi stated currently when it rains there 6 01/23/2024 Item A. Page | 3 is ponding water near the side of the structure and asked if anything will be done to improve that. Robert Heath Jr. replied a retention pond is planned for the property. Mulliqi confirmed there will be two entries created but it will be one way. Heath confirmed that is correct. Mayor Porter asked about the future ownership of the property. Heath replied once renovations are done to the property it will be sold to an individual to be utilized for the commercial structure. Councilman Williams asked if the City has future plans to change the E. Oak and Highway 78 connection. Haskins responded no. Williams asked about the variances requested for the setback. Haskins replied it currently has a 13.8 setback so staff is keeping it as is since it is a historic building and the City owns all of the property outside of the property line. Forrester asked who owns the driveway. Haskins replied the City does. Forrester asked if the City is doing an easement with the property owner and if so, could this create an issue if the site plan is approved before an easement is approved by Engineering. Haskins replied Engineering has looked at the zoning exhibit and is okay with the general idea of it and added there is verbiage in the agenda report that reverts to engineering approval. Forrester asked if the City would be in charge of the maintenance of the driveway. Haskins replied no, it is a driveway maintained by the property owner. Mulliqi asked if Oak Street was to be widened, do we have to get the property owners' permission. Haskins replied no as there will be an easement and the City owns it. Porter asked if there would be any screening added along Third Street, and expressed concern with detention and a parking lot added by residential without added screening. Haskins replied not currently but the applicant is willing to do a board-on-board fence, and added staff will ensure the verbiage will be added for screening. Mulliqi confirmed that no individual will be living there when it becomes a commercial property but, in the future, the property owner may reside there, and asked if that is allowed. Haskins replied that based on the verbiage in the SUP, the specified owner can change the use from commercial to residential at any time. Mayor Porter closed the public hearing at 7:07 p.m. Council Action A motion was made by Mayor pro tem Forrester, seconded by Councilman Strang, to approve Item 1 as presented and to include a screen between the residents to the south and the business for Zoning Case 2023-14. A vote was taken and the motion passed 7-0. 2. Consider, and act upon, Resolution No. 2024-01(R) of the City of Wylie, Dallas County, Texas, casting its vote for the runoff election for the fourth member of the Board of Directors of the Dallas Central Appraisal District. Council Comments Mayor Porter stated this is for a runoff after as Council had previously voted for Mr. Franks. The two individuals that remain are Mr. Franks, who was nominated by the city of Sachse, and Mr. Hurtt, nominated by the cities of Seagoville and Carrollton. Council Action A motion was made by Mayor pro tem Forrester, seconded by Councilman Mulliqi, to approve Resolution No. 2024-01(R) of the City of Wylie, Dallas County, Texas, casting its vote for the runoff election for Brett Franks as the fourth member of the Board of Directors of the Dallas Central Appraisal District. A vote was taken and the motion passed 7-0. READING OF ORDINANCES Title and caption approved by Council as required by Wylie City Charter, Article III, Section 13 -D. City Secretary Storm read the caption of Ordinance No. 2024-01 into the official record. ADJOURNMENT A motion was made by Councilman Strang, seconded by Councilman Duke, to adjourn the meeting at 7:11 p.m. A vote was taken and the motion passed 6-1 with Mayor pro tem Forrester voting against. 7 01/23/2024 Item A. Page | 4 ______________________________ Matthew Porter, Mayor ATTEST: ______________________________ Stephanie Storm, City Secretary 8 01/23/2024 Item A. Wylie City Council AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Brown Subject Consider, and act upon, the City of Wylie Monthly Revenue and Expenditure Report for December 31, 2023. Recommendation Motion to approve the Item as presented. Discussion The Finance Department has prepared the attached reports for the City Council as required by the City Charter. 9 01/23/2024 Item B. CITY OF WYLIE MONTHLY FINANCIAL REPORT 12/31/2023 ANNUAL CURRENT YTD ACTUAL Benchmark BUDGET MONTH ACTUAL YTD ACTUAL AS A PERCENT 25.00% ACCOUNT DESCRIPTION 2022-2023 2022-2023 2022-2023 OF BUDGET GENERAL FUND REVENUE SUMMARY TAXES 39,807,333 18,548,856 19,931,868 50.07%A FRANCHISE FEES 2,953,146 27,941 27,941 0.95%B LICENSES AND PERMITS 1,275,000 58,023 202,876 15.91%C INTERGOVERNMENTAL REV. 2,590,293 2,554 559,033 21.58% SERVICE FEES 4,343,203 389,213 852,750 19.63% D COURT FEES 340,000 24,208 77,153 22.69% INTEREST INCOME 1,526,221 86,186 268,788 17.61%E MISCELLANEOUS INCOME 260,807 5,701 19,129 7.33% OTHER FINANCING SOURCES 2,640,204 0 2,647,283 100.27%F REVENUES 55,736,207 19,142,682 24,586,821 44.11% USE OF FUND BALANCE 0 0 0 0.00% USE OF CARRY-FORWARD FUNDS 1,914,392 NA NA NA G TOTAL REVENUES 57,650,599 19,142,682 24,586,821 42.65% GENERAL FUND EXPENDITURE SUMMARY CITY COUNCIL 96,401 10,008 21,081 21.87% CITY MANAGER 1,294,357 151,356 308,277 23.82% CITY SECRETARY 417,515 36,835 90,216 21.61% CITY ATTORNEY 170,000 24,619 41,933 24.67% FINANCE 1,377,712 393,679 507,160 36.81%H FACILITIES 1,061,869 107,645 213,062 20.06% MUNICIPAL COURT 601,699 66,956 140,274 23.31% HUMAN RESOURCES 851,043 102,706 206,658 24.28% PURCHASING 325,350 30,285 104,152 32.01% INFORMATION TECHNOLOGY 2,230,036 128,624 824,547 36.97%I POLICE 14,164,952 1,408,410 3,066,694 21.65% FIRE 16,559,938 1,504,205 3,252,161 19.64% EMERGENCY COMMUNICATIONS 2,635,257 206,513 528,635 20.06% ANIMAL CONTROL 776,455 83,216 167,471 21.57% PLANNING 374,191 32,947 76,478 20.44% BUILDING INSPECTION 648,365 70,100 141,906 21.89% CODE ENFORCEMENT 218,297 19,030 45,081 20.65% STREETS 4,187,262 294,591 611,307 14.60% PARKS 2,825,347 249,207 533,017 18.87% LIBRARY 2,297,296 240,664 544,686 23.71% COMBINED SERVICES 5,474,257 389,679 1,320,308 24.12% TOTAL EXPENDITURES 58,587,599 5,551,273 12,745,105 21.75% REVENUES OVER/(UNDER) EXPENDITURES -937,000 13,591,408 11,841,717 20.89% A. Property Tax Collections for FY23-24 as of December 31, 2023 are 62%, in comparison to FY22-23 for the same time period of 59%. Sales tax is on a 2 month lag and only one has been received. Sales Tax is up 10.6% B. Franchise Fees: Most franchise fees are recognized quarterly with electric fees making up the majority. C. Building Permits are up 22% from FY 2022-23. Permits fluctuate monthly and are anticipated to meet budget for FY 2023-24. D. Service Fees: Trash fees are on a one month lag and only two months have been received. The remaining fees are from other seasonal fees. E. Interest Rates have remained relatively flat over the last few months. F. Yearly transfer from Utility Fund and insurance recoveries. G. Largest Carry Forward items: $150,000 for PW/Community Services Software, $288,000 for police and streets vehicles, $338,840 for ambulance, $119,102 for APX Mobile Radios, $600,000 for Woodbridge/Hensley Traffic Signal. H. Annual audit and appraisal district fees I. Annual maintenance agreements 10 01/23/2024 Item B. CITY OF WYLIE MONTHLY FINANCIAL REPORT December 31, 2023 ANNUAL CURRENT YTD ACTUAL Benchmark BUDGET MONTH ACTUAL YTD ACTUAL AS A PERCENT 25.00% ACCOUNT DESCRIPTION 2022-2023 2022-2023 2022-2023 OF BUDGET UTILITY FUND REVENUES SUMMARY SERVICE FEES 29,434,997 2,237,288 4,971,563 16.89% J INTEREST INCOME 719,896 111,352 309,228 42.95% K MISCELLANEOUS INCOME 70,000 3,440 7,925 11.32% OTHER FINANCING SOURCES 0.00% REVENUES 30,224,893 2,352,080 5,288,716 17.50% USE OF FUND BALANCE 0 NA 0 0 USE OF CARRY-FORWARD FUNDS 1,449,523 NA NA NA L TOTAL REVENUES 31,674,416 NA 5,288,716 16.70% UTILITY FUND EXPENDITURE SUMMARY UTILITY ADMINISTRATION 654,545 67,115 121,725 18.60% UTILITIES - WATER 3,907,389 362,456 575,967 14.74% CITY ENGINEER 1,345,215 163,401 264,032 19.63% UTILITIES - SEWER 1,503,680 136,210 248,185 16.51% UTILITY BILLING 1,493,339 105,428 254,909 17.07% COMBINED SERVICES 20,287,375 3,260,539 6,044,917 29.80% M TOTAL EXPENDITURES 29,191,543 4,095,149 7,509,735 25.73% REVENUES OVER/(UNDER) EXPENDITURES 2,482,872 -1,743,069 -2,221,020 -9.03% J. Most Utility Fund Revenue is on a one month lag and only two months have been received. K. Interest Rates have remained relatively flat over the last few months. L. Largest Carry Forward items: PW/Community Services Software $135,730, Lead and Copper Revision $150,964, Water Pump Station Backup Generators $736,937 and Dogwood Drive Waterline Replacement $100,000. M. Annual transfer to the General Fund. 11 01/23/2024 Item B. Wylie City Council AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Brown Subject Consider, and place on file, the City of Wylie Monthly Investment Report for December 31, 2023. Recommendation Motion to approve the Item as presented. Discussion The Finance Department has prepared the attached reports for the City Council as required by the City Charter. 12 01/23/2024 Item C. 13 01/23/2024 Item C. Wylie City Council AGENDA REPORT Department: WEDC Account Code: Prepared By: Jason Greiner Subject Consider, and place on file, the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of December 31, 2023. Recommendation Motion to approve the Item as presented. Discussion The Wylie Economic Development Corporation (WEDC) Board of Directors approved the attached financials on January 12, 2024. 14 01/23/2024 Item D. 1/5/2024 12:25:28 PM Page 1 of 4 December Rev/Exp Report Account Summary For Fiscal: 2023-2024 Period Ending: 12/31/2023 Fiscal AcƟvity Variance Favorable (Unfavorable) Percent Remaining Current Total Budget Period AcƟvity Original Total Budget Fund: 111 ­ WYLIE ECONOMIC DEVEL CORP Revenue Category: 400 ­ Taxes SALES TAX 4,536,561.00 374,686.38 ­4,161,874.62 91.74 %374,686.38111­4000­40210 4,536,561.00 Category: 400 ­ Taxes Total:374,686.38374,686.384,536,561.00 4,536,561.00 ­4,161,874.62 91.74% Category: 460 ­ Interest Income ALLOCATED INTEREST EARNINGS 112,000.00 129,464.17 17,464.17 115.59 %46,282.99111­4000­46110 112,000.00 Category: 460 ­ Interest Income Total: 129,464.1746,282.99112,000.00 112,000.00 17,464.17 15.59% Category: 480 ­ Miscellaneous Income RENTAL INCOME 48,600.00 5,080.65 ­43,519.35 89.55 %2,800.00111­4000­48110 48,600.00 MISCELLANEOUS INCOME 0.00 1,258.18 1,258.18 0.00 %1,258.18111­4000­48410 0.00 GAIN/(LOSS) SALE OF CAP ASSETS 2,655,970.00 ­223,384.36 ­2,879,354.36 108.41 %­74,295.35111­4000­48430 2,655,970.00 Category: 480 ­ Miscellaneous Income Total:­217,045.53­70,237.172,704,570.00 2,704,570.00 ­2,921,615.53 108.03% Revenue Total: 287,105.02350,732.207,353,131.00 7,353,131.00 ­7,066,025.98 96.10% Expense Category: 510 ­ Personnel Services SALARIES 440,500.00 87,497.88 353,002.12 80.14 %44,429.88111­5611­51110 440,500.00 OVERTIME 0.00 871.40 ­871.40 0.00 %0.00111­5611­51130 0.00 LONGEVITY PAY 1,200.00 1,092.00 108.00 9.00 %0.00111­5611­51140 1,200.00 TMRS 68,500.00 12,832.25 55,667.75 81.27 %6,416.19111­5611­51310 68,500.00 HOSPITAL & LIFE INSURANCE 81,000.00 14,974.58 66,025.42 81.51 %5,023.17111­5611­51410 81,000.00 LONG­TERM DISABILITY 1,600.00 117.00 1,483.00 92.69 %58.50111­5611­51420 1,600.00 FICA 27,000.00 5,158.06 21,841.94 80.90 %2,617.58111­5611­51440 27,000.00 MEDICARE 6,400.00 1,206.30 5,193.70 81.15 %612.16111­5611­51450 6,400.00 WORKERS COMP PREMIUM 2,100.00 825.66 1,274.34 60.68 %0.00111­5611­51470 2,100.00 UNEMPLOYMENT COMP (TWC) 1,600.00 5.00 1,595.00 99.69 %0.08111­5611­51480 1,600.00 Category: 510 ­ Personnel Services Total: 124,580.1359,157.56629,900.00 629,900.00 505,319.87 80.22% Category: 520 ­ Supplies OFFICE SUPPLIES 5,000.00 1,157.38 3,842.62 76.85 %526.08111­5611­52010 5,000.00 POSTAGE & FREIGHT 300.00 0.00 300.00 100.00 %0.00111­5611­52040 300.00 FOOD SUPPLIES 3,000.00 466.79 2,533.21 84.44 %108.65111­5611­52810 3,000.00 Category: 520 ­ Supplies Total: 1,624.17634.738,300.00 8,300.00 6,675.83 80.43% Category: 540 ­ Materials for Maintenance FURNITURE & FIXTURES 2,500.00 ­193.05 2,693.05 107.72 %0.00111­5611­54610 2,500.00 COMPUTER HARD/SOFTWARE 7,650.00 2,299.98 5,350.02 69.93 %2,299.98111­5611­54810 7,650.00 Category: 540 ­ Materials for Maintenance Total:2,106.932,299.9810,150.00 10,150.00 8,043.07 79.24% Category: 560 ­ Contractual Services INCENTIVES 1,929,250.00 0.00 1,929,250.00 100.00 %0.00111­5611­56030 1,929,250.00 SPECIAL SERVICES 37,270.00 630.00 36,640.00 98.31 %315.00111­5611­56040 37,270.00 SPECIAL SERVICES­REAL ESTATE 234,500.00 11,730.32 222,769.68 95.00 %7,180.89111­5611­56041 234,500.00 SPECIAL SERVICES­INFRASTRUCTUR 10,324,000.00 6,101.36 10,317,898.64 99.94 %0.00111­5611­56042 10,324,000.00 ADVERTISING 226,125.00 38,621.62 187,503.38 82.92 %6,140.00111­5611­56080 226,125.00 COMMUNITY DEVELOPMENT 64,950.00 16,706.65 48,243.35 74.28 %5,488.74111­5611­56090 64,950.00 COMMUNICATIONS 7,900.00 984.56 6,915.44 87.54 %492.28111­5611­56110 7,900.00 RENTAL 27,000.00 6,750.00 20,250.00 75.00 %2,250.00111­5611­56180 27,000.00 TRAVEL & TRAINING 73,000.00 17,301.13 55,698.87 76.30 %4,839.10111­5611­56210 73,000.00 DUES & SUBSCRIPTIONS 60,733.00 27,818.90 32,914.10 54.19 %3,098.81111­5611­56250 60,733.00 INSURANCE 6,800.00 5,350.11 1,449.89 21.32 %0.00111­5611­56310 6,800.00 AUDIT & LEGAL SERVICES 23,000.00 7,470.87 15,529.13 67.52 %3,000.00111­5611­56510 23,000.00 ENGINEERING/ARCHITECTURAL 530,175.00 84,473.11 445,701.89 84.07 %30,830.61111­5611­56570 530,175.00 15 01/23/2024 Item D. Budget Report For Fiscal: 2023­2024 Period Ending: 12/31/2023 1/5/2024 12:25:28 PM Page 2 of 4 Fiscal AcƟvity Variance Favorable (Unfavorable) Percent Remaining Current Total Budget Period AcƟvity Original Total Budget UTILITIES­ELECTRIC 2,400.00 256.03 2,143.97 89.33 %0.00111­5611­56610 2,400.00 Category: 560 ­ Contractual Services Total: 224,194.6663,635.4313,547,103.00 13,547,103.00 13,322,908.34 98.35% Category: 570 ­ Debt Service & Capital Replacement PRINCIPAL PAYMENT 600,096.00 147,722.79 452,373.21 75.38 %49,409.40111­5611­57410 600,096.00 INTEREST EXPENSE 631,902.00 160,276.62 471,625.38 74.64 %53,257.07111­5611­57415 631,902.00 Category: 570 ­ Debt Service & Capital Replacement Total: 307,999.41102,666.471,231,998.00 1,231,998.00 923,998.59 75.00% Category: 580 ­ Capital Outlay LAND­PURCHASE PRICE 1,000,000.00 7,079.00 992,921.00 99.29 %0.00111­5611­58110 1,000,000.00 CONTRA CAPITAL OUTLAY 0.00 ­7,079.00 7,079.00 0.00 %0.00111­5611­58995 0.00 Category: 580 ­ Capital Outlay Total: 0.000.001,000,000.00 1,000,000.00 1,000,000.00 100.00% Expense Total: 660,505.30228,394.1716,427,451.00 16,427,451.00 15,766,945.70 95.98% Fund: 111 ­ WYLIE ECONOMIC DEVEL CORP Surplus (Deficit):­373,400.28122,338.03­9,074,320.00 ­9,074,320.00 8,700,919.72 95.89% Report Surplus (Deficit): 122,338.03 ­373,400.28­9,074,320.00 ­9,074,320.00 8,700,919.72 95.89% 16 01/23/2024 Item D. Budget Report For Fiscal: 2023­2024 Period Ending: 12/31/2023 1/5/2024 12:25:28 PM Page 3 of 4 Group Summary Fiscal AcƟvity Variance Favorable (Unfavorable) Period AcƟvityCategory Current Total Budget Original Total Budget Percent Remaining Fund: 111 ­ WYLIE ECONOMIC DEVEL CORP Revenue 400 ­ Taxes 374,686.38374,686.384,536,561.00 4,536,561.00 ­4,161,874.62 91.74% 460 ­ Interest Income 129,464.1746,282.99112,000.00 112,000.00 17,464.17 15.59% 480 ­ Miscellaneous Income ­217,045.53­70,237.172,704,570.00 2,704,570.00 ­2,921,615.53 108.03% 287,105.02350,732.207,353,131.00 7,353,131.00 ­7,066,025.98Revenue Total:96.10% Expense 510 ­ Personnel Services 124,580.1359,157.56629,900.00 629,900.00 505,319.87 80.22% 520 ­ Supplies 1,624.17634.738,300.00 8,300.00 6,675.83 80.43% 540 ­ Materials for Maintenance 2,106.932,299.9810,150.00 10,150.00 8,043.07 79.24% 560 ­ Contractual Services 224,194.6663,635.4313,547,103.00 13,547,103.00 13,322,908.34 98.35% 570 ­ Debt Service & Capital Replacement 307,999.41102,666.471,231,998.00 1,231,998.00 923,998.59 75.00% 580 ­ Capital Outlay 0.000.001,000,000.00 1,000,000.00 1,000,000.00 100.00% 660,505.30228,394.1716,427,451.00 16,427,451.00 15,766,945.70Expense Total:95.98% ­373,400.28122,338.03­9,074,320.00 ­9,074,320.00 8,700,919.72Fund: 111 ­ WYLIE ECONOMIC DEVEL CORP Surplus (Deficit):95.89% Report Surplus (Deficit): 122,338.03 ­373,400.28­9,074,320.00 ­9,074,320.00 8,700,919.72 95.89% 17 01/23/2024 Item D. Budget Report For Fiscal: 2023­2024 Period Ending: 12/31/2023 1/5/2024 12:25:28 PM Page 4 of 4 Fund Summary Fiscal AcƟvity Variance Favorable (Unfavorable)Fund Period AcƟvity Current Total Budget Original Total Budget 111 ­ WYLIE ECONOMIC DEVEL CO ­373,400.28122,338.03­9,074,320.00 ­9,074,320.00 8,700,919.72 Report Surplus (Deficit): 122,338.03 ­373,400.28­9,074,320.00 ­9,074,320.00 8,700,919.72 18 01/23/2024 Item D. Wylie Economic Development Corporation Statement of Net Position As of December 31, 2023 Assets Cash and cash equivalents 13,630,103.04$ Receivables 770,000.00$ Note 1 Inventories 14,645,353.88$ Prepaid Items -$ Total Assets 29,045,456.92$ Deferred Outflows of Resources Pensions 67,748.55$ Total deferred outflows of resources 67,748.55$ Liabilities Accounts Payable and other current liabilities 11,634.76$ Unearned Revenue 4,141.40$ Note 2 Non current liabilities: Due within one year 513,488.21$ Note 3 Due in more than one year 15,034,169.48$ Total Liabilities 15,563,433.85$ Deferred Inflows of Resources Pensions (84,717.41)$ Total deferred inflows of resources (84,717.41)$ Net Position Net investment in capital assets -$ Unrestricted 13,465,054.21$ Total Net Position 13,465,054.21$ Note 1: Includes incentives in the form of forgivable loans for $20,000 (LUV-ROS), $100,000 (Glen Echo), $450,000 (Phoenix Ascending), and $200,000 (MLKJ) Note 2: Deposits from rental property Note 3: Liabilities due within one year includes compensated absences of $32,301 19 01/23/2024 Item D. 1/5/2024 12:25:57 PM Page 1 of 3 Balance Sheet Account Summary As Of 12/31/2023 Account Name Balance Fund: 111 ­ WYLIE ECONOMIC DEVEL CORP Assets 111­1000­10110 CLAIM ON CASH AND CASH EQUIV. 13,628,103.04 111­1000­10115 CASH ­ WEDC ­ INWOOD 0.00 111­1000­10135 ESCROW 0.00 111­1000­10180 DEPOSITS 2,000.00 111­1000­10198 OTHER ­ MISC CLEARING 0.00 111­1000­10341 TEXPOOL 0.00 111­1000­10343 LOGIC 0.00 111­1000­10481 INTEREST RECEIVABLE 0.00 111­1000­11511 ACCTS REC ­ MISC 0.00 111­1000­11517 ACCTS REC ­ SALES TAX 0.00 111­1000­12810 LEASE PAYMENTS RECEIVABLE 0.00 111­1000­12950 LOAN PROCEEDS RECEIVABLE 0.00 111­1000­12996 LOAN RECEIVABLE 0.00 111­1000­12997 ACCTS REC ­ JTM TECH 0.00 111­1000­12998 ACCTS REC ­ FORGIVEABLE LOANS 770,000.00 111­1000­14112 INVENTORY ­ MATERIAL/ SUPPLY 0.00 111­1000­14116 INVENTORY ­ LAND & BUILDINGS 14,645,353.88 111­1000­14118 INVENTORY ­ BAYCO/ SANDEN BLVD 0.00 111­1000­14310 PREPAID EXPENSES ­ MISC 0.00 111­1000­14410 DEFERRED OUTFLOWS 2,168,500.00 31,213,956.92Total Assets:31,213,956.92 Liability 111­2000­20110 FEDERAL INCOME TAX PAYABLE 0.00 111­2000­20111 MEDICARE PAYABLE 0.00 111­2000­20112 CHILD SUPPORT PAYABLE 0.00 111­2000­20113 CREDIT UNION PAYABLE 0.00 111­2000­20114 IRS LEVY PAYABLE 0.00 111­2000­20115 NATIONWIDE DEFERRED COMP 0.00 111­2000­20116 HEALTH INSUR PAY­EMPLOYEE 5,951.58 111­2000­20117 TMRS PAYABLE 3,061.41 111­2000­20118 ROTH IRA PAYABLE 0.00 111­2000­20119 WORKERS COMP PAYABLE 0.00 111­2000­20120 FICA PAYABLE 0.00 111­2000­20121 TEC PAYABLE 0.00 111­2000­20122 STUDENT LOAN LEVY PAYABLE 0.00 111­2000­20123 ALIMONY PAYABLE 0.00 111­2000­20124 BANKRUPTCY PAYABLE 0.00 111­2000­20125 VALIC DEFERRED COMP 0.00 111­2000­20126 ICMA PAYABLE 0.00 111­2000­20127 EMP. LEGAL SERVICES PAYABLE 0.00 111­2000­20130 FLEXIBLE SPENDING ACCOUNT 2,512.44 111­2000­20131 EDWARD JONES DEFERRED COMP 0.00 111­2000­20132 EMP CARE FLITE 12.00 111­2000­20133 Unemployment Comp Payable 5.01 111­2000­20151 ACCRUED WAGES PAYABLE 0.00 111­2000­20180 ADDIT EMPLOYEE INSUR PAY 92.32 111­2000­20199 MISC PAYROLL PAYABLE 0.00 111­2000­20201 AP PENDING 0.00 111­2000­20210 ACCOUNTS PAYABLE 0.00 111­2000­20530 PROPERTY TAXES PAYABLE 0.00 111­2000­20540 NOTES PAYABLE 2,168,500.00 111­2000­20810 DUE TO GENERAL FUND 0.00 20 01/23/2024 Item D. Balance Sheet As Of 12/31/2023 1/5/2024 12:25:57 PM Page 2 of 3 Account Name Balance 111­2000­22270 DEFERRED INFLOW 0.00 111­2000­22275 DEF INFLOW ­ LEASE PRINCIPAL 0.00 111­2000­22280 DEFERRED INFLOW ­ LEASE INT 0.00 111­2000­22915 RENTAL DEPOSITS 4,141.40 2,184,276.16Total Liability: Equity 111­3000­34110 FUND BALANCE ­ RESERVED 0.00 111­3000­34590 FUND BALANCE­UNRESERV/UNDESIG 29,403,081.04 29,403,081.04Total Beginning Equity: 287,105.02Total Revenue 660,505.30Total Expense ­373,400.28Revenues Over/Under Expenses Total Liabilities, Equity and Current Surplus (Deficit):31,213,956.92 29,029,680.76Total Equity and Current Surplus (Deficit): 21 01/23/2024 Item D. Balance Sheet As Of 12/31/2023 1/5/2024 12:25:57 PM Page 3 of 3 Account Name Balance Fund: 922 ­ GEN LONG TERM DEBT (WEDC) Assets 922­1000­10312 GOVERNMENT NOTES 0.00 922­1000­18110 LOAN ­ WEDC 0.00 922­1000­18120 LOAN ­ BIRMINGHAM 0.00 922­1000­18210 AMOUNT TO BE PROVIDED 0.00 922­1000­18220 BIRMINGHAM LOAN 0.00 922­1000­19050 DEF OUTFLOW TMRS CONTRIBUTIONS 42,227.29 922­1000­19051 DEF OUTFLOW SDBF CONTRIBUTIONS 3,028.00 922­1000­19075 DEF OUTFLOW ­ INVESTMENT EXP ­75,907.52 922­1000­19100 DEF OUTFLOW ­ ACT EXP/ASSUMP 98,400.78 922­1000­19125 (GAIN)/LOSS ON ASSUMPTION CHGS ­83,874.41 922­1000­19126 DEF INFLOW SDBF CONTRIBUTIONS ­843.00 ­16,968.86Total Assets:­16,968.86 Liability 922­2000­20310 COMPENSATED ABSENCES PAYABLE 15,502.89 922­2000­20311 COMP ABSENCES PAYABLE­CURRENT 32,300.82 922­2000­21410 ACCRUED INTEREST PAYABLE 28,814.49 922­2000­28205 WEDC LOANS/CURRENT 452,372.90 922­2000­28220 BIRMINGHAM LOAN 0.00 922­2000­28230 INWOOD LOAN 0.00 922­2000­28232 ANB LOAN/EDGE 0.00 922­2000­28233 ANB LOAN/PEDDICORD WHITE 0.00 922­2000­28234 ANB LOAN/RANDACK HUGHES 0.00 922­2000­28235 ANB LOAN 0.00 922­2000­28236 ANB CONSTRUCTION LOAN 0.00 922­2000­28237 ANB LOAN/ WOODBRIDGE PARKWAY 0.00 922­2000­28238 ANB LOAN/BUCHANAN 0.00 922­2000­28239 ANB LOAN/JONES:HOBART PAYOFF 0.00 922­2000­28240 HUGHES LOAN 0.00 922­2000­28242 ANB LOAN/HWY 78:5TH ST REDEV 0.00 922­2000­28245 ANB LOAN/DALLAS WHIRLPOOL 0.00 922­2000­28246 GOVCAP LOAN/KIRBY 7,246,324.61 922­2000­28247 JARRARD LOAN 79,695.52 922­2000­28248 GOVCAP LOAN/SERIES 2022 7,556,077.29 922­2000­28250 CITY OF WYLIE LOAN 0.00 922­2000­28260 PRIME KUTS LOAN 0.00 922­2000­28270 BOWLAND/ANDERSON LOAN 0.00 922­2000­28280 CAPITAL ONE CAZAD LOAN 0.00 922­2000­28290 HOBART/COMMERCE LOAN 0.00 922­2000­29150 NET PENSION LIABILITY 124,687.17 922­2000­29151 SDBF LIABILITY 11,882.00 15,547,657.69Total Liability: Equity 922­3000­34590 FUND BALANCE­UNRESERV/UNDESIG ­15,592,085.34 922­3000­35900 UNRESTRICTED NET POSITION ­120,264.00 ­15,712,349.34Total Beginning Equity: 0.00Total Revenue ­147,722.79Total Expense 147,722.79Revenues Over/Under Expenses Total Liabilities, Equity and Current Surplus (Deficit):­16,968.86 ­15,564,626.55Total Equity and Current Surplus (Deficit): 22 01/23/2024 Item D. MONTH FY 2021 FY 2022 FY 2023 FY 2024 DECEMBER 235,381.33$ 263,577.66$ 338,726.54$ 374,686.38$ 35,959.83$ 10.62% JANUARY 262,263.52$ 326,207.92$ 368,377.73$ -$ FEBRUARY 456,571.35$ 417,896.79$ 480,381.11$ -$ MARCH 257,187.91$ 305,605.50$ 313,686.17$ -$ APRIL 221,881.55$ 265,773.80$ 310,050.94$ -$ MAY 400,371.70$ 401,180.20$ 434,878.33$ -$ JUNE 290,586.92$ 343,371.26$ 330,236.89$ -$ JULY 314,559.10$ 331,432.86$ 379,162.00$ -$ AUGUST 390,790.76$ 429,696.16$ 448,253.70$ -$ SEPTEMBER 307,681.15$ 337,512.61$ 371,880.65$ -$ OCTOBER 326,382.38$ 346,236.36$ 377,466.67$ -$ NOVEMBER 411,813.32$ 392,790.84$ 458,694.91$ -$ Sub-Total 3,875,470.98$ 4,161,281.96$ 4,611,795.64$ 374,686.38$ 35,959.83$ 10.62% Total 3,875,470.98$ 4,161,281.96$ 4,611,795.64$ 374,686.38$ 35,959.83$ 10.62% *** Sales Tax collections typically take 2 months to be reflected as Revenue. SlsTx receipts are then accrued back 2 months. Example: December SlsTx Revenue is actually October SlsTx and is therefore the 1st allocation in FY24. DIFF 23 vs. 24 % DIFF 23 vs. 24 Wylie Economic Development Corporation SALES TAX REPORT December 31, 2023 BUDGETED YEAR $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 WEDC Sales Tax  Analysis  2023 2024 23 01/23/2024 Item D. PERFORMANCE AGREEMENTS FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 LUV-ROS 10,000.00$ -$ -$ -$ -$ -$ -$ 10,000.00$ 10,000.00$ A AMERICAN ENTITLEMENTS II 35,000.00$ 25,000.00$ 10,000.00$ -$ -$ -$ 10,000.00$ -$ 35,000.00$ NORTH DALLAS WYLIE LAND 120,000.00$ 20,000.00$ -$ -$ -$ -$ -$ 100,000.00$ 120,000.00$ AXL 65,000.00$ 9,250.00$ 9,250.00$ -$ -$ -$ 9,250.00$ 46,500.00$ 65,000.00$ GLEN ECHO BREWING 100,000.00$ 50,000.00$ 30,000.00$ 20,000.00$ -$ -$ 50,000.00$ -$ 100,000.00$ B MLKJ 80,000.00$ -$ 40,000.00$ 40,000.00$ -$ -$ 80,000.00$ -$ 80,000.00$ C CLF II LI WYLIE (LOVETT)1,300,000.00$ 650,000.00$ 650,000.00$ -$ -$ -$ 650,000.00$ -$ 1,300,000.00$ DEANAN/DANK 30,000.00$ 15,000.00$ -$ -$ -$ -$ -$ 15,000.00$ 30,000.00$ FIREWATER 300,000.00$ 100,000.00$ -$ -$ -$ -$ -$ 200,000.00$ 300,000.00$ PHOENIX ASCENDING -$ -$ -$ -$ -$ -$ -$ -$ -$ D SANDEN INTERNATIONAL 500,000.00$ 300,000.00$ 200,000.00$ -$ -$ -$ 200,000.00$ -$ 500,000.00$ 2,540,000.00$ 1,169,250.00$ 939,250.00$ 60,000.00$ -$ -$ 999,250.00$ 371,500.00$ 2,540,000.00$ Deferred Out Flow 2,168,500.00$ A. Performance Agreeement ($10,000) and Forgiveable Land Grant ($60,000 forgiven over 3 years). $20,000/year in 2022, 2023, & 2024. B. Performance Agreeement ($100,000) and Forgiveable Land Grant ($100,000 forgiven over 3 years). $25,000 CO & $25,000/year in 2024, 2025, & 2026. C. Performance Agreeement ($80,000) and Forgiveable Land Grant ($200,000 forgiven over 3 years). $50,000 CO & $50,000/year in 2025, 2026, & 2027. D. Forgiveable Land Grant ($450,000 forgiven over 4 years). $112,500 CO & $112,500/year in 2026, 2027, & 2028. Wylie Economic Development Corporation PERFORMANCE AGREEMENT REPORT December 31, 2023 TOTAL INCENTIVE REMAINING AFTER CURRENT FY PREVIOUS FY PAYMENTS TOTAL INCENTIVE 24 01/23/2024 Item D. Wylie City Council AGENDA REPORT Department: Finance Account Code: See Exhibit A Prepared By: Melissa Brown Subject Consider, and act upon, Ordinance No. 2024-02 amending Ordinance No. 2023-39, which established the budget for fiscal year 2023-2024; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. Recommendation Motion to approve the Item as presented. Discussion An average three percent merit salary increase was approved by council as part of the FY 2023 -24 budget. The department detail is attached in Exhibit A, reallocating the budget dollars from Special Services to the various departments in Funds 100, 112, and 611. Budget Merit Based Variance B/(W) General Fund $ 267,709 $ 261,638 $ 6,071 4B Fund $ 48,240 $ 47,527 $ 713 Utility Fund $ 71,749 $ 68,760 $ 2,989 The extra dollars will remain in the Special Services account for each fund. The overall effect of this amendment is budget neutral for all funds. 25 01/23/2024 Item E. Ordinance No. 2024-02 – Budget Amendment Merit Increase Page 1 of 2 ORDINANCE NO. 2024-02 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING ORDINANCE NO. 2023-39, WHICH ESTABLISHED THE BUDGET FOR FISCAL YEAR 2023- 2024; REPEALING ALL CONFLICTING ORDINANCES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council heretofore adopted Ordinance No. 2023-39 setting forth the Budget for Fiscal Year 2023-2024 beginning October 1, 2023, and ending September 30, 2024; and, WHEREAS, the City Departments and Divisions routinely review their budget appropriations to determine if any changes are necessary; and WHEREAS, based upon said review the City staff now recommends that certain amendments to the Budget be considered by the City Council; see Exhibit A; and, WHEREAS, the City Council has the authority to make amendments to the City Budget under Article VII, Section 4 of the City Charter, as well as State law; and, WHEREAS, the City Council has determined that the proposed amendments to the FY 2023-2024 Budget; see Exhibit A, with the revenues and expenditures therein contained, is in the best interest of the City; and therefore, desires to adopt the same by formal action. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF WYLIE, TEXAS: SECTION I: The proposed amendments to the FY 2023-2024 Budget of the City of Wylie; Exhibit A, as heretofore adopted by Ordinance No. 2024-02, are completely adopted and approved as amendments to the said FY 2023-2024 Budget. SECTION II: All portions of the existing FY 2023-2024 Budget and Ordinance No. 2023-39, except as specifically herein amended, shall remain in full force and effect, and not be otherwise affected by the adoption of the amendatory ordinance. SECTION III: Should any paragraph, sentence, sub-division, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part or parts as declared to be invalid, illegal, or unconstitutional. SECTION IV: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION V: That all other ordinances and code provisions in conflict herewith are hereby repealed to the extent of any such conflict or inconsistency and all other provisions of the Wylie City Code not in conflict herewith shall remain in full force and effect. SECTION VI: The repeal of any ordinance, or parts thereof, by the enactment of the Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, 26 01/23/2024 Item E. Ordinance No. 2024-02 – Budget Amendment Merit Increase Page 2 of 2 nor as affecting any rights of the municipality under any section or provision of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 23rd day of January, 2024. __________________________ Matthew Porter, Mayor ATTEST: ______________________________ Stephanie Storm, City Secretary 27 01/23/2024 Item E. Budget Amendment Exhibit A Redistribution of Funds Set Aside for 3% Average Merit Increase Fund Department Account Number Account Description Debit Credit 100 5112 51110 Salaries (19,863.62) 51112 Salaries - Part Time 537.14 51310 TMRS (3,078.86) 51440 FICA (1,264.85) 51450 Medicare (295.81) (25,040.28) 100 5113 51110 Salaries (5,633.18) 51310 TMRS (873.14) 51440 FICA (349.26) 51450 Medicare (81.68) (6,937.26) 100 5131 51110 Salaries (17,798.52) 51310 TMRS (2,758.77) 51440 FICA (1,103.51) 51450 Medicare (258.08) (21,918.88) 100 5132 51110 Salaries (5,972.80) 51310 TMRS (925.78) 51440 FICA (370.31) 51450 Medicare (86.61) (7,355.50) 100 5152 51110 Salaries (6,348.62) 51310 TMRS (984.04) 51440 FICA (393.61) 51450 Medicare (92.05) (7,818.32) 100 5153 51110 Salaries (12,859.67) 51310 TMRS (1,993.25) 51440 FICA (797.30) 51450 Medicare (186.47) (15,836.69) 100 5154 51110 Salaries (3,224.57) 51310 TMRS (499.81) 51440 FICA (199.92) 51450 Medicare (46.76) (3,971.06) 100 5155 51110 Salaries (11,112.02) 51310 TMRS (1,722.36) 51440 FICA (688.95) 51450 Medicare (161.12) (13,684.45) 28 01/23/2024 Item E. Budget Amendment Exhibit A Redistribution of Funds Set Aside for 3% Average Merit Increase Fund Department Account Number Account Description Debit Credit 100 5211 51110 Salaries (19,331.88) 51112 Salaries - Part Time (6,848.85) 51310 TMRS (2,996.44) 51440 FICA (1,623.21) 51450 Medicare (379.62) (31,180.00) 100 5231 51110 Salaries (20,463.24) 51310 TMRS (3,171.80) 51440 FICA (1,268.72) 51450 Medicare (296.72) (25,200.48) 100 5241 51110 Salaries (2,593.34) 51310 TMRS (401.97) 51440 FICA (160.79) 51450 Medicare (37.60) (3,193.70) 100 5251 51110 Salaries (7,589.74) 51112 Salaries - Part Time (129.56) 51310 TMRS (1,176.41) 51440 FICA (478.60) 51450 Medicare (111.93) (9,486.24) 100 5311 51110 Salaries (4,944.35) 51310 TMRS (766.37) 51440 FICA (306.55) 51450 Medicare (71.69) (6,088.96) 100 5312 51110 Salaries (7,775.95) 51310 TMRS (1,205.27) 51440 FICA (482.11) 51450 Medicare (112.75) (9,576.08) 100 5313 51110 Salaries 3,559.30 51310 TMRS (551.69) 51440 FICA (220.68) 51450 Medicare (51.61) (4,383.28) 100 5411 51110 Salaries (15,862.24) 51310 TMRS (2,458.65) 51440 FICA (983.46) 51450 Medicare (230.00) (19,534.35) 29 01/23/2024 Item E. Budget Amendment Exhibit A Redistribution of Funds Set Aside for 3% Average Merit Increase Fund Department Account Number Account Description Debit Credit 100 5511 51110 Salaries (15,546.94) 51310 TMRS (2,409.78) 51440 FICA (963.91) 51450 Medicare (225.43) (19,146.06) 100 5551 51110 Salaries (21,725.71) 51112 Salaries - Part Time (4,208.81) 51310 TMRS (3,367.48) 51440 FICA (1,607.94) 51450 Medicare (376.05) (31,285.99) 100 5181 56040 Special Services (261,637.58) 112 5612 51110 Salaries (1,726.61) 51112 Salaries - Part Time (1,586.56) 51310 TMRS (267.62) 51440 FICA (205.42) 51450 Medicare (48.04) (3,834.25) 112 5613 51110 Salaries (4,554.09) 51112 Salaries - Part Time (4,740.66) 51310 TMRS (705.88) 51440 FICA (576.27) 51450 Medicare (134.77) (10,711.67) 112 5614 51110 Salaries (6,957.44) 51310 TMRS (1,078.40) 51440 FICA (431.36) 51450 Medicare (100.88) (8,568.08) 112 5625 51110 Salaries (9,543.13) 51112 Salaries - Part Time (11,760.62) 51310 TMRS (1,479.19) 51440 FICA (1,320.83) 51450 Medicare (308.90) (24,412.67) 112 5000 56040 Special Services (47,526.67) 30 01/23/2024 Item E. Budget Amendment Exhibit A Redistribution of Funds Set Aside for 3% Average Merit Increase Fund Department Account Number Account Description Debit Credit 611 5711 51110 Salaries (4,705.54) 51310 TMRS (729.36) 51440 FICA (291.74) 51450 Medicare (68.23) (5,794.87) 611 5712 51110 Salaries (16,178.48) 51310 TMRS (2,507.66) 51440 FICA (1,003.07) 51450 Medicare (234.59) (19,923.80) 611 5713 51110 Salaries (12,852.46) 51310 TMRS (1,992.13) 51440 FICA (796.85) 51450 Medicare (186.36) (15,827.80) 611 5714 51110 Salaries (8,152.09) 51310 TMRS (1,263.57) 51440 FICA (505.43) 51450 Medicare (118.21) (10,039.30) 611 5715 51110 Salaries (13,945.47) 51310 TMRS (2,161.55) 51440 FICA (864.62) 51450 Medicare (202.21) (17,173.85) 611 5719 56040 Special Services (68,759.62) BUDGET Merit Increase Variance B/(W) TOTAL GENERAL FUND (267,709) (261,638) (6,071) TOTAL 4B FUND (48,240) (47,527) (713) TOTAL UTILITY FUND (71,749) (68,760) (2,989) 31 01/23/2024 Item E. Wylie City Council AGENDA REPORT Department: Finance Account Code: See Exhibit A Prepared By: Melissa Brown Subject Consider, and act upon, Ordinance No. 2024-03 amending Ordinance No. 2023-39, which established the budget for fiscal year 2023-2024; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. Recommendation Motion to approve the Item as presented. Discussion This amendment consists of two items: 1) The Firehouse Subs Public Safety Foundation Board of Directors awarded Wylie Fire Rescue a grant for FLIR Fixed Mount Thermal Imaging Camera (including freight up to $200). The grant is valued at up to $19,196.80. This budget amendment will recognize the grant money received and add the funds into account 100-5231-58850-Major Tools and Equipment for the purchase of the camera. 