LAMESATEXAS CITY COANCIL AGENDA TRADEC CORHIDOECHOSING NOTICE IS GIVEN THAT THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, WILL MEET IN A REGULARLY SCHEDULED MEETING AT 5:30 P.M. ON TUESDAY, JUNE 17, 2025, 601 SOUTH FIRST STREET, FOR THE PURPOSE OF CONSIDERING AND TAKING OFFICIAL ACTION ON THE FOLLOWING ITEMS 1. CALL TO ORDER: 2. INVOCATION: 3. CONSENT AGENDA: All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. a. APPROVAL OF THE MINUTES: Approval of the minutes of the City Council regular meeting held on May 13, 2025. b. BILLS FOR MAY AND JUNE 2025: Approval of the bills paid by thé City of Lamesa for the month of May 2025. 4. BUDGET AMENDMENT IV: City Council to consider amending Ordinance 0-11- 24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is. to recognize the sale of a 2006 Fire Truck ($40,000.00) and a Fire Brush Truck ($23,250.00). (City Manager & Finance Director) 5. BUDGET AMENDMENT V: City Council to consider amending Ordinance 0-11- 24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is requesting a Budget Amendment for emergency repair for the landfill compactor. (City Manager & Finance Director) 6. RESOLUTION DESIGNATING AUTHORIZED SIGNATORIES: City Council to approve a resolution designating authorized signatories. The approved signatories on each account will include: Joe Hines, City Manager, Hayden Davis, Mayor, Josh Peterson, Police Chief and Betty Conde, City Secretary. (Finance Director) 7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, APPROVING THE USE OF CREDIT CARDS ISSUED BY CITY BANK TO BE SECURED BY FUNDS OF THE CITY OF LAMESA ON DEPOSIT WITH CITY BANK IN THE FORM OF A CERTIFICATE OF DEPOSIT, AND TO CREATE AND MAINTAIN AN ACCOUNT FOR CREDIT CARD PURCHASES: City Council to consider approving a resolution for the use of credit cards issued by City Bank to be secured by funds of the City of Lamesa in the form of a Certificate of Deposit and create and maintain an account for credit card Purchases. (City Manager) 8. ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2024: City Council to consider accepting annual financial report as well as authorizing publication of audit report for Fiscal Year ending September 30, 2024, from Terry & King, CPAS, P.C. (City Manager, Finance Director, and City Auditor) 9. LETTER OF ENGAGEMENT FOR AUDIT SERVICES FOR FY 2025: City Council to consider approving the letter of engagement for Audit Services with Terry & King CPAS, P.C. for fiscal year 2025. (Finance Director & City Manager) 10.DECLARE REGULARLY SCHEDULED MEETINGS FOR BUDGET: City Council to declare regularly scheduled meetings for the following dates. (City Manager) 11.APPOINMENT - KEEP LAMESA BEAUTIFUL: City Council to consider taking action regarding the appointment of Laura Rubio to the Keep Lamesa Beautiful. for an un-expired term ending on December 31, 2027 (KLB) 12.APPOINTMENT = PARK BOARD: Consider appointing six (6) members to serve five (5) year terms ending on December 31, 2030. (City Staff) 13.DISCUSSION = PARKS AND RECREATION: City Council to discuss Parks and Buildings, and Recreational facilities. (City Staff) 14.CITY STAFF REPORTS: a. UTILITIES DIRECTOR REPORT: Utilities Director to report on the city's recent events. b. LAMESA MUNICIPAL GOLF COURE: Golf Course Director to report on the city's recent events. C. POLICE CHIEF REPORT: Police Chief to report on City of Lamessa Code of Ordinance Chapter 12 "Traffic and Vehicles". 15.FINANCIAL REPORT: Finance Director to report on the city's finances. 16.CITY MANAGER REPORT: City Manager to report on current activities and answer questions from the City Council. 17.MAYOR REPORT: Mayor to report on current activities and to answer questions from City Council. 18.EXECUTIVE SESSION: Council to consider convening into closed executive session regarding: Section 551.074 Texas Government Code: Consider meeting in closed executive session to discuss personnel matters regarding to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee. 19.ADJOURNMENT: The next regularly scheduled meeting of the City Council of the City ofLamesa will be July 15, 2025, at 5:30 P.M. GLOSED MEETINGS MEETING AGCESSIBILITY The City Council reserves the right to Upon request, auxiliary aids and services adjourn into closed session at any time will be provided to an individual with a during this meeting to discuss any of the disability to allow them to effectively matters listed above, as authorized by participate in the city council meeting. Those Texas Government Code Section 551.071 requesting auxiliary aids or services should (Consultation with Attorney), 551.072 notify the contact person listed below at (Deliberations about Real Property), least twenty-four hours prior to the meeting 551.073 (Deliberations about Gifts and by mail, telephone, or RELAY Texas (1-800- Donations), 551.074 (Personnel Matters), 735-2989) 551.076 (Deliberations about Security Contact: Betty Conde at 806-872-4322 Devices) and 551.087 (Economic Development). 3 601 South First Street, Lamesa, Texas 79331 PUBLIG PARTICIPATION Telephone - (806) 872-4322 The meeting will be held pursuant to the Fax - 806) 872-4338 provisions. of the Texas Open Meetings Act (Govt. Code, Chapter 551). Discussion and actions are limited to the agenda items listed above. Persons desiring to address the City Council or express their opinion about a particular item on this agenda should notify the City Secretary before the meeting. Persons desiring to present other business or discuss matters not on this agenda should submit a request in writing to the City Secretary by the end of business hours on the Wednesday before the next meeting to be considered for inclusion on that agenda. CERTIFICATION OF NOTIGE I certify this agenda was posted at the City Hall, 601 South First Street, Lamesa, Texas at 4:45 p.m., June 13, 2025, in accordance with Chapter LAMESATEXAS 551.041 of the Government Code. TMADECOIHIDOICIOEING Betty Conde City Secretary City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEMS: 1&2 1. CALL TO ORDER: Announcement by the Mayor. This meeting is being held in accordance with the provisions of the Texas Open Meetings Act (Govt. Code, Chapter 551). Discussion and actions are limited to the agenda items as posted. Persons desiring to address the City Council or express their opinion about a particular item on this agenda should complete a request at this time. Persons desiring to present other business or discuss matters not on this agenda should submit a request in writing to the City Secretary to be considered for inclusion on the agenda of the next meeting. A quorum being present as evidenced by the presence of members of the City Council, this meeting is hereby called to order." - The following members are present: HAYDEN DAVIS Mayor JOSEPH SMITH Council Member - District 1 FRED VERA Council Member - District 2 GLORIA V. RODRIGUEZ Council Member - District 3 DANNY JACOBS Council Member - District 4 BOBBY G. GONZALES Council Member - District 5 JAMES GRAYSON Council Member - District 6 Mayor/Pro-tem City Staff members present at the meeting: JOE HINES City Manager BETTY CONDE City Secretary RUSSELL CASSELBERRY Attorney Members of the press present at the meeting: Members of the public present at the meeting: 2. INVOCATION: AND PLEDGE OF ALLEGIANCE. City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 3 SUBJECT: CONSENT AGENDA ITEMS PROCEEDING: Approval SUBMITTED BY: City Staff SUMMARY STATEMENT All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member SO requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. a. APPROVAL OF THE MINUTES: Approval of the minutes of the council regular meeting held on May 13, 2025 b. BILLS FOR MAY AND JUNE 2025: Approval of the bills paid by the City of Lamesa for the month of May and June 2025 COUNCIL ACTION DISCUSSION Motion by Council Member to approve Items a & b. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM These items are considered non-controversial but do require formal council approval. If a council member objects to a consent item, it is removed from the list and separate action is taken on the item(s). If a council member questions a consent item, but not sO strongly as to require that it be removed from the list, his/her "no" vote or abstention can be entered in the minutes when the consent vote is taken. Recommend approval. THE STATE OF TEXAS K COUNTY OF DAWSON K CITY OF LAMESA K MINUTES OF THE CITY COUNCIL REGULAR CALLED MEETING: May 13, 2025 On this the 13th day of May 2025, at 5:30 P.M., there came on and was held a regularly called meeting of the City Council of the City of Lamesa, Dawson County, Texas. Notice of such meeting having been posted at the City Hall at 601 South First Street in the City of Lamesa, Texas in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551). The following items were listed on the notice and the following proceedings were had, viz.: CALL TO ORDER: Mayor Stevens announced that the meeting was being held in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551), and that discussion and actions are limited to the agenda items as posted. A quorum being present as evidenced by the presence 5 City Council Members were present: JOSH STEVENS Mayor VACANT Council Member - District 1 FRED VERA Council Member - District 2 GLORIA V. RODRIGUEZ Council Member - District 3 DANNY JACOBS Council Member - District 4 BOBBY G. GONZALES Council Member District 5 JAMES GRAYSON Council Member - District 6 City staff members present at the meeting: JOE HINES CITY MANAGER BETTY CONDE CITY SECRETARY RUSSELL CASSELBERRY CITY ATTORNEY Members of the press present at the meeting: Mary Elizabeth Members of the public present at the meeting: Wayne Chapman Robert Ramirez Sandy Trevino Brant Stewart Brian Beck Larry Duyck Josh Peterson Matt Hog Irma Ramirez Sonia Robles Mona Ferguson Joseph Smith Dionicio Garza Jr Carter Schildknecht Kisa Steves Bella Stevens Haydin Davis Ron Mann Randel Terry Ryan King INVOCATION: Bobby Gonzales CONSENT AGENDA: All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion oft these items unless a Council Member requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. a. APPROVAL OF THE MINUTES: Approval of the minutes of the City Council regular meeting held on April 15, 2025. Motion by Council Member Bobby Gonzales to approve Item 3a. Motion seconded by Council Member and up James Grayson on being put to a vote the motion passed. VOTING: "AYE" 6 "NAY" ABSTAIN" DISCUSSION AND POSSIBLE ACTION TO AMEND CHAPTER 12 TRAFFIC AND VEHICLES; ARTICLE 12.04, STOPPING, STANDING AND PARKING AND ARTICLE 12.05 TRUCKS: City Council to discuss and take possible action to amend Chapter 12 Traffic and Vehicles; Article 12.05 trucks of the Code of Ordinances oft the City of Lamesa. (City Manager). No action taken A RESOLUTION TO ENTER A MULTIPLE USE AGREEMENT WITH THE DEPARTMENT OF TRANSPORTATION TO PERMIT THE INSTALLATION A AND OPERATION OF AUTOMATED LICENSE PLATE RECOGNITION: City Council to consider authorizing a multiple use agreement with TxDot to permit the installation and operation of automated license plate recognition cameras at the following intersections: Texas Highway 137 and North 22nd Street for South bound traffic; Texas Highway 137 and North 22nd Street for North bound traffic; Seminole Road and Weaver Road for East bound traffic; Texas Highway 137 and South Houston Avenue for North bound traffic; South Dallas Avenue and South Elgin Avenue for North bound traffic; and Lubbock Highway and North 27th Street for South Bound traffic. (Chief Josh Peterson) Motion by Council Member Danny Jacobs to authorize a multiple use agreement with TxDot to permit the installation and operation of automated license plate recognition cameras at the following intersections: Texas Highway 137 and North 22nd Street for South bound traffic; Texas Highway 137 and North 22nd Street for North bound traffic; Seminole Road and Weaver Road for East bound traffic; Texas Highway 137 and South Houston Avenue for North bound traffic; South Dallas Avenue and South Elgin Avenue for North bound traffic; and Lubbock Highway and North 27th Street for South Bound traffic. Motion seconded by Council Member James Grayson and upon being put to a vote the motion passed VOTING: "AYE" 6 "NAY" "ABSTAIN" BUDGET AMENDMENT IV: City Council to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is. to recognize the sale of a 2006 Fire Truck ($40,000.00) and a Fire Brush Truck ($23,250.00). (City Manager & Finance Director) Motion by Council Member Bobby Gonzales to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member Danny Jacobs and upon being put to a vote the motion passed. VOTING: "AYE"6 "NAY" ABSTAIN" BUDGET AMENDMENT V: City Council to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is requesting a Budget Amendment for emergency repair for the landfill compactor. (City Manager & Finance Director) Motion by Council Member Danny Jacobs to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member Bobby Gonzales and upon being put to a vote the motion passed. VOTING: AYE" 6 "NAY" "ABSTAIN" CANVASS CITY'S GENERAL ELECTION RETURNS: The council tabulated the returns from the May 3, 2025, City General Election, and the following votes were cast. Motion by Council Member Bobby Gonzales to pass a resolution canvassing the returns of the May 3, 2025, City of Lamesa General Election, declaring Hayden Davis winner of the May 3, 2025, General Election. Motion seconded by Council Member James Grayson and upon being put to a vote the motion passed. CANVASS CITY'S SPECIAL ELECTION RETURNS: The council tabulated the returns from the May 3, 2025, City Special Election, and the following votes were cast. Motion by Council Member Danny Jacobs to pass a resolution canvassing the returns of the May 3, 2025, City of Lamesa Special Election, declaring Joseph Smith winner of the May 3, 2025, Special Election. Motion seconded by Council Member Gloria Rodriquez and upon being put to a vote the motion passed. VOTING: "AYE"6 "NAY" ABSTAIN" OATH OF OFFICE - NEWLY ELECTED MAYOR: The city attorney to administer Oath of Office to the newly elected Mayor from the May 3, 2025, City General Election. City Attorney Russell Casselberry administered the oath. OATH OF OFFICE - NEWLY ELECTED COUNCIL MEMBER: The city attorney to administer Oath of Office to the newly elected Council Member from the May 3, 2025, City Special Election. City Attorney Russell Casselberry administered the oath. MAYOR PRO-TEM: The city council to elect a mayor pro-tem for a one-year term of office. Nominations for the office of Mayor Pro-Tem were called for by Mayor Stevens. James Grayson was nominated for the office of Mayor Pro-Tem by Council Member Fred Vera; then James Grayson was nominated for the office of Mayor Pro-Tem by Council Member Danny Jacobs and upon being put to a vote the motion passed. OATH OF OFFICE - MAYOR PRO-TEM: The city attorney to administer the oath of office to the newly elected mayor pro-tem. Nominations for the office of Mayor Pro-Tem were called for by Mayor Stevens. City Attorney Russell Casselberry administered the oath. CITY STAFF REPORTS: b. PARKS, STREETS, SANTATIONIANDFLL REPORT: Director to report on the city's recent events. C. UTILITIES DIRECTOR REPORT: Utilities Director to report on the city's recent events. CITY MANAGER REPORT: City Manager to report on current activities and answer questions from the City Council. MAYOR REPORT: Mayor to report on current activities and to answer questions from City Council. EXPRESSION OF APPRECIATION: Consider passing a resolution of appreciation of Josh Stevens for his service as Mayor. Motion by Council Member James Grayson to pass a resolution. Motion seconded by Council Member Bobby Gonzales and upon being put to a vote the motion passed. VOTING: "AYE" 6 "NAY" ABSTAIN" ADJOURNMENT: The next regularly scheduled meeting ofthe City Council of the City of Lamesa will be June 17, 2025, at 5:30 P.M. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor 5-17-2025 9:42 AM DETAIL LISTING PAGE: EUND 01 -GENERAL EUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT : N/A ACCOUNTS: 1001 THRU 1001 POST DATE TRAN # REFERENCE PACKET= -DESCRIPTION-: VEND INV/JE # NOTE --AMOUNT-- - -BALANCE- 1001 CASH IN BANK BEGINNING BALANCE 4/01/25 4/01 A67088 CHK: 218666 22880 COPE SAND & GRAVEL 1520 200.00CR 200.00CR 4/01/25 4/01 A67089 CHK: 218667 22880 DAVIS EURNITURE COMPANY 1600 1,160.67CR 1,360.67CR 4/01/25 4/01 A67091 CHK: 218669 22880 ATMOS ENERGY CORPORATION 1730 3,563.47CR 4,924.14CR 4/01/25 4/01 A67092 CHK: 218670 22880 GIBBS PRINTING 2030 231.30CR 5,155.44CR 4/01/25 4/01 A67093 CHK: 218671 22880 MAYEIELD PAPER COMPANY, 2957 862.45CR 6,017.89CR 4/01/25 4/01 A67095 CHK: 218673 22880 RICKY MINJAREZ 3507 430.00CR 6,447.89CR 4/01/25 4/01 A67096 CAK: 218674 22880 TEXAS COMMISSION ON ENVI 3977 3,935.40CR 10,383.29CR 4/01/25 4/01 A67097 CHK: 218675 22880 WATERMASTER IRRIGATION 4129 461.58CR 10,844.87CR 4/01/25 4/01 A67098 CHK: 218676 22880 VII ND EAM COMMUNICATION 4460 608.08CR 11,452.95CR 4/01/25 4/01 A67099 CHK: 218677 22880 M & M EXTERMINATORS 1470 449.00CR 11,901.95CR 4/01/25 4/01 A67100 CHK: 218678 22880 LOWE'S 4970 536.58CR 12,438.53CR 4/01/25 4/01 A67101 CHK: 218679 22880 TASCOSA OFFICE MACHINES, 5115 2,517.79CR 14,956.32CR 4/01/25 4/01 A67104 CHK: 218682 22880 AUTOZONE, INC. 5593 2,361.32CR 17,317.64CR 4/01/25 4/01 A67105 CHK: 218683 22880 ELECTION SYSTEMS & SOFTW 5628 97.79CR 17,415.43CR 4/01/25 4/01 A67106 CHK: 218684 22880 GREAT AMERICA FINANCIAL 5734 59.55CR 17,474.98CR 4/01/25 4/01 A67107 CHK: 218685 22880 FRANKLIN & SON, INC. 5840 226.50CR 17,701.48CR 4/01/25 4/01 A67108 CHK: 218686 22880 JOHN DEERE FINANCIAL 5861 139.98CR 17,841.46CR 4/01/25 4/01 A67109 CHK: 218687 22880 GRAINGER 5898 46.89CR 17,888.35CR 4/01/25 4/01 A67110 CHK: 218688 22880 ULINE, INC. 6377 160.45CR 18,048.B0CR 4/01/25 4/01 A67111 CHK: 218689 22880 DE LAGE LANDEN PUBLIC FI 6511 0.20CR 18,049.00CR 4/01/25 4/01 A67112 CHK: 218690 22880 ETC LITE, LLC 6633 210.00CR 18,259.00CR 4/01/25 4/01 A67113 CHK: 218691 22880 NORMAN GARZA 6729 1,300.00CR 19,559.00CR 4/01/25 4/01 A67114 CHK: 218692 22880 MCCREARY, VESELKA, BRAGG 6774 1,830.21CR 21,389.21CR 4/01/25 4/01 A67115 CHK: 218693 22880 MITCH HALL LAMESA, LLC 6799 14.03CR 21,403.24CR 4/01/25 4/01 A67116 CHK: 218694 22880 RELIANCE ENVIRONMENTAL T 7165 4,836.56CR 26,239.80CR 4/01/25 4/01 A67117 CHK: 218695 22880 HD SUPPLY, INC 7241 171.96CR 26,411.76CR 4/01/25 4/01 A67118 CHK: 218696 22880 COMPUTER TRANSITION SERV 7304 72.75CR 26,484.51CR 4/01/25 4/01 A67119 CHK: 218697 22880 WININGS ENTERPRISES, LLC 7306 400.00CR 26,884.51CR 4/01/25 4/01 A67120 CHK: 218698 22880 CASCO INDUSTRIES, INC 7465 409.00CR 27,293.51CR 4/01/25 4/01 A67121 DFT: 000294 22868 INTERNAL REVENUE SERVICE 5832 162.62CR 27,456.13CR 4/01/25 4/01 A67122 CHK: 218646 22868 CAPROCK FEDERAL CREDIT U 1390 115.44CR 27,571.57CR 4/01/25 4/01 A67123 CHK: 218647 22873 FULBRIGHT 6 CASSELBERRY 2090 2,210.20CR 29,781.77CR 4/01/25 4/01 A67124 CHK: 218648 22873 PAYROLL FUND 3270 392.50CR 30,174.27CR 4/01/25 4/01 A67125 CHK: 218649 22873 SENIOR CITIZENS 3675 3,750.00CR 33,924.27CR 4/01/25 4/01 A67126 CHK: 218650 22874 DAWSON CO. LIBRARY 1611 630.00CR 34,554.27CR 4/01/25 4/01 A67127 CHK: 218651 22874 SOUTH PLAINS PUBLIC HEAL 3730 2,4 455.22CR 37,009.49CR 4/01/25 4/01 A67128 CHK: 218652 22874 VOLUNTEER FIRE DEPARTMEN 4090 400.00CR 37,409.49CR 4/01/25 4/01 A67129 CHK: 218653 22874 CHAPMAN, WAYNE 5150 200.00CR 37,609.49CR 4/01/25 4/01 A67130 CHK: 218654 22874 DUYCK LARRY 5777 200.00CR 37,809.49CR 4/01/25 4/01 A67131 CHK: 218655 22874 JASON WILEY 6025 200.00CR 38,009.49CR 4/01/25 4/01 A67132 CHK: 218656 22874 KEVIN HENRICKS 6610 200.00CR 38,209.49CR 4/01/25 4/01 A67133 CHK: 218657 22874 RANDALL DAVIS 6696 200.00CR 38,409.49CR 4/01/25 4/01 A67134 CHK: 218658 22874 JEFFREY TVEIT 6873 200.00CR 38,609.49CR 5-17-2025 9:42 AM DETAIL LISTING PAGE: FUND 01 -GENERAL EUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT : N/A ACCOUNTS: 1001 THRO 1001 POST DATE TRAN # REFERENCE PACKET= -DESCRIPTION- VEND INV/JE NOTE --AMOUNT-=- BALANCE= 1001 CASH IN BANK CONTINUED ) 4/01/25 4/01 A67135 CHK: 218659 22874 KENNETH STANTON 7071 200.00CR 38,809.49CR 4/01/25 4/01 A67136 CHK: 218660 22874 INSURICA TX INSURNACE SE 7197 1,375.00CR 40,184.49CR 4/01/25 4/01 A67137 CHK: 218661 22874 MANUEL OLIVO 7404 200.00CR 40,384.49CR 4/01/25 4/01 A67138 CHK: 218662 22878 ENER-TEL SERVICES 6785 40.00CR 40,424.49CR 4/01/25 4/01 A67139 CHK: 218663 22878 NIKOLE GARCIA 7234 24.23CR 40,448.72CR 4/01/25 4/01 A67140 CHK: 218664 22878 ARIEL GUTIERREZ 7477 10.21CR 40,458.93CR 4/01/25 4/01 A67141 CHK: 218665 22878 KRISTEN RAMOS 7478 5.94CR 40,464.87CR 4/03/25 4/03 A67166 DET: 000295 22886 TEXAS MUNICIPAL RETIREME 3973 18,981.02CR 59,445.89CR 4/03/25 4/03 A67167 DET: 000296 22886 INTERNAL REVENUE SERVICE 5832 38,887.75CR 98,333.64CR 4/03/25 4/03 A67168 DFT: 000297 22886 NATIONWIDE INVESTMENT SE 7211 445.00CR 98,778.64CR 4/03/25 4/03 A67169 DET: 000298 22886 MATHER & STROHL ADMINIST 7344 883.01CR 99,661.65CR 4/03/25 4/03 A67170 CHK: 218728 22886 CAPR ROCK E DERAL CREDIT U 1390 8,908.38CR 108,570.03CR 4/03/25 4/03 A67171 CHK: 218729 22886 PAYROLL EUND 3270 120,475.02CR 229,045.05CR 4/03/25 4/03 A67172 CHK: 218730 22886 JAE FITNESS 6023 221.76CR 229,266.81CR 4/03/25 4/03 A67173 CHK: 218731 22886 TX CHILD SUPPORT SDU 6905 271.09CR 229,537.90CR 4/03/25 4/03 A67174 CHK: 218732 22886 TX CHILD SUPPORT SDU 7349 185.54CR 229,723.44CR 4/03/25 4/03 A67175 CHK: 218733 22886 TX CHILD SUPPORT SDU 7350 233.17CR 229,956.61CR 4/03/25 4/03 A67176 CHK: 218734 22886 TX CHILD SUPPORT SDU 7368 148.62CR 230,105.23CR 4/03/25 4/03 A67177 CHK: 218735 22886 TEXAS CHILD SUPPORT SDU 7468 432.00CR 230,537.23CR 4/03/25 4/03 A67178 CHK: 218736 22886 TEXAS CHILD SUP PORT DISB 7469 76.34CR 230,613.57CR 4/03/25 4/03 A67179 CHK: 218724 22884 CONSOLIDATED SPECIAL EUN 1517 52,000.00CR 282,613.57CR 4/03/25 4/03 A67181 CHK: 218726 22884 LISHA LAND 7058 44.01CR 282,657.5BCR 4/03/25 4/03 A67182 CHK: 218727 22884 LAMESA ANIMAL SHELTER 7223 4,166.66CR 286,824.24CR 4/03/25 4/03 A67183 CHK: 218699 22877 AFLAC INSURANCE 1020 5,195.54CR 292,019.78CR 4/03/25 4/03 A67184 CHK: 218700 22877 BROCK VETERINARY CLINIC, 1302 955.90CR 292,975.68CR 4/03/25 4/03 A67185 CHK: 218701 22877 CANADIAN RIVER MUNICIPAL 1385 61,380.12CR 354,355.80CR 4/03/25 4/03 A67186 CHK: 218702 22877 LAMESA TIRE & BATTERY. I 2645 2,230.00CR 356,585.80CR 4/03/25 4/03 A67187 CHK: 218703 22877 MAYEIELD PAPER COMPANY, 2957 719.51CR 357,305.31CR 4/03/25 4/03 A67188 CHK: 218704 22877 POSTMASTER 3390 3,350.00CR 360,655.31CR 4/03/25 4/03 A67189 CHK: 218705 22877 SOUTH PLAINS COMMUNICATI 3729 2,536.00CR 363,191.31CR 4/03/25 4/03 A67191 CHK: 218707 22877 STATE COMPTROLLER 3789 842.80CR 364,034.11CR 4/03/25 4/03 A67192 CHK: 218708 22877 LEGAL SHIELD 5900 212.44CR 364,246.55CR 4/03/25 4/03 A67193 CHK: 218709 22877 NEW YORK LIFE 5921 139.92CR 