HomeMy WebLinkAbout2023-09-30 Annual Comprehensive Financial Report (ACFR)Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2023
AS PREPARED BY THE
FINANCE DEPARTMENT
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2023
Table of Contents
i
Page Exhibit
Introductory Section
Letter of Transmittal vii
Certificate of Achievement xii
Organizational Chart xiii
Elected Officials and Administrative Officers xiv
Financial Section
Independent Auditor’s Report 3
Management's Discussion and Analysis 7
Basic Financial Statements
Government-Wide Statements:
Statement of Net Position 21 1
Statement of Activities 22 2
Fund Financial Statements:
Governmental Funds Financial Statements
Balance Sheet – Governmental Funds 24 3
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 26 4
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds 28 5
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 30 6
Proprietary Funds Financial Statements
Statement of Net Position – Proprietary Funds 31 7
Reconciliation of the Statement of Net Position
Proprietary Funds to the Government-Wide
Statement of Net Position 32 8
Statement of Revenues, Expenses, and Changes
In Net Position – Proprietary Funds 33 9
Reconciliation of the Statement of Revenues,
Expenses, and Changes in Net Position of
Proprietary Funds to the Statement of Activities 34 10
Statement of Cash Flows – Proprietary Funds 35 11
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 36 12
Statement of Changes in Fiduciary Net Position 37 13
Component Units Financial Statements
Statement of Net Position – Component Units 38 14
Statement of Activities – Component Units 39 15
Notes to the Financial Statements 41
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2023
Table of Contents – Continued
ii
Page Exhibit
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios –
Supplemental Death Benefits Fund 82 A-1
Schedule of OPEB Contributions –
Supplemental Death Benefits Fund 83 A-2
Schedule of Changes in Net OPEB Liability (Asset) and
Related Ratios – Defined Benefit Retiree Healthcare Plan 84 A-3
Schedule of OPEB Contributions –
Defined Benefit Retiree Healthcare Plan 85 A-4
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS)86 A-5
Schedule of Contributions – Retirement Plan (TMRS)87 A-6
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 88 A-7
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 89 A-8
Notes to the Required Supplementary Information 90
Combining and Budgetary Comparison Schedules
Major Governmental Funds
Budgetary Comparison Schedule – Debt Service Fund 93 B-1
Nonmajor Governmental Funds
Combining Balance Sheet 95 B-2
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances 96 B-3
Internal Service Funds
Combining Statement of Net Position 98 C-1
Combining Statement of Revenues, Expenses, and 99 C-2
Changes in Fund Net Position
Combining Statement of Cash Flows 100 C-3
Discretely Presented Component Units
Balance Sheet-Allen Economic Development Corporation 102 D-1
Reconciliation of the Governmental Fund Balance Sheet to the
Statement of Net Position - Allen Economic Development Corporation 103 D-2
Statement of Revenues, Expenditures, and Change
in Fund Balance - Allen Economic Development Corporation 104 D-3
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities 105 D-4
Balance Sheet-Allen Community Development Corporation 106 D-5
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position - Allen Community Development Corporation 107 D-6
Statement of Revenues Expenditures, and Change
in Fund Balance - Allen Community Development Corporation 108 D-7
Reconciliation of the Governmental Fund Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities - Allen Community Development Corporation 109 D-8
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2023
Table of Contents – Continued
iii
Page Table
Statistical Section
Net Position by Component 114 1
Changes in Net Position 115 2
Fund Balances, Governmental Funds 117 3
Changes in Fund Balances - Governmental Funds 118 4
Assessed Value and Estimated Actual Value of Taxable Property 119 5
Direct and Overlapping Property Tax Rates 120 6
Principal Property Taxpayers 121 7
Ad Valorem Tax Levies and Collections 122 8
Ratio of Outstanding Debt by Type 123 9
Ratio of General Bonded Debt Outstanding 124 10
Direct and Overlapping Governmental Activities Debt 125 11
Pledged Revenue Coverage 126 12
Demographic and Economic Statistics 127 13
Principal Employers 128 14
Full-Time Equivalent City Government Employees by
Function & Program 129 15
Operating Indicators by Function & Program 130 16
Capital Assets Statistics by Function & Program 131 17
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v
Introductory Section
vi
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100
WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org
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March 19, 2024
Mayor Baine Brooks,
The Honorable Mayor and Members of the Allen City Council,
Citizens of Allen:
The Finance Department is pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of
Allen, Texas (the City), for the fiscal year ended September 30, 2023.
This report is published to provide the City Council, our citizens, City staff, and other readers with detailed
information concerning the financial position and activities of the City. Management has prepared the report and is
responsible for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures. To the best of our knowledge and belief, the enclosed data is complete and reliable in all
material respects. All disclosures necessary to enable the reader to gain an understanding of the City’s financial
activities have been included.
Also included in this report is an unmodified (“clean”) opinion on the City of Allen’s financial statements for the year
ended September 30, 2023, issued by Weaver and Tidwell, L.L.P. The independent auditors’ report is located at
the beginning of the financial section of the ACFR.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides
a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of
transmittal and the two should be read in conjunction with each other.
REPORTING ENTITY
This report includes all funds of the City including its component units. Component units are legally separate entities
for which the City is financially accountable but are not part of the City’s operations. The Allen Economic
Development Corporation (AEDC) and Allen Community Development Corporation (ACDC) are included in the
financial statements as discreetly presented component units.
CITY PROFILE
The City of Allen is in Collin County, which is the 3rd fastest-growing county in the nation. Collin County’s population,
1,158,696 in 2022 and is expected to reach 2.4 million by 2050. Located 25 miles north of downtown Dallas on US
75, Allen encompasses approximately 27 square miles. The George Bush Tollway and Sam Rayburn Tollway (Hwy
121)provide direct access into the Metroplex and access to Love Field (27 miles) and Dallas Ft Worth International
Airport (31 miles). The City of Allen sits in a prime location for restaurants, shopping centers and other retail
venues. The quality of the City’s community attracts well-educated residents with a high level of spending power
and disposable income. Allen’s population reached 111,551 residents in 2022, more than doubling from just over
45,000 in the year 2000 and is projected to reach approximately 140,000 at build-out.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a vote of the people
and provides for seven non-partisan Council members, including the Mayor, to be elected at-large to staggered
terms of three years. The Council is responsible for enacting ordinances, resolutions, and regulations governing
the City as well as adopting the annual budget which serves as the foundation for financial planning and control.
The City Council appoints the City Manager, who has full responsibility for carrying out Council policies and
administering City operations. The Council also appoints the Municipal Judge and various advisory boards.
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City service departments provide a full range of services including police and fire protection, emergency ambulance
service, municipal courts, building code enforcement, library, parks and recreation, tourism, water and sewer
services, sanitation/solid waste services, traffic engineering, and construction and maintenance of streets and
infrastructure. The City currently has a staff of 937.17 full time equivalent employees.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
The Dallas-Fort Worth area has an incredibly diversified economy, an extremely low unemployment rate, a growing
labor force, low cost of living, affordable real estate, and a superior business climate. The City of Allen’s
unemployment rate as of September 2023 was 3.5%, and the Collin County unemployment rate was 3.7% -- both
of which were below the national rate of 3.8%. Allen has increasingly become a home for highly educated, high-
income professionals, yet maintains a welcoming spirit for people and families from all stations of life. The median
household income in Allen was $121,259 in 2022, and over 55% of the City’s residents have earned a bachelor’s
degree or higher.
Allen’s Position in the Region
Along with being situated in an ideal location just 12 miles north of Dallas on US 75, Allen’s appealing demographics
have spurred along record-breaking growth. The population of 111,551 is expanding at a moderate growth rate.
Allen is a community that offers exceptional housing, award-winning schools, steady job growth, and a dynamic
business climate, all of which are strong factors in the success of the City’s economy.
Allen is a vibrant city with award winning amenities. The pro-business environment and superior quality of life come
together to empower Allen’s residents and businesses to achieve higher levels of success. This unique combination
has received national recognition, including Wallet Hub ranking Allen the 2nd best real-estate market in America.
2022)
Long Range Financial Planning
The City’s responsiveness to emerging economic challenges and its long-term planning have been key factors in
its fiscal health. The City has a five-year financial plan and a seven-year capital improvement plan where
departments reevaluate project priorities, review funding sources, and identify new projects as needed. Using this
plan allows the City to plan the timing of projects associated with debt issuance and the effects on the tax rate. The
ratings on the City’s General Obligation debt were reaffirmed at AAA by Standard and Poor’s and Aaa by Moody’s.
The Water and Sewer Revenue Bonds are rated ‘AAA’ from Standard and Poor’s and Aa2 from Moody’s. S&P’s
recent rating report supporting the ‘AAA’ rating stated the following credit factors:
Very strong economy
Very strong management with strong financial policies and practices
Very strong budgetary flexibility and strong budgetary performance
Very strong liquidity
Adequate debt and contingent liability position
Strong institutional framework score.
During fiscal year 2016, the City began a CIP Bond Program that totaled $93 million and estimated to be completed
over seven years. Since that time Allen has issued $93 million related to the bond program. The City held a Bond
Election in November of 2023 for $156,500,000. There were five propositions on the ballot and but for one
proposition, all were approved by the voters. The four propositions that passed are for public improvements.
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Fiscal Year 2023 Highlights
During fiscal year 2023, the City accomplished many initiatives to enhance livability, improve personal experience,
invest in the future, and celebrate the successes. From quality neighborhoods to park development, community
safety, and environmental initiatives, it’s no surprise that people move here to experience the quality of life the
citizens of Allen enjoy.
The City continues to meet the growing diversity of residents by adding a variety of housing types--single-family
homes, townhomes, and multifamily units; single-family and townhome revenue activity represent the predominant
revenue sources. Permit activity for commercial and mixed-use development showed the greatest revenue across
all development types, due largely to the development activity in the Watters Creek District and The Farm mixed-
use development.
The City has an overall crime rate of 10 per 1,000 residents compared to other communities of similar population
size, the City has a crime rate that is one of the lowest in the nation. According to Homesnacks list of Safest Cities
in America for 2023, Allen ranks the 12th, and the 13th , among lists of the safest cities with a population exceeding
100,000 residents. Regarding violent crimes, NeighborhoodScout's research shows that Allen's violent crime rate
is .92 or less than 1 per 1,000 inhabitants, which is well below the national average for all communities of all
population sizes.
The Fire Department is currently focused on improving emergency services and care for its citizens and visitors.
The department has updated medical treatment protocols to include the latest in-patient care, expanded
professional development programs for staff, and provided education programs to the community. Additionally, the
department has implemented a new records management system to better organize data. Construction of Fire
Station #6 is almost completed, and the department has increased inter-operability with neighboring fire
departments through joint training and resource sharing.
Environmentally focused public activities continued to be a priority for the community and residents of the
City. Educational opportunities were provided to homeschoolers, our local public and private schools, scouts, and
youth camps. The City was able to provide 58 programs to 2,053 children and adults. Various Keep Allen Beautiful
KAB) youth contests and award ceremonies were conducted before the Allen City Council at Regular City Council
meetings. Our franchised waste services provider, Community Waste Disposal, continued to support all residential
and commercial waste and recycling activities including the major KAB events like Great American Clean Up, the
city’s “Allen USA” Independence Day Celebration, and Allen Recycles Day. The year 2023 marked the City’s 22nd
year as a Tree City USA, and its 21st National Arbor Day Foundation Growth Award. KAB and the City continue to
be recognized by Keep Texas Beautiful as a Gold Star Affiliate and Sustained Excellence Award Winner. KAB has
won the Keep Texas Beautiful Governor’s Community Achievement award a total of three times. This recognizes
the City and KAB as sponsoring the best in public environmental education activities among Texas cities similar to
our population.
During fiscal year 2023, the CDC oversaw the expenditure of Type B half-cent sales tax revenue on projects that
enhanced the overall quality of life in Allen. Some of these projects included: construction of various hike and bike
trails, Allen USA Celebration, a new dog park, Allen Heritage Village, various playground renovation/replacements
and shade structure additions, construction of the Stephen G Terrell Recreation Center and Park, and the master
planning of Molsen Farm.
The Allen Public Library (the “Library”) continues to provide a vibrant, welcoming environment for Allen citizens with
an emphasis on exemplary customer service and support for lifelong learning, literacy, access to information, and
bringing the community closer together. To encourage literacy and lifelong learning, the Library offers programs
for children and teens on art, science (including STEM kits for checkout), animals, and reading. Adults find
opportunities to feed their literary, cultural, historical, musical, and travel interests augmented by hands-on activities
for crafts and food. During the hot Texas summers, visitors of all ages participate in the cool Summer Reading
Clubs, while reading, learning, and earning prizes. The Library’s digital collection, both e-books and e-audiobooks,
continued to grow with the cloud Library service, notably through a consortium with sixty-eight other Texas libraries,
to offer more than 272,000 items. Physical books and DVD’s remain popular among patrons of all ages. During
fiscal 2023, the Library was recognized by the Texas Municipal Library Directors Association for the tenth
consecutive year for Achievement of Library Excellence. The Library also provided residents with access to
information outside the Library through databases, Interlibrary Loans, and expanded options for digital books,
audiobooks, digital magazines, digital graphic novels, and streaming videos from cloud Library.
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The Allen Economic Development Corporation (AEDC) worked to bring a variety of companies and related
development to Allen. Sol-Ark, a manufacturer of solar power invertors, committed to relocating their corporate
headquarters and production into 300,000-SF in Allen, bringing 400 new jobs. AEDC secured the headquarters
and distribution facility for Grupo OmniLife, a large Mexico-based maker of health and sports related supplements.
The project also includes the construction of a second 75,000-SF spec office/showroom from Heady
Investments. Additional office tenants who committed to Allen in FY23 include: Resi Media/Pushpay and Inbenta.
One of the City’s major draws, The Credit Union of Texas Event Center, consists of a main arena and support
facilities, the Allen Community Ice Rink, the south parking structure, and shared ownership of the north parking
structure with The Village at Allen. The Center hosts a wide variety of activities including shows, concerts,
exhibitions, contests, athletic competitions, cultural events, trade shows, as well as civic ceremonies and
activities. We are beginning to see pre-pandemic levels of participation at sporting events and live shows helping
to bring in an annual estimated impact of over $12,000,000. The Event Center is also the home to professional
sports; the Allen American Hockey Club (ECHL), and the Dallas Sidekicks Soccer Club (MASL). The Center
celebrated its 14th anniversary in November 2023.
With all this happening within Allen’s borders, it’s clear that the city is working hard to provide every resident and
visitor with great experiences, services, and safety.
Relevant Financial Policies
The City’s financial policies and practices set forth the basic framework for the fiscal management of the City. The
policies and procedures were developed within the parameters established by applicable provisions of the Texas
Local Government Code, the City of Allen charter, and internal management laws, and are reviewed on a periodic
basis. The Investment Policy is also approved annually by the Council. All other policies (accounting, budgeting,
procurement, capital improvements, asset management, and risk management) are internal policies approved by
the Finance department and City Manager. On a quarterly basis, the Finance Department prepares financial and
investment reports that are presented to the City Council.
Internal Control
Management of the City, through its Finance Department, is responsible for the implementation, maintenance, and
monitoring of a set of comprehensive internal controls. The goal of the City’s system of internal control is to limit
opportunity for theft, fraud, or abuse by ensuring adequate separation of duties and systematic monitoring with a
positive control environment set at the top of the organization. The internal control structure is designed to provide
reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the
cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
AWARDS AND ACKNOWLEDGEMENTS
Awards -- The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Allen for its Annual Comprehensive
Financial Report for the fiscal year ended September 30, 2022. Fiscal year 2022 was the twenty-third consecutive
year for which the City has achieved this prestigious award. To be awarded a Certificate of Achievement for
Excellence in Financial Reporting, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe
that our current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The City also received the GFOA's Award for Distinguished Budget Presentation for its annual program of services
dated October 1, 2022. This is the twenty-third consecutive year the City has received the award. To qualify for the
Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in
several categories including policy document, financial plan, operations guide, and communications device.
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Acknowledgements – We would like to express our sincere gratitude to City’s personnel who contributed to the
production of this report, especially the accounting division. Appreciation is expressed to representatives of
Weaver, LLP, for their invaluable assistance in producing the final document, and to the City Manager’s office and
the members of the City Council, whose leadership and commitment are vital to the health and vitality of the City of
Allen.
Respectfully submitted,
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CITY OF ALLEN
ORGANIZATIONAL CHART
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1
Financial Section
2
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Allen, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of City of Allen, Texas (City) as of and for the year ended September 30, 2023, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information
of the City, as of September 30, 2023, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Statements section of our report. We are required to be independent of the City and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to
our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
The Honorable Mayor and Members of City Council
City of Allen, Texas
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis and the Required Supplementary Information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with GAAS, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
The Honorable Mayor and Members of City Council
City of Allen, Texas
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining and budgetary comparison schedules, as
listed in the table of contents, are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The combining and budgetary comparison schedules are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. 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 GAAS. In our opinion, the other supplementary information is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information included in the ACFR. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 19, 2024, on our consideration of the City’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 19, 2024
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Management’s Discussion and Analysis
As management of the City of Allen, Texas (the “City”), we offer readers of the City’s financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2023.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources (net position) at September 30, 2023, by $679,174,450. Of this amount,
141,941,460 (23%) represented the unrestricted net position, which may be used to meet the
City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $13,107,608. Out of this, $2,304,502 is from governmental
activities and $10,803,106 is from business-type activities.
On a government-wide basis, the City’s total assets increased by $18,156,728 or 2% and total
liabilities increased by $40,657,673 or 19%.
As of September 30, 2023, the City’s governmental funds reported combined ending fund
balances of $125,075,963 a decrease of $5,655,724 or 4% in comparison to the previous year. As
of September 30, 2023, $31,416,575 or 25% of the fund balance, is available for spending at the
government’s discretion (unassigned fund balance).
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements.
Government-wide financial statements - The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances in a manner like that of a private-sector
business.
The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources,
and liabilities and deferred inflows of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as useful indicators of whether the financial position of
the City is improving or deteriorating. To assess the overall health of the City, other non-financial factors
should also be taken into consideration, such as changes in the City’s property tax base and the condition
of the City’s infrastructure.
The Statement of Activities presents information that shows how the City’s net position changed during
the fiscal year. All changes in net position are reported when the underlying event that gives rise to the
change occurs, regardless of the timing of related cash flows. Accordingly, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods
e.g. uncollected taxes and earned but unused compensated absences). Both the Statement of Net
Position and the Statement of Activities are prepared utilizing the accrual basis of accounting.
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In the government-wide financial statements, on pages 22 through 24, the City is divided into three kinds
of activities:
Governmental activities - Most of the City’s basic services are reported here, including the police,
fire, library, community development, parks and recreation, municipal court, and general
administration. Property and sales taxes, charges for services, franchise fees, and state and federal
grants finance most of these activities.
Business-type activities - The City’s water, sewer, solid waste, drainage, and golf course operations
are reported here. These are functions intended to recover all or a significant portion of their costs
through user fees and charges.
Component units - The City includes two separate legal entities in this report: the Allen Economic
Development Corporation (AEDC) and the Allen Community Development Corporation (ACDC).
Although legally separate, these component units are important because the City is financially
accountable for them.
Fund financial statements - A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The funds of the City can be divided into three categories: governmental, proprietary,
and fiduciary funds.
Governmental Funds - These funds are used to account for most of the City’s activities, which are
essentially the same functions as governmental activities in the government-wide statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus on
near-term inflows and outflows of spendable resources, as well as resources available for future spending
at fiscal year-end. These funds are reported using the modified accrual basis of accounting, which
measures cash and all other financial assets that can be readily converted to cash. When compared
with similar information in the broader government-wide financial statements, readers may better
understand the long-term impact of the government’s near-term financing decisions. Reconciliation is
provided, which details the relationships or differences between governmental activities and
governmental funds; reconciliation follows the fund financial statements.
The City maintains several individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures,
and changes in fund balances for the General Fund, Debt Service Fund, General Capital Projects Fund,
Grants Fund and General Obligation Bond Fund, all of which are major funds. Data for the other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of the non-major governmental funds is provided in the form of combining statements elsewhere in this
report. The basic governmental fund financial statements can be found on pages 25 through 31 of this
report.
Proprietary Funds - The City maintains two different types of proprietary funds: enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The City uses enterprise funds to account for its water and
sewer operations, solid waste collection and disposal services, drainage operations, golf course and
event center operations. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the City’s various functions. The City uses its internal service funds to
account for vehicle, machinery, and equipment replacements and costs associated with workers
compensation, liability and property insurance, and employee medical and dental insurance programs.
These services have been included within governmental activities in the government-wide financial
statements as they predominantly benefit governmental rather than business-type functions.
9
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the water
and sewer operations, solid waste collection, and disposal services since they are major funds of the City.
The Drainage Fund and the Golf Course Fund are the only remaining enterprise funds, and they are being
presented as major funds even though they do not meet the criteria of a major fund. All internal service
funds are combined into a single aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided in the form of combining schedules
elsewhere in this report.
The basic proprietary fund financial statements are located on pages 32 through 36 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of the primary government. Fiduciary funds are not reported in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements are located on pages 37 and 38 of this report.
Notes to the Financial Statements - Additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements is provided in the notes to the
financial statements located on pages 42 through 80 of this report.
Required Supplementary Information includes budgetary comparison schedules that have been
provided for the general fund and grants fund to demonstrate compliance with the budget. Required
supplementary information also includes schedules of changes in net liabilities and related ratios and on
contributions to the City's pension and other postemployment benefits (OPEB). The City participates in
Texas Municipal Retirement System (TMRS) for its pension plan and provides its employees with
post-retirement healthcare benefits (OPEB). The required supplementary information is found on pages
83 through 90 of this report.
The combining and budgetary schedules referred to earlier include information for nonmajor
governmental funds, internal service funds, and the discretely presented component units, and are
presented immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, over time net position may serve as a useful indicator of the financial position of a
government. The assets and deferred outflows of the City of Allen exceed the liabilities and deferred
inflows by $679,174,450 at September 30, 2023.
By far the largest portion of the City’s net position, $512,337,702 or 75%, reflects its net investment in capital
assets (i.e. land, buildings, infrastructure, vehicles, machinery, and equipment). The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending.
An additional portion of the City’s net position, $24,895,288 or 4%, represents resources that are subject to
external restrictions on how those resources can be used. The remaining balance of $141,941,460 (21%) is
available to be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City reported a positive balance in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
10
The net position for governmental activities and business-type activities are summarized as follows:
2023 2022 2023 2022 2023 2022
182,460,034$ 187,962,485$ 81,731,599$ 87,665,268$ 264,191,633$ 275,627,753$
492,207,665 481,832,657 150,597,204 131,379,364 642,804,869 613,212,021
674,667,699 669,795,142 232,328,803 219,044,632 906,996,502 888,839,774
28,117,426 10,041,701 4,127,809 1,252,185 32,245,235 11,293,886
191,786,745 153,972,967 36,931,924 33,303,148 228,718,669 187,276,115
21,269,923 25,320,841 8,356,386 5,090,349 29,626,309 30,411,190
213,056,668 179,293,808 45,288,310 38,393,497 258,344,978 217,687,305
1,558,993 14,678,073 163,316 1,701,440 1,722,309 16,379,513
Net investment in capital assets 389,804,091 392,949,598 122,533,611 108,374,156 512,337,702 501,323,754
Restricted 22,260,823 16,101,110 2,634,465 1,230,726 24,895,288 17,331,836
Unrestricted 76,104,550 76,814,254 65,836,910 70,596,998 141,941,460 147,411,252
Total net position 488,169,464$ 485,864,962$ 191,004,986$ 180,201,880$ 679,174,450$ 666,066,842$
Deferred inflows of resources
Net position:
Capital assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
Current and other assets
Table 1
Statement of Net Position
Governmental Activities Business-type Activities Total
As of September 30, 2023, the City had an overall increase in net position of $13,107,608 for the primary
government, which represents an increase of $2,304,502 for governmental activities and an increase of
10,803,106 for business-type activities. Details are in Table 2 as listed below.
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:
Charges for services 10,110,093$ 13,259,722$ 86,317,673$ 71,283,519$ 96,427,766$ 84,543,241$
Operating grants and contributions 3,639,508 5,477,428 - - 3,639,508 5,477,428
Capital grants and contributions 1,675,949 11,162,094 4,267,362 4,072,343 5,943,311 15,234,437
General revenues:
Property taxes 76,465,116 74,289,475 - - 76,465,116 74,289,475
Sales tax 29,480,960 27,609,918 - - 29,480,960 27,609,918
Franchise taxes 7,573,389 7,481,353 - - 7,573,389 7,481,353
Hotel motel taxes 2,382,951 2,074,533 - - 2,382,951 2,074,533
Other taxes 1,406,052 1,425,226 - - 1,406,052 1,425,226
Investment earnings (loss)8,614,384 (4,921,824) 2,238,213 (1,830,191) 10,852,597 (6,752,015)
Gain on sale of capital assets - 291,333 - - - 291,333
Miscellaneous 11,688,618 8,689,016 1,075,923 1,147,237 12,764,541 9,836,253
Total revenues 153,037,020 146,838,274 93,899,171 74,672,908 246,936,191 221,511,182
Expenses:
General government 29,565,683 26,469,412 - - 29,565,683 26,469,412
Public safety 57,988,034 48,813,300 - - 57,988,034 48,813,300
Public works 27,241,203 24,226,768 - - 27,241,203 24,226,768
Culture and recreation 29,952,582 36,053,830 - - 29,952,582 36,053,830
Community development 6,731,357 5,587,202 - - 6,731,357 5,587,202
Interest on long-term debt 4,966,234 2,312,561 - - 4,966,234 2,980,513
Water and sewer - - 54,520,345 46,917,817 54,520,345 46,917,817
Solid waste services - - 7,563,726 7,088,901 7,563,726 7,088,901
Drainage - - 1,588,923 1,349,306 1,588,923 1,349,306
Golf course - - 4,267,842 3,800,645 4,267,842 3,800,645
Allen event center - - 9,442,654 - 9,442,654 -
Total expenses 156,445,093 143,463,073 77,383,490 59,156,669 233,828,583 202,619,742
3,408,073) 3,375,201 16,515,681 15,516,239 13,107,608 18,891,440
Transfers 5,712,575 6,365,977 (5,712,575) (6,365,977) - -
Change in net position 2,304,502 9,741,178 10,803,106 9,150,262 13,107,608 18,891,440
485,864,962 476,123,784 180,201,880 171,051,618 666,066,842 647,175,402
Net position, end of year 488,169,464$ 485,864,962$ 191,004,986$ 180,201,880$ 679,174,450$ 666,066,842$
Table 2
Changes in Net Position
Net position, beginning of year
Governmental Activities Business-type Activities Total
Change in net position before transfers
11
Governmental activities
Revenues – The following chart visually illustrates the City’s revenue by sources for governmental activities:
Charges for services
6%
Operating grants
2%
Capital grants
1%
Property taxes
48%
Sales taxes
19%
Franchise taxes
5%
Other
15%
Transfers
4%
Revenues by Source -Governmental Activities
Revenues for the City’s governmental activities totaled $153,037,020, an increase of $6,198,746 (4%). Major
components of revenue increases and decreases are explained as follows:
Property taxes increased by $2,175,641 (3%), due to an increase in assessed value and new
property additions.
Sales taxes increased by $1,871,042 (7%), as a result of better than expected economic conditions
The City of Allen is largely dependent upon retail sales. Consumers purchased more goods than
expected.
