HomeMy WebLinkAbout2025-09-30 Annual Comprehensive Financial Report (ACFR)ANNUALCOMPREHENSIVEFINANCIALREPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2025
CITY OF ALLEN • 305 CENTURY PARKWAY • ALLEN, TEXAS
CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2025
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
CONTROLLER ALLYSON BAKER
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2025
Table of Contents
i
Introductory Secon Page
Leer of Transmial 3
Cercate of Achievement 10
Organizaonal Chart 11
Principal Officials 12
Financial Secon
Independent Auditor’s Report 15
Management’s Discussion and Analysis 19
Basic Financial Statements
Government-Wide Statements
Statement of Net Posion 33
Statement of Acvies 34
Fund Financial Statements
Balance Sheet – Governmental Funds 36
Reconciliaon of the Balance Sheet of Governmental Funds to the Statement of
Net Posion
39
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds
40
Reconciliaon of Statements of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Acvies
43
Statement of Net Posion – Proprietary Funds 44
Statement of Revenues, Expenses and Changes in Net Posion – Proprietary Funds 45
Statement of Cash Flows – Proprietary Funds 47
Notes to the Financial Statements 51
Required Supplementary Informaon
General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual
89
Schedule of Changes in Net Pension Liability and Related Raos –Rerement Plan
TMRS)
90
Schedule of Contribuons – Rerement Plan (TMRS) 92
Schedule of Changes in Total OPEB Liability and Related Raos – Supplemental
Death Benets Fund
94
Schedule of OPEB Contribuons – Supplemental Death Benets Fund 96
Notes to the Required Supplementary Informaon 99
Combining and Budgetary Comparison Schedules
Major Governmental Funds
Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual
103
Nonmajor Governmental Funds
Combining Balance Sheet 106
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 108
Hotel Occupancy Tax Fund - Schedule of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual
110
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2025
Table of Contents
ii
Asset Forfeiture Fund - Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual
111
Special Revenue Fund - Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual
112
Grants Fund- Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
113
Tax Increment Financing Fund - Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual
114
Nonmajor Enterprise Funds
Combining Statement of Net Posion 116
Combining Statement of Revenues, Expenses and Changes in Net Posion 117
Combining Statement of Cash Flows 118
Internal Service Funds
Combining Statement of Net Posion 120
Combining Statement of Revenues, Expenses and Changes in Net Posion 121
Combining Statement of Cash Flows 122
Discretely Presented Component Units
Balance Sheet 124
Reconciliaon of the Balance Sheet of Governmental Funds to the Statement of
Net Posion
125
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 126
Reconciliaon of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Acvies
127
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
Introductory Section
1
2
CITY OF ALLEN
March 10, 2026
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, Te xas (the City), for the fiscal year ended September 30, 2025 .
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 di sclosures 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, 2025 , 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 ENTllY
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 .
CllY PROFILE
The City of Allen is in Collin County , which is the 3rd fastest-growing county in the nation . Collin County's
population, 1,303 ,157 in 2025 and is expected to reach 2.4 million by 2050. Located 25 miles north of
downtown Dallas on US 75, Allen encompasses appro ximately 27 square mile s. 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
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educated residents with a high level of spending power and disposable income. Allen's population reached
114,647 residents in 2025, 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 978.67 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 2025 was 3 .9%, and the Collin County unemployment rate was
3.6% --both of which were below the national rate of 4.4%. 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 $137,627 in 2025, and over 57 .5% 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 114,647 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 achie v e higher levels of success . This
unique combination has received national recognition, including best city to move to in Texas by Consumer
Affairs, and Wallet Hub ranking Allen as the one of the best real estate markets in America. (2022, 2024,
2025).
305 CENTURY PARKWAY• ALLEN, TEXAS 75013-8042 • 214 .509.4100
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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 ta x rate . The rating s 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 liab ility 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 approv ed by the voters. The four proposition s that pa ss ed are
for public improvements . Of this amount authorized by the voters, the City issued $104 Million for street
improvements, a park and a new Police Headquarters.
Fiscal Year 2025 Highlights
During fiscal year 2025 , the City accomplished many initiati ves to enhance li vability, 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 ex perience 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 mi xed-use development showed the
greatest re venue across all de velopment types, due largely to the de velopment acti v ity in the Watters
Creek District and The Farm, a mi xed-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 Homesnac ks
list of Safest Cities in America for 2024, Allen ran ks 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 per 1,000 inhabitants, which is well below the national average for all communities
of all population sizes. Allen is frequently cited as having the lowest property crime rate among Te xas' 50
largest cities.
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
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and expanding professional deve lopment 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 2025. In Water and Sewer
Operations, the City completed fielding its Advanced Meter Infrastructure (AMI) system to 35,000
customers. This system provides the capability for data-driven water use analysis and the proacti ve
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.
En v ironmentally focused public activities continued to be a priority for the community and residents of the
City. Environmental education opportunities were prov ided to homeschoolers, our local public and pri vate
schools, scouts, and yo uth camps. 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 KA B 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 Te xas Beautiful as a Gold Star Affiliate and Sustained Excelle nce 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 Te xas
cities with a population li ke 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 yea rs and was
recognized by the Te xas Municipal Library Directors Association for the eleventh consecutive year for
Achievement of Library Excellence.
In 2025, 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
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year of operations, the center exceeded expectations by surpassing both membership and revenue goals,
reflecting the community's enthusiasm for this sta te -of-t he -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 v ital component, with residents contributing ideas
through public events and surveys. Another significant accomplishment was the June 2024 opening of The
Bark Yard, a highly an ticipated 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 compan ies 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 Te xas 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 t o professional sports;
the Allen American Hockey Club (ECHL), and the Dallas Side kicks Soccer Club (MASL).
Relevant Financial Policies
The City's financial policies and practices se t 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 Te xas 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. Al l
other policies (accounting, budgeting, procurement, capital improvements, asset management, and risk
management) are interna l 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
Counc il.
Budget Controls
By August 10 of each year the City Manager sha ll 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 yea r , adopt by favorable majority.
There are extended technical provisions that could require a super majority vote for the passage of the
budget. Annual budgets are legall y adopted for the General Fund, Debt Service Fund, Hotel Occupancy Tax
Fund , Asset Forfeiture Fund , Specia l Revenue Fund, Grants Fu nd, and Tax Increment Financing Fund on a
basis co nsistent 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 contro l purposes.
305 CENTURY PARKWAY• ALLEN , TEXAS 75013-8042 • 214 .509.4100
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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
likel y to be derived; and (2) the va luation 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, 2024. Fiscal year 2024 was the
twenty-seventh consecutive year for which the City has achieved this prestigious award. To be awarded a
Certificate of Achievement for Exce llence 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 Exce llence in Financial Reporting is va lid 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, 2025. This is the twenty-sixth 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 the ir 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,
L -:c=s
Eric Ellwan%er
City Manager
305 CENTURY PARKWAY• ALLEN, TEXAS 75013-8042 • 214.509.4100
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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, 2024
Executive Director/CEO
10
CITY OF ALLEN, TEXAS
ORGANIZATIONAL CHART
11
Cizens of Allen
City Council Boards and
Commissions
City Aorney City Manager Municipal Judge
Finance
Fire
Police
Assistant City
Manager
Community
Development Corp
Human Resources
Parks and
Recreaon
Deputy City
Manager
City Secretary
Community
Development
Community
Enhancement
Community
Services
Engineering
Assistant City
Manager
Convenon &
Visitors Bureau
Informaon
Technology
Library
Public and Media
Relaons
12
CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2025
LIST OF PRINCIPAL OFFICIALS
CITY COUNCIL (ELECTED)
Mayor Baine Brooks
Mayor Pro Tem, Place No. 6 Ben Trahan
Councilmember, Place No. 1 Michael Schaeffer
Councilmember, Place No. 2 Tommy Baril
Councilmember, Place No. 3 Ken Cook
Councilmember, Place No. 4 Amy Gnadt
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
Chief Financial Officer Pete Phillis
Chief Informaon Officer Eric Mahews
Municipal Court Judge (appointed) Michelle Montemayor
Fire Chief Jon Boyd
Police Chief Steve Dye
Director of Economic Development Corporaon Dan Bowman
Director of Community Development Corporaon Jason Cooley
Director of Community Services Steve Massey
Director of Engineering Chris Flanigan
Director of Community Development *vacant*
Director of Community Enhancement Lee Bale
Director of Human Resources Cheree Bontrager
Director of Parks and Recreaon Kate Meacham
Director of Public and Media Relaons Chelsey Aprill
Director of the Convenon & Visitors Bureau Brandy O’Keefe
Director of the Library Jeff Timbs
Financial Section
13
14
2300 North Field Street, Suite 1000
Dallas, Texas 75201
972-490-1970
Weaver and Tidwell, L.L.P.
15 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 (the City) as of and for the year ended September 30, 2025, 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, 2025, and
the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1D to the basic financial statements, during the year ended September 30, 2025, the City
implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences.
Beginning net position has been restated as a result of the implementation of this statement. Our opinions are not
modified with respect to this matter.
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
16
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control–related matters that we
identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis and the Required Supplementary Information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information is the responsibility of management and, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
The Honorable Mayor and Members of the City Council
City of Allen, Texas
17
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 March 2, 2026, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P
Dallas, Texas
March 2, 2026
18
19
Management’s Discussion and Analysis
As management of the City of Allen, Texas (the “City”), we offer 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, 2025.
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, 2025, by $785,972,869. Of this amount, $173,138,731 (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 $71,402,809. Out of this, $65,975,047 is from governmental
acvies and $5,427,762 is from business-type acvies. The City also restated beginning net posion,
reducing it by a total of ($2,714,747) due to the implementaon of GASB Statement 101, Compensated
Absences. This standard increased the liability for compensated absences because the liability now includes
accrued compensated absences that will be used as me off in addion to the previously included liability
for amounts that could be paid in cash to employees upon separaon.
On a government-wide basis, the City’s total assets increased by $79,962,248 or 8% and total liabilies
increased by $2,860,622 or 1%.
As of September 30, 2025, the City’s governmental funds reported combined ending fund balances of
199,641,884, a decrease of $2,304,876 or 1% in comparison to the previous year. As of September 30,
2025, $37,952,039 or 19% 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 difference 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
20
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 33 through 35, the City is divided into three kinds
of acvies:
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
differences 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 43 of this report.
Proprietary Funds. The City maintains two different types of proprietary funds: enterprise funds and internal
service funds. Enterprise funds are used to report the same 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
21
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
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, event center 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 44 through 47 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 51 through 84 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 89 through 99 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.
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 $785,972,869 at September 30, 2025.
By far the largest poron of the City’s net posion, $584,414,009 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, $28,420,129 or 4%, represents resources that are subject
to external restricons on how those resources can be used. The remaining balance of $173,138,731 (22%)
is available to be used to meet the government’s ongoing obligaons to cizens and creditors.
22
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:
As of September 30, 2025, the City had an overall increase in net posion of $71,402,809 for the primary
government, which represents an increase of $65,975,047 for governmental acvies and an increase of
5,427,762 for business-type acvies. Beginning net posion was restated by ($2,936,431) for
governmental acvies and $221,684 for business-type acvies as a result of a change in accounng
principle for the implementaon of GASB 101, Compensated Absences. Details are in Table 2 as listed below.
2025 2024 2025 2024 2025 2024
Current and other assets 257,078,715$ 252,210,622$ 103,598,501$ 99,098,303$ 360,677,216$ 351,308,925$
Capital assets 574,063,042 506,322,303 157,267,922 154,414,704 731,330,964 660,737,007
Total assets 831,141,757 758,532,925 260,866,423 253,513,007 1,092,008,180 1,012,045,932
Deferred outflows of resources 16,510,238 20,441,056 2,537,102 3,035,514 19,047,340 23,476,570
Long-term liabilities 259,978,968 260,251,908 32,703,970 34,891,921 292,682,938 295,143,829
Other liabilities 18,190,149 15,824,078 8,625,316 5,669,874 26,815,465 21,493,952
Total liabilities 278,169,117 276,075,986 41,329,286 40,561,795 319,498,403 316,637,781
Deferred inflows of resources 4,939,313 1,393,046 644,935 206,868 5,584,248 1,599,914
Net position:
Net investment in capital assets 456,007,649 404,047,053 128,406,360 125,811,570 584,414,009 529,858,623
Restricted 25,918,296 26,737,949 2,501,833 2,336,548 28,420,129 29,074,497
Unrestricted 82,617,620 70,719,947 90,521,111 87,631,740 173,138,731 158,351,687
Total net position 564,543,565$ 501,504,949$ 221,429,304$ 215,779,858$ 785,972,869$ 717,284,807$
Governmental Activities Business-type Activities Total
Table 1
Statement of Net Position
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services 24,994,617$ 17,899,679$ 98,447,160$ 101,385,132$ 123,441,777$ 119,284,811$
Operating grants and contributions 9,956,238 10,617,394 717,436 - 10,673,674 10,617,394
Capital grants and contributions 50,629,518 15,764,984 5,809,167 7,014,220 56,438,685 22,779,204
General revenues - -
Property taxes 89,170,582 83,821,874 - - 89,170,582 83,821,874
Sales taxes 32,389,161 31,547,688 - - 32,389,161 31,547,688
Franchise taxes 8,134,411 7,735,536 - - 8,134,411 7,735,536
Hotel motel taxes 2,696,118 2,481,874 - - 2,696,118 2,481,874
Investment earnings (loss) 12,197,343 11,035,616 2,302,787 2,853,701 14,500,130 13,889,317
Miscellaneous 481,107 162,288 2,172,660 2,600,635 2,653,767 2,762,923
Total revenues 230,649,095 181,066,933 109,449,210 113,853,688 340,098,305 294,920,621
Expenses
General government 35,270,238 36,583,521 - - 35,270,238 36,583,521
Public safety 73,885,692 67,135,182 - - 73,885,692 67,135,182
Public works 28,256,296 29,858,727 - - 28,256,296 29,858,727
Culture and recreation 33,752,858 31,337,978 - - 33,752,858 31,337,978
Community development 6,672,806 6,470,480 - - 6,672,806 6,470,480
Interest on long-term debt 6,966,930 4,022,874 - - 6,966,930 4,022,874
Water and sewer - - 58,329,250 57,160,608 58,329,250 57,160,608
Solid waste services - - 8,003,251 7,725,311 8,003,251 7,725,311
Drainage - - 1,964,894 1,808,497 1,964,894 1,808,497
Golf course - - 4,351,713 4,579,932 4,351,713 4,579,932
Allen event center - - 11,241,568 10,127,154 11,241,568 10,127,154
Total expenses 184,804,820 175,408,762 83,890,676 81,401,502 268,695,496 256,810,264
Change in net position before transfers 45,844,275 5,658,171 25,558,534 32,452,186 71,402,809 38,110,357
Transfers 20,130,772 7,677,314 (20,130,772) (7,677,314) - -
Change in net position 65,975,047 13,335,485 5,427,762 24,774,872 71,402,809 38,110,357
Net position, beginning of year 501,504,949 488,169,464 215,779,858 191,004,986 717,284,807 679,174,450
Change in accounting principle - GASB 101 (2,936,431) - 221,684 - (2,714,747) -
Net position, beginning of year - restated 498,568,518 488,169,464 216,001,542 191,004,986 714,570,060 679,174,450
Net position, end of year 564,543,565$ 501,504,949$ 221,429,304$ 215,779,858$ 785,972,869$ 717,284,807$
Table 2
Changes in Net Position
Governmental Activities Business-type Activities Total
23
Governmental Acvies
Revenues – The following chart visually illustrates the City’s revenue by sources for governmental acvies:
Revenues for the City’s governmental acvies totaled $230,649,095, an increase of $49,582,162 (27%)
from prior year. Major components of revenue increases and decreases are explained as follows:
Property taxes increased by $5,348,708 (6%), due to an increase in assessed value and new
property addions. This is in line with the esmate published in the adopted budget for the year.
Sales taxes increased by $841,473 (3%), as a result of expected economic condions, as the City of
Allen is largely dependent upon retail sales.
Franchise taxes increased by $398,875 (5%), due to new growth in the City.
Hotel motel taxes increased by $214,244 (9%), as a result of increased tourism.
Charges for services increased by $7,094,938 (40%) primarily due to increased use of the Steven G.
Terrell Recreaon Center. The City has also seen a signicant increase in nes revenues during the
scal year.
Operang grants and contribuons decreased by $661,156 (6%), with major factors including the
compleon of a large project in FY24 that was parally funded by the county and the conclusion of
ARPA funding by December 2025. These were large sources of operang grants in FY24 that either
didn’t happen in FY25 or concluded early in the year.
Capital grants and contribuons increased by $34,864,534 (221%) due in large part to the large
piece of land purchased by the EDC for an economic development agreement that was transferred
to the City during the scal year to facilitate the lease of the land to the lessor.
Investment earnings increased by $1,161,727 (11%) over prior year, as a result of higher interest
rates and an increase in fair market values of investments during scal 2024.
Miscellaneous revenues increased by $318,819 (196%) from prior year, with the largest source
being a rebate from the City’s purchasing card administrator.
24
Expenses for governmental acvies totaled $184,804,820, an increase of $9,396,058 (5%) from scal
year 2024. Components of increases and decreases are explained as follows:
Expenses for General Government decreased by $1,313,283 (4%), due primarily to the City’s
strategic goal of contribung more reserve funding to its Facility Maintenance internal service fund
in the prior year.
Expenses for Public Safety increased by $6,750,510 (10%), due primarily to the scheduled salaries
market adjustment for both Fire and Police departments and increases in health insurance costs.
Expenses for Public Works decreased by $1,602,431 (5%), because the City is winding down on its
bond program dedicated to streets projects.
Expenses for Culture and Recreaon increased by $2,414,880 (8%), due to increased community
membership to the Stephen G Terrell Recreaon Center.
Expenses for Community Development increased $202,326 (3%) due mostly to an increase in
neighborhood reinvestment projects.
Expenses for interest on long-term debt increased by $2,944,056 (73%), due to the rst year of
interest being due on the Series 2024 bond issuance. With the total bond being $84.4 million, the
rst interest payment was $3.8 million.
Business-type Acvies
Revenues from business-type acvies totaled $109,449,210, a decrease of $4,404,478, or 4%. Major
components of the net decrease are as follows:
Charges for services for business-type acvies decreased by $2,937,972 (3%), due to the business-
type acvies no longer recognizing a poron of internal service acvies.
Capital grants and contribuons decreased by $1,205,053 (17%) from scal 2024 due to a large
amount of capital contribuons in the prior scal year.
Miscellaneous revenues decreased by $427,975 (16%) due to prior year revenue from interlocal
agreements.
The following chart visually illustrates the City’s revenue by sources for business-type acvies:
25
Expenses for business-type acvies increased by $2,489,174, or 3%. 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:
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
199,641,884, a decrease of $2,304,876 (1%) in comparison with the prior scal year. Approximately 19%,
or $37,952,039, 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 $63,381 for both
prepaid items and inventories. The restricted poron includes: $3,883,953 restricted for debt service,
102,486,553 restricted for capital expenditures, $2,860,442 restricted for tourism, $13,876,715 restricted
for tax increment nancing agreements, and $6,271,845 restricted for other purposes detailed in the basic
nancial statements and notes to the nancial statements. In addion, $31,396,748 was assigned to capital
expenditures and $850,208 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 $37,952,039, while the total fund balance was $38,335,156. 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 27% 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 $3,966,477 or 12% 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. Favorable investment acvity in local government investment
26
pools contributed to investment earning $1.7 million over budgeted amounts. The General fund had
expenditures in excess of appropriaons in the public safety funcon due to higher than expected personnel
costs.
Debt Service Fund. The Debt Service Fund balance of $3,883,953, all of which is restricted for the payment
of debt, represents a decrease from the prior year of $504,842 (12%). The decrease was primarily related
to the paying down of debt and an increase in interest costs in the current year.
Capital Projects Fund. The General Capital Projects Fund provides informaon on cash nanced capital
projects and had an ending fund balance of $32,246,956 at September 30, 2025, an increase of $3,826,597
13%). The increase was caused by transfers from other funds in order to fund future capital projects.
General Obligaon Bond Fund. The General Obligaon Bond Fund had an ending fund balance of
102,486,553, which represents a decrease of $10,144,321 (9%) from the prior year. The decrease was due
to a large amount of capital expenditures in the current year. The fund had expenditures of $29,406,389 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, 2025, the unrestricted net posion for all enterprise
funds were $90,521,111, an increase of $2,889,371 (3%) from prior year.
