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Home My WebLink About2024-09-30 Annual Comprehensive Financial Report (ACFR)ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2024 CITY OF ALLEN • 305 CENTURY PARKWAY • ALLEN, TEXAS CITY OF ALLEN, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 AS PREPARED BY THE CITY OF ALLEN CITY MANAGER’S OFFICE AND FINANCE DEPARTMENT: CITY MANAGER ERIC ELLWANGER DEPUTY CITY MANAGER ERIC STRONG ASSISTANT CITY MANAGER TIM DENTLER ASSISTANT CITY MANAGER REBECCA VICE CHIEF FINANCIAL OFFICER PETE PHILLIS ASSISTANT CHIEF FINANCIAL OFFICER MARK DAVIES CONTROLLER ALLYSON BAKER CHIEF ACCOUNTANT TRU NGUYEN SENIOR ACCOUNTANT ASHLEY CAPANGPANGAN SENIOR ACCOUNTANT ALICIA CASTANEDA ACCOUNTANT SHEILA ALEXANDER ACCOUNTANT KENNETH LAMOREAUX City of Allen, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 Table of Contents i Introductory Secon Page Leer of Transmial 3 Cercate of Achievement 10 Organizaonal Chart 11 Principal Ocials 12 Financial Secon Independent Auditor’s Report 15 Management’s Discussion and Analysis 19 Basic Financial Statements Government-Wide Statements Statement of Net Posion 35 Statement of Acvies 36 Fund Financial Statements Balance Sheet – Governmental Funds 38 Reconciliaon of the Balance Sheet of Governmental Funds to the Statement of Net Posion 41 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 42 Reconciliaon of Statements of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Acvies 45 Statement of Net Posion – Proprietary Funds 47 Statement of Revenues, Expenses and Changes in Net Posion – Proprietary Funds 48 Statement of Cash Flows – Proprietary Funds 51 Notes to the Financial Statements 53 Required Supplementary Informaon General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 95 Schedule of Changes in Net Pension Liability and Related Raos –Rerement Plan TMRS) 96 Schedule of Contribuons – Rerement Plan (TMRS) 98 Schedule of Changes in Total OPEB Liability and Related Raos – Supplemental Death Benets Fund 100 Schedule of OPEB Contribuons – Supplemental Death Benets Fund 102 Notes to the Required Supplementary Informaon 104 Combining and Budgetary Comparison Schedules Major Governmental Funds Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 107 Nonmajor Governmental Funds Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 112 Nonmajor Enterprise Funds Combining Statement of Net Posion 116 Combining Statement of Revenues, Expenses and Changes in Net Posion 117 City of Allen, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 Table of Contents ii Combining Statement of Cash Flows 119 Internal Service Funds Combining Statement of Net Posion 121 Combining Statement of Revenues, Expenses and Changes in Net Posion 122 Combining Statement of Cash Flows 123 Discretely Presented Component Units Balance Sheet 125 Reconciliaon of the Balance Sheet of Governmental Funds to the Statement of Net Posion 126 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 127 Reconciliaon of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Acvies 128 Stascal Secon Net Posion by Component 132 Changes in Net Posion 134 Fund Balances of Governmental Funds 138 Changes in Fund Balances - Governmental Funds 140 Assessed Value and Esmated Actual Value of Taxable Property 142 Direct and Overlapping Property Tax Rates 143 Principal Property Taxpayers 144 Ad Valorem Tax Levies and Collecons 145 Rao of Outstanding Debt by Type 146 Rao of General Bonded Debt Outstanding 147 Direct and Overlapping Governmental Acvies Debt 148 Pledged Revenue Coverage 149 Demographic and Economic Stascs 150 Principal Employers 151 Full-Time Equivalent City Government Employees by Funcon & Program 152 Operang Indicators by Funcon & Program 154 Capital Assets Stascs by Funcon & Program 156 ŽŽ Ž 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 3 February 25, 2025 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, 2024. 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, 2024, 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, 1,195,359 in 2023 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- 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 4 educated residents with a high level of spending power and disposable income. Allen’s population reached 113,885 residents in 2023, 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. 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 957.17 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 2024 was 3.4%, and the Collin County unemployment rate was 3.5% -- both of which were below the national rate of 4.1%. 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 $129,130 in 2023, and over 56% 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 113,885 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 and 2024) 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 5 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 Aaa 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. The City held a Bond Election in November of 2023 for $156.5 Million. 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. Of this amount authorized by the voters, the City issued $89 Million for street improvements and a new Police Headquarters in the current year. Fiscal Year 2024 Highlights During fiscal year 2024, the City accomplished many initiatives to enhance livability, to improve personal experience, to invest in the future, and to celebrate the successes. From quality neighborhoods to park development, to community safety, and to 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, a 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 2024, Allen ranks 5th, among lists of the safest cities with a population exceeding 100,000 residents. Regarding violent crimes, Neighborhood Scout's research shows that Allen's violent crime rate is 1.15 per 1,000 inhabitants, which is well below the national average for all communities of all population sizes. The Fire Department is committed to advancing emergency services and care for its citizens and visitors. Recent accomplishments include updating medical treatment protocols to reflect the latest in-patient care 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 6 and expanding professional development programs for staff. The department has enhanced its training capabilities with the launch of the ARIES simulation platform, offering state-of-the-art virtual environments for high-stress incident training. Community education efforts have grown through programs like Drive to Thrive, which promotes safety and risk reduction. Construction of Fire Station #6 has been completed, increasing response capabilities in the community. Additionally, interoperability with neighboring departments has strengthened through joint training and resource sharing, enhancing regional response coordination. The City’s public works activities continued to support community needs in 2024. In Water and Sewer Operations, the City completed fielding its Advanced Meter Infrastructure (AMI) system to 24,000 customers. This system provides the capability for data-driven water use analysis and the proactive detection of water leaks for all customers. The water system also installed two Residual Control Systems at elevated water towers. These systems optimize chloramine disinfectant levels to prolong water life and avoid over 200 million gallons of water line flushing annually. The City’s oldest pump station was also completely refurbished with new controls, pumps, and an additional auxiliary generator. The engineering department also began a project to replace the water lines and concomitantly replace the asphalt road in two old subdivisions. Water and sewer system maintenance and capital improvements are optimally funded. This is accomplished while the City’s fees for customers continues to be among the lowest few of thirteen local comparison cities. Road maintenance and replacement was funded and proceeded in accordance with the road condition assessment study. The City continued to support citizen focused solid waste and drainage services. The Solid Waste and Drainage enterprise funds operate at costs to citizens that are the lowest of the five similar comparison cities that are proximate to Allen. Environmentally focused public activities continued to be a priority for the community and residents of the City. Environmental education opportunities were provided to homeschoolers, our local public and private schools, scouts, and youth camps. The City was able to provide 50 programs to 3,125 children and adults. Various Keep Allen Beautiful (KAB) Board 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. 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 state level award recognizes the City for sponsoring the best in public environmental education activities among Texas cities with a population like Allen’s. The Allen Public 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. Physical books and videos remain popular among patrons of all ages. The Library’s annual circulation has exceeded one million for ten consecutive years and was recognized by the Texas Municipal Library Directors Association for the tenth consecutive year for Achievement of Library Excellence. In 2024, Allen Parks and Recreation made significant progress in achieving its mission of creating meaningful LIFE experiences. A major milestone was the grand opening of the Stephen G. Terrell Recreation Center, a 149,000-square-foot facility offering diverse fitness and leisure amenities for all ages. In its first 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 7 partial year of operations, the center exceeded expectations by surpassing both membership and revenue goals, reflecting the community’s enthusiasm for this state-of-the-art addition. The department also advanced several key parks and trail projects. A highlight was the launch of Reimagining Ford Park," a master planning process focused on redeveloping one of Allen’s oldest and most-used parks. Community engagement was a vital component, with residents contributing ideas through public events and surveys. Another significant accomplishment was the June 2024 opening of The Bark Yard, a highly anticipated dog park that features unique and interactive Public Art installations. Additionally, the department secured further grant funding for the Rowlett Creek Trail expansion, a project with a total budget of $8 million and a construction start date planned for late 2025. There were many other accomplishments achieved during the year as well. The Allen Economic Development Corporation (AEDC) worked to bring a variety of companies and related development to Allen. There were many successes this past year with the development along the City’s northern boundary with the establishment of a new tax increment reinvestment zone for a large mixed- use development and several land transactions that will further economic development opportunities. One of the City’s major draws, The Credit Union of Texas Event Center. 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. 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 2024. 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. Budget Controls By August 10 of each year the City Manager shall prepare and submit the budget for the ensuing year to the City Council. The budget is to include revenues and expenditure associated with the plan. City Council is required to have a public hearing on the budget or annual service plan. After the hearing City Council is to discuss, deliberate, amend the proposed budget as appropriate and shall at least by the second City Council meeting in September prior to the beginning of the next fiscal year, adopt by favorable majority. There are extended technical provisions that could require a super majority vote for the passage of the budget. 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100 WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org 8 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, 2023. Fiscal year 2023 was the twenty-sixth 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, 2023. This is the twenty-fourth 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. 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, Eric Ellwanger City Manager 9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Allen Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Executive Director/CEO 10 CITY OF ALLEN, TEXAS ORGANIZATIONAL CHART 11 Ž Ž Ž ŽŽ Ž D D WŽ D Ž Ž Ž ZŽ W ZŽ D Ž Ž Ž Ž D ŽŽ sŽ D ŽŽ dŽŽ W D ZŽ 12 CCITY OF ALLEN, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 LIST OF PRINCIPAL OFFICIALS CITY COUNCIL (ELECTED) Mayor Baine Brooks Mayor Pro Tem, Place No. 6 Ben Trahan Councilmember, Place No. 1 Michael ^ Councilmember, Place No. 2 Tommy Baril Councilmember, Place No. 3 Ken Cook Councilmember, Place No. 4 Chris Schulmeister Councilmember, Place No. 5 Carl Clemencich MANAGEMENT STAFF AND DIRECTORS City Manager (appointed) Eric Ellwanger Deputy City Manager Eric Strong Assistant City Manager Tim Dentler Assistant City Manager Rebecca Vice City Secretary Shelley George K Pete Phillis ŽŽ K D Municipal Court Judge (appointed) Cynthia Gore Fire Chief Jon Boyd Police Chief Steve Dye Ž Ž ŽŽ Ž ŽŽŽ Dan Bowman Ž Ž Ž Ž ŽŽŽ Jason Cooley Director of Community Services Steve Massey Director of Engineering Chris Flanigan Director of Community Development Marc Kurbansade Director of Community Enhancement > Director of Human Resources Cheree Bontrager Ž Ž W ZŽ Kate Meacham Director of Public and Media ZŽ Chelsey Aprill Ž Ž ŽŽ sŽ Brandy O’Keefe Director of the Library :d Ž 2300 North Field Street, Suite 1000 Dallas, Texas 75201 972-490-1970 Weaver and Tidwell, L.L.P. 1 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the 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, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (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 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 the City Council City of Allen, Texas 1 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: x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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. x 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. x 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. x 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 the City Council City of Allen, Texas 1 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. 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. 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 February 20, 2025, 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 February 20, 2025 18 19 Management ’s Discussion and Analysis As management of the City of Allen, Texas (the “City”), we oer readers of the City’s nancial statements this narrave overview and analysis of the nancial acvies of the City for the scal year ended September 30, 2024. FINANCIAL HIGHLIGHTS The assets and deferred oulows of resources of the City exceeded its liabilies and deferred inows of resources (net posion) at September 30, 2024, by $717,284,807. Of this amount, 158,22%) represented the unrestricted net posion, which may be used to meet the City’s ongoing obligaons to cizens and creditors. The City’s total net posion increased by $38,110,357. Out of this, $13,335,485 is from governmental acvies and $24,774,872 is from business-type acvies. On a government-wide basis, the City’s total assets increased by $105,049,430 or 12% and total liabilies increased by $58,292,803 or 23%. As of September 30, 2024, the City’s governmental funds reported combined ending fund balances of $201,946,760, an increase of $76,870,797 or 61% in comparison to the previous year. As of September 30, 2024, $34,260,644 or 17% of the fund balance, is available for spending at the government’s discreon (unassigned fund balance). OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introducon to the City’s basic nancial statements. The City’s basic nancial statements are comprised of three components: 1) government-wide nancial statements, 2) fund nancial statements, and 3) notes to the nancial statements. This report also contains other supplementary informaon in addion to the basic nancial statements. Government-wide nancial statements. The government-wide nancial statements are designed to provide readers with a broad overview of the City’s nances in a manner like that of a private-sector business. The Statement of Net Posion presents informaon on all the City’s assets, deferred oulows of resources, and liabilies and deferred inows of resources, with the dierence reported as net posion. Over me, increases or decreases in net posion may serve as useful indicators of whether the nancial posion of the City is improving or deteriorang. To assess the overall health of the City, other non-nancial factors should also be taken into consideraon, such as changes in the City’s property tax base and the condion of the City’s infrastructure. The Statement of Acvies presents informaon that shows how the City’s net posion changed during the scal year. All changes in net posion are reported when the underlying event that gives rise to the change occurs, regardless of the ming of related cash ows. Accordingly, revenues and expenses are reported in this statement for some items that will only result in cash ows in future scal periods (e.g. uncollected taxes and earned but unused compensated absences). Both the Statement of Net Posion and the Statement of Acvies are prepared ulizing the accrual basis of accounng. In the government-wide nancial statements, on pages 35 through 37, the City is divided into three kinds of acvies: 20 Governmental acvies - Most of the City’s basic services are reported here, including the police, re, library, community development, parks and recreaon, municipal court, and general administraon. Property and sales taxes, charges for services, franchise fees, and state and federal grants nance most of these acvies. Business-type acvies - The City’s water, sewer, solid waste, drainage, golf course, and Allen event center operaons are reported here. These are funcons intended to recover all or a signicant poron of their costs through user fees and charges. Component units - The City includes two separate legal enes in this report: the Allen Economic Development Corporaon (AEDC) and the Allen Community Development Corporaon (ACDC). Although legally separate, these component units are important because the City is nancially accountable for them. Fund nancial statements. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specic acvies or objecves. The City, like other state and local governments, uses fund accounng to ensure and demonstrate compliance with nance-related legal requirements. The funds of the City can be divided into two categories: governmental and proprietary. Governmental Funds. These funds are used to account for most of the City’s acvies, which are essenally the same funcons as governmental acvies in the government-wide statements. However, unlike the government-wide nancial statements, governmental fund nancial statements focus on near-term inows and oulows of spendable resources, as well as resources available for future spending at scal year-end. These funds are reported using the modied accrual basis of accounng, which measures cash and all other nancial assets that can be readily converted to cash. When compared with similar informaon in the broader government-wide nancial statements, readers may beer understand the long-term impact of the government’s near-term nancing decisions. Reconciliaon is provided, which details the relaonships or dierences between governmental acvies and governmental funds; reconciliaon follows the fund nancial statements. The City maintains several individual governmental funds. Informaon 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, and General Obligaon Bond Fund, all of which are major funds. Data for the other governmental funds are combined into a single, aggregated presentaon. 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 nancial statements can be found on pages 36 through 45 of this report. Proprietary Funds. The City maintains two dierent types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same funcons presented as business-type acvies in the government-wide nancial statements. The City uses enterprise funds to account for its water and sewer operaons, solid waste collecon and disposal services, drainage operaons, golf course and event center operaons. Internal service funds are an accounng device used to accumulate and allocate costs internally among the City’s various funcons. The City uses its internal service funds to account for vehicle, machinery, and equipment replacements, costs associated with workers compensaon, liability and property insurance and employee medical and dental insurance programs, and costs associated with the maintenance of City facilies. These services have been included within governmental acvies and 21 business-type acvies in the government-wide nancial statements as they provide benet to both funcons of the primary government. Proprietary funds provide the same type of informaon as the government-wide nancial statements, only in more detail. The proprietary fund nancial statements provide separate informaon for the water and sewer operaons and other enterprise fund services are grouped into a single aggregated presentaon in the proprietary fund statements as they do not meet the requirements to be classied as major funds. Individual nonmajor enterprise fund data is provided in the form of combining statements in another secon of this report. All internal service funds are combined into a single aggregated presentaon in the proprietary fund nancial statements. Individual fund data for the internal service funds is also provided in the form of combining schedules elsewhere in this report. The basic proprietary fund nancial statements are located on pages 47 through 51 of this report. Notes to the Financial Statements. Addional informaon that is essenal to a full understanding of the data provided in the government-wide and fund nancial statements is provided in the notes to the nancial statements located on pages 55 through 90 of this report. Required Supplementary Informaon. Required supplementary informaon includes budgetary comparison schedules that have been provided for the general fund to demonstrate compliance with the budget. Required supplementary informaon also includes schedules of changes in net liabilies and related raos and on contribuons to the City's pension and other postemployment benets (OPEB). The City parcipates in Texas Municipal Rerement System (TMRS) for its pension plan and provides its employees with post- rerement healthcare benets (OPEB). The City also has a separate dened benet reree healthcare plan that is no longer adding new beneciaries and will eventually terminate. The required supplementary informaon is found on pages 95 through 104 of this report. The combining and budgetary schedules referred to earlier include informaon for nonmajor governmental funds, nonmajor enterprise funds, internal service funds, and the discretely presented component units, and are presented immediately following the required supplementary informaon. 22 2024 2023 2024 2023 2024 2023 Current and other assets 252,210,622$ 182,460,034$ 99,098,303$ 81,731,599$ 351,308,925$ 264,191,633$ Capital assets 506,322,303 492,207,665 154,414,704 150,597,204 660,737,007 642,804,869 Total assets 758,532,925 674,667,699 253,513,007 232,328,803 1,012,045,932 906,996,502 Deferred outflows of resources 20,441,056 28,117,426 3,035,514 4,127,809 23,476,570 32,245,235 Long-term liabilities 260,251,908 191,786,745 34,891,921 36,931,924 295,143,829 228,718,669 Other liabilities 15,824,078 21,269,923 5,669,874 8,356,386 21,493,952 29,626,309 Total liabilities 276,075,986 213,056,668 40,561,795 45,288,310 316,637,781 258,344,978 Deferred inflows of resources 1,393,046 1,558,993 206,868 163,316 1,599,914 1,722,309 Net position: Net investment in capital assets 404,047,053 389,804,091 125,122,533,611 529,512,337,702 Restricted 26,737,949 22,260,823 2,336,548 2,634,465 29,074,497 24,895,288 Unrestricted 70,719,947 76,104,550 87,65,836,910 158,141,941,460 Total net position 501,504,949$ 488,169,464$ 215,779,858$ 191,004,986$ 717,284,807$ 679,174,450$ Governmental Activities Business-type Activities Total GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, over me net posion may serve as a useful indicator of the nancial posion of a government. The assets and deferred oulows of the City of Allen exceed the liabilies and deferred inows by $717,284,807 at September 30, 2024. By far the largest poron of the City’s net posion, $529,or 74%, reects 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 cizens; consequently, these assets are not available for future spending. An addional poron of the City’s net posion, $29,074,497 or 4%, represents resources that are subject to external restricons on how those resources can be used. The remaining balance of $158,22%) is available to be used to meet the government’s ongoing obligaons to cizens and creditors. At the end of the current scal year, the City reported a posive balance in all three categories of net posion, both for the government as a whole, as well as for its separate governmental and business-type acvies. The same situaon held true for the prior scal year. The net posion for governmental acvies and business-type acvies are summarized as follows: T abl e 1 Stateme nt of Net Position 23 As of September 30, 2024, the City had an overall increase in net posion of $38,110,357 for the primary government, which represents an increase of $13,335,485 for governmental acvies and an increase of 24,774,872 for business-type acvies. Details are in Table 2 as listed below. 