Franchise taxes increased by $92,036 (1%), due to new growth in the City.
Hotel motel taxes increased $308,418 (15%), as a result of increased tourism.
Charges for services decreased by $3,149,629 (24%) primarily due the Allen Event Center being
accounted for as business-type activities in the current fiscal year as opposed to governmental in
the prior fiscal year.
Operating grants and contributions decreased by $1,837,920 (34%), due to a decrease in
recognition of grant revenue as compared to the prior year.
Capital grants and contributions decreased by $9,486,145 (85%) with lower construction activities.
Investment earnings increased by $13,536,208 (275%) over prior year, as a result of higher interest
rates and an increase in fair market values of investments during fiscal 2023.
Expenses for governmental activities totaled $156,445,093, an increase of $11,871,702 (8%) from fiscal year
2022. Components of increases and decreases are explained as follows:
Expenses for General Government increased by $3,096,271 (12%), due primarily to an economic
grant for “The Farm”, a mixed-use development that was part of a large economic
development project for the City.
Expenses for Public Safety increased by $9,174,734 (19%), due primarily to the scheduled salaries
market adjustment for both Fire and Police departments and the expense of contributing to the
internal service fund for equipment replacement.
Expenses for Public Works increased by $3,014,435 (12%), because the City is completing its bond
program.
12
Expenses for Culture and Recreation decreased by $6,101,248 (17%), due to the Event Center
fund being moved out of the General Fund governmental activities to a new Enterprise Fund.
Expenses for Community Development increased $1,144,155 (20%) due mostly to salary
increases.
The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Expenses and Program Revenues -Governmental Activities
Expenses
Revenues
Business-type activities –
Revenues from business-type activities totaled $93,899,171, an increase of $19,226,263, or 26%. Major
components of the net decrease are as follows:
Charges for services for business-type activities increased by $15,034,154 (21%), due to an increase
in water and sewer rates and a very dry summer and the Allen Event Center moving from
governmental activities to business-type activities in fiscal year 2023.
Investment earnings increased by $4,068,404 (222%) over fiscal 2022 due to higher interest rates
offset by a larger increase in the fair market value of investments during fiscal year 2023.
Expenses for business-type activities increased by $18,226,821, or 31%. The increase was due to an
increase in cost of services and supplies. The following chart illustrates the relationship between expenses
and program revenues for business-type activities:
13
Revenues – The following chart visually illustrates the City’s revenue by sources for business-type activities:
Charges for services
92%
Capital grants and
contributions
5%
Other
3%
Revenues by Source -Business -type Activities
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Water and sewer Solid waste
services
Drainage Golf course Allen event center
Expenses and Program Revenues -Business-type Activities
Expenses
Revenues
14
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental funds
The focus of the City of Allen’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City’s measure of a
government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the governmental funds reported a combined ending fund balance
of $125,075,963, a decrease of $5,655,724 or (4%) in comparison with the prior fiscal year. Approximately
25%, or $31,416,575, constitutes unassigned fund balances, which are available for spending at the
government’s discretion. The remaining fund balances are classified as non-spendable, restricted, or
assigned to indicate that they are not available for new spending allocation. The non-spendable portion
includes $114,595 related to prepaid items and $26,709 associated with inventories. The restricted portion
includes: debt service ($3,938,037), capital expenditures ($40,471,307), tourism ($2,627,044), asset
forfeiture ($88,309), state and federal grants ($238,514), park acquisition and development ($1,849,269),
tax increment financing agreements ($11,878,998), court technology and security ($136,756), juvenile
case manager ($1,168), PEG fees ($717,668), radio system ($460,641), public safety and library
enhancements ($314,813), and cemetery trust ($67,335). In addition, $29,805,326 was assigned to capital
expenditures and $922,899 to other purposes.
General Fund. The General Fund is the chief operating fund of the City. As of the end of the current fiscal
year, the total unassigned fund balance was $31,416,575, while the total fund balance was $32,548,113.
As a measure of the general fund’s liquidity, it may be useful to compare unassigned fund balance and
total fund balance to total fund expenditures. Unassigned fund balance represents 28% of total General
Fund expenditures.
The original budget included a planned balanced budget with no change in fund balance. However,
the General Fund balance increased by $3,768,189 or 13% during the current fiscal year. This was the result
of achieving actual expenditures below budget and reductions in culture and recreation expenditures
and planned capital outlay that carried over to the next fiscal year.
Debt Service Fund. The Debt Service Fund balance of $3,938,037, all of which is restricted for the payment
of debt, represents an increase from the prior year of $3,017,830 (77%). The increase was primarily related
to a $3,000,000 transfer in from the General Fund.
Capital Projects Fund. The General Capital Projects Fund provides information on cash financed capital
projects and had an ending fund balance of $29,805,326 at September 30, 2023, a decrease of
5,404,230. Revenues and other financing sources totaled $6,172,561, which includes $2,550,000 from
other funds to cash finance capital projects, and $805,533 in charges for median and streets
improvements. Total expenditures and other uses of $11,576,791 consisted primarily of $2,488,187 for the
Stephen G. Terrell Recreation Center and $631,481 for traffic signal improvements on Bethany.
Grants Fund. The Grants Fund accounts for monies received from other governmental agencies that have
restricted legal requirements and multi-year budgets and had an ending fund balance of $238,514, which
is unchanged from the prior year. In fiscal year 2023, Advanced funding of $5,079,935 from the American
Rescue Plan Act (ARPA) was received in fiscal year 2022 and an additional $5,079,935 was received in
fiscal year 2023. There was $6,231,619 in ARPA expenditures during fiscal year 2023 and the remaining
balance of $2,529,193 is recorded as unearned revenue.
General Obligation Bond Fund. The General Obligation Bond Fund had an ending fund balance of
40,471,307, which represents a decrease of $9,298,614 (23%) from the prior year. Expenditures totaled
25,378,515, which consisted mainly of $15,507,022 in construction costs for bond projects including the
Stephen G. Terrell Recreation Center, the Library expansion Phase II, the Highway Safety Improvement
Project, and improvements to Ridgeway Dr. The City also had an Economic Grant Expense to the Farm
Development Corporation in the amount of $2,179,886. Other financing sources consisted mainly of
issuance of bonds totaling $14,525,000 and the related premium of $771,340.
15
Proprietary funds
The City’s proprietary funds provide information like the presentation in the government-wide financial
statements, but in more detail. As of September 30, 2023, the unrestricted net position for all enterprise
funds were as follows: Water and Sewer, $57,883,277; Solid Waste, $2,823,623; Drainage, $1,455,197; Golf
Course, $2,770,609; and Allen Event Center ($672,780). The total change in net position for these funds
was an increase of $10,650,764; an increase of $26,672; an increase of $376,350; an increase of $422,100;
and a decrease of $672,780, respectively.
The Water and Sewer Fund had an increase in net position as a result of an increase in water and sewer
rates. The Solid Waste Fund had an increase in net position due to an increase in garbage collection fees.
The Drainage Fund had an increase in net position due to due to an increase in inspection fees and a
decrease in operating expenses. The Golf Course Fund had an increase in net position due to the increase
in driving range and green fee revenues. The Allen Event Center fund had a decrease in net position due
to a large increase in personnel costs, particularly in the expense related to the change in net pension
liability.
General Fund Budgetary Highlights
During April and May each year, all accounts are evaluated to determine whether they are in line with
the original budgets. Accounts that are under or over budget are revised to meet year-end final
estimates. New projects are not added to the year-end estimate; only the cost of maintaining the current
base operation is revised as needed. As is customary, during fiscal year ended September 30, 2023, the
City Council amended the budget for the General Fund one time.
Adjustments made during fiscal year 2023 increased the original revenue budget by $2,283,762 and
increased the expenditure budget by $1,519,369. Due to actual expenditures being $4,902,869 less than
the revised budget and revenues over the revised budget by $2,049,598, the City was able to increase
the unassigned General Fund balance by $3,768,189, after net transfers. The unassigned fund balance of
31,416,575 is equal to 25%, or 90 days of next year’s operating budget.
CAPITAL ASSETS
The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2023, was $642,804,869 (net of accumulated depreciation). Investment in capital assets
includes land and improvements, buildings, vehicles, machinery and equipment, park land and facilities,
roads and bridges. About 77% of the capital assets are governmental and 23% represent business-type
activities. There was an increase of 3% in the investment in capital assets for the current fiscal year.
2023 2022 2023 2022 2023 2022
Land 168,211,753$ 164,253,182$ 4,091,626$ 4,091,626$ 172,303,379$ 168,344,808$
Buildings 64,628,539 67,379,851 - - 64,628,539 67,379,851
107,883,393 107,329,605 107,883,393 107,329,605
Intangibles - - 7,727,847 7,994,325 7,727,847 7,994,325
Other Improvements 175,953,014 191,827,851 882,943 936,316 176,835,957 192,764,167
Furniture and fixtures 136,519 150,386 - - 136,519 150,386
Vehicles 7,156,718 5,374,307 347,641 463,267 7,504,359 5,837,574
Machinery and equipment 6,644,308 6,807,609 1,110,085 1,381,460 7,754,393 8,189,069
Construction in progress 69,476,814 46,039,471 28,553,669 17,177,090 98,030,483 63,216,561
Total 492,207,665$ 481,832,657$ $150,597,204 139,373,689$ 642,804,869$ 621,206,346$
Towers, tanks, and pump stations
Table 3
Capital Assets at Year-end, Net of Accumulated Depreciation/Amortization
Governmental Activities Business-type Activities Total
16
The major governmental-type capital improvement projects and developer contributions during the
current fiscal year included the following:
Developer Contributed Street, Alley, and Right of Way 1,675,949$
S. G. Terrell Community P&R Center 12,001,773
Fire Station #6 6,535,585
Police Department Headquarters 1,580,214
Street construction:
Traffic Signal Improvements 1,433,697$
Highway Safety Improvement Project 984,753
Business-type capital improvement projects and developer contributions during the current fiscal year
include the following:
Developer Contributed Water Mains and Sewer Lines 1,758,952$
Stacy Road Pump Station Rehabilitation 2,804,599
24" Waterline Sloan Creek 2,973,344
Advanced Meter Infrastructure 8,949,256
Additional information on the City’s capital assets can be found in Note 4 of this report.
DEBT ADMINISTRATION
As shown in Table 4, the City’s total outstanding long term liabilities of the primary government at
September 30, 2023, was $228,718,669. Of this total, $191,786,745 (84%) was associated with governmental
activities and $36,931,924 (16%) was business-type activities. Total gross bonded debt and a note payable
accounted for $165,508,424, which include $100,895,000 of General Obligation (G.O.) bonds and
20,740,000 of Certificates of Obligation backed by the full faith and credit of the primary government;
25,825,000 secured solely by water and sewer revenues; notes payable balance of $1,680,000 and
16,368,424 in net premiums and discounts from bond issuances. Other long-term debt relates to accrued
compensated absences, net pension liability, net OPEB liability, and capital leases liability. Outstanding
debts associated with the component units totaled $27,921,582. Out of which, $27,630,000 are secured
by future sales tax revenue; and $291,582 are premiums and discounts from bond issuances.
During fiscal year 2023, the City issued General Obligation Bonds in the amount of $14,525,000.
The revenue bond debt for both component units relates to debt issued to support public infrastructure
improvements, land acquisition, and construction of the Allen Event Center. Total debt of the Component
Units decreased by 10%. Total debt for the Allen Economic Development Corporation decreased by 13%,
and for the Allen Community Development Corporation, total debt decreased by 9%.
2023 2022 2023 2022 2023 2022 2023 2022
General obligation bonds 100,895,000$ 95,885,000$ -$ -$ 100,895,000$ 95,885,000$ -$ -$
Certificates of obligation 20,740,000 21,870,000 - - 20,740,000 21,870,000 - -
Revenue bonds payable - - 25,825,000 27,400,000 25,825,000 27,400,000 - -
Premiums and discounts 13,394,731 13,419,341 2,973,693 3,069,408 16,368,424 16,488,749 291,582 364,477
Sales tax revenue bonds - - - - - - 27,630,000 30,785,000
Tax notes 1,680,000 2,200,000 - - 1,680,000 2,200,000 - -
Total gross bonded debt 136,709,731 133,374,341 28,798,693 30,469,408 165,508,424 163,843,749 27,921,582 31,149,477
Compensated absences 8,709,800 8,021,323 1,169,170 801,496 9,878,970 8,822,819 - -
Net pension liability 44,094,117 9,390,772 6,582,950 1,302,113 50,677,067 10,692,885 - -
Net OPEB liability 1,448,322 2,165,664 216,225 259,532 1,664,547 2,425,196 - -
Right-to-use leases 824,775 1,020,867 117,372 279,154 942,147 1,300,021 - -
Financed purchases - - 47,514 191,445 47,514 191,445 - -
Total other long-term debt 55,077,014 20,598,626 8,133,231 2,833,740 63,210,245 23,432,366 - -
Total 191,786,745$ 153,972,967$ 36,931,924$ 33,303,148$ 228,718,669$ 187,276,115$ 27,921,582$ 31,149,477$
Bonds and Other Long-Term Liabilities
Outstanding Debt at Year-end
Table 4
Gross bonded debt
Other long-term debt
Governmental Activities Business-type Activities Total Primary Government Component Units
17
The underlying credit ratings from both Moody’s Investors Service and Standard and Poor’s for the City’s
General Obligation Bonds, Certificates of Obligation, Waterworks and Sewer System Revenue Bonds,
Community Development Corporation’s Sales Tax Bonds, and Economic Development Sales Tax Revenue
Bonds are shown below in Table 5. Additional information on the City’s long-term debt can be found in
Note 5 to the basic financial statements.
Moody's
Investors Standard &
Service Poor's
General Obligation Bonds Aaa AAA
Certificates of Obligation Aaa AAA
Water & Sewer Revenue
Bonds Aa2 AAA
CDC Sales Tax Revenue Bonds Aa2
EDC Sales Tax Revenue Bonds Aa2
Table 5
Bond Ratings
The City of Allen, Texas continues to be financially strong. Although the economy is the primary factor,
the City’s elected and appointed officials considered many factors when setting the fiscal year 2024
budget, tax rates and fees that will be charged for the business-type activities. The priority for fiscal year
2024 continues to be maintaining quality service while observing prudent spending practices.
Highlights of the 2024 budget include:
Balanced budget, with total revenues equal to or greater than total expenditures
Property tax rate reduced to $0.4205 per $100 assessed value
Total City budget $300 million
General Fund budget $129 million
Sustained funding for equipment and facilities improvements
Additional 20 full-time equivalent (FTE) positions
Request for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional information,
please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626.
18
19
Basic Financial Statements
20
City of Allen, Texas Exhibit 1
Statement of Net Position
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
21
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Cash and cash equivalents 84,768,339$ 32,465,701$ 117,234,040$ 21,575,830$
Investments 85,393,396 25,087,792 110,481,188 22,247,443
Receivables (net of allowance
for uncollectibles)12,846,494 17,911,504 30,757,998 5,132,825
Internal balances (1,576,984) 1,576,984 - -
Prepaid items and other assets 236,519 - 236,519 5,000
Net OPEB asset 765,561 - 765,561 -
Inventories 26,709 89,368 116,077 -
Restricted cash and cash equivalents - 4,600,250 4,600,250 -
Capital assets:
Non-depreciable 237,688,567 32,645,295 270,333,862 44,753,055
Depreciable (net of depreciation/amortization)254,519,098 117,951,909 372,471,007 41,018,725
TOTAL ASSETS 674,667,699 232,328,803 906,996,502 134,732,878
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 252,323 - 252,323 129,925
Deferred outflows of resources - OPEB 605,968 58,211 664,179 -
Deferred outflows of resources - pension 27,259,135 4,069,598 31,328,733 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 28,117,426 4,127,809 32,245,235 129,925
LIABILITIES
Accounts payable 9,185,555 4,161,100 13,346,655 1,302,484
Accrued liabilities 3,463,627 330,640 3,794,267 24,121
Accrued interest payable 646,407 320,785 967,192 66,600
Customer deposits - 2,373,716 2,373,716 -
Unearned revenue 5,210,762 296,451 5,507,213 -
Retainage payable 2,763,572 873,694 3,637,266 258,134
Non-current liabilities:
Due within one year 15,872,435 2,002,804 17,875,239 3,405,000
Due in more than one year 175,914,310 34,929,120 210,843,430 24,516,582
TOTAL LIABILITIES 213,056,668 45,288,310 258,344,978 29,572,921
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding 135,786 - 135,786 -
Deferred inflows of resources - OPEB 1,177,506 126,634 1,304,140 -
Deferred inflows of resources - pension 245,701 36,682 282,383 -
TOTAL DEFERRED INFLOWS OF RESOURCES 1,558,993 163,316 1,722,309 -
NET POSITION
Net investment in capital assets 389,804,091 122,533,611 512,337,702 57,173,933
Restricted for:
Debt service 3,332,287 2,634,465 5,966,752 4,685,423
Net OPEB Asset 765,561 - 765,561 -
Tourism 2,627,044 - 2,627,044 -
Park acquisition and development 1,849,269 - 1,849,269 -
State and federal grants 88,309 - 88,309 -
Tax increment financing 11,878,998 - 11,878,998 -
Other purposes 1,719,355 - 1,719,355 -
Unrestricted 76,104,550 65,836,910 141,941,460 43,430,526
TOTAL NET POSITION 488,169,464$ 191,004,986$ 679,174,450$ 105,289,882$
Primary Government
City of Allen, Texas
Statement of Activities
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
22
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental activities:
General government 29,565,683$ 43,068$ -$ -$
Public safety 57,988,034 3,198,388 266,626 -
Public works 27,241,203 247,203 - 1,675,949
Culture and recreation 29,952,582 2,949,789 2,805,735 -
Community development 6,731,357 3,671,645 567,147 -
Interest on long-term debt 4,966,234 - - -
Total governmental activities 156,445,093 10,110,093 3,639,508 1,675,949
Business-type activities:
Water and sewer 54,520,345 64,410,519 - 4,267,362
Solid waste 7,563,726 8,057,287 - -
Drainage 1,588,923 2,333,571 - -
Golf course 4,267,842 4,666,829 - -
Allen event center 9,442,654 6,849,467 -
Total business-type activities 77,383,490 86,317,673 - 4,267,362
TOTAL PRIMARY GOVERNMENT 233,828,583$ 96,427,766$ 3,639,508$ 5,943,311$
COMPONENT UNITS:
Allen Economic Development Corporation 6,653,336$ -$ -$ -$
Allen Community Development Corporation 9,887,112 - - -
TOTAL COMPONENT UNITS 16,540,448$ -$ -$ -$
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION, beginning of year
NET POSITION, end of year
Program Revenues
Exhibit 2
23
Governmental Business - Type COMPONENT
Activities Activities TOTAL UNITS
29,522,615)$ -$ (29,522,615)$ -$
54,523,020) - (54,523,020) -
25,318,051) - (25,318,051) -
24,197,058) - (24,197,058) -
2,492,565) - (2,492,565) -
4,966,234) - (4,966,234) -
141,019,543) - (141,019,543) -
14,157,536 14,157,536 -
493,561 493,561 -
744,648 744,648 -
398,987 398,987 -
2,593,187) (2,593,187) -
13,201,545 13,201,545 -
141,019,543)$ 13,201,545$ (127,817,998)$ -$
6,653,336)$
9,887,112)
16,540,448)$
76,465,116$ -$ 76,465,116$ -$
29,480,960 - 29,480,960 28,948,370
7,573,389 - 7,573,389 -
2,382,951 - 2,382,951 -
1,406,052 - 1,406,052 -
8,614,384 2,238,213 10,852,597 687,065
11,688,618 1,075,923 12,764,541 654,332
5,712,575 (5,712,575) - -
143,324,045 (2,398,439) 140,925,606 30,289,767
2,304,502 10,803,106 13,107,608 13,749,319
485,864,962 180,201,880 666,066,842 91,540,563
488,169,464$ 191,004,986$ 679,174,450$ 105,289,882$
Changes in Net Position
Net (Expense) Revenue and
Primary Government
City of Allen, Texas
Balance Sheet
Governmental Funds
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
24
General
Debt Capital
General Service Projects
ASSETS
Cash and cash equivalents $ 123,853 3,947,125$ 7,070,297$
Investments 31,204,181 - 23,633,564
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes 148,559 40,657 -
Sales taxes 5,105,741 - -
Accounts receivable - - -
Accrued interest 144,491 - 109,353
Other 3,385,177 - 3,321,045
Inventories 26,709 - -
Prepaid items 114,595 - -
TOTAL ASSETS 40,253,306$ 3,987,782$ 34,134,259$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 4,272,506 9,088$ 1,303,964$
Accrued liabilities 2,078,348 - 218,094
Unearned revenue 8,329 - 2,508,610
Retainage payable - - 298,265
TOTAL LIABILITIES 6,359,183 9,088 4,328,933
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 148,559 40,657 -
Unavailable revenue - charges for services 309,010 - -
Unavailable revenue - ambulance 789,300 - -
Unavailable revenue - PD alarms 25,285 - -
Unavailable revenue - court fines and fees 73,856 - -
TOTAL DEFERRED
INFLOWS OF RESOURCES 1,346,010 40,657 -
FUND BALANCES
Nonspendable
Prepaid items 114,595 - -
Inventories 26,709 - -
Restricted
Debt service - 3,938,037 -
Capital expenditures - - -
Tourism - - -
Asset forfeiture - - -
State and federal grants - - -
Park acquisition and development - - -
Tax increment financing agreement - - -
Court technology and security - - -
Juvenile case manager - - -
PEG fees - - -
Radio system - - -
Public safety and library enhancements - - -
Cemetery trust 67,335 - -
Assigned
Capital expenditures - - 29,805,326
Other purposes 922,899 - -
Unassigned 31,416,575 - -
TOTAL FUND BALANCES 32,548,113 3,938,037 29,805,326
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 40,253,306$ 3,987,782$ 34,134,259$
Exhibit 3
25
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
3,356,226$ 35,029,003$ 11,707,412$ 61,233,916$
9,390,562 6,399,232 70,627,539
189,216
5,105,741
94,326 - 226,525 320,851
43,389 29,633 326,866
8,086 - 6,714,308
26,709
114,595
3,450,552$ 44,471,040$ 18,362,802$ 144,659,741$
309,717$ 1,775,244$ 115,727$ 7,786,246$
151,677 2,448,119
2,693,823 - - 5,210,762
208,498 2,224,489 20,732 2,751,984
3,212,038 3,999,733 288,136 18,197,111
189,216
309,010
789,300
25,285
73,856
1,386,667
114,595
26,709
3,938,037
40,471,307 - 40,471,307
2,627,044 2,627,044
88,309 88,309
238,514 - - 238,514
1,849,269 1,849,269
11,878,998 11,878,998
136,756 136,756
1,168 1,168
717,668 717,668
460,641 460,641
314,813 314,813
67,335
29,805,326
922,899
31,416,575
238,514 40,471,307 18,074,666 125,075,963
3,450,552$ 44,471,040$ 18,362,802$ 144,659,741$
City of Allen, Texas Exhibit 4
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
26
Total fund balance of governmental funds balance sheet 125,075,963$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet.492,207,665
Funds comprising the net OPEB asset are not current financial resources and
therefore are not reported in the governmental funds balance sheet.765,561
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred loss on refunding 252,323$
Deferred gain on refunding (135,786)
Deferred outflows of resources - OPEB 605,968
Deferred outflows of resources - pension 27,259,135
Deferred inflows of resources - OPEB (1,177,506)
Deferred inflows of resources - pension (245,701) 26,558,433
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability on the governmental
funds balance sheet.(646,407)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The
assets and liabilities of the internal service funds ($44,463,784) are net of the
amount allocated to business-type activities ($1,576,984) and to capital
assets ($8,278,473).34,608,327
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.1,386,667
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
General obligation bonds (100,895,000)$
Certificates of obligation (20,740,000)
Tax notes (1,680,000)
Right-to-use leases (824,775)
Premiums/discounts (13,394,731)
Compensated absences (8,709,800)
Net OPEB liability (1,448,322)
Net pension liability (44,094,117) (191,786,745)
Net position of governmental activities 488,169,464$
27
City of Allen, Texas
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
28
General
Debt Capital
General Service Projects
REVENUES
Ad valorem taxes, penalties and interest 58,160,407$ 15,907,229$ -$
Municipal sales tax 29,267,736 - -
Franchise taxes 7,454,546 - -
Licenses, permits and fees 3,520,343 - -
Charges for services 5,273,847 - 838,942
Fines 1,298,422 - -
Gifts and contributions 2,565,742 - -
Hotel / motel fees - - -
Intergovernmental 587,251 - 1,647,850
Investment earnings 4,124,625 434,592 919,227
Miscellaneous 2,929,119 - 216,542
Total revenues 115,182,038 16,341,821 3,622,561
EXPENDITURES
Current
General government 23,891,282 - 1,938,780
Public safety 56,106,863 - -
Public works 6,152,353 - 3,412,150
Culture and recreation 21,411,786 - 2,663
Community development 4,034,780 - 102,622
Capital outlay 519,281 - 6,120,576
Debt service:
Principal retirement 476,269 11,165,000 -
Interest and fiscal charges 40,814 5,158,991 -
Total expenditures 112,633,428 16,323,991 11,576,791
Excess (deficiency) of revenues
over (under) expenditures 2,548,610 17,830 (7,954,230)
OTHER FINANCING SOURCES (USES)
Issuance of bonds - - -
Premium on bonds issued - - -
Right-to-use leases 280,177 - -
Transfers in 7,189,554 3,000,000 2,550,000
Transfers out (6,255,315) - -
Proceeds from sale of capital assets 5,163 - -
Total other financing sources (uses)1,219,579 3,000,000 2,550,000
NET CHANGE IN FUND BALANCES 3,768,189 3,017,830 (5,404,230)
FUND BALANCES, BEGINNING OF YEAR 28,779,924 920,207 35,209,556
FUND BALANCES, END OF YEAR 32,548,113$ 3,938,037$ 29,805,326$
Exhibit 5
29
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
2,392,430$ 76,460,066$
213,224 29,480,960
118,843 7,573,389
244,658 3,765,001
6,112,789
107,630 1,406,052
2,565,742
2,382,951 2,382,951
6,874,425 - 209,892 9,319,418
1,113,036 590,759 7,182,239
88,283 3,233,944
6,874,425 1,113,036 6,348,670 149,482,551
2,379,140 863,964 29,073,166
15,294 24,152 91,635 56,237,944
2,614,305 4,224,399 - 16,403,207
28,033 - 1,990,715 23,433,197
4,137,402
4,223,783 18,750,824 702,159 30,316,623
11,641,269
5,199,805
6,881,415 25,378,515 3,648,473 176,442,613
6,990) (24,265,479) 2,700,197 (26,960,062)
14,525,000 - 14,525,000
771,340 - 771,340
280,177
6,990 - - 12,746,544
329,475) (449,179) (7,033,969)
10,083 15,246
6,990 14,966,865 (439,096) 21,304,338
9,298,614) 2,261,101 (5,655,724)
238,514 49,769,921 15,813,565 130,731,687
238,514$ 40,471,307$ 18,074,666$ 125,075,963$
City of Allen, Texas Exhibit 6
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
30
Net change in fund balances - total governmental funds (5,655,724)$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation/amortization expense. This is the amount of capital assets recorded in the current period.30,316,623
Governmental funds report loss on disposal of capital assets. However, in the statement
of activities the loss is reported.(269,285)
Governmental funds do not recognize contributed capital assets. However, in the
statement of activities the acquisition value of those assets is recognized as revenue,
then allocated over their estimated useful lives and reported as depreciation expense.1,675,949
Depreciation/amortization expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation/amortization
expense is not reported as expenditures in the governmental funds.(22,159,352)
The proceeds from issuance of long-term debt provides current financial resources to
governmental funds, while the payment of the principal of long-term debt consumes the
current financial resources of governmental funds. Also, governmental funds report the
effect of premiums, discounts, and similar items when debt is first issued. However,
these amounts are amortized in the government-wide financial statements:
Bonds issued (14,525,000)
Premium on bonds issued (771,340)
Issuance of right-to-use lease (280,177)
Bond and lease principal retirement 11,641,269
Amortization of bond premiums 795,950
