RULE 15c2-12 FILING COVER SHEET

RULE 15c2-12 FILING COVER SHEET This cover sheet is sent with all submissions to the Municipal Securities Rulemaking Board (the Nationally Recognized Municipal Securities Information Repository) and any applicable State Information Depository pursuant to Securities and Exchange Commission (SEC) Rule 15c2-12 or any analogous state statute. Issuer Name: City of Lake Worth, Texas Issue(s): $ 10,300,000 Combination Tax and Revenue Certificates of Obligation, Series 2008 $ 4,725,000 General Obligation Refunding Bonds, Series 2009 $ 2,675,000 General Obligation Refunding Bonds, Series 2011 Filing Format X electronic paper; If available on the Internet, give URL: CUSIP Numbers to which the information filed relates (optional): X Nine-digit number(s) (see following page(s)): Six-digit number if information filed relates to all securities of the issuer * * * Financial & Operating Data Disclosure Information X Annual Financial Report or CAFR X Financial Information & Operating Data Other (describe) X Fiscal Period Covered: FYE 2014 Monthly Quarterly X Annual Other: * * * I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly: Signature: /s/ Debbie Whitley Name: Employer: City of Lake Worth, Texas Voice Telephone Number: Email Address: Debbie Whitley (817) 237-1211 ext. 103 dwhitley@lakeworthtx.org Title:Assistant City Manager/Director of Finance

DESCRIPTION OF ISSUES COVERED BY THIS REPORT Combination Tax and Revenue Certificates of Obligation, Series 2008 Date Principal CUSIP 10/01/15 $ 200,000 511399 EJ2 10/01/16 200,000 511399 EK9 10/01/17 200,000 511399 EL7 10/01/18 200,000 511399 EM5 10/01/19 200,000 511399 EN3 10/01/20 200,000 511399 EP8 10/01/21 200,000 511399 EQ6 10/01/22 200,000 511399 ER4 10/01/23 200,000 511399 ES2 10/01/24 200,000 511399 ET0 10/01/25 580,000 511399 EU7 10/01/27 1,230,000 511399 EW3 10/01/31 2,945,000 511399 FA0 10/01/34 2,725,000 511399 FD4 $ 9,480,000 General Obligation Refunding Bonds, Series 2009 Date Principal CUSIP 04/01/15 $ 535,000 511399 FK8 04/01/16 555,000 511399 FL6 04/01/17 580,000 511399 FM4 04/01/18 280,000 511399 FN2 04/01/19 295,000 511399 FP7 $ 2,245,000

General Obligation Refunding Bonds, Series 2011 Date Principal CUSIP 09/01/15 $ 260,000 511399 FU6 09/01/16 260,000 511399 FV4 09/01/17 265,000 511399 FW2 09/01/18 275,000 511399 FX0 09/01/19 280,000 511399 FY8 09/01/20 290,000 511399 FZ5 09/01/21 305,000 511399 GA9 $ 1,935,000

CONTINUING DISCLOSURE REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 CITY OF LAKE WORTH, TEXAS GENERAL OBLIGATION DEBT

FINANCIAL STATEMENTS The audited financial statements for the City for the fiscal year ended September 30, 2014 are being separately filed directly with the Nationally Recognized Municipal Securities Information Repository and any applicable State Information Depository, and are hereby incorporated by reference into this Annual Continuing Disclosure Report. SIGNATURE OF ISSUER The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a promise or guarantee. This Annual Continuing Disclosure Report may contain, in part, estimates and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such estimates and opinions, or that they will be realized. The information and expressions of opinion contained herein are subject to change without notice, and the delivery of this Annual Continuing Disclosure Report will not, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described. CITY OF LAKE WORTH, TEXAS /s/ Debbie Whitley Debbie Whitley Assistant City Manager/Director of Finance Approved for Submission: 03/23/2015 Date