2) TML insurance recoveries in the amount of $5,302.42 were received for damages to a police department vehicle. The funds are added to account 100-5181-54510-Motor Vehicles to allow for the repair. The overall effect of this amendment is budget neutral for the General Fund. 32 01/23/2024 Item F. Ordinance No. 2024-03 – Budget Amendment Firehouse Subs Grant and Vehicle Repair Page 1 of 2 ORDINANCE NO. 2024-03 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING ORDINANCE NO. 2023-39, WHICH ESTABLISHED THE BUDGET FOR FISCAL YEAR 2023- 2024; REPEALING ALL CONFLICTING ORDINANCES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council heretofore adopted Ordinance No. 2023-39 setting forth the Budget for Fiscal Year 2023-2024 beginning October 1, 2023, and ending September 30, 2024; and, WHEREAS, the City Departments and Divisions routinely review their budget appropriations to determine if any changes are necessary; and WHEREAS, based upon said review the City staff now recommends that certain amendments to the Budget be considered by the City Council; see Exhibit A; and, WHEREAS, the City Council has the authority to make amendments to the City Budget under Article VII, Section 4 of the City Charter, as well as State law; and, WHEREAS, the City Council has determined that the proposed amendments to the FY 2023-2024 Budget; see Exhibit A, with the revenues and expenditures therein contained, is in the best interest of the City; and therefore, desires to adopt the same by formal action. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF WYLIE, TEXAS: SECTION I: The proposed amendments to the FY 2023-2024 Budget of the City of Wylie; Exhibit A, as heretofore adopted by Ordinance No. 2024-03, are completely adopted and approved as amendments to the said FY 2023-2024 Budget. SECTION II: All portions of the existing FY 2023-2024 Budget and Ordinance No. 2023-39, except as specifically herein amended, shall remain in full force and effect, and not be otherwise affected by the adoption of the amendatory ordinance. SECTION III: Should any paragraph, sentence, sub-division, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part or parts as declared to be invalid, illegal, or unconstitutional. SECTION IV: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION V: That all other ordinances and code provisions in conflict herewith are hereby repealed to the extent of any such conflict or inconsistency and all other provisions of the Wylie City Code not in conflict herewith shall remain in full force and effect. SECTION VI: The repeal of any ordinance, or parts thereof, by the enactment of the Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, 33 01/23/2024 Item F. Ordinance No. 2024-03 – Budget Amendment Firehouse Subs Grant and Vehicle Repair Page 2 of 2 nor as affecting any rights of the municipality under any section or provision of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 23rd day of January, 2024. _____________________________________ Matthew Porter, Mayor ATTEST: ______________________________ Stephanie Storm, City Secretary 34 01/23/2024 Item F. Budget Amendment Exhibit A General Fund - Fire House Subs Grant and Vehicle Repair Fund Department Account Number Account Description Debit Credit 100 4000 43512 Fire Grants 19,196.80 100 5231 58850 Major Tools and Equipment 19,196.80 100 4000 49600 Insurance Recoveries 5,302.42 100 5181 54510 Motor Vehicles 5,302.42 General Fund 24,499.22 24,499.22 35 01/23/2024 Item F. Wylie City Council AGENDA REPORT Department: Planning Account Code: Prepared By: Jasen Haskins Subject Consider, and act upon, Ordinance No. 2024-04 for a change in zoning from Multi-Family (MF) to Commercial Corridor - Special Use Permit (CC-SUP) on 0.198 acres to allow for an office use within a residential structure. Property located at 100 S. 3rd Street (ZC 2023-14). Recommendation Motion to approve the Item as presented. Discussion On January 9, 2023 City Council approved the writing of an ordinance for a change in zoning from Multi-Family (MF) to Commercial Corridor - Special Use Permit (CC-SUP) on 0.198 acres to allow for an office use within a residential structure. Property located at 100 S. 3rd Street (ZC 2023-14). The approval of the writing of the Ordinance included the requirement for a 6-8’ board-on-board wooden fence to be constructed along the south side of the property. That requirement has been added to the SUP Conditions (III.4) and the Zoning Exhibit. Final approval of Zoning Case 2023-14 requires the adoption of the Ordinance to amend the zoning accordingly in the Official Zoning map of the City; and providing a penalty clause, a repeal clause, a savings clause, a severability clause, and an effective date. The subject ordinance allows for the rezoning. Exhibit A (Legal Description), Exhibit B (Zoning Exhibit), and Exhibit C (SUP Conditions) are included and made a part of this Ordinance. The above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. 36 01/23/2024 Item G. Ordinance No. 2024-04 – Change of Zoning for 100 S. Third Street (ZC 2023-14) Page 1 of 2 ORDINANCE NO. 2024-04 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2023-14, MULTI-FAMILY (MF) TO COMMERCIAL CORRIDOR - SPECIAL USE PERMIT (CC-SUP) ON 0.198 ACRES TO ALLOW FOR AN OFFICE USE WITHIN A RESIDENTIAL STRUCTURE; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Commercial Corridor - Special Use Permit (CC-SUP), said property being described in Exhibit A (Legal Description), hereto and made a part hereof for all purposes. SECTION 2: That a Zoning Exhibit and SUP Conditions are an integral component of the development of the property and are attached as Exhibit B and Exhibit C. SECTION 3: That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 4: That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. SECTION 5: Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 6: Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. 37 01/23/2024 Item G. Ordinance No. 2024-04 – Change of Zoning for 100 S. Third Street (ZC 2023-14) Page 2 of 2 SECTION 7: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 8: The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 23rd day of January, 2024. ________________________________ Matthew Porter, Mayor ATTEST: __________________________ Stephanie Storm, City Secretary Date of Publication: January, 31, 2024, in the Wylie News 38 01/23/2024 Item G. Exhibit A Legal Description Property being 0.198 acres, all of Lot 1, Block 21 of the Railroad Addition of the City of Wylie, located at 100 South 3rd Street, Wylie, Texas. 39 01/23/2024 Item G. ZO N I N G E X H I B I T F O R 10 0 S O U T H T H I R D S T R E E T , CI T Y O F W Y L I E , C O L L I N C O U N T Y , T E X A S 7 5 0 9 8 DRAWING REV: FOR: DRAWN BY: DATE: SHEET OF CONSTRUCTION Bryan D. Rogers 11-14-2023 A1 OR I G I N A L S H E E T = 2 4 X 3 6 ● ● ● SITE 40 01/23/2024 Item G. ROOF HEIGHT = 24' - 0"ROOF HEIGHT = 24' - 0" EXISTING SIDING = PAINTED WOOD PLANKS OVER WOOD SHEATHING NEW SIDING = PAINTED HARDIE BOARD DESIGNED AND CONSTRUCTED TO MATCH EXISTING EXISTING SIDING = PAINTED WOOD PLANKS OVER WOOD SHEATHING NEW SIDING = PAINTED HARDIE BOARD DESIGNED AND CONSTRUCTED TO MATCH EXISTING ROOF HEIGHT = 24' - 0"ROOF HEIGHT = 24' - 0" EXISTING SIDING = PAINTED WOOD PLANKS OVER WOOD SHEATHING NEW SIDING = PAINTED HARDIE BOARD DESIGNED AND CONSTRUCTED TO MATCH EXISTING   ȃȂȂȅ¨šª ȂȄǁȂȄǁȃȉ 1/4" = 1'-0"2 EAST ELEVATION 1/4" = 1'-0"1 NORTH ELEVATION 1/4" = 1'-0"3 SOUTH ELEVATION 1/4" = 1'-0"4 WEST ELEVATION 41 01/23/2024 Item G. Page 1 of 2 100 S 3rd EXHIBIT “C” Conditions For Special Use Permit I. PURPOSE: The purpose of this Special Use Permit is to allow for the preservation of an existing historic residential structure by allowing the structure to be converted into a commercial office use for a home healthcare agency with the ability for the structure be used simultaneously as a residence. II. GENERAL CONDITIONS: 1. This Special Use Permit shall not affect any regulations of the Commercial Corridor (CC) set forth in Article 4, Section 4.1 of the Comprehensive Zoning Ordinance (adopted as of June 2023), except as specifically provided herein. 2. The design and development of the 100 S 3rd development shall be in accordance with Section 3 below and the Zoning Exhibit (Exhibit B). III. SPECIAL CONDITIONS: 1. Design criteria of the Commercial Corridor (CC) Architectural Design Requirements of the Zoning Ordinance (adopted as of June 2023) shall be modified to allow for the residential structure’s material and design comprised of wood paneling and Hardie Board to be in compliance with the architectural design standards of the Zoning Ordinance. 2. The following uses as defined in the June 2023 Comprehensive Zoning Ordinance shall be allowed: a. General Office b. Single Family Dwelling (Detached) 3. Design criteria of the Commercial Corridor Development Standards of the Zoning Ordinance (adopted as of June 2023) shall be modified to allow for a front setback of 13’8” in lieu of the typical 25’ setback. 42 01/23/2024 Item G. Page 2 of 2 4. A 6-8' high board-on-board wooden fence shall be constructed on the south side of the property and maintained throughout the time this SUP is in effect. 5. The Special Use Permit shall be rescinded if the structure is damaged or destroyed with an expense of restoration exceeding 75% of the repair/replacement cost of the structure. The structure shall then comply with the Commercial Corridor zoning design regulations. 6. This Special Use Permit shall automatically terminate and be rescinded without further action by the City or City Council, and the property reverted to the underlying Commercial Corridor zoning if the property and or business is not majority owned, managed, or operated by Musa Dirisu. 7. The Zoning Exhibit (Exhibit B) shall serve as the Site Plan for the development. Approval of the SUP shall act as site plan approval. 43 01/23/2024 Item G. Wylie City Council AGENDA REPORT Department: Engineering Account Code: 413, 414, NTMWD Prepared By: Tim Porter Subject Consider, and act upon, Resolution No. 2024-02(R) authorizing the City Manager of the City of Wylie to execute the Grade Crossing Construction Agreement between The Kansas City Southern Railway Company and the City of Wylie, Texas concerning the construction of the railway crossing of Eubanks Lane, north of Centennial Drive. Recommendation Motion to approve the Item as presented. Discussion The Eubanks Lane Widening Project improves Eubanks Lane for approximately 1,200 linear feet, from State Highway 78 to the North Texas Municipal Water District (NTMWD) driveway. Currently, Eubanks Lane is a two -lane asphalt road, and it will be expanded to a four-lane concrete road, with a median along the corridor adjacent to and across railroad right-of-way. On May 9, 2023, the City awarded the roadway construction bid to McMahon Contracting LLP. The subject Grade Crossing Construction Agreement outlines responsibilities for scope and costs for the City of Wylie and Kansas City Southern (KCS) railroad to construct the new track crossing. Within the agreement, KCS estimates the improvements will cost $1,222,722.00 to procure and install the grade crossing surface and grade crossing warning devices, including estimated transportation, shipping, and handling costs. The City will also be responsible for agreed cost overages. In 2016, the NTMWD partnered with the City through an Interlocal Agreement (ILA) to fund 80% of the construction costs for the roadway improvements. The remaining 20% of the construction cost would be funded through the City's East and West Thoroughfare Impact Fees. Due to increased construction costs, the City requested an additional $2.4M fr om the NTMWD in 2023 to finalize funding based on the bid pricing for the construction contract, as well as a separate contract for geotechni cal testing and the subject railroad grade crossing contract. This additional funding was subsequently approved at the District's April 27, 2023 Board Meeting. To continue construction of the Eubanks Lane project, staff recommends approval of the attached Resolution and Agreement. The costs for the outlined railroad improvements, similar to the construction contract, will be afforded by the use of East and West Thoroughfare Impact Fees and will be shared with the NTMWD. 44 01/23/2024 Item 1. Resolution No. 2024-02(R) Agreement with KCS for Eubanks Lane Page 1 of 2 RESOLUTION NO. 2024-02(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, HEREBY AUTHORIZING THE CITY MANAGER OF THE CITY OF WYLIE TO EXECUTE THE GRADE CROSSING CONSTRUCTION AGREEMENT BETWEEN THE KANSAS CITY SOUTHERN RAILWAY COMPANY AND THE CITY OF WYLIE, TEXAS CONCERNING THE CONSTRUCTION OF THE RAILWAY CROSSING OF EUBANKS LANE, NORTH OF CENTENNIAL DRIVE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: The City Manager of the City of Wylie, Texas, is hereby authorized to execute, on behalf of the City Council of the City of Wylie, the Grade Crossing Construction Agreement between The Kansas City Southern Railway Company and the City of Wylie, Texas concerning the construction of the railway crossing of Eubanks Lane, north of Centennial Drive. See Exhibit “A” - Grade Crossing Construction Agreement. SECTION 2: This Resolution shall take effect immediately upon its passage. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 23rd day of January, 2024. ______________________________ Matthew Porter, Mayor ATTEST TO: ____________________________ Stephanie Storm, City Secretary 45 01/23/2024 Item 1. Resolution No. 2024-02(R) Agreement with KCS for Eubanks Lane Page 2 of 2 EXHIBIT “A” Grade Crossing Construction Agreement 46 01/23/2024 Item 1. Page 1 of 4 GRADE CROSSING CONSTRUCTION AGREEMENT This AGREEMENT is entered into this ____ day of ______________ 2024, by and between THE KANSAS CITY SOUTHERN RAILWAY COMPANY ("KCSR") d/b/a (“CPKC”) (herein sometimes called "KCS"), a Missouri corporation to be addressed at 4601 Hilry Huckaby III Drive, Shreveport LA 71107, and CITY OF WYLIE, TEXAS (herein sometimes called "City"), to be addressed at 300 Country Club Rd., Building 100, Wylie, TX 75098 (KCS and City each being sometimes referred to herein individually as a “Party” and sometimes being referred to herein together as the “Parties”). WHEREAS, Eubanks Lane in Wylie, Texas, is being widened from a two-lane thoroughfare to a four-lane divided thoroughfare; and WHEREAS, said four-lane divided thoroughfare shall cross tracks utilized by KCS at approximate railroad Mile Post 200.02 on the Alliance Subdivision, DOT Crossing No. 789654 P (the "Crossing"); and WHEREAS, City desires to provide for the reconstruction of the at-grade highway-rail crossing where the said Eubanks Lane crosses track utilized by KCS; and WHEREAS, KCS has agreed to perform the work necessary for such reconstruction, but only as subject to the following terms and conditions of this Agreement. NOW, THEREFORE, the Parties agree as follows: 1. KCS shall provide the necessary materials and labor to perform the necessary construction of the grade crossing surface from end of tie to end of tie for the Crossing. KCS’s estimate of the costs required to perform said work is attached hereto as Exhibit A. The Parties acknowledge that Exhibit A is only an estimate, and that the City shall be responsible for the actual cost of the labor, material and other expenses incurred by KCS for the grade crossing surface construction, determined according to the methodology shown in Exhibit A, whether such actual cost is more or less than shown on Exhibit A. 2. KCS shall provide the necessary materials and labor to construct the grade crossing warning devices for the Crossing. KCS’s estimate of the costs required to perform said work is attached hereto as Exhibit B. The Parties acknowledge that Exhibit B is only an estimate, and that the City shall be responsible for the actual cost of the labor, material and other expenses incurred by KCS for the grade crossing warning device construction shown on Exhibit B, determined according to the methodology shown in Exhibit B, whether such actual cost is more or less than shown on Exhibit B. 47 01/23/2024 Item 1. Page 2 of 4 3. Prior to KCS performing any work on this project, City will deposit with KCS ONE MILLION, TWO HUNDRED TWENTY-TWO THOUSAND, SEVEN HUNDRED AND TWENTY-TWO DOLLARS ($1,222,722.00) to cover the estimated cost to procure and install the grade crossing surface and grade crossing warning devices, including estimated transportation, shipping and handling costs for the same (the “associated costs”). In the event that KCS determines that the cost to procure and install the grade crossing surface and grade crossing warning devices, including the associated costs, will exceed $1,222,722.00 by less than $50,000.00, KCS shall give written notice and supporting documentation to the City for its approval to proceed prior to incurring such additional cost and expenses. The City shall review and provide written approval within fourteen (14) days to avoid project delays. In the event that KCS determines that the cost to procure and install the grade crossing surface and grade crossing warning devices, including the associated costs, will exceed $1,222,722.00 by $50,000.00 or more, KCS shall give written notice and supporting documentation to the City for its approval to proceed prior to incurring such additional cost and expenses. The City shall review and provide written approval within thirty (30) days to avoid project delays. KCS shall be under no obligation to provide any materials or perform any labor until the City’s deposit has been received and cleared KCS’s bank. 4. City shall furnish KCS documentation of federal funds - particularly funds appropriated under 23 U.S.C. Section 130 - if any, being used to compensate KCS for the project. 5. Upon completion of the installation of the grade crossing surface and grade crossing warning devices, KCS shall determine the actual cost of the crossing surface and grade crossing warning devices, including associated costs. If that actual cost and associated costs together exceed $1,222,722.00, then, so long as KCS has complied with the notice and approval procedures set forth in Section 3 above, KCS shall invoice the City for the additional amount by which the actual costs together with associated costs exceed $1,222,722.00. If KCS issues such an invoice to the City, the City shall pay such invoice within sixty (60) days. If the actual cost of the project, together with associated costs, is less than $1,222,722.00, KCS shall determine the actual cost and associated costs of the project and advise the City thereof, and shall within sixty (60) days thereafter issue a refund to the City of the difference between the actual cost-plus associated costs and the estimated cost of $1,222,722.00. 6. City, at its sole cost and expense, shall provide all necessary materials and labor to construct the portions of the roadway surface outside the ends of ties. City will install the road approaches, drainage, pavement markings and arrange for disposal of the spoil (if any), cause the roadway to remain closed to all vehicular and truck traffic during construction except at times when KCS and City together agree that work may safely continue while traffic is allowed to pass, arrange for all construction and warning signs and barricades, and be responsible for any required notification of the public. In doing such work, the City shall enhance or, at a minimum, shall not impair or reduce the existing drainage of water away from the track. 7. City shall furnish KCS with a certified copy of a resolution or ordinance adopted by the governing body of City of Wylie, Texas authorizing the Mayor or City Manager to execute this Agreement on behalf of City. 48 01/23/2024 Item 1. Page 3 of 4 8. City shall be responsible for providing and paying for all traffic and pedestrian control (including but not limited to barriers and flagmen) required during the project, all in accordance with the Manual on Uniform Traffic Control Devices and other applicable safety standards, including KCS’s. Whenever City’s contractor or its personnel or equipment are within twenty-five feet (25’) of any railroad track at the Crossing, their activities shall be attended by a KCS-approved railroad flagman, hired and paid by the City. The City’s contractor and its personnel and equipment shall clear the railroad track when so instructed by the railroad flagman. City and its contractors performing any work within the railroad right of way shall carry appropriate insurance which is sufficient, in the City’s reasonable opinion, to fully compensate for any injury to or death of any person or for any damage to property occurring while City or its contractors are performing any work within railroad right of way. City shall apply for a Right of Entry (ROE) (including payment of applicable costs) prior to the City performing any of its work within 25 feet of the nearest rail. Information and ROE application can be obtained by contacting: Denise Case Jones Lang LaSalle Americas, Inc. (817) 230-2614 – Office Denise.case@am.jll.com 4200 Buckingham Road | Suite 110 Fort Worth, TX 76155 9. Upon completion of the work, the crossing surface, signal, flasher and gate will thereafter be maintained by KCS throughout their useful life. 10. The City, with the cooperation of KCS, will be responsible for obtaining any required governmental authorizations, including approval of the Texas Department of Transportation. All work will be done in accordance with the Manual on Uniform Traffic Control Devices. 11. The City acknowledges that KCS’s agreement herein and cooperation with the City’s effort to extend Eubanks Lane is based on the circumstances of this crossing, and is without prejudice to KCS’s right to object and to oppose other expansion of or creation of other at-grade crossings. (Remainder of this Page Intentionally Left Blank; Signatures on Following Page) 49 01/23/2024 Item 1. Page 4 of 4 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in duplicate the day and year first above written. THE KANSAS CITY SOUTHERN RAILWAY COMPANY Name: Title: Date: CITY OF WYLIE, TEXAS Name: Title: Date: Seen and Agreed. DALLAS AREA RAPID TRANSIT By: Signature ___________________________________________ Printed Name Title Date 50 01/23/2024 Item 1. ESTIMATE Date:03/02/23 Applicant:City of Wylie, Tx Location:Wylie, Tx Mile Post:200.02 Greenville Subdivision Dot #:789654P Road Name:Eubanks Lane Asset #:BP-939050 Estimated Project Cost $493,722 Grading - Subgrade Preparation (1) Materials 175 Net Tons - Asphalt for Filler $150.00 per Net Ton $26,250 200 Net Tons - 12" Asphalt Subbase for extension $150.00 per Net Ton $30,000 500 Net Tons - Ballast Material $95.00 per Net Ton $47,500 Total Materials Cost $103,750 (2) Contractor Labor and Equipment 84 Hours - 3 Trackhoes with Operators $125.00 per Hour $31,500 84 Hours - Dump Truck with Operator $90.00 per Hour $7,560 84 Hours - Dozer with Operator $90.00 per Hour $7,560 84 Hours - Asphalt Steel Wheel Roller $75.00 per Hour $6,300 48 Hours - Saw Cut Machine $75.00 per Hour $3,600 48 Hours - Asphalt Milling Machine $85.00 per Hour $4,080 48 Hours - Asphalt Laydown Machine $150.00 per Hour $7,200 324 Man Hours - Miscellaneous Labor $45.00 per Hour $14,580 84 Man Hours - Flagging ( Rail Pro) $130.00 per Hour $10,920 84 Man Hours - Contract Recordkeeping & Completion Reports $50.00 per Hour $4,200 2 $10,000.00 estimated $20,000 400 $13.00 estimated $5,200 700 $33.00 estimated $23,100 1 $7,500.00 estimated $7,500 Total Contractor Cost $153,300 Project Summary: Install (2) 81.25' concrete crossing, new filter fabric, new ballast, new drainage pipes and extension of existing hardpan for the road widening project All items may or may not be used. If not, the final billing will reflect actual quantities. THIS IS AN ESTIMATE OF COST, THE INDIVIUAL PRICES AND FINAL BILL MAY VARY, BUT THE FINAL BILLING WILL REFLECT ACTUAL DOCUMENTALBLE PRICES. Disposal of spoils Traffic Control Plan, Barricades, and Detouring Haul 80' Track Panel Mobilization In & Out 51 01/23/2024 Item 1. Crossing and Trackwork (1) Materials 162.5 L.F. - Prefabricated Concrete Crossing Panel for 136lb Rail $185.00 per L.F. $30,063 101 Rubber Bearing Pads for Concrete Crossing Panel $10.54 Ea. $1,065 4 Ea. - 80' 136# Prefabricated Track Panel 10' Oak Ties on 19 1/2" centers $14,250.00 Ea. $57,000 4 Ea - Transition Rail 136RE/115 3/16 HL LH 20’ with 1/4" head loss $2,000.00 ea $8,000 4 Ea - Transition Rail 136RE/115 3/16 HL RH 20’ with 1/4" head loss $2,000.00 ea $8,000 20 Ea. - Plasma Welds $955.00 $19,100 30 Ea. - Oak Ties - 10' long $49.75 Ea. $1,493 60 Ea. - New 136 Tie Plates $10.50 Ea. $630 300 Ea. - Track Spikes $0.45 Ea. $135 4800 Sq. Ft. - Filter Fabric $0.25 per Sq. Ft. $1,200 5 % Freight and Handling of Materials $6,334 6 % State and Use Tax on Materials $7,601 Total Materials Cost $140,621 (2) Labor 80 Project Management $60.00 per Hour $4,800 252 Man Hours to Remove Existing Crossing $45.00 per Man Hour $11,340 252 Man Hours to Reconstruct Track $45.00 per Man Hour $11,340 252 Man Hours to Install New Crossing $45.00 per Man Hour $11,340 10.55 % Vacation and Holidays $4,096 18.31 % Health and Welfare $7,108 26.73 % Railroad Retirement and Unemployment $11,471 1.95 % Supplemental Pension $837 12.5 % Railroad Public Liability Insurance $4,853 Total Labor Cost $67,184 (3) Equipment 6 Days - 2 Heavy Duty Drills $25.00 per Day $300 6 Days - 2 Impact Wrenches $25.00 per Day $300 6 Days - 2 Air Compressors $65.00 per Day $780 6 Day - Automatic Tamper with Operator $2,500.00 per Day $15,000 52 01/23/2024 Item 1. 6 Day - Ballast Regulator with Operator $1,040.00 per Day $6,240 84 Hours - Section Truck with Rail Units $25.33 per Hour $2,128 84 Hours - Roadmaster Truck with Rail Units $12.61 per Hour $1,059 48 Hours - Welding Truck with Rail Units $63.75 per Hour $3,060 Total Equipment Cost $28,867 Estimated total project cost $493,722 53 01/23/2024 Item 1. Project Description & Location… COLLIN COUNTY DOT NO. 789654P CSJ PROJECT EUBANKS LANE (CR 389) States Identification… DWG NO. SD-08-2-200.02 DOT NO. 789654P MILE POST 200.02 ASSET # 929081.01.01 MIDWEST DIVISION GREENVILLE SUBDIVISION Railroads Identification…Funding Mechanism… KANSAS CITY SOUTHERN RAILWAY COMPANY GRADE CROSSING WARNING DEVICES SIGNAL PROJECT ESTIMATE OF COST DATE SIGNAL PROJECT 3-10-2023ESTIMATE IS DEFINED AS: TO PRODUCE A STATEMENT OF APPROXIMATE COST PROPOSED TO INSTALL FOUR NEW FLASHER SIGNALS WITH GATES AND INSTALL A NEW 6’ x 10’ STEEL BUNGALOW WITH CONSTANT WARNING TIME UNIT AT THE CROSSING OF KCS RAILWAY TRACKS WITH CR 389 (EUBANKS LANE) IN WYLIE, TX ...THIS PROJECT WILL BE PHASED TO ACCOMMODATE THE ROAD CONSTRUCTION SCHEDULE. IF THE ROAD CONSTRUCTION FINAL PHASING REQUIRES MORE THAN 4 PHASES OF WORK BY THE RAILROAD, THE COST MAY INCREASE MATERIAL TOTAL = $ 729,000.00 TOTAL ESTIMATED COST LABOR & ADDITIVES, Equipment, Engineering… LABOR TOTAL =$ 357,000.00 TO INSTALL FLASHERS & GATES AT CR 389 (EUBANKS LANE) IN WYLIE, TX 6’ x 10’ STEEL BUNGALOW, with Event Recording Unit, with Constant Warning Device and Program required to control warning devices as shown, Chargers & Battery necs., etc FLASHER & GATE SIGNALS, with 12” LED Lights, All Aluminum Gate Arms, LED Gate Lights, Signs, Bells, with any side lights as per State Specifications. SIGNAL GROUND MATERIAL, Foundations, Underground Wire & Cable, Guard Rails, Shunt Boxes at approaches, Track Connectors, Bond Wires, wiring materials, etc. Containerized Freight Charges, Siemens Corp. PROJECT MATERIAL, Cover Rock or Fill Material, AC Meter Pole, boring pipe, etc Directional Boring with 4” PVC Pipe as determined by Railroad, retaining wall, culvert, etc. Public Road Authority to perform any culvert or drainage work required, cost not included MATERIAL RELEASED… none $ 119,000.00 $ 74,000.00 $ 94,000.00 $ 25,000.00 $ 60,000.00 MATERIAL Description & Pricing Info…TOTAL KCS LABOR with Additives, all Signal Dept. Personnel required for Administration, Supervision and for Field Installation, testing and cut-over as directed by the Signal Engineer. EQUIPMENT CHARGES, for Signal Dept Pickup Trucks, Backhoes, Boom Trucks, etc. KCS PERSONAL EXPENSES, for all Signal Dept Personnel CONSTRUCTION ENGINEERING, for Layout Plans & Estimate, Quote Plans, Material Lists, Shop Wiring, Field Construction Plans, & Final As-Built Plans as directed by the RR (JaKay) ACCOUNTING, Project Cost Tracking System through the life of the project, Completion Reports and assist Accounting with Final Billing preperation UTILITY COORDINATION, arrangements for new electrical service, relocation of utilities, arrange for rock & fill material, project coordination as directed by the RR (JaKay) TRACK MATERIAL FIELD INSTALLATION CONTRACTOR, to provide equipment & personnel as required to install all insulated track materials needed $ 194,480.00 $ 61,490.00 $ 30,030.00 $ 45,000.00 $ 6,000.00 $ 10,000.00 $ 10,000.00 TOTAL THIS ESTIMATE IS LIMITED TO 180 DAYS FROM DATE OF ISSUANCE, KCS SHALL AUTHORIZE IT’S USE THEREAFTER $ 372,000.00 44d 54 01/23/2024 Item 1. Wylie City Council AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Brown Subject Consider, and act upon, acceptance of the Annual Comprehensive Financial Report (ACFR) for FY 2022 -23 following a presentation by the audit firm Weaver, LLP. Recommendation Motion to approve the Item as presented. Discussion The City Charter in Article VII, Municipal Finance, Section 13: Independent Audit, requires that at the end of the fiscal yea r an independent audit be made of all accounts of the City by a certified public accountant. In compliance with the City Charter, our outside auditor, Weaver, LLP has performed an audit as of September 30, 2023. The goal of the audit is to provide reasonable assurance that the financial statements of the City are free of material misstatement. This is achieved through testing of accounting controls, internal controls, and compliance. There is also testing of significant accounting balances using a combination of vouching material transactions, sampling transactions and applying analytical procedures. Interim Fieldwork for the audit began the week of August 28 and the final fieldwork was performed November 13 through December 8. This is the fourth year for the audit to be performed by Weaver after their selection to continue as the City’s independent auditors following an RFP process completed in 2020. The 2023 audit is the sixteenth year for Weaver to perform our audit. Three RFP processes have been completed in that 16 year time period. In accordance with Financial Management Policies, audit partners have been rotated and audit managers and staff have changed frequently. This year’s audit was completed with a second year manager and staff. Staff recommends acceptance of the Annual Comprehensive Financial Report (ACFR) as presented. 55 01/23/2024 Item 2. 56 01/23/2024 Item 2. CITY OF WYLIE, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2023 AS PREPARED BY THE FINANCE DEPARTMENT 57 01/23/2024 Item 2. 58 01/23/2024 Item 2. Exhibit Page I.INTRODUCTORY SECTION Letter of Transmittal i GFOA Certificate of Achievement vi Organizational Chart vii Principal Officials viii II.FINANCIAL SECTION Independent Auditor’s Report 1 A.MANAGEMENT'S DISCUSSION AND ANALYSIS 5 B.BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position A-1 15 Statement of Activities A-2 16 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet A-3 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position A-4 20 Statement of Revenues, Expenditures, and Changes in Fund Balance A-5 21 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities A-6 22 Proprietary Fund Financial Statements Statement of Net Position A-7 24 Statement of Revenues, Expenses, and Changes in Fund Net Position A-8 26 Statement of Cash Flows A-9 27 Notes to the Basic Financial Statements 29 C.REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget (GAAP Basis) and Actual- General Fund A-10 64 Notes to Budgetary Comparison Schedule 66 Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-11 68 Schedule of Pension Contributions - TMRS A-12 70 Schedule of Changes in Total OPEB Liability and Related Ratios - TMRS A-13 72 Schedule of OPEB Contributions - TMRS A-14 73 D.COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Major Governmental Funds Budgetary Comparison Schedule - General Obligation Debt Service Fund A-15 76 TABLE OF CONTENTS CITY OF WYLIE, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 59 01/23/2024 Item 2. TABLE OF CONTENTS – CONTINUED Exhibit Page Nonmajor Governmental Funds Combining Balance Sheet B-1 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance B-2 80 Nonmajor Special Revenue Funds Budgetary Comparison Schedules: 4B Sales Tax Revenue Fund C-1 82 Park Acquisition and Improvement C-2 83 Fire Training Center C-3 84 Fire Development Fees C-4 85 Municipal Court Technology Fund C-5 86 Municipal Court Building Security Fund C-6 87 Hotel Tax Fund C-7 88 Federal Seizure Fund C-8 89 Judicial Efficiency Fund C-9 90 Truancy Court Fund C-10 91 Municipal Judicial Fund C-11 92 Nonmajor Debt Service Funds Budgetary Comparison Schedules: 4B Debt Service 1996 Fund D-1 93 4B Debt Service 2005 Fund D-2 94 III. STATISTICAL SECTION Table Net Position By Component 1 98 Expenses, Program Revenues, and Net (Expense)/Revenue 2 100 General Revenues and Total Change in Net Position 3 102 Fund Balances of Governmental Funds 4 104 Changes in Fund Balances of Governmental Funds 5 106 Tax Revenues by Source, Governmental Funds 6 108 Assessed Value and Estimated Actual Value of Taxable Property 7 109 Direct and Overlapping Property Tax Rates 8 110 Principal Property Tax Payers 9 111 Property Tax Levies and Collections 10 112 Direct and Overlapping Sales Tax Rate 11 113 Taxable Sales by Category 12 114 Ratios of Outstanding Debt by Type 13 116 Ratios of General Bonded Debt Outstanding 14 118 Direct and Overlapping Governmental Activities Debt 15 119 Legal Debt Margin Information 16 120 Pledged-Revenue Coverage 17 122 Demographic and Economic Statistics 18 124 Principal Employers 19 126 Full-Time Equivalent Employees by Function/Program 20 127 Operating Indicators by Function/Program 21 128 Capital Asset Statistics by Function/Program 22 130 60 01/23/2024 Item 2. INTRODUCTORY SECTION 61 01/23/2024 Item 2. 