2024 2023 2024 2023 2024 2023 Revenues Program revenues Charges for services 17,899,679$ 11,516,145$ 101,385,132$ 86,317,673$ 119,284,811$ 97,833,818$ Operating grants and contributions 10,617,394 3,639,508 - - 10,617,394 3,639,508 Capital grants and contributions 15,764,984 1,675,949 7,014,220 4,267,362 22,779,204 5,943,311 General revenues - - Property taxes 83,821,874 76,465,116 - - 83,821,874 76,465,116 Sales taxes 31,547,688 29,480,960 - - 31,547,688 29,480,960 Franchise taxes 7,735,536 7,573,389 - - 7,735,536 7,573,389 Hotel motel taxes 2,481,874 2,382,951 - - 2,481,874 2,382,951 Investment earnings (loss) 11,035,616 8,614,384 2,853,701 2,238,213 13,889,317 10,852,597 Miscellaneous 162,288 11,688,618 2,600,635 1,075,923 2,762,923 12,764,541 Total revenues 181,066,933 153,037,020 113,853,688 93,899,171 294,920,621 246,936,191 Expenses General government 36,583,521 29,565,683 - - 36,583,521 29,565,683 Public safety 67,135,182 57,988,034 - - 67,135,182 57,988,034 Public works 29,858,727 27,241,203 - - 29,858,727 27,241,203 Culture and recreation 31,337,978 29,952,582 - - 31,337,978 29,952,582 Community development 6,470,480 6,731,357 - - 6,470,480 6,731,357 Interest on long-term debt 4,022,874 4,966,234 - - 4,022,874 4,966,234 Water and sewer - - 57,160,608 54,520,345 57,160,608 54,520,345 Solid waste services - - 7,725,311 7,563,726 7,725,311 7,563,726 Drainage - - 1,808,497 1,588,923 1,808,497 1,588,923 Golf course - - 4,579,932 4,267,842 4,579,932 4,267,842 Allen event center - - 10,127,154 9,442,654 10,127,154 9,442,654 Total expenses 175,408,762 156,445,093 81,401,502 77,383,490 256,810,264 233,828,583 Change in net position before transfers 5,658,171 (3,408,073) 32,452,186 16,515,681 38,110,357 13,107,608 Transfers 7,677,314 5,712,575 (7,677,314) (5,712,575) - - Change in net position 13,335,485 2,304,502 24,774,872 10,803,106 38,110,357 13,107,608 Net position, beginning of year 488,169,464 485,864,962 191,004,986 180,201,880 679,174,450 666,066,842 Net position, end of year 501,504,949$ 488,169,464$ 215,779,858$ 191,004,986$ 717,284,807$ 679,174,450$ T a b l e 2 C ha ng e s i n N e t P o s it i on Governmental Activities Business-type Activities Total 24 Governmental Acvies Revenues – The following chart visually illustrates the City’s revenue by sources for governmental acvies: Charges for services 10%Operating grants and contributions 6% Capital grants and contributions 9% Property taxes 46% Sales taxes 18% Franchise taxes 4% Hotel motel taxes 1% Investment earnings 6% Miscellaneous 0% REV ENUES BY SOURCE -GOVE RNMENTAL A CTIVITIES Revenues for the City’s governmental acvies totaled $181,066,933, an increase of $28,029,913 (18%) from prior year. Major components of revenue increases and decreases are explained as follows: x Property taxes increased by $7,356,758 (10%), due to an increase in assessed value and new property addions. x Sales taxes increased by $2,066,728 (7%), as a result of beer than expected economic condions, the City of Allen is largely dependent upon retail sales. Consumers purchased more goods than expected. x Franchise taxes increased by $162,147 (2%), due to new growth in the City. x Hotel motel taxes increased by $98,923 (4%), as a result of increased tourism. x Charges for services increased by $6,383,534 (55%) primarily due to the opening of the Steven G. Terrell Recreaon Center. The City has also seen a signicant increase in nes revenues during the scal year. x Operang grants and contribuons increased by $6,977,886 (192%), due in large part to a reclassicaon of revenues previously classied as miscellaneous. These revenues were in large part non-grant intergovernmental revenues. x Capital grants and contribuons increased by $14,089,035 (841%) with an increase of construcon acvity in the City causing an increase in developer contribuons. x Investment earnings increased by $2,421,232 (28%) over prior year, as a result of higher interest rates and an increase in fair market values of investments during scal 2024. x Miscellaneous revenues decreased by $11,526,330 (99%) from prior year as a result of eorts to more properly classify reimbursement revenues based on source. The majority of these revenues were reclassied as charges for services and operang grants and contribuons. 25 Expenses for governmental acvies totaled $175,408,762, an increase of $18,963,669 (8%) from scal year 2023. Components of increases and decreases are explained as follows: x Expenses for General Government increased by $7,017,838 (24%), due primarily to the City’s strategic goal of contribung more reserve funding to its Facility Maintenance internal service fund. x Expenses for Public Safety increased by $9,147,148 (14%), due primarily to the scheduled salaries market adjustment for both Fire and Police departments and the expense of contribung to the internal service fund for equipment replacement. x Expenses for Public Works increased by $2,617,524 (10%), because the City is compleng its bond program. The increase can also be aributed to the large poron of depreciaon allocated to public service for improvements to City infrastructure. x Expenses for Culture and Recreaon increased by $1,385,396 (5%), due to it being the rst full scal year of operang costs to the Steven G. Terrell Recreaon Center. x Expenses for Community Development decreased $260,877 (4%) due mostly to decreases in Community Development Block Grant (CDBG) projects. Business-type Acvies Revenues from business-type acvies totaled $113,853,688, an increase of $19,954,517 , or 21%. Major components of the net increase are as follows: x Charges for services for business-type acvies increased by $15,067,459 (17%), due to an increase in water and sewer rates and a very dry summer. x Capital grants and contribuons increased by $2,746,858 (64%) over scal 2023 due to an increase in developer contribuons. x Miscellaneous revenues increased by $1,524,712 (142%) due to revenue from interlocal agreements. The following chart visually illustrates the City’s revenue by sources for business-type acvies: Charges for services 89% Capital grants and contributions 6% Investment earnings (loss) 3% Miscellaneous 2% R E VENUES BY S OURCE -BUSINESS-TYPE ACTIVITIES 26 Expenses for business-type acvies increased by $4,018,012, or 5%. The increase was due to an increase in cost of services and supplies. The following chart illustrates the relaonship between expenses and program revenues for business-type acvies: 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 Water and sewer Solid waste services Drainage Golf course Allen event center Expenses and Program Revenues -Business-type Activities Program Revenues Expenses FINANCIAL ANALYSIS OF THE GOVERNMENT ’S FUNDS Governmental Funds The focus of the City of Allen’s governmental funds is to provide informaon on near-term inows, oulows and balances of spendable resources. Such informaon is useful in assessing the City’s measure of a government’s net resources available for spending at the end of the scal year. At the end of the current scal year, the governmental funds reported a combined ending fund balance of 201,946,760, an increase of $76,870,797 or (61%) in comparison with the prior scal year. Approximately 17%, or $34,260,644, constutes unassigned fund balance, which is available for spending at the government’s discreon. The remaining fund balances are classied as non-spendable, restricted, or assigned to indicate that they are not available for new spending allocaon. The non-spendable poron totals $36,946 for both prepaid items and inventories. The restricted poron includes: $4,388,795 restricted for debt service, $112,630,874 restricted for capital expenditures, $2,605,761 restricted for tourism, 14,752,338 restricted for tax increment nancing agreements, and $4,851,043 restricted for other purposes detailed in the basic nancial statements and notes to the nancial statements. In addion, 26,437,292 was assigned to capital expenditures and $1,983,067 to neighborhood reinvestment. General Fund. The General Fund is the chief operang fund of the City. As of the end of the current scal year, the total unassigned fund balance was $34,260,644, while the total fund balance was $34,368,679. 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 26% or 3 months 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 $1,820,566 or 6% during the current scal year. This was the result of actual revenues signicantly exceeding budgeted revenues, especially in investment earnings, licenses, charges for services, and nes and forfeitures. A favorable investment acvity in local government 27 investment pools contributed to investment earning more than $2 Million over prior year and budgeted amounts. The General fund had expenditures in excess of appropriaons in the general government and public safety funcons due to addional contribuons to the City’s facility maintenance internal service fund and higher than expected personnel costs. These overages did not cause the City to go over total budget appropriaons of $299.6 Million City-wide and therefore did not cause an excess of expenditures over appropriaons at the legal level of budgetary control. Debt Service Fund. The Debt Service Fund balance of $4,388,795, all of which is restricted for the payment of debt, represents an increase from the prior year of $450,758 (11%). The increase was primarily related to the refunding of a poron of General Obligaon Bonds, Series 2013 and Series 2014. Capital Projects Fund. The General Capital Projects Fund provides informaon on cash nanced capital projects and had an ending fund balance of $28,420,359 at September 30, 2024, a decrease of $1,384,967 5%). The decrease was caused by the use of fund balance for capital projects. General Obligaon Bond Fund. The General Obligaon Bond Fund had an ending fund balance of 112,630,874, which represents an increase of $72,159,567 (178%) from the prior year. The increase was due to the issuance of General Obligaon Improvement and Refunding Bonds, Series 2024. The fund also had expenditures of $18,391,878 for the purchase and construcon of capital assets. Proprietary Funds The City’s proprietary funds provide informaon like the presentaon in the government-wide nancial statements, but in more detail. As of September 30, 2024, the unrestricted net posion for all enterprise funds were $81,538,814, an increase of $22,102,190 (34%) from prior year. Water and Sewer Fund. The Water and Sewer Fund had an ending net posion of $197,791,974, which represents an increase in net posion of $15,922,310 (9%). This change was as a result of an increase in water and sewer rates. 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 in a mid-year adjustment to meet year- end nal esmates. New projects are not added to the year-end esmate; only the cost of maintaining the current base operaon is revised as needed. As is customary, during scal year ended September 30, 2024, the City Council amended the budget for the General Fund one me. Adjustments made during scal year 2024 increased the original revenue budget by $2,301,496 and increased the expenditure budget by $3,760,897. Due to actual revenues over the revised budget by 5,057,375, and expenditures being more than the revised budget by $2,447,516 the City was able to increase the unassigned General Fund balance by $1,820,567, aer net transfers and other nancing sources and uses. The unassigned fund balance of $34,260,644 is equal to 24%, or 89 days of next year’s operang budget. CAPITAL ASSETS The City’s investment in capital assets for its governmental and business-type acvies as of September 30, 2024, was $660,737,00 (net of accumulated depreciaon). Investment in capital assets includes land and 28 improvements, buildings, vehicles, machinery and equipment, park land and facilies, and roads and bridges. About 77% of the capital assets are governmental and 23% represent business-type acvies. There was an increase of 3% in the investment in capital assets for the current scal year. 2024 2023 2024 2023 2024 2023 Land 176,321,479$ 168,211,753$ 4,091,626$ 4,091,626$ 180,413,105$ 172,303,379$ Construction in progress 79,372,216 69,476,814 18,605,322 28,553,669 97,977,538 98,030,483 Buildings 66,400,594 64,628,539 - - 66,400,594 64,628,539 Towers, tanks, and pump stations - - 82,673,061 107,883,393 82,673,061 107,883,393 Intangibles - - 7,461,370 7,727,847 7,461,370 7,727,847 Other improvements 169,289,376 175,953,014 36,637,498 882,943 205,926,874 176,835,957 Furniture and fixtures 81,371 136,519 - - 81,371 136,519 Vehicles 8,936,269 7,156,718 2,312,889 347,641 11,249,158 7,504,359 Machinery and equipment 5,920,998 6,644,308 2,632,938 1,110,085 8,553,936 7,754,393 Total 506,322,303$ 492,207,665$ 154,414,704$ 150,597,204$ 660,737,007$ 642,804,869$ T a b l e 3 C a p i t a l As s e ts a t Y e a r -e n d, N e t of A c c um u l a te d D e pr e c i a ti on/A m or t iza t ion Governmental Activities Business-type Activities Total The major governmental-type capital improvement projects and developer contribuons during the current scal year included the following: Developer Contributed Street, Alley, and Right-of-Way $15,764,984 Fire Staon #6 4,599,218 Allen Media Producons Center 1,232,668 Library Expansion – Phase II 2,135,462 Police Department Headquarters 1,633,939 Street construcon: Ridgeview Dr – Chelsea to US-75 $5,323,393 Highway Safety Improvement Project 778,378 Completed CIP Projects (not equal to current year expenditures) Tra c Signal Project $1,844,670 Collin County Community College District Gun Range 4,600,000 City Hall Waterproong 389,336 Business-type capital improvement projects and developer contribuons during the current scal year include the following: Developer Contributed Water Mains and Sewer Lines $ 4,432,507 Stacy Road Pump Staon Rehabilitaon 796,767 Advanced Meter Infrastructure 837,123 Completed CIP Projects (not equal to current year expenditures) Windridge 1&2 Water and Sewer Rehabilitaon $6,006,554 Tank Repaint Stacy & Bethany 1,275,791 24” Waterline Sloan Creek 4,859,838 Addional informaon on the City’s capital assets can be found in Note 3-C of this report. 29 2024 2023 2024 2023 2024 2023 2024 2023 Gross bonded debt General obligation bonds 169,025,000$ 100,895,000$ -$ -$ 169,025,000$ 100,895,000$ -$-$ Certificates of obligation 19,550,000 20,740,000 -- 19,550,000 20,740,000 -- Revenue bonds payable - - 24,180,000 25,825,000 24,180,000 25,825,000 -- Premiums and discounts 20,988,725 13,394,731 2,890,723 2,973,693 23,879,448 16,368,424 218,687 291,582 Sales tax revenue bonds - - - - - - 24,225,000 27,630,000 Tax notes 1,140,000 1,680,000 - -1,140,000 1,680,000 - - Total gross bonded debt 210,703,725 136,709,731 27,070,723 28,798,693 237,774,448 165,508,424 24,443,687 27,921,582 Other long-term debt Compensated absences 9,428,600 8,709,800 1,286,610 1,169,170 10,715,210 9,878,970 - - Net pension liability 37,675,672 44,094,117 5,594,881 6,582,950 43,270,553 50,677,067 - - Total OPEB liability 1,649,539 1,448,322 244,959 216,225 1,894,498 1,664,547 - - Leases 794,372 824,775 662,774 117,372 1,457,146 942,147 - - Financing arrangements - -31,974 47,514 31,974 47,514 - - Total other long-term debt 49,548,183 55,077,014 7,821,198 8,133,231 57,369,381 63,210,245 - - Total 260,251,908$ 191,786,745$ 34,891,921$ 36,931,924$ 295,143,829$ 228,718,669$ 24,443,687$ 27,921,582$ Component Units DEBT ADMINISTRATION As shown in Table 4, the City’s total outstanding long-term liabilies of the primary government at September 30, 2024, was $295,143,82. This includes gross bonded debt of $237,774,448 and other long- term debt of $57,369,38. Gross bonded debt includes general obligaon bonds, cercates of obligaon, revenue bonds, sales tax revenue bonds, tax notes, and premiums and discounts on gross bonded debt. Other long-term debt includes accrued compensated absences, net pension liability, total OPEB liability, leases, and nancing arrangements. Outstanding debts associated with the component units totaled 24,443,687. Out of which, $24,225,000 are secured by future sales tax revenue; and $218,687 are premiums and discounts from bond issuances. T ab l e 4 Outstanding Debt at Year-end Bonds and Other Long-Term Liabiliti es Governmental Activities Business-type Activities Total Primary Government During scal year 2024, the City issued General Obligaon Improvement and Refunding Bonds in the amount of $84,455,000. The revenue bond debt for both component units relates to debt issued to support public infrastructure improvements, land acquision, and construcon of the Allen Event Center. Total debt of the Component Units decreased by 12%. The underlying credit rangs from both Moody’s Investors Service and Standard and Poor’s for the City’s and Component Unit Bond types are shown below in Table 5. Addional informaon on the City’s long-term debt can be found in Note 5 to the basic nancial statements. Table 5 Bond Rangs Moody’s Investors Service Standard & Poor’s General Obligaon Bonds Aaa AAA Cercates of Obligaon Aaa AAA Water & Sewer Revenue Bonds n/a AAA CDC Sales Tax Revenue Bonds Aaa EDC Sales Tax Revenue Bonds Aaa 30 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The City of Allen, Texas connues to be nancially strong. Although the economy is the primary factor, the City’s elected and appointed ocials considered many factors when seng the scal year 2025 budget, tax rates and fees that will be charged for the business-type acvies. The priority for scal year 2025 connues to be maintaining quality service while observing prudent spending pracces. Highlights of the 2025 budget include: x Balanced budget, with total revenues equal to total expenditures x Property tax rate reduced to $0.4175 per $100 assessed value x Total City budget $348.8 million x General Fund budget $141 million x Sustained funding for equipment and facilies improvements x Addional 20 full-me equivalent (FTE) posions REQUEST FOR INFORMATION The nancial report is designed to provide our cizens, customers, investors, and creditors with a general overview of the City’s nances. If you have quesons about this report or need any addional informaon, please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626. Allen Economic Allen Community Governmental Business-Type Development Development Activities Activities Total Corporation Corporation ASSETS Cash and cash equivalents 186,472,845$ 46,368,982$ 232,841,827$ 12,480,544$ 14,733,870$ Investments 55,688,062 18,930,257 74,618,319 5,181,009 14,277,060 Receivables (net of allowance for uncollectibles) 9,364,736 22,280,056 31,644,792 2,396,101 2,434,955 Intergovernmental receivable 425,722 - 425,722 - - Prepaid items 229,000 - 229,000 5,000 - Inventories 30,257 101,950 132,207 - - Restricted cash and cash equivalents - 11,417,058 11,417,058 - - Land held for sale - - - 41,819,020 - Capital assets: Non-depreciable assets 255,693,695 22,696,948 278,390,643 - 15,871,514 Depreciable assets (net of accumulated depreciation/amortization) 250,628,608 131,717,756 382,346,364 727,966 38,305,997 TOTAL ASSETS 758,532,925 253,513,007 1,012,045,932 62,609,640 85,623,396 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 20,095,876 2,984,258 23,080,134 - - Deferred outflows of resources - OPEB 345,180 51,256 396,436 - - TOTAL DEFERRED OUTFLOWS OF RESOURCES 20,441,056 3,035,514 23,476,570 - - LIABILITIES Accounts payable 9,398,602 1,889,704 11,288,306 112,781 1,210,794 Accrued liabilities 3,337,691 440,284 3,777,975 26,583 9,539 Accrued interest payable 697,841 307,360 1,005,201 20,336 38,190 Customer deposits 2,850 1,090,286 1,093,136 - - Unearned revenue 952,897 1,196,632 2,149,529 - - Retainage payable 1,434,197 745,608 2,179,805 - 63,509 Non-current liabilities: Due within one year 15,001,040 1,835,457 16,836,497 1,580,000 1,935,000 Total OPEB liability - current 31,316 4,646 35,962 - - Due in more than one year 205,925,657 27,216,624 233,142,281 5,888,687 15,040,000 Net pension liability 37,675,672 5,594,881 43,270,553 - - Total OPEB liability 1,618,223 240,313 1,858,536 - - TOTAL LIABILITIES 276,075,986 40,561,795 316,637,781 7,628,387 18,297,032 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 710,074 105,447 815,521 - - Deferred inflows of resources - OPEB 682,972 101,421 784,393 - - TOTAL DEFERRED INFLOWS OF RESOURCES 1,393,046 206,868 1,599,914 - - NET POSITION Net investment in capital assets 404,047,053 125,811,570 529,858,623 727,966 36,343,888 Restricted for: Debt service 3,763,246 2,336,548 6,099,794 2,253,259 2,376,477 Net OPEB Asset 765,561 - 765,561 - Tourism 2,605,761 - 2,605,761 - - State and federal grants 238,514 - 238,514 - - Park acquisition and development 1,928,355 - 1,928,355 - - Tax increment financing 14,752,338 - 14,752,338 - - Other purposes 2,684,174 - 2,684,174 - - Unrestricted 70,719,947 87,631,740 158,351,687 52,000,028 28,605,999 TOTAL NET POSITION 501,504,949$ 215,779,858$ 717,284,807$ 54,981,253$ 67,326,364$ Primary Government As of September 30, 2024 Statement of Net Position City of Allen, Texas The notes to the financial statements are an integral part of this statement. 35 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Functions/Programs: PRIMARY GOVERNMENT: Governmental activities: General government 36,583,521$ 2,502,305$ 5,126,486$ -$ Public safety 67,135,182 2,811,849 2,220,974 - Public works 29,858,727 1,903,232 266,057 15,764,984 Culture and recreation 31,337,978 7,116,231 246,105 - Community development 6,470,480 3,566,062 2,757,772 - Interest 4,022,874 - - - Total governmental activities 175,408,762 17,899,679 10,617,394 15,764,984 Business-type activities: Water and sewer 57,160,608 75,772,356 - 7,014,220 Solid waste 7,725,311 8,511,164 - - Drainage 1,808,497 2,417,885 - - Golf course 4,579,932 6,685,903 - - Allen event center 10,127,154 7,997,824 - - Total business-type activities 81,401,502 101,385,132 - 7,014,220 TOTAL PRIMARY GOVERNMENT 256,810,264$ 119,284,811$ 10,617,394$ 22,779,204$ COMPONENT UNITS Allen Economic Development Corporation 6,367,914$ -$ -$ -$ Allen Community Development Corporation 10,519,628 - - - TOTAL COMPONENT UNITS 16,887,542$ -$ -$ -$ General revenues: Property taxes Sales taxes Franchise taxes Hotel occupancy taxes Unrestricted investment earnings Gain on sale of capital assets Miscellaneous Transfers Total general revenues and transfers CHANGE IN NET POSITION NET POSITION - 9/30/2023 NET POSITION - 9/30/2024 City of Allen, Texas Program Revenues For the Year Ended September 30, 2024 Statement of Activities The notes to the financial statements are an integral part of this statement. 36 Allen Economic Allen Community Governmental Business-type Development Development Activities Activities Total Corporation Corporation 28,954,730)$ -$ (28,954,730)$ -$ -$ 62,102,359) - (62,102,359) - - 11,924,454) - (11,924,454) - - 23,975,642) - (23,975,642) - - 146,646) - (146,646) - - 4,022,874) - (4,022,874) - - 131,126,705) - (131,126,705) - - 25,625,968 25,625,968 - - 785,853 785,853 - - 609,388 609,388 - - 2,105,971 2,105,971 - - 2,129,330) (2,129,330) - - 26,997,850 26,997,850 - - 131,126,705)$ 26,997,850$ (104,128,855)$ -$ -$ 6,367,914)$ -$ 10,519,628) 6,367,914)$ (10,519,628)$ 83,821,874 - 83,821,874 - - 31,547,688 - 31,547,688 15,528,579 15,528,579 7,735,536 - 7,735,536 - - 2,481,874 - 2,481,874 - - 11,035,616 2,853,701 13,889,317 750,805 1,340,736 9,650 9,650 - 5,231 162,288 2,590,985 2,753,273 710,068 41,279 7,677,314 (7,677,314) - - - 144,462,190 (2,222,978) 142,239,212 16,989,452 16,915,825 13,335,485 24,774,872 38,110,357 10,621,538 6,396,197 488,169,464 191,004,986 679,174,450 44,359,715 60,930,167 501,504,949$ 215,779,858$ 717,284,807$ 54,981,253$ 67,326,364$ Net (Expense) Revenue and Changes in Net Position Primary Government Component Units The notes to the financial statements are an integral part of this statement. 37 General Capital General Debt Service Projects ASSETS Cash and cash equivalents 13,997,466$ 4,399,464$ 11,844,222$ Investments 21,070,109 - 18,341,896 Receivables, net of allowances for uncollectibles Ad valorem taxes 239,970 72,292 - Sales taxes 4,760,021 - - Franchise and right-of-way fees 1,862,054 - - Municipal court 199,820 - - Accounts receivable 1,658,389 - - Accrued interest 81,087 - 65,373 Due from other governments 79,377 - 75,713 Inventories 30,257 - - Prepaid items 6,689 - - TOTAL ASSETS 43,985,239$ 4,471,756$ 30,327,204$ LIABILITIES Accounts payable 4,703,774 10,669 1,552,202 Accrued liabilities 3,010,240 - 154,204 Retainage payable 36,995 - 200,439 Deposits payable 2,850 - - Unearned revenue 393,589 - - TOTAL LIABILITIES 8,147,448 10,669 1,906,845 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - ad valorem taxes 239,970 72,292 - Unavailable Revenue - ambulance 1,006,858 - - Unavailable Revenue - police alarms 22,464 - - Unavailable Revenue - municipal court 199,820 - - TOTAL DEFERRED INFLOWS OF RESOURCES 1,469,112 72,292 - FUND BALANCES Nonspendable Prepaid items 6,689 - - Inventories 30,257 - - Restricted Debt service - 4,388,795 - Capital expenditures - - - Tourism - - - State and federal grants - - - Park acquisition and development - - - Tax increment financing agreement - - - Other purposes 71,089 - - Assigned Capital expenditures - - 26,437,292 Neighborhood reinvestment - - 1,983,067 Unassigned 34,260,644 - - TOTAL FUND BALANCES 34,368,679 4,388,795 28,420,359 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 43,985,239$ 4,471,756$ 30,327,204$ September 30, 2024 Balance Sheet - Governmental Funds City of Allen, Texas The notes to the financial statements are an integral part of this statement. 38 General Other Total Obligation Governmental Governmental Bond Funds Funds 111,163,507$ 18,832,502$ 160,237,161$ 3,301,366 4,304,041 47,017,412 312,262 4,760,021 15,107 1,877,161 199,820 7,653 253,315 1,919,357 12,705 16,564 175,729 270,632 425,722 30,257 6,689 114,485,231$ 23,692,161$ 216,961,591$ 874,292 639,112 7,780,049 160,857 3,325,301 980,065 194,831 1,412,330 2,850 559,308 952,897 1,854,357 1,554,108 13,473,427 312,262 1,006,858 22,464 199,820 1,541,404 6,689 30,257 4,388,795 112,630,874 - 112,630,874 2,605,761 2,605,761 238,514 238,514 1,928,355 1,928,355 14,752,338 14,752,338 2,613,085 2,684,174 26,437,292 1,983,067 34,260,644 112,630,874 22,138,053 201,946,760 114,485,231$ 23,692,161$ 216,961,591$ The notes to the financial statements are an integral part of this statement. 39 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds 201,946,760$ 936,334,765 439,630,035) Deferred outflows of resources - pension 20,095,876 Deferred inflows of resources - pension (710,074) Deferred outflows of resources - OPEB 345,180 Deferred inflows of resources - OPEB (682,972) 43,213,794 General obligation bonds payable (169,025,000) Certificates of obligation payable (19,550,000) Tax notes payable (1,140,000) Leases payable (794,372) Accrued interest payable on long-term debt (697,841) Compensated absences (9,428,600) Net pension liability (37,675,672) Total OPEB liability (1,649,539) Premiums on general obligation bonds (20,988,725) 1,541,404 Net position of governmental activities 501,504,949$ Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position City of Allen, Texas Accumulated depreciation Total capital assets Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. Internal service funds are used by management to charge the cost of fleet management and risk management to individual funds. The assets, deferred outflows of resources, liabilities,and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position. This is net of the amount allocated to business-type activities ($9,180,626). Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds: Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Revenues earned but not available within sixty days of the fiscal year-end are not recognized as revenue in the funds. September 30, 2024 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position. The notes to the financial statements are an integral part of this statement. 41 General Capital General Debt Service Projects REVENUES Taxes Ad valorem taxes 62,144,429$ 18,689,627$ -$ Sales taxes 31,360,809 - - Franchise and right-of-way fees 7,642,112 - - Hotel occupancy taxes - - - Licenses, permits and fees 3,846,034 - - Charges for services 9,073,053 - 1,492,084 Fines and forfeitures 1,815,041 - - Intergovernmental 2,069,112 - 2,688,131 Investment earnings 6,815,962 606,486 1,696,061 Gifts and contributions 2,744,347 - 30,000 Miscellaneous 165,782 - - TOTAL REVENUES 127,676,681 19,296,113 5,906,276 EXPENDITURES Current General government 31,116,493 - 2,341,486 Public safety 62,652,800 - 1,095,113 Public works 7,729,175 - 2,819,798 Culture and recreation 25,457,095 - - Community development 4,488,521 - 208,946 Capital outlay 954,211 - 2,150,900 Debt Service Principal retirement 666,255 13,635,000 - Interest and fiscal charges 23,207 5,199,856 - Issuance costs - 46,824 - TOTAL EXPENDITURES 133,087,757 18,881,680 8,616,243 Excess (deficiency) of revenues over (under) expenditures (5,411,076) 414,433 (2,709,967) OTHER FINANCING SOURCES (USES) Transfers in 8,221,810 - 1,325,000 Transfers out (1,673,198) - - Issuance of bonds - 3,955,000 - Premium on bonds issued - 511,481 - Payment to escrow agent - (4,430,156) - Leases 635,852 - - Insurance recoveries 37,898 - - Proceeds from sale of capital assets 9,280 - - TOTAL OTHER FINANCING SOURCES (USES) 7,231,642 36,325 1,325,000 NET CHANGE IN FUND BALANCES 1,820,566 450,758 (1,384,967) FUND BALANCES - 9/30/2023, as previously presented 32,548,113 3,938,037 29,805,326 Change within financial reporting entity (major to nonmajor fund) - - - FUND BALANCES - 9/30/2023, as restated 32,548,113 3,938,037 29,805,326 FUND BALANCES - 9/30/2024 34,368,679$ 4,388,795$ 28,420,359$ City of Allen, Texas Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the Year Ended September 30, 2024 The notes to the financial statements are an integral part of this statement. 42 General Previously Other Total Obligation reported as major: Governmental Governmental Bond Grants Funds Funds 2,864,772$ 83,698,828$ 186,879 31,547,688 93,424 7,735,536 2,481,874 2,481,874 1,475,450 5,321,484 10,565,137 211,391 2,026,432 3,018,642 7,775,885 1,157,458 - 759,649 11,035,616 2,774,347 781 - 15,001 181,564 1,158,239 - 11,107,082 165,144,391 227,318 - 984,895 34,670,192 30,339 - 89,074 63,867,326 2,828,484 - - 13,377,457 2,311,354 27,768,449 1,680,333 6,377,800 14,583,348 - 2,357,091 20,045,550 14,301,255 5,223,063 722,389 - - 769,213 18,391,878 - 7,422,747 186,400,305 17,233,639) - 3,684,335 (21,255,914) 584,847 10,131,657 336,836) - (444,309) (2,454,343) 80,500,000 - - 84,455,000 9,230,042 - - 9,741,523 4,430,156) 635,852 37,898 9,280 89,393,206 - 140,538 98,126,711 72,159,567 - 3,824,873 76,870,797 40,471,307 238,514 18,074,666 125,075,963 238,514) 238,514 - 40,471,307 - 18,313,180 125,075,963 112,630,874$ -$ 22,138,053$ 201,946,760$ The notes to the financial statements are an integral part of this statement. 43 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance - total governmental funds 76,870,797$ 1,820,877) Contributed capital assets 15,764,984 Gain (loss) on sale of assets (1,168,569) Issuance of bonds and payment to escrow agent (80,024,844) Premium on bonds issued (9,741,523) Bond and lease principal paid 14,301,255 Amortization of bond premiums and refunding 2,147,528 Deferred loss/gain on refunding charges (126,692) Issuance of leases (635,852) 326,994 Accrued interest on long-term debt (51,434) Changes in compensated absences (718,800) 1,209,187) 733,032) Changes in unavailable revenue 154,737 Change in net position of governmental activities 13,335,485$ Changes in pension liabilities and related deferred outflows and inflows of resources Changes in OPEB liabilities and related deferred outflows and inflows of resources Year Ended September 30, 2024 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities City of Allen, Texas Some revenues and expenses reported in the statement of activities do not provide or require the use of current financial resources and, therefore, are not reported in the governmental funds. Internal service funds are used by management to charge thecostof certain activities such as insurance, asset replacement, and facility maintenance, 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. Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlays expense in the current period. The net effect of various miscellaneous transactions involving capitals assets (i.e. sales, trade-ins, and donations) increases (decreases) net position. The notes to the financial statements are an integral part of this statement. 45 Governmental Activities Total Nonmajor Total Internal Water and Enterprise Enterprise Service Sewer Funds Funds Funds ASSETS CURRENT ASSETS Cash and cash equivalents 32,206,876$ 8,614,593$ 40,821,469$ 31,783,197$ Investments 16,727,034 1,353,719 18,080,753 9,520,154 Receivables, net of allowances for uncollectibles: Accounts 20,136,174 2,069,515 22,205,689 87,018 Accrued Interest 65,888 5,210 71,098 36,637 Inventories - 101,950 101,950 - Prepaid items - - - 222,311 Restricted cash and cash equivalents 11,417,058 - 11,417,058 - TOTAL CURRENT ASSETS 80,553,030 12,144,987 92,698,017 41,649,317 NONCURRENT ASSETS CAPITAL ASSETS Land 4,091,626 - 4,091,626 - Construction in Progress 18,605,322 - 18,605,322 580,275 Towers, tanks and pump stations 196,225,055 - 196,225,055 - Other improvements 43,846,000 1,230,546 45,076,546 - Intangible assets 7,994,325 - 7,994,325 - Machinery and equipment 2,403,038 2,349,493 4,752,531 7,046,364 Vehicles 914,075 437,815 1,351,890 25,843,394 Less: accumulated depreciation/amortization (124,363,711) (2,104,121) (126,467,832) (21,067,219) TOTAL NONCURRENT ASSETS 149,715,730 1,913,733 151,629,463 12,402,814 TOTAL ASSETS 230,268,760 14,058,720 244,327,480 54,052,131 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 1,562,524 1,421,734 2,984,258 - Deferred outflows of resources - OPEB 26,838 24,418 51,256 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,589,362 1,446,152 3,035,514 - LIABILITIES CURRENT LIABILITIES Accounts payable 780,626 1,104,177 1,884,803 560,651 Accrued liabilities 169,121 271,163 440,284 12,390 Retainage payable 745,608 - 745,608 21,867 Financing arrangements - current - 16,311 16,311 - Leases - current - 141,824 141,824 - Compensated absences - current 116,489 140,833 257,322 - Total OPEB liability - current 2,433 2,213 4,646 - Unearned revenue 153,992 1,042,640 1,196,632 - Incurred but not reported claims - - - 1,062,803 Payable from restricted assets: Revenue bonds payable - current 1,420,000 - 1,420,000 - Accrued interest payable 307,360 - 307,360 - Customer deposits payable 1,090,286 - 1,090,286 - TOTAL CURRENT LIABILITIES 4,785,915 2,719,161 7,505,076 1,657,711 NONCURRENT LIABILITIES Revenue bonds payable 25,650,723 - 25,650,723 - Financing arrangements - 15,663 15,663 - Leases - 520,950 520,950 - Net pension liability 2,929,416 2,665,465 5,594,881 - Total OPEB liability 125,825 114,488 240,313 - Compensated absences 465,955 563,333 1,029,288 - TOTAL NONCURRENT LIABILITIES 29,171,919 3,879,899 33,051,818 - TOTAL LIABILITIES 33,957,834 6,599,060 40,556,894 1,657,711 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 55,211 50,236 105,447 - Deferred inflows of resources - OPEB 53,103 48,318 101,421 - TOTAL DEFERRED INFLOWS OF RESOURCES 108,314 98,554 206,868 - NET POSITION Net investment in capital assets 121,812,245 1,218,985 123,031,230 12,094,813 Restricted for debt service 2,336,548 - 2,336,548 - Unrestricted 73,643,181 7,588,273 81,231,454 40,299,607 TOTAL NET POSITION 197,791,974$ 8,807,258$ 206,599,232$ 52,394,420$ Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time. 9,180,626 Net position of business-type activities 215,779,858$ September 30, 2024 Statement of Net Position - Proprietary Funds City of Allen, Texas Enterprise Funds Business-type Activities The notes to the financial statements are an integral part of this statement. 47 Previously reported as major: Previously reported as major: Previously reported as major: Water and Solid Golf Sewer Waste Drainage Course OPERATING REVENUES Charges for services: Water sales 40,045,794$ -$ -$ -$ Sewer charges 29,039,194 - - - Connection fees 73,647 - - - Garbage collections - - - - Service charges 803,714 - - - Drainage fees - - - - Insurance recoveries 75,945 - - - Miscellaneous 892,947 - - - TOTAL OPERATING REVENUES 70,931,241 - - - OPERATING EXPENSES Personnel services 7,151,460 - - - Contractual services 39,373,960 - - - Maintenance 2,820,825 - - - Supplies 423,983 - - - Depreciation and amortization 6,512,419 - - - TOTAL OPERATING EXPENSES 56,282,647 - - - OPERATING INCOME (LOSS) 14,648,594 - - - NON-OPERATING REVENUES (EXPENSES) Investment earnings 2,613,834 - - - Interest expense (877,962) - - - Gain on disposal of capital assets 9,650 - - - TOTAL NON-OPERATING REVENUES (EXPENSES) 1,745,522 - - - INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 16,394,116 - - - CAPITAL CONTRIBUTIONS AND TRANSFERS Development fees 2,581,713 - - - Capital contributions 4,432,507 - - - Transfers in 68,019 - - - Transfers out (7,554,045) - - - TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS (471,806) - - - CHANGE IN NET POSITION 15,922,310 - - - NET POSITION - 9/30/2023, as previously presented 181,869,664 2,858,733 2,534,142 2,838,243 Change within financial reporting entity (major to nonmajor fund) - (2,858,733) (2,534,142) (2,838,243) NET POSITION - 9/30/2023, as restated 181,869,664 - - - NET POSITION - 9/30/2024 197,791,974$ -$ -$ -$ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds. Changes in net position of business-type activities For the year ended September 30, 2024 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds City of Allen, Texas Enterprise Funds Business-type Activities The notes to the financial statements are an integral part of this statement. 48 Governmental Activities Previously reported as major:Total Nonmajor Total Internal Allen Event Enterprise Enterprise Service Center Funds Funds Funds 40,045,794$ -$ 29,039,194 - 73,647 - 8,511,164 8,511,164 - 13,030,335 13,834,049 23,846,892 2,277,643 2,277,643 - 25,057 101,002 2,821,589 1,597,036 2,489,983 877,900 25,441,235 96,372,476 27,546,381 6,778,942 13,930,402 645,787 14,652,059 54,026,019 17,436,514 1,738,935 4,559,760 506,249 654,582 1,078,565 121,820 409,017 6,921,436 2,800,981 24,233,535 80,516,182 21,511,351 1,207,700 15,856,294 6,035,030 239,867 2,853,701 1,641,238 7,359) (885,321) - 9,650 254,368 232,508 1,978,030 1,895,606 1,440,208 17,834,324 7,930,636 2,581,713 - 4,432,507 - 901,351 969,370 - 1,092,639) (8,646,684) - 191,288) (663,094) - 1,248,920 17,171,230 7,930,636 672,780) - 44,463,784 672,780 7,558,338 - 7,558,338 44,463,784 8,807,258$ 52,394,420$ 7,603,642 24,774,872$ Enterprise Funds Business-type Activities The notes to the financial statements are an integral part of this statement. 49 Total Nonmajor Total Internal Water and Enterprise Enterprise Service Sewer Funds Funds Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 66,736,073$ 24,842,948$ 91,579,021$ 3,699,489$ Cash received from transactions with other funds - - - 23,881,098 Cash paid to employees for salaries and benefits (6,913,697) (6,613,109) (13,526,806) (633,397) Cash paid for goods and services (45,202,073) (16,879,236) (62,081,309) (1,307,308) Cash paid for claims - - - (17,638,746) NET CASH PROVIDED BY OPERATING ACTIVITIES 14,620,303 1,350,603 15,970,906 8,001,136 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in from other funds 68,019 901,351 969,370 - Transfers out to other funds (7,554,045) (1,092,639) (8,646,684) - NET CASH USED FOR NON-CAPITAL FINANCING ACTIVITIES (7,486,026) (191,288) (7,677,314) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Contributions from developers 2,581,713 - 2,581,713 - Acquisition and construction of capital assets (2,594,659) (205,710) (2,800,369) (6,925,322) Proceeds from sale of capital assets 9,650 - 9,650 254,368 Principal paid on capital debt (1,645,000) (190,956) (1,835,956) - Interest and fees paid on capital debt (974,357) (7,360) (981,717) - NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES (2,622,653) (404,026) (3,026,679) (6,670,954) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 2,738,924 242,755 2,981,679 1,672,889 Proceeds from sale of investments 6,525,033 398,951 6,923,984 5,245,703 NET CASH PROVIDED BY INVESTING ACTIVITIES 9,263,957 641,706 9,905,663 6,918,592 NET CHANGE IN CASH AND CASH EQUIVALENTS 13,775,581 1,396,995 15,172,576 8,248,774 CASH AND CASH EQUIVALENTS - BEGINNING 29,848,353 7,217,598 37,065,951 23,534,423 CASH AND CASH EQUIVALENTS - ENDING 43,623,934$ 8,614,593$ 52,238,527$ 31,783,197$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Net operating income 14,648,594$ 1,207,700$ 15,856,294$ 6,035,030$ Adjustments to reconcile income to net cash provided by operating activities: Depreciation and amortization expense 6,512,419 409,017 6,921,436 2,800,981 Increase) decrease in accounts receivable (8,745,140) (594,107) (9,339,247) 34,206 Increase) decrease in other receivables 4,458,928 470,113 4,929,041 - Increase) decrease in prepaid items - - - (100,387) Increase) decrease in inventories - (12,582) (12,582) - Increase) decrease in pension related deferred outflows 489,507 595,833 1,085,340 - Increase) decrease in OPEB related deferred outflows 2,515 4,440 6,955 - Increase (decrease) in accounts payable (2,455,614) 179,317 (2,276,297) (850,246) Increase (decrease) in retainage payable (127,691) (395) (128,086) 21,867 Increase (decrease) in accrued liabilities 38,381 71,263 109,644 12,390 Increase (decrease) in unearned revenue 153,992 746,189 900,181 - Increase (decrease) in deposits payable (62,948) (1,220,482) (1,283,430) - Increase (decrease) in incurred but not reported claims - - - 47,295 Increase (decrease) in net pension liability (389,932) (598,137) (988,069) - Increase (decrease) in total OPEB liability 19,230 9,504 28,734 - Increase (decrease) in compensated absences 52,097 65,343 117,440 - Increase (decrease) in pension related deferred inflows 36,715 32,050 68,765 - Increase (decrease) in OPEB related deferred inflows (10,750) (14,463) (25,213) - Total adjustments (28,291) 142,903 114,612 1,966,106 NET CASH PROVIDED BY OPERATING ACTIVITIES 14,620,303$ 1,350,603$ 15,970,906$ 8,001,136$ NON-CASH INVESTING ACTIVITIES Change in the fair value of investments 83,055 - 83,055 - NON-CASH FINANCING ACTIVITIES Contributions of capital assets from developers 4,432,507 - 4,432,507 - RECONCILIATION OF TOTAL CASH TO THE STATEMENT OF NET POSITION Cash and cash equivalents - current 32,206,876$ 8,614,593$ 40,821,469$ 31,783,197$ Restricted cash and cash equivalents 11,417,058 - 11,417,058 - CASH AND CASH EQUIVALENTS - END OF YEAR 43,623,934$ 8,614,593$ 52,238,527$ 31,783,197$ City of Allen, Texas Statement of Cash Flows - Proprietary Funds For the year ended September 30, 2024 Business-type Activities Enterprise Funds The notes to the financial statements are an integral part of this statement. 51 EEŽ Ž City of Allen, Texas Notes to the Financial Statements 55 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. 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 operang under a Council-Manager form of government. Allen City Council, which consists of the mayor and six councilmembers, is elected citywide by Allen voters and not by district. The mayor and councilmembers serve three-year, staggered terms of oce. The City provides such services as are authorized by its charter to advance the welfare, health, comfort, safety and convenience of its inhabitants. The accounng and reporng policies of the City relang to the funds included in the accompanying basic nancial statements conform to accounng principles generally accepted in the United States of America applicable to state and local governments. Generally accepted accounng principles for local governments include those principles prescribed by the Governmental Accounng Standards Board (GASB), and the American Instute of Cered Public Accountants in the publicaon entled Audits of State and Local Governmental Units. The more signicant accounng policies of the City are described below. B. Financial Reporng Enty As required by accounng principles generally accepted in the United States of America, the nancial statements of the City include the primary government and organizaons for which the primary government is nancially accountable and other organizaons for which the nature and signicance of their relaonship with the primary government are such that exclusion would cause the reporng enty's nancial statements to be misleading or incomplete. The City is nancially accountable for legally separate organizaons if its ocials appoint a vong majority of an organizaon's governing body and either it can impose its will on that organizaon or there is a potenal for the organizaon to provide specic nancial benets to, or to impose specic nancial burdens on, the primary government. A primary government may also be nancially accountable for governmental organizaons that are scally dependent on it. A primary government can impose its will on an organizaon if it can signicantly inuence the programs, projects, or acvies of, or the level of services performed or provided by, the organizaon. A nancial benet or burden relaonship exists if the primary government (a) is entled to the organizaon's resources; (b) is legally obligated or has otherwise assumed the obligaon to nance the decits of, or provide nancial support to, the organizaon; or (c) is obligated in some manner for the debt of the organizaon. Some organizaons are included as component units because of their scal dependency on the primary government. An organizaon is scally 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 enes were found to be component units of the City and are included in the basic nancial statements: Allen Economic Development Corporaon (AEDC) - The AEDC is responsible for aiding, promong and furthering economic development within the City. City of Allen, Texas Notes to the Financial Statements 56 Allen Community Development Corporaon (ACDC) - The ACDC is responsible for supporng the improvements in community parks and recreaon, 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 scally 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 benet the community rather than the City itself. The AEDC and ACDC are discretely presented as governmental fund types and do not issue separate nancial statements. C. Basis of Presentaon The government-wide nancial statements (i.e., the statement of net posion and the statement of acvies) report informaon on all acvies of the primary government and its component units. The eect of interfund acvity, within the governmental and business-type acvies columns, has been removed from these statements; however, interfund services provided and used are not eliminated in the process of consolidaon. Governmental acvies, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type acvies, which rely to a signicant extent on fees and charges for support. Addionally, the primary government is reported separately from the legally separate component units for which the primary government is nancially accountable. The statement of acvies demonstrates the degree to which the direct expenses of a given program are oset by program revenues. Direct expenses are those that are clearly idenable with a specic program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benet from goods, services, or privileges provided by a given program and 2) operang or capital grants and contribuons that are restricted to meeng the operaonal or capital requirements of a specic program. Taxes and other items not properly included among program revenues are reported instead as general revenues. D. Adopon of New Accounng Standards- GASB 100 (Accounng Changes and Error Correcons) GASB Statement No. 100, Accounng Changes and Error Correcons (GASB 100), provides guidance meant to enhance accounng and nancial reporng requirements for accounng changes and error correcons to provide more understandable, reliable, relevant, consistent, and comparable informaon for making decisions or assessing accountability. The statement focuses on accounng changes that fall under the categories of changes in accounng principles, changes in accounng esmates, and changes to or within the nancial reporng enty. The statement also addresses correcons of errors in previously issued nancial statements and provides specic guidance on the disclosure of the eect and nature of the error and it’s correcon. E. Fund Financial Statements The City segregates transacons related to certain funcons or acvies in separate funds to aid nancial management and to demonstrate legal compliance. Separate statements are presented for governmental funds and proprietary funds. These statements present each major fund as a separate column on the fund nancial statements; all nonmajor funds are aggregated and presented in a single column. City of Allen, Texas Notes to the Financial Statements 57 Governmental funds are those funds through which most governmental funcons typically are nanced. The measurement focus of governmental funds is on the sources, uses and balances of current nancial resources. The City has presented the following major governmental funds: General Fund. The General Fund is the general operang fund of the City. It is used to account for all nancial 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 operang expenditures, xed 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 accumulaon of nancial 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. General Capital Projects Fund. The General Capital Projects Fund is used to account for resources used for the acquision and/or construcon of capital facilies by the City, except those nanced by proprietary funds and not accounted for by another capital projects fund. General Obligaon Bond Capital Projects Fund. The General Obligaon Bond Fund is used to account for nancing, acquisions, and construcon of improvements to City facilies and infrastructure not accounted for by other bond funds. Business-type acvies and all proprietary funds are accounted for on a ow of economic resources measurement focus and the accrual basis of accounng. The accounng objecves are determinaons of net income, nancial posion and cash ow. All assets and liabilies are included on the Statement of Net Posion. Proprietary funds disnguish operang revenues and expenses from non-operang items. Operang revenues and expenses generally result from providing services and producing and delivering goods relang to a proprietary fund’s principal ongoing operaons. Operang expenses for the proprietary funds include the cost of personnel and contractual services, supplies and depreciaon/amorzaon on capital assets. All revenues and expenses not meeng this denion are reported as non-operang 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. Acvies for the fund include administraon, operaons and maintenance of the water and sewer system and billing and collecon acvies. The fund also accounts for the accumulaon of resources for, and the payment of, long-term water and sewer debt. All costs are nanced through charges to ulity customers with rates reviewed regularly and adjusted, if necessary, to ensure integrity of the fund. City of Allen, Texas Notes to the Financial Statements 58 Addionally, 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 acquision 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 compensaon, 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 accumulaon of resources will help address major building repairs and prevent building deterioraon. F. Measurement Focus and Basis of Accounng Measurement focus refers to what is being measured. Basis of accounng refers to when revenues and expenditures are recognized in the accounts and reported in the nancial statements. Basis of accounng relates to the ming of the measurement made, regardless of the measurement focus applied. The government-wide statements and fund nancial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounng. The economic resources measurement focus means all assets and liabilies (whether current or non-current) are included on the statement of net posion and the operang statements present increases (revenues) and decreases expenses) in total net posion. Under the accrual basis of accounng, revenues are recognized when earned, including unbilled water and sewer services which are accrued. Expenses are recognized at the me the liabilies are incurred. Governmental fund nancial statements are reported using the current nancial resources measurement focus and the modied accrual basis of accounng. Under the modied accrual basis of accounng, revenues are recognized when suscepble to accrual, i.e., when they become both measurable and available. “Measurable” means the amount of the transacon can be determined, and “available” means collecble within the current period or soon enough thereaer to be used to pay liabilies of the current period. The City considers all revenues as available if they are collected within 60 days aer 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 obligaons are expected to be liquidated with expendable available nancial resources. The revenues suscepble 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 me. G. Budgetary Informaon Budgetary basis of accounng Annual budgets are adopted on a basis consistent with generally accepted accounng principles for the general fund, debt service fund, and several nonmajor governmental funds. The general capital projects City of Allen, Texas Notes to the Financial Statements 59 and general obligaon bond funds are appropriated on a project-length basis. Other funds do not have appropriated budgets since other means control the use of the resources (e.g. availability and restricon requirements) and somemes span a period of more than one scal year. The appropriated budget is adopted at the City-wide level. The City’s department heads may make transfers of appropriaons within a department. Transfers of appropriaons between departments require the approval of the City Manager. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriaons) is the fund level. H. Cash, Cash Equivalents, and Investments State statutes and policy as established by the City Council authorize the City to invest in cercates of deposit, direct obligaons of the U.S. Treasury, investment pools consisng of such U.S. Treasury obligaons, repurchase agreements, commercial paper and mutual funds. Substanally all operang cash and cash equivalents are maintained in pooled cash and me deposit accounts. Interest income relang 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 ows, 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 amorzed cost when original maturity at the me of purchase is less than one year or at market if greater than one year. I. 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 esmated market value and cered by the Appraisal Review Board. The assessed value upon which the 2023 levy was based is $19,922,834,991. Taxes are due on October 1st and are delinquent aer the following January 31st. The City is permied by Arcle XI, Secon 5 of the State of Texas Constuon to levy taxes up to $2.50 per $100 of assessed valuaon for general governmental services, including the payment of principal and interest on general obligaon long-term debt. For the year ended September 30, 2024, the combined tax rate to nance general government services, including the payment of principal and interest on long-term debt, was $0.4205 per $100 of assessed valuaon. 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 raos. 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 acon. Under this legislaon, the City connues to set tax rates on City property. However, if the eecve maintenance and operaons tax rate, increased by 8% excluding other contractual obligaons, adjusted for new improvements, plus the calculated debt tax rate is less than the proposed city tax rate, then qualied voters of the City may peon for an elecon to determine whether to limit the tax rate to no more than the rollback tax rate. City of Allen, Texas Notes to the Financial Statements 60 J. Transacons Between Funds and Between Funds and Component Units Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transac ons that constute reimbursements to a fund for expenditures/expenses inially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as a reducon of expenditures/expenses in the fund reimbursed. All other interfund transacons, except transacons between the component units and the primary government are recorded as transfers. Transac ons between the component units and the primary government are accounted for as external transacons (revenues and expenses). During the scal year ended September 30, 2024, the General Fund contributed $202,068 to AEDC to service debt beneng the City. The ACDC contributed $3,450,833 to the City during the scal year: $1,887,850 to the General Fund to service debt related to the Terrell Recreaon Center, $492,983 to the General Fund for general and administrave costs, $120,000 in sponsorship of the Allen USA Celebraon, and $950,000 in operaonal support funds to the Allen Event Center. The AEDC contributed $112,495 to the General Fund during the year for general and administrave costs. These revenues were reected as operang grants and contribuons for the primary government in the government-wide statement of acvies. K. Inventories and Prepaid Items Inventories are valued at cost using the rst-in, rst-out method for fuel. The inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories for the Golf Course Pro Shop and Event Center food and beverage are valued at cost using the rst-in-rst out method. The inventories of enterprise funds are recorded as expenditures when purchased and adjusted with an inventory count at yearend. Payments made to vendors for services that will provide benet in subsequent scal periods are recorded as prepaid items in both the government-wide and fund nancial statements. Prepaid items are reported as non-spendable fund balance in the governmental funds in the fund nancial statements to signify that a poron of fund balance is not available for other subsequent expenditures. The consumpon method is used in the fund nancial statements. L. Special Assessments The City has the authority to make special assessments to property owners as part of the nancing 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). City of Allen, Texas Notes to the Financial Statements 61 M. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type acvies columns in the government-wide nancial statements and in the fund nancial statements for proprietary funds. All capital assets are valued at historical cost or esmated historical cost if actual historical cost is not available. Donated assets are valued at acquision 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 beerments are capitalized. Interest has not been capitalized during the construcon 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 depreciaon of regular capital assets. Capital assets and right-to-use assets of the City are depreciated and amorzed using the straight-line method over the following esmated useful lives: Buildings 10 - 40 Years Right-to-use 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 fixtures 5 - 10 Years Other improvements 2 - 30 Years Right-to-use equipment Lease Term 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 acquisions and replacements. N. Compensated Absences City employees earn vacaon and sick leave, which may either be taken or accumulated up to certain amounts unl paid upon rerement or terminaon. Upon terminaon or rerement, an employee is reimbursed up to a maximum number of hours of vacaon pay and sick leave based upon the years of service. Accumulated vacaon and sick leave are accrued when incurred in the government-wide and proprietary nancial statements. O. Leases - Lessee The City is a lessee for a noncancellable lease of equipment and vehicles. The City recognizes a lease liability and an intangible right-to-use lease asset in the government-wide nancial statements. The City recognizes lease liabilies with an inial individual value of $20,000 or more. At the commencement of a lease, the City inially 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 poron of lease payments made. The lease asset is inially measured as the inial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain inial direct costs. Subsequently, the lease asset is amorzed on a straight-line basis over the term of the lease. City of Allen, Texas Notes to the Financial Statements 62 Key esmates 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. x 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 esmated incremental borrowing rate as the discount rate for leases. x The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of xed payments and purchase opon price that the City is reasonably certain not to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to signicantly aect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilies are reported with long term debt on the statement of net posion. P. Pensions For purposes of measuring the Net Pension Liability, deferred oulows of resources and deferred inows of resources related to pensions, and pension expense, informaon about the Fiduciary Net Posion of the Texas Municipal Rerement System (TMRS) and addions to/deducons from TMRS’s Fiduciary Net Posion have been determined on the same basis as they are reported by TMRS. For this purpose, plan contribuons are recognized in the period that compensaon is reported for the employee, which is when contribuons are legally due. Benet payments and refunds are recognized when due and payable in accordance with the benet terms. Investments are reported at fair value. Informaon regarding the City’s Total Pension Liability is obtained from TMRS through a report prepared for the City by TMRS consulng actuary, Gabriel Roeder Smith & Company. Q. Postemployment Benets Other Than Pensions (OPEB) For purposes of measuring the total Texas Municipal Rerement System Supplemental Death Benet Fund TMRS SDBF) OPEB liability, related deferred oulows and inows of resources, and expense, City specic informaon about its total TMRS SDBF liability and addions to/deducons from the City’s total TMRS SDBF liability have been determined on the same basis as they are reported by TMRS. The TMRS SDBF expense and deferred (inows)/oulows of resources related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability. Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the change. For example, changes in the total TMRS SDBF liability resulng from current-period service cost, interest on the TOL, and changes of benet terms are required to be included in TMRS SDBF expense immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense are required to be reported as deferred oulows of resources or deferred inows of resources related to TMRS SDBF. R. Deferred Oulows/Inows of Resources In addion to assets, the statement of net posion and/or balance sheet will somemes report a separate secon for deferred oulows of resources. This separate nancial statement element, deferred oulows of resources, represents a consumpon of net assets that applies to a future period(s) and so will not be recognized as an oulow of resources (expense/expenditure) unl then. These are deferred and recognized City of Allen, Texas Notes to the Financial Statements 63 over the esmated average remaining lives of all members as of the measurement date. The City has the following items that qualify for reporng in this category: x Contribuons aer measurement date – These contribuons are deferred and recognized in the following scal year. x Dierence between projected and actual investment earnings related to pension and OPEB plans. x Dierence between expected and actual pension and OPEB experience – This dierence is deferred and amorzed over a closed period. x Changes in actuarial assumpons – these are deferred and recognized over the remaining lives of all members as of the measurement date. In addion to liabilies, the statement of net posion and/or balance sheet will somemes report a separate secon for deferred inows of resources. Deferred inows of resources represent an acquision of net assets that applies to a future period(s) and so will not be recognized as an inow of resources (revenue) unl that me. The City has three types of items that qualify for reporng in this category. In the statement of net posion, the City reports the dierence in expected and actual pension and OPEB experience, the changes in actuarial assumpons. These are deferred and recognized over the esmated 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. S. Net Posion Net posion represents the dierence between assets, liabilies, and deferred inows and oulows. Net investment in capital assets consists of capital assets, net of accumulated depreciaon, reduced by the outstanding balances of any borrowing used for the acquision, construcon or improvements of those assets, and adding back unspent proceeds. Net posion is reported as restricted when there are limitaons imposed on their use either through the enabling legislaons adopted by the City or through external restricons imposed by creditors, grantors or laws or regulaons of other governments. T. Fund Balance Fund balance classicaons are non-spendable, restricted, commied, assigned, and unassigned. These classicaons reect not only the nature of funds, but also provide clarity to the level of restricon placed upon fund balance. Fund balance can have dierent levels of constraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classicaon within the General Fund. The General Fund should be the only fund that reports a posive unassigned balance. In all other funds, unassigned is limited to negave residual fund balance. The City classies 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 classicaon includes inventories, prepaid items and long-term receivables. Restricted -- includes fund balance amounts that are either constrained for specic purposes imposed by external providers, such as creditors, or restricted due to constuonal provisions or enabling legislaon. This classicaon includes rerement of long-term debt, construcon programs, and other federal and state grants. City of Allen, Texas Notes to the Financial Statements 64 Commied -- includes fund balance amounts that are constrained for specic purposes imposed internally by the City through formal acon of the highest level of decision-making authority. Commied fund balance is reported pursuant to resoluons passed by the City Council. Assigned -- includes fund balance amounts that are self-imposed by the City to be used for a parcular purpose. Fund balance can be assigned by the City Manager or the Chief Financial Ocer. This classicaon includes internally assigned amounts for capital projects, projected budget decit for subsequent years and other legal uses. Unassigned -- includes residual posive fund balance within the General Fund which has not been classied within the other above-menoned categories. Unassigned fund balance may also include negave balances for any governmental fund if expenditures exceed amounts restricted, commied, or assigned for those specic purposes. When mulple categories of fund balance are available for expenditure, the City will start with the most restricted category and spend those funds rst 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 deciency, the City will establish a meframe and work plan to replenish the fund balance. The work plan may include tax increases, fee increases, reducon of services, and/or reducon of expenditures (i.e. hiring freeze, salary freeze, or reducon of travel/training). NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Decit Fund Equity At September 30, 2024, the Allen Event Center fund, has a decit net posion balance of $399,302. The reason for the decit in this case is that the City reclassied the Allen Event Center fund as a proprietary fund in scal year ended September 30, 2023, which caused the fund to have to recognize a poron of net pension and total OPEB liabilies based on the number of employees paid from the fund. The fund is parally supported by the City and the Allen Community Development Corporaon and while cash transacons were covered by transfers from the City and CDC, these non-cash transacons were not considered. The City expects this to be corrected in subsequent years as the fund builds net posion to cover these long-term accruals. NOTE 3. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS A. Deposits, Investments and Investment Policies Deposits. State statutes require all deposits to be fully collateralized by U.S. Government obligaons or obligaons 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 leers of credit and/or by governmental obligaons pledged to the City with market values of at least 103% of the deposit balances plus accrued interest. City of Allen, Texas Notes to the Financial Statements 65 The City’s demand deposits and cercates of deposit were fully insured or collateralized at September 30, 2024, with collateral required by state statutes. At year’s end, the carrying amount of the City’s pooled deposits was $4,325,297, and the bank balance was $3,481,196. 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 nancial instuon’s agent in the City’s name. The City’s pey cash balance at September 30, 2024, was $28,309. The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were $418,312 and $271,902, respecvely, 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 obligaons, obligaons of Texas and its agencies and fully collateralized repurchase agreements. The City, AEDC and ACDC invest in TexPool and TexasCLASS, which are investment funds 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 and TexasCLASS 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 enty’s funds. TexPool and Texas CLASS 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, securies of other U.S. Government agencies, commercial paper and other safe instruments. The PFIA (Government Code Chapter 2256) contains specic provisions in the areas of investment pracces, management reports, and establishment of appropriate policies. In compliance with PFIA, the City has adopted an investment policy and is authorized to invest in obligaons of, or guaranteed by, governmental enes, cercates 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 idenes the investment types that are authorized for the City under Government Code Chapter 2256. The table also idenes certain provisions of the City’s investment policy that address interest rate risk, credit risk, and concentraon of credit risk. Authorized Investment Type Maximum Maturity Maximum Investment 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. Instruments: non-calla 5 years None U. S. Government Sponsored Corp. Instruments: callable 5 years None Commercial Paper 5 years 35% Bankers’ Acceptance 5 years 35% Guaranteed Investment Contracts 5 years 35% State or Local Governmental Obligations 5 years 35% City of Allen, Texas Notes to the Financial Statements 66 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounng principles. GASB Statement No. 72, Fair Value Measurement and Applicaon provides a framework for measuring fair value by establishing a three-level fair value hierarchy that describes the inputs used to measure assets and liabilies. x Level 1 inputs are quoted prices (unadjusted) for idencal assets or liabilies in acve markets that a government can access at the measurement date. x 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. x 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 idencal asset or liability is not observable, a government should measure fair value using another valuaon 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 signicant to the enre measurement. 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: Investment Type Primary Government AEDC ACDC Total September 30, 2024 Significant Other Observable Inputs Level 2) of Total Government- wide Investments Weighted Avg Maturity Days) Credit Rating Investments Measured at Amortized Cost: TexPool 6,327,149$ 1,835,902$ 2,414,677$ 10,577,728$ -$ 2.93% 0.03 AAAm Investments Measured at NAV: Money Market Accounts 248,301 - - 248,301 - 0.07% 0.00 AAAm Texas CLASS 234,244,348 10,396,738 11,900,882 256,541,968 - 71.03% 0.71 AAAm Investments Measured at Cost: Certificates of Deposit 1,089,988 - - 1,089,988 - 0.30% 0.32 n/a Investments Subject to Fair Value: U.S. Agencies 62,919,178 4,485,445 12,417,845 79,822,468 79,822,468 22.10% 99.41 AA+ Certificates of Deposit 1,156,138 13,661 37,819 1,207,618 1,207,618 0.33% 0.42 n/a Corporate Bonds 778,835 55,522 153,712 988,069 988,069 0.27% 0.25 A+ Municipal Bonds 8,449,875 602,383 1,667,683 10,719,941 10,719,941 2.97% 4.96 A to AAA Total 315,213,812$ 17,389,651$ 28,592,618$ 361,196,081$ 92,738,096$ Investment pools, money markets, cercates of deposits (Level 1), and domesc equies are measured at amorzed cost, net asset value, or cost; are valued using prices quoted in acve markets for those securies; and are not required to be reported by levels in the table. Investments in U.S. Agencies securies, cercates of deposits (Level 2), commercial paper, and municipal bonds classied 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 securies based on the securies' relaonship to benchmark quoted prices. In order to meet the criteria to be recorded at amorzed cost, investment pools must transact at a stable net asset value per share and maintain certain maturity, quality, liquidity and diversicaon 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 naonally recognized stascal rang organizaon, have no more than 5% of porolio with one issuer (excluding US government securies), and can meet reasonably foreseeable redempons. City of Allen, Texas Notes to the Financial Statements 67 TexPool has a redempon noce period of one day and no maximum transacon amounts. The investment pools’ authories may only impose restricons on redempons in the event of a general suspension of trading on major securies market, general banking moratorium, or naonal or state emergency that aects the pools’ liquidity. TexPool is an external investment pool measured at amorzed cost. The Texas Comptroller of Public Accounts is the sole ocer, director, and shareholder of the Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. In addion, the TexPool Advisory Board advises on TexPool’s Investment Policy. This Board is composed equally of parcipants in TexPool and other persons who do not have a business relaonship with TexPool who are qualied to advise TexPool. Texas CLASS (Texas Cooperave Liquid Assets Security System) is an external investment pool measured at its net asset value. Texas CLASS’ strategy is to seek preservaon of principal, liquidity and current income through investment in a diversied porolio of short-term marketable securies. The City has no unfunded commitments related to the investment pool. Texas CLASS has a redempon noce period of one day and may redeem daily. Authority over the investment pool may only impose restricons on redempons in the event of a general suspension of trading on major securies market, general banking moratorium or naonal or state emergency that aects the pool’s liquidity. Texas CLASS was organized in March 1996 under a trust agreement executed by and among Texas local governmental enes 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 Rang Services. Investments in the Other Postemployment Benet 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 Rerement Services (PARS) to manage the investment porolio of the Trust Fund. The investments are subject to the policies and guidelines established by the commiee members of the Trust. Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely aect the fair value of an investment. Investments with interest rates that are xed for longer periods of me 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-concentraon of assets in a specic maturity sector, limitaon of average maturity of operang funds investments to less than eighteen months, and avoidance of over-concentraon of assets in specic instruments other than U.S. Treasury Securies, U.S. Agency Obligaons or Securies and authorized investment pools. Credit Risk. The City’s Investment policy, in conjuncon with state law, species the type of credit rang of all authorized investments. Credit risk is the risk that an issuer of an investment will not fulll its obligaon to the holder of the investment. This type of risk is typically expressed in terms of the credit rangs issued by a naonally recognized stascal rang organizaon. The City reduces the risk of issuer default by liming investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas Government Code. The City’s investments in U.S. Agency securies (FFCB, FHLB, FHLMC, and FNMA) are rated AA+ by Standard Poor’s and Aaa by Moody’s Investors Service. City of Allen, Texas Notes to the Financial Statements 68 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 rang of AAAm by Standard & Poor’s as of September 30, 2024. Concentraon of Credit Risk. Concentraon of credit risk is the risk of loss aributed to the magnitude of a government's investment in a single issuer. The City's investment policy controls concentraon of credit risk by liming the amount of investment with a single issuer to no more than 35% of the total porolio except for State approved investment pools and U.S. Government Securies and Agency Obligaons. As of September 30, 2024, apart from funds invested in TexPool or Texas CLASS, the City did not have any investments with a single issuer exceeding 5% or more of the City’s investments. Custodial Credit Risk. The custodial credit risk for deposits is the risk that, in the event of the failure of a depository nancial instuon, a government will not be able to recover deposits or will not be able to recover collateral securies 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 transacon, a government will not be able to recover the value of investment or collateral securies that are in the possession of an outside party. The City’s investment policy minimizes custodial credit risk by requiring pledged securies to be in the name of the City. The Public Funds Investment Act requires nancial instuons to secure deposits made by state or local governmental bodies by pledging securies in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securies of the collateral must always remain at least equivalent to the bank balance less the FDIC insurance. As of September 30, 2024, the City’s deposits with nancial instuons above the federal depository limits were fully collateralized. City of Allen, Texas Notes to the Financial Statements 69 B. Receivables Receivables at September 30, 2024, for both governmental and proprietary funds, including the applicable allowances for uncollecble accounts, consist of the following: Governmental Funds General General Nonmajor Total Capital Obligation Governmental Governmental General Debt Service Projects Bond Funds Funds Ad valorem taxes 772,390$ 219,425$ -$ -$ -$ 991,815$ Sales taxes 4,760,021 - - - - 4,760,021 Franchise and right-of-way fees 1,862,054 - - - 15,107 1,877,161 Municipal court 1,488,997 - - - - 1,488,997 PD alarms 105,195 - - - - 105,195 EMS receivable 1,873,373 - - - - 1,873,373 Accounts receivable 736,683 - - 7,653 253,315 997,651 Accrued interest 81,087 - 65,373 12,705 16,564 175,729 Gross receivables 11,679,800 219,425 65,373 20,358 284,986 12,269,942 Less: allowance for uncollectibles (2,878,459) (147,133) - - - (3,025,592) Total net receivables 8,801,341$ 72,292$ 65,373$ 20,358$ 284,986$ 9,244,350$ Proprietary Funds Nonmajor Total Internal Water and Enterprise Enterprise Service Sewer Funds Funds Funds Accounts receivable 20,530,847$ 2,141,968$ 22,672,815$ 87,654$ Accrued interest 65,888 5,210 71,098 36,637 Gross receivables 20,596,735 2,147,178 22,743,913 124,291 Less: allowance for uncollectibles (394,673) (72,453) (467,126) (636) Total net receivables 20,202,062$ 2,074,725$ 22,276,787$ 123,655$ The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include unbilled charges for services rendered through September 30, 2024. City of Allen, Texas Notes to the Financial Statements 70 C. Capital Assets Capital asset acvity for the year ended September 30, 2024, was as follows: Governmental Acvies Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Governmental Activities Governmental Funds