CERTIFICATE OF SUBMISSION OF ANNUAL REPORT Subject to the continuing disclosure requirements of SEC Rule 15c2-12, this Annual Continuing Disclosure Report for the City of Lake Worth, Texas with respect to the issues listed on the report cover was submitted directly to the National Recognized Municipal Securities Information Repository ( NRMSIR ) listed below as well as to any applicable State Information Depository( SID ). NRMSIR Municipal Securities Rulemaking Board ("MSRB") via the Electronic Municipal Market Access ("EMMA") system First Southwest Company Signed by: /s/ William Bermudez

CITY OF LAKE WORTH, TEXAS 2015 GENERAL OBLIGATION DEBT REPORT TABLE 1 VALUATION, EXEMPTION AND TAX SUPPORTED DEBT 2014/15 Market Valuation Established by the Tarrant Appraisal District (excluding totally exempt property) $ 401,415,327 Less Exemptions/Reductions at 100% Market Value: Over 65 and Disabled Homestead Exemptions $ 19,192,241 Disabled Veteran's Exemptions 1,190,530 Agricultural Exemptions 1,398,872 Other 8,870 21,790,513 2014/15 Taxable Assessed Valuation $ 379,624,814 Total Debt Payable from Ad Valorem Taxes as of 1/31/2015 $ 17,830,000 Less Self-Supporting Debt (1) 2,918,850 Net Funded Debt Payable from Ad Valorem Taxes $ 14,911,150 Interest and Sinking Fund as of 1/31/2015 $ 939,997 Ratio Total Debt to Taxable Assessed Valuation 4.70% Ratio Net Debt to Taxable Assessed Valuation 3.93% 2015 Estimated Population - 4,780 Per Capita Taxable Assessed Valuation - $79,419 Per Capita Total Funded Debt - $3,730 Per Capita Net Funded Debt - $3,119 (1) General obligation debt is the amounts shown for which repayment is provided from either sales tax revenues or Waterworks and Sewer System revenues. The amount of self-supporting debt is based on the sales tax and Waterworks and Sewer System revenue support as shown in Table 9. It is the City s current policy to provide these payments from such revenues; this policy is subject to change in the future and, if changed to reduce the amount of such revenue support for general obligation debt, the City would be required to increase its debt service tax to compensate for the reduction in sales tax revenue support.

TABLE 2 TAXABLE ASSESSED VALUATION BY CATEGORY Fiscal Year Ended September 30, 2015 2014 2013 % of % of % of Category Amount Total Amount Total Amount Total Real, Residential, Single-Family $ 126,300,341 31.46% $ 120,445,310 31.11% $ 118,471,721 31.60% Real, Residential, Multi-Family 473,047 0.12% 733,250 0.19% 552,341 0.15% Real, Vacant Lots/Tracts 9,304,755 2.32% 8,577,365 2.22% 9,245,716 2.47% Real, Acreage (Land Only) 1,296,084 0.32% 2,140,610 0.55% 2,140,610 0.57% Real, Commercial 190,947,935 47.57% 191,303,986 49.42% 191,211,466 51.00% Tangible, Oil, Gas, Mineral Reserve 16,332,480 4.07% 3,298,250 0.85% 2,428,220 0.65% Real and Tangible, Personal Utilities 6,041,837 1.51% 5,821,386 1.50% 5,823,784 1.55% Tangible Personal, Commercial 50,187,685 12.50% 54,264,929 14.02% 44,453,881 11.86% Tangible Personal, Industrial 40,263 0.01% 40,263 0.01% 50,463 0.01% Tangible Personal, Mobile Homes 165,300 0.04% 157,700 0.04% 171,800 0.05% Tangible Personal, Other 325,600 0.08% 338,965 0.09% 353,765 0.09% Total Appraised Value Before Exemptions $ 401,415,327 100.00% $ 387,122,014 100.00% $ 374,903,767 100.00% Less: Total Exemptions/Reductions 21,790,513 21,877,599 21,754,120 Taxable Assessed Value $ 379,624,814 $ 365,244,415 $ 353,149,647 Fiscal Year Ended September 30, 2012 2011 % of % of Category Amount Total Amount Total Real, Residential, Single-Family $ 119,082,985 30.12% $ 120,064,373 31.13% Real, Residential, Multi-Family 778,841 0.20% 779,541 0.20% Real, Vacant Lots/Tracts 9,732,030 2.46% 9,299,301 2.41% Real, Acreage (Land Only) 2,140,610 0.54% 2,117,128 0.55% Real, Commercial 192,014,483 48.56% 189,075,284 49.02% Tangible, Oil, Gas, Mineral Reserve 11,929,080 3.02% 6,027,920 1.56% Real and Tangible, Personal Utilities 6,246,354 1.58% 5,623,788 1.46% Tangible Personal, Commercial 52,567,565 13.29% 51,809,341 13.43% Tangible Personal, Industrial 407,723 0.10% 56,992 0.01% Tangible Personal, Mobile Homes 166,800 0.04% 197,369 0.05% Tangible Personal, Other 353,765 0.09% 649,205 0.17% Total Appraised Value Before Exemptions $ 395,420,236 100.00% $ 385,700,242 100.00% Less: Total Exemptions/Reductions 20,996,470 21,482,642 Taxable Assessed Value $ 374,423,766 $ 364,217,600

