HomeMy WebLinkAboutComprehensive Annual Financial ReportCITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2000
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Exhibit
Pace
INTRODUCTORY SECTION
Letter of Transmittal
I
Government Finance Officers Association
Certificate of Achievement
A
Organization Chart
xii
City Officials
xiii
FINANCIAL SECTION
Independent Auditor's Report
1
Combined Financial Statements Overview
(General Purpose Financial Statements):
Combined Balance Sheet — All Fund Types, Account
Groups and Discretely Presented Component Units
A-1
4
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances — All Governmental
Fund Types, Expendable Trust Funds, and
Discretely Presented Component Units
A-2
8
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances — Budget (GAAP Basis)
and Actual — General and Debt Service Funds
A-3
10
Combined Statement of Revenues, Expenses and
Changes in Fund Equity— Al Proprietary Fund
Types and Nonexpendable Trust Fund
A-4
12
Combined Statement of Cash Flows — All Proprietary
Fund Types and Similar Trust Fund
A-5
13
Notes to Financial Statements
14
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Exhibit
Page
Combining, Individual Fund and Account Group
Financial Statements and Schedules:
Governmental Fund Types:
General Fund:
41
Comparative Balance Sheets
B-1
42
Statement of Revenue, Expenditures
and Changes in Fund Balance —
Budget (GAAP Basis) and Actual
B-2
43
Special Revenue Funds:
45
Combining Balance Sheet
C-1
46
Combining Statement of Revenues,
Expenditures and Changes in
Fund Balances
C-2
48
Debt Service Fund:
51
Comparative Balance Sheets
D-1
52
Comparative Statements of Revenues,
Expenditures and Changes in
Fund Balance
D-2
53
Statement of Revenues, Expenditures
and Changes in Fund Balance —
Budget (GAAP Basis) and Actual
D-3
54
Capital Project Funds:
55
Combining Balance Sheet
E-1
56
Combining Statement of Revenues,
Expenditures and Changes in
Fund Balances
E-2
58
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Exhibit
Pace
Proprietary Fund Types:
Enterprise Funds:
61
Combining Balance Sheet
F-1
62
Combining Statement of Revenues,
Expenses,and Changes
in Retained Earnings
F-2
64
Combining Statement of Cash Flows
F-3
66
Water and Sewer Fund:
Comparative Balance Sheets
F-4
68
Comparative Statements of Revenues,
Expenses,and Changesin
Retained Earnings
F-5
69
Comparative Statements of Cash Flows
F-6
70
Solid Waste Fund:
Comparative Balance Sheets
F-7
71
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-8
72
Comparative Statements of Cash Flows
F-9
73
Development Fees Fund:
Comparative Balance Sheets
F-10
74
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-11
75
Comparative Statements of Cash Flows
F-12
76
Drainage Enterprise Fund:
Comparative Balance Sheets
F-13
77
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-14
78
Comparative Statements of Cash Flows
F-15
79
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Exhibit
Paas
Parks and Recreation Enterprise Fund:
Comparative Balance Sheets
F-16
80
Comparative Statements of Revenues,
Expenses and Changes in
81
Retained Earnings
F-17
Comparative Statements of Cash Flows
F-18
82
Aquatics Enterprise Fund:
Balance Sheet
F-19
83
Statement of Revenue, Expenses
and Changes in Retained Earnings
F-20
84
Statement of Cash Flows
F-21
85
Internal Service Funds:
87
Combining Balance Sheet
G-1
88
Combining Statement of Revenues,
Expenses, and Changes
89
in Retained Earnings
G-2
Combining Statement of Cash Flows
G-3
90
Fiduciary Fund Types:
91
Combining Balance Sheet
H-1
92
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances — Expendable Trust Funds
H-2
93
Comparative Balance Sheets —
Nonexpendable Cemetery Trust Fund
H-3
94
Comparative Statements of Revenues,
Expenses and Changes in Fund Balance —
Nonexpendable Cemetery Trust Fund
H-4
95
Comparative Statements of Cash Flows —
Nonexpendable Cemetery Trust Fund
H-5
96
CIN OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Exhibit
Pane
General Fixed Assets Account Group
97
Comparative Schedules of General
Fixed Assets — By Source
I-1
98
Discretely Presented Component Units:
99
AEDC— Combining Balance Sheet
J-1
100
AEDC — Comparative Statements of
Revenues, Expenditures and
Changes in Fund Balances
J-2
101
CDC — Combining Balance Sheet
J-3
102
CDC — Comparative Statements of
Revenues, Expenditures and
Changes in Fund Balances
J-4
103
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2000
TABLE OF CONTENTS
Table
Pane
STATISTICAL SECTION (Unaudited)
General Governmental Expenditures by Function
1
106
General Governmental Revenues by Source
2
108
Property Tax Levies and Collections
3
110
Assessed and Estimated Actual Value of
Taxable Property
4
112
Property Tax Rates and Tax Levies — All Direct
and Overlapping Governments
5
113
Ratio of Net General Bonded Debt to Assessed
Value and Net Bonded Debt Per Capita
6
114
Computation of Legal Debt Margin
7
116
Computation of Direct and Overlapping Debt
8
117
Ratio of Annual Debt Service Expenditures to
118
General Bonded Debt To Governmental Expenditures
9
Property Values, Construction and Bank Deposits
10
119
Principal Taxpayers
11
120
Miscellaneous Statistical Data
12
121
Demographic Statistics
13
122
INTRODUCTION
February 13, 2001
Honorable Mayor and Members of the City Council,
City Manager,
Citizens of Allen:
The Comprehensive Annual Financial Report (CAFR) of the City of Allen, Texas (the
"City"), for the fiscal year ended September 30, 2000, is submitted herewith. The report
was prepared by the Finance Department and our independent auditors, Weaver and
Tidwell L.L.P. This report is prepared to provide the City Council, City staff, our
citizens, our bondholders, and other interested parties with detailed information
concerning the financial condition and activities of the City goverment. Responsibility
for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the City. We believe that the data, as
presented, is accurate and presented in a manner designed to fairly set forth, in all
material respects, the financial position and results of operations of the City with all
disclosures necessary to enable the reader to gain an understanding of the City's financial
affairs.
The Comprehensive Annual Financial Report is presented in three sections: introductory,
financial and statistical. The introductory section includes this transmittal letter, the
government's organizational chart, and a list of principal officials. The financial section
includes the general purpose fmancial statements and the combining and individual fund
and account group financial statements and schedules, as well as the independent
auditors' report on the financial statements and schedules. The statistical section includes
selected financial and demographic information, generally presented on a multi-year
basis.
The financial reporting entity includes all the funds and account groups of the primary
government (The City of Allen), as well as all its component units. Component units are
legally separate entities for which the primary government is financially accountable.
The City provides to its citizens those services that have proven to be necessary and
which can be provided by the City at the least cost. Major services provided under
general goverment and enterprise functions are: police and fire protection, emergency
ambulance service, water and wastewater services, solid waste services, park and
recreational facilities, library services, and street improvements. Other services include
planning future land use, engineering, building inspections, and general administrative
services. Discretely presented component units are reported in a separate column in the
combined financial statements to emphasize that they are legally separate from the
primary govemment and to differentiate their financial position, results of operations and
cash flows from those of the primary government. The Allen Economic Development
Corporation (AEDC) and the Community Development Corporation (CDC) are discretely
presented component units in the combined financial statements because they are legally
separate from the City.
ECONOMIC CONDITION AND OUTLOOK
The City of Allen is located in Collin County, which is in north central Texas. It is
approximately 20 miles north of Interstate 635 on U.S. 75. Allen is completely surround-
ed by incorporated cities. To the north lies the City of McKinney; to the south, the City
of Plano; to the east, the Town of Lucas; and, to the west, the City of Plano.
Allen was settled in the early 1850's from land grants given by the Republic of Texas as
an inducement for settlers to come to the frontier. The railroad and telegraph came to
Allen in 1872 and in future years made substantial contributions to the economy of the
City. The town was officially incorporated in 1953 with a Council/Manager form of
government. Similar in importance to the construction of the railroad almost a century
before was the completion of U.S. 75 through Allen in 1960. Citizens could work at
nearby companies because of the access and convenience of the highway. The relocation
of high technology companies to the North Dallas and Richardson areas in the 1960's
drastically increased employment opportunities for Allen's citizens, and the population
rose to 1,940. It continued to increase to 8,324 in 1980, 19,198 in 1990, 48,308 in 2000,
and is estimated to surpass 85,000 by the year 2010.
Allen is 25 miles north of downtown Dallas, on U.S. Highway 75. It is in the midst of
the growth emanating from Dallas and its northern suburbs. The City has established a
reputation in the Dallas/Fort Worth Metroplex and in the state of Texas for being at the
forefront of development and is promoting commercial and residential growth in ways
that will aid in having a balanced community. Important transportation routes serving the
city include U.S. 75, which bisects the city in a north/south direction in the center of the
city and provides an important link to adjacent cities. F.M. 2170 runs in an east/west
direction in the center of the city. S.H. 5, which formerly was the main north/south thor-
oughfare, lies roughly parallel to U.S. 75.
As development expanded outward from Dallas and growth spread northward, the City
Council created the Allen Economic Development Corporation (AEDC) to receive and
disperse the one-half cent sales tax approved by voters for economic development. Since
its inception in 1992, the AEDC has dedicated its resources to developing fust -class
technology parks and recruiting quality industries to the community. During 2000,
significant additions have been made to Allen's impressive list of companies. ADC
Telecommunications purchased 52 acres on the southwest comer of Bethany Drive and
US 75 with plans to construct a corporate campus. Telecommunications newcomers like
Xtem Communications and Metro-Optix are also now calling Allen home. AEDC
projects completed and started in 2000 will add approximately 1,155 new jobs, $187
million on the local tax rolls, and 1.2 million square feet of new space in Allen.
Adding to the Allen skyline, Trammell Crow Company constructed Enterprise Office II,
a two-story office building with Daisytek and Micron Technology as tenants. Following
the same office design, Trammell Crow Company plans to begin construction on
Enterprise Office III, a three-story building on 16 acres purchased from the AEDC.
Shoppers from across the Metroplex now travel to Allen to visit the recently opened
Allen Premium Outlets. The project will not only place $60 million on the local tax rolls,
but will be one of the largest sales tax generators for the City. Allen residents will benefit
from the Presbyterian Hospital -Allen, which completed construction on 132,000 square
feet of hospital and medical office space.
A growing residential base of corporate executives, engineers and skilled employees is
proving that prime office and high -finish space can be sustained in the northern corridor
of Dallas. Allen, alone, sports an average household income of $71,000 with most
residents having a college education.
A GROWING ECONOMY
ASSESSED PROPERTY VALUATIONS
o•mw a
1994 1995 1996 1997 1998 1999
Allen has been selected by "Outlook Magazine" as one of the top 10 Texas Star Cities for
the years of 1996 through 1999, based on its pro-business climate and its ability to
promote growth, while making the community a good place to live.
MAJOR INITIATIVES
Current Year Projects. The City of Allen 1999-2000 Budget for operations and debt
service was a 34.2% increase from the 1998-99 Budget. This Budget reflects growth for
inflationary cost increases, as well as increases for service level enhancements,
infrastructure maintenance, and purchases of capital equipment. The budget increase was
111
funded by increases in revenues resulting from the growing economy of the City. At the
same time the City Council has continued lowering the property tax rate for the seventh
consecutive year from a level of $.57500 per $100 value in 1998-99 to a level of $.57400
per $100 value in 1999-2000. Key accomplishments for the 1999-2000 fiscal year
include:
Construction of the new 68,000 square foot City Hall building.
Designed and constructed Green and Shadow Lakes Neighborhood Parks
and completed the design of six neighborhood parks.
Completed construction of Alma Road from Exchange Parkway to SH 121.
Implementation of Capital Project program, including the construction of two
elevated water towers, Custer Pump Station and Ground Storage Tank
Future Projects. In June of 1999 residents of the City of Allen approved a $52.5 million
bond package. Future Projects included in the bond package we as follows:
Expansion of the Police and Courts building
Construction of a new Central Fire Station / Administration Offices
Construction of the Donald P. Rodenbaugh Natatorium
Drainage system construction and improvements
Construction and Extension of several roads including Bethany Drive east to FM
2551, Extension of Exchange Parkway East, Construction of Exchange Parkway
West to its intersection with SH 121, Extension of FM 2551 from Main Street to
Stacy Road, and Extension of Stacy Road West to SH 121
An additional $10 million bond election for a new Central Library and Civic Auditorium
passed in August of 2000.
FINANCIAL INFORMATION
The City's accounting records for general governmental operations are maintained on a
modified accrual basis, with the revenues being recorded when measurable and available
and expenditures being recorded when the services or goods are received and the
liabilities are incurred. Accounting records for the City's utilities and other proprietary
activities are maintained on the accrual basis.
iv
Management of the City is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the government are protected from
loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for
the preparation of financial statements in conformity with generally accepted accounting
principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that: (1) the cost of a control should not exceed the benefits likely to be
derived; and (2) the valuation of costs and benefits requires estimates and judgments by
management.
All internal control evaluations occur within the above framework. We believe that the
City's internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Budgeting Controls. As set forth in the City Charter, Article IV, Sections 4.01 to 4.10,
the City Council adopts an annual budget prepared by City Management. This budget is
reviewed by the City Council and is formally adopted by the passage of a budget
ordinance. The City Manager is authorized to transfer budgeted amounts between
departments within any fund; however, any revisions that alter the total expenditures of
any fund must be approved by the City Council.
Budgetary control has been established at the individual fund level. Financial reports are
produced showing budget and actual expenditures by line item, and are distributed
monthly to City department managers and to others upon request. Individual line items
we reviewed and analyzed for budgetary compliance, and revenue budgets are reviewed
monthly.
General Government Functions. The following schedule presents a summary of the
General Fund, Special Revenue Fonds, Debt Service Fund, and Capital Project Funds
revenues for the year ended September 30, 2000, and the amount and percent of increase
in relation to prior year's revenues. For a description of each fund, see Note 1 in Notes to
General Purpose Financial Statements.
Increase
Percent
Percent
(Decrease)
of Increase
Revenues
Amount
of Total
from 1999
(Decrease)
Ad valorem taxes
$ 13,488,693
46.39%
$2,377,330
21.40%
Sales tax
4,627,385
15.92%
1,029,738
28.62%
Licenses and permits
1,733,140
5.96%
(273,797)
(13.64%)
Franchise taxes
2,139,442
7.36%
241,323
12.71%
Interest earned
2,611,659
8.98%
1,192,495
84.03%
Gifts and contributions
1,158,765
3.98%
904,072
354.97%
Charges for services
1,430,918
4.92%
677,143
89.83%
Fines
738,005
2.54%
66,071
9.83%
Miscellaneous
1,131,828
3.89%
478,322
73.19%
Special assessments
18,788
0.06%
16,035
582.46%
Total Revenue
$29,078,623
100.00%
$6,708,732
Revenues were up 29.99% over 1998-1999. This increase in revenue is primarily due to
continued growth in the state and regional economy. Increased sales tax revenue of
28.62% reflects this continued economic growth. The increased residential and
commercial construction in Allen is evidenced by the increase in ad valorem property
taxes. The property tax collection rate for fiscal year 2000 was 99.57%. Additionally,
assessed taxable valuations at year-end totaled $2,287,107,121, which is a 21.5% increase
from the preceding year. Allocations of property tax levy by purpose for 2000 and the
preceding year are as follows (amounts per $100 assessed value):
Propose
2000
19,99
General Fund
$.34603
$.35005
Debt Service
22797
.22495
Total Tax
$.57400
$.57500
Franchise tax revenue as well as charges for services increased primarily due to a
growing population. The increase in fines can be attributed to increased municipal court
activity. The increase in interest earnings is due to an increase in overall revenue and a
favorable interest rate.
The following schedule presents a summary of General Fund, Special Revenue Funds,
Debt Service Funds, and Capital Project Funds expenditures for the year ended
September 30, 2000, and the amount and percentage of increases and decreases in
relation to prior year's expenditures.
Increases in general government activities are primarily related to staff additions and
increased operational costs. The General Fund budget for 1999-2000 increased by the
equivalent of 34.50 full-time positions. The increase in capital outlay expenditures is
Increase
Percent
Percent
(Decrease)
of Increase
Expenditures
Amount
of Total
from 1999
(Decrease)
Current
General government
$3,822,845
10.24%
$1,182,090
44.76%
Public safety
9,063,625
24.27%
1,057,295
13.21%
Public works
1,963,195
5.26%
1,108,288
129.64%
Culture and recreation
3,390,150
9.08%
477,001
16.37%
Community development
1,230,318
3.29%
611,506
98.82%
Capital outlay
12,328,707
33.01%
690,217
5.93%
Debt service:
Principal retirement
2,830,000
7.58%
668,630
30.94%
Interest
2,715,171
7.27%
408,485
17.71%
Total expenditures
$37,344,011
100.000%
$6,203,512
Increases in general government activities are primarily related to staff additions and
increased operational costs. The General Fund budget for 1999-2000 increased by the
equivalent of 34.50 full-time positions. The increase in capital outlay expenditures is
predominantly due to the continued spending of bond funds on new park and public
facilities and street improvements.
General Fund Balance. The total fund balance of the General Fund of $5,384,609
reflects an increase of $806,755, or 17.62%. This is $1,286,891 more than projected in
the 2000 fiscal year revised budget. This increase is primarily due to revenue sources,
such as sales taxes and licenses and permits, doing better than anticipated and
expenditures being less than the budgeted amount. The ending fund balance represents
83.0 days of operational costs for the 2000-2001 fiscal year General Fund budget. The
current policy requires the City to maintain a fund balance equal to 60 days of operational
costs.in the General Fund.
REVENUES AND EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30,
2000 FOR THE GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT
SERVICE FUND, AND CAPITAL PROJECT FUNDS
REVENUES
EXPENI
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Proprietary Fund Types. The Proprietary Fund types are those funds that are self-
supporting and are comprised of the Enterprise and Internal Service Funds. The
operating revenues of the Enterprise Funds are generated by the sale of water and
wastewater related services, solid waste services, and by drainage service fees and
recreation fees. The City's Water and Wastewater system showed an increase in
operating revenues of $2,475,622. This increase is primarily due to growth of the system
in terms of both residential and commercial customers and also the continued drought
conditions effecting the region. Comparative data for the past two fiscal years depicting
net revenues available for debt service coverage is shown next.
Vii
19992000
Gross Operating Revenues
(Including Interest Income) $12,701,310 $10,095,427
Operating Expenses
(Net of Depreciation) 5,862,644 7.129,451
Net Revenues Available for
Debt Service 6,838,666 2,965,976
Annual Debt Service 1,859,300 1,359,158
Coverage (Income available
For Debt Service divided by
Annual debt service) 3.70 2.18
The httemal Service Fund is used to account for the financing of goods provided by one
department to other departments of the City, on a cost -reimbursement basis. Fiscal
information on the Internal Service Fund is shown in the general purpose financial
statements.
Debt Administration. As of September 30, 2000, the City had $76,544,934 outstanding
bond indebtedness. Of this amount $59,117,730 were general obligation bonds and
$17,427,204 were revenue bonds. All debt is scheduled to be retired by 2020. The City
issued $11,100,000 in general obligation bonds in 2000. Of this amount, $655,000 was
for street projects, $4,150,000 was for parks and recreation projects, $3,050,000 was for
the police and court building expansion, $3,215,000 was for the new central fire station,
and $30,000 was for drainage projects. The government had upgrades in its ratings with
both Moody's Investors Service and Standard & Poor's Corporation. Moody's increased
its rating from an A2 to an Al and Standard & Poor's increased its rating from an A- to
an A. Article V, Sections 5.01 to 5.06 of the City Charter authorizes the City to issue
bonds when authorized by the taxpaying voters, for any public purpose that is not
prohibited by the constitution and laws of the State of Texas. The City may not use bond
proceeds for any purpose other than that for which the bonds were sold. There is no limit
on the amount of outstanding general obligation or revenue bonds.
In addition, the government has $40,820,000 in authorized but unissued general
obligation bonds and $1,512,000 in authorized but unissued revenue bonds.
Cash Management. Cash temporarily idle during the year was invested in demand
deposits, investment pools, certificates of deposit, and obligations of the U.S. Treasury.
Safety, liquidity, yield, and public trust are the program goals. Safety of the City's funds
is of primary importance in all investment activities, with staff following policies and
laws when placing any money so as to avoid capital losses. Accordingly, deposits were
either insured by federal depository insurance or collateralized. All collateral on deposits
was held by the Federal Home Loan Bank of Dallas, an agent of the City's financial
institution. Interest income generated for the year for all funds was $4,166,352. Interest
is an important non -tax revenue for the City; all interest earned by each fund is allocated
to that fund.
viii
Insurance & Risk Management. The City of Allen purchases coverage for health
insurance benefits from an independent provider. The City participates in the Texas
Municipal League Joint Self -Insurance Fund ("TMLIF") for general liability and property
insurance. The City has a self-insured retention for property and liability of $10,000 per
occurrence. Claims over the self-insured retention are covered by TMLIF.
OTHER INFORMATION
Independent Audit. The Charter of the City of Allen per Article II, Section 2.20, requires
that the City Council shall designate qualified certified public accountants who, as of the
end of the fiscal year, shall make an independent audit of accounts and other evidences of
financial transactions by the City and submit their report to the Council and the City
Manager. This requirement has been complied with and the independent auditors'
opinion has been included in this report. No single audit was performed due to the fact
that the City did not meet the threshold of expenditures required in the Federal Single
Audit Act of 1984 and related OMB Circular A-133. Additionally, the City of Allen has
established an Audit Committee as a subcommittee of the City Council which meets with
the auditors as necessary.
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 comprehensive annual financial report for the fiscal year ended
September 30, 1999. This was the second consecutive year that the government has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual .financial report 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.
Acknowledgments. The preparation of this report on a timely basis could not have been
accomplished without the efficient and dedicated services of the entire staff of the
Finance Department. Appreciation is expressed to those employees and other City
employees throughout the organization, especially those employees who were
instrumental in the successful completion of this report. Certain individuals worked
many hours and exhibited extraordinary effort in ensuring the accuracy and timeliness of
this report, and their contribution to this effort is greatly appreciated. These individuals
are:
Joanne Stoehr, Accounting Manager
Anita Barnette, Budget Analyst
Vivian Leverington, Sr. Accountant
Joyce Blankenship, Accountant
Debbie Sumrow, Finance Secretary
We would like to thank the City Manager's office and the members of the City Council
for their interest and support in planning and conducting the financial operations of the
City in a responsible and progressive manner.
Acknowledgment is also given to the representatives of Weaver and Tidwell, L.L.P. for
their invaluable assistance in producing the final document.
Respectfully submitted,
Linda Vaughan
Finance Director, CGFO
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Allen,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1999
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
t orr�>
wmr resident
mx.a Or • r�
Executive Director
xi
City of Allen
organizational Chart
Citizens of Allen
City Council
Boards and Commissions H City Secretary
I
City Attorney F { I Municipal Judge
City Manager
Assistant to the City Manager
Building and Code Compliance
Community Services
Engineering
Finance
Municipal Court
Fire
Human Resources
I
Information Technology
Library
Parks and Recreation
Planning and Development
Police
xii
CITY OF ALLEN, TEXAS
CITY OFFICIALS
CITY COUNCIL
Stephen Terrell, Mayor
Doug Gallagher, Mayor Pro Tem
Lonnie Thomas
Richard Buchanan
Susan Bartlemay
Kenneth Fulk
Melissa Owen
CITY MANAGER
Peter H. Vargas
FINANCE DIRECTOR
Linda Vaughan
Xn
CITY OF ALLEN
COMBINED FINANCIAL
STATEMENTS
II I
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of
WEAVER
_
the City Council
TIDWELL
CITY OF ALLEN, TEXAS
LL_P
We have audited the accompanying general purpose financial statements of the City of
CERT�F,ED PUBLIC
Allen, Texas, as of and for the year ended September 30, 2000, as listed in the table of
ACCOUNTANTS
AND CONSULTANTS
Contents. These general purpose financial statements are the responsibility of the City of
Allen's management. Our responsibility is to express an opinion on these general purpose
Pe.! C.N...I vn
financial statements based on our audit.