Deferred loss/gain on refunding changes 113,837 (3,025,461)
Current year changes for compensated absences, net pension liability, net OPEB liability/asset,
deferred inflows/outflows related to pensions, and OPEB do not require the use of current
financial resources and, therefore, are not reported in governmental funds.(3,779,142)
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.119,736
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net operating and
non-operating income and transfers of the internal service funds is reported with
governmental activities net of amounts allocated to business-type activities.4,650,474
Certain revenues in the government-wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.430,684
Change in net position of governmental activities 2,304,502$
City of Allen, Texas Exhibit 7
Statement of Net Position
Proprietary Funds
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
31
Governmental
Activities
Water and Solid Golf Allen Event Internal Service
Sewer Waste Drainage Course Center Total Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 25,248,103$ 2,203,357$ 1,343,145$ 1,965,217$ 1,705,879$ 32,465,701$ 23,534,423$
Investments 23,335,122 - - 1,752,670 - 25,087,792 14,765,857
Receivables, net of allowance for uncollectibles:
Accounts 11,391,034 923,272 300,874 - 251,262 12,866,442 121,224
Accrued interest 107,923 - - 8,098 - 116,021 68,288
Other 4,458,928 462,425 854 6,834 - 4,929,041 -
Inventories - - - 27,347 62,021 89,368 121,924
Restricted cash and cash equivalents 4,600,250 - - - - 4,600,250 -
Total current assets 69,141,360 3,589,054 1,644,873 3,760,166 2,019,162 80,154,615 38,611,716
NONCURRENT ASSETS
CAPITAL ASSETS
Land 4,091,626 - - - - 4,091,626 -
Construction in progress 28,553,669 - - - - 28,553,669 266,977
Other improvements - - 1,230,546 - - 1,230,546 -
Towers, tanks, and pump stations 223,887,758 - - - - 223,887,758 -
Vehicles 817,002 140,440 151,554 - - 1,108,996 21,675,934
Intangible 7,994,325 - - - - 7,994,325 -
Machinery and equipment 3,028,209 - 589,020 836,758 - 4,453,987 6,438,578
Machinery and equipment - right - to -use - - - 430,202 - 430,202 -
Total capital assets 268,372,589 140,440 1,971,120 1,266,960 - 271,751,109 28,381,489
Less: accumulated depreciation/amortization (119,171,606) (105,330) (842,529) (1,034,440) - (121,153,905) (20,103,016)
Capital assets, net of accumulated depreciation/amortization 149,200,983 35,110 1,128,591 232,520 - 150,597,204 8,278,473
TOTAL ASSETS 218,342,343 3,624,164 2,773,464 3,992,686 2,019,162 230,751,819 46,890,189
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - OPEB 29,353 3,808 3,002 8,963 13,085 58,211 -
Deferred outflows of resources - pension 2,052,031 266,293 209,901 626,575 914,798 4,069,598 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,081,384 270,101 212,903 635,538 927,883 4,127,809 -
AND NET POSITION
CURRENT LIABILITIES
Accounts payable 3,236,240 375,804 21,350 210,176 317,530 4,161,100 1,410,897
Accrued liabilities 130,740 88,323 13,640 39,020 58,917 330,640 -
Retainage payable 873,299 - 395 - - 873,694 -
Accrued compensated absences - current 106,069 23,163 11,546 47,046 46,010 233,834 -
Unearned revenue - - - - 296,451 296,451
Incurred but not reported claims - - - - - - 1,015,508
Payable from restricted assets:
Revenue bonds payable - current 1,645,000 - - - - 1,645,000 -
Finance Purchases - current - - - 15,540 - 15,540
Right-to-use leases - current - - - 108,430 - 108,430 -
Accrued interest payable 320,785 - - - - 320,785 -
Customer deposits payable 1,153,234 - - 68,694 1,151,788 2,373,716 -
Total current liabilities 7,465,367 487,290 46,931 488,906 1,870,696 10,359,190 2,426,405
NONCURRENT LIABILITIES
Revenue bonds payable 27,153,693 - - - - 27,153,693 -
Financed purchases - - - 31,974 - 31,974
Right-to-use leases - - - 8,942 - 8,942 -
Net OPEB liability 109,028 14,149 11,152 33,291 48,605 216,225 -
Net pension liability 3,319,348 430,755 339,536 1,013,541 1,479,770 6,582,950 -
Accrued compensated absences 424,278 92,652 46,182 188,182 184,042 935,336 -
Total noncurrent liabilities 31,006,347 537,556 396,870 1,275,930 1,712,417 34,929,120 -
TOTAL LIABILITIES 38,471,714 1,024,846 443,801 1,764,836 3,583,113 45,288,310 2,426,405
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 18,496 2,400 1,892 5,648 8,246 36,682 -
Deferred inflows of resources - OPEB 63,853 8,286 6,532 19,497 28,466 126,634 -
TOTAL DEFERRED INFLOWS OF RESOURCES 82,349 10,686 8,424 25,145 36,712 163,316 -
NET POSITION
Net investment in capital assets 121,351,922 35,110 1,078,945 67,634 - 122,533,611 8,246,153
Restricted for revenue bond principal and interest 2,634,465 - - - - 2,634,465 -
Unrestricted 57,883,277 2,823,623 1,455,197 2,770,609 (672,780) 64,259,926 36,217,631
TOTAL NET POSITION 181,869,664$ 2,858,733$ 2,534,142$ 2,838,243$ (672,780)$ 189,428,002$ 44,463,784$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
Business-type Activities
Enterprise Funds
City of Allen, Texas Exhibit 8
Reconciliation of the Statement of Net Position
of Proprietary Funds to the
Government – Wide Statement of Net Position
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
32
Amounts reported for business-type activities in the statement of net
position are different because:
Total net position per statement of net position 189,428,002$
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The assets and liabilities of internal service funds are included in the governmental
activities in the government-wide statement of net position. The amount shown
represents the net receivable from internal service funds allocated to business-type
activities since the adoption of GASB 34. 1,576,984
Total net position of business-type activities 191,004,986$
City of Allen, Texas Exhibit 9
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
33
Governmental
Activities
Water and Solid Golf Allen Event Internal
Sewer Waste Drainage Course Center Total Service Funds
OPERATING REVENUES
Charges for sales and services:
Water sales 37,339,684$ -$ -$ -$ -$ 37,339,684$ -$
Sewer charges 26,391,658 - - - - 26,391,658 -
Connection fees 73,627 - - - - 73,627 -
Garbage collections - 8,057,287 - - - 8,057,287 -
Service charges 605,550 - 103,259 4,666,829 6,175,305 11,550,943 19,691,686
Drainage fees - - 2,230,312 - - 2,230,312 -
Gifts and contributions - - - - 674,162 674,162 -
Miscellaneous 357,366 58,314 25,213 63,514 571,516 1,075,923 2,319,309
Total operating revenues 64,767,885 8,115,601 2,358,784 4,730,343 7,420,983 87,393,596 22,010,995
OPERATING EXPENSES
Personnel services 6,414,567 851,571 684,647 2,042,213 3,742,192 13,735,190 560,205
Contractual services 36,941,308 6,597,224 215,061 1,115,396 5,034,576 49,903,565 13,068,966
Maintenance 824,798 6,323 309,166 162,301 474,199 1,776,787 1,252,213
Supplies 405,352 30,661 71,012 385,647 132,166 1,024,838 741,689
Depreciation and amortization 6,380,266 14,044 115,831 214,705 - 6,724,846 2,329,005
Other 2,617,187 63,903 193,206 340,359 59,521 3,274,176 -
Total operating expenses 53,583,478 7,563,726 1,588,923 4,260,621 9,442,654 76,439,402 17,952,078
OPERATING INCOME (LOSS)11,184,407 551,875 769,861 469,722 (2,021,671) 10,954,194 4,058,917
NON-OPERATING REVENUES (EXPENSES)
Investment earnings (loss)2,135,440 101,681 40,927 (40,401) 566 2,238,213 1,447,836
Interest expense (936,867) - - (7,221) - (944,088) -
Loss on disposal of capital assets - - - - - - (856,279)
Total non-operating revenues (expenses)1,198,573 101,681 40,927 (47,622) 566 1,294,125 591,557
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 12,382,980 653,556 810,788 422,100 (2,021,105) 12,248,319 4,650,474
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees 2,508,410 - - - - 2,508,410 -
Capital contributions 1,758,952 - - - - 1,758,952 -
Transfers in 60,739 - - - 1,348,325 1,409,064 -
Transfers out (6,060,317) (626,884) (434,438) - - (7,121,639) -
Total capital contributions and transfers (1,732,216) (626,884) (434,438) - 1,348,325 (1,445,213) -
CHANGE IN NET POSITION 10,650,764 26,672 376,350 422,100 (672,780) 10,803,106 4,650,474
NET POSITION, BEGINNING OF YEAR 171,218,900 2,832,061 2,157,792 2,416,143 - 178,624,896 39,813,310
NET POSITION, END OF YEAR 181,869,664$ 2,858,733$ 2,534,142$ 2,838,243$ (672,780)$ 189,428,002$ 44,463,784$
Business-type Activities
Enterprise Funds
City of Allen, Texas Exhibit 10
Reconciliation of the Statement of Revenues, Expenses,
and Changes in Net Position of Proprietary Funds
to the Statement of Activities
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
34
Amounts reported for business-type activities in the statement of activities
are different because:
Net change in fund net position- total proprietary funds 10,803,106$
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The net expenses of certain activities of internal service funds is allocated to
business-type activities. No allocation in fiscal year 2023.-
Change in net position of business-type activities 10,803,106$
City of Allen, Texas Exhibit 11
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
35
Governmental
Activities
Water and Solid Golf Allen Event Internal
Sewer Waste Drainage Course Center Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 62,336,255$ 8,174,745$ 2,297,558$ 4,751,976$ 8,869,222$ 86,429,756$ -$
Cash received from transactions with other funds - - - - - - 21,172,054
Cash paid to employees for services (6,206,069) (796,872) (659,918) (1,982,555) (2,816,785) (12,462,199) (556,277)
Cash paid for goods and services (39,363,146) (6,858,794) (811,200) (2,036,939) (5,695,449) (54,765,528) (3,894,111)
Cash paid for claims - - - - - - (9,840,863)
Net cash provided by operating activities 16,767,040 519,079 826,440 732,482 356,988 19,202,029 6,880,803
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 60,739 - - - 1,348,325 1,409,064 1,838,657
Transfers out to other funds (6,060,317) (626,884) (434,438) - - (7,121,639) (1,838,657)
Net cash provided by (used in)
non-capital financing activities (5,999,578) (626,884) (434,438) - 1,348,325 (5,712,575) -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities (1,575,000) - - - - (1,575,000) -
Interest and fees paid on long-term debt (1,023,167) - - - - (1,023,167) -
Acquisition and construction of capital assets (16,086,524) - (102,885) - - (16,189,409) (4,034,657)
Proceeds from sale of capital assets - - - - - - 38,300
Financed purchases payments - - - (143,931) - (143,931)
Right-to-use lease principal payments - - - (161,782) - (161,782) -
Contributions from developers 2,508,410 - - - - 2,508,410 -
Net cash used in capital and related
financing activities (16,176,281) - (102,885) (305,713) - (16,584,879) (3,996,357)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases) sales of investment securities 8,903,040 872,950 - (614,222) - 9,161,768 3,589,551
Interest on investments 1,039,251 106,530 40,929 31,566 566 1,218,842 791,943
Net cash provided by (used in) investing activities 9,942,291 979,480 40,929 (582,656) 566 10,380,610 4,381,494
NET CHANGE IN CASH AND CASH EQUIVALENTS 4,533,472 871,675 330,046 (155,887) 1,705,879 7,285,185 7,265,940
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 25,314,881 1,331,682 1,013,099 2,121,104 - 29,780,766 16,268,483
CASH AND CASH EQUIVALENTS, END OF YEAR 29,848,353$ 2,203,357$ 1,343,145$ 1,965,217$ 1,705,879$ 37,065,951$ 23,534,423$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income (loss)11,184,407$ 551,875$ 769,861$ 469,722$ (2,021,671)$ 10,954,194$ 4,058,917$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization expense 6,380,266 14,044 115,831 214,705 - 6,724,846 2,329,005
Change in assets and liabilities:
Accounts receivable (19,773) (154,639) (64,570) - (251,262) (490,244) (104,513)
Other receivables (2,418,560) 59,144 3,346 10,595 - (2,345,475) -
Prepaids - - - - - - (39,370)
Inventories - - - (27,347) (62,021) (89,368) -
Deferred outflows - pension (1,292,589) (176,894) (122,503) (402,047) (914,798) (2,908,831) -
Deferred outflows - OPEB 13,135 1,654 2,327 3,589 (13,085) 7,620 -
Accounts payable 889,535 (26,141) (23,150) (6,332) 317,530 1,151,442 636,764
Retainage payable 554,202 - 395 - - 554,597 -
Accrued liabilities 33,067 24,146 5,052 8,779 58,917 129,961 -
Unearned revenue - - - - 296,451 296,451
Net OPEB liability (58,520) (7,055) (8,628) (17,709) 48,605 (43,307) -
Net pension liability 2,427,154 348,791 260,617 764,505 1,479,770 5,280,837 -
Compensated absences 104,651 19,113 14,489 (631) 230,052 367,674 -
Deposits (13,070) - - 11,038 1,151,788 1,149,756 -
Deferred inflows - pension (1,058,547) (140,457) (130,354) (309,252) 8,246 (1,630,364) -
Deferred inflows - OPEB 41,682 5,498 3,727 12,867 28,466 92,240 -
Total adjustments 5,582,633 (32,796) 56,579 262,760 2,378,659 8,247,835 2,821,886
Net cash provided by operating activities 16,767,040$ 519,079$ 826,440$ 732,482$ 356,988$ 19,202,029$ 6,880,803$
NON-CASH INVESTING ACTIVITIES:
Change in the fair value of investments 1,145,598$ 51,181$ -$ (76,958)$ -$ 1,119,821$ 680,545$
NON-CASH FINANCING ACTIVITIES:
Contributions of capital assets from developers 1,758,952$ -$ -$ -$ -$ 1,758,952$ -$
Reconciliation of total cash to the statement of net position
Cash and cash equivalents - current 25,248,103$ 2,203,357$ 1,343,145$ 1,965,217$ 1,705,879$ 32,465,701$ 23,534,423$
Restricted cash and cash equivalents 4,600,250 - - - - 4,600,250 -
CASH AND CASH EQUIVALENTS, END OF YEAR 29,848,353$ 2,203,357$ 1,343,145$ 1,965,217$ 1,705,879$ 37,065,951$ 23,534,423$
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 12
Statement of Fiduciary Net Position
Fiduciary Fund
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
36
Other
Postemployment
Benefits
Trust Fund
ASSETS
CURRENT ASSETS
Cash and deposits 33,118$
Investments:
Domestic Equities 186,940
Fixed Income 562,922
International Equity 49,929
Real Estate 7,649
Total current assets 840,558
TOTAL ASSETS 840,558
NET POSITION
Restricted for postemployment benefits other than pensions 840,558
TOTAL NET POSITION 840,558$
City of Allen, Texas Exhibit 13
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the Year Ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
37
Other
Postemployment
Benefits
Trust Fund
ADDITIONS
Investment Income:
Net increase in fair value of investments 65,367$
Net Investment Income 65,367
TOTAL ADDITIONS 65,367
DEDUCTIONS
Benefit payments 283,983$
Administrative expense 7,056
TOTAL DEDUCTIONS 291,039
CHANGE IN NET POSITION (225,672)
NET POSITION, BEGINNING OF YEAR 1,066,230
NET POSITION, END OF YEAR 840,558$
City of Allen, Texas Exhibit 14
Statement of Net Position
Component Units
September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
38
Allen Allen
Economic Community
Development Development
Corporation Corporation Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9,626,648$ 11,949,182$ 21,575,830$
Investments 5,413,183 16,834,260 22,247,443
Sales tax receivable 2,511,489 2,511,489 5,022,978
Accounts receivable - 7,054 7,054
Accrued interest receivable 25,011 77,782 102,793
Prepaid items 5,000 - 5,000
Total current assets 17,581,331 31,379,767 48,961,098
NONCURRENT ASSETS
CAPITAL ASSETS
Land 35,079,254 2,239,201 37,318,455
Construction in progress - 7,434,600 7,434,600
Buildings 1,004,091 36,202,922 37,207,013
Furniture and fixtures - 106,211 106,211
Machinery & equipment - 3,822,995 3,822,995
Vehicles - 702,596 702,596
Improvements other than buildings - 42,016,201 42,016,201
Total capital assets 36,083,345 92,524,726 128,608,071
Less: accumulated depreciation (225,922) (42,610,369) (42,836,291)
Capital assets, net of accumulated depreciation 35,857,423 49,914,357 85,771,780
Total noncurrent assets 35,857,423 49,914,357 85,771,780
TOTAL ASSETS 53,438,754 81,294,124 134,732,878
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 129,925 - 129,925
TOTAL DEFERRED OUTFLOWS OF RESOURCES 129,925 - 129,925
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable 107,787 1,194,697 1,302,484
Retainage payable - 258,134 258,134
Accrued interest payable 25,076 41,524 66,600
Accrued and other liabilities 19,519 4,602 24,121
Current portion of long-term debt 1,515,000 1,890,000 3,405,000
Total current liabilities 1,667,382 3,388,957 5,056,339
NONCURRENT LIABILITIES
Noncurrent portion of long-term debt 7,541,582 16,975,000 24,516,582
Total noncurrent liabilities 7,541,582 16,975,000 24,516,582
TOTAL LIABILITIES 9,208,964 20,363,957 29,572,921
NET POSITION
Net investment in capital assets 27,403,157 29,770,776 57,173,933
Restricted for debt service 2,268,523 2,416,900 4,685,423
Unrestricted 14,688,035 28,742,491 43,430,526
TOTAL NET POSITION 44,359,715$ 60,930,167$ 105,289,882$
City of Allen, Texas Exhibit 15
Statement of Activities
Component Units
For the year ended September 30, 2023
The Notes to Financial Statements are an integral part of this statement.
39
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Allen Allen
Operating Economic Community
Charges for Grants and Development Development
Expenses Services Contributions Corporation Corporation Totals
Function/Program Activities
COMPONENT UNITS
Allen Economic
Development Corporation 6,653,336$ -$ -$ (6,653,336)$ -$ (6,653,336)$
Allen Community
Development Corporation 9,887,112 - - - (9,887,112) (9,887,112)
TOTAL COMPONENT UNITS 16,540,448$ -$ -$ (6,653,336)$ (9,887,112)$ (16,540,448)$
General revenues:
Sales taxes 14,474,185$ 14,474,185$ 28,948,370$
Investment income 42,068 644,997 687,065
Miscellaneous 455,444 198,888 654,332
Total general revenues 14,971,697 15,318,070 30,289,767
CHANGE IN NET POSITION 8,318,361 5,430,958 13,749,319
NET POSITION, beginning of year 36,041,354 55,499,209 91,540,563
NET POSITION, end of year 44,359,715$ 60,930,167$ 105,289,882$
Component Units
40
City of Allen, Texas
Notes to Financial Statements
41
Note 1. Summary of Significant Accounting Policies
General Statement
The City of Allen (the City) was incorporated in 1953, under the provisions of Chapter 11, Title 28, Texas
Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a home rule city operating
under a Council-Manager form of government. The City provides such services as are authorized by its
charter to advance the welfare, health, comfort, safety and convenience of its inhabitants.
The accounting and reporting policies of the City relating to the funds included in the accompanying
basic financial statements conform to accounting principles generally accepted in the United States of
America applicable to state and local governments. Generally accepted accounting principles for local
governments include those principles prescribed by the Governmental Accounting Standards Board
GASB), and the American Institute of Certified Public Accountants in the publication entitled Audits of
State and Local Governmental Units. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, the financial
statements of the City include the primary government and organizations for which the primary
government is financially accountable and other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the reporting entity's
financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if its officials appoint a voting majority
of an organization's governing body and either it can impose its will on that organization or there is a
potential for the organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially accountable for
governmental organizations that are fiscally dependent on it.
A primary government can impose its will on an organization if it can significantly influence the programs,
projects, or activities of, or the level of services performed or provided by, the organization. A financial
benefit or burden relationship exists if the primary government (a) is entitled to the organization's
resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization.
Some organizations are included as component units because of their fiscal dependency on the primary
government. An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes, set rates or charges, or issue bonded debt without approval by the primary
government. The following entities were found to be component units of the City and are included in the
basic financial statements:
Allen Economic Development Corporation (AEDC) - The AEDC is responsible for aiding, promoting
and furthering economic development within the City.
Allen Community Development Corporation (ACDC) - The ACDC is responsible for supporting the
improvements in community parks and recreation, streets and sidewalks, public safety and the
community library.
The members of both the AEDC’s and ACDC’s Boards of Directors are appointed by the City Council.
Both the AEDC and ACDC are fiscally dependent upon the City as the City Council approves their
budgets and must approve any debt issuance. However, the component units do not qualify for blending
because the component services directly benefit the community rather than the City itself. The AEDC and
ACDC are discretely presented as governmental fund types and do not issue separate financial
statements.
City of Allen, Texas
Notes to Financial Statements
42
Basis of Presentation
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all the non-fiduciary activities of the primary government and its
component units. The effect of interfund activity, within the governmental and business-type activities
columns, has been removed from these statements; however, interfund services provided and used are
not eliminated in the process of consolidation. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support. Additionally, the primary government is reported
separately from the legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given program
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given program and 2) operating or capital grants
and contributions that are restricted to meeting the operational or capital requirements of a specific
program. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Adoption of New Accounting Standards- GASB 96 (Subscription-Based Information Technology
Arrangements)
GASB Statement No. 96, Subscription-Based Information Technology Arrangements (GASB 96), provides
guidance on the accounting and financial reporting for subscription-based information technology
arrangements (SBITAs) for government end users. This statement 1) defines a SBITA; 2) establishes that a
SBITA results in a right-to-use subscription asset – an intangible asset - and a corresponding subscription
liability; 3) provides the capitalization criteria for outlays other than subscription payments; and 4) requires
note disclosures regarding a SBITA. The requirements of this statement are effective for reporting periods
beginning after June 15, 2022, with earlier application encouraged. The implementation of this GASB had
no impact on the City’s financial statements.
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate funds to aid financial
management and to demonstrate legal compliance. Separate statements are presented for
governmental funds, proprietary funds, and fiduciary funds. These statements present each major fund
as a separate column on the fund financial statements; all nonmajor funds are aggregated and
presented in a single column. Governmental funds are those funds through which most governmental
functions typically are financed. The measurement focus of governmental funds is on the sources, uses
and balances of current financial resources. The City has presented the following major governmental
funds:
General Fund
The General Fund is the general operating fund of the City. It is used to account for all financial resources
not accounted for in other funds. All general tax revenues and other receipts that are not restricted by
law or contractual agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges and capital improvement costs that are not paid through other funds are
paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial resources for the payment of
principal, interest and related costs on general long-term debt paid primarily from taxes levied by the
City. The fund balance of the Debt Service Fund is reserved to signify the amounts that are restricted
exclusively for debt service expenditures.
City of Allen, Texas
Notes to Financial Statements
43
General Capital Projects Fund
The General Capital Projects Fund is used to account for resources used for the acquisition and/or
construction of capital facilities by the City, except those financed by proprietary funds and not
accounted for by another capital projects fund.
Grants Fund
The Grants Fund is used to account for monies received from other governmental agencies that have
restricted legal requirements and multi-year budgets.
General Obligation Bond Capital Projects Fund
The General Obligation Bond Fund is used to account for financing, acquisitions, and construction of
improvements to City facilities and infrastructure not accounted for by other bond funds.
Business-type activities and all proprietary and fiduciary funds are accounted for on a flow of economic
resources measurement focus and the accrual basis of accounting. The accounting objectives are
determinations of net income, financial position and cash flow. All assets and liabilities are included on
the Statement of Net Position.
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
relating to a proprietary fund’s principal ongoing operations. Operating expenses for the proprietary funds
include the cost of personnel and contractual services, supplies and depreciation/amortization on
capital assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses. The City reports the following major proprietary funds:
Enterprise Funds
Water and Sewer Fund
The Water and Sewer Fund is used to account for the provision of water and sewer services to the residents
of the City. Activities for the fund include administration, operations and maintenance of the water and
sewer system and billing and collection activities. The fund also accounts for the accumulation of
resources for, and the payment of, long-term water and sewer debt. All costs are financed through
charges to utility customers with rates reviewed regularly and adjusted, if necessary, to ensure integrity of
the fund.
Solid Waste Fund
The Solid Waste Fund is used to account for the provision of solid waste services to residents of the City.
Drainage Fund
The Drainage Fund is used to account for the provision of developing and maintaining proper drainage
services to the residents of the City.
Golf Course Fund
The Golf Course Fund is used to account for activities associated with the operations of The Courses at
Watters Creek Golf Course purchased by the City in October 2004.
Credit Union of Texas Allen Event Center
The Allen Event Center is used to account for the activities related to the multi-purpose indoor arena
located within the City.
City of Allen, Texas
Notes to Financial Statements
44
Additionally, the City reports the following Internal Service Funds:
Internal Service Funds
Replacement Fund
The Replacement Fund is an internal service fund that accounts for the costs associated with the
acquisition and replacement of vehicles, machinery, and equipment through the rental of such items to
other departments.
Risk Management Fund
The Risk Management Fund accounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their covered
dependents.
Facility Maintenance Fund
The Facility Maintenance Fund accumulates resources to address large repairs and aging facility
infrastructure. The accumulation of resources will help address major building repairs and prevent building
deterioration.
Fiduciary Fund
The Fiduciary Fund is used to hold assets for the benefit of third parties (pension participants) and cannot
be used to address activities or obligations of the primary government. This fund is not incorporated into
the government-wide financial statements. The City’s fiduciary fund accounts for the assets of the
postemployment benefits trust.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured. Basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
The government-wide statements, fund financial statements for proprietary funds, and fiduciary fund
statements are reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and liabilities (whether current
or non-current) are included on the statement of net position and the operating statements present
increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water and sewer services which
are accrued. Expenses are recognized at the time the liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual, i.e., when they become both measurable and
available. “Measurable” means the amount of the transaction can be determined, and “available”
means collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. The City considers all revenues as available if they are collected within 60 days after year
end.
Expenditures are recorded when the related fund liability is incurred, 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. The revenues susceptible to accrual are property and sales
taxes, franchise taxes and interest income. Other receipts (special assessments) become measurable and
available when cash is received by the City and are recognized as revenue at that time.
