The URL can be used to link to this page

Comprehensive 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 In¢rtn Fim i M9SF Mu¢Ilinwus AEwWnn Sp¢al Asseumrnls ] iAS954 OM% Cmnmunilr DercloPmrnl I cifiamemnmemgna C,Ivert• 39M R Fmn 9,M %% C� M— M. crm.awP=mw syyA roM z7M FlmY 15 139134 ,, 7 ti2571% , 33 ]Ix P mc"l Relmnnl ml Gomnmml nam calx 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 307 W,,, S,.... h Svm, 500 1157ea, ' Fnr, Wor,h. A, 76/02 wo8^Dw IIEAFFlLIgiIONB NTEANA A 860CIgiES INC 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 t position within the accounting department. This situation has hindered the accounting D,,.AS 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 '221 41, """ 1221 nr..,,, n,... a result, a significant amount of time was required to complete the audit due to the q P ' unfilled positions. Oal(aA-' -1211-'211 1-2 111 111 Recommendation: I 1 2 -1121r1 POA, WORT' 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. mon ley, r„A,,,n s�,T„ on .-sun-zrne c 2 e =51 1 sv s Lpco�M N(Ew 1A EII)Epg1 AO .R TI...EueE 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 ' 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 ' 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 ' 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. t 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 1 1 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 ' 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 ' 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 t related general ledger accounts. 3. We recommended 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. 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 ' in separate general ledger accounts. Implementation Implemented Not Implemented In Process El El 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