11150 M ... Dix
s.;,. l:ro
Oc972RO1970
We Conducted our audit in accordance with auditing standards generally accepted in the
g g y p
91d.4901910
United States of America and the standards applicable to financial audits contained in
F 972.239738]
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material
misstatement, An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in
all material respects, the financial position of the City of Allen, Texas at September 30,
2000, and the results of its operations and cash flows of its proprietary fund type and
nonexpendable trust fund for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
February 13, 2001 on our Consideration of the City of Allen's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations,
Contracts and grants. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be read in conjunction with this report in
Considering the results of our audit.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The accompanying Combining, individual fund and account
group financial statements and schedules listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the general purpose financial
statements of the City of Alen, Texas. The combining, individual fund and account group
financial statements and schedules have been subjected to the auditing procedures applied
DALLAS
in the audit of the general purpose financial statements and, in our opinion, are fairly stated
in all material respects in relation to the general purpose financial statements taken as a
Th— F—I'/,-
whole.
12221 M -a Dmm
S.— 1700
D.,u.,, OT„ 75251
The statistical section has not been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and, accordingly, we express no opinion
FORT WORTH
on such data.
i0'Wn S.
J 500
rt NAI
P111 1Ver.A. /nn. ]filo'
WEAVER AND TIDWELL, L.L.P.
WORLDWIDE Art,LIATION3
Dallas, Texas
THROUGH
February 13, 2001
SUMM17 INTERNATIONAL
ASSOCIATES, INC
1015
CITY OF ALLEN
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF ALLEN, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 1999)
The Notes to Financial Statements
are an integral part of this statement.
4
PROPRIETARY
GOVERNMENTAL FUND TYPES
FUND TYPES
SPECIAL
DEBT
CAPITAL
INTERNAL
ASSETS AND OTHER DEBTS
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE
SERVICE
Cash and cash equivalents
$ 1,497,966
$ 2,266.674 $
124,091 S
16,081,476
$ 8,287,597 $
858,232
Investments
4,462,200
2,675,303
693,000
15,737,598
9,064,173
1,657,476
Recaivadee, net of allowances for
uncollectibles:
Ad valorem taxes
123,544
61,392
Sales taxes
876,728
1,871,818
53,405
Accounts receivable
77,234
48,112
11,344
198,549
135,963
13,879
Accrued interest
252,894
5,353
120
Other
253,056
Special assessments
51,905
Due from other funds
Restricted assets:
2,580,939
Cash and cash equivalents
Fixed assess, net where applicable
62 600,964
625,059
of accumulated depredation
Other assets , at cost
2,860
53,200
Other debits:
Amount available in debt service fund
Amount to be provided for retirement
of general long-term debt
TOTAL ASSETS AND OTHER DEBTS
$ 7,293,424
$ 4,990,089 $
915,180 $
32,322,584
E 84,394,574 $
3,108,051
The Notes to Financial Statements
are an integral part of this statement.
4
EXHIBIT A-1
833,788 833,788 833,788 937,386
59,621,498 59,621,498 2,636,745 9,965,000 72,223,243 62,876,000
$ 1,428,694 $ 99,716,700 $ 60,455,286 $ 294,624,582 $ 13.632,126 $ 14,116,891 $ 322,373,599 $ 279,115,247
(Continued)
5
TOTALS
FIDUCIARY
REPORTING ENTITY
FUND TYPES
ACCOUNTGROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
GENERAL GENERAL
GOVERNMENT
FIXED LONG-TERM
(MEMORANDUM
ECONOMIC
COMMUNITY
TRUST
ASSETS DEBT
ONLY) DEVELOPMENTDEVELOPMENT
2000
1999
$ 923,299 S
$
$ 30,039,335 $
411,414 $
2,273,181 $
32,723,930 $
23,420,415
500,000
34,789,750
600,000
1,417,000
36,806,750
40,479,264
204,936
204,936
51,801
876,726
438,363
438,363
1,753,452
1,421,301
1,725,023
1,725,023
1,368,365
5,395
490,476
7,114
23,347
520,937
298,406
258,367
258,367
1,108,351
253,056
253,066
275,220
51,905
51,905
2,580,939
2,58,939
1,935,219
99,716,700
162,842,723
9,538,490
172,381,213
144,887,519
56,060
56,060
56,000
833,788 833,788 833,788 937,386
59,621,498 59,621,498 2,636,745 9,965,000 72,223,243 62,876,000
$ 1,428,694 $ 99,716,700 $ 60,455,286 $ 294,624,582 $ 13.632,126 $ 14,116,891 $ 322,373,599 $ 279,115,247
(Continued)
5
CITY OF ALLEN, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
The Notes to Financial Statements
are an integral part of this statement.
6
PROPRIETARY
GOVERNMENTAL
FUND TYPES
FUND TYPES
SPECIAL
DEBT
CAPITAL
INTERNAL
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE
SERVICE
LIABILITIES
Accounts payable S
754,600 $
6'%1 S
$
668,883 $
1,04].6]4 $
2]2.]91
Accrued liabilities
1.003,018
42,602
69,560
Accrued compeneated absences
129,092
67'361
256,478
Retainage payable
51,905
Due to other funds
836.132
Accrued interest payable
Payable from restricted assets:
Cunent portion of revenue
995,000
bonds payable
289'241
Accrued interest payable
]39,459
Utility deposits
Defamed revenue
151,197
2,885,685
81,392
4,2]9,558
1.128.136
Contracts payable
16,432,204
Revenue bonds payable
General obligation bonds payable
Lease payable
Note Payable
Total lialilifies
1.908.815
2934,838
81,392
5,129.436
21,859.243
2]2,]91
EQUITY AND OTHER CREDITS
47,177,766
Contributed capital
Investment in general fixed assets
Retained eamirgs:
Reserved for revenue bond
55].239
principal and interest
33,043
m
Reserved for field enhancement
14,767,283
2.835,260
Unreserved
Fund balances:
13•]91.980
Reserved for encumbrances
Reserved for debt service
833.788
Unreserved:
1.3]1,559
Designated for construction
Undesignated
5384.609
2,055,251
12,029,629
Total equity and other credits
5.384.609
2,055,251
833.788
27,193.148
62,535,331
2,835260
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS$
7,293,424 $
4.990,089 $
915,180 $
32,322,584 $ 84,394.574 $
3,108,051
The Notes to Financial Statements
are an integral part of this statement.
6
EXHIBIT A-1
47,177,766 47,177,786 4.017,631
99,718,700 9.718,700 9,538,490 109,255,190 91,176,815
885,000
995,000
945,000
557239
TOTALS
289,241
FIDUCIARY
739,459
739,459
681,281
REPORTING ENTITY
FUND TYPES
ACCOUNT GROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM
ONLY)
1,126,134
GENERAL
GENERAL
GOVERNMENT
27,604,952
59,117,730
59,117,730
9,965,000 69.082,730
FIXED
LONGTERM
(MEMORANDUM
ECONOMIC COMMUNITY
11,752
TRUST
ASSETS
DEBT
ONLY)
DEVELOPMENT DEVELOPMENT
2000
1999
$ $
92,641,801
$
$ 2.750,499 $
166,249 $ 651,163 $
3,567,911 $
6,089,291
1,428.694 99.716700
201,982,781
10,824,671
1,115,180
4,461 43,929
1,163,570
555,945
1,20.492
1,271,853
$ 1,428,694 $ 99,716,700 $ 8.455,286 $
1,271,853
1,116,491
14,116,891 $
322,373,599 $
279,115,247
3115,570
385,570
1,160,520
51,905
51,905
836,132
836,132
836,132
47,177,766 47,177,786 4.017,631
99,718,700 9.718,700 9,538,490 109,255,190 91,176,815
885,000
995,000
945,000
557239
289241
289,241
305,179
739,459
739,459
681,281
7,397,630
7,397,830
3,542,246
17,602,543
1,128,134
1.126,134
1,126,134
18,432,204
16,432,204
27,604,952
59,117,730
59,117,730
9,965,000 69.082,730
49,608,921
133,064
133A64
133,064
11,752
2,636,745 2,636,745
2,981,9%
1,428,694
20,898,163
1,286,181
60,455,286
92,641,801
2,807,455 10,660,092 108,109.348
9.%5,840
47,177,766 47,177,786 4.017,631
99,718,700 9.718,700 9,538,490 109,255,190 91,176,815
(ConUuda )
7
557,239
557239
103,759
33,043
33,043
17,602,543
17,602,543
13,133)90
13,791,980
3,456,799
17,248,759
9,416,921
833,788
833,788
937,385
1,371,559
1,371,559
1,166,267
1,428,694
20,898,163
1,286,181
22,184,364
26,596,838
1,428.694 99.716700
201,982,781
10,824,671
3,456,799
216,264,251
182,549.407
$ 1,428,694 $ 99,716,700 $ 8.455,286 $
294,624,582 $
13,632.126 3
14,116,891 $
322,373,599 $
279,115,247
(ConUuda )
7
CITY OF ALLEN, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUND
AND DISCRETELY PRESENTED COMPONENT UNITS
YEAR ENDED SEPTEMBER 30.2000
The Notes to Financial Statements
are an integral pan of this statement.
8
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT
CAPITAL
GENERAL
REVENUE
SERVICE
PROJECTS
REVENUES:
Ad valorem taxes, penalties and interest
$ 8,301,578
It
It 5,187,115 $
Franchise taxes
2,139,442
Municipal sales tax
4,572,178
55,207
License, permits and fees
1,733,140
Charge for services
992.672
438,246
Fines
738,005
Gifts and contributions
1.158,765
Special assessments
18.788
Interest earned
454,155
295,220
250,833
1,611,451
Miscellaneous
868,495
227.524
3.625
32.181
Total revenues
19.799,665
1,736.716
5,441,573
2.100.669
EXPENDITURES
Current:
General government
3,714,436
108,409
Public safety
9,063,625
Public works
1,884,813
78,382
Culture and recreation
3,390,150
Community development
1,230,318
Capital outlay
1,153,095
11,175,612
Debt service:
Principal retirement
2,830,000
Interest and fiscal charges
2,715,171
Total expenditures
19,283,342
1,231,477
5,545.171
11.284,021
Excess (deficiency) of revenues over expenditures
516,323
505.239
(103,598)
(9.183,352)
OTHER FINANCING SOURCES (USES):
Proceeds horn sale of bonds
11,100,000
Sale of land
Operating transfers out to primary government
Operating transfers in from primary government
Operating transfers out b component units
(14,743)
(150,787)
Operating transfers In from component units
121,865
Operating transfers from other funds
1,496,670
1,054,389
Operating transfers to other funds
(1,199,956)
(350,876)
(415,489)
Total other financing sources (uses)
418.579
(365,619)
11.588,113
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
934,902
139,620
(103,598)
2,404,761
FUND BALANCES, BEGINNING OF YEAR
4.577,654
2,075,248
937,366
23,839,745
Residual epuity transfers
(128,147)
(159,617)
159,617
Prior period adjustment
789,025
FUND BALANCES, END OF YEAR
It 5,384.809
$ 2.055.251
$ 833.788 $
27,193,148
The Notes to Financial Statements
are an integral pan of this statement.
8
EXHIBIT A-2
515,144 37,859,155 2,431,002 3.521,974 43,812,131 43,797,522
552,039 (7,713,349) (78,942) (992,267) (8,784,558) _ (16,861,944)
11,100,000
TOTALS
18,465,000
FIDUCIARY
REPORTING ENTITY
FUND TYPE
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
EXPENDABLE
GOVERNMENT
(255,100)
146,191
TRUST
(MEMORANDUM
ECONOMIC
COMMUNITY
(165,530)
FUND
ONLY)
DEVELOPMENT
DEVELOPMENT
2000
1999
$
$ 13,488,693 $
$
$
13,488,693 $
11,111,363
2,139,442
2,455,413
2,139,442
1,898,119
4,627,385
2,286,089
2,286,069
9,199,563
7,195,393
(56.681)
1,733,140
22,011,459
1,733,140
2,006,937
1,430,918
552,039
3,927,724
1,430,918
753,775
2,860,180
738,005
821,842
32,252,075
738,005
671,934
18,516
1,177,281
(128,147)
1,177,281
260,358
(128,147)
18,788
789,025
18,788
2,753
64,217
2,675,876
65,971
243,618
2,985,465
1,880,147
984,450
2,116,278
2.116,278
1.154,799
1,067,183
30,145.806
2,352,060
2,529,707
35.027,573
26,935.578
3,822,845
451,421
1,007
4,275,273
3,134,594
9,063,625
9,063,625
8,006,330
1,963,195
317,955
2,281,150
1,414,093
12,584
3,402,734
3,402,734
2,913,849
1,230,318
74,382
1,304,700
680,960
502,560
12,831,267
1,096,861
2,580,068
16,508,196
20,472,575
2.830,000
345,251
225,000
3,400,251
4,281,047
2,715,171
219.514
641.517
3,576.202
2.894.074
515,144 37,859,155 2,431,002 3.521,974 43,812,131 43,797,522
552,039 (7,713,349) (78,942) (992,267) (8,784,558) _ (16,861,944)
F]
11,100,000
11,100,000
18,465,000
2,722,879
(85,865)
(76,000)
(161,865)
(255,100)
146,191
19,339
165,530
(165,530)
(165,530)
121,865
121,865
225,100
2,551,059
2,551,059
2,455,413
(1,966,321)
(1,966,321)
(1,601,833)
11,641,073
60,326
(56.681)
11,644.738
22,011,459
552,039
3,927,724
(18,616)
(1,048,928)
2,860,180
5,149,515
821,842
32,252,075
1,304,797
4,505,727
38,062,599
32,898,432
(128,147)
(128,147)
14,652
789,025
789,025
$ 1,373,881
1 36.840 ,677 $
1.288,181
$ 3,456,799
$ 41,583,657
$ 38.062,599
F]
CITY OF ALLEN, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND DEBT SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2000
3,714,436
61,463
9,257,050
GENERALFUND
193.425
1,950,887
1,884,813
66,074
VARIANCE -
3,390,150
158,802
1,270,968
FAVORABLE
40,650
BUDGET
ACTUAL
(UNFAVORABLE)
REVENUES:
Ad valorem taxes, penalties and interest
$ 8,9 9;684 $
2,3392 $
Franchise taxes
114
(351,989)
160,328
Municipal sales tax
4,318,833
1,569,599
4,572,178
1,733,140
255,345
163,541
License, permits and fees
1,094,797
992,672
(102,125)
Charge for services
623,459
738,005
114,546
Fines
Interest earned
345,000
454,155
109,155
Miscellaneous
828,889
$68,495
39,606
19,018,375
19,799,665
781,290
Total revenues
EXPENDITURES
Current
General govemment
Public safety
Public works
Culture and recreation
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Operating transfers in from component units
Operating transfers from other funds
Operating transfers to other funds
Total other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES, BEGINNING OF YEAR
Residual equity transfer out
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
10
3,775,899
3,714,436
61,463
9,257,050
9,063,625
193.425
1,950,887
1,884,813
66,074
3,548,952
3,390,150
158,802
1,270,968
1,230,318
40,650
19,803,756
19,283,342
520.414
(785,381)
516,323
1,301,704
60,000
121,865
61,865
1,495,581
1,496,670
1,089
(1,122,189)
(1,199,956)
(77,767)
433,392
418,579
(14,813)
(351,989)
934,902
1,288,891
4,577,854
4,577,854
(128,147)
(128,147)
S 4,225.865
$ 5,384,609
$ 1,158,744
DEBT SERVICE FUND
EXHIBIT A-3
VARIANCE -
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 5,185,814 $ 5,187,115 $ 1,501
183,258 250,833 67,575
3,825 3,625
5,368,872 5,441,573 72,701
2,830,000
2,830,000
2,717,417
2,715,171
2,246
5,547,417
5,545,171
2,246
(178,545)
(103,598)
74,947
(178,545) (103.598) 74,947
937,386 937,386
$ 758,841 $ 833,788 $ 74,947
11
CITY OF ALLEN, TEXAS EXHIBIT A4
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY -
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND
OPERATING REVENUES
Water sales
Sewer charges
Connectionfees
Gamne collections
Sell. Borges
Drainage fees
Recreation fees
Mlscellaneeu6
Total.,.uN revenues
OPERATING EXPENSES:
Personal services
Contractual aero
Maintenit.
Supplms
Depredation so amonivation
Bad deN expanse
Ortner
Tool opemUN expanses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
IntemM In.
Interest expense on revenue bonds
TMaI ml-opemtop revenues (expenses)
INCOME (LOSS) BEFORE OPERATING TRANSFERS
Operating hansom in from component unit
Operating lonsos ham other funds
Op nu, bansfem to other funds
NET INCOME
ADD DEPRECIATION ON CONTRIBUTED ASSETS
INCREASE IN RETAINED EARNINGS I FUND BALANCE
RETAINED EARNINGSIFUND BALANCE, BEGINNING OF YEAR
Residual Nutty transfers
RETAINED EARNINGSIFUND BALANCE, END OF YEAR
CONTRIBUTED CAPITAL AT BEGINNING OF YEAR
Capital contributions
Depredation tmnslened ham reolned eamhgs
Residual epuiy hansom
CONTRIBUTED CAPITAL AT END OF YEAR
FUND EQUITY AT END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
PROPRIETARY
FIDUCIARY
TOTALS
85.319
FUND TYPES
FUND TYPE
(MEMORANDUM ONLY)
INTERNAL
NONEXPENDABLE
182,914
13.702
ENTERPRISE SERVICE
TRUST
2000
1999
10,810.509
S 8,490,270 S
S $
8,490,2]0 $
8,304,831
2,664.419
2,664,419
2,378,260
213,122
213,122
187,152
2.050,347
275,423
2,05034]
1,786,007
296,450 1,153,613
558,5]2
1.450,063
259.598
518,%7
(1630,963)
518,317
464.013
428,690
3,011,516
428,690
378,479
295,330 17,138
929247
312,478
471,609
1 159,030
14,958,983 1,170,751
16,1V,73,1
12,229,947
1,518,969
1,128.038
6,606,830
85.319
180.642
209.025
73,371
78,310
2,263,176
182,914
13.702
64,039
73,819
886,179
112,101
10,810.509
1,397.071
4,146,474
(226.320)
2.647,807
1,8u,601
6,7]2.149
5,381,651
180,842
209.025
73,371
78,310
2,446.090
1,987,168
13,702
64,039
73.819
886,179
12,207 580 10,424,973
3,920,154 1,80.974
1,082,130
112,101
1,194,231
936,515
1901,548)
(901,518)
(988,683)
180.582
112,101
292,683
(52,148)
4,327,056
(114,219)
4,212,837
1,752,0215
40.000
40.000
30,000
275,423
770,802
1,046,225
558,5]2
(1.830963)
(1630,963)
(1,412,151)
3,011,516
656,503
3,668,099
929247
1,159,030
1 159,030
998.529
4,170,546
658,583
4,827,129
1,927,776
11,187,019
2,050,530
54,813
13,292,3152
11,364,586
128,147
128,147
15.357,585
2,835,280
54,813
18,247,838
13,282,362
40,017,831
40,017.831
34.948,487
8.319,165
8,319,165
6,082,325
(1.159.030)
(1,159.030)
(990,529)
(14,652)
47,177,765
47.177,768
40,017,631
S fi2,535.331 $
2,835,2130 $
54,813
5 85,425,404
$ 53,3119993
12
CITY OF ALLEN, TEXAS
COMBINED STATEMENTS OF CASH FLOWS
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND
YEAR ENDED SEPTEMBER 30.2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.1999
EXHIBIT A5
PROPRIETARY FIDUCIARY TOTALS
FUND TYPES FUND TYPE (MEMORANDUM ONLY)
INTERNAL NONExPENDABLE
ENTERPRISE SERVICE TRUST 2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating succeed, toss) $ 4,168,474 $ (228,320) $ E 3,920.151 S 1,804.970
Adjustments to rec dle opemtrng ircnme (loss) to
net cash provided by operating adiv4ies:
Depnscidion and amoni:attai
Gametes unaease) In amounts recehable
Decrease in other ra eivable
(Inaease) in other assets
InGease (decrease) in acwunts payable
In.. in amrved liabilities
Increase (decrease) in accrued compensated absences
Increase In utility deposits
Increase retainage payable
Total adjusbnents
Net paste provided by operating adivitiss
2]83,1]5
182,914
2,448,090
1,887,168
(303.253)
74,742
(28,511)
59097
23.534
Residual equity dmnsfem
8.531
70,68
Net wsh proWded by (used in) noncapital gnandng a odfles
(11,208)
(1,628,575)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
(1.628,876)
1,956,688
41,197
272,791
313,938
8,314
(28,413)
(8,413)
5,632
58,178
Interest paid
58,178
85,654
49,_0.32
(5,002.808)
49.432
192,472
(4,960,373)
(48,305)
474.975
530,447
1.005.422
4.384,480
4,621.69 304,127 4,98,578 8.189,434
CASH FLOWS FROM NOWCAPITAL FINANCING ACTIVITIES:
1,118,422
1,058,901
Operating transfers from other funds
T75,d8
770,802
Operating transfers to other funds
(1.830.963)
3.963.382
Residual equity dmnsfem
(5,389,878)
3.920.275
Net wsh proWded by (used in) noncapital gnandng a odfles
(1,355,540)
770.802
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Contributions from developer
1,898,921
Proceeds from issuance of revenue bonds
Pnncipal ped an revenue bontl matun ties
(945,000)
Interest paid
(917,408)
Amuisl6on and pondmction of capital assets
(5,002.808)
(423,305)
Net rash provided by (used in) capital and misdeal (ands, activities;
(4,960,373)
(48,305)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purrnase of investment sawreles
Proceeds true the sale and maturities of Invesbnmt securities
Inserted an investments
Net cash piwded by lased in) knead, adi ides'
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS. BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
NONCASH FINANCING ACTIVITIES:
Coutnbutions of fated assets Iran developers
NON-CASH NON -CAPITAL FINANCING ACTIVITIES:
Residual equity tauter of aac ,bla
(22,902,000) (1,657,470)
27,58,993
1,118,422
1,058,901
108,675
(94,5.000)
114.8.5.
swam
(48.3791
3.963.382
221,245
1,016,28
516,572
(1,830,883)
(1,412,151)
(94,5.000)
114.8.5.
(917.485)
(584,738)
(838,811
1.898,921
t 089,858
1.185578
12,515,000
(94,5.000)
(3,978,580)
(917.485)
(879,80(y
(5.48,113)
(4,858,201)
(5,389,878)
3.920.275
(24,55),507) (36055.56)
8,647,415
28,129,898
1.185578
837,314
5,263,07
(7,09,962)
4,2(07.607
2,161,516
6.845,174 636,987 54,813 7.536,974 5A76.450
E 10,828,538 $ 858,82E 54,813 It 11,741.511 E 7,58,974
$ 648,207 $_$_3 6,420,244 $ 4,992,09
E E 128,147E S 18.147 E
The Notes to Financial Statements
are an integral pan of this statement.
13
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE t. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Allen (City) was incorporated in 1953, under the provisions of Chapter 11, Title 28, Texas
Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a home rule city
operating under a Council -Manager form of government. The City provides such services as are
authorized by its charter to advance the welfare, health, comfort, safety and convenience of its
inhabitants.