Capital assets, not being depreciated/amortized Land 168,211,753$ 8,109,726$ -$ 176,321,479$ Construction in progress 69,209,837 18,837,970 (9,255,866) 78,791,941 Total capital assets, not being depreciated/amortized 237,421,590 26,947,696 (9,255,866) 255,113,420 Capital assets, being depreciated/amortized Buildings 108,548,675 - - 108,548,675 Buildings - right-to-use - - 4,600,000 4,600,000 Improvements other than buildings 553,633,718 7,655,258 (12,810,488) 548,478,488 Furniture and fixtures 4,608,135 - - 4,608,135 Vehicles 1,796,516 271,467 (124,700) 1,943,283 Machinery and equipment 10,896,626 339,498 357,087 11,593,211 Machinery and equipment - right-to-use 1,665,744 635,852 (852,043) 1,449,553 Total capital assets, being depreciated/amortized 681,149,414 8,902,075 (8,830,144) 681,221,345 Less accumulated depreciation/amortization for: Buildings (43,920,136) (2,751,278) - (46,671,414) Buildings - right-to-use - (76,667) - (76,667) Improvements other than buildings (377,680,704) (17,399,193) 15,890,785 (379,189,112) Furniture and fixtures (4,471,616) (55,148) - (4,526,764) Vehicles (1,367,838) (192,521) 124,700 (1,435,659) Machinery and equipment (6,285,529) (817,434) 49,913 (7,053,050) Machinery and equipment - right-to-use (915,989) (613,423) 852,043 (677,369) Total accumulated depreciation/amortization (434,641,812) (21,905,664) 16,917,441 (439,630,035) Total governmental funds capital assets, being depreciated/amortized, net 246,507,602 (13,003,589) 8,087,297 241,591,310 Total governmental funds capital assets, net 483,929,192$ 13,944,107$ (1,168,569)$ 496,704,730$ Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Internal Service Funds Capital assets, not being depreciated Construction in progress 266,977$ 1,544,161$ (1,230,863)$ 580,275$ Total capital assets, not being depreciated 266,977 1,544,161 (1,230,863) 580,275 Capital assets, being depreciated Vehicles 18,634,797 3,835,677 (850,603) 21,619,871 Machinery and equipment 4,614,076 - 225,399 4,839,475 Total capital assets, being depreciated 23,248,873 3,835,677 (625,204) 26,459,346 Less accumulated depreciation for: Vehicles (12,826,417) (1,980,318) 1,615,509 (13,191,226) Machinery and equipment (4,185,995) (208,719) 163,892 (4,230,822) Total accumulated depreciation (17,012,412) (2,189,037) 1,779,401 (17,422,048) Total internal service funds capital assets, being depreciated, net 6,236,461 1,646,640 1,154,197 9,037,298 Total internal service funds capital assets, net 6,503,438 3,190,801 (76,666) 9,617,573 Total governmental activities capital assets, net 490,432,630$ 17,134,908$ (1,245,235)$ 506,322,303$ City of Allen, Texas Notes to the Financial Statements 71 Business-Type Acvies Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Business-type Activities Enterprise Funds Capital assets, not being depreciated/amortized Land 4,091,626$ -$ -$ 4,091,626$ Construction in progress 28,553,669 2,409,206 (12,357,553) 18,605,322 Total capital assets, not being depreciated/amortized 32,645,295 2,409,206 (12,357,553) 22,696,948 Capital assets, being depreciated/amortized Towers, tanks, and pump stations 223,887,758 4,432,507 (32,095,210) 196,225,055 Other improvements 1,230,546 - 43,846,000 45,076,546 Intangible asset 7,994,325 - - 7,994,325 Vehicles 1,108,996 337,339 (94,445) 1,351,890 Machinery and equipment 4,453,987 269,191 (851,291) 3,871,887 Machinery and equipment - right-to-use 430,202 720,818 (270,376) 880,644 Total capital assets, being depreciated/amortized 239,105,814 5,759,855 10,534,678 255,400,347 Less accumulated depreciation/amortization for: Towers, tanks, and pump stations (116,004,365) (4,821,317) 7,273,688 (113,551,994) Other improvements (347,603) (1,213,539) (6,877,906) (8,439,048) Intangible asset (266,478) (266,477) - (532,955) Vehicles (761,355) (144,169) 94,445 (811,079) Machinery and equipment (3,502,000) (236,242) 846,904 (2,891,338) Machinery and equipment - right-to-use (272,104) (239,690) 207,376 (304,418) Total accumulated depreciation/amortization (121,153,905) (6,921,434) 1,544,507 (126,530,832) Total enterprise funds capital assets, being depreciated/amortized, net 117,951,909 (1,161,579) 12,079,185 128,869,515 Total enterprise funds capital assets, net 150,597,204$ 1,247,627$ (278,368)$ 151,566,463$ Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Internal Service Funds Capital assets, being depreciated Vehicles 3,041,137 1,239,763 (57,377) 4,223,523 Machinery and equipment 1,824,502 382,387 - 2,206,889 Total capital assets, being depreciated 4,865,639 1,622,150 (57,377) 6,430,412 Less accumulated depreciation for: Vehicles (2,121,477) (387,345) 57,377 (2,451,445) Machinery and equipment (969,127) (224,599) - (1,193,726) Total accumulated depreciation (3,090,604) (611,944) 57,377 (3,645,171) Total internal service funds capital assets, being depreciated, net 1,775,035 1,010,206 - 2,785,241 Total internal service funds capital assets, net 1,775,035 1,010,206 - 2,785,241 Total business-type activities capital assets, net 152,372,239$ 2,257,831$ (215,366)$ 154,414,704$ City of Allen, Texas Notes to the Financial Statements 72 Component Unit Acvies Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Component Unit Activities Allen Economic Development Corporation 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 (225,922) (50,203) - (276,125) Total accumulated depreciation (225,922) (50,203) - (276,125) Total AEDC capital assets, being depreciated, net 778,169 (50,203) - 727,966 Total AEDC capital assets, net 778,169$ (50,203)$ -$ 727,966$ Land previously recorded to capital assets for the Allen Economic Development Corporaon was reclassied as land held-for-sale as the corporaon intends to use the land in future economic development agreements. Balance Balance September 30, Deletions/ September 30, 2023 Additions Transfers 2024 Allen Community Development Corporation Capital assets, not being depreciated Land 2,239,201$ -$ -$ 2,239,201$ Construction in progress 7,434,600 6,610,874 (413,161) 13,632,313 Total capital assets, not being depreciated 9,673,801 6,610,874 (413,161) 15,871,514 Capital assets, being depreciated Buildings 36,202,922 - - 36,202,922 Improvements other than buildings 42,016,201 - (2,448,841) 39,567,360 Furniture and fixtures 106,211 7,000 - 113,211 Vehicles 702,596 - (31,703) 670,893 Machinery and equipment 3,822,995 832,480 (9,500) 4,645,975 Total capital assets, being depreciated 82,850,925 839,480 (2,490,044) 81,200,361 Less accumulated depreciation for: Buildings (12,484,688) (908,843) - (13,393,531) Improvements other than buildings (26,500,887) (1,894,033) 2,862,002 (25,532,918) Furniture and fixtures (9,348) (19,395) - (28,743) Vehicles (660,737) (18,645) 31,703 (647,679) Machinery and equipment (2,954,709) (346,284) 9,500 (3,291,493) Total accumulated depreciation (42,610,369) (3,187,200) 2,903,205 (42,894,364) Total ACDC capital assets, being depreciated, net 40,240,556 (2,347,720) 413,161 38,305,997 Total ACDC capital assets, net 49,914,357$ 4,263,154$ -$ 54,177,511$ City of Allen, Texas Notes to the Financial Statements 73 Depreciaon/amorzaon expense was charged as direct expense to programs of the primary government and component units as follows: Governmental activities: General government 1,282,264 Public safety 3,085,425 Public works 16,319,253 Culture and recreation 3,358,782 Community development 48,977 Total governmental activities depreciation and amortization expense 24,094,701 Business-type activities: Water and sewer 6,918,234 Solid waste 31,045 Drainage 211,004 Golf course 354,997 Event Center 18,100 Total business-type activities depreciation and amortization expense 7,533,380 Component unit activities Allen Economic Development Corporation 50,203 Allen Community Development Corporation 3,187,200 Total component unit activities depreciation expense 3,237,403 Outstanding commitments at September 30, 2024, under authorized construcon contracts totaled 14,418,261. These outstanding commitments for capital projects will be funded from unspent bond proceeds and addional general obligaon bonds. D. 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, 2024, the cost of water purchased under this contract was $23,110,447. In 1978, the City entered a contract with the District for the transportaon, treatment and disposal of sanitary sewage and other waste. The contract will connue in force at least unl all bonds issued by the District pursuant to the contract have been paid in full and will remain in force thereaer 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 proporonate share of the District’s operang and maintenance expenses and related debt service costs. During scal year 2024, the cost for transportaon, treatment and disposal of sewage and other wastes was $11,240,844. City of Allen, Texas Notes to the Financial Statements 74 E. Long-term Liabilies At September 30, 2024, bonds payable consisted of the following individual issues: Original Interest Final Outstanding at Borrowing Rates Maturity 9/30/2024 G o v er n m en t a l Ac t iv it ie s General Obligation Bonds General Obligation Bonds, Series 2006 1,595,000 4.0% - 4.2% 8/15/2026 225,000 General Obligation Bonds, Series 2013 5,065,000 2.0% - 3.5% 8/15/2029 1,460,000 General Obligation Bonds, Series 2014 10,595,000 2.0% - 4.0% 8/15/2028 2,355,000 General Obligation Refunding & Improvement Bonds, Series 2015 32,245,000 2.0% - 5.0% 8/15/2034 8,630,000 General Obligation Refunding Bonds, Series 2016 6,910,000 2.0% - 4.0% 8/15/2028 3,545,000 General Obligation Bonds, Series 2017 11,845,000 2.25% - 5.0% 8/15/2032 6,660,000 General Obligation Bonds, Series 2018 8,355,000 2.0% - 5.0% 8/15/2033 5,470,000 General Obligation Refunding & Improvement Bonds, Series 2019 8,630,000 2.5% - 4.0% 8/15/2034 4,925,000 General Obligation Refunding & Improvement Bonds, Series 2020 23,385,000 2.0% - 4.0% 8/15/2035 14,810,000 General Obligation Refunding & Improvement Bonds, Series 2021 10,595,000 3.0% - 5.0% 8/15/2036 4,410,000 General Obligation Bonds, Series 2022 23,000,000 4.0% - 5.0% 8/15/2041 20,805,000 General Obligation Bonds, Series 2023 14,525,000 4.0% - 5.0% 8/15/2043 11,275,000 General Obligation Improvement & Refunding Bonds, Series 2024 84,455,000 5.00% 8/15/2044 84,455,000 Governmental Bonds Total 241,200,000 169,025,000 Certificates of Obligation Bonds Combination Tax & Revenue Certificates of Obligation, Series 2021 22,945,000 4.0% - 5.0% 8/15/2036 19,550,000 Tax Notes Tax Notes, Series 2020 3,175,000 4.00% 8/15/2026 1,140,000 Total Governmental Activities 189,715,000 B u s in es s -t y p e Ac t iv i t ies Waterworks & Sewer System Revenue Refunding Bonds, Series 2013 3,370,000 2.0% - 3.0% 6/1/2025 260,000 Waterworks & Sewer System Revenue Bonds, Series 2018 9,330,000 2.0% - 5.0% 6/1/2038 7,265,000 Waterworks & Sewer System Revenue Bonds, Series 2019 3,845,000 2.0% - 4.0% 6/1/2039 3,070,000 Waterworks & Sewer System Revenue Bonds, Series 2020 4,880,000 2.0% - 5.0% 6/1/2040 4,135,000 Waterworks & Sewer System Revenue Bonds, Series 2021 10,675,000 2.0% - 5.0% 6/1/2036 9,450,000 Business-type Activities Total 32,100,000 24,180,000 All en Ec o n o m ic D ev e lo p m e n t C o r p o r a t i o n B o n d s Sales Tax Revenue Refunding Bonds, Series 2017A 11,810,000 2.0% - 5.0% 9/1/2027 3,815,000 Sales Tax Revenue Bonds, Series 2020 2,110,000 0.75% - 2.0% 9/1/2030 1,300,000 Sales Tax Revenue Bonds, Series 2021 2,295,000 0.65% - 2.45% 9/1/2036 2,135,000 AEDC Bonds Total 16,215,000 7,250,000 Al l en C o m m u n i t y D ev el o p m en t C o r p o r a t i o n B o n d s Sales Tax Revenue Refunding Bonds, Series 2016 31,235,000 0.750% - 2.353% 9/1/2032 16,975,000 City of Allen, Texas Notes to the Financial Statements 75 The following is a summary of long-term liabilies transacons, including current poron, of the City for the year ended September 30, 2024: Balance Beginning of Year Increases Decreases Balance Ending of Year Due within One Year G o ve r n m e n t a l A c t ivit i e s General obligation bonds 100,895,000$ 84,455,000$ (16,325,000)$ 169,025,000$ 10,940,000$ Certificates of obligation 20,740,000 - (1,190,000) 19,550,000 1,250,000 Tax notes 1,680,000 - (540,000) 1,140,000 560,000 Leases 824,775 635,852 (666,255) 794,372 365,320 Premiums (discounts) 13,394,731 9,741,522 (2,147,528) 20,988,725 - Compensated absences 8,709,800 5,909,295 (5,190,495) 9,428,600 1,885,720 Total Governmental Activities 146,244,306$ 100,741,669$ (26,059,278)$ 220,926,697$ 15,001,040$ Bu s in e s s Ty p e A c t ivit i e s Water and sewer revenue bonds 25,825,000$ -$ (1,645,000)$ 24,180,000$ 1,420,000$ Financing arrangements 47,514 - (15,540) 31,974 16,311 Leases 117,372 720,818 (175,416) 662,774 141,824 Premiums (discounts) 2,973,693 - (82,970) 2,890,723 - Compensated absences 1,169,170 793,348 (675,908) 1,286,610 257,322 Total Business Type Activities 30,132,749$ 1,514,166$ (2,594,834)$ 29,052,081$ 1,835,457$ C o m p o n e n t U n i t s Allen Economic Development Corporation Sales tax revenue bonds 8,765,000$ -$ (1,515,000)$ 7,250,000$ 1,580,000$ Premiums (discounts) 291,582 - (72,895) 218,687 - Total Allen Economic Development Corporation 9,056,582$ -$ (1,587,895)$ 7,468,687$ 1,580,000$ Allen Community Development Corporation Sales tax revenue bonds 18,865,000$ -$ (1,890,000)$ 16,975,000$ 1,935,000$ Total Allen Community Development Corporation 18,865,000$ -$ (1,890,000)$ 16,975,000$ 1,935,000$ The general fund has typically been used to liquidate the liability for compensated absences for governmental acvies. City of Allen, Texas Notes to the Financial Statements 76 Annual Requirements to Rere Debt Obligaons. The City intends to rere all its general long-term liabilies, 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 operang revenues of the Water and Sewer Fund. The annual aggregate maturies for each bond type for the years subsequent to September 30, 2024, are as follows: Fiscal Year Ending September 30, Principal Interest Total 2025 10,940,000$ 7,402,501$ 18,342,501$ 2026 11,020,000 7,338,008 18,358,008 2027 11,395,000 6,838,246 18,233,246 2028 10,505,000 6,337,846 16,842,846 2029 9,825,000 5,879,131 15,704,131 2030-2034 46,640,000 22,731,950 69,371,950 2035-2039 34,265,000 13,153,700 47,418,700 2040-2044 34,435,000 4,845,300 39,280,300 169,025,000$ 74,526,682$ 243,551,682$ Go v e r n m en t a l A ct i v i t i e s G e n e r a l O b l i g a t i o n B o n d s Fiscal Year Ending September 30, Principal Interest Total 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 1,510,000 598,000 2,108,000 2030-2034 8,675,000 1,883,100 10,558,100 2035-2036 3,990,000 241,000 4,231,000 19,550,000$ 5,802,100$ 25,352,100$ Fiscal Year Ending September 30, Principal Interest Total 2025 560,000$ 45,600$ 605,600$ 2026 580,000 23,200 603,200 1,140,000$ 68,800$ 1,208,800$ C e r t i fi c a t e s o f O b l i g a t i o n T a x N o t e s City of Allen, Texas Notes to the Financial Statements 77 Fiscal Year Ending September 30, Principal Interest Total 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 1,305,000 780,200 2,085,200 2030-2034 7,505,000 2,931,700 10,436,700 2035-2039 8,490,000 1,249,750 9,739,750 2040-2041 1,770,000 81,750 1,851,750 24,180,000$ 8,552,900$ 32,732,900$ B u s i n e s s T y p e A c t i v i t i e s W a t e r w o r k s a n d S e w e r S y s t e m R e v e n u e B o n d s Fiscal Year Ending September 30, Principal Interest Total 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 390,000 41,098 431,098 2030-2034 1,135,000 113,983 1,248,983 2035-2036 395,000 14,576 409,576 7,250,000$ 780,763$ 8,030,763$ Fiscal Year Ending September 30, Principal Interest Total 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 2,145,000 270,874 2,415,874 2030-2032 6,805,000 427,029 7,232,029 16,975,000$ 2,317,413$ 19,292,413$ C o m p o n e n t U n it Ac t iv it ie s S a l e s T a x R e ve n u e B o n d s - A lle n E D C S a le s T a x R e ve n u e B o n d s - Al le n C D C Bond Issuances. On August 1, 2024, the City issued City of Allen, Texas General Obligaon Improvement and Refunding Bonds, Series 2024, in the amount of $84,455,000 for a new police headquarters capital project, streets improvements, and the refunding of a poron of General Obligaon Bonds, Series 2013 and General Obligaon Bonds, Series 2014. Bond proceeds totaled $94,196,522 and includes a premium of $9,741,522. Expenses incurred to deliver the Series 2024 bonds, including issuance costs, underwriter’s discount, and agents’ fees amounted to $766,366. The Series 2024 bonds incur an average cost over the life of the debt at a rate of 5.00% and mature annually, with semi-annual interest payments. Bond proceeds related to the paral refunding of exisng bonds in the amount of $4,430,156 was deposited into an escrow account to City of Allen, Texas Notes to the Financial Statements 78 cover issuance costs and the refunding of $4,420,000 of principal payments to the above-menoned bond issuances. Due to this refunding, the City received $296,427 in debt service savings, coming to a present value savings of $226,169. A schedule of authorized but unissued direct General Obligaon Bonds as of September 30, 2024, is as follows: Date of Original Amount Issued in Issued in Unissued Purpose Authorization Authorized Prior Fiscal Years Current Year Balance Service Center Facilities 5/12/2007 14,500,000$ 12,500,000$ -$ 2,000,000$ Streets 11/7/2023 47,000,000 - 6,000,000 41,000,000 Parks and Recreation 11/7/2023 17,000,000 - - 17,000,000 Mobility Projects 11/7/2023 8,000,000 - - 8,000,000 Police Facilities 11/7/2023 83,000,000 - 83,000,000 - 169,500,000$ 12,500,000$ 89,000,000$ 68,000,000$ The amount issued in current year includes premium generated in the bond sale and is counted against the amount authorized. Waterworks and Sewer System Revenue Bonds. Waterworks and Sewer System Revenue Bonds are used to nance the acquision of major capital improvements for the City’s water and sewer system and related facilies. Water and Sewer Revenue Bonds and Refunding Bonds are payable solely from and, equally secured by, a rst 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 rerement 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 aggregang $2,336,548 at September 30, 2024, are restricted within the Water and Sewer Enterprise Fund for servicing of the debt. The respecve 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 spulate that the City will deposit, in addion 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 redempon 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 ve-year period, as dened in the indentures. Amounts in the reserve fund at September 30, 2024, of $4,288,908 are adequate to meet the reserve requirements. City of Allen, Texas Notes to the Financial Statements 79 As of September 30, 2024, restricted assets, which include amounts in the Water and Sewer Revenue Bond Debt Service and the Revenue Bond Reserve Fund, were as follows: Revenue bond reserve fund 1,936,387$ Revenue bond debt service fund 2,352,521 4,288,908$ Net position reserved for Water and Sewer revenue bond retirement is detailed as follows: Restricted assets, revenue bond debt service and reserve funds 4,288,908$ Accrued interest, payable from restricted assets (307,360) Current maturities of revenue bonds, payable from restricted assets (1,645,000) R es er v e d fo r w a t e r a n d s ewer r ev e n u e b o n d s p r i n c i p a l a n d in t e r e s t 2,336,548$ The City complies with the various requirements of the bond ordinances. Financing Arrangements. The City has acquired golf course equipment under various agreements accounted for as nanced purchases. As of September 30, 2024, the capitalized costs of business-type property under nanced purchase arrangements were $73,292. The terms of the nanced arrangements range from 3 - 5 years and call for monthly and annual payments over the life of the agreements. The future minimum payments under nanced purchase arrangements and the net present value of the future minimum payments at September 30, 2024, are as follows: Fiscal Year Ending September 30, Principal Interest Total 2025 16,311$ 1,193$ 17,504$ 2026 15,663 383 16,046 Total 31,974$ 1,576$ 33,550$ Business-type Activities Leases – LLessee. The City is a lessee for noncancellable leases of vehicles, 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 nancial statements. The City recognizes lease liabilies with total lease payments of $20,000 or more. At the commencement of a lease, the City inially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal poron of lease payments made. The lease asset is inially measured as the inial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain inial direct costs. Subsequently, the lease asset is amorzed on a straight-line basis over the shorter of the lease term or its useful life. Key esmates and judgments related to leases include how the City determines 1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and 3) lease payments. x The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its esmated incremental borrowing rate as the discount rate for leases. x The lease term includes the noncancellable period of the lease. City of Allen, Texas Notes to the Financial Statements 80 x Lease payments included in the measurement of the lease liability are composed of xed payments, variable payments xed in substance or that depend on an index or a rate, purchase opon price that the City is reasonably certain to exercise, lease incenves receivable from the lessor, and any other payments that are reasonably certain of being required based on an assessment of all relevant factors. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to signicantly aect the amount of the lease liability. The future principal and interest lease payments as of scal year-end are as follows: Fiscal Year Ending September 30, Principal Interest Total Principal Interest Total 2025 365,320$ 31,421$ 396,741$ 141,824$ 29,680$ 171,504$ 2026 266,406 17,929 284,335 139,680 22,875 162,555 2027 162,646 8,132 170,778 146,826 15,729 162,555 2028 - - - 154,338 8,217 162,555 2029 - - - 80,106 1,173 81,279 Total 794,372$ 57,482$ 851,854$ 662,774$ 77,674$ 740,448$ Governmental Activities Business-type Activities F. Fund Balance Classicaons As previously stated in the summary of signicant accounng policies, fund balance classicaons are non- spendable, restricted, commied, assigned, and unassigned. These classicaons reect not only the nature of funds, but also provide clarity to the level of restricon placed upon fund balance. A number of restricons are grouped as “other purposes” in the basic nancial statements, therefore, more specic restricon descripons are provided below. General General Other Total Capital Obligation Governmental Governmental General Debt Service Projects Bond Funds Funds FUND BALANCES Nonspendable Prepaid items 6,689$ -$ -$ -$ -$ 6,689$ Inventories 30,257 - - - - 30,257 Restricted Debt service - 4,388,795 - - - 4,388,795 Capital expenditures - - - 112,630,874 - 112,630,874 Tourism - - - - 2,605,761 2,605,761 Asset forfeiture - - - - 130,740 130,740 State and federal grants - - - - 238,514 238,514 Park acquisition and development - - - - 1,928,355 1,928,355 Tax increment financing agreement - - - - 14,752,338 14,752,338 Court technology and security - - - - 222,092 222,092 Juvenile case manager - - - - 21,000 21,000 PEG fees - - - - 186,149 186,149 Radio system - - - - 483,714 483,714 Tree mitigation - - - - 1,306,861 1,306,861 Public safety and library enhancements - - - - 262,529 262,529 Cemetery trust 71,089 - - - - 71,089 Assigned Capital expenditures - - 26,437,292 - - 26,437,292 Neighborhood reinvestment - - 1,983,067 - - 1,983,067 Unassigned 34,260,644 - - - - 34,260,644 TOTAL FUND BALANCES 34,368,679$ 4,388,795$ 28,420,359$ 112,630,874$ 22,138,053$ 201,946,760$ City of Allen, Texas Notes to the Financial Statements 81 G. Interfund Transfers Individual fund operang transfers for scal year ended September 30, 2024, were as follows: Tran sfers O u t :General Fund General Capital Projects Fund Nonmajor Governmental Funds Water and Sewer Fund Nonmajor Enterprise Funds Total General Fund -$ 1,025,000$ 96,847$ -$ 551,351$ 1,673,198$ General Obligation Bond Fund 336,836 - - - - 336,836 Nonmajor Governmental Funds 94,309 - - - 350,000 444,309 Water and Sewer Fund 7,066,045 - 488,000 - - 7,554,045 Nonmajor Enterprise Funds 724,620 300,000 - 68,019 - 1,092,639 Total 8,221,810$ 1,325,000$ 584,847$ 68,019$ 901,351$ 11,101,027$ Tra n s fers In : Transfers are used to move unrestricted funds to nance various programs that the City must account for in other funds in accordance with budgetary authorizaons, including amounts provided as subsidies or matching funds for various grant programs and to support cash nancing of capital projects. H. Rerement Plan TMRS Pension Plan Plan Descripon. The City parcipates as one of 934 plans in the dened benet cash-balance plan administered by the Texas Municipal Rerement System (TMRS). TMRS is a statewide public rerement plan created by the State of Texas and administered in accordance with the TMRS Act, Subtle G, Title 8, Texas Government Code (the TMRS Act) as an agent mulple-employer rerement system for employees of Texas parcipang cies. The TMRS Act places the general administraon and management of TMRS with a six- member, Governor-appointed Board of Trustees; however, TMRS is not scally 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 parcipate in TMRS. Benets Provided. TMRS provides rerement, disability, and death benets. Benet provisions are adopted by the governing body of the City, within the opons available in the state statutes governing TMRS. At rerement, the Member’s benet is calculated based on the sum of the Member’s contribuons, with interest, and the city-nanced monetary credits with interest. The rering Member may select one of seven monthly benet payment opons. Members may also choose to receive a poron of their benet as a lump sum distribuon in an amount equal to 12, 24 or 36 monthly payments, which cannot exceed 75% of the total Member contribuons and interest. A summary of plan provisions for the City are as follows: Employee deposit rate 7% Matching ratio (City to employees) 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 City of Allen, Texas Notes to the Financial Statements 82 Employees Covered by Benet Terms. At the December 31, 2023, valuaon and measurement date, the following employees were covered by the benet terms: Inactive employees or beneficiaries currently receiving benefits 375 Inactive employees entitled to, but not yet receiving benefits 601 Active employees 807 1,783 Contribuons. Member contribuon rates in TMRS are either 5%, 6% or 7% of the Member’s total