364,386.47CR 4/03/25 4/03 A67194 CHK: 218710 22877 LONGLEY DIESEL à EQUIPME 6039 1,078.50CR 365,464.97CR 4/03/25 4/03 A67195 CHK: 218711 22877 SIERRA SPRINGS 6114 104.46CR 365,569.43CR 4/03/25 4/03 A67196 CHK: 218712 22877 MUNICIPAL EMERGENCY SERV 6427 229.54CR 365,798.97CR 4/03/25 4/03 A67197 CHK: 218713 22877 TIECO INDUSTRIES, INC. 6783 538.97CR 366,337.94CR 4/03/25 4/03 A67198 CHK: 218714 22877 CORE AND MAIN LP 7093 2, 954.88CR 369,292.82CR 4/03/25 4/03 A67199 CHK: 218715 22877 IDEXX DISTRIBUTION, INC 7178 2,258.54CR 371,551.36CR 4/03/25 4/03 A67200 CHK: 218716 22877 COMPUTER TRANSITION SERV 7304 13,389.65CR 384,941.01CR 4/03/25 4/03 A67205 CHK: 218721 22877 BLUE CROSS BLUE SHIELD o 7340 65,388.64CR 450,329.65CR 4/03/25 4/03 A67206 CHK: 218722 22877 ABCO FIRE ALARM LLC 7389 678.19CR 451,007.84CR 4/03/25 4/03 A67207 CHK: 218723 22877 A-7 AUSTIN LLC DBA AUS 8482 2,247.17CR 453,255.01CR 4/08/25 4/08 A67424 CHK: 218739 22901 LAMESA CHAMBER OF COMMER 1457 400.00CR 453,6 655.01CR 4/08/25 4/08 A67425 CHK: 218740 22901 CLAIBORNE'S THRIFTWAY 1480 83.88CR 453,738.89CR 4/08/25 4/08 A67426 CHK: 218741 22901 HELENA AGRI-ENTERPRISES, 2260 229.10CR 453,967.99CR 4/08/25 4/08 A67427 CHK: 218742 22901 WINDSTREAM COMMUNICATION 4460 76.93CR 454,044.92CR 5-17-2025 9:42 AM DETAIL LISTING PAGE: FUND 01 -GENERAL FUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT N/A ACCOUNTS: 1001 THRU 1001 POST DATE TRAN # REFERENCE K ET -DESCRIPTI ION= VEND INV/JE # NOTE -AMOUNT--- -BALANCE- 1001 CASH IN BANK CONTINUED ) 4/08/25 4/08 A67428 CHK: 218743 22901 NORTHERN TOOL & EQUIPMEN 6434 72.71CR 454,117.63CR 4/08/25 4/08 A67429 CHK: 218744 22901 KWIK KAR OIL 6 LUBE 6691 794.15CR 454,911.78CR 4/08/25 4/08 A67430 CHK: 218745 22901 CHASE 6858 4,675.40CR 459,587.18CR 4/08/25 4/08 A67431 CHK: 218746 22901 BDP INDUSTRIES INC 6924 3,262.42CR 462,849.60CR 4/08/25 4/08 A67432 CHK: 218747 22901 DC SUPPLY, LLC 7039 257.24CR 463,106.84CR 4/08/25 4/08 A67433 CHK: 218748 22901 EUROFINS ENVIRONMENT TES 7174 2,253.25CR 465,360.09CR 4/08/25 4/08 A67435 CHK: 218750 22901 PVS DX INC. 7335 210.00CR 465,570.09CR 4/08/25 4/08 A67436 CHK: 218737 22899 LAMESA RENTAL STORAGE 5601 210.00CR 465,780.09CR 4/08/25 4/08 A67437 CHK: 218738 22899 HD SUPPLY, INC 7241 103.68CR 465,883.77CR 4/11/25 4/11 A67482 CHK: 218754 22916 AT & T MOBILITY 0885 143.48CR 466,027.25CR 4/11/25 4/11 A67483 CHK: 218755 22916 B 6 J WELDING SUPPLY 1180 213.30CR 466,240.55CR 4/11/25 4/11 A67484 CHK: 218756 22916 BRUCKNER'S TRUCK SALES, 1340 916.16CR 467,156.71CR 4/11/25 4/11 A67485 CHK: 218757 22916 GEBO'S DIST RIBUTING CO., 2000 4,900.19CR 472,056.90CR 4/11/25 4/11 A67489 CHK: 218761 22916 HIGGINBOTHAM'S GENERAL 0 2180 3,437.14CR 475,494.04CR 4/11/25 4/11 A67492 CHK: 218764 22916 LAMESA BEARING, INC. 2480 490.03CR 475,984.07CR 4/11/25 4/11 A67493 CHK: 218765 22916 LAMESA BUTANE COMPANY 2500 67.44CR 476,051.51CR 4/11/25 4/11 A67494 CHK: 218766 22916 LEATHERWOOD PLUMBING 2683 9.95CR 476,061.46CR 4/11/25 4/11 A67495 CHK: 218767 22916 MEDICAL ARTS HOSPITAL 2971 245.00CR 476,306.46CR 4/11/25 4/11 A67496 CHK: 218768 22916 S & C OIL COMPANY, INC. 3575 73.27CR 476,379.73CR 4/11/25 4/11 A67497 CHK: 218769 22916 STANDARD INSURANCE CO 3782 1,096.67CR 477,476.40CR 4/11/25 4/11 A67498 CHK: 218770 22916 WARREN CAT 4122 558.36CR 478,034.76CR 4/11/25 4/11 A67499 CHK: 218771 22916 WINDSTREAM COMMUNICATION 4460 11.39CR 478,046.15CR 4/11/25 4/11 A67500 CHK: 218772 22916 AMERICAN EXPRESS 4880 4,909.50CR 482,955.65CR 4/11/25 4/11 A67504 CHK: 218776 22916 DS SERVICES OE AMERICA, 5275 121.60CR 483,077.25CR 4/11/25 4/11 A67505 CHK: 218777 22916 O'REILLY AUTOMOTIVE, INC 5618 657.23CR 483,734.48CR 4/11/25 4/11 A67506 CHK: 218778 22916 ELECTION SYSTEMS & SOFTW 5628 1,647.64CR 485,382.12CR 4/11/25 4/11 A67508 CHK: 218780 22916 ANGEL ACOSTA'S CONCRETE 5640 950.00CR 486,332.12CR 4/11/25 4/11 A67509 CHK: 218781 22916 NAPA AUTO PARTS 5833 2,751.66CR 489,083.78CR 4/11/25 4/11 A67512 CHK: 218784 22916 LAMESA RECYCLING 5869 53.10CR 489,136.88CR 4/11/25 4/11 A67513 CHK: 218785 22916 NORMA GARCIA 6274 537.60CR 489,674.48CR 4/11/25 4/11 A67514 CHK: 218786 22916 ULINE, INC. 6377 160.45CR 489,834.93CR 4/11/25 4/11 A67515 CHK: 218787 22916 DE LAGE LANDEN PUBLIC FI 6511 1,424.07CR 491,259.00CR 4/11/25 4/11 A67516 CHK: 218788 22916 AXON ENTERPRISE, INC. 6628 28,380.08CR 519,639.08CR 4/11/25 4/11 A67517 CHK: 218789 22916 NUTRIEN AG SOLUTIONS, IN 6659 510.54CR 520,149.62CR 4/11/25 4/11 A67518 CHK: 218790 22916 MITCH HALL LAMESA, LLC 6799 120.09CR 520,269.71CR 4/11/25 4/11 A67519 CHK: 218791 22916 PREMIER AUTOMOTIVE OF LA 6961 87.19CR 520,356.90CR 4/11/25 4/11 A67520 CHK: 218792 22916 PREMIER WATERWORKS,INC 6983 1,004.53CR 521,361.43CR 4/11/25 4/11 A67521 CHK: 218793 22916 AUTODESK, INC. 7467 557.50CR 521,918.93CR 4/11/25 4/11 A67522 CHK: 218794 22916 DIAMOND RESCUE SUPPLIES 7482 550.00CR 522,468.93CR 4/11/25 4/11 A67523 CHK: 218751 22902 HUNTINGTON NATIONAL BANK 7029 831.56CR 523,300.49CR 4/11/25 4/11 A67524 CHK: 218752 22902 INS RICA TX INSURNACE SE 7197 71.57CR 523,372.06CR 4/11/25 4/11 A67525 CHK: 218753 22902 HD SUPPLY, INC 7241 234.65CR 523,6 606.71CR 4/11/25 4/11 A67539 CHK: 218795 922 AFLAC INSURANCE 1020 495.79CR 524,102.50CR 4/11/25 4/11 A67540 CHK: 218796 22922 AUTOMOTIVE TECHNOLOGY 1139 275.00CR 524,377.50CR 4/11/25 4/11 A67541 CAK: 218797 22922 GEBO'S DISTRIBUTING CO., 2000 3,976.09CR 528,353.59CR 4/11/25 4/11 A67544 CHK: 218800 22922 MIGGINBOTHAM'S GENERAL 0 2180 3,155.56CR 531,509.15CR 4/11/25 4/11 A67547 CHK: 218803 22922 AMERICAN EXPRESS 4880 5,467.00CR 536,976.15CR 5-17-2025 9:42 AM DETAIL LISTING PAGE: EUND 01 -GENERAL EUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT N/A ACCOUNTS: 1001 THRU 1001 POST DATE TRAN # REFERENCE AC CKE DESCRIPTION- VEND INV/JE # NOTE =-AMOUNT-Es -BALANCE-= 1001 CASH IN BANK CONTINUED 1 4/11/25 4/11 A67551 CHK: 218807 22922 CORE AND MAIN LP 7093 1,360.00CR 538,336.15CR 4/15/25 4/15 A67573 CHK: 218823 22932 DIMAS, LETICIA 1650 2,685.00CR 541,021.15CR 4/15/25 4/15 A67574 CHK: 218824 22932 SOLENIS, LLC 6073 4,206.73CR 545,227.88CR 4/15/25 4/15 A67575 CHK: 218825 22932 JOSHUA PETERSON 7076 354.20CR 545,5B2.0BCR 4/15/25 4/15 A67576 CHK: 218808 22926 LAMESA ECONOMIC DEVELOPM 2555 20,958.30CR 566,540.38CR 4/15/25 4/15 A67577 CHK: 218809 22926 LYNTEGAR ELECTRIC COOPER 2728 132.98CR 566,673.36CR 4/15/25 4/15 A67578 CHK: 218810 22926 POKA-LAMBRO COMMUNCIATIO 3358 1,891.54CR 568,564.90CR 4/15/25 4/15 A67581 CHK: 218813 22926 LUBBOCK TROCK SALES, INC 5085 242.98CR 568,807.88CR 4/15/25 4/15 A67582 CHK: 218814 22926 DUYCK LARRY 5777 175.00CR 568,982.88CR 4/15/25 4/15 A67583 CHK: 218815 22926 UTILITY SERVICE CO., INC 5824 24,717.55CR 593,700.43CR 4/15/25 4/15 A67584 CHK: 218816 22926 LAMESA ECON OMIC ALLIANCE 5942 20,958.30CR 614,658.73CR 4/15/25 4/15 A67585 CHK: 218817 22926 JOHNNY MARTINEZ 6022 65.00CR 614,723.73CR 4/15/25 4/15 A67586 CHK: 218818 22926 DISH 6954 553.96CR 615,277.69CR 4/15/25 4/15 A67587 CHK: 218819 22926 TRINITY BATCHELOR 7034 140.00CR 615,417.69CR 4/15/25 4/15 A67588 CHK: 218820 22926 ROBERT SISTRUNK 7162 249.00CR 615,666.69CR 4/15/25 4/15 A67589 CHK: 218821 22926 TEXAS DEPARTMENT OF AGRI 7475 400.00CR 616,066.69CR 4/15/25 4/15 A67590 CHK: 218822 22928 LAMESA CHAMBER OF COMMER 1457 3,270.00CR 619,336.69CR 4/17/25 4/17 A67599 CHK: 218842 22940 BRUCKNER'S TRUCK SALES, 1340 1,469.94CR 620,806.63CR 4/17/25 4/17 A67600 CHK: 218843 22940 WEATHERMAN CONST. 6 OVER 5624 1,256.90CR 622,063.53CR 4/17/25 4/17 A67601 CHK: 218844 22940 TAILGATE EXPRESS EVENTS, 7362 1,796.25CR 623,859.78CR 4/17/25 4/17 A67602 CHK: 218845 22940 SPENCER DAVID HILL 7414 1,500.00CR 625,359.78CR 4/17/25 4/17 A67603 DET: 000299 22933 TEXAS MUNIÇIPAL RETIREME 3973 18,972.13CR 644,331.91CR 4/17/25 4/17 A67604 DET: 000300 22933 INTE ERNAL REVENUE SERVICE 5832 38,994.87CR 683,326.78CR 4/17/25 4/17 A67605 DFT: 000301 22933 NATIONWIDE INVESTMENT SE 7211 500.00CR 683,826.78CR 4/17/25 4/17 A67606 DET: 000302 22933 MATHER 6 STROHL ADMINIST 7344 883.01CR 684,709.79CR 4/17/25 4/17 A67607 CHK: 218826 22933 CAPROCK FEDERAL CREDIT U 1390 8,564.45CR 693,274.24CR 4/17/25 4/17 A67608 CHK: 218827 22933 PAYROLL EUND 3270 121,931.21CR 815,205.45CR 4/17/25 4/17 A67609 CHK: 218828 22933 JAE FITNESS 6023 207.91CR 815,413.36CR 4/17/25 4/17 A67610 CHK: 218829 22933 TX CHILD SUPPORT SDU 6905 271.09CR 815,684.45CR 4/17/25 4/17 A67611 CHK: 218830 22933 TX CHILD SUPPORT SDU 7349 185.54CR 815,869.99CR 4/17/25 4/17 A67612 CHK: 218831 22933 TX CHILD SUPPORT SDU 7350 233.17CR 816,103.16CR 4/17/25 4/17 A67613 CHK: 218832 22933 TEXAS CHILD SUPPORT SDU 7468 432.00CR 816,535.16CR 4/17/25 4/17 A67614 CHK: 218833 22933 TEXAS CHILD SUPPORT DISB 7469 76.34CR 816,611.50CR 4/17/25 4/17 A67615 CHK: 218834 22935 GARZA, DIONICIO JR 1969 6.62CR 816,618.12CR 4/17/25 4/17 A67616 CHK: 218835 22935 UNITED EUND 4081 63.00CR 816,681.12CR 4/17/25 4/17 A67617 CHK: 218836 22935 ELECTION SYSTEMS & SOFTW 5628 115.07CR 816,796.19CR 4/17/25 4/17 A67618 CHK: 218837 22935 LNB CASH 5656 175.00CR 816,971.19CR 4/17/25 4/17 A67619 CHK: 218838 22935 LORI VITOLAS dba WEST TE 6851 4,263.00CR 821,234.19CR 4/17/25 4/17 A67620 CHK: 218839 22935 HUNTINGTON NATIONAL BANK 7029 2,530.21CR 823,764.40CR 4/17/25 4/17 A67621 CHK: 218840 22935 SPENCER DAVID HILL 7414 1,500.00CR 825,264.40CR 4/17/25 4/17 A67622 CHK: 218841 22935 THE LAMESA SERVICE CLUB 7451 150.00CR 825,4 414.40CR 4/22/25 4/22 A67631 CHK: 218858 22955 BRUCKNER'S TRUCK SALES, 1340 419.87CR 825,834.27CR 4/22/25 4/22 A67632 CHK: 218859 22955 FERGUSON WATERWORKS #788 6582 8,416.24CR 834,250.51CR 4/22/25 4/22 A67633 CHK: 218860 22955 DON CALDWELL 7243 1,500.00CR 835,750.51CR 4/22/25 4/22 A67634 CHK: 218861 22955 AVEL R HERNANDEZ 7247 500.00CR 836,250.51CR 4/22/25 4/22 A67635 CHK: 218862 22955 JAMIE ANNALLA 7293 1,000.00CR 837,250.51CR 4/22/25 4/22 A67636 CHK: 218863 22955 COMPUTER TRANSITION SERV 7304 631.93CR 837,882.44CR 5-17-2025 9:42 AM DETAIL LISTING PAGE: EUND 01 -GENERAL EUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT N/A ACCOUNTS: 1001 THRU 1001 P0ST DATE TRAN # REFERENCE A ACKET DESCRIPTI IC VEND INV/JE # NOTE --AMOUNT-=-- --BALANCE- 1001 CASH IN BANK CONTINUED ) 4/22/25 4/22 A67637 CHK: 218864 22955 BARDO OLVERA 7359 16,500.00CR 854,382.44CR 4/22/25 4/22 A67638 CHK: 218865 22955 HATCHETT BACKHOE, INC 7412 2,000.00CR 856,382.44CR 4/22/25 4/22 A67639 CHK: 218866 22955 AJ CASTILLO PRODUCTIONS, 7427 12,000.00CR 868,382.44CR 4/22/25 4/22 A67640 CHK: 218867 22955 BASIN BROADBAND, INC DBA 7428 12,000.00CR 880,382.44CR 4/22/25 4/22 A67641 CHK: 218846 22954 ATMOS ENE ERGY CORPORATION 1730 278.46CR 880,660.90CR 4/22/25 4/22 A67642 CHK: 218847 22954 WARREN CAT 4122 15,525.27CR 896,186.17CR 4/22/25 4/22 A67643 CHK: 218848 22954 TASCOSA OFFICE MACHINES, 5115 3,196.28CR 899,382.45CR 4/22/25 4/22 A67648 CHK: 218853 22954 LNB CASH 5656 8,050.00CR 907,432.45CR 4/22/25 4/22 A67649 CHK: 218854 22954 STATE COMPTROLLER 6241 17,203.77CR 924,636.22CR 4/22/25 4/22 A67650 CHK: 218855 22954 ARKO CONVENIENCE STORES, 7272 20,329.6BCR 944,965.90CR 4/22/25 4/22 A67652 CHK: 218857 22954 GOVERNMENT CAPITAL SECUR 7364 2,000.00CR 946,965.90CR 4/23/25 4/23 A67655 CHK: 218870 22958 LNB CASH 5656 5,940.00CR 952,905.90CR 4/23/25 4/23 A67656 CHK: 218871 22959 LNB CASH 5656 35,700.00CR 988,605.90CR 4/23/25 4/23 A67657 CHK: 218872 22960 LNB CASH 5656 1,250.00CR 989,855.90CR 4/23/25 1/23 A67658 CHK: 218873 22960 WEST TEXAS CONSULTANTS 7399 19,880.89CR 1,009,736.79CR 4/23/25 4/23 A67659 CHK: 218874 22960 FLATLAND PRODUCTIONS, IN 7470 1,500.00CR 1,011,236.79CR 4/23/25 4/23 A67660 CHK: 218875 22962 LNB CASH 5656 150.00CR 1,011,386.79CR 4/23/25 4/23 A67661 CHK: 218868 22963 WARREN CAT 4122 15,525.27CR 1,026,912.06CR 4/23/25 4/23 A67662 CHK: 218869 22963 MARTINIANO MORENO 7449 1,000.00CR 1,027,912.06CR 4/29/25 4/29 U34092 CHECK 218876 26377 REFUND: DRY GROUND INVESTMENTS 39.84CR 1,027,951.90CR 4/29/25 4/29 034092 CHECK 218877 26377 REFUND: RICHARDSON, LORENZO 28.20CR 1,027,980.10CR 4/29/25 4/29 U34092 CHECK 218878 26377 REFUND: VOGLER, JARED C 81.60CR 1,028,061.70CR 4/29/25 4/29 U34092 CHECK 218879 26377 REFUND: LASATER, SHAINA 78.13CR 1,028,139.83CR 4/29/25 4/29 U34092 CHECK 218880 26377 REFUND: ARREDONDO, GILBERT 64.44CR 1,028,204.27CR 4/29/25 4/29 U34092 CHECK 218881 26377 REPUND: TAYLOR, RAMSEY 85.32CR 1,028,289.59CR 4/29/25 4/29 U34092 CHECK 218882 26377 REFUND: GONZALES, JENIFER 85.09CR 1,028,374.68CR 4/29/25 4/29 U34092 CHECK 218 8883 26377 REFUND: BASQUEZ, OSCAR 71.20CR 1,028,445.B8CR 4/29/25 4/29 U34092 CHECK 218884 26377 REEUND: SMITH, LINDA A 5.06CR 1,028,450.94CR 4/29/25 4/29 B84062 Misc 000002 12906 TWC 1ST QT.01 JE# 033250 3,561.36CR 1,032,012.30CR 4/29/25 4/29 B84062 Misc 000002 12906 TWC 1ST QT.01 JE# 033250 126.00CR 1,032,138.30CR 4/29/25 4/29 A67679 CHK: 218888 22967 LISA SALLEE 1 50.00CR 1,032,188.30CR 4/29/25 1/29 A67680 CHK: 218889 22967 CITY OF LUBBOCK 1470 26,884.67CR 1,059,072.97CR 4/29/25 4/29 A67681 CHK: 218890 22967 DETCO INDUSTRIES INC 1633 170.15CR 1,059,243.12CR 4/29/25 4/29 A67682 CHK: 218891 22967 WALMART COMMUNITY/GECRB 4110 120.03CR 1,059,363.15CR 4/29/25 4/29 A67683 CHK: 218892 22967 WATERMASTER IRRIGATION 4129 461.58CR 1,059,824.73CR 4/29/25 4/29 A67684 CHK: 218893 22967 LUBBOCK TRUCK SALES, INC 5085 242.98CR 1,060,067.71CR 4/29/25 4/29 A67685 CHK: 218894 22967 GREAT AMERICA FINANCIAL 5734 59.55CR 1,060,127.26CR 4/29/25 4/29 A67686 CHK: 218895 22967 VERIZON WIRELESS 5969 2,041.28CR 1,062,168.54CR 4/29/25 1/29 A67688 CHK: 218897 22967 RELIANT ENERGY 6316 29,175.62CR 1,091,344.16CR 4/29/25 1/29 A67690 CHK: 218899 22967 DE LAGE LANDEN PUBLIC FI 6511 256.27CR 1,091,600.43CR 4/29/25 4/29 A67691 CHK: 218900 22967 CANON FINAI CIAL SE ERVICES 6580 1,903.05CR 1,093,503.48CR 4/29/25 4/29 A67692 CHK: 218901 22967 FERGUSON WATERWORKS #788 6582 12.53CR 1,093,516.01CR 4/29/25 4/29 A67693 CHK: 218902 22967 MCCREARY, VESELKA, BRAGG 6774 21.68CR 1,093,537.69CR 4/29/25 4/29 A67694 CHK: 218903 22967 MITCH HALL LAMESA, LLC 6799 121.04CR 1,093,658.73CR 4/29/25 4/29 A67695 CHK: 218904 22 6 67 COM TER NSITION SERV 7304 150.68CR 1,093,809.41CR 4/29/25 4/29 A67696 CHK: 218905 22967 BENEFITMALL 7341 80.00CR 1,093,889.41CR 4/29/25 4/29 A67697 CHK: 218906 22967 EMPLOYEES RETIREMENT SYS 7410 77.00CR 1,093,966.41CR 5-17-2025 9:42 AM DETAIL LISTING PAGE: FUND 01 -GENERAL FUND PERIOD TO USE: Apr-2025 THRU Apr-2025 DEPT N/A ACCOUNTS: 1001 THRU 1001 P0ST DATE TRAN # REFERENCE PACKET- -DESCRIPTION- VEND INV/JE # NOTE --AMOUNT--- --BALANCE-- 1001 CASH IN BANK CONTINUED ) 4/29/25 4/29 A67698 CHK: 218907 22967 DETROIT INDUS T R RIAL TOOL 7474 239.21CR 1,094,205.62CR 4/29/25 4/29 A67699 DFT: 000303 22970 INTERNAL REVENUE SERVICE 5832 162.62CR 1,094,368.24CR 4/29/25 4/29 A67700 CHK: 218911 22970 CAPROCK FEDERAL CREDIT U 1390 115.44CR 1,094,483.68CR 4/29/25 4/29 A67701 CHK: 218908 22973 AFLAC INSURANCE 1020 5,100.86CR 1,099,584.54CR 4/29/25 4/29 A67702 CHK: 218909 22973 LEGAL SHIELD 5900 212.44CR 1,099,796.98CR 4/29/25 4/29 A67703 CHK: 218910 22973 NEW YORK LIEE 5921 139.92CR 1,099,936.90CR 4/29/25 5/01 A67705 CHK: 218885 22969 FULBRIGHT & CASSEBERRY 2090 2,210.20CR 1,102,147.10CR 4/29/25 5/01 A67706 CHK: 218886 22969 PAYROLL FUND 3270 392.50CR 1,102,539.60CR 4/29/25 5/01 A67707 CHK: 218887 22969 SENIOR CITIZENS 3675 3,750.00CR 1,106,289.60CR 4/30/25 5/03 B84135 Misc 000008 12912 HEALTH INS. TSF G/E JE# 033262 39,901.67CR 1,146,191.27CR 4/30/25 5/03 B84138 Misc 000011 12912 GROUP HEALTH INSURANCE JE# 033265 2,250.00CR 1,148,441.27CR 4/30/25 5/03 B84141 Misc 000014 12913 WORKER COMP TSF TO RISK MGMT JE# 033268 7,410.08CR 1,155,851.35CR 4/30/25 5/03 B84144 Misc 000017 12913 WORKERS COMP. TSF TO RISK MGMT JE# 033271 515.67CR 1,156,367.02CR 4/30/25 5/05 B84147 Misc 000021 12914 LIABILITY TSF G/F TO RISK MGMT JE# 033274 7,201.67CR 1,163,568.69CR 4/30/25 5/05 B84150 Misc 000024 12914 LIABILITY INS. TSF TO RISK MGT JE# 033277 62.50CR 1,163,631.19CR 4/30/25 5/16 B84224 Misc 000025 12919 TO RECORD DUE TO/FROM'S JE# 033291 416.77CR 1,164,047.96CR 4/30/25 5/16 B84224 Misc 000025 12919 TO RECORD DUE TO/FROM'S JE# 033291 340.84CR 1,164,388.BOCR 4/30/25 5/16 B84224 Misc 000025 12919 TO RECORD DUE TO/FROM'S JE# 033291 393.40CR 1,164,782.20CR 4/30/25 5/16 B84224 Misc 000025 12919 TO RECORD DUE TO/FROM'S JE# 033291 8.41CR 1,164,790.61CR APRIL ACTIVITY DB: 0.00 CR: 1,164,790.61CR 1,164,790.61CR 5-17-2025 9:42 AM DETAIL LISTIN PAGE: SELECTION CRITERIA I ISCAL YEAR: Oct-2024 / Sep-2025 EUND: Include: 01 PERIOD TO USE: Apr-2025 THRU Apr-2025 TRANSACTIONS: CREDIT ACCOUNT SELECTION ACCOUNT RANGE: 1001 THRU 1001 DEPARTMENT RANGE: THRU ACTIVE EUNDS ONLY: NO ACTIVE ACCOUNT ONLY: NO INCLUDE RESTRICTED ACCOUNTS: NO DIGIT SELECTION: PRINT OPTIONS DETAIL OMIT ACCOUNTS WITH NO ACTIVITY: NO PRINT ENCUMBRANCES: NO PRINT VENDOR NAME: NO PRINT PROJECTS: NO PRINT JOURNAL ENTRY NOTES: NO PRINT MONTHLY TOTALS: YES PRINT GRAND TOTALS: NO PRINT: INVOICE # PAGE BREAK BY: NONE END OF REPORT City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17,2 2025 AGENDA ITEM: 4 BUDGET AMENDMENT IV SUBJECT: PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Ordinance, Second Reading AUTHORITY: SUMMARY STATEMENT City Council to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to recognize the sale of a 2006 Fire Truck ($40,000.00) and a Fire Brush Truck ($23,250.00) (City Manager & Finance) COUNCIL ACTION DISCUSSION Motion by Council Member to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. ORDINANCE NO. AN ORDINANCE OF THE CITY OF LAMESA, TEXAS, AMENDING ORDINANCE NO. 0-11-24 TO APPROPRIATE FUNDS IN THE CITY OF LAMESA BUDGET FOR FISCAL YEAR 2024-2025. On the 13th day May 2025, there came on and was held at the City Hall of the City of Lamesa, Texas, an open meeting of the City Council of the City of Lamesa, Texas, held pursuant to the provisions of the Texas Open Meetings Act (Government Code, Chapter 551). There being a quorum present and acting throughout the meeting, the following ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, to-wit: WHEREAS, the City Council desires to amend Ordinance No. 0-11-24 to make certain revisions to the 2024-2025 Budget of the City of Lamesa to authorize and appropriate funds as listed below; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: SECTION 1. That the City of Lamesa 2024-2025 Budget contained in Ordinance No. 0-11-24 be, and same is hereby, amended to change the amount appropriated by the following: Revenues General Fund (1) 63,250.00 SECTION 2. Effective date: That this Ordinance shall become effective as of this May 30, 2025. SECTION 3. The City Secretary is hereby authorized and directed to cause publication of this Ordinance as provided by law. Upon being put to a vote, the foregoing ordinance was Passed, on First Reading on May 13, 2025, by a majority vote; and on June 17, 2025, there was held at the regular meeting place, the City Hall, an open meeting of the City Council of the City of Lamesa, Texas held pursuant to the provisions of the Texas Open Meetings Act (Government. Code, Chapter 551); there being a quorum present and acting throughout the meeting, the foregoing ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, and upon being put to a vote, the foregoing ordinance was Passed on Second Reading by a majority vote and ordered to be spread upon the minutes of the City Council of the City of Lamesa, Texas and recorded in the ordinance book thereafter. ATTEST: APPROVED: Betty Conde Hayden Davis City Secretary Mayor BUDGET AMENDMENT - FY 2024/2025 Solid Waste Fund (3) The Finance Department is requesting a Budget Amendment for emergency repair for the landfill compactor. Increase Expenses - (03-5212505) $49,656.83 LAMESATEXAS TRADE CORRIDOR CROSSING CITY OF LAMESA 601 SOUTH 1ST STREET LAMESA, TEXAS 79331 TEL. 806-872-2124 FAX 806-872-4338 Date: May 1St, 2025 To: Betty Conde Thru: Finance Department From: Wayne Chapman, Finance Director Subject: Budget Amendment The Finance Department is requesting a Budget Amendment for emergency repair of the landfill compactor. 03-5212505 - $49,656.83 Sincerely, L Jana Chapman Wayne Chapman Director of Finance City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 5 BUDGET AMENDMENT V SUBJECT: PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Ordinance, Second Reading AUTHORITY: SUMMARY STATEMENT City Council to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is for emergency repair for the landfill compactor. (City Manager & Finance) COUNCIL ACTION DISCUSSION Motion by Council Member to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. ORDINANCE NO. AN ORDINANCE OF THE CITY OF LAMESA, TEXAS, AMENDING ORDINANCE NO. 0-11-24 TO APPROPRIATE FUNDS IN THE CITY OF LAMESA BUDGET FOR FISCAL YEAR 2024-2025. On the 13th day May 2025, there came on and was held at the City Hall of the City of Lamesa, Texas, an open meeting of the City Council of the City of Lamesa, Texas, held pursuant to the provisions of the Texas Open Meetings Act (Government Code, Chapter 551). There being a quorum present and acting throughout the meeting, the following ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, to-wit: WHEREAS, the City Council desires to amend Ordinance No. 0-11-24 to make certain revisions to the 2024-2025 Budget of the City of Lamesa to authorize and appropriate funds as listed below; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: SECTION 1. That the City of Lamesa 2024-2025 Budget contained in Ordinance No. 0-11-24 be, and same is hereby, amended to change the amount appropriated by the following: Expenditures Solid Waste Fund (3) 49,656.83 SECTION 2. Effective date: That this Ordinance shall become effective as of this May 30, 2025. SECTION 3. The City Secretary is hereby authorized and directed to cause publication of this Ordinance as provided by law. Upon being put to a vote, the foregoing ordinance was Passed, on First Reading on May 13, 2025, by a majority vote; and on June 17, 2025, there was held at the regular meeting place, the City Hall, an open meeting of the City Council of the City of Lamesa, Texas held pursuant to the provisions of the Texas Open Meetings Act (Government. Code, Chapter 551); there being a quorum present and acting throughout the meeting, the foregoing ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, and upon being put to a vote, the foregoing ordinance was Passed on Second Reading by a majority vote and ordered to be spread upon the minutes of the City Council of the City of Lamesa, Texas and recorded in the ordinance book thereafter. ATTEST: APPROVED: Betty Conde Hayden Davis City Secretary Mayor BUDGET AMENDMENT - FY 2024/2025 Solid Waste Fund (3) The Finance Department is requesting a Budget Amendment for emergency repair for the landfill compactor. Increase Expenses = (03-5212505) $ 49,656.83 LAMESATEXAS TRADE CORRIDOR CROSSING CITY OF LAMESA 601 SOUTH 1ST STREET LAMESA, TEXAS 79331 TEL. 806-872-2124 FAX 806-872-4338 Date: May 1st, 2025 To: Betty Conde Thru: Finance Department From: Wayne Chapman, Finance Director Subject: Budget Amendment The Finance Department is requesting a Budget Amendment for emergency repair of the landfill compactor. 