Summary of Significant Accounting Policies
The accounting and reporting policies of the City relating to the funds and account groups included in
the accompanying general purpose financial statements conform to generally accepted accounting
principles for local governmental units as promulgated by the Government Accounting Standards
Board (GASB). The following represent the more significant accounting and reporting policies and
practices used by the City.
Reporting Entity
The accompanying general purpose financial statements include all the accounts of all City
operations. As required by generally accepted accounting principles, these financial statements
present the City and its component units, entities for which the City is considered to be financially
accountable. Blended component units, although legally separate entities are, in substance, part of a
government's operations and data from these units are therefore combined with data of the primary
government. The City has no blended component units. The discretely presented component units,
on the other hand, are reported in a separate column in the combined financial statements to
emphasize they are legally separate from the City, which is the primary government.
The City's reporting entity includes two discretely presented component units, the Allen Economic
Development Corporation (AFDC) and the Community Development Corporation (CDC), which have
September 30 fiscal year ends. AEDC is responsible for aiding, promoting and furthering economic
development within the City. CDC is responsible for supporting the improvements in community parks
and recreation, streets and sidewalks, public safety and the community library. The members of both
AEDC's and CDC's Boards of Directors are appointed by the City Council. Both AEDC and CDC are
fiscally dependent upon the City as the City Council approves their budgets and must approve any
debt issuance. However, the component units do not qualify for blending because the component unit
services directly benefit the community rather than the City itself. AEDC and CDC are presented as
govemmental fund types and do not issue separate financial statements.
Basis of Presentation — Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of which is
considered to be a separate accounting entity. The operations of each fund are accounted for with a
separate set of self -balancing accounts that comprise its assets, liabilities, fund balance/retained
earnings, revenues and expenditures/expenses. Account groups are a reporting device to account for
certain assets and liabilities of the govemmental funds not recorded directly in those funds. The
various funds are summarized by type in the general purpose financial statements. The City uses the
following fund types and account groups.
14
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued
Governmental Fund Types
Governmental funds are used to account for the City's general government activities. Governmental
fund types use the flow of current financial resources measurement focus. Generally, only current
assets and current liabilities will be included on the balance sheet. The operating statements for
these funds represent changes in net current assets. These funds follow the modified accrual basis of
accounting. Under such modified accrual basis of accounting, where revenues are recognized when
susceptible to accrual (i.e., when they are measurable and available). "Measurable" means the
amount of the transaction can be determined and "available" means collectible within the current
period or soon enough thereafter to pay liabilities of the current period. The City considers all
revenues available if they are collected within 60 days after year end. Expenditures are rewrded
when the related fund liability is incurred, except for unmatured interest on general long-term debt
which is recognized when due, and certain compensated absences and claims and judgments which
are recognized when the obligations are expected to be liquidated with expendable available financial
resources.
Property taxes, sales taxes, franchise taxes and interest are susceptible to accrual. Other receipts
(special assessments) become measurable and available when cash is received by the City and are
recognized as revenue at that time. The following are the City's governmental fund types:
General Fund — The General Fund is the general operating fund of the City. It is used to account for
all financial resources except those required to be accounted for in another fund. All general tax
revenues and other receipts that are not allocated by law or contractual agreement to other funds are
accounted for in this fund.
Special Revenue Fund — The Special Revenue Funds account for the proceeds of specific revenue
sources (other than expendable trusts or major capital projects) that are legally restricted to
expenditures for specified purposes.
Debt Service Fund — The Debt Service Fund amounts for the accumulation of resources for and the
payment of general long-term debt principal, interest and related costs.
Capital Projects Funds — The Capital Projects Funds account for resources to be used for the
acquisition or construction of major capital facilities, other than those financed by the proprietary fund
types.
15
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—(continued)
Proprietary Fund Types
Proprietary Funds are accounted for on the flow of economic resources measurement focus and use the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred. The balance sheets of these funds present all assets and
liabilities associated with the funds and segregate fund equity into contributed capital and retained
earnings. The operating statements for these funds present changes in net total assets. In accordance
with paragraph 7 of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds
and Other Governmental Entities That Use Proprietary Fund Accounting, the City applied all FASB
statements issued on or before November 30, 1989, unless they conflict with or contradict GASB
pronouncements, and has chosen not to follow FASB statements issued subsequent to that date.
Proprietary funds of the City include the following fund types:
Enterprise Fund — The Enterprise Funds are used to account for the operations (a) that are financed
and operated in a manner similar to private business enterprises where the intent of the governing body
is that the costs (expenses, including depreciation) of providing goods or services to the general public
on a continuing basis be financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control, accountability or
other purposes.
Internal Service Fund — The Internal Service Fund is used to account for the financing of goods or
services provided by one department or agency to other department or agencies of the City, or to other
governmental units, on a cost -reimbursement basis.
Fiduciary Fund Types
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on
behalf of others. Trust funds account for assets held by the government under the terms of a formal
trust agreement.
Expendable Trust Funds — Expendable Trust Funds are accounted for and reported in essentially the
same manner as governmental funds, using the same measurement focus and basis of accounting.
Expendable trust funds account for assets where both the principal and interest may be spent.
Nonexpendable Trust Fund — The Cemetery Trust Fund is the City's sole nonexpendable trust fund
and is accounted for and reported in essentially the same manner as proprietary fund types using the
same measurement focus and basis of accounting. The trust corpus or principal of the Cemetery Trust
Fund cannot be spent.
16
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—(continued)
Account Groups
Account groups are used to establish accounting control and accountability for the City's general fixed
assets and general long-term liabilities that are not accounted for in proprietary or trust funds. The
following are the City's account groups:
General Fixed Assets Account Group — This account group is established to account for fused assets
of the City, except for those accounted for in the proprietary fund types.
General Long -Term Debt Account Group — This account group is established to account for all long-
term liabilities of the City, except those accounted for in the proprietary fund types.
Cash, Cash Equivalents and Investments
State statutes and policy as established by the City Council authorize the City to invest in certificates of
deposit, direct obligations of the U.S. Treasury, investment pools consisting of such U.S. Treasury
obligations, repurchase agreements, commercial paper and mutual funds. Investments are stated at
cost or amortized cost, which approximates market. Substantially all operating cash and cash
equivalents are maintained in pooled cash and time deposit accounts. Interest income relating to
pooled deposits is allocated to the individual funds based on each fund's pro rata share of total pooled
deposits.
For purposes of the statement of cash flows, the proprietary and non -expendable trust 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.
Budget
The City Council adheres to the following procedures in establishing the budgets reflected in the
accompanying general purpose 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 taxpayer comments.
3. Prior to 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 and Debt Service Fund on a basis
consistent with generally accepted accounting principles. Formal budgetary integration is not
employed for proprietary funds. However, the City does adopt an annual budget for those funds
for managerial control. Additionally, formal budgetary integration is employed as a management
control device in the Special Revenue Funds and Capital Project Funds for the life of the related
grants or projects.
17
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —(continued)
Budget — continued
5. The City Manager is authorized to adjust budgeted amounts; however, such revisions may not
result in total expenditures (appropriations) in excess of budgeted revenues at the fund level
without approval of the City Council. Therefore, the legal level of budgetary control is the fund
level.
6. Annual budgets are prepared in accordance with generally accepted accounting principles
(GAAP) and are legally adopted for the General Fund and Debt Service Fund. Budgets for the
Special Revenue Funds and Capital Project Funds are normally established pursuant to the terms
of the related Federal and State grant awards or to the term of the related bond indentures; that
is, on a program or project basis. Accordingly, budgetary data for the Special Revenue Funds
and Capital Project Funds has not been presented in the Combined Statement of Revenues,
Expenditures and Changes in Fund Balances — Budget and Actual. Such statement presents only
comparison of budgetary data to actual results of operations for the government funds for which
annual operating budgets are legally adopted.
Budgeted amounts are as originally adopted, or as legally amended. The City Council may amend the
budget by passing a budget appropriation ordinance. In fiscal year 2000, a budget amendment totaling
$281,205 for the General Fund was approved by the City Council.
Investments
Investments are accounted for in accordance with GASB 31, Accounting for Financial Reporting for
Certain Investments and for External Investment Pools. Investments are recorded at cost, as the
original maturities of the City's investments are less than one year.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is
utilized in the governmental funds. Under the City's budgetary process, appropriations lapse at fiscal
year end. Encumbrances are reported as reservations of fund balances because they do not constitute
expenditures or liabilities.
Transactions Between Funds
Advances between funds are accounted for in the appropriate interfund receivable and payable
accounts. All legally authorized transfers are appropriately treated as operating transfers and are
included in the results of operations of both governmental and proprietary funds. Nonrecurring or
nonroutine transfers of equity between funds — for example, contribution of capital assets to a
proprietary fund or transfers of residual balances of discontinued funds to other funds — are accounted
for as residual equity transfers.
fRl
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —(continued)
Special Assessments
The City has the authority to make special assessments to property owners as part of the financing of
capital improvements. Such assessments are recorded in the capital projects fund as receivables
when assessed and are recognized as revenue when both the measurable and available criteria have
been met (generally when collected).
General Fixed Assets
General fixed assets that have been acquired for general governmental purposes are recorded as
expenditures in the governmental funds and capitalized at cost or at estimated historical cost if
purchased or constructed in the general fixed assets account group. Contributed fixed assets are
recorded in general fixed assets at estimated fair market value at the time received. No depreciation
has been provided on general fixed assets, nor has interest been capitalized.
Public domain (infrastructure) general fixed assets contributed by subdividers or other contractors
consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters,
streets and sidewalks, drainage systems, and lighting systems, are not capitalized. Such assets
normally are immovable and of value only to the City; therefore, the purpose of stewardship for these
items is satisfied without recording these assets.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not included in the general fixed asset account group or capitalized in the
proprietary funds.
Proprietary Funds — Property, Plant and Equipment
Property, plant and equipment owned by the proprietary funds is stated at cost or estimated fair
market value at the date contributed. Depreciation has been provided on a straight-line basis over the
estimated useful lives of the assets. The estimated useful lives are as follows:
Utility plant in service
40 years
Pump station
40 years
Machinery and equipment
6 years
Vehicles
2 years
Maintenance, repairs and minor renewals are charged to operating expense; major property
replacements are capitalized.
Depreciation on contributed assets is recorded as an expense in the statement of operations, and
then charged to the related contributed equity account.
Capitalization of interest related to proprietary funds constructed assets, other than those contributed
by subdividers, during the year ended September 30, 2000, was not material, and therefore, was not
recorded in the accompanying general purpose financial statements.
19
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —(continued)
Intergovernmental Revenues
Intergovernmental revenues and related receivables arise through funding received from Federal and
State grants and revenue from inter -local agreements with other governmental entities. Grant
revenue is recognized when the expenditures are made and other related requirements are met.
Vacation and Sick Leave
City employees earn vacation and sick leave, which may either be taken or accumulated, up to certain
amounts, until paid upon retirement or termination. Upon termination or retirement, an employee is
reimbursed up to a maximum number of hours of vacation pay and sick leave based upon the years of
service. Compensated absences pay and related salary payments are accrued when incurred in
proprietary funds and reported as a fund liability. Amounts that are expected to be liquidated with
expendable available financial resources are reported as an expenditure and a fund liability of the
governmental fund that will pay it. Amounts not expected to be liquidated with expendable available
financial resources are reported in the general long-term debt account group. No expenditure is
reported for these amounts.
Fund Deficits
The Development Fees Fund has a retained earnings deficit of $758,700.
Fund Equity
Contributed capital is recorded in proprietary funds that have received capital grants or contributions
from developers, customers or other funds. Reserves represent those portions of fund equity not
appropriable for expenditures or legally segregated for a specific future use. Designated fund
balances represent tentative plans for future use of financial resources.
Bond Issuance Costs
Bond issuance costs for governmental fund type debt are recognized in the current period. In
proprietary fund types, these costs are recorded as deferred charges and amortized over the term of
the bonds using the effective interest method.
Comparative Data
Comparative total data for the prior year have been presented in selected sections of accompanying
general purpose financial statements in order to provide an understanding of the changes in the
government's financial position and operations.
Memorandum Only — Total Columns
The total columns presented in the general purpose financial statements are captioned "Memorandum
Only" to indicate that they are presented only to facilitate financial analysis. No consolidating entries
or other eliminations were made in the aggregation of the totals; thus, they do not present
consolidated information and do not purport to present financial position, results of operations or cash
flows in conformity with generally accepted accounting principles.
179
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE2. PROPERTYTAXES
The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1
for all real and certain personal property located in the City. Appraised values are established by the
Central Appraisal District of Collin County at 100% of estimated market value and certified by the
Appraisal Revenue Board. The assessed value upon which the 2000 levy was based was
$2,287,107,121.
Taxes are due on October 1 and are delinquent after the following January 31. Current tax collections
for the year ended September 30, 2000, were 99.57% of the current tax levy.
Property taxes levied for 2000 are recorded as receivables, net of estimated uncollectibles. Tax
receivables collected during the current period have been recognized as revenues in 2000. The
remaining receivables are reflected as deferred revenue at September 30, 2000. Taxes estimated to be
collectible within 60 days following the close of the fiscal year are not material to the general purpose
financial statements and are therefore not recognized as revenue.
The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to $2.50
per $100 of assessed valuation for general governmental services, including the payment of principal
and interest on general obligation long-term debt. The combined tax rate to finance general
governmental services including the payment of principal and interest on long-term debt for the year
ended September 30, 2000 was $0.5740 per $100 of assessed valuation.
In Texas, countywide central appraisal districts are required to assess all property within the appraisal
district on the basis of 100% of its appraised value and are prohibited from applying any assessment
ratios. The value of property within the appraisal district must be reviewed every five years; however,
the City may, at its own expense, require annual reviews of appraised values.
The City may challenge appraised values established by the appraisal district through various appeals
and, if necessary, legal action. Under this legislation, the City continues to set tax rates on City
property. However, if the effective tax rate, excluding tax rates for bonds and other contractual
obligations, adjusted for new improvements, exceeds the rate for the previous year by more than 8%,
qualified voters of the City may petition for an election to determine whether to limit the tax rate to no
more than 8% above the tax rate of the previous year.
NOTE 3. DEPOSITS, INVESTMENTS, AND INVESTMENT POLICIES
Deposits — State statutes require that all deposits be fully collateralized by U.S. Government obligations
or obligations of Texas and its agencies that have a market value of not less than the principal amount
of the deposits.
The City's demand deposits and certificates of deposit were fully insured or collateralized at September
30, 2000, with collateral required by the State statutes. At year-end, the carrying amount of the City's
deposits was $1,906,448 and the bank balance was $609,908. Of the bank balance, $200,000 was
covered by Federal Depository Insurance and the remainder was covered by collateral held by the
pledging financial institution's agent in the City's name. The City's petty cash balance at September 30,
2000, was $3,269.
21
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 3. DEPOSITS, INVESTMENTS, AND INVESTMENT POLICIES—(continued)
The carrying amount of the deposit for Community Development Corporation, a discretely presented
component unit, was $1,095,611, with no corresponding bank balances as it is pooled with the City's
deposits.
Investments — State statutes authorize the City to invest in U.S. Government obligations, obligations
of Texas and its agencies and fully collateralized repurchase agreements. Investments are recorded
at cost, as the original maturities of the City's investments are less than one year.
Investments are categorized into three categories as defined by GASB Statement No. 3 to give an
indication of the level of risk assumed by the entity at year-end: Category 1 includes investments that
are insured or registered or for which the securities are held by the City or its agents in the City's
name. Category 2 includes uninsured and unregistered investments for which the securities are held
by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured
and unregistered investments for which the securities are held by the counterparty, or by its trust
department or agent but not in the City's name. At September 30, 2000, the City had no Category 2
or 3 investments.
The City, AEDC and CDC invest in the Texpool which is an investment fund authorized by the Texas
Legislature and administered by the Texas State Treasury. The Texas Treasury Safekeeping Trust
Company is trustee of Texpool and is a limited purpose trust company authorized pursuant to Texas
Government Code. The purpose of the Texpool is to allow for the pooling of public funds to provide a
higher yield on the pooled investment than would be possible with the investment of the individual
public entity's funds. Texpool investments are subject to the same investment policies maintained by
the State Treasury for all state funds. The Legislature has authorized only certain investment
instruments for public funds, including repurchase agreements, U.S. Treasury bills and bonds,
securities of other U.S. government agencies, commercial paper and other safe instruments. The
investment in Texpool and any accrued interest may be redeemed at the City's discretion. The City's
position in the pool is not materially different from the value of the pool shares.
Amounts invested in Texpool, by the City, AEDC and CDC, respectively, are not categorized in
accordance with GASB No. 3 because they are not evidenced by securities that exist in physical or
book entry form. At September 30, 2000, the City's investment balances were as follows:
22
Category
Carrying
Fair
1
Amount
Value
U.S. Treasury Bills
$ 5,646,955
$ 5,646,955
$ 5,821,829
Other Government Agency Securities
29,142,793
29,142,793
30,255,016
Texpool
29 710.559
29 710.559
22
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 3. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES - continued
At year-end, AEDC's investment balances were as follows
At September 30, 2000, construction in progress consisted of utilities construction, street paving and park
improvement projects for which total contract commitments of $15,880,553 have been encumbered.
Future expenditures for capital projects will be funded from unexpended bond proceeds and additional
general obligation bonds. Authorization to issue additional bonds may be requested from the qualified
voters of the City.
23
Category
Carrying
Fair
1
Amount
Value
U.S. Treasury Bills $
200,000
$ 200,000
$ 206,138
Other Government Agency Securities
400,000
400,000
413,150
Texpool
$
600.000
411.364
411.364
At year-end, CDC's investment balances were as follows:
$ 1.011.364
$ 1.030.652
Category
Carrying
Fair
1
Amount
Value
U.S. Treasury Bills $
200,000
$ 200,000
$ 206,138
Other Government Agency Securities
1,217,000
1,217,000
1,254,404
Texpool
$
1.417.000
1.177.570
$ 2.594.570
1.177.570
$ 2.638.112
NOTE 4. FIXED ASSETS
A summary of changes in general fixed assets at
September 30, 2000, follows:
Balance,
Balance,
October 1,
September 30,
1999
Additions
Transfers
2000
Land $ 7,842,099
$ 2,363,764
$ 4,854,697
$ 15,060,560
Buildings and
improvements 9,003,915
3,447,146
1,705,805
14,156,866
Improvements other
than buildings 36,669,692
5,615,722
13,161,984
55,447,398
Machinery and equipment 10,232,032
1,552,049
654,541
12,438,622
Construction in progress 9.587.970
4.002.833
f 10.977.5491
2.613.254
Total $ 73.335.708
$ 16.981514
S 9.399.478
$ 99 716.700
At September 30, 2000, construction in progress consisted of utilities construction, street paving and park
improvement projects for which total contract commitments of $15,880,553 have been encumbered.
Future expenditures for capital projects will be funded from unexpended bond proceeds and additional
general obligation bonds. Authorization to issue additional bonds may be requested from the qualified
voters of the City.
23
"CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 4. FIXED ASSETS -continued
A summary of proprietary fund type property,
plant and equipment at September 30, 2000, is as follows:
Internal
Enterprise
Service
Land
$ 601,840
$
Utility plant in service
68,463,477
2000
Pump station
2,528,832
294,410 $
Machinery and equipment
1,605,745
158,203
Construction in progress
6.364.721
Vehicles
223.048
939.282
79,787,663
1,097,485
Less accumulated depreciation
(17,180,699)
(572,426
Total fixed assets
Activity in the general fixed asset group for the AEDC for the year ended September 30, 2000, follows
24
Balance,
Balance,
October 1,
September 30,
1999 Additions
Deletions
2000
Land
$ 2,674,890 $
294,410 $
$ 2,969,300
Improvements other than
buildings
5,694,237
5,694,237
Machinery and equipment
64,383
9,645
74,028
Construction in progress
8.119 792.806
$ 6,441,629 $ 1.096.861 $
800.925
$ 0.538.490
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transaction,.including current portion,
for the year ended September 30,
2000, is as follows:
Proprietary
Geneml
Lano-Tern L-TernDebt
Fund Types
AEDC
CDC
Accrued
General
Sales Tax
Compensated
Obligation Lease
Revenue
Notes
Revenue
Absences
Balls Pavable
Bonds
Payable
Bonds
Amounts payable
at beginning of year $ 1,020,717
$ 50,654,249 $ 11,752
$18,359,952
$ 2.981,996
$ 10,190,000
Additions 183,775
11,293,481 149,218
Reductions
12830.000) (27,906
( 932.748)
(345,251
(2 5,000)
Amounts payable
at end of year E 1?04.492
S 59 117,730 $ 133,064
$17,427204
E 2 636 745
5 9.%6000
24
-CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE5. LONG-TERM DEBT -continued
Long-term debt at September 30, 2000 is composed of the following individual issues:
General Obligation Bonds:
$100,000 Series 1966 Bonds due in annual installments
of $5,000 to $15,000 beginning November 1, 1995
through November 1, 2004; interest at 5.75%.
$16,053,921 Series 1992 Bonds due in annual installments
of $30,000 to $2,135,000 through September 1, 2007;
interest at 3% to 6.35%.
$7,015,000 Series 1994 Bonds due in annual installments
of $165,000 to $565,000 through September 1, 2015;
interest at 5.5% to 8%.
$7,100,000 Series 1996 Bonds due in annual installments
of $130,000 to $585,000 through September 1, 2016;
interest at 5% to 7%.
$10,000,000 Series 1998 Bonds due in annual installments
of $95,000 to $795,000 through September 1, 2018;
interest at 4.5% to 6.5%.
$13,340,000 Series 1999 Bonds due in annual installments
of $320,000 to $1,055,000 through September 1, 2019;
interest at 4.875% to 6.375%.
$11,100,000 Series 2000 Bonds due in annual installments
of $115,000 to $915,000 through September 1, 2020;
interest at 5.0% to 6.5%.
Lease Payable
Revenue Bonds:
$8,545,000 Series 1992 Bonds due in annual installments
of $95,000 to $705,000 through June 1, 2012;
interest at 3.25% to 6.4%.
$4,100,000 Series 1995 Bonds due in annual installments
of $115,000 to $335,000 through June 1, 2015;
interest at 5.125% to 7.125%.
25
$ 55,000
13,227,730
5,820,000
6,305,000
9,590,000
13,020,000
11.100.000
$ 59.117.730
$ 133.064
$ 1,980,000
3,465,000
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTES. LONG-TERM DEBT—continued
Revenue Bonds- continued:
$12,545,000 Series 1999 Bonds due in annual installments
General
of $330,000 to $950,000 through June 1, 2019;
Notes
interest at 3.55% to 5%.
$ 12,215,000
Unamortized Bond Discount
(2$2.7961
$ 17.427.204
CDC
Bonds
Sales Tax Revenue Bonds:
Bonds
$5,350,000 Series 1997 Bonds due in annual installments
$ 6,484,839
of $125,000 to $435,000 through September 1, 2017;
$ 1,861,484
interest at 4.63% to 6.63%.
$ 4,895,000
$5,125,000 Series 1999 Bonds due in annual installments
1,854,609
of $55,000 to $400,000 through September 1, 2017;
6,467,954
interest at 4.5% to 6%
5.07 .000
$ 9.965.000
AEDC
6,444,026
Notes Payable:
1,857,806
$3,947,595 due in monthly principal and interest installments of
6,420,889
$47,064 through May 1, 2013; interest at 7.75% through 2002
1,860,131
at which time rate will be adjusted based on the note agreement.
$ 2.636.745
The annual requirements to amortize all debt outstanding as of September 30, 2000, are as follows:
The annual requirements to amortize the $1,126,134 contract payable of the Water and Sewer
Enterprise Fund are not determinable due to the variable means of payment and are not included in
the above table (see Note 9).