compensaon, 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 contribuon rate for each City is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The City’s contribuon rate is based on the liabilies created from the benet plan opons selected by the City and any changes in benets or actual experience over me. Employees for the City were required to contribute 7% of their annual compensaon during the scal year. The contribuon rates for the City were 15.19% and 14.46% in calendar years 2024 and 2023, respecvely. The City’s contribuon to TMRS for the year ended September 30, 2024 was $11,266,720, which exceeded the required contribuon of $10,638,139. Net Pension Liability. The City’s Net Pension Liability (NPL) was measured as of December 31, 2023, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuaon as of that date. Actuarial Assumpons. The Total Pension Liability in the December 31, 2023 actuarial valuaon was determined using the following actuarial assumpons: Inflation 2.5% per year Overall payroll growth 3.60% to 11.85% including inflation Investment Rate of Return 6.75% Salary increases are based on a service-related table. Mortality rates for acve 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 rerees and beneciaries are based on the Gender-disnct 2019 Municipal Rerees of Texas mortality tables. The rates for acves, healthy rerees and beneciaries are projected on a fully generaonal basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy rerees are used with a 4- year set-forward for males and a 3-year set-forward for females. In addion, a 3.5% and 3.0% minimum 15 mortality rate is applied, for males and females respecvely, to reect the impairment for younger members who become disabled. The rates are projected on a fully generaonal basis by Scale UMP to account for future mortality improvements subject to the oor. City of Allen, Texas Notes to the Financial Statements 83 The actuarial assumpons were developed primarily from the actuarial invesgaon of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. The assumpons were adopted in 2019 and rst used in the December 31, 2019, actuarial valuaon. The post-rerement mortality assumpon for Annuity Purchase Rates (APRs) is based on the Mortality Experience Invesgaon 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 appreciaon as well as the producon of income to sasfy 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 esmate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inaon) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighng the expected future real rates of return by the target asset allocaon percentage and by adding expected inaon. In determining their best esmate of a recommended investment return assumpon under the various alternave asset allocaon porolios, GRS focused on the area between (1) arithmec mean (aggressive) without an adjustment for me (conservave) and (2) the geometric mean (conservave) with an adjustment for me (aggressive). The target allocaon and best esmates of real rates of return for each major asset class in scal year 2024 are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Arithmetic) Global Equity 35.00% 6.70% Core Fixed Income 6.00% 4.70% Non-Core Fixed Income 20.00% 8.00% Other Public and Private Markets 12.00% 8.00% Real Estate 12.00% 7.60% Hedge Funds 5.00% 6.40% Private Equity 10.00% 11.60% Total 100.00% Discount Rate. The discount rate used to measure the Total Pension Liability was 6.75%. The projecon of cash ows used to determine the discount rate assumed that Member and employer contribuons will be made at the rates specied in statute. Based on that assumpon, the pension plan’s Fiduciary Net Posion was projected to be available to make all projected future benet payments of current acve and inacve Members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benet payments to determine the Total Pension Liability. City of Allen, Texas Notes to the Financial Statements 84 Changes in the Net Pension Liability. Changes in the net pension liability are as follows: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability a) (b) (a) - (b) Balance at 12/31/2022 300,429,991$ 249,752,924$ 50,677,067$ Changes for the year: Service cost 12,173,921 - 12,173,921 Interest 20,392,381 - 20,392,381 Difference between expected and actual experience 4,623,251 - 4,623,251 Change in assumptions (893,365) - (893,365) Contributions - employer - 10,143,549 (10,143,549) Contributions - employee - 4,771,413 (4,771,413) Net investment income - 28,972,918 (28,972,918) Benefit payments, including refunds of employee contributions (8,815,211) (8,815,211) - Administrative expense - (183,894) 183,894 Other charges - (1,284) 1,284 Net changes 27,480,977 34,887,491 (7,406,514) Balance at 12/31/2023 327,910,968$ 284,640,415$ 43,270,553$ Sensivity 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 1% Increase in Discount Rate Discount Rate Discount Rate 5.75%) (6.75%) (7.75%) City's net pension liability 93,776,789$ 43,270,553$ 2,126,406$ Pension Plan Fiduciary Net Posion. Detailed informaon about the pension plan’s Fiduciary Net Posion is available in the Schedule of Changes in Fiduciary Net Posion, by Parcipang City. That report may be obtained at tmrs.com. City of Allen, Texas Notes to the Financial Statements 85 Pension Expense and Deferred Oulows and Deferred Inows of Resources Related to Pensions. For the year ended September 30, 2024, the City recognized pension expense in the amount of $12,851,781. At September 30, 2024, the City reported deferred oulows and inows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 7,831,896$ 131,375$ Changes in actuarial assumptions - 684,146 Difference between projected and actual investment earnings 6,425,721 - Contributions subsequent to the measurement date 8,822,517 - Total 23,080,134$ 815,521$ 8,822,517 reported as deferred oulows of resources related to pensions resulng from contribuons subsequent to the measurement date will be recognized as a reducon of the Net Pension Liability for the year ending September 30, 2025. Other amounts reported as deferred oulows and inows of resources related to pensions will be recognized in pension expense as follows: Measurement year ending December 31 2024 4,460,535$ 2025 4,731,012 2026 6,437,618 2027 (2,187,069) Total 13,442,096 I. Postemployment Benets Other than Pensions Supplemental Death Benets Plan - TMRS Plan Descripon. Texas Municipal Rerement System (“TMRS”) administers a dened benet group-term life insurance plan known as the Supplemental Death Benets Fund (“SDBF”). This is a voluntary program in which parcipang member cies may elect, by ordinance, to provide group-term life insurance coverage for their acve members, including or not including rerees. Employers may terminate coverage under and disconnue parcipaon in the SDBF by adopng an ordinance before November 1 of any year to be eecve the following January 1. The City has elected to parcipate in the SDBF for its acve members including rerees. As the SDBF covers both acve and reree parcipants, with no segregaon 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 reporng. Benets Provided. The death benet for acve 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 benet for rerees is considered an other postemployment benet (“OPEB”) and is a xed amount of $7,500.. City of Allen, Texas Notes to the Financial Statements 86 Contribuons and Funding Policy. The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuaon. 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 benet payments for the upcoming year. The intent is to not pre-fund reree term life insurance during employees’ enre careers. Contribuons are made monthly based on the covered payroll of employee members of the parcipang member city. The contractually required contribuon 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 specic to the workforce of the City. There is a one-year delay between the actuarial valuaon that serves as the basis for the employer contribuon rate and the calendar year when the rate goes into eect. The funding policy of this plan is to assure that adequate resources are available to meet all death benet payments for the upcoming year. The City’s contribuon to the TMRS SDBF for rerees for the scal year ended September 30, 2024, was 35,423, which was equal to the actuarially determined contribuon (ADC). Summary of Actuarial Assumpons and Other Inputs Used Inflation 2.50% Salary Increases 3.60% to 11.50%, including inflation Discount Rate 3.77%, as of December 31, 2023 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.Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis by the most recent scale MP-2021 (with immediate convergence). 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 the most recent scale MP-2021 (with immediate convergence) to account for future mortality improvements subject to the floor. N o t e: The actuarial assumptions used in the December 31, 2023, valuation was based on the results of an actuarial experience study for the period December 31, 2014, to December 31, 2022. Employees Covered by Benet Terms. At December 31, 2023, the actuarial valuaon and measurement date, the following employees were covered by the benet terms: Inactive employees or beneficiaries currently receiving benefits 264 Inactive employees entitled to, but not yet receiving benefits 146 Active employees 807 1,217 City of Allen, Texas Notes to the Financial Statements 87 Changes in Total OPEB Liability. Changes in total OPEB liability are as follows: Total OPEB Liability - beginning of year 1,664,547$ Changes for the year: Service cost 109,061 Interest on Total OPEB Liability 68,932 Difference between expected and actual experience (11,425) Change in assumptions or other inputs 97,465 Benefit payments, including (34,082) Net changes 229,951 Total OPEB Liability - end of year 1,894,498$ The City’s total OPEB liability of $1,894,498 was measured at December 31, 2023, and determined by an actuarial valuaon as of that date. Accordingly, no roll-forward is required. Sensivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.77%) or 1-percentage-point higher (4.77%) than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate 2.77%) (3.77%) (4.77%) City's total OPEB liability 2,301,994$ 1,894,498$ 1,579,410$ OPEB Expense and Deferred Oulows and Deferred Inows of Resources Related to OPEB. For the year ended September 30, 2024, the City recognized OPEB expense of $126,626. OPEB expense recognized is as follows: Components of OPEB Expense: Service cost 109,061$ Interest on Total OPEB Liability 68,932 Difference between expected and actual experience (26,099) Change in assumptions or other inputs (25,268) Total OPEB Expense 126,626 City of Allen, Texas Notes to the Financial Statements 88 At September 30, 2024, the City reported deferred oulows and inows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 15,748$ 98,657$ Changes in actuarial assumptions or other inputs 353,715 685,736 Contributions subsequent to the measurement date 26,973 - Total 396,436 784,393 Deferred oulows of resources in the amount of $26,973 related to OPEB that resulted from contribuons made subsequent to the measurement date but before September 30, 2025, will be recognized as a reducon of the net OPEB liability in the subsequent scal period rather than in the current scal period. Other amounts reported as deferred oulows of resources and deferred inows of resources related to OPEB will be recognized in future OPEB expense as follows: Year ending Net deferred outflows/ September 30, (inflows) of resources 2025 (67,712)$ 2026 (68,610) 2027 (86,964) 2028 (121,768) 2029 (73,452) Thereafter 3,576 Total (414,930) J. Risk Management Health and Dental Insurance. The City provides health and dental insurance benets to City employees under a modied self-insurance plan. Under the plan, the City and the employee pay a poron of a predetermined monthly premium, which is based on the esmated claims cost for the plan and the extent of medical coverage selected by the employee. To cover annual costs, premium payments are reported as operang revenues of the Risk Management Fund and operang expenditures/expenses of the parcipang funds. A commercial insurance carrier is ulized 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 protecon to limit claim liability for the plan as a whole. The liabilies for insurance claims reported are based on GASB No. 10, Accounng and Financial Reporng for Risk Financing and Related Insurance Issues, which requires that a liability for claims be reported if informaon prior to the issuance of the nancial statements indicates that it is probable that a liability has been incurred at the date of the nancial statements and the amount of the loss can be reasonably esmated. City of Allen, Texas Notes to the Financial Statements 89 These liabilies include an esmate for incurred but not reported claims. The esmated amount at September 30, 2024, was $1,062,803. Changes in the Risk Management liability during the past ve scal years were as follows: Balance at Current Year Claims Balance at Year Ending Beginning of and Changes in Claim End of September 30, Fiscal Year Estimates Payments Fiscal Year 2020 1,202,007$ 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 2024 1,015,508 12,106,056 12,058,761 1,062,803 Workers Compensaon & Property and Liability Insurance. The City parcipates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for workers’ compensaon 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 reect the City’s individual claims experience. As claims arise they are submied to and paid by TMLIRP. To cover annual costs, premium payments are reported as operang revenues of the Risk Management Fund and operang expenditures/expenses of the parcipang funds. The City has a workers’ compensaon deducble of $25,000 per occurrence, with an annual aggregate deducble of $330,000. During scal 2024, the City contributed $1,181,632 to the Risk Management Fund for workers’ compensaon. The City has various levels of insurance deducbles for property, liability, and automobile insurance with the maximum deducble set at $10,000. All insured claims are paid by TMLIRP, less the appropriate deducble. During scal 2024, the City contributed $1,330,530 for property and general liability. K. Tax Abatements and Economic Incenves The City enters into economic development agreements designed to promote development and redevelopment within the City, spur economic improvement, smulate commercial acvity, generate addional 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 incenve payments and rebates of fees that are not ed 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 requesng assistance. Recipients of assistance generally commit to building or remodeling real property and related infrastructure, demolishing and redeveloping outdated properes, expanding operaons, renewing facility leases, or bringing targeted businesses to the City. Agreements generally contain recapture provisions that may require repayment or terminaon if recipients do not meet the required provisions of the economic incenves. The following are the three categories of economic development agreements City has contracted: General Economic Development. The City, Allen Economic Development Corporaon, and Allen Community Development Corporaon enter into various agreements under Chapter 380 of the Texas Local Government Code to smulate economic development. Agreements may rebate a at amount or percentage of property City of Allen, Texas Notes to the Financial Statements 90 taxes or sales tax received, may result in fee reducons or rebates, or make lump sum payments to oset moving expenses, tenant nish-outs, demolion costs, infrastructure reimbursements, redevelopment costs or other expenses. During scal year 2024, the City rebated $6,618,557 in taxes. Addionally, for scal year 2024, the Allen Economic Development Corporaon rebated taxes in the amount of $49,205 and made incenve payments of $3,539,155, while the Allen Community Development Corporaon rebated taxes in the amount of $49,205, and made a grant payment of $615,000. Tax Abatements. Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to designate tax reinvestment zones and negoate 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 specied 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 $88,102 for the scal year ended September 30, 2024. 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 obligaons over the life of the TIF or unl all terms of the agreements have been met. Addionally, 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 $935,002 in payments for TIF obligaons during scal year 2024. L. Commitments and Conngent Liabilies Ligaon. 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 resoluon of these maers will not have a material adverse eect on the nancial condion 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, construcon, operang, and/or managing of the business within the City of Allen. All grants are performance based and do not constute liabilies on the City’s nancial records. M. Subsequent Events On December 10, 2024, the Allen Economic Development Corporaon (AEDC) sold two parcels of land held- for-sale to a major retailer for $17,584,830. The historical cost of the land was recorded by AEDC at 9,314,602, causing the corporaon to have a gain on the sale of the land of $8,270,228. ZZ ŽŽ Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes Ad valorem taxes 62,045,375$ 62,045,375$ 62,144,429$ 99,054$ Sales taxes 31,255,779 31,259,261 31,360,809 101,548 Franchise and right-of-way fees 7,418,414 7,529,768 7,642,112 112,344 Licenses, permits and fees 2,215,435 3,015,435 3,846,034 830,599 Charges for services 8,247,781 8,578,483 9,073,053 494,570 Fines and forfeitures 1,329,588 1,334,588 1,815,041 480,453 Intergovernmental 261,304 1,828,950 2,069,112 240,162 Investment earnings 2,733,004 4,042,676 6,815,962 2,773,286 Gifts and contributions 2,546,253 2,681,753 2,744,347 62,594 Miscellaneous 2,264,877 303,017 165,782 (137,235) TOTAL REVENUES 120,317,810 122,619,306 127,676,681 5,057,375 EXPENDITURES Current General government 26,433,259 27,806,033 31,116,493 (3,310,460) Public safety 60,109,514 61,041,437 62,652,800 (1,611,363) Public works 8,294,750 8,555,265 7,729,175 826,090 Culture and recreation 26,987,661 27,172,252 25,457,095 1,715,157 Community development 4,879,159 5,037,688 4,488,521 549,167 Capital outlay 175,000 338,103 954,211 (616,108) Debt Service Principal retirement - 666,255 666,255 - Interest and fiscal charges - 23,207 23,207 - TOTAL EXPENDITURES 126,879,343 130,640,240 133,087,757 (2,447,517) Excess (deficiency) of revenues over (under) expenditures (6,561,533) (8,020,934) (5,411,076) 2,609,858 OTHER FINANCING SOURCES (USES) Transfers in 8,601,680 8,600,810 8,221,810 379,000 Transfers out (2,050,147) (577,638) (1,673,198) 1,095,560 Leases - - 635,852 (635,852) Insurance recoveries - 31,600 37,898 (6,298) Proceeds from sale of capital assets 10,000 16,015 9,280 6,735 TOTAL OTHER FINANCING SOURCES (USES) 6,561,533 8,070,787 7,231,642 839,145 NET CHANGE IN FUND BALANCES - 49,853 1,820,566 3,449,003 FUND BALANCES - BEGINNING 32,548,113 32,548,113 32,548,113 32,548,113 FUND BALANCES - ENDING 32,548,113$ 32,597,966$ 34,368,679$ 35,997,116$ Budgeted Amounts For the Year Ended September 30, 2024 Changes in Fund Balance - Budget and Actual General Fund Schedule of Revenues, Expenditures, and City of Allen, Texas 95 Measurement year ended December 31,2023 2022 2021 2020 Total pension liability Service cost 12,173,921$ 10,871,510$ 10,401,936$ 9,715,534$ Interest 20,392,381 18,606,874 17,039,222 15,828,804 Difference in expected and actual experience 4,623,251 5,017,307 4,068,814 - Change in assumptions or other inputs (893,365) - - (735,396) Benefit payments, including refunds of employee contributions (8,815,211) (8,574,676) (8,465,892) (5,974,169) Net change in total pension liability 27,480,977 25,921,015 23,044,080 18,834,773 Total pension liability - beginning of year 300,429,991 274,508,976 251,464,896 232,630,123 Total pension liability - end of year (a)327,910,968$ 300,429,991$ 274,508,976$ 251,464,896$ Plan fiduciary net position Contributions - employer 10,143,549$ 9,488,440$ 8,906,713$ 8,425,764$ Contributions - employee 4,771,413 4,281,593 4,111,437 3,850,652 Net investment income (loss) 28,972,918 (19,290,735) 29,958,269 15,770,860 Benefit payments, including refunds of employee contributions (8,815,211) (8,574,676) (8,465,892) (5,974,169) Administrative expense (183,894) (166,644) (138,398) (101,906) Other (1,284) 198,855 949 (3,976) Net change in plan fiduciary net position 34,887,491 (14,063,167) 34,373,078 21,967,225 Plan fiduciary net position - beginning of year 249,752,924 263,816,091 229,443,013 207,475,788 Plan fiduciary net position - end of year (b)284,640,415$ 249,752,924$ 263,816,091$ 229,443,013$ Plan pension liability - ending (a) - (b)43,270,553$ 50,677,067$ 10,692,885$ 22,021,883$ Plan fiduciary net position as a % of total pension liability 86.80% 83.13% 96.10% 91.24% Covered payroll 68,163,049$ 61,007,354$ 58,734,814$ 54,952,114$ Net pension liability as a % of covered payroll 63.48% 83.07% 18.21% 40.07% City of Allen, Texas Schedule of Change is Net Pension Liability and Related Ratios - Retirement Plan (TMRS) Last Ten Measurement Years 96 2019 2018 2017 2016 2015 2014 9,118,332$ 8,503,427$ 8,091,540$ 7,740,829$ 7,377,440$ 6,407,942$ 14,492,431 13,379,960 12,232,446 11,165,087 10,562,818 9,749,386 1,564,808 (680) 1,293,282 894,580 196,259 (1,791,341) 409,038 - - - (231,950) - 6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435) (3,213,118) 19,388,613 16,660,477 17,193,500 15,898,007 14,657,132 11,152,869 213,241,510 196,581,033 179,387,533 163,489,526 148,832,394 137,679,525 232,630,123$ 213,241,510$ 196,581,033$ 179,387,533$ 163,489,526$ 148,832,394$ 8,050,585$ 7,423,200$ 7,130,557$ 6,473,617$ 6,063,051$ 5,455,902$ 3,661,981 3,423,774 3,274,594 3,129,050 3,021,766 2,754,779 27,097,746 (5,239,779) 20,569,321 9,039,319 188,559 6,648,346 6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435) (3,213,118) 152,888) (101,162) (106,520) (102,024) (114,830) (69,397) 4,592) (5,284) (5,400) (5,497) (5,671) (5,706) 32,456,836 278,519 26,438,784 14,631,976 5,905,440 11,570,806 175,018,952 174,740,433 148,301,649 133,669,673 127,764,233 116,193,427 207,475,788$ 175,018,952$ 174,740,433$ 148,301,649$ 133,669,673$ 127,764,233$ 25,154,335$ 38,222,558$ 21,840,600$ 31,085,884$ 29,819,853$ 21,068,161$ 89.19% 82.08% 88.89% 82.67% 81.76% 85.84% 52,314,010$ 48,814,159$ 46,476,391$ 44,410,952$ 43,142,910$ 39,335,988$ 48.08% 78.30% 46.99% 70.00% 69.12% 53.56% 97 Fiscal year ended September 30, 2024 2023 2022 2021 Actuarially determined contributions 10,638,139$ 9,556,198$ 8,810,782$ 8,333,070$ Contributions in relation to actuarially determined contributions (11,266,720) (9,866,638) (8,810,782) (8,739,669) Contribution deficiency (excess) (628,581)$ (310,440)$ -$ (406,599)$ Covered payroll 70,846,166$ 66,253,024$ 66,253,024$ 58,367,657$ Contributions as a percentage of covered payroll 15.90% 14.89% 13.30% 14.97% Notes to Schedule of OPEB contributions: Valuation Date Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality Other information: Entry age normal City of Allen, Texas Schedule of Contributions - Retirement Plan (TMRS) Last Ten Fiscal Years Actuarial determined contribution rates are calculated as of December 31 each year and become effected January 13 months later. There were no benefit changes during the year. Level percentage of payroll, closed 23 years (longest amortization ladder) 10 years smoothed fair value; 12% soft corridor 2.50% 3.50 % to 11.5% including inflation 6.75% 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. 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. 98 2020 2019 2018 2017 2016 2015 7,555,689$ 7,228,643$ 6,678,295$ 6,217,858$ 6,028,939$ 5,785,220$ 7,890,278) (7,736,900) (6,927,485) (6,545,488) (6,181,797) (5,797,651) 334,589)$ (508,257)$ (249,190)$ (327,630)$ (152,858)$ (12,431)$ 53,937,361$ 51,562,996$ 47,782,955$ 45,962,313$ 43,564,466$ 40,985,314$ 14.63% 15.00% 14.50% 14.24% 14.19% 14.15% 99 Measurement year ended December 31,2023 2022 2021 Total OPEB liability 3 Service cost 109,061$ 176,921$ 170,331$ Interest 68,932 46,027 44,623 Difference in expected and actual experience (11,425) 903 (7,796) Change in assumptions or other inputs 97,465 (960,097) 83,821 Benefit payments 2 ( 34,082) (24,403) (23,494) Net change in total OPEB liability 229,951 (760,649) 267,485 Total OPEB liability - beginning of year 1,664,547 2,425,196 2,157,711 Total OPEB liability - end of year 1,894,498$ 1,664,547$ 2,425,196$ Covered-employee payroll 68,163,049$ 61,007,654$ 58,734,814$ Total OPEB liability as a percentage of covered-employee payroll 2.78% 2.73% 4.13% Notes to the Schedule: 3 There are no assets accumulated in trust to pay related benefits for the OPEB plan. 2 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. City of Allen, Texas Schedule of Change in Total OPEB Liability and Related Ratios - Supplemental Death Benefits Fund Last Ten Measurement Years 1 GASB 75 requires ten fiscal years of data to be provided in this schedule. However information prior to 2017 is unavailable. Additional years will be displayed as they become available until ten years are presented. 100 2020 2019 2018 2017 1 126,390$ 94,165$ 97,628$ 83,658$ 49,783 56,186 45,926 42,992 78,736) (183,037) 101,506 - 315,925 317,781 (111,311) 121,271 5,495) (5,231) (4,881) (4,648) 407,867 279,864 128,868 243,273 1,749,844 1,469,980 1,341,112 1,097,839 2,157,711$ 1,749,844$ 1,469,980$ 1,341,112$ 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$ 3.93% 3.34% 3.01% 2.89% 101 Fiscal year ended September 30, 2 2024 2023 2022 Actuarially determined contributions 35,423$ 31,627$ 24,889$ Contributions in relation to actuarially determined contributions (35,423) (31,627) (24,889) Contribution deficiency (excess) -$ -$ -$ Covered-employee payroll 70,846,166$ 66,253,024$ 62,223,037$ Contributions as a percentage of covered-employee payroll 0.05% 0.05% 0.04% Notes to the Schedule City of Allen, Texas Schedule of OPEB Contributions - Supplemental Death Benefits Fund Last Ten Fiscal Years 1 GASB 75 requires ten fiscal years of data to be provided in this schedule. However information prior to 2018 is unavailable. Additional years will be displayed as they become available until ten years are presented. 2 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. 