TABLE 3 VALUATION AND TAX SUPPORTED DEBT HISTORY Ratio of Tax Tax Supported Supported Tax Fiscal Taxable Debt Debt Supported Year Taxable Assessed Outstanding to Taxable Debt Ended Estimated Assessed Valuation at End Assessed Per 9/30 Population (1) Valuation (2) Per Capita of Year (3) Valuation Capita 2011 4,850 $ 364,217,600 $ 75,096 $ 21,535,000 5.91% $ 4,440 2012 4,750 374,423,766 78,826 20,375,000 5.44% 4,289 2013 4,783 353,149,647 73,834 19,140,000 5.42% 4,002 2014 4,780 365,244,415 76,411 18,030,000 4.94% 3,772 2015 4,780 379,624,814 79,419 16,705,000 (4) 4.40% (4) 3,495 (4) (1) Source: North Central Texas Council of Governments and City officials. (2) As reported by the Tarrant County Appraisal District on City s annual State Property Tax Board Reports; subject to change during the ensuing year. (3) Includes self-supporting debt; excludes notes payable and leases. (4) Projected. TABLE 4 TAX RATE, LEVY AND COLLECTION HISTORY Fiscal Interest Year and Ended Tax General Sinking % Current % Total 9/30 Rate Fund Fund Tax Levy Collections Collections 2011 $ 0.492512 $ 0.126172 $ 0.366340 $ 1,793,815 98.23% 98.86% 2012 0.466419 0.134057 0.332362 1,746,384 98.85% 99.93% 2013 0.474411 0.141449 0.332962 1,675,381 95.48% 98.77% 2014 0.482083 0.148043 0.334040 1,760,781 96.82% 98.90% 2015 0.467828 0.152321 0.315507 1,775,991 77.39% (1) 74.27% (1) (1) Collections through January 31, 2015. TABLE 5 TEN LARGEST TAXPAYERS 2014/15 Taxable Assessed Name of Taxpayer Nature of Property Valuation Inland Western Lake Worth Real Estate/Development 24,918,358 % of Total Taxable Assessed Valuation $ 6.56 % 6034 Azle Avenue LLC Retail 21,944,708 5.78 Target Corporation Retail 11,128,268 2.93 XTO Energy Inc Energy 10,963,160 2.89 Home Depot USA Inc Retail 10,377,180 2.73 Silverman, Benedict A Personal 9,323,840 2.46 TSCA-nb 1997 (Del) LLC Shopping Center 9,283,000 2.45 Ritchie Bros. Properties Ltd. Real Estate/Development 9,200,000 2.42 Wal-Mart Stores, Inc. Retail 8,961,128 2.36 Applestap LLC Real Estate/Development 4,466,382 1.18 $ 120,566,024 31.76 %