FEV
General
Notes
Years Ending
Obligation
Lease
Revenue
September 30
Bonds
Payable
Bonds
2001
$ 6,484,839
$ 40.268
$ 1,861,484
2002
6,482,188
40,268
1,854,609
2003
6,467,954
32,426
1,859,091
2004
6,444,026
19,851
1,857,806
2005
6,420,889
14,868
1,860,131
Subsequent
57,308,153
15,597,506
Less applicable interest
( 30,490,319)
( 14,637)
( 7,230,627)
Unanwrezed bond discount
( 232.796)
Principal due
L=L= 730
$ 1330W
$17.42] 204
The annual requirements to amortize the $1,126,134 contract payable of the Water and Sewer
Enterprise Fund are not determinable due to the variable means of payment and are not included in
the above table (see Note 9).
FEV
Sales Tax
Notes
Revenue
Pavable
Bonds
Total
$ 554,765
$ 857,270
$ 9,808,626
564,765
860,776
9,802,606
564,765
857,689
9,781,925
564,765
848,339
9,734,787
564,765
543,026
9,703,699
458,747
11,070,904
86,435,310
( 645,827)
( 5,373,004)
(43,754,414)
The annual requirements to amortize the $1,126,134 contract payable of the Water and Sewer
Enterprise Fund are not determinable due to the variable means of payment and are not included in
the above table (see Note 9).
FEV
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 5. LONG-TERM DEBT -continued
At September 30, 2000, the City had $40,820,000 in General Obligation Bonds and $1,512,000 in
revenue bonds, which were authorized and unissued.
(a) General Obligation Bonds
The City is required by ordinance to create from ad valorem tax revenues a sinking fund sufficient
to pay the current interest and principal installments as they become due. The Debt Service Fund
has $833,788 available to service the general obligation debt at September 30, 2000. There are a
number of limitations and restrictions contained in the various general obligation bond indentures.
The City is in compliance with all significant limitations and restrictions at September 30, 2000.
(b) Revenue Bonds
In prior years, the City defeased certain outstanding revenue bonds by placing the proceeds of new
bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the
City's financial statements. Al September 30, 2000, the amount of defeased revenue bonds
outstanding was $1,980,000.
The City is required by the applicable revenue bond indentures to pledge the net revenues of the
Water and Sewer Enterprise Fund for the retirement of its outstanding revenue bonds, including
interest thereon, and is required to maintain debt service funds and bond reserve funds for all such
bonds outstanding.
Funds aggregating $659,346 at September 30, 2000 are restricted within the Water and Sewer
Enterprise Fund for servicing of the debt. The respective bond indentures require the City to make
equal monthly payments to the restricted accounts to accumulate the annual principal and interest
requirements as they become due.
The ordinances authorizing the Revenue Bonds stipulate that the City will deposit, in addition to
principal and interest requirements, certain amounts in a reserve fund. Amounts in the reserve fund
are to be used to pay principal and interest on outstanding bonds at any time sufficient funds are not
available in the bond interest and redemption fund. The bond indentures require that the City
accumulated reserves to an amount equal to the average annual principal and interest requirements
of all outstanding bonds secured by the net revenues of the system. Such reserves are funded up
to the required level in equal monthly installments over a maximum five-year period, as defined in
the indentures. Amounts in the reserve fund at September 30, 2000 of $1,182,134 are adequate to
meet the reserve requirements.
At September 30, 2000, restricted assets, which include Revenue Bond Debt Service and Reserve
Funds, were as follows:
Revenue bond debt service $ 659,346
Revenue bond reserve fund 1,182,134
Utility deposits 739.459
27
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTES. LONG-TERM DEBT -continued
The amount of retained earnings reserved for revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds $ 1.841.480
Less:
Accrued interest, payable from restricted assets (289,241)
Current maturities of revenue bonds,
Payable from restricted assets (995.000)
Reserved for revenue bond principal and interest $ 567,239
The City is in compliance with the various requirements of the bond ordinances. This covenant
requires that operating revenues, as defined, cover the current debt requirement including principal
and interest by a minimum of 1.2 times. Such coverage at September 30, 2000 was 3.7 times.
(c) Capital Leases
The City has entered into agreements for the lease/purchase of various machinery and equipment
used by the City. The City recorded these capital leases as assets and the related obligations at
the present value of the minimum lease payments, which approximated the fair value of the leased
equipment.
The following is a schedule of future minimum lease payments under the capital leases together
with the present value of the net minimum lease payments as of September 30, 2000:
Years Ending
Capital
September 30,
Lease
2001
$ 40,268
2002
40,268
2003
32,426
2004
19,851
2005
14.888
Future minimum lease payments
147,701
Less amount representing interest
14.637
Present value of future minimum lease payments
31
,CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2000
NOTE 6. RETIREMENT PLAN
Plan Descriotion
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
contributory, defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), one of
over 731 administered by TMRS, an agent multiple -employer public employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City -
financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for
service rendered before the plan began of a theoretical amount equal to two times what would have been
contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service
since the plan began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions.
In addition, the City can grant, as often as annually, another type of monetary credit referred to as an
updated service credit which is a theoretical amount which, when added to the employee's accumulated
contributions and the monetary credits for service since the plan began, would be the total monetary
credits and employee contributions accumulated with interest if the current employee contribution rate and
city matching percent had always been in existence and if the employee's salary had always been the
average of his salary in the last three years that are one year before the effective date. At retirement, the
benefit is calculated as if the sum of the employee's accumulated contributions with interest and the
employer -financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 or more years of service or with 20 years of service
regardless of age. A member is vested after 10 years. The plan provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS and within the actuarial
constraints also in the statutes.
The pension plan does not issue separate reports on the pension plan. However, TMRS does issue a
publicly available report that includes financial statements and supplementary information for the plan as a
whole, but not for individual employers. That report can be obtained from Texas Municipal Retirement
System, 1200 North Interstate 35, Austin, Texas 78711-9153.
Contributions
The contribution rate for the employees is 7%, and the City matching ratio is currently 2 to 1, both as
adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually
determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from year to year.
The normal cost contribution rate finances the currently accruing monetary credits due to the City
matching percent, which are the obligation of the City as of an employee's retirement date, not at the time
the employee's contributions are made. The normal cost contribution rate is the actuarially determined
percent of payroll necessary to satisfy the obligation of the City to each employee at the time his/her
retirement becomes effective. The prior service contribution rate amortizes the unfunded (over funded)
actuarial liability (asset) over the remainder of the plan's 25 -year amortization period. The unit credit
actuarial cost method is used for determining the City contribution rate. Both the employees and the City
make contributions monthly. Since the City needs to know its contribution rate in advance to budget for it,
there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar
year when the rate goes into effect. (i.e. December 31, 1999 valuation is effective for rates beginning
January 2001).
!&I
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 6. RETIREMENT PLAN - continued
Schedule of Actuarial Liabilities and Funding Progress
Actuarial V tl Date 1999
_142 1997
1996
—1996
1994_
Actuarial value of assets (1) $ 14,193,181
s 11,599,541 $ 9,549,733
$ 7,994,671
$ 6,443,075
8,158,063
$ 5,353,330
6,550,900
Actuarial accrued liability (1) 17,723,052
15,743,031 12,476,918
10,101,805
79%
82%
Percentage funded 80%
75% 77%
79%
Unfunded Actuarial Accrued
Liability (UAL) 3,572,871
3,873,490 2.927,185
2,107,134
1,714,988
928,793
Annual covered payroll (2) 10,994,145
8,9861988 7,274,772
6,868.655
5,717.722
5,138,146
UAAL as a percentage of
32%
43% 40%
31%
30%
18%
covered payroll
Net Pension Obligation (NPO)
at the beginning of period
Annual pension cost (1):
Annual Required Contribution (ARC) 1,218,421
1,040,079 834500
706,429
523,722
399,910
Interest on NPO
Adjustment to ARC
Contributions made (2) 1,218,421
1,040,079 834,500
706,429
523,722
399,910
Increase in NPO
NPO at Ne end of the period $
$ S
L—
L—
S
Annual City TMR pension cost and related information for the last three years
is as follows:
2000
1999
1998
Annual required contribution (ARC)
$ 1,218,421 $
1,040,079
$
834,500
Actual contribution
1,218,421
1,040,079
834,500
Net pension obligation
Actuarial cost method
Unit Credit
Unit Credit
Unit
Credit
Amortization method
Level %of payroll Level %of Payroll
Level %of
Payroll
Asset valuation method
Amortized cost Amortized Cost
Amortized Cost
Amortization period
25 Years
25 Years
25 Years
Actuarial assumptions:
8%
8%
Investment rate of return
8%
Inflation rate
None
None
None
Projected salary increases
None
None
None
COA adjustments
None
None
None
NOTE 7. DEFERRED COMPENSATION
As a result of legislative changes, all amounts of compensation deferred, all property and rights
purchased, and all income, property or rights are (until paid or make available to the employee or other
beneficiary) held in trust for the exclusive benefit of the participants and their beneficiaries, whereas, prior
to these legislative changes, these amounts were solely the property and rights of the City subject only to
the claims of the City's general creditors. As a result, at September 30, 2000, the defamed compensation
investments are no longer reported in the City's financial statements.
30
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 8. WATER AND SEWER CONTRACTS
In 1972, the City entered into 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. During 2000, the cost of water purchased under this contract was $1,999,299.
In 1978, the City entered into a contract with the District for the transportation, treatment and disposal of
sanitary sewage and other waste. The contract will continue in force at least until all bonds issued by the
District pursuant to the contract have been paid in full and will remain in force thereafter throughout the
useful life of the District's sanitary sewer system. The contract requires the City to pay varying amounts
based on the costs associated with sewage transported and/or treated and disposed of. The cost includes
the City's proportionate share of the District's operating and maintenance expenses and related debt service
costs. During 2000, the cost for transportation, treatment and disposal of sewage and other wastes was
$2,016,736.
NOTE 9. CONTRACT PAYABLE
The City entered into an agreement to repay Betz Corporation (Betz) for the cost of construction of utilities
required to service a factory outlet mall constructed by Betz. Construction of the utilities was completed in
1984 at a total cost of approximately $1,297,000 At September 30, 2000, the recorded amount payable
under this contract was $1,126,134. The obligation bore an interest rate of 12.6% through 1987 when it
converted to a variable rate of prime plus 2%. Interest accrued on outstanding principal plus unpaid interest
until June 17, 1991, at which time no further interest accrued on the remaining outstanding obligation. The
City will repay this obligation out of Water and Sewer Enterprise Fund operations in an amount not to exceed
(1) all connection fees paid by developers to the City for connecting with the aforementioned utilities and (2)
future sales taxes collected by the City from the operations of the mall which commenced operations during
1984. The aforementioned utilities and incremental sales taxes have been pledged as security on the
agreement.
The mall ceased operations during the fiscal year ended September 30, 1988. In the absence of revenue
streams mentioned in (1) and (2) above, no payment on the obligations is currently due and interest ceased
to accrue after June 17, 1991, as described above.
NOTE 10. SEGMENT DISCLOSURE
The City maintains six Enterprise Funds. The Water and Sewer Fund accounts for water and wastewater
treatment service to the City. The Solid Waste Fund accounts for the collection and disposal of refuse. The
Development Fees Fund accounts for completion of development in new subdivisions. The Drainage Fund
accounts for the City's storm water management program. The Parks and Recreation Fund accounts for the
City's recreational facilities. The Aquatics Enterprise Fund accounts for the operations and maintenance of
the City's leisure and competitive swimming pools. Key financial information as of and for the year ended
September 30, 2000 for these funds is listed on the following page:
31
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2000
NOTE10. SEGMENT DISCLOSURE -continued
Water
Solid
Development Parks and
Aquatics
and Sewer
Waste
Fees Drainage Recreation
Entegxise
Fund
FUM
Fund Fund -Fund
Fund Total
Operating revenues $11,852,079
$2,050,347
$ $ 560,762 $ 493,795
$ $14,956.983
Operating expenses
(excluding depreciation) 5,862,644
Depredation and
amortization
1,989,907
Operating Income (loss)
3,999,528
Operating transfers In
10,423
Operating transfers out
( 1,460,794)
Net income (loss)
2,496,840
Current assets
16,741,752
Cunent liabilities
3,230,738
Net working capital
13,511,014
Total assets
75,938,380
Current capital -
contributions
6,420,244
Net property, plant
315,423
and equipment
59,143,428
Property, plant and
equipment additions
3,615,401
Bonds and other
( 104,199)
long-term liabilities -
25,322
payable from
3.011,516
operating revenues
17,427,204
Total equity $54.313,172
1,869,856
286,159
528,359
315
8,547,333
251,667
11,319
10,283
2,263,176
180,491
( 251,667)
263,284 (
44,847)
( 315)
4,146,474
55,000
250,000
315,423
28,820)
( 141,349)
( 1,630,963)
176,758
( 104,199)
165,122
25,322
251,673
3.011,516
632.848
3,106,497
755,034
252,291
251,988
21,740,410
143,990
55,752
15,468
18.510
315
3,464.773
488,858
3,050,745
739,566
233,781
251,673
18,275,637
632,848
6,278,824
1,006.553
285.981
251,988
84,394,574
1,898,921
8,319,165
3,172,327
251,519
33,690
62,600,964
1,336,199
48,866
2,342
5,002,808
17,427,204
$ 488,858 $6,223,072 $ 991,085 $ 267,471 $ 251,673 $62,535,331
NOTE 11. SELF-INSURANCE AND RISK MANAGEMENT
The City has established a self-insurance plan for City and employees and their covered dependents. The
City self -insures its employees and their dependants for medical and dental care up to certain amounts per
insured person and in the aggregate. At September 30, 2000, the annual limitation on City health claim
expense was $25,000 per person. A third -party insurance company re -insures the City for individual claims
in excess of $25,000 up to a lifetime maximum of $1,000,000. The maximum claim for all employees, in the
aggregate, is based upon a formula. All claims and maximums are calculated for a plan year ending each
December 31.
There has been no significant reduction in insurance coverage in prior fiscal years and the amount of claim
settlements has not exceeded insurance coverage for the past five fiscal years.
Accrued liabilities include provisions for claims reported and claims incurred but not reported. The provision
for reported claims is determined by estimating the amount that will ultimately be paid to each claimant. The
provision for claims incurred but not yet reported is estimated based on the City's experience since the
inception of the program.
Premium payments are reported as quasi -external interfund transactions; accordingly, they are treated as
operating revenues of the Self -Insurance Internal Service Fund and operating expenditureslexpenses of the
participating funds.
32
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2000
NOTE 11. SELF-INSURANCE AND RISK MANAGEMENT -continued
Changes in the claims liability during fiscal year ending September 30, 2000, were as follows:
Current Year
The City is exposed to varying degree of risk and loss from liability claims, auto and vehicle liability, mechanical
breakdown of equipment, and loss of property due to natural disasters and vandalism. To cover this risk, the
City participates in the Texas Municipal League Joint Self -Insurance Fund (TMLIF) to provide general liability,
workers' compensation claims and property insurance. The City, along with other participating entities,
contributes annual amounts determined by TMLIF management. As claims arise they are submitted to and paid
by TMLIF. The City has a self-insured retention for property and liability of $10,000 per occurrence. Any daims
over the self-insured retention are covered by TMLIF. During 2000, the City contributed $266,432 to the fund for
property, general liability, and workers compensation.
NOTE 12. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS
Individual fund operating transfers for fiscal year 2000 were as follows:
Primary
Balance at
Claims and
Balance at
Year Ending
Beginning of
Changes in Claim
End of
September 30,
Fiscal Year
Estimates Payments
Fiscal Year
2000
$
$ 1,214,157 $ 941,366
$ 272,791
The City is exposed to varying degree of risk and loss from liability claims, auto and vehicle liability, mechanical
breakdown of equipment, and loss of property due to natural disasters and vandalism. To cover this risk, the
City participates in the Texas Municipal League Joint Self -Insurance Fund (TMLIF) to provide general liability,
workers' compensation claims and property insurance. The City, along with other participating entities,
contributes annual amounts determined by TMLIF management. As claims arise they are submitted to and paid
by TMLIF. The City has a self-insured retention for property and liability of $10,000 per occurrence. Any daims
over the self-insured retention are covered by TMLIF. During 2000, the City contributed $266,432 to the fund for
property, general liability, and workers compensation.
NOTE 12. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS
Individual fund operating transfers for fiscal year 2000 were as follows:
Primary
Component
Govgmment
$1,356,809
Unit
Transfer
Transfer
Transfer Transfer
From
To
From To
Transfer Transfer Component
Component
Primary Primary
In Out Unit
Unit
Govt Gov't
General Fund:
Water and Sewer Fund
$1,356,809
$ $
Solid Waste Fund
18,397
Drainage Fund
120,375
Aquatic Enterprise Fund
250,000
Capital Projects Fund
300,000
Economic Development Fund
(component unit)
85,865
Community Development Fund
(component unit)
36,000
Capital Improvement Fund
313
Law Enforoement Education Grant
776
Vehicle Replacement Fund
472,189
Self -Insurance Fund
177,454
Employee Vending Machine Fund
313
33
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 12. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS -continued
Primary
Component
Govgmment
Library Fund
1,356,809
Unit
Transfer
Transfer
Transfer
Transfer
From
To
From
To
Transfer Transfer Component
Component
Primary
Primary
In Out Unit
Unit
Govl_
Gov't
Water and Sewer Fund:
Capital Projects
General Fund
Library Fund
1,356,809
Solid Waste Fund
10,423
Capital Improvement Fund
City Hall Fund
Water and Sewer Fund
3,800
Vehicle Replacement Fund
Capital Projects
Solid Waste Fund:
Economic Development Fund
General Fund
18,397
Water and Sewer Fund
City Hall Fund
10,423
Drainage Fund:
City Hall Fund
General Fund
Park Improvement Fund:
120,375
Vehicle Replacement Fund
20,974
Parks and Recreation Enterprise:
Community Development Fund
(component unit)
Hotel Occupancy Tax Fund
15,000
Aquatics Enterprise Fund:
General Fund
250.000
Capital Projects Fund:
City Hall Fund
177.066
Street Improvement Fund
38,423
General Fund
300,000
City Hall Fund:
Capital Projects
177,066
Library Fund
100,000
Police and Courts Building
100,000
Capital Improvement Fund
335,100
Water and Sewer Fund
3,800
Street Improvement Fund
Capital Projects
38,423
Economic Development Fund
(component Unit)
Library Fund:
City Hall Fund
100,000
Police and Court Building:
City Hall Fund
100,000
Park Improvement Fund:
Community Development Fund
(component unit)
BE
40,000
100,185
146,191
4,596
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 12. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS -continued
Economic Development Fund
(component unit):
General Fund
Street Improvement
Community Development Fund
(component unit):
General Fund
Parks and Recreation Enterprise
Park Improvements Fund
Allen Arts Alliance Fund
Capital Improvement Fund:
City Hall Fund
Hotel Occupancy Tax Fund:
Parks and Recreation Enterprise
Law Enforcement Education Grant:
General Fund
Allen Ads Alliance Fund:
Community Development Fund
(component unit)
Vehicle Replacement Fund:
General Fund
Water and Sewer Fund
Drainage Fund
Self -Insurance Fund:
General Fund
Primary
Component
Government
Unit
Transfer
Transfer
Transfer Transfer
From
To
From To
Transfer Transfer Component
Component
Primary Primary
In Out Unit
Unit
Govt Govt
335,100
15,000
776
472,189
100,185
20,974
14,743
85,865
146,191
36,000
40,000
4,596
14,743
177.454
$ 3.597.284 7 e4 $ 161 885 $ 165.530 $ 165.530 $ 161.865
35
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 12. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS -continued
Individual fund residual equity transfers for fiscal year ending September 30, 2000, were as follows:
General Fund:
Sea -Insurance Fund
Sea -Insurance Fund:
General Fund
City Hall Fund:
Civic Plaza Fund
Civic Plaza Fund:
City Hall Fund
NOTE 13. CONTINGENT LIABILITIES
Primary
Component
GovernmentUnit
Transfer
Transfer
Tranefer Transfer
From
To
From To
Transfer Transfer Component
Component
Primary Primary
In Out Unit
Una
Gov't Gov't
$ $128,147 $
128,147
159,617
159,617
$ 287,764 S 287,Z64 $ $
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already collected,
may constitute a liability of the applicable funds. The amount, a any, of expenditures which may be
disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any,
to be immaterial.
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 counsel that resolution of these matters will not have a material
adverse effect on the financial condition of the City.
NOTE 14. CONTRIBUTED CAPITAL
During 2000, contributed capital in the Enterprise Fund changed as follows:
Balance at beginning of year $ 40,017,631
Contributions from developers 8,319,165
Depreciation on contributed assets ( 1.159.03Q)
Balance at end of year $ 47.177.766
36
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2000
NOTE 15. PRIOR PERIOD ADJUSTMENT
During the fiscal year ended September 30, 1998, the City received $6,350,000 from another governmental
entity to reimburse the City for a fixed percentage of a street project. At September 30, 1998, $789,025
was reflected as deferred revenue as the City had not expended the related funds. The $789,025 should
have been recognized in the fiscal year ended September 30, 1999, when such funds were expended.
37
CITY OF ALLEN
38
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP FINANCIAL STATEMENTS
AND SCHEDULES
39
frv���
CITY OF ALLEN
40
GENERALFUND
The General Fund is used to account for resources associated with traditional governmental functions that are
not required to be accounted for in another fund.
41
CITY OF ALLEN, TEXAS
EXHIBIT B-1
GENERALFUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
2000 1999
ASSETS
Cash and temporary investments
Investments
Receivables:
Ad valorem taxes (net of allowance of $32,897)
Sales taxes
Accrued interest
Other
Prepaid expenses
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable
Accrued liabilities
Deferred revenue
TOTAL LIABILITIES:
FUND BALANCE:
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCE
42
$ 1,497,966 $
1,000,304
4,462,200
3,367,671
123,544
51,801
876,726
710,905
77,234
30,026
252,894
1,084,697
2,860
4,577,854
7,293,424
6,245,404
754,600
1,237,102
1,003,018
378,647
151,197
51,801
1,908,815
1,667,550
5,384,609
4,577,854
$ 7,293,424 $
6,245,404
CITY OF ALLEN, TEXAS
EXHIBIT B-2
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET (GAAP -BASIS) AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
2000
1999
VARIANCE -
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES:
Ad valorem taxes, penalties and interest
$ 8,250,6%
$ 8,301,578
$ 50,894
$ 6,886,564
Franchise taxes
1,989,114
2,139,442
150,328
1,852,246
Municipal sales tax
4,316,833
4,572,178
255,345
3,597,647
License, permits and fees
1,569,599
1,733,140
163,541
2,006,937
Charge for services
1,094,797
992,672
(102,125)
358,597
Fines
623,459
738,005
114,546
671,934
Interest earned
345,000
454,155
109,155
179,315
Miscellaneous
828,889
868,495
39,606
520295
Total revenues
19,018,375
19,799,665
781,290
16,073,535
EXPENDITURES
Current:
General government
3,775,899
3,714,436
61,463
2,640,755
Public safety
9,257,050
9,063,625
193,425
8,006,330
Public works
1,950,887
1,884,813
66,074
750,725
Culture and recreation
3,548,952
3,390,150
158,802
2,913,149
Community development
1,270,968
1,230,318
40,650
618,812
Debt service - principal
16,370
Total current expenditures
19,803,756
19,283,342
520,414
14,946,141
Excess (deficiency) of revenues over expenditures
(785,381)
516,323
1,301,704
1,127,394
OTHER FINANCING SOURCES AND (USES):
Operating transfers from other funds
1,495,581
1,496,670
1,089
1,009,209
Operating transfer in from component unit
60,000
121,865
61,865
60,000
Operating transfers to other funds
(1,122,189)
(1,199,956)
(77,767)
(1,175,151)
Total other financing sources (uses)
433,392
418,579
(14,813)
(105,942)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
(351,989)
934,902
1,286,891
1,021,452
FUND BALANCE, BEGINNING OF YEAR
4,577,854
4,577,854
3,541,750
Residual equity imrefers
(128,147)
(128,147)
14,652
FUND BALANCE, END OF YEAR
$ 4,225,865
$ 5,384,609
$ 1,158,744
$ 4.577,854
43
CITY OF ALLEN
44
SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources (other than expendable trust
or major capital projects) that are legally restricted to expenditures for specific purposes.