102 2021 2020 2019 2018 1 18,595$ 5,394$ 5,156$ 4,778$ 18,595) (5,394) (5,156) (4,778) 58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$ 0.03% 0.01% 0.01% 0.01% 103 City of Allen, Texas Notes to Required Supplementary Information For the Fiscal Year Ended September 30, 2024 104 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 presents a comparison of budgetary data to actual results. The General Fund utilizes the same basis of accounting for both budgetary purposes and actual results. Ž ŽŽ Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes Ad valorem taxes 18,934,142$ 18,934,142$ 18,689,627$ (244,515)$ Investment earnings 108,766 369,403 606,486 237,083 TOTAL REVENUES 19,042,908 19,303,545 19,296,113 (7,432) EXPENDITURES Debt Service Principal retirement 13,635,000 13,635,000 13,635,000 - Interest and fiscal charges 5,199,856 5,199,856 5,199,856 - Issuance costs - - 46,824 (46,824) TOTAL EXPENDITURES 18,834,856 18,834,856 18,881,680 (46,824) Excess of revenues over expenditures 208,052 468,689 414,433 39,392 OTHER FINANCING SOURCES (USES) Issuance of bonds - - 3,955,000 3,955,000 Premium on bonds issued - - 511,481 511,481 Payment to escrow agent - - (4,430,156) (4,430,156) TOTAL OTHER FINANCING SOURCES (USES) - - 36,325 36,325 NET CHANGE IN FUND BALANCES 208,052 468,689 450,758 (17,931) FUND BALANCES - BEGINNING 3,938,037 3,938,037 3,938,037 - FUND BALANCES - ENDING 4,146,089$ 4,406,726$ 4,388,795$ (17,931)$ Budgeted Amounts For the Year Ended September 30, 2024 Changes in Fund Balance - Budget and Actual Debt Service Fund Schedule of Revenues, Expenditures, and City of Allen, Texas 107 18 109 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenue sources that are restricted, committed, or assigned to expenditures for particular purposes. HOTEL OCCUPANCY TAX FUND – This fund is used to account for funds received from hotels for hotel occupancy taxes. These revenues are restricted for use on expenditures that directly enhance and promote tourism and the convention and hotel industry. The City’s Convention and Visitors Bureau is operated out of this fund. ASSET FORFEITURE FUND – This fund is used to account for assets legally seized and forfeited. These revenues are restricted by state and federal statute. SPECIAL REVENUE FUND – This fund is used to account for several programs that have external legal restrictions associated with their use. These programs are restricted for court technology and security, juvenile case manager, public, education, and government (“PEG”) fees, and a radio system. GRANTS FUND – This fund accounts for the revenues and expenditures associated with certain state and federal grants. PARK DEDICATION FUND – This fund accounts for funds received and expended for the specified purpose of acquisition of additional park land and the development of neighborhood parks. GIFT FUND – This fund accounts for the funds received as substantial gifts from the public and their restricted use. TAX INCREMENT FINANCING FUND – This fund accounts for a portion of property and sales tax collected in tax increment financing (TIF) zones. The agreements associated with these zones restricts the expenditures for project and financing costs in these areas. The 2 active TIF zones are the Montgomery Farm “Garden District”, and the Central Business District. Hotel Asset Special Occupancy Forfeiture Revenue Tax Fund Fund Fund ASSETS Cash and cash equivalents 2,160,854$ 277,175$ 1,693,669$ Investments 320,347 - 648,976 Receivables, net of allowances for uncollectibles Franchise and right-of-way fees - - 15,107 Accounts receivable 253,315 - - Accrued interest 1,233 - 2,498 Due from other governments - - - TOTAL ASSETS 2,735,749$ 277,175$ 2,360,250$ LIABILITIES Accounts payable 115,566 - 140,434 Accrued liabilities 14,422 146,435 - Retainage payable - - - Unearned revenue - - - TOTAL LIABILITIES 129,988 146,435 140,434 FUND BALANCES Restricted Tourism 2,605,761 - - State and federal grants - - - Park acquisition and development - - - Tax increment financing agreement - - - Other purposes - 130,740 2,219,816 TOTAL FUND BALANCES 2,605,761 130,740 2,219,816 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 2,735,749$ 277,175$ 2,360,250$ City of Allen, Texas Combining Balance Sheet - Nonmajor Governmental Funds September 30, 2024 Special Revenue 110 Total Park Tax Nonmajor Grants Dedication Gift Increment Governmental Fund Fund Fund Financing Fund Funds 1,083,566$ 1,928,355$ 284,096$ 11,404,787$ 18,832,502$ 3,334,718 4,304,041 15,107 253,315 12,833 16,564 270,632 - - - 270,632 1,354,198$ 1,928,355$ 284,096$ 14,752,338$ 23,692,161$ 361,545 - 21,567 - 639,112 160,857 194,831 - - - 194,831 559,308 - - - 559,308 1,115,684 - 21,567 - 1,554,108 2,605,761 238,514 - - - 238,514 1,928,355 - - 1,928,355 14,752,338 14,752,338 262,529 - 2,613,085 238,514 1,928,355 262,529 14,752,338 22,138,053 1,354,198$ 1,928,355$ 284,096$ 14,752,338$ 23,692,161$ Special Revenue 111 Hotel Asset Special Occupancy Forfeiture Revenue Tax Fund Fund Fund REVENUES Taxes Ad valorem taxes -$ -$ -$ Sales taxes - - - Franchise and right-of-way fees - - 93,424 Hotel occupancy taxes 2,481,874 - - Licenses, permits and fees 17,720 - 1,306,800 Fines and forfeitures - 47,886 163,505 Intergovernmental - - - Investment earnings 101,262 8,717 66,832 Miscellaneous - 15,001 - TOTAL REVENUES 2,600,856 71,604 1,630,561 EXPENDITURES Current General government - - 49,893 Public safety - 29,173 - Culture and recreation 2,272,139 - - Community development - - - Capital outlay - - 1,100,776 TOTAL EXPENDITURES 2,272,139 29,173 1,150,669 Excess (deficiency) of revenues over (under) expenditures 328,717 42,431 479,892 OTHER FINANCING SOURCES (USES) Transfers in - - 488,000 Transfers out (350,000) - (64,309) TOTAL OTHER FINANCING SOURCES (USES) (350,000) - 423,691 NET CHANGE IN FUND BALANCES (21,283) 42,431 903,583 FUND BALANCES - 9/30/2023, as previously presented 2,627,044 88,309 1,316,233 Change within financial reporting entity (major to nonmajor fund) - - - FUND BALANCES - 9/30/2023, as restated 2,627,044 88,309 1,316,233 FUND BALANCES - 9/30/2024 2,605,761$ 130,740$ 2,219,816$ City of Allen, Texas Combining Statement of Revenues, Expenditures, and For the Year Ended September 30, 2024 Special Revenue Changes in Fund Balances - Nonmajor Governmental Funds 112 Total Park Tax Nonmajor Grants Dedication Gift Increment Governmental Fund Fund Fund Financing Fund Funds 2,864,772$ 2,864,772 186,879 186,879 93,424 2,481,874 150,930 - - 1,475,450 211,391 2,769,094 - - 249,548 3,018,642 35,520 10,175 537,143 759,649 15,001 2,769,094 186,450 10,175 3,838,342 11,107,082 935,002 984,895 15,350 - 44,551 - 89,074 18,316 20,899 - - 2,311,354 1,680,333 - - - 1,680,333 1,055,095 86,465 114,755 - 2,357,091 2,769,094 107,364 159,306 935,002 7,422,747 79,086 (149,131) 2,903,340 3,684,335 96,847 - 584,847 30,000) (444,309) 96,847 (30,000) 140,538 79,086 (52,284) 2,873,340 3,824,873 1,849,269 314,813 11,878,998 18,074,666 238,514 - - - 238,514 238,514 1,849,269 314,813 11,878,998 18,313,180 238,514$ 1,928,355$ 262,529$ 14,752,338$ 22,138,053$ Special Revenue 113 1 115 NONMAJOR PROPRIETARY FUNDS ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the majority of revenues come from fees charged to external users for goods or services. SOLID WASTE FUND – This fund is used to account for the provision of solid waste services to residents of the city and associated operating and non-operating costs. DRAINAGE FUND – This fund is used to account for the provision of developing and maintaining proper drainage services to the residents of the city. GOLF COURSE FUND – This fund is used to account for activities associated with the operations of The Courses at Watters Creek Golf Course that has been owned by the City since October 2004. ALLEN EVENT CENTER FUND – This fund accounts for the activities associated with the operations of the Credit Union of Texas Event Center. The Event Center is a multi-purpose indoor arena built by the City in 2009 and renamed to the Credit Union of Texas Event Center in 2021. Total Nonmajor Solid Golf Allen Event Enterprise Waste Drainage Course Center Funds ASSETS CURRENT ASSETS Cash and cash equivalents 2,468,170$ 1,475,127$ 2,925,053$ 1,746,243$ 8,614,593$ Investments - - 1,353,719 - 1,353,719 Receivables, net of allowances for uncollectibles: Accounts 1,340,984 363,236 78,717 286,578 2,069,515 Accrued Interest - - 5,210 - 5,210 Inventories - - 32,091 69,859 101,950 TOTAL CURRENT ASSETS 3,809,154 1,838,363 4,394,790 2,102,680 12,144,987 NONCURRENT ASSETS CAPITAL ASSETS Other improvements - 1,230,546 - - 1,230,546 Machinery and equipment - 632,091 1,717,402 - 2,349,493 Vehicles 140,440 297,375 - - 437,815 Less: accumulated depreciation/amortization (119,374) (959,471) (1,025,276) - (2,104,121) TOTAL NONCURRENT ASSETS 21,066 1,200,541 692,126 - 1,913,733 TOTAL ASSETS 3,830,220 3,038,904 5,086,916 2,102,680 14,058,720 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - pension 184,641 166,177 429,289 641,627 1,421,734 Deferred outflows of resources - OPEB 3,171 2,854 7,373 11,020 24,418 TOTAL DEFERRED OUTFLOWS OF RESOURCES 187,812 169,031 436,662 652,647 1,446,152 LIABILITIES CURRENT LIABILITIES Accounts payable 311,208 16,620 212,865 563,484 1,104,177 Accrued liabilities 126,548 16,155 51,327 77,133 271,163 Financing arrangements - current - - 16,311 - 16,311 Leases - current - - 141,824 - 141,824 Compensated absences - current 24,457 13,800 51,903 50,673 140,833 Total OPEB liability - current 287 259 668 999 2,213 Unearned revenue - - 82,059 960,581 1,042,640 TOTAL CURRENT LIABILITIES 462,500 46,834 556,957 1,652,870 2,719,161 NONCURRENT LIABILITIES Financing arrangements - - 15,663 - 15,663 Leases - - 520,950 - 520,950 Net pension liability 346,164 311,548 804,832 1,202,921 2,665,465 Total OPEB liability 14,869 13,381 34,570 51,668 114,488 Compensated absences 97,827 55,199 207,614 202,693 563,333 TOTAL NONCURRENT LIABILITIES 458,860 380,128 1,583,629 1,457,282 3,879,899 TOTAL LIABILITIES 921,360 426,962 2,140,586 3,110,152 6,599,060 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - pension 6,524 5,872 15,169 22,671 50,236 Deferred inflows of resources - OPEB 6,275 5,647 14,590 21,806 48,318 TOTAL DEFERRED INFLOWS OF RESOURCES 12,799 11,519 29,759 44,477 98,554 NET POSITION Net investment in capital assets 21,066 1,200,541 (2,622) - 1,218,985 Unrestricted 3,062,807 1,568,913 3,355,855 (399,302) 7,588,273 TOTAL NET POSITION 3,083,873$ 2,769,454$ 3,353,233$ (399,302)$ 8,807,258$ City of Allen, Texas Combining Statement of Net Position - Nonmajor Enterprise Funds September 30, 2024 Enterprise Funds 116 Total Nonmajor Solid Golf Allen Event Enterprise Waste Drainage Course Center Funds OPERATING REVENUES Charges for services: Garbage collections 8,511,164$ -$ -$ -$ 8,511,164$ Service charges - 138,104 4,894,407 7,997,824 13,030,335 Drainage fees - 2,277,643 - - 2,277,643 Insurance recoveries - 16,930 8,127 - 25,057 Miscellaneous 37,554 - 59,706 1,499,776 1,597,036 TOTAL OPERATING REVENUES 8,548,718 2,432,677 4,962,240 9,497,600 25,441,235 OPERATING EXPENSES Personnel services 850,716 833,777 2,083,400 3,011,049 6,778,942 Contractual services 6,779,829 329,133 1,229,304 6,313,793 14,652,059 Maintenance 46,057 431,169 648,353 613,356 1,738,935 Supplies 34,665 80,658 350,303 188,956 654,582 Depreciation and amortization 14,044 133,760 261,213 - 409,017 TOTAL OPERATING EXPENSES 7,725,311 1,808,497 4,572,573 10,127,154 24,233,535 OPERATING INCOME (LOSS) 823,407 624,180 389,667 (629,554) 1,207,700 NON-OPERATING REVENUES (EXPENSES) Investment earnings 58,805 46,699 132,682 1,681 239,867 Interest expense - - (7,359) - (7,359) TOTAL NON-OPERATING REVENUES (EXPENSES) 58,805 46,699 125,323 1,681 232,508 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 882,212 670,879 514,990 (627,873) 1,440,208 CAPITAL CONTRIBUTIONS AND TRANSFERS Transfers in - - - 901,351 901,351 Transfers out (657,072) (435,567) - - (1,092,639) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS (657,072) (435,567) - 901,351 (191,288) CHANGE IN NET POSITION 225,140 235,312 514,990 273,478 1,248,920 NET POSITION - 9/30/2023, as previously presented - - - - - Change within financial reporting entity (major to nonmajor fund) 2,858,733 2,534,142 2,838,243 (672,780) 7,558,338 NET POSITION - 9/30/2023, as restated 2,858,733 2,534,142 2,838,243 (672,780) 7,558,338 NET POSITION - 9/30/2024 3,083,873$ 2,769,454$ 3,353,233$ (399,302)$ 8,807,258$ City of Allen, Texas Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds For the year ended September 30, 2024 Enterprise Funds 117 1 Total Nonmajor Solid Golf Allen Event Enterprise Waste Drainage Course Center Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 8,593,431$ 2,371,169$ 4,903,722$ 8,974,626$ 24,842,948$ Cash paid to employees for salaries and benefits (805,204) (798,524) (2,050,076) (2,959,305) (6,613,109) Cash paid for goods and services (6,925,147) (846,085) (2,230,015) (6,877,989) (16,879,236) NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 863,080 726,560 623,631 (862,668) 1,350,603 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in from other funds - - - 901,351 901,351 Transfers out to other funds (657,072) (435,567) - - (1,092,639) NET CASH PROVIDED BY (USED FOR) NON-CAPITAL FINANCING ACTIVITIES (657,072) (435,567) - 901,351 (191,288) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets - (205,710) - - (205,710) Principal paid on capital debt - - (190,956) - (190,956) Interest and fees paid on capital debt - - (7,360) - (7,360) NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES - (205,710) (198,316) - (404,026) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 58,805 46,699 135,570 1,681 242,755 Proceeds from sale of investments - - 398,951 - 398,951 NET CASH PROVIDED BY INVESTING ACTIVITIES 58,805 46,699 534,521 1,681 641,706 NET CHANGE IN CASH AND CASH EQUIVALENTS 264,813 131,982 959,836 40,364 1,396,995 CASH AND CASH EQUIVALENTS - BEGINNING 2,203,357 1,343,145 1,965,217 1,705,879 7,217,598 CASH AND CASH EQUIVALENTS - ENDING 2,468,170$ 1,475,127$ 2,925,053$ 1,746,243$ 8,614,593$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Net operating income (loss) 823,407$ 624,180$ 389,667$ (629,554)$ 1,207,700$ Adjustments to reconcile income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense 14,044 133,760 261,213 - 409,017 Increase) decrease in accounts receivable (417,712) (62,362) (78,717) (35,316) (594,107) Increase) decrease in other receivables 462,425 854 6,834 - 470,113 Increase) decrease in inventories - - (4,744) (7,838) (12,582) Increase) decrease in pension related deferred outflows 81,652 43,724 197,286 273,171 595,833 Increase) decrease in OPEB related deferred outflows 637 148 1,590 2,065 4,440 Increase (decrease) in accounts payable (64,596) (4,730) 2,689 245,954 179,317 Increase (decrease) in retainage payable - (395) - - (395) Increase (decrease) in accrued liabilities 38,225 2,515 12,307 18,216 71,263 Increase (decrease) in unearned revenue - - 82,059 664,130 746,189 Increase (decrease) in deposits payable - - (68,694) (1,151,788) (1,220,482) Increase (decrease) in net pension liability (84,591) (27,988) (208,709) (276,849) (598,137) Increase (decrease) in total OPEB liability 1,007 2,488 1,947 4,062 9,504 Increase (decrease) in compensated absences 6,469 11,271 24,289 23,314 65,343 Increase (decrease) in pension related deferred inflows 4,124 3,980 9,521 14,425 32,050 Increase (decrease) in OPEB related deferred inflows (2,011) (885) (4,907) (6,660) (14,463) Total adjustments 39,673 102,380 233,964 (233,114) 142,903 NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 863,080$ 726,560$ 623,631$ (862,668)$ 1,350,603$ City of Allen, Texas Combining Statement of Cash Flows - Nonmajor Enterprise Funds For the year ended September 30, 2024 Enterprise Funds 119 120 NONMAJOR PROPRIETARY FUNDS INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of services provided by one fund to the other funds within the City on a cost-reimbursement basis. REPLACEMENT FUND – This fund is used to account for the costs associated with the replacement of capital assets in other funds and departments. RISK MANAGEMENT FUND – This fund is used to account 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 – This fund is used to account for the accumulation of resources to address large repairs and aging facility infrastructure. The accumulation of resources will help address major building repairs and prevent building deterioration. Risk Facility Replacement Management Maintenance Fund Fund Fund Totals ASSETS CURRENT ASSETS Cash and cash equivalents 17,590,225$ 7,999,223$ 6,193,749$ 31,783,197$ Investments 4,099,129 4,924,686 496,339 9,520,154 Receivables, net of allowances for uncollectibles: Accounts 50,248 36,770 - 87,018 Accrued Interest 15,775 18,952 1,910 36,637 Prepaid items - 222,311 - 222,311 TOTAL CURRENT ASSETS 21,755,377 13,201,942 6,691,998 41,649,317 NONCURRENT ASSETS CAPITAL ASSETS Construction in Progress 558,180 - 22,095 580,275 Machinery and equipment 7,046,364 - - 7,046,364 Vehicles 25,843,394 - - 25,843,394 Less: accumulated depreciation (21,067,219) - - (21,067,219) TOTAL NONCURRENT ASSETS 12,380,719 - 22,095 12,402,814 TOTAL ASSETS 34,136,096$ 13,201,942$ 6,714,093$ 54,052,131$ LIABILITIES CURRENT LIABILITIES Accounts payable 345,497 116,028 99,126 560,651 Accrued liabilities - 12,390 - 12,390 Retainage payable - - 21,867 21,867 Incurred but not reported claims - 1,062,803 - 1,062,803 TOTAL LIABILITIES 345,497 1,191,221 120,993 1,657,711 NET POSITION Net investment in capital assets 12,072,718 - 22,095 12,094,813 Unrestricted 21,717,881 12,010,721 6,571,005 40,299,607 TOTAL NET POSITION 33,790,599$ 12,010,721$ 6,593,100$ 52,394,420$ City of Allen, Texas Combining Statement of Net Position - Internal Service Funds September 30, 2024 121 Risk Facility Replacement Management Maintenance Fund Fund Fund Totals OPERATING REVENUES Charges for services 3,542,830$ 14,871,062$ 5,433,000$ 23,846,892$ Insurance recoveries 151,937 2,669,652 - 2,821,589 Miscellaneous 877,900 - - 877,900 TOTAL OPERATING REVENUES 4,572,667 17,540,714 5,433,000 27,546,381 OPERATING EXPENSES Personnel services - 645,787 - 645,787 Contractual services 26,725 17,377,203 32,586 17,436,514 Maintenance - 15,199 491,050 506,249 Supplies 95,261 26,559 - 121,820 Depreciation and amortization 2,800,981 - - 2,800,981 TOTAL OPERATING EXPENSES 2,922,967 18,064,748 523,636 21,511,351 OPERATING INCOME (LOSS) 1,649,700 (524,034) 4,909,364 6,035,030 NON-OPERATING REVENUES (EXPENSES) Investment earnings 973,023 611,641 56,574 1,641,238 Gain (loss) on disposal of capital assets 254,368 - - 254,368 TOTAL NON-OPERATING REVENUES (EXPENSES) 1,227,391 611,641 56,574 1,895,606 CHANGE IN NET POSITION 2,877,091 87,607 4,965,938 7,930,636 NET POSITION - 9/30/2023 30,913,508 11,923,114 1,627,162 44,463,784 NET POSITION - 9/30/2024 33,790,599$ 12,010,721$ 6,593,100$ 52,394,420$ City of Allen, Texas Combining Statement of Revenues, Expenses and For the year ended September 30, 2024 Changes in Net Position - Internal Service Funds 122 Risk Facility Replacement Management Maintenance Fund Fund Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 1,029,837$ 2,669,652$ -$ 3,699,489$ Cash received from transactions with other funds 3,492,582 14,955,516 5,433,000 23,881,098 Cash paid to employees for salaries and benefits - (633,397) - (633,397) Cash paid for goods and services (727,453) - (579,855) (1,307,308) Cash paid for claims - (17,638,746) - (17,638,746) NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 3,794,966 (646,975) 4,853,145 8,001,136 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (6,903,227) - (22,095) (6,925,322) Proceeds from sale of capital assets 254,368 - - 254,368 NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES (6,648,859) - (22,095) (6,670,954) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 989,395 625,861 57,633 1,672,889 Proceeds from sale of investments 2,858,405 2,241,023 146,275 5,245,703 NET CASH PROVIDED BY INVESTING ACTIVITIES 3,847,800 2,866,884 203,908 6,918,592 NET CHANGE IN CASH AND CASH EQUIVALENTS 993,907 2,219,909 5,034,958 8,248,774 CASH AND CASH EQUIVALENTS - BEGINNING 16,596,318 5,779,314 1,158,791 23,534,423 CASH AND CASH EQUIVALENTS - ENDING 17,590,225$ 7,999,223$ 6,193,749$ 31,783,197$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Net operating income (loss) 1,649,700$ (524,034)$ 4,909,364$ 6,035,030$ Adjustments to reconcile income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense 2,800,981 - - 2,800,981 Increase) decrease in accounts receivable (50,248) 84,454 - 34,206 Increase) decrease in prepaid items - (100,387) - (100,387) Increase (decrease) in accounts payable (605,467) (166,693) (78,086) (850,246) Increase (decrease) in retainage payable - - 21,867 21,867 Increase (decrease) in accrued liabilities - 12,390 - 12,390 Increase (decrease) in incurred but not reported claims - 47,295 - 47,295 Total adjustments 2,145,266 (122,941) (56,219) 1,966,106 NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 3,794,966$ (646,975)$ 4,853,145$ 8,001,136$ City of Allen, Texas Combining Statement of Cash Flows - Internal Service Funds For the year ended September 30, 2024 123 124 DISCRETELY PRESENTED COMPONENT UNITS The City has two legally separate organizations 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. ALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC) – The AEDC was formed in 1992 and is responsible for aiding, promoting, and furthering economic development within Allen. ALLEN COMMUNITY DEVELOPMENT CORPORATION (ACDC) – This ACDC was formed in 1996 and receives funds from the Type 4B half-cent sales tax for community development projects. The ACDC is responsible for supporting the improvements in community parks and recreation, streets and sidewalks, public safety, and the community library. Allen Allen Economic Community Development Development Corporation Corporation Total ASSETS Cash and cash equivalents 12,480,544$ 14,733,870$ 27,214,414$ Investments 5,181,009 14,277,060 19,458,069 Receivables, net of allowances for uncollectibles Sales taxes 2,380,011 2,380,011 4,760,022 Accrued interest 16,090 54,944 71,034 Prepaid items 5,000 - 5,000 TOTAL ASSETS 20,062,654$ 31,445,885$ 51,508,539$ LIABILITIES Accounts payable 112,781 1,210,794 1,323,575 Accrued liabilities 26,583 9,539 36,122 Retainage payable - 63,509 63,509 TOTAL LIABILITIES 139,364 1,283,842 1,423,206 FUND BALANCES Nonspendable Prepaid items 5,000 - 5,000 Restricted Debt service 2,273,595 2,414,667 4,688,262 Unassigned 17,644,695 27,747,376 45,392,071 TOTAL FUND BALANCES 19,923,290 30,162,043 50,085,333 TOTAL LIABILITIES AND FUND BALANCES 20,062,654$ 31,445,885$ 51,508,539$ City of Allen, Texas Balance Sheet - Discretely Presented Component Units September 30, 2024 125 Allen Economic Development Corporation Allen Community Development Corporation Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds 19,923,290$ 30,162,043$ 42,823,111 97,071,875 276,125) (42,894,364) Sales tax revenue bonds payable (7,250,000) (16,975,000) Accrued interest payable on long-term debt (20,336) (38,190) Premiums on general obligation bonds (218,687) - Net position of governmental activities 54,981,253$ 67,326,364$ Discretely Presented Component Units Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position City of Allen, Texas Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds: Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. Total capital assets Accumulated depreciation September 30, 2024 126 Allen Allen Economic Community Development Development Corporation Corporation Total REVENUES Taxes Sales taxes 15,528,579$ 15,528,579$ 31,057,158$ Investment earnings 750,805 1,340,736 2,091,541 Miscellaneous 710,068 41,279 751,347 TOTAL REVENUES 16,989,452 16,910,594 33,900,046 EXPENDITURES Current Economic development 5,943,623 - 5,943,623 Community development - 4,847,775 4,847,775 Culture and recreation - 1,962,469 1,962,469 Capital outlay 6,739,766 7,450,354 14,190,120 Debt Service Principal retirement 1,515,000 1,890,000 3,405,000 Interest and fiscal charges 321,798 525,518 847,316 TOTAL EXPENDITURES 14,520,187 16,676,116 31,196,303 Excess (deficiency) of revenues over (under) expenditures 2,469,265 234,478 2,703,743 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets - 4,201 4,201 Insurance recoveries - 1,030 1,030 TOTAL OTHER FINANCING SOURCES (USES) - 5,231 5,231 NET CHANGE IN FUND BALANCES 2,469,265 239,709 2,708,974 FUND BALANCES - 9/30/2023 17,454,025 29,922,334 47,376,359 FUND BALANCES - 9/30/2024 19,923,290$ 30,162,043$ 50,085,333$ City of Allen, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Discretely Presented Component Units For the Year Ended September 30, 2024 127 Allen Economic Development Corporation Allen Community Development Corporation Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance - total governmental funds 2,469,265$ 239,709$ 6,689,563 4,263,154 Bond and lease principal paid 1,515,000 1,890,000 Amortization of bond premiums 72,895 - Deferred loss/gain on refunding charges (129,925) - Accrued interest on long-term debt 4,740 3,334 Change in net position of governmental activities 10,621,538$ 6,396,197$ Discretely Presented Component Units Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities City of Allen, Texas Some revenues and expenses reported in the statement of activities do not provide or require the use of current financial resources and, therefore, are not reported in the governmental funds. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current period. Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Year Ended September 30, 2024 128 Ž h 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. 