TABLE 6 TAX ADEQUACY Net Principal and Interest Requirements, 2015 (1) $ 1,390,058 $0.3775 Tax Rate at 97% Collection Produces $ 1,390,091 Average Net Principal and Interest Requirements (1) $ 1,094,104 $0.2972 Tax Rate at 97% Collection Produces $ 1,094,398 Maximum Net Principal and Interest Requirements, 2015 (1) $ 1,390,058 $0.3775 Tax Rate at 97% Collection Produces $ 1,390,091 (1) Excludes self-supporting debt.. TABLE 7 DEBT SERVICE REQUIREMENTS Fiscal Net Year Less: Outstanding % of Ending Outstanding Debt Service (1)(2) Self-Supporting Debt Principal 9/30 Principal Interest Total Debt Service Service Retired 2015 $ 1,325,000 $ 725,457 $ 2,050,457 $ 660,399 $ 1,390,058 2016 1,355,000 689,070 2,044,070 659,882 1,384,188 2017 1,395,000 646,044 2,041,044 668,101 1,372,943 2018 1,110,000 598,779 1,708,779 427,440 1,281,339 2019 1,145,000 562,844 1,707,844 435,264 1,272,580 35.11% 2020 870,000 525,551 1,395,551 205,600 1,189,951 2021 890,000 499,144 1,389,144 208,000 1,181,144 2022 600,000 471,918 1,071,918-1,071,918 2023 610,000 453,233 1,063,233-1,063,233 2024 620,000 434,059 1,054,059-1,054,059 55.02% 2025 630,000 414,521 1,044,521-1,044,521 2026 580,000 384,994 964,994-964,994 2027 600,000 355,494 955,494-955,494 2028 630,000 324,744 954,744-954,744 2029 670,000 289,731 959,731-959,731 72.27% 2030 710,000 250,056 960,056-960,056 2031 755,000 207,938 962,938-962,938 2032 810,000 162,944 972,944-972,944 2033 860,000 117,619 977,619-977,619 2034 910,000 72,263 982,263-982,263 94.70% 2035 955,000 24,472 979,472-979,472 100.00% $ 18,030,000 $ 8,210,872 $ 26,240,872 $ 3,264,686 $ 22,976,186 (1) Outstanding Debt Service includes self-supporting debt but does not include other obligations of the City. See Table 11 Other Obligations. (2) The General Obligation Refunding Bonds, Series 2009 & Combination Tax & Revenue Certificates of Obligation, Series 2008 have payments due on October 1. The payees for both series require receipt of payments 5 days prior to the due date, so each payment is always recorded in the fiscal year prior to the actual due date. In order for the city to ensure that it is able to make payments on a timely basis, the City must budget for these payments in the fiscal year prior to the actual due date. The October 1 payment is illustrated above in full in the fiscal year which it occurs.