Capital Improvement Fund — To account for funds received and expended for capital items for the City.
Hotel Occupancy Tax Fund — To account for funds received from hotel occupancy tax and expend as allowed
by state law.
Cable Television Fund - To account for funds received that are to be expended to improve the City's cable
television channel.
Asset Forfeiture Fund - To account for activities associated with assets legally seized and forfeited.
Civic Plaza Fund —To account for contributions given to the City to be expended on a Civic Plaza.
Law Enforcement Education Grant — To account for funds received that are to be expended for specific law
enforcement training purposes.
Rose/Shelton Estate Fund — To account for specific use of funds received from the Viola Rose and Minnie
Rose Shelton estates.
Allen Arts Fund — To account for funds received and expended to promote, nurture and support the arts in
Allen.
Facilities Agreement Fund — To account for funds received from builders and developers used on specific
facility agreements such as neighborhood parks, paving and assessments in new developments.
45
CITY OF ALLEN, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999)
HOTEL
CAPITAL
OCCUPANCY
CABLE
ASSET
ASSETS IMPROVEMENT
TAX
TELEVISION
FORFEITURE
Cash and cash equivalents $ 300,003 $
53,612
$ 1,978
$ 15,478
Investments
Accrued Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Retainage payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES:
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCES
$ 300,003 $=L,612 $ 1,978 $ 15,478
$ 911 $ 270 $ E 46
911 270 46
299,092 53,342 1,978 15,432
$ 300,003 $ 53,612 $ 1,978 $ 15,478
46
EXHIBIT C-1
ROSE/
TOTALS
SHELTON
ALLEN
FACILITIES
ESTATE
ARTS
AGREEMENT
2000
1999
$ 29,892 $
8,736
$ 1,856,975 $
2,266,674 $
1,457,401
2,675,303
2,675,303
3,114,512
48,112
48,112
35,614
$ 29,892 $
8,736
$ 4,580,390 $
4,990,089 $
4,607,527
$ 5,324 $ 6,551 $ 105,732
42,602 42,602 5,670
2,885,685 2,885,685 2,420,877
2,933,611 2,934,838 2,532,279
29,892 8,736 1,646,779 2,055,251 2,075,248
$ 29,892 $ 8,736 $ 4,580,390 $ 4,990,089 $ 4,607,527
47
CITY OF ALLEN, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 1999)
HOTEL
CAPITAL
OCCUPANCY CABLE ASSET
CNIC
IMPROVEMENT
TAX TELEVISION FORFEITURE
PLAZA
REVENUES:
$ $ 55,207 E E
E
Hotel / mtel taxes
Gifts and contributions
16,748
2,575
390
Interests
Miscellaneous
214,766
12,688
Total revenues
231,514
57,782
13,078
EXPENDITURES:
39,241
2,902
Public "rks
Capital outlay
Total expenditures
39,241
2,902
Excess (deficiency) of revenues over
10,178
expenditures
231,514
18,541
OTHER FINANCING SOURCES (USES):
Operating transfers to component unit
Operating transfers from other funds
Operating transfers to other funds
(335,100)
(15,000)
Total other financing sources (uses)
(335,100)
(15000)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses
(103,586)
3,541
10,176
FUND BALANCES, BEGINNING OF YEAR 402,678
49,801 1,978
5,256
159.617
Residual equity transfer
(159,617)
FUND BALANCES, END OF YEAR
$ 299,092
$ 53,342 $ 1,978 E
15,432
$
48
EXHIBIT C-2
LAW
ROSE/
78,382
104,182
TOTALS
1,153,095
ENFORCEMENT
SHELTON
ALLEN
FACILITIES
GRANT
ESTATE
ARTS
AGREEMENT
2000
1999
$ $ 29,892 $
8,736 $
1,646.779
$ 2,055,251 $
$ $
$
$
$
55,207 $
45,873
5,670
1,153,095
1,158,765
254,693
1,737
1,158
272,612
295,220
152,746
70
227,524
133,211
1,737
6,898
1,425,707
1,736,716
586,523
36,239
(44,084)
78,382
104,182
259,800
1,153,095
1,153,095
254,693
2,075,248
1,815,448
36,239
1,153,095
1,231,477
358,875
1,737 (29,341) 272,612 505,239 227,648
(14,743) (14,743)
140,000
(776) (350,876) (107,648)
(776) (14,743) (365,619) 32,152
(776) 1,737
(44,084)
272,612
139,620
259,800
776 28,155
52,820
1,374,167
2,075,248
1,815,448
(159,617)
$ $ 29,892 $
8,736 $
1,646.779
$ 2,055,251 $
2,075,248
49
CITY OF ALLEN
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for and the payment of general
obligation bond and interest from governmental resources.
51
CIN OF ALLEN, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
ASSETS
Cash and cash equivalents
Investments
Receivables:
Ad valorem taxes (net, where applicable, of allowances
for estimated uncollectible amounts of $23,347)
Accrued interest receivable
Other receivables
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Deferred revenue
Fund balance:
Reserved for debt service
TOTAL LIABILITIES AND FUND BALANCE
52
EXHIBIT D-1
2000 1999
$ 124,091 $ 51,457
693,000 874,022
81,392
11,344
5,353 11,907
$ 915,180 $ 937,386
$ 81,392 $
$ 8331788
$
937,386
$ 915,180
$
937,386
CITY OF ALLEN, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
EXHIBIT D-2
2000 1999
REVENUES:
Ad valorem tax $ 5,187,115 4,224,799
Interest 250,833 146,579
Miscellaneous 3,625
Total revenues 5,441,573 4,371,378
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over
expenditures
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
53
2,830,000
2,145,000
2,715,171
2,306,686
5,545,171
4,451,686
(103,598) (80,308)
937,386 1,017,694
$ 833,788 $ 937,386
CIN OF ALLEN, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET (GAAP -BASIS) AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
EXHIBIT D-3
Favorable
BUDGET
ACTUAL
(Unfavorable)
1999
REVENUES:
Ad valorem tax
$ 5,185,614
5,187,115
$ 1,501
4,224,799
Interest
183,258
250,833
67,575
146,579
Miscellaneous
3,625
3,625
Total revenues
5,368,872
5,441,573
72,701
4,371,378
EXPENDITURES:
Principal retirement
2,830,000
2,830,000
2,145,000
Interest and fiscal charges
2,717,417
2,715,171
2,246
2,306,686
Total expenditures
5,547,417
5,545,171
2,246
4,451,686
Excess (deficiency) of revenues over
expenditures
(178,545)
(103,598)
74,947
(80,308)
FUND BALANCES BEGINNING OF YEAR
937,386
937,386
1,017,694
FUND BALANCES, END OF YEAR
$ 758,841 $
833,788
$ 74,947 $
937,386
54
CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for all resources used for the acquisition and/or construction of capital
facilities by the City, except those financed by proprietary and trust funds.
Capital Projects Fund — To account for resources used for the acquisition and/or construction of capital
facilities by the City, except those financed by proprietary and trust funds and not accounted for by the other
capital project funds.
ProRata Fund — To account for funds received and later expended for the construction of streetlights, irrigation
and other items of this nature.
Special Assessment Fund — To account for funds received from property owners who were assessed for
improvements the City performed which increased their property value.
Fire Station Fund — To account for the financing of construction and renovation of fire stations and the
acquisition of fire fighting equipment. General fund revenues, general obligation bond proceeds and interest on
investments are the sources of financing for building renovation and equipment purchases.
Street Improvements Fund — To account for the financing and construction of improvements to and the
extension of the City's streets. The construction is financed primarily by the proceeds of general obligation
bonds and interest on investments.
Park Improvements Fund — To account for the financing, improvements, and enlargements of the City's parks.
These improvements and enlargements are funded by general obligation bond proceeds, state grants and
interest on investments.
Public Safety Fund — To account for the financing and purchase of public safety equipment. The proceeds of
general obligation bonds and interest on investments are used to finance the improvements.
City Hall Fund — To account for the financing, construction and furnishing of the new city hall with the proceeds
of general obligation bonds and interest on investments.
Library Fund — To account for the financing, construction and furnishing of library facilities with the proceeds of
general obligation bonds and interest on investments.
Police and Court Building Fund — To account for the financing of construction and renovation to the Police
and Court Building. The construction is financed primarily by the proceeds of general obligation bonds and
interest on investments.
Drainage Improvements Fund — To account for the financing and construction of improvements to and the
extension of the City's drainage system. The construction is financed primarily by the proceeds of general
obligation bonds and interest on investments.
55
CITY OF ALLEN, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
LITH COMPARATIVE TOTALS FOR SEPTEMBER 30 19991
CAPITAL
SPECIAL
FIRE
STREET
PROJECTS
PRO RATA
ASSESSMENTS
STATION
IMPROVEMENTS
ASSETS
Cash arW cash equivalents
S
1,952,265
8
743,582
$ 863.701 S
1,683,554 $
3,185,076
Investments
2,477,968
300,000
1,172,330
1,]]1,233
1,760,534
AcemW interest receivable
18,390
2,329
24,137
19.545
22.354
Special assessments receivable
253,056
Oue frau other fulls
51,905
TOTAL ASSETS
E
4A48.623
$
1,045.911
$ 2,313,224 E
3,474,332 S
5,019,869
LIABILITIES AND FUND BALANCES
LIABILITIES:
$
$ $
$
506.021
Accounts payable
$
6],]88
Retainage payable
12,812
Due to oMer furals
15,519
Dafenee revenue
4026.500
253,056
TOTAL LIABILITIES
4,026,5M
12.812
253.056
15.519
573,809
FUND BALANCES:
185.]90
2,35],46]
Reserved for encumbrances
Unreserved:
Designat for capital Pmlects
338,460
1,033,099
Un6eslgcatea
0.663
2060,168
3273023
2088,593
TOTAL FUND BALANCES
422.123
1.033,099
2.060.168
3.458,813
4.446.060
TOTAL LIABILITIES AND FUND BALANCES
6
4A48,623
$
1.045.911
E 2,313224 E
3,474,332 $
5.019.869
EXHIBIT E-1
$ 4,868,767 $
120,546 $
POLICE AND
TOTALS
PARK
PUBLIC
COURT
DRAINAGE
IMPROVEMENTS
SAFETY
CITY HALL LIBRARY BUILDING
IMPROVEMENTS 2000 1998
$ 4,868,767 $
120,546 $
363,250 $
$0,000 3
1,981,597
239,138
$
16,081,476 $
11,796,973
6,433,904
300,000
1,521,629
1,371,559
1,166,267
15,737,598
15,343,508
82,250
34,846
968
160,954
28,576
17,647,908
198,549
71,173
11,153,594
120,548
664,158
80,000
3,517,079
253,056
275,220
23,839,745
$ 11,380,821 $
51,905
664,218 $
80.000 $
3,531,802 E
239,138 $
32,322,584 $
27486,874
$ 11,384,921 $
120,546 $
664,218 $
80,000 $
3,531.802 $
239.138
$
32.322.584 $
27.486,874
$ 162,602 $
$
60 $
$
$
$
668,883 $
1782,077
48,492
129,092
795,484
2.033
14,723
1,630
51,905
4,279,556
109,568
231,327
60
14,723
1,630
5,129,436
3,647,129
9.814,478
684,158
45,154
648,359
76,554
13,791,860
5,025,570
1,371,559
1,166,267
1,339,116
120,546
34,846
2,868720
160,954
12,02.829
17,647,908
11,153,594
120,548
664,158
80,000
3,517,079
237,508
27,193,148
23,839,745
$ 11,380,821 $
120.546 $
664,218 $
80.000 $
3,531,802 E
239,138 $
32,322,584 $
27486,874
57
CITY OF ALLEN, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 1999)
REVENUE
Special assessments
Interest
Developers' fees
Miscellaneous
Total revenues
EXPENDITURES:
Capital outlays
Other
Total expenditures
Excess (deficiency) of revenues over
expendiWres
OTHER FINANCING SOURCES (USES):
Operating transfers to component unit
Operating transfers from other funds
Operating transfers to other funds
Proceeds from sale of bonds
Total other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over
experdib res and other financing uses
FUND BALANCES, BEGINNING OF YEAR
Residual equity transfer
Prior period adjustment
FUND BALANCES, END OF YEAR
CAPITAL SPECIAL FIRE STREET
PROJECTS PRO RATA ASSESSMENTS STATION IMPROVEMENTS
$ $ 18,788 S $
38,460 59,169 133,575 75,734 475,261
304,558
7,184
45,644 363,727 152,363 75,734 475,261
496,895
166,400
5,980,276
15
16,575
14,178
496,895
15
182,975
5,994,464
45,644 (133168) 152,348 (107,241) (5519,193)
(146,191)
338,423
(177,066) (38,423)
3,215,056 651.812
161,357 3215,056 470,198
207,001 (133,168) 152,348 3,107,815 (5,048,995)
215,122 1,166267 1,907,820 350,998 8,706,030
789,025
$____i.22,123 $ 1,033,099 $ 2,060,168 $ 3,458,813 $ 4,446,060
58
EXHIBIT E-2
-
(44.213)
(2,531,275)
(141,597)
POLICE AND
42,218
TOTALS
PARK
PUBLIC
164,759
3.035.816
COURT
DRAINAGE
195,290
23,839,745
IMPROVEMENTS
SAFETY
CITY HALL
LIBRARY
BUILDING
IMPROVEMENTS
2000
1999
S $
S
$ $
$ $
18,788
$ 2,753
514,364
7,811
117,677
6,608
170,400
12,392
1,611,451
940,524
$ 11,153.594 $
133,686
664,158 $
80,000 $
3,517,079 $
438,246
27,193,148 $
25,000
32.184
395.178
539,364
7,811
251.365
6.608
170.400
12.392
2.100,669
1,336.455
799,265
47,598
3,496,606
48,113
138,459
11,175,612
11,383,797
57,239
4,426
92
15,704
180
108.409
856,504
52,024
3.498.606
48.205
154.163
180
11,284.021
11.383,797
(317,140) (44.213)
(3,247,241)
(41.597)
16,237
12,212
(9,183,352)
(10,045.342)
(4,596)
(150,787)
715,966
1,054,389
1,446,204
(100,000)
(100,000)
(415,489)
(318,834)
4,150.073
3,050.053
30,006
11,100,000
13.340,000
4,145,477
715,988
(100,000)
2,950,053
30,006
11,588,113
14,467.370
3,828,337
(44.213)
(2,531,275)
(141,597)
2,966,290
42,218
2,404,751
4,422,028
7,325,257
164,759
3.035.816
221,597
550,789
195,290
23,839,745
19,417,717
159,617
159.617
789,025
$ 11,153.594 $
120,546 $
664,158 $
80,000 $
3,517,079 $
237,508 $
27,193,148 $
23,839,745
59
CITY OF ALLEN
60
ENTERPRISE FUNDS
The Enterprise Funds are used to account for operations which are financed and operated in a manner similar
to private business enterprises where the intent is that the costs of providing goods or services to the general
public on a continuing basis be financed or recovered primarily through user charges.
Water and Sewer Fund — To account for the provision of water and sewer services to the residents of the City.
Solid Waster Fund — To account for the provision of solid waster services to the residents of the City.
Development Fees Fund — To account for fee receipts and corresponding expenditures for additional impact
on water and sewer system from new development.
Drainage Fund — To account for the provision of developing and maintaining proper drainage services to the
residents of the City.
Parks and Recreation Fund — To account for the provision of recreation services to the residents of the City.
Aquatics Enterprise Fund — To account for the operations and maintenance of the City's leisure and
competitive swimming pools.
fil
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Investments
Receivables, net of allowance for
uncollectible accounts:
Accounts
Accrued interest
Other
Restricted cash and cash equivalents
Total current assets
FIXED ASSETS, net accumulated depreciation
OTHER ASSETS, at cost
TOTAL ASSETS, at cost
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabtlNes
Accrued compensated absences
Retainage payable
Payable from restricted assets:
Revenue bonds payable
Accrued interest payable
Utility deposits
Total current liabilities
Accrued interest payable
Contract payable
Revenue bonds payable
Total liabilities
FUND EQUITY
Contributed capital
Retained earnings (deficit):
Reserved for revenue bond principal and interest
Reserved for field enhancement
Unreserved
Total retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
62
WATER AND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 4,938,588 $ 588,625 $ 1,816,673
7,507,983 1,256,190
1,615,756 46,103
98,486 33.634
120
2,580,939
16,741,752 632,848 3,106,497
59,143,428 3,172,327
53,200
E 75,938.380 E 632,848 $ 6,278,824
$ 916,082 $
108,366
$
27,032
35,624
63,198
200,726
55,752
1,207,038
143,990
55,752
995,000
289,241
739,459
3,230,738
143,990
55,752
838,132
1,126,134
16,432,204
21,625,208
143,990
55,752
40,195,994
6,981,772
557,239
13559,939
488,858
(758,700)
14,117,178
488,858
(758,700)
54313,172
488,858
6223,072
$ 75,938,380 $
632,848
$ 6,278.824
EXHIBIT F-1
TOTALS
PARKS AND AQUATICS
DRAINAGE RECREATION ENTERPRISE 2000 1999
E 441,432 $
252,291 $
251,988 E
8,287,597 $
4,809,955
300,000
4,250
9,064,173
13,691,098
9,759
1,671,618
1,368,365
3,843
136,963
110,734
15,468
18,510
120
23,654
3,007,733
2,580,939
2,035,219
765,034
252,291
251,988
21,740,410
22,039,025
251,519
33,690
62,600,964
53,426,036
681,281
15,468
18,510
53,200
56,000
$ 1.006,553 $
285,981 $
251,988 $
84,394,574 $
75,521,061
E 8,651 $
14,260 $
315 $
1,047,674 $
2,676,550
2,654
4,250
69,580
28,363
4,163
67,361
95,774
256,478
207,046
15,468
18,510
315
1,441,073
3,007,733
995,000
945,000
289,241
305,179
739,459
681,281
15,468
18,510
315
3,464,773
4,939,193
836,132
836,132
1,126,134
1,126,134
16,432,204
17,414,952
15,468
18,610
315
21,859,243
24,316,411
47,177,766
40,017,631
557,239
103,769
33,043
33,043
991,085
234,428
251,673
14,767,283
11,083,260
991,085
267,471
251,673
15,357,565
11,187,019
991,085
267,471
251,673
62,535,331
51,204,650
E 7,006,553 $
285,987 $251,988
$
84,394,574 $
75,521.061
63
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30.2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,1
OPERATING REVENUES:
Water sales
Sewer charges
Connection fees
Garbage collection
Service charges
Drainage fees
Recreation fees
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual services
Maintenance
Supplies
Depredation and amortintion
Bad debt expense
Mar
Total operating expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Interest inwme
Interest expense
Total nwaperating revenue (expenses)
INCOME (LOSS) BEFORE OPERATING TRANSFERS
Operating transfers in
Operating transfers In Som component unit
Operating transfers out
NET INCOME (LOSS)
Add depreciagon on contributed assets
Increase (decrease) In retained earnings
RETAINED EARNINGS (DEFICIT), BEGINNING OF YEAR
RETAINED EARNINGS (DEFICIT), END OF YEAR
Contributed capital at beginning of year
Capital contributions
Depredation transferred from retained earnings
Residual equity transfers
Contributed capital at end of year
FUND EQUITY AT END OF YEAR
WATER AND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 8,490.270 $ $
2,564,419
213,122
2,050.347
254,035
230,233
11.852.079 2,050,347
1,103.078
31,508
4,537,159
1,820.067
124,014
63,222
1,989,907
251,667
13.702
21,469
18,281
7,852,551
1,869,856
251,667
3999,528
180,491
(251,667)
849,231
25,087
147,468
(901,548)
(52,317)
25,087
147,468
3,947,211
205,578
(104,199)
10,423
(1,460,7941
(28.820)
2,496,840
176,768
(104,199)
1,159,030
3,655,870
176,758
(104.199)
10,461,308
312,100
(654,501)
14.117J78
488.866
(758,700)
34.934.780
5,082,851
6,420,244
1.898,921
(1,159.030)
40,195,994
6,981,772
$ 54,313,172
$ 488,868
$ 6,223,072
EXHIBIT F-2
65
TOTALS
PARKS AND
AQUATICS
DRAINAGE
RECREATION
ENTERPRISE
2000
1999
$
$
$
$ 8,490,270
$ 6,304,831
2,664,419
2,378,260
213,122
187,152
2,050,347
1,786,007
42,415
296,450
259.596
518.347
518,347
464,013
428,690
428,690
378,479
65,105
295,338
471,609
560,762
493,795
14.956,983
12.229,947
150,145
234,238
1,518,969
1,822,601
36,321
292,958
315
6,686,830
5.381,651
56,628
180,642
203,025
10,149
73,371
78,310
11,319
10,283
2,263,176
1,872,068
13,702
64,039
32,916
1,153
73,819
888,179
297.478
538.642
315
10,810,509
10.309,873
263,284
(4.847)
(3151
4,146,474
1,920,074
43,187
15,169
1,988
1,082,130
868,369
(901,648)
(988,663)
43,187
15,169
1,988
180,582
(120,294)
306.471
(29,678)
1,673
4,327,056
1,799,780
15,000
250,000
275,423
144,397
40,000
40,000
30,000
(141,349)
(1,630,963)
(1,412,151)
165,122
25,322
251,673
3,011,516
562,026
1.159.030
998,529
165,122
25,322
251,673
4,170,546
1,560,555
825.963
242,149
11,187,019
9,626,464
991,085
267,471
251,673
15,357,565
11,187,019
40,017,631
34,948,487
8,319,165
6,082,325
(1,159,030)
(998.529)
(14,652)
47,177,766
40,017,631
$ 991,085
S 267,471
$ 251,673
$ 62,535,331
$ 51.204.650
65
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 1999)
WATER AND
SOLID DEVELOPMENT
SEWER
WASTE FEES
CASH FLOWS FROM OPERATING ACTIVITIES:
$ 3999,528 $
180,491 $ (251,667)
Operating income loss)
Adjustments to reconcile operating income goes)
to net cash provided by (used in) operating activities:
251,667
Depreciation and amombatico expense
1,889,907
Change in assets and liabilities:
(317.488)
(1,791)
Decrease (increase) in account recehiable
22,205Decrease
Increase) m other receivables
(1,488,169)
(18.406) (95.866)
Increase (decrease) in accounts payable
2,507
35,624
Increase (decrease) in accrued liabilities
Increase (decrease) in compensated absences
(29,114)
Increase in utility deposits
58,178
13.102
36,330
Increase in retainage payable
Increase In other assets
228.923
37,632 192,131
Total adjustments
Net cash provided by (used in) operating activities
4,228,451
218,123 (59,536)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating transfers in from component unit
Operating translers from other funds
10,423
(1,460,794)
(28,820)
Operating transfers to other funds
Residual equity transfers
Net cash provided by (used in) non -capital financing activities
(1,450,371)
(28,820)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
1,898,921
Cadributions from deveopam
Proceeds from issuance of revenue bonds
Principal paid on revenue bond maturities
(945.000)
Interest paid
(917,486)
(3,615,401)
(1336,199)
Acquisition of capital assets
Net cash provided by (used In) capital and related financial activities
(5,477,887)
562,722
CASH FLOWS FROM INVESTING ACTIVITIES:
Nn,h a of investment securities
?2602088)
26,337.103
319,638 218,793
proceeds from the sale and maturities of investment securities
Interest on investments
$41,971
26,132 124,002
Net rash provided by (used in) Investing adlvities
1577,006
345,770 342795
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,877,199
535,073 845,981
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
5642,328
51,552 970,692
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 7,519,527
$ 586,625 $ 1,616,673
NON-CASH FINANCING ACTIVITIES:
Contributions of fixed assets from developers
M
$ 6,420,244 $ S
EXHIBIT F-3
67
TOTALS
PARKS AND
AQUATICS
DRAINAGE
RECREATION
ENTERPRISE
2000
1999
$ 263284
$ W,847)
$_ (315)
$ 4.146,474
$ 1,920,074
11,319
10,283
2,263.176
1,872,068
16,026
(303,253)
59,097
1,329
23,534
70,625
(9,085)
(17,666)
315
(1,628.876)
1,956,668
809
2,267
41,197
8,344
701
(28,413)
5,632
58,178
95,654
49,432
192,472
(11,200)
19,770
(3.796)
315
474.975
4249.360
283,054
(48.843)
4.621,449
6,169.434
40,000
40,000
15,000
250,000
275,423
174,397
(141,348)
(1,630,963)
(1,412,151)
(14,6521
(141349)
55.000
250.000
(1,315,540)
(1252,406)
1,898,921
1.089,656
12,545.000
(945.000)
(3,976,580)
(917,486)
(879.600)
(48.866)
12.3421
(5.002.808)
(4,752,477)
(48,866)
(2,342)
(4,966.373)
4.025,999
(300,000)
(22,902,068)
(33,494,057)
472,361
181,098
27,528,993
26.458,627
45.866
16.942
1.988
1.056.901
779,056
218.227
198.040
1.988
5,663.828
(6,256.374)
311,066
202,055