City of Allen, Texas
Notes to Financial Statements
45
Cash, Cash Equivalents, and Investments
State statutes and policy as established by the City Council authorize the City to invest in certificates of
deposit, direct obligations of the U.S. Treasury, investment pools consisting of such U.S. Treasury obligations,
repurchase agreements, commercial paper and mutual funds. Substantially all operating cash and cash
equivalents are maintained in pooled cash and time deposit accounts. Interest income relating to pooled
deposits is allocated to the individual funds based on each fund’s pro rata share of total pooled deposits.
For purposes of the statement of cash flows, the proprietary funds consider all highly liquid investments
including restricted assets) with an original maturity of three months or less when purchased to be cash
equivalents, as they are available for withdrawal on demand. Investments are recorded at amortized
cost when original maturity at the time of purchase is less than one year or at market if greater than one
year.
Encumbrances
To preserve portions of applicable appropriations, encumbrance accounting is used in governmental
funds for purchase orders, contracts, and other commitments on the expenditure of funds. Under the
City’s budgetary process, appropriations lapse at fiscal year-end. Encumbrances are reported as
assigned fund balance because they do not constitute expenditures or liabilities. Encumbrances included
in assigned fund balance include $922,899 for the General Fund and $4,475,219 for the Capital Projects
Fund.
Property Taxes
The City’s property tax is levied each October 1st on the assessed value listed as of the prior January 1st
for all real and certain personal property located within the City. Appraised values are established by
Collin County Central Appraisal District at 100% of estimated market value and certified by the Appraisal
Review Board. The assessed value upon which the 2022 levy was based is $17,482,292,966. Taxes are due
on October 1st and are delinquent after the following January 31st. The City is permitted by Article XI,
Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for
general governmental services, including the payment of principal and interest on general obligation
long-term debt. For the year ended September 30, 2023, the combined tax rate to finance general
government services, including the payment of principal and interest on long-term debt, was $0.4212 per
100 of assessed valuation.
In Texas, countywide central appraisal districts are required to assess all property within the appraisal
district based on 100% of its appraised value and are prohibited from applying any assessment ratios. The
value of property within the appraisal district must be reviewed every three years; however, the City may,
at its own expense, require annual reviews of appraised values. The City may challenge appraised values
established by the appraisal district through various appeals and, if necessary, legal action. Under this
legislation, the City continues to set tax rates on City property. However, if the effective maintenance and
operations tax rate, increased by 8% excluding other contractual obligations, adjusted for new
improvements, plus the calculated debt tax rate is less than the proposed city tax rate, then qualified
voters of the City may petition for an election to determine whether to limit the tax rate to no more than
the rollback tax rate.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are reported as “due to/from other funds”. Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances”.
City of Allen, Texas
Notes to Financial Statements
46
Transactions Between Funds and Between Funds and Component Units
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund
and as a reduction of expenditures/expenses in the fund reimbursed. All other interfund transactions,
except transactions between the component units and the primary government are recorded as
transfers. Transactions between the component units and the primary government are accounted for as
external transactions (revenues and expenses). During the fiscal year ended September 30, 2023, ACDC
contributed $1,147,794 and AEDC contributed $110,289 to the General Fund for administrative costs. The
ACDC contributed $1,887,850 to the General Fund to service debt related to the Terrell Recreation
Center. These revenues were reflected as operating grants and contributions for the primary government
in the government-wide statement of activities.
Inventories and Prepaid Items
Inventories are valued at cost using the first-in, first-out method for fuel. The inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
Payments made to vendors for services that will provide benefit in subsequent fiscal periods are recorded
as prepaid items in both the government-wide and fund financial statements. Prepaid items are reported
as non-spendable fund balance in the governmental funds in the fund financial statements to signify that
a portion of fund balance is not available for other subsequent expenditures. The consumption method
is used in the fund financial statements.
Special Assessments
The City has the authority to make special assessments to property owners as part of the financing of
capital improvements. Such assessments are recorded in the capital projects fund as receivables when
assessed and are recognized as revenue when both the measurable and available criteria have been
met (generally when collected).
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the
applicable governmental or business-type activities columns in the government-wide financial
statements and in the fund financial statements for proprietary funds. All capital assets are valued at
historical cost or estimated historical cost if actual historical cost is not available. Donated assets are
valued at acquisition value on the date donated. The costs of normal repairs and maintenance that do
not add value to assets or materially extend asset lives are not capitalized. Renewals and betterments
are capitalized. Interest has not been capitalized during the construction period on property, plant and
equipment. Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Financed purchase assets are City owned assets and follow the depreciation of regular capital assets.
Capital assets and right-to-use assets of the City are depreciated and amortized using the straight-line
method over the following estimated useful lives:
Buildings 10 - 40 Years
Towers, tanks, and pump stations 5 - 40 Years
Infrastructure 3 - 50 Years
Machinery and equipment 3 - 15 Years
Vehicles 2 - 15 years
Furniture and fixture 5 - 10 Years
Other improvements 2 - 30 Years
Right-to-use leased equipment Lease Term
City of Allen, Texas
Notes to Financial Statements
47
The City has established the Replacement Fund to account for the replacement of the City-owned
vehicles, machinery, and equipment. Charges for use in the form of user payments are made by City
departments to the Replacement Fund to provide for future acquisitions and replacements.
Compensated Absences
City employees earn vacation and sick leave, which may either be taken or accumulated up to certain
amounts until paid upon retirement or termination. Upon termination or retirement, an employee is
reimbursed up to a maximum number of hours of vacation pay and sick leave based upon the years of
service. Accumulated vacation and sick leave are accrued when incurred in the government-wide,
proprietary, and fiduciary fund financial statements.
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. Information
regarding the City’s Total Pension Liability is obtained from TMRS through a report prepared for the City by
TMRS consulting actuary, Gabriel Roeder Smith & Company.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability/asset, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s
OPEB Plan and the additions to/deductions from the City’s OPEB Plan’s net fiduciary position have been
determined on the same basis as they were reported by the City’s Other Postemployment Benefit Plan.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with the benefit terms. The investments are reported at fair value.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and/or balance sheet 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 assets that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has the following items
that qualify for reporting in this category:
Deferred charges on refunding – A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
Contributions after measurement date – These contributions are deferred and recognized in the
following fiscal year.
Difference between expected and actual pension and OPEB experience – This difference is
deferred and amortized over a closed period.
Changes in actuarial assumptions – these are deferred and recognized over the remaining lives of
all members as of the measurement date.
City of Allen, Texas
Notes to Financial Statements
48
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets
that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The City has three types of items that qualify for reporting in this category. In the statement of net
position, the City reports the difference in expected and actual pension and OPEB experience, the changes
in actuarial assumptions and the difference in projected and actual investment earnings. These are
deferred and recognized over the estimated average remaining lives of all members as of the
measurement date. In the balance sheet for the governmental funds, the City reports unavailable revenue
for revenue not received within 60 days of year end.
Net Position
Net position represents the difference between assets, liabilities, and deferred inflows and outflows. Net
investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used for the acquisition, construction or improvements of those
assets, and adding back unspent proceeds. Net position is reported as restricted when there are
limitations imposed on their use either through the enabling legislations adopted by the City or through
external restrictions imposed by creditors, grantors or laws or regulations of other governments.
Fund Balance
Fund balance classifications are non-spendable, restricted, committed, assigned, and unassigned. These
classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed
upon fund balance. Fund balance can have different levels of constraint, such as external versus internal
compliance requirements. Unassigned fund balance is a residual classification within the General Fund.
The General Fund should be the only fund that reports a positive unassigned balance. In all other funds,
unassigned is limited to negative residual fund balance.
The City classifies governmental fund balances as follows:
Non-spendable -- includes fund balance amounts that cannot be spent because they are either not in
spendable form, or for legal or contractual reasons, must be kept intact. This classification includes
inventories, prepaid items and long-term receivables.
Restricted -- includes fund balance amounts that are either constrained for specific purposes imposed by
external providers, such as creditors, or restricted due to constitutional provisions or enabling legislation.
This classification includes retirement of long-term debt, construction programs, and other federal and
state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes imposed
internally by the City through formal action of the highest level of decision-making authority. Committed
fund balance is reported pursuant to resolutions passed by the City Council.
Assigned -- includes fund balance amounts that are self-imposed by the City to be used for a particular
purpose. Fund balance can be assigned by the City Manager or the Chief Financial Officer. This
classification includes insurance deductibles, encumbrances, program start-up costs, projected budget
deficit for subsequent years and other legal uses.
Unassigned -- includes residual positive fund balance within the General Fund which has not been
classified within the other above-mentioned categories. Unassigned fund balance may also include
negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or
assigned for those specific purposes.
City of Allen, Texas
Notes to Financial Statements
49
When multiple categories of fund balance are available for expenditure, the City will start with the most
restricted category and spend those funds first before moving down to the next category with available
funds.
Minimum General Fund Unassigned Fund Balance - It is the goal of the City to achieve and maintain an
unassigned General Fund balance that is within a range of 60 to 90 days of annual expenditures. If
unassigned General Fund balance falls below the goal or has a deficiency, the City will establish a
timeframe and work plan to replenish the fund balance. The work plan may include tax increases, fee
increases, reduction of services, and/or reduction of expenditures (i.e. hiring freeze, salary freeze, or
reduction of travel/training).
Note 2. Deposits, Investments and Investment Policies
Deposits – State statutes require all deposits to be fully collateralized by U.S. Government obligations or
obligations of Texas and its agencies with market values not less than the principal amount of the deposits.
Pursuant to the Texas Public Funds Investment Act (PFIA) and the City's investment policy, all deposits of
the City that exceed the federal depository insurance coverage level must be collateralized with
irrevocable letters of credit and/or by governmental obligations pledged to the City with market values
of at least 103% of the deposit balances plus accrued interest.
The City’s demand deposits and certificates of deposit were fully insured or collateralized at
September 30, 2023, with collateral required by state statutes. At year’s end, the carrying amount of the
City’s pooled deposits was $10,458,476, and the bank balance was $9,461,688. Of the bank balance,
federal depository insurance covered $250,000 at each depository bank, and the remainder was covered
by collateral held by the pledging financial institution’s agent in the City’s name. The City’s petty cash
balance at September 30, 2023, was $21,609. The carrying amount of deposits for ACDC and AEDC,
discretely presented component units, were $1,990,425 and $2,340,850, respectively, with no
corresponding bank balances as they are pooled with the City’s deposits.
Investments – State statutes authorize the City to invest in U.S. Government obligations, obligations of
Texas and its agencies and fully collateralized repurchase agreements. The City, AEDC and ACDC invest
in TexPool which is an investment fund authorized by the Texas Legislature and administered by the Texas
State Treasury. The Texas Treasury Safekeeping Trust Company is trustee of TexPool and is a limited purpose
trust company authorized pursuant to Texas Government Code. The purpose of TexPool is to allow for the
pooling of public funds to provide a higher yield on the pooled investment than would be possible with
the investment of the individual public entity’s funds. TexPool investments are subject to the same
investment policies maintained by the State Treasury for all state funds. The Legislature has authorized only
certain investment instruments for public funds, including repurchase agreements, U.S. Treasury bills and
bonds, securities of other U.S. Government agencies, commercial paper and other safe instruments.
The PFIA (Government Code Chapter 2256) contains specific provisions in the areas of investment
practices, management reports, and establishment of appropriate policies. In compliance with PFIA, the
City has adopted an investment policy and is authorized to invest in obligations of, or guaranteed by,
governmental entities, certificates of deposit, Texas Public Funds Investment Pools, collateralized
repurchase agreements, commercial paper, banker's acceptances, no-load money market mutual
funds and guaranteed investment contracts. The table below identifies the investment types that are
authorized for the City under Government Code Chapter 2256. The table also identifies certain provisions
of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.
City of Allen, Texas
Notes to Financial Statements
50
Maximum
Authorized Maximum Investment
Investment Type Maturity in One Issuer
Certificates of Deposit 5 years 35%
Repurchase Agreements 5 years 35%
U. S. Treasure Obligations 5 years None
Municipal Investment Pool 5 years None
Commercial Bank Savings Account 5 years None
Money Market Mutual Fund 5 years 35%
U. S. Government Securities (non-callable) 5 years None
U. S. Government Securities (callable) 5 years None
U. S. Government Sponsored Corp. 5 years None
Instruments: non-callable
U. S. Government Sponsored Corp. 5 years None
Instruments: callable
Commercial Paper 5 years 35%
Bankers’ Acceptance 5 years 35%
Guaranteed Investment Contracts 5 years 35%
State or Local Governmental Obligations 5 years 35%
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application
provides a framework for measuring fair value by establishing a three-level fair value hierarchy that
describes the inputs used to measure assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that
a government can access at the measurement date.
Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique that maximizes the use of relevant observable inputs and minimizes the use
of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than
one level of the fair value hierarchy, the measurement is based on the lowest priority level input that is
significant to the entire measurement.
City of Allen, Texas
Notes to Financial Statements
51
The City’s investments are measured as presented in the table below. The City’s investment balances,
weighted average maturity, and credit risk of such investments are as follows:
Significant
Other
Other Total Observable % of Total Weighted
Investment Primary Postemployment September 30, Inputs Government-wide Avg. Maturity Credit
Type Government AEDC ACDC Benefits Trust 2023 (Level 2)Investments (Days) Rating
Government-wide:
Investments Measured at Amortized Cost:
TexPool 5,515,747$ 2,268,523$ 2,416,900$ -$ 10,201,170$ -$ 3.83% 23.00 AAAm
Investments Measured at NAV:
Money Market Accounts 1,576 - - - 1,576 - 0.00%- AAAm
Texas CLASS 110,169,734 5,017,276 7,541,858 - 122,728,868 - 46.06% 26.00 AAAm
Investments Measured at Cost:
Certificates of Deposit 6,713,887 - - - 6,713,887 - 2.53%4.06 n/a
Investments Subject to Fair Value:
U.S. Agencies 71,108,333 3,785,299 11,771,763 - 86,665,395 86,665,395 32.62% 246.13 AA+
Certificates of Deposit 2,270,074 10,280 31,971 - 2,312,325 2,312,325 0.87%3.17 n/a
Corporate bonds 771,239 41,055 127,676 - 939,970 939,970 0.35%1.62 A+
Municipal Bonds 29,616,078 1,576,548 4,902,849 - 36,095,475 36,095,475 13.59% 39.08 A to AAA
PARS OPEB Trust Program:
Domestic Equities - - - 186,940 186,940 -
Fixed Income - - - 562,922 562,922 -
International Equity - - - 49,929 49,929 -
Real Estate - - - 7,649 7,649 -
Total Government-wide Plus PARS OPEB Trust 226,166,668$ 12,698,981$ 26,793,017$ 807,440$ 266,466,106$ 126,013,165$
Investment pools, money markets, certificates of deposits (Level 1), and domestic equities are measured
at amortized cost, net asset value, or cost; are valued using prices quoted in active markets for those
securities; and are not required to be reported by levels in the table.
Investments in U.S. Agencies securities, certificates of deposits (Level 2), commercial paper, and municipal
bonds classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique in
accordance with pricing sources by the custodian bank. Matrix pricing is used to value securities based
on the securities' relationship to benchmark quoted prices.
In order to meet the criteria to be recorded at amortized cost, investment pools must transact at a stable
net asset value per share and maintain certain maturity, quality, liquidity and diversification requirements
within the investment pool. The investment pools transact at a net asset value of $1.00 per share, have
weighted average maturity of 60 days or less and weighted average life of 120 days or less, investments
held are highly rated by a nationally recognized statistical rating organization, have no more than 5% of
portfolio with one issuer (excluding US government securities), and can meet reasonably foreseeable
redemptions. TexPool and TexSTAR have a redemption notice period of one day and no maximum
transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the
event of a general suspension of trading on major securities market, general banking moratorium, or
national or state emergency that affects the pools’ liquidity.
TexPool is an external investment pool measured at amortized cost. The Texas Comptroller of Public
Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company,
which is authorized to operate TexPool. In addition, the TexPool Advisory Board advises on TexPool’s
Investment Policy. This Board is composed equally of participants in TexPool and other persons who do
not have a business relationship with TexPool who are qualified to advise TexPool.
TexSTAR is duly chartered by the State of Texas Interlocal Cooperation Act, is administered by Hilltop
Securities, Inc. and J.P. Morgan Investment Management, Inc. (JPMIM), and managed by JPMIM, who
provides custody and investment management. The primary objectives of TexSTAR are, in order of priority,
preservation and protection of principal, maintenance of enough liquidity to meet participants’ needs,
and yield. The portfolio will maintain a dollar-weighted average maturity that does not exceed 60 days
and seeks to maintain a net asset value of $1.00 per share. TexSTAR uses amortized costs rather than fair
value to report net position to compute share prices. Accordingly, the fair value of the position in TexSTAR
is the same as the value of TexSTAR’s shares.
City of Allen, Texas
Notes to Financial Statements
52
Texas CLASS (Texas Cooperative Liquid Assets Security System) is an external investment pool measured
at its net asset value. Texas CLASS’ strategy is to seek preservation of principal, liquidity and current
income through investment in a diversified portfolio of short-term marketable securities. The City has no
unfunded commitments related to the investment pool. Texas CLASS has a redemption notice period of
one day and may redeem daily. Authority over the investment pool may only impose restrictions on
redemptions in the event of a general suspension of trading on major securities market, general banking
moratorium or national or state emergency that affects the pool’s liquidity. Texas CLASS was organized in
March 1996 under a trust agreement executed by and among Texas local governmental entities in
accordance with the Public Funds Investment Act, and the Texas Government Code and remains in full
compliance with Government Code Chapter 2256. The fund is administered by Public Trust Advisors, LLC
and is rated AAAm by Standard & Poor’s Rating Services.
Investments in the Other Postemployment Benefit Trust Program (the “Trust”) are held by a bank trust
department separate from the City’s cash and investments. The City has contracted with Public Agency
Retirement Services (PARS) to manage the investment portfolio of the Trust Fund. The investments are
subject to the policies and guidelines established by the committee members of the Trust.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Investments with interest rates that are fixed for longer periods of time are more likely to be
subject to increased variability in their fair values due to changes in the market interest rates. The City
manages its exposure to market price changes by avoiding over-concentration of assets in a specific
maturity sector, limitation of average maturity of operating funds investments to less than eighteen
months, and avoidance of over-concentration of assets in specific instruments other than U.S. Treasury
Securities, U.S. Agency Obligations or Securities and authorized investment pools.
Credit Risk
The City’s Investment policy, in conjunction with state law, specifies the type of credit rating of all
authorized investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This type of risk is typically expressed in terms of the credit ratings issued by a nationally recognized
statistical rating organization. The City reduces the risk of issuer default by limiting investments to those
instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas Government Code. The
City’s investments in U.S. Agency securities (FFCB, FHLB, FHLMC, and FNMA) are rated AA+ by Standard &
Poor’s and Aaa by Moody’s Investors Service.
The City’s investments in municipal bonds are rated AA- by Standard and Poor’s and Aa3 by Moody’s
Investors Service. Investments in TexPool, TexSTAR, Texas CLASS, and money market accounts carried a
credit rating of AAAm by Standard & Poor’s as of September 30, 2023.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in
a single issuer. The City's investment policy controls concentration of credit risk by limiting the amount of
investment with a single issuer to no more than 35% of the total portfolio except for State approved
investment pools and U.S. Government Securities and Agency Obligations. As of September 30, 2023,
apart from funds invested in TexPool, TexSTAR, or Texas CLASS, the City did not have any investments with
a single issuer exceeding 5% or more of the City’s investments.
City of Allen, Texas
Notes to Financial Statements
53
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover deposits or will not be able to recover collateral
securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral securities that
are in the possession of an outside party. The City’s investment policy minimizes custodial credit risk by
requiring pledged securities to be in the name of the City.
The Public Funds Investment Act requires financial institutions to secure deposits made by state or local
governmental bodies by pledging securities in an undivided collateral pool held by a depository
regulated under state law. The market value of the pledged securities of the collateral must always
remain at least equivalent to the bank balance less the FDIC insurance.
As of September 30, 2023, the City’s deposits with financial institutions above the federal depository limits
were fully collateralized.
Note 3. Receivables
Receivables at September 30, 2023, for both governmental and business-type activities, including the
applicable allowances for uncollectible accounts, consist of the following:
Property Sales Accrued
Taxes Taxes Accounts Interest Other Total
General Fund 843,188$ 5,105,741$ -$ 144,491$ 4,964,095$ 11,057,515$
Debt Service 231,985 - - - - 231,985
General Capital Projects - - - 109,353 3,321,045 3,430,398
Grants Fund - - 94,326 - - 94,326
G.O. Bond Fund - - - 43,389 8,086 51,475
Nonmajor Governmental Funds - - 226,525 29,633 - 256,158
Water and Sewer Fund - - 11,704,391 107,923 4,464,304 16,276,618
Solid Waste Fund - - 972,449 - 462,425 1,434,874
Drainage Fund - - 312,700 - 854 313,554
Golf Course Fund - - - 8,098 6,834 14,932
Allen Event Center - - 256,262 - - 256,262
Internal Service Funds - - 121,224 68,288 - 189,512
Gross Receivables 1,075,173 5,105,741 13,687,877 511,175 13,227,643 33,607,609
Less: Allowance for
Uncollectibles (885,957) - (379,360) - (1,584,294) (2,849,611)
Total Net Receivables,
Primary Government 189,216$ 5,105,741$ 13,308,517$ 511,175$ 11,643,349$ 30,757,998$
Component Units -$ 5,022,978$ -$ 102,793$ 7,054$ 5,132,825$
The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include unbilled
charges for services rendered through September 30, 2023.
City of Allen, Texas
Notes to Financial Statements
54
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2023, was as follows:
Governmental Activities
Balance Balance
September 30 Dispositions/September 30,
2022 Additions Transfers 2023
Governmental Funds:
General capital assets
not being depreciated/amortized:
Land and land improvements 164,253,182$ 3,958,571$ -$ 168,211,753$
Construction in progress 44,443,332 25,273,944 (507,439) 69,209,837
Total capital assets
not being depreciated/amortized 208,696,514 29,232,515 (507,439) 237,421,590
General capital assets
being depreciated/amortized:
Buildings 108,548,675 - - 108,548,675
Improvements
other than buildings 551,657,018 1,675,949 300,751 553,633,718
Furniture and fixtures 4,563,486 44,649 - 4,608,135
Vehicles 1,793,290 85,919 (82,693)1,796,516
Machinery and equipment 10,418,660 673,363 (195,397)10,896,626
Machinery and equipment - right-to-use 1,475,397 280,177 (89,830) 1,665,744
Total capital assets being
depreciated/amortized 678,456,526 2,760,057 (67,169) 681,149,414
Less accumulated
depreciation/amortization for:
Buildings (41,168,824) (2,751,312) - (43,920,136)
Improvements
other than buildings (359,829,167) (17,851,537) - (377,680,704)
Furniture and fixtures (4,413,100) (58,516) - (4,471,616)
Vehicles (1,304,869) (172,895) 109,926 (1,367,838)
Machinery and equipment (5,610,294) (870,632) 195,397 (6,285,529)
Machinery and equipment - right-to-use (461,529) (454,460) - (915,989)
Total accumulated
depreciation/amortization (412,787,783) (22,159,352) 305,323 (434,641,812)
Total general capital assets
being depreciated/amortized, net 265,668,743 (19,399,295) 238,154 246,507,602
General capital assets, net 474,365,257$ 9,833,220$ (269,285)$ 483,929,192$
City of Allen, Texas
Notes to Financial Statements
55
Balance Balance
September 30, Dispositions/ September 30,
2022 Additions Transfers
Internal service funds assets
not being depreciated:
Construction in progress 1,596,139$ 1,509,788$ (2,838,950)$ 266,977$
Total capital assets
not being depreciated 1,596,139 1,509,788 (2,838,950) 266,977
Internal service funds
assets being depreciated:
Vehicles 18,117,806 1,769,294 1,788,834 21,675,934
Machinery and equipment 5,683,003 755,575 - 6,438,578
Total internal service
assets being depreciated 23,800,809 2,524,869 1,788,834 28,114,512
Less accumulated
depreciation for:
Vehicles (13,231,920) (1,871,511) 155,537 (14,947,894)
Machinery and equipment (4,697,628) (457,494) - (5,155,122)
Total accumulated
depreciation (17,929,548) (2,329,005) 155,537 (20,103,016)
Total Internal service funds
capital assets being depreciated, net 5,871,261 195,864 1,944,371 8,011,496
Total Internal service funds
capital assets, net 7,467,400 1,705,652 (894,579) 8,278,473
Governmental activities
capital assets, net $ 481,832,657 $ 11,538,872 (1,163,864)$ $ 492,207,665
Business-Type Activities
Balance
September 30,
2022 Additions
Dispositions /
Transfers
Balance
September 30, 2023
Capital assets not being depreciated/amortized:
Land 4,091,626$ -$ -$ 4,091,626$
Construction in progress 17,177,090 16,020,307 (4,643,728) 28,553,669
Total capital assets not
being depreciated/amortized 21,268,716 16,020,307 (4,643,728) 32,645,295
Capital Assets Being depreciated/amortized:
Towers, tanks, & pumps stations 217,485,078 1,758,952 4,643,728 223,887,758
Other improvements 1,230,546 - - 1,230,546
Intangible 7,994,325 - - 7,994,325
Machinery and equipment - right-to-use 430,202 - - 430,202
Machinery and equipment 5,054,917 169,102 (770,032) 4,453,987
Vehicles 1,108,996 - - 1,108,996
Total capital assets
being depreciated/amortized 233,304,064 1,928,054 3,873,696 239,105,814
Less accumulated depreciation/amortization for:
Towers, tanks, & pumps stations (110,155,473) (5,848,892) - (116,004,365)
Other improvements (294,230) (53,373) - (347,603)
Intanglble - (266,478) (266,478)
Machinery and equipment - right-to-use (152,550) (119,554) - (272,104)
Machinery and equipment (3,951,109) (320,923) 770,032 (3,502,000)
Vehicles (645,729) (115,626) - (761,355)
Total accumulated
depreciation/amortization (115,199,091) (6,724,846) 770,032 (121,153,905)
Total capital assets
being depreciated/amortized, net 118,104,973 (4,796,792) 4,643,728 117,951,909
Business-type activities
capital assets, net 139,373,689$ 11,223,515$ -$ 150,597,204$
City of Allen, Texas
Notes to Financial Statements
56
Balance Balance
September 30,Dispositions / September 30,
2022 Additions Transfers 2023
Economic Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 12,785,529$ 22,293,725$ -$ 35,079,254$
Total capital assets
not being depreciated 12,785,529 22,293,725 - 35,079,254
Capital assets being depreciated:
Buildings 1,004,091 - - 1,004,091
Total capital assets being
depreciated 1,004,091 - - 1,004,091
Less accumulated depreciation for:
Buildings (175,717) (50,205) - (225,922)
Total accumulated depreciation (175,717) (50,205) - (225,922)
Total capital assets being depreciated, net 828,374 (50,205) - 778,169
Economic Development Corporation
capital assets, net 13,613,903$ 22,243,520$ -$ 35,857,423$
Community Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 2,239,201$ -$ -$ 2,239,201$
Construction in progress 2,167,720 7,481,690 (2,214,810) 7,434,600
Total capital assets
not being depreciated 4,406,921 7,481,690 (2,214,810) 9,673,801
Capital assets being depreciated:
Buildings 36,202,922 - - 36,202,922
Machinery & Equipment 3,282,211 540,784 - 3,822,995
Improvements other than buildings 39,801,391 - 2,214,810 42,016,201
Furniture and fixtures - 106,211 - 106,211
Vehicles 702,596 - - 702,596
Total capital assets being
depreciated 79,989,120 646,995 2,214,810 82,850,925
Less accumulated depreciation for:
Buildings (11,573,858) (910,830) - (12,484,688)
Machinery & Equipment (2,660,987) (293,722) - (2,954,709)
Improvements other than buildings (24,193,982) (2,306,905) - (26,500,887)
Furniture and fixtures - (9,348) - (9,348)
Vehicles (630,186) (30,551) - (660,737)
Total accumulated depreciation (39,059,013) (3,551,356) - (42,610,369)
Total capital assets being depreciated, net 40,930,107 (2,904,361) 2,214,810 40,240,556
Community Development Corporation
capital assets, net 45,337,028$ 4,577,329$ -$ 49,914,357$
Component units capital assets, net 58,950,931$ 26,820,849$ -$ 85,771,780$
City of Allen, Texas
Notes to Financial Statements
57
Depreciation/amortization expense was charged as direct expense to programs of the primary
government and component units as follows:
Governmental activities:
General government 725,764$
Public safety 1,219,896
Public works 17,724,510
Culture and recreation 2,466,362
Community development 22,820
Total depreciation and amortization expense - General capital assets 22,159,352
Internal Service Funds 2,329,005
Total depreciation/amortization expense - Governmental activities 24,488,357$
Business-type activities:
Water and sewer 6,380,266$
Solid waste 14,044
Drainage utility 115,831
Golf course 214,705
Total depreciation/amortization expense - Business-type activities 6,724,846$
Component units:
Allen Economic Development Corporation 50,205$
Allen Community Development Corporation 3,551,356
Total depreciation/amortization expense - Component units 3,601,561$
Outstanding commitments at September 30, 2023, under authorized construction contracts totaled
11,478,974. These outstanding commitments for capital projects will be funded from unexpended bond
proceeds and additional general obligation bonds.