TABLE 8 INTEREST AND SINKING FUND BUDGET PROJECTION (1) Tax Supported Debt Service Requirements, Fiscal Year Ending 9/30/15 $ 2,050,457 Interest and Sinking Fund, 9/30/14 $ 16,118 Budgeted Interest and Sinking Fund Tax Levy 1,236,868 Budgeted Transfers from Economic Development Corporation 245,421 Budgeted Transfers from Waterworks and Sewer System 267,285 Use of Prior Year Reserves 10,000 Delinquent Taxes 9,000 Pentalty and Interest 9,000 Debt paid directly from Water & Sewer Debt Service Fund 281,256 Estimated Investment Income 150 $ 2,075,098 Estimated Balance, 9/30/15 $ 24,641 (1) Includes self-supporting debt. TABLE 9 - COMPUTATION OF SELF-SUPPORTING DEBT FY 2014/15 4B Economic Development Corporation Sales Tax Revenue Available (1) $ 937,652 FY 2014/15 Debt Service Requirements for Self-Supported Debt $ 104,100 Percentage of Debt Self-Supporting 100.00% FY 2014/15 Net Waterworks and Sewer System Revenue Available for Debt Service $ 505,607 Add: Interest & Sinking Fund Transfer 278,204 Deduct: Direct System Revenue Debt - Revenue Available for Self-Supporting Debt $ 783,811 FY 2014/15 Debt Service Requirements for Self-Supported Debt $ 556,299 Percentage of Debt Self-Supporting 100.00% (1) Certain costs of projects constructed by the City are paid by the Lake Worth Economic Development Corporation in accordance with an agreement between the City and the Corporation (see Table 13 Sales Tax History ). TABLE 10 AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS As of September 30, 2014, the City has no authorized but unissued debt. TABLE 11 OTHER OBLIGATIONS The City of Lake Worth leases the following equipment: The City contracted for garbage disposal with Progressive Waste Solutions on March 8, 2011. The City bills directly the residential customers a set monthly rate and pays Progressive Waste Solutions $10,843 monthly for 60 months. In addition, the City receives a 6% franchise fee from Progressive Waste Solutions. The franchise fee is based upon the amount Progressive Waste Solutions charges the City for residential customers plus the amount billed by Progressive Waste Solutions to commercial customers. For the fiscal year ended September 30,2013, the City expensed $171,774 for sanitation expense. The City has a contract with the City of Fort Worth, Texas, for the purchase of treated water and for sewage treatment. The contract for water, dated November 16, 2010 for a 20 year period, is used to supplement the water wells operated by the City. The contract for sewer is dated May 12, 1987 for a 30 year period. Charges are incurred when actual

delivery occurs and the rates are adjusted periodically. For the fiscal year ended September 30, 2013, the City's expenses in the Water and Sewer fund for water and sewer treatment were $516,363 and $417,652, respectively. As an economic development incentive, the City entered into an agreement with Kohl's Texas, L.P., a Texas Limited Partnership (Kohl's) whereby the City will pay to Kohl's 40% of the City's one percent sales tax collected beginning on the day Kohl's opens for business and ending on the 12th anniversary of the calendar year in which the store opens for business or until Kohl's has received a total of $600,000 whichever comes first. The refund for the prior calendar year shall be made on July 1 of the following year. During this current fiscal year the City made a payment of $52,846 on June 20, 2013 for the sales tax collected in the 2012 calendar year. The maximum amount remaining under the terms of this agreement is $219,230. As an economic development incentive, the City entered into an agreement with Target Corporation, whereby the City will pay to Target 40% for the first through fifth years and 35% for the sixth through the tenth year of the City's one percent sales tax collected beginning on the day Target opens for business and ending on the 10 h anniversary of the calendar year in which the store opens for business or until Target has received a total of $925,000 whichever comes first. The refund for the prior calendar year shall be made on July 1 of the following year. During this current fiscal year the City made a payment of $70,670 on June 20, 2013 for the sales tax collected in the 2012 calendar year. The maximum amount remaining under the terms of this agreement is $353,866. The City and Lake Worth Economic Development Corporation have an agreement with a local developer to contribute funds toward the construction of a local shopping center. The contribution to the local developer is based upon square footage and occupancy of the development. The developer will be paid $1.54 per square footage of occupied space, up to a maximum of $350,000. The planned total square footage of the development is to be 226,591 square feet. As no additional tenants had moved in, the City did not make a payment in the current year. The maximum amount remaining under the terms of this agreement is $62,719. In the event that the Lake Worth Economic Development Corporation does not have the cash flow to make such payments, they will be allowed to delay the payment(s) for a period of time until sufficient cash flow is available, not to exceed 180 days from the date the tenant and/or occupant of the Development opens for business. Net future minimum lease payments under the operating leases for the City of Lake Worth equipment as of September 30, 2013 are as follows: FYE 30-Sep Amount 2015 $ 24,133 2016 11,215 2017 6,510 Total $ 41,858