03-5212505 - $49,656.83 Sincerely, ana Clapman Wayne Chapman Director of Finance City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 6 Subject: RESOLUTION DESIGNATING AUTHORIZED SIGNATORIES Proceeding: Action Submitted by: City Staff EXHIBITS: Resolution Authority: SUMMARY STATEMENT City to approve a resolution designating authorized signatories. The approved signatories on each account will include: Joe Hines, City Manager, Hayden Davis, Mayor, Josh Peterson, Police Chief and Betty Conde, City Secretary. COUNCIL ACTION DISCUSSION Motion by Council Member to approve resolution designating authorized signatories. The approved signatories on each account will include: Joe Hines, City Manager, Hayden Davis, Mayor, Josh Peterson 1 Police Chief and Betty Conde, City Secretary. Motion seconded by Council Member and upon being put to a vote the motion passed. VOTING: "AYE" "NAY" ABSTAIN" RESOLUTION NO. A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, DESIGNATING AUTHORIZED SIGNATORIES FOR CONTRACTUAL AND FINANCIAL DOCUMENTS WHEREAS, City Council to approve a resolution designating authorized signatories. WHEREAS, it is necessary to appoint signatories to execute contractual document and financial documents, and; WHEREAS, an original signed copy of the resolution authorizing named individuals as Deposiloy/Autnonzed Signatories is to be submitted to Lamesa National Bank WHEREAS, the City of Lamesa, Texas acknowledges that in the event that an authorized signatory of the City changes (elections, illness, resignations, etc.), a resolution stating who the new authorized signatory is (not required if this original resolution names only the title and not the name of the signatory); and NOWTHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, AS FOLLOWS: The listed designees be authorized to execute documents include: Joe Hines City Manager, Hayden Davis, Mayor, Josh Peterson, Chief of Police, Norma Garcia, Finance Director, and Betty Conde, City Secretary PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS on June 17, 2025 Hayden Davis, Mayor Attest: Betty Conde, City Secretary DepositoryAuthorized Signatories Designation Form The individuals listed below are designated by resolution as authorized signatories for contractual and financial documents. Hayden Davis Joe Hines (Name) (Name) Mayor City Manger (Title) (Title) (Signature) (Signature) In addition tot the individuals listed above, the individuals listed below are designated by resolution as authorized signatories. At least two (2) signatoresrequireo), Joe Hines Betty Conde (Name) (Name) City Manager City Secretary (Title) (Title) (Signature) (Signature) Norma Garcia Josh Peterson (Name) (Name) Finance Director Chief of Police (Title) (Title) (Signature) (Signature) City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAMESA, Subject: TEXAS, APPROVING THE USE OF CREDIT CARDS ISSUED BY CITY BANK TO BE SECURED BY FUNDS OF THE CITY OF LAMESA ON DEPOSIT WITH CITY BANK IN THE FORM OF A CERTIFICATE OF DEPOSIT, AND TO CREATE AND MAINTAIN AN ACCOUNT FOR CREDIT CARD PURCHASES Proceeding: Action Submitted by: City Staff Authority: City Council to consider approving a resolution for the use of credit cards issued by City Bank to be secured by funds of the City of Lamesa in the form of a Certificate of Deposit and create and maintain an account for credit card purchases. COUNCIL ACTION DISCUSSION Motion by Council Member to approve a resolution for the use of credit cards issued by City Bank to be secured by funds of the City of Lamesa in the form of a Certificate of Deposit and create and maintain an account for credit card purchases. Motion seconded by Council Member and upon being put to a vote the motion passed. VOTING: "AYE" "NAY" ABSTAIN" City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 8 SUBJECT: ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2024 PROCEEDING: Action SUBMITTED BY: City Staff EXHIBITS: Audit Report SUMMARY STATEMENT City Council to consider accepting annual financial report as well as authorizing publication of audit report for Fiscal Year ending September 30, 2024, from Terry & King, CPAS, P.C. (City Manager, Finance Director, and City Auditor) COUNCIL ACTION DISCUSSION Motion by Council Member to accept annual financial report as well as authorizing publication of audit report for Fiscal Year ending September 30, 2024, from Terry & King, CPAS, P.C. . Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. ANNUAL FINANCIAL REPORT CITY OF LAMESA, TEXAS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CITY OF LAMESA Lamesa, Texas ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2024 TABLE OF CONTENTS Page Exhibit Number INTRODUCTORY SECTION City Council and Administrative Staff 1 FINANCIAL SECTION Independent Auditors' Report on Financial Statements 2 Management's Discussion and Analysis (Required Supplementary Information) 5 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position A-1 14 Statement of Activities B-1 15 Governmental Fund Financial Statements: Balance Sheet-Governmental Funds C-1 16 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position C-1R 17 Statement of Revenues, Expenditures, and Changes In Fund Balances = Governmental Funds C-2 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities C-3 19 Proprietary Fund Financial Statements Statement of Net Position D-1 20 Statement of Revenues, Expenses, and Changes in Fund Net Position D-2 21 Statement of Cash Flows D-3 22 Notes to the Financial Statements 23 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule: General Fund E-1 49 Schedule of Changes in NPL and Related Ratios - TMRS E-2 50 Schedule of Pension Contributions - TMRS E-3 51 Notes to the Required Supplementary Information 52 OTHER SUPPLEMENTARY INFORMATION Combining Statements: Combining Balance Sheet - Nonmajor Governmental Funds F-1 53 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds F-2 54 HUD Financial Data Schedules Supplementary Financial Data Schedule = Balance Sheet F-3 55 Supplementary Financial Data Schedule - Revenue and Expense F-4 56 CITY OF LAMESA Lamesa, Texas ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2024 TABLE OF CONTENTS (Continued) Page Exhibit Number 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 57 Report on Compliance for Each Major Program and on Internal Control over Compliance Required by The Uniform Guidance 59 Schedule of Findings and Questioned Costs 62 Summary Schedule of Prior Audit Findings 63 Corrective Action Plan 64 Schedule of Expenditures of Federal Awards K-1 65 Notes to the Schedule of Expenditures of Federal Awards 66 NTRODUCTORY SECTION CITY OF LAMESA Lamesa, Texas September 30, 2024 CITY COUNCIL Josh Stevens Mayor Hayden Davis Councilmember Fred Vera Councimember Gloria V. Rodriguez Councilmember Danny Jacobs Councilmember Bobby Gonzales Councimember James H. Grayson Councimember ADMINISTRATIVE STAFF Joe Hines City Manager Betty Conde City Secretary Wayne Chapman Finance Director FINANCIAL SECTION Terry & King, CPAS, P.C. 5707 114th Street P.O. Box 93550 Randel J. Terry, CPA Lubbock, TX 79493-3550 Ryan R. King, CPA Telephone - (806) 698-8858 Fax - (866) 288-6490 Independent Auditors' Report on Financial Statements Honorable Mayor and City Council City of Lamesa, Texas Lamesa, Texas Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Lamesa, Texas, as of and for the year ended September 30, 2024, 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 financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Lamesa, Texas as of September 30, 2024, 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 of Lamesa, Texas and to meet our other ethical responsibillties, 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. Responsibilities of Management for the Financial Statements 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. -2- Members American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants CPA The CPA, Never Underestimate The Value. -3- 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 generally accepted auditing standards 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, mirepresentations, 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 generally accepted auditing standards 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 schedules, identified as required supplementary information, 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lamesa, Texas' basic financial statements. The accompanying other schedules listed in the table of contents as Other Supplementary Information and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are 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 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 auditing standards generally accepted in the United States of America. In our opinion, the Other Supplementary Information and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government. Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 12, 2025, on our consideration of the City of Lamesa, Texas' 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 of Lamesa, Texas' internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemnment Auditing Standards in considering City of Lamesa, Texas' internal control over financial reporting and compliance. Respectfully submitted, Jery E Rn Terry & King, CPAS, P.C. Lubbock, Texas May 12, 2025 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Lamesa's financial performance provides an overview of the City's financial activities for the fiscal year ended September 30, 2024. Please read this in conjunction with the City's financial statements, which follow this section. FINANCIAL HIGHLIGHTS The City's net position increased as a result of this year's operations. While net position of our business-type activities increased by $1,619,777 or 8%, net position of our governmental activities increased by $544,863 or 5%. During the year, the City had expenses that were $86,934 less than the $5,998,796 generated in tax and other revenues for governmental programs before transfers. In the City's business type activities, charges for services decreased $350,053 to $7,977,784 (or 4%) while expenses decreased $342,550 to $7,447,836. Grants and contributions in the City's business-type activities decreased $2,199,403 to $1,209,886. The General Fund reported a deficit this year of $309,322 after receiving transfers from other funds of $316,547. The resources available for appropriation were $258,675 less than budgeted for the General Fund. Expenditures for the General Fund were less than the budgeted amounts by $476,641. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City's finances. Fund financial statements start on page 17. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit ofthose outside of the government. 5 Reporting the City as a Whole - The Statement of Net Position and the Statement of Activities Our analysis ofthe City as a whole begins on page 6. One ofthe most important questions asked about the City's finances is, "Is the City as a whole better off or worse as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City's net position and changes in it. You can think of the City's net position- the differences between assets and liabilities- as one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the City's property tax base and the condition of1 the City's roads, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: Governmental activities Most of the City's basic services are reported here, including the fire, police, streets, and parks departments, and general administration. Property taxes, sales taxes, franchise taxes, charges to customers, and state and federal grants finance most of these activities. Business-type activities - The City charges a fee to customers to help it cover the cost of certain services it provides. The City's water, sewer, sanitation, golf course, and HUD housing program are reported here. Reporting the City's Most Significant Funds - Fund Financial Statements Our analysis of the City's major funds begins on page 10. The fund financial statements begin on page 15 and provide detailed information about the most significant funds --not the City as a whole. Some funds are required to be established by State law and by bond covenants. At times a city council may establish other funds to help it control and manage money for particular purposes, such as special projects or to show that it is meeting legal responsibilities for using certain Federal or State grants. The City's two kinds of funds governmental and proprietary use different accounting approaches. 6 Govermental.fund: Most oft the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental) funds in reconciliation on Exhibits C-1R and C-3. Proprietary funds- When the City charges customers for the services it provides whether to outside customers or to other units of the City-these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement ofNet Position and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary funds) are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. THE CITY AS A WHOLE The City's combined net position was $35,248,986. Our following analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City's government and business-type activities. 7 Net position of the City's governmental activities increased ($12,326,023 compared to $11,781,160). Unrestricted net position - the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements - changed from $6,340,840 at September 30, 2023 to $6,376,705 at the end of this year. Net position of the City's business-type activities increased 8%, from $21,303,186 to $22,922,963. Table A-2 Changes in City ofl Lamesa's Net Position Governmental Business-type Activities Activities Total Primary Government Percentage Percentage Percentage 2024 2023 Change 2024 2023 Change 2024 2023 Change Program Charges Revenues: for Services 433,314 291,426 49% 7,977,784 8,327,837 -4% 8,411,098 8,619,263 -2% Grants & Contributions 833,625 796,925 5% 1,209,886 3,409,289 -65% 2,043,511 4,206,214 -51% General Revenues: Property" Taxes 2,623,850 2,537,689 3% 0% 2,623,850 2,537,689 3% Nonproperty' Taxes 1,906,710 2,091,951 -9% 0% 1,906,710 2,091,951 -9% Investment Earnings 141,199 86,895 62% 293,762 189,148 55% 434,961 276,043 58% Other 60.098 229,758 -74% 44.110 59,231 -26% 104,208 288,989 -64% 5.998.796 6,034.644 -1% 9,525,542 11,985,505 -21% 15.524,338 18.020,149 -14% Expenses: -16% Administration 213,262 254,827 -16% 0% 213,262 254,827 General Government 416,390 334,020 25% 0% 416,390 334,020 25% Housing. Assistance 35,678 31,198 14% 0% 35,678 31,198 14% Tourism 182,311 103,953 75% 0% 182,311 103,953 75% Fire 800,162 747,049 7% 0% 800,162 747,049 7% Streets 541,221 589,133 -8% 0% 541,221 589,133 -8% Vehicle Services 33,550 29,726 13% 0% 33,550 29,726 13% Police 2,524,689 2,268,295 11% 0% 2,524,689 2,268,295 11% Parks & Recreation 1,057,150 841,239 26% 0% 1,057,150 841,239 26% Airport 89,964 169,874 -47% 0% 89,964 169,874 47% Water 0% 3,955,666 3,901,540 1% 3,955,666 3,901,540 1% Wastewater 0% 709,894 695,320 2% 709,894 695,320 2% Solid Waste 0% 1,840,203 1,882,295 -2% 1,840,203 1,882,295 -2% Golf Course 0% 286,868 -100% 286,868 -100% Housing Program 0% 478,299 481,232 -1% 478,299 481,232 -1% Interest & Related Fees 17,485 9.222 90% 463,774 543.131 -15% 481,259 552,353 -13% 5.911,862 5.378.536 10% 7,447.836 7,790,386 -4% 13,359,698 13,168,922 1% Excess (Deficiency)! Before Other Resources, Uses & -55% Transfers 86,934 656,108 87% 2,077,706 4,195,119 -50% 2,164,640 4,851,227 Other Resources (Uses) 0% 0% 0% Transfers In (Out) 457.929 146.113 213% (457,929) (146.113) -213% 0% Increase (Decrease) in -60% -55% Net Position 544,863 802,221 32% 1,619,777 4,049,006 2,164,640 4,851,227 Net Position- Beginning 11,781,160 10.978.939 7% 21.303.186 17,254.180 23% 33,084,346 28.233.119 17% Net Position Ending 12,326,023 11,781.160 5% 22,922,963 21,303,186 8% 35,248,986 33,084,346 7% The City's total revenues were $15,524,338. A significant portion, 61%, of the City's total revenue comes from business-type activities. Revenues available to fund governmental activities consist of property taxes (44%), non-property taxes (32%), charges for services (7%), grants and contributions (14%), and other (3%). 9 The total cost of all programs and services was $13,359,698; 56% of these costs were for business-type activity expenses. Expenses for governmental activities consisted of costs for administration (4%), general government (7%), Tourism (3%), police and fire (57%), streets (9%), parks and recreation (18%), other (2%). Governmental Activities Revenues for the City's governmental activities decreased 1%, while total expenses increased 10%. Property tax rates decreased from $0.799070 to $0.745187 per $100 valuation. The ad valorem tax levy was $2,583,543 for the current year. Total tax collections were $2,519,123 in the current year. Grants and contributions revenues increased $36,700. Nonproperty tax revenues decreased $185,241. Charges for services increased $141,888 due to the change of reporting of the golf course from a proprietary fund to a governmental fund. The cost of all governmental activities this year was $5,911,862. As shown in the Statement of Activities, the amount that our taxpayers ultimately financed for these activities through tax collections was $2,623,850 because some ofthe costs were paid by those who directly benefited from the programs ($433,314), by nonproperty taxes ($1,906,710), or grants and contributions ($833,625). Business-type Activities Revenues of the City's business-type activities (see table A-2) decreased 21% ($9,525,542 from $11,985,505) and expenses decreased 4% ($7,447,836 from $7,790,386). The City's Water and Wastewater Funds received capital grants and contributions of $1,178,332 in the current year. 10 THE CITY'S FUNDS As the City completed the fiscal year, its governmental funds (as presented in the balance sheet on Exhibit C-1) reported a combined fund balance of $4,226,181, which is a decrease from the prior year's total of $4,538,636. The following items effecting fund balance should be noted: In the prior year, expenditures were less than revenues by $177,394 prior to transfers. In the current year, expenditures were more than revenues by $629,002 prior to transfers. The revenues in the governmental funds increased $57,172 or less than 1% from the prior period and expenses for the governmental funds increased $864,284 or 15% from the prior period. General Fund Budgetary Highlights Over the course oft the year, the City Council revised the City's budget once. Even with these adjustments, actual revenues were $258,675 less than budgeted amounts and expenditures were $476,641 less than final budget amounts. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2024, the City had $62,078,713 invested in a broad range of capital assets, including buildings, furniture and equipment, and utilities facilities (see Table A-3). This amount represents a net increase (including additions and deductions) of$3,642,601 over last year. Table A-3 Fixed Assets Governmental Balance Deletions/ Balance Activities: 10-01-23 Additions Reclassifications 09-30-24 Land $ 94,350 94,350 Construction in Progress Buildings& Improvements 6,271,712 242,051 6,513,763 Vehicles & Equipment 3,409,417 373,021 3,782,438 Machinery & Equipment 2,084,759 301,874 2,386,633 Right-to-Use Lease 184,172 109,103 293,275 Accumulated Depreciation (7.011.269) (590.001) (7.601.270) Net Capital Assets $5.033.141 $ 436.048 $ $ 5.469.189 11 Business-Type Balance Deletions/ Balance Activities: 10-01-23 Additions Reclassifications 09-30-24 Land $ 306,820 306,820 Construction in Progress 10,606,749 1,557,160 (5,990,663) 6,173,246 Buildings & Improvements 2,686,647 2,686,647 Other Improvements 15,559,506 518,465 5,990,663 22,068,634 Vehicles & Equipment 10,415,485 540,928 10,956,413 Infrastructure 6,816,494 6,816,494 Accumulated Depreciation (20.574.315) (1.257,420) (21,831.735) Net Capital Assets $25.817.386 $1.359.133 $2 27.176.519 More detailed information about the City's capital assets is presented in the notes to the financial statements. Debt A municipal government can finance activities such as capital improvements and acquisitions through general tax bonds or revenue bonds. Additionally, a government may purchase items through the use of leases or notes payable with a financial institution. Due Governmental Balance Balance Within Activities: 10-01-23 Additions Decreases 09-30-24 One Year Tax Notes $ 146,340 $ $ 15,364 S 130,976 $35,333 Direct Financings 57,276 13,984 43,292 14,887 Leases 166,001 109,103 43,993 231,111 47,698 Compensated Absences 141,117 18.857 122.260 $ 510.734 $ 109.103 $ 92.198 $ 527.639 $ 97.918 Due Business-Type Balance Balance Within Activities: 10-01-23 Additions Decreases 09-30-24 One Year G.O. Bonds $ 3,625,000 $ $ 105,000 $ 3,520,000 $ 110,000 Certificates of Obligation 9,535,000 352,000 9,183,000 367,000 Tax Notes 1,882,231 239,336 1,642,895 420,531 CRMWA Bonds 1,345,755 322,642 1,023,113 260,039 Bond Issuance Premium 321,228 38,317 282,911 Direct Financings 1,091,276 253,616 837,660 154,355 Compensated Absençes 64.977 10.159 54,818 Total $17.865.467 $1 1.321,070 $16.544.397 $1.311.925 More detailed information about the City's long-term obligations is presented in the notes to the financial statements. 12 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City's elected officials considered many factors when setting the fiscal year 2025 budget, tax rates, and fees. Factors considered include the current economy, property tax values and the needs oft the City in the coming year. The Council has adopted tax rates, budgets and set fees accordingly. Ifthese estimates are realized, the City's budgetary general fund fund balance is expected to increase slightly by the close of 2025. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This tinancial report is designed to provide our citizens, taxpayers, customers and creditors with a general overview ofthe City's finances and to show the City's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the City Administrator. at the City's office located in Lamesa, Texas. 