131 Fiscal year ended September 30,2024 2023 2022 2021 Governmental activities Net investment in capital assets 404,047,053$ 389,804,091$ 392,949,598$ 388,795,081$ Restricted 26,737,949 22,260,823 16,101,110 14,807,800 Unrestricted 70,719,947 76,104,550 76,814,254 72,520,903 Total governmental net position 501,504,949$ 488,169,464$ 485,864,962$ 476,123,784$ Business-type activities Net investment in capital assets 125,811,570$ 122,533,611$ 108,374,156$ 113,396,556$ Restricted 2,336,548 2,634,465 1,230,726 764,763 Unrestricted 87,631,740 65,836,910 70,596,998 56,890,299 Total business-type net position 215,779,858$ 191,004,986$ 180,201,880$ 171,051,618$ Primary government Net investment in capital assets 529,858,623$ 512,337,702$ 501,323,754$ 502,191,637$ Restricted 29,074,497 24,895,288 17,331,836 15,572,563 Unrestricted 158,351,687 141,941,460 147,411,252 129,411,202 Total primary government net position 717,284,807$ 679,174,450$ 666,066,842$ 647,175,402$ Source: City of Allen Annual Comprehensive Financial Reports Last Ten Fiscal Years Net Position by Component (Accrual Basis of Accounting) (Unaudited) City of Allen, Texas 132 Table 1 2020 2019 2018 2017 2016 2015 392,368,425$ 391,261,029$ 379,153,944$ 366,322,218$ 364,667,251$ 355,756,224$ 13,891,413 44,872,796 39,588,223 38,303,226 32,485,173 31,476,026 57,821,649 20,238,419 15,312,432 15,902,576 14,435,604 16,596,955 464,081,487$ 456,372,244$ 434,054,599$ 420,528,020$ 411,588,028$ 403,829,205$ 113,355,391$ 113,459,625$ 103,762,241$ 107,926,811$ 106,174,191$ 102,340,588$ 513,520 571,053 46,350 195,485 216,664 344,421 50,803,699 40,240,619 43,785,615 31,920,455 33,592,809 34,165,174 164,672,610$ 154,271,297$ 147,594,206$ 140,042,751$ 139,983,664$ 136,850,183$ 505,723,816$ 504,720,654$ 482,916,185$ 474,249,029$ 470,841,442$ 458,096,812$ 14,404,933 45,443,849 39,634,573 38,498,711 32,701,837 31,820,447 108,625,348 60,479,038 59,098,047 47,823,031 48,028,413 50,762,129 628,754,097$ 610,643,541$ 581,648,805$ 560,570,771$ 551,571,692$ 540,679,388$ 133 Fiscal year ended September 30,2024 2023 2022 2021 Expenses Governmental activities: General government 36,583,521$ 29,565,683$ 26,469,412$ 22,940,360$ Public safety 67,135,182 57,988,034 63,891,672 49,532,988 Public works 29,858,727 27,241,203 9,148,396 19,661,514 Culture and recreation 31,337,978 29,952,582 36,053,830 29,359,242 Community development 6,470,480 6,731,357 5,587,202 6,330,539 Interest on long-term debt 4,022,874 4,966,234 2,312,561 3,103,192 Total governmental activities expenses 175,408,762 156,445,093 143,463,073 130,927,835 Business-type activities: Water and sewer 57,160,608 54,520,345 46,917,817 46,442,937 Solid waste 7,725,311 7,563,726 7,088,901 6,824,441 Drainage 1,808,497 1,588,923 1,349,306 1,497,014 Golf Course 4,579,932 4,267,842 3,800,645 3,557,076 Allen event center 10,127,154 9,442,654 - - Total business-type activities expenses 81,401,502 77,383,490 59,156,669 58,321,468 Total primary government expenses 256,810,264$ 233,828,583$ 202,619,742$ 189,249,303$ Program Revenues Governmental activities: Charges for Services: General government 2,502,305$ 43,068$ 570,560$ 598,846$ Public safety 2,811,849 3,198,388 2,221,519 2,063,311 Public works 1,903,232 247,203 484,796 587,112 Culture and recreation 7,116,231 2,949,789 7,154,042 4,649,476 Community development 3,566,062 3,671,645 2,828,805 4,024,897 Operating grants and contributions 10,617,394 3,639,508 5,477,428 4,874,743 Capital grants and contributions 15,764,984 1,675,949 11,162,094 8,535,198 Total governmental activities program revenue 44,282,057 15,425,550 29,899,244 25,333,583 Business-type activities: Charges for services: Water and sewer 75,772,356 64,410,519 57,519,014 49,099,338 Solid waste 8,511,164 8,057,287 7,278,382 7,039,328 Drainage 2,417,885 2,333,571 1,984,067 1,826,950 Golf Course 6,685,903 4,666,829 4,502,056 4,196,161 Allen event center 7,997,824 6,849,467 - - Operating grants and contributions - - - - Capital grants and contributions 7,014,220 4,267,362 4,072,343 5,695,888 Total business-type activities program revenue 108,399,352 90,585,035 75,355,862 67,857,665 Total primary government program revenues 152,681,409$ 106,010,585$ 105,255,106$ 93,191,248$ Net (Expenses) Revenue Governmental activities (131,126,705)$ (141,019,543)$ (113,563,829)$ (105,594,252)$ Business-type activities 26,997,850 13,201,545 16,199,193 9,536,197 Total primary government net expenses (104,128,855)$ (127,817,998)$ (97,364,636)$ (96,058,055)$ City of Allen, Texas Last Ten Fiscal Years Changes in Net Position (Accrual Basis of Accounting) (Unaudited) 134 Table 2 2020 2019 2018 2017 2016 2015 24,937,087$ 21,238,061$ 26,764,210$ 28,251,550$ 25,304,811$ 24,464,246$ 47,369,212 44,993,635 39,213,768 39,624,788 35,199,937 31,607,444 22,393,268 27,039,953 24,161,991 20,209,785 19,083,214 18,349,569 29,015,632 33,287,645 33,791,438 28,968,534 32,851,598 32,407,934 5,238,233 3,160,050 3,079,242 3,007,047 3,251,555 2,861,704 2,745,698 2,888,831 2,920,824 2,980,513 3,356,234 3,921,989 131,699,130 132,608,175 129,931,473 123,042,217 119,047,349 113,612,886 45,524,999 44,511,123 41,134,685 39,527,816 35,604,182 32,304,628 6,525,391 6,248,035 6,223,788 6,078,853 5,870,269 5,560,294 1,555,570 1,396,935 1,260,262 1,193,057 1,146,138 914,322 3,166,856 3,332,927 3,397,180 3,135,144 3,089,041 2,911,476 56,772,816 55,489,020 52,015,915 49,934,870 45,709,630 41,690,720 188,471,946$ 188,097,195$ 181,947,388$ 172,977,087$ 164,756,979$ 155,303,606$ 509,691$ 500,122$ 525,542$ 497,243$ 467,786$ 705,064$ 2,189,114 1,954,810 2,171,332 2,712,076 1,801,984 1,647,407 725,209 1,485,962 1,333,506 293,559 210,687 233,808 3,793,429 9,744,309 9,803,084 8,747,206 10,289,465 9,177,211 2,530,977 4,798,471 4,025,326 4,266,140 3,216,799 3,021,708 3,427,631 2,056,001 2,423,768 2,443,054 1,557,260 1,749,567 10,639,664 19,888,044 18,942,856 15,327,094 16,039,869 10,552,610 23,815,715 40,427,719 39,225,414 34,286,372 33,583,850 27,087,375 49,461,636 43,103,920 42,453,681 37,163,882 36,335,868 34,135,714 7,116,831 7,006,423 6,933,356 6,735,559 6,687,182 6,474,386 2,162,770 1,763,694 1,907,407 1,648,681 1,519,405 1,465,044 3,199,136 3,138,144 2,810,424 2,959,361 2,705,799 2,361,384 1,000,000 8,332,962 10,175,397 9,734,528 5,622,911 6,172,301 4,416,642 70,273,335 65,187,578 63,839,396 54,130,394 53,420,555 49,853,170 94,089,050$ 105,615,297$ 103,064,810$ 88,416,766$ 87,004,405$ 76,940,545$ 107,883,415)$ (92,180,456)$ (90,706,059)$ (88,755,845)$ (85,463,499)$ (86,525,511)$ 13,500,519 9,698,558 11,823,481 4,195,524 7,710,925 8,162,450 94,382,896)$ (82,481,898)$ (78,882,578)$ (84,560,321)$ (77,752,574)$ (78,363,061)$ 135 Fiscal year ended September 30,2024 2023 2022 2021 General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes 83,821,874$ 76,465,116$ 74,289,475$ 71,946,802$ Sales taxes 31,547,688 29,480,960 27,609,918 25,599,945 Franchise taxes 7,735,536 7,573,389 7,481,353 6,821,738 Hotel / Motel taxes 2,481,874 2,382,951 2,074,533 1,337,147 Other taxes - 1,406,052 1,425,226 1,171,378 Investment earnings 11,035,616 8,614,384 (4,921,824) 1,118,970 Gain on disposition of capital assets - - 291,333 322,084 Miscellaneous 162,288 11,688,618 8,689,016 5,311,149 Transfers 7,677,314 5,712,575 6,365,977 4,007,336 Total governmental activities 144,462,190 143,324,045 123,305,007 117,636,549 Business-type activities: Investment earnings 2,853,701 2,238,213 (1,830,191) 398,387 Gain on disposition of capital assets 9,650 - - 7,585 Miscellaneous 2,590,985 1,075,923 1,147,237 444,175 Transfers (7,677,314) (5,712,575) (6,365,977) (4,007,336) Total business-type activities (2,222,978) (2,398,439) (7,048,931) (3,157,189) Total primary government 142,239,212$ 140,925,606$ 116,256,076$ 114,479,360$ Change in Net Position Governmental activities 13,335,485$ 2,304,502$ 9,741,178$ 12,042,297$ Business-type activities 24,774,872 10,803,106 9,150,262 6,379,008 Total primary government 38,110,357$ 13,107,608$ 18,891,440$ 18,421,305$ Source: City of Allen Annual Comprehensive Financial Reports Last Ten Fiscal Years (continued) Changes in Net Position (Accrual Basis of Accounting) (Unaudited) City of Allen, Texas 136 Table 2 continued) 2020 2019 2018 2017 2016 2015 70,917,335$ 68,865,078$ 63,929,379$ 58,816,876$ 54,102,952$ 50,143,986$ 21,686,335 21,648,401 20,717,505 19,450,088 19,274,983 18,141,683 7,454,713 7,810,093 7,990,092 7,553,013 7,295,931 7,412,447 1,156,398 1,759,159 1,487,066 1,547,244 1,607,263 1,544,160 1,195,296 2,204,220 1,704,227 1,912,559 1,621,012 1,851,397 4,246,550 4,048,112 944,196 837,577 735,832 689,736 144,347 - 446,117 263,627 - - 4,188,530 3,460,124 3,592,229 2,703,964 3,794,277 2,650,103 4,603,154 4,702,914 4,398,244 4,610,889 4,790,072 6,249,489 115,592,658 114,498,101 105,209,055 97,695,837 93,222,322 88,683,001 1,140,957 1,284,728 210,045 199,508 197,125 194,051 9,713 - 13,228 - 15,503 - 353,278 396,719 21,030 274,944 - 1,003,939 4,603,154) (4,702,914) (4,398,244) (4,610,889) (4,790,072) (6,249,489) 3,099,206) (3,021,467) (4,153,941) (4,136,437) (4,577,444) (5,051,499) 112,493,452$ 111,476,634$ 101,055,114$ 93,559,400$ 88,644,878$ 83,631,502$ 7,709,243$ 22,317,645$ 14,502,996$ 8,939,992$ 7,758,823$ 2,157,490$ 10,401,313 6,677,091 7,669,540 59,087 3,133,481 3,110,951 18,110,556$ 28,994,736$ 22,172,536$ 8,999,079$ 10,892,304$ 5,268,441$ 137 Fiscal year ended September 30,2024 2023 2022 2021 General Fund Nonspendable 36,946$ 141,304$ 28,677$ 145,700$ Restricted 71,089 67,335 64,234 63,627 Assigned - 922,899 71,742 - Unassigned 34,260,644 31,416,575 28,615,271 27,554,966 Total General Fund 34,368,679$ 32,548,113$ 28,779,924$ 27,764,293$ All Other Governmental Funds Nonspendable -$ -$ 751$ 751$ Restricted 139,157,722 62,722,524 66,742,207 72,968,241 Assigned 28,420,359 29,805,326 35,208,805 42,842,631 Unassigned (deficit) - - - - Total all other governmental funds 167,578,081$ 92,527,850$ 101,951,763$ 115,811,623$ Source: City of Allen Annual Comprehensive Financial Reports Last Ten Fiscal Years Fund Balances of Governmental Funds (Modified Accrual Basis of Accounting) (Unaudited) City of Allen, Texas 138 Table 3 2020 2019 2018 2017 2016 2015 8,777$ 209,323$ 25,747$ 126,833$ 2,129$ 1,486$ 63,185 61,304 59,386 58,910 907,908 779,185 2,000,000 - 921,030 26,826,184 25,744,069 23,626,108 19,684,053 20,911,943 18,407,873 26,898,146$ 26,014,696$ 23,711,241$ 21,869,796$ 21,821,980$ 20,109,574$ 751$ 751$ -$ -$ -$ -$ 46,411,439 31,444,917 27,922,044 57,540,668 46,610,702 51,398,430 34,703,219 32,023,933 28,349,191 - - - 4,428) - - - 81,115,409$ 63,469,601$ 56,266,807$ 57,540,668$ 46,610,702$ 51,398,430$ 139 Fiscal year ended September 30,2024 2023 2022 2021 REVENUES Taxes Ad valorem taxes 83,698,828$ 76,460,066$ 74,300,459$ 71,825,685$ Sales taxes 31,547,688 29,480,960 27,609,918 25,599,945 Franchise and right-of-way fees 7,735,536 7,573,389 7,481,353 6,821,738 Hotel occupancy taxes 2,481,874 3,765,001 2,074,533 1,337,147 Licenses, permits and fees 5,321,484 6,112,789 3,101,820 4,509,535 Charges for services 10,565,137 1,406,052 10,959,753 8,061,820 Fines and forfeitures 2,026,432 2,565,742 1,425,226 1,171,378 Intergovernmental 7,775,885 2,382,951 7,511,497 9,506,946 Investment earnings 11,035,616 9,319,418 (3,634,356) 877,724 Gifts and contributions 2,774,347 7,182,239 2,917,033 1,296,178 Miscellaneous 181,564 3,233,944 3,148,527 4,725,411 TOTAL REVENUES 165,144,391 149,482,551 136,895,763 135,733,507 EXPENDITURES Current General government 34,670,192 29,073,166 26,252,997 22,222,641 Public safety 63,867,326 56,237,944 51,607,583 49,928,774 Public works 13,377,457 16,403,207 14,556,933 11,430,042 Culture and recreation 27,768,449 23,433,197 30,551,147 25,883,652 Community development 6,377,800 4,137,402 3,807,968 3,590,155 Capital outlay 20,045,550 30,316,623 36,748,922 8,483,652 Debt Service Principal retirement 14,301,255 11,641,269 12,507,068 11,049,141 Interest and fiscal charges 5,223,063 5,199,805 4,412,050 3,737,148 Issuance costs 769,213 - - - TOTAL EXPENDITURES 186,400,305 176,442,613 180,444,668 136,325,205 Excess (deficiency) of revenues over (under) expenditures (21,255,914) (26,960,062) (43,548,905) (591,698) OTHER FINANCING SOURCES (USES) Transfers in 10,131,657 12,746,544 9,865,902 10,180,045 Transfers out (2,454,343) (7,033,969) (5,314,683) (7,481,221) Issuance of bonds 80,500,000 14,525,000 23,000,000 27,200,000 Issuance of refunding bonds 3,955,000 - - 6,340,000 Premium on bonds issued 9,741,523 771,340 2,777,611 6,881,772 Financing arrangements - - - 100,674 Leases 635,852 280,177 318,698 - Payment to escrow agent (4,430,156) - - (7,105,226) Insurance recoveries 37,898 - - - Proceeds from sale of capital assets 9,280 15,246 57,148 38,015 TOTAL OTHER FINANCING SOURCES (USES) 98,126,711 21,304,338 30,704,676 36,154,059 NET CHANGE IN FUND BALANCES 76,870,797$ (5,655,724)$ (12,844,229)$ 35,562,361$ Debt service as a percentage of noncapital expenditures 13.84% 11.5% 11.8% 11.6% Source: City of Allen Annual Comprehensive Financial Reports Changes in Fund Balances - Governmental Funds (Modified Accrual Basis of Accounting) (Unaudited) Last Ten Fiscal Years City of Allen, Texas 140 Table 4 2020 2019 2018 2017 2016 2015 71,018,733$ 68,884,826$ 63,775,055$ 58,875,936$ 54,104,132$ 50,177,840$ 21,686,335 21,648,401 20,717,504 19,450,088 19,274,983 18,141,683 7,454,713 7,810,093 7,990,092 7,553,013 7,295,931 7,412,447 1,156,398 1,758,858 1,487,066 1,547,244 1,607,263 1,544,160 3,341,367 5,279,425 4,494,361 4,450,639 3,064,580 3,134,551 6,845,248 13,586,474 13,442,785 11,664,328 13,002,770 11,734,344 1,195,296 2,214,571 1,710,354 1,851,735 1,579,628 1,805,230 4,210,605 1,258,398 3,555,241 1,927,567 2,645,089 3,570,737 3,648,787 3,280,340 851,954 643,928 627,760 577,014 821,914 1,585,613 852,322 712,437 832,211 1,012,103 3,896,892 3,106,994 3,276,677 3,428,366 3,711,870 3,420,441 125,276,288 130,413,993 122,153,411 112,105,281 107,746,217 102,530,550 23,770,757 19,902,542 26,141,256 27,182,391 24,101,637 23,996,598 45,372,064 43,283,984 38,524,578 37,294,550 32,966,265 30,731,310 10,342,827 11,194,393 8,899,247 5,428,996 4,865,431 4,888,798 24,910,955 30,044,660 29,714,212 23,745,884 24,287,382 22,540,516 3,254,786 3,161,679 3,076,260 2,951,864 2,833,011 2,880,880 9,458,085 11,921,047 13,114,988 7,053,863 15,408,293 6,555,445 11,094,986 11,382,162 11,181,377 10,445,000 9,135,000 9,322,537 3,414,094 3,407,768 3,461,414 3,378,943 3,801,812 3,931,548 131,618,554 134,298,235 134,113,332 117,481,491 117,398,831 104,847,632 6,342,266) (3,884,242) (11,959,921) (5,376,210) (9,652,614) (2,317,082) 7,388,801 11,412,228 9,682,182 9,805,859 9,137,082 9,711,565 4,554,357) (8,554,069) (6,639,012) (6,295,989) (6,384,490) (4,847,771) 18,830,000 894,793 8,355,000 11,845,000 1,940,000 - 7,730,000 1,660,000 - 6,910,000 32,245,000 4,034,604 9,570,000 978,386 955,225 1,039,610 3,772,133 1,675,000) 75,622 - 1,700,000 - 8,595,000) 33,908 - - (7,789,058) (28,097,931) 37,476 38,631 85,327 43,897 24,148 19,585 24,871,524 13,380,491 12,537,505 16,353,992 6,577,292 12,802,581 18,529,258$ 9,496,249$ 577,584$ 10,977,782$ (3,075,322)$ 10,485,499$ 11.9% 12.1% 12.1% 12.5% 12.7% 13.6% 141 Table 5 Fiscal Year Ended September 30, Real Property Personal Property Less: Tax-Exempt Property Total Taxable Assessed Value Total Direct Tax Rate 2015 9,347,795,862$ 885,946,440$ 1,071,401,599$ 9,162,340,703$ 0.5400 2016 10,892,510,607 949,453,680 1,665,547,504 10,176,416,783 0.5300 2017 12,247,829,044 1,019,719,862 1,799,062,766 11,468,486,140 0.5200 2018 13,546,087,428 1,031,270,509 1,878,212,643 12,699,145,294 0.5100 2019 14,696,634,742 1,158,167,450 1,903,666,393 13,951,135,799 0.4980 2020 15,295,656,455 1,233,701,862 2,005,309,071 14,524,049,246 0.4890 2021 15,713,691,463 1,149,504,775 1,960,955,511 14,902,240,727 0.4850 2022 16,684,318,807 1,139,418,829 2,036,419,680 15,787,317,956 0.4700 2023 20,765,442,449 1,194,141,922 3,725,617,131 18,233,967,240 0.4212 2024 24,170,521,989 1,206,106,723 5,453,793,721 19,922,834,991 0.4205 Source: Collin Central Appraisal District Estimated Market Value Unaudited) Last Ten Fiscal Years Assessed Value And Estimated Actual Value Of Taxable Property City of Allen, Texas 142 Table 6 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 Lovejoy Independent School District Collin County Collin College District 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 2024 0.32315 0.09735 0.42050 1.14120 1.21690 1.12750 1.44290 0.14934 0.08122 Source: Collin Central Appraisal District City Direct Rates Overlapping Rates City of Allen, Texas Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Ten Fiscal Years Unaudited) 143 Table 7 Taxpayer Taxable Assessed Value Percentage of Total City Taxable Assessed Valuea Taxpayer Taxable Assessed Value Percentage of Total City Taxable Assessed Valueb VAA Improvements LLC 169,537,728$ 0.85% AT&T Mobility LLC 146,741,227$ 1.60% Allen Premium Outlets LP 155,356,833 0.78% The Village At Allen LP 144,127,995 1.57% S2 Twin Creek I LP 117,988,311 0.59% Watters Creek Owner LLC 102,933,076 1.12% Charter DW Watters Creek Village 116,786,263 0.59% Cisco Systems Inc 89,245,493 0.97% Cisco Systems Inc 99,630,000 0.50% AT&T Services Inc 79,723,251 0.87% CL Allen TX LLC & ETAL 98,800,000 0.50% Chelsea Allen Development LP 78,000,000 0.85% HS/P Montgomery LLC 90,366,575 0.45% BH Benton Pointe Apartments LLC 39,000,560 0.43% 1175 Montgomery (TX) Owner LP 88,727,000 0.45% Oncor Electric Delivery Company 38,352,995 0.42% Creekside Acquisition LP & 87,696,733 0.44% BH Settler's Gate Apartments LP 37,476,928 0.41% DD Andrews Parkway 10.495 LLC 82,526,071 0.41% Allen Station Apartments LLC 30,578,210 0.33% Sovereign Twin Creeks Phase 1 LLC 78,698,222 0.40% TC Village Inc 30,164,677 0.33% Total 1,186,113,736$ 5.95% Total 816,344,412$ 8.92% Total Assessed Valuation 19,922,834,991$ 100.00% Total Assessed Valuation 9,162,340,703$ 100.00% Source: Collin Central Appraisal District Notes: aTaxpayers are assessed on January 1, 2023 (2023 tax year) for the 2024 fiscal year. bTaxpayers are assessed on January 1, 2014 (2014 tax year) for the 2015 fiscal year. 2024 2015 City of Allen, Texas Principal Property Taxpayers Current Year and Nine Years Ago Unaudited) 144 Table 8 Fiscal Year Ended September 30, Total Tax Levy for Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2015 49,958,933$ 49,472,535$ 99.03 % 475,581$ 49,948,116$ 99.98 % 2016 54,342,759 53,821,573 99.04 % 513,508 54,335,081 99.99 % 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 % 214,033 63,164,746 99.97 % 2019 67,684,728 67,511,154 99.74 % 173,574 67,684,728 100.00 % 2020 70,617,878 70,550,256 99.90 % 67,623 70,617,879 100.00 % 2021 71,909,214 71,715,864 99.73 % 193,351 71,909,215 100.00 % 2022 73,930,484 73,746,318 99.75 % 184,166 73,930,484 100.00 % 2023 76,291,666 76,102,449 99.75 % 72,685 76,175,134 99.85 % 2024 83,005,456 82,693,194 99.62 % - 82,693,194 99.62 % Source: Collin County Tax Assessor Total Collections toDateCollectedwithintheFiscalYearof City of Allen, Texas Ad Valorem Tax Levies and Collections Last Ten Fiscal Years Unaudited) 145 Table 9 Fiscal Year Ended September 30, General Obligation Bonds Certificates of Obligation Tax Notes Leases and Financing Arrangements Water and Sewer Revenue Bonds Leases and Financing Arrangements Total Primary Government Percentage of Personal Incomea Per Capitaa 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 2024 188,974,535 19,550,000 2,179,190 794,372 27,070,723 694,748 239,263,568 3.83% 2,101 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 Ratio of Outstanding Debt by Type Last Ten Fiscal Years Unaudited) 146 Table 10 Fiscal Year Ended September 30, General Obligation Bonds Certificates of Obligation Tax Notes Total Percentage of Actual Taxable Value of Propertya Per Capitab 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 2024 188,974,535 19,550,000 2,179,190 210,703,725 1.06% 1,851 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. City of Allen, Texas Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Unaudited) General Bonded Debt Outstanding 147 Table 11 Debt Outstanding Estimated Percentage Applicable (aa) Estimated Share of Direct and Overlapping Debt Debt repaid with property taxes: Allen I.S.D. 583,281,098$ 84.83% 494,797,355$ Plano I.S.D. 886,020,000 0.84% 7,442,568 McKinney I.S.D. 478,860,000 0.08% 383,088 Lovejoy I.S.D. 127,735,000 8.62% 11,010,757 Collin County 459,865,000 8.52% 39,180,498 Collin College 886,020,000 8.52% 75,488,904 Subtotal, overlapping debt 628,303,170$ City of Allen direct debt outstanding 211,498,097 100.00% 211,498,097 Total Direct and Overlapping Debt 839,801,267$ Source: Notes: 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"). aa) The 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. City of Allen, Texas Direct and Overlapping Governmental Activities Debt as of September 30, 2024 Unaudited) Governmental Unit 148 Table 12 Fiscal Year Ended September 30, Total Revenues a Less: Operating Expensesb Net Available Revenue Annual Requirementc Times Coverage 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 2024 73,554,725 56,282,647 17,272,078 2,615,308 6.60 Notes: bIncludes operating expenses minus depreciation. cIncludes Principal and Interest. Unaudited) Last Ten Fiscal Years Pledged-Revenue Coverage City of Allen, Texas aAs of 2009, Development fees are no longer included as part of the non-operating revenues and therefore are not included in the times coverage calculation. Water and Sewer System Revenue Bonds 149 Table 13 Fiscal Year Ended September 30, Estimated Populationa Personal Income Per Capita Personal Incomeb School Enrollmentc Unemployment Rated 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 21,283 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% 2024 113,855 6,245,288,315 54,853 20,871 4.1% Sources:aEstimated population provided by the City of Allen. cAllen Independent School District. dTexas Workforce Commission. eThe reduction in population from prior years is due to inaccurate estimates used between the 2010 and 2020 decennial censuses. City of Allen, Texas Demographic and Economic Statistics Last Ten Fiscal Years Unaudited) bEstimated Per Capita Income provided by U.S. Census Bureau based on current income trends 150 Table 14 Employer Total Employees Percentage of Total City Employment Employer Total Employees Percentage of Total City Employment Allen Independent School District 2,775 6.57% Allen Independent School District 2,210 7.00% City of Allen 957 2.27% Experian 865 2.74% Experian Information Solutions 817 1.93% Frontier Communications 850 2.69% Credit Union of Texas 579 1.37% City of Allen 775 2.46% Andrew's Distributing 454 1.08% Texas Health Presbyterian Hospital 670 2.12% Jack Henry & Associates 400 0.95% Jack Henry & Associates 600 1.90% Motorola Solutions 391 0.93% CVE Technology Group, Inc 600 1.90% Crawford and Company 365 0.86% PFSweb 450 1.43% Texas Health Presbyterian Hospital 340 0.81% Andrew's Distributing 400 1.27% Netscout 334 0.79% Monkey Sports 203 0.64% Total 7,412 17.55% Total 7,623 24.16% Total Allen Daytime Employees 42,232 Total Allen Daytime Employees 31,557 Source: Top ten employers and employee count provided by Allen Fairview Chamber of Commerce and Allen Economic Development Corporation. City of Allen, Texas Principal Employers Current Year and Nine Years Ago Unaudited) 2024 2015 151 Function/Program 2015 2016 2017 2018 2019 General Government and Administration 67.00 70.50 72.50 75.50 77.00 Public Safety 295.00 299.00 299.00 305.00 316.00 Public Works 55.50 59.00 59.00 60.50 62.50 Culture and Recreational 215.71 221.31 221.31 226.32 228.32 Water and Sewer 69.00 70.00 74.00 76.50 79.00 Golf Course 33.64 33.64 33.64 33.64 33.64 Risk Management 4.00 4.00 4.00 4.00 3.50 Community Development 27.50 28.50 27.50 30.50 32.00 Economic Development 7.00 7.00 7.00 7.00 7.50 Total 774.35 792.95 797.95 818.96 839.46 Source: City of Allen's Annual Official Budgets City of Allen, Texas Full-Time Equivalent City Government Employees by Function & Program Last Ten Fiscal Years Unaudited) Fiscal Year Ended September 30, 152 Table 15 2020 2021 2022 2023 2024 80.48 82.48 84.73 87.23 89.23 319.00 320.00 326.00 337.00 346.00 63.50 63.50 62.50 63.00 64.00 227.82 223.32 223.32 282.80 283.80 80.00 80.00 83.00 85.50 90.50 32.14 32.14 32.14 32.14 32.14 3.50 4.50 4.50 5.00 39.00 32.00 34.00 35.00 37.00 5.00 7.50 7.50 7.50 7.50 7.50 845.94 847.44 858.69 937.17 957.17 Fiscal Year Ended September 30, 153 Function/Program 2015 2016 2017 2018 Public Safety Police Number of Employees 183 185 185 189 Number of Violations (Citations) 14,000 13,645 18,778 17,025 Fire Number of Employees 112 114 114 116 Number of Fire/Other runs 1,622 1,822 1,886 1,896 Number of EMS runs 3,812 4,162 4,210 4,667 Public Works Streetspaved (miles) 1556 Building Permits Issueda 7,549 7,022 7,116 7,126 Cultural and Recreational Parks and Recreation Park maintained & operated per acre 4,083$ 4,092$ 4,668$ 4,675$ Participants in Leisure Service Programs 568,503 638,367 911,064 955,441 Library - Volumes in Collectionb 132,380 138,041 141,774 139,605 Water and Sewer Number of Water Consumers 29,750 30,332 30,920 31,391 Average Daily Water Consumption (gallons)13,284,000 14,472,000 15,107,156 15,926,000 Maximum Storage Capacity (million of gallons)33.0 33.0 33.0 33.0 Sanitation Recyclables Collected (tons) 10,015 10,108 10,578 10,723 Solid Waste Collected (tons) 59,591 62,009 63,712 66,333 Golf Rounds of Golf 39,723 44,478 47,010 44,163 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 Operating Indicators by Function & Program Last Ten Fiscal Years Unaudited) 154 Table 16 2019 2020 2021 2022 2023 2024 199 201 202 204 211 216 21,060 8,774 10,715 11,721 10,596 19,238 117 118 122 122 126 130 1,899 1,912 2,490 2,406 2,236 3,043 4,898 4,725 5,753 6,251 4,725 5,786 2 2 1 26 66 1 9,414 6,440 6,104 5,531 6,705 6,936 3,679$ 3,667$ 3,771$ 3,988$ 4,209$ 4,478$ 1,002,717 528,935 595,869 791,359 844,201 1,284,796 146,699 143,103 142,324 143,495 147,860 139,376 31,922 32,334 33,109 33,385 35,045 35,231 15,454,057 15,710,457 16,143,000 15,296,000 15,075,194 15,100,000 33.0 33.0 33.0 33.0 33.0 33.0 10,073 10,343 9,838 10,340 12,211 9,390 65,242 66,515 66,773 66,288 71,110 69,755 49,293 54,556 66,518 70,597 70,123 66,954 Fiscal Year Ended September 30, 155 Function/Program 2015 2016 2017 2018 2019 Public Safety PoliceStations 11111 PolicePatrolUnits 2728313131 FireStations 55555 PoliceMotorcycleUnits 44444 Public Works Streets-Paved (miles) 331 336 341 347 349 Alleys-Paved (miles) 166 167 168 169 169 Cultural and Recreational Parks (acres)a 599 607 614 689 691 Playgrounds 32 32 32 32 32 SwimmingPools (outdoor) 11111 RecreationCenters 11111 SeniorCenter 11111 TennisCourts 55555 Natatorium 11111 Visitor (Youth) Center 11111 Water and Sewer Water Mains (miles) 474 481 494 506 515 Fire Hydrants 4,398 4,560 4,675 4,982 4,934 Sanitary Sewers (miles) 356 361 370 379 386 Storm Sewer Lines (miles) 110 112 117 123 129 GolfCourse 11111 EventCenter 11111 Source: City Of Allen Departments Notes: aThe methodology for calculating Park Acres was changed to reflect the total acres managed and controlled by the Parks and Recreation Department, whereas previously Parks Acres only reflected fully developed acres in dedicated parks. City of Allen, Texas Capital Asset Statistics by Function & Program Last Ten Fiscal Years Unaudited) Fiscal Year Ended September 30, 156 Table 17 2020 2021 2022 2023 2024 11111 31 44 53 53 56 55556 44444 351 351 377 442 442 169 180 178 178 178 691 691 710 2,249 2,255 32 31 31 31 31 11111 11111 11111 55555 11111 11111 524 501 502 508 511 5,316 5,359 5,409 5,358 5,503 393 370 372 372 374 136 224 226 231 232 11111 11111 Fiscal Year Ended September 30, 157