TABLE 12 GENERAL FUND REVENUE AND EXPENDITURE HISTORY Fiscal Year Ended September 30, Revenues: 2014 2013 2012 2011 2010 Taxes $ 4,887,817 $ 4,728,881 $ 4,453,256 $ 4,257,313 $ 4,193,783 Licenses and Permits 695,812 625,471 139,905 201,800 326,602 Fines and Forfeits, etc. 227,006 163,506 547,776 629,311 450,295 Charges for Services 29,324 23,052 192,873 182,066 171,307 Intergovernmental 211,611 204,591 37,755 30,098 46,005 Investment Earnings 2,833 5,031 5,644 4,776 5,816 Miscellaneous 461,708 369,634 331,081 347,954 346,601 Total Revenues $ 6,516,111 $ 6,120,166 $ 5,708,290 $ 5,653,318 $ 5,540,409 Expenditures: Mayor and Council $ 16,761 $ 10,416 $ 19,740 $ 16,684 $ 8,714 General Expense 1,177,649 1,009,967 1,010,787 1,040,555 983,735 Police Department 1,873,451 1,841,056 1,783,687 1,577,390 1,435,795 Fire Department 1,335,239 1,245,393 1,227,271 1,149,451 1,077,394 Street Department 452,222 431,769 451,520 377,902 466,611 Library 207,306 200,508 208,795 192,855 185,674 Recreation Department 351,753 320,602 285,221 282,536 266,673 Maintenance Department 121,017 140,420 143,922 135,944 191,835 Senior Citizens Program 98,345 86,437 88,826 81,609 75,232 Inspections and Permits 302,709 283,536 324,671 314,119 247,319 Municipal Court 185,718 167,425 163,000 161,467 195,711 Information Technology 286,979 259,971 247,605 227,790 224,868 Animal Control 76,741 68,807 66,478 70,401 61,234 Transportation - - - - - Youth Association - - - - - Emergency Management 12,485 11,669 6,967 6,707 8,477 Capital Outlay 621,957 575,312 368,332 247,832 132,186 Debt Service 19,868 8,993 9,497 4,440 4,171 Total Expenditures $ 7,140,200 $ 6,662,281 $ 6,406,319 $ 5,887,682 $ 5,565,629 Excess of Revenues Over/(Under) Expenditures $ (624,089) $ (542,115) $ (698,029) $ (234,364) $ (25,220) Other Financing Sources (Uses): Transfers In (1) $ 1,252,858 $ 1,160,849 $ 1,113,457 $ 1,157,816 $ 939,407 Transfers (Out) - - (165,783) (285,244) (147,850) Sale of Assets - - - 44,447 40,000 Proceeds From Leases 44,966-39,790 - - Total Other Financing Sources (Uses) $ 1,297,824 $ 1,160,849 $ 987,464 $ 917,019 $ 831,557 Excess (Deficiency) of Revenues and Other Financing Sources Over/(Under) Expenditures and Other Uses $ 673,735 $ 618,734 $ 289,435 $ 682,655 $ 806,337 Beginning Fund Balance 5,170,883 4,552,149 4,262,714 3,580,059 2,773,722 Residual Equity Transfer/GAAP Adjustments - - - - Ending Fund Balance $ 5,844,618 $ 5,170,883 $ 4,552,149 $ 4,262,714 $ 3,580,059 (1) Includes lease proceeds and asset sales.