62 01/23/2024 Item 2. Our Mission… …to be responsible stewards of the public trust, to strive for excellence in public service and to enhance the quality of life for all. i 300 Country Club Rd ∙ Wylie, Texas 75098 ∙ 972-516-6000 ∙ WylieTexas.gov January 23, 2024 The Honorable Matthew Porter, Mayor Members of the City Council And the Citizens City of Wylie, Texas Financial policies of the City of Wylie require that the City’s Finance Department prepare a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Accordingly, the Annual Comprehensive Financial Report (ACFR) for the City of Wylie, Texas for the fiscal year ended September 30, 2023, is hereby issued. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial records have been audited by Weaver LLP, Certified Public Accountants, as required by the City Charter. This ACFR has been prepared based upon those audited records. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2023 are free of material misstatement. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended September 30, 2023, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor. Profile of the City The City of Wylie is located in the south-central portion of Collin County, approximately 23 miles northeast of downtown Dallas. Incorporated in 1887, the City adopted its Home Rule Charter on January 19, 1985 and operates under a council-manager form of government. The City Council is comprised of a Mayor and six council members. All members are elected at-large on a staggered and nonpartisan basis for three-year terms. They are responsible to enact local legislation, provide policy, and annually adopt the operating budget. They appoint the City Manager, City Attorney, Judge of the Municipal Court and members of various boards and 63 01/23/2024 Item 2. ii commissions. The City Manager, under the oversight of the City Council, is responsible for the proper administration of the daily operations of the City. The City provides a full range of municipal services including general government, public safety (police, fire, and emergency communications), streets, library, parks and recreation, planning and zoning, code enforcement, animal control, and water and sewer utilities. Sanitation services are provided by the City but are privately contracted. The Wylie Economic Development Corporation (WEDC) is included in the financial statemen ts as a discrete component unit. Its purpose is to aid, promote and further economic development within the City. The Wylie Park and Recreation Facilities Development Corporation (4B Corporation) is also combined within the financial statements of the City. Both WEDC and the 4B Corporation are primarily funded with sales tax revenues. Both corporations are discussed more fully in the notes to the financial statements. The annual budget of the City serves as the foundation for its financial plan and control. The budget is proposed by the City Manager and adopted by the City Council in accordance with policies and procedures established by the City Charter, ordinances and state law. The budget process begins early in the year with management review of a ten-year plan that incorporates current and future capital needs and allows for planning of future debt considerations and/or planning for General Fund fund balance drawdowns for one-time expenditures. A five- year plan is then presented to council so that property tax rate considerations may be analyzed with revenue and expenditure projections. The last several years, it has been a goal to maintain or lower the property tax rate so that Wylie remains at a competitive level with other area cities while still providing adequate revenue to fund the needs of our steady growth. Department budgets are reviewed by the City Manager who will develop a proposed budget for presentation to the City Council. The City Council reviews the budget in subsequent w ork sessions and a formal budget is prepared and made available to the public for review by August 5 each year or a date to be determined by the City Council. Prior to official adoption of the budget by Council, a public hearing on the proposed budget is held to allow for public input. Of the twenty-four governmental funds the City maintains, sixteen of them are annually appropriated. These include the General Fund, twelve Special Revenue Funds and the three Debt Service Funds. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Wylie operates. Local economy Local area suburbs continue to experience record growth across the region. In mid-2023, Wylie surpassed 61,000 residents and Collin County was nearing 1.2 million in population. The recent Census data projects Wylie will reach 64,000 by 2028 with a compound annual growth rate of .89% and Collin County will approach 1.3 million at 1.87%. Housing prices and sales declined across North Texas, due to increasing interest rates, the highest in over two decades. In the recent report by Texas Real Estate Research Center at Texas A&M and the North Texas Real Estate Information Systems, real estate agents in North Texas sold more than 84,000 homes in 2023, down from over 100,000 in 2022. Collin County median sales price ended at $475,000, down from last year’s $514,000, but remained the most expensive county in the region. Despite interest rates, demand remains high for housing in North Texas and residential development continues in Eastern Collin County. Lavon has 10,295 total lots with 6,920 home lots that are in varying stages of development just east of Wylie, along State Hwy 78, east of State Hwy 205. Additionally, residential growth in Wylie remained steady, ending the year at 397. The DFW retail market continued its growth in 2023, but at a much slower pace. According to a recent CBRE commercial report, DFW recorded nearly 850,000 square feet in the first half of 2023 with overall occupancy at 94.9% across the region. In Texas, sales tax revenue was up 8.4% for the year and Wylie’s sales tax receipts topped $18.4 million, up nearly 11% from the previous year. Additional economic indicators remained strong, evidenced again by growth in the local tax base. Analyzing residential and commercial growth, our total tax base increased by 15.1% over the previous year. Our taxable value this year, as provided by the Collin Central Appraisal District, Dallas Central Appraisal District, and Rockwall Central Appraisal District, was $7,513,258,419. 64 01/23/2024 Item 2. iii In 2022, DFW continued its record-breaking trend for new industrial construction and leasing and 2023 proved to be no different. According to a recent CBRE industrial report, DFW has experienced 1 3 straight years of significant industrial growth. Q4 2023 marked the 53rd consecutive quarter of positive net industrial absorption of 9.1 million square feet, and the trailing 12-month absorption total was more than 31.3 million square feet. In early 2023, the $31 billion merger between Kansas City Southern (KCS) and Canadian Pacific (CP) received a green light by the Surface Transportation Board, which created CPKC. In late 2023, construction started on a 30-acre automotive facility at the 500-acre Wylie Intermodal Terminal. With roughly 200 acres of prime real estate along Hwy 78, Wylie is an ideal location for high-efficiency, multi-commodity transload and logistics investments. Wylie’s growing population, strengthening retail trade area, and increasing daytime population will continue to support a strong local economy well into the future. Long-term financial planning In 2006, the City developed a Long-Range Financial Plan that included street and park improvements, a new city hall, library, fire station, recreation center and sidewalks. The voters of the City of Wylie authorized the City to issue $73,950,000 in General Obligation Bonds to fund this capital improvement program. The first series of General Obligation bonds were sold in late March of 2006 and the remaining bonds were sold in August of 2008. Since that time the City has refunded these bonds to obtain more favorable interest rates without extending the life of the bonds. All of these projects have come to fruition and only $5 million remains unspent, but is designated to help fund the expansion of East FM 544. This project, a four-lane divided road, including a traffic light and round-a-bout is currently under construction and expected completion date is Fall of 2025. Certificates of Obligation in the amount of $7,175,000 were sold in FY 2017 that provided funding for new capital assets in the City’s water storage and metering systems. In 2021, the City completed a long-awaited project of replacing the old metering system with Advanced Metering Infrastructure (AMI). This project addressed aging infrastructure, improves water conservation and reduces unaccounted-for water. The new meters automate meter-reading processes and provide more accurate information to the Utility Billing Department. More importantly, it has empowered our residents and business owners to manage their water use and costs with real- time data via the customer portal. The system has been a huge success and the Utility Billing Department still receives accolades for their successful transition and their high adoption rate for the online customer portal service. Partial funding of the Public Safety Building remodel and expansion was provided by Certificates of Obligation issued in 2018 for $8,500,000. This construction project was completed in FY2020 and re-opening of the building occurred in November 2020. Police, Fire Administration and Municipal Court are now serving the public in a much-anticipated new space which also includes our Emergency Operations Center. Construction of Fire Station #4 was completed and a grand opening ceremony was held in May 2022. The new facility includes office space, vehicle stalls, storm shelter and a training area. Along with the grand opening, the department also unveiled a sculpture commissioned in remembrance of the 343 firefighters who lost their lives on 9/11. The station was partially funded with $3 million previously transferred from the General Fund fund balance that was above the required minimum fund balance policy. The remaining portion of this project was funded with Certificates of Obligation issued early 2021 in the amount of $5.3 million. During FY2021, it was determined through a work session with City Council that it would be prudent to use a portion of the unassigned fund balance in the General Fund for specific capital needs. The unassigned fund balance had been above policy requirements for several years. As a result, in FY 2022 the Library received a new book sorter and the Fire Department purchased several LifePak Heart Monitors. Additionally, $6.2 million was transferred from the General Fund to a Community Investment Fund for a new Capital Improvement Program. The CIF program will fund remodeling of the Senior Center, construction of two water splashpads and construction of a dog park. Design for the Senior Center is still in the works, but the splashpads are in construction and expected to be completed in summer 2024. The dog park is completed and a grand opening was celebrated in January 2024. $600,000 was used to repair neighborhood sidewalks. $500,000 was allocated to improve storm drainage facilities and a study was completed to determine areas most in need of repair. It was also determined that Wylie Fire Rescue would use $2.4 million to purchase two quint replacements, both currently on order and being custom built. At a later work session, council assigned an additional $636,000 for the purchase of a fire utility truck which has also been ordered and expected to be delivered in May 2024. Upon receipt of these new vehicles, the oldest front-line large vehicle for WFR’s fleet will be 2019, with two 2013 quints in reserve. 65 01/23/2024 Item 2. iv In November 2021, voters approved $50.1 million of general obligation bonds which supports three propositions. These three propositions were based on input from a 14-member Citizens Bond Committee. The City Council reviewed and discussed recommendations and voted unanimously to put forth the following propositions: Proposition A - $35,100,000 Expansion and reconstruction of McMillen Dr., Park Blvd., and S. Ballard Ave./Sachse Rd. Proposition B - $10,000,000 City-wide street and alley repair/replacement Proposition C - $5,000,000 Improvements to Wylie’s Historic Downtown District Bonds will be issued as needed when projects are ready to move forward to minimize impact to the tax rate. In February 2022, the City issued $12.1 million of General Obligation Refunding & Improvement Bonds. This issue included refunding for the 2012 PPFCO and 2012 General Obligation Refunding Bonds. Both were refunded for a lower interest rate and the life of the bonds was not extended. Also, in 2022, $5.1 million was issued to begin projects voted on in the 2021 election. Much of this issue was used to begin or update designs. In June 2023, the City issued $16 million to further fund the projects of the 2021 bond program. McMillen Road design is completed and construction of a four-lane divided roadway with an 1100 ft., six-lane bridge and sidewalk is underway. Park Boulevard design is 90% complete and construction is expected to begin in Spring of 2024. Relevant financial policies Financial Management Policies are reviewed by staff and adopted annually by the City Council. There were no changes made upon adoption in Fiscal Year 2023. Financial Management Policies state that, “It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency, the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council.” Texas Government Code requires the governing body of an investing entity to review its’ investment policy not less than annually. The governing body must adopt a written instrument by rule, order, ordinance or resolution stating that it has reviewed the investment policy and that the wri tten instrument so adopted shall record any changes made to the investment policy. City Council approved by Resolution the Investment Policy with no changes this year. City Council approved, for the first time in 2020, a separate Debt Management Policy. Previously, debt management was addressed only as a section of the Financial Management Policies and did not have any specific benchmarks of measure. The new policy establishes parameters and provides guidance governing the issuance, management, continuous evaluation of and reporting on all debt obligations issued by the City. The Debt Management Policy is also reviewed by staff and adopted annually by the City Council. Major initiatives The City Council worked together to continue efforts on their previously adopted mission, vision and values that are used for strategic planning purposes. The budget for Fiscal Year 202 3-24 approved by the City Council reflected a decrease in the property tax rate of $0.023451 per $100 of assessed property valuation. This rate was three cents above the no new revenue rate. One cent was assigned to M&O to partially fund the new EMS services and two cents was assigned to I&S to pay for the newly issued voter -approved debt. FY2024 is the twelfth consecutive year the council has decreased the tax rate. 66 01/23/2024 Item 2. v Awards and Acknowledgements Recognition Various awards came to the City throughout the year. Wylie Fire Rescue maintained their ISO 1 ranking by the property/casualty insurance industry. They also maintained the coveted designation of “Recognized Best Practices Fire Department'' from the Texas Fire Chiefs Association. The City of Wylie water system maintained its Superior Public Water System status with TCEQ. The Rita and Truett Smith Public Library earned the “Library of Excellence Award” by the Texas Municipal Library Directors Association. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Wylie for its annual comprehensive financial report (ACFR) for the fiscal year ended September 30, 2022. The City has participated in the program for many years and has been awarded the Certificate numerous times. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The City also received from GFOA, the Distinguished Budget Presentation Award for our 2022-23 budget document. To earn recognition, budget documents must meet program criteria and excel as a policy document, financial plan, operations guide, and communication tool. The 202 3-24 budget has also been submitted for eligibility of the award. The preparation of this report could not be accomplished without the dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Acknowledgement is also given to representatives of Weaver, LLP, Certified Public Accountants, for their dedicated assistance in producing this report. Special acknowledgement is given to the City Manager, Mayor and the members of the City Council for their support for maintaining the highest standards of professionalism in the management of the City of Wylie finances. Respectfully submitted, 67 01/23/2024 Item 2. vi 68 01/23/2024 Item 2. vii 69 01/23/2024 Item 2. viii CITY OF WYLIE, TEXAS PRINCIPAL OFFICIALS September 30, 2023 City Council Matthew Porter, Mayor Jeff Forrester, Mayor Pro Tem David R. Duke, Councilmember Dave Strang, Councilmember Scott Williams, Councilmember Sid Hoover, Councilmember Gino Mulliqi, Councilmember City Staff Brent Parker, City Manager Renae’ Ollie, Deputy City Manager Lety Yanez, Assistant City Manager Stephanie Storm, City Secretary Melissa Brown, Finance Director Jennifer Beck, Human Resources Director Anthony Henderson, Police Chief Brandon Blythe, Fire Chief Tim Porter, City Engineer Thomas Weir, Public Works Director Carmen Powlen, Parks & Recreation Director Ofilia Barrera, Library Director James Brown, Operations Director Jasen Haskins, Community Services Director Jason Greiner, WEDC Director Other Appointed Officials Weaver, LLP, Auditors Abernathy, Roeder, Boyd & Hullett, PC, City Attorney Norton Rose Fulbright US LLP, Bond Counsel Hilltop Securities Inc., Financial Advisors 70 01/23/2024 Item 2. ix FINANCIAL SECTION 71 01/23/2024 Item 2. x 72 01/23/2024 Item 2. Weaver and Tidwell, L.L.P. 1800 Hughes Landing Blvd, Suite 400 | The Woodlands, Texas 77380 Main: 713.800.1060 CPAs AND ADVISORS | WEAVER.COM 1 Independent Auditor’s Report Members of the City Council City of Wylie, Texas Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wylie, Texas (City) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2023, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2023, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription- Based Information Technology Arrangements. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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 error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 73 01/23/2024 Item 2. Members of the City Council City of Wylie, Texas 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and pension and other postemployment benefits information as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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 limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 74 01/23/2024 Item 2. Members of the City Council City of Wylie, Texas 3 Supplementary 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 combining and individual fund financial statements and schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules 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. The 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 statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Included in the Annual Comprehensive Financial Report (ACFR) Management is responsible for the other information included in the ACFR. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 17, 2024 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 solely 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 the effectiveness of the City’s internal 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. WEAVER AND TIDWELL, L.L.P. The Woodlands, Texas January 17, 2024 75 01/23/2024 Item 2. 4 76 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 5 As management of the City of Wylie, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages one through five of this report. Financial Highlights  The unassigned portion of the General Fund fund balance at the end of the year was $28,554,755 or 56.09 percent of total General Fund expenditures. This includes the 25% of General Fund expenditures which is required to be held in General Fund fund balance per the City Council approved Financial Management Policies. That amount is $12,726,180. The remainder represents funds which may be used for one-time expenditures or unforeseen needs which the Council allocates for a specific purpose. The unassigned General Fund fund balance can be seen on page 18 of this report on the Balance Sheet-Governmental Funds. It is part of the total General Fund fund balances, September 30, 2023, shown on page 21 of this report on the Statement of Revenues, Expenditures, and Changes in Fund Balance.  The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the fiscal year ended September 30, 2023, by $335,869,316 (net position). Of this amount, $52,240,859 (unrestricted portion of net position) may be used to meet the government’s ongoing obligations to citizens and creditors. Included in the unrestricted portion of net position are monies from all the City’s various funds which are not restricted for other purposes.  Total assets were $448,909,093 which includes capital assets and current assets such as cash, prepaids, inventory, and receivables. Total liabilities were $124,051,898 which includes long-term liabilities from debt, compensated absences, pension liabilities, and OPEB liabilities and other liabilities such as accrued interest, accounts payables, unearned deposits and accrued liabilities. The statement of net position also includes deferred outflows and inflows from pension and OPEB liabilities along with deferred losses from refunding of debt.  The City’s total net position increased by $22,354,028 primarily due to the recognition of the ARPA funds used to pay for a portion of public safety salaries. Interest earnings were also significantly higher than previous years due to the economic environment. Developer contributions of over $3.2 million for streets, alleys, drainage, as well as $1.54 million for water/sewer infrastructure also increased net position. Impact fees for water/sewer added $1.4 million and $1.28 million was added from thoroughfare impact fees. Service charges for business-type activities exceeding operating costs also contributed to the net position increase as well as an increase in sales and property tax receipts. Property tax receipts increased only by the additional tax of new construction. The effects of these changes can be seen in Table 2.  The City’s governmental funds reported combined ending fund balances of $95,038,320, an increase of $28,830,208 in comparison to the previous year. The General Fund ending balance was lower than 2022 by $2.0 million, while Capital Projects Funds increased by $30.2 million. Over $12.0 million was transferred to capital projects funds from the General Fund’s excess fund balance to support specific projects approved by Council. $16.0 million of bonds was issued to begin projects designated in the 2021 bond program. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 77 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 6 Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Wylie’s finances. This is done in a manner similar to a private- sector business. Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference between the two reported as net position. 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 government’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 flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide statements distinguish between governmental activities and business-type activities. Governmental activities basically account for those activities supported by taxes and intergovernmental revenues. On the other hand, business-type activities are basically supported by user fees and charges. Most City services are reported in governmental activities while business-type activities are reported in the Enterprise Fund. The government-wide statements include not only the City but also a discrete component unit, the Wylie Economic Development Corporation (WEDC). Although legally separate, WEDC is financially accountable to the City. Fund financial statements. The City, like other state and local governments, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. 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. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing 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 governmental funds with similar information presented for governmental activities 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 statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains twenty-four individual governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and the General Obligation Debt Service Fund. All Capital Projects Funds are combined for a single, aggregated presentation. Data from the other non-major funds are also combined and reported in a single column. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City maintains one type of proprietary fund, an enterprise fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its water and sewer operations. 78 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 7 Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. Notes to the financial statements. The notes provide additional information that is essential to gain a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found after the notes to the financial statements. Government-Wide Financial Analysis At the end of fiscal year 2023, the City’s net position (assets and deferred outflows of resources exceeding liabilities and deferred inflows of resources) totaled $335,869,316. This analysis focuses on the net position (Table 1) and changes in net position (Table 2). Net Position. The largest portion of the City’s net position, $233,482,146, or 69.5%, reflects its investment in capital assets (land, buildings, improvements other than buildings, machinery and equipment, construction in progress), less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $50,146,311, or 14.9% represents resources that are subject to external restrictions on how they may be used. The unrestricted portion of net position which is $52,240,859 (15.6%) may be used to meet the government’s ongoing obligations to citizens and creditors. 2023 2022 2023 2022 2023 2022 Current and other assets 104,235,309$ 78,143,603$ 52,022,140$ 46,207,233$ 156,257,449$ 124,350,836$ Capital assets 222,830,573 227,107,436 69,821,071 67,439,119 292,651,644 294,546,555 Total Assets 327,065,882 305,251,039 121,843,211 113,646,352 448,909,093 418,897,391 Deferred outflows of resources 10,843,433 5,231,159 910,708 396,049 11,754,141 5,627,208 Long term liabilities 100,955,474 79,917,759 12,825,986 12,983,984 113,781,460 92,901,743 Other liabilities 8,080,983 10,967,982 2,189,455 1,300,702 10,270,438 12,268,684 Total liabilities 109,036,457 90,885,741 15,015,441 14,284,686 124,051,898 105,170,427 Deferred inflows of resources 680,156 5,381,017 61,864 457,867 742,020 5,838,884 Net Position: Net investment in capital assets 172,859,764 165,022,233 60,622,382 57,282,050 233,482,146 222,304,283 Restricted for debt service 476,007 766,308 - - 476,007 766,308 Restricted for capital projects 27,968,946 19,085,639 13,602,609 12,100,734 41,571,555 31,186,373 Restricted for economic development 6,848,645 6,599,921 - - 6,848,645 6,599,921 Restricted for tourism 856,620 753,188 - - 856,620 753,188 Restricted for other 393,484 575,653 - - 393,484 575,653 Unrestricted 18,789,236 21,412,498 33,451,623 29,917,064 52,240,859 51,329,562 Total Net Position 228,192,702$ 214,215,440$ 107,676,614$ 99,299,848$ 335,869,316$ 313,515,288$ Business-type Activities Activities Total Table 1 Condensed Statement of Net Position Governmental 79 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 8 Changes in Net Position Governmental Activities. Governmental activities increased the City’s net position by $13,977,262 from the prior year. This was primarily due to developer contributions of streets, alleys and drainage totaling $3,212,108 and thoroughfare impact fees of $1.28 million. There also was a slight increase in ad valorem revenue from new residential construction and an increase in sales taxes due to favorable economic conditions. $6.1 million of ARPA funds was recognized and interest earnings were significantly higher than the previous year. Business-type Activities. Net position from business-type activities increased by $8,376,766 from the prior year. Utility revenues from the growth of our customer base are partially responsible, as well as developer contributions for water and sewer infrastructure of approximately $1.54 million. 2023 2022 2023 2022 2023 2022 Revenues: Program revenues: Charges for services 9,507,600$ 9,137,190$ 29,592,808$ 27,371,622$ 39,100,408$ 36,508,812$ Operating grants and contributions 7,069,298 663,356 - - 7,069,298 663,356 Capital grants and contributions 5,136,507 7,619,607 2,965,191 3,189,643 8,101,698 10,809,250 General revenues: Ad valorem taxes 37,982,291 36,723,108 - - 37,982,291 36,723,108 Sales taxes 14,193,327 12,951,476 - - 14,193,327 12,951,476 Other taxes and fees 3,080,512 2,929,590 - - 3,080,512 2,929,590 Interest 2,829,070 307,155 1,389,590 195,126 4,218,660 502,281 Gain (loss) disposal of capital assets 132,421 2,706,165 - - 132,421 2,706,165 Miscellaneous 485,740 610,600 142,254 63,359 627,994 673,959 Total revenues 80,416,766 73,648,247 34,089,843 30,819,750 114,506,609 104,467,997 Expenses: General government 14,412,031 13,682,957 - - 14,412,031 13,682,957 Public safety 29,893,415 25,164,617 - - 29,893,415 25,164,617 Urban development 1,083,325 1,020,885 - - 1,083,325 1,020,885 Streets 11,434,006 10,393,464 - - 11,434,006 10,393,464 Community service 9,999,916 9,217,814 - - 9,999,916 9,217,814 Interest on long-term debt 2,179,116 2,118,360 - - 2,179,116 2,118,360 Water and sewer operations - - 23,150,772 20,876,930 23,150,772 20,876,930 Total expenses 69,001,809 61,598,097 23,150,772 20,876,930 92,152,581 82,475,027 Increase in net position before transfers 11,414,957 12,050,150 10,939,071 9,942,820 22,354,028 21,992,970 Transfers 2,562,305 2,488,646 (2,562,305) (2,488,646) - - Increase in net position 13,977,262 14,538,796 8,376,766 7,454,174 22,354,028 21,992,970 Net position - October 1 214,215,440 199,676,644 99,299,848 91,845,674 313,515,288 291,522,318 Net position - September 30 228,192,702$ 214,215,440$ 107,676,614$ 99,299,848$ 335,869,316$ 313,515,288$ Table 2 Changes in Net Position Governmental Business-type Activities Activities Total Government-Wide Financial Analysis Governmental funds. The focus of the City’s governmental 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 requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. 80 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 9 As of the end of the current fiscal year, the City’s governmental funds reported combined fund balances of $95,038,320. The General Fund is the main operating fund of the City. At the end of the current fiscal year, unassigned fund balance was $28,554,755. The overall fund balance of the General Fund decreased by $2,045,654 during the current fiscal year. The reason for the decrease is multi-faceted. Overall, General Fund revenues were higher due to an increased property tax base (new construction), increased sales tax revenue and an expansion of the customer base for service fees, while expenditures were also less than anticipated. The General Obligation Debt Service Fund reported a decrease of $310,839 in fund balance. This was due in part to an application of the fund balance intentionally used to reduce the I&S portion of the tax rate. The Capital Projects Fund increased $30,179,620 due primarily to bonds that were issued to begin projects designated in the 2021 Bond Program, as well as $12.1 million transferred from the General Fund’s excess fund balance. Other governmental funds’ combined fund balances increased $1,007,081 primarily due to increased revenue from sales tax in the 4B Sales Tax Revenue Fund and an increase in interest earnings. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government- wide statements, but in more detail. Unrestricted net position of the Utility Fund at the end of the year was $33,451,623. This represents an increase of $3,534,559. This is largely attributable to the increases in water and sewer operating revenues. The year included a planned rate increase, which is based on a five-year water and sewer rate study. There also was an increase in the system’s customer base. This year’s operating income was $6,761,253. General Fund Budgetary Highlights. In FY2023, the General Fund expenditure budget was increased by $4,182,130 over the 2022 budget, with approximately $1 million funding new personnel requests for Public Safety. Approved positions for the police department included two officers, one crossing guard supervisor, two crossing guards, one part-time mental health coordinator upgraded to a full-time position and one patrol position upgraded to sergeant. Police also received funding for five vehicles. The approved positions for the fire department included six firefighters for station #4 and one upgraded position from fire prevention clerk to fire records analyst. The fire department also received $315,000 to fund a third ambulance for half the year with our third-party provider. $572,000 of non-personnel requests were funded for the other general fund departments. Highlights included two vehicles, one sand/salt spreader, one paint striper, and an angle broom for the Streets department; key card access control for the animal shelter; security cameras and software for IT; a scissor lift for Facilities; zoning ordinance hosting for City Secretary and budget software for finance. Each year, the City performs a mid-year review of the budget. If the City Manager determines that funds are available, certain amendments are proposed to the City Council for their review and approval. Expenditures were amended throughout the year with the majority occurring during mid-year reviews. These amendments increased General Fund appropriations by $942,564 or 1.74 percent. In the General Fund, the actual revenue received in comparison to the final budget was over by $2,754,929. This positive variance is most noticeable in interest income, sales tax, franchise fees, intergovernmental revenue and service fees. General Fund expenditures had a final budget-to-actual positive variance of $4,225,374 prior to other financing sources/uses. This amount is attributable to intentional savings made by all departments, incomplete or postponed projects and personnel savings due to turnover and unfilled vacancies. Capital Assets and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of September 30, 2023, amounts to $ 292,651,644(net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements other than buildings, right-to-use machinery and equipment, machinery and equipment, and construction in progress. The total decrease in the City’s investment in capital assets for the current year was $1,894,911. 