251,988
4,023,362
2,686,653
130.386
50.236
6,845.174
4,158.521
E 441,432 $
252,291 $
251,988 $
10.868,536 $
6,845,174
E $
E
$6,420,244
$
4,992,669
67
68
EXHIBIT F-4
CITY OF ALLEN, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1999)
2000
1999
ASSETS
CURRENT ASSETS:
$ 4,938,588 $
3,607,109
Cash and wsh equivalents
7.507.983
11,243,018
Investrnents
Receivables, net of allowance for uncollectible:
1,615.756
1 288 268
Accounts98486
91,226
A.cwed interest
2580,939
2,035,219
Restnoted wsh and cash equivalents
18 741,752
18,274,840
Total ,unent assets
FIXED ASSETS:
317850
341,850
Land
66,124,120
59.113.888
Utility plant and service
2528832
2,528.832
Pump station
1,651,187
1,130.142
Machinery and equipment
5,177,498
2,W.331
Construction in progress
75,723,487
65.6.99.043
(16,580,059)
(14 618.405)
Less: accumulated depredation
59143 428
51 082,638
Total fixed assets, net
Other assets:- unamorobed bond issue costs
53'200
56,000
$ 75.938 ,380
E 69,413.478
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
$ 918,082
$ 2,404.251
Accounts payable
27,032
24.525'
Accmed liabilities
63.198
92.312
Accrued compensated absences
200,]26
187,624
Retainage payable
Payable from restricted assets:
995,000
945.000
Revenue bonds payable
289241
305,179
Acaoed interest payable
739059
681,281
Utility deposits
3,230,738
4,640.172
Total current liabilities
836,132
836.132
Aoorued interest payable
1,126,134
1.M,134
Contrail payable
16,432,204
17.474.952
Revenue bonds payable
R
21 625.208
24.017,390
Total liabilities
FUND EQUITY:
40.195,994
34.934.780
Contributed capital
Retained earnings:
55].239
103.759
Reserved for revenue bond principal and Interest
13.559.939
10357.549
Unreserved
54,313,172
45 396,068
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
$ 75,938.380
$ 69,413,470_
68
CITY OF ALLEN, TEXAS
EXHIBIT F-5
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
2000
1999
OPERATING REVENUES:
Water sales
$ 8,490,270
$ 6,304,831
Sewer charges
2,664,419
2,378.260
Connection fees
213,122
187,152
Service charges
254,035
259,596
Miscellaneous
230,233
246,618
Total operating revenues
11,852,079
9,376,457
OPERATING EXPENSES:
Personal services
1,103,076
1,526,782
Contractual and other services
4,537,159
3,708,001
Maintenance
124,014
100,411
Supplies
63,222
65,933
Depredation and amortization
1,989,907
1,604,886
Bad debt expense
13,702
53,628
Other
21,469
622,666
Total operating expenses
7,852,551
7,682,307
OPERATING INCOME
3,999,528
1,684,150
NON-OPERATING REVENUES (EXPENSES):
Interest income
849,231
718,970
Interest expense
(901,548)
(988,663)
Total non�operabng revenue(expense)
(52,317)
(269,693)
INCOME BEFORE OPERATING TRANSFERS
3,947211
1,424,457
Operating transfers in
10,423
129,397
Operating transfers out
(1,460,794)
(1,181,427)
NET INCOME
2,496,840
372,427
ADD DEPRECIATION ON CONTRIBUTED ASSETS
1,159,030
998,529
Increase in retained earnings
3.655,870
1,370,956
RETAINED EARNINGS, BEGINNING OF YEAR
10,461,308
9,090,352
RETAINED EARNINGS, END OF YEAR
14,117,178
10,461,308
Contributed capital at beginning of year
34,934.780
30,955,292
Capital contributions
6,420,244
4,992,669
Depredation Iransferad from retalned earnings
(1,159,030)
(988,529)
Residual equity transfers
(14,652)
Contributed capital at end of year
40,195,994
34,934,780
FUND EQUITY AT END OF YEAR
E 54.313 ,172
$ 45,396,088
69
CITY OF ALLEN, TEXAS EXHIBIT F-6
WATER AND SEWER ENTERPRISE FUNDS
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 1999)
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES: $ 3,999.528 E 1,694,150
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
1,989,907
1,604,886
Depreciation and amortization expense
Charge in assets and liabilities:
(317,488)
110,723
Decrease (increase) in account receivable
58,363
Decrease In other receivables
Increase (decrease) in accounts payable
(1,488,169)
1,780,507
Increase in accrued liabilities
2,507
(29,114)
6,674
5,910
Increase (decrease) in compensated absences
58'178
95'654
Increase in utility deposits
13'102
180,203
Increase in retainage payable
(11'200)
Increase in other assets
Total adjustments
228,923
3,831,120
Net cash provided by operating activities
4,228,451
5,525,270
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
10,423
(1,400,794)
129,397
(1.181.427)
Operating transfers to other funds
(14,652)
Residual equity transfers
Net cash used in non -capital financing activities
(11,450,371)
(1,066,682)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from issuance of revenue bonds
12'545.000
Principal paid on revenue bond maturities
(945,000)
(3,976,580)
Interest paid
(917,486)
(879,600)
Acquisition of capital assets
(3615,401)
(3,981,060)
Net cash provided by (used In) capital and related financial activities
(5,477,887)
3,707,760
CASH FLOWS FROM INVESTING ACTIVITIES:
22602068)
(28499718)
Purchase of investment securities
Proceeds from the sale and maturities of investment securities
26,337,103
22,666,452
Interest on investments
841,971
640,379
Net cash provided by (used in) investing activities
4,577,006
(5,192,887)
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,877,199
2,973,461
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
5,642,328
2,668,867
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 7.519,527
E 5,642,328
NON-CASH FINANCING ACTIVITIES:
$ 6,420,244
E 4.992,669
Contributions of fixed assets from developers
70
CITY OF ALLEN, TEXAS EXHIBIT F-7
SOLID WASTE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30.2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
2000 1999
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 586,625 $
51,552
Investments
35,624
319,638
Receivables, net of allowance for uncollectibles:
143,990
126,772
Accounts
46,103
44,312
Accrued interest
488,858
1,045
Other
120
22,325
Total current assets
632,848
438,872
TOTAL ASSETS
$ 632,848 $
438,872
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 108,366 $
Accrued liabilities
35,624
126,772
Total current liabilities
143,990
126,772
FUND EQUITY:
Retained earnings - unreserved
488,858
312,100
Total fund equity
488,858
312,100
TOTAL LIABILITIES AND FUND EQUITY
$ 632,848 $438,872
71
CITY OF ALLEN, TEXAS EXHIBIT F-8
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
2000 1999
OPERATING REVENUES:
Garbage collections
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES (EXPENSES):
Interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
72
$ 2,050,347
$ 1,786,007
2,050,347
1,786,007
31,508
1,820,067
1,652,668
18,281
22,913
1,869,856
1,675,581
180,491
110,426
25,087
10,817
205,578
121,243
(28,820)
(71,443)
176,758
49,800
312,100
262,300
$ 486,858
$ 312,100
CITY OF ALLEN, TEXAS
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Change in assets and liabilities:
(Increase) in accounts receivable
Decrease in other receivables
Increase (decrease) in accounts payable
Increase in accrued liabilities
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers out
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from the sale and maturities of investment securities
Interest on investments
Net cash provided by (used in) investing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
&I
EXHIBIT F-9
2000 1999
$ 180,491
$ 110,426
(1,791)
(42,677)
22,205
13,539
(18,406)
63,902
35,624
37,632
34,764
218,123
145,190
(28,820)
(71,443)
319,638
26,132
345,770
535,073
51,552
$ 586,625
(861,064)
732,312
10,567
(118,185)
(44,438)
95.990
$ 51,552
CITY OF ALLEN, TEXAS
EXHIBIT F-10
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
2000 1999
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Investments
Accrued interest receivable
Total current assets
FIXED ASSETS:
Land
Utility plant in service
Construction in progress
Less: accumulated depreciation
Total fixed assets, net
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Retainage payable
Total current liabilities
FUND EQUITY:
Contributed capital
Accumulated deficit
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
74
$ 1,816,673
$ 970,692
1,256,190
1,474,983
33,634
10,168
3,106,497
2,455,843
259,990
259,990
2,256,880
920,679
1,172,223
1,172,223
3,689,093
2,352,892
(516,766)
(265,097)
3,172,327
2,087,795
$ 6,278,824
$ 4,543,638
$ $ 95,866
55,752 19,422
55,752 115,288
6,981,772 5,082,851
(758,700) (654,501)
6,223,072 4,428,350
$ 6,278,824 $ 4,543,638
CITY OF ALLEN, TEXAS EXHIBIT F-11
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
OPERATING REVENUES:
OPERATING EXPENSES:
Depreciation
Total operating expenses
OPERATING LOSS
Non-operating revenues - interest income
NETLOSS
Decrease (increase) in retained earnings
DEFICIT AT BEGINNING OF YEAR
DEFICIT AT END OF YEAR
Contributed capital at beginning of year
Capital contributions
Contributed capital at end of year
FUND EQUITY AT END OF YEAR
75
251,667
224,887
251,667
224,887
(251,667)
(224,887)
147,468
96,583
(104,199)
(128,304)
(104,199)
(128,304)
(654,501)
(526,197)
(758,700)
(654,501)
5,082,851
3,993,195
1,898,921
1,089,656
6,981,772
5,082,851
$ 6,223,072
E 4,428,350
CITY OF ALLEN, TEXAS
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
SEPTEMBER 302000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
EXHIBIT F-12
2000
1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss
$ (251,667)
$ (224,887)
Adjustments to reconcile operating income
to net cash provided by (used in) operating activities:
Depreciation and amortization
251,667
224,887
Change in assets and liabilities:
Increase (decrease) in accounts payable
(95,866)
89,658
Increase in retainage payable
36,330
12,269
Total adjustments
192,131
326,814
Net cash provided by (used in) operating activities
(59,536)
101,927
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Contributions from developers
1,898,921
1,089,656
Acquisition of capital assets
(1,336,199)
(653,909)
Net cash provided by capital and related financing activities
562,722
435,747
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
(2,343,727)
Proceeds from the sale and maturities of
1,273,703
investment securities
218,793
89,069
Interest on investments
124,002
Net cash provided by (used in) investing activities
342,795
(980,955)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
845,981
(443,281)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
970,692
1,413,973
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 1,816,673
$ 970,692
76
CITY OF ALLEN, TEXAS
DRAINAGE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
EXHIBIT F-13
FIXED ASSETS:
Utility plant in service
Vehicles
Machinery and equipment
Construction in progress
Less: accumulated depreciation
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Accrued compensated absences
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
77
82,477
2000
1999
ASSETS
188,663
CURRENT ASSETS:
182,040
Cash and cash equivalents
$ 441,432 $
130,366
Investments
300,000
472,361
Accounts receivable
9,759
25,785
Accrued interest receivable
3,843
6,522
Total current assets
755,034
635,034
FIXED ASSETS:
Utility plant in service
Vehicles
Machinery and equipment
Construction in progress
Less: accumulated depreciation
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Accrued compensated absences
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
77
82,477
82,477
27,245
188,663
15,000
182,040
313,385
264,517
(61,866)
(50,545)
251,519
213,972
$ 1,006,553
$ 849,006
$ 8,651 $ 17,736
2,654 1,845
4,163 3,462
15,468 23,043
991,085 825,963
991,085 825,963
$ 1,006,553 $ 649,006
CITY OF ALLEN, TEXAS
EXHIBIT F-14
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
2000 1999
OPERATING REVENUES:
Drainage fees
Service charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
Non perating revenues - interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
78
$ 518,347 $ 464,013
42,415
171,794
560,762 635,807
150,145
36,321
56,628
10,149
11,319
32,916
297,478
263,284
140,782
19,882
102,614
10,484
32,402
15,596
321,760
314,047
43,187 31,770
306,471 345,817
(141,349) (159,281)
165,122 186,536
825,963 639,427
$ 991,085 $ 825,963
CITY OF ALLEN, TEXAS
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
Decrease (Increase) in accounts receivable
Decrease in accounts payable
Increase in accrued liabilities
(Decrease) increase in compensated absences
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers to other funds
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from the sale and maturities of
investment securities
Interest on investments
Net cash provided by (used in) investing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
79
37:11.IlIffa 1
2000 1999
$ 263,284 $ 314,047
11,319 32,402
16,026 (8,349)
(9,085) (178)
809 217
701 (278)
19,770 23,814
283,054 337,861
(141,349) (159,281)
(48,866) (98,725)
(300,000) (1,222,281)
472,361 1,159,626
45,866 28,474
218,227 (34,181)
311,066 45,674
130,366 84,692
$ 441,432 $ 130,366
CITY OF ALLEN, TEXAS
EXHIBIT F-16
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
2000 1999
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Investments
Accrued interest receivable
Other receivable
Total current assets
FIXED ASSETS:
Machinery and equipment
Less: accumulated depreciation
Total fixed assets, net
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Total current liabilities
FUND EQUITY:
Reserved for field enhancement
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
i
$ 252,291
252,291
$ 50,236
181,098
1,773
1,329
234,436
61,698 59,356
(28,008) (17,725)
33,690 41,631
$ 285,981 $ 276,067
$ 14,260 $ 31,925
4,250 1,993
18,510 33,918
33,043
234,428 242,149
267,471 242,149
$ 285,981 $ 276,067
CITY OF ALLEN, TEXAS
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
*01.1Y111211iY7
2000 1999
OPERATING REVENUES:
$ $
Recreation fees
428,690
378,479
Miscellaneous
65,105
53,197
Total operating revenues
493,795
431,676
OPERATING EXPENSES:
Personal services
234,238
155,037
Contractual and other services
292,968
1,100
Depreciation
10,283
9,893
Other
1,153
239,308
Total operating expenses
538,642
405,338
OPERATING INCOME (LOSS)
(44,847)
26,338
Non-operating revenues - interest income
15,169
10,229
INCOME (LOSS) BEFORE OPERATING TRANSFERS
(29,678)
36,567
Operating transfers in
15,000
15,000
Operating transfers in from component unit
40,000
30,000
NET INCOME
25,322
81,567
RETAINED EARNINGS, BEGINNING OF YEAR
242,149
160,582
RETAINED EARNINGS, END OF YEAR
$ 267,471 $
242,149
81
CITY OF ALLEN, TEXAS
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
EXHIBIT F-18
2000
1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
$ (44,847)
$ 26,338
Adjustments to reconcile operating income
to net cash provided by (used in) operating activities:
Depreciation
10,283
9,893
Change in assets and liabilities:
(Increase) decrease in other accounts receivable
1,329
(1,277)
Increase (decrease) in accounts payable
(17,665)
22,779
Increase in accrued liabilities
2,257
1,453
Total adjustments
(3,796)
32,848
Net cash provided by (used in) operating activities
(48,643)
59,186
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers in from component unit
40,000
Operating transfers from other funds
15,000
45,000
Net cash provided by non -capital financial activities
55,000
45,000
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
(2,342)
(18,783)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
(567267)
Proceeds from the sale and maturities of
investment securities
181,098
626,534
Interest on investments
16,942
10,567
Net cash provided by investing activities
198,040
69,834
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
202,055
155,237
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
50,236
(105,001)
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 252,291
$ 50,236
EE
CITY OF ALLEN, TEXAS
AQUATICS ENTERPRISE FUND
BALANCE SHEET
SEPTEMBER 30,2000
EXHIBIT F-19
2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
251,988
Total current assets
251,988
TOTALASSETS
$
251,988
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
$
315
Total current liabilities
315
FUND EQUITY:
Retained earnings - unreserved
251,673
Total fund equity
251,673
TOTAL LIABILITIES AND FUND EQUITY
$
251,988
83
CIN OF ALLEN, TEXAS EXHIBIT F-20
AQUATICS ENTERPRISE FUND
STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
2000
OPERATING REVENUES:
OPERATING EXPENSES:
315
Contractual services
315
Total operating expenses
(315)
OPERATING LOSS
1,988
Non-operating revenues -interest income
INCOME BEFORE OPERATING TRANSFERS
1,673
250,000
Operating transfers in
251,673
NET INCOME
251,673
Increase in retained earnings
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
i
$ 251,673
CITY OF ALLEN, TEXAS
AQUATICS ENTERPRISE FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss
Adjustment to reconcile operating income (loss)
to net cash provided by operating activities:
Increase in accounts payable
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
85
EXHIBIT F-21
2000
$ (315)
315
315
1,988
250,000
251,988
$ 251,988
i _
CITY OF ALLEN
96
INTERNAL SERVICE FUNDS
The Internal Service Fund is used to account for financing of services provided by one department to other
departments of the City on a cost -reimbursement basis.
The Vehicle Replacement Fund - accounts for the costs associated with the acquisition of vehicles through the
rental of such vehicles to other departments. These vehicle and equipment are funded from operating funds.
Self -Insurance Fund — To account for the costs associated with the medical and workers' compensation self-
insurance programs established for the City employees and their covered dependents.
87
EXHIBIT G-1
CITY OF ALLEN, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
VEHICLE SELF TOTALS
REPLACEMENT INSURANCE
FUND FUND 2000 1999
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable
Accrued interest receivable
Total current assets
Property, plant, and equipment
Machinery and equipment
Vehicles
Less: accumulated depreciation
Net property, plant, and equipment
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
$ 558,350 $
299,882
$ 858,232 $
636,987
1,474,419
183,057
1,657,476
1,118,422
53,405
53,405
13,289
590
13,879
10,453
2,046,058
536,934
2,582,992
1,765,862
158,203
158,203
71,203
939,282
939,282
602,977
(572,426)
(572,426)
(389,512)
525,059
525,059
284.668
2,571,117
536,934
3,108,051
2,050,530
272,791 2721791
Fund equity:2,571,117 264,143 2,835,260 2,050,530
Retained earnings - unreserved
Total fund equity
2,571,117 264,143 2,835,260 2,050,530
TOTAL LIABILITIES AND FUND EQUITY $ 2,571,117 $ 536,934 $ 3,108,051 $ 2,050,530
I
CITY OF ALLEN, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
EXHIBIT G-2
OPERATING EXPENSES:
Personal services
Contractual services
Depreciation
Total operating expenses
OPERATING LOSS
NON-OPERATING REVENUES
Interest income
Loss before operating transfers
Operating transfers from other funds
NET INCOME
RETAINED EARNINGS,
BEGINNING OF YEAR
Residual equity transfer In
RETAINED EARNINGS, END OF YEAR
VEHICLE
SELF
TOTALS
REPLACEMENT
INSURANCE
182,914
FUND
FUND
2000 1999
OPERATING REVENUES:
182,914
1,214,157
1,397,071
Charges for services
$ $
1,153,613 $
1,153,613 $
Other income
14,771
2,367
17,138
Total operating revenues
14,771
1,155,980
1,170,751
OPERATING EXPENSES:
Personal services
Contractual services
Depreciation
Total operating expenses
OPERATING LOSS
NON-OPERATING REVENUES
Interest income
Loss before operating transfers
Operating transfers from other funds
NET INCOME
RETAINED EARNINGS,
BEGINNING OF YEAR
Residual equity transfer In
RETAINED EARNINGS, END OF YEAR
2,050,530
2,050,530 1,683,755
128,147 128,147
$ 2,571,117 $ 264,143 $ 2,835,260 $ 2,050,530
fk
1,128,838
1,128,838
85,319
85,319
182,914
182,914
115,100
182,914
1,214,157
1,397,071
115,100
(168,143)
(58,177)
(226,320)
(115,100)
95,382
16,719
112,101
67,700
(72,761)
(41,458)
(114,219)
(47,400)
593,348
177,454
770,802
414,175
520,587
135,996
656,583
366,775
2,050,530
2,050,530 1,683,755
128,147 128,147
$ 2,571,117 $ 264,143 $ 2,835,260 $ 2,050,530
fk
CITY OF ALLEN, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.190)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to net rash
provided by operating activities:
Depreciation
Change in assets and liabilities:
Decrease in accounts receivables
Increase in accrued liabilities
Total adjustments
Net cash provided by operating activities
EXHIBIT G-3
VEHICLE SELF TOTALS
REPLACEMENT INSURANCE
FUND FUND 2000 1999
$ (168,143) $ (58,177) $ (226,320) $ (115,100)
182,914 182,914 115,100
74,742 74,742
272,791 272,791
182,914
347,533
530,447
115,100
1,118,422
,
14,771
289,356
304,127
57,746
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES: 593,348 177.454 770.802 414175
Operating transfers from other funds
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (423,305) (423,305) (105,724)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from sale and maturities of investment securities
Interest on investments
Net cash provided by investing activities
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
NON-CASH NON -CAPITAL FINANCING ACTIVITIES:
Residual equity transfer of accounts receivable
(1,474,419)
(183,057)
(1657,422)
(1,870,982)
1,118,422
,
92,546
18,129
108,675
57,746
(263,451)
(166,928)
(430,379)
(834,100)
(78,637) 299,882 221,245 (525,649)
636,987 636,987 1,162,636
$ 558,356 $ 299.882 E 858,232 $636,987
$ $ 128,147 $ 128,147 $
90
FIDUCIARY FUND TYPES
The Fiduciary Fund Types are used to account for assets held by the City in a trustee or agency rapacity for
individuals, private organization, other governmental units and/or other funds.
Expendable Trust Funds — To account for assets held by the City in a trustee or agency capacity in which both
principal and interest may be expended for designated purposes.
Library Acquisition Fund — To account for funds received and expended for the acquisition of library
books and other resources.
Park Dedication Fund — To account for funds received and expended for the acquisition of additional park
land and for the development of neighborhood parks.
City of Allen Swim Team Fund — To account for funds received and expended for the City of Allen swim
Team activities.
Nonexpendable Trust Fund — To account for assets held by the City in a trustee or agency capacity in which
the principal must be preserved intact.
Cemetery Trust Fund — To account for funds received and expended for providing City cemetery services.