City of Allen, Texas
Notes to Financial Statements
58
Note 5. Long-term Liabilities
At September 30, 2023, bonds payable consisted of the following individual issues:
Original Interest Final Outstanding at
Borrowing Rates Maturity 9/30/2023
Governmental Activities
General Obligation Bonds
General Obligation Bonds, Series 2006 1,595,000$ 4.0% - 4.2%8/15/2026 330,000$
General Obligation Bonds, Series 2013 5,065,000 2.0% - 3.5%8/15/2032 2,715,000
General Obligation Bonds, Series 2014 10,595,000 2.0% - 4.0%8/15/2033 6,330,000
General Obligation Refunding & Improvement Bonds, Series 2015 32,245,000 2.0% - 5.0%8/15/2034 10,205,000
General Obligation Refunding Bonds, Series 2016 6,910,000 2.0% - 4.0%8/15/2028 4,350,000
General Obligation Bonds, Series 2017 11,845,000 2.25% - 5.0%8/15/2032 7,370,000
General Obligation Bonds, Series 2018 8,355,000 2.0% - 5.0%8/15/2033 5,945,000
General Obligation Refunding & Improvement Bonds, Series 2019 8,630,000 2.5% - 4.0%8/15/2034 5,325,000
General Obligation Refunding & Improvement Bonds, Series 2020 23,385,000 2.0% - 4.0%8/15/2035 16,285,000
General Obligation Refunding & Improvement Bonds, Series 2021 10,595,000 3.0% - 5.0%8/15/2036 5,935,000
General Obligation Bonds, Series 2022 23,000,000 4.0% - 5.0%8/15/2041 21,580,000
General Obligation Bonds, Series 2023 14,525,000 4.0% - 5.0%8/15/2043 14,525,000
General Obligation Bonds Total 156,745,000$ 100,895,000$
Certificates of Obligation Bonds
Combination Tax & Revenue Certificates of Obligation, Series 2021 22,945,000$ 4.0% - 5.0%8/15/2036 20,740,000$
Tax Notes
Tax Notes, Series 2020 3,175,000$ 4.00%8/15/2026 1,680,000$
Governmental Activities Total 182,865,000$ 123,315,000$
Business-type Activities
Waterworks & Sewer System Revenue Refunding Bonds, Series 2013 3,370,000$ 2.0% - 3.0%6/1/2025 645,000$
Waterworks & Sewer System Revenue Refunding Bonds, Series 2014 1,280,000 2.10%6/1/2024 120,000
Waterworks & Sewer System Revenue Bonds, Series 2018 9,330,000 2.0% - 5.0%6/1/2038 7,640,000
Waterworks & Sewer System Revenue Bonds, Series 2019 3,845,000 2.0% - 4.0%6/1/2039 3,230,000
Waterworks & Sewer System Revenue Bonds, Series 2020 4,880,000 2.0% - 5.0%6/1/2040 4,320,000
Waterworks & Sewer System Revenue Bonds, Series 2021 10,675,000 2.0% - 5.0%6/1/2036 9,870,000
Business-type Activities Total 33,380,000$ 25,825,000$
Allen Economic Development Corporation Bonds
Sales Tax Revenue Refunding Bonds, Series 2017A 11,810,000$ 2.0% - 5.0%9/1/2027 4,965,000$
Sales Tax Revenue Bonds, Series 2020 2,110,000 0.75% - 2.0%9/1/2030 1,505,000
Sales Tax Revenue Bonds, Series 2021 2,295,000 0.65% - 2.45%9/1/2036 2,295,000
AEDC Bonds Total 16,215,000$ 8,765,000$
Allen Community Development Corporation Bonds
Sales Tax Revenue Refunding Bonds, Series 2016 31,235,000$ 0.750% - 2.353%9/1/2032 18,865,000$
City of Allen, Texas
Notes to Financial Statements
59
The following is a summary of long-term liabilities transactions, including current portion, of the City for
the year ended September 30, 2023:
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Governmental Activities
General obligation bonds 95,885,000$ 14,525,000$ (9,515,000)$ 100,895,000$ 11,905,000$
Certificates of obligation 21,870,000 - (1,130,000) 20,740,000 1,190,000
Tax notes 2,200,000 - (520,000) 1,680,000 540,000
Right-to-use leases 1,020,867 280,177 (476,269) 824,775 495,475
Premiums (discounts)13,419,341 771,340 (795,950) 13,394,731 -
Compensated absences 8,021,323 6,551,976 (5,863,499) 8,709,800 1,741,960
Net OPEB liability 2,165,664 - (717,342) 1,448,322 -
Net pension liability 9,390,772 34,703,345 - 44,094,117 -
Governmental activities
long-term liabilities 153,972,967$ 56,831,838$ (19,018,060)$ 191,786,745$ 15,872,435$
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Business-Type Activities
Water and sewer revenue bonds 27,400,000$ -$ (1,575,000)$ 25,825,000$ 1,645,000$
Financed purchases 191,445 - (143,931) 47,514 15,540
Right-to-use leases 279,154 - (161,782) 117,372 108,430
Premiums (discounts)3,069,408 - (95,715) 2,973,693 -
Net pension liability 1,302,113 5,280,837 - 6,582,950 -
Net OPEB liability 259,532 - (43,307) 216,225 -
Compensated absences 801,496 1,189,692 (822,018) 1,169,170 233,834
Business-type activity long-term liabilities 33,303,148$ 6,470,529$ (2,841,753)$ 36,931,924$ 2,002,804$
Component Units
Allen Community Development Corporation
Sales tax revenue bonds 20,715,000$ -$ (1,850,000)$ 18,865,000$ 1,890,000$
ACDC long-term debt 20,715,000$ -$ (1,850,000)$ 18,865,000$ 1,890,000$
Allen Economic Development Corporation
Sales tax revenue bonds 10,070,000$ -$ (1,305,000)$ 8,765,000$ 1,515,000$
Premiums (discounts)364,477 - (72,895) 291,582 -
AEDC long-term debt 10,434,477$ -$ (1,377,895)$ 9,056,582$ 1,515,000$
Component units long-term debt 31,149,477$ -$ (3,227,895)$ 27,921,582$ 3,405,000$
City of Allen, Texas
Notes to Financial Statements
60
Annual Requirements to Retire Debt Obligations
The City intends to retire all its general long-term liabilities, plus accrued interest, from ad valorem taxes
and other current revenues. The proprietary fund type long-term debt, plus accrued interest, will be repaid
from operating revenues of the Water and Sewer Fund. The annual aggregate maturities for each bond
type for the years subsequent to September 30, 2023, are on the following pages.
Fiscal Year Ending
September 30,Principal Interest Total
2024 11,905,000$ 4,206,406$ 16,111,406$
2025 8,165,000 3,738,686 11,903,686
2026 8,475,000 3,425,857 11,900,857
2027 8,725,000 3,053,496 11,778,496
2028 7,700,000 2,686,446 10,386,446
2029-2033 32,465,000 8,982,069 41,447,069
2034-2038 14,560,000 3,454,363 18,014,363
2039-2043 8,900,000 888,800 9,788,800
100,895,000$ 30,436,123$ 131,331,123$
Fiscal Year Ending
September 30,Principal Interest Total
2024 1,190,000$ 926,250$ 2,116,250$
2025 1,250,000 866,750 2,116,750
2026 1,310,000 804,250 2,114,250
2027 1,370,000 738,750 2,108,750
2028 1,445,000 670,250 2,115,250
2029-2033 8,310,000 2,246,500 10,556,500
2034-2036 5,865,000 475,600 6,340,600
20,740,000$ 6,728,350$ 27,468,350$
Fiscal Year Ending
September 30,Principal Interest Total
2024 540,000$ 67,200$ 607,200$
2025 560,000 45,600 605,600
2026 580,000 23,200 603,200
1,680,000$ 136,000$ 1,816,000$
Governmental Activities
General Obligation Bonds
Certificates of Obligation
Tax Notes
City of Allen, Texas
Notes to Financial Statements
61
Annual Requirements to Retire Debt Obligations – Continued
Fiscal Year Ending
September 30,Principal Interest Total
2024 1,645,000$ 970,308$ 2,615,308$
2025 1,420,000 929,700 2,349,700
2026 1,200,000 892,950 2,092,950
2027 1,230,000 862,950 2,092,950
2028 1,260,000 823,900 2,083,900
2029-2033 7,185,000 3,254,600 10,439,600
2034-2038 8,830,000 1,598,650 10,428,650
2039-2041 3,055,000 190,150 3,245,150
25,825,000$ 9,523,208$ 35,348,208$
Fiscal Year Ending
September 30,Principal Interest Total
2024 1,515,000$ 314,743$ 1,829,743$
2025 1,580,000 253,845 1,833,845
2026 1,645,000 189,015 1,834,015
2027 1,715,000 120,468 1,835,468
2028 390,000 47,778 437,778
2029-2033 1,335,000 142,923 1,477,923
2034-2036 585,000 48,525 633,525
8,765,000$ 1,117,297$ 9,882,297$
Fiscal Year Ending
September 30,Principal Interest Total
2024 1,890,000$ 521,192$ 2,411,192$
2025 1,935,000 476,721 2,411,721
2026 1,980,000 431,190 2,411,190
2027 2,030,000 382,423 2,412,423
2028 2,080,000 329,176 2,409,176
2029-2032 8,950,000 697,904 9,647,904
18,865,000$ 2,838,606$ 21,703,606$
Waterworks and Sewer System Revenue Bonds
Component Unit Activities
Sales Tax Revenue Bonds - Allen EDC
Sales Tax Revenue Bonds - Allen CDC
Business Type Activities
City of Allen, Texas
Notes to Financial Statements
62
Bond Issuances
On August 31, 2023, the City issued City of Allen, Texas General Obligation Bonds, Series 2023, in the
amount of $14,525,000 for capital improvements. Bond proceeds totaled $15,296,440 and includes a
premium of $771,340. Expenses incurred to deliver the Series 2023 bonds, including issuance costs,
underwriter’s discount, and agents’ fees amounted to $194,280. The Series 2023 bonds incur an average
cost over the life of the debt at a rate of 4.00%-5.00% and mature annually, with semi-annual interest
payments.
A schedule of authorized but unissued direct General Obligation Bonds as of September 30, 2023, is as
follows:
Date of Original Amount Issued in Issued Unissued
Purpose Authorization Authorized Prior Fiscal Years in 2023 Balance
Service Center Facilities 5/12/2007 $ 14,500,000 $ 12,500,000 -$ $ 2,000,000
Library 5/7/2016 16,045,000 16,045,000 - -
Streets and Drainage 5/7/2016 23,890,000 18,990,000 4,900,000 -
Parks 5/7/2016 27,000,000 21,000,000 6,000,000 -
Public Art Projects 5/7/2016 1,770,000 867,940 902,060 -
Public Safety 5/7/2016 24,445,000 21,145,000 3,300,000 -
107,650,000 $ 90,547,940 $ 15,102,060 $ 2,000,000
Waterworks and Sewer System Revenue Bonds
Waterworks and Sewer System Revenue Bonds are used to finance the acquisition of major capital
improvements for the City’s water and sewer system and related facilities. Water and Sewer Revenue
Bonds and Refunding Bonds are payable solely from and, equally secured by, a first lien on and pledge
of the net revenue of the City's combined waterworks and sanitary sewer systems.
The City is required by the applicable revenue bond indentures to pledge the net revenues of the Water
and Sewer Enterprise Fund for the retirement of its outstanding revenue bonds, including interest thereon,
and is required to maintain debt service funds and bond reserve funds for all such bonds outstanding.
Funds aggregating $2,634,465 at September 30, 2023, are restricted within the Water and Sewer Enterprise
Fund for servicing of the debt. The respective bond indentures require the City to make equal monthly
payments to the restricted accounts to accumulate the annual principal and interest requirements as
they become due.
The ordinances authorizing the Revenue Bonds stipulate that the City will deposit, in addition to principal
and interest requirements, certain amounts in a reserve fund. Amounts in the reserve fund are to be used
to pay principal and interest on outstanding bonds whenever enough funds are not available in the bond
interest and redemption fund. The bond indentures require that the City accumulate reserves to an
amount equal to the average annual principal and interest requirements of all outstanding bonds
secured by the net revenues of the system. Such reserves are funded up to the required level in equal
monthly installments over a maximum five-year period, as defined in the indentures. Amounts in the
reserve fund at September 30, 2023, of $4,600,250 are adequate to meet the reserve requirements.
City of Allen, Texas
Notes to Financial Statements
63
At September 30, 2023, restricted assets, which include amounts in the Water and Sewer Revenue Bond
Debt Service and the Revenue Bond Reserve Fund, were as follows:
Revenue bond reserve fund 1,978,440$
Revenue bond debt service 2,621,810
4,600,250$
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds 4,600,250$
Accrued interest, payable from restricted assets (320,785)
Current maturities of revenue bonds,
payable from restricted assets (1,645,000)
Reserved for water and sewer revenue bonds principal and interest 2,634,465$
The City complies with the various requirements of the bond ordinances.
Financed Arrangements
The City has acquired office equipment, a building, and land under various agreements accounted for
as financed purchases. As of September 30, 2023, the capitalized costs of business-type property under
financed purchase arrangements were $790,281.
The terms of the financed arrangements range from 3 - 5 years and call for monthly and annual payments
over the life of the agreements. The future minimum payments under financed purchase arrangements
and the net present value of the future minimum payments at September 30, 2023, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total
2024 15,540$ 1,964$ 17,504$
2025 16,311 1,193 17,504
2026 15,663 383 16,046
Total 47,514$ 3,540$ 51,054$
Business-type Activities
Leases
Lessee
The City is a lessee for noncancellable leases of buildings, copiers, and other equipment. The City
recognizes a lease liability, reported with long-term debt, and a right-to-use lease asset (leased asset),
reported with other capital assets, in the government-wide and proprietary fund financial statements. The
City recognizes lease liabilities with total lease payments of $20,000 or more.
City of Allen, Texas
Notes to Financial Statements
64
At the commencement of a lease, the City initially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the
principal portion of lease payments made. The lease asset is initially measured as the initial amount of the
lease liability, adjusted for lease payments made at or before the lease commencement date, plus
certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the shorter
of the lease term or its useful life. Key estimates and judgments related to leases include how the City
determines (1) the discount rate it uses to discount the expected lease payments to present value,
2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the City generally uses its estimated incremental borrowing
rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed
payments, variable payments fixed in substance or that depend on an index or a rate, purchase
option price that the City is reasonably certain to exercise, lease incentives receivable from the
lessor, and any other payments that are reasonably certain of being required based on an
assessment of all relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its leases and will
remeasure the lease asset and liability if certain changes occur that are expected to significantly affect
the amount of the lease liability.
The future principal and interest lease payments as of fiscal year-end are as follows:
Fiscal Year Ending
September 30, Principal Interest Total Principal Interest Total
2024 495,475$ 23,207$ 518,682$ 108,430$ 458$ 108,888$
2025 217,795 8,168 225,963 8,942 6 8,948
2026 111,505 2,051 113,556 - - -
Total 824,775$ 33,426$ 858,201$ 117,372$ 464$ 117,836$
Governmental Activities Business-type Activities
City of Allen, Texas
Notes to Financial Statements
65
Note 6. Interfund Transfers
Individual fund operating transfers for fiscal year ended September 30, 2023, were as follows:
Transfers Out:
General
Fund
Debt Service
Fund
General
Capital
Projects Fund Grants Fund
Water and
Sewer Fund
Allen Event
Center Fund Total
General Fund -$ 3,000,000$ 2,250,000$ 6,990$ -$ 998,325$ 6,255,315$
General Obligation Bond Fund 329,475 - - - - - 329,475
Nonmajor Governmental Funds 99,179 - - - - 350,000 449,179
Water and Sewer Fund 6,060,317 - - - - - 6,060,317
Solid Waste Fund 266,145 - 300,000 - 60,739 - 626,884
Drainage Utility Fund 434,438 - - - - - 434,438
Total 7,189,554$ 3,000,000$ 2,550,000$ 6,990$ 60,739$ 1,348,325$ 14,155,608$
Transfers In:
Transfers are used to move unrestricted funds to finance various programs that the City must account for
in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or
matching funds for various grant programs and to support cash financing of capital projects.
Note 7. Retirement Plan
Plan Description
The City participates as one of 919 plans in the defined benefit cash-balance plan administered by
the Texas Municipal Retirement System (TMRS). TMRS is 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 general administration and management of TMRS with a
six-member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State
of Texas. TMRS issues a publicly available Annual Comprehensive Financial Report (Annual Report) that
can be obtained at 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 a 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.
City of Allen, Texas
Notes to Financial Statements
66
A summary of plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee)2 to 1
Years required for vesting 5
Service retirement eligibility 20 years at any age, 5 years
at age 60 and above
Updated Service Credit 100% Repeating
Annuity Increase to retirees 70% of CPI Repeating
Employees Covered by Benefit Terms:
At the December 31, 2022, valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 346
Inactive employees entitled to, but not yet receiving benefits 573
Active employees 761
Total 1,680
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 were required to contribute 7% of their annual compensation during the fiscal year.
The contribution rates for the City were 14.46% and 14.16% in calendar years 2023 and 2022, respectively.
The City’s contribution to TMRS for the year ended September 30, 2023 was $9,866,638, which exceeded
the required contribution of $9,556,198.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2022, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as
of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2022 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% 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
City of Allen, Texas
Notes to Financial Statements
67
Salary increases are based on a service-related table. Mortality rates for active members are based on
the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table
used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct
2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries
are projected on a fully generational basis by Scale UMP to account for future mortality improvements.
For disabled annuitants, the same mortality tables for healthy retirees are used with a 4- year set-forward
for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is
applied, for males and females respectively, to reflect the impairment for younger members who become
disabled. The rates are projected on a fully generational basis by Scale UMP to account for future
mortality improvements subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience
of TMRS over the four-year period from December 31, 2014 to December 31, 2018. The assumptions were
adopted in 2019 and first used in the December 31, 2019, actuarial valuation. The post-retirement mortality
assumption for Annuity Purchase Rates (APRs) is based on 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 using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. In
determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean
aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative)
with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return
for each major asset class in fiscal year 2023 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Arithmetic)
Global Equity 35.0% 7.70%
Core Fixed Income 6.0% 4.90%
Non-Core Fixed Income 20.0% 8.70%
Other Public and Private Markets 12.0% 8.10%
Real Estate 12.0% 5.80%
Hedge Funds 5.0% 6.90%
Private Equity 10.0% 11.80%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that Member and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was
projected to be available to make all projected future benefit payments of current active and inactive
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.
City of Allen, Texas
Notes to Financial Statements
68
Changes in the Net Pension Liability
Total Pension
Liability
a)
Plan Fiduciary
Net Position
b)
Net Pension
Liability
a) - (b)
Balance at 12/31/2021 274,508,976$ 263,816,091$ 10,692,885$
Changes for the year:
Service cost 10,871,510 - 10,871,510
Interest 18,606,874 - 18,606,874
Difference between expected
and actual experience 5,017,307 - 5,017,307
Change in assumptions - -
Contributions - employer - 9,488,440 (9,488,440)
Contributions - employee - 4,281,593 (4,281,593)
Net investment income - (19,290,735) 19,290,735
Benefit payments, including
refunds of employee contributions (8,574,676) (8,574,676) -
Administrative expense - (166,644) 166,644
Other changes - 198,855 (198,855)
Net changes 25,921,015 (14,063,167) 39,984,182
Balance at 12/31/2022 300,429,991$ 249,752,924$ 50,677,067$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Net Pension Liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s Net Pension Liability would be if it were calculated using a discount rate that is
1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate:
1% Decrease in
Discount Rate
5.75%)
Discount Rate
6.75%)
1% Increase in
Discount Rate
7.75%)
City’s net pension liability 98,275,007$ 50,677,067$ 12,081,307$
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.
City of Allen, Texas
Notes to Financial Statements
69
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2023, the City recognized pension expense in the amount of $14,165,896.
At September 30, 2023, the City reported deferred outflows and inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 6,534,695$ (282,383)$
Changes in actuarial assumptions 71,686 -
Difference between projected and
actual investment earnings 17,232,847 -
Contributions subsequent to the
measurement date 7,489,505 -
Total 31,328,733$ (282,383)$
7,489,505 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:
Measurement
year ending
December 31:
2023 3,279,449$
2024 6,009,945
2025 6,280,420
2026 7,987,031
Total 23,556,845$
Note 8. Water and Sewer Contracts
In 1972, the City entered a forty-year contract with the North Texas Municipal Water District (District) for
the purchase of water. Under the terms of this contract, the City is obligated to make a minimum annual
payment (adjusted annually) in return for a minimum volume of gallons of water per year. During 1998, the
City was annexed into the North Texas Municipal Water District, which guaranteed the City a minimum
volume of water. For the year ended September 30, 2023, the cost of water purchased under this contract
was $21,298,628.
In 1978, the City entered a contract with the District for the transportation, treatment and disposal of
sanitary sewage and other waste. The contract will continue in force at least until all bonds issued by the
District pursuant to the contract have been paid in full and will remain in force thereafter throughout the
useful life of the District’s sanitary sewer system. The contract requires the City to pay varying amounts
based on the costs associated with sewage transported and/or treated and disposed. The cost includes
the City’s proportionate share of the District’s operating and maintenance expenses and related debt
service costs. During fiscal year 2023, the cost for transportation, treatment and disposal of sewage and
other wastes was $11,278,034.
City of Allen, Texas
Notes to Financial Statements
70
Note 9. Deferred Compensation Plan
As a result of legislative changes, all amounts of compensation deferred, all property and rights
purchased, and all income, property or rights are (until paid or made available to the employee or other
beneficiary) held in trust for the exclusive benefit of the participants and their beneficiaries, whereas, prior
to these legislative changes, these amounts were solely the property and rights of the City subject to the
claims of the City’s general creditors. As a result, at September 30, 2023, the deferred compensation
investments are not reported in the City’s financial statements.
Note 10. Risk Management
Health and Dental Insurance
The City provides health and dental insurance benefits to City employees under a modified self-insurance
plan. Under the plan, the City and the employee pay a portion of a predetermined monthly premium,
which is based on the estimated claims cost for the plan and the extent of medical coverage selected
by the employee. To cover annual costs, premium payments are reported as operating revenues of the
Risk Management Fund and operating expenditures/expenses of the participating funds.
A commercial insurance carrier is utilized to adjudicate and pay medical claims on behalf of the City.
The City’s medical claims liability is limited by a stop loss insurance policy that covers individuals’ medical
claims in excess of $125,000 per plan year. Aggregate stop loss coverage of $2,000,000 per plan year
provides protection to limit claim liability for the plan as a whole. The liabilities for insurance claims
reported are based on GASB No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if information prior to the issuance of
the financial statements indicates that it is probable that a liability has been incurred at the date of the
financial statements and the amount of the loss can be reasonably estimated.
These liabilities include an estimate for incurred but not reported claims. The estimated amount at
September 30, 2023, was $1,015,508. Changes in the Risk Management liability during the past five fiscal
years were as follows:
Balance at Current Year Claims Balance at
Year Ending Beginning of and Changes in Claim End of
September 30, Fiscal Year Estimates Payments Fiscal Year
2019 1,064,209$ 8,909,032$ 8,771,234$ 1,202,007$
2020 1,202,007 8,285,276 8,433,972 1,053,311
2021 1,053,311 9,400,218 9,386,807 1,066,722
2022 1,066,722 9,789,575 9,721,444 1,134,853
2023 1,134,853 10,807,931 10,927,276 1,015,508
Workers Compensation & Property and Liability Insurance
The City participates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for workers’
compensation claims, liability (general, automobile, law enforcement, and errors/omissions), and
property insurance. The cost is based on the pool’s claims cost, which is adjusted to reflect the City’s
individual claims experience. As claims arise they are submitted to and paid by TMLIRP. To cover annual
costs, premium payments are reported as operating revenues of the Risk Management Fund and
operating expenditures/expenses of the participating funds.
City of Allen, Texas
Notes to Financial Statements
71
The City has a workers’ compensation deductible of $25,000 per occurrence, with an annual aggregate
deductible of $330,000. During fiscal 2023, the City contributed $959,162 to the Risk Management Fund
for workers’ compensation.
The City has various levels of insurance deductibles for property, liability, and automobile insurance with
the maximum deductible set at $10,000. All insured claims are paid by TMLIRP, less the appropriate
deductible. During fiscal 2023, the City contributed $1,190,136 for property and general liability.
Note 11. Postemployment Benefits Other Than Pensions (OPEB)
City of Allen Retiree Healthcare Plan:
Plan Description and Benefits Provided
In addition to the pension benefits described in Note 7, and as required by state law, the City provides
post-retirement health care benefits for all permanent full-time employees through a single employer
defined benefit medical plan. To be eligible under the plan, a participant must either attain age sixty (60)
and at least five (5) years of TMRS service or be any age with twenty (20) or more years of service. Retirees
must make a one-time irrevocable decision to continue benefits at the time of retirement, after which
their eligibility for this benefit ends. The retiree benefit consists of medical, dental and vision care until age
65. The Allen Retiree Healthcare Plan does not issue a standalone financial report.
Employees who retired on or before December 31, 2012, were “grandfathered” in and allowed to pay
the same blended medical premium rates as COBRA participants, which are the total cost of premiums
no City subsidy) plus 2% administration fees. The retirees are also subject to the same rate increases as
COBRA participants. Employees who retire on or after January 1, 2013, can elect health care coverage
but will be required to pay the (higher) unblended rate. Current OPEB benefits are made on a pay-as-
you-go basis from the Risk Management Fund.