81 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 10 2023 2022 2023 2022 2023 2022 Land 44,010$ 43,091$ 101$ 101$ 44,111$ 43,192$ Other non-depreciable assets 1,231 1,231 - - 1,231 1,231 Buildings 51,133 53,286 2,478 2,610 53,611 55,896 Improvements 113,574 118,499 61,995 62,634 175,569 181,133 Right-to-use machinery and equipment 19 79 - - 19 79 Machinery and equipment 6,344 6,242 1,000 1,111 7,344 7,353 Construction in progress 6,520 4,679 4,247 983 10,767 5,662 222,831$ 227,107$ 69,821$ 67,439$ 292,652$ 294,546$ Asset Table 3 Capital Assets at Year-end Net of Accumulated Depreciation (000's) Governmental Activities Business-Type Activities Total Additional information on the City’s capital assets can be found in the notes to the financial statements on pages 43-44. Debt Administration. At the end of the current fiscal year, the City of Wylie had total bonded debt outstanding of $86.2 million, all of which is backed by the full faith and credit of the City. 2023 2022 2023 2022 2023 2022 General Obligation 59,620$ 50,250$ 1,880$ 2,295$ 61,500$ 52,545$ Combination Tax & Revenue 11,980 12,520 6,065 6,395 18,045 18,915 Unamortized premium (discount) 6,283 6,168 402 473 6,685 6,641 Total 77,883$ 68,938$ 8,347$ 9,163$ 86,230$ 78,101$ Type of Debt Table 4 Outstanding Bonded Debt at Year End (000's) Governmental Activities Business-Type Activities Total Total bonded debt of the City increased primarily due to the net effect of the issuance of $16.0 million of bonds and principal payment of debt and amortization of premiums. The City continues to maintain favorable ratings from bond rating agencies. The current General Obligation, Combination Tax and Revenue Certificates of Obligation, and Revenue Bonds ratings are as follows. Moody’s Standard Investors Service & Poor’s General obligation bonds Aa1 AA Certificates of obligation Aa1 AA Revenue bonds A1 A+ Additional information on the City’s long-term debt can be found in the notes to the financial statements on pages 46-50. 82 01/23/2024 Item 2. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2023 11 Economic Factors and Next Year’s Budgets and Rates During FY2023, 397 building permits were issued and 400 building permits are projected for FY2024. Steady growth is the predominant characteristic of the City with $212,496,979 of new assessed valuation added to the tax roll from new construction for FY2024. This value brought an additional $1,145,108 to the budget, allowing the City to maintain service levels while decreasing the average taxpayer’s burden. As steady growth continues, the upward trend in property values remains evident. The City’s Freeze-adjusted taxable property values showed an increase of 14% from FY2023 to FY2024. Our growth pattern is also projected to continue into FY2024 but the City recognizes that as we get closer to build-out, redevelopment will fuel the City’s growth of tax base. As is the City’s pattern, fiscal conservatism continues to play a major role in the development of the FY2024 operating budget. The 2024 adopted tax rate included a one cent increase for the M&O portion of the rate to partially fund the new EMS services which were previously contracted to a third-party provider. In FY2024, General Fund revenues and expenditures are budgeted to decrease by 3.5% over FY2023 because there are no federal funds anticipated to be received. Expenditures prior to transfers out are budgeted to increase 6.3% over FY2023 due to the new EMS program costs. This will provide a 37% estimated fund balance at FY2024 year-end, which exceeds the goal of 25%. FY2024 Utility Fund revenues are budgeted to increase by 16% from FY2023 revenues and expenses were projected to increase by 7.3% from FY2023. The City works with an independent firm to annually review water and sewer rates. The rates needed to fund current and future operating and infrastructure needs were identified. Also included in the study were estimated future water and sewer charges from North Texas Municipal Water District as well as future capital needs. Therefore, in the Utility Fund, water and sewer rates were adjusted for the FY2024 budget year in accordance with this study. During FY2006, voters authorized the City to issue $73,950,000 in bonds. $35,325,000 was issued in 2006 with the remaining $38,625,000 issued in 2008. The issuance of these bonds was expected to cause an increase in the I & S tax rate to cover the principal and interest payments on the additional debt. However, the total tax rate went unchanged from FY2009 through FY2012. FY2013 began the trend of a tax rate reduction and 2024 was the twelfth consecutive year the Council has decreased the tax rate. The current reduction was $.023451 bringing the twelve-year rate reduction total to $.360018. The current rate of $.538882 per $100 of assessed property valuation allows Wylie to be at a competitive level with other area cities while still providing adequate revenue to fund the needs of our growth. In November of 2021, voters authorized the City to issue $50,100,000 in bonds for expansion and reconstruction of three major roads: McMillen Drive, Park Boulevard and South Ballard Avenue/Sachse Road. The propositions also included city-wide street and alley repair/replacement as well as improvements to Wylie’s Historic Downtown District. Bonds will only be issued when projects are ready to proceed to minimize the impact on the I&S tax rate. $5.1 million was issued in FY2022 and the additional debt was absorbed in the M&O rate instead of increasing the I&S. In FY2023, $16 million was issued and two cents was added to the I&S portion of the tax rate. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, 300 Country Club Road, Wylie, Texas, 75098. 83 01/23/2024 Item 2. 12 84 01/23/2024 Item 2. 13 BASIC FINANCIAL STATEMENTS 85 01/23/2024 Item 2. 14 86 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-1 STATEMENT OF NET POSITION SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 15 Primary Government Governmental Business-type Component ASSETS Activities Activities Total Unit Cash and cash equivalents 98,574,658$ 39,729,970$ 138,304,628$ 12,625,716$ Receivables (net of allowance for uncollectibles) 5,454,239 5,539,333 10,993,572 956,162 Inventories 184,507 304,223 488,730 16,006,005 Prepaid items - - - 2,000 Restricted assets: Cash and cash equivalents 21,905 5,995,706 6,017,611 Receivables - 452,908 452,908 - Capital assets (net of accumulated depreciation): Land 44,009,768 101,045 44,110,813 - Other non-depreciable assets 1,231,294 - 1,231,294 - Construction in progress 6,519,899 4,247,062 10,766,961 - Buildings 51,132,834 2,477,533 53,610,367 - Improvement other than buildings 113,573,617 61,995,651 175,569,268 - Right-to-use machinery and equipment 18,757 - 18,757 - Machinery and equipment 6,344,404 999,780 7,344,184 - Total assets 327,065,882 121,843,211 448,909,093 29,589,883 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 1,514,819 62,220 1,577,039 - Deferred outflows - pensions 9,189,228 835,811 10,025,039 112,627 Deferred outflows - OPEB 139,386 12,677 152,063 1,709 Total deferred outflows of resources 10,843,433 910,708 11,754,141 114,336 LIABILITIES Accounts payable and other current liabilities 3,341,099 1,742,602 5,083,701 186,815 Accrued interest payable 388,348 38,215 426,563 28,814 Due to other governments 99,509 - 99,509 - Liabilities payable from restricted assets - 408,638 408,638 - Unearned revenue 4,252,027 - 4,252,027 - Non current liabilities: Due within one year 9,618,918 1,410,564 11,029,482 647,900 Due in more than one year 91,336,556 11,415,422 102,751,978 15,121,314 Total liabilities 109,036,457 15,015,441 124,051,898 15,984,843 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 383,785 34,907 418,692 4,704 Deferred inflows - OPEB 296,371 26,957 323,328 3,632 Total deferred inflows of resources 680,156 61,864 742,020 8,336 NET POSITION Net investment in capital assets 172,859,764 60,622,382 233,482,146 - Restricted for: Debt service 476,007 - 476,007 - Capital projects 27,968,946 13,602,609 41,571,555 - Economic development 6,848,645 - 6,848,645 - Tourism 856,620 - 856,620 - Other 393,484 - 393,484 - Unrestricted 18,789,236 33,451,623 52,240,859 13,711,040 Total net position 228,192,702$ 107,676,614$ 335,869,316$ 13,711,040$ 87 01/23/2024 Item 2. CITY OF WYLIE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 16 Program Revenues Operating Capital Charges for Grants and Grants and Function/Programs Expenses Services Contributions Contributions Primary Government Governmental activities: General government 14,412,031$ 3,593,830$ 6,099,649$ -$ Public safety 29,893,415 3,420,146 298,867 Urban development 1,083,325 1,743,500 - - Streets 11,434,006 - - 1,340,351 Community service 9,999,916 750,124 670,782 3,796,156 Interest on long-term debt 2,179,116 - - - Total governmental activities 69,001,809 9,507,600 7,069,298 5,136,507 Business-type activities: Utility 23,150,772 29,592,808 - 2,965,191 Total business-type activities 23,150,772 29,592,808 - 2,965,191 Total primary government 92,152,581$ 39,100,408$ 7,069,298$ 8,101,698$ Component unit: Wylie Economic Development Corp 3,077,893$ -$ -$ -$ Total component units 3,077,893$ -$ -$ -$ General revenues: Ad valorem taxes Sales taxes Franchise taxes Unrestricted investment earnings Miscellaneous income Gain on disposal of assets Transfers Total general revenues and transfers Change in net position Net position - Beginning of year Net position - Ending 88 01/23/2024 Item 2. EXHIBIT A-2 17 Governmental Business-type Component Activities Activities Total Unit (4,718,552)$ -$ (4,718,552)$ -$ (26,174,402) - (26,174,402) - 660,175 - 660,175 - (10,093,655) - (10,093,655) - (4,782,854) - (4,782,854) - (2,179,116) - (2,179,116) - (47,288,404) - (47,288,404) - - 9,407,227 9,407,227 - - 9,407,227 9,407,227 - (47,288,404)$ 9,407,227$ (37,881,177)$ -$ -$ -$ -$ (3,077,893)$ -$ -$ -$ (3,077,893)$ 37,982,291 - 37,982,291 - 14,193,327 - 14,193,327 4,611,796 3,080,512 - 3,080,512 - 2,829,070 1,389,590 4,218,660 381,356 485,740 142,254 627,994 117,554 132,421 - 132,421 - 2,562,305 (2,562,305) - - 61,265,666 (1,030,461) 60,235,205 5,110,706 13,977,262 8,376,766 22,354,028 2,032,813 214,215,440 99,299,848 313,515,288 11,678,227 228,192,702$ 107,676,614$ 335,869,316$ 13,711,040$ Net (Expense) Revenue and Changes in Net Position 89 01/23/2024 Item 2. CITY OF WYLIE, TEXAS BALANCE SHEET-GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 18 General Fund General Obligation Debt Service ASSETS Cash and cash equivalents 29,385,118$ 541,408$ Receivables (net of allowance for uncollectibles): Ad valorem taxes 279,726 97,097 Franchise taxes 1,054,563 - Sales taxes 1,689,050 - Accounts 502,702 - Other 845,316 - Restricted cash 21,905 - Inventories, at cost 184,507 - Total assets 33,962,887$ 638,505$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES: Accounts payable 1,560,650$ -$ Other payables and accruals 1,264,690 1,496 Due to other governments 99,509 - Unearned revenue - - Total liabilities 2,924,849 1,496 DEFERRED INFLOWS OF RESOURCES: Unavailable resources 1,399,432 104,922 Total deferred inflows of resources 1,399,432 104,922 FUND BALANCES: Nonspendable Inventory 184,507 - Restricted Debt service - 532,087 Capital projects - - Economic development - - Municipal court - - Tourism - - Law enforcement 300,361 - Committed Park acquisition and improvement - - Fire training - - Fire development - - Public arts 563,145 - Assigned Law enforcement 15,313 - Streets 20,525 - Unassigned 28,554,755 - Total fund balances 29,638,606 532,087 Total liabilities, deferred inflows of resources, and fund balances 33,962,887$ 638,505$ 90 01/23/2024 Item 2. EXHIBIT A-3 19 Capital Projects Fund Non major Governmental Funds Total Governmental Funds 59,011,681$ 9,636,451$ 98,574,658$ - - 376,823 - - 1,054,563 - 836,162 2,525,212 - - 502,702 - 149,623 994,939 - - 21,905 - - 184,507 59,011,681$ 10,622,236$ 104,235,309$ 317,485$ 48,766$ 1,926,901$ 33,948 114,064 1,414,198 - - 99,509 4,192,303 59,724 4,252,027 4,543,736 222,554 7,692,635 - - 1,504,354 - - 1,504,354 - - 184,507 - 227,346 759,433 54,467,945 - 54,467,945 - 6,848,645 6,848,645 - 92,294 92,294 - 856,620 856,620 - 829 301,190 - 775,194 775,194 - 299,412 299,412 - 1,299,342 1,299,342 - - 563,145 - - 15,313 - - 20,525 - - 28,554,755 54,467,945 10,399,682 95,038,320 59,011,681$ 10,622,236$ 104,235,309$ 91 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-4 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 20 Total fund balance-governmental funds balance sheet 95,038,320$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet. 222,830,573 Deferred losses on refunding are reported as deferred outflows of resources in the government-wide statement of net position.1,514,819 Revenues earned but not available within sixty days of the fiscal year-end are not recognized as revenue in the fund financial statements. 1,504,354 Deferred outflows of resources, $9,189,228, related to the City's net pension liability result in an increase in net position in the government-wide financial statements while deferred inflows ($383,785) result in a decrease in net position.8,805,443 Deferred outflows of resources, $139,386, related to the City's net OPEB liability result in an increase in net position in the government-wide financial statements while deferred inflows ($296,371) result in a decrease in net position.(156,985) Interest payable on long-term debt does not require current financial resources, therefore interest payable is not reported as a liability in the governmental funds balance sheet. (388,348) Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported in the fund financial statements. (100,955,474) NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 228,192,702$ 92 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-5 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 21 General Fund General Obligation Debt Service Capital Projects Fund Non major Governmental Funds Total Governmental Funds REVENUES Ad valorem taxes 28,825,989$ 9,050,412$ -$ -$ 37,876,401$ Sales taxes 9,286,481 - - 4,906,846 14,193,327 Franchise fees 3,015,867 - - - 3,015,867 Licenses and permits 1,409,965 - 1,283,351 46,135 2,739,451 Intergovernmental 8,717,961 - 72,629 - 8,790,590 Service fees 4,490,107 - - 1,067,671 5,557,778 Court fees 319,233 - - 21,092 340,325 Development fees - - - 875,928 875,928 Interest income 1,390,278 65,502 1,064,672 292,989 2,813,441 Miscellaneous income 345,548 - - 144,799 490,347 Total revenues 57,801,429 9,115,914 2,420,652 7,355,460 76,693,455 EXPENDITURES Current: General government 11,967,582 - - - 11,967,582 Public safety 28,746,177 - - 41,341 28,787,518 Urban development 1,028,608 - - - 1,028,608 Streets 4,261,461 - - - 4,261,461 Community service 4,900,892 - - 4,241,338 9,142,230 Capital outlay - - 2,822,998 - 2,822,998 Debt service: Principal - 6,820,000 - 360,000 7,180,000 Interest and fiscal charges - 2,606,753 - 28,050 2,634,803 Bond issuance costs - 129,135 - 129,135 Total expenditures 50,904,720 9,426,753 2,952,133 4,670,729 67,954,335 Excess (Deficiency) of revenues under expenditures 6,896,709 (310,839) (531,481) 2,684,731 8,739,120 OTHER FINANCING SOURCES (USES) Transfers in 2,767,955 - 13,574,649 577,555 16,920,159 Transfers out (12,099,649) - - (2,258,205) (14,357,854) Proceeds from sale of property 180,277 - - - 180,277 Issuance of long-term debt - - 16,010,000 - 16,010,000 Premium on bonds issued - - 1,126,452 - 1,126,452 Insurance recovery 209,054 - - 3,000 212,054 Total other financing sources (uses) (8,942,363) - 30,711,101 (1,677,650) 20,091,088 Net change in fund balances (2,045,654) (310,839) 30,179,620 1,007,081 28,830,208 Fund balances October 1, 2022 31,684,260 842,926 24,288,325 9,392,601 66,208,112 Fund balances September 30, 2023 29,638,606$ 532,087$ 54,467,945$ 10,399,682$ 95,038,320$ 93 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-6 RECONCILIATON OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 22 Net change in fund balances- total governmental funds. 28,830,208$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.3,822,884 Depreciation and amortization expense on capital assets is reported in the statement of activities but does not require the use of current financial resources. Therefore, depreciation and amortization expense is not reported as expenditures in the governmental funds.(11,263,996) Disposal of capital assets decreases net position in the government-wide financial statements and gets netted with the proceeds of the sale that is recorded at the fund level statements. (47,859) The repayment of the principal of long term debt consumes the current financial resources of governmental funds, but has no effect on net position. The amortization of bond premiums and deferred gain/loss on refunding of long term debt is reported in statement of activities but does not require the use of current financial resources. Therefore, the effect of the amortization of these various items are not reported in the statement of revenues, expenses, and changes in fund balance. This amount represents the net effect of the following items: o Bonds issued ($16,010,000) o Premium on bonds issued ($1,126,452) o Prinicipal payments of $7,180,000 on bonds, $78,971 on financed purchases and $60,239 on leases o Amortization of premium on bonds of $1,010,653 and deferred loss on refunding of ($375,330)(9,181,919) GASB 68 requires certain expenditures to be de-expended to account for the changes in pension liabilities and deferred inflows/outflows. There was an increase in pension liabilities of ($11,999,826), a decrease in deferred inflows of $4,946,310, and an increase in deferred outflows of $6,014,757.(1,038,759) GASB 75 requires certain expenditures to be de-expended to account for the changes in OPEB liabilities and deferred inflows/outflows. There was a decrease in OPEB liabilities of $222,689, an increase in deferred inflows of ($245,449), and a decrease in deferred outflows of ($27,153).(49,913) Current year changes in accrued interest payable does not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds. (18,234) Current year changes in the long-term liability for compensated absences do not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds. (453,989) Governmental funds do not recognize assets contributed by developers. However, in the statement of activities, the fair market value of those assets is recognized as revenue, then allocated over the useful life of the assets and reported as depreciation expense.3,212,108 Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds. 166,731 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 13,977,262$ 94 01/23/2024 Item 2. 23 95 01/23/2024 Item 2. CITY OF WYLIE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 24 Enterprise Fund Utility Fund ASSETS Current assets Cash and cash equivalents 39,729,970$ Accounts receivables (net of allowances for uncollectibles) 5,333,147 Other receivables 206,186 Inventories, at cost 304,223 Restricted assets Cash and cash equivalents 5,995,706 Accounts receivable 452,908 Total current assets 52,022,140 Non-current assets Capital assets: Land 101,045 Buildings 3,956,304 Waterworks system 57,856,748 Sewer system 45,496,774 Machinery and equipment 3,134,780 Construction in progress 4,247,062 Accumulated depreciation (44,971,642) Total capital assets (net of accumulated depreciation)69,821,071 Total non-current assets 69,821,071 Total assets 121,843,211 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 62,220 Pensions 835,811 OPEB 12,677 Total deferred outflows of resources 910,708 96 01/23/2024 Item 2. EXHIBIT A-7 25 Enterprise Fund Utility Fund LIABILITIES Current liabilities: Accounts payable 1,159,908$ Retainage payable 219,858 Other payables and accruals 362,836 Compensated absences payable - current 315,219 General obligation bonds payable - current 435,000 Combination bonds - tax and revenue - current 340,000 Financed purchases payable - current 320,345 Accrued interest payable 38,215 Payable from restricted assets Customer deposits 408,638 Total current liabilities 3,600,019 Non-current liabilities: General obligation bonds payable 1,445,000 Combination bonds - tax and revenue 6,126,556 Financed purchases payable 2,068,643 Net pension liability 1,731,502 OPEB 43,721 Total noncurrent liabilities 11,415,422 Total liabilities 15,015,441 DEFERRED INFLOWS OF RESOURCES Pensions 34,907 OPEB 26,957 Total deferred inflows of resources 61,864 NET POSITION Net investment in capital assets 60,622,382 Restricted for construction 13,602,609 Unrestricted 33,451,623 Total net position 107,676,614$ 97 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 26 Enterprise Fund Utility Fund OPERATING REVENUES Water 14,722,841$ Sewer 14,501,817 Penalties 197,990 Water taps 95,818 Sewer taps 33,692 Reconnect fees 40,650 Total operating revenues 29,592,808 OPERATING EXPENSES Water purchases 6,338,042 Sewer treatment 7,749,458 Utility administration 399,110 Water department 2,272,603 Sewer department 990,227 Utility billing 1,236,505 Engineering 249,755 Combined services 754,015 Depreciation 2,841,840 Total operating expenses 22,831,555 Operating income 6,761,253 NON-OPERATING REVENUES (EXPENSES) Investment revenue 1,389,590 Miscellaneous income 142,254 Interest expense (319,217) Total non-operating revenues (expenses) 1,212,627 Net income before transfers and contributions 7,973,880 TRANSFERS AND CONTRIBUTIONS Capital contributions 1,539,560 Transfers in 1,000 Impact fees 1,425,631 Transfers out (2,563,305) Total transfers and contributions 402,886 Change in net position 8,376,766 Net position, October 1 99,299,848 Net position, September 30 107,676,614$ 98 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-9 STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2023 The accompanying notes to the basic financial statements are an integral part of this statement. 27 Enterprise Fund Utility Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 29,068,258$ Cash payments to employees for services (2,447,690) Cash payments to other suppliers for goods and services (16,473,574) Net cash provided by operating activities 10,146,994 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers from other funds 1,000 Transfers to other funds (2,563,305) Net cash used in non-capital financing activities (2,562,305) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal and interest paid (1,438,292) Acquisition or construction of capital assets (3,684,232) Water and sewer impact fee revenue 1,425,631 Net cash used in capital and related financing activities (3,696,893) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 1,389,590 Net cash provided by investing activities 1,389,590 Net increase in cash and cash equivalents 5,277,386 Cash and cash equivalents at beginning of year 40,448,290 Cash and cash equivalents at end of year 45,725,676$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and cash equivalents 39,729,970$ Restricted cash and cash equivalents 5,995,706 Total cash and cash equivalents 45,725,676$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income 6,761,253$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 2,841,840 Miscellaneous income 142,254 Pension and OPEB expense 872,713 Effects of changes in assets and liabilities: Decrease (increase) in receivables (746,647) Decrease (increase) in inventories (3,379) Decrease (increase) in restricted receivables 212,505 Decrease (increase) in deferred outflows for pensions and OPEB (530,049) Increase(decrease) in deferred inflows for pensions and OPEB (396,003) Increase (decrease) in accounts payable 556,244 Increase (decrease) in other payables and other accruals 256,910 Increase (decrease) in compensated absences 99,510 Increase (decrease) in customer deposits 79,843 Total adjustments 3,385,741 Net cash provided by operating activities 10,146,994$ NONCASH ITEMS Developer contributions of capital assets 1,539,560$ 99 01/23/2024 Item 2. 28 100 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 29 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wylie (the City) was incorporated in 1887. The City operates under a Council-Manager form of government as a duly incorporated home rule city as authorized under the constitution of the State of Texas, and provides the following services: public safety (police and fire), streets, water, sewer and sanitation, public improvements, culture, planning and zoning, parks and recreation, and general administrative services. The City reports in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The accounting and reporting framework and the more significant accounting principles and practices are discussed in subsequent sections of this Note. The remainder of the notes are organized to provide concise explanations, including required disclosures of budgetary matters, assets, liabilities, fund equity, revenues, expenditures/expenses, and other information considered important to gaining a clear picture of the City’s financial activities for the fiscal year ended September 30, 2023. A. Financial Statement Presentation The basic financial statements are prepared in conformity with GASB Statement No. 34, which requires the government-wide financial statements to be prepared using the accrual basis of accounting and the economic resources measurement focus. Government-wide financial statements do not provide information by fund, but distinguish between the City’s governmental activities, business-type activities and activities of its discretely presented component unit on the statement of net position and statement of activities. Significantly, the City’s statement of net position includes both noncurrent assets and noncurrent liabilities of the City. In addition, the government-wide statement of activities reflects depreciation expenses on the City’s capital assets, including infrastructure. In addition to the government-wide financial statements, the City has prepared fund financial statements, which use the modified accrual basis of accounting and the current financial resources measurement focus for the governmental funds. The accrual basis of accounting is utilized by proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City also presents Management’s Discussion and Analysis, which includes an analytical overview of the City’s financial activities. In addition, a budgetary comparison statement is presented that compares the original adopted and final amended General Fund budget with actual results. B. Financial Reporting Entity The City's basic financial statements include the accounts of all City operations. In evaluating how to define the government for financial reporting purposes, management has considered all entities for which the City is considered to be financially accountable. The City is a home rule municipality governed by an elected Mayor and six-member City Council, who appoint a City Manager. As required by GAAP, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The discretely presented component unit is reported in a separate column in the combined financial statements to emphasize that it is legally separate from the City. 101 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 30 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED B. Financial Reporting Entity – Continued Blended Component Unit The Wylie Park and Recreation Facilities Development Corporation (“the 4B Corporation”) is presented in the basic financial statements as a blended component unit of the City. The 4B Corporation’s board is substantively the same as the City Council. All members of the 4B Corporation other than the board are City employees. The City Manager is the Chief Executive Operating Officer of the 4B Corporation. The purpose of the 4B Corporation, which is financed with a voter-approved half-cent sales tax, is to promote economic development within the City through the construction of park and recreation facilities. The 4B Corporation has a September 30 year-end. The 4B Corporation’s financial budget, treasury, and personnel functions are totally integrated with the City’s (thus the City has operational responsibility for the 4B Corporation). All of the 4B Corporation’s financial information is presented in the basic and combining financial statements along with the notes to these financial statements. The 4B Corporation does not issue separate financial statements. Discretely Presented Component Unit The Wylie Economic Development Corporation (WEDC) is a discretely presented component unit in the combined financial statements. The governing body of the WEDC is appointed by the City Council and the WEDC’s operating budget is subject to approval of the City Council. The WEDC’s board is not substantially the same as the City Council. The purpose of the WEDC, which is financed with a voter-approved half-cent City sales tax, is to aid, promote and further the economic development within the City. The WEDC is presented as a governmental fund type and has a September 30 year-end. Under a contract with the WEDC, the financial, budget, treasury and personnel functions of the WEDC are integrated with the City. All of WEDC’s financial information is presented in the combined and combining financial statements along with the notes to these financial statements. There are no separately issued financial statements of the WEDC. C. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely on fees and charges for support. Additionally, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. The government-wide statement of activities demonstrates the degree to which the direct expenses of a functional category (Public Safety, Urban Development, etc.) or program are offset by program revenues. Direct expenses are those that are clearly identifiable with specific function or program. Program revenues include: a) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or program, b) grants and contributions that are restricted to meeting the operational requirements of a particular function or program, or c) grants and contributions that are restricted to meeting the capital requirements of a particular function or program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are also reported as general revenues rather than as program revenues. 102 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 31 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED C. Government-Wide and Fund Financial Statements – Continued Separate fund financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The major governmental funds are the general fund, the general obligation debt service fund, and the capital projects fund. GASB Statement No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category for the governmental and enterprise combined) for the determination of major funds. The non-major funds are combined in a column in the fund financial statements. The non-major funds are detailed in the combining section of the financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation. Proprietary funds distinguish operating revenues and expenses from non-operating 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. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund 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 which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The government-wide and proprietary fund financial statements follow the accounting set forth by the Governmental Accounting Standards Board. Governmental fund level financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. 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 government 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 incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The governmental fund financial statements follow the accounting set forth by the Governmental Accounting Standards Board. Property taxes, franchise fees, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Sales taxes collected and held by the State and merchants at year-end on behalf of the City are also recognized as revenue. All other revenue items are considered to be measurable and available only when cash is received by the government. 103 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 32 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued Fund Accounting The following major funds are used by the City: 1. Governmental Funds: Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is on determination of changes in financial position, rather than on net income determination. The following is a description of the major Governmental Funds of the City: a. The General Fund is the operating fund of the City. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. b. The General Obligation Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest and related costs on general obligation long-term debt paid from taxes levied by the City. c. The Capital Projects Fund is used to account for the acquisition or construction of capital facilities, except those being financed by proprietary funds. In addition, the City reports the following non-major governmental funds. a. 4B Sales Tax Revenue Fund accounts for sales tax monies specifically designated for promoting economic development within the City by developing, implementing, providing and financing park and recreation projects. b. Parks Acquisition and Improvement Fund accounts for the development and improvement of City parks. c. Fire Training Center Fund accounts for First Responder fees specifically designated for the construction of the Fire Training Center. d. Fire Development Fees Fund accounts for contributions specifically designated for use of the fire department. e. Municipal Court Technology Fund accounts for court fines specifically designated for improvements in court technology. f. Municipal Court Building Security Fund accounts for court fines specifically designated for additions/improvements to court security. g. Hotel Tax Fund accounts for occupancy taxes charged to hotels. 104 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 33 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued h. Federal Seizure Fund accounts the City’s share of forfeiture proceeds at the federal level and is restricted for law enforcement additions/improvements only. i. Judicial Efficiency Fund accounts court fines specifically restricted to improving the efficiency of the administration of justice. j. Truancy Court Fund accounts for court fines designated for the efficiency of Juvenile Court truancy cases. k. Municipal Judicial Fund accounts for fines designated for efficiency of the municipal court. l. 4B Debt Service Funds account for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 1996 and 2005. Governmental funds with legally adopted annual budgets include the General Fund, the General Obligation Debt Service Fund, two (2) 4B Debt Service Funds, and all special revenue funds. 2. Proprietary Funds: Proprietary Funds are accounted for using an economic resources measurement focus. The accounting objectives are a determination of net income, financial position, and changes in cash flows. All assets and liabilities associated with a proprietary fund's activities are included on its statement of net position. The proprietary funds are financed and operated in a manner similar to private business enterprise. The costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges. Periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The following is a description of the major proprietary fund of the City: The Utility Fund is used to account for the operations of the water distribution system, wastewater pumping stations and collection systems. The City contracts with North Texas Municipal Water District for wastewater treatment. E. Cash and Cash Equivalents The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligation, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or (B) secured by obligations that are described by (1), pledged with third party selected or approved by the City, and placed through a primary government securities dealer. 105 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 34 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED E. Cash and Cash Equivalents - Continued Investments maturing within one year of date of purchase are stated at cost or amortized cost, all other investments are stated at fair value which is based on quoted market prices. F. Inventories and Prepaid Items Inventory is valued at cost (first-in, first-out). The cost of governmental fund type inventory is recorded as an expenditure when consumed rather than when purchased. Reported inventories are equally offset by non-spendable fund balance, which indicates that they do not constitute "available, spendable resources" even though they are a component of fund balance. The City is not required to maintain a minimum level of inventory. Inventories in the Proprietary Funds consist of supplies and are recorded at the lower of cost or market. Prepaid balances represent payments made by the City for which benefits extend beyond fiscal year-end, and non-spendable fund balance is reported to signify that a portion of fund balance is not available for other subsequent expenditures. G. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by non- spendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 60 days comprise the trade accounts receivable allowance for uncollectibles. H. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants or contractual agreements. Customer deposits received for water and wastewater service are, by law, considered to be restricted assets. These balances are included in the Utility Fund. Certain deposits recorded in the general fund are restricted for investigative and other purposes. I. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $15,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. 106 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 35 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED I. Capital Assets – Continued Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Capital assets of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 20 - 30 Improvements other than buildings 20 - 50 Machinery and equipment 5 - 20 J. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. A percentage of accrued sick leave is payable on a longevity basis at the time of termination. All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. K. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Losses on refunding are deferred and amortized over the life of the new issuance or the existing debt using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. L. Pensions and Other Postemployment Benefits (OPEB) For purposes of measuring the net pension liability, pension related deferred outflows and inflows of resources and pension expense, City specific information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and additions to/deductions from the City’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 107 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 36 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED L. Pensions and Other Postemployment Benefits (OPEB)– Continued Information regarding the City’s Total Pension Liability and Total OPEB Liability is obtained from TMRS through reports prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. M. Leases The City is a lessee for noncancellable leases of property and equipment. The City recognizes a lease liability, reported with long-term debt, and a right‐to‐use lease asset (lease asset), reported with other capital assets, in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the shorter of the lease term or its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments, variable payments fixed in substance or that depend on an index or a rate, purchase option price that the City is reasonably certain to exercise, lease incentives receivable from the lessor, and any other payments that are reasonably certain of being required based on an assessment of all relevant factors. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. N. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting as deferred outflows: Deferred Loss on Refunding – these deferred outflows result from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Pensions/ OPEB – these deferred outflows result from pension/OPEB contributions after the measurement date (deferred and recognized in the following fiscal year) and/or differences between expected and actual economic experience (amortized over the average remaining service lives of the members). 108 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 37 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED N. Deferred Outflows/Inflows of Resources - continued Deferred inflows of resources represent the acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow or resources (revenue) until that time. The City reports certain deferred inflows related to pensions and OPEB on the government-wide statement of position and unavailable tax revenues at the fund level. Deferred inflows related to differences between projected and actual investment earnings are amortized over a closed 5-year period. O. Fund Equity The City has adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Government Fund Type Definitions. The objective of the statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing government fund type definitions. The statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications, under GASB 54 are Nonspendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of constraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. In accordance with GASB 54, the City classifies governmental fund balances as follows: Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be maintained intact. (i.e., inventories, prepaid items) Restricted fund balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation (i.e., debt service, capital projects, economic development, municipal court security, municipal court technology, tourism). Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority (City Council). Commitments may be changed or lifted only by the government taking the same formal action (resolution) that imposed the constraint originally. (i.e., park acquisition and improvement, recreation, fire training, fire development, public arts). Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. The City Council has authorized the City Manager as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy. Assigned fund balance includes balances for streets, renovations, project for public safety buildings, and law enforcement. Restricted funds for law enforcement must be spent before assigned monies for law enforcement may be spent. 109 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 38 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED O. Fund Equity – Continued Unassigned fund balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. The general fund is the only fund that reports a positive unassigned fund balance. In governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned balance in that fund. Order of Expenditure of Funds – When multiple categories of fund balance are available for expenditure, the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds. Minimum General Fund Unassigned Fund Balance – It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency, the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council. Net Position – In the statement of net position, the amount of net position restricted for other consists of the following as of September 30, 2023: Municipal court 92,294$ Law enforcement 301,190 Total 393,484$ P. Adoption of New Accounting Standards GASB Statement No. 96, Subscription-Based Information Technology Arrangements (GASB 96), provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users. This statement 1) defines a SBITA; 2) establishes that a SBITA results in a right-to-use subscription asset – an intangible asset - and a corresponding subscription liability; 3) provides the capitalization criteria for outlays other than subscription payments; and 4) requires note disclosures regarding a SBITA. The requirements of this statement are effective for reporting periods beginning after June 15, 2022, with earlier application encouraged. GASB 96 was implemented in the City’s 2023 financial statements with no impact to amounts previously reported. Q. Subsequent Events The City has evaluated all events or transactions that occurred after September 30, 2023 up through January 17, 2024, the date the financial statements were issued. NOTE 2. CASH AND INVESTMENTS At year end, the carrying amount of the City’s deposits was $123,866,700 and the bank balance was $126,410,179. All of the bank balances were covered by Federal deposit insurance and collateralized by the pledging financial institution’s City’s safekeeping account at the Federal Reserve or held by a third party custodian. The custodian serves contractually as the City’s agent. 110 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 39 NOTE 2. CASH AND INVESTMENTS – CONTINUED Cash and investments as of September 30, 2023 consist of and are classified in the accompanying financial statements as follows: Statement of net position: Primary Government Cash and cash equivalents 138,304,628$ Restricted cash and cash equivalents 6,017,611 Total Primary Government 144,322,239 Component Unit Cash and cash equivalents 12,625,716 Total cash and investments 156,947,955$ Cash on hand 58,296$ Deposits with financial institution 123,866,700 Investments 33,022,959 Total cash and investments 156,947,955$ The table below identifies the investment types that are authorized for the City by the Public Funds Investment Act. (Government Code Chapter 2256) The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio In One Issuer U.S. Treasury obligations 5 years 100% None U.S. Agency obligations 5 years 100% None Certificates of deposit 18 months 25% None Direct repurchase agreements 2 years 100% None Investment pools 90 days None None Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In accordance with its investment policy, the City manages its exposure to declines in fair value by limiting the weighted average maturity of its portfolio to less than three years. 111 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 40 NOTE 2. CASH AND INVESTMENTS – CONTINUED Disclosures relating to interest rate risk – Continued As of September 30, 2023, the City had the following investments: Weighted Average Amount Maturity TexPool 16,228,216$ 28 Days TexStar 16,794,743 29 Days 33,022,959$ Investment Type Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type. Minimum Rating as Legal of Year Amount Rating End TexPool 16,228,216$ N/A AAA-m TexStar 16,794,743 N/A AAA-m 33,022,959$ Investment Type Concentration of credit risk The City’s investment policy does not allow for an investment in any one issuer (other than investment pools) that is in excess of five percent of the fair value of the City’s total investments. Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Public Funds Investment Act does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Public Funds Investment Act requires that a financial institution secure deposit made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least the bank balance less the FDIC insurance at all times. 112 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 41 NOTE 2. CASH AND INVESTMENTS – CONTINUED Custodial credit risk – Continued The City requires all deposits to be covered by Federal Depository Insurance Corporation (FDIC) insurance and/or collateralized by qualified securities pledged by the City’s depository in the City’s name and held by the depository’s agent. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application provides a framework for measuring fair value which establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities .  Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.  Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable for an asset or liability, either directly or indirectly.  Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The City has no recurring fair value measurements. As of September 30, 2023 the City deposits with financial institutions in excess of federal depository insurance limits were fully collateralized. The City is a voluntary participant in TexPool. The State Comptroller of Public Accounts exercises responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. TexPool operates in a manner consistent with the SEC’s Rule2A7 of the Investment Company Act of 1940. TexPool uses amortized cost rather than the fair value to report net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the same as the value of TexPool shares. There are no significant limitations or restrictions on participant withdrawals. TexStar is administered by First Southwest Asset Management, Inc. and JPMorgan Chase. Together these organizations bring to the TexStar program the powerful partnership of two leaders in financial services with a proven and noted track record in local government investment pool management. TexStar is a local government investment pool created under the Interlocal Cooperation Act specifically tailored to meet Texas state and local government investment objectives of preservation of principal, daily liquidity, and competitive yield. TexStar uses amortized costs rather than fair value to report net position to compute share prices. Accordingly, the fair value of the position in TexStar is the same as the value of TexStar shares. There are no significant limitations or restrictions on participant withdrawals. 113 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 42 NOTE 3. PROPERTY TAXES The City’s property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real and certain personal property located within the City. Appraised values are established by the Collin County Central Appraisal District at 100% of estimated market value and certified by the Appraisal Review Board. The assessed value upon which the tax year 2022 levy was based was $6,199,028,298. Taxes are due on October 1 and are delinquent after the following January 31. The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services, including the payment of principal and interest on general obligation long-term debt. The combined tax rate to finance general governmental services including the payment of principal and interest on long-term debt for the year ended September 30, 2023 was $0.56233 per $100 of assessed valuation. In Texas, countywide central appraisal districts are required to assess all property within the appraisal district on the basis of 100% of its appraised value and are prohibited from applying any assessment ratios. The value of property within the appraisal district must be reviewed every five years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the appraisal district through various appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates on City property. However, if the no new revenue tax rate, excluding tax rates for bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by more than 3.5%, it triggers an automatic election to determine whether to limit the tax rate to no more than 3.5% above the tax rate of the previous year. NOTE 4. RECEIVABLES Year-end receivables balances for the City’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Business-Type Governmental Funds General General Obligation Debt Service Non Major Governmental Funds Total Utility Receivables Property taxes 363,618$ 128,225$ -$ 491,843$ -$ Franchise taxes 1,054,563 - - 1,054,563 - Sales taxes 1,689,050 - 836,162 2,525,212 - Accounts 805,909 - - 805,909 7,279,152 Other 891,007 - 149,623 1,040,630 206,186 Gross receivables 4,804,147 128,225 985,785 5,918,157 7,485,338 Less: allowance (432,790) (31,128) - (463,918) (1,946,005) Net total receivables 4,371,357$ 97,097$ 985,785$ 5,454,239$ 5,539,333$ Governmental Activities The Enterprise Fund accounts receivable balance includes unbilled charges for services rendered of $2,974,571 at September 30, 2023. Receivables in the discretely presented component unit consist of $836,162 of sales taxes receivable due from the State and $120,000 in loans receivable from private businesses. If certain contractual obligations are met by some of these private businesses at a future date, a portion and/or all of the amounts owed from the private businesses may be forgiven. 114 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 43 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2023 was as follows: Primary Government Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets not being depreciated/amortized: Land 43,090,692$ 919,076$ -$ -$ 44,009,768$ Other non-depreciable assets 1,231,294 - - - 1,231,294 Construction in progress 4,678,918 2,052,327 - (211,346) 6,519,899 Total capital assets, not being depreciated/amortized 49,000,904 2,971,403 - (211,346) 51,760,961 Capital assets being depreciated/amortized: Buildings 73,908,154 284,226 - 94,093 74,286,473 Improvements other than buildings 232,493,243 2,811,162 - - 235,304,405 Right-to-use asset - machinery and equipment 138,809 - - - 138,809 Machinery and equipment 19,548,295 968,201 (586,967) 117,253 20,046,782 Total capital assets being depreciated/amortized 326,088,501 4,063,589 (586,967) 211,346 329,776,469 Less accumulated depreciation/amortization for: Buildings (20,621,922) (2,531,717) - - (23,153,639) Improvements other than buildings (113,994,509) (7,736,279) - - (121,730,788) Right-to-use asset - machinery and equipment (59,632) (60,420) - - (120,052) Machinery and equipment (13,305,906) (935,580) 539,108 - (13,702,378) Total accumulated depreciation/amortization (147,981,969) (11,263,996) 539,108 - (158,706,857) Total capital assets being depreciated/amortized, net 178,106,532 (7,200,407) (47,859) 211,346 171,069,612 Governmental activities capital assets, net 227,107,436$ (4,229,004)$ (47,859)$ -$ 222,830,573$ Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets not being depreciated: Land 101,045$ -$ -$ -$ 101,045$ Construction in progress 982,791 3,264,271 - - 4,247,062 Total capital assets, not being depreciated 1,083,836 3,264,271 - - 4,348,107 Capital assets being depreciated: Buildings 3,956,304 - - - 3,956,304 Water system 57,206,440 650,308 - - 57,856,748 Sewer system 44,307,911 1,188,863 - - 45,496,774 Machinery and equipment 3,173,792 120,349 (159,361) - 3,134,780 Total capital assets being depreciated 108,644,446 1,959,520 (159,361) - 110,444,606 Less accumulated depreciation for: Buildings (1,346,061) (132,710) - - (1,478,771) Water system (20,025,551) (1,403,487) - - (21,429,038) Sewer system (18,854,097) (1,074,736) - - (19,928,833) Machinery and equipment (2,063,454) (230,907) 159,361 - (2,135,000) Total accumulated depreciation (42,289,163) (2,841,840) 159,361 - (44,971,642) Total capital assets being depreciated, net 66,355,283 (882,320) - - 65,472,964 Business-type activities capital assets, net 67,439,119$ 2,381,951$ -$ -$ 69,821,071$ 115 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 44 NOTE 5. CAPITAL ASSETS – CONTINUED Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 2,455,969$ Public safety 1,153,786 Streets 6,136,685 Community service 1,517,556 Total depreciation/amortization expense - governmental activities 11,263,996$ Business-type activities: Water and Sewer 2,841,840$ Construction Commitments The City has active construction projects as of September 30, 2023. The projects include construction, park improvements, and drainage improvements. Commitments for construction in progress are composed of the following: Project Funding Source Project Budget Appropriation Spent-to-date Remaining Commitment McMillen Road (A), (C), (D) 26,890,000$ 2,403,389$ 24,486,611$ Stone Road Phase 3 (A), (C), (D) 14,800,000 927,757 13,872,243 Park Boulevard (A), (C), (D) 12,000,000 623,061 11,376,939 Eubanks Road (E), (G) 2,011,000 530,753 1,480,247 Dog Park & Splash Pads (B) 2,000,000 673,383 1,326,617 Ballard Elevated Storage Tanks (G), (H) 5,260,000 2,686,705 2,573,295 Pump Generators (F) 1,342,000 877,544 464,456 Total 64,303,000$ 8,722,592$ 55,580,408$ (A) General Obligation Bonds (D) Future Bonds Issuances (G) Impact Fees (B) GFFB Community Investment (E) NTMWD Interlocal Agreement(H) Certificates of Obligation (C) County Proceeds (F) Utility Fund Revenue 116 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 45 NOTE 6. TRANSFERS AND INTERFUND RECEIVABLES AND PAYABLES Transfers are used to provide funds for debt service, contributions for capital construction, cost allocations and other operational costs as determined by the City’s annual budget. Transfers between funds during the year were as follows: Transfer In Transfer Out Amount Purpose General fund Utility fund 2,563,305$ To cover indirect costs associated with utility fund operations General fund Nonmajor governmental funds 204,650 To cover costs associated with City events Capital projects fund General fund 12,099,649 To cover costs associated with capital road construction projects Capital projects fund Nonmajor governmental funds 1,475,000 For capital projects associated with community investment and infrastructure Utility fund Nonmajor governmental funds 1,000 To cover costs associated with City events Nonmajor governmental funds Nonmajor governmental funds 577,555 To 4B debt service fund to cover annual debt service payments and park improvements Total 16,921,159$ NOTE 7. UNEARNED REVENUE/DEFERRED INFLOWS OF RESOURCES Governmental funds report deferred inflows of resources in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned (unearned revenue). At the end of the current fiscal year, the various components of unearned revenue and deferred inflows of resources reported in the governmental funds were as follows: General Non major General Obligation Capital Governmental Fund Debt Service Projects Fund Funds Total Deferred inflows of resources: Property taxes 304,100$ 104,922$ -$ -$ 409,022$ Court fines 173,802 - - - 173,802 Franchise fees 921,530 - - - 921,530 Total 1,399,432$ 104,922$ -$ -$ 1,504,354$ Unearned revenue: Advance construction payment -$ -$ 4,192,303$ -$ 4,192,303$ Recreation center memberships - - - 59,724 59,724 Total -$ -$ 4,192,303$ 59,724$ 4,252,027$ 117 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 46 NOTE 8. LONG-TERM DEBT General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases The City of Wylie issues general obligation bonds and combination tax and revenue bonds and enters into financed purchase and lease agreements to provide funds for the acquisition and construction of major capital facilities and equipment. Financed purchase agreements have been entered into for equipment purchased for governmental activities and for a water meter project for business-type activities. These issues are direct obligations and pledge the full faith and credit of the City. Final Interest Business- General Obligation Bonds Maturity Rates Governmental Type $7,400,000 Series 2013 Refunding 2029 1.50 - 3.00% 1,620,000$ -$ $21,240,000 Series 2015 Refunding 2027 2.00 - 5.00% 9,880,000 - $34,250,000 Series 2016 Refunding 2028 2.00 - 5.00% 16,675,000 1,880,000 $4,855,000 Series 2021 Refunding 2028 3.00 - 4.00% 3,555,000 - $12,005,000 Series 2022 2042 3.00 - 4.00% - Refunding & Improvement 11,880,000 $16,010,000 Series 2023 2043 4.00 - 5.00% General Obligation Bonds 16,010,000 - Total General Obligation Bonds 59,620,000$ 1,880,000$ 118 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 47 NOTE 8. LONG-TERM DEBT – CONTINUED General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases- Continued Final Interest Business- Combination Tax and Revenue Bonds Maturity Rates Governmental Type $7,175,000 Series 2017 Improvements 2025 2.00 - 4.00% -$ 6,065,000$ $8,500,000 Series 2018 Improvements 2038 1.75 - 3.375% 7,000,000 - $5,310,000 Series 2021 Improvements 2031 1.50 - 4.00% 4,980,000 - Total Combination Tax and Revenue Bonds 11,980,000$ 6,065,000$ During 2023, the City issued $16,010,000 of General Obligation Bonds, Series 2023. Proceeds from the sale of the bonds will be used for various capital projects throughout the city. Financed Purchases The City reports one financed purchase outstanding for governmental activities used to acquire public safety equipment. The City entered into a financed purchase agreement on November 12, 2019 for $384,243 at an interest rate of 3.85% to acquire equipment with principal and interest payments of $85,170 due on September 15 starting in 2020 and ending in 2024. The carrying value of the assets acquired through financed purchases by governmental activities at September 30, 2023 was $331,983. Business type activities reports a $3,333,667 financed purchase agreement entered into on June 30, 2020 for the City’s meter replacement project. Principal and interest payments of $370,597 are due on March 1 starting in 2021 until 2030. The carrying amount of the assets acquired through financed purchases by business-type activities at September 30, 2023 was $3,167,039. Final Interest Business- Financed Purchases Maturity Rates Governmental Type Watchguard Law Enforcement Equipment 2024 3.85% 82,012$ -$ Meter Project Replacement 2030 2.10% - 2,388,988 Total Financed Purchases 82,012$ 2,388,988$ Leases The City has entered into lease agreements as a lessee. The leases allow the right to use copiers and postage machines over the term of the leases. The City is required to make monthly payments at its incremental borrowing rate or the interest rate stated or implied within the leases. The lease rate, term and ending balance are as follows: 119 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 48 NOTE 8. LONG-TERM DEBT – CONTINUED General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases- Continued Final Interest Liability at Ending Governmental Activities - Leases Maturity Rate(s) Commencement Balance Copiers 2024 1.58% 127,675$ 14,420$ Postage machine 2025 2.04% 11,134 4,870 138,809$ 19,290$ Changes in Long-term Liabilities: A summary of long-term debt transactions, including current portion, for the year ended September 30, 2023, is as follows: Amount Beginning Ending Due within Balance Additions Reductions Balance One year Governmental activities: General obligation bonds 50,250,000$ 16,010,000$ (6,640,000)$ 59,620,000$ 7,470,000$ Combination tax and revenue bonds 12,520,000 - (540,000) 11,980,000 560,000 Unamortized bond premium 6,167,526 1,126,452 (1,010,653) 6,283,325 - Total bonds payable 68,937,526 17,136,452 (8,190,653) 77,883,325 8,030,000 Financed purchases payable 160,983 - (78,971) 82,012 82,012 Leases 79,529 - (60,239) 19,290 17,648 Compensated absences 2,999,365 2,456,672 (2,002,683) 3,453,354 1,489,258 OPEB liability 703,382 - (222,689) 480,693 - Net pension liability 7,036,974 11,999,826 - 19,036,800 - Total governmental activities 79,917,759$ 31,592,950$ (10,555,235)$ 100,955,474$ 9,618,918$ Amount Beginning Ending Due within Balance Additions Reductions Balance One year Business-type activities: General obligation bonds 2,295,000$ -$ (415,000)$ 1,880,000$ 435,000$ Combination tax and revenue bonds 6,395,000 - (330,000) 6,065,000 340,000 Unamortized bond premium 473,032 - (71,476) 401,556 - Total bonds payable 9,163,032 - (816,476) 8,346,556 775,000 Financed purchases payable 2,702,733 - (313,745) 2,388,988 320,345 Compensated absences 215,709 241,485 (141,975) 315,219 315,219 OPEB liability 65,471 - (21,750) 43,721 - Net pension liability 837,039 894,463 1,731,502 - Total business-type activities 12,983,984$ 1,135,948$ (1,293,946)$ 12,825,986$ 1,410,564$ 120 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 49 NOTE 8. LONG-TERM DEBT – CONTINUED Changes in Long-term Liabilities - continued The annual aggregate maturities for each long-term liability type are as follows: General Obligation Bonds Fiscal Year Ending September 30, Principal Interest Total Principal Interest Total 2024 7,470,000$ 2,534,575$ 10,004,575$ 435,000$ 83,125$ 518,125$ 2025 7,865,000 2,145,675 10,010,675 460,000 60,750 520,750 2026 7,860,000 1,781,675 9,641,675 480,000 37,250 517,250 2027 8,245,000 1,402,225 9,647,225 505,000 12,625 517,625 2028 8,875,000 1,009,150 9,884,150 - - 2029 - 2033 6,580,000 3,189,975 9,769,975 - - - 2034 - 2038 5,900,000 1,942,350 7,842,350 - - - 2039 - 2043 6,825,000 648,025 7,473,025 - - - Total 59,620,000$ 14,653,650$ 74,273,650$ 1,880,000$ 193,750$ 2,073,750$ Governmental Activities Business Activities Combination Tax and Revenue Bonds Fiscal Year Ending September 30, Principal Interest Total Principal Interest Total 2024 560,000$ 350,988$ 910,988$ 340,000$ 204,919$ 544,919$ 2025 585,000 328,087 913,087 350,000 191,119 541,119 2026 605,000 304,287 909,287 360,000 176,919 536,919 2027 630,000 279,587 909,587 370,000 162,319 532,319 2028 650,000 253,987 903,987 385,000 147,219 532,219 2029 - 2033 3,655,000 925,340 4,580,340 2,175,000 520,433 2,695,433 2034 - 2038 4,305,000 388,019 4,693,019 2,085,000 143,099 2,228,099 2039 - 2043 990,000 26,163 1,016,163 - - - Total 11,980,000$ 2,856,458$ 14,836,458$ 6,065,000$ 1,546,027$ 7,611,027$ Governmental Activities Business Activities Financed Purchases Fiscal Year Ending September 30, Principal Interest Total Principal Interest Total 2024 82,012$ 3,157$ 85,169$ 320,345$ 50,253$ 370,598$ 2025 - - - 327,083 43,514 370,597 2026 - - - 333,963 36,634 370,597 2027 - - - 340,988 29,609 370,597 2028 - 2030 - - - 1,066,609 45,184 1,111,793 Total 82,012$ 3,157$ 85,169$ 2,388,988$ 205,194$ 2,594,182$ Governmental Activities Business Activities Leases Fiscal Year Ending September 30, Principal Interest Total Principal Interest Total 2024 17,648$ 104$ 17,752$ -$ -$ -$ 2025 1,642 10 1,652 - - - 2026 - - - - - - Total 19,290$ 114$ 19,404$ -$ -$ -$ Governmental Activities Business Activities Compensated Absences Compensated absences represent the estimated liability for employees’ accrued sick and vacation leave for which employees are entitled to be paid upon termination. The retirement of this liability is typically paid from the General Fund and Enterprise Funds based on the assignment of an employee at termination. 121 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 50 NOTE 8. LONG-TERM DEBT – CONTINUED Net Pension Liability/ OPEB liability The general fund has typically been used to liquidate governmental activities’ pension and OPEB liabilities. Discretely Presented Component Unit – Wylie Economic Development Corporation (WEDC ) The following is a summary of WEDC long-term transactions for the year ended September 30, 2023: Balance Balance Due Within Description 9/30/2022 Increases Decreases 9/30/2023 One Year Loans payable 16,058,167$ -$ (575,973)$ 15,482,194$ 600,096$ Compensated Absences 34,566 38,561 (25,323) 47,804 47,804 OPEB liability 11,882 - (5,990) 5,892 - Net pension liability 124,687 108,637 - 233,324 - Total long-term liabilities 16,229,302$ 147,198$ (607,286)$ 15,769,214$ 647,900$ WEDC Loans Payable as of September 30, 2023 are as follows: Description Balance $300,000, payable to bank, made September 2016, payable in monthly installments of $3,109, including interest at 4.50%, through final payment in December 2026. 