EXHIBIT H-1
CITY OF ALLEN, TEXAS
TRUSTFUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,1999)
NON
EXPENDABLE
EXPENDABLE TRUST
TRUST
TOTALS
LIBRARY PARK
ALLEN
CEMETERY
ACQUISITION DEDICATION SWIM TEAM
TRUST
2000
1999
ASSETS
Cash and cash equivalents
$ 174,022 $ 692,244 $
2,220
$ 54,813 $
923,299
500,000
$
304,823
566,383
Investments
500,000
5,395
5,449
Acaued interest receivable
5,395
TOTAL ASSETS
$ 174,022 $ 1,197,639 $
2,220
$ 54,813 $
1,428,694
$
876,655
FUND BALANCES
Fund balances:
Unreserved - undesignated
174,022 1,197,639
2,220
54,813
1,428,694
876,655
TOTAL FUND BALANCES
$ 174,022E 1,197,639 $
2.220
$ 54,813 $
1,428,694
$
876,655
CITY OF ALLEN, TEXAS
TRUSTFUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES- EXPENDABLE TRUST FUNDS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
EXHIBIT H-2
EXPENDITURES:
Library purchases
General items
Capital outlay
Miscellaneous
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES:
Other transfers in from component unit
NET INCOME
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
700
153,706
502.560 502.560
12,584 12,584 3,111
502,560 12,584 515,144 157,517
17,848 536,035 (1,844) 552,039 375,206
TOTALS
LIBRARY
PARK
ALLEN
17,846
536,035
(1,844)
ACQUISITION
DEDICATION
SWIMTEAM
2000
1999
REVENUES:
421,536
Gifts and contributions
$ 7,776 $
$
10,740 $
18,516 $
5,665
Recreation fees
984,450
964,450
601,258
Interest
10,072
54,145
64,217
25,800
Total revenues
17,848
1,038,595
10,740
1,067,183
532,723
EXPENDITURES:
Library purchases
General items
Capital outlay
Miscellaneous
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES:
Other transfers in from component unit
NET INCOME
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
700
153,706
502.560 502.560
12,584 12,584 3,111
502,560 12,584 515,144 157,517
17,848 536,035 (1,844) 552,039 375,206
93
25,100
17,846
536,035
(1,844)
552,039
400,306
156,174
661,604
4,064
821,842
421,536
$ 174,022 $
1,197,639 $
2,220 $
1,373.881 $
821,842
93
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30.1999)
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCES
94
EXHIBIT H-3
2000 1999
$ 54,813 $ 54,813
54,813
54,813
54,813
54,813
$ 54,813 $ 54,813
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
NON-OPERATING REVENUES:
Interest income
NET INCOME
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
14IR
EXHIBIT H-4
2000 1999
$ 446
446
54,813 54,367
$ 54,813 $ 54,813
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
CASH FLOWS FROM OPERATING ACTIVITIES - opemting income
CASH FLOWS FROM INVESTING ACTIVITIES - interest received
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
KI
EXHIBIT H-5
2000
1999
512
5013 54,301
$ 54,813 $ 54,813
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group accounts for fixed assets purchased with general governmental
resources, which are used for general governmental purposes. Purchased assets are recorded at cost, and
donated assets are recorded at fair market value on the date donated. No depreciation is recognized on these
assets.
97
"CITY OF ALLEN, TEXAS
"- GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30, 2000
GENERAL FIXED ASSETS:
Land
Buildings and improvements
Improvements other than buildings
Machinery and Equipment
Construction in progress
Total general fixed assets
INVESTMENT IN GENERAL FIXED ASSETS FROM:
General Fund:
Balance at beginning of year
Current operations
Transferred in from component unit
Total investment in general fixed assets
M
EXHIBIT 1-1
2000 1999
$ 15,060,560 $ 7,842,099
14,156,866
9,003,915
55,447,398
36,669,692
12,438,622
10,232,032
2,613,254
9,587,970
$ 99,716,700 $ 73,335,708
$ 73,335,708 $ 60,955,557
16,981,514 12,380,151
9,399,478
$ 99,716,700 $ 73,335,708
DISCRETELY PRESENTEDCOMPONENT UNITS
Allen Economic Development Corporation (AEDC) — AEDC is a legally separate entity from the City and is
responsible for aiding, promoting and furthering economic development within the City.
Community Development Corporation (CDC) — CDC is a legally separate entity from the City and is
responsible for supporting the improvements in community parks and recreation, streets and sidewalks, public
safety and the community library.
pR]
CITY OF ALLEN, TEXAS EXHIBIT J-1
ALLEN ECONOMIC DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30,2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,1991 1
GENERAL GENERAL TOTALS
ECONOMIC LONG-TERM FIXED
DEVELOPMENT DEBT ASSETS 2000 1999
ASSETS AND OTHER DEBITS
Current assets:
Cash and cash equivalents
Investments
Sales tax receivable
Accrued interest receivable
Total current assets
Fixed assets
Amount to be provided for long term debt
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, FUND BALANCE
AND OTHER CREDITS
Liabilities:
Accounts payable
Accrued and other liabilities
Notes payable
Total liabilities
Fund balance and other credits:
Investment in general fixed assets
Unreserved - undesignated
Total fund equity and other credits
TOTAL LIABILITIES, FUND BALANCE
AND OTHER CREDITS
$ 411,414 $ $ $ 411,414 $ 887,336
600,000 600,000 279,000
438,363 438,363 354,943
7,114 7,114
1,456,891 1,466,891 1,521,279
9,538,490 9,538.490 8,441,629
2.636,745 2,636,745 2,981,996
$ 1,456,891 $ 2,636,745 $ 9,538,490 $ 13,632,126 $ 12,944,904
$ 166,249 $ $
$ 166,249 $
67,647
4,461
148,935
2,636,745
2636,745
2,981,996
170,710 2,636,745
2,807,455
3,198,478
9,538,490 9,538,490
8,441,629
1,286,181
1,286,181
1,304,797
1,286,181
9,538,490 10,824,671
9,746,426
$ 1,456,891 $ 2,636,745 $ 9,538,490 $ 13,632,126 $_12 44,9G4
100
. CITY OF ALLEN, TEXAS EXHIBIT J.2
*ALLEN ECONOMIC DEVELOPMENT CORPORATION
-COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Operating transfers in from primary government
Operating transfers out to primary government
Sale of land
Total other financing sources
Excess (deficiency) of revenues and
other financing sources over expenditures
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
101
(78,942) (3,496,950)
146,191 (24,000)
(85,865)
2,722,879
60,326 2,698,879
(18,616) (798,071)
1,304,797 2,102,866
$ 1,286,181 $ __t,304,797
2000
1999
REVENUES:
Sales taxes
$ 2,286,089 $
1,798,923
Interest
65,971
164,022
Miscellaneous
35
Total revenues
2,352,060
1,962,980
EXPENDITURES:
General government
451,421
321,567
Capital outlay
1,096,861
2,314,413
Public works
317,955
559,186
Principal retirement
345,251
1,959,677
Interest
219,514
305,087
Total expenditures
2,431,002
5,459,930
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Operating transfers in from primary government
Operating transfers out to primary government
Sale of land
Total other financing sources
Excess (deficiency) of revenues and
other financing sources over expenditures
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
101
(78,942) (3,496,950)
146,191 (24,000)
(85,865)
2,722,879
60,326 2,698,879
(18,616) (798,071)
1,304,797 2,102,866
$ 1,286,181 $ __t,304,797
CITY OF ALLEN, TEXAS EXHIBIT J-3
COMMUNITY DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,1999)
GENERAL TOTALS
COMMUNITY LONG-TERM
DEVELOPMENT DEBT 2000 1999
ASSETS
Current assets:
Cash and cash equivalents
$
2273.161
$
$
273100 $
2124,848
Investments
1,417,000
Sales tax receivable
438,363
438,363
23,347
355,453
23,050
Accrued interest receivable
23,347
Total current assets
4J51,8911
4151,891
4,878,330
9,399,478
Fixed assets
Amount to be provided for long term debt
9,965,000
9,965,000
10190,000
TOTALASSETS
$
4,151,891
$
9,965,000 $
14,116,891 $
24,467,808
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$
651,163
$
$
651,163 $
220,283
Retainage payable
43,929
9,965,000
43,929
9,965,000
152,320
10,190,000
Revenue bond payable
Total liabilities
695,092
9,965,000
10,660,092
10,562,603
Fund balance and other credits:
9,399,478
Investment in general fixed assets
3,456,799
3,458,799
4,391.351
Reserved for encumbrances
114,376
Unreserved - undesignated
Total fund equity and other credits
3,456,799
3,456,799
13,905,205
TOTAL LIABILITIES AND FUND BALANCES
$
4,151,891
$
9,965,000 $
14,116,891 S
24,467,808
102
CITY OF ALLEN, TEXAS EXHIBIT J4
COMMUNITY DEVELOPMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
103
2000
1999
REVENUES:
Sales taxes
$ 2,286,089 $
1,798,823
Interest
243,618
271,161
Total revenues
2,529,707
2,069,984
EXPENDITURES:
General items
1,007
18,566
Community development
74,382
62,148
Capital outlay
2,580,068
6,519,672
Principal retirement
225,000
160,000
Interest
641,517
279,190
Total expenditures
3521,974
7,039,576
Excess (deficiency) of revenues over expenditures
(992,267)
(4,969,592)
OTHER FINANCING SOURCES (USES):
Operating transfers in from pdmary government
19,339
Operating transfers out to primary government
(76,000)
(231,100)
Bond proceeds
5,125,000
Total other financing sources (uses)
(56,661)
4,893,900
Excess deficiency) of revenues and
other financing sources over expenditures
and other financing uses
(1,048,928)
(75,692)
FUND BALANCE, BEGINNING OF YEAR
4,505,727
4,581,419
FUND BALANCE, END OF YEAR
$ 3,456,799 $
4,505,727
103
CITY OF ALLEN
104
STATISTICAL SECTION
(UNAUDITED)
105
CITY OF ALLEN, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (Note A)
(UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL GENERAL
PUBLIC
PUBLIC
CULTURE AND
YEAR GOVERNMENT
SAFETY
WORKS
RECREATION
1991 $
862,415
$ 2,918,733 $
359,739
$ 1,092,266
1992
815,243
2,974,389
354,775
1,092,446
1993
848,349
3,116,234
445,708
1,206,176
1994
892,067
33,524,883
499,867
1,143,493
1995
1,534,808
4,028,945
541,827
1,465,860
1996
1,257,365
4,339,685
542,141
17,648,576
1997
1,788,174
5,620,122
585,179
2,133,283
1998
2,126,443
6,911,125
675,079
2,541,508
1999
2,657,125
8,006,330
854,907
2,913,149
2000
3,714,436
9,063,625
1,963,195
3,390,150
Source: Current year and prior year combined financial statements.
Note :
(A) Includes General, Special Revenue and Debt Service Funds.
HIM
10:11114i1
COMMUNITY
CAPITAL
DEBT
DEVELOPMENT
OUTLAY
SERVICE
TOTAL
$ 339,926
$ 60,555
$ 2,403,238 $
8,036,872
395,062
1,443,876
2,399,566
9,475,357
410,828
389,939
2,801,470
9,218,704
456,149
2,403,619
38,920,078
545,331
158,959
3,005,147
11,280,877
587,059
758,278
3,007,485
28,140,589
674,604
980,289
3,620,852
15,402,503
748,510
678,761
3,643,055
17,324,481
618,812
254,693
4,451,686
19,756,702
1,230,318
1,153,095
5,545,171
26,059,990
107
CRY OF ALLEN, TEXAS
GENERAL GOVERNMENTAL REVENUES SY SOURCE (Note A) (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL
LICENSES
INTER-
CHARGES FOR
YEAR
TAXES (B)
AND PERMITS
GOVERNMENTAL
SERVICES
1991
$ 67,048 $
207,765
$
$ 162,024
1992
7,201,152
356,249
42,069
154,597
1993
7,953,660
555,143
57,137
207,154
1994
8,563,016
706,120
28,121
92,418
1995
9,200,266
615,891
9,293
1996
10,757,710
922,138
112,972
1997
12,002,526
1,026,175
243,417
1998
13,976,651
1,842,603
287,020
1999
16,607,129
2,006,937
358,597
2000
20,255,520
1,733,140
992.672
Note:
(A) Includes General, Special Revenue and Debt Service Funds.
(B) Includes ad valorem, penalty and interest, franchise, hotel and sales taxes -
General and Debt Service Funds.
(c) Includes gifts and contributions.
108
TABLE 2
FINES AND
GIFTS AND
FORFEITURES
CONTRIBUTIONS
INTEREST
MISCELLANEOUS
TOTAL
$ 147,777
$
$ 191,869
$ 279,654 $
1,056,137
144,938
147,550
154,953
8,201,508
175,066
151,747
388,154
9,487,961
177,323
209,376
711,445
10,467,819
202,345
420,387
666,113
11,314,295
310,318
473,570
510,363
13,087,071
332,385
451,499
909,111
14,965,113
465,756
685,217
521,151
459,825
18,238223
671,934
254,693
478,640
653,506
21,031,436
738,005
1,158,765
1,000,208
1,099,644
26,977,954
109
CITY OF ALLEN, TEXAS
AD VALOREM TAX LEVIES AND COLLECTIONS (UNAUDITED)
LAST TEN FISCAL YEARS
(1) Includes penalty and interest collections. Such amounts are recorded with
ad valorem tax revenue in the combined financial statements.
110
PERCENT
DELINQUENT
FISCAL
TOTAL
CURRENTTAX
OF LEVY
TAX
YEAR
TAX LEVY
COLLECTIONS
COLLECTED
COLLECTIONS
1991
$ 5,267,589
$ 5,266,395
99.98
$ 101,184
1992
5,423,882
5,483,917
101.11
190,813
1993
5,578,141
5,578,440
100.01
31,752
1994
5,770,930
- 5,770,699
100.00
14,349
1995
6,380,680
6,363,231
99.73
19,016
1996
7,139,479
7,142,679
100.04
50,451
1997
8,092,555
8,056,575
99.56
80,355
1998
9,107,745
9,102,700
99.94
27,067
1999
10,823,366
10,762,014
99.43
68,580
2000
13,100, 263
13,043,521
99.57
103,623
(1) Includes penalty and interest collections. Such amounts are recorded with
ad valorem tax revenue in the combined financial statements.
110
TOTALTAX
COLLECTIONS (1)
$ 5,367,579
5,674,730
5,610,192
5,785,048
6,382,247
7,193,130
8,136,930
9,129,767
10,830,594
13,147,144
PERCENT OF
TOTALTAX
COLLECTIONS
TO TAX LEVY
99.29 %
100.71
100.39
100.87
99.65
100.06
99.57
99.81
100.36
100.36
TABLE 3
PERCENT OF
OUTSTANDING
OUTSTANDING
DELINQUENT
DELINQUENT
TAXES
TAXES TO TAX LEVY
$ 14,856
0.28
14,065
0.26
7,957
0.14
6,349
0.11
4,626
0.07
8,158
0.11
12,131
0.15
38,701
0.42
72,467
0.67
56,244
0.43
CITY OF ALLEN, TEXAS TABLE 4
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (UNAUDITED)
LAST TEN FISCAL YEARS
(1) Represents total assessed value before expiration.
Source: City of Allen
112
TOTAL
REAL AND
PERSONAL
PROPERTY
PERCENTAGE OF
FISCAL
ASSESSED
ESTIMATED
TOTAL ASSESSED TO
YEAR
VALUE (1)
VALUE
TOTAL ESTIMATED
1991
$ 765,415,407 $
765,415,407
100
1992
741,981,113
741,981,113
100
1993
728,216,890
728,216,890
100
1994
779,885,438
779,885,438
100
1995
891,654,515
891,654,515
100
1996
1,073,605,805
1,073,605,805
t00
1997
1,248, 651,016
1,248,851,016
100
1998
1,566,233,175
1,566,233,175
100
1999
1,882,324,508
1,882,324,508
100
2000
2,287,107,121
2,287,107,121
100
(1) Represents total assessed value before expiration.
Source: City of Allen
112
CITY OF ALLEN, TEXAS
PROPERTY TAX RATES - DIRECT AND
LAST TEN FISCAL YEARS
OVERLAPPING
GOVERNMENTS (UNAUDITED)
TABLE 5
COLLIN
COUNTY
DEBT
COMMUNITY
FISCAL
GENERAL
SERVICE
ALLEN
COLLIN
COLLEGE
YEAR
FUND
FUND
TOTAL
I.S.D.
COUNTY
DISTRICT
TOTAL
1991
$ 0.375990
0.312180
0.68817
1.54000
0.2172
0.09138
2.53675
1992
0.410900
0.320100
0.73100
1.49000
0.2209
0.09138
2.53328
1993
0.437900
0.328100
0.76600
1.55000
0.2600
0.09855
2.67455
1994
0.431200
0.308800
0.74000
1.66860
0.2600
0.09855
2.76715
1995
0.378050
0.337550
0.71560
1.66860
0.2600
0.09855
2.74275
1996
0.383710
0.281290
0.66500
1.60500
0.2600
0.09855
2.62855
1997
0.358430
0.289570
0.64800
1.69000
0.2600
0.09855
2.69655
1998
0.348670
0.231910
0.58058
1.66110
0.2600
0.09855
2.60023
1999
0.350050
0.224950
0.57500
1.73690
0.2500
0.09888
2.66078
2000
0.346030
0.227970
0.57400
1.76204
0.2500
0.09405
2.68009
Note: Rates are based per $100 valuation.
In 1992, a new taxing entity (County Education District) was established by the State of Texas. County education
district taxes were initially levied and collected during fiscal year 1993. The legislation which created County
education districts was declared unconstitutional by the Texas Supreme Court, and a new State funding method
was enacted for fiscal year 1995.
Source: City of Allen
113
CITY OF ALLEN, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE
AND NET BONDED DEBT PER CAPITA (UNAUDITED)
LAST TEN FISCAL YEARS
GROSS
GENERAL
FISCAL
ESTIMATED
TAXABLE
BONDDENTED
YEAR POPULATION (1)
VALUE (3)
1991
19,939
$ 765,415,407
$ 17,690,000
1992
21,098
741,981,113
16,800,000
1993
22,728
728,216,890
21,903,921
1994
24,493
779,885,438
20,798,921
1995
27,219
891,654,515
26,398,921
1996
29,468
1,073,605,805
32,033,921
1997
32,539
1,248,851,016
30,323,921
1998
35,744
1,566,233,175
38,413,921
1999
43,686
1,882,324,508
49,608,921
2000
48,308
2,287,107,121
59,117,730
(1) Source: Census resullslNorlh Cenral Texas Council of Governments.
(2) Includes all general obligation bonds.
(3) Represent assessed value less exemptions.
(4) Source: Current and prior year financial statements.
114
LESS DEBT
SERVICE
FUND
$ 288,013
301,934
401,949
469,120
594,510
765,253
838,686
1,017,694
937,386
833,788
NET
BONDED DEBT
$ 17,401,987
16,498,066
21,501,972
20,329,801
25,804,411
31,268,668
29,485,235
37,396,227
48,671,535
58,283,942
115
RATIO OF
NET BONDED
DEBT TO
TAXABLE VALUE
0.02274
0.02224
0.02953
0.02607
0.02894
0.02912
0.02361
0.02388
0.02585
0.02548
TABLE 6
NET
BONDED DEBT
PER CAPITA
$ 872.76
781.97
946.06
830.02
948.03
1061.11
906.15
1046.22
1114.12
1206.51
CITY OF ALLEN, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30,2000
TABLE 7
Article XI, Section 5 of the Texas Constitution, applicable to cities of more than 5,000 population: $2.50
per $100.00 assessed valuation. The City Charter of the City of Allen, Texas, does not provide for a
debt limited. The City tax rate of $0.57400 per $100.00 assessed valuation is 23.22% of the constitutional
limit for operation and debt service.
fiiL:l
CITY OF ALLEN, TEXAS
TABLE 8
COMPUTATION OF DIRECT AND OVERLAPPING
DEBT (UNAUDITED)
SEPTEMBER 30, 2000
PERCENTAGE
AMOUNT
(1)
APPLICABLE TO
APPLICABLE TO
GROSS DEBT
CIN OF
CITY OF
OUTSTANDING
ALLEN
ALLEN
City of Allen
$
59,117,730
100% $
59,117,730
Allen I.S.D.
148,725,014
100%
148,725,014
Collin County
166,831,055
6.28%
10,489,213
Collin County Community College District
20,718,172
6.28%
1,302,619
Total direct and overlapping debt
$
395,391,971
$
219,634,576
Average debt per capita
$
8,185
(1) Includes all general obligation debt which is to be repaid through property taxes.
117
CITY OF ALLEN, TEXAS TABLE 9
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES TO
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES (UNAUDITED)
LAST TEN FISCAL YEARS _
Table includes General and Debt Service Funds.
118
RATIO TO DEBT
SERVICE TO
TOTAL GENERAL
GENERAL
FISCAL
TOTAL DEBT
GOVERNMENTAL
GOVERNMENTAL
YEAR
PRINCIPAL
INTEREST
SERVICE
EXPENDITURES
EXPENDITURES
1991 $
810,000 $
1,582,907 $
2,392,907 $
8,036,872
0.29774
1992
890,000
1,502,339
2,392,339
9,475,357
0.25248
1993
980,000
1,412,589
2,392,589
9,218,704
0.25954
1994
1,105,000
1,294,973
2,399,973
8,920,078
0.26905
1995
1,195,000
1,204,232
2,399,232
11,260,877
0.21306
1996
1,465,000
1,539,912
3,004,912
12,256,870
0.24516
1997
1,710,000
1,906,985
3,616,985
15,402,503
0.23483
1998
1,927,980
1,715,075
3,643,055
17,324,481
0.21028
1999
2,145,000
2,306,686
4,451,686
19,756,702
022520
2000
2,830,000
2,715,171
5,545,171
24,828,513
0.22334
Table includes General and Debt Service Funds.
118
CITY OF ALLEN, TEXAS TABLE 10
PROPERTY VALUES, CONSTRUCTION AND BANK DEPOSITS (UNAUDITED)
LAST TEN FISCAL YEARS
(1) Source: City of Allen - Building Inspections (includes all permits)
(2) Includes new construction, alterations, addons and improvements.
TOTAL
—CONSTRUCTION
(1)
FISCAL
ASSESSED
NUMBER
COMMERCIAL
NUMBER
RESIDENTIAL
YEAR
VALUE
PERMITS
VALUE
PERMITS
-VALUE (2)
1991
$ 765,415,407
22
$ 5,024,426
887
$ 45,816,464
1992
741,981,113
233
2,339,304
1,175
57,715,269
1993
728,216,890
321
23,820,557
1,514
74,697,229
1994
779,885,438
332
9,239,371
2,411
119,699,855
1995
891,654,515
333
13,491,728
2,259
104,305,165
1996
1,073,605,805
319
36,369,959
2,803
164,855,137
1997
1,248,851,016
386
75,998,593
2,487
158,480,566
1998
1,566,233,175
468
56,481,429
3,360
209,691,408
1999
1,882,324,508
133
116,245,279
1,298
209,732,070
2000
2,287,107,121
252
105,883,860
1,425
244,820,111
(1) Source: City of Allen - Building Inspections (includes all permits)
(2) Includes new construction, alterations, addons and improvements.
CITY OF ALLEN, TEXAS
TABLE 11
PRINCIPAL TAXPAYERS (UNAUDITED)
SEPTEMBER 30,2000
PERCENTAGE OF
1999
TAXABLE ASSESSED
TAXPAYER
TYPE OF BUSINESS
VALUATION
VALUATION
TXU - Electric and Gas
Utilities
29,875,387
1.31%
Allen Office Inv. Ltd. Partners
Information Services
$ 27,950,000
1.22%
Meridian Settlers Gate Ltd.