Water and Sewer Fund. The Water and Sewer Fund had an ending net posion of $212,632,840, which
represents an increase in net posion of $14,646,587 (7%). This change was as a result of an increase in
water and sewer rates.
Allen Event Center Fund. The Allen Event Center Fund had an ending decit net posion of ($1,268,617),
which represents a decrease of $765,315 (152%). The main reason for this change was an increase in facility
maintenance costs during the scal year. The fund also had a negave adjustment to beginning net posion
due to the implementaon of GASB 101 related to compensated absences.
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, 2025,
the City Council amended the budget for the General Fund one me.
Adjustments made during scal year 2025 increased the original revenue budget by $3,796,265 and
increased the expenditure budget by $4,133,199. Due to actual revenues over the revised budget by
2,543,128, and expenditures being less than the revised budget by $2,771,019, the City was able to
increase the unassigned General Fund balance by $3,966,477, aer net transfers and other nancing
sources and uses. The unassigned fund balance of $37,952,039 is equal to 25%, or 92 days of next year’s
operang budget.
27
CAPITAL ASSETS
The City’s investment in capital assets for its governmental and business-type acvies as of September 30,
2025, was $731,330,964 (net of accumulated depreciaon). Investment in capital assets includes land and
improvements, buildings, vehicles, machinery and equipment, park land and facilies, and roads and
bridges. About 78% of the capital assets are governmental and 22% represent business-type acvies.
There was an increase of 11% in the investment in capital assets for the current scal year.
The major governmental-type capital improvement projects and developer contribuons during the current
scal year included the following:
Library Expansion – Phase II $13,289,857
Police Department Headquarters 13,762,236
Chelsea Blvd NB Extension 2,602,361
Land purchase transferred from EDC to City 43,017,580
Developer contribuons and right-of-way 7,611,938
Completed CIP Projects (not equal to current year expenditures)
Stephen G. Terrell Recreaon Center $45,473,463
Fire Staon #6 13,252,430
Allen Media Producons Center 1,884,614
Business-type capital improvement projects and developer contribuons during the current scal year
include the following:
Developer Contributed Water Mains and Sewer Lines $ 3,037,136
Heritage/Allen Heights Sewer System Main Replacement 3,374,682
Timbercreek & Allenwood Watermain Replacement 3,655,321
Advanced Meter Infrastructure 603,247
Addional informaon on the City’s capital assets can be found in Note 3-C of this report.
2025 2024 2025 2024 2025 2024
Land 222,476,684$ 176,321,479$ 4,091,626$ 4,091,626$ 226,568,310$ 180,413,105$
Construction in progress 51,394,131 79,372,216 26,919,046 18,605,322 78,313,177 97,977,538
Buildings 120,711,790 66,400,594 - - 120,711,790 66,400,594
Towers, tanks, and pump stations - - 81,007,134 82,673,061 81,007,134 82,673,061
Intangibles - - 7,194,892 7,461,370 7,194,892 7,461,370
Other improvements 159,038,788 169,289,376 35,273,946 36,637,498 194,312,734 205,926,874
Furniture and fixtures 300,875 81,371 - - 300,875 81,371
Vehicles 12,705,390 8,936,269 624,678 2,312,889 13,330,068 11,249,158
Machinery and equipment 7,435,384 5,920,998 2,156,600 2,632,938 9,591,984 8,553,936
Total 574,063,042$ 506,322,303$ 157,267,922$ 154,414,704$ 731,330,964$ 660,737,007$
Table 3
Capital Assets at Year-end, Net of Accumulated Depreciation/Amortization
Governmental Activities Business-type Activities Total
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DEBT ADMINISTRATION
As shown in Table 4, the City’s total outstanding long-term liabilies of the primary government at
September 30, 2025, was $292,682,938. This includes gross bonded debt of $235,801,232 and other long-
term debt of $56,881,706. 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
20,855,792. Out of which, $20,710,000 are secured by future sales tax revenue; and $145,792 are
premiums and discounts from bond issuances.
During scal year 2025, the City issued General Obligaon Improvement and Refunding Bonds in the
amount of $17,295,000.
The revenue bond debt for both component units relates to debt issued to support public infrastructure
improvements, land acquision, and construcon of the Allen Event Center. Total debt of the Component
Units decreased by 15%.
The underlying credit rangs from both Moody’s Investors Service and Standard and Poor’s for the City’s
and Component Unit Bond types are shown below in Table 5. Addional informaon on the City’s long-term
debt can be found in Note 5 to the basic nancial statements.
Table 5
Bond Rangs
Moody’s Investors Service Standard & Poor’s
General Obligaon Bonds Aaa AAA
Cercates of Obligaon Aaa AAA
Water & Sewer Revenue Bonds n/a AAA
CDC Sales Tax Revenue Bonds Aaa
EDC Sales Tax Revenue Bonds Aaa
2025 2024 2025 2024 2025 2024 2025 2024
Gross bonded debt
General obligation bonds 172,240,000$ 169,025,000$ -$ -$ 172,240,000$ 169,025,000$ -$ -$
Certificates of obligation 18,300,000 19,550,000 - - 18,300,000 19,550,000 - -
Revenue bonds payable - - 22,760,000 24,180,000 22,760,000 24,180,000 - -
Premiums and discounts 19,226,225 20,988,725 2,695,007 2,890,723 21,921,232 23,879,448 145,792 218,687
Sales tax revenue bonds - - - - - - 20,710,000 24,225,000
Tax notes 580,000 1,140,000 - - 580,000 1,140,000 - -
Total gross bonded debt 210,346,225 210,703,725 25,455,007 27,070,723 235,801,232 237,774,448 20,855,792 24,443,687
Other long-term debt
Compensated absences 13,599,808 9,428,600 1,184,456 1,286,610 14,784,264 10,715,210 - -
Net pension liability 33,281,442 37,675,672 5,114,315 5,594,881 38,395,757 43,270,553 - -
Total OPEB liability 1,652,935 1,649,539 254,004 244,959 1,906,939 1,894,498 - -
Leases 1,098,558 794,372 680,525 662,774 1,779,083 1,457,146 - -
Financing arrangements - - 15,663 31,974 15,663 31,974 - -
Total other long-term debt 49,632,743 49,548,183 7,248,963 7,821,198 56,881,706 57,369,381 - -
Total 259,978,968$ 260,251,908$ 32,703,970$ 34,891,921$ 292,682,938$ 295,143,829$ 20,855,792$ 24,443,687$
Component Units
Bonds and Other Long-Term Liabilities
Outstanding Debt at Year-end
Table 4
Governmental Activities Business-type Activities Total Primary Government
29
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 officials considered many factors when seng the scal year 2026 budget, tax
rates and fees that will be charged for the business-type acvies. The priority for scal year 2026 connues
to be maintaining quality service while observing prudent spending pracces. Highlights of the 2026 budget
include:
Balanced budget, with total revenues equal to total expenditures
Property tax rate reduced to $0.4154 per $100 assessed value
Total City budget $348.8 million
General Fund budget $149.9 million
Sustained funding for equipment and facilies improvements
Addional 16.96 full-me equivalent (FTE) posions
REQUEST FOR INFORMATION
The nancial report is designed to provide our cizens, customers, investors, and creditors with a general
overview of the City’s nances. If you have quesons about this report or need any addional informaon,
please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626.
30
Basic Financial Statements
31
32
Allen Economic Allen Community
Governmental Business-Type Development Development
Activities Activities Total Corporation Corporation
ASSETS
Cash and cash equivalents 204,087,707$ 49,357,718$ 253,445,425$ 10,681,757$ 8,206,353$
Investments 41,597,293 25,722,143 67,319,436 4,240,266 2,398,545
Receivables (net of allowance for uncollectibles) 10,683,440 20,313,072 30,996,512 2,787,584 2,765,825
Intergovernmental receivable 480,604 661,073 1,141,677 - -
Prepaid items 175,539 19,769 195,308 5,000 65,000
Inventories 54,132 150,483 204,615 - -
Restricted cash and cash equivalents - 7,374,243 7,374,243 - -
Land held for sale - - - 40,160,439 -
Capital assets:
Non-depreciable assets 273,870,815 31,010,672 304,881,487 - 11,347,793
Depreciable assets (net of accumulated
depreciation/amortization) 300,192,227 126,257,250 426,449,477 677,761 43,081,649
TOTAL ASSETS 831,141,757 260,866,423 1,092,008,180 58,552,807 67,865,165
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 16,280,135 2,501,744 18,781,879 - -
Deferred outflows of resources - OPEB 230,103 35,358 265,461 - -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 16,510,238 2,537,102 19,047,340 - -
LIABILITIES
Accounts payable 9,268,569 3,228,917 12,497,486 350,247 604,748
Accrued liabilities 5,720,739 734,572 6,455,311 41,804 8,169
Accrued interest payable 1,020,682 295,210 1,315,892 15,142 34,543
Customer deposits 50 1,089,957 1,090,007 - -
Unearned revenue 718,895 2,183,501 2,902,396 - -
Retainage payable 1,461,214 1,093,159 2,554,373 - 213,621
Non-current liabilities:
Due within one year:
Bonds, tax notes, leases, financing
compensated absences 17,648,642 1,745,976 19,394,618 1,645,000 1,980,000
Total OPEB liability 34,880 5,358 40,238 - -
Due in more than one year:
Bonds, tax notes, leases, financing
compensated absences 207,395,949 25,589,675 232,985,624 4,170,792 13,060,000
Net pension liability 33,281,442 5,114,315 38,395,757 - -
Total OPEB liability 1,618,055 248,646 1,866,701 - -
TOTAL LIABILITIES 278,169,117 41,329,286 319,498,403 6,222,985 15,901,081
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 3,587,549 552,292 4,139,841 - -
Deferred inflows of resources - OPEB 602,876 92,643 695,519 - -
Deferred gain on refunding 748,888 - 748,888 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 4,939,313 644,935 5,584,248 - -
NET POSITION
Net investment in capital assets 456,007,649 128,406,360 584,414,009 677,761 38,838,171
Restricted for:
Debt service 2,909,294 2,501,833 5,411,127 2,262,462 2,376,975
Tourism 2,860,442 - 2,860,442 - -
State and federal grants 483,907 - 483,907 - -
Park acquisition and development 2,232,051 - 2,232,051 - -
Tax increment financing 13,876,715 - 13,876,715 - -
Other purposes 3,555,887 - 3,555,887 - -
Unrestricted 82,617,620 90,521,111 173,138,731 49,389,599 10,748,938
TOTAL NET POSITION 564,543,565$ 221,429,304$ 785,972,869$ 52,329,822$ 51,964,084$
Primary Government
As of September 30, 2025
Statement of Net Position
City of Allen, Texas
The notes to the financial statements are an integral part of this statement.
33
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs:
PRIMARY GOVERNMENT:
Governmental activities:
General government 35,270,238$ 6,178,834$ 2,815,877$ -$
Public safety 73,885,692 3,189,697 3,747,637 -
Public works 28,256,296 3,470,821 2,190,384 4,474,313
Culture and recreation 33,752,858 8,568,812 234,977 -
Community development 6,672,806 3,586,453 967,363 46,155,205
Interest 6,966,930 - - -
Total governmental activities 184,804,820 24,994,617 9,956,238 50,629,518
Business-type activities:
Water and sewer 58,329,250 74,095,681 - 5,809,167
Solid waste 8,003,251 8,980,407 - -
Drainage 1,964,894 2,387,112 - -
Golf course 4,351,713 5,407,762 - -
Allen event center 11,241,568 7,576,198 717,436 -
Total business-type activities 83,890,676 98,447,160 717,436 5,809,167
TOTAL PRIMARY GOVERNMENT 268,695,496$ 123,441,777$ 10,673,674$ 56,438,685$
COMPONENT UNITS
Allen Economic Development Corporation 52,038,838$ -$ -$ 23,799,265$
Allen Community Development Corporation 32,069,035 - - -
TOTAL COMPONENT UNITS 84,107,873$ -$ -$ 23,799,265$
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 - 9/30/2024
RESTATEMENT - change in accounting principle (GASB 101)
NET POSITION - 9/30/2024 as restated
NET POSITION - 9/30/2025
City of Allen, Texas
Program Revenues
For the Year Ended September 30, 2025
Statement of Activities
The notes to the financial statements are an integral part of this statement.
34
Allen Economic Allen Community
Governmental Business-type Development Development
Activities Activities Total Corporation Corporation
26,275,527)$ -$ (26,275,527)$ -$ -$
66,948,358) - (66,948,358) - -
18,120,778) - (18,120,778) - -
24,949,069) - (24,949,069) - -
44,036,215 - 44,036,215 - -
6,966,930) - (6,966,930) - -
99,224,447) - (99,224,447) - -
21,575,598 21,575,598 - -
977,156 977,156 - -
422,218 422,218 - -
1,056,049 1,056,049 - -
2,947,934) (2,947,934) - -
21,083,087 21,083,087 - -
99,224,447)$ 21,083,087$ (78,141,360)$ -$ -$
28,239,573)$ -$
32,069,035)
28,239,573)$ (32,069,035)$
89,170,582 - 89,170,582 - -
32,389,161 - 32,389,161 15,936,483 15,936,483
8,134,411 - 8,134,411 - -
2,696,118 - 2,696,118 - -
12,197,343 2,302,787 14,500,130 704,702 770,272
208,205 93,967 302,172 8,284,884 -
272,902 2,078,693 2,351,595 662,073 -
20,130,772 (20,130,772) - - -
165,199,494 (15,655,325) 149,544,169 25,588,142 16,706,755
65,975,047 5,427,762 71,402,809 (2,651,431) (15,362,280)
501,504,949 215,779,858 717,284,807 54,981,253 67,326,364
2,936,431) 221,684 (2,714,747) - -
498,568,518 216,001,542 714,570,060 54,981,253 67,326,364
564,543,565$ 221,429,304$ 785,972,869$ 52,329,822$ 51,964,084$
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.
35
General
Capital
General Debt Service Projects
ASSETS
Cash and cash equivalents 17,344,230$ 3,883,953$ 24,734,519$
Investments 20,927,607 - 8,938,867
Receivables, net of allowances for uncollectibles
Ad valorem taxes 152,131 46,023 -
Sales taxes 5,579,535 - -
Franchise and right-of-way fees 1,841,488 - -
Municipal court 889,010 - -
Accounts receivable 1,137,791 - -
Accrued interest 133,520 - 57,031
Due from other governments 245,393 - -
Inventories 54,132 - -
Prepaid items 9,249 - -
TOTAL ASSETS 48,314,086$ 3,929,976$ 33,730,417$
LIABILITIES
Accounts payable 2,636,497 - 1,273,292
Accrued liabilities 5,378,240 - 183,430
Retainage payable - - 26,739
Deposits payable 50 - -
Unearned revenue 509,434 - -
TOTAL LIABILITIES 8,524,221 - 1,483,461
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - ad valorem taxes 152,131 46,023 -
Unavailable Revenue - ambulance 386,852 - -
Unavailable Revenue - police alarms 26,716 - -
Unavailable Revenue - municipal court 889,010 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 1,454,709 46,023 -
FUND BALANCES
Nonspendable
Prepaid items 9,249 - -
Inventories 54,132 - -
Restricted
Debt service - 3,883,953 -
Capital expenditures - - -
Tourism - - -
State and federal grants 245,393 - -
Park acquisition and development - - -
Tax increment financing agreement - - -
Other purposes 74,343 - -
Assigned
Capital expenditures - - 31,396,748
Neighborhood reinvestment - - 850,208
Unassigned 37,952,039 - -
TOTAL FUND BALANCES 38,335,156 3,883,953 32,246,956
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 48,314,086$ 3,929,976$ 33,730,417$
September 30, 2025
Balance Sheet - Governmental Funds
City of Allen, Texas
The notes to the financial statements are an integral part of this statement.
36
General Other Total
Obligation Governmental Governmental
Bond Funds Funds
106,485,732$ 19,305,795$ 171,754,229$
551,074 3,463,738 33,881,286
198,154
5,579,535
18,063 1,859,551
889,010
204,589 1,342,380
3,516 22,099 216,166
235,211 480,604
54,132
9,249
107,040,322$ 23,249,495$ 216,264,296$
3,157,926 212,629 7,280,344
138,139 5,699,809
1,395,843 - 1,422,582
50
209,461 718,895
4,553,769 560,229 15,121,680
198,154
386,852
26,716
889,010
1,500,732
9,249
54,132
3,883,953
102,486,553 - 102,486,553
2,860,442 2,860,442
238,514 483,907
2,232,051 2,232,051
13,876,715 13,876,715
3,481,544 3,555,887
31,396,748
850,208
37,952,039
102,486,553 22,689,266 199,641,884
107,040,322$ 23,249,495$ 216,264,296$
The notes to the financial statements are an integral part of this statement.
37
38
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 199,641,884$
1,019,782,245
461,638,293)
Deferred outflows of resources - pension 16,280,135
Deferred inflows of resources - pension (3,587,549)
Deferred outflows of resources - OPEB 230,103
Deferred inflows of resources - OPEB (602,876)
54,685,722
General obligation bonds payable (172,240,000)
Certificates of obligation payable (18,300,000)
Tax notes payable (580,000)
Leases payable (1,098,558)
Accrued interest payable on long-term debt (1,020,682)
Compensated absences (13,599,808)
Net pension liability (33,281,442)
Total OPEB liability (1,652,935)
Deferred amount on refundings (748,888)
Premiums on general obligation bonds (19,226,225)
1,500,732
Net position of governmental activities 564,543,565$
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.
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, 2025
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.
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. This is not including
capital assets held by internal service funds.
The notes to the financial statements are an integral part of this statement.
39
General
Capital
General Debt Service Projects
REVENUES
Taxes
Ad valorem taxes 66,300,467$ 20,037,062$ -$
Sales taxes 32,165,443 - -
Franchise and right-of-way fees 8,063,990 - -
Hotel occupancy taxes - - -
Licenses, permits and fees 3,959,078 - -
Charges for services 11,017,245 - 2,852,236
Fines and forfeitures 3,004,773 - -
Intergovernmental 2,960,553 - 2,394,446
Investment earnings 5,390,125 534,186 982,485
Gifts and contributions 2,716,437 - 110,960
Miscellaneous 190,270 -85,000
TOTAL REVENUES 135,768,381 20,571,248 6,425,127
EXPENDITURES
Current
General government 28,595,817 - 611,027
Public safety 67,907,556 - 368,925
Public works 8,535,712 - 1,392,838
Culture and recreation 27,322,867 - -
Community development 4,582,943 - 1,324,192
Capital outlay 1,825,826 - 4,316,068
Debt Service
Principal retirement 618,584 12,750,000 -
Interest and fiscal charges 31,421 8,314,839 -
Issuance costs -43,042 -
TOTAL EXPENDITURES 139,420,726 21,107,881 8,013,050
Excess (deficiency) of revenues
over (under) expenditures (3,652,345) (536,633) (1,587,923)
OTHER FINANCING SOURCES (USES)
Transfers in 12,061,851 - 5,703,989
Transfers out (5,820,718) - (289,469)
Issuance of general obligation bonds - - -
Issuance of refunding bonds - 3,055,000 -
Premium on bonds issued - 133,761 -
Payment to escrow agent - (3,156,970) -
Leases 922,770 - -
Insurance recoveries 421,894 - -
Proceeds from sale of capital assets 33,025 - -
TOTAL OTHER FINANCING SOURCES (USES)7,618,822 31,791 5,414,520
NET CHANGE IN FUND BALANCES 3,966,477 (504,842) 3,826,597
FUND BALANCES - 9/30/2024 34,368,679 4,388,795 28,420,359
FUND BALANCES - 9/30/2025 38,335,156$ 3,883,953$ 32,246,956$
City of Allen, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
For the Year Ended September 30, 2025
The notes to the financial statements are an integral part of this statement.
40
General Other Total
Obligation Governmental Governmental
Bond Funds Funds
2,947,161$ 89,284,690$
223,718 32,389,161
70,421 8,134,411
2,696,118 2,696,118
904,698 4,863,776
13,869,481
513,666 3,518,439
1,375,302 6,730,301
4,744,094 546,453 12,197,343
154,349 2,981,746
275,270
4,744,094 9,431,886 176,940,736
11,605 5,008,665 34,227,114
352,936 68,629,417
2,150,304 - 12,078,854
2,212,138 29,535,005
622,719 6,529,854
27,244,480 324,767 33,711,141
13,368,584
8,346,260
354,125 -397,167
29,760,514 8,521,225 206,823,396
25,016,420) 910,661 (29,882,660)
15,329 17,781,169
336,836) (384,000) (6,831,023)
14,240,000 - 14,240,000
3,055,000
968,935 - 1,102,696
3,156,970)
922,770
421,894
9,223 42,248
14,872,099 (359,448) 27,577,784
10,144,321) 551,213 (2,304,876)
112,630,874 22,138,053 201,946,760
102,486,553$ 22,689,266$ 199,641,884$
The notes to the financial statements are an integral part of this statement.