112,612$ $8,100,000, payable to bank, made October 2021, payable in monthly installments of $46,940 through October 2041, including interest at 3.48% 7,551,645 $8,100,000, payable to bank, made August 2022, payable in monthly installments of $52,617 through July 2042, including interest at 4.80% 7,817,937 15,482,194$ Annual debt service requirements to maturity for WEDC debt is: Year Principal Interest Total 2024 600,096$ 631,902$ 1,231,998$ 2025 625,254 606,744 1,231,998 2026 651,493 580,504 1,231,997 2027 650,457 553,559 1,204,016 2028 668,017 538,654 1,206,671 2029 - 2033 3,784,485 2,201,360 5,985,845 2034 - 2038 4,651,047 1,287,869 5,938,916 2039 - 2043 3,851,345 305,833 4,157,178 Total 15,482,194$ 6,706,425$ 22,188,619$ 122 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 51 NOTE 9. PENSION PLAN A. Plan Description The City participates as one of 919 plans in the defined benefit cash-balance plan administered by the Texas Municipal Retirement System (TMRS). TMRS is statewide public retirement plan 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 employees of Texas participating cities. The TMRS Act places the general administration and management of TMRS with a six-member Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly available annual comprehensive financial report (Annual Report) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. B. 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 Member’s benefit is calculated based on the sum of the Member’s contributions, with interest, and the city-financed monetary credits with interest. The retiring Member may select one of seven monthly-benefit payments options. Members may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount at least 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 (100%, 150%, or 200%) 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 which 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 city 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 employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service. A member is vested after 5 years. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. 123 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 52 NOTE 9. PENSION PLAN – CONTINUED At the December 31, 2022 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 133 Inactive employees entitled to but not yet receiving benefits 239 Active employees 373 745 C. Contributions Member contribution rates in TMRS are either 5%, 6%, or 7% of Member’s total compensation, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The City’s contribution rate is based on the liabilities created from the benefit plan options selected by the City and any changes in benefits or actual experience over time. Employees for the City were required to contribute 7.0% of their annual compensation during the fiscal year. The contribution rates for the City were 15.27% and 14.96% in calendar years 2022 and 2023, respectively. The City’s contributions to TMRS for the year ended September 30, 2023 (including $52,556 of contributions by WEDC) were $4,410,196, and were equal to the required contributions. D. Net Pension Liability The City’s Net Pension Liability (NPL) was measured as of December 31, 2022 and the Total Pension Liability (TPL) used to calculate the NPL was determined by an actuarial valuation as of that date. Actuarial Assumptions: The Total Pension Liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 2.75% per year, adjusted down for population declines, if any Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Actuarial cost method Entry Age Normal Amortization Method Level percentage of payroll; closed Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees are used with a 4- year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied for males and females, respectively, to reflect the impairment for 124 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 53 NOTE 9. PENSION PLAN – CONTINUED D. Net Pension Liability - Continued younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. The assumptions were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013, Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal year 2023 are summarized in the following table: Long-Term Expected Real Target Rate of Return Asset Class Allocation (Arithmetic) Global Equity 35.0% 7.7% Core Fixed Income 6.0% 4.9% Non-Core Fixed Income 20.0% 8.7% Other Public/Private Mkts 12.0% 8.1% Real Estate 12.0% 5.8% Hedge Funds 5.0% 6.9% Private Equity 10.0% 11.8% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that Member and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. 125 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 54 NOTE 9. PENSION PLAN - CONTINUED D. Net Pension Liability – Continued Changes in the Net Pension Liability Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (a) (b) (a) - (b) Balance at 12/31/21 100,185,335$ 92,186,635$ 7,998,700$ Changes for the year: Service Cost 4,679,641 - 4,679,641 Interest 6,808,244 - 6,808,244 Change of benefit terms - - Difference between expected and - actual experience 628,699 - 628,699 Changes of assumptions - - - Contributions - employer - 4,019,003 (4,019,003) Contributions - employee - 1,829,005 (1,829,005) Net investment income - (6,745,606) 6,745,606 Benefit payments, including refunds of employee contributions (3,324,552) (3,324,552) - Administrative expense - (58,231) 58,231 Other changes - 69,487 (69,487) Net Changes 8,792,032 (4,210,894) 13,002,926 Balance at 12/31/22 108,977,367$ 87,975,741$ 21,001,626$ Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.75%) or 1 percentage-point higher (7.75%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (5.75%) Rate (6.75%) Rate (7.75%) City 38,811,962$ 20,768,302$ 6,233,916$ WEDC 436,038 233,324 70,036 Total 39,248,000$ 21,001,626$ 6,303,952$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in the Schedule of Changes in Fiduciary Net Position, by Participating City. That report may be obtained at www.tmrs.com. 126 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 55 NOTE 9. PENSION PLAN – CONTINUED E. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2023, the City recognized pension expense of $966,980 (including $18,440 recognized by WEDC). At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual economic experience 699,631$ 418,692$ 7,860$ 4,704$ 707,491$ 423,396$ Changes in actuarial assumptions 104,245 - 1,171 - 105,416 - Difference between projected and actual investment earnings 6,030,822 - 67,756 - 6,098,578 - Contributions subsequent to the measurement date 3,190,341 - 35,840 - 3,226,181 - Total 10,025,039$ 418,692$ 112,627$ 4,704$ 10,137,666$ 423,396$ City WEDC Total The $3,226,181 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will reduce the net pension liability during the year ending September 30, 2024. The other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ended Sept. 30: City WEDC Total 2024 650,743$ 7,311$ 658,054$ 2025 1,502,604 16,882 1,519,486 2026 1,581,437 17,767 1,599,204 2027 2,652,748 29,803 2,682,551 2028 28,474 320 28,794 Total 6,416,006$ 72,083$ 6,488,089$ Allocations The City’s net pension liability, pension expense, and deferred outflows of resources related to TMRS have been allocated between governmental activities, business-type activities, and the discretely presented component unit using a contribution-based method. NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN A. Plan Description Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which participating member cities may elect, by ordinance, to provide group-term life insurance coverage for their active members, including or not including retirees. Employers may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The City has elected to participate in the SDBF for its active members including retirees. As the SDBF covers both active 127 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 56 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded single-employer OPEB plan (i.e., no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting. B. Benefits Provided The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death). The death benefit for retirees is considered an other postemployment benefit (“OPEB”) and is a fixed amount of $7,500. At the December 31, 2022 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 77 Inactive employees entitled to but not yet receiving benefits 40 Active employees 373 490 C. Contributions The member city contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during employees’ entire careers. Contributions are made monthly based on the covered payroll of employee members of the participating member city. The contractually required contribution rate is determined annually for each city. The rate is based on the mortality and service experience of all employees covered by the SDBF and the demographics specific to the workforce of the city. There is a one-year delay between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when the rate goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The retiree portion of contribution rates to the SDBF for the City was 0.04% in calendar years 2022 and 2023. The City’s contributions to the SDBF for the year ended September 30, 2023 (including $56 of contributions by WEDC) were $5,101 and were equal to the required contributions. D. Total OPEB Liability The City’s Total OPEB Liability (TOL) was measured as of December 31, 2022 and was determined by an actuarial valuation as of that date. 128 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 57 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED E. Actuarial Assumptions The Total OPEB Liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Salary increases 3.50% to 11.50% including inflation Discount rate 4.05% Retiree's share of benefit-related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements of GASB Statement No. 68. Mortality rates -service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Salary increases were based on a service-related table. Mortality rates for post-retirement were based on the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis by scale UMP. Actuarial assumptions used in the December 31, 2022 valuation were developed primarily from the actuarial experience study for the period from December 31, 2014 to December 31, 2018. The discount rate used to measure the Total OPEB Liability was 4.05% and was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2022. This was a 2.21% increase from the 1.84% discount rate used in the December 31, 2021 valuation. F. Changes in Total OPEB Liability Total OPEB Liability Balance at 12/31/2021 780,735$ Changes for the year: Service Cost 67,934 Interest on Total OPEB Liability 14,894 Difference between expected and actual experience (5,930) Changes of assumptions or other inputs (316,876) Benefit payments (10,451) Net changes (250,429) Balance at 12/31/22 530,306$ Total OPEB Liability as a Percentage of Covered Payroll 2.03% 129 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 58 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 4.05%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (3.05%) or 1 percentage-point higher (5.05%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (3.05%) Rate (4.05%) Rate (5.05%) City 642,562$ 524,414$ 434,120$ WEDC 7,219 5,892 4,878 Total OPEB Liability 649,781$ 530,306$ 438,998$ H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2023, the City recognized OPEB expense of $51,450. At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience -$ 36,067$ -$ 405$ -$ 36,472$ Changes in assumptions and other inputs 143,723 287,261 1,615 3,227 145,338 290,488 Contributions subsequent to the measurement date 8,340 - 94 - 8,434 - Total 152,063$ 323,328$ 1,709$ 3,632$ 153,772$ 326,960$ City WEDC Total The $8,434 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will reduce the Total OPEB liability during the year ending September 30, 2024. The other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended Sept. 30: City WEDC Total 2024 (19,774)$ (222)$ (19,996)$ 2025 (19,774) (222) (19,996) 2026 (23,468) (264) (23,732) 2027 (19,081) (214) (19,295) 2028 (26,245) (295) (26,540) Thereafter (71,263) (800) (72,063) Total (179,605)$ (2,017)$ (181,622)$ 130 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 59 NOTE 11. NORTH TEXAS MUNICIPAL WATER DISTRICT The North Texas Municipal Water District (the District) is a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Chapter 62, Acts of 1951, 52nd Legislature, Regular Session, as amended, originally complied as Vernon’s Article 8270-141 (the Act), pursuant to Article 16, Section 59 of the Texas Constitution. The District comprises all of the territory of its member cities, viz., Allen, Garland, Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville, McKinney, Richardson, Forney and Royse City (the “Member Cities”). The District was created for the purpose of providing a source of water supply for municipal, domestic and industrial use and for the treatment processing and transportation of such water to its Member Cities and to its other customers located in North Central Texas, all within the Dallas Standard Metropolitan Statistical Area. Under the Act, including specifically Section 27 thereof, and under the Constitution and Statutes of the State of Texas, the District has broad powers to (1) impound, control, store, preserve, treat, transmit, and use storm and flood water, the water of rivers and streams and underground water, for irrigation, power and all other useful purposes and to supply water for municipal, domestic, power, industrial and commercial uses and purposes and all other beneficial uses and purposes; and (2) collect, transport, process, treat, dispose of, and control all municipal, domestic, industrial or commercial waste whether in fluid, solid or composite state, including specifically the control, abatement or reduction of all types of pollution. The City retains no ongoing financial interest equity investments and/or responsibilities for the District other than the contractual arrangements discussed more fully herein. NOTE 12. MUDDY CREEK REGIONAL WASTEWATER SYSTEM In May 1999, the Cities of Wylie and Murphy in Collin County entered into a contract with the District to provide for the acquisition, construction, improvement, operation, and maintenance of the Regional Muddy Creek Wastewater System (System) for the purpose of providing facilities to adequately receive, transport, treat, and dispose of wastewater. The District will own the System with Wylie and Murphy as the initial participants. The District will issue approximately $20 million in bonds to construct this new facility. Budget calculations for operating costs and debt service for the System on the service commencement date is based on the following estimated flow ratio: City of Wylie – 2/3 and Murphy – 1/3. “Service Commencement Date” means the first date upon which the System is available to treat wastewater from the participants. Wylie’s long-term commitment to the System’s debt service component is approximately $13.3 million. The District will send each participant a letter detailing the annual requirement necessary to operate the System each year. The annual requirement budget will include an operation and maintenance component and a bond service component. The budgeting ratio described earlier is only valid for the first year of System operations. In subsequent years, budgets and year-end audits will be based on actual flow ratios. For example, if the flow measurements indicate that 60% of the flow is produced by Wylie and 40% by Murphy, then the next year’s operating and debt service components would be allocated using a 60/40 split. If in the future, additional participants are added, then the flow ratios will be adjusted using the above method. The contract with the District has a clause for “Credit for Payments Relating to the System. “This clause states: “Each participant shall be entitled to a credit in an amount equal to any funds advanced by such Participant with the approval of the District for land, engineering, construction or other costs related to the System and/or the financing thereof”. All credits for advance made prior to the Service Commencement Date shall bear interest from the date of such advance at a rate equal to the net effective interest rate on the initial issue of the bonds hereunder. The City of Wylie has four such credits at this time. All credits for advances made prior to the Service Commencement Date shall be amortized over a period of twenty years, with such amortization to commence on October 1 of the Fiscal Year following the Service Commencement Date. At September 30, 2005, the City recorded $3,188,849 as a restricted accounts receivable. This amount is being amortized over a twenty-year period commencing with fiscal year 2006. The amortization was $212,505 for 2023, leaving an unamortized balance of $452,908 as of September 30, 2023. 131 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 60 NOTE 13. CONTINGENT LIABILITIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by such agencies. Any disallowed claims, including amounts already collected may constitute a liability of the applicable funds. The amounts, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City periodically is a defendant in various lawsuits. At September 30, 2023, after consultation with the City’s attorney, the City is not aware of any pending litigation. As described in Note 8 above, the general revenues of the City are contingently liable for the $1,880,000 payable in General Obligation Bonds which are currently outstanding and recorded as obligations of the Enterprise Fund. The City contracts for garbage disposal with a third party. Under the terms of the agreement the City bills and collects the residential billing and remits that amount to the contracting party. The contractor bills the commercial customers and remits a franchise fee to the City based on total revenues received from the contract. The Wylie Economic Development Corporation provides monetary incentives to companies to relocate within the City of Wylie. At September 30, 2023, these commitments totaled $1,588,500. NOTE 14. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; employee health benefits; and other claims of various natures. The City purchases commercial insurance to indemnify it in event of loss. For the past three years, settlements did not exceed coverage. NOTE 15. TAX ABATEMENTS The City enters into economic development agreements authorized under Chapter 380 of the Texas Local Government Code and Chapter 312 of the Texas Tax Code. These agreements are planning tools designed to stimulate economic activity, redevelopment, community improvement, and provide a return on investment for the community. These programs abate or rebate property and/or sales taxes and may include other incentive payments such as fee reductions or construction costs reimbursements. Economic development agreements are considered on a case-by-case basis by the City Council and generally contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives. Other Economic Agreements Chapter 380 of the Texas Local Government Code allows the City to provide grants for the purpose of promoting local economic development. These grants are based on a percentage of property and/or sales tax received by the City. For the fiscal year ending September 30, 2023, the City rebated $58,678 in sales taxes (including $29,378 rebated by WEDC). 132 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 61 NOTE 16. CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNIT Following is selected condensed financial statement information for the fund basis financial statements of the Wylie Economic Development Corporation: Balance Sheet WEDC Assets Cash and equivalents 12,625,716$ Receivables 956,162 Inventory 16,006,005 Prepaids 2,000 Total Assets 29,589,883$ Liabilities Accounts payable 169,661$ Accrued liabilities 17,154 Total Liabilities 186,815 Fund Balance 29,403,068 Total Liabilities and Fund Balance 29,589,883$ WEDC Revenues: Sales tax revenue 4,611,796$ Interest income 381,356 Miscellaneous income 396,601 Total Revenues 5,389,753 Expenditures: Expenditures 3,661,999 Net change in fund balance 1,727,754 Fund balance 10/1/22 27,675,314 Fund balance 9/30/23 29,403,068$ Statement of Revenues, Expenditures and Changes in Fund Balance 133 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 62 NOTE 16. CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNIT – CONTINUED Following are reconciliations between the government-wide financial statements and the fund basis financial statements for WEDC: Reconciliation of fund balance to net position: Total fund balance 29,403,068$ Deferred outflows - pensions, $112,627, and OPEB, $1,709 114,336 Deferred inflows - pensions ($4,704) and OPEB ($3,632) (8,336) Payables for compensated absences (47,804) Accrued interest payable (28,814) Payable for loan principal, net pension liability and OPEB liability (15,721,410) Net position 13,711,040$ Reconciliation of change in fund balance to change in net position: Change in fund balance 1,727,754$ Change in payables for compensated absences (13,238) Change in deferred inflow related to due from primary government (279,047) Change in accrued interest payable 1,049 Net effect of net pension and OPEB activity 20,322 Payment of loan principal 575,973 Change in net position 2,032,813$ NOTE 17. LAND ACQUISITION The WEDC owns real property with a carrying value of $16,006,005 as of September 30, 2023. This property is recorded as inventory as it is held for resale and as an incentive to attract businesses. 134 01/23/2024 Item 2. 63 REQUIRED SUPPLEMENTARY INFORMATION 135 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-10 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL – GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 64 Original Final Actual Amount Variance with Final Budget - Positive (Negative) REVENUES Ad valorem taxes 28,956,551$ 28,956,551$ 28,825,989$ (130,562)$ Non-property taxes 8,278,293 8,278,293 9,286,481 1,008,188 Franchise fees 2,802,400 2,802,400 3,015,867 213,467 Licenses and permits 1,442,750 1,442,750 1,409,965 (32,785) Intergovernmental 2,429,011 8,528,660 8,717,961 189,301 Services fees 4,338,970 4,338,970 4,490,107 151,137 Court fees 339,000 339,000 319,233 (19,767) Interest income 60,720 60,720 1,390,278 1,329,558 Miscellaneous income 255,417 299,156 345,548 46,392 Total revenues 48,903,112 55,046,500 57,801,429 2,754,929 EXPENDITURES Current General government City council 95,165 95,279 51,979 43,300 City manager 1,281,121 1,309,940 1,255,085 54,855 City secretary 391,327 356,296 315,110 41,186 City attorney 170,000 170,000 148,732 21,268 Finance 1,343,989 1,368,004 1,204,820 163,184 Building and fleet maintenance 1,045,597 1,112,537 1,036,588 75,949 Municipal court 576,256 553,935 505,966 47,969 Human resources 809,979 839,678 822,141 17,537 Purchasing 326,557 296,795 283,932 12,863 Information technology 2,358,252 2,247,153 2,014,854 232,299 Combined services/general 4,760,392 4,678,153 4,328,375 349,778 Total general government 13,158,635 13,027,770 11,967,582 1,060,188 Public safety Police 13,131,224 13,642,158 13,318,250 323,908 Fire 13,157,375 13,562,767 12,666,011 896,756 Emergency communications 2,396,484 2,433,514 2,053,328 380,186 Animal control 723,449 738,498 708,588 29,910 Total public safety 29,408,532 30,376,937 28,746,177 1,630,760 Urban development Planning 368,297 365,998 351,740 14,258 Building inspection 593,933 519,461 446,817 72,644 Code enforcement 276,855 262,424 230,051 32,373 Total urban development 1,239,085 1,147,883 1,028,608 119,275 Streets Streets 5,259,846 5,502,671 4,261,461 1,241,210 Total streets 5,259,846 5,502,671 4,261,461 1,241,210 Budgeted Amounts 136 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-10 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES (CONCLUDED) IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL – GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 65 Community service Parks 2,777,610 2,719,867 2,608,997 110,870 Library 2,343,822 2,354,966 2,291,895 63,071 Total community service 5,121,432 5,074,833 4,900,892 173,941 Total expenditures 54,187,530 55,130,094 50,904,720 4,225,374 Excess (deficiency) of revenues over expenditures (5,284,418) (83,594) 6,896,709 6,980,303 OTHER FINANCING SOURCES (USES) Transfers in 2,597,505 2,767,955 2,767,955 - Transfers out - (12,099,649) (12,099,649) - Insurance recovery - 122,926 209,054 86,128 Proceeds from sale of property - - 180,277 180,277 Total other financing sources (uses) 2,597,505 (9,208,768) (8,942,363) 266,405 Net change in fund balances (2,686,913) (9,292,362) (2,045,654) 7,246,708 Fund balances, October 1 31,684,260 31,684,260 31,684,260 - Fund balances, September 30 28,997,347$ 22,391,898$ 29,638,606$ 7,246,708$ 137 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NOTES TO BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2023 66 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information The City follows the following procedures in establishing the budgetary date reflected in the financial statements: 1. Public hearings are conducted to obtain taxpayer comments. 2. Prior to October 1, the budget is legally enacted through passage of an ordinance. 3. The City Manager is authorized to transfer budgeted amounts between programs within a department; however, any revisions between departments, or that alter the total expenditures of any fund must be approved by the City Council. Therefore, the department level is the legal level of control. 4. Budgeted amounts are as originally adopted or as amended by the City Council. During 2023, individual amendments were not material in relation to the original appropriations. All budget appropriations automatically lapse at year-end. 5. Formal budgetary integration is employed as a management control device during the year. The legally adopted budget is adopted on a basis consistent with generally accepted accounting principles. 138 01/23/2024 Item 2. 67 139 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS LAST NINE MEASUREMENT YEARS (UNAUDITED) 68 Measurement Year Measurement Year Measurement Year 2014 2015 2016 Total pension liability: Service cost 2,556,890$ 2,884,478$ -$ Interest 3,219,187 3,586,805 3,725,815 Changes of benefit terms - - - Difference between expected and actual experience 184,163 215,566 4,180,949 Change in assumptions - (245,250) - Benefit payments, including refunds of employee contributions (745,575) (999,126) (1,085,194) Net change in total pension liability 5,214,665 5,442,473 6,821,570 Total pension liability - beginning 45,082,724 50,297,389 55,739,862 Total pension liability - ending (a) 50,297,389 55,739,862 62,561,432 Plan fiduciary net position: Contributions - employer 2,058,618 2,291,479 2,630,201 Contributions - employee 1,102,273 1,149,849 1,274,657 Net investment income 2,024,176 58,730 2,858,337 Benefit payments, including refunds of employee contributions (745,575) (999,126) (1,085,194) Administrative expense (21,127) (35,762) (32,250) Other (1,737) (1,766) (1,738) Net change in plan fiduciary net position 4,416,628 2,463,404 5,644,013 Plan fiduciary net position - beginning 35,373,254 39,789,882 42,253,286 Plan fiduciary net position - ending (b) 39,789,882 42,253,286 47,897,299 Net pension liability - ending (a) - (b) 10,507,507$ 13,486,576$ 14,664,133$ Plan fiduciary net position as a percentage of total pension liability 79.11% 75.80% 76.56% Covered payroll 15,746,759$ 16,426,414$ 18,184,351$ Net pension liability as a percentage of covered payroll 66.73% 82.10% 80.64% Note: Only nine years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” 140 01/23/2024 Item 2. EXHIBIT A-11 69 Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year 2017 2018 2019 2020 2021 2022 3,534,169$ 3,732,706$ 3,856,949$ 4,164,056$ 4,267,960$ 4,679,641$ 4,298,623 4,761,659 5,258,675 5,818,955 6,315,835 6,808,244 - - - - - - 404,285 577,776 524,371 (321,331) (439,930) 628,699 - - 406,608 - - - (1,290,431) (1,662,660)(1,879,475) (1,919,943) (2,784,954) (3,324,552) 6,946,646 7,409,481 8,167,128 7,741,737 7,358,911 8,792,032 62,561,432 69,508,078 76,917,559 85,084,687 92,826,424 100,185,335 69,508,078 76,917,559 85,084,687 92,826,424 100,185,335 108,977,367 2,978,969 3,142,231 3,287,746 3,479,670 3,678,159 4,019,003 1,392,972 1,470,396 1,538,384 1,627,099 1,668,335 1,829,005 6,646,053 (1,728,139) 9,105,849 5,384,137 10,362,682 (6,745,606) (1,290,431) (1,662,660)(1,879,475) (1,919,943) (2,784,954) (3,324,552) (34,403) (33,340) (51,343) (34,763) (47,839) (58,231) (1,744) (1,741) (1,542) (1,356) 327 69,487 9,691,416 1,186,747 11,999,619 8,534,844 12,876,710 (4,210,894) 47,897,299 57,588,715 58,775,462 70,775,081 79,309,925 92,186,635 57,588,715 58,775,462 70,775,081 79,309,925 92,186,635 87,975,741 11,919,363$ 18,142,097$ 14,309,606$ 13,516,499$ 7,998,700$ 21,001,626$ 82.85% 76.41% 83.18% 85.44% 92.02% 80.73% 19,887,590$ 21,008,953$ 21,977,303$ 23,236,919$ 23,830,037$ 26,128,649$ 59.93% 86.35% 65.11% 58.17% 33.57% 80.38% 141 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF PENSION CONTRIBUTIONS LAST NINE FISCAL YEARS (UNAUDITED) 70 Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017 Actuarially determined contribution 2,235,994$ 2,611,189$ 2,924,821$ Contribution in relation to the actuarially determined contribution 2,235,994 2,611,189 2,924,821 Contribution deficiency (excess)-$ -$ -$ Covered payroll 16,311,322$ 18,212,187$ 19,547,995$ Contributions as a percentage of covered payroll 13.71% 14.34% 14.96% Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time period covered by the measurement date. Note: Only nine years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” Notes to Schedule: Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 23 years Asset Valuation Method 10-year smoothed market; 12% soft corridor Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Investment rate of return 6.75% Retirement age Experience-based table of rates that are specific to the City’s plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014-2018. Mortality Post retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with Scale UMP. Pre-retirement: PUB(10) mortality tables, with the Public Safety Table used for males and the General Employee table used for Females. The rates are projected on a fully generational basis With scale UMP. Other information There were no benefit changes during the year. 142 01/23/2024 Item 2. EXHIBIT A-12 71 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 2023 3,144,978$ 3,283,399$ 3,359,419$ 3,596,280$ 3,958,173$ 4,410,196$ 3,144,978 3,283,399 3,359,419 3,596,280 3,958,173 4,410,196 -$ -$ -$ -$ -$ -$ 20,843,290$ 21,773,201$ 22,277,304$ 23,369,269 25,796,021 28,452,877 15.09% 15.08% 15.08% 15.39% 15.34% 15.50% 143 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-13 TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST SIX MEASUREMENT YEARS (UNAUDITED) 72 Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year 2017 2018 2019 2020 2021 2022 Total OPEB liability: Charges for the year Service cost 27,859$ 35,710$ 30,768$ 44,150$ 57,192$ 67,934$ Interest 13,862 14,885 16,242 15,686 14,575 14,894 Changes of benefit terms - - - - - - Difference between expected and actual experience - (22,724) (15,356) (6,015) (14,293) (5,930) Change in assumptions 39,365 (35,164) 96,541 102,727 26,689 (316,876) Benefit payments (1,990) (2,101) (2,198) (2,324) (7,149) (10,451) Net change in total OPEB liability 79,096 (9,394) 125,997 154,224 77,014 (250,429) Total OPEB liability - beginning 353,798 432,894 423,500 549,497 703,721 780,735 Total OPEB liability - ending 432,894$ 423,500$ 549,497$ 703,721$ 780,735$ 530,306$ Covered-employee payroll 19,887,590$ 21,008,953$ 21,977,303$ 23,236,919$ 23,830,037$ 26,128,649$ Total OPEB liability as a percentage of covered-employee payroll 2.18% 2.02% 2.50% 3.03% 3.28% 2.03% Note: Only six years of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan (there are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan); therefore, no plan fiduciary net position and related ratios are reported in the above schedule. 144 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-14 TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF OPEB CONTRIBUTIONS LAST SIX FISCAL YEARS (UNAUDITED) 73 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 2023 Actuarially determined contribution 2,086$ 2,160$ 2,228$ 2,337$ 2,580 5,101 Contributions in relation to the actuarially determined contribution 2,086 2,160 2,228 2,337 2,580 5,101 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ Covered-employee payroll 20,843,290$ 21,773,201$ 22,277,304$ 23,369,269$ 25,796,021 28,452,877 Contributions as a percentage of covered-employee payroll 0.01% 0.01% 0.01% 0.01% 0.01% 0.02% Note: GASB #75, paragraph 57 requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time period covered by the measurement date. Note: Only six years of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan (there are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan). 145 01/23/2024 Item 2. 74 146 01/23/2024 Item 2. 75 COMBINING STATEMENTS AND BUDGETARY COMPARISON SCHEDULES 147 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT A-15 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) GENERAL OBLIGATION DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 76 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Ad valorem taxes 9,057,658$ 9,057,658$ 9,050,412$ (7,246)$ Interest income 2,400 2,400 65,502 63,102 Total revenues 9,060,058 9,060,058 9,115,914 55,856 EXPENDITURES Debt service Principal 6,820,000 6,820,000 6,820,000 - Interest and fiscal charges 2,609,005 2,609,005 2,606,753 2,252 Total debt service 9,429,005 9,429,005 9,426,753 2,252 Net change in fund balances (368,947) (368,947) (310,839) 58,108 Fund balances, October 1 842,926 842,926 842,926 - Fund balances, September 30 473,979$ 473,979$ 532,087$ 58,108$ Budgeted Amounts 148 01/23/2024 Item 2. 