Employees Covered by Benefit Terms
Membership in the defined benefit medical plan consisted of the following at the measurement date of
September 30, 2023:
Inactive employees or beneficiaries currently receiving benefits 5
Active plan members 722
Total members 727
Funding Policy
Due to the significant increase in retiree premium costs, the City elected to create a separate Other
Postemployment Defined Benefit Medical Plan for retirees, effective January 1, 2013. The single employer
defined benefit plan is created by City ordinance and appoints the City Manager as Plan Administrator
for the program. The trust was established with Public Agency Retirement Services Company (PARS) and
is used to accumulate resources to fund future benefits. However, it does not represent the activities of
the plan. Related medical costs are incurred in and paid from the City’s Risk Management Fund. The plan
benefit provisions and obligations to contribute are established by City Council action and are actuarially
determined.
City of Allen, Texas
Notes to Financial Statements
72
Net OPEB Asset
Actuarial Methods and Assumptions - The City’s net OPEB asset was measured as of
October 1, 2021, and the total OPEB asset used to calculate the net OPEB liability (asset) was determined
by an actuarial valuation as of that date, which was rolled forward using standard update procedures to
determine the September 30, 2023 total OPEB asset based on the following actuarial methods and
assumptions:
Actuarial Assumptions
Valuation Date October 1, 2021
Measurement Date September 30, 2023
Discount Rate 4.00%
Inflation 2.00% per annum
Payroll Growth Rate 3.00% per annum
Mortality, Non-Annuitants Sex distinct headcount weighted PUB-2010 general and
safety employees table, with mortality Improvement
scale MP-2021
Mortality, Annuitants Sex distinct headcount weighted PUB-2010 general
retirees table, with mortality improvement scale MP-2021
Healthcare Trend 6.80% initial, decreasing to an ultimate rate of 4.14% in
2043 and later years.
Participation Rate 20% of participants eligible for medical or dental benefits
upon retirement are assumed to elect coverage.
Investment Rate of Return 4.00%, net of OPEB plan investment expenses
The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Domestic Equities 25.0%7.90%
Fixed Income 70.0%5.50%
International Equity 2.0%9.90%
Real Estate 1.0%5.70%
Cash 2.0%2.40%
Total 100.0%
City of Allen, Texas
Notes to Financial Statements
73
Changes in the Net OPEB Liability (Asset)
Total OPEB
Liability
a)
Plan Fiduciary
Net Position
b)
Net OPEB
Liability (Asset)
a) - (b)
Balance at 09/30/2022 115,036$ 1,066,230$ (951,194)$
Changes for the year:
Interest 1,049 - 1,049
Difference between expected
and actual experience 136,506 - 136,506
Net investment income (loss)- 65,367 (65,367)
Benefit payments (177,594) (283,983) 106,389
Administrative expense - (7,056) 7,056
Net changes (40,039) (225,672) 185,633
Balance at 09/30/2023 74,997$ 840,558$ (765,561)$
1120.79%
Increase (Decrease)
Plan fiduciary net position as a percentage of the Total
OPEB Liability
Sensitivity of the Net OPEB Asset to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB Asset of the City for the City of Allen Retiree Healthcare Plan, as well as
what the City’s net OPEB Asset would be if it were calculated using a discount rate that is 1-percentage-
point lower or 1-percentage-point higher than the current discount rate of 4.00%:
1% Decrease in
Discount Rate
3.00%)
Current
Discount Rate
4.00%)
1% Increase in
Discount Rate
5.00%)
City’s net OPEB (Asset) (764,099)$ (765,561)$ (769,051)$
The following presents the net OPEB Asset of the City for the City of Allen Retiree Healthcare Plan, as well as
what the City’s net OPEB Asset would be if it were calculated using healthcare cost trend rates that is 1-
percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease in
Trend Rate (5.80%)
Healthcare Cost
Trend Rate (6.80%)
1% Increase in
Trend Rate (7.80%)
City’s net OPEB (Asset) (767,475)$ (765,561)$ (761,592)$
City of Allen, Texas
Notes to Financial Statements
74
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended September 30, 2023, the collective OPEB expense of the City of Allen Retiree
Healthcare Plan was a credit of $47,285. At September 30, 2023, the City reported deferred outflows and
deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 121,339$ (232,062)$
Changes in actuarial assumptions 12,824 (97,219)
Difference between projected and
actual investment earnings 81,862 -
Total 216,025$ (329,281)$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as part of OPEB expense as follows.
Measurement
year ending Annual
September 30,Amortization
2024 (21,176)$
2025 (12,612)
2026 66
2027 (32,572)
2028 (30,067)
Thereafter (16,895)
Total (113,256)$
Supplemental Death Benefits Plan:
Plan Description
Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan
known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which
participating member cities may elect, by ordinance, to provide group-term life insurance coverage for
their active members, including or not including retirees. Employers may terminate coverage under and
discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be
effective the following January 1. The City has elected to participate in the SDBF for its active members
including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets,
the SDBF is considered to be an unfunded single-employer OPEB plan (i.e., no assets are accumulated in
a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting.
City of Allen, Texas
Notes to Financial Statements
75
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death). The death benefit for retirees is considered an other postemployment
benefit (“OPEB”) and is a fixed amount of $7,500.
Contributions and Funding Policy
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for
the SDBF program is to assure that adequate resources are available to meet all death benefit payments
for the upcoming year. The intent is to not pre-fund retiree term life insurance during employees’ entire
careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for each
city. The rate is based on the mortality and service experience of all employees covered by the SDBF and
the demographics specific to the workforce of the City. There is a one-year delay between the actuarial
valuation that serves as the basis for the employer contribution rate and the calendar year when the rate
goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet
all death benefit payments for the upcoming year.
The City’s contribution to the TMRS SDBF for retirees for the fiscal year ended September 30, 2023, was
31,627, which was equal to the actuarially determined contribution (ADC).
Summary of Actuarial Assumptions and Other Inputs Used
Inflation 2.5 %
Salary Increases 3.5% to 11.5%, including inflation.
Discount Rate 4.05%, as of December 31, 2022
Administrative Expenses All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
Mortality Rates – service retirees 2019 Municipal Retirees of Texas Mortality Tables. The
rates are projected on a fully generational basis with
scale UMP.
Mortality Rates – disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4
year set-forward for males and a 3 year set-forward for
females. In addition, a 3.5% and 3% minimum mortality
rate will be applied to reflect the impairment for younger
members who become disabled for males and females,
respectively. The rates are projected on a fully
generational basis by Scale UMP to account for future
mortality improvements subject to the floor.
Note: The actuarial assumptions used in the December 31, 2022, valuation was based on the
results of an actuarial experience study for the period December 31, 2014, to December 31, 2018.
City of Allen, Texas
Notes to Financial Statements
76
Employees Covered by Benefit Terms*
At December 31, 2022, the actuarial valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 242
Inactive employees entitled to, but not yet receiving benefits 142
Active employees 761
Total 1,145
Changes in Total OPEB Liability
Total OPEB Liability – beginning of year 2,425,196$
Changes for the year:
Service Cost 176,921
Interest on Total OPEB Liability 46,027
Differences between expected and actual experience 903
Changes in assumptions or other inputs (960,097)
Benefit payments (24,403)
Net Change (760,649)
Total OPEB Liability - end of year 1,664,547$
The City’s total OPEB liability of $1,664,547 was measured at December 31, 2022, and determined by an
actuarial valuation as of that date. Accordingly, no roll-forward is required.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower (3.05%) or 1-percentage-
point higher (5.05%) than the current discount rate:
1.0% Decrease Current 1.0% Increase
in Discount Rate Discount Rate in Discount Rate
3.05%)(4.05%)(5.05%)
Total OPEB Liability 2,028,081$ 1,664,547$ 1,385,316$
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2023, the City recognized OPEB expense of $157,837. OPEB expense
recognized is as follows
Components of OPEB Expense:
Service Cost 176,921$
Interest on Total OPEB Liability 46,027
Differences between expected and actual experience (24,273)
Change in assumptions or other input (40,838)
Total OPEB Expense 157,837$
City of Allen, Texas
Notes to Financial Statements
77
At September 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from
the following sources:
Deferred
outflows of
Resources
Deferred
inflows of
Resources
Contributions made subsequent to measurement date 25,630$ -$
Differences between expected and actual experience 30,282 (127,865)
Changes in assumptions or other inputs 392,242 (846,994)
Total 448,154$ (974,859)$
Deferred outflows of resources in the amount of $25,630 related to OPEB that resulted from contributions
made subsequent to the measurement date but before September 30, 2023, will be recognized as a
reduction of the net OPEB liability in the subsequent fiscal period rather than in the current fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in future OPEB expense as follows:
Year Ending Net deferred outflows/
September 30,(inflows) of resources
2024 (65,113)$
2025 (81,453)
2026 (82,353)
2027 (100,705)
2028 (135,512)
Thereafter (87,199)
Total (552,335)$
Combined Totals for Retiree Healthcare Plan and Supplemental Death Benefits Plan
The combined totals for the two OPEB plans are as follows:
Retiree
Healthcare
Plan SDBF Total
OPEB asset 765,561$ -$ 765,561$
OPEB liability - (1,664,547) (1,664,547)
Deferred inflows (329,281) (974,859) (1,304,140)
Deferred outflows 216,025 448,154 664,179
OPEB expense (credit)(47,285) 157,837 110,552
City of Allen, Texas
Notes to Financial Statements
78
Note 12. Tax Abatements and Economic Incentives
The City enters into economic development agreements designed to promote development and
redevelopment within the City, spur economic improvement, stimulate commercial activity, generate
additional sales tax, and enhance the property tax base and economic vitality of the City. These
programs abate or rebate property and sales taxes and include incentive payments and rebates of fees
that are not tied to taxes. The City’s economic development agreements are authorized under
Chapter 380 of the Texas Local Government Code, Chapter 311 (Tax Increment Financing Act), and 312
Property Redevelopment and Tax Abatement Act) of the Texas Tax Code. Recipients may be eligible to
receive economic assistance based on the employment impact, economic impact, or community
impact of the project requesting assistance. Recipients of assistance generally commit to building or
remodeling real property and related infrastructure, demolishing and redeveloping outdated properties,
expanding operations, renewing facility leases, or bringing targeted businesses to the City. Agreements
generally contain recapture provisions that may require repayment or termination if recipients do not
meet the required provisions of the economic incentives. The following are the three categories of
economic development agreements City has contracted:
General Economic Development -The City, Allen Economic Development Corporation, and Allen
Community Development Corporation enter into various agreements under Chapter 380 of the Texas
Local Government Code to stimulate economic development. Agreements may rebate a flat amount
or percentage of property taxes or sales tax received, may result in fee reductions or rebates, or make
lump sum payments to offset moving expenses, tenant finish-outs, demolition costs, infrastructure
reimbursements, redevelopment costs or other expenses. During fiscal year 2023, the City rebated
6,294,615 in taxes. Additionally, for fiscal year 2023, the Allen Economic Development Corporation
rebated taxes in the amount of $176,227 and made incentive payments of $3,747,898, while the Allen
Community Development Corporation rebated taxes in the amount of $176,227, and made an grant
payment of $15,000.
Tax Abatements - Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to designate
tax reinvestment zones and negotiate tax abatement agreements with applicants. These abatement
agreements authorize the appraisal districts to reduce the assessed value of the taxpayer’s property by
a percentage specified in the agreement, and the taxpayer pays taxes on the lower assessed value
during the term of the agreement. Property taxes abated under this program were $83,070 for the fiscal
year ended September 30, 2023.
Tax Increment Financing -The City has adopted two Tax Increment Financing (TIF) zones under Chapter
311 of the Texas Tax Code. The City enters into economic development and infrastructure reimbursement
agreements that earmark TIF revenues for payment to developers and represent obligations over the life
of the TIF or until all terms of the agreements have been met. Additionally, the City may enter into general
economic development agreements, under Chapter 380 of the Texas Local Government Code, which
are funded with TIF resources. The City made $779,018 in payments for TIF obligations during fiscal year
2023.
Note 13. Commitments and Contingent Liabilities
Federal Grants -The City participates in several State and Federal assisted grant programs. Amounts
received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the Federal Government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the City expects such amounts, if any, to be
immaterial.
City of Allen, Texas
Notes to Financial Statements
79
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
Economic Development Grant -The City has several economic development agreements whereby the
City has agreed to pay a grant(s) to a developer and/or business in return for the design, construction,
operating, and/or managing of the business within the City of Allen. All grants are performance based
and do not constitute liabilities on the City’s financial records.
80
81
Required Supplementary
Information
City of Allen, Texas Exhibit A-1
Schedule of Changes in Total OPEB Liability and Related Ratios -
Supplemental Death Benefits Fund
Last Six Measurement Years
82
2022*2021*2020*2019*2018*2017*
Total OPEB liability:
Service cost 176,921$ 170,331$ 126,390$ 94,165$ 97,628$ 83,658$
Interest (on the total pension liability)46,027 44,623 49,783 56,186 45,926 42,992
Changes in benefit terms - - - - - -
Difference in expected and actual experience 903 (7,796) (78,736) (183,037) 101,506 -
Change in assumptions or other inputs (960,097) 83,821 315,925 317,781 (111,311) 121,271
Benefit payments **(24,403) (23,494) (5,495) (5,231) (4,881) (4,648)
Net change in total OPEB liability (760,649) 267,485 407,867 279,864 128,868 243,273
Total OPEB liability, beginning of year 2,425,196 2,157,711 1,749,844 1,469,980 1,341,112 1,097,839
Total OPEB liability, end of year 1,664,547$ 2,425,196$ 2,157,711$ 1,749,844$ 1,469,980$ 1,341,112$
Covered-employee payroll 61,007,654$ 58,734,814$ 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$
Total OPEB liability as a percentage of covered-employee payroll 2.73%4.13%3.93%3.34%3.01%2.89%
Notes to Schedule:
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
Due to the SDBP being considered an unfunded plan under GASB 75, benefit payments
are treated as being equal to the employer's yearly contributions for retirees.
There are no assets accumulated in trust to pay related benefits for the OPEB Plan.
City of Allen, Texas Exhibit A-2
Schedule of OPEB Contributions -
Supplemental Death Benefits Fund
Last Six Fiscal Years
83
2023*2022*2021*2020*2019*2018*
Actuarially determined contributions 31,627$ 24,889$ 18,595$ 5,394$ 5,156$ 4,778$
Contributions in relation to actuarially determined contribution 31,627 24,889 18,595 5,394 5,156 4,778
Contributions deficiency (excess)-$ -$ -$ -$ -$ -$
Covered-employee payroll 66,253,024$ 62,223,037$ 58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$
Contributions as a percentage of covered-employee payroll 0.05%0.04%0.03%0.01%0.01%0.01%
Notes to Schedule of OPEB Contributions
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
GASB 75, paragraph 57, requires that the data in this schedule be presented as of the
City’s fiscal year as opposed to the time period covered by the measurement date.
Fiscal Year Ended September 30,
City of Allen, Texas Exhibit A-3
Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios -
Defined Benefit Retiree Healthcare Plan
Last Six Measurement Years
84
Measurement Year Ended September 30,
2023*2022*2021*2020*2019*2018*
Total OPEB liability
Interest (on the total OPEB liability)1,049$ 6,770$ 21,215$ 29,520$ 38,887$ 41,469$
Difference in expected and actual experience 136,506 (255,282) - (5,299) - (91,701)
Change in assumptions - (25,531) - (120,997) 28,859 (30,415)
Benefit payments (177,594) (70,906) (183,188) (49,154) (155,176) 29,767
Net change in total OPEB liability (40,039) (344,949) (161,973) (145,930) (87,430) (50,880)
Total OPEB liability, beginning of year 115,036 459,985 621,958 767,888 855,318 906,198
Total OPEB liability, end of year (a)74,997$ 115,036$ 459,985$ 621,958$ 767,888$ 855,318$
Plan fiduciary net position:
Net investment income (loss)65,367$ (179,315)$ 116,827$ 99,920$ 66,177$ 94,484$
Benefit payments (283,983) (86,570) (222,665) (212,086) (142,438) (252,781)
Administrative expense (7,056) (7,943) (8,523) (9,065) (8,119) (10,442)
Net change in plan fiduciary net position (225,672) (273,828) (114,361) (121,231) (84,380) (168,739)
Plan fiduciary net position - beginning 1,066,230 1,340,058 1,454,419 1,575,650 1,660,030 1,828,769
Plan fiduciary net position - ending (b)840,558$ 1,066,230$ 1,340,058$ 1,454,419$ 1,575,650$ 1,660,030$
Plan Net OPEB liability (asset) - ending (a) - (b)(765,561)$ (951,194)$ (880,073)$ (832,461)$ (807,762)$ (804,712)$
Plan fiduciary net position as a % of total OPEB (liability) asset 1120.79%926.87%291.33%233.85%205.19%194.08%
Covered payroll 64,089,728$ 62,223,037$ 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Net OPEB liability (asset) as a % of covered payroll -1.19%-1.53%-1.51%-1.54%-1.69%-1.94%
Notes to Schedule:
Benefit changes. There have been no material benefit changes during the valuation periods shown above.
Changes in assumptions . There have been no material benefit changes during the valuation period.
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
City of Allen, Texas Exhibit A-4
Schedule of OPEB Contributions -
Defined Benefit Retiree Healthcare Plan
Last Six Fiscal Years
85
2023*2022*2021*2020*2019*2018*
Actuarially determined contributions -$ -$ -$ -$ -$ -$
Contributions in relation to actuarially determined contribution - - - - - -
Contributions deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 64,089,728$ 62,223,037$ 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Contributions as a percentage of covered payroll 0.00%0.00%0.00%0.00%0.00%0.00%
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Notes to Schedule of OPEB Contributions
Valuation Date:The Actuarially Determined Contribution is the sum of the current year's
normal cost plus an amount necessary to amortize the unfunded liability
over a closed 19-year period. Actuarial valuations have been performed
biennially as of October 1. The most recent valuation was performed
as of October 1, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry age, level percentage of salary
Amortization Method Level dollar
Amortization Period N/A
Asset Valuation Method Market value of assets
Inflation 2.25% per annum
Healthcare cost trend rates 6.80% initial, decreasing to an ultimate rate of 4.14% in the year 2043
Investment Rate of Return 4.0%, net of OPEB plan investment expense
Retirement Age Rates are the same as those used for the TMRS retirement plan
Mortality Sex distinct headcount weighted PUB-2010 general safety employees mortality
tables and general retirees table in conjunction with mortality improvement
scale MP-2021
Fiscal Year Ended September 30,
City of Allen, Texas Exhibit A-5
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS)
Last Nine Measurement Years
86
2022*2021*2020*2019*2018*2017*2016*2015*2014*
Total pension liability:
Service cost 10,871,510$ 10,401,936$ 9,715,534$ 9,118,332$ 8,503,427$ 8,091,540$ 7,740,829$ 7,377,440$ 6,407,942$
Interest (on the total pension liability)18,606,874 17,039,222 15,828,804 14,492,431 13,379,960 12,232,446 11,165,087 10,562,818 9,749,386
Difference in expected and actual experience 5,017,307 4,068,814 - 1,564,808 (680) 1,293,282 894,580 196,259 (1,791,341)
Change in assumptions - - (735,396) 409,038 - - - (231,950) -
Benefit payments, including refunds of
employee contributions (8,574,676) (8,465,892) (5,974,169) (6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435) (3,213,118)
Net change in total pension liability 25,921,015 23,044,080 18,834,773 19,388,613 16,660,477 17,193,500 15,898,007 14,657,132 11,152,869
Total pension liability, beginning of year 274,508,976 251,464,896 232,630,123 213,241,510 196,581,033 179,387,533 163,489,526 148,832,394 137,679,525
Total pension liability, end of year 300,429,991$ 274,508,976$ 251,464,896$ 232,630,123$ 213,241,510$ 196,581,033$ 179,387,533$ 163,489,526$ 148,832,394$
Plan fiduciary net position:
Contributions -employer 9,488,440$ 8,906,713$ 8,425,764$ 8,050,585$ 7,423,200$ 7,130,557$ 6,473,617$ 6,063,051$ 5,455,902$
Contributions -employee 4,281,593 4,111,437 3,850,652 3,661,981 3,423,774 3,274,594 3,129,050 3,021,766 2,754,779
Net investment income (19,290,735) 29,958,269 15,770,860 27,097,746 (5,239,779) 20,569,321 9,039,319 188,559 6,648,346
Benefit payments, including refunds of
employee contributions (8,574,676) (8,465,892) (5,974,168) (6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435) (3,213,118)
Administrative expense (166,644) (138,398) (101,906) (152,888) (101,162) (106,520) (102,024) (114,830) (69,397)
Other 198,855 949 (3,976) (4,592) (5,285) (5,400) (5,497) (5,671) (5,706)
Net change in plan fiduciary net position (14,063,167) 34,373,078 21,967,226 32,456,836 278,518 26,438,784 14,631,976 5,905,440 11,570,806
Plan fiduciary net position - beginning 263,816,091 229,443,013 207,475,787 175,018,951 174,740,433 148,301,649 133,669,673 127,764,233 116,193,427
Plan fiduciary net position - ending 249,752,924$ 263,816,091$ 229,443,013$ 207,475,787$ 175,018,951$ 174,740,433$ 148,301,649$ 133,669,673$ 127,764,233$
Net pension liability - ending 50,677,067$ 10,692,885$ 22,021,883$ 25,154,336$ 38,222,559$ 21,840,600$ 31,085,884$ 29,819,853$ 21,068,161$
Plan fiduciary net position as a % of total pension liability 83.13%96.10%91.24%89.19%82.08%88.89%82.67%81.76%85.84%
Covered payroll 61,007,354$ 58,734,814$ 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$ 44,410,952$ 43,142,910$ 39,335,988$
Net pension liability as a % of covered payroll 83.07%18.21%40.07%48.08%78.30%46.99%70.00%69.12%53.56%
GASB 68 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Measurement Year Ended December 31,
City of Allen, Texas Exhibit A-6
Schedule of Contributions –
Retirement Plan (TMRS)
Last Nine Fiscal Years
87
2023*2022*2021*2020*2019*2018*2017*2016*2015*
Actuarially determined contributions 9,556,198$ 8,810,782$ 8,333,070$ 7,555,689$ 7,228,643$ 6,678,295$ 6,217,858$ 6,028,939$ 5,785,220$
Actual contributions (9,866,638) (8,810,782) (8,739,669) (7,890,278) (7,736,900) (6,927,485) (6,545,488) (6,181,797) (5,797,651)
Contributions deficiency (excess)(310,440)$ -$ (406,599)$ (334,589)$ (508,257)$ (249,190)$ (327,630)$ (152,858)$ (12,431)$
Covered payroll 66,253,024$ 66,253,024$ 58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$ 45,962,313$ 43,564,466$ 40,985,314$
Ratio of actual contributions to covered payroll amount 14.89%13.30%14.97%14.63%15.00%14.50%14.24%14.19%14.15%
GASB 68 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Notes to Schedule
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 23 Years (longest amortization ladder)
Asset Valuation Method 10 years smoothed fair value; 12% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 11.5% including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated
for the 2019 valuation pursuant to an experience study of the period 2014 - 2018
Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected
on a fully generational basis with scale UMP.
Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the
General Employee table used for females. The rates are projected on a fully generational
basis with scale UMP.
Other information:There were no benefit changes during the year.
Fiscal Year Ended September 30,
Actuarial determined contribution rates are calculated as of December 31st each
year and become effective in January 13 months later.
City of Allen, Texas Exhibit A-7
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2023
88
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes, penalties and interest 58,288,131$ 58,288,131$ 58,160,407$ (127,724)$
Municipal sales tax 29,742,582 29,764,327 29,267,736 (496,591)
Franchise taxes 6,812,426 7,398,218 7,454,546 56,328
Licenses, permits and fees 2,989,565 2,556,605 3,520,343 963,738
Charges for services 5,626,046 5,228,355 5,273,847 45,492
Fines 1,349,588 1,349,588 1,298,422 (51,166)
Gifts and contributions 2,517,596 2,525,996 2,565,742 39,746
Intergovernmental 340,804 370,706 587,251 216,545
Investment earnings 1,157,956 2,654,200 4,124,625 1,470,425
Miscellaneous 2,023,984 2,996,314 2,929,119 (67,195)
Total revenues 110,848,678 113,132,440 115,182,038 2,049,598
EXPENDITURES
Current:
General government 24,092,410 24,098,321 23,891,282 207,039
Public safety 55,842,190 56,471,590 56,106,863 364,727
Public works 7,623,497 6,687,873 6,152,353 535,520
Culture and recreation 23,089,569 23,437,073 21,411,786 2,025,287
Community development 4,568,605 4,651,342 4,034,780 616,562
Capital Outlay 262,000 1,651,441 519,281 1,132,160
Debt Service
Principal retirement 497,843 497,843 476,269 21,574
Interest and fiscal charges 40,814 40,814 40,814 -
Total expenditures 116,016,928 117,536,297 112,633,428 4,902,869
Excess (deficiency) of revenues
over (under) expenditures (5,168,250) (4,403,857) 2,548,610 6,952,467
OTHER FINANCING SOURCES (USES)
Transfers in 7,189,554 7,189,554 7,189,554 -
Transfers out (2,031,304) (2,783,794) (6,255,315) (3,471,521)
Right-to-use leases - - 280,177 280,177
Sale of capital assets 10,000 10,000 5,163 (4,837)
Total other financing sources (uses)5,168,250 4,415,760 1,219,579 (3,196,181)
NET CHANGE IN FUND BALANCE - 11,903 3,768,189 3,756,286
FUND BALANCES, BEGINNING OF YEAR 28,779,924 28,779,924 28,779,924 -
FUND BALANCES, END OF YEAR 28,779,924$ 28,791,827$ 32,548,113$ 3,756,286$
Budgeted Amounts
City of Allen, Texas Exhibit A-8
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2023
89
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 5,615,278$ 9,525,474$ 6,874,425$ (2,651,049)$
Total revenues 5,615,278 9,525,474 6,874,425 (2,651,049)
EXPENDITURES
Current:
Public safety 23,474 63,248 15,294 47,954
Public works 3,567,434 4,198,023 2,614,305 1,583,718
Culture and recreation 28,870 29,283 28,033 1,250
Community development 2,000,000 5,241,910 4,223,783 1,018,127
Total expenditures 5,619,778 9,532,464 6,881,415 2,651,049
Deficiency of revenues
under expenditures (4,500) (6,990) (6,990) -
OTHER FINANCING SOURCES
Transfers in 4,500 6,990 6,990 -
Total other financing sources 4,500 6,990 6,990 -
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCES, BEGINNING OF YEAR 238,514 238,514 238,514 -
FUND BALANCES, END OF YEAR 238,514$ 238,514$ 238,514$ -$
Budgeted Amounts
City of Allen, Texas
Notes to Required Supplementary Information
For the Year Ended September 30, 2023
90
Budgetary Information
The City Council adheres to the following procedures in establishing the budgets reflected in the financial
statements:
1. Each year the City Manager is required to submit to the City Council a proposed budget for the
fiscal year beginning on the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to each October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. Annual budgets are legally adopted for the General Fund, Grants Fund and Debt Service Fund
on a basis consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is not employed for proprietary funds. However, the City
adopts an annual budget for those funds for managerial control purposes.
5. The City Manager is authorized to adjust budgeted amounts. However, such revisions may not
result in total expenditures (appropriations) in excess of budgeted expenditures without approval
of the City Council. Therefore, the legal level of budgetary control is the combined total budgeted
expenditures for all fund types.
6. Formal budgetary integration is not employed for nonmajor Special Revenue Funds, Proprietary
Funds or Capital Projects Funds. However, the City also adopts an annual budget for those funds
for managerial control purposes.