Apartment Complex
25,060,000
1.10%
Southwestern Bell
Telephone Utilities
23,356,637
1.02%
Spanos Corporation
Apartment Complex
22,159,680
0.97%
Janice Brittingham
Real Estate
22,033,724
0.96%
FSI International Inc.
Lythographics
18,342,622
0.80%
Lyrick
Media and publication
15,524,954
0.68%
Robert & Wanda Barnwell
Apartment Complex
15,025,000
0.66%
Twin Creeks Villiage LP
Shopping Center
12,378,907
0.54%
Total
$ 211,706,911
9.26%
Source: City of Allen
120
CITY OF ALLEN, TEXAS TABLE 12
MISCELLANEOUS STATISTICAL FACTS (UNAUDITED)
SEPTEMBER 30, 2000
Dale of Incorporation
July 1, 1953
Form of Government
Council/Manager
Area
27.1059 square miles
Miles of street
197.93 center line miles
Papulation estimate (2000)
48,308
Fire Protection:
790 acres
Number of stations
4
Number of personnel
68
Number of fire hydrants
2218
Police Protection:
13
Number of stations
1
Number of personnel
62
Water Service:
10 elementary, 2 middle schools,
Supplier
North Texas Municipal Water District
Number of consumers
15,946
Average daily consumption
N/A
Miles of water lines
199 linear miles
Sewer Service
Sanitary sewer lines
191.99 linear miles
Storm sewer lines
65.31 linear miles
Building Permits Issued
4,853
Parks:
Number
38
Area
790 acres
Municipal Employees:
Full-time
368
Par -time
18
Temporary
13
Public Education:
Number of colleges
0
Number of public schools
10 elementary, 2 middle schools,
1 freshman center, 1 high school
Number of private schools
0
121
CITY OF ALLEN, TEXAS TABLE 13
DEMOGRAPHIC STATISTICS (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL ESTIMATED PER CAPITA SCHOOL
YEAR POPULATION INCOME ENROLLMENT (1)
1991
19,939 $
16,040
5,539
1992
21,098
16,040
5,914
1993
22,728
16,040
6,248
1994
24,493
16,040
6,895
1995
27,219
16,040
7,531
1996
29,468
16,040
8,199
1997
32,539
16,040
8,781
1998
35,744
16,040
9,453
1999
43,686
16,040
9,940
2000
48,308
16,040
10,595
(1) Source: Allen Independent School District.
(2) Source: North Dallas Chamber of Commerce/North Central Texas Council of Governments.
(3) Estimates by City, review of available census data and review of various City records.
122
CITY OF ALLEN, TEXAS
REPORT ON FEDERAL
FINANCIAL ASSISTANCE
September 30, 2000
CONTENTS
Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit
Of Financial Statements Performed in
Accordance with Government Auditing Standards
Report on Compliance with Requirements Applicable
To Each Major Program, Internal Control Over
Compliance in Accordance with OMB A-133 and
Schedule of Federal Awards
Schedule on Audit Findings
Corrective Action Plan
Schedule of Federal Awards
Page
1
3
5
8
9
WEAVER
TIDWELL
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
L L,P
FINANCIAL REPORTING BASED ON AN AUDIT OF
CERTIFIED PUBLIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
ACCOUNTANTS
AND CONSULTAxTs
WITH GOVERNMENT AUDITING STANDARDS
1HR* C -H-1 V11
12750 M... LH—
S.,,1210
D.&r Tx., 75251
To the Honorable Mayor, City
1778
9)7,23
F
Council and City Manager
ana
`l g
9)123 9 )3B)
City Of Allen
Allen, Texas
We have audited the financial statements of The City Of Allen (the City) as of and for the
year ended September 30, 2000, and have issued our report thereon dated February 13,
2001. We conducted our audit in accordance with generally accepted auditing standards
and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements
are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grants, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective
of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed one instance of noncompliance that is required to be reported under
Government Auditing Standards. This instance of noncompliance is described in the
accompanying schedule of audit findings as item 2000-1
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over
financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. However, we noted certain matters involving the
DALLAS internal control over financial reporting and its operation that we consider to be reportable
Th- Ft—, Pr.:. conditions. Reportable conditions involve matters coming to our attention relating to
12221 Me -DIRT, significant deficiencies in the design or operation of the internal control over financial
star 1700 reporting that in our judgment, could adversely affect the City's ability to record, process,
D.rv,. Tx., nzsl summarize and report financial data consistent with the assertions of management in the
general purpose financial statements. Reportable conditions are described in the
FORT WORT, accompanying schedule of audit findings as items 2000-2 and 2000-3. We also noted
307 Were S ,.,e S,r.,, other matters involving internal control over financial reporting, which we have reported to
5.,,,1500 management in a separate letter dated February 13, 2001.
Fort Werth. Te.. 76102
woxLOlwwOlorvs
.H.U.1
NTERNA
ASSOCIATES. INC
City of Allen, Texas
February 13, 2001
Page 2
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. Our consideration of the internal
control over financial reporting would not necessarily disclose all matters in the internal
control over financial reporting that might be reportable conditions and accordingly, would
not disclose all reportable conditions that are considered to be material weaknesses.
However, we believe none of the reportable conditions described above is a material
weakness.
This report is intended for the information and use of management and federal awarding
agencies, and is not intended to be and should not be used by anyone other than these
specked parties.
1
I
i
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 13, 2001
1
I
i
REPORT
I
I
I
ACH JOR PROGRAM RNAL CONTROL
COMPLANCE IIN ACCORDANCE WITH MBCRCULAR A-33E
AND SCHEDULE OF FEDERAL AWARDS
WEAVER
TIDWELL
LLP
To the Honorable
Mayor, City
CERTIFIED PUBLIC
Council and City Manager
ACCOUNTANTS
IAND caxsuLrgxTs
City Of Allen
Allen, Texas
P..a C,.,..1 vu
12750 Men, 0n
S..,, 1210
Compliance
n.n.,, a..,]5251
70
9�4fl9738
P "22a"3s'
We have audited the compliance of the City of Allen the Ci
compliance requirements described in the U. S Ofce of Management and Budget (OMB)
Circular
'
A-133 Compliance Supplement that are applicable to its major federal program
for the year ended September 30, 2000. The City's major federal program is identified in
the summary of auditor's results section of the accompanying schedule of audit findings.
Compliance with the requirements of laws, regulations, contracts and grants applicable to
its major federal program is the responsibility of the City's management. Our responsibility
is to express an opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing
standards: the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major
federal
program occurred. An audit includes examining, on a test basis, evidence about
the City's compliance with those requirements and performing such other procedures, as
we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination on the
'
City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to
above that are applicable to its major federal program for the year ended September 30,
2000.
'
Internal Control Over Compliance
The management of the City of Allen is responsible for establishing and maintaining
DALLAS
effective internal control over compliance with requirements of laws, regulations, contracts
Tb— P..,,, P1.<.
and grants applicable to federal programs. In planning and performing our audit, we
12221 M,.,, o—,
considered the City's internal control over compliance with requirements that could have a
S.;,. 1700
o.n.,, r,Fx,>5251
direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and
'
report on internal control over compliance in accordance with OMB Circular A-133.
Pon. woxm
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'
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3
I
' City of Allen, Texas
' February 13, 2001
Page 2
' Our consideration of the internal control over compliance would not necessarily disclose
all matters in the internal control that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal
' control components does not reduce to a relatively low level the risk that noncompliance
with applicable requirements of laws, regulations, contracts, and grants that would be
material in relation to a major federal program being audited may occur and not be
' detected within a timely period by employees in the normal course of performing their
assigned functions. We noted no matters involving the internal control over compliance
and its operation that we consider to be material weaknesses.
' Schedule of Federal Awards
We have audited the financial statements of the City as of and for the year ended
' September 30, 2000, and have issued our report thereon dated February 13, 2001. Our
audit was performed for the purpose of forming an opinion on the financial statements
taken as a whole. The accompanying Schedule of Federal Awards is presented for
purposes of additional analysis as required by OMB A-133 and is not a required part of
the financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the financial statements, and, in our opinion, is fairly stated, in all
material respects, in relation to the financial statements taken as a whole.
' This report is intended for the information of management and federal awarding agencies
and is not intended to be and should not be used by anyone other than those specified
parties.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 13, 2001
CITY OF ALLEN, TEXAS
SCHEDULE OF AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Section ISummary of Auditors' Results
FINANCIAL STATEMENTS:
An unqualified opinion was issued on the financial statements.
Internal control over financial reporting:
• Material weakness(es) identified? _Yes _XNo
• Reportable condition(s) identified
that are not considered to be
material weakness(es)1 -& -Yes _No
Noncompliance material to financial
Statements noted? X Yes _No
FEDERAL AWARDS:
Internal control over major programs:
• Material weakness(es) identified? _Yes X No
• Reportable condition(s) identified
that are not considered to be material
weakness(es)? _Yes X No
An unqualified opinion was issued on compliance for major program.
Any audit findings disclosed that are
required to be reported in accordance
with section 510(a) or Circular A-133? _Yes X No
Identification of major program(s):
16.710 COPS Universal Hiring Supplemental Award
Dollar threshold used to distinguish
between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? _Yes X No
5
CITY OF ALLEN, TEXAS
SCHEDULE OF AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Section II -Financial Statement Findings
Compliance Issue
2000-1 Delinquent Property Tax Allocation
Condition: During the course of our audit, we noted that delinquent property taxes, related collections and
the associated estimated allowances for non -collectible amounts are not being allocated to the Debt service
fund.
Effect: The amount required to service general obligation debt might not be properly recorded, classified
and disclosed.
Recommendation: We recommend that the City comply with §26.05 (f) of the State Property Tax Code that
requires all revenue generated by a debt service tax rate to be used for no other purpose than for the
retirement of debt. Effective June 19, 1987, delinquent taxes and collections were required to be allocated
to the General Fund and the Debt Service Fund.
Management's Response: Management plans to allocate delinquent tax collections to both the General and
Debt Service Funds beginning in the current fiscal year.
Reportable Conditions
2000-2 Fixed Asset Detail Records
' Condition: During our audit of property and equipment, it was noted that the City does not have or maintain
adequate records pertaining to water and sewer fund foxed assets and the general fixed assets of the City and
its component units. During fiscal year ended September 30, 1998, the City contracted with a third party to
perform an inventory of the assets owned by City of Allen. To date, the property record, based on the
inventory, has not been reconciled to the existing asset balances in the general ledger accounts.
' Effect: Property, plant, and equipment in the general fixed assets account group and proprietary funds may
not represent accurate and valid information regarding the capitalizable cost of assets purchased,
constructed, or leased and physically on hand.
Recommendation: We recommend that the City implement and maintain a software system (in-house
developed or purchased software) to account for all of the City's fixed assets including additions and
deletions, and to provide for depreciation (in the water and sewer fund). Additionally, fixed assets listings
generated by the system should be reconciled to the related general ledger accounts.
Manaaement's Response: One of the top priorities of the Finance Department, with the addition of the
Senior Accountant position in the current budget year, is to implement a fixed asset accounting system.
' This will be done in conjunction with preparation for the implementation of the new reporting model under
GASB 34.
I
CITY OF ALLEN, TEXAS
SCHEDULE OF AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Reportable Conditions - continued
2000-3 Utilities Receivable
Condition: In performing procedures to audit water and sewer accounts receivables, the City was unable to
provide subsidiary or other information to support or reconcile to the general ledger account balances.
Therefore, significant amount of audit time was required to establish the reasonableness of the amounts
recorded.
Effect: Receivables at the end of the period may not be recorded at the correct amount or stated at the net
realizable value.
Recommendation: We recommend that the City generate aged water and sewer accounts receivable
subsidiary reports and reconcile the respective general ledger balances to the subsidiary information on a
monthly basis. Accrued unbilled utility receivables should be recorded in separate general ledger accounts.
Manaaement's Response: Since changing the Utility billing to the HTE software system, the City has been
unable to obtain aged receivable reports that could be reconciled to the general ledger. Management plans
to give priority to this item in that the Utility Billing and Finance departments will work toward utilizing the
software system to begin generating subsidiary receivables information prior to the end of the current fiscal
year. In addition, the City plans to begin recording billed and unbilled receivables in separate accounts.
7
CITY OF ALLEN, TEXAS
CORRECTIVE ACTION PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Corrective Action Plan
2000-1 Delinquent Property Tax Allocation
Management plans to allocate delinquent tax collections to both the General and Debt Service
Funds beginning in the current fiscal year.
2000-2 Fixed Asset Detail Records
Management plans to implement a fixed asset accounting system to account for all of the City's
fixed assets including additions and deletions, and to provide for depreciation (in the water and
sewer fund).
2000-3 Utilities Receivable
Management plans to give priority to this item in that the Utility Billing and Finance departments will
work toward utilizing the software system to begin generating subsidiary receivables information
prior to the end of the current fiscal year. In addition, the City plans to begin recording billed and
unbilled receivables in separate accounts.
i
CITY OF ALLEN, TEXAS
SCHEDULE OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2000
Agency
Federal Grantor/
Federal
Grantor or
Passed Through Grantor/
CFDA
Pass -Through
Program Title
Number
Number
Expenditures
United States ❑ partme_t of Justice
COPS in School Programs
16.710
1999SHWX0301
$ 122,344
COPS Universal Hiring Supplemental Award (1)
16.710
95CFWX4044
386,330
$ 508,674
(1) Denotes a major program
Note: This schedule of federal awards is prepared on the accrual basis of accounting.
i
CITY OF ALLEN, TEXAS
COMMUNICATION OF INTERNAL CONTROL STRUCTURE
RELATED MATTERS NOTED IN THE AUDIT
' FOR THE YEAR ENDED SEPTEMBER 30, 2001
1
1
1
1
1
1
1
1
I
II
I
January 18, 2002
WEAVER
' TIDWELL
To the Honorable Mayor,
LLP
City Council, and City Manager
City of Allen, Texas
CEPTIFIEO PUBLIC
ACCOUNTANTS
AND CONSULTANTS
Management of the City of Allen, Texas (the "City') is responsible for establishing and
maintaining the City's internal control structure. In fulfilling this responsibility, estimates and
'
judgments by management are required to assess the expected benefits and related costs
of internal control structure policies and procedures.
'
The Citys internal control structure consists of policies and procedures established by
management to provide reasonable, but not absolute, assurance that the financial data are
recorded, processed, summarized, and reported consistent with the assertions embodied in
'
the financial statements. In establishing those policies and procedures, management
assesses their expected benefits and related costs. Because
of the inherent limitations in
any internal control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any assessment of the internal control structure to future
'
periods is subject to the risk that policies or procedures may become inadequate because
of changes in conditions or that the degree of compliance with the policies or procedures
may deteriorate.
'
In planning and performing our audit of the financial statements of the City of Allen for the
year ended September 30, 2001, we considered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the
'
financial statements and not to provide assurance on the internal control structure. Our
report on compliance and on intemal control over financial reporting is documented in a
separate letter dated January 18, 2002. However, certain matters came to our attention
that we wish to report to you. These matters, which were considered by us during our audit
the financial
t
of statements and do not modify the opinion expressed in our report dated
January 18, 2002, are presented in the following paragraphs.
Accounting Staff
'Observation:
The City has an unfilled position of Finance Director and one other unfilled accounting
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position within the accounting department. This situation has hindered the accounting
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department's ability to complete financial activities on a timely basis and to provide the
services required in preparation for the annual audit of the City's financial statements. As
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a result, a significant amount of time was required to complete the audit due to the
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unfilled positions.
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Recommendation:
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We recommend that the City ensure it has the proper and adequate staffing resources in
place to appropriately perform the City's day-to-day financial activities.
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CITY OF ALLEN, TEXAS
January 18, 2002
Page Two
Utilities Receivable
Observation:
In performing procedures to audit water and sewer accounts receivables, the City was
unable to provide subsidiary detail or other information to support or reconcile billed and
unbilled utilities receivables to the general ledger account balances. Therefore, a
significant amount of audit time was required to establish the reasonableness of the
amounts recorded. In addition, the City records billed and unbilled water and sewer
receivables in the same general ledger account.
Recommendation:
We recommend that the City generate aged water and sewer accounts receivable
subsidiary reports and reconcile the respective general ledger balances to the subsidiary
information on a monthly basis. Accrued unbilled utility receivables should be recorded in
general ledger accounts separate from those used to record charges and services already
billed to consumers.
Deferred Revenue Accounts
Observation:
During our audit of defamed revenues we noted instances where collections from court
cases to be used to defray costs of providing court security and for upgrading electronic
equipment are deferred and the associated revenue and expenditures are not appropriately
reflected in the City's operations. In several cases, the related activities have been treated
as increases (when funds are received) or decreases (when payments are made) of the
balance of each individual liability account. As part of our audit procedures, our audit staff, in
conjunction with the Citys accounting staff, made the necessary adjustments to recognize
current years revenue from court cases, the expenditure of such funds, and the appropriate
amounts in specific designated fund balance accounts.
Recommendation:
We recommend that the City review its treatment of funds received that are to be
restricted for specific future expenditures. These amounts should be recorded as
revenue when received and held as designated for a speck purpose until the funds are
actually expended, at which time the expenditure should be recorded.
Municipal Court Revenue
Observation:
During our audit of municipal court revenues we noted that the City did not have adequate
subsidiary information to support the general ledger balance for revenue from moving and
non-moving traffic violations and from other municipal court sources. As a result, a
significant amount of time was spent on alternate procedures to obtain assurance that the
general ledger balance is accurately stated. The City's departments are responsible for
maintaining subsidiary listings and other schedules necessary for providing the information
needed to update and support the general ledger on a timely basis.
'
CITY OF ALLEN, TEXAS
January 18, 2002
Page Three
Municipal Court Revenue (continued)
Recommendation:
We recommend that the City generate detailed subsidiary reports on revenue from the
'
municipal court and reconcile the respective general ledger balances to the subsidiary
information on a monthly basis. Reconciling differences should also be investigated and
resolved monthly. Both the Municipal Court and the City's accounting department should
'
work in harmony to ensure the accomplishment of these recommendations.
Changes in the Government Reporting Model
'
The Government Accounting Standards Board (GASB) issued its revolutionary new
reporting model in June 1999. The new model dramatically changes the presentation of
governments' external financial statements. In the GASB's view, the objective of the new
model is to enhance the clarity and usefulness of government financial statements to the
citizenry, oversight bodies, investors and creditors. It will substantially affect the Citys
financial data accumulation and financial statement presentation processes. Some of the
key aspects of the changes follows:
'
management's Discussion and Analysis rMD&A) — A comprehensive MD&A will now be
included as required supplementary information. The MD&A will introduce the financial
statements by presenting an analysis of the government's financial performance for the
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year and its financial position at year-end. The MD&A will be in addition to the transmittal
letter currently required for Government Financial Officers Association (GFOA) award
candidates, such as your city, but we expect that the GFOA will make changes in their
requirements so as to avoid any duplication between the two documents.
Govemment-Wide Reporting — The City will be required to report financial operations and
net assets, not only at the fund perspective for governmental activities, but will also have to
'
prepare statements at the government -wide level. This level will distinguish between
government and business type activities. All information at the government -wide level will
be reported using the economic resources measurement focus and accrual basis of
accounting, as enterprise funds do under the current model. Fiduciary activities will be
1
excluded from the government -wide level of reporting. General government fixed assets,
including infrastructure, and long-term liabilities of the government will need to be reported
_
with all other governmental assets and liabilities.
Statement of Activities — Governments will now be required to use a 'net program cost"
format for the government -wide statements instead of a traditional operating statement.
This new format groups revenues and expenses by functional categories (such as public
safety, public works, etc.). The purpose of the new statement is to inform readers about the
cost of specific functions and the extent to which they are financed with program revenues
or general revenues of the government. Governments will have the option of reporting both
direct and indirect program costs. Depreciation expense will not generally be reflected as a
cost in the statement of activities.
Infrastructure Reporting — Historically, the City has not been required to record
infrastructure assets in its financial statements. under the new standard, the City must
report infrastructure assets at historical cost or estimated historical cost. The standard
Provides several alternatives for determining historical cost of infrastructure assets.
Although the standard generally requires depreciation of infrastructure assets, the City may
not be required to depreciate these assets if it can demonstrate that it is preserving its
infrastructure at approximately (or above) a disclosed condition level established by the
city.
' CITY OF ALLEN, TEXAS
January 18, 2002
Page Four
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Fund Level Reoortina — Fund level financial statements will still be required and will provide
information about the City's fund types, including
fiduciary funds and blended component
units. General capital assets and general long -tens liabilities
will only be reported at the
government -wide level. Fund level reporting will continue to focus on fiscal accountability
and reflect the flows and balances of current financial resources. The modified accmal
basis of accounting will continue to be
used at the fund level, except for proprietary and
fiduciary funds, which would continue reporting, based on economic resources and the
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accrual method of accounting. A reconciliation between the fund and the government -wide
statements will be required on the face
of the fund statements. Finally, proprietary fund
cash flow statements must be presented using the direct method.
'
Presentation of Budoetary Information — The standard requires budgetary statements for
the general fund
and certain other governmental funds as required supplementary
information. The original adopted budget of the City as the
well as final revised budget
must be presented. Actual results on a budgetary basis will need to be
reconciled to the
GAAP (generally accepted accounting principles) basis on the face of the statements.
Effective Dates - The effective date of the new pronouncement will require implementation
by the City for its year ended September 30, 2003.
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The magnitude of these changes and
the time required preparing for implementation should not be
underestimated. We
recommend that the City begin to look at its systems and processes to ensure that the
required information will be available to ensure timely implementation. Further, we
recommend that the City consider the
cost of required changes to its systems and
processes to ensure availability of necessary funds in its upcoming budget.
'
Status of Prior Year Comments
Accompanying this letter is a summary of the status of prior year comments, which should
be read along with our current observations
and recommendations.
Concluding Comments
' We appreciate the opportunity to be of service and wish to express our appreciation to the
officials and employees of the City for their cooperation and assistance during the course of
the audit. We would be pleased to discuss these recommendations in greater detail or
otherwise assist in their implementation.
This report is intended solely for the information and use of the City council, management,
and others within the organization.
WEAVER AND TIDWELL, L.L.P.
1
1
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CITY OF ALLEN, TEXAS
January 18, 2002
Page Five
STATUS OF PRIOR YEAR COMMENTS
The status of prior year's recommendations is based upon discussion with management and limited
review of their implementation.
'
Recommendations
I. We recommended the City agree the
beginning of the year fund balances/retained
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earnings to prior year audited balances after
the posting of all the audit adjusting entries
2. We recommended that the City implement
and maintain a software system
(in-house
developed or purchased software) to account
for all of the Citys fixed assets including
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additions and deletions, and to provide for
depreciation (in the water and sewer fund).
Additionally, fixed assets listings generated
by the system should be reconciled to the
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related general ledger accounts.
3. We recommended that the City comply
with §26.05
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(f) of the State Property Tax
Code that requires all revenue generated by
a debt service tax rate to be used for no other
purpose than for the retirement of debt.
'
Effective June 19, 1987, delinquent taxes,
and collections were required to be allocated
'
to the General Fund and the Debt Service Fund.
4. We recommended that the City generate
aged water and sewer accounts receivable
subsidiary reports and reconcile the respective
'
general ledger balances to the subsidiary
information on a monthly basis. Accrued
unbilled utility receivables should be recorded
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in separate general ledger accounts.
Implementation
Implemented Not Implemented In Process
El
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X
5. We recommended that the City develop a
' reimbursement schedule that can be applied
to the various departments that utilize the
specific services and result in revenue being
' recognized in the appropriate internal service
fund and an expenditure being recorded by
the user department. X
' 6. We recommended that the City budget and
record special revenue expenditures in the
special revenue fund. If special revenue
resources are utilized to subsidize a larger
project in another fund a transfer should be
recorded. However, detailed records of the
use of the funds should be maintained. )(
X