TABLE 12A CHANGE IN NET ASSETS Audited Fiscal Years Ending September 30, 2014 2013 2012 2011 2010 Revenues: Program Revenues Fines, Fees and Charges for Services $ 1,155,190 $ 1,014,492 $ 902,059 $ 1,033,014 $ 967,363 Operating Grants and Contributions 224,552 229,024 240,457 245,461 212,494 Capital Grants and Contributions - - 47,024 - - General Revenues Property Taxes Levied for General Purposes 1,807,647 1,797,359 1,763,534 1,787,461 1,686,987 Sales Taxes 7,298,425 7,069,818 6,576,522 6,226,598 6,170,285 Franchise Taxes 460,255 434,654 439,217 464,271 436,760 Other Taxes 216,875 180,108 202,226 203,731 197,861 Interest - 20,975 15,905 17,269 30,632 Miscellaneous 261,691 178,109 101,560 139,747 162,903 Gain (Loss) on Sale of Assets - - - (9,939) 40,000 Total Revenues $ 11,424,635 $ 10,924,539 $ 10,288,504 $ 10,107,613 $ 9,905,285 Expenditures: General Government $ 1,552,137 $ 1,305,709 $ 1,232,282 $ 1,270,492 $ 1,281,700 Mayor and City Council 30,037 23,692 33,053 26,434 20,245 Public Safety 4,077,408 3,981,914 3,936,844 3,684,202 3,580,685 Streets 994,764 960,693 1,093,260 827,016 871,762 Library 218,178 211,983 - - - Maintenance 125,495 142,707 150,543 135,833 197,639 Senior Center 107,417 97,805 98,547 87,110 76,194 Municipal Court 185,504 168,734 164,055 163,989 198,077 Animal Control 98,763 87,553 84,446 76,170 63,326 Emergency Management 12,485 12,240 8,218 6,637 11,278 Permits and Inspection 304,847 282,503 329,111 314,750 250,908 Informational Technology 315,713 279,553 266,254 248,635 242,031 Culture and Recreation 476,523 422,877 599,059 547,256 556,661 Interest and Fiscal Charges 914,933 798,950 871,082 968,666 992,174 Total Expenditures $ 9,414,204 $ 8,776,913 $ 8,866,754 $ 8,357,190 $ 8,342,680 Increase (Decrease) in Net Assets Before Transfers $ 2,010,431 $ 2,147,626 $ 1,421,750 $ 1,750,423 $ 1,562,605 Transfers (741,268) (35,887) (202,934) 53,865 73,872 Increase (Decrease) in Net Assets $ 1,269,163 $ 2,111,739 $ 1,218,816 $ 1,804,288 $ 1,636,477 Net Assets - Beginning of Year $ 32,013,570 $ 30,376,861 $ 29,158,045 $ 27,353,757 $ 25,717,280 Prior Period Adjustment - (475,030) - - - Net Assets - End of Year $ 33,282,733 $ 32,013,570 $ 30,376,861 $ 29,158,045 $ 27,353,757

TABLE 13 MUNICIPAL SALES TAX HISTORY Fiscal 1¼ % City Sales & Use Tax 1/2% 4B EDC Sales Tax Year % of Equivalent of Ended Total (1) Ad Valorem Ad Valorem Per Total 9/30 Collected Tax Levy Tax Rate Capita (2) Collected 2011 $ 3,652,999 204% $ 1.0030 $ 753 $ 1,492,070 2012 4,082,879 234% 1.0904 860 1,667,655 2013 4,381,156 262% 1.2406 916 1,789,486 2014 4,535,429 258% 1.2418 949 1,852,499 2015 2,295,632 (3) 129% (3) 0.6047 (3) 480 (3) 937,652 (3) (1) Excludes ½ cent sales taxes for economic and community development and ¼ cent sales tax for crime control. Includes the ¼ cent sales tax for street maintenance, effective July 1, 2004, for a total of 1 ¼ cents. (2) Based on population estimates of the North Central Texas Council of Governments and City Officials. (3) Partial collections through February 28, 2015. The sales tax breakdown for the City is as follows: Crime Control Prevention District 0.25% Street Maintenance 0.25% Economic and Community Development (4B) 0.50% City Sales & Use Tax 1.00% State Sales & Use Tax 6.25% Total 8.25% TABLE 14 CURRENT INVESTMENTS As of January 31, 2015, the City s funds were invested in the following: Book Market Percentage of Description Value Value Portfolio TexPool $ 2,712,665 $ 2,712,665 23.45% TexStar 3,520,866 3,520,866 30.44% Lone Star 2,744,435 2,744,435 23.73% LOGIC 2,588,233 2,588,233 22.38% $ 11,566,199 $ 11,566,199 100.00%