13 BASIC FINANCIAL STATEMENTS -14- EXHIBIT A-1 CITY OF LAMESA Lamesa, Texas STATEMENT OF NET POSITION September 30, 2024 Primary Government Component Units Lamesa Lamesa Economic Economic Governmental Business-type Development Alliance Activities Activities Total Corporation Project ASSETS: Cash in Bank $ 6,502,168 $ 9,379,689 $ 15,881,857 $ 2,308,248 $ 1,292,813 Accounts Receivable, net 40,702 910,273 950,975 Taxes Receivable, net 295,173 295,173 Interfund Balances 32,026 (32,026) Duei from City 58,748 58,748 Duei from Component Unit 65,992 65,992 Duei from Other Governments 362,437 362,437 Other Receivables 103,705 103,705 140,000 378,000 Inventory- Supplies 417,051 417,051 Inventory Land 221,252 67,200 Restricted Cash and Cash Equivalents 2,988,965 2,988,965 Leases Receivable 41,739 41,739 818,385 Net Pension Asset 869,213 424,617 1,293,830 32,928 Capital Assets: Land 94,350 306,819 401,169 Construction in Progress 6,173,247 6,173,247 Depreciable Capital Assets, net 5,160,547 20,696,453 25,857,000 Right-to-Use Leased Equipment, net 214,292 214,292 Water Rights, net 1,199,351 1,199,351 TOTAL ASSETS $ 13,740,605 S 42,506,178 $ 56,246,783 $ 3,579,561 $ 1.796,761 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows Pension 418,174 204,281 622,455 15,842 Deferred Charge on Bond Refunding 77.068 77,068 TOTAL DEFERRED OUTFLOWS OF RESOURCES 418,174 281.349 699,523 15,842 LIABILITIES: Current Liabilities: Accounts Payable $ 1,045,727 $ 69,263 $ 1,114,990 $ $ Accrued Payroll 63,324 37,806 101,130 3,441 Accrued Interest 91,929 91,929 Due to Other Funds 65,114 878 Due to Component Units 117,497 117,497 Noncurrent Liabilities: Customer Deposits 10,990 292,684 303,674 Compensated Absences 122,260 54,818 177,078 Premium on Debt Issuance 282,911 282,911 Due Within One Year 97,919 1,311,924 1,409,843 Due in More Than One Year 307,460 14,894,745 15,202,205 Landfill Closure/Postclosure 804,572 804,572 Total Liabilities $ 1,765,177 $ 17,840,652 $ 19,605,829 $ 68,555 $ 878 DEFERRED INFLOWS OF RESOURCES Deferred Inflows Pension 65,768 32,129 97,897 2,491 Deferred Grant Proceeds 1,950,044 1,950,044 Deferred Inflows Lease Income 1,811 41.739 43,550 818,385 Total Deferred Inflows of Resources 67,579 2,023,912 2,091,491 820,876 NETI POSITION Net Investment in Capital Assets $ 5,063,810 $ 13,404,001 $ 18,467,811 $ $ Restricted for: Grant Projects 413,598 6,632 420,230 Tourism 394,174 394,174 Enabling Legislation 77.736 77,736 HUDI Programs 105,484 105,484 Unrestricted 6,376,705 9,406,846 15,783,551 2,705,972 1,795,883 TotalNetE Position $ 12,326,023 $ 22,922,963 $35,248,986 $2,705.972 $ 1,795.883 The accompanying notes are ani integral part oft this statement. -15- EXHIBIT B-1 -16- EXHIBIT C-1 CITY OF LAMESA Lamesa, Texas BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2024 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and Cash Equivalents $ 4,075,158 $ 882,134 $ 4,957,292 Taxes Receivable, net 295,173 295,173 Accounts Receivable 14,208 26,494 40,702 Due from Other Governments 362,437 362,437 Other Receivables 103,705 103,705 Due from Other Funds 34,005 34,005 Due from Component Unit 65,992 65,992 IOTAL ASSETS $ 4,950,678 5 908,628 $ 5,859,306 LIABILITIES Current Liabilities Accounts Payable $ 1,024,418 $ 21,309 $ 1,045,727 Accrued Payroll 63,324 63,324 Customer Deposits 10,990 10,990 Due to Other Funds 98,603 98,603 Due to Component Units 117,497 117,497 Total Liabilities 1,314,832 21,309 1,336,141 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue Property Taxes $ 295,173 $ $ 295,173 Deferred Grant Proceeds 1,811 1,811 Total Deferred Inflows of Resources $ 295,173 $ 1,811 $ 296,984 FUND BALANCES: Restricted For: Grant Projects 413,598 413,598 Tourism 394,174 394,174 Enabling Legislation 77,736 77,736 Unassigned 3,340,673 3,340,673 Total Fund Balances 3,340,673 885,508 4,226,181 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 4,950,678 S 908,628 $ 5,859,306 The accompanying notes are an integral part of this statement. -17- EXHIBIT C-1R CITY OF LAMESA Lamesa, Texas RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION September 30, 2024 Total Fund Balances - Governmental Funds Balance Sheet $ 4,226,181 Amounts reported for governmental activities in the statement of net position (A-1) are different because: Other long-term assets are not available to pay for current-period expenditures and therefore are unavailable in the funds 295,173 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 5,469,189 Some liabilities, including notes payable are not due and payable in the current period and therefore are not reported in the funds (405,379) Compensated absences are not due and payable in the current period and therefore are not reported in the funds (122,260) The assets and liabilities of internal service funds are included in governmental activities in the Statement of Net Position. 1,641,500 Included in the items related to noncurrent assets is the recognition of the City's proportionate share of the net pension asset required by GASB 68 in the amount of $869,213, a deferred resource outflow related to Pensions in the amount of $418,174, and a deferred resource inflow in the amount of $65,768. This resulted in a increase in net position by $1,221,619. 1,221,619 Net Position of Governmental Activities Statement of Net Position $ 12,326,023 The accompanying notes are an integral part of this statement. -18- EXHIBIT C-2 CITY OF LAMESA Lamesa, Texas STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- GOVERNMENTAL FUNDS For the Year Ended September 30, 2024 Other Total General Governmental Governmental Fund Fund Funds REVENUES: Taxes: Property Taxes (Including Penalty & Interest) $ 2,576,756 $ $ 2,576,756 Sales Taxes 1,384,296 1,384,296 Franchise Taxes 365,034 365,034 Motel Occupancy Taxes 157,380 157,380 Licenses and Permits 37,151 37,151 Charges for Services 274,639 274,639 Fines, Fees, and Forfeits 86,306 8,667 94,973 Investment Income 113,578 885 114,463 Intergovernmental 236,500 236,500 Rents 26,552 26,552 Community Event 80,500 80,500 State Grants 18,151 89,964 108,115 Federal Grants 4,950 4,950 Local Grants and Contributions 403,560 403,560 Insurance Recovery 337 337 Miscellaneous 10,698 10,698 Total Revenues 5,614,058 261,846 5,875,904 EXPENDITURES Current Administration 421,826 421,826 General Government 382,943 382,943 Housing Assistance 34,772 34,772 Tourism 170,037 170,037 Fire 853,425 853,425 Streets 591,339 4,950 596,289 Vehicle Services 36,075 36,075 Police 2,951,915 28 2,951,943 Parks & Recreation 985,908 985,908 Airport 89,964 89,964 Principal on Long-Term Debt 73,342 73,342 Interest on Long-Term Debt 17,485 17,485 Capital Outlay Total Expenditures 6,349,030 264,979 6,614,009 Excess of Revenues Over (Under) Expenditures (734,972) (3,133) (738,105) OTHER FINANCING SOURCES (USES) Transfers In/(Out) 316,547 316,547 Sale of Real and Personal Property Proceeds from Long-Term Debt 109,103 109, 103 Total Other Sources (Uses) 425,650 425,650 Excess of Revenues & Other Financing Sources Over (Under) Expenditures & Other Financing Uses (309,322) (3,133) (312,455) Fund Balance-Begining of Year 3,649,995 888,641 4,538,636 Eund Balance-E -Ends ofYear $ 3,340.673 $ 885,508 $ 4,226,181 The accompanying notes are an integral part of this statement. -19- EXHIBIT C-3 CITY OF LAMESA Lamesa, Texas RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2024 Net Change in Fund Balances - Total Governmental Funds $ (312,455) Amounts reported for governmental activities in the statement of activities ("SOA") are different because: The City changed the reporting of the golf course fund from an enterprise fund to a governmental fund. This resulted in the transfer of capital asset long-term debt, and pension balances from enterprise funds to government funds. This resulted in a net increase in governmental net position of $141,38 141,380 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their useful lives as depreciation expense. This is the amount of capital outlays during the current period. 1,026,049 The depreciation of capital assets is not reported in the funds. This is the amount of current depreciation on these assets. (590,001) Certain revenues are unavailable in the funds. These are the amounts that have not been collected and are therefore do not provide current financial resources This is the amount that these accounts have changed during the current period. 47,094 Proceeds from long-term debt proide current financial resources to government funds, but issuing debt increases the long-term liabilities in the statement of net position. (109,103) Repayment of debt principal is an expenditure in the governmental funds, but a reduction of long-term debt in the statement of net position. This amount the total debt principal repaid for long-term debt. 73,342 The net revenue or expense of internal service funds are reported with governmental activities. 75,797 Some expenses reported in the statement of activities do not require current financial resources and therefore are not reported as expenditures in governmental funds. Change in pension expense 173,903 Change in compensated absences 18,857 192,760 Change in Net Position Statement of Activities $ 544,863 The accompanying notes are an integral part of this statement. -20- EXHIBIT D-1 CITY OF LAMESA Lamesa, Texas STATEMENT OF NETI POSITION PROPRIETARY FUNDS September 30, 2024 Business- -Type Activities Major Enterprise Funds Governmental Activities Solid Municipal Housing Inlemal Water Wastewater Waste Golf Course Program Totals Service Fund. ASSETS CurrentAssets: Cash and Cash Equivalents $ 4,425,604 $ 3,214,015 S 1,597,986 $ 142,084 $ 9,379,689 $ 1,544,876 Receivables, Net of Allowances 466,038 149,036 295,199 910,273 Leases Receivable current 31,675 31,675 Duef from Other Funds 1,679 5,367 75,000 82,046 96,624 Duef from Other Govemments 417,051 Inventory 417,051 Restricted Assets: Cash and Cash Equivalents 666,682 2,322,283 2.988.965 Total CurrentAssets 6,008,729 3,368,418 4,290,468 142,084 13,809.699 1,641.500 Non-Current Assets: Leases Receivable 10,064 10,064 Net Pension Asset 193,740 63,539 167,338 424,617 306,819 Land 67,322 95,540 143,957 Construction in Progress 4,306,835 387,515 1,478,897 6,173,247 214,700 Buildings and Improvements, net 111,383 16,885 86,432 14,089,055 Improvements other than buildings, net 13,300,091 788,964 4,189,555 Infrastructure, net 4,189,555 2,203,143 Vehicles, Machinery and Equipment, net 407,690 341,317 1,454,136 Right-to-Use Leased Equipment Water Rights, net 1,199,351 1,199,351 Total Non-CurrentA Assets 23.786,031 1.693.760 3,330,760 28,810,551 TOTALA ASSETS $ 29,794,760 ) 5,062,178 S 7.621.228 5 142.084 9 42.620.250 1,641.500 DEFERRED OUTFLOWS OF RESOURCES: 80,505 $ 204,281 Deferred Outflows Pension 93,208 30,568 Deferred Charge on! Bond Refunding 9.762 67,306 77,068 TOTALI DEFERRED OUTFLOWS OF RESQURCES 102,970 97,874 80,505 281,349 LIABILITIES CurrentLiabililies Accounts Payable $ 66,663 $ $ $ $ 2,600 69,263 $ Accrued Payroll 20,897 4,726 12,183 37,806 Accrued Interest Expense 5,163 50,354 36,412 91,929 Due to Other Funds 80,067 5 34,000 114,072 Non-current Customer Deposils Liabilities 292,684 292,684 Compensated Absences 19,025 11,476 24,317 54,818 Premium on Debt Issuances 18,464 264,447 282,911 Due within one year 575,950 286,264 449,710 14,894,745 1,311,924 Duei inr more than oney year 8,069,245 3,917,652 2,907,848 804,572 Landfill Closure/Posiclosure 804,572 Totall Liabilities 9,148.158 4,534.919 4,235,047 36,600 17,954,724 DEFERREDI INFLOWS OF RESOURCES: Deferred Inflows Pension 14,659 4,808 12,662 32,129 Deferred Inflows Grant & Contributions Income 664,770 1,285,274 1,950,044 Deferred Inflows Lease Income 41,739 41,739 Total Deferred Inflowsofs Resources 721.168 1.290.082 12,662 2,023.912 NET POSITION Neti investment in capital assels 14,918,568 (2,838,142) 1,323,575 13,404,001 112,116 Restricted 6,632 105,484 Unrestricted 5,103.204 2,173,193 2,130,449 9,406.846 1,641.500 Total NetF Posilion 20,028,404 (664.949) 3,454,024 105,484 22,922,963 1,641,500 Thea accompanying noles are an integral part of this statement. -21- EXHIBIT D-2 CITY OFL LAMESA Lamesa, Texas STATEMENT OFF REVENUES, EXPENSES, AND CHANGES INE FUND NET POSITION-- PROPRIETARYI FUNDS Fori the' Year Ended September 30, 2024 Business-T Type Activities - Major Enterprise Funds Govemmental Activities Solid Municipal Housing Intemal Water Wastewater Waste Golf Course Program Totals Service Fund Operating Water Revenue Revenues $ 3,926,714 $ $ $ $ 3,926,714 $ Wastewater Revenue 1,177,805 1,177,805 Sanitation Charges 2,367,040 2,367,040 Municipal Golf Course Fees Commercial Rentals and Fees 7,087 499,138 506,225 1,024,802 Interdepartmental Bllings Total Operating Revenues 3.933.801 1.177,805 2.367.040 499,138 7.977.784 1.024,802 Operating Expenses 418,910 418,910 Housing Assistance Payments 2,037,972 Personnel Services 1,003,566 284,440 749,966 975,741 Water Treatment andF Purchases 723,529 723,529 Supplies 180,644 42,875 44,405 267,924 Repairs and! Maintenance 407,972 157,943 238,601 804,516 Utilities and Fuel 169,104 92,718 138,919 400,741 Noncapitalized Equipment 803,338 Other Operating 274,342 131,918 337,689 59,389 Depreciation and Amortization 1,196,509 330,623 1,527,132 Total Operating Expenses 3,955,666 709,894 1,840,203 478,299 6,984,062 975,741 Operating Income (Loss) (21,865) 467,911 526,837 20,839 993,722 49,061 Non-Operating Revenues (Expenses) 293,762 Interest Revenue 122,643 50,168 120,624 327 26,736 Gain (Loss) on Sale of Assets 31,554 Intergovernmental Revenue 31,554 Miscellaneous Income (Expense) 6,221 37,889 44,110 Interest Expense (197,586) (126,708) (131,541) (455,835) Cost of Debt Issuance (4.879) (3.060) (7,939) Total Non-Operating! Revenues (Expenses) (73,601) (79,600) 58,526 327 (94.348) 26,736 Income Before Contributions and Transfers (95.466) 388.311 585,363 21,166 899,374 75,797 Contributions and Transfers Grant Revenues 905,260 905,260 Capital Contribution 273,072 273,072 Transferf from/(to) Other Funds (113,000) (121.900) (81.647) (141.382) (457,929) Total Contributionsandi Transfers 792.260 151,172 (81.647) (141.382) 720,403 Changei in Net Position 696,794 539,483 503,716 (141,382) 21,166 1,619,777 75,797 NETI POSITION Net Position, Beginning of Year 19,331,610 (1.:204,432) 2,950,308 141,382 84,318 21,303,186 1,565,703 Net Position, End of Year > 20,028,404 S (664.949) > 3,454,024 $ 105,484 S 22,922,963 o 1,641,500 The accompanying notes are an integral part of this statement. -22- EXHIBIT D-3 -23- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS September 30, 2024 Note A: Summary of Significant Accounting Policies The City of Lamesa, Texas (the City) operates under a Council - City Manager form of government. The City incorporated in 1917. The City provides a range of services, including tourism, general and administrative, airport, police and fire protection, maintenance of streets and other infrastructure, and recreational activities. The City also provides utilities for water, sewer, and solid waste, as well as operating the municipal golf course and providing housing assistance to local residents. The accounting and reporting policies of the City relating to the activities included in the accompanying financial statements conform to generally accepted accounting principles (GAAP) as applicable to state and local governments. Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants in the publication entitled Audits of State and Local Governmental Units and by the Financial Accounting Standards Board (when applicable). The City's reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements. 1. The Reporting Entity As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units, if applicable. The City's financial statements include accounts of all City operations. Component units are organizations for which the City is financially accountable and all other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Financial accountability exists if the City appoints a voting majority of an organization's governing board and is either able to impose its will on that organization or there is a potential for the organizations to provide specific financial benefits to, or impose specific financial burdens on, the City. The City may be financially accountable for governmental organizations with a separately elected governing board, a governing board appointed by another government, or a jointly appointed board that is fiscally dependent on the City. The financial statement of the component units may be discretely presented in a separate column from the primary government or blended with the financial statements of the primary government. The criteria for including organizations as component units within the City's reporting entity, as set forth in Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether: The organization is legally separate (can sue and be sued in their own name) The City holds the corporate powers of the organization The City appoints a voting majority of the organization's board The City is able to impose its will on the organization The organization has the potential to impose a financial benefitburden on the City There is fiscal dependency by the organization on the City -24- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 2 September 30, 2024 Note A: Summary of Significant Accounting Polices (Continued) Based on the aforementioned criteria, the City of Lamesa has two component units, the Lamesa Economic Development Corporation (LEDC) and the Lamesa Economic Alliance Project (LEAP). The LEDC and LEAP were formed to provide economic growth in the City. The governing boards of the LEDC and LEAP are appointed by the City Council. The City has assigned a portion of its sales tax revenues to the LEDC and LEAP for economic development within the City. During the fiscal year ended September 30, 2024 the City allocated $345,111 of its sales tax revenue to the LEDC and $345,111 to the LEAP. Complete financial statements for the component units can be obtained from their office at 123 Main Avenue, Lamesa, Texas 79331. 2. Basis of Presentation, Basis of Accounting a. Basis of Presentation Government-wide Statements: The statement of net position and the statement of activities include the financial activities of the overall government. Eliminations have been made to minimize the over-reporting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. The City does not allocate indirect expenses in the statement of activities. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all of taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the City's funds, with separate statements presented for each fund category. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The City reports the following major governmental funds: General Fund: This is the primary operating fund of the City. It accounts for all financial resources of the City except those required to be accounted for in another fund. -25- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 3 September 30, 2024 Note A: Summary of Significant Accounting Polices (Continued) The City also reports nonmajor governmental fund types: Special Revenue: The City accounts for funds received or charged that are restricted by third parties in these accounts. The City reports the following major enterprise funds: Water and Wastewater Funds: These funds account for the revenues and expenses associated with providing water and sewer services to the citizens of the City. Solid Waste Fund: This fund accounts for the revenues and expenses associated with providing solid waste service to the citizens of the City. Municipal Golf Course: This fund accounts for the revenues and expenses associated with operating the municipal golf course as a service to the public. Beginning October 1, 2023, this fund was transferred to and accounted for in the General Fund. Housing Program: This fund accounts for the revenues and expenses associated with the City operated housing assistance program. Enterprise Funds: Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. Additionally, the City reports an Internal Service Fund which is used to account for workers' compensation insurance, property insurance, and health insurance provided to the departments of the city. b. Measurement Focus, Basis of Accounting Government-wide and Proprietary Fund Financial Statements: These financial statements are reported using the economic resources measurement focus. They are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. -26- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 4 September 30, 2024 Note A: Summary of Significant Accounting Policies- - Continued Governmental Fund Financial Statements: Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year-end. Revenues from local sources consist primarily of property taxes, franchise taxes, and gross receipts taxes. Property tax revenues and revenues received from the State are recognized under susceptible-lo-accrual concept. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned, since they are both measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims, and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds from general long-term debt and acquisitions under capital leases are reported as other financing sources. 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. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses. C. Fund Balance Classification Non-spendable: This classification includes the portion of net resources that cannot be spent because of their form (i.e. inventory, long-term loans, or prepaids) or because they must remain in-tact such as the principal of an endowment. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Currently, the City's restricted fund balances are made up of $885,508 restricted for governmental activities ($413,598 for grant projects; $394,174 for tourism; $77,736 other restricted). Additionally, there was $112,116 restricted in the business-type funds ($105,484 for HUD programs; $6,632 for grant projects). Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the Board of Directors removes or changes the specified use by taking the same type of action (resolution) that was employed when the funds were initially committed. Currently, the City does not have any committed fund balances. -27- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 5 September 30, 2024 Note A: Summary of Significant Accounting Policies (continued) Unassigned: This classification includes the residual fund balance for the General Fund. Unassigned amounts are generally available for any purpose. Negative residual amounts for all other governmental funds are reported in this classification. When the City incurs an expenditure or expense for which both restricted and unrestricted resources may be used, it is the City's policy to use restricted resources first, then unrestricted resources. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds. The City reserves the right to selectively spend UnasgnedlUnvestnicted resources first to defer the use of these other classified funds. 3. Financial Statement Amounts a. Deposits and Investments For purposes of the statement of cash flows, cash in bank, restricted cash, certificates of deposit, treasury bills, and investment pools are considered to be cash equivalents. Restricted Cash and Cash Equivalents consisted of funds restricted in the following business-type funds as of September 30, 2024. Water Fund (grant projects) - $666,682 Solid Waste (Landfill Closure/Postclosure Reserves) - $804,572 Solid Waste (debt proceeds for construction) - $1,517,711 Housing Program (HUD Program) - $105,484 Investments for the City are reported at fair value. b. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1st for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1st of the year following the year in which imposed. On January 1st of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available when they become due or past due and receivable within the current period. Allowances for uncollectible tax receivables are based upon historical experience in collecting property taxes. As of September 30, 2024, the amount deemed uncollectible by this estimate was $290,244. Uncollectible personal property taxes are periodically reviewed and written off, but the City is prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature. -28- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 6 September 30, 2024 Note A: Summary of Significant Accounting Policies (continued) C. Inventories and Prepaid Items Inventory is valued at the lower of FIFO cost (first in, first out) or market. Inventory in the Water and Wastewater Fund consists of supplies held for future use. Certain payments to vendors reflect cost applicable to future periods and are recorded as prepaid items. d. Capital Assets Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed assets are recorded at their estimated fair market value at the date of the donation. The cost of normal maintenance and repairs that do not add to the value of the assets' lives are not capitalized. A capitalization threshold of $5,000 is used. Capital assets are being depreciated using the straight-line method over the estimated useful lives: Estimated Asset Class Useful Lives Infrastructure 20-50 Buildings 20-50 Improvements other than buildings 20 Machinery and Equipment 5-10 Office Equipment and Furniture 5-10 Computer Equipment 3 e. Receivable and Payable Balances Receivables as of year-end for the City's individual major funds and non-major, internal service, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts are as follows: Governmental Business-Type Activities Activities Receivables Customer Accounts $ 75,596 $ 449,337 Unbilled Revenue 609,592 Property Taxes 595,364 Franchise Fees 96,542 Hotel Occupancy Taxes 26,494 Sales Tax 352,490 Leases 41.739 Gross Receivables $ 1,146,486 $ 1,000,668 Less: Allowance for Uncollectibles (344. 469) (148.656) Net Total Receivables 802,017 952,012 -29- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 7 September 30, 2024 Note A: Summary of Significant Accounting Policies (continued) f. Interfund Activity Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers In and Transfers Out are netted and presented as a single Transfers" line on the government-wide statement of activities. Similarly, interfund receivables and payables are netted and presented as a single Internal Balances" line of the government-wide statement of net position. g. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenseslexpenditures during the reporting period. Actual results could differ from those estimates. h. Compensated Absences Compensated absences (general leave) for the City includes both vacation and sick pay. General leave is based on an employee's length of employment and is earned ratably during the span of employment. Upon termination, employees are paid for any accrued general leave earned as set forth by personnel policy. Vested or accumulated general leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and at fund liability of the governmental fund that will pay it. Amounts of vested or accumulated general leave that are not expected to be liquidated with expendable available financial resources are maintained separately and represents a reconciling item between the fund and government-wide presentations. Vested or accumulated general leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. -30- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 8 September 30, 2024 Note A: Summary of Significant Accounting Policies (continued) i. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and SO will not be recognized as an outflow of resources expenselexpenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows ofresources, represents an acquisition of net position that applies to a future period(s) and SO will not be recognized as an inflow of resources (revenue) until that time. These amounts are deferred and recognized as an inflow of resources in the period when the amounts become available. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS's Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Note B: Compliance and Accountability 1. Finance-Related Legal and Contractual Provisions In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures', violations of finance-related legal and contractual provisions, if any, are reported below, along with actions taken to address such violations: Violations Action Taken None Reported Not Applicable -31- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 9 September 30, 2024 Note C: Deposits and Investments The City's funds are required to be deposited and invested under the terms of a depository contract. The depository bank deposits for safekeeping and trust with the City's agent bank approved pledged securities in an amount sufficient to protect City funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC") insurance. Cash Deposits At September 30, 2024, the carrying amount of the City's deposits (cash, certificates of deposit, and restricted cash) was $16,006,213 and the bank balance was $16,221,956. The City's cash deposits at September 30 and during the year then ended, were entirely covered by FDIC insurance or by pledged collateral held by the City's agent bank in the City's name. Investments The City is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. The Public Funds Investment Act ("Act") requires an annual audit of investment practices. Audit procedures in this area conducted as a part oft the audit of the basic financial statements disclosed that in the areas of investment practices, management reports an establishment of appropriate policies, the City adhered to the requirements of the Act. Additionally, investment practices of the City were in accordance with local policies. State statutes authorize the City to invest in 1) obligations of, or guaranteed by, governmental entities as permitted by Government Code 2256.009; 2) certificates of deposit and share certificates as permitted by Government Code 2256.010; 3) fully collateralized repurchase agreements permitted by Government Code 2256.011; 4) a securities lending program as permitted by Government Code 2256.0115; 5) banker's acceptances as permitted by Government Code 2256.013; 6) commercial paper as permitted by Government Code 2256.013; 7) No-load money market mutual funds and no-load mutual funds as permitted by Government Code 2256.014; 8) a guaranteed investment contract as an investment vehicle for bond proceeds, provided it meets the criteria and eligibility requirements established by Government Code 2256.015; and 9) public funds investment pools as permitted by Government Code 2256.016. Temporary investments are reported at cost, which approximates market, and are secured, when necessary, by the FDIC or obligations of items 1-4 above at 102% of the investment's market value. -32- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 10 September 30, 2024 Note C: Deposits and Investments As of September 30, 2024, the following are the City's cash equivalents and investments with respective maturities and credit rating: Fair Value Measurement Using Quoted Market Prices Maturity in Less Maturity In Credit Type of Investment Book Value (Level1) Than 1 Year 1-2Years Rating Cash $13,111,580 $ $1 13,111,580 $ N/A Investments not Subject to Fair Value: FDIC insured certificates of deposit 2,894,633 2,894,633 N/A Investments Measured at Fair Value AA+ U.S. Treasury Bills 1,221,257 1,221,257 1,221,257 Investment pools: TexStar 1,643.352 1.643.352 AAAm Total cash and cash equivalents 18.870,822 1,221,257 18.870,822 Additionally, the City's component units held cash and cash equivalents amounting to $3,601,061 of which $800,000 was held in certificates of deposit. In accordance with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for Investment Pools, the City's investments with a maturity date of greater than one year have been recorded at fair value based upon quoted market prices as of September 30, 2024 with increases or decreases in fair value being recorded as a component of earnings on investments. Investment Pools are measured at amortized cost or fair value and are not subject to level reporting. Public Funds Investment Pools Public funds investment pools in Texas ("Pools") are established under the authority of the Interlocal Cooperation Act, Chapter 79 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment Act (the "Act"), Chapter 2256 of the Texas Government Code. In addition to other provisions of the Act designed to promote liquidity and safety of principal, the Act requires Pools to: 1) have an advisory board composed of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool; 2) maintain a continuous rating of now lower than AAA or AAA-m or an equivalent rating by at least one nationally recognized rating service; and 3) maintain the market value of its underlying investment portfolio within one half of one percent of the value of its shares. -33- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 11 September 30, 2024 Note C: Deposits and Investments Analysis of Specific Deposit and Investment Risks GASB Statement No. 40 requires a determination as to whether the City was exposed to the following specific investment risks at year end and if sO, the reporting of certain related disclosures: a. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings of securities by nationally recognized agencies are designed to give an indication of credit risk. At year end, the City was not significantly exposed to credit risk. b. Custodial Credit Risk Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the deposits are uncollateralized, collateralized with securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in the name of the government, and are held by either the counterparty or the counterparty's trust department or agent but not in the City's name. At year end, the City was not exposed to custodial credit risk. C. Concentration of Credit Risk This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year end, the City was not exposed to concentration of credit risk. d. Interest Rate Risk This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end, the City was not exposed to interest rate risk. e. Foreign Currency Risk This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, the City was not exposed to foreign currency risk. Note D: Due to Component Units The City recorded a liability to the component units in the amount of $117,497 for the pass through of sales taxes not paid as of September 30, 2024. -34- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 12 September 30, 2024 Note E: Water Rights and Related Debt with CRMWA The City, along with several West Texas municipalities, entered into various contracts with the Canadian River Municipal Water Authority, to participate in the construction and maintenance of water gathering, holding, treatment, and transmission facilities. Under the agreements, CRMWA agreed to issue revenue bonds to finance construction and maintenance of the facilities, and the City agreed to pay their share of the total annual debt service requirements. The following schedules comprise the debt outstanding related to the CRMWA contracts as of September 30, 2024: Balance Balance Water Facilities Debt: 10-01-23 Additions Decreases 9-30-24 Series 2017, Refunding, CUP 137,086 23,669 113,417 Series 2020, Refunding, CUP 749,250 80,850 668,400 Series 2021, Refunding, CUP 232,294 159,089 73,205 Series 2023, Refunding, CUP 227.125 59,033 168.092 Total Capital Assets Not Being Depreciated $ 1.345.755 322,641 $ 1,023.114 Water Facilities Debt Maturity Interest Rates Revenue Refunding Bonds, Conjunctive Use Groundwater Supply Project, Series 2017 2029 3.0%-5.0% Revenue Refunding Bonds, Conjunctive Use Groundwater Supply Project, Series 2020 2031 3.0%-5.0% Revenue Refunding Bonds, Conjunctive Use Groundwater Supply Project, Series 2021 2025 5.0% Revenue Refunding Bonds, Conjunctive Use Groundwater Supply Project, Series 2023 2027 5.0% The City paid $54,715 in interest related to this debt for the year ended September 30, 2024. Debt service requirements on CMRWA debt outstanding at September 30, 2024, are as follows: CMRWA Year Ending September 30, Principal Interest Total 2025 $ 260,039 $ 46,328 $ 306,367 2026 195,956 35,705 231,661 2027 161,540 26,100 187,640 2028 129,561 18,519 148,080 2029 118,542 12,484 131,026 2030-2031 157,476 8.272 165,748 Total $ 1,023.114 $147.408 $1,170.522 -35- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 13 September 30, 2024 Note E: Water Rights and Related Debt with CRMWA (continued) Investment in water facilities at cost as of September 30, 2024 is as follows: Cost: Beginning Additions Deletions/Other Ending CRMWA - Water Rights $6 6,680,247 $ $ $ 6,680,247 Accumulated Amortization: CRMWA - Water Rights (5.211,183) (269,713) (5.480,896) Net Investment in Water Facilities $1.469.064 $(269.713) 1.199,351 Note F: Capital Assets On October 1, 2023, the golf course fund was transferred from a business-type activity to governmental activities. The beginning balance of the following schedules has been adjusted to refiect this transfer. Capital asset activity for the period ended September 30, 2024, was as follows: Governmental Balance Reclass/ Balance Activities: 10-01-23 Additions Decreases 9-30-24 Capital Assets Not Being Depreciated Land $ 94,350 $ $ $ 94,350 Construction in Progress Total Capital Assets Not Being Depreciated D 94.350 $ $ 94.350 Depreciable Assets Buildings and Improvements $ 6,271,712 $ 242,051 $ $ 6,513,763 Vehicles and Equipment 3,409,417 373,021 3,782,438 Machinery and Equipment 2,084,759 301,874 2,386,633 Right-to-Use Leased Equipment 184.172 109,103 293,275 Total Capital Assets Being Depreciated $ 11.950.060 $ 1.026.049 D S 12,976.109 Less Accumulated Depreciation for: Buildings and improvements $ 2,368,696 $ 272,006 $ $ 2,640,702 Vehicles and Equipment 2,827,623 161,837 2,989,460 Machinery and Equipment 1,794,622 97,503 1,892,125 Right-to-Use Leased Equipment 20.328 58.655 78.983 Total Accumulated Depreciation $ 7,011.269 $ 590,001 $ 7,601.270 Total Capital Assets Being Depreciated, Net $ 4.938.791 $ 436.048 $ $ 5,374.839 Governmental Activities Capital Assets, Net $ 5.033,141 $ 436.048 $ $ 5,469.189 Depreciation was charged to governmental activities as follows: Administration $ General Government 49,810 Tourism 12,273 Fire 50,827 Police 76,398 Vehicle Services 1,758 Streets 149,709 Parks and Recreation 249,226 $ 590.001 -36- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 14 September 30, 2024 Note F: Capital Assets (continued) Business-Type Balance Reclasses/ Balance Activities: 10-01-23 Additions Decreases 9-30-24 Capital Assets Not Being Depreciated Land $ 306,820 $ $ $ 306,820 Construction in Progress 10.606.749 1,557,160 (5.990,663) 6,173,246 Total Capital Assets Not Being Depreciated $ 10,913,569 $ 1,557,160 $(5,990,663) $ 6.480,066 Depreciable Assets Buildings and Improvements $ 2,686,647 $ $ $ 2,686,647 Improvements Other Than Buildings 15,559,506 518,465 5,990,663 22,068,634 Vehicles, Machinery and Equipment 10,415,485 540,928 10,956,413 Infrastructure 6,816,494 6,816,494 Right-to-Use Leased Equipment Total Capital Assets Being Depreciated $ 35,478,132 $ 1,059.393 $5.990,663 $ 42,528,188 Less Accumulated Depreciation for: Buildings and Improvements $ 2,419,881 $ 52,066 $ $ 2,471,947 Improvements Other Than Buildings 7,443,488 536,091 7,979,579 Vehicles, Machinery and Equipment 8,254,419 498,851 8,753,270 Infrastructure 2,456,527 170,412 2,626,939 Right-to-Use Leased Equipment Total Accumulated Depreciation $ 20.574.315 $ 1.257,420 $ $21.831.735 Total Capital Assets Being Depreciated, Net $ 14.9 903.817 $ (198.027) $5.990.663 $20,696.453 Governmental Activities Capital Assets, Net $25,817,386 $1 1.359,133 $ $27.176.519 Depreciation was charged to business-type activities as follows: Water $ 926,797 Solid Waste 330,623 $1 1.257.420 -37- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 15 September 30, 2024 Note G: Leases Receivable a. The City, as lessor, has a lease agreement with a local businessman whereby a tract of land is being leased for agricultural purposes. The lease has an initial lease term of January 15, 2022 and terminates on December 31, 2026. The agreed rent to be paid by the Tenant to the City is the sum of $10,500 per year. Lease income of $0 and interest income of $0 was recognized for the fiscal year ending September 30, 2023. An interest rate of 4.25% is being used to amortize this lease. The tenant is currently delinquent in rent payments as no payments have been made in fiscal years 2023 or 2024. Future rental payments due from the tenant at September 30, 2024 are as follows: Business-Type Activities: Principal Interest Total : Year Ending September 30, 2025 $ 27,752 $ 3,748 $ 31,500 2026 10,064 436 10,500 Totals $ 37.816 $ 4.184 $ 42.000 b. The City, as lessor, has a lease agreement with a communications company whereby a space on a water tank is being leased for placement of wireless communications equipment. The lease has an initial lease term of June 1, 2020 and terminates on May 31, 2025. The agreed rent to be paid by the Tenant to the City is the sum of $400 per month. Lease income of $3,787 and interest income of $213 was recognized for the fiscal year ending September 30, 2024. An interest rate of 4.25% is being used to amortize this lease. Future rental payments due from the tenant at September 30, 2024 are as follows: Business-Type Activities: Principal Interest Total : Year Ending September 30, 2025 3,923 77 4,000 Totals $ 3.923 $ 77 $ 4,000 Note H: Long-Term Obligations Long-term obligations include debt and other long-term liabilities. During each year while bonds are outstanding, the City is required to levy and collect sufficient ad valorem taxes to provide for the payment of principal and interest as it becomes due. The City complied with all significant limitations and restrictions contained in the bond indentures. -38- CITY OF LAMESA Lamesa, Texas NOTES TO THE FINANCIAL STATEMENTS, Page 16 Year Ended September 30, 2024 Note H: Long-Term Obligations (continued) On October 1, 2023, the golf course fund was transferred from a business-type activity to governmental activities. The beginning balance of the following schedules has been adjusted to reflect this transfer. 1. Changes in long-term obligations for the year ended September 30, 2024, are as follows: Due Beginning Ending Within Governmental Balance Increases Decrease Balance One Year Activities: Tax Notes $ 146,340 $ $ 15,364 $1 130,976 $ 35,333 Direct Financings 57,276 13,984 43,292 14,887 Leases 166,001 109,103 43,993 231,111 47,698 Compensated Absences 141,117 18,857 122,260 Total governmental activities 510.734 109,103 92.198 $527,639 $.97.918 Due Beginning Ending Within Business-Type Balance Increases Decrease Balance One Year Activities: General Obligation Bonds $ 3,625,000 $ $ 105,000 $ 3,520,000 $ 110,000 Certificates of Obligation 9,535,000 352,000 9,183,000 367,000 Tax Notes 1,882,231 239,336 1,642,895 420,531 CRMWA Bonds 1,345,755 322,642 1,023,113 260,039 Bond Issuance Premium 321,228 38,317 282,911 Direct Financings 1,091,276 253,616 837,660 154,355 Compensated Absences 64,977 10,159 54.818 Total business-type activities $17.865.467 $1,321.070 $16.544.397 $1.311,925 The maturity dates, and interest rates for tax notes, direct financings, general obligation bonds, and certificates of obligation are as follows: Amount Amount Of Original Outstanding Interest Rate Maturity Issue 9/30/2024 Governmental Activities: Tax Notes - Descriptions Limited Tax Note, Series 2019 1.940% 10-15-2026 $ 147,775 $ 67,160 Tax Notes, Series 2022 2.989% 09-01-2029 108,599 63,816 a 130.976 Direct Financings - Descriptions Government Obligation Contract - 3 Mowers 6.28% 05-16-2027 60,637 $ 43.292 $ 43.292 Leases - Descriptions Toro Groundsmaster: 3500-D Mower 3.03% 11-28-2027 $ 46,249 $ 30,100 Toro Greensmaster TriFlex: 3300 3.03% 12-28-2027 49,532 33,041 Toro Reelmaster! 