41
42
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balance - total governmental funds (2,304,876)$
11,065,641
Contributed capital assets 50,629,518
Gain (loss) on sale of assets (255,937)
Issuance of bonds and payment to escrow agent (14,138,030)
Premium on bonds issued (1,102,696)
Bond and lease principal paid 13,368,584
Amortization of bond premiums and refunding 2,865,196
Deferred loss/gain on refunding charges (765,858)
Issuance of leases (922,770)
11,471,928
Accrued interest on long-term debt (322,841)
Changes in compensated absences (1,234,777)
2,298,986)
38,377)
Changes in unavailable revenue (40,672)
Change in net position of governmental activities 65,975,047$
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, 2025
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 fundsareused 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.
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 fundsreportcapital outlaysasexpenditures. 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.
43
Governmental
Activities
Total Nonmajor Total Internal
Water and Allen Event Enterprise Enterprise Service
Sewer Center Fund Funds Funds Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 40,115,837$ 1,674,975$ 7,566,906$ 49,357,718$ 32,333,478$
Investments 24,999,759 - 722,384 25,722,143 7,716,007
Receivables, net of allowances for uncollectibles:
Accounts 17,716,358 264,429 2,168,175 20,148,962 549,415
Accrued Interest 159,501 - 4,609 164,110 49,229
Due from other governments - 661,073 - 661,073 -
Inventories - 105,935 44,548 150,483 -
Prepaid items 19,769 - - 19,769 166,290
Restricted cash and cash equivalents 7,374,243 - - 7,374,243 -
TOTAL CURRENT ASSETS 90,385,467 2,706,412 10,506,622 103,598,501 40,814,419
NONCURRENT ASSETS
CAPITAL ASSETS
Land 4,091,626 - - 4,091,626 -
Construction in Progress 26,919,046 - - 26,919,046 3,063,626
Towers, tanks and pump stations 199,262,191 - - 199,262,191 -
Other improvements 43,846,000 - 1,230,546 45,076,546 68,257
Intangible assets 7,994,325 - - 7,994,325 -
Machinery and equipment 2,649,503 12,019 3,051,597 5,713,119 7,518,121
Vehicles 1,080,042 - 541,520 1,621,562 28,556,940
Less: accumulated depreciation/amortization (130,885,251) (1,202) (2,524,040) (133,410,493) (23,287,854)
TOTAL NONCURRENT ASSETS 154,957,482 10,817 2,299,623 157,267,922 15,919,090
TOTAL ASSETS 245,342,949 2,717,229 12,806,245 260,866,423 56,733,509
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 1,264,020 636,705 601,019 2,501,744 -
Deferred outflows of resources - OPEB 17,866 8,999 8,493 35,358 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,281,886 645,704 609,512 2,537,102 -
LIABILITIES
CURRENT LIABILITIES
Accounts payable 2,128,743 616,953 483,221 3,228,917 930,449
Accrued liabilities 263,669 170,495 300,408 734,572 20,930
Retainage payable 1,093,159 - - 1,093,159 38,632
Financing arrangements - current - - 15,663 15,663 -
Leases - current - - 182,466 182,466 -
Compensated absences - current 168,501 105,919 73,427 347,847 -
Total OPEB liability - current 2,708 1,364 1,286 5,358 -
Unearned revenue 153,992 1,931,719 97,790 2,183,501 -
Incurred but not reported claims - - - - 1,057,776
Payable from restricted assets:
Revenue bonds payable - current 1,200,000 - - 1,200,000 -
Accrued interest payable 295,210 - - 295,210 -
Customer deposits payable 1,089,957 - - 1,089,957 -
TOTAL CURRENT LIABILITIES 6,395,939 2,826,450 1,154,261 10,376,650 2,047,787
NONCURRENT LIABILITIES
Revenue bonds payable 24,255,007 - - 24,255,007 -
Leases - - 498,059 498,059 -
Net pension liability 2,584,034 1,301,616 1,228,665 5,114,315 -
Total OPEB liability 125,629 63,281 59,736 248,646 -
Compensated absences 305,966 275,419 255,224 836,609 -
TOTAL NONCURRENT LIABILITIES 27,270,636 1,640,316 2,041,684 30,952,636 -
TOTAL LIABILITIES 33,666,575 4,466,766 3,195,945 41,329,286 2,047,787
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 278,612 141,206 132,474 552,292 -
Deferred inflows of resources - OPEB 46,808 23,578 22,257 92,643 -
TOTAL DEFERRED INFLOWS OF RESOURCES 325,420 164,784 154,731 644,935 -
NET POSITION
Net investment in capital assets 126,818,146 10,817 1,577,397 128,406,360 15,611,089
Restricted for debt service 2,501,833 - - 2,501,833 -
Unrestricted 83,312,861 (1,279,434) 8,487,684 90,521,111 39,074,633
TOTAL NET POSITION 212,632,840$ (1,268,617)$ 10,065,081$ 221,429,304$ 54,685,722$
September 30, 2025
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.
44
Governmental
Activities
Total Nonmajor Total Internal
Water and Allen Event Enterprise Enterprise Service
Sewer Center Fund Funds Funds Funds
OPERATING REVENUES
Charges for services:
Water sales 42,151,542$ -$ -$ 42,151,542$ -$
Sewer charges 31,062,924 - - 31,062,924 -
Connection fees 105,943 - - 105,943 -
Garbage collections - - 8,980,407 8,980,407 -
Service charges 775,272 7,576,198 5,486,340 13,837,810 21,760,836
Drainage fees - - 2,308,534 2,308,534 -
Insurance recoveries 3,858 - 16,566 20,424 2,122,980
Intergovernmental revenues - 717,436 - 717,436 -
Miscellaneous 537,466 1,409,865 110,938 2,058,269 15
TOTAL OPERATING REVENUES 74,637,005 9,703,499 16,902,785 101,243,289 23,883,831
OPERATING EXPENSES
Personnel services 8,002,821 3,463,945 3,921,826 15,388,592 613,603
Contractual services 40,779,787 7,061,903 8,978,664 56,820,354 18,216,740
Maintenance 1,611,588 523,568 514,550 2,649,706 578,439
Supplies 625,121 190,950 446,210 1,262,281 135,136
Depreciation and amortization 6,584,048 1,202 420,091 7,005,341 3,547,704
TOTAL OPERATING EXPENSES 57,603,365 11,241,568 14,281,341 83,126,274 23,091,622
OPERATING INCOME (LOSS) 17,033,640 (1,538,069) 2,621,444 18,117,015 792,209
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 2,097,056 2,561 203,170 2,302,787 1,137,839
Interest expense (725,885) - (38,517) (764,402) -
Gain on disposal of capital assets 66,122 20,193 7,652 93,967 361,254
TOTAL NON-OPERATING REVENUES (EXPENSES) 1,437,293 22,754 172,305 1,632,352 1,499,093
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 18,470,933 (1,515,315) 2,793,749 19,749,367 2,291,302
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees 2,772,031 - - 2,772,031 -
Capital contributions 3,037,136 - - 3,037,136 -
Transfers in 68,019 750,000 1,400 819,419 -
Transfers out (9,701,532) - (2,068,033) (11,769,565) -
TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS (3,824,346) 750,000 (2,066,633) (5,140,979) -
CHANGE IN NET POSITION 14,646,587 (765,315) 727,116 14,608,388 2,291,302
NET POSITION - 9/30/2024 197,791,974 - 8,807,258 52,394,420
Change in accounting principle - GASB 101 194,279 - 27,405 -
Change in reporting entity - nonmajor to major - (503,302) 503,302
NET POSITION - 9/30/2024, as restated 197,986,253 (503,302) 9,337,965 52,394,420
NET POSITION - 9/30/2025 212,632,840$ (1,268,617)$ 10,065,081$ 54,685,722$
Adjustment for the net effect of the elimination of internal service
activities attributed to business-type activities (9,180,626)
Changes in net position of business-type activities 5,427,762$
Business-type Activities
Enterprise Funds
For the year ended September 30, 2025
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds
City of Allen, Texas
The notes to the financial statements are an integral part of this statement.
45
46
Total Nonmajor Total Internal
Water and Allen Event Enterprise Enterprise Service
Sewer Center Fund Funds Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 77,056,492$ 10,035,713$ 16,533,278$ 103,625,483$ 2,115,695$
Cash received from transactions with other funds - - - - 21,305,739
Cash paid to employees for salaries and benefits (7,642,692) (3,108,688) (3,758,436) (14,509,816) (605,063)
Cash paid for goods and services (41,340,597) (7,759,028) (10,009,353) (59,108,978) (885,588)
Cash paid for claims - - - - (17,607,170)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 28,073,203 (832,003) 2,765,489 30,006,689 4,323,613
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in from other funds 68,019 750,000 1,400 819,419 -
Transfers out to other funds (9,701,532) - (2,068,033) (11,769,565) -
NET CASH PROVIDED BY (USED IN) NON-CAPITAL FINANCING ACTIVITIES (9,633,513) 750,000 (2,066,633) (10,950,146) -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Contributions from developers 2,772,031 - - 2,772,031 -
Acquisition and construction of capital assets (8,788,664) (12,019) (615,689) (9,416,372) (7,063,980)
Proceeds from sale of capital assets 66,122 20,193 7,652 93,967 361,254
Principal paid on capital debt (1,645,000) - (188,852) (1,833,852) -
Interest and fees paid on capital debt (708,751) - (38,517) (747,268) -
NET CASH PROVIDED BY (USED IN) CAPITAL AND RELATED
FINANCING ACTIVITIES (8,304,262) 8,174 (835,406) (9,131,494) (6,702,726)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,003,443 2,561 203,771 2,209,775 1,125,247
Proceeds from sale of investments 10,727,275 - 631,335 11,358,610 1,804,147
Purchase of investments (19,000,000) - - (19,000,000) -
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (6,269,282) 2,561 835,106 (5,431,615) 2,929,394
NET CHANGE IN CASH AND CASH EQUIVALENTS 3,866,146 (71,268) 698,556 4,493,434 550,281
CASH AND CASH EQUIVALENTS - BEGINNING 43,623,934 1,746,243 6,868,350 52,238,527 31,783,197
CASH AND CASH EQUIVALENTS - ENDING 47,490,080$ 1,674,975$ 7,566,906$ 56,731,961$ 32,333,478$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income (loss) 17,033,640$ (1,538,069)$ 2,621,444$ 18,117,015$ 792,209$
Adjustments to reconcile income to net cash provided by (used in) operating activities:
Depreciation and amortization expense 6,584,048 1,202 420,091 7,005,341 3,547,704
Increase) decrease in accounts receivable 2,419,816 22,149 (385,238) 2,056,727 (462,397)
Increase) decrease in intergovernmental receivables - (661,073) - (661,073) -
Increase) decrease in prepaid items (19,769) - - (19,769) 56,021
Increase) decrease in inventories - (36,076) (12,457) (48,533) -
Increase) decrease in pension related deferred outflows 298,504 4,922 179,088 482,514 -
Increase) decrease in OPEB related deferred outflows 8,972 2,021 4,905 15,898 -
Increase (decrease) in accounts payable 1,348,117 53,469 (57,472) 1,344,114 369,798
Increase (decrease) in retainage payable 347,551 - - 347,551 16,765
Increase (decrease) in accrued liabilities 94,548 93,362 106,378 294,288 8,540
Increase (decrease) in unearned revenue - 971,138 15,731 986,869 -
Increase (decrease) in deposits payable (329) - - (329) -
Increase (decrease) in incurred but not reported claims - - - - (5,027)
Increase (decrease) in net pension liability (345,382) 98,695 (233,879) (480,566) -
Increase (decrease) in total OPEB liability 79 11,978 (3,012) 9,045 -
Increase (decrease) in compensated absences 86,302 23,972 9,256 119,530 -
Increase (decrease) in pension related deferred inflows 223,401 118,535 104,909 446,845 -
Increase (decrease) in OPEB related deferred inflows (6,295) 1,772 (4,255) (8,778) -
Total adjustments 11,039,563 706,066 144,045 11,889,674 3,531,404
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 28,073,203$ (832,003)$ 2,765,489$ 30,006,689$ 4,323,613$
NON-CASH INVESTING ACTIVITIES
Initiation of capital asset lease - - 190,292 190,292 -
NON-CASH FINANCING ACTIVITIES
Contributions of capital assets from developers 3,037,136 - - 3,037,136 -
RECONCILIATION OF TOTAL CASH TO THE STATEMENT
OF NET POSITION
Cash and cash equivalents - current 40,115,837$ 1,674,975$ 7,566,906$ 49,357,718$ 32,333,478$
Restricted cash and cash equivalents 7,374,243 - - 7,374,243 -
CASH AND CASH EQUIVALENTS - END OF YEAR 47,490,080$ 1,674,975$ 7,566,906$ 56,731,961$ 32,333,478$
City of Allen, Texas
Statement of Cash Flows - Proprietary Funds
For the year ended September 30, 2025
Business-type Activities
Enterprise Funds
The notes to the financial statements are an integral part of this statement.
47
48
Notes to the Financial Statements
49
50
City of Allen, Texas
Notes to the Financial Statements
51
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 office. 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 officials 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
52
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 effect
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
offset 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 Statement No. 101, Compensated Absences (GASB 101), provides guidance meant to beer meet the
informaon needs of nancial statement users by updang the recognion and measurement of
compensated absences. This Statement requires that liabilies for compensated absences be recognized
for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or seled
through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is
aributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than
not to be used for me off or otherwise paid in cash or seled through noncash means.
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
53
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.
Allen Event Center. The Allen Event Center Fund is used to account for the maintenance and operaon of
the Credit Union of Texas Event Center owned and operated by the City. The Event Center is a mul-purpose
indoor arena built by the City in 2009 and renamed to the Credit Union of Texas Event Center in 2021.
City of Allen, Texas
Notes to the Financial Statements
54
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.
City of Allen, Texas
Notes to the Financial Statements
55
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
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 fund 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 2024 levy was based is $21,505,959,363. 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, 2025, the combined tax rate to nance general government
services, including the payment of principal and interest on long-term debt, was $0.4175 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 effecve maintenance and
operaons tax rate, increased by 7.45% excluding other contractual obligaons, adjusted for new
City of Allen, Texas
Notes to the Financial Statements
56
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.
J. Transac ons 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, 2025, the General Fund
contributed $201,028 to AEDC to service debt beneng the City. The ACDC contributed $3,585,843 to the
City during the scal year: $1,886,900 to the General Fund to service debt related to the Terrell Recreaon
Center, $492,983 to the General Fund for general and administrave costs, $160,000 in sponsorship of the
Allen USA Celebraon, $95,960 to the General Capital Projects fund to fund neighborhood reinvestment
projects, and $950,000 in operaonal support funds to the Allen Event Center. The AEDC contributed
114,745 to the General Fund during the year for general and administrave costs. There were also several
operaonal support transacons recorded in order to provide funding for the EDC to purchase 108 acres of
land near Highway 121 and Stacy Rd in Allen for use in future economic development agreements. The CDC
provided $20,000,000 in operaonal support for this purchase. The EDC also purchased 7 acres of land near
Highway 75 for future economic development agreements to which the Tax Increment Financing Zone #2
Central Business District) contributed $3,799,265. 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
57
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 staons 5 - 40 Years
Infrastructure 3 - 50 Years
Machinery and equipment 3 - 15 Years
Vehicles 2 - 15 Years
Furniture and xtures 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
The City recognizes a liability for compensated absences for leave me that (1) has been earned for services
previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years,
and (3) is more likely than not to be used as me off or seled (for example paid in cash to the employee
or payment to an employee ex spending account) during or upon separaon from employment. Based on
the criteria listed, two types of leave qualify for liability recognion for compensated absences – vacaon
and sick leave. The liability for compensated absences is reported as incurred in the government-wide and
proprietary fund nancial statements. A liability for compensated absences is recorded in the governmental
funds only if the liability has matured because of employee resignaons or rerements. The liability for
compensated absences includes salary-related benets, where applicable. The City’s policy permits
employees to accumulate earned but unused vacaon benets and sick leave, which are eligible for
payment at the employee’s current pay rate upon separaon from employment. The amount accumulated
and the amount eligible for payment upon separaon are subject to limits based on type of employee and
years of service with the City.
City of Allen, Texas
Notes to the Financial Statements
58
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.
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.
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.
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 affect 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 addi ons 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
City of Allen, Texas
Notes to the Financial Statements
59
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
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:
Contribuons aer measurement date – These contribuons are deferred and recognized in the
following scal year.
Difference between projected and actual investment earnings related to pension and OPEB plans.
Difference between expected and actual pension and OPEB experience – This difference is deferred
and amorzed over a closed period.
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 difference 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 difference 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 different levels of constraint, such as external versus internal
compliance requirements. Unassigned fund balance is a residual classicaon within the General Fund.
City of Allen, Texas
Notes to the Financial Statements
60
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.
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 Officer. 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, 2025, the Allen Event Center fund, has a decit net posion balance of $1,268,617. 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
City of Allen, Texas
Notes to the Financial Statements
61
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.
The City’s demand deposits and cercates of deposit were fully insured or collateralized at September 30,
2025, with collateral required by state statutes. At year’s end, the carrying amount of the City’s pooled
deposits was $5,737,743, and the bank balance was $5,625,637. 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,
2025, was $27,909. The carrying amount of deposits for ACDC and AEDC, discretely presented component
units, were $1,088,250 and $4,479,725, 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.
City of Allen, Texas
Notes to the Financial Statements
62
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.
Level 1 inputs are quoted prices (unadjusted) for idencal assets or liabilies in acve markets that
a government can access at the measurement date.
Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an 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:
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%
Investment Type
Primary
Government AEDC ACDC
Total September
30, 2025
Significant Other
Observable
Inputs (Level 2)
of Total
Government-
wide
Investments
Weighted
Avg
Maturity
Days)
Credit
Rating
Investments Measured at Amortized Cost:
TexPool 6,208,624$ 1,845,142$ 2,411,534$ 10,465,300$ -$ 3.01% 0.03 AAAm
Investments Measured at NAV:
Texas CLASS 254,413,470 4,356,884 4,706,576 263,476,930 - 75.73% 0.76 AAAm
Investments Subject to Fair Value:
U.S. Agencies 67,319,437 4,240,266 2,398,545 73,958,248 73,958,248 21.26% 95.76 AA+
Total 327,941,531$ 10,442,292$ 9,516,655$ 347,900,478$ 73,958,248$
City of Allen, Texas
Notes to the Financial Statements
63
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.
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 affects
the pools’ liquidity.
TexPool is an external investment pool measured at amorzed cost. The Texas Comptroller of Public
Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company,
which is authorized to operate TexPool. In 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 affects 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 affect 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
City of Allen, Texas
Notes to the Financial Statements
64
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.
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, 2025.
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, 2025, 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, 2025, the City’s deposits with nancial instuons above the federal depository limits
were fully collateralized.
City of Allen, Texas
Notes to the Financial Statements
65
B. Receivables
Receivables at September 30, 2025, for both governmental and proprietary funds, including the applicable
allowances for uncollecble accounts, consist of the following:
Governmental Funds
Proprietary Funds
The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include unbilled
charges for services rendered through September 30, 2025.