7. Budgetary data for the non-major Special Revenue Funds and Capital Projects Funds has not
been presented in the accompanying basic financial statements because such funds are
budgeted over the life of the respective grant or project and not on an annual basis. Budgetary
information for the Proprietary Funds has not been presented since reporting on such budgets is
not legally required.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — General
Fund and Grants Fund present a comparison of budgetary data to actual results. The General Fund and
Grants Fund utilizes the same basis of accounting for both budgetary purposes and actual results.
91
Combining and Budgetary
Comparison Schedules
92
City of Allen, Texas Exhibit B-1
Budgetary Comparison Schedule
Debt Service Fund
For the Year Ended September 30, 2023
93
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes 16,171,085$ 16,171,085$ 15,907,229$ (263,856)$
Investment earnings 21,282 237,326 434,592 197,266
Total revenues 16,192,367 16,408,411 16,341,821 (66,590)
EXPENDITURES
Principal retirement 11,165,000 11,165,000 11,165,000 -
Interest and fiscal charges 5,161,525 5,161,525 5,158,991 2,534
Total expenditures 16,326,525 16,326,525 16,323,991 2,534
Excess (deficiency) of revenues
over (under) expenditures (134,158) 81,886 17,830 (64,056)
OTHER FINANCING SOURCES
Transfers in - - 3,000,000 3,000,000
Total other financing sources - - 3,000,000 3,000,000
NET CHANGE IN FUND BALANCES (134,158) 81,886 3,017,830 2,935,944
FUND BALANCE, BEGINNING OF YEAR 920,207 920,207 920,207 -
FUND BALANCE, END OF YEAR 786,049$ 1,002,093$ 3,938,037$ 2,935,944$
Budgeted Amounts
94
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Hotel Occupancy Tax Fund – To account for funds received from hotel occupancy tax and expend as
allowed by state law.
Asset Forfeiture Fund –- To account for activities associated with assets legally seized and forfeited.
Special Revenue Fund – To account for monies that have external legal restrictions associated with their
use.
Gift Permanent Fund – To account for funds received through substantial gifts from the public.
Park Dedication Fund – To account for funds received and expended for the acquisition of additional
park land and for the development of neighborhood parks.
Tax Increment Financing Fund – To account for the tracking of property tax and sales tax revenue and
associated expenses for the City’s Tax Increment Financing agreements.
City of Allen, Texas Exhibit B-2
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2023
95
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
ASSETS
Cash and cash equivalents 2,111,369$ 165,192$ 549,347$ 321,314$ 1,849,269$ 6,710,921$ 11,707,412$
Investments 414,754 - 840,236 - - 5,144,242 6,399,232
Accounts receivable 200,207 - 26,318 - - - 226,525
Accrued interest 1,916 - 3,882 - - 23,835 29,633
TOTAL ASSETS 2,728,246$ 165,192$ 1,419,783$ 321,314$ 1,849,269$ 11,878,998$ 18,362,802$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 15,833$ 10,575$ 82,818$ 6,501$ -$ -$ 115,727$
Accrued liabilities 85,369 66,308 - - - - 151,677
Retainage payable - - 20,732 - - - 20,732
TOTAL LIABILITIES 101,202 76,883 103,550 6,501 - - 288,136
FUND BALANCES
Restricted
Tourism 2,627,044 - - - - - 2,627,044
Asset forfeiture - 88,309 - - - - 88,309
Park acquisition and development - - - - 1,849,269 - 1,849,269
Tax increment financing agreement - - - - - 11,878,998 11,878,998
Court technology and security - - 136,756 - - - 136,756
Juvenile case manager - - 1,168 - - - 1,168
PEG fees - - 717,668 - - - 717,668
Radio system - - 460,641 - - - 460,641
Public safety and library enhancements - - - 314,813 - - 314,813
TOTAL FUND BALANCES 2,627,044 88,309 1,316,233 314,813 1,849,269 11,878,998 18,074,666
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 2,728,246$ 165,192$ 1,419,783$ 321,314$ 1,849,269$ 11,878,998$ 18,362,802$
Special Revenue
City of Allen, Texas Exhibit B-3
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2023
96
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
REVENUES
Ad valorem taxes, penalties and interest -$ -$ -$ -$ -$ 2,392,430$ 2,392,430$
Franchise taxes - - 118,843 - - - 118,843
Municipal sales tax - - - - - 213,224 213,224
Licenses, permits, and fees 18,263 - - - 226,395 - 244,658
Fines - - 107,630 - - - 107,630
Hotel / motel taxes 2,382,951 - - - - - 2,382,951
Intergovernmental - - - - - 209,892 209,892
Investment earnings 77,045 9,344 55,223 10,360 72,620 366,167 590,759
Miscellaneous - 88,283 - - - - 88,283
Total revenues 2,478,259 97,627 281,696 10,360 299,015 3,181,713 6,348,670
EXPENDITURES
General government - - 54,948 - - 809,016 863,964
Public safety - 77,285 - 14,350 - - 91,635
Culture and recreation 1,977,840 - - 11,083 1,792 - 1,990,715
Capital outlay - 36,870 449,679 67,463 148,147 - 702,159
Total expenditures 1,977,840 114,155 504,627 92,896 149,939 809,016 3,648,473
Excess (deficiency) of revenues
over (under) expenditures 500,419 (16,528) (222,931) (82,536) 149,076 2,372,697 2,700,197
OTHER FINANCING SOURCES (USES)
Transfers out (350,000) - (99,179) - - - (449,179)
Sale of capital assets - 10,083 - - - - 10,083
Total other financing sources (uses)(350,000) 10,083 (99,179) - - - (439,096)
NET CHANGE IN FUND BALANCES 150,419 (6,445) (322,110) (82,536) 149,076 2,372,697 2,261,101
FUND BALANCES, BEGINNING OF YEAR 2,476,625 94,754 1,638,343 397,349 1,700,193 9,506,301 15,813,565
FUND BALANCES, END OF YEAR 2,627,044$ 88,309$ 1,316,233$ 314,813$ 1,849,269$ 11,878,998$ 18,074,666$
SPECIAL REVENUE
97
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for financing of services provided by one department to
other departments of the City on a cost-reimbursement basis.
Replacement Fund - accounts for the costs associated with the acquisition of vehicles, machinery,
and equipment through the rental of such items to other departments.
Risk Management Fund – accounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their
covered dependents.
Facility Maintenance Fund - The Facility Maintenance Fund accumulates resources to address large
repairs and aging facility infrastructure. The accumulation of resources will help address major building
repairs and prevent building deterioration.
City of Allen, Texas Exhibit C-1
Combining Statement of Net Position
Internal Service Funds
September 30, 2023
98
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 16,596,318$ 5,779,314$ 1,158,791$ 23,534,423$
Investments 6,957,534 7,165,709 642,614 14,765,857
Accounts receivable - 121,224 - 121,224
Accrued interest receivable 32,147 33,172 2,969 68,288
Prepaid items - 121,924 - 121,924
Total current assets 23,585,999 13,221,343 1,804,374 38,611,716
CAPITAL ASSETS
Machinery and equipment 6,438,578 - - 6,438,578
Vehicles 21,675,934 - - 21,675,934
Construction in progress 266,977 - - 266,977
Accumulated depreciation (20,103,016) - - (20,103,016)
Capital assets,
net of accumulated depreciation 8,278,473 - - 8,278,473
TOTAL ASSETS 31,864,472 13,221,343 1,804,374 46,890,189
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable and other accrued liabilities 950,964 282,721 177,212 1,410,897
Incurred but not reported claims - 1,015,508 - 1,015,508
TOTAL LIABILITIES 950,964 1,298,229 177,212 2,426,405
NET POSITION
Net investment in capital assets 8,246,153 - - 8,246,153
Unrestricted 22,667,355 11,923,114 1,627,162 36,217,631
TOTAL NET POSITION 30,913,508$ 11,923,114$ 1,627,162$ 44,463,784$
City of Allen, Texas Exhibit C-2
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2023
99
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
OPERATING REVENUES
Charges for services 5,787,863$ 13,903,823$ -$ 19,691,686$
Other income 396,000 1,188,881 734,428 2,319,309
Total operating revenues 6,183,863 15,092,704 734,428.00 22,010,995
OPERATING EXPENSES
Personal services - 560,205 - 560,205
Contractual services 24,000 13,044,966 - 13,068,966
Maintenance - - 1,252,213 1,252,213
Supplies 741,689 - - 741,689
Depreciation 2,329,005 - - 2,329,005
Total operating expenses 3,094,694 13,605,171 1,252,213 17,952,078
OPERATING INCOME (LOSS)3,089,169 1,487,533 (517,785) 4,058,917
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 885,612 485,609 76,615 1,447,836
Loss on disposal of capital assets (856,279) - - (856,279)
Total non-operating revenues (expenses)29,333 485,609 76,615 591,557
CHANGE IN FUND NET POSITION 3,118,502 1,973,142 (441,170) 4,650,474
NET POSITION, BEGINNING OF YEAR 27,795,006 9,949,972 2,068,332 39,813,310
NET POSITION, END OF YEAR 30,913,508$ 11,923,114$ 1,627,162$ 44,463,784$
City of Allen, Texas Exhibit C-3
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2023
100
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds 6,183,863$ 14,988,191$ -$ 21,172,054$
Cash paid to employees for services - (556,277) - (556,277)
Cash paid for goods and services (18,798) (3,329,605) (545,708) (3,894,111)
Cash paid for claims - (9,840,863) - (9,840,863)
Net cash provided by (used in) operating activities 6,165,065 1,261,446 (545,708) 6,880,803
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (4,034,657) - - (4,034,657)
Proceeds from sale of capital assets 38,300 - - 38,300
Net cash used in capital and related financing activities (3,996,357) - - (3,996,357)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities 1,761,744 1,626,021 201,786 3,589,551
Interest on investments 569,168 214,453 8,322 791,943
Net cash provided by investing activities 2,330,912 1,840,474 210,108 4,381,494
NET CHANGE IN CASH AND CASH EQUIVALENTS 4,499,620 3,101,920 (335,600) 7,265,940
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 12,096,698 2,677,394 1,494,391 16,268,483
CASH AND CASH EQUIVALENTS, END OF YEAR 16,596,318$ 5,779,314$ 1,158,791$ 23,534,423$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income (loss)3,089,169$ 1,487,533$ (517,785)$ 4,058,917$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 2,329,005 - - 2,329,005
Change in assets and liabilities:
Accounts receivable - (104,513) - (104,513)
Prepaids - (39,370) - (39,370)
Liabilities 746,891 (82,204) (27,923) 636,764
Total adjustments 3,075,896 (226,087) (27,923) 2,821,886
Net cash provided by (used in) operating activities 6,165,065$ 1,261,446$ (545,708)$ 6,880,803$
NON-CASH INVESTING ACTIVITIES
Change in the fair value of investments 320,250$ 291,649$ 68,646$ 680,545$
101
Discretely Presented Component Units
Allen Economic Development Corporation (AEDC) – AEDC is a legally separate entity from the City and is
responsible for aiding, promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) – ACDC is a legally separate entity from the City and
is responsible for supporting the improvements in community parks and recreation, streets and sidewalks,
public safety and the community library.
City of Allen, Texas Exhibit D-1
Balance Sheet
Allen Economic Development Corporation
September 30, 2023
102
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9,626,648$
Investments 5,413,183
Sales tax receivable 2,511,489
Accrued interest receivable 25,011
Prepaid items 5,000
TOTAL ASSETS 17,581,331$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 107,787$
Accrued and other liabilities 19,519
TOTAL LIABILITIES 127,306
FUND BALANCE
Restricted
Debt service 2,268,523
Unassigned 15,185,502
TOTAL FUND BALANCE 17,454,025
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 17,581,331$
City of Allen, Texas Exhibit D-2
Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position
Allen Economic Development Corporation
September 30, 2023
103
Total fund balance of governmental fund balance sheet 17,454,025$
Amounts reported for governmental activities in the statement of net position
are different because:
Deferred charges on refunding represent a consumption of net position that applies
to future periods and, therefore, will not be recognized as an outflow of resources
until then. The amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt. 129,925
Interest payable on long-term debt does not require current financial resources.
Accordingly, interest payable is not reported as a liability on the governmental
funds balance sheet.(25,076)
Long-term liabilities, including bonds payable are not due and payable in the
current period and, accordingly, are not reported in the fund financial statements.(9,056,582)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and, accordingly, are not reported on the
governmental funds balance sheet.35,857,423
Net position of governmental activities 44,359,715$
City of Allen, Texas Exhibit D-3
Statement of Revenues, Expenditures,
and Change in Fund Balance
Allen Economic Development Corporation
For the Year Ended September 30, 2023
104
REVENUES
Sales and other taxes 14,474,185$
Investment earnings 42,068
Miscellaneous 455,444
Total revenues 14,971,697
EXPENDITURES
Current:
Economic development 6,170,678
Capital projects:
Economic development 22,293,725
Debt service:
Principal retirement 1,305,000
Interest and fiscal charges 374,043
Total expenditures 30,143,446
Deficiency of revenues under expenditures (15,171,749)
NET CHANGE IN FUND BALANCE (15,171,749)
FUND BALANCE, BEGINNING OF YEAR 32,625,774
FUND BALANCE, END OF YEAR 17,454,025$
City of Allen, Texas Exhibit D-4
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities
Allen Economic Development Corporation
For the Year Ended September 30, 2023
105
Net change in fund balance - total governmental fund (15,171,749)$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense.22,293,725
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Accordingly, depreciation
expense is not reported as expenditures in the governmental funds.(50,205)
The payment of the principal of long-term debt consumes the current financial resources
of governmental funds. Also, governmental funds report the effect of premiums, discounts,
and similar items when debt is first issued. However, these amounts are amortized
in the government-wide financial statements:
Bond principal retirement 1,305,000$
Amortization of bond premiums 72,895
Amortization of deferred charges on refunding (137,212)1,240,683
Current year changes in accrued interest payable do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.5,907
Change in net position of governmental activities 8,318,361$
City of Allen, Texas Exhibit D-5
Balance Sheet
Allen Community Development Corporation
September 30, 2023
106
ASSETS
CURRENT ASSETS
Cash and cash equivalents 11,949,182$
Investments 16,834,260
Sales tax receivable 2,511,489
Accounts receivable 7,054
Accrued interest receivable 77,782
TOTAL ASSETS 31,379,767$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 1,194,697$
Retainage payable 258,134
Accrued and other liabilities 4,602
TOTAL LIABILITIES 1,457,433
FUND BALANCES
Restricted
Debt service 2,416,900
Unassigned 27,505,434
TOTAL FUND BALANCE 29,922,334
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 31,379,767$
City of Allen, Texas Exhibit D-6
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
Allen Community Development Corporation
September 30, 2023
107
Total governmental fund balance 29,922,334$
Amounts reported for governmental activities in the statement of net position
are different because:
Interest payable on long-term debt does not require the use of current financial
resources, and, accordingly, is not reported as a liability on the governmental
fund balance sheet.(41,524)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.(18,865,000)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and, therefore, are not reported on the
governmental fund balance sheet.49,914,357
Net position of governmental activities 60,930,167$
City of Allen, Texas Exhibit D-7
Statement of Revenues, Expenditures,
and Change in Fund Balance
Allen Community Development Corporation
For the Year Ended September 30, 2023
108
REVENUES
Sales and other taxes 14,474,185$
Investment earnings 644,997
Miscellaneous 198,888
Total revenues 15,318,070
EXPENDITURES
Current:
Community development 5,536,594
Capital projects:
Community development 8,128,685
Debt service:
Principal retirement 1,850,000
Interest and fiscal charges 561,311
Total expenditures 16,076,590
Deficiency of revenues under expenditures (758,520)
NET CHANGE IN FUND BALANCE (758,520)
FUND BALANCE, BEGINNING OF YEAR 30,680,854
FUND BALANCE, END OF YEAR 29,922,334$
City of Allen, Texas Exhibit D-8
Reconciliation of the Governmental Fund Statement
of Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities
Allen Community Development Corporation
For the Year Ended September 30, 2023
109
Net change in fund balance - total governmental fund (758,520)$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense.8,128,685
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. However, these amounts are amortized in the
government-wide financial statements.(243,040)
Current year changes in accrued interest payable do not require the use of current
financial resources and, accordingly, are not reported as expenditures in
governmental funds.5,189
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Accordingly, depreciation
expense is not reported as expenditures in the governmental funds.(3,551,356)
Repayment of the principal on long-term debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net position. 1,850,000
Change in net position of governmental activities 5,430,958$
110
111
Statistical Section
Unaudited)
112
113
Contents Table #s
Financial Trends 1, 2, 3 & 4
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity 5, 6, 7 & 8
These tables contain information to help the reader assess the City's two most significant local
revenue sources, the property and sales taxes.
Debt Capacity 9, 10, 11 & 12
These tables present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Economic and Demographic Information 13 & 14
These tables offer economic and demographic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information 15, 16 & 17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides.
STATISTICAL SECTION
This part of the City of Allen's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, notes disclosures, and required supplementary
information says about the City's overall financial health. This information has not been audited by the
independent auditor.
Source: Unless otherwise noted, the information in these tables is derived from the annual comprehensive
financial reports for the relevant year.
City of Allen, Texas Table 1
Net Position by Component
Last Ten Fiscal Years
Accrual Basis of Accounting)
Unaudited)
114
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 363,168,607$ 355,756,224$ 364,667,251$ 366,322,218$ 379,153,944$ 391,261,029$ 392,368,425$ 388,795,081$ 392,949,598$ 389,804,091$
Restricted 26,066,205 31,476,026 32,485,173 38,303,226 39,588,223 44,872,796 13,891,413 14,807,800 16,101,110 22,260,823
Unrestricted 12,436,903 16,596,955 14,435,604 15,902,576 15,312,432 20,238,419 57,821,649 72,520,903 76,814,254 76,104,550
Total governmental net position 401,671,715$ 403,829,205$ 411,588,028$ 420,528,020$ 434,054,599$ 456,372,244$ 464,081,487$ 476,123,784$ 485,864,962$ 488,169,464$
Business-type activities
Net investment in capital assets 100,991,443$ 102,340,588$ 106,174,191$ 107,926,811$ 103,762,241$ 113,459,625$ 113,355,391$ 113,396,556$ 108,374,156$ 122,533,611$
Restricted for debt service 26,859 344,421 216,664 195,485 46,350 571,053 513,520 764,763 1,230,726 2,634,465
Unrestricted 32,720,930 34,165,174 33,592,809 31,920,455 43,785,615 40,240,619 50,803,699 56,890,299 70,596,998 65,836,910
Total business-type net position 133,739,232$ 136,850,183$ 139,983,664$ 140,042,751$ 147,594,206$ 154,271,297$ 164,672,610$ 171,051,618$ 180,201,880$ 191,004,986$
Primary government
Net investment in capital assets 464,160,050$ 458,096,812$ 470,841,442$ 474,249,029$ 482,916,185$ 504,720,654$ 505,723,816$ 502,191,637$ 501,323,754$ 512,337,702$
Restricted for debt service 26,093,064 31,820,447 32,701,837 38,498,711 39,634,573 45,443,849 14,404,933 15,572,563 17,331,836 24,895,288
Unrestricted 45,157,833 50,762,129 48,028,413 47,823,031 59,098,047 60,479,038 108,625,348 129,411,202 147,411,252 141,941,460
Total primary government net position 535,410,947$ 540,679,388$ 551,571,692$ 560,570,771$ 581,648,805$ 610,643,541$ 628,754,097$ 647,175,402$ 666,066,842$ 679,174,450$
Source:City of Allen Annual Comprehensive Financial Reports
Fiscal Year Ended September 30
City of Allen, Texas Table 2
Changes in Net Position
Last Ten Fiscal Years
Accrual Basis of Accounting)
Unaudited)
115
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities:
General government 24,940,939$ 24,464,246$ 25,304,811$ 28,251,550$ 26,764,210$ 21,238,061$ 24,937,087$ 22,940,360$ 26,469,412$ 29,565,683$
Public safety 30,408,487 31,607,444 35,199,937 39,624,788 39,213,768 44,993,635 47,369,212 49,532,988 63,891,672 57,988,034
Public works 18,252,130 18,349,569 19,083,214 20,209,785 24,161,991 27,039,953 22,393,268 19,661,514 9,148,396 27,241,203
Culture and recreation 30,987,689 32,407,934 32,851,598 28,968,534 33,791,438 33,287,645 29,015,632 29,359,242 36,053,830 29,952,582
Community development 2,689,517 2,861,704 3,251,555 3,007,047 3,079,242 3,160,050 5,238,233 6,330,539 5,587,202 6,731,357
Interest on long-term debt 3,955,305 3,921,989 3,356,234 2,980,513 2,920,824 2,888,831 2,745,698 3,103,192 2,312,561 4,966,234
Total governmental activities expenses 111,234,067 113,612,886 119,047,349 123,042,217 129,931,473 132,608,175 131,699,130 130,927,835 143,463,073 156,445,093
Business-type activities:
Water and sewer 30,081,379 32,304,628 35,604,182 39,527,816 41,134,685 44,511,123 45,524,999 46,442,937 46,917,817 54,520,345
Solid waste 5,383,215 5,560,294 5,870,269 6,078,853 6,223,788 6,248,035 6,525,391 6,824,441 7,088,901 7,563,726
Drainage 951,973 914,322 1,146,138 1,193,057 1,260,262 1,396,935 1,555,570 1,497,014 1,349,306 1,588,923
Golf course 2,839,098 2,911,476 3,089,041 3,135,144 3,397,180 3,332,927 3,166,856 3,557,076 3,800,645 4,267,842
Allen event center - - - - - - - - - 9,442,654
Total business-type activities expenses 39,255,665 41,690,720 45,709,630 49,934,870 52,015,915 55,489,020 56,772,816 58,321,468 59,156,669 77,383,490
Total primary government expenses 150,489,732$ 155,303,606$ 164,756,979$ 172,977,087$ 181,947,388$ 188,097,195$ 188,471,946$ 189,249,303$ 202,619,742$ 233,828,583$
Program Revenues
Governmental activities:
Charges for Services:
General government 823,801$ 705,064$ 467,786$ 497,243$ 525,542$ 500,122$ 509,691$ 598,846$ 570,560$ 43,068$
Public safety 1,568,294 1,647,407 1,801,984 2,712,076 2,171,332 1,954,810 2,189,114 2,063,311 2,221,519 3,198,388
Public works 154,418 233,808 210,687 293,559 1,333,506 1,485,962 725,209 587,112 484,796 247,203
Culture and recreation 8,425,791 9,177,211 10,289,465 8,747,206 9,803,084 9,744,309 3,793,429 4,649,476 7,154,042 2,949,789
Community development 3,103,410 3,021,708 3,216,799 4,266,140 4,025,326 4,798,471 2,530,977 4,024,897 2,828,805 3,671,645
Operating grants and contributions 1,121,356 1,749,567 1,557,260 2,443,054 2,423,768 2,056,001 3,427,631 4,874,743 5,477,428 3,639,508
Capital grants and contributions 9,571,206 10,552,610 16,039,869 15,327,094 18,942,856 19,888,044 10,639,664 8,535,198 11,162,094 1,675,949
Total governmental activities program revenues 24,768,276 27,087,375 33,583,850 34,286,372 39,225,414 40,427,719 23,815,715 25,333,583 29,899,244 15,425,550
Business-type activities:
Charges for services:
Water and sewer 28,955,282 34,135,714 36,335,868 37,163,882 42,453,681 43,103,920 49,461,636 49,099,338 57,519,014 64,410,519
Solid waste 6,309,729 6,474,386 6,687,182 6,735,559 6,933,356 7,006,423 7,116,831 7,039,328 7,278,382 8,057,287
Drainage 1,378,662 1,465,044 1,519,405 1,648,681 1,907,407 1,763,694 2,162,770 1,826,950 1,984,067 2,333,571
Golf Course 2,537,564 2,361,384 2,705,799 2,959,361 2,810,424 3,138,144 3,199,136 4,196,161 4,502,056 4,666,829
Allen event center - - - - - - - - - 6,849,467
Operating grants and contributions 1,000,000 1,000,000 - - - - - - - -
Capital grants and contributions 3,685,960 4,416,642 6,172,301 5,622,911 9,734,528 10,175,397 8,332,962 5,695,888 4,072,343 4,267,362
Total business-type activities program revenues 43,867,197 49,853,170 53,420,555 54,130,394 63,839,396 65,187,578 70,273,335 67,857,665 75,355,862 90,585,035
Total primary government program revenues 68,635,473$ 76,940,545$ 87,004,405$ 88,416,766$ 103,064,810$ 105,615,297$ 94,089,050$ 93,191,248$ 105,255,106$ 106,010,585$
continued) (continued) (continued) (continued)
Fiscal Year Ended September 30
City of Allen, Texas Table 2
Changes in Net Position
Last Ten Fiscal Years (Continued)
Accrual Basis of Accounting)
Unaudited)