77 NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS 4B SALES TAX REVENUE FUND Accounts for sales tax monies specifically designated for promoting economic development within the City by developing, implementing, providing and financing park and recreation projects. PARKS ACQUISITION AND IMPROVEMENT FUND Accounts for the development and improvement of City Parks. FIRE TRAINING CENTER FUND Accounts for First Responder fees specifically designated for the construction of the Fire Training Center. FIRE DEVELOPMENT FEES FUND Accounts for contributions specifically designated for use of the fire department. MUNICIPAL COURT TECHNOLOGY FUND Accounts for court fines specifically designated for additions/improvements in court technology. MUNICIPAL COURT BUILDING SECURITY FUND Accounts for court fines specifically designated for additions/improvements in court building security. HOTEL TAX FUND Accounts for occupancy taxes charged to hotels. FEDERAL SEIZURE FUND Accounts for the City’s share of forfeiture proceeds at the federal level and is restricted for law enforcement additions/improvements only. JUDICIAL EFFICIENCY FUND Accounts for court fines specifically restricted to improving the efficiency of the administration of justice. TRUANCY COURT FUND Accounts for court fines designated for the efficiency of Juvenile Court truancy cases. MUNICIPAL JUDICIAL FUND Accounts for court fines designated for the efficiency in municipal court. DEBT SERVICE FUNDS 4B DEBT SERVICE FUND 1996 Accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 1996. 4B DEBT SERVICE FUND 2005 Accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 2005. 149 01/23/2024 Item 2. CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2023 78 SPECIAL REVENUE FUNDS 4B Sales Tax Revenue Park Acquisition and Improvement Fire Training Center Fire Development Fees Municipal Court Technology Municipal Court Building Security ASSETS Cash and cash equivalents 6,203,122$ 777,522$ 299,529$ 1,299,342$ 28,731$ 31,771$ Investments - - - - - - Receivables: (net of allowances for uncollectibles) Other 13,480 - 990 - - - Sales tax 836,162 - - - - - Total assets 7,052,764$ 777,522$ 300,519$ 1,299,342$ 28,731$ 31,771$ LIABILITIES AND FUND BALANCES Accounts payable 32,659$ -$ 1,107$ -$ -$ -$ Other payables and accruals 111,736 2,328 - - - - Unearned revenue 59,724 - - - - - Total liabilities 204,119 2,328 1,107 - - - FUND BALANCES Restricted Debt service - - - - - - Economic development 6,848,645 - - - - - Municipal court - - - - 28,731 31,771 Tourism - - - - - - Law enforcement - - - - - - Committed Park acquisition and improvement - 775,194 - - - - Fire training - - 299,412 - - - Fire development - - - 1,299,342 - - Total fund balances 6,848,645 775,194 299,412 1,299,342 28,731 31,771 Total liabilities and fund balances 7,052,764$ 777,522$ 300,519$ 1,299,342$ 28,731$ 31,771$ 150 01/23/2024 Item 2. EXHIBIT B-1 79 Hotel Tax Federal Seizure Judicial Efficiency Truancy Court Municipal Judicial 4B Debt Service 1996 4B Debt Service 2005 Total Nonmajor Governmental Funds 736,467$ 829$ 9,349$ 21,909$ 534$ -$ 227,346$ 9,636,451$ - - - - 135,153 - - - - - - 149,623 - - - - - - - 836,162 871,620$ 829$ 9,349$ 21,909$ 534$ -$ 227,346$ 10,622,236$ 15,000$ -$ -$ -$ -$ -$ -$ 48,766$ - - - - - - - 114,064 - - - - - - - 59,724 15,000 - - - - - - 222,554 - - - - - - 227,346 227,346 - - - - - - - 6,848,645 - - 9,349 21,909 534 - - 92,294 856,620 - - - - - 856,620 - 829 - - - - - 829 - - - - - - - 775,194 - - - - - - - 299,412 - - - - - - - 1,299,342 856,620 829 9,349 21,909 534 - 227,346 10,399,682 871,620$ 829$ 9,349$ 21,909$ 534$ -$ 227,346$ 10,622,236$ DEBT SERVICE FUNDS 151 01/23/2024 Item 2. CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2023 80 SPECIAL REVENUE FUNDS 4B Sales Tax Revenue Park Acquisition and Improvement Fire Training Center Fire Development Fees Municipal Court Technology Municipal Court Building Security REVENUES Sales taxes 4,611,796$ -$ -$ -$ -$ -$ Licenses and permits - - 46,135 - - - Service fees 1,067,671 - - - - - Court fees - - - - 7,397 8,923 Development fees - 577,061 - 298,867 - - Interest income 192,547 24,093 9,053 35,311 812 958 Miscellaneous income 43,502 - - - - - Total revenues 5,915,516 601,154 55,188 334,178 8,209 9,881 EXPENDITURES Current: Public safety - - 33,101 1,138 1,289 5,813 Community service 4,003,742 132,121 - - - - Debt service Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 4,003,742 132,121 33,101 1,138 1,289 5,813 Excess (deficiency) of revenues over (under) expenditures 1,911,774 469,033 22,087 333,040 6,920 4,068 Other financing sources (uses) Insurance recoveries - 3,000 - - - Transfers in - - - - - - Transfers out (1,663,050) (200,000) - - - - Total other financing sources (uses) (1,663,050) (200,000) 3,000 - - - Net change in fund balances 248,724 269,033 25,087 333,040 6,920 4,068 Fund balances October 1, 2022 6,599,921 506,161 274,325 966,302 21,811 27,703 Fund balances September 30, 2023 6,848,645$ 775,194$ 299,412$ 1,299,342$ 28,731$ 31,771$ 152 01/23/2024 Item 2. EXHIBIT B-2 81 Hotel Tax Federal Seizure Judicial Efficiency Truancy Court Municipal Judicial 4B Debt Service 1996 4B Debt Service 2005 Total Nonmajor Governmental Funds 295,050$ -$ -$ -$ -$ -$ -$ 4,906,846$ - - - - - - - 46,135 - - - - - - - 1,067,671 - - 1,944 2,650 178 - - 21,092 - - - - - - - 875,928 18,210 - 263 651 14 2,586 8,491 292,989 101,297 - - - - - - 144,799 414,557 - 2,207 3,301 192 2,586 8,491 7,355,460 - - - - - - - 41,341 105,475 - - - 4,241,338 - - - - - - 360,000 360,000 - - - - - - 28,050 28,050 105,475 - - - - - 388,050 4,670,729 309,082 - 2,207 3,301 192 2,586 (379,559) 2,684,731 - - - - - - - 3,000 - - - - - - 577,555 577,555 (205,650) - - - - (189,505) - (2,258,205) (205,650) - - - - (189,505) 577,555 (1,677,650) 103,432 - 2,207 3,301 192 (186,919) 197,996 1,007,081 753,188 829 7,142 18,608 342 186,919 29,350 9,392,601 856,620$ 829$ 9,349$ 21,909$ 534$ -$ 227,346$ 10,399,682$ DEBT SERVICE FUNDS 153 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-1 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B SALES TAX REVENUE FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 82 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Sales taxes 4,124,146$ 4,124,146$ 4,611,796$ 487,650$ Service fees 928,000 977,500 1,067,671 90,171 Interest income 7,200 7,200 192,547 185,347 Miscellaneous income 32,000 32,000 43,502 11,502 Total revenues 5,091,346 5,140,846 5,915,516 774,670 EXPENDITURES Current Community service 4B Parks 1,137,877 2,848,549 1,100,638 1,747,911 4B Brown House 484,438 485,839 259,353 226,486 4B Recreation 3,029,837 3,108,756 2,643,751 465,005 Total community service 4,652,152 6,443,144 4,003,742 2,439,402 Total expenditures 4,652,152 6,443,144 4,003,742 2,439,402 Excess (deficiency) of revenues over (under) expenditures 439,194 (1,302,298) 1,911,774 3,214,072 Other financing uses Transfers out (388,050) (1,663,050) (1,663,050) - Total other financing uses (388,050) (1,663,050) (1,663,050) - Net change in fund balances 51,144 (2,965,348) 248,724 3,214,072 Fund balances, October 1 6,599,921 6,599,921 6,599,921 - Fund balances, September 30 6,651,065$ 3,634,573$ 6,848,645$ 3,214,072$ Budgeted Amounts 154 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-2 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) PARK ACQUISTION AND IMPROVEMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 83 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Development fees 511,000$ 511,000$ 577,061$ 66,061$ Interest income 480 480 24,093 23,613 Total revenues 511,480 511,480 601,154 89,674 EXPENDITURES Current Community service Park acquisition - west zone 58,431 58,431 52,980 5,451 Park acquisition - central zone - 50,000 42,268 7,732 Park acquisition - east zone 38,500 38,500 36,873 1,627 Total expenditures 96,931 146,931 132,121 14,810 Excess (deficiency) of revenues over (under) expenditures 414,549 364,549 469,033 104,484 Other financing uses Transfers out - (200,000) (200,000) - Total other financing uses - (200,000) (200,000) - Net change in fund balances 414,549 164,549 269,033 104,484 Fund balances, October 1 506,161 506,161 506,161 - Fund balances, September 30 920,710$ 670,710$ 775,194$ 104,484$ Budgeted Amounts 155 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-3 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FIRE TRAINING CENTER SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 84 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Licenses and Permits 28,428$ 28,428$ 46,135$ 17,707$ Interest income 300 300 9,053 8,753 Total revenues 28,728 28,728 55,188 26,460 EXPENDITURES Current Public safety Fire training center 45,000 45,000 33,101 11,899 Total public safety 45,000 45,000 33,101 11,899 Excess (deficiency) of revenues over (under) expenditures (16,272) (16,272) 22,087 38,359 Other financing sources Insurance recoveries - - 3,000 3,000 Total other financing sources - - 3,000 - Net change in fund balances (16,272) (16,272) 25,087 41,359 Fund balances, October 1 274,325 274,325 274,325 - Fund balances, September 30 258,053$ 258,053$ 299,412$ 41,359$ Budgeted Amounts 156 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-4 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FIRE DEVELOPMENT FEES SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 85 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Interest income 1,200$ 1,200$ 35,311$ 34,111$ Development fees 234,888 234,888 298,867 63,979 Total revenues 236,088 236,088 334,178 98,090 EXPENDITURES Current Public safety Fire development 101,784 107,004 1,138 105,866 Total public safety 101,784 107,004 1,138 105,866 Excess of revenues over expenditures 134,304 129,084 333,040 203,956 Fund balances, October 1 966,302 966,302 966,302 - Fund balances, September 30 1,100,606$ 1,095,386$ 1,299,342$ 203,956$ Budgeted Amounts 157 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-5 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL COURT TECHNOLOGY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 86 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 8,000$ 8,000$ 7,397$ (603)$ Interest income - - 812 812 Total revenues 8,000 8,000 8,209 209 EXPENDITURES Current Public safety 2,000 2,000 1,289 711 Total public safety 2,000 2,000 1,289 711 Excess of revenues over expenditures 6,000 6,000 6,920 920 Net change in fund balances 6,000 6,000 6,920 920 Fund balances, October 1 21,811 21,811 21,811 - Fund balances, September 30 27,811$ 27,811$ 28,731$ 920$ Budgeted Amounts 158 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-6 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL COURT BUILDING SECURITY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 87 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 7,000$ 7,000$ 8,923$ 1,923$ Interest income - - 958 958 Total revenues 7,000 7,000 9,881 2,881 EXPENDITURES Current Public safety 9,250 14,250 5,813 8,437 Total public safety 9,250 14,250 5,813 8,437 Net change in fund balances (2,250) (7,250) 4,068 11,318 Fund balances, October 1 27,703 27,703 27,703 - Fund balances, September 30 25,453$ 20,453$ 31,771$ 11,318$ Budgeted Amounts 159 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-7 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) HOTEL TAX FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMEBER 30, 2023 88 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Sales taxes 228,000$ 228,000$ 295,050$ 67,050$ Interest income 660 660 18,210 17,550 Miscellaneous income - - 101,297 101,297 Total revenues 228,660 228,660 414,557 185,897 EXPENDITURES Current Community service 95,000 243,000 105,475 137,525 Total expenditures 95,000 243,000 105,475 137,525 Excess (deficiency) of revenues over (under) expenditures 133,660 (14,340) 309,082 323,422 Other financing uses Transfers out (34,200) (205,650) (205,650) - Total other financing uses (34,200) (205,650) (205,650) - Net change in fund balances 99,460 (219,990) 103,432 323,422 Fund balances, October 1 753,188 753,188 753,188 - Fund balances, September 30 852,648$ 533,198$ 856,620$ 323,422$ Budgeted Amounts 160 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-8 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FEDERAL SEIZURE FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 89 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Miscellaneous income -$ -$ -$ -$ Total revenues - - - - EXPENDITURES Current Public safety - - - - Total public safety - - - - Excess of revenues over expenditures - - - - Other financing uses Transfers in - - - - Total other financing uses - - - - Net change in fund balances - - - - Fund balances, October 1 829 829 829 - Fund balances, September 30 829$ 829$ 829$ -$ Budgeted Amounts 161 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-9 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) JUDICIAL EFFICIENCY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 90 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 1,000$ 1,000$ 1,944$ 944$ Interest income - - 263 263 Total revenues 1,000 1,000 2,207 1,207 EXPENDITURES Current Court - - - - Total court - - - - Net change in fund balances 1,000 1,000 2,207 1,207 Fund balances, October 1 7,142 7,142 7,142 - Fund balances, September 30 8,142$ 8,142$ 9,349$ 1,207$ Budgeted Amounts 162 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-10 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) TRUANCY COURT FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 91 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 3,000$ 3,000$ 2,650$ (350)$ Interest income - - 651 651 Total revenues 3,000 3,000 3,301 301 EXPENDITURES Current Court 1,000 1,000 - 1,000 Total court 1,000 1,000 - 1,000 Net change in fund balances 2,000 2,000 3,301 1,301 Fund balances, October 1 18,608 18,608 18,608 - Fund balances, September 30 20,608$ 20,608$ 21,909$ 1,301$ Budgeted Amounts 163 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT C-11 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL JUDICIAL FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 92 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 1,000$ 1,000$ 178$ (822)$ Interest income - - 14 14 Total revenues 1,000 1,000 192 (808) EXPENDITURES Current Court - - - - Total court - - - - Net change in fund balances 1,000 1,000 192 (808) Fund balances, October 1 342 342 342 - Fund balances, September 30 1,342$ 1,342$ 534$ (808)$ Budgeted Amounts 164 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT D-1 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B DEBT SERVICE 1996 FUND DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 93 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Interest income -$ -$ 2,586$ 2,586$ Total revenues - - 2,586 2,586 EXPENDITURES Debt service Principal - - - - Interest and fiscal charges - - - - Total expenditures - - - - Excess of revenues over expenditures - - 2,586 2,586 OTHER FINANCING USES Transfers out - (188,984) (189,505) (521) Total other financing uses - (188,984) (189,505) (521) Net change in fund balances - (188,984) (186,919) 2,065 Fund balances, October 1 186,919 186,919 186,919 - Fund balances, September 30 186,919$ (2,065)$ -$ 2,065$ Budgeted Amounts 165 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXHIBIT D-2 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B DEBT SERVICE 2005 FUND DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 94 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Interest income -$ -$ 8,491$ 8,491$ Total revenues - - 8,491 8,491 EXPENDITURES Debt service Principal 360,000 360,000 360,000 - Interest and fiscal charges 28,050 28,050 28,050 - Total expenditures 388,050 388,050 388,050 - Excess (deficiency) of revenues over (under) expenditures (388,050) (388,050) (379,559) 8,491 Other financing sources Transfers in 388,050 577,034 577,555 521 Total other financing sources 388,050 577,034 577,555 521 Net change in fund balances - 188,984 197,996 9,012 Fund balances, October 1 29,350 29,350 29,350 - Fund balances, September 30 29,350$ 218,334$ 227,346$ 9,012$ Budgeted Amounts 166 01/23/2024 Item 2. 95 STATISTICAL SECTION 167 01/23/2024 Item 2. 96 168 01/23/2024 Item 2. CITY OF WYLIE, TEXAS STATISTICAL SECTION TABLE OF CONTENTS 97 This part of the City of Wylie's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, notes disclosures, and required supplementary information says about the City's overall financial health. This information has not been audited by the independent auditor. Contents Table #s Financial Trends 1-5 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 6-12 These tables contain information to help the reader assess the City's two most significant local revenue sources, the property and sales taxes. Debt Capacity 13-17 These tables 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 debt in the future. Economic and Demographic Information 18-19 These tables offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 20-22 These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides. Source: Unless otherwise noted, the information in these labels is derived from the annual comprehensive financial reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003: tables pressing government-wide information include information beginning in that year. 169 01/23/2024 Item 2. CITY OF WYLIE, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (UNAUDITED) 98 2014 2015 2016 2017 Governmental Activities Net Investment in Capital Assets 104,161,153$ 110,141,284$ 120,169,208$ 131,493,684$ Restricted 1,910,643 2,198,212 3,308,748 4,145,132 Unrestricted 15,353,055 12,040,540 14,016,198 20,176,356 Total Governmental Activities Net Position 121,424,851$ 124,380,036$ 137,494,154$ 155,815,172$ Business-type Activities Net Investment in Capital Assets 46,332,004$ 47,855,920$ 48,313,914$ 43,143,369$ Restricted 3,682,967 5,039,922 5,883,377 7,125,122 Unrestricted 10,466,437 10,249,068 10,803,417 19,043,168 Total Business-type Activities Net Position 60,481,408$ 63,144,910$ 65,000,708$ 69,311,659$ Primary Government Net Investment in Capital Assets 150,493,157$ 157,997,204$ 168,483,122$ 174,637,053$ Restricted 5,593,610 7,238,134 9,192,125 11,270,254 Unrestricted 25,819,492 22,289,608 24,819,615 39,219,524 Total Primary Government Net Position 181,906,259$ 187,524,946$ 202,494,862$ 225,126,831$ Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 170 01/23/2024 Item 2. TABLE 1 99 2018 2019 2020 2021 2022 2023 139,434,589$ 144,685,908$ 159,454,525$ 163,767,912$ 165,022,233$ 172,859,764$ 4,294,426 14,718,498 12,716,750 15,473,019 27,780,709 36,543,702 21,771,662 12,893,405 12,944,197 20,435,713 21,412,498 18,789,236 165,500,677$ 172,297,811$ 185,115,472$ 199,676,644$ 214,215,440$ 228,192,702$ 51,965,084$ 53,636,639$ 55,515,141$ 56,032,882 57,282,050 60,622,382$ 8,327,382 8,265,544 9,606,719 11,072,169 12,100,734 13,602,609 13,086,407 15,637,669 20,263,917 24,740,623 29,917,064 33,451,623 73,378,873$ 77,539,852$ 85,385,777$ 91,845,674$ 99,299,848$ 107,676,614$ 191,399,673$ 198,322,547$ 214,969,666$ 219,800,794$ 222,304,283$ 233,482,146$ 12,621,808 22,984,042 22,323,469 26,545,188 39,881,443 50,146,311 34,858,069 28,531,074 33,208,114 45,176,336 51,329,562 52,240,859 238,879,550$ 249,837,663$ 270,501,249$ 291,522,318$ 313,515,288$ 335,869,316$ 171 01/23/2024 Item 2. CITY OF WYLIE, TEXAS EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST TEN FISCAL YEARS (UNAUDITED) 100 2014 2015 2016 2017 Expenses Governmental Activities: General government 4,731,511$ 8,292,990$ 9,547,712$ 8,076,571$ Public safety 16,818,848 15,265,836 16,665,427 17,893,012 Urban development 1,175,311 1,040,898 1,012,093 1,179,962 Streets 8,019,706 7,649,278 6,941,858 8,044,783 Community service 7,189,773 7,326,919 7,750,815 9,092,767 Interest on long-term debt 4,029,262 3,920,570 3,439,372 2,752,525 Total Governmental Activities Expenses 41,964,411 43,496,491 45,357,277 47,039,620 Business-type Activities Utility 12,600,422 12,878,510 14,250,070 15,334,168 Total Business-type Activities Expenses 12,600,422 12,878,510 14,250,070 15,334,168 Total Primary Government Expenses 54,564,833$ 56,375,001$ 59,607,347$ 62,373,788$ Program Revenues Governmental Activities: Charges for Services: General government 2,452,885$ 2,650,115$ 2,805,284$ 2,887,799$ Public safety 1,514,932 1,519,821 1,665,370 1,682,035 Urban development 824,241 1,399,132 1,497,411 1,589,740 Community service 875,090 946,334 383,916 382,566 Operating Grants and Contributions 332,004 467,147 359,928 364,935 Capital Grants and Contributions 6,651,870 10,343,185 12,277,481 15,186,815 Total Governmental Activities Program Revenues 12,651,022 17,325,734 18,989,390 22,093,890 Business-type Activities: Charges for Services: Utility 13,767,869 15,473,529 15,997,794 16,622,658 Capital Grants and Contributions 1,052,390 2,399,575 1,496,700 4,827,433 Total Business-type Activities Program Revenues 14,820,259 17,873,104 17,494,494 21,450,091 Total Primary Government Programs Revenues 27,471,281 35,198,838 36,483,884 43,543,981 Net (Expense)/Revenue Governmental Activities (29,313,389)$ (26,170,757)$ (26,367,887)$ (24,945,730)$ Business-type Activities 2,219,837 4,994,594 3,244,424 6,115,923 Total Primary Governmental Net Expense (27,093,552) (21,176,163) (23,123,463) (18,829,807) Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 172 01/23/2024 Item 2. TABLE 2 101 2018 2019 2020 2021 2022 2023 10,540,621$ 11,634,904$ 12,134,312$ 12,690,079$ 13,682,957$ 14,412,031$ 20,843,027 22,175,998 23,057,208 23,478,532 25,164,617 29,893,415 1,354,808 1,346,364 1,108,956 1,121,650 1,020,885 1,083,325 8,832,924 8,912,861 9,259,873 9,133,138 10,393,464 11,434,006 9,561,750 9,530,076 9,860,490 9,309,304 9,217,814 9,999,916 2,659,653 2,688,231 2,448,009 2,235,277 2,118,360 2,179,116 53,792,783 56,288,434 57,868,848 57,967,980 61,598,097 69,001,809 17,157,737 17,635,306 18,655,149 19,053,908 20,876,930 23,150,772 17,157,737 17,635,306 18,655,149 19,053,908 20,876,930 23,150,772 70,950,520$ 73,923,740$ 76,523,997$ 77,021,888$ 82,475,027$ 92,152,581$ 2,924,232$ 2,919,563$ 2,968,934$ 3,133,030$ 3,376,459$ 3,593,830$ 1,950,380 2,084,957 2,994,404 2,807,595 3,505,797 3,420,146 1,443,985 1,486,285 1,560,468 1,807,612 1,727,784 1,743,500 394,997 415,862 212,406 377,217 527,150 750,124 346,444 1,115,044 388,250 730,139 663,356 7,069,298 11,809,600 6,608,297 11,902,495 10,810,966 7,619,607 5,136,507 18,869,638 14,630,008 20,026,957 19,666,559 17,420,153 21,713,405 19,431,713 20,662,507 23,047,261 24,400,005 27,371,622 29,592,808 3,646,800 2,783,419 5,590,177 3,317,635 3,189,643 2,965,191 23,078,513 23,445,926 28,637,438 27,717,640 30,561,265 32,557,999 41,948,151 38,075,934 48,664,395 47,384,199 47,981,418 54,271,404 (34,923,145)$ (41,658,426)$ (37,841,891)$ (38,301,421)$ (44,177,944)$ (47,288,404)$ 5,920,776 5,810,620 9,982,289 8,663,732 9,684,335 9,407,227 (29,002,369) (35,847,806) (27,859,602) (29,637,689) (34,493,609) (37,881,177) 173 01/23/2024 Item 2. CITY OF WYLIE, TEXAS GENERAL REVENUES AND TOTAL CHANGE IN NET POSITION LAST TEN FISCAL YEARS (UNAUDITED) 102 2014 2015 2016 2017 Net (Expense)/Revenue Governmental Activities (29,313,389)$ (26,170,757)$ (26,367,887)$ (24,945,730)$ Business-type Activities 2,219,837 4,994,594 3,244,424 6,115,923 Total Primary Government Net Expense (27,093,552) (21,176,163) (23,123,463) (18,829,807) Governmental Revenues and Other Changes in Net Position Governmental Activities: Taxes Property taxes 22,537,796 24,620,586 26,992,416 30,065,957 Sales taxes 5,872,316 6,663,646 7,555,687 7,993,453 Franchise Taxes 2,497,660 2,665,092 2,709,736 2,726,088 Unrestricted investment earnings 7,857 12,708 65,850 145,377 Miscellaneous income 186,802 160,750 149,534 223,012 Gain (loss) on disposal of capital assets 49,752 339,328 96,937 - Transfers 1,709,611 1,961,899 1,911,845 2,112,861 Total Governmental Activities 32,861,794 36,424,009 39,482,005 43,266,748 Business-type Activities: Investment earnings 98,049 93,293 103,521 135,053 Miscellaneous income 174,147 336,548 419,698 172,836 Transfers (1,709,611) (1,961,899) (1,911,845) (2,112,861) Total Business-type Activities (1,437,415) (1,532,058) (1,388,626) (1,804,972) Total Primary Government 31,424,379$ 34,891,951$ 38,093,379$ 41,461,776$ Change in Net Position Governmental Activities 3,548,405$ 10,253,252$ 13,114,118$ 18,321,018$ Business-type Activities 782,422 3,462,536 1,855,798 4,310,951 Total Primary Government 4,330,827$ 13,715,788$ 14,969,916$ 22,631,969$ Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 174 01/23/2024 Item 2. TABLE 3 103 2018 2019 2020 2021 2022 2023 (34,923,145)$ (41,658,426)$ (37,841,891)$ (38,301,421)$ (44,177,944)$ (47,288,404)$ 5,920,776 5,810,620 9,982,289 8,663,732 9,684,335 9,407,227 (29,002,369) (35,847,806) (27,859,602) (29,637,689) (34,493,609) (37,881,177) 31,459,533 33,275,978 34,300,635 35,629,027 36,723,108 37,982,291 7,859,294 8,967,508 10,037,707 11,832,404 12,951,476 14,193,327 2,749,138 2,883,573 2,734,736 2,675,866 2,929,590 3,080,512 312,765 495,039 188,991 31,845 307,155 2,829,070 356,159 559,846 914,338 276,181 610,600 485,740 - - 77,901 1,109 2,706,165 132,421 2,166,807 2,273,616 2,405,244 2,416,161 2,488,646 2,562,305 44,903,696 48,455,560 50,659,552 52,862,593 58,716,740 61,265,666 212,774 266,776 138,968 62,113 195,126 1,389,590 129,963 357,199 129,912 150,213 63,359 142,254 (2,166,807) (2,273,616) (2,405,244) (2,416,161) (2,488,646) (2,562,305) (1,824,070) (1,649,641) (2,136,364) (2,203,835) (2,230,161) (1,030,461) 43,079,626$ 46,805,919$ 48,523,188$ 50,658,758$ 56,486,579$ 60,235,205$ 9,980,551$ 6,797,134$ 12,817,661$ 14,561,172$ 14,538,796$ 13,977,262$ 4,096,706 4,160,979 7,845,925 6,459,897 7,454,174 8,376,766 14,077,257$ 10,958,113$ 20,663,586$ 21,021,069$ 21,992,970$ 22,354,028$ 175 01/23/2024 Item 2. CITY OF WYLIE, TEXAS FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 104 2014 2015 2016 2017 General Fund Nonspendable 185,370$ 181,891$ 194,820$ 156,872$ Restricted 37,299 31,167 44,107 44,107 Committed 159,429 168,017 591,471 413,504 Assigned 174,173 170,213 88,788 2,884,219 Unassigned 11,737,159 13,561,725 16,272,269 16,281,977 Total General Fund 12,293,430$ 14,113,013$ 17,191,455$ 19,780,679$ All Other Governmental Funds Restricted 14,424,699$ 12,401,450$ 12,481,571$ 15,313,781$ Committed 1,834,152 2,668,895 2,662,297 2,735,089 Total All Other Governmental Funds 16,258,851$ 15,070,345$ 15,143,868$ 18,048,870$ 176 01/23/2024 Item 2. TABLE 4 105 2018 2019 2020 2021 2022 2023 173,603$ 167,898$ 168,120$ 183,212$ 179,473$ 184,507$ 29,381 37,921 38,037 57,849 499,218 300,361 354,354 378,727 416,297 521,710 510,191 563,145 1,381,468 2,948,194 60,732 72,991 84,367 35,838 16,202,153 16,509,743 21,914,768 30,403,003 30,411,011 28,554,755 18,140,959$ 20,042,483$ 22,597,954$ 31,238,765$ 31,684,260$ 29,638,606$ 28,176,150$ 29,096,638$ 19,993,700$ 23,675,046$ 32,777,064$ 63,025,766$ 3,083,992 2,901,614 2,341,758 1,655,993 1,746,788 2,373,948 31,260,142$ 31,998,252$ 22,335,458$ 25,331,039$ 34,523,852$ 65,399,714$ 177 01/23/2024 Item 2. CITY OF WYLIE, TEXAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 106 2014 2015 2016 2017 Revenues Ad valorem taxes 22,539,230$ 24,515,600$ 27,127,964$ 30,062,648$ Sales taxes 5,872,316 6,663,646 7,555,687 7,993,453 Franchise fees 2,579,004 2,595,964 2,666,356 2,686,550 Licenses and permits 1,595,468 2,465,148 1,623,398 2,218,729 Intergovernmental 3,983,797 2,307,516 4,591,241 4,755,914 Service fees 3,852,357 4,183,790 4,306,832 4,307,000 Court fees 288,591 413,757 536,106 582,418 Development fees - 880,193 473,966 969,365 Interest income 7,857 12,708 65,850 145,377 Miscellaneous income 550,732 326,323 292,456 301,504 Total Revenues 41,269,352 44,364,645 49,239,856 54,022,958 Expenditures General government 7,623,082 8,405,920 9,396,230 10,677,430 Public safety 14,230,747 15,064,971 17,577,736 18,190,153 Urban development 1,170,740 1,124,212 1,109,049 1,270,481 Streets 1,848,617 1,901,138 2,190,086 3,070,133 Community service 5,469,383 5,860,111 6,408,022 8,359,639 Capital outlay 8,762,342 5,167,717 5,047,777 3,493,929 Debt service Principal 4,320,000 4,695,000 5,000,000 5,060,000 Interest and fiscal charges 4,191,706 3,707,211 3,170,926 3,181,314 Bond issuance costs - 244,695 323,391 - Total Expenditures 47,616,617 46,170,975 50,223,217 53,303,079 Excess of Revenues Over (Under) Expenditures (6,347,265) (1,806,330) (983,361) 719,879 Other Financing Sources (Uses) Transfers In 5,411,900 3,594,899 3,738,641 3,477,861 Transfers Out (3,628,021) (1,633,000) (1,785,791) (1,365,000) Issuance of long-term debt - 21,240,000 30,110,000 - Premium on bonds issued - 3,128,967 5,833,412 - Payment to refunded bond escrow agent - (24,376,415) (36,041,783) - Proceeds from capital lease - - - 1,130,553 Proceeds from note - - - 86,034 Insurance recovery - - 2,110,037 1,444,899 Reimbursement from other funds - - - - Sale of capital assets 99,744 482,956 170,810 - Total Other Financing Sources (Uses) 1,883,623 2,437,407 4,135,326 4,774,347 Net Change in Fund Balances (4,463,642)$ 631,077$ 3,151,965$ 5,494,226$ Debt Service as a Percentage of Noncapital Expenditures 22.7% 21.1% 18.7% 17.7% 178 01/23/2024 Item 2. TABLE 5 107 2018 2019 2020 2021 2022 2023 31,521,403$ 33,215,374$ 34,314,132$ 35,624,174$ 36,709,489$ 37,876,401$ 7,859,294 8,967,508 10,037,707 11,832,404 12,951,476 14,193,327 2,740,472 2,845,824 2,961,998 2,696,702 2,897,152 3,015,867 2,118,115 1,766,155 1,908,981 2,008,730 2,192,510 2,739,451 1,353,146 1,400,092 2,838,041 5,191,266 4,602,908 8,790,590 4,338,603 4,698,587 4,252,796 4,880,463 5,100,703 5,557,778 486,980 318,245 251,030 305,022 332,209 340,325 273,022 448,375 477,776 599,978 317,734 875,928 312,765 495,039 188,991 31,845 307,155 2,813,441 482,294 310,171 183,002 289,114 556,397 490,347 51,486,094 54,465,370 57,414,454 63,459,698 65,967,733 76,693,455 10,041,180 10,236,046 11,645,070 11,253,180 11,645,070 11,967,582 19,420,235 20,609,710 25,534,762 22,995,835 25,534,762 28,787,518 1,309,980 1,266,940 1,052,931 1,085,839 1,052,931 1,028,608 3,165,925 3,148,092 3,563,540 2,926,280 3,563,540 4,261,461 7,696,489 7,716,418 8,482,228 7,756,927 8,482,228 9,142,230 674,969 2,674,900 7,557,044 4,939,120 7,557,044 2,822,998 5,350,000 5,655,000 6,690,000 6,380,000 6,690,000 7,180,000 3,003,262 3,180,134 2,563,350 2,556,000 2,563,350 2,634,803 89,500 - 47,654 154,686 121,823 129,135 50,751,540 54,487,240 67,136,579 60,047,867 67,210,748 67,954,335 734,554 (21,870) (9,722,125) 3,411,831 (1,243,015) 8,739,120 6,372,660 4,900,804 5,802,294 3,776,186 9,908,592 16,920,159 (4,205,853) (2,627,188) (3,397,050) (1,360,025) (7,419,946) (14,357,854) 8,500,000 - - 10,165,000 12,005,000 16,010,000 106,250 - - 1,008,899 1,106,481 1,126,452 - - - (5,521,619) (7,558,830) - - - 384,243 - - - - - - - - - 11,693 387,888 774,289 62,833 133,861 212,054 - - - - - - 52,248 - 81,713 93,287 2,706,165 180,277 10,836,998 2,661,504 3,645,489 8,224,561 10,881,323 20,091,088 11,571,552$ 2,639,634$ (6,076,636)$ 11,636,392$ 9,638,308$ 28,830,208$ 17.1% 17.5% 17.1% 16.5% 15.7% 15.3% 179 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 6 TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 108 Fiscal Ad Valorem Sales Franchise Year Taxes Taxes Taxes Total 2014 22,539,230 5,872,316 2,579,004 30,990,550 2015 24,515,600 6,663,646 2,595,964 33,775,210 2016 27,127,964 7,555,687 2,666,356 37,350,007 2017 30,062,648 7,993,453 2,686,550 40,742,651 2018 31,521,403 7,859,294 2,740,472 42,121,169 2019 33,215,374 8,967,508 2,845,824 45,028,706 2020 34,314,132 10,037,707 2,961,998 47,313,837 2021 35,624,174 11,832,404 2,696,702 50,153,280 2022 36,709,489 12,951,476 2,897,152 52,558,117 2023 37,876,401 14,193,327 3,015,867 55,085,595 Percent Change 15,337,171$ 8,321,011$ 436,863$ 24,095,045$ 2014-2023 68.0% 141.7% 16.9% 77.7% 180 01/23/2024 Item 2. TABLE 7 CITY OF WYLIE, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) 109 Less: Total Taxable Total Fiscal Residential Commercial Industrial Tax-Exempt Assessed Direct Tax Year Property Property Property Property Value Rate 2014 2,029,810,891 385,941,414 120,187,762 119,114,535 2,416,825,532 0.8839 2015 2,159,677,849 456,585,488 120,520,310 118,002,192 2,618,781,455 0.8789 2016 2,403,735,226 493,073,892 184,902,709 160,657,963 2,921,053,864 0.8689 2017 2,796,346,833 524,315,031 174,771,677 169,870,475 3,325,563,066 0.8489 2018 3,184,597,754 591,109,898 210,303,769 209,198,308 3,776,813,114 0.7810 2019 3,616,909,043 650,624,491 201,759,611 209,789,356 4,259,503,789 0.7258 2020 3,980,455,949 702,559,463 214,177,830 220,278,824 4,676,914,418 0.6885 2021 4,152,109,035 771,948,729 188,882,599 231,292,765 4,881,647,598 0.6720 2022 4,583,130,357 756,764,219 190,265,923 240,544,476 5,289,616,023 0.6438 2023 5,355,320,430 849,037,364 190,977,521 196,307,017 6,199,028,298 0.5623 Source: Central Appraisal District of Collin County web site (www.collincad.org) 181 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 8 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) 110 General Wylie Community Collin County Total Direct & Fiscal Basic Obligation Total Independent Independent Collin Community Overlapping Year Rate Debt Service Direct Rate School District School District County College District Rates 2014 0.593314 0.290586 0.883900 1.6400 1.6250 0.2375 0.0836 4.4700 2015 0.597978 0.280922 0.878900 1.6400 1.6150 0.2350 0.0820 4.4509 2016 0.611583 0.257317 0.868900 1.6400 1.6250 0.2250 0.0820 4.4409 2017 0.623399 0.225501 0.848900 1.6400 1.6250 0.2084 0.0812 4.4035 2018 0.580307 0.200693 0.781000 1.6400 1.6250 0.1922 0.0798 4.3181 2019 0.538206 0.186420 0.725848 1.6400 1.6700 0.1808 0.0812 4.2979 2020 0.516225 0.172229 0.688454 1.5384 1.5684 0.1750 0.0812 4.0514 2021 0.512180 0.159799 0.671979 1.5205 1.4862 0.1725 0.0812 3.9324 2022 0.491864 0.151887 0.643751 1.4598 1.4603 0.1681 0.0812 3.8132 2023 0.427919 0.134414 0.562333 1.3979 1.4429 0.1524 0.0812 3.6368 (1) Source: Central appraisal District of Collin County web site (www.collincad.org). (2) Although the Community Independent School District is included in the above presentation, less than one percent of the City of Wylie lies within this taxing jurisdiction. (3) Basis for property tax rate is per $100 of taxable valuation. City Direct Rates Overlapping Rates 182 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 9 PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO (UNAUDITED) 111 Percentage Percentage Taxable of Total City Taxable of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Value Rank Assessed Value LPRE Wylie LLC 58,415,578$ 1 0.94% BVF-V Wylie LLC 54,311,833 2 0.88% Seventy8 & Westgate LP 54,237,119 3 0.87% VHP Owner LLC 54,000,000 4 0.87% Mack (Wylie) LLC 46,265,000 5 0.75% Woodbridge Wylie Owner LLC 44,478,162 6 0.72% Tower Extrusion LTD 39,792,541 7 0.64% Sanden International (USA) Inc. 35,930,248 8 0.58% 45,551,408 1 1.88% 2000 Country Club Road LLC 33,778,758 9 0.54% Holland Hitch of Tx Inc. 25,820,379 10 0.42% 15,370,723 5 0.64% Oncor Electric Delivery Company LLC 23,098,500 11 0.37% 20,786,902 4 0.86% Sanden International (USA) Inc. 17,853,347 12 0.29% 14,500,000 7 0.60% Bloomfield Homes LP 17,491,945 13 0.28% Yes Companies Key LLC 15,236,470 14 0.25% 10,849,257 11 0.45% Wal-Mart Real Estate Business TR 14,873,775 15 0.24% 14,511,815 6 0.60% Kroger Texas LP 14,736,350 16 0.24% Westdale Rustic Oaks LTD 14,477,285 17 0.23% 6,588,053 20 0.27% Kansas City Southern Railway Co. 13,731,786 18 0.22% HTA-Wylie Medical Plaza LLC 13,498,771 19 0.22% Target Corporation 13,299,979 20 0.21% 14,276,420 8 0.59% Woodbridge Dallas Associates LLC - 26,065,856 2 1.08% Woodbridge Crossing LP - 23,441,647 3 0.97% Carlisle Coating & Waterproofing Inc. - 10,685,356 12 0.44% Atrium Companies Inc. - 9,318,215 14 0.39% Cascades Apartments LTD - 12,000,000 9 0.50% Best Circuit Boards Inc. - 11,428,832 10 0.47% GTE Southwest Inc. - 9,415,834 13 0.39% Sooners Group LP - 8,350,037 16 0.35% Windough (DE) LP - 7,568,282 17 0.31% Wal-Mart Stores Texas LLC - 6,913,691 19 0.29% Ascend Custom Extrusions LLC - 8,385,681 15 0.35% PM Wylie Mob LP - 7,147,156 18 0.30% Total 605,327,826$ 9.76% 283,155,165$ 11.73% (1) Source: Central Appraisal District of Collin County website (www.collincad.org) 2023 2013 183 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 10 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) 112 Fiscal Taxes Levied Collections Year Ended for the Percentage in Subsequent Percentage September 30 Fiscal Year Amount of Levy Years Amount of Levy 2014 22,501,648 22,192,325 98.63% 222,173 22,414,498 99.61% 2015 24,313,312 24,045,424 98.90% 267,888 24,313,312 100.00% 2016 26,864,127 26,549,430 98.83% 314,697 26,864,127 100.00% 2017 29,991,374 29,659,723 98.89% 250,376 29,910,099 99.73% 2018 31,349,629 31,134,716 99.31% 214,914 31,349,629 100.00% 2019 32,977,950 32,767,801 99.36% 210,149 32,977,950 100.00% 2020 34,488,548 34,183,944 99.12% 6,296 34,190,240 99.14% 2021 35,349,912 35,243,082 99.70% 106,830 35,349,912 100.00% 2022 36,688,809 36,487,796 99.45% 71,986 36,559,782 99.65% 2023 37,764,209 37,605,247 99.58% 108,726 37,713,973 99.87% Collected Within the Fiscal Year of the Levy Total Collections to Date 184 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 11 DIRECT AND OVERLAPPING SALES TAX RATE LAST TEN FISCAL YEARS (UNAUDITED) 113 City Wylie Economic Fiscal Direct Development Collin Year Rate Corporation County 2014 1.50% 0.50% 0.00% 2015 1.50% 0.50% 0.00% 2016 1.50% 0.50% 0.00% 2017 1.50% 0.50% 0.00% 2018 1.50% 0.50% 0.00% 2019 1.50% 0.50% 0.00% 2020 1.50% 0.50% 0.00% 2021 1.50% 0.50% 0.00% 2022 1.50% 0.50% 0.00% 2023 1.50% 0.50% 0.00% Note: The City sales tax rate includes the City sales tax rate of one percent and the blended component unit rate of one-half percent 185 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TAXABLE SALES BY CATEGORY LAST TEN CALENDAR YEARS (UNAUDITED) 114 2014 2015 2016 2017 Construction 497,754$ 479,336$ 536,173$ 452,735$ Manufacturing 101,808 80,028 103,575 96,116 Transportation, Communications 291,838 179,077 212,058 212,407 Wholesale Trade 100,203 166,717 168,752 361,554 Retail Trade 3,303,378 3,633,909 4,169,961 4,560,251 Other 3,435,545 4,228,072 4,736,506 4,826,441 Total 7,730,526$ 8,767,139$ 9,927,025$ 10,509,504$ Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of revenue. The tax liability includes the City sales tax rate of one percent and the blended component unit rate of one-half percent. 