General General Nonmajor Total
Capital Obligation Governmental Governmental
General Debt Service Projects Bond Funds Funds
Ad valorem taxes 604,450$ 173,529$ -$ -$ -$ 777,979$
Sales taxes 5,579,535 - - - - 5,579,535
Franchise and right-of-way fees 1,841,488 - - - 18,063 1,859,551
Municipal court 1,779,166 - - - - 1,779,166
PD alarms 110,929 - - - - 110,929
EMS receivable 2,240,962 - - - - 2,240,962
Accounts receivable 826,522 - - - 204,589 1,031,111
Accrued interest 133,520 - 57,031 3,516 22,099 216,166
Gross receivables 13,116,572 173,529 57,031 3,516 244,751 13,595,399
Less: allowance for uncollectibles (3,383,097) (127,506) - - - (3,510,603)
Total net receivables 9,733,475$ 46,023$ 57,031$ 3,516$ 244,751$ 10,084,796$
Nonmajor Total Internal
Water and Allen Event Enterprise Enterprise Service
Sewer Center Funds Funds Funds
Accounts receivable 18,132,092$ 296,368$ 2,248,182$ 20,676,642$ 550,556$
Due from other governments - 661,073 - 661,073 -
Accrued interest 159,501 - 4,609 164,110 49,229
Gross receivables 18,291,593 957,441 2,252,791 21,501,825 599,785
Less: allowance for uncollectibles (415,734) (31,939) (80,007) (527,680) (1,141)
Total net receivables 17,875,859$ 925,502$ 2,172,784$ 20,974,145$ 598,644$
City of Allen, Texas
Notes to the Financial Statements
66
C. Capital Assets
Capital asset acvity for the year ended September 30, 2025, was as follows:
Governmental Acvies
Balance Balance
September 30, Deletions/ September 30,
2024 Additions Transfers 2025
Governmental Activities
Governmental Funds
Capital assets, not being depreciated/amortized
Land 176,321,479$ 3,137,625$ 43,017,580$ 222,476,684$
Construction in progress 79,372,216 35,289,020 (63,267,105) 51,394,131
Total capital assets, not being depreciated/amortized 255,693,695 38,426,645 (20,249,525) 273,870,815
Capital assets, being depreciated/amortized
Buildings 108,548,675 - 57,597,040 166,145,715
Buildings - right-to-use 4,600,000 - - 4,600,000
Improvements other than buildings 548,478,488 4,547,957 2,535,768 555,562,213
Furniture and fixtures 4,608,135 277,767 - 4,885,902
Vehicles 23,563,154 2,970,937 5,338,952 31,873,043
Machinery and equipment 16,432,686 1,251,473 2,228,971 19,913,130
Machinery and equipment - right-to-use 1,449,553 922,770 (233,952) 2,138,371
Total capital assets, being depreciated/amortized 707,680,691 9,970,904 67,466,779 785,118,374
Less accumulated depreciation/amortization for:
Buildings (46,671,414) (3,470,418) 337,907 (49,803,925)
Buildings - right-to-use (76,667) (153,333) - (230,000)
Improvements other than buildings (379,189,112) (17,334,313) - (396,523,425)
Furniture and fixtures (4,526,764) (58,263) - (4,585,027)
Vehicles (14,626,885) (3,388,159) (1,152,609) (19,167,653)
Machinery and equipment (11,283,872) (1,234,637) (1,091,176) (13,609,685)
Machinery and equipment - right-to-use (677,369) (563,015) 233,952 (1,006,432)
Total accumulated depreciation/amortization (457,052,083) (26,202,138) (1,671,926) (484,926,147)
Total governmental funds capital assets, being
depreciated/amortized, net 250,628,608 (16,231,234) 65,794,853 300,192,227
Total governmental funds capital assets, net 506,322,303$ 22,195,411$ 45,545,328$ 574,063,042$
City of Allen, Texas
Notes to the Financial Statements
67
Business-Type Acvies
Component Unit Acvies
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,
2024 Additions Transfers 2025
Business-type Activities
Enterprise Funds
Capital assets, not being depreciated/amortized
Land 4,091,626$ -$ -$ 4,091,626$
Construction in progress 18,605,322 8,313,724 - 26,919,046
Total capital assets, not being
depreciated/amortized 22,696,948 8,313,724 - 31,010,672
Capital assets, being depreciated/amortized
Towers, tanks, and pump stations 196,225,055 3,037,136 - 199,262,191
Other improvements 45,076,546 - - 45,076,546
Intangible asset 7,994,325 - - 7,994,325
Vehicles 1,351,890 269,672 - 1,621,562
Machinery and equipment 3,871,887 832,207 (61,912) 4,642,182
Machinery and equipment - right-to-use 880,644 190,293 - 1,070,937
Total capital assets, being depreciated/amortized 255,400,347 4,329,308 (61,912) 259,667,743
Less accumulated depreciation/amortization for:
Towers, tanks, and pump stations (113,551,994) (4,703,063) - (118,255,057)
Other improvements (8,439,048) (1,363,552) - (9,802,600)
Intangible asset (532,955) (266,478) - (799,433)
Vehicles (811,079) (186,573) 768 (996,884)
Machinery and equipment (2,891,338) (293,413) 61,912 (3,122,839)
Machinery and equipment - right-to-use (304,418) (192,262) 63,000 (433,680)
Total accumulated depreciation/amortization (126,530,832) (7,005,341) 125,680 (133,410,493)
Total enterprise funds capital assets, being
depreciated/amortized, net 128,869,515 (2,676,033) 63,768 126,257,250
Total enterprise funds capital assets, net 151,566,463$ 5,637,691$ 63,768$ 157,267,922$
Balance Balance
September 30, Deletions/ September 30,
2024 Additions Transfers 2025
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 (276,125) (50,205) - (326,330)
Total accumulated depreciation (276,125) (50,205) - (326,330)
Total AEDC capital assets, being depreciated, net 727,966 (50,205) - 677,761
Total AEDC capital assets, net 727,966$ (50,205)$ -$ 677,761$
City of Allen, Texas
Notes to the Financial Statements
68
Depreciaon/amorzaon expense was charged as direct expense to programs of the primary government
and component units as follows:
Outstanding commitments at September 30, 2025, under authorized construcon contracts totaled
15,465,880. These outstanding commitments for capital projects will be funded from unspent bond
proceeds and addional general obligaon bonds.
Balance Balance
September 30, Deletions/ September 30,
2024 Additions Transfers 2025
Allen Community Development Corporation
Capital assets, not being depreciated
Land 2,239,201$ -$ -$ 2,239,201$
Construction in progress 13,632,313 2,619,742 (7,143,463) 9,108,592
Total capital assets, not being depreciated 15,871,514 2,619,742 (7,143,463) 11,347,793
Capital assets, being depreciated
Buildings 36,202,922 - 6,998,011 43,200,933
Improvements other than buildings 39,567,360 129,831 145,452 39,842,643
Furniture and fixtures 113,211 - - 113,211
Vehicles 670,893 - - 670,893
Machinery and equipment 4,645,975 291,947 (31,819) 4,906,103
Total capital assets, being depreciated 81,200,361 421,778 7,111,644 88,733,783
Less accumulated depreciation for:
Buildings (13,393,531) (996,119) - (14,389,650)
Improvements other than buildings (25,532,918) (1,382,042) - (26,914,960)
Furniture and fixtures (28,743) (20,095) - (48,838)
Vehicles (647,679) (15,476) - (663,155)
Machinery and equipment (3,291,493) (375,857) 31,819 (3,635,531)
Total accumulated depreciation (42,894,364) (2,789,589) 31,819 (45,652,134)
Total ACDC capital assets, being depreciated, net 38,305,997 (2,367,811) 7,143,463 43,081,649
Total ACDC capital assets, net 54,177,511$ 251,931$ -$ 54,429,442$
Governmental activities:
General government 1,245,553
Public safety 3,950,838
Public works 16,798,820
Culture and recreation 4,130,507
Community development 76,420
Total governmental activities depreciation and amortization expense 26,202,138
Business-type activities:
Water and sewer 6,584,048
Solid waste 19,110
Drainage 158,856
Golf course 242,125
Event Center 1,202
Total business-type activities depreciation and amortization expense 7,005,341
Component unit activities
Allen Economic Development Corporation 50,205
Allen Community Development Corporation 2,789,589
Total component unit activities depreciation expense 2,839,794
City of Allen, Texas
Notes to the Financial Statements
69
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, 2025, the cost of water purchased under this contract
was $24,608,692.
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 2025, the cost for transportaon, treatment and disposal of sewage and other
wastes was $12,258,102.
E. Long-term Liabilies
At September 30, 2025, bonds payable consisted of the following individual issues:
Original Interest Final Outstanding at
Borrowing Rates Maturity 9/30/2025
Governmental Activities
General Obligation Bonds
General Obligation Bonds, Series 2006 1,595,000 4.0% - 4.2% 8/15/2026 115,000
General Obligation Bonds, Series 2013 5,065,000 2.0% - 3.5% 8/15/2029 1,185,000
General Obligation Bonds, Series 2014 10,595,000 2.0% - 4.0% 8/15/2028 1,790,000
General Obligation Refunding & Improvement Bonds, Series 2015 32,245,000 2.0% - 5.0% 8/15/2034 3,835,000
General Obligation Refunding Bonds, Series 2016 6,910,000 2.0% - 4.0% 8/15/2028 2,710,000
General Obligation Bonds, Series 2017 11,845,000 2.25% - 5.0% 8/15/2032 5,930,000
General Obligation Bonds, Series 2018 8,355,000 2.0% - 5.0% 8/15/2033 4,975,000
General Obligation Refunding & Improvement Bonds, Series 2019 8,630,000 2.5% - 4.0% 8/15/2034 4,515,000
General Obligation Refunding & Improvement Bonds, Series 2020 23,385,000 2.0% - 4.0% 8/15/2035 13,305,000
General Obligation Refunding & Improvement Bonds, Series 2021 10,595,000 3.0% - 5.0% 8/15/2036 4,010,000
General Obligation Bonds, Series 2022 23,000,000 4.0% - 5.0% 8/15/2041 19,995,000
General Obligation Bonds, Series 2023 14,525,000 4.0% - 5.0% 8/15/2043 10,900,000
General Obligation Improvement & Refunding Bonds, Series 2024 84,455,000 5.0% 8/15/2044 81,680,000
General Obligation Bonds, Series 2025 17,295,000 5.0% 8/15/2045 17,295,000
Governmental Bonds Total 258,495,000 172,240,000
Certificates of Obligation Bonds
Combination Tax & Revenue Certificates of Obligation, Series 2021 22,945,000 4.0% - 5.0% 8/15/2036 18,300,000
Tax Notes
Tax Notes, Series 2020 3,175,000 4.00% 8/15/2026 580,000
Total Governmental Activities 191,120,000
Business-type Activities
Waterworks & Sewer System Revenue Bonds, Series 2018 9,330,000 2.0% - 5.0% 6/1/2038 6,875,000
Waterworks & Sewer System Revenue Bonds, Series 2019 3,845,000 2.0% - 4.0% 6/1/2039 2,910,000
Waterworks & Sewer System Revenue Bonds, Series 2020 4,880,000 2.0% - 5.0% 6/1/2040 3,950,000
Waterworks & Sewer System Revenue Bonds, Series 2021 10,675,000 2.0% - 5.0% 6/1/2036 9,025,000
Business-type Activities Total 28,730,000 22,760,000
City of Allen, Texas
Notes to the Financial Statements
70
The following is a summary of long-term liabilies transacons, including current poron, of the City for
the year ended September 30, 2025:
Original Interest Final Outstanding at
Borrowing Rates Maturity 9/30/2025
Allen Economic Development Corporation Bonds
Sales Tax Revenue Refunding Bonds, Series 2017A 11,810,000 2.0% - 5.0% 9/1/2027 2,605,000
Sales Tax Revenue Bonds, Series 2020 2,110,000 0.75% - 2.0% 9/1/2030 1,090,000
Sales Tax Revenue Bonds, Series 2021 2,295,000 0.65% - 2.45% 9/1/2036 1,975,000
AEDC Bonds Total 16,215,000 5,670,000
Allen Community Development Corporation Bonds
Sales Tax Revenue Refunding Bonds, Series 2016 31,235,000 0.750% - 2.353% 9/1/2032 15,040,000
Balance Beginning
of Year Increases Decreases
Balance
Ending of
Year
Due within
One Year
Governmental Activities
General obligation bonds 169,025,000$ 17,295,000$ (14,080,000)$ 172,240,000$ 11,895,000$
Certificates of obligation 19,550,000 - (1,250,000) 18,300,000 1,310,000
Tax notes 1,140,000 - (560,000) 580,000 580,000
Leases 794,372 922,770 (618,584) 1,098,558 475,488
Premiums (discounts) 20,988,725 1,102,696 (2,865,196) 19,226,225 -
Compensated absences 12,365,031 1,234,777 - 13,599,808 3,388,154
Total Governmental Activities 223,863,128$ 20,555,243$ (19,373,780)$ 225,044,591$ 17,648,642$
Business Type Activities
Water and sewer revenue bonds 24,180,000$ -$ (1,420,000)$ 22,760,000$ 1,200,000$
Financing arrangements 31,974 - (16,311) 15,663 15,663
Leases 662,774 190,292 (172,541) 680,525 182,466
Premiums (discounts) 2,890,723 - (195,716) 2,695,007 -
Compensated absences 1,054,926 129,530 - 1,184,456 347,847
Total Business Type Activities 28,820,397$ 319,822$ (1,804,568)$ 27,335,651$ 1,745,976$
Component Units
Allen Economic Development Corporation
Sales tax revenue bonds 7,250,000$ -$ (1,580,000)$ 5,670,000$ 1,645,000$
Premiums (discounts) 218,687 - (72,895) 145,792 -
Total Allen Economic Development Corporation 7,468,687$ -$ (1,652,895)$ 5,815,792$ 1,645,000$
Allen Community Development Corporation
Sales tax revenue bonds 16,975,000$ -$ (1,935,000)$ 15,040,000$ 1,980,000$
Total Allen Community Development Corporation 16,975,000$ -$ (1,935,000)$ 15,040,000$ 1,980,000$
City of Allen, Texas
Notes to the Financial Statements
71
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, 2025, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2026 11,895,000$ 7,960,701$ 19,855,701$
2027 11,800,000 7,510,871 19,310,871
2028 10,965,000 6,990,221 17,955,221
2029 10,305,000 6,508,506 16,813,506
2030 9,960,000 6,039,006 15,999,006
2031-2035 47,500,000 23,177,169 70,677,169
2036-2040 38,045,000 13,293,450 51,338,450
2041-2045 31,770,000 3,929,450 35,699,450
172,240,000$ 75,409,374$ 247,649,374$
Governmental Activities
General Obligation Bonds
Fiscal Year Ending
September 30, Principal Interest Total
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 1,590,000 522,500 2,112,500
2031-2035 9,040,000 1,520,200 10,560,200
2036 2,035,000 81,400 2,116,400
18,300,000$ 4,935,350$ 23,235,350$
Certificates of Obligation
Fiscal Year Ending
September 30, Principal Interest Total
2026 580,000$ 23,200$ 603,200$
580,000$ 23,200$ 603,200$
Tax Notes
Fiscal Year Ending
September 30, Principal Interest Total
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 1,370,000 716,750 2,086,750
2031-2035 7,830,000 2,604,550 10,434,550
2036-2040 7,850,000 920,450 8,770,450
2041 715,000 21,450 736,450
22,760,000$ 7,623,200$ 30,383,200$
Business Type Activities
Waterworks and Sewer System Revenue Bonds
City of Allen, Texas
Notes to the Financial Statements
72
Bond Issuances. On August 15, 2025, the City issued City of Allen, Texas General Obligaon Improvement
and Refunding Bonds, Series 2025, in the amount of $17,295,000 for streets improvements, parks and
recreaon projects and the refunding of a poron of General Obligaon Bonds, Series 2015. Bond proceeds
totaled $18,397,696 and includes a premium of $1,102,696. Expenses incurred to deliver the Series 2024
bonds, including issuance costs, underwriter’s discount, and agents’ fees amounted to $240,726. The Series
2025 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 $3,156,970 was deposited into an escrow account to cover issuance costs and the refunding of
3,140,000 of principal payments to the above-menoned bond issuance. Due to this refunding, the City
received $71,423 in debt service savings, coming to a present value savings of $65,195.
A schedule of authorized but unissued direct General Obligaon Bonds as of September 30, 2025, is as
follows:
The amount issued in current year includes premium generated in the bond sale and is counted against the
amount authorized.
Waterworks and Sewer System Revenue Bonds. Waterworks and Sewer System Revenue Bonds are used to
nance the acquision of major capital improvements for the City’s water and sewer system and related
Fiscal Year Ending
September 30, Principal Interest Total
2026 1,645,000$ 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 400,000 33,688 433,688
2031-2035 930,000 89,973 1,019,973
2036 200,000 4,900 204,900
5,670,000$ 526,920$ 6,196,920$
Fiscal Year Ending
September 30, Principal Interest Total
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 2,205,000 209,248 2,414,248
2031-2032 4,600,000 217,783 4,817,783
15,040,000$ 1,840,694$ 16,880,694$
Component Unit Activities
Sales Tax Revenue Bonds - Allen EDC
Sales Tax Revenue Bonds - Allen CDC
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 5,150,000 35,850,000
Parks and Recreation 11/7/2023 17,000,000 - 9,850,000 7,150,000
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$ 101,500,000$ 15,000,000$ 53,000,000$
City of Allen, Texas
Notes to the Financial Statements
73
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 $2,501,833 at September 30, 2025, 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, 2025, of $3,997,043 are adequate to meet the reserve requirements.
As of September 30, 2025, restricted assets, which include amounts in the Water and Sewer Revenue Bond
Debt Service and the Revenue Bond Reserve Fund, were as follows:
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, 2025, the capitalized costs of business-type
property under nanced purchase arrangements were $73,292.
The terms of the nanced arrangements range from 3 - 5 years and call for monthly and annual payments
over the life of the agreements. The future minimum payments under nanced purchase arrangements and
the net present value of the future minimum payments at September 30, 2025, are as follows:
Revenue bond reserve fund 1,903,839$
Revenue bond debt service fund 2,093,204
3,997,043$
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt service and reserve funds 3,997,043$
Accrued interest, payable from restricted assets (295,210)
Current maturities of revenue bonds, payable from restricted assets (1,200,000)
Reserved for water and sewer revenue bonds principal and interest 2,501,833$
Fiscal Year Ending
September 30, Principal Interest Total
2026 15,663$ 383$ 16,046$
Total 15,663$ 383$ 16,046$
Business-type Activities
City of Allen, Texas
Notes to the Financial Statements
74
Leases – Lessee. 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 $20,000 or more.
At the commencement of a lease, the City inially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the
principal poron of lease payments made. The lease asset is inially measured as the inial amount of the
lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain
inial direct costs. Subsequently, the lease asset is amorzed on a straight-line basis over the shorter of the
lease term or its useful life. Key esmates and judgments related to leases include how the City determines
1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and
3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the City generally uses its esmated incremental borrowing
rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of xed payments,
variable payments xed in substance or that depend on an index or a rate, purchase opon price
that the City is reasonably certain to exercise, lease incenves receivable from the lessor, and any
other payments that are reasonably certain of being required based on an assessment of all
relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its leases and will
remeasure the lease asset and liability if certain changes occur that are expected to signicantly affect the
amount of the lease liability.
The future principal and interest lease payments as of scal year-end are as follows:
Fiscal Year Ending
September 30, Principal Interest Total Principal Interest Total
2026 475,488$ 62,110$ 537,598$ 182,466$ 29,882$ 212,348$
2027 385,505 38,538 424,043 191,802 20,547 212,349
2028 237,565 15,699 253,264 201,614 10,734 212,348
2029 - - - 104,643 1,532 106,175
Total 1,098,558$ 116,347$ 1,214,905$ 680,525$ 62,695$ 743,220$
Governmental Activities Business-type Activities
City of Allen, Texas
Notes to the Financial Statements
75
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.
G. Interfund Transfers
Individual fund operang transfers for scal year ended September 30, 2025, were as follows:
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. The City also
assesses ending fund balance and working capital for yearend transfers into funds used for the capital
improvement program.
General General Other Total
Capital Obligation Governmental Governmental
General Debt Service Projects Bond Funds Funds
FUND BALANCES
Nonspendable
Prepaid items 9,249$ -$ -$ -$ -$ 9,249$
Inventories 54,132 - - - - 54,132
Restricted
Debt service - 3,883,953 - - - 3,883,953
Capital expenditures - - - 102,486,553 - 102,486,553
Tourism - - - - 2,860,442 2,860,442
Asset forfeiture - - - - 240,405 240,405
State and federal grants 245,393 - - - 238,514 483,907
Park acquisition and development - - - - 2,232,051 2,232,051
Tax increment financing agreement - - - - 13,876,715 13,876,715
Court technology and security - - - - 339,761 339,761
Juvenile case manager - - - - 80,053 80,053
PEG fees - - - - 201,926 201,926
Radio system - - - - 483,714 483,714
Tree mitigation - - - - 1,917,139 1,917,139
Public safety and library enhancements - - - - 218,546 218,546
Cemetery trust 74,343 - - - - 74,343
Assigned
Capital expenditures - - 31,396,748 - - 31,396,748
Neighborhood reinvestment - - 850,208 - - 850,208
Unassigned 37,952,039 - - - - 37,952,039
TOTAL FUND BALANCES 38,335,156$ 3,883,953$ 32,246,956$ 102,486,553$ 22,689,266$ 199,641,884$
Transfers Out:General Fund
General Capital
Projects Fund
Nonmajor
Governmental
Funds
Water and
Sewer Fund Event Center
Nonmajor
Enterprise
Funds Total
General Fund -$ 5,403,989$ 15,329$ -$ 400,000$ 1,400$ 5,820,718$
General Obligation Bond Fund 336,836 - - - - - 336,836
General Capital Projects Fund 289,469 - - - - - 289,469
Nonmajor Governmental Funds 34,000 - - - 350,000 - 384,000
Water and Sewer Fund 9,701,532 - - - - - 9,701,532
Nonmajor Enterprise Funds 1,700,014 300,000 - 68,019 - - 2,068,033
Total 12,061,851$ 5,703,989$ 15,329$ 68,019$ 750,000$ 1,400$ 18,600,588$
Transfers In:
City of Allen, Texas
Notes to the Financial Statements
76
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:
Employees Covered by Benet Terms. At the December 31, 2024, valuaon and measurement date, the
following employees were covered by the benet terms:
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.