5510-D 4,29% 06-30-2028 88,391 68,036 18 Golf Carts 6.75% 10-26-2028 109,103 99.934 231,111 -39- CITY OF LAMESA Lamesa, Texas NOTES TO THE FINANCIAL STATEMENTS, Page 17 Year Ended September 30, 2024 Note H: Long-Term Obligations (continued) Amount Amount Of Original Outstanding Interest Rate Maturity Issue 9/30/2024 Business-Type Activities: General Obligation Bonds - Descriptions General Obligation Refunding Bonds Series 2019 3.00% to 4.00% 09-30-2046 3,925,000 $ 3,520,000 Certificates of Obligation - Descriptions Tax and Revenue C.O. - Series 2021 1.7518% 02-01-2061 7,035,000 6,660,000 Tax andl Revenue C.O. Series 2022 4.08% 12-01-2032 2,750,000 2,523.000 9,183.000 Tax Notes - Descriptions Limited Tax Note, Series 2019 1.940% 10-15-2026 $ 1,461,225 $ 648,839 Tax Notes, Series 2022 2.989% 09-01-2029 1,702,395 994.056 1,642.895 Direct Financings - Descriptions Public Property Finance Act Contract - Compactor 2.89% 05-26-2028 751,903 $ 350,283 Public Property Finance Act Contract Vacuum Truck 5.65% 05-10-2030 554,097 487.377 837.660 2. Debt service requirements on the City's long-term debt, excluding CRMWA obligations, at September 30, 2024, are as follows: Governmental Activities Year Ending September 30. Principal Interest Total 2025 $ 50,220 $ 5,382 $ 55,602 2026 51,851 3,589 55,440 2027 49,136 1,721 50,857 2028 13,991 693 14,684 2029 9,070 271 9,341 174,268 $11,656 D 185.924 Business-Type Activities Year Ending September 30. Principal Interest Total 2025 $ 1,051,885 $ 414,116 $ 1,466,001 2026 1,080,938 381,797 1,462,735 2027 1,109,426 348,484 1,457,910 2028 915,411 316,674 1,232,085 2029 768,110 285,305 1,053,415 2030-2034 2,732,785 1,076,366 3,809,151 2035-2039 1,620,000 752,438 2,372,438 2040-2044 1,865,000 509,303 2,374,303 2045-2049 1,395,000 288,273 1,683,273 2050-2054 1,035,000 186,941 1,221,941 2055-2059 1,130,000 92,275 1,222,275 2060-2061 480.000 8,446 488.446 $ 15,183.555 $4.660.418 $ 19,843.973 -40- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 18 September 30, 2024 Note H: Long-Term Obligations (continued) 3. Leases Payable a. The City entered into a non-cancellable lease agreement in the year ended September 30, 2023 for a Toro Groundsmaster 3500-D. This lease period is for 60 months, beginning October 2022 and ending November 28, 2027, with monthly payments of $832 including principal and interest. The discount rate being used is 3.03%. The lease agreement has no variable payments or residual value guarantees. This lease is being accounted for in the General Fund, a governmental fund type. b. The City entered into a non-cancellable lease agreement in the year ended September 30, 2023 for a Toro Greensmaster TriFlex 3300 to be used on the golf course. This lease period is for 60 months, beginning December 2022 and ending December, 2027, with monthly payments of $891 including principal and interest. The discount rate being used is 3.03%. The lease agreement has no variable payments or residual value guarantees. This lease is being accounted for in the General Fund, a governmental fund type. C. The City entered into a non-cancellable lease agreement in the year ended September 30, 2023 for a Toro Reelmaster 5510-D to be used on the golf course. This lease period is for 60 months, beginning June 2023 and ending June 2028, with monthly payments of $1,640 including principal and interest. The discount rate being used is 4.29%. The lease agreement has no variable payments or residual value guarantees. This lease is being accounted for in the General Fund, a governmental fund type. d. The City entered into a non-cancellable lease agreement in the year ended September 30, 2024 for 18 golf carts to be used on the golf course. This lease period is for 60 months, beginning October 2023 and ending October 2028, with monthly payments of $1,424 including principal and interest. The discount rate being used is 6.75%. The lease agreement has no variable payments or residual value guarantees. This lease is being accounted for in the General Fund, a governmental fund type. The future payments required for right-to-use leased asset liabilities at September 30, 2024 are as follows: Governmental Activities Year Ending September 30, Principal Interest Total 2025 $ 47,698 $ 11,156 $ 58,854 2026 48,915 8,515 57,430 2027 51,096 6,334 57,430 2028 31,941 4,239 36,180 2029 51.461 289 51.750 231,111 30.533 261.644 -41- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 19 September 30, 2024 Note :: Interfund Balances and Activities Interfund balances at September 30, 2024 consisted of the following individual fund balances: Due from Due to Fund Other Funds Other Funds General Fund: Business-Type Funds: Wastewater 300 Solid Waste 5 Housing Program 34,000 Water Fund 1,679 Internal Service Fund 96,624 Component Units: Lamesa EDC 65,114 58,749 Lamesa EAP 878 58,748 Total General Fund 99.997 216,100 Business-Type Funds: General Fund 1,979 34,005 Wastewater 5,067 Solid Waste Fund 75,000 Water Fund 5,067 75,000 Total Business-Type Funds 82,046 114,072 Internal Service Fund: General Fund 96,624 Total Internal Service Fund 96,624 Component Units: Lamesa EDC General Fund 58,749 65,114 Lamesa EAP: General Fund 58.748 878 Total Component Units 117,497 65,992 Total $ 396,164 $ 396.164 These interfund receivables and payables arise out of the normal course of business. All balances are expected to be paid within one year. 42- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 20 September 30, 2024 Note J: Interfund Transfers Interfund transfers for the year ended September 30, 2024 consisted of the following: Fund Transfers In Transfers Out General Fund: Business-Type Funds $ 316.547 $ Total General Fund 316,547 Proprietary Funds: General Fund 316,547 Total $ 316.547 $ 316.547 These interfund transfers represent cash flow transfers between funds in the normal course of business. Additionally, the Proprietary Funds transferred $141,382 to Governmental Funds for the transfer of golf course capital assets, leases, and pension balances. This resulted from a change in reporting the golf course in proprietary funds to the general fund (a governmental fund). -43- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 21 September 30, 2024 Note K: TMRS-Pension Plan (continued) Plan Description The City of Lamesa participates as one of 934 plans in the defined benefit cash-balance plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a 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 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 tmrs.com. All eligible employees of the city are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS. At retirement, the 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 payment options. Members may also choose to receive a portion of their benefit as al lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the total Member contributions and interest. Plan Year 2023 Plan Year 2022 Employee deposit rate 7.0% 7.0% Matching ratio (City to employee) 1.5 to 1 1.5 to 1 Years required for vesting 5 5 Service retirement eligibility (expressed as age / years ofservice) 60/5, 0/25 60/5, - 0/25 Updated Service Credit 100% 100% Annuity Increase (to retirees) 0% ofCPI 0%0 ofCPI -44- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 22 September 30, 2024 Note K: TMRS-Pension Plan (continued) Employees covered by benefit terms At the December 31, 2023 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 64 Inactive employees entitled to but not yet receiving benefits 110 Active employees 85 Total 259 Contributions Member contribution rates in TMRS are either 5%, 6% or 7% of the 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 of Lamesa were required to contribute 7% of their annual compensation. The actuarially determined contribution rates for the City of Lamesa were 3.83% and 4.07% in calendar years 2023 and 2024, respectively. The City's contributions to TMRS for the year ended September 30, 2024 were $179,843, which was equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2023, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total Pension Liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% 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 -45- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 23 September 30, 2024 Note K: TMRS-Pension Plan (continued) 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 100% of 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. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by the most recent Scale MP-2021 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 younger members who become disabled. The rates are projected on a fully generational basis by the most recent Scale MP-2021 to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2018 to December 31, 2022. The assumptions were adopted in 2023 and first used in the December 31, 2023 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the 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 by best estimate ranges of expected returns for each major asset class. The long-term expected rate of return is determined by weighting the expected return for each major asset class by the respective target asset allocation percentage. The target allocation and best estimates of the expected return for each major asset class in fiscal year 2024 are summarized in the following table: Long-Term Expected Target Real Rate of Retum Asset Class Allocation (Arithmetic) Global Equity 35.00% 6.70% Core Fixed Income 6.00% 4.70% Non-Core Fixed Income 20.00% 8.00% Other Public and Private 12.00% 8.00% Real Estate 12.00% 7.60% Hedge Funds 5.00% 6.40% Private Equity 10.00% 11.60% Total 100.00% -46- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 24 September 30, 2024 Note K: TMRS-Pension Plan (continued) 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 Members. 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. Change in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a)-(b) Balance at 12/31/22 $ 16,640,667 $ 16,966,726 $ (326,059) Changes for the year: Service cost 503,947 503,947 Interest 1,074,766 1,074,766 Change of benefit terms Difference between expected and actual experience (31,393) (31,393) Changes of assumptions (151,446) (151,446) Contributions - employer 160,309 (160,309) Contributions employee 292,992 (292,992) Net investment income 1,923,863 (1,923,863) Benefit payments, including refunds of employee contributions (1,433,261) (1,433,261) Administrative expense (12,305) 12,305 Other changes 1,127 (87) 1,214 Net changes (36.260) 931.511 (967.771) Balance at 12/31/23 $ 16,604,407 S 17,898,237 $ (1,293,830) 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 -percentage-point lower (5.75%) or -percentage-point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (5.75%) (6.75%) (7.75%) City's net pension liability/(asset) $ 457,185 $ (1,293,830) $ (2,764,267) -47- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 25 September 30, 2024 Note K: TMRS-Pension Plan (continued) 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 tmrs.com. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2024, the city recognized pension expense of $62,873. At September 30, 2024, the city reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Differences between expected and actual economic experience $ $ 17,553 Changes in actuarial assumptions $ $ 80,345 Difference between projected and açtual investment earnings $ 482,338 $ Contributions subsequent to the measure date December 31, 2023 $ 140,117 $ Total $ 622,455 $ 97,898 $276,661 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability for the year ending September 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Dec 31: 2024 $ 37,826 2025 140,709 2026 365,062 2027 (159,157) 2028 Thereafter Total $ 384,440 Note L: Contingent Liabilities The City participates in certain federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement, which may arise as the result of these audits, is not believed to be significant. From time to time the City is party to various legal proceedings which normally occur in governmental operations. These legal proceedings are not likely to have a significant adverse impact on the affected funds of the City. -48- CITY OF LAMESA Lamesa, Texas NOTES TO FINANCIAL STATEMENTS, Page 26 September 30, 2024 Note M: Closure and Post-closure Care Cost State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site after closure. In addition to operating expense related to current activities oft the landfill, a related liability will be recognized in the Long-Term Debt Account based on the future closure and post-closure care costs that will be incurred near or after the date that the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of landfill used during the year. The estimated liability for landfill closure and post-closure care costs has a balance of $804,572 as of September 30, 2024, which is based on 48.38% usage (filled) of the landfill. It is estimated that an additional $858,425 will be recognized as closure and post-closure care expenses between the October 1, 2024 and the date the landfill is expected to be filled to capacity. The estimated total current cost of the landfill closure and post-closure care ($1,662,997) is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were incurred as of September 30, 2024. However, the actual cost of closure and post-closure cost may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by Texas Commission on Environmental Quality to satisfy certain requirements of financial assurance for closure and post-closure cost by meeting certain financial tests. In the opinion of City Management, all financial assurance requirements have been met at September 30, 2024. The total amount of landfill closure and post-closure care cost for the current period in the amount of $48,135 (required by GASB 18) increased the amount of estimated liability for landfill closure and post-closure care cost as a Long-Term Liability. The City has restricted cash equivalents in the amount of $804,572 to cover the landfill closure and post closure care liability at September 30, 2024. REQUIRED SUPPLEMENTARY NFORMATION 49- EXHIBIT E-1 CITY OF LAMESA Lamesa, Texas BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended September 30, 2024 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes: Property Taxes (Including Penalty & Interest) $ 2,580,768 $ 2,580,768 $ 2,576,756 $ (4,012) Sales Taxes 1,756,500 1,756,500 1,384,296 (372,204) Franchise Taxes 416,454 416,454 365,034 (51,420) Licenses and Permits 73,500 73,500 37,151 (36,349) Charges for Services 227,600 227,600 274,639 47,039 Fines, Fees, and Forfeits 65,000 65,000 86,306 21,306 Investment Income 50,000 50,000 113,578 63,578 Intergovernmental 236,500 236,500 236,500 Rents 47,000 47,000 26,552 (20,448) Community Event 75,000 75,000 80,500 5,500 State Grants 18,151 18,151 Local Grants and Contributions 251,616 333,616 403,560 69,944 Insurance Recovery 337 337 Miscellaneous 10,795 10,795 10,698 (97) Total Revenues 5,790,733 5,872,733 5,614,058 (258,675) Expenditures Current Administration 527,050 527,050 421,826 105,224 General Government 552,099 552,099 382,943 169,156 Housing Assistance 39,959 39,959 34,772 5,187 Fire 861,510 861,510 853,425 8,085 Streets 621,322 621,322 591,339 29,983 Vehicle Services 42,978 42,978 36,075 6,903 Police 2,880,511 2,962,511 2,951,915 10,596 Parks & Recreation 1,038,312 1,127,415 985,908 141,507 Principal on Long-Term Debt 73,342 73,342 73,342 Interest on Long-Term Debt 17,485 17,485 17,485 Capital Outlay Total Expenditures 6,654,568 6,825,671 6,349,030 476,641 Other Financing Sources (Uses) Transfers In/(Out) 300,000 300,000 316,547 16,547 Sale of Real and Personal Property Proceeds from Long-Term Debt 20,000 109,103 109,103 Total Other Financing Sources (Uses) 320,000 409,103 425,650 16,547 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (543,835) (543,835) (309,322) 234,513 Fund Balance, Beginning of Year 3,649,995 3,649,995 3,649,995 Fund Balance. End of Year $ 3,106,160 $ 3,106,160 $ 3,340,673 $ 234,513 -50- EXHIBIT E-2 -51- EXHIBIT E-3 e -52- CITY OF LAMESA Lamesa, Texas NOTES TO REQUIRED SUPPLEMENTARY INFORMATION September 30, 2024 Schedule of Pension Contributions = TMRS Valuation Date: Notes Actuarially determined contribution rates are calculated as of December 31 and become effective in January, 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 22 Years (longest amortization ladder) Asset Valuation Method 10 year smoothed market; 12% soft corridor Inflation 2.50% Salary Increases 3.60% to 11.85% including inflation Investment Rate of Return 6.75% Retirement Age Experience-based table of rates that vary by age. Last updated for the 2023 valuation pursuant to an experience study of the period ending 2022. Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis by the most recent Scale MP-2021 (with immediate convergence). Pre- retirement: PUB(10) mortality tables, with the 110% of the Public Safety table used for males and the 100% of the General Employee table used for females. The rates are projected on a fully generational basis by the most recent Scale MP-2021 (with immediate convergence). Other Information: Notes There were no benefit changes during the year. OTHER SUPPLEMENTARY NFORMATION -53- EXHIBIT F-1 6 8 3 8 8 6A 3 sl A -54- EXHIBIT F-2 a a 0 a 8 & -55- EXHIBIT F-3 CITY OF LAMESA Lamesa, Texas HOUSING ASSISTANCE PROGRAM PHA CODE: TX535 PHA NAME: LAMESA HOUSING AUTHORITY SUPPLEMENTARY FINANCIAL DATA SCHEDULE BALANCE SHEET September 30, 2024 Line Item HAP Fund ASSETS Current Assets: 111 Cash and Cash Equivalents $ 131,417 113 Cash and Cash Equivalents - Restricted 10,667 110 Total Cash 142,084 150 Total Current Assets $ 142,084 Non-Current: Assets: Fixed Assets: 164 Furniture, Equipment and Machinery 21,359 166 Accumulated Depreciation (21,359) 160 Total Fixed Assets, Net 290 TOTAL ASSETS $ 142,084 LIABILITIES Current Liabilities 333 Accounts Payable $ 36,600 300 Total Liabilities 36,600 NET POSITION 511.4 Restricted for Housing Assistance $ 10,667 512.4 Unrestricted 94,817 513 Total Net Position $ 105,484 600 Total Liabilities and Net Position $ 142,084 -56- EXHIBIT F-4 CITY OF LAMESA Lamesa, Texas HOUSING ASSISTANCE PROGRAM PHA CODE: TX535 PHA NAME: LAMESA HOUSING AUTHORITY SUPPLEMENTARY FINANCIAL DATA SCHEDULE REVENUE AND EXPENSE September 30, 2024 Line Item HAP Fund Operating Revenues 706 HUD PHA Operating Grants $ 498,018 711 Investment Income 327 714 Fraud Recovery 1,119 715 Other Revenue 34,772 700 Total Operating Revenues $ 534,236 Operating Expenses Administrative: 911 Administrative Salaries $ 63,309 912 Accounting and Audit Fees 4,600 915 Employee Benefit Contributions-Administrative 9,674 916 Office Expenses 9,057 918 Travel 2,591 919 Other 4,011 961 Insurance 918 962 Other General Expenses 910 Total Operating Expenses $ 94,160 Excess (Deficiency) of Revenues 970 Over (Under) Expenses $ 440,076 Other Expenses 973 Housing Assistance Payments $ 418,910 900 Total Other Expenses: $ 418,910 Revenue over Expenses $ 21,166 Terry & King, CPAs, P.C. 5707 114th Street P.O. Box 93550 Randel J. Terry, CPA Lubbock, TX 79493-3550 Ryan R. King, CPA Telephone - (806) 698-8858 - Fax - (866) 288-6490 Independent. Auditors' Report 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 To the Honorable Mayor and City Council City of Lamesa Lamesa, Texas Members of the City Council: 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 aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Lamesa, Texas, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Lamesa's basic financial statements, and have issued our report thereon dated May 12, 2025. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Lamesa's internal control over financial reporting (internal control) as a basis for designing audit 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 of Lamesa'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. -57- Members American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants CPA The CPA, Never Underestimate The Value. -58- Independent Auditors' Report Page 2 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 were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Lamesa'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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Respectfully submitted, Jerve € Kis Terry & King, CPAS, P.C. Lubbock, Texas May 12, 2025 Terry & King, CPAS, P.C. 5707 114th Street P.O. Box 93550 Randel J. Terry, CPA Lubbock, TX 79493-3550 Ryan R. King, CPA Telephone - (806) 698-8858 - Fax - (866) 288-6490 Independent Auditors' Report REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and City Council City of Lamesa Lamesa, Texas Members of the City Council: Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Lamesa, Texas' compliance with the types of compliance requirements identified as subject to audit in the OMB 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, 2024. City of Lamesa'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, City of Lamesa, Texas complied, in all material respects, with the types of 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, 2024. 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; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, 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 City of Lamesa, Texas 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 City of Lamesa, Texas' compliance with the compliance requirements referred to above. -59- Members American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants CPA The CPA. Never Underestimate The Value. -60- Independent Auditors' Report Page 2 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 City of Lamesa, Texas' federal programs. Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Lamesa, Texas' compliance based on our audit. 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 generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually ori in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, 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 City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of City of Lamesa, Texas's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over -61- Independent Auditors' Report Page 3 compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 noti 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. Respectfully submitted, J derng E Rra Terry & King, CPAS, P.C. Lubbock, Texas May 12, 2025 -62- CITY OF LAMESA Lamesa, Texas SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30, 2024 A. Summary of Auditors" Results 1. Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes X_No Significant deficiencies identified that are not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial Statements noted? Yes X_No 2. Federal Awards Internal control over major programs: Material weakness(es) identified? Yes X_No Significant deficiencies identified that are not considered to be material weaknesses? Yes X None Reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required To be reported in accordance with the Uniform Guidance? Yes X_No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 10.760 Water and Wastewater Disposal Systems for Rural Communities Dollar threshold used to distinguish between type A and type B, programs: $750.000 Auditee qualified as low-risk auditee? Yes X No B. Financial Statement Findings NONE C. Federal Award Findings and Questioned Costs NONE -63- CITY OF LAMESA Lamesa, Texas SUMMARY OF PRIOR AUDIT FINDINGS For the Year Ended September 30, 2024 Management's Explanation FindngsPeconmmendalon Current Status if Not Implemented Not Applicable - None -64- CITY OF LAMESA Lamesa, Texas CORRECTIVE ACTION PLAN For the Year Ended September 30, 2024 Not Applicable - None Required -65- EXHIBIT K-1 CITY OF LAMESA Lamesa, Texas SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended September 30, 2024 (1) (2) (2A) (3) Pass-Through Federal Grantor/ Federal Entity Pass-Through Grantorl AL Identifying Federal Program Title Number Number Expenditures US. Department of Agriculture Direct Program: Water and Waste Disposal Systems for Rural Communities 10.760 N/A 863,610 Total U.S. Department of Agriculture 863,610 US. Department: of Housing and Urban Development Direct Program: Housing Choice Voucher Program" 14.871 N/A 499,138 Total Housing Voucher Cluster 499,138 Passed Through Texas Department of Agriculture: TXCDBG Downtown Revitalization 14.228 7220182 4,950 Total U.S. Department of Housing and Urban Developmer 504,088 U.S. Department of the Treasury Direct Program: COVID-19: Coronavirus State and Local Fiscal Recovery Fund 21.027 N/A 41,650 Total U.S. Department of the Treasury 41,650 TOTALI EXPENDITURES OF FEDERAL FINANCIAL ASSISTANCE $ 1,409,348 * Indicates a cluster program under Uniform Guidance. The accompanying notes are an integral part of this schedule. -66- CITY OF LAMESA Lamesa, Texas NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended September 30, 2024 The accompanying schedule of expenditures of federal awards includes the federal award activity of the City under programs of the federal government for the year ended September: 30, 2024. The information in this schedule is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or changes in net position of the City. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus. The Business-Type activities are reported using the economic resources measurement focus and the accrual basis of accounting. The modified accrual basis of accounting is used for the Governmental Fund Types in the fund financial statements. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Proprietary Fund Financial Statements are reported using the economic resources measurement focus. They are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include grants, entitlements, and donations. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly when such funds are received they are recorded as unearned revenue until earned. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 90 days beyond the federal project period ending date, in accordance with provisions in 2 CFR Part 200, Part 3, Section H, Period of Performance. The City elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Outstanding Loan Balances as of September 30, 2024: USDA Water and Waste Disposal Systems for Rural Communities (10.760) - $6,660,000 City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 9 SUBJECT: LETTER OF ENGAGEMENT FOR AUDIT SERVICES FOR FY 2025 PROCEEDING: Action SUBMITTED BY: City Staff EXHIBITS: Letter of Engagement SUMMARY STATEMENT City Council to consider approving the letter of engagement for Audit Services with Terry & King CPAS P.C. for Fiscal Year 2025. (Finance Director) COUNCIL ACTION DISCUSSION Motion by Council Member to approve the letter of engagement for Audit Services Terry & King CPAS, P.C. - for Fiscal Year 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" 'ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. Terry & King, CPAs, P.C. 5707 114th Street P.O. Box 93550 Randel J. Terry, CPA Lubbock, TX 79493-3550 Ryan R. King, CPA Telephone - (806) 698-8858 Fax - (866) 288-6490 June 6, 2025 To the City Council and Mayor City of Lamesa 601 S. 1st Street Lamesa, TX 79331 We are pleased to confirm our understanding of the services we are to provide for City of Lamesa for the year ended September 30, 2025. Audit Scope and Objectives We will audit the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the disclosures, which collectively comprise the basic financial statements, of the City as of and for the year ended September 30, 2025. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement the City's basic financial statements. Such information, although not a part oft 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. As part of our engagement, we will apply certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding 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 ofthe basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: 1. Management' S Discussion and Analysis 2. Budgetary Comparison Schedules - Major Funds 3. Schedule of Changes in NPL and Related Ratios - TMRS 4. Schedule ofContributions for Pensions TMRS Members American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants CPA The CPA. Never Underestimate The Value, City ofLamesa Engagement Letter, Page 2 of 9 We have also been engaged to report on supplementary information other than RSI that accompanies the City's financial statements. We will subject the following supplementary information to the auditing procedures applied in our 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 financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a report combined with our auditor's report on the financial statements: 1. Combining Financial Statements - Nonmajor Governmental Funds 2. HUD Financial Data Schedules 3. Schedule of expenditures of federal awards. The objectives of our audit 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 issue an auditor's report that includes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is al high level ofassurancel but is not absolute assurançe 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. Misstatements, including omissions, can arise from fraud or error and are considered material ifthere is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on: Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Goverment.4uditing Standards. Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and' Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. for Federal Awards (Uniform Guidance). Auditor's Responsibilities for the Audit of the Financial Statements and Single Audit We will conduct our audit in accordance with GAAS; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions ofthe Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. City ofLamesa Engagement Letter, Page 3 of 9 We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations ofl laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations oflaws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement. Wel have identified the following significant risks of material misstatement as part of our audit planning: According to GAAS, significant risks include management override of controls, and GAAS presumes that revenue recognition is a significant risk. Accordingly, we have considered these as significant risks. We have specifically identified utility revenues as a significant risk. Our audit of financial statements does not relieve you of your responsibilities. City ofLamesa Engagement Letter, Page 4 of9 Audit Procedures - Internal Control We will obtain an understanding of the government and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. 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, misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or1 material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance. Audit Procedures Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major programs. For federal programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance. City ofLamesa Engagement Letter, Page 5 of9 Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for (1) designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities tol help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurançe that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness oft that information. You are also responsible for making drafts of financial statements, schedule of expenditures of federal awards, all financial records, and related information available to us; for the accuracy and completeness oft that information (including information from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the government' S ability to continue as a going concern for the 12 months after the financial statements date or shortly thereafter (for example, within an additional three months if currently known). You are also responsible for providing us with (1) access to all information ofwhich you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance, (3) additional information that we may request for the purpose ofthe audit, and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements; schedule ofe expenditures of federal awards; federal award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. City ofLamesa Engagement Letter, Page 6 of9 You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us ofyour knowledge ofany allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition,you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report. Additionally, as required by the Uniform Guidance, it is management* s responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings should be available for our review prior to the commencement of our fieldwork. You are responsible for identifying all federal awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash assistance received, and COVID-19 related concepts, such as lost revenues, ifapplicable) in conformity with the Uniform Guidance. You agree to include our report on the schedule of expenditures of federal awards in any document that contains, and indicates that we have reported on, the schedule of6 expenditures of federal awards. You also agree to include the audited financial statements with any presentation of the schedule of expenditures of federal awards that includes our report thereon OR: make the audited financial statements readily available toi intended users of the schedule of expenditures of federal awards no later than the date the schedule ofexpenditures of federal awards is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the schedule of expenditures off federal awards in accordance with the Uniform Guidance; (2)you believe the schedule of expenditures of federal awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, ifthey have changed, the reasons for such changes); and (4); you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation oft the schedule of expenditures of federal awards. You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, ifthey have changed, the reasons for such changes); and (4) you have disclosed to us City of Lamesa Engagement Letter, Page 70 of9 any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance: audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. Other Services We will also assist in preparing the financial statements, schedule of expenditures of federal awards, and related notes ofCity ofLamesa in conformity with accounting principles generally accepted in the United States of America and the Uniform Guidance based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statements, schedule of expenditures of federal awards, and related notes services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities for the financial statements, schedule of expenditures of federal awards, and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements, the schedule of expenditures of federal awards, and related notes and that you have reviewed and approved the financial statements, the schedule of expenditures of federal awards, and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management' s responsibility to electronically submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and corrective action plan) along with the Data Collection Form to the Federal Audit Clearinghouse. We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted City ofLamesa Engagement Letter, Page 8 of9 within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end ofthe audit period. We will provide copies of our reports to the city; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Terry & King, CPAs, P.C. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to certain cognizant or oversight agencies or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review oft the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Terry & King, CPAS, P.C. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies ori information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by any cognizant agencies, oversight agencies for audit, or pass-through entities. Ifwe are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Ryan King, CPA is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit on approximately December 15, 2025. Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will be $45,000. This fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. Reporting We will issue written reports upon completion of our Single Audit. Our reports will be addressed to the Mayor and City Council of City of Lamesa. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter: or other-matter paragraph to our auditor's report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. City ofLamesa Engagement Letter, Page 9 of9 The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope oftesting ofinternal control and compliance and the results ofthat testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. The Uniform Guidance report on internal control over compliance will state that the purpose of the report on internal control over compliance is solely to describe the scope oftesting ofi internal control over compliance and the results ofthat testing based on the requirements ofthe Uniform Guidance. Both reports will state that the report is not suitable for any other purpose. We appreciate the opportunity to be of service to the City of Lamesa and believe this letter accurately summarizes the significant terms of our engagement. Ifyou have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, & CPAs King Terry Tot RESPONSE: This letter correctly sets forth the understanding of the City ofLamesa. Management: Governance signature: Title: City Manager Title: Mayor Date: Date: City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:10 DECLARE REGULARLY SCHEDULED MEETINGS FOR SUBJECT: BUDGET PROCEEDING: Action SUBMITTED BY: City Staff SUMMARY STATEMENT City Council to declare regularly scheduled meetings for the following dates. COUNCIL ACTION DISCUSSION Motion by Council Member to declare regularly scheduled meetings for the following dates. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:11 APPOINMENT - KEEP LAMESA BEAUTIFUL SUBJECT: PROCEEDING: Action SUBMITTED BY: City Staff SUMMARY STATEMENT City Council to consider taking action regarding the appointment of Laura Rubio to the Keep Lamesa Beautiful. for an un-expired term ending on December 31, 2027 (KLB) COUNCIL ACTION DISCUSSION Motion by Council Member to. appoint Laura Rubio to the Keep Lamesa Beautiful Committee for an un-expired term ending on December 31, 2027. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:12 APPOINTMENT = PARK BOARD: SUBJECT: PROCEEDING: Action SUBMITTED BY: City Staff SUMMARY STATEMENT Consider appointing six (6) members to serve five (5) year terms ending on December 31, 2030. David Boyd Felix Medina Lacey Frommelt Joey Smith - City Council Laura Rubio Jinken Ortiz COUNCIL ACTION DISCUSSION Motion by Council Member to. appoint the following David Boyd Felix Medina Lacey Frommelt Joey Smith = City Council Laura Rubio Jinken Ortiz to the Park Board for five (5) year terms ending on December 31, 2030. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:13 DISCUSSION - PARKS AND RECREATION SUBJECT: PROCEEDING: Action SUBMITTED BY: City Staff SUMMARY STATEMENT City Council to discuss Parks and Buildings, and Recreational facilities. (City Staff) COUNCIL ACTION DISCUSSION City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:14 SUBJECT: CITY STAFF REPORTS SUBMITTED BY: City Staff EXHIBITS: SUMMARY STATEMENT City Council to hear city departmental reports: a. UTILITIES DIRECTOR REPORT: Utilities Director to report on the city's recent events. b. LAMESA MUNICIPAL GOLF COURE: Golf Course Director to report on the city's recent events. C. POLICE CHIEF REPORT: Police Chief to report on City of Lamesa Code of Ordinance Chapter 12 "Traffic and Vehicles". City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:15 SUBJECT: FINANCIAL REPORT SUBMITTED BY: City Staff EXHIBITS: SUMMARY STATEMENT Finance Director to report on the city's finances. COUNCIL ACTION No City Council action required. LAMESATEXAS TRADE CORRIDOR CROSSING City of Lamesa Financial Statement Summary As of: April 30th, 2025 Current General Fund (1) Month-toDate Year-to-Date Revenues $ 437,284.20 4,714,180.44 Expenditures $ 522,630.69 4,052,653.22 Revenues Over/(Under) Expenditures $ (85,346.49) $ 661,527.22 Water Fund (2) Revenues $ 311,216.61 $ 2,256,402.47 Expenditures / 308,391.98 $ 2,409,747.77 Revenues Over/(Under) Expenditures $ 2,824.63 $ (153,345.30) Solid Waste Fund (3) Revenues $ 201,506.89 $ 1,386,635.41 Expenditures / 136,612.77 $ 1,371,659.73 Revenues Over/(Under) Expenditures 64,894.12 $ 14,975.68 Wastewater & Collection (20) Revenues $ 120,700.59 $ 1,678,699.30 Expenditures 177,152.51 $ 944,028.97 Revenues Over/(Under) Expenditures $ (56,451.92) $ 734,670.33 All Funds Revenues $ 1,070,708.29 $ 10,035,917.62 Expenditures $ 1,144,787.95 / 8,778,089.69 Revenues Over/(Under) Expenditures $ (74,079.66) $ 1,257,827.93 5-17-2025 09:33 AM CITY OF LAMESA PAGE: FINANCIAL STATEMENT AS OF: APRIL 30TH, 2025 01 -GENERAL FUND FINANCIAL SUMMARY 58.338 OF YEAR COMP. ANNUAL CURRENT Y-T-D e OF BUDGET ACCT# ACCOUNT NAME BUDGET PERIOD ACTUAL BUDGET BALANCE REVENUE SUMMARY 01-TAXES 3,869,162.39 195,347.04 3,203,461.18 82.79 665,701.21 02-FRANCHISES AND STREET 616,000.00 65,495.01 366,471.19 59.49 249,528.81 03-PERMITS, LICENSES AND 40,000.00 2,180.00 22,354.03 55.89 17,645.97 04-FINES 68,075.00 7,253.00 42,928.47 63.06 25,146.53 05-RECREATIONAL AND RENTA 111,825.00 2,126.08 54,572.33 48.80 57,252.67 06-0 HER GOVERNMENTAL AGE 282,500.00 135,568.68 156,298.68 55.33 126,201.32 07-TRANSFERS 0.00 0.00 0.00 0.00 0.00 08-CHARGES FOR CURRENT SE 242,004.00 10,071.75 122,113.15 50.46 119,890.85 09-MISCELIANEOUS REVENUES 808,274.32 19,242.64 745,981.41 92.29 62,292.91 19-SOURCE (CHG TO 49XXX) 0.00 0.00 0.00 0.00 0.00 99-TRANSFERS 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES 6,037,840.71 437,284.20 4,714,180.44 78.08 1,323,660.27 EXPENDITURE SUMMARY GENI AL ADMIN SERVICES 118,504.19 4,876.58 63,777.64 53.82 54,726.55 FINANCIAL SERVICES 96,962.23 8,300.32 47,481.42 48.97 49,480.81 PERSONNEL/RISK MGT SERV 56,812.81 2,198.75 33,687.41 59.30 23,125.40 COMMUNITY DEVELOPMENT SER 0.00 0.00 203.82 0.00 ( 203.82) HOUSING ASSISTANCE SERV 39,129.66 7,108.32 8,969.56 22.92 30,160.10 CITY COUNCIL 30,954.00 5,550.70 22,753.55 73.51 8,200.45 CITY HALL 84,150.00 2,447.03 39,063.72 46.42 45,086.28 INTERGOVERIMENTAL 81,190.00 2,962.32 67,782.32 83.49 13,407.68 MUNIÇIPAL COURT 182,560.13 14,031.69 88,802.03 48.64 93,758.10 VEHICLE REPAIR SERVICES 19,589.07 ( 117.08) ( 14,101.85) 71.99- 33,690.92 VEHICLE PREVENTIVE MNT 8,400.00) ( 216.66) ( 572.11) 6.81 ( 7,827.89) FIRE SERVICES 1,517,077.71 78,937.67 1,272,891.10 83.90 244,186.61 VOLUNTEER FIRE SER RVICES 85,250.00 1,913.46 26,510.66 31.10 58,739.34 PD GEN'L ADMIN SERV 321,293.14 26,941.07 206,126.46 64.16 115,166.68 COMMUNICATIONS SERVICES 270,615.01 24,618.39 151,998.01 56.17 118,617.00 GEN'L LAW ENFORCEMENT SER 1,548,470.89 101,734.67 875,425.10 56.53 673,045.79 CRIMINAL INVE ESTIGATIONS 267,469.17 22,932.38 170,028.17 63.57 97,441.00 JUV ILE SERVICES 0.00 0.00 0.00 0.00 0.00 ANIMAL CONTROL SERVICE 149,617.63 8,219.03 137,288.89 91.76 12,328.74 EMERGENCY MANAGEMENT SERV 15,400.00 120.84 1,519.26 9.87 13,880.74 NARCOTICS INTERDICTION 0.00 0.00 0.00 0.00 0.00 STREET MAINTENANCE SERV 338,517,85 24,110.75 169,784.86 50.16 168,732.99 STREET CONST/SEAL COAT 136,450.00 52.50 8,804.79 6.45 127,645.21 STREET CLEANING SERVICES 24,100.00 778.72) ( 10,207.24) 42.35- 34,307.24 TRAFFIC SERVICES 161,100.00 18,351.86 59,379.33 36.86 101,720.67 INSPECTION SERVICES 213,224.55 30,012.76 145,359.45 68.17 67,865.10 PARK MAINTENANCE SERVICES 313,899.96 15,992.07 137,925.17 43.94 175,974.79 PARK IRRIGATION SERVICES 32,500.00) ( 2,198.03) - 16,764.94) 51.58 15,735.06) COMMUNITY BUILDING SERV 41,801.00 1,517.26 15,873.82 37.97 25,927.18 5-17-2025 09:33 AM CITY OF LAMESA PAGE: 2 FINANCIAL STATEMENT AS OF: APRIL 30TH, 2025 01 -GENERAL EUND FINANCIAL SUMMARY 58.338 OF YEAR COMP, ANNUAL CURRENT Y-T-D & OF BUDGET ACCT# ACCOUNT NAME BUDGET PERIOD ACTUAL BUDGET BALANCE RECREATIONAL FACILITIES 191,916.75 96,424.08 174,770.58 91.07 17,146.17 SWIMMING POOL SERVICES 66,618.54 1,118.26 7,183.23 10.78 59,435.31 GOLE COURSE 297.172.25 25.458.42 160.909.01 54.15 136.263.24 TOTAL EXPENDITURES 6,628,946.54 522,630.69 4,052,653.22 61.14 2,576,293.32 REVENUES OVER/( (UNDER) 2 NDITURES 591,105.83) B5,346.49) 661,527.22 111.91- (1,252,633.05) OTHER SOURCES (USES) 0.00 0.00 0.00 0.00 0.00 REVENUES & OTHER SOURCES OVER (UNDER) EXPENDITURES & OTHER (USES) 591,105.83) 85,346.49) 661,527.22 111.91- (1,252,633.05) 5-17-2025 09:34 AM CITY OF LAMESA PAGE: FINANCIAL STATEMENT AS OF: APRIL 30TH, 2025 02 -WATER WASTEWATER ENTER. FINANCIAL SUMMARY 58.338 OF YEAR COMP. ANNUAL CURRENT Y-T-D OF BUDGET ACCT# ACCOUNT NAME BUDGET PERIOD ACTUAL BUDGET BALANCE REVENUE SUMMARY 11-OPERATING REVENUES 4,117,500.00 309,321.61 2,194,487.93 53.30 1,923,012.07 12-NON-OPERATING REVENUES 98,300.00 1,895.00 61,914.54 62.99 36,385.46 99-TRANSFERS 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES 4,215,800.00 311,216.61 2,256,402.47 53.52 1,959,397.53 EXPENDITURE SUMMARY WATE PRODUCTION SERVICES 1,695,143.24 109,730.38 957,854.02 56.51 737,289.22 WATER DIST/WASTE A ATER SER 1,740,435.48 165,394.41 1,041,871.98 59.86 698,563.50 WASTEWATER TREATMENT SERV 0.00 0.00 7.50 0.00 7.50) ENGINEERING SERVICES 105,121.17 6,844.15 54,298.42 51.65 50,822.75 TECHNICAL SERVICES 173,540.68 6,777.87 117,702.18 67.82 55,838.50 UTILITY BILLING/COLLECT 373,776.59 19,645.17 237,946.42 63.66 135,830.17 INSPECTION SERVICES 0.00 0.00 67.25 0.00 67.25) TOTAL EXPENDITURES 4,088,017.16 308,391.98 2,409,747.77 58.95 1,678,269.39 REVENUES OVER/(UNDER) EXPENDITURES 127,782.84 2,824.63 153,345.30) 120.00- 281,128.14 OTHER SOURCES (USES) 0.00 0.00 0.00 0.00 0.00 REVENUES & OTHER SOURCES OVER (UNDER) EXPENDITURES & OTHER (USES) 127,782.84 2,824.63 153,345.30) 120.00- 281,128.14 5-17-2025 09:34 AM CITY OF LAMESA PAGE: FINANCIAL STATEMENT AS OF: APRIL 30TH, 2025 03 --SOLID WASTE ENTERPRISE FINANÇIAL SUMMARY 58.338 OF YEAR COMP. ANNUAL CURRENT Y-T-D OF BUDGET ACCT# ACCOUNT NAME BUDGET PERIOD ACTUAL BUDGET BALANCE BEVENUE SUMMARY 05-RECREATIONAL AND RENTA 0.00 0.00 0.00 0.00 0.00 21-OPERATING REVENUES 2,416,500.00 196,383.39 1,358,768.92 56.23 1,057,731.08 22-NON-OPERATING RE UES 129,000.00 5,123.50 27,866.49 21.60 101,133.51 99-TRANSFERS 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES 2,545,500.00 201,506.89 1,386,635.41 54.47 1,158,864.59 EXPENDITURE SUMMARY SOLID WASTE COLLECTION SV 1,483,598.71 70,992.27 581,897.02 39.22 901,701.69 SANITARY LANDFILL SERVICE 1,065,757.02 50,012.68 692,116.53 64.94 373,640.49 SPECIALIZED COLLECTION SV 101,714.00 8,102.60 53,859.64 52.95 47,854.36 ENVIRONMENTAL HEALTH SERV 90.692.00 7.505.22 43,786.54 48.28 46.905.46 TOTAL EXPENDITURES 2,741,761.73 136,612.77 1,371,659.73 50.03 1,370,102.00 REVENUES OVER/(UNDER) EXPENDITURES 196,261.73) 64,894.12 14,975.68 7.63- 211,237.41) OTHER SOURCES (USES) 0.00 0.00 0.00 0.00 0.00 REVENUES & OTHER SOURCES OVER (UNDER) EXPENDITURES & OTHER (USES) 196,261.73) 64,894.12 14,975.68 7.63- 211,237.41) 5-17-2025 09:34 AM CITY OF LAMESA PAGE: FINANCIAL STATEMENT AS OF: APRIL 30TH, 2025 20 WASTEWATER FUND FINANCIAL SUMMARY 58.338 OF YEAR COMP. ANNUAL CURRENT Y-T-D $ OF BUDGET ACCT# ACCOUNT NAME BUDGET PERIOD ACTUAL BUDGET BALANCE REVENUE SUMMARY 41-OPERATING REVENUE 1,293,052.00 100,819.70 706,326.92 54.62 586,725.08 42-OPERATING REVENUE 0.00 0.00 0.00 0.00 0.00 15-NON-OPERATING REVENUES 0.00 0.00 28,502.59 0.00 28,502.59) 19-NON-OPERATING REVENUES 0.00 19,880.89 943,869.79 0.00 943,869.79) 99-TRANSFERS 0.00 0.00 0.00 0.00 0.00 TOTAL REVENUES 1,293,052.00 120,700.59 1,678,699.30 129.82 385,647.30) EXPENDITURE SUMMARY WASTEWATER L.385.388.80 177.152.51 944.028.97 68.14 441.359.83 TOTAL EXPENDITURES 1,385,388.80 177,152.51 944,028.97 68.14 441,359.83 REVEN NUES OVER/(UNDER) EXPENDITURES 92,336.80) 56,451.92) 734,670.33 795.64- 827,007.13) OTHER SOURCES (USES) 0.00 0.00 0.00 0.00 0.00 E CNUES & OTHER SOURCES OVER (UNDER) EXPENDITURES & OTHER (USES) 92,336.80) 56,451.92) 734,670.33 795.64- 827,007.13) LAMESATEXAS TRADE CORRIDOE CROSSING City of Lamesa Balance Sheet Summary As of: April 30th, 2025 General Fund (1) Assets $ 4,840,480.52 Liabilities $ 927,964.35 Water Fund (2) Assets $ 28,908,014.79 Liabilities $ 11,737,191.28 Solid Waste Fund (3) Assets $ 8,050,281.18 Liabilities $ 4,701,066.45 Wastewater & Collection (20) Assets $ 4,767,569.11 Liabilities $ 5,049,510.19 5-17-2025 09:29 AM CITY OF LAMESA PAGE: BALANCE SHEET AS OF: APRIL 30TH, 2025 01 -GENERAL EUND ACCOUNT # ACCOUNT DESCRIPTION BALANCE ASSETS - 01-1001 CASH IN BANK 1,653,570.60 01-1002 PETTY CASH 0.00 01-1003 RETURNED CHECKS 8,634.12 01-1004 TAXES RECEIVABLE-DELIQUENT 533,848.43 01-1005 TAXES RECEIVABLE CURRENT 0.00 01-1006 PROV. FOR UNCOLLECT TAXES 285,769.59) 01-1007 MISC ACCT. RECEIVABLE 1,759.35) 01-1008 PROV. UNCOLLEC. ACCT/REC 184.11) 01-1009 PAVING LEIN RECEIVABLE 0.00 01-1010 UNCOLLECTABLE PAVING LEIN 0.00 01-1011 A/R LUBBOCK TASK FORCE 0.00 01-1012 A/R TNRCC 0.00 01-1013 OFFICE SUPPLIES INVENTORY 0.00 01-1014 DUE FROM DAWSON COUNTY 9,843.57 01-1015 CASH IN BANK PAYROLL 1,209.97 01-1016 DUE FROM DEBT SERVICE 0.00 01-1017 EUEL TAX C.D. 0.00 01-1018 DUE TO/FROM 1997 TAN 0.00 01-1019 DUE TO/FROM SOLID WASTE EUND 0.00 01-1020 DUE EROM INVESTMENT FUND 2,232,223.36 01-1021 CAPITAL EQUIPMENT RESERVE 0,00 01-1022 BUILDING & COMPUTER RESERVE 0.00 01-1023 DUE EROM FIRE DEPT. GRANTS 0.00 01-1024 DUE EROM JUSTICE GRANT 0.00 01-1025 DUE TO/ FROM STATE AGENCY 0.00 01-1026 DUE EROM OTHER GOVERNMENTS 0.00 01-1027 DUE TO/FROM CAPITAL PROJECT 0.00 01-1028 SALES TAX RECEIVABLE 10,363.43 01-1029 DUE TO/FROM DEBT SERVICE 0.00 01-1030 DUE EROM MOTEL TAX FUND 0.00 01-1031 DUE TO/FROM SPECIAL REV. EUND 0.00 01-1032 DUE FROM INVESTMENT-CIVIC CTR. 0.00 01-1033 ACCOUNTS RECEIVABLE 0.00 01-1034 SALES TAX REC./ /TX COMPTROLLER 355, 137.24 01-1035 DUE FROM IMS FLEX ACCT. 0.00 01-1036 FRANCHISE TAX RECEIVABLE 104,192.13 01-1037 DUE EROM WASTEWATER 0.00 01-1038 DUE EROM DAWSON COUNTY 0.00 01-1039 US TREASURY BILLS (ILNB) 0.00 01-1040 TAN I&S RESERVE 0.00 01-1041 LAMESA ANIMAL SHELTER 125,858.47 01-1042 GOLE FEES RECEIVABLE 62,242.24 01-1043 GOLE MEMORIAL FUND 0.00 01-1044 CIP F PARK LIGHT PROJECT 0.00 01-1045 CITY OF LAMESA CFS FESTIVAL 4,869.11 01-1046 CRIME LINE 2,730.38 01-1047 PD SEIZURE PUND 10,900.67 01-1048 ALLOWANCE FOR GOLF RECEIVABLES 50,816.45) 01-1050 DUE TO/EROM RISK MGMT & SAFE 0.00 5-17-2025 09:29 AM CITY OF LAMESA PAGE: 2 BALANCE SHEET AS OE: APRIL 30TH, 2025 01 -GENERAL EUND ACCOUNT # ACCOUNT DESCRIPTION BALANCE 01-1055 DUE EROM INVESTMENT EUND 0.00 01-1056 DUE EROM TEXstar POOL 6,962.73 01-1060 DUE EROM ECONOMIC DEVELO 14,778.73 01-1061 DUE FROM BUILDING SECURITY 0.00 01-1062 DUE FROM PEG EUND 0.00 01-1063 DUE EROM POLICE DONATION FUND 0.00 01-1064 DUE EROM TECHNOLOGY EUND 0.00 01-1065 DUE FROM ECONOMIC DEV./AUDITOR 2,633.91 01-1066 DUE FROM S.W.A.T FUND 0.00 01-1067 DUE FOR TRUANCY EUND 0.00 01-1068 DUE EROM MUNICIPAL JURY EUND 0.00 01-1070 DUE EROM FORFEITED TRUST 0.00 01-1071 DUE FROM WWF-LAND PURCHASE 0.00 01-1072 DUE TO/EROM GOLF COURSE 38,132.31 01-1080 D.A.R.E. 0.00 01-1085 DUE EROM HOUSING AUTHORITY 0.00 01-1090 XEER EOR RETIREMENT/C.0." 