116
Net (Expenses) Revenue
Governmental activities (86,465,791)$ (86,525,511)$ (85,463,499)$ (88,755,845)$ (90,706,059)$ (92,180,456)$ (107,883,415)$ (105,594,252)$ (113,563,829)$ (141,019,543)$
Business-type activities 4,611,532 8,162,450 7,710,925 4,195,524 11,823,481 9,698,558 13,500,519 9,536,197 16,199,193 13,201,545
Total primary government net expenses (81,854,259)$ (78,363,061)$ (77,752,574)$ (84,560,321)$ (78,882,578)$ (82,481,898)$ (94,382,896)$ (96,058,055)$ (97,364,636)$ (127,817,998)$
General Revenues
and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes 46,232,565$ 50,143,986$ 54,102,952$ 58,816,876$ 63,929,379$ 68,865,078$ 70,917,335$ 71,946,802$ 74,289,475$ 76,465,116$
Sales taxes 18,004,636 18,141,683 19,274,983 19,450,088 20,717,505 21,648,401 21,686,335 25,599,945 27,609,918 29,480,960
Franchise taxes 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 7,481,353 7,573,389
Hotel / Motel taxes 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,759,159 1,156,398 1,337,147 2,074,533 2,382,951
Other taxes 2,151,232 1,851,397 1,621,012 1,912,559 1,704,227 2,204,220 1,195,296 1,171,378 1,425,226 1,406,052
Investment earnings (loss)416,828 689,736 735,832 837,577 944,196 4,048,112 4,246,550 1,118,970 (4,921,824) 8,614,384
Gain (loss) on disposition of capital assets - - - 263,627 446,117 - 144,347 322,084 291,333 -
Miscellaneous 2,445,491 2,650,103 3,794,277 2,703,964 3,592,229 3,460,124 4,188,530 5,311,149 8,689,016 11,688,618
Transfers 5,627,137 6,249,489 4,790,072 4,610,889 4,398,244 4,702,914 4,603,154 4,007,336 6,365,977 5,712,575
Total governmental activities 83,351,106 88,683,001 93,222,322 97,695,837 105,209,055 114,498,101 115,592,658 117,636,549 123,305,007 143,324,045
Business-type activities:
Investment earnings (loss)134,988 194,051 197,125 199,508 210,045 1,284,728 1,140,957 398,387 (1,830,191) 2,238,213
Gain on disposition of capital assets - - 15,503 - 13,228 - 9,713 7,585 - -
Miscellaneous 850,157 1,003,939 - 274,944 21,030 396,719 353,278 444,175 1,147,237 1,075,923
Transfers (5,627,137) (6,249,489) (4,790,072) (4,610,889) (4,398,244) (4,702,914) (4,603,154) (4,007,336) (6,365,977) (5,712,575)
Total business-type activities (4,641,992) (5,051,499) (4,577,444) (4,136,437) (4,153,941) (3,021,467) (3,099,206) (3,157,189) (7,048,931) (2,398,439)
Total primary government 78,709,114$ 83,631,502$ 88,644,878$ 93,559,400$ 101,055,114$ 111,476,634$ 112,493,452$ 114,479,360$ 116,256,076$ 140,925,606$
Change in Net Position
Governmental activities (3,114,685)$ 2,157,490$ 7,758,823$ 8,939,992$ 14,502,996$ 22,317,645$ 7,709,243$ 12,042,297$ 9,741,178$ 2,304,502$
Business-type activities (30,460) 3,110,951 3,133,481 59,087 7,669,540 6,677,091 10,401,313 6,379,008 9,150,262 10,803,106
Total primary government (3,145,145)$ 5,268,441$ 10,892,304$ 8,999,079$ 22,172,536$ 28,994,736$ 18,110,556$ 18,421,305$ 18,891,440$ 13,107,608$
Source: City of Allen Annual Comprehensive Financial Reports
City of Allen, Texas Table 3
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Modified Accrual Basis of Accounting)
Unaudited)
117
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 4,767$ 1,486$ 2,129$ 126,833$ 25,747$ 209,323$ 8,777$ 145,700$ 28,677$ 141,304$
Restricted 752,238 779,185 907,908 58,910 59,386 61,304 63,185 63,627 64,234 67,335
Assigned 748,200 921,030 - 2,000,000 - - - - 71,742 922,899
Unassigned 17,368,187 18,407,873 20,911,943 19,684,053 23,626,108 25,744,069 26,826,184 27,554,966 28,615,271 31,416,575
Total General Fund 18,873,392$ 20,109,574$ 21,821,980$ 21,869,796$ 23,711,241$ 26,014,696$ 26,898,146$ 27,764,293$ 28,779,924$ 32,548,113$
All Other Governmental Funds
Nonspendable -$ -$ -$ -$ -$ 751$ 751$ 751$ 751$ -$
Restricted 42,149,113 51,398,430 46,610,702 57,540,668 27,922,044 31,444,917 46,411,439 72,968,241 66,742,207 62,722,524
Assigned - - - - 28,349,191 32,023,933 34,703,219 42,842,631 35,208,805 29,805,326
Unassigned (deficit)- - - - (4,428) - - - - -
Total all other governmental funds 42,149,113$ 51,398,430$ 46,610,702$ 57,540,668$ 56,266,807$ 63,469,601$ 81,115,409$ 115,811,623$ 101,951,763$ 92,527,850$
Source: City of Allen Annual Comprehensive Financial Reports
Fiscal Year Ended September 30
City of Allen, Texas Table 4
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
Modified Accrual Basis of Accounting)
Unaudited)
118
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
REVENUES
Ad valorem taxes 46,142,222$ 50,177,840$ 54,104,132$ 58,875,936$ 63,775,055$ 68,884,826$ 71,018,733$ 71,825,685$ 74,300,459$ 76,460,066$
Municipal sales tax 18,004,636 18,141,683 19,274,983 19,450,088 20,717,504 21,648,401 21,686,335 25,599,945 27,609,918 29,480,960
Franchise taxes 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 7,481,353 7,573,389
Licenses, permits and fees 2,915,533 3,134,551 3,064,580 4,450,639 4,494,361 5,279,425 3,341,367 4,509,535 3,101,820 3,765,001
Charges for services 10,580,553 11,734,344 13,002,770 11,664,328 13,442,785 13,586,474 6,845,248 8,061,820 10,959,753 6,112,789
Fines 2,160,168 1,805,230 1,579,628 1,851,735 1,710,354 2,214,571 1,195,296 1,171,378 1,425,226 1,406,052
Gifts and contributions 819,408 1,012,103 832,211 712,437 852,322 1,585,613 821,914 1,296,178 2,917,033 2,565,742
Hotel / motel fees 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,758,858 1,156,398 1,337,147 2,074,533 2,382,951
Intergovernmental 1,704,404 3,570,737 2,645,089 1,927,567 3,555,241 1,258,398 4,210,605 9,506,946 7,511,497 9,319,418
Investment earnings 344,386 577,014 627,760 643,928 851,954 3,280,340 3,648,787 877,724 (3,634,356) 7,182,239
Miscellaneous 3,394,197 3,420,441 3,711,870 3,428,366 3,276,677 3,106,994 3,896,892 4,725,411 3,148,527 3,233,944
Total revenues 94,538,724 102,530,550 107,746,217 112,105,281 122,153,411 130,413,993 125,276,288 135,733,507 136,895,763 149,482,551
EXPENDITURES
General government 23,544,055 23,996,598 24,101,637 27,182,391 26,141,256 19,902,542 23,770,757 22,222,641 26,252,997 29,073,166
Public safety 29,214,552 30,731,310 32,966,265 37,294,550 38,524,578 43,283,984 45,372,064 49,928,774 51,607,583 56,237,944
Public works 4,077,961 4,888,798 4,865,431 5,428,996 8,899,247 11,194,393 10,342,827 11,430,042 14,556,933 16,403,207
Culture and recreation 21,435,581 22,540,516 24,287,382 23,745,884 29,714,212 30,044,660 24,910,955 25,883,652 30,551,147 23,433,197
Community development 2,631,289 2,880,880 2,833,011 2,951,864 3,076,260 3,161,679 3,254,786 3,590,155 3,807,968 4,137,402
Capital outlay 6,573,002 6,555,445 15,408,293 7,053,863 13,114,988 11,921,047 9,458,085 8,483,652 36,748,922 30,316,623
Debt service
Principal retirement 8,364,986 9,322,537 9,135,000 10,445,000 11,181,377 11,382,162 11,094,986 11,049,141 12,507,068 11,641,269
Interest and fiscal charges 3,882,394 3,931,548 3,801,812 3,378,943 3,461,414 3,407,768 3,414,094 3,737,148 4,412,050 5,199,805
Total expenditures 99,723,820 104,847,632 117,398,831 117,481,491 134,113,332 134,298,235 131,618,554 136,325,205 180,444,668 176,442,613
Deficiency of revenues
under expenditures (5,185,096) (2,317,082) (9,652,614) (5,376,210) (11,959,921) (3,884,242) (6,342,266) (591,698) (43,548,905) (26,960,062)
OTHER FINANCING SOURCES (USES)
Refunding bonds issued - 32,245,000 6,910,000 - 1,660,000 7,730,000 6,340,000 - -
Premium on bonds issued 432,879 3,772,133 1,039,610 955,225 978,386 9,570,000 4,034,604 6,881,772 2,777,611 771,340
Issuance of debt 10,595,000 - 1,940,000 11,845,000 8,355,000 894,793 18,830,000 27,200,000 23,000,000 14,525,000
Financed purchases - - 1,700,000 - 75,622 (1,675,000) - 100,674 - -
Right-to-use leases - - - - - - - - 318,698 280,177
Payment to refund bond escrow agent - (28,097,931) (7,789,058) - - 33,908 (8,595,000) (7,105,226) - -
Transfer in 9,257,105 9,711,565 9,137,082 9,805,859 9,682,182 11,412,228 7,388,801 10,180,045 9,865,902 12,746,544
Transfer out (4,484,282) (4,847,771) (6,384,490) (6,295,989) (6,639,012) (8,554,069) (4,554,357) (7,481,221) (5,314,683) (7,033,969)
Proceeds from sale of capital assets 21,258 19,585 24,148 43,897 85,327 38,631 37,476 38,015 57,148 15,246
Total other financing sources 15,821,960 12,802,581 6,577,292 16,353,992 12,537,505 13,380,491 24,871,524 36,154,059 30,704,676 21,304,338
NET CHANGE IN FUND BALANCES 10,636,864$ 10,485,499$ (3,075,322)$ 10,977,782$ 577,584$ 9,496,249$ 18,529,258$ 35,562,361$ (12,844,229)$ (5,655,724)$
Debt service as a percentage
of noncapital expenditures 13.2%13.6%12.7%12.5%12.1%12.1%11.9%11.6%11.8%11.5%
Source: City of Allen Annual Comprehensive Financial Reports
Fiscal Year Ended September 30
City of Allen, Texas Table 5
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Unaudited)
119
Fiscal Year Ended
September 30,Real Property Personal Property
Less: Tax-Exempt
Property
Total Taxable
Assessed Value Total Direct Tax Rate
2014 8,197,352,931$ 789,414,854$ 613,723,945$ 8,373,043,840$ 0.55000
2015 9,347,795,862 885,946,440 1,071,401,599 9,162,340,703 0.54000
2016 10,892,510,607 949,453,680 1,665,547,504 10,176,416,783 0.53000
2017 12,247,829,044 1,019,719,862 1,799,062,766 11,468,486,140 0.52000
2018 13,546,087,428 1,031,270,509 1,878,212,643 12,699,145,294 0.51000
2019 14,696,634,742 1,158,167,450 1,903,666,393 13,951,135,799 0.49800
2020 15,295,656,455 1,233,701,862 2,005,309,071 14,524,049,246 0.48900
2021 15,713,691,463 1,149,504,775 1,960,955,511 14,902,240,727 0.48500
2022 16,684,318,807 1,139,418,829 2,036,419,680 15,787,317,956 0.47000
2023 20,765,442,449 1,194,141,922 3,725,617,131 18,233,967,240 0.42120
Sources: Collin Central Appraisal District
Estimated Market Value
City of Allen, Texas Table 6
Direct and Overlapping Property Tax Rates (Per $100 Of Assessed Value)
Last Ten Fiscal Years
Unaudited)
120
Fiscal Year
Ended
September
30
Fiscal Year
Ended
September 30,
Operating/
General
Rate
General
Obligation
Debt Service Total Direct
Allen
Independent
School District
Plano
Independent
School District
McKinney
Independent
School
District
Love Joy
Independent
School District
Collin
County
Collin
County
Community
College
District
2014 0.40912 0.14088 0.55000 1.67000 1.45300 1.67000 1.53500 0.23750 0.08364
2015 0.39836 0.14164 0.54000 1.64000 1.44800 1.67000 1.56000 0.23500 0.08196
2016 0.40627 0.12373 0.53000 1.61000 1.43900 1.67000 1.56000 0.22500 0.08196
2017 0.39627 0.12373 0.52000 1.59000 1.43900 1.62000 1.67000 0.20840 0.08122
2018 0.39274 0.11726 0.51000 1.57000 1.43900 1.62000 1.67000 0.19225 0.07981
2019 0.39346 0.10454 0.49800 1.55000 1.43900 1.59000 1.67000 0.18079 0.08122
2020 0.38704 0.10196 0.48900 1.45890 1.33735 1.48835 1.56835 0.17495 0.08122
2021 0.39052 0.09448 0.48500 1.43250 1.32375 1.47470 1.55470 0.17253 0.08122
2022 0.36876 0.10124 0.47000 1.40680 1.32075 1.37670 1.50500 0.16809 0.08122
2023 0.33070 0.09050 0.42120 1.33040 1.25975 1.31290 1.44290 0.15244 0.08122
Source: Collin Central Appraisal District
City Direct Rates Overlapping Rates
City of Allen, Texas Table 7
Principal Property Taxpayers
Current Year and Nine Years Ago
Unaudited)
121
Taxpayer
Taxable Assessed
Value
Percentage
of Total City
Taxable
Assessed
Valuea Taxpayer
Taxable Assessed
Value
Percentage
of Total City
Taxable
Assessed
Valueb
VAA Improvements LLC 159,814,858$ 1.01%The Village At Allen LP 142,468,550$ 1.70%
Allen Premium Outlets LP 122,664,130 0.78%AT&T Mobility LLC 106,167,892 1.27%
S2 Twin Creek I LP 101,792,467 0.64%Watters Creek Owner LLC 102,377,049 1.22%
Cisco Systems Inc 99,630,000 0.63%Cisco Systems Inc 93,846,280 1.12%
Dolce Twin Creeks Phase 2 LLC 93,600,000 0.59%AT&T Serv ices Inc 79,675,121 0.95%
Charter DW Watters Creek Village LLC 87,082,963 0.55%Chelsea Allen Development LP 78,000,000 0.93%
1175 Montgomery (TX) Owner LP 80,447,025 0.51%BH Benton Pointe Apartments LLC 37,508,492 0.45%
AT&T Mobility LLC 78,447,246 0.50%Oncor Electric Delivery Company 36,578,985 0.44%
Sovereign Twin Creeks Phase 1 LLC 78,000,000 0.49%BH Settler's Gate Apartments LP 34,340,292 0.41%
TX Watters Creek Apartments LLC 75,152,106 0.48%TC Village Inc 29,661,674 0.35%
Total 976,630,795$ 6.19%Total 740,624,335$ 8.86%
Total Assessed Valuation 15,787,317,956$ 100.00%Total Assessed Valuation 8,373,043,840$ 100.00%
Source: Collin Central Appraisal District
Notes: aTaxpayers are assessed on January 1, 2022 (2022 tax year) for the 2023 fiscal year.
bTaxpayers are assessed on January 1, 2013 (2013 tax year) for the 2014 fiscal year.
2023 2014
City of Allen, Texas Table 8
Ad Valorem Tax Levies and Collections
Last Ten Fiscal Years
Unaudited)
122
Fiscal Year
Ended
September 30,
Total Tax Lev y for
Fiscal Year Amount
Percentage
of Levy
Collections in
Subsequent
Years Amount
Percentage
of Levy
2014 46,466,114$ 45,924,321$ 98.83 %527,945$ 46,452,266$ 99.97 %
2015 49,958,933 49,472,535 99.03 %474,739 49,947,274 99.98 %
2016 54,342,759 53,821,573 99.04 %512,618 54,334,191 99.98 %
2017 58,617,868 58,282,589 99.43 %335,279 58,617,868 100.00 %
2018 63,184,129 62,950,713 99.63 %213,142 63,163,855 99.97 %
2019 67,684,728 67,511,154 99.74 %102,333 67,613,487 99.89 %
2020 70,617,878 70,550,256 99.90 %(133,170) 70,417,086 99.67 %
2021 71,909,214 71,715,864 99.73 %187,669 71,903,533 99.93 %
2022 73,930,484 73,746,318 99.75 %71,676 73,817,994 99.75 %
2023 76,291,666 76,102,449 99.75 %- 76,102,449 99.75 %
Source: Collin County Tax Assessor
Collected within the Fiscal Year of
the Levy Total Collections to Date
City of Allen, Texas Table 9
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited)
123
Fiscal Year
Ended
September 30,
General
Obligation
Bonds
Certificates
of Obligation Tax Notes
Other
Obligations
Water and
Sewer Revenue
Bonds
Other
Obligations
Total Primary
Government
Percentage
of Personal
Income a Per Capitaa
2014 99,245,000$ 530,000$ -$ 4,615,649$ 8,015,000$ 691,493$ 113,097,142 3.19%1,241
2015 95,690,000 490,000 - 7,258,749 6,735,000 596,700 110,770,449 2.81%1,188
2016 93,920,844 450,000 1,940,000 1,700,000 5,760,000 448,387 104,219,231 2.73%1,102
2017 96,184,995 405,000 1,255,000 1,250,000 4,760,000 282,326 104,137,321 2.60%1,043
2018 94,460,400 - 635,000 864,245 13,850,800 719,391 110,529,836 2.34%1,077
2019 91,466,739 - 2,600,000 75,991 16,637,388 569,182 111,349,300 2.37%1,039
2020 98,980,840 - 4,920,000 46,005 21,520,600 423,155 125,890,600 2.58%1,149
2021 92,079,808 28,278,061 3,917,980 102,538 32,435,106 332,535 157,146,028 3.26%1,452
2022 104,656,037 26,338,466 2,379,838 1,020,867 30,469,408 279,154 165,143,770 3.14%1,515
2023 112,730,945 20,740,000 3,238,786 824,775 28,798,693 164,886 166,498,085 2.72%1,497
Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements.
aSee Table 13 for personal income and population data.
Governmental Activities Business-Type Activities
City of Allen, Texas Table 10
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Unaudited)
124
Fiscal Year Ended
September 30,
General
Obligation Bonds
Certificates of
Obligation Tax Notes Total
Percentage of
Actual Taxable
Value of Propertya Per Capitab
2014 99,245,000$ 530,000$ -$ 99,775,000$ 1.19%1,095$
2015 95,690,000 490,000 - 96,180,000 1.05%1,031
2016 93,920,844 450,000 1,940,000 96,310,844 0.95%1,018
2017 96,184,995 405,000 1,255,000 97,844,995 0.85%980
2018 94,460,400 - 635,000 95,095,400 0.75%927
2019 91,466,739 - 2,600,000 94,066,739 0.67%878
2020 98,980,840 - 4,920,000 103,900,840 0.72%948
2021 92,079,808 28,278,061 3,917,980 124,275,849 0.83%1,149
2022 104,656,037 26,338,466 2,379,838 133,374,341 0.84%1,223
2023 112,730,945 20,740,000 3,238,786 136,709,731 0.75%1,229
Notes:Details regarding the city's outstanding debt can be found in the notes to the financial statements.
aSee Table 5 for property value data.
bSee Table 13 for population data.
General Bonded Debt Outstanding
City of Allen, Texas Table 11
Direct and Overlapping Governmental Activities Debt
as of September 30, 2023
Unaudited)
125
Debt Outstanding
Estimated
Percentage
Applicablea
Estimated Share of
Direct and
Overlapping Debt
Debt repaid with property taxes:
Allen I.S.D.630,131,098$ 85.43%538,320,997$
Plano I.S.D.992,285,000 0.85%8,434,423
McKinney I.S.D.492,835,000 0.08%394,268
Lovejoy I.S.D.133,285,000 8.76%11,675,766
Collin County 721,825,000 8.77%63,304,052
Collin College 480,350,000 8.77%42,126,695
Subtotal, overlapping debt 664,256,201$
City of Allen direct debt outstanding 137,534,506 100.00% 137,534,506.00
Total Direct and Overlapping Debt 801,790,707$
Source:Taxable value data used to estimated applicable percentages provided by Collin Central Appraisal District.
Net Bonded Debt Outstanding and Percentage of debt obtained from the Texas Municipal Report ("TMR")
that was prepared by the Municipal Advisory Council of Texas ("MAC").
aThe percentage of applicable overlapping debt is estimated using taxable property values. Applicable
percentages were estimated by determining the portion of the county's taxable assessed value that is
within the City of Allen's boundaries and dividing it by the county's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by
the residents and businesses of the City. This process recognizes that, when considering the City's ability
to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken
into account. This does not imply that every taxpayer is a resident and therefore responsible for repaying the
debt of each overlapping government.
Governmental Unit
City of Allen, Texas Table 12
Pledged Revenue Coverage
Last Ten Fiscal Years
Unaudited)
126
Fiscal Year Ended
September 30,Total Revenuesa
Less: Operating
Expensesb
Net Available
Revenue
Annual
Requirementc Times Coverage
2014 30,887,999$ 23,754,848$ 7,133,151$ 1,585,519$ 4.50
2015 36,275,063 26,397,770 9,877,293 1,513,860 6.52
2016 36,509,983 29,287,984 7,221,999 1,173,576 6.15
2017 37,609,746 33,023,729 4,586,017 1,169,082 3.92
2018 42,629,369 34,843,950 7,785,419 1,181,675 6.59
2019 44,571,666 38,156,431 6,415,235 1,749,739 3.67
2020 50,756,732 39,026,679 11,730,053 1,501,611 7.81
2021 49,805,566 39,647,944 10,157,622 1,874,030 5.42
2022 56,776,891 40,235,647 16,541,244 2,595,735 6.37
2023 66,903,325 47,203,212 19,700,113 2,594,366 7.59
Notes:
bIncludes operating expenses minus depreciation.
cIncludes Principal and Interest.
aDevelopment fees are not included as part of the non-operating revenues and therefore are not included in
the times coverage calculation.
Water and Sewer System Revenue Bonds
City of Allen, Texas Table 13
Demographic and Economic Statistics
Last Ten Fiscal Years
Unaudited)
127
Fiscal Year Ended
September 30,
Estimated
Populationa Personal Income
Per Capita
Personal Incomeb School Enrollmentc
Unemployment
Rated
2014 91,157 3,542,543,334$ 38,862 20,503 4.4%
2015 93,261 3,940,277,250 42,250 20,755 3.2%
2016 94,576 3,823,896,832 40,432 20,973 3.6%
2017 99,852 4,007,759,724 40,137 21,054 3.1%
2018 102,632 4,715,221,976 45,943 21,567 3.2%
2019 107,151 4,694,285,310 43,810 21,791 2.8%
2020 109,591 4,876,032,363 44,493 21,538 6.2%
2021 108,207 e 4,814,454,051 44,493 21,390 3.6%
2022 109,039 5,267,128,895 48,305 21,808 2.8%
2023 111,218 6,119,436,796 55,022 21,443 3.5%
Sources:aEstimated population provided by the City of Allen.
cAllen Independent School District.
dTexas Workforce Commission.
bEstimated Per Capita Income provided by U.S. Census Bureau based on current income trends within the
area.
eThe reduction in population from prior year is due to inaccurate estimates used between the 2010 and 2020
decennial censuses.
City of Allen, Texas Table 14
Principal Employers
Current Year and Nine Years Ago
Unaudited)
128
Employer
Total
Employees
Percentage of
Total City
E mployment Employer
Total
Employees
Percentage of
Total City
E mployment
Allen Independent School District 2,755 6.85%Allen Independent School District 2,502 7.58%
City of Allen 937 2.33%Experian 955 2.89%
Experian Information Solutions 817 2.03%City of Allen 755 2.29%
Andrew's Distributing 487 1.21%Frontier Communications 693 2.10%
Jack Henry & Associates 450 1.12%Texas Health Presbyterian Hospital 670 2.03%
Motorola Solutions 436 1.08%Jack Henry & Associates 569 1.72%
Texas Health Presbyterian Hospital 425 1.06%Andrew Distributing 400 1.21%
Credit Union of Texas 424 1.05%CVE Technology Group, Inc 400 1.21%
Netscout 420 1.04%PFSweb 400 1.21%
Crawford and Company 365 0.91%Finisar Corporation 175 0.53%
Total 7,516 18.70%Total 7,519 22.79%
Total Allen Daytime Employees 40,193 Total Allen Daytime Employees 32,988
Source: Top ten employers and employee count provided by Allen Fairview Chamber of Commerce and Allen Economic Development Corporation.
2023 2014
City of Allen, Texas Table 15
Full–Time Equivalent City Government Employees by Function & Program
Last Ten Fiscal Years
Unaudited)
129
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government and
Administration 64.00 67.00 70.50 72.50 75.50 77.00 80.48 82.48 84.73 87.23
Public Safety 286.00 295.00 299.00 299.00 305.00 316.00 319.00 320.00 326.00 337.00
Public Works 54.50 55.50 59.00 59.00 60.50 62.50 63.50 63.50 62.50 63.00
Culture and Recreational 212.27 215.71 221.31 221.31 226.32 228.32 227.82 223.32 223.32 282.80
Water and Sewer 68.00 69.00 70.00 74.00 76.50 79.00 80.00 80.00 83.00 85.50
Golf Course 32.54 33.64 33.64 33.64 33.64 33.64 32.14 32.14 32.14 32.14
Community Development 27.00 27.50 28.50 27.50 30.50 32.00 32.00 34.00 35.00 37.00
Risk Management 4.00 4.00 4.00 4.00 4.00 3.50 3.50 4.50 4.50 5.00
Economic Development 6.25 7.00 7.00 7.00 7.00 7.50 7.50 7.50 7.50 7.50
Total 754.56 774.35 792.95 797.95 818.96 839.46 845.94 847.44 858.69 937.17
Source:City of Allen's Annual Official Budgets
Fiscal Year Ended September 30
City of Allen, Texas Table 16
Operating Indicators by Function & Program
Last Ten Fiscal Years
Unaudited)
130
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police
Number of Employees 175 183 185 185 189 199 201 202 204 211
Number of Violations (Citations)19,943 14,000 13,645 18,778 17,025 21,060 8,774 10,715 11,721 10,596
Fire
Number of Employees 111 112 114 114 116 117 118 122 122 126
Number of Fire/Other runs 1,541 1,622 1,822 1,886 1,896 1,899 1,912 2,490 2,406 2,236
Number of EMS runs 3,703 3,812 4,162 4,210 4,667 4,898 4,725 5,753 6,251 4,725
Development Services
Streets paved (miles)4 1 5 5 6 2 2 87 26 66
Building Permits Issueda 9,538 7,549 7,022 7,116 7,126 9,414 6,440 6,104 5,531 6,705
Cultural and Recreational
Parks and Recreation
Park maintained & operated per
acre 4,022$ 4,083$ 4,092$ 4,668$ 4,675$ 3,679$ 3,667$ 3,771$ 3,988$ 4,209$
Participants in Leisure Service
Programs 646,719 568,503 638,367 911,064 955,441 1,002,717 528,935 595,869 791,359 844,201
Rounds of Golf 45,546 39,723 44,478 47,010 44,163 49,293 54,556 66,518 70,597 70,123
Library
Volumes in Collectionb 128,501 132,380 138,041 141,774 139,605 146,699 143,103 142,324 143,495 147,860
Water and Sewer
Number of Water Consumers 29,124 29,750 30,332 30,920 31,391 31,922 32,334 33,109 33,385 35,045
Average Daily Water Consumption
gallons)11,863,621 13,284,000 14,472,000 15,107,156 15,926,000 15,454,057 15,710,457 16,143,000 15,296,000 15,075,194
Maximum Storage Capacity (million of
gallons)33.0 33.0 33.0 33.0 33.0 33.0 33.0 33 33.0 33.0
Sanitation
Recyclables Collected (tons)9,920 10,015 10,108 10,578 10,723 10,073 10,343 9,838 10,340 12,211
Solid Waste Collected (tons)55,142 59,591 62,009 63,712 66,333 65,242 66,515 66,773 66,288 71,110
Source:City of Allen Departments
Notes:aIncludes residential, commercial, and miscellaneous permits (e.g. for pools, fences, and roof repairs).
bIncludes books and media.
Fiscal Year Ended September 30
City of Allen, Texas Table 17
Capital Assets Statistics by Function & Program
Last Ten Fiscal Years
Unaudited)
131
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Patrol Units 27 27 28 31 31 31 31 44 53 53
Fire Stations 5 5 5 5 5 5 5 5 5 5
Police Motorcycle Units 4 4 4 4 4 4 4 4 4 4
Development Services
Streets-Paved (miles) 330 331 336 341 347 349 351 438 377 442
Alleys-Paved (miles)165 166 167 168 169 169 169 180 178 178
Cultural and Recreational
Parks (acres)599 599 607 614 689 691 691 691 710 2,249
Playgrounds 32 32 32 32 32 32 32 31 31 31
Swimming Pools (outdoor)1 1 1 1 1 1 1 1 1 1
Recreation Centers 1 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1 1
Tennis Courts 5 5 5 5 5 5 5 5 5 5
Natatorium 1 1 1 1 1 1 1 1 1 1
Visitor (Youth) Center 1 1 1 1 1 1 1 1 1 1
Golf Course 1 1 1 1 1 1 1 1 1 1
Event Center 1 1 1 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles)471 474 481 494 506 515 524 524 502 508
Fire Hydrants 4,329 4,398 4,560 4,675 4,982 4,934 5,316 5,359 5,409 5,358
Sanitary Sewers (miles)354 356 361 370 379 386 393 393 372 372
Storm Sewer Lines (miles)109 110 112 117 123 129 136 224 226 231
Source: City Of Allen Departments
Fiscal Year Ended September 30