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
Inactive employees or beneficiaries currently receiving benefits 406
Inactive employees entitled to, but not yet receiving benefits 598
Active employees 830
1,834
City of Allen, Texas
Notes to the Financial Statements
77
Employees of the City were required to contribute 7% of their annual compensaon during the scal year.
The contribuon rates for the City were 16.08% and 15.19% in calendar years 2025 and 2024, respecvely.
The City’s contribuon to TMRS for the year ended September 30, 2025 was $12,525,281, which was equal
to the actuarially determined required contribuon.
Net Pension Liability. The City’s Net Pension Liability (NPL) was measured as of December 31, 2024, 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, 2024 actuarial valuaon was
determined using the following actuarial assumpons:
Salary increases are based on a service-related table. Mortality rates for acve members are based on the
PUB(10) mortality tables with 110% of the Public Safety table used for males and 100% of 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. Male rates are mulplied by 103% and
female rates are mulplied by 105%. The rates for acves, healthy rerees and beneciaries are projected
on a fully generaonal basis by the most recent Scale MP-2021 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
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 the most recent Scale MP-
2021 to account for future mortality improvements subject to the 3% oor.
The actuarial assumpons were developed primarily from the actuarial invesgaon of the experience of
TMRS over the four-year period from December 31, 2018 to December 31, 2022. The assumpons were
adopted in 2023 and rst used in the December 31, 2023, 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.
Inflation 2.5% per year
Overall payroll growth 2.75% per year
Investment Rate of Return 6.75%
City of Allen, Texas
Notes to the Financial Statements
78
The long-term expected rate of return on pension plan investments was determined by best esmate ranges
of expected future real rates of return for each major asset class. The long-term expected rate of return is
determined by weighng the expected return for each major asset class by respecve target asset allocaon
percentage. The target allocaon and best esmates of expected return for each major asset class in scal
year 2025 are summarized in the following table:
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.
Changes in the Net Pension Liability. Changes in the net pension liability are as follows:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Arithmetic)
Global Equity 35.00% 7.10%
Core Fixed Income 6.00% 5.00%
Non-Core Fixed Income 6.00% 6.80%
Hedge Funds 5.00% 6.40%
Private Equity 13.00% 8.50%
Private Debt 13.00% 8.20%
Real Estate 12.00% 6.70%
Infrastructure 6.00% 6.00%
Other Public and Private Markets 4.00% 7.30%
Total 100.00%
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
a) (b) (a) - (b)
Balance at 12/31/2023 327,910,968$ 284,640,415$ 43,270,553$
Changes for the year:
Service cost 13,985,552 - 13,985,552
Interest 22,234,583 - 22,234,583
Difference between expected
and actual experience 5,691,268 - 5,691,268
Change in assumptions - - -
Contributions - employer - 12,068,562 (12,068,562)
Contributions - employee - 5,271,883 (5,271,883)
Net investment income - 29,639,869 (29,639,869)
Benefit payments, including
refunds of employee contributions (11,005,036) (11,005,036) -
Administrative expense - (189,678) 189,678
Other charges - (4,437) 4,437
Net changes 30,906,367 35,781,163 (4,874,796)
Balance at 12/31/2024 358,817,335$ 320,421,578$ 38,395,757$
City of Allen, Texas
Notes to the Financial Statements
79
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:
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.
Pension Expense and Deferred Oulows and Deferred Inows of Resources Related to Pensions. For the year
ended September 30, 2025, the City recognized pension expense in the amount of $15,699,263. At
September 30, 2025, the City reported deferred oulows and inows of resources related to pensions from
the following sources:
9,705,440 reported as deferred oulows of resources related to pensions resulng from contribuons
subsequent to the measurement date will be recognized as a reducon of the Net Pension Liability for the
year ending September 30, 2026. Other amounts reported as deferred oulows and inows of resources
related to pensions will be recognized in pension expense as follows:
I. Postemployment Benets Other than Pensions
Supplemental Death Benets Plan - TMRS
Plan Descripon. Texas Municipal Rerement System (“TMRS”) administers a dened benet group-term
life insurance plan known as the Supplemental Death Benets Fund (“SDBF”). This is a voluntary program
in which parcipang member cies may elect, by ordinance, to provide group-term life insurance coverage
for their acve members, including or not including rerees. Employers may terminate coverage under and
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
5.75%) (6.75%) (7.75%)
City's net pension liability 93,563,764$ 38,395,757$ (6,560,303)$
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 9,076,439$ -$
Changes in actuarial assumptions - 474,927
Difference between projected and actual investment earnings - 3,664,914
Contributions subsequent to the measurement date 9,705,440 -
Total 18,781,879$ 4,139,841$
Measurement year ending
December 31
2025 4,040,602$
2026 5,747,208
2027 (2,877,480)
2028 (1,973,732)
Total 4,936,598
City of Allen, Texas
Notes to the Financial Statements
80
effecve 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.
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 effect. 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, 2025, was
39,461, which was equal to the actuarially determined contribuon (ADC).
Summary of Actuarial Assumpons and Other Inputs Used
Inflation
Salary Increases
Discount Rate
Administrative Expenses
Mortality Rates - service retirees
Mortality Rates - disabled retirees
2.50%
3.60% to 11.50%, including inflation
4.08%, as of December 31, 2024
All administrative expenses are paid through the Pension Trust and
accounted for under reporting requirements under GASB
Statement No. 68
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).
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.
Summary of Actuarial Assumptions and Other Inputs Used
Note: 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.
City of Allen, Texas
Notes to the Financial Statements
81
Employees Covered by Benet Terms. At December 31, 2024, the actuarial valuaon and measurement date,
the following employees were covered by the benet terms:
Changes in Total OPEB Liability. Changes in total OPEB liability are as follows:
The City’s total OPEB liability of $1,906,939 was measured at December 31, 2024, 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 (3.08%) or 1-percentage-point higher (5.08%) than the
current discount rate:
OPEB Expense and Deferred Oulows and Deferred Inows of Resources Related to OPEB. For the year
ended September 30, 2025, the City recognized OPEB expense of $95,403. OPEB expense recognized is as
follows:
Inactive employees or beneficiaries currently receiving benefits 284
Inactive employees entitled to, but not yet receiving benefits 150
Active employees 830
1,264
Total OPEB Liability - beginning of year 1,894,498$
Changes for the year:
Service cost 112,969
Interest on Total OPEB Liability 72,842
Difference between expected and actual experience (24,150)
Change in assumptions or other inputs (111,564)
Benefit payments, including (37,656)
Net changes 12,441
Total OPEB Liability - end of year 1,906,939$
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
3.08%) (4.08%) (5.08%)
City's total OPEB liability 2,301,280$ 1,906,939$ 1,600,290$
Components of OPEB Expense:
Service cost 112,969$
Interest on Total OPEB Liability 72,842
Difference between expected and actual experience (30,138)
Change in assumptions or other inputs (60,270)
Total OPEB Expense 95,403
City of Allen, Texas
Notes to the Financial Statements
82
At September 30, 2025, the City reported deferred oulows and inows of resources related to OPEB from
the following sources:
Deferred oulows of resources in the amount of $30,179 related to OPEB that resulted from contribuons
made subsequent to the measurement date but before September 30, 2026, 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:
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 $2,000,000 per plan year provides
protecon to limit claim liability for the plan as a whole. The liabilies for insurance claims reported are
based on GASB No. 10, Accounng and Financial Reporng for Risk Financing and Related Insurance Issues,
which requires that a liability for claims be reported if informaon prior to the issuance of the nancial
statements indicates that it is probable that a liability has been incurred at the date of the nancial
statements and the amount of the loss can be reasonably esmated.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 1,212$ 78,134$
Changes in actuarial assumptions or other inputs 234,070 617,385
Contributions subsequent to the measurement date 30,179 -
Total 265,461 695,519
Year ending Net deferred outflows/
September 30, (inflows) of resources
2026 (91,304)$
2027 (109,655)
2028 (144,462)
2029 (96,149)
2030 (18,667)
Total (460,237)
City of Allen, Texas
Notes to the Financial Statements
83
These liabilies include an esmate for incurred but not reported claims. The esmated amount at
September 30, 2025, was $1,057,776. Changes in the Risk Management liability during the past ve scal
years were as follows:
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 2025, the City contributed $1,359,223 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 2025, the City contributed $1,553,337 for property and general liability.
K. Tax Abatements and Economic Incenves
The City enters into economic development agreements designed to promote development and
redevelopment within the City, spur economic improvement, smulate commercial acvity, generate
addional sales tax, and enhance the property tax base and economic vitality of the City. These programs
abate or rebate property and sales taxes and include incenve payments and rebates of fees that are not
ed to taxes. The City’s economic development agreements are authorized under Chapter 380 of the Texas
Local Government Code, Chapter 311 (Tax Increment Financing Act), and 312 (Property Redevelopment and
Tax Abatement Act) of the Texas Tax Code. Recipients may be eligible to receive economic assistance based
on the employment impact, economic impact, or community impact of the project requesng assistance.
Recipients of assistance generally commit to building or remodeling real property and related infrastructure,
demolishing and redeveloping outdated properes, expanding operaons, renewing facility leases, or
bringing targeted businesses to the City. Agreements generally contain recapture provisions that may
require repayment or terminaon if recipients do not meet the required provisions of the economic
incenves. The following are the three categories of economic development agreements City has
contracted:
General Economic Development. The City, Allen Economic Development Corporaon, and Allen Community
Development Corporaon enter into various agreements under Chapter 380 of the Texas Local Government
Code to smulate economic development. Agreements may rebate a at amount or percentage of property
taxes or sales tax received, may result in fee reducons or rebates, or make lump sum payments to offset
Balance at Current Year Claims Balance at
Year Ending Beginning of and Changes in Claim End of
September 30, Fiscal Year Estimates Payments Fiscal Year
2021 1,053,311$ 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
2025 1,062,803 10,858,625 10,863,652 1,057,776
City of Allen, Texas
Notes to the Financial Statements
84
moving expenses, tenant nish-outs, demolion costs, infrastructure reimbursements, redevelopment
costs or other expenses. During scal year 2025, the City rebated $5,947,853 in taxes. Addionally, for scal
year 2025, the Allen Economic Development Corporaon rebated taxes in the amount of $70,170 and made
incenve payments of $4,926,101, while the Allen Community Development Corporaon rebated taxes in
the amount of $70,171, and made a grant payment of $425,000.
Signicant Economic Development Projects. During the scal year, the Allen Economic Development
Corporaon purchased a large parcel of land for approximately $43 million for the purpose of an economic
development agreement with a large resort. The Allen Community Development Corporaon contributed
20 million to the purchase while the Allen Economic Development Corporaon funded the remaining
balance. Aer the purchase, the EDC transferred ownership of the land to the City. The economic
development agreement intends to recuperate the cost of the land in a lease where the land is owned by
the City and leased to the resort operator. Due to events in the State legislave session, the original
agreement has been put on hold unl 2027. To date, the City collected $150,000 in rent that has been held
in unearned revenue, as there is a possibility under the agreement for it to be refunded.
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 $88,112 for the scal year ended
September 30, 2025.
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 $847,623 in payments for TIF obligaons during scal year 2025.
L. Commitments and Conngent Liabilies
Ligaon. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City’s legal counsel that resoluon of these maers will not
have a material adverse effect on the nancial condion of the City.
Economic Development Grant. The City has several economic development agreements whereby the City
has agreed to pay a grant(s) to a developer and/or business in return for the design, construcon, operang,
and/or managing of the business within the City of Allen. All grants are performance based and do not
constute liabilies on the City’s nancial records.
85
86
Required Supplementary
Information
87
88
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes
Ad valorem taxes 66,751,327$ 66,751,327$ 66,300,467$ (450,860)$
Sales taxes 32,488,068 32,444,420 32,165,443 (278,977)
Franchise and right-of-way fees 7,684,829 8,021,755 8,063,990 42,235
Licenses, permits and fees 2,733,875 3,618,732 3,959,078 340,346
Charges for services 9,518,206 10,294,438 11,017,245 722,807
Fines and forfeitures 1,573,433 2,832,433 3,004,773 172,340
Intergovernmental 2,049,882 2,609,570 2,960,553 350,983
Investment earnings 3,629,873 3,629,873 5,390,125 1,760,252
Gifts and contributions 2,719,328 2,780,378 2,716,437 (63,941)
Miscellaneous 280,167 242,327 190,270 (52,057)
TOTAL REVENUES 129,428,988 133,225,253 135,768,381 2,543,128
EXPENDITURES
Current
General government 28,739,660 30,905,064 28,595,817 2,309,247
Public safety 65,212,691 65,727,353 67,907,556 (2,180,203)
Public works 9,552,367 10,015,680 8,535,712 1,479,968
Culture and recreation 28,784,457 29,110,694 27,322,867 1,787,827
Community development 5,296,744 5,248,505 4,582,943 665,562
Capital outlay 472,627 534,444 1,825,826 (1,291,382)
Debt Service
Principal retirement - 618,584 618,584 -
Interest and fiscal charges - 31,421 31,421 -
TOTAL EXPENDITURES 138,058,546 142,191,745 139,420,726 2,771,019
Excess (deficiency) of revenues
over (under) expenditures (8,629,558) (8,966,492) (3,652,345) 5,314,147
OTHER FINANCING SOURCES (USES)
Transfers in 11,637,517 11,154,886 12,061,851 906,965
Transfers out (2,893,320) (491,812) (5,820,718) (5,328,906)
Leases - - 922,770 922,770
Insurance recoveries 31,600 31,600 421,894 390,294
Proceeds from sale of capital assets - 29,040 33,025 3,985
TOTAL OTHER FINANCING SOURCES (USES) 8,775,797 10,723,714 7,618,822 (3,104,892)
NET CHANGE IN FUND BALANCES 146,239 1,757,222 3,966,477 2,209,255
FUND BALANCES - BEGINNING 34,368,679 34,368,679 34,368,679 -
FUND BALANCES - ENDING 34,514,918$ 36,125,901$ 38,335,156$ 2,209,255$
See Notes to Required Supplementary Information
Budgeted Amounts
For the Year Ended September 30, 2025
Changes in Fund Balance - Budget and Actual
General Fund Schedule of Revenues, Expenditures, and
City of Allen, Texas
89
Measurement year ended December 31,2024 2023 2022 2021
Total pension liability
Service cost 13,985,552$ 12,173,921$ 10,871,510$ 10,401,936$
Interest 22,234,583 20,392,381 18,606,874 17,039,222
Difference in expected and actual experience 5,691,268 4,623,251 5,017,307 4,068,814
Change in assumptions or other inputs - (893,365) - -
Benefit payments, including refunds of employee contributions (11,005,036) (8,815,211) (8,574,676) (8,465,892)
Net change in total pension liability 30,906,367 27,480,977 25,921,015 23,044,080
Total pension liability - beginning of year 327,910,968 300,429,991 274,508,976 251,464,896
Total pension liability - end of year (a)358,817,335$ 327,910,968$ 300,429,991$ 274,508,976$
Plan fiduciary net position
Contributions - employer 12,068,562$ 10,143,549$ 9,488,440$ 8,906,713$
Contributions - employee 5,271,883 4,771,413 4,281,593 4,111,437
Net investment income (loss) 29,639,869 28,972,918 (19,290,735) 29,958,269
Benefit payments, including refunds of employee contributions (11,005,036) (8,815,211) (8,574,676) (8,465,892)
Administrative expense (189,678) (183,894) (166,644) (138,398)
Other (4,437) (1,284) 198,855 949
Net change in plan fiduciary net position 35,781,163 34,887,491 (14,063,167) 34,373,078
Plan fiduciary net position - beginning of year 284,640,415 249,752,924 263,816,091 229,443,013
Plan fiduciary net position - end of year (b)320,421,578$ 284,640,415$ 249,752,924$ 263,816,091$
Plan pension liability - ending (a) - (b)38,395,757$ 43,270,553$ 50,677,067$ 10,692,885$
Plan fiduciary net position as a % of total pension liability 89.30% 86.80% 83.13% 96.10%
Covered payroll 75,312,613$ 68,163,049$ 61,007,354$ 58,734,814$
Net pension liability as a % of covered payroll 50.98% 63.48% 83.07% 18.21%
City of Allen, Texas
Schedule of Change is Net Pension Liability and Related Ratios - Retirement Plan (TMRS)
Last Ten Measurement Years
90
2020 2019 2018 2017 2016 2015
9,715,534$ 9,118,332$ 8,503,427$ 8,091,540$ 7,740,829$ 7,377,440$
15,828,804 14,492,431 13,379,960 12,232,446 11,165,087 10,562,818
1,564,808 (680) 1,293,282 894,580 196,259
735,396) 409,038 - -- (231,950)
5,974,169) (6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435)
18,834,773 19,388,613 16,660,477 17,193,500 15,898,007 14,657,132
232,630,123 213,241,510 196,581,033 179,387,533 163,489,526 148,832,394
251,464,896$ 232,630,123$ 213,241,510$ 196,581,033$ 179,387,533$ 163,489,526$
8,425,764$ 8,050,585$ 7,423,200$ 7,130,557$ 6,473,617$ 6,063,051$
3,850,652 3,661,981 3,423,774 3,274,594 3,129,050 3,021,766
15,770,860 27,097,746 (5,239,779) 20,569,321 9,039,319 188,559
5,974,169) (6,195,996) (5,222,230) (4,423,768) (3,902,489) (3,247,435)
101,906) (152,888) (101,162) (106,520) (102,024) (114,830)
3,976) (4,592) (5,284) (5,400) (5,497) (5,671)
21,967,225 32,456,836 278,519 26,438,784 14,631,976 5,905,440
207,475,788 175,018,952 174,740,433 148,301,649 133,669,673 127,764,233
229,443,013$ 207,475,788$ 175,018,952$ 174,740,433$ 148,301,649$ 133,669,673$
22,021,883$ 25,154,335$ 38,222,558$ 21,840,600$ 31,085,884$ 29,819,853$
91.24% 89.19% 82.08% 88.89% 82.67% 81.76%
54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$ 44,410,952$ 43,142,910$
40.07% 48.08% 78.30% 46.99% 70.00% 69.12%
91
Fiscal year ended September 30, 2025 2024 2023 2022
Actuarially determined contributions 12,525,281$ 10,638,139$ 9,556,198$ 8,810,782$
Contributions in relation to actuarially determined contributions (12,525,281) (11,266,720) (9,866,638) (8,810,782)
Contribution deficiency (excess)-$(628,581)$ (310,440)$ -$
Covered payroll 78,921,012$ 70,846,166$ 66,253,024$ 66,253,024$
Contributions as a percentage of covered payroll 15.87% 15.90% 14.89% 13.30%
Notes to Schedule of pension 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:There were no benefit changes during the year.
Level percentage of payroll, closed
21 years (longest amortization ladder)
10 years smoothed fair value; 12% soft corridor
2.50%
3.60 % to 11.85% including inflation
6.75%
Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by
103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis
by the most recent Scale MP-2021 (with immediate convergence).
Pre-retirement: PUB(10) mortality tables, with the 110% of the Public Safety table used for males
and the 100% of the General Employee table used for females. The rates are projected on a fully
generational basis by the most recent Scale MP-2021 (with immediate convergence).
Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the
2023 valuation pursuant to an experience study of the period ending 2022.
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.