0.00 01-1095 DUE EROM LEAP 878.62 4,840.480.52 TOTAL ASSETS 4,840,480.52 GIA TIES 01-2012 DUE TO GRANT EUNDS (17) 0.00 01-2013 PAVING LIEN REEUND PAYABLE 0.00 01-2014 SALES TAX PAYABLE 13,182.18 01-2015 VOUCHERS PAYABLE 505,904.85 01-2016 COMMUNITY BLDG.DEPOSITS 10,990.00 01-2017 REFUND OF CASH DEPOSITS 0.00 01-2018 WAGES PAYABLE 0.00 01-2019 GROUP INSURANCE PAYABLE 0.00 01-2020 WITHHOLDING TAX PAYABLE 157.00 01-2021 SOCIAL SECURITY PAYABLE 97.12 01-2022 T.M.R.S. PAYABLE 0.00 01-2023 AUTO ALLOWANCE PAYABLE 0.00 01-2024 BONDS 0.00 01-2025 DEDUCTIONS PAYABLE 0.00 01-2026 WORKERS COMPENSATION 0.00 01-2027 AIRPORT 0.00 01-2028 OPTIONAL LIFE AI BLE 539.82 01-2029 DUE TO SWME 0.00 01-2030 GOVERNOR'S TAX PAYABLE 8,455.21 01-2031 TRANS.FOR RET.BONDS 0.00 01-2032 DUE TO STATE AGENCY 0.00 01-2033 C.D.B.G. 0.00 01-2034 DUE TO LAMESA HOUSING 930.00) 01-2035 TRANS. FROM DEVELOP. FUND 0.00 01-2036 TEEN COURT ADMIN FEE 430.00 01-2037 DUE TO RISK MGT & SAFETY 0.00 01-2038 DUE TO/FROM WATER FUND 0.00 5-17-2025 09:29_AM CITY OF LAMESA PAGE: 3 BALANCE SHEET AS OF: APRIL 30TH, 2025 01 -GENERAL EUND ACCOUNT # ACCOUNT DESCRIPTION BALANCE 01-2039 WARRANTS PAYABLE 0.00 01-2040 UNITED FUND 6.00 01-2041 SALES TX DUE TO LEDC -TX COMPT 59,189.54 01-2042 DUE TO LEAP -SALES TAX 59,189.54 01-2043 TMRS EMPLOYEE BACK PAY 0.00 01-2044 FLEX SPENDING ACCT. (FSA) 2,266.54 01-2045 PROV. FOR COMP.ABSENCES 0.00 01-2046 2022 TAX NOTES 0.00 01-2048 1992 C o DEBT-PRINCIPAL 0.00 01-2049 1992 C.0. DEBT 0.00 01-2050 ICMI A-RC PAYABLE 0.00 01-2051 COURT BONDS PAYABLE 1,000.00 01-2052 COURT BUILDING SECURITY EUND 0.00 01-2053 COURT TECHNOLOGY FEE 0.00 01-2054 MVBA COLLECTIONS 2,103.63) 01-2055 TAN IGS PRINÇIPAL 0.00 01-2056 TAN IGs INTEREST 0.00 01-2057 NORTHLAND PEG FEES 0.00 01-2058 NTS PEG EEES 0.00 01-2059 DUE FROM TRUANCY EUND 0.00 01-2070 GROUP INS. PRE-TAX 3,823.10) 01-2075 EMPLOYEE REIMB. SICK LEAVE 0.00 01-2080 DEFERRED REVENUE-PAVING 0.00 01-2081 DEEI R. ED REVENUE-TAXES 248,078.84 01-2082 DEFERRED REVENUE-MISC. POLICE 0.00 01-2083 DEFERRED REVENUE REVITAL GRANT 0.00 01-2084 DEFERRED REVENUE- CIVIC CENTER 0.00 01-2085 AFLAC PRE-TAX 59.76 01-2086 DEFERRED REV.-POLICE DONATIONS 0.00 01-2087 DEFERRED REV. - -COURTHOUSE PROJ. 0.00 01-2088 DEFERRED REVENUE-SWAT DONATION 0.00 01-2089 DEFERRED REVENUE/FIRE PROTECTI 0.00 01-2090 AFLAC POST TAX 515.02 01-2091 DEFERRED REV.-L.I.S.D. BUYMONE 1,286.50 01-2092 AIR MED CARE 0.00 01-2093 DEFERRED REV./ANIMAL SHELTER 0.00 01-2094 NEW YORK LIFE INS. PAYABLE 85.96 01-2095 VISION INS. PAYABLE 290.49 01-2096 EMPLOYEE LEGAL SERV. PAYABLE 106.22 01-2097 WORK BOOTS PAYABLE 75.00 01-2098 DEFERRED REV. SPORTS COMPLEX 0.00 01-2099 JAE FITNESS PAYABLE 0.00 01-2150 ACCRUED PAYABLES 0.00 01-2160 ACCRUED PAYROLL LIABILITY 22,915.49 01-2170 NATIONWIDE PRE-TAX 0.00 01-2175 NATIONWIDE POST TAX 0.00 01-2999 PROFIT & LOSS 0.00 TOTAL LIABILITIES 927.964.35 5-17-2025 09:29 AM CITY OF LAMESA PAGE: BALANCE SHEET AS OF: APRIL 30TH, 2025 01 -GENERAL EUND ACCOUNT # ACCOUNT DESCRIPTION BALANCE EQUITY 01-3001 EUND BALANCE 3,250,988.95 01-3002 RESERVE-CAPITAL EQUIPMENT 0.00 01-3003 RESERVE-BUIEDING 6 COMPUTER 0.00 01-3010 C.0. INTEREST 0.00 01-3011 C.0. PRINCIPAL 0.00 01-3012 TAN INTEREST 0.00 01-3013 TAN PRINCIPAL 0.00 01-3014 OTHER PRINCIPAL 0.00 01-3015 OTHER INTEREST 0.00 TOTAL BEGINNING EQUITY 3,250,988.95 TOTAL REVENUE 4,714,180.44 TOTAL EXPENSES 052.653.22 TOTAL REVENUE OVER/(UNDER) EXPENSES 661,527.22 TOTAL EQUITY REV. OVER/(UNDER) EXP. 912.516.17 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 4,840,480.52 5-17-2025 09:30 AM CITY OF LAM S SA PAGE: BALANCE SHEET AS OF: APRIL 30TH, 2025 02 -WATER & WASTEWATER ENTER. ACCOUNT # ACCOUNT DESCRIPTION BALANCE ASSETS 02-1001 CASH IN BANK 405,333.14) 02-1002 CASH IN DRAWER 0.00 02-1003 DUE FROM INVESTMENTS/MATER DEP 32,408.14 02-1004 CAPITAL EQUIPMENT RESERVE 2,299,885.40 02-1005 w.S.G. CHGS. RECEIVABLE 183,286.82 02-10051 REFUNDS PAYABLE 3,110.17 02-10052 UTILITY A/R SUSPENSE 0.00 02-10053 UNAPPLIED US REVENUE 26,734.41) 02-10054 US GL RECON REPORT 0.00 02-10059 UNBILLED REVENU RECEIVABLE 339,328.76 02-1006 PROV.FOR UNCOLLECT. ACCTS 57,273.15) 02-1007 INVENTORY SUPPLIES 335,324.56 02-1008 WW. TRMT PLNT RES.INVESTMENTS 100,763.58 02-1009 UTILITY SYSTEM IMPROV RESERVE 0.00 02-1010 UNAMORTIZED TAN ISSUE COSTS 0.00 02-1011 AMORT.OF DISC. & PREMIUMS 0.00 02-1012 WATER SYSTEM LAND 67,322.47 02-1013 WATER RIGHTS PURCHASED 6,680,247.00 02-1014 WALKS, DRIVES & FENCES 14,552,640.57 02-1015 BUILDINGS 236,849.78 02-1016 WELLS 6 WELL HOUSES 0.00 02-1017 BOOSTER STAT. AND STORAGE 0.00 02-1018 WATER LINES, VALVES & FITT 256,996.50 02-1019 WATER TAPS AND METERS 6,816,494.00 02-1020 AUTOMOTIVE 6 MISC.EQUIP. 2,823,811.56 02-1021 FIRE HYDRANTS 0.00 02-1022 WATER SYST. DEPRECIATION 117,441,747.96) 02-1023 SEWER SYSTEM-IAND & LAGOO 0.00 02-1024 SEWAGE LIFT STATIONS 0.00 02-1025 DISPOSAL PLANT 0.00 02-1026 SEWER LINES 0.00 02-1027 SEWER SYS. DEPRECIATION 0.00 02-1028 DUE TO/FROM SOLID WASTE 0.00 02-1029 ELECTRICAL INVENTORY 0.00 02-1030 WATER RESERVE 1,336,179.47 02-1031 ACCOUNTS REC. TRRA 0.00 02-1032 06 TAN ISSUANCE COSTS 0.00 02-1033 06 TAN AMORTIZATION 14, 641.00 02-1034 DUE TO EROM WATER FUND 0.00 02-1035 DUE FROM TCDP GRANT 0.00 02-1036 DUE EROM INV. FUND-TX NOTE 06 19,945.48 02-1037 DUE TO INV. WELLS GTOWER 430,231.09 02-1038 DUE FROM TEXSTAR POOL 418,488.57 02-1039 WATER TREATMENT PLANT 0.00 02-1040 WW TRMT PLANT RES. 0.00 02-1041 USDA WATER IMPROVEMENT GRNT. 0.00 02-1042 US TREASURY BILLS (LNB) 0.00 02-1043 LEASES RECEIVABLE 45,526.06 02-1050 CASH IN BANK-TRMT PLANT 0.00 5-17-2025 09:30 AM CITY OF LAMESA PAGE: 2 BALANCE SHEET AS OF: APRIL 30TH, 2025 02 -WATER WASTEWATER ENTER. ACCOUNT ACCOUNT DESCRIPTION BALANCE 02-1051 UITLITY SYSTEM 6 REPLAÇEMENT 28,440.55 02-1060 CIP NEW WATER WELL PROJECT 0.00 02-1065 CIP LUBBOCK HWY LIFTSTATION 0.00 02-1070 CIP ELEVATED STORAGE TANK 0.00 02-1075 CIP WATER MAIN IMP, HWY 87 0.00 02-1076 CIP USDA WATER IMP. PROJECT 9,571,497.92 02-1080 NET PENSION ASSET DIABILITY) 50,221.00 02-1081 DEFE ERRED OUTFLOW-PENSION CONTR 195, 463.00 02-1082 DEFERRED OUTFLOW-PENSION INV E 0.00 02-1083 L.E.D.C. PRISON TOWER REC. 0.00 28.908.014.79 TOTAL ASSETS 28,908,014.79 LIABILITIES 02-2010 DUE TO LAMESA EDC 0.00 02-2013 0.00 02-2025 REVENUE RECOVERY LIABILITY 236.77) 02-2026 REVENUE RECOVERY FEES 3,654.45 02-2027 UNDEPOSITED METER DEPOSIT 0.00 02-2028 WATER DEPOSITS 299,224.00 02-2029 T.M.R.S. PAYABLE 0.00 02-2030 F.I.C.A. PAYABLE 0.00 02-2031 VOUCHERS PAYABLE 0.00 02-2032 30 PAYABLE-PRISON 0.00 02-2033 CONTRIBUTED BY DEVELOPERS 255,845.00 02-2034 CONTRIBUTED BY U.S. GOV'T 236,875.39 02-2035 RES.RETIRE.OF BONDS & INT 0.00 02-2036 EARNED SURPLUS INVESTED 0.00 02-2037 EARNED SURPLUS UNAPPROPR. 0.00 02-2038 INT. ON B.F. INVESTMENT 0.00 02-2039 TRANS. FOR RET. OF BONDS 0.00 02-2040 OPERATING TRANSFER 0.00 02-2041 BOND INTEREST EXPENSE 0.00 02-2042 HANDLING FEES 0.00 02-2043 CAPITAL PROJECT FUNDS 440, 420.21 02-2045 PROV.COMPENSATED ABSENCES 27,423.26 02-2046 DUE TO/FROM GENERAL EUND 0.00 02-2047 DUE TO SOLID WASTE 0.00 02-2048 DUE TO RISK MGT & SAFETY 0.00 02-2049 1992 C.0. DEBT NON CURRENT 0.00 02-2050 NOTE PAYABLE- 2006 TAX NOTES 0.00 02-2051 NOTE PAYABLE-CAT FINANCE 0.00 02-2052 LEASE PAYABLE-AAIGINON-CURRENT 0.00 02-2053 NOTES PAYABLE-WSB (NONCURREN). 0.00 02-2054 BONDS PAYABLE USDA 0.00 02-2055 CONTRIBUTED CAPITAL-TCDP 864,400.00 02-2056 CONTRIBUTED CAPITAL-TDCJ 133,567.10 02-2057 DUE TO G/F LAND PURCHASE 0.00 02-2058 DUE TO SWME LAND PURCHASE 75,000.00 5-17-2025 09:30 AM CITY OE LAMESA PAGE: 3 BALANCE SHEET AS OF: APRIL 30TH, 2025 02 -WATER & WASTEWATER ENTER. ACCOUNT # ACCOUNT DESCRIPTION BALANCE 02-2059 DUE TO CAP. PROJ.-LAND PURCHAS 0.00 02-2060 AFLAC PRE-TAX 0.00 02-2061 DUE TO/FROM GOLE COURSE FUND 0.00 02-2070 GROUP INS. PRE-TAX 0.00 02-2085 AFLAC PRE-TAX 0.00 02-2090 AFLAC POST TAX 0.00 02-2094 ACCRUED INTEREST PAYABLE 5,870.00 02-2095 VISION INS. PAYABLE 0.42 02-2097 2023 TAX NOTE (VAC-TRUCK) 0.00 02-2160 ACCRUED PAYROLL LIABILITY 6,452.32 02-2900 CURRENT PORTION 91 C.O.'S 0.00 02-2901 CURRENT PORTION - USDA 0.00 02-2902 CURF RENT PORTION-2006 TAN 0.00 02-2903 CURRENT PORTION-CAT FINANCE 0.00 02-2904 LEASE PAYABLE-AAIG (CURRENT) 0.00 02-2905 NOTES PAYABLE-WSB (CURRENT) 0.00 02-2906 NOTES PAYABLE-SOUTH PLAINS COM 0.00 02-2907 2023 TAX NOTE (VAC -TRUCK) 277,048.50 02-2909 TAX NOTE 2013 ST 0.00 02-2910 TAX NOTE 2013 L-T 0.00 02-2911 CURRENT PORTION COMP ABSE 0.00 02-2912 TAX NOTE 2013-A L-T 0.00 02-2913 TAX NOTE 2013A S-T 0.00 02-2914 TAX NOTE 2014 L-T 0.00 02-2915 TAX NOTE 2014 S-T 0.00 02-2916 TAX NOTE 2019 LT 0.00 02-2920 DEFERRED REV-LIFTSTATION PROJ. 0.00 02-2925 CONJ. USE SERIES 2011-NONCURRE 749,249.80 02-2926 CONJ USE SERIES 2011-CURRENT 0.00 02-2927 REFUNDING 2010 NON CURRENT 0.00 02-2928 REFUNDING SERIES 2010-CURRENT 0.00 02-2929 RECLAMATION 2010 NON CURRENT 0.00 02-2930 RECLAMATION 2010 CURRENT 0.00 02-2931 GROUNDWATER 2009-NON CURRENT 137,086.32 02-2932 GROUNDWATER 2009 CURRENT 0.00 02-2933 GROUNDWATER 2008 NONCURRENT 0.00 02-2934 GROUNDWATER 2009 CURRENT 0.00 02-2935 GROUNDWATER 2005-NONCURRENT 0.00 02-2936 GROUNDWATER 2005 CURRENT 0.00 02-2937 GROUNDWATER 2012-NONCURRENT 232,294.64 02-2938 GROUNDWATER 2012-CURRENT 0.00 02-2939 2014 BOND (2005) ST 0.00 02-2940 2014 BOND (2005) LT 0.00 02-2941 2014 PREMIUM (2005) 0.00 02-2942 2014 BOND (2006) ST 0.00 02-2943 2014 BOND (2006) LT 227,124.46 02-2944 2014 PREMIUM (2006) 35,304.00 02-2945 2017 BACKHOE LOADER LT 0.00 02-2946 2017 BACKHOE LOADER ST 0.00 02-2947 CHEVROLET SILVERADO CL 0.00 02-2948 2022 TAX NOTES (9842) 891,358.12 5-17-2025 09:30 AM CITY OF LAMESA PAGE: BALANCE SHEET AS OF: APRIL 30TH, 2025 02 -WATER & WASTEWATER ENTER. AÇCOUNT # ACCOUNT DESCRIPTION BALANCE 02-2949 2021 CO's (USDA) 6,785,000.00 02-2950 DEFERRED OUTFLON-PENSION 8,704.00 02-2951 DEFERRED INELOWS LEASES 45,526.06 02-2999 PROFIT & LOSS 0.00 TOTAL LIABILITIES 11,737,191.28 EQUITY 02-3001 FUND BALANCE 17,324,168.81 02-3002 RESERVE-UTILITY SYSTEM IMPROV 0.00 02-3010 C.0. INTEREST 0.00 02-3012 TAN INTER REST 0.00 TOTAL BEGINNING EQUITY 17,324,168.81 TOTAL REVENUE 2,256,402.47 TOTAL EXPENSES 2.409.747.77 TOTAL REVENUE OVER/(UNDER) EXPENSES 153,345.30) TOTAL EQUITY REV. OVER/(UNDER) EXP. 17.170.823.51 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 28,908,014.79 5-17-2025 09:30 AM CITY OF LAMESA PAGE: 1 BALANCE SHEET AS OF: APRIL 30TH, 2025 03 -SOLID WASTE ENTERPRISE ACCOUNT # ACCOUNT DESCRIPTION BALANCE ASSETS 03-1001 CASH IN BANK 2,092,519.96 03-1002 CASH IN BANK DEBT SERVICE 0.00 03-1003 CASH IN BANK CAPITAL RESERVE 0.00 03-1004 DUE FROM GENERAL FUND 0.00 03-1005 DUE FROM WASTEWATER 0.00 03-10059 UNBILLED REVENUE RECEIVABLE 181,272.16 03-1006 DUE FROM WWF- LAND PURCHASE 75,000.00 03-1007 DUE FROM INVESTMENTS-DEBT SERV 0.00 03-100B DUE FROM INV.-CAPITAL RESERVE 130,542.77 03-1009 DUE EROM TEX-STAR POOL 418,488.60 03-1010 UNAMORTIZED TAN ISSUE COSTS 0.00 03-1011 GARBAGE CHG. RECEIVABLE 137,623.71 03-1012 UNCOLLECTIBLE GARB.CHGS. ( 54,980.01) 03-1013 GRANT PROCEEDS RECEIVABLE 0.00 03-1014 LAND 143,957.00 03-1015 BUILDINGS 2,432,912.61 03-1016 ESCROW ACCOUNT 0.00 03-1019 AUTOMOTIVE & MISC.EQUIP. 7,251, 546.87 03-1020 DUE EROM INVESTMENT EUND 0.00 03-1021 CAPITAL EQUIPMENT RESERVE 409,891.91 03-1022 POST CLOSURE RESERVE 683,115.12 03-1023 ENVIROMENTAL OPER CENTER RES 0.00 03-1024 RESERVE FOR TAN IGS 0.00 03-1025 TREASURY BILLS (LANDFILL CO'S) 0.00 03-1026 LANDFILL CD'S (LNB) 69, 756.54 03-1027 05 TAN ISSUANCE COSTS 0.00 03-1028 ACCUM. AMORT-ISSUANCE COSTS 0.00 03-1030 CIP NEW LANDFILL CELL #4 2,187,282.80 03-1035 CIP ONCOR SEWER LINE PROJECT 25,272.41 03-1050 ACCUMULATED DEPRECIATION 8,322,392.27) 03-1080 NET PENSION ASSET (LIABILITY) 38,526.00 03-1081 DEFERRED OUTFLOW-PENSION CONTR 149,945.00 03-1082 DEFERRED OUTFLOW-PENSION INV 0.00 R.050.281.18 TOTAL ASSETS 8,050,281.18 LIABILITIES 03-2010 DUE TO/EROM GENERAL FUND 0.00 03-2013 0.00 03-2018 CO'S PAYABLE (LANDFILL) 2,750,000.00 03-2020 DUE TO/EROM WASTE WATER 0.00 03-2021 POSTCLOSURE RESERVE 0.00 03-2022 DUE TO RISK MGT & SAFETY 0.00 03-2030 CONTRIBUTED CAPITAL SCALE 41,191.00 03-2040 TAN INTEREST EXPENSE 0.00 03-2041 BOND INTEREST EXPENSE 0.00 03-2042 LOSS ON EQUIPMENT 0.00 5-17-2025 09:30 AM CITY OF LAMESA PAGE: 2 BALANCE SHEET AS OF: APRIL 30TH, 2025 03 -SOLID WASTE ENTERPRISE ACCOUNT # AÇCOUNT DESCRIPTION BALANCE 03-2044 CUR. PROV FOR COMP. .ABSENCE 0.00 03-2045 PROV-COMPENSATED ABSENCE 23,238.23 03-2049 1992 C.0. DEBT NON-CURRENT 0.00 03-2050 N/P CATEPILLAR (DOZER) 0.00 03-2051 EST.LIAB. LANDFILL CLOSURE 756,4 437.00 03-2052 OUTSOURCE LEASE-MAD VAC S-T 0.00 03-2053 CATEPILLAR LEASE S-T 0.00 03-2054 2005 TAX NOTE -CURRENT PORTION 0.00 03-2055 N/P CATERPILLAR (BULLDOZER) 0.00 03-2056 TAN IGS INTEREST 0.00 03-2060 AFLAC PRE-TAX 0.00 03-2065 N/P KSB GARBAGE TRUCK 0.00 03-2070 GROUP INS. PRE-TAX 0.00 03-2085 AELAC PRE-TAX 0.00 03-2090 AFLAC POST TAX 0.00 03-2094 ACCRUED INTEREST EXPENSE 37, 400.00 03-2095 VISION INS. PAYABLE 0.00 03-2096 N/P-CATERPIDLAR 930H IT 0.00 03-2097 N/P CATEF ILLAR 930H ST 0.00 03-2098 N/P CATERPILLAR (BAÇKHOE) ST 0.00 03-2160 ACCRUED PAYROLL LIABILITY 4,167.65 03-2165 N/P MACK TRUCK w/ SIDELOAD -LT 0.00 03-2166 N/P MACK TRUCK w/ SIDELOAD -ST 0.00 03-2901 CURRENT PORTION 92 C.0.'S 0.00 03-2902 CURRENT PORTION-1997 TAN 0.00 03-2903 OUTSOURCE LEASE- MAD VAC L-T 0.00 03-2904 CATEPILLAR LEASE L-T 0.00 03-2905 2005 TAX NOTE (LT) 0.00 03-2906 ST-CATERPILIAR LOADER 2015 0.00 03-2907 LT CATERPILLAR LOADER 2015 0.00 03-2908 ST-CATERPILIAR BULL DOZER 2015 0.00 03-2909 LT-CATERPILIAR BULL DOZER 2015 0.00 03-2910 TAX NOTE 2012 LT 0.00 03-2911 TAX NOTE 2012 ST 0.00 03-2912 2016 MACK DUMP TRUCK LT 0.00 03-2913 2016 MACK DUMP TRUCK ST 0.00 03-2914 TAX NOTE COMPACTOR 2019 LT 232,987.00 03-2915 CHEVROLET SILVERADO CL 0.00 03-2916 CHEVY SILVERADO LEASE -ST 0.00 03-2917 SKID STEER CL 0.00 03-2918 SKID STEER LEASE ST 0.00 03-2919 MOTOR GRADER CL 105,386.85 03-2920 MOTOR GRADER LEASE ST 0.00 03-2921 COMPACTOR 2020 L-T 431,792.36 03-2922 COMPACTOR 2020 S-T 0.00 03-2924 TAX NOT 19 SCRAPER 2019 S-T 0.00 03-2925 2022 TAX NOTES (9842) 311, 789.36 03-2950 DEFERRED INFLON-PENSION 6.677.00 TOTAL LIABILITIES 4,701.066.45 5-17-2025 09:30 AM CITY OF LAMESA PAGE: 3 BALANCE SHEET AS OF: APRIL 30TH, 2025 03 -SOLID WASTE ENTERPRISE ACCOUNT # ACCOUNT DESCRIPTION BALANCE EQUITY 03-3001 FUND BALANCE 3,227,010.87 03-3002 INVESTMENT IN PROPERTY 0.00 03-3003 JNRE ERVED EUND BALANCE 0.00 03-3004 POSTCLOSURE RESERVE 107,228.18 03-3005 RESERVE ENVIRC MENTAL OPER CNTR 0.00 03-3010 C.0. INTEREST 0.00 03-3012 TAN INTEREST 0.00 TOTAL BEGINNING EQUITY 3,334,239.05 TOTAL REVENUE 1,386,635.41 TOTAL EXPENSES 371.659.73 TOTAL REVENUE OVER/(UNDER) EXPENSES 14,975.68 TOTAL EQUITY 6 REV. OVER/(UNDER) EXP. 3.349.214.73 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP, 8,050,281.18 5-17-2025 09:30 AM CITY OF LAMESA PAGE: BALANCE SHEET AS OF: APRIL 30TH, 2025 20 -WASTEWATER FUND ACCOUNT # ACCOUNT DESCRIPTION BALANCE ASSETS - 20-1001 CASH 308,261.08 20-10059 UNBILLED REVENUE RECEIVABLE 99,046.52 20-1006 ALLOWANCE FOR BAD DEBTS 22,013.82) 20-1009 DUE FROM TEX-STAR 200L 418,488.61 20-1010 SEWER CHARGES RECEIVABLE 63,044.29 20-1020 DUE FROM INVESTMENT EUND 1,357,616.69 20-1021 LAND 95,540.50 20-1022 BUILDINGS 6 STRUCTURE 16,885.00 20-1025 SEWER PLANT/LIFT STATIONS 749,868.60 20-1030 ONCOR SEWER LINE PROJECT 1,216,942.29 20-1035 CIP LIFTSTATION 0.00 20-1040 AUTOMOTIVE & MISC. EQUIP. 318,767.60 20-1080 NET PENSION ASSET (LIABILITY) 15,281.00 20-1081 DEFERRED OUTFLOW PENSION CONTR 59,475.00 20-1082 DEFERRED OUTFLOW PENSION INV. 0.00 20-1980 DEFERRED OUTFLOW/2019 REF BOND 70.365.75 4.767:569.11 TOTAL ASSETS 4,767,569.11 LIABILITIES 20-2010 DUE TO GENERAL BUND 0.00 20-2020 DUE FROM WASTEWATER BUND 0.00 20-2044 COMP. ABSENÇES CURRENT 0.00 20-2045 COMP. ABSENCES LONG TERM 14,315.71 20-2050 2022 TAX NOTES (9842) 30,244.76 20-2052 2023 TAX NOTE - VAC TRUCK 277,048.50 20-2054 BOND PAYABLE USDA 0.00 20-2055 DEFERRED REVENUE/ONCOR PROJ. 348,384.21 20-2094 ACCRUED INT. LONG TRM DEBT 48,366.00 20-2160 ACCRUED PAYROLL LIABILITY 1,726.01 20-2901 CURRENT PORTION USDA 0.00 20-2916 TAX NT 2019 LIFT STATION L-T 415,852.00 20-2917 TAX NT 19 LIFT STATTION S-T 0.00 20-2918 2019 REFUNDING BONDS 3,625,000.00 20-2950 DEFERRED INELOW- PENSION 2,649.00 20-2980 BOND ISSUANCE PREM.2019 REE BO 285.924.00 TOTAL LIABILITIES .049.510.19 EQUITY 20-3001 FUND BALANCE 1.016.611.41) TOTAL BEGINNING EQUITY 1,016,611.41) 5-17-2025 09:30 AM CITY OF LAMESA PAGE: 2 BALANCE SHEET AS OF: APRIL 30TH, 2025 20 -WASTEWATER FUND ACCOUNT ACCOUNT DESCRIPTION BALANCE TOTAL REVENUE 1,678,699.30 TOTAL EXPENSES 944.028.97 TOTAL REVENUE OVER/(UNDER) EXPENSES 734, 670.33 TOTAL EQUITY & REV. OVER/(UNDER) EXP. 201.941.08) TOTAL LIABILITIES, EQUITY & REV.OVER/(ONDER) EXP. 4,767,569.11 City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 16 SUBJECT: CITY MANAGER REPORT SUBMITTED BY: City Manager SUMMARY STATEMENT City Manager to report on current activities and answer questions from the City Council. COUNCIL ACTION No City Council action required. City Council Agenda City of'Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 17 SUBJECT: MAYOR'S REPORT SUBMITTED BY: Mayor SUMMARY STATEMENT Mayor to report on future events. COUNCIL ACTION No City Council action required. City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM: 18 SUBJECT: EXECUTIVE SESSION PROCEEDING: Closed Session SUBMITTED BY: City Staff EXHIBITS: AUTHORITY: Texas Open Meetings Act Chapter 551, Government Code SUMMARY STATEMENT Consider convening into closed Executive Session with the City Council of the City of Lamesa, Texas for the following: Section 551.074 Texas Government Code: Consider meeting in closed executive session to discuss personnel matters regarding to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee. COUNCIL ACTION DISCUSSION: Motion by Council Member to enter into executive session. Motion seconded by Council Member and upon being put to a vote the motion passed. VOTING: "AYE" "NAY" ABSTAIN" CERTIFIED AGENDA: EXECUTIVE SESSION OF THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS On this day, June 17, 2025, at a regular called meeting of the City Council of the City of Lamesa, Texas the Council adjourned into a closed executive session; notice of said session having been given by a notice posted at the City Hall, 601 South First Street at least seventy-two hours in advance. A. ANNOUNCEMENT BY PRESIDING OFFICER: "The City Council will begin its executive session on June 17, 2025, at P.M." The subject matter of each executive session deliberation is as follows: Sec. 551.074, Texas Government Code: Personnel Matters; CLOSED MEETING. (a) This chapter does not require a governmental body to conduct an open meeting: (1) to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee." RECORD OF ACTION TAKEN: B. ANNOUNCEMENT BY PRESIDING OFFICER: "The City Council has completed its executive session on June 17, 2025, at P.M." C. CERTIFICATION: I hereby certify that this agenda of an executive session of the City Council of the City of Lamesa, Texas is a true and correct record of the proceedings pursuant Texas Open Meetings Act (Chapter 551, Government Code). WITNESS my hand this 2025. Hayden Davis Mayor City Council Agenda City of Lamesa, Texas DATE OF MEETING: JUNE 17, 2025 AGENDA ITEM:19 ADJOURNMENT: Announcement by the Mayor - The next regular meeting of the City Council of the City of Lamesa, Texas will be held at 5:30 p.m., on Tuesday, July 15, 2025, at City'Hall, 601 South First Street.