186 01/23/2024 Item 2. TABLE 12 115 2018 2019 2020 2021 2022 2023 830,425$ 1,147,234$ 1,400,203$ 1,349,292$ 1,259,862$ 2,639,188$ 119,847 119,923 149,700 163,358 351,938 232,780 318,281 349,457 307,326 326,043 349,669 351,452 644,085 677,446 824,396 787,434 912,782 1,076,438 5,513,345 6,133,235 6,873,957 8,526,052 9,268,619 8,975,402 2,825,054 3,253,254 3,578,388 4,349,705 4,502,258 5,171,921 10,251,037$ 11,680,549$ 13,133,970$ 15,501,884$ 16,645,128$ 18,447,181$ 187 01/23/2024 Item 2. CITY OF WYLIE, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (UNAUDITED) 116 General Combination Fiscal Obligation Tax/Revenue Certificates of Year Bonds Bonds Obligation 2014 78,121,976 12,789,364 - 2015 75,375,018 11,864,899 - 2016 83,016,024 1,925,435 - 2017 78,187,253 1,233,553 - 2018 73,139,939 9,115,985 - 2019 67,281,896 8,886,207 - 2020 61,128,854 8,561,429 - 2021 55,044,633 13,479,773 - 2022 54,794,863 12,990,606 - 2023 64,683,015 12,422,598 - General Water Combination Fiscal Obligation Revenue Tax/Revenue Year Bonds Bonds Bonds 2014 2,329,667 - 5,706,367 2015 1,622,945 - 5,365,657 2016 6,025,224 - 324,947 2017 5,816,174 - 7,134,237 2018 4,875,035 - 7,388,900 2019 4,184,968 - 7,327,492 2020 3,574,899 - 7,216,084 2021 3,116,788 - 6,871,073 2022 2,619,076 - 6,543,956 2023 2,139,718 - 6,206,838 (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2) See the Demographic and Economic Statistics table (Table 18) for population data. General Bonded Debt Business-type Activities 188 01/23/2024 Item 2. TABLE 13 117 General Tax Obligation Revenue Contractual Loans and Financed Bonds Bonds Obligations Obligation Purchases 3,588,513 280,000 1,447,896 189,938 61,324 3,539,481 145,000 1,388,031 77,660 25,336 3,223,125 - 1,323,166 - - 2,911,894 - 1,258,333 - 892,734 2,559,435 - 1,193,436 - 678,036 2,220,091 - 1,123,571 - 457,778 1,870,746 - 1,053,706 - 542,066 1,511,401 - 978,841 - 237,027 1,152,057 - - 79,529 160,983 777,712 - - 19,290 82,012 Total Percentage Contractual Financed Primary of Personal Per Obligations Purchases Government (1) Income Capita (2) - - 104,515,045 7.37% 2,371 - - 99,404,027 6.61% 2,162 - - 95,837,921 6.13% 2,027 - - 97,434,178 6.08% 2,039 - - 98,950,766 5.36% 1,903 - - 91,482,002 4.80% 1,705 - 3,333,667 87,281,452 4.71% 1,582 - 3,010,104 84,249,640 4.32% 1,433 - 2,702,733 81,043,803 4.32% 1,331 - 2,388,988 88,720,171 4.32% 1,421 Other Governmental Activities Debt 189 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 14 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (UNAUDITED) 118 General Percentage Fiscal Obligation Less: Restricted Net Bonded Actual Taxable Per Year Bonds for Debt Service Debt Value of Property Capita 2014 84,040,156 281,183 83,758,973 3.47% 1,900 2015 80,537,444 470,789 80,066,655 3.06% 1,742 2016 92,264,373 675,565 91,588,808 3.14% 1,937 2017 86,915,321 820,559 86,094,762 2.59% 1,802 2018 80,574,410 1,095,418 79,478,992 2.10% 1,585 2019 73,686,955 1,187,960 72,498,995 1.70% 1,393 2020 66,574,499 1,244,524 65,329,975 1.53% 1,257 2021 59,672,822 1,122,215 58,550,607 1.20% 1,062 2022 58,565,996 842,926 57,723,070 1.09% 948 2023 67,600,445 532,087 67,068,358 1.08% 1,074 General Bonded Debt Outstanding 190 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 15 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (UNAUDITED) 119 (4) Estimated Estimated Share of Debt Percentage Direct and Governmental Unit (3) Outstanding Applicable Overlapping Debt Debt Repaid with Property Taxes Wylie Independent School District 403,108,753$ (1) 63.07% 254,240,691$ Collin County 721,825,000 (1) 3.23% 23,314,948 Collin County Community College District 480,350,000 (1) 3.23% 15,515,305 Community Independent School District 490,885,000 (1) 0.35% 1,718,098 Garland Independent School District 992,285,000 (1) 0.19% 1,885,342 Princeton Independent School District 870,134,869 (1) 0.66% 5,742,890 Rockwall County 137,325,000 (1) 0.57% 782,753 Subtotal, Overlapping Debt 303,200,025 City Direct Debt (2) 77,984,627 Total Direct and Overlapping Debt 381,184,652$ Ratio of Direct and Overlapping Bonded Debt to Taxable Assessed Valuation 6.17% Per Capita Direct and Overlapping Debt 6,130$ (1) Source: Municipal Advisory Council of Texas (2) Excludes business-type activities debt (3) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Wylie, Texas. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (4) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the various governments' taxable assessed value that is within the government's boundaries and dividing it by the total taxable assessed value. 191 01/23/2024 Item 2. CITY OF WYLIE, TEXAS LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (UNAUDITED) 120 2014 2015 2016 2017 Debt Limit 241,682,553$ 261,878,146$ 292,105,386$ 332,556,307$ Total Net Debt Applicable to Limit 75,018,154 72,168,010 79,238,061 73,997,534 Legal Debt Margin 166,664,399 189,710,136 212,867,325 258,558,773 Total Net Debt Applicable to the Limit As a percentage of Debt Limit 31.04% 27.56% 27.13% 22.25% Legal Debt Margin Calculation for the Current Fiscal Year Assessed Value 6,199,027,298$ Debt Limit (10%) of Assessed Value)619,902,730 Debt Applicable to Limit: General Obligation Bonds 61,500,000 Less: Amount Set Aside for Repayment of General Obligation Debt (9,415,471) Total Net Debt applicable to Limit 52,084,529 Legal Debt Margin 567,818,201$ (1) Texas state law does not prescribe a debt limit; however, by custom, a practical economic debt limit of 10% of the assessed valuation is used. By law, the general obligation debt subject to the limitation may be offset by the amount set aside for repaying general obligation debt. 192 01/23/2024 Item 2. TABLE 16 121 2018 2019 2020 2021 2022 2023 377,681,311$ 425,950,379$ 467,691,442$ 488,164,745$ 528,961,602$ 619,902,730$ 67,964,648 61,661,330 55,074,262 48,583,868 48,048,018 52,084,529 309,716,663 364,289,049 412,617,180 439,580,877 480,913,584 567,818,201 18.00% 14.48% 11.78% 9.95% 9.08% 8.40% 193 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 17 PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS (UNAUDITED) 122 Utility Less: Net Fiscal Service Operating Available Year Charges (1) Expenses (2) Revenue Principal Interest Total Coverage 2014 13,767,869 10,395,146 3,372,723 345,000 235,475 580,475 5.81 2015 15,473,529 10,531,564 4,941,965 355,000 221,475 576,475 8.57 2016 15,997,794 11,849,326 4,148,468 370,000 211,638 581,638 7.13 2017 18,169,571 12,832,323 5,337,248 - 285,282 285,282 18.71 2018 19,431,713 14,434,320 4,997,393 50,000 240,019 290,019 17.23 2019 20,662,507 14,895,221 5,767,286 100,000 238,519 338,519 17.03 2020 23,047,261 15,809,435 7,237,826 310,000 234,419 544,419 13.28 2021 24,400,005 16,110,604 8,289,401 320,000 228,119 548,119 15.11 2022 27,371,622 17,720,047 9,651,575 330,000 218,319 548,319 17.60 2023 29,592,808 19,989,715 9,603,093 340,000 204,919 544,919 4.67 (1) Includes total operating revenue of the Utility Enterprise Fund (2) Includes operating expenses of the Utility Enterprise Fund, less depreciation expense. (3) Debt service requirements includes principal and interest payments on revenue bonds. Water Revenue Bonds Debt Service (3) 194 01/23/2024 Item 2. 123 195 01/23/2024 Item 2. CITY OF WYLIE, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) 124 2014 2015 2016 2017 Population (1) 44,089 45,970 47,776 50,152 Personal Income (in thousands of dollars) 1,417,550$ 1,504,632$ 1,579,381$ 1,682,796$ Per Capita Personal Income 32,152$ 32,731$ 33,058$ 33,554$ Median Age 31.7 31.7 31.7 31.7 Education Level in Years of Schooling (2) Less than high school graduate 16.1% 16.1% 16.1% 16.1% High school graduate (or equivalent) 23.5% 23.5% 23.5% 23.5% Some college/associate's degree 28.5% 28.5% 28.5% 28.5% Bachelor's degree 24.5% 24.5% 24.5% 24.5% Masters, professional, or doctorate 6.7% 6.7% 6.7% 6.7% School Enrollment 13,673 14,557 15,023 15,709 Unemployment (3) 4.6% 4.1% 3.2% 3.4% (1) Population estimate from City of Wylie website. (2) Education statistics for 2013-2020 per the 2010 U.S. Census; for 2021-2023 per the 2020 U.S. Census for population 25 years of age and older (3) Unemployment rates from the Texas Workforce Commission website (www.twc.state.tx.us). 196 01/23/2024 Item 2. TABLE 18 125 2018 2019 2020 2021 2022 2023 52,003 53,653 55,156 59,028 60,876 62,434 1,845,898$ 1,823,484$ 1,855,062$ 1,959,848$ 2,226,053$ 2,343,148$ 35,496$ 33,987$ 33,633$ 33,202$ 36,567$ 37,530$ 33.2 33.3 33.4 33.6 33.5 33.7 16.1% 16.1% 16.1% 7.8% 7.8% 7.8% 23.5% 23.5% 23.5% 21.8% 21.8% 21.8% 28.5% 28.5% 28.5% 34.1% 34.1% 34.1% 24.5% 24.5% 24.5% 25.8% 25.8% 25.8% 6.7% 6.7% 6.7% 10.5% 10.5% 10.5% 16,466 17,164 17,392 18,159 18,703 19,176 3.2% 2.9% 6.7% 6.2% 2.7% 4.2% 197 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 19 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED) 126 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Wylie ISD 2,817 1 22.51% 1,836 1 22.63% North Texas Municipal Water District 840 2 6.71% 550 2 6.78% Extruders / Tower Extrusion 550 3 4.39% 250 6 3.08% City of Wylie 436 4 3.48% 329 4 4.05% Wal-Mart 397 5 3.17% 320 5 3.94% Sanden Intl. (USA), Inc. 288 6 2.30% 464 3 5.72% Avanti Windows & Doors 275 7 2.20% - - 0.00% Kroger 252 8 2.01% - - 0.00% Home Depot 240 9 1.92% - - 0.00% Target 225 10 1.80% 223 7 2.75% Total 6,320 50.50% 3,972 48.95% Source: Wylie Economic Development Corporation 2023 2014 198 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 20 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 127 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program General Government Management Services 13 14 14 15 16 18 18 18 20 20 Finance 9 9 9 9 9 9 9 9 8 8 Planning 5 5 6 6 6 5 3 3 3 3 Building 6 6 6 6 6 6 6 6 6 6 Other 7 6 7 8 9 9 14 14 15 15 Police Officers 49 55 63 63 63 66 70 70 70 72 Civilian 8 8 8 9 11 11 12 17 21 23 Fire Firefighters and Officers 45 45 49 52 52 53 57 62 68 74 Civilians 3 3 3 3 3 3 4 4 4 4 Animal Control 6 7 7 7 8 8 8 8 8 8 Dispatch 10 11 12 13 13 14 14 15 16 16 Streets 11 13 16 17 18 18 19 20 21 21 Other Public Works Engineering 3 3 3 3 3 - - - 6 6 Other 11 11 11 11 11 14 14 15 11 11 Parks and Recreation 43 44 48 49 51 51 57 57 62 63 Library 22 24 24 25 27 27 27 27 27 27 Water 15 15 15 19 19 19 16 16 16 16 Wastewater 6 6 6 6 7 9 11 12 12 12 EDC 2 2 3 3 3 3 3 3 4 4 Total 274 287 310 322 335 343 362 377 400 410 Source: City of Wylie annual budget book Full-Time Equivalent Employees as of Year End 199 01/23/2024 Item 2. CITY OF WYLIE, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 128 2014 2015 2016 2017 Function/Program General Government Building Permits Issued 298 484 433 667 Building Permits Value (thousands) (1) 113,783$ 106,488$ 107,516$ 201,540$ Police Physical Arrests 794 973 1,385 1,026 Violations Issued 2,435 2,691 4,188 4,228 Warrants Issued 808 919 701 1,492 Fire Emergency Responses 3,527 4,168 4,311 4,478 Fires Extinguished 49 62 89 168 Inspections 2,380 1,980 2,039 2,150 Other Public Works Street Resurfacing (miles) 3 2 4 5 Potholes Repaired 28 18 43 44 Parks and Recreation Athletic Field Permits Issued 113 28 28 63 Pavilion/Gazebo Permits Issued 167 151 202 153 Recreation Facility Attendance 267,066 286,357 328,495 367,665 Baseball/Softball Fields 24 26 26 26 Soccer/Football/Cricket/Disc Golf Fields 22 22 23 23 Basketball/Volleyball/Pickleball Courts 10 10 10 10 Pavilions/Gazebos 15 15 15 15 Library Volumes in Collection 99,744 103,544 109,392 114,715 Water New Connections 125 1,240 1,219 678 Water Main Breaks 7 3 4 - Average Daily Consumption (gallons) 3,106,694 3,625,151 3,719,076 3,543,448 Source: City Departments (1) Legislature passed a law that prohibits asking for value on permit application. * Covid related reduction in services 200 01/23/2024 Item 2. TABLE 21 129 2018 2019 2020 2021 2022 2023 617 443 500 577 402 397 155,666$ 242,535$ 242,535$ N/A N/A N/A 1,333 815 666 710 799 818 2,812 2,117 1,791 2,065 1,724 2,443 870 642 250 159 790 1,203 4,755 4,879 4,840 5,708 5,726 5,767 72 85 107 109 157 127 2,724 2,478 3,242 2,948 2,319 2,416 3 3 0.25 0.9 2 2 81 138 183 283 403 420 41 37 28 62 116 118 165 153 75 163 142 160 462,309 509,083 249,028* 285,110* 330,187 381,305 26 26 26 26 26 24 23 23 23 23 23 23 10 10 10 10 10 12 15 15 17 17 17 17 140,905 151,864 156,824 166,059 167,444 171,233 139 165 252 268 321 596 1 7 6 6 5 4 4,881,666 3,980,000 3,791,394 3,882,015 3,463,902 4,436,853 201 01/23/2024 Item 2. CITY OF WYLIE, TEXAS TABLE 22 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 130 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 3 3 3 3 3 3 3 3 4 4 Other Public Works Streets (miles) 194 200 205 212 243 250 250 272 250 304 Alleys (miles) 41 42 42 42 42 42 42 26 33 34 Traffic Signals 17 21 24 25 26 26 26 27 27 26 Parks and Recreation Acreage 877 886 886 916 910 910 910 910 910 910 Playgrounds 14 15 17 18 18 19 19 19 23 23 Recreation Facilities 3 4 4 4 4 4 4 4 4 4 Water Water Mains (miles) 157 157 158 161 161 185 225 198 188 190 Fire Hydrants 1,608 1,690 1,707 1,789 1,818 1,857 1,921 2,289 1,938 1,981 Number of service connections 12,894 14,134 15,353 16,031 16,171 17,103 17,499 17,470 17,643 18,388 Wastewater Sanitary Sewers (miles) 173 178 183 188 204 228 228 230 219 222 Education Wylie ISD Campuses in Wylie 19 19 20 20 20 20 20 20 20 20 Source: City Departments 202 01/23/2024 Item 2. City of Wylie,Texas Federal Single Audit Report Year Ended September 30,2023 203 01/23/2024 Item 2. Independent Auditor's Report on Internal Control over Financi al Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Perform ed in Accordance with Government Auditing Standards Honorable Mayor and Members of the City Council City of Wylie,Texas We have audited,in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the governmental activities,the business-type activities,the discretely presented component unit,each major fund,and the aggregate remaining fund information of City of Wylie,Texas (the City),as of and for the year ended September 30,2023,and the related notes to the financial statements,which collectively comprise the City's basic financial statements,and have issued our report thereon dated January 17,2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting (internal control)as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.Accordingly,we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct,misstatements on a timely basis.A material weakness is a deficiency,or a combination of deficiencies,in internal control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented,or detected and corrected on a timely basis.A significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.Given these limitations,during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.However,material weaknesses or significant deficiencies may exist that have not been identified. Report on Com pliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws,regulations, contracts,and grant agreements,noncompliance with which could have a direct and material effect on the financial statements.However,providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Weaver and Tidwell,L.L.P. 1800 Hughes Landing Blvd,Suite 400 I The Woodlands,Texas 77380 1 Main:713.800.1060 CPAsAND ADVISORS I WEAV ER.COM 204 01/23/2024 Item 2. Independent Auditor's Report on Compliance for Each M ajor Federal Program, Report on Internal Control over Compliance,and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance The Honorable Mayor and City Council City of Wylie,Texas Report on Compliance for Each M ajor Federal Program Opinion on Each Major Federal Program We have audited the City of Wylie,Texas (the City)'s compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended September 30,2023. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion,the City complied,in all material respects,with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30,2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS);the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards);and the audit requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance).Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities,in accordance with relevant ethical requirements relating to our audit.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation,and maintenance of effective internal control over compliance with the requirements of laws,statutes,regulations,rules and provisions of contracts or grant agreements applicable to the City's federal programs. Weaver and Tidwell,L.L.P. 1800 Hughes Landing Blvd,Suite 400 I The Woodlands,Texas 77380 3 Main:713.800.1060 CPA s A ND A D VISORS I W EAVER.CO M 205 01/23/2024 Item 2. The Honorable Mayor and City Council City of Wylie,Texas Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.Given these limitations,during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.However,material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance.Accordingly,no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.Accordingly,this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities,the business-type activities,the discretely-presented component unit,each major fund,and the aggregate remaining fund information of the City as of and for the year ended September 30,2023 and the related notes to the financial statements,which collectively comprise the City's basic financial statements.We issued our report thereon dated January 17,2024 which contained unmodified opinions on those financial statements.Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit of the 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 statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the schedule of expenditures of federal awards is fairly stated,in all material respects,in relation to the basic financial statements as a whole. WEAVER AND TIDWELL,L.L.P. The Woodlands,Texas January 17,2024 5 206 01/23/2024 Item 2. City of Wylie,Texas Schedule of Findings and Questioned Costs For the Year Ended September 30,2023 II.Findings Relating to the Financial Statements which are Required to be Reported in Accordance with Genera lly Acc epted Government Auditing Standards None 7 207 01/23/2024 Item 2. City of Wylie,Texas Summary of Prior Audit Findings For the Year Ended September 30,2023 IV.Summary of Prior Year Findings None 9 208 01/23/2024 Item 2. City of Wylie,Texas Notes to Schedule of Expenditures of Federal Awards For the Year Ended September 30,2023 1.Basis of Presentation The City accounts for most of its Federal grants in Special Revenue Funds.Special Revenue Funds are governmental funds which can be used to account for resources restricted to,or committed for,specific purposes by a granter.Generally,unused balances are returned to the granter at the close of specified project periods. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the modified accrual basis of accounting as described in Note 1 to the basic financial statements for the year ended September 30,2023. The City elected not to use the 10%de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. 11 209 01/23/2024 Item 2. City of Wylie City Council Meeting January 23, 2024 210 01/23/2024 Item 2. Overview Introduction Audit Process Audit Results Required Communications Financial Highlights Discussion 2 211 01/23/2024 Item 2. Weaver National Firm, Local Touch At Weaver, there are no “one-size-fits-all” solutions. We combine leading technical knowledge with specific industry experience to provide highly customized services tailored to each client’s needs. Best of the Best Firms (2022) 212 01/23/2024 Item 2. 6 Engagement Leadership John DeBurro, CPA Partner, Assurance Services 20+ years of public accounting experience Dedicated to serving public sector clients GFOA Special Review Committee Member 7+ years of public accounting and public sector experience Dedicated to serving public sector clients Available Throughout the Year to Discuss Issues Lauren Futch, CPA Manager, Assurance Services 213 01/23/2024 Item 2. Audit Process Audit Process 214 01/23/2024 Item 2. | 6 Engagement Timeline Continuous Communication Initial Audit Planning Interim Fieldwork Aug 28 -31 Final Fieldwork Nov 13–Dec 8 Audit Opinion Issued January 17 Council Meeting January 23 Discuss Developments/ Issues 215 01/23/2024 Item 2. Audit Process •The audit was performed in accordance with Generally Accepted Auditing Standards (GAAS), Generally Accepted Government Auditing Standards (GAGAS), and The Uniform Guidance. •The audit process was a risk-based approach in which we identified potential areas of risk that could lead to material misstatement of the financial statements. We tailored our audit programs and resources to specifically address areas of risk, such as: •Revenue recognition and related receivables •Capital projects, purchasing and compliance with bidding procedures •Payables, accrued liabilities, and expenditures •Cash and Investments •Long-term debt | 7 216 01/23/2024 Item 2. Audit Process •Walkthroughs of accounting controls over significant transaction cycles: A.Cash Disbursements and Purchases B.Payroll Disbursements (including TMRS data) C.Cash Receipts A.Utility Billing Receipts C. Parks and Recreation B.Municipal Court D. Other D.Budget and Financial Close Process •Tests of compliance with the Public Funds Investment Act •Control testing over cash disbursements and payroll | 8 Interim fieldwork and risk assessment were performed in August 2023. Procedures included: 217 01/23/2024 Item 2. Audit Process Testing account balances and current year activity using a combination of: analytics, vouching of material transactions, and sampling Performed Single Audit over the City’s major Federal program: Coronavirus State and Local Fiscal Recovery Funds Tested: Allowable Cost / Cost Principles Activities Allowed or Unallowed Period of Performance Reporting Assistance with preparation of the annual comprehensive financial report (ACFR) | 9 Final fieldwork-performed in November and December 2023 -Procedures included: 218 01/23/2024 Item 2. Audit Results 219 01/23/2024 Item 2. 11 Auditor Results •We issued the Independent Auditor’s Report on the financial statements –Unmodified (Clean) Opinion •We issued the Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards –No material weaknesses noted •We issued the Independent Auditor’s Report on Compliance for Each Major Federal Program, Report on Internal Control over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance –Unmodified (clean) opinion –No material weaknesses 220 01/23/2024 Item 2. 12 Auditor Communications for the year ended September 30, 2023 221 01/23/2024 Item 2. 13 Required Communications to Those in Charge of Governance Communication Results Generally accepted auditing standards The financial statements are the responsibility of the City. Our audit was designed to provide for reasonable rather than absolute assurance that the financial statements are free of material misstatement. Our responsibility is to express an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. The audit of the fiscal year 2023 financial statements is complete and we have issued an unmodified opinion. 222 01/23/2024 Item 2. 14 Required Communications to Those in Charge of Governance Communication Results Generally accepted government auditing standards In addition to the GAAS responsibilities, we are required to issue a written report on our consideration of internal controls and identify significant deficiencies, including material weaknesses, if any. Our reports do not provide assurance on internal controls. We design our audit to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a direct or material effect on the financial statements. We issue a written report on the results of these procedures; however, our report does not express an opinion on compliance. No findings noted. 223 01/23/2024 Item 2. 15 Required Communications to Those in Charge of Governance Communication Results Auditor’s Responsibility under The Uniform Guidance Our testing includes all major federal financial assistance programs. We report on such testing and disclose any significant deficiencies in internal control over compliance, including material weaknesses we identify. Our reports do not provide assurance on internal control over compliance. We perform procedures for the purpose of expressing opinions on whether major federal financial assistance programs have been administered in compliance with applicable laws and regulations. The audits of the fiscal year 2023 major federal financial assistance programs have been completed and we have issued an unmodified (clean) opinion. 224 01/23/2024 Item 2. Required Communications to Those in Charge of Governance Communication Results Unusual transactions and the adoption of new accounting principles The significant accounting policies used by the City are described in Note 1 to the financial statements. Pronouncements implemented in 2023 included GASB Statement No. 96, Subscription-Based Information Technology Arrangements. GASB 96 had no effect on the City’s FY2023 financial statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. | 16 225 01/23/2024 Item 2. Required Communications to Those in Charge of Governance Communication Results Fraud and illegal acts No material errors, irregularities, or illegal acts were noted. Material weakness in internal control No material weaknesses noted. Other information contained in documents containing audited financial statements We provided an “in relation to opinion” on supplementary information accompanying the financial statements. We performed limited procedures on the required supplementary information. We did not provide any assurance on this information. The Introductory and Statistical sections were both unaudited. Management judgments and accounting estimates Management’s estimates of net pension and OPEB liabilities, allowance for uncollectible receivables, and estimated useful lives for capital assets were evaluated and determined to be reasonable in relation to the financial statements as a whole. | 17 226 01/23/2024 Item 2. Required Communications to Those in Charge of Governance Communication Results Difficulties encountered No difficulties or disagreements arose during the course of our audit. Management representations We requested certain representations from management that were included in the management representation letter. Management consultations We are not aware of management consulting with other accountants for a second opinion. Auditor independence No independence issues noted. Audit adjustments Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.There was one passed adjustment noted during the audit due to the timing of an accrual for trash disposal charges. We made no material audit adjustments as a result of our audit procedures. | 18 227 01/23/2024 Item 2. 19 Financial Highlights 228 01/23/2024 Item 2. 20 Financial Highlights Comparison of Revenues by Source Governmental Funds Revenues for the FY 2023 totaled $76.7 million, a $10.8 million or 16.4% increase. This increase is attributed primarily to a $4.2 million increase in intergovernmental revenues, a $2.5 million increase in interest income and increases in both sales taxes ($1.3 million) and ad valorem taxes ($1.2 million). 49%19% 4% 4% 11% 7%4%2% FY 2023 Revenues Ad valorem taxes Sales taxes Franchise fees Licenses and permits Intergovernmental Service fees Interest income Other income 56% 20% 4% 3%7% 8%0%2% FY 2022 Revenues Ad valorem taxes Sales taxes Franchise fees Licenses and permits Intergovernmental Service fees Interest income Other income 229 01/23/2024 Item 2. 21 Financial Highlights Comparison of Governmental Funds Revenues by Source (3-year comparison in millions of dollars) $37.9 $14.2 $3.0 $2.7 $8.8 $5.6 $4.5 $36.7 $12.9 $2.9 $2.2 $4.6 $5.1 $1.5 $35.6 $11.8 $2.7 $2.0 $5.2 $4.9 $1.2 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2023 2022 2021 230 01/23/2024 Item 2. 22 Financial Highlights Comparison of Governmental Expenditures by Fund (In millions of dollars) $50.9 $9.4 $2.9 $4.7 Fiscal Year 2023 General Fund Debt Service Fund Capital Projects Fund Nomajor Funds $46.7 $8.9 $7.6 $4.0 Fiscal Year 2022 General Fund Debt Service Fund Capital Projects Fund Nomajor Funds Governmental Funds Expenditures for FY2023 totaled $67.9 million, a $0.7 million or 1.0% increase. •Capital outlay expenditures decreased $4.8 million. •Public safety expenditures increased $3.3 million. •General government, Streets, debt service and community service costs each increased by less than $1 million.231 01/23/2024 Item 2. 23 Financial Highlights Comparison of Governmental Funds Expenditures * *(3-year comparison in millions of dollars) $12.0 $28.8 $1.0 $4.3 $9.1 $2.8 $9.9 $11.6 $25.5 $1.0 $3.6 $8.5 $7.6 $9.4 $11.3 $23.0 $1.1 $2.9 $7.8 $4.9 $9.0 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 General Government Public Safety Urban Development Streets Community Service Capital Outlay Debt service 2023 2022 2021 232 01/23/2024 Item 2. 24 Financial Highlights Fund Balances Governmental Funds’ Fund Balances The City’s governmental funds reported a combined ending fund balance of $95.0 million as of September 30, 2023 as follows: •General Fund $29,638,606 •Debt Service 532,087 •Capital Projects 54,467,945 •Other Funds 10,399,682 $95,038,320 31.2% 0.5% 57.4% 10.9%General Fund Debt Service Fund Capital Projects Fund Nonmajor Funds •Governmental funds’ fund balance increased by $28.8 million, primarily due to a $30.2 million increase in the Capital Projects Fund, the result of $16.0 million general obligation bonds issued and a $12.1 million transfer from the General Fund. •Unassigned fund balance in the General Fund ($28.6 million) represents 56.1% of general fund expenditures.233 01/23/2024 Item 2. General Fund Budget vs Actual | 25 $44,000,000 $46,000,000 $48,000,000 $50,000,000 $52,000,000 $54,000,000 $56,000,000 $58,000,000 revenues expenditures 48,903,112 54,187,530 55,046,500 55,130,094 57,801,429 50,904,720 General Fund Budget and Actual original amended actual Overall, positive budgetary variance of $7.2 million: •Actual Revenues exceeded budget by $2.8 million. •Actual Expenditures were $4.2 million below budget. 234 01/23/2024 Item 2. Water and Sewer Fund- Current and Prior Year | 26 Net position increased by $8.4 million over prior year •Operating revenues increased $2.2 million –primarily due to rate increases and increased water consumption. •Operating expenses increased by $2.3 million –primarily due to a $830K increase in water costs and a $1.4 million increase wastewater treatment costs. •Nonoperating revenue –increased $1.3 million –primarily due to a $1.2 million increase in interest income. 2023 2022 $ Change % Change Operating revenues 29,592,808$ 27,371,622$ 2,221,186$ 8% Operating expenses (22,831,555) (20,526,535) 2,305,020 11% (Net) Nonoperating revenue (expense)1,212,627 (91,910) 1,304,537 -1419% Transfers and contributions 402,886 700,997 (298,111) -43% Change in net position 8,376,766$ 7,454,174$ 922,592 12% Statement of Revenues, Expenses and Changes in Net Position- Water and Sewer Fund 235 01/23/2024 Item 2. 27 We appreciate the opportunity to work with City of Wylie and look forward to our continued relationship. 236 01/23/2024 Item 2. Contact Us John DeBurro, CPA Engagement Partner 972.448.6970 | john.deburro@weaver.com Lauren Futch, CPA Audit Manager 972.448.9867 | lauren.futch@weaver.com Discussion 237 01/23/2024 Item 2.