92
2021 2020 2019 2018 2017 2016
8,333,070$ 7,555,689$ 7,228,643$ 6,678,295$ 6,217,858$ 6,028,939$
8,739,669) (7,890,278) (7,736,900) (6,927,485) (6,545,488) (6,181,797)
406,599)$ (334,589)$ (508,257)$ (249,190)$ (327,630)$ (152,858)$
58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$ 45,962,313$ 43,564,466$
14.97% 14.63% 15.00% 14.50% 14.24% 14.19%
93
Measurement year ended December 31,2024 2023 2022
Total OPEB liability 3
Service cost 112,969$ 109,061$ 176,921$
Interest 72,842 68,932 46,027
Difference in expected and actual experience (24,150) (11,425) 903
Change in assumptions or other inputs (111,564) 97,465 (960,097)
Benefit payments
2 (
37,656) (34,082) (24,403)
Net change in total OPEB liability 12,441 229,951 (760,649)
Total OPEB liability - beginning of year 1,894,498 1,664,547 2,425,196
Total OPEB liability - end of year 1,906,939$ 1,894,498$ 1,664,547$
Covered-employee payroll 75,312,613$ 68,163,049$ 61,007,654$
Total OPEB liability as a percentage of covered-employee payroll 2.53% 2.78% 2.73%
Notes to the Schedule:
3 There are no assets accumulated in trust to pay related benefits for the OPEB plan.
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.
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.
Last Ten Measurement Years
Schedule of Change in Total OPEB Liability and Related Ratios - Supplemental Death Benefits Fund
City of Allen, Texas
94
2021 2020 2019 2018 2017 1
170,331$ 126,390$ 94,165$ 97,628$ 83,658$
44,623 49,783 56,186 45,926 42,992
7,796) (78,736) (183,037) 101,506 -
83,821 315,925 317,781 (111,311) 121,271
23,494) (5,495) (5,231) (4,881) (4,648)
267,485 407,867 279,864 128,868 243,273
2,157,711 1,749,844 1,469,980 1,341,112 1,097,839
2,425,196$ 2,157,711$ 1,749,844$ 1,469,980$ 1,341,112$
58,734,814$ 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$
4.13% 3.93% 3.34% 3.01% 2.89%
95
Fiscal year ended September 30, 2 2025 2024 2023 2022
Actuarially determined contributions 39,461$ 35,423$ 31,627$ 24,889$
Contributions in relation to actuarially determined contributions (39,461) (35,423) (31,627) (24,889)
Contribution deficiency (excess)-$ -$ -$ -$
Covered-employee payroll 78,921,012$ 70,846,166$ 66,253,024$ 62,223,037$
Contributions as a percentage of covered-employee payroll 0.05% 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.
96
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%
97
98
City of Allen, Texas
Notes to Required Supplementary Information
For the Fiscal Year Ended September 30, 2025
99
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, Debt Service Fund, Hotel Occupancy Tax
Fund, Asset Forfeiture Fund, Special Revenue Fund, Grants Fund, and Tax Increment Financing
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 fund level.
6. Formal budgetary integration is not employed for 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 Capital Projects Funds has not been presented in the accompanying basic
financial statements because such funds are budgeted over the life of the 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.
100
Combining and Budgetary
Comparison Schedules
101
102
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes
Ad valorem taxes 20,396,378$ 20,396,378$ 20,037,062$ (359,316)$
Investment earnings 258,582 258,582 534,186 275,604
TOTAL REVENUES 20,654,960 20,654,960 20,571,248 (83,712)
EXPENDITURES
Debt Service
Principal retirement 12,725,000 12,725,000 12,750,000 (25,000)
Interest and fiscal charges 8,287,828 8,287,828 8,314,839 (27,011)
Issuance costs - -43,042 (43,042)
TOTAL EXPENDITURES 21,012,828 21,012,828 21,107,881 (95,053)
Excess of revenues over expenditures (357,868) (357,868) (536,633) 11,341
OTHER FINANCING SOURCES (USES)
Issuance of bonds - - 3,055,000 3,055,000
Premium on bonds issued - - 133,761 133,761
Payment to escrow agent - -(3,156,970) (3,156,970)
TOTAL OTHER FINANCING SOURCES (USES) - -31,791 31,791
NET CHANGE IN FUND BALANCES (357,868) (357,868) (504,842) (146,974)
FUND BALANCES - BEGINNING 4,388,795 4,388,795 4,388,795 -
FUND BALANCES - ENDING 4,030,927$ 4,030,927$ 3,883,953$ (146,974)$
Budgeted Amounts
For the Year Ended September 30, 2025
Changes in Fund Balance - Budget and Actual
Debt Service Fund Schedule of Revenues, Expenditures, and
City of Allen, Texas
103
104
105
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 2,624,246$ 365,094$ 3,004,530$
Investments 170,946 - -
Receivables, net of allowances for uncollectibles
Franchise and right-of-way fees - - 18,063
Accounts receivable 204,589 - -
Accrued interest 1,091 - -
Due from other governments - --
TOTAL ASSETS 3,000,872$ 365,094$ 3,022,593$
LIABILITIES
Accounts payable 121,695 5,285 -
Accrued liabilities 18,735 119,404 -
Unearned revenue - --
TOTAL LIABILITIES 140,430 124,689 -
FUND BALANCES
Restricted
Tourism 2,860,442 - -
State and federal grants - - -
Park acquisition and development - - -
Tax increment financing agreement - - -
Other purposes -240,405 3,022,593
TOTAL FUND BALANCES 2,860,442 240,405 3,022,593
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 3,000,872$ 365,094$ 3,022,593$
City of Allen, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2025
Special Revenue
106
Total
Park Tax Nonmajor
Grants Dedication Gift Increment Governmental
Fund Fund Fund Financing Fund Funds
277,674$ 2,233,095$ 238,241$ 10,562,915$ 19,305,795$
3,292,792 3,463,738
18,063
204,589
21,008 22,099
235,211 - --235,211
512,885$ 2,233,095$ 238,241$ 13,876,715$ 23,249,495$
64,910 1,044 19,695 - 212,629
138,139
209,461 - --209,461
274,371 1,044 19,695 -560,229
2,860,442
238,514 - - - 238,514
2,232,051 - - 2,232,051
13,876,715 13,876,715
218,546 -3,481,544
238,514 2,232,051 218,546 13,876,715 22,689,266
512,885$ 2,233,095$ 238,241$ 13,876,715$ 23,249,495$
Special Revenue
107
Hotel Asset Special
Occupancy Forfeiture Revenue
Tax Fund Fund Fund
REVENUES
Taxes
Ad valorem taxes -$ -$ -$
Sales taxes - - -
Franchise and right-of-way fees - - 70,421
Hotel occupancy taxes 2,696,118 - -
Licenses, permits and fees 25,388 - 604,540
Fines and forfeitures - 241,823 271,843
Intergovernmental - - -
Investment earnings 86,579 7,494 7,135
Gifts and contributions - - -
TOTAL REVENUES 2,808,085 249,317 953,939
EXPENDITURES
Current
General government - - 128,847
Public safety - 148,875 -
Culture and recreation 2,203,404 - -
Community development - - -
Capital outlay - - 22,315
TOTAL EXPENDITURES 2,203,404 148,875 151,162
Excess (deficiency) of revenues
over (under) expenditures 604,681 100,442 802,777
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out (350,000) - -
Proceeds from sale of capital assets - 9,223 -
TOTAL OTHER FINANCING SOURCES (USES) (350,000) 9,223 -
NET CHANGE IN FUND BALANCES 254,681 109,665 802,777
FUND BALANCES - 9/30/2024 2,605,761 130,740 2,219,816
FUND BALANCES - 9/30/2025 2,860,442$ 240,405$ 3,022,593$
City of Allen, Texas
Combining Statement of Revenues, Expenditures, and
For the Year Ended September 30, 2025
Special Revenue
Changes in Fund Balances - Nonmajor Governmental Funds
108
Total
Park Tax Nonmajor
Grants Dedication Gift Increment Governmental
Fund Fund Fund Financing Fund Funds
2,947,161$ 2,947,161
223,718 223,718
70,421
2,696,118
274,770 - - 904,698
513,666
1,147,789 - - 227,513 1,375,302
33,966 4,406 406,873 546,453
154,349 - 154,349
1,147,789 308,736 158,755 3,805,265 9,431,886
232,930 - - 4,646,888 5,008,665
136,269 - 67,792 - 352,936
5,365 - 3,369 - 2,212,138
622,719 - - - 622,719
165,835 5,040 131,577 - 324,767
1,163,118 5,040 202,738 4,646,888 8,521,225
15,329) 303,696 (43,983) (841,623) 910,661
15,329 - - - 15,329
34,000) (384,000)
9,223
15,329 - - (34,000) (359,448)
303,696 (43,983) (875,623) 551,213
238,514 1,928,355 262,529 14,752,338 22,138,053
238,514$ 2,232,051$ 218,546$ 13,876,715$ 22,689,266$
Special Revenue
109
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes
Hotel occupancy taxes 2,418,156$ 2,550,000$ 2,696,118$ 146,118$
Licenses, permits and fees - 17,000 25,388 8,388
Investment earnings 64,750 64,750 86,579 21,829
TOTAL REVENUES 2,482,906 2,631,750 2,808,085 176,335
EXPENDITURES
Current
Culture and recreation 2,510,709 2,461,981 2,203,404 258,577
TOTAL EXPENDITURES 2,510,709 2,461,981 2,203,404 258,577
Excess (deficiency) of revenues
over (under) expenditures (27,803) 169,769 604,681 (82,242)
OTHER FINANCING SOURCES (USES)
Transfers out - - (350,000) 350,000
TOTAL OTHER FINANCING SOURCES (USES) - - (350,000) 350,000
NET CHANGE IN FUND BALANCES (27,803) 169,769 254,681 267,758
FUND BALANCES - BEGINNING 2,605,761 2,605,761 2,605,761 -
FUND BALANCES - ENDING 2,577,958$ 2,775,530$ 2,860,442$ 84,912$
City of Allen, Texas
Hotel Occupancy Tax Fund Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2025
Budgeted Amounts
110
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Fines and forfeitures 185,000$ 185,000$ 241,823$ 56,823$
Investment earnings 5,559 5,559 7,494 1,935
Miscellaneous - - - -
TOTAL REVENUES 190,559 190,559 249,317 58,758
EXPENDITURES
Current
Public safety 32,687 123,687 148,875 (25,188)
TOTAL EXPENDITURES 32,687 123,687 148,875 (25,188)
Excess (deficiency) of revenues
over (under) expenditures 157,872 66,872 100,442 33,570
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 9,223 9,223
TOTAL OTHER FINANCING SOURCES (USES) - - 9,223 9,223
NET CHANGE IN FUND BALANCES 157,872 66,872 109,665 42,793
FUND BALANCES - BEGINNING 130,740 130,740 130,740 -
FUND BALANCES - ENDING 288,612$ 197,612$ 240,405$ 42,793$
City of Allen, Texas
Asset Forfeiture Fund Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2025
Budgeted Amounts
111
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes
Franchise and right-of-way fees 115,357$ 93,507$ 70,421$ (23,086)$
Licenses, permits and fees - - 604,540 604,540
Fines and forfeitures 107,851 230,000 271,843 41,843
Investment earnings 27,919 27,919 7,135 (20,784)
TOTAL REVENUES 251,127 351,426 953,939 602,513
EXPENDITURES
Current
General government 35,000 212,256 128,847 83,409
Capital outlay - 23,169 22,315 854
TOTAL EXPENDITURES 35,000 235,425 151,162 84,263
Excess (deficiency) of revenues
over (under) expenditures 216,127 116,001 802,777 686,776
OTHER FINANCING SOURCES (USES)
Transfers out (77,201) - - -
TOTAL OTHER FINANCING SOURCES (USES) (77,201) - - -
NET CHANGE IN FUND BALANCES 138,926 116,001 802,777 686,776
FUND BALANCES - BEGINNING 2,219,816 2,219,816 2,219,816 -
FUND BALANCES - ENDING 2,358,742$ 2,335,817$ 3,022,593$ 686,776$
City of Allen, Texas
Special Revenue Fund Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2025
Budgeted Amounts
112
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 795,310$ 1,387,401$ 1,147,789$ (239,612)$
TOTAL REVENUES 795,310 1,387,401 1,147,789 (239,612)
EXPENDITURES
Current
General government 152,150 258,653 232,930 25,723
Public safety 164,660 196,770 136,269 60,501
Culture and recreation 1,800 5,365 5,365 -
Community development 408,000 775,625 622,719 152,906
Capital outlay 70,000 167,800 165,835 1,965
TOTAL EXPENDITURES 796,610 1,404,213 1,163,118 241,095
Excess (deficiency) of revenues
over (under) expenditures (1,300) (16,812) (15,329) 1,483
OTHER FINANCING SOURCES (USES)
Transfers in 1,300 16,812 15,329 (1,483)
TOTAL OTHER FINANCING SOURCES (USES) 1,300 16,812 15,329 (1,483)
NET CHANGE IN FUND BALANCES - - - -
FUND BALANCES - BEGINNING 238,514 238,514 238,514 -
FUND BALANCES - ENDING 238,514$ 238,514$ 238,514$ -$
City of Allen, Texas
Grants Fund Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2025
Budgeted Amounts
113
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes
Ad velorem taxes 3,009,201$ 2,947,161$ 2,947,161$ -$
Sales taxes 222,674 192,000 223,718 31,718
Intergovernmental 190,660 227,513 227,513 -
Investment earnings 173,702 231,059 406,873 175,814
TOTAL REVENUES 3,596,237 3,597,733 3,805,265 207,532
EXPENDITURES
Current
General government 755,760 4,646,889 4,646,888 1
TOTAL EXPENDITURES 755,760 4,646,889 4,646,888 1
Excess (deficiency) of revenues
over (under) expenditures 2,840,477 (1,049,156) (841,623) 207,531
OTHER FINANCING SOURCES (USES)
Transfers out (34,000) (34,000) (34,000) -
TOTAL OTHER FINANCING SOURCES (USES) (34,000) (34,000) (34,000) -
NET CHANGE IN FUND BALANCES 2,806,477 (1,083,156) (875,623) 207,533
FUND BALANCES - BEGINNING 14,752,338 14,752,338 14,752,338 -
FUND BALANCES - ENDING 17,558,815$ 13,669,182$ 13,876,715$ 207,533$
City of Allen, Texas
Tax Increment Financing Fund Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2025
Budgeted Amounts
114
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.
Total Nonmajor
Solid Golf Enterprise
Waste Drainage Course Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,633,273$ 1,468,986$ 4,464,647$ 7,566,906$
Investments -- 722,384 722,384
Receivables, net of allowances for uncollectibles:
Accounts 1,709,296 373,680 85,199 2,168,175
Accrued Interest -- 4,609 4,609
Inventories - -44,548 44,548
TOTAL CURRENT ASSETS 3,342,569 1,842,666 5,321,387 10,506,622
NONCURRENT ASSETS
CAPITAL ASSETS
Other improvements -1,230,546 - 1,230,546
Machinery and equipment -741,956 2,309,641 3,051,597
Vehicles 189,369 352,151 - 541,520
Less: accumulated depreciation/amortization (138,311) (1,118,327) (1,267,402) (2,524,040)
TOTAL NONCURRENT ASSETS 51,058 1,206,326 1,042,239 2,299,623
TOTAL ASSETS 3,393,627 3,048,992 6,363,626 12,806,245
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - pension 129,594 138,986 332,439 601,019
Deferred outflows of resources - OPEB 1,831 1,964 4,698 8,493
TOTAL DEFERRED OUTFLOWS OF RESOURCES 131,425 140,950 337,137 609,512
LIABILITIES
CURRENT LIABILITIES
Accounts payable 305,752 17,189 160,280 483,221
Accrued liabilities 191,338 27,123 81,947 300,408
Financing arrangements - current -- 15,663 15,663
Leases - current -- 182,466 182,466
Compensated absences - current 12,934 19,296 41,197 73,427
Total OPEB liability - current 277 297 712 1,286
Unearned revenue - -97,790 97,790
TOTAL CURRENT LIABILITIES 510,301 63,905 580,055 1,154,261
NONCURRENT LIABILITIES
Leases -- 498,059 498,059
Net pension liability 264,931 284,129 679,605 1,228,665
Total OPEB liability 12,881 13,814 33,041 59,736
Compensated absences 51,831 66,746 136,647 255,224
TOTAL NONCURRENT LIABILITIES 329,643 364,689 1,347,352 2,041,684
TOTAL LIABILITIES 839,944 428,594 1,927,407 3,195,945
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 28,565 30,634 73,275 132,474
Deferred inflows of resources - OPEB 4,799 5,147 12,311 22,257
TOTAL DEFERRED INFLOWS OF RESOURCES 33,364 35,781 85,586 154,731
NET POSITION
Net investment in capital assets 51,058 1,206,326 320,013 1,577,397
Unrestricted 2,600,686 1,519,241 4,367,757 8,487,684
TOTAL NET POSITION 2,651,744$ 2,725,567$ 4,687,770$ 10,065,081$
City of Allen, Texas
Combining Statement of Net Position - Nonmajor Enterprise Funds
September 30, 2025
Enterprise Funds
116
Previously
reported as
nonmajor: Total Nonmajor
Solid Golf Allen Event Enterprise
Waste Drainage Course Center Funds
OPERATING REVENUES
Charges for services:
Garbage collections 8,980,407$ -$ -$ -$ 8,980,407$
Service charges - 78,578 5,407,762 - 5,486,340
Drainage fees - 2,308,534 - - 2,308,534
Insurance recoveries - - 16,566 - 16,566
Miscellaneous 36,557 400 73,981 - 110,938
TOTAL OPERATING REVENUES 9,016,964 2,387,512 5,498,309 - 16,902,785
OPERATING EXPENSES
Personnel services 781,777 916,770 2,223,279 - 3,921,826
Contractual services 7,148,254 493,434 1,336,976 - 8,978,664
Maintenance 7,625 316,852 190,073 - 514,550
Supplies 46,485 78,982 320,743 - 446,210
Depreciation and amortization 19,110 158,856 242,125 - 420,091
TOTAL OPERATING EXPENSES 8,003,251 1,964,894 4,313,196 - 14,281,341
OPERATING INCOME 1,013,713 422,618 1,185,113 - 2,621,444
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 53,895 42,437 106,838 - 203,170
Interest expense - - (38,517) - (38,517)
Gain on disposal of capital assets - - 7,652 - 7,652
TOTAL NON-OPERATING REVENUES (EXPENSES) 53,895 42,437 75,973 - 172,305
INCOME BEFORE TRANSFERS 1,067,608 465,055 1,261,086 - 2,793,749
TRANSFERS
Transfers in - - 1,400 - 1,400
Transfers out (1,566,400) (501,633) - - (2,068,033)
TOTAL TRANSFERS (1,566,400) (501,633) 1,400 - (2,066,633)
CHANGE IN NET POSITION (498,792) (36,578) 1,262,486 - 727,116
NET POSITION - 9/30/2024 3,083,873 2,769,454 3,353,233 (399,302) 8,807,258
Change in accounting principle - GASB 101 66,663 (7,309) 72,051 (104,000) 27,405
Change in reporting entity - nonmajor to major - - - 503,302 503,302
NET POSITION - 9/30/2024, as restated 3,150,536 2,762,145 3,425,284 - 9,337,965
NET POSITION - 9/30/2025 2,651,744$ 2,725,567$ 4,687,770$ -$ 10,065,081$
City of Allen, Texas
Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds
For the year ended September 30, 2025
Enterprise Funds
117
Total Nonmajor
Solid Golf Enterprise
Waste Drainage Course Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 8,648,652$ 2,377,068$ 5,507,558$ 16,533,278$
Cash paid to employees for salaries and benefits (714,122) (870,673) (2,173,641) (3,758,436)
Cash paid for goods and services (7,207,820) (888,699) (1,912,834) (10,009,353)
NET CASH PROVIDED BY OPERATING ACTIVITIES 726,710 617,696 1,421,083 2,765,489
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in from other funds - - 1,400 1,400
Transfers out to other funds (1,566,400) (501,633) - (2,068,033)
NET CASH PROVIDED BY (USED FOR) NON-CAPITAL
FINANCING ACTIVITIES (1,566,400) (501,633) 1,400 (2,066,633)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (49,102) (164,641) (401,946) (615,689)
Proceeds from sale of capital assets - - 7,652 7,652
Principal paid on capital debt - - (188,852) (188,852)
Interest and fees paid on capital debt - - (38,517) (38,517)
NET CASH USED IN CAPITAL AND RELATED
FINANCING ACTIVITIES (49,102) (164,641) (621,663) (835,406)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 53,895 42,437 107,439 203,771
Proceeds from sale of investments - - 631,335 631,335
NET CASH PROVIDED BY INVESTING ACTIVITIES 53,895 42,437 738,774 835,106
NET CHANGE IN CASH AND CASH EQUIVALENTS (834,897) (6,141) 1,539,594 698,556
CASH AND CASH EQUIVALENTS - BEGINNING 2,468,170 1,475,127 2,925,053 6,868,350
CASH AND CASH EQUIVALENTS - ENDING 1,633,273$ 1,468,986$ 4,464,647$ 7,566,906$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income 1,013,713$ 422,618$ 1,185,113$ 2,621,444$
Adjustments to reconcile income to net cash provided
by operating activities:
Depreciation and amortization expense 19,110 158,856 242,125 420,091
Increase) decrease in accounts receivable (368,312) (10,444) (6,482) (385,238)
Increase) decrease in inventories - - (12,457) (12,457)
Increase) decrease in pension related deferred outflows 55,047 27,191 96,850 179,088
Increase) decrease in OPEB related deferred outflows 1,340 890 2,675 4,905
Increase (decrease) in accounts payable (5,456) 569 (52,585) (57,472)
Increase (decrease) in accrued liabilities 64,790 10,968 30,620 106,378
Increase (decrease) in unearned revenue - - 15,731 15,731
Increase (decrease) in net pension liability (81,233) (27,419) (125,227) (233,879)
Increase (decrease) in total OPEB liability (1,998) 471 (1,485) (3,012)
Increase (decrease) in compensated absences 9,144 9,734 (9,622) 9,256
Increase (decrease) in pension related deferred inflows 22,041 24,762 58,106 104,909
Increase (decrease) in OPEB related deferred inflows (1,476) (500) (2,279) (4,255)
Total adjustments (287,003) 195,078 235,970 144,045
NET CASH PROVIDED BY OPERATING ACTIVITIES 726,710$ 617,696$ 1,421,083$ 2,765,489$
NON-CASH INVESTING ACTIVITIES
Initiation of capital asset lease - - 190,292 190,292
CASH AND CASH EQUIVALENTS - END OF YEAR 1,633,273$ 1,468,986$ 4,464,647$ 7,566,906$
City of Allen, Texas
Combining Statement of Cash Flows - Nonmajor Enterprise Funds
For the year ended September 30, 2025
Enterprise Funds
118
119
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 16,994,571$ 8,456,537$ 6,882,370$ 32,333,478$
Investments 1,846,522 5,604,624 264,861 7,716,007
Receivables, net of allowances for uncollectibles:
Accounts -549,415 -549,415
Accrued Interest 11,781 35,758 1,690 49,229
Prepaid items -166,290 -166,290
TOTAL CURRENT ASSETS 18,852,874 14,812,624 7,148,921 40,814,419
NONCURRENT ASSETS
CAPITAL ASSETS
Construction in Progress 2,151,441 -912,185 3,063,626
Other improvements --68,257 68,257
Machinery and equipment 7,518,121 --7,518,121
Vehicles 28,556,940 --28,556,940
Less: accumulated depreciation (23,281,028) -(6,826) (23,287,854)
TOTAL NONCURRENT ASSETS 14,945,474 -973,616 15,919,090
TOTAL ASSETS 33,798,348$ 14,812,624$ 8,122,537$ 56,733,509$
LIABILITIES
CURRENT LIABILITIES
Accounts payable 49,786 646,886 233,777 930,449
Accrued liabilities -20,930 -20,930
Retainage payable --38,632 38,632
Incurred but not reported claims -1,057,776 -1,057,776
TOTAL LIABILITIES 49,786 1,725,592 272,409 2,047,787
NET POSITION
Net investment in capital assets 14,637,473 -973,616 15,611,089
Unrestricted 19,111,089 13,087,032 6,876,512 39,074,633
TOTAL NET POSITION 33,748,562$ 13,087,032$ 7,850,128$ 54,685,722$
City of Allen, Texas
Combining Statement of Net Position - Internal Service Funds
September 30, 2025
120
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
OPERATING REVENUES
Charges for services 2,622,677$ 17,338,159$ 1,800,000$ 21,760,836$
Insurance recoveries 20,056 2,095,624 7,300 2,122,980
Miscellaneous 15 - - 15
TOTAL OPERATING REVENUES 2,642,748 19,433,783 1,807,300 23,883,831
OPERATING EXPENSES
Personnel services - 613,603 - 613,603
Contractual services 26,626 18,173,487 16,627 18,216,740
Maintenance - 4,133 574,306 578,439
Supplies 123,218 11,402 516 135,136
Depreciation and amortization 3,540,878 -6,826 3,547,704
TOTAL OPERATING EXPENSES 3,690,722 18,802,625 598,275 23,091,622
OPERATING INCOME (LOSS) (1,047,974) 631,158 1,209,025 792,209
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 644,683 445,153 48,003 1,137,839
Gain (loss) on disposal of capital assets 361,254 - -361,254
TOTAL NON-OPERATING REVENUES (EXPENSES) 1,005,937 445,153 48,003 1,499,093
CHANGE IN NET POSITION (42,037) 1,076,311 1,257,028 2,291,302
NET POSITION - 9/30/2024 33,790,599 12,010,721 6,593,100 52,394,420
NET POSITION - 9/30/2025 33,748,562$ 13,087,032$ 7,850,128$ 54,685,722$
City of Allen, Texas
Combining Statement of Revenues, Expenses and
For the year ended September 30, 2025
Changes in Net Position - Internal Service Funds
121
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 20,071$ 2,095,624$ -$ 2,115,695$
Cash received from transactions with other funds 2,672,925 16,825,514 1,807,300 21,305,739
Cash paid to employees for salaries and benefits - (605,063) - (605,063)
Cash paid for goods and services (445,555) - (440,033) (885,588)
Cash paid for claims - (17,607,170) - (17,607,170)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,247,441 708,905 1,367,267 4,323,613
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (6,105,633) - (958,347) (7,063,980)
Proceeds from sale of capital assets 361,254 - - 361,254
NET CASH USED IN CAPITAL AND RELATED
FINANCING ACTIVITIES (5,744,379) - (958,347) (6,702,726)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 648,677 428,347 48,223 1,125,247
Proceeds from sale of investments 2,252,607 (679,938) 231,478 1,804,147
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,901,284 (251,591) 279,701 2,929,394
NET CHANGE IN CASH AND CASH EQUIVALENTS (595,654) 457,314 688,621 550,281
CASH AND CASH EQUIVALENTS - BEGINNING 17,590,225 7,999,223 6,193,749 31,783,197
CASH AND CASH EQUIVALENTS - ENDING 16,994,571$ 8,456,537$ 6,882,370$ 32,333,478$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income (loss) (1,047,974)$ 631,158$ 1,209,025$ 792,209$
Adjustments to reconcile income (loss) to net cash provided
by operating activities:
Depreciation and amortization expense 3,540,878 - 6,826 3,547,704
Increase) decrease in accounts receivable 50,248 (512,645) - (462,397)
Increase) decrease in prepaid items - 56,021 - 56,021
Increase (decrease) in accounts payable (295,711) 530,858 134,651 369,798
Increase (decrease) in retainage payable - - 16,765 16,765
Increase (decrease) in accrued liabilities - 8,540 - 8,540
Increase (decrease) in incurred but not reported claims - (5,027) - (5,027)
Total adjustments 3,295,415 77,747 158,242 3,531,404
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,247,441$ 708,905$ 1,367,267$ 4,323,613$
City of Allen, Texas
Combining Statement of Cash Flows - Internal Service Funds
For the year ended September 30, 2025
122
123
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 10,681,757$ 8,206,353$ 18,888,110$
Investments 4,240,266 2,398,545 6,638,811
Receivables, net of allowances for uncollectibles
Sales taxes 2,750,522 2,750,522 5,501,044
Accounts receivable 10,009 - 10,009
Accrued interest 27,053 15,303 42,356
Prepaid items 5,000 65,000 70,000
TOTAL ASSETS 17,714,607$ 13,435,723$ 31,150,330$
LIABILITIES
Accounts payable 350,247 604,748 954,995
Accrued liabilities 41,804 8,169 49,973
Retainage payable - 213,621 213,621
TOTAL LIABILITIES 392,051 826,538 1,218,589
FUND BALANCES
Nonspendable
Prepaid items 5,000 65,000 70,000
Restricted
Debt service 2,277,604 2,411,518 4,689,122
Unassigned 15,039,952 10,132,667 25,172,619
TOTAL FUND BALANCES 17,322,556 12,609,185 29,931,741
TOTAL LIABILITIES AND FUND BALANCES 17,714,607$ 13,435,723$ 31,150,330$
City of Allen, Texas
Balance Sheet - Discretely Presented Component Units
September 30, 2025
124
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 17,322,556$ 12,609,185$
41,164,530 100,081,576
326,330) (45,652,134)
Sales tax revenue bonds payable (5,670,000) (15,040,000)
Accrued interest payable on long-term debt (15,142)(34,543)
Premiums on general obligation bonds (145,792) -
Net position of governmental activities 52,329,822$ 51,964,084$
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, 2025
125
Allen Allen
Economic Community
Development Development
Corporation Corporation Total
REVENUES
Taxes
Sales taxes 15,936,483$ 15,936,483$ 31,872,966$
Intergovernmental 20,000,000 - 20,000,000
Investment earnings 704,702 770,272 1,474,974
Miscellaneous 4,461,338 -4,461,338
TOTAL REVENUES 41,102,523 16,706,755 57,809,278
EXPENDITURES
Current
Economic development 8,791,742 20,000,000 28,791,742
Community development - 4,844,149 4,844,149
Culture and recreation - 3,885,444 3,885,444
Public works - 75,000 75,000
Capital outlay 50,673,601 3,041,521 53,715,122
Debt Service
Principal retirement 1,580,000 1,935,000 3,515,000
Interest and fiscal charges 257,400 478,499 735,899
TOTAL EXPENDITURES 61,302,743 34,259,613 95,562,356
Excess (deficiency) of revenues
over (under) expenditures (20,200,220) (17,552,858) (37,753,078)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 17,599,486 -17,599,486
TOTAL OTHER FINANCING SOURCES (USES) 17,599,486 -17,599,486
NET CHANGE IN FUND BALANCES (2,600,734) (17,552,858) (20,153,592)
FUND BALANCES - 9/30/2024 19,923,290 30,162,043 50,085,333
FUND BALANCES - 9/30/2025 17,322,556$ 12,609,185$ 29,931,741$
City of Allen, Texas
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Discretely Presented Component Units
For the Year Ended September 30, 2025
126
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 (2,600,734)$ (17,552,858)$
7,605,816 251,931
Gain (loss) on sale of assets (9,314,602) -
Bond and lease principal paid 1,580,000 1,935,000
Amortization of bond premiums 72,895 -
Accrued interest on long-term debt 5,194 3,647
Change in net position of governmental activities (2,651,431)$ (15,362,280)$
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.
The net effect of various miscellaneous transactions involving capitals
assets (i.e. sales, trade-ins, and donations) increases (decreases) net
position.
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, 2025
127
128
Statistical Section
Unaudited)
129
130
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 annual comprehensive financial report presents detailed information as a context
for understanding what the information in the financial statements, notes disclosures, and required
supplementary information says about the City's overall financial health. This information has not been audited
by the independent auditor.
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 30,2025 2024 2023 2022
Governmental activities
Net investment in capital assets 456,007,649$ 404,047,053$ 389,804,091$ 392,949,598$
Restricted 25,672,903 26,737,949 22,260,823 16,101,110
Unrestricted 82,863,013 70,719,947 76,104,550 76,814,254
Total governmental net position 564,543,565$ 501,504,949$ 488,169,464$ 485,864,962$
Business-type activities
Net investment in capital assets 128,406,360$ 125,811,570$ 122,533,611$ 108,374,156$
Restricted 2,501,833 2,336,548 2,634,465 1,230,726
Unrestricted 90,693,798 87,631,740 65,836,910 70,596,998
Total business-type net position 221,601,991$ 215,779,858$ 191,004,986$ 180,201,880$
Primary government
Net investment in capital assets 584,414,009$ 529,858,623$ 512,337,702$ 501,323,754$
Restricted 28,174,736 29,074,497 24,895,288 17,331,836
Unrestricted 173,556,811 158,351,687 141,941,460 147,411,252
Total primary government net position 786,145,556$ 717,284,807$ 679,174,450$ 666,066,842$
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
2021 2020 2019 2018 2017 2016
388,795,081$ 392,368,425$ 391,261,029$ 379,153,944$ 366,322,218$ 364,667,251$
14,807,800 13,891,413 44,872,796 39,588,223 38,303,226 32,485,173
72,520,903 57,821,649 20,238,419 15,312,432 15,902,576 14,435,604
476,123,784$ 464,081,487$ 456,372,244$ 434,054,599$ 420,528,020$ 411,588,028$
113,396,556$ 113,355,391$ 113,459,625$ 103,762,241$ 107,926,811$ 106,174,191$
764,763 513,520 571,053 46,350 195,485 216,664
56,890,299 50,803,699 40,240,619 43,785,615 31,920,455 33,592,809
171,051,618$ 164,672,610$ 154,271,297$ 147,594,206$ 140,042,751$ 139,983,664$
502,191,637$ 505,723,816$ 504,720,654$ 482,916,185$ 474,249,029$ 470,841,442$
15,572,563 14,404,933 45,443,849 39,634,573 38,498,711 32,701,837
129,411,202 108,625,348 60,479,038 59,098,047 47,823,031 48,028,413
647,175,402$ 628,754,097$ 610,643,541$ 581,648,805$ 560,570,771$ 551,571,692$
133
Fiscal year ended September 30,2025 2024 2023 2022
Expenses
Governmental activities:
General government 35,270,238$ 36,583,521$ 29,565,683$ 26,469,412$
Public safety 73,885,692 67,135,182 57,988,034 63,891,672
Public works 28,256,296 29,858,727 27,241,203 9,148,396
Culture and recreation 33,752,858 31,337,978 29,952,582 36,053,830
Community development 6,672,806 6,470,480 6,731,357 5,587,202
Interest on long-term debt 6,966,930 4,022,874 4,966,234 2,312,561
Total governmental activities expenses 184,804,820 175,408,762 156,445,093 143,463,073
Business-type activities:
Water and sewer 58,329,250 57,160,608 54,520,345 46,917,817
Solid waste 8,003,251 7,725,311 7,563,726 7,088,901
Drainage 1,964,894 1,808,497 1,588,923 1,349,306
Golf Course 4,351,713 4,579,932 4,267,842 3,800,645
Allen event center 11,241,568 10,127,154 9,442,654 -
Total business-type activities expenses 83,890,676 81,401,502 77,383,490 59,156,669
Total primary government expenses 268,695,496$ 256,810,264$ 233,828,583$ 202,619,742$
Program Revenues
Governmental activities:
Charges for Services:
General government 6,178,834$ 2,502,305$ 43,068$ 570,560$
Public safety 3,189,697 2,811,849 3,198,388 2,221,519
Public works 3,470,821 1,903,232 247,203 484,796
Culture and recreation 8,568,812 7,116,231 2,949,789 7,154,042
Community development 3,586,453 3,566,062 3,671,645 2,828,805
Operating grants and contributions 9,956,238 10,617,394 3,639,508 5,477,428
Capital grants and contributions 50,629,518 15,764,984 1,675,949 11,162,094
Total governmental activities program revenue 85,580,373 44,282,057 15,425,550 29,899,244
Business-type activities:
Charges for services:
Water and sewer 74,095,681 75,772,356 64,410,519 57,519,014
Solid waste 8,980,407 8,511,164 8,057,287 7,278,382
Drainage 2,387,112 2,417,885 2,333,571 1,984,067
Golf Course 5,407,762 6,685,903 4,666,829 4,502,056
Allen event center 7,748,885 7,997,824 6,849,467 -
Operating grants and contributions 717,436 - - -
Capital grants and contributions 5,809,167 7,014,220 4,267,362 4,072,343
Total business-type activities program revenue 105,146,450 108,399,352 90,585,035 75,355,862
Total primary government program revenues 190,726,823$ 152,681,409$ 106,010,585$ 105,255,106$
Net (Expenses) Revenue
Governmental activities (99,224,447)$ (131,126,705)$ (141,019,543)$ (113,563,829)$
Business-type activities 21,255,774 26,997,850 13,201,545 16,199,193
Total primary government net expenses (77,968,673)$ (104,128,855)$ (127,817,998)$ (97,364,636)$
City of Allen, Texas
Last Ten Fiscal Years
Changes in Net Position (Accrual Basis of Accounting) (Unaudited)
134
Table 2
2021 2020 2019 2018 2017 2016
22,940,360$ 24,937,087$ 21,238,061$ 26,764,210$ 28,251,550$ 25,304,811$
49,532,988 47,369,212 44,993,635 39,213,768 39,624,788 35,199,937
19,661,514 22,393,268 27,039,953 24,161,991 20,209,785 19,083,214
29,359,242 29,015,632 33,287,645 33,791,438 28,968,534 32,851,598
6,330,539 5,238,233 3,160,050 3,079,242 3,007,047 3,251,555
3,103,192 2,745,698 2,888,831 2,920,824 2,980,513 3,356,234
130,927,835 131,699,130 132,608,175 129,931,473 123,042,217 119,047,349
46,442,937 45,524,999 44,511,123 41,134,685 39,527,816 35,604,182
6,824,441 6,525,391 6,248,035 6,223,788 6,078,853 5,870,269
1,497,014 1,555,570 1,396,935 1,260,262 1,193,057 1,146,138
3,557,076 3,166,856 3,332,927 3,397,180 3,135,144 3,089,041
58,321,468 56,772,816 55,489,020 52,015,915 49,934,870 45,709,630
189,249,303$ 188,471,946$ 188,097,195$ 181,947,388$ 172,977,087$ 164,756,979$
598,846$ 509,691$ 500,122$ 525,542$ 497,243$ 467,786$
2,063,311 2,189,114 1,954,810 2,171,332 2,712,076 1,801,984
587,112 725,209 1,485,962 1,333,506 293,559 210,687
4,649,476 3,793,429 9,744,309 9,803,084 8,747,206 10,289,465
4,024,897 2,530,977 4,798,471 4,025,326 4,266,140 3,216,799
4,874,743 3,427,631 2,056,001 2,423,768 2,443,054 1,557,260
8,535,198 10,639,664 19,888,044 18,942,856 15,327,094 16,039,869
25,333,583 23,815,715 40,427,719 39,225,414 34,286,372 33,583,850
49,099,338 49,461,636 43,103,920 42,453,681 37,163,882 36,335,868
7,039,328 7,116,831 7,006,423 6,933,356 6,735,559 6,687,182
1,826,950 2,162,770 1,763,694 1,907,407 1,648,681 1,519,405
4,196,161 3,199,136 3,138,144 2,810,424 2,959,361 2,705,799
5,695,888 8,332,962 10,175,397 9,734,528 5,622,911 6,172,301
67,857,665 70,273,335 65,187,578 63,839,396 54,130,394 53,420,555
93,191,248$ 94,089,050$ 105,615,297$ 103,064,810$ 88,416,766$ 87,004,405$
105,594,252)$ (107,883,415)$ (92,180,456)$ (90,706,059)$ (88,755,845)$ (85,463,499)$
9,536,197 13,500,519 9,698,558 11,823,481 4,195,524 7,710,925
96,058,055)$ (94,382,896)$ (82,481,898)$ (78,882,578)$ (84,560,321)$ (77,752,574)$
135
Fiscal year ended September 30,2025 2024 2023 2022
General Revenues
and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes 89,170,582$ 83,821,874$ 76,465,116$ 74,289,475$
Sales taxes 32,389,161 31,547,688 29,480,960 27,609,918
Franchise taxes 8,134,411 7,735,536 7,573,389 7,481,353
Hotel / Motel taxes 2,696,118 2,481,874 2,382,951 2,074,533
Other taxes - - 1,406,052 1,425,226
Investment earnings 12,197,343 11,035,616 8,614,384 (4,921,824)
Gain on disposition of capital assets 208,205 - - 291,333
Miscellaneous 272,902 162,288 11,688,618 8,689,016
Transfers 20,130,772 7,677,314 5,712,575 6,365,977
Total governmental activities 165,199,494 144,462,190 143,324,045 123,305,007
Business-type activities:
Investment earnings 2,302,787 2,853,701 2,238,213 (1,830,191)
Gain on disposition of capital assets 93,967 9,650 - -
Miscellaneous 2,078,693 2,590,985 1,075,923 1,147,237
Transfers (20,130,772) (7,677,314) (5,712,575) (6,365,977)
Total business-type activities (15,655,325) (2,222,978) (2,398,439) (7,048,931)
Total primary government 149,544,169$ 142,239,212$ 140,925,606$ 116,256,076$
Change in Net Position
Governmental activities 65,975,047$ 13,335,485$ 2,304,502$ 9,741,178$
Business-type activities 5,600,449 24,774,872 10,803,106 9,150,262
Total primary government 71,575,496$ 38,110,357$ 13,107,608$ 18,891,440$
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)
2021 2020 2019 2018 2017 2016
71,946,802$ 70,917,335$ 68,865,078$ 63,929,379$ 58,816,876$ 54,102,952$
25,599,945 21,686,335 21,648,401 20,717,505 19,450,088 19,274,983
6,821,738 7,454,713 7,810,093 7,990,092 7,553,013 7,295,931
1,337,147 1,156,398 1,759,159 1,487,066 1,547,244 1,607,263
1,171,378 1,195,296 2,204,220 1,704,227 1,912,559 1,621,012
1,118,970 4,246,550 4,048,112 944,196 837,577 735,832
322,084 144,347 - 446,117 263,627 -
5,311,149 4,188,530 3,460,124 3,592,229 2,703,964 3,794,277
4,007,336 4,603,154 4,702,914 4,398,244 4,610,889 4,790,072
117,636,549 115,592,658 114,498,101 105,209,055 97,695,837 93,222,322
398,387 1,140,957 1,284,728 210,045 199,508 197,125
7,585 9,713 - 13,228 - 15,503
444,175 353,278 396,719 21,030 274,944 -
4,007,336) (4,603,154) (4,702,914) (4,398,244) (4,610,889) (4,790,072)
3,157,189) (3,099,206) (3,021,467) (4,153,941) (4,136,437) (4,577,444)
114,479,360$ 112,493,452$ 111,476,634$ 101,055,114$ 93,559,400$ 88,644,878$
12,042,297$ 7,709,243$ 22,317,645$ 14,502,996$ 8,939,992$ 7,758,823$
6,379,008 10,401,313 6,677,091 7,669,540 59,087 3,133,481
18,421,305$ 18,110,556$ 28,994,736$ 22,172,536$ 8,999,079$ 10,892,304$
137
Fiscal year ended September 30,2025 2024 2023 2022
General Fund
Nonspendable 63,381$ 36,946$ 141,304$ 28,677$
Restricted 319,736 71,089 67,335 64,234
Assigned - - 922,899 71,742
Unassigned 37,952,039 34,260,644 31,416,575 28,615,271
Total General Fund 38,335,156$ 34,368,679$ 32,548,113$ 28,779,924$
All Other Governmental Funds
Nonspendable -$ -$ -$ 751$
Restricted 129,059,772 139,157,722 62,722,524 66,742,207
Assigned 32,246,956 28,420,359 29,805,326 35,208,805
Unassigned (deficit) - - - -
Total all other governmental funds 161,306,728$ 167,578,081$ 92,527,850$ 101,951,763$
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
2021 2020 2019 2018 2017 2016
145,700$ 8,777$ 209,323$ 25,747$ 126,833$ 2,129$
63,627 63,185 61,304 59,386 58,910 907,908
2,000,000 -
27,554,966 26,826,184 25,744,069 23,626,108 19,684,053 20,911,943
27,764,293$ 26,898,146$ 26,014,696$ 23,711,241$ 21,869,796$ 21,821,980$
751$ 751$ 751$ -$ -$ -$
72,968,241 46,411,439 31,444,917 27,922,044 57,540,668 46,610,702
42,842,631 34,703,219 32,023,933 28,349,191 - -
4,428) - -
115,811,623$ 81,115,409$ 63,469,601$ 56,266,807$ 57,540,668$ 46,610,702$
139
Fiscal year ended September 30,2025 2024 2023 2022
REVENUES
Taxes
Ad valorem taxes 89,284,690$ 83,698,828$ 76,460,066$ 74,300,459$
Sales taxes 32,389,161 31,547,688 29,480,960 27,609,918
Franchise and right-of-way fees 8,134,411 7,735,536 7,573,389 7,481,353
Hotel occupancy taxes 2,696,118 2,481,874 3,765,001 2,074,533
Licenses, permits and fees 4,863,776 5,321,484 6,112,789 3,101,820
Charges for services 13,869,481 10,565,137 1,406,052 10,959,753
Fines and forfeitures 3,518,439 2,026,432 2,565,742 1,425,226
Intergovernmental 6,730,301 7,775,885 2,382,951 7,511,497
Investment earnings 12,197,343 11,035,616 9,319,418 (3,634,356)
Gifts and contributions 2,981,746 2,774,347 7,182,239 2,917,033
Miscellaneous 275,270 181,564 3,233,944 3,148,527
TOTAL REVENUES 176,940,736 165,144,391 149,482,551 136,895,763
EXPENDITURES
Current
General government 34,227,114 34,670,192 29,073,166 26,252,997
Public safety 68,629,417 63,867,326 56,237,944 51,607,583
Public works 12,078,854 13,377,457 16,403,207 14,556,933
Culture and recreation 29,535,005 27,768,449 23,433,197 30,551,147
Community development 6,529,854 6,377,800 4,137,402 3,807,968
Capital outlay 33,711,141 20,045,550 30,316,623 36,748,922
Debt Service
Principal retirement 13,368,584 14,301,255 11,641,269 12,507,068
Interest and fiscal charges 8,346,260 5,223,063 5,199,805 4,412,050
Issuance costs 397,167 769,213 - -
TOTAL EXPENDITURES 206,823,396 186,400,305 176,442,613 180,444,668
Excess (deficiency) of revenues
over (under) expenditures (29,882,660) (21,255,914) (26,960,062) (43,548,905)
OTHER FINANCING SOURCES (USES)
Transfers in 17,781,169 10,131,657 12,746,544 9,865,902
Transfers out (6,831,023) (2,454,343) (7,033,969) (5,314,683)
Issuance of bonds 14,240,000 80,500,000 14,525,000 23,000,000
Issuance of refunding bonds 3,055,000 3,955,000 - -
Premium on bonds issued 1,102,696 9,741,523 771,340 2,777,611
Financing arrangements - - - -
Leases 922,770 635,852 280,177 318,698
Payment to escrow agent (3,156,970) (4,430,156) - -
Insurance recoveries 421,894 37,898 - -
Proceeds from sale of capital assets 42,248 9,280 15,246 57,148
TOTAL OTHER FINANCING SOURCES (USES) 27,577,784 98,126,711 21,304,338 30,704,676
NET CHANGE IN FUND BALANCES (2,304,876)$ 76,870,797$ (5,655,724)$ (12,844,229)$
Debt service as a percentage of noncapital
expenditures 14.64% 13.8% 11.5% 11.8%
Source: City of Allen Annual Comprehensive Financial Reports
Last Ten Fiscal Years
Changes in Fund Balances - Governmental Funds (Modified Accrual Basis of Accounting) (Unaudited)
City of Allen, Texas
140
Table 4
2021 2020 2019 2018 2017 2016
71,825,685$ 71,018,733$ 68,884,826$ 63,775,055$ 58,875,936$ 54,104,132$
25,599,945 21,686,335 21,648,401 20,717,504 19,450,088 19,274,983
6,821,738 7,454,713 7,810,093 7,990,092 7,553,013 7,295,931
1,337,147 1,156,398 1,758,858 1,487,066 1,547,244 1,607,263
4,509,535 3,341,367 5,279,425 4,494,361 4,450,639 3,064,580
8,061,820 6,845,248 13,586,474 13,442,785 11,664,328 13,002,770
1,171,378 1,195,296 2,214,571 1,710,354 1,851,735 1,579,628
9,506,946 4,210,605 1,258,398 3,555,241 1,927,567 2,645,089
877,724 3,648,787 3,280,340 851,954 643,928 627,760
1,296,178 821,914 1,585,613 852,322 712,437 832,211
4,725,411 3,896,892 3,106,994 3,276,677 3,428,366 3,711,870
135,733,507 125,276,288 130,413,993 122,153,411 112,105,281 107,746,217
22,222,641 23,770,757 19,902,542 26,141,256 27,182,391 24,101,637
49,928,774 45,372,064 43,283,984 38,524,578 37,294,550 32,966,265
11,430,042 10,342,827 11,194,393 8,899,247 5,428,996 4,865,431
25,883,652 24,910,955 30,044,660 29,714,212 23,745,884 24,287,382
3,590,155 3,254,786 3,161,679 3,076,260 2,951,864 2,833,011
8,483,652 9,458,085 11,921,047 13,114,988 7,053,863 15,408,293
11,049,141 11,094,986 11,382,162 11,181,377 10,445,000 9,135,000
3,737,148 3,414,094 3,407,768 3,461,414 3,378,943 3,801,812
136,325,205 131,618,554 134,298,235 134,113,332 117,481,491 117,398,831
591,698) (6,342,266) (3,884,242) (11,959,921) (5,376,210) (9,652,614)
10,180,045 7,388,801 11,412,228 9,682,182 9,805,859 9,137,082
7,481,221) (4,554,357) (8,554,069) (6,639,012) (6,295,989) (6,384,490)
27,200,000 18,830,000 894,793 8,355,000 11,845,000 1,940,000
6,340,000 7,730,000 1,660,000 - 6,910,000
6,881,772 4,034,604 9,570,000 978,386 955,225 1,039,610
100,674 - (1,675,000) 75,622 - 1,700,000
7,105,226) (8,595,000) 33,908 - - (7,789,058)
38,015 37,476 38,631 85,327 43,897 24,148
36,154,059 24,871,524 13,380,491 12,537,505 16,353,992 6,577,292
35,562,361$ 18,529,258$ 9,496,249$ 577,584$ 10,977,782$ (3,075,322)$
11.6% 11.9% 12.1% 12.1% 12.5% 12.7%
141
Table 5
Fiscal Year Ended
September 30, Real Property Personal Property
Less: Tax-Exempt
Property
Total Taxable
Assessed Value
Total Direct Tax
Rate
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
2025 25,058,492,631 1,239,779,838 4,792,313,106 21,505,959,363 0.4175
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
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
2025 0.32053 0.09697 0.41750 1.12580 1.04245 1.12520 1.25520 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 $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited)
143
Table 7
Taxpayer
Taxable Assessed
Value
Percentage
of Total City
Taxable
Assessed
Valuea Taxpayer
Taxable Assessed
Value
Percentage
of Total City
Taxable
Assessed
Valueb
VAA Improvements LLC 174,884,500$ 0.81% AT&T Mobility LLC 146,950,999$ 1.44%
Allen Premium Outlets LP 156,730,733 0.73% The Village At Allen LP 144,273,092 1.42%
S2 Twin Creek I LP 120,965,924 0.56% Watters Creek Owner LLC 107,324,512 1.05%
Charter DW Watters Creek Village 120,726,825 0.56% AT&T Services Inc 91,038,581 0.89%
C1 Dallas - Allen (lot 1) LLC 115,366,254 0.54% Cisco Systems Inc 90,654,841 0.89%
Cisco Systems Inc 99,500,000 0.46% Chelsea Allen Development LP 81,356,697 0.80%
Creekside Acquisition LP 91,584,851 0.43% BH Benton Pointe Apartments LLC 41,354,800 0.41%
1175 Montgomery (TX) Owner LP 83,264,960 0.39% Creekside Acquisition LP 41,087,335 0.40%
CL Allen TX LLC & ETAL 82,974,980 0.39% EMC Corp 40,006,030 0.39%
Benton Pointe LP 79,864,052 0.37% BH Settler's Gate Apartments LP 39,697,861 0.39%
Allen Waterscape LLC 77,762,044 0.36% Oncor Electric Delivery Company 37,480,205 0.37%
Total 1,203,625,123$ 5.60% Total 861,224,953$ 8.47%
Total Assessed Valuation 21,505,959,363$ 100.00% Total Assessed Valuation 10,176,416,783$ 100.00%
Source: Collin Central Appraisal District
Notes: aTaxpayers are assessed on January 1, 2024 (2024 tax year) for the 2025 fiscal year.
bTaxpayers are assessed on January 1, 2015 (2015 tax year) for the 2016 fiscal year.
2025 2016
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
2016 54,342,759$ 53,821,573$ 99.04 % 493,417$ 54,314,990$ 99.95 %
2017 58,617,868 58,282,589 99.43 % 304,101 58,586,690 99.95 %
2018 63,184,129 62,950,713 99.63 % 197,409 63,148,122 99.94 %
2019 67,684,728 67,511,154 99.74 % 135,677 67,646,831 99.94 %
2020 70,617,878 70,545,644 99.90 % (11,833) 70,533,811 99.88 %
2021 71,909,214 71,715,864 99.73 % 126,722 71,842,586 99.91 %
2022 73,930,484 73,746,318 99.75 % 110,981 73,857,300 99.90 %
2023 76,291,666 76,102,449 99.75 % 102,167 76,204,616 99.89 %
2024 83,005,456 82,693,194 99.62 % 205,397 82,898,591 99.87 %
2025 89,061,752 88,863,597 99.78 % - 88,863,597 99.78 %
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
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
2025 190,946,630 18,300,000 1,099,595 1,098,558 25,455,007 696,188 237,595,978 3.80% 2,087
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
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
2025 190,946,630 18,300,000 1,099,595 210,346,225 0.98% 1,847
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 (a)
Estimated Share of
Direct and
Overlapping Debt
Debt repaid with property taxes:
Allen I.S.D. 726,869,039$ 84.77% 616,166,884$
Plano I.S.D. 1,541,530,000 0.86% 13,257,158
McKinney I.S.D. 391,598,030 0.17% 665,717
Lovejoy I.S.D.192,515,000 8.55% 16,460,033
Collin County 961,111,047 8.43% 81,021,661
Collin College 436,235,315 8.43% 36,774,637
Subtotal, overlapping debt 764,346,090$
City of Allen direct debt outstanding 211,444,783 100.00% 211,444,783
Total Direct and Overlapping Debt 975,790,873$
Total Direct and Overlapping Debt as a % of Assessed Value 4.54%
Total Direct and Overlapping Debt per capita 8,570.47$
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").
a)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, 2025
Unaudited)
Governmental Unit
148
Table 12
Fiscal Year Ended
September 30, Total Revenues a
Less: Operating
Expensesb
Net Available
Revenue
Annual
Requirementc
Times
Coverage
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
2025 76,800,183 57,603,365 19,196,818 2,349,700 8.17
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
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%
2025 114,647 6,418,626,942 55,986 20,912 3.9%
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
150
Table 14
Employer
Total
Employees
Percentage of
Total City
Employment Employer
Total
Employees
Percentage of
Total City
Employment
Allen Independent School District 2,586 6.57% Allen Independent School District 2,210 7.00%
City of Allen 995 2.27% Experian 865 2.74%
Experian Information Solutions 817 1.93% Frontier Communications 850 2.69%
Jack Henry & Associates 694 1.37% City of Allen 775 2.46%
Credit Union of Texas 580 1.08% Texas Health Presbyterian Hospital 670 2.12%
Andrew's Distributing 437 0.95% Jack Henry & Associates 600 1.90%
Texas Health Presbyterian Hospital 435 0.93% CVE Technology Group, Inc 600 1.90%
Motorola Solutions 375 0.86% PFSweb 450 1.43%
Netscout 323 0.81% Andrew's Distributing 400 1.27%
Amphenol Fiber Systems Intl 257 0.79% Monkey Sports 203 0.64%
Total 7,499 17.55% Total 7,623 24.16%
Total Allen Daytime Employees 52,906 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)
2025 2016
151
Function/Program 2016 2017 2018 2019 2020
General Government and Administration 70.50 72.50 75.50 77.00 80.48
Public Safety 299.00 299.00 305.00 316.00 319.00
Public Works 59.00 59.00 60.50 62.50 63.50
Culture and Recreational 221.31 221.31 226.32 228.32 227.82
Water and Sewer 70.00 74.00 76.50 79.00 80.00
Golf Course 33.64 33.64 33.64 33.64 32.14
Risk Management 4.00 4.00 4.00 3.50 3.50
Community Development 28.50 27.50 30.50 32.00 32.00
Economic Development 7.00 7.00 7.00 7.50 7.50
Total 792.95 797.95 818.96 839.46 845.94
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
2021 2022 2023 2024 2025
82.48 84.73 87.23 89.23 94.73
320.00 326.00 337.00 346.00 354.00
63.50 62.50 63.00 64.00 70.00
223.32 223.32 282.80 283.80 283.80
80.00 83.00 85.50 90.50 92.50
32.14 32.14 32.14 32.14 32.14
4.50 4.50 5.00 5.00 5.00
34.00 35.00 37.00 39.00 39.00
7.50 7.50 7.50 7.50 7.50
847.44 858.69 937.17 957.17 978.67
Fiscal Year Ended September 30,
153
Function/Program 2016 2017 2018 2019
Public Safety
Police
Number of Employees 185 185 189 199
Number of Violations (Citations) 13,645 18,778 17,025 21,060
Fire
Number of Employees 114 114 116 117
Number of Fire/Other runs 1,822 1,886 1,896 1,899
Number of EMS runs 4,162 4,210 4,667 4,898
Public Works
Streets paved (miles)5562
Building Permits Issueda 7,022 7,116 7,126 9,414
Cultural and Recreational
Parks and Recreation
Park maintained & operated per acre 4,092$ 4,668$ 4,675$ 3,679$
Participants in Leisure Service Programs 638,367 911,064 955,441 1,002,717
Library - Volumes in Collectionb 138,041 141,774 139,605 146,699
Water and Sewer
Number of Water Consumers 30,332 30,920 31,391 31,922
Average Daily Water Consumption (gallons)14,472,000 15,107,156 15,926,000 15,454,057
Maximum Storage Capacity (million of gallons)33.0 33.0 33.0 33.0
Sanitation
Recyclables Collected (tons) 10,108 10,578 10,723 10,073
Solid Waste Collected (tons) 62,009 63,712 66,333 65,242
Golf
Rounds of Golf 44,478 47,010 44,163 49,293
Source: City of Allen Departments
bIncludes books and media
Notes:aIncludes residential, commercial, and miscellaneous permits (e.g. for pools, fences, and roof repairs)
Fiscal Year Ended September 30,
City of Allen, Texas
Operating Indicators by Function & Program
Last Ten Fiscal Years
Unaudited)
154
Table 16
2020 2021 2022 2023 2024 2025
201 202 204 211 216 221
8,774 10,715 11,721 10,596 19,238 28,204
118 122 122 126 130 133
1,912 2,490 2,406 2,236 3,043 3,165
4,725 5,753 6,251 4,725 5,786 5,700
2 1 26 66 1 2
6,440 6,104 5,531 6,705 6,936 5,665
3,667$ 3,771$ 3,988$ 4,209$ 4,478$ 5,034$
528,935 595,869 791,359 844,201 1,284,796 1,284,796
143,103 142,324 143,495 147,860 139,376 149,927
32,334 33,109 33,385 35,045 35,231 35,619
15,710,457 16,143,000 15,296,000 15,075,194 15,100,000 14,492,789
33.0 33.0 33.0 33.0 33.0 33.0
10,343 9,838 10,340 12,211 9,390 12,783
66,515 66,773 66,288 71,110 69,755 71,469
54,556 66,518 70,597 70,123 66,954 71,978
Fiscal Year Ended September 30,
155
Function/Program 2016 2017 2018 2019 2020
Public Safety
Police Stations 11111
Police Patrol Units 28 31 31 31 31
Fire Stations 55555
Police Motorcycle Units 44444
Public Works
Streets-Paved (miles) 336 341 347 349 351
Alleys-Paved (miles) 167 168 169 169 169
Cultural and Recreational
Parks (acres)a 607 614 689 691 691
Playgrounds 32 32 32 32 32
Swimming Pools (outdoor)11111
Recreation Centers 11111
Senior Center 11111
Tennis Courts 55555
Natatorium 11111
Visitor (Youth) Center 11111
Water and Sewer
Water Mains (miles) 481 494 506 515 524
Fire Hydrants 4,560 4,675 4,982 4,934 5,316
Sanitary Sewers (miles) 361 370 379 386 393
Storm Sewer Lines (miles) 112 117 123 129 136
Golf Course 11111
Event Center 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
2021 2022 2023 2024 2025
11111
44 53 53 56 54
55566
44445
351 377 442 442 445
180 178 178 178 184
691 710 2,249 2,255 2,259
31 31 31 31 31
11111
11112
11111
55555
11111
11111
501 502 508 511 514
5,359 5,409 5,358 5,503 5,507
370 372 372 374 375
224 226 231 232 309
11111
11111
Fiscal Year Ended September 30,
157