Comprehensive Annual Financial ReportCITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF ALLEN
FISCAL YEAR ENDED
SEPTEMBER 30, 2001
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2001
TABLE OF CONTENTS
Exhibit
Patio
INTRODUCTORY SECTION
Letter of Transmittal
i
Government Finance Officers Association
Certificate of Achievement
xi
Organization Chart
At
City Officials
xiii
FINANCIAL SECTION
Independent Auditor's Report
1
Combined Financial Statements Overview
(General Purpose Financial Statements):
Combined Balance Sheet —AII Fund Types, Account
Groups and Discretely Presented Component Units
A-1
4
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances —AII Governmental
Fund Types, Expendable Trust Funds, and
Discretely Presented Component Units
A-2
S
Combined Statement of Revenues. Expenditures and
Changes in Fund Balances — Budget (GAAP Basis)
and Actual — General and Debt Service Funds
A3
10
Combined Statement of Revenues, Expenses and
Changes in Fund Equity —AII 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, 2001
TABLE OF CONTENTS
Exhibit
Pane
Combining, Individual Fund and Account Group
Financial Statements and Schedules:
Govemmental 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, 2001
TABLE OF CONTENTS
Exhibit
Pape
Proprietary Fund Types:
Enterprise Funds:
61
Combining Balance Sheet
F-1
62
Combining Statement of Revenues,
Expenses, and Changes
F_2
64
in Retained Earnings
Combining Statement of Cash Flows
F-3
66
Water and Sewer Fund:
Comparative Balance Sheets
F4
68
Comparative Statements of Revenues,
Expenses, and Changes in
F-5
69
Retained Earnings
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
F 8
72
Retained Earnings
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
F-11
75
Retained Earnings
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
F-14
78
Retained Earnings
Comparative Statements of Cash Flows
F-15
79
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2001
TABLE OF CONTENTS
Exhibit
Paae
Parks and Recreation Enterprise Fund:
Comparative Balance Sheets
F-16
80
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-17
81
Comparative Statements of Cash Flows
F-18
82
Aquatics Enterprise Fund:
Comparative Balance Sheet
F-19
83
Comparative Statements of Revenue,
Expenses and Changes in
Retained Earnings
F-20
84
Comparative Statements of Cash Flows
F-21
85
Internal Service Funds:
87
Combining Balance Sheet
G-1
88
Combining Statement of Revenues,
Expenses, and Changes
In Retained Earnings
G-2
89
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
H5
96
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2001
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
ACDC — Combining Balance Sheet
J-3
102
ACDC — Comparative Statements of
Revenues, Expenditures and
Changes in Fund Balances
JA
103
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2001
TABLE OF CONTENTS
Table
Page
STATISTICAL SECTION (Unaudited)
General Governmental Expenditures by Function
1
106
General Governmental Revenues by Source
2
108
Ad Valorem Tax Levies and Collections
3
110
Assessed and Estimated Actual Value of
Taxable Property
4
112
Property Tax Rates — 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
General Bonded Debt To Governmental Expenditures
9
118
Property Values, Construction and Bank Deposits
10
119
Principal Taxpayers
11
120
Miscellaneous Statistical Fads
12
121
Demographic Statistics
13
122
INTRODUCTION
CITY OF ALLEN
May 2, 2002
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, 2001, 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 government. 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 financial 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), m 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 government 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
ALLEN CIVIC PLAZA • 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042
977/!27-0100 • FAX 9721727-0165
EMAIL: m0 aiim.mw
combined financial statements to emphasize that they are legally separate from the
primary government 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, 54,421 in 2001,
and is estimated to surpass 95,000 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 first-class
technology parks and recruiting quality industries to the community.
In 2001, amidst a sluggish national economy, Allen continued to benefit from a healthy
level of commercial/industrial development. Alcatel opened a 260,000 production
facility at 105 Bethany Drive and hired 338 employees. Micron, a world leader in
semiconductor memory products, opened its Texas Engineering Center in Enterprise
Office II, occupying 30,000 square feet and provided 91 new jobs.
Several existing industries also expanded their operations. Sunbelt Telecommunications,
a national telecommunications distributor and value-added service provided of
telecommunications products, expanded internally with the relocation of service
components from their East Coast facility. Metro-Optix, a next generation optical
network company, expanded their 92,000 square foot facility at 505 Millenium Drive
with an additional 6,800 square feet of manufacturing space. Mykrolis (formerly
Millipore), a provider of microelectronics to the semiconductor industry, has transferred
major product lines to the Allen facility resulting in a $2.3 million internal expansion.
Several new office/tech projects were also developed. Trammel Crow began construction
on two high -finish office/tech buildings in Allen Station Business Park, adjacent to the
historic dam site, providing a total of 220,000 square feet (expandable with mezzanine)
for future tech tenants. The project will add approximately $8 million on the local tax
rolls. Cornerstone Crossing completed construction on a 70,00 square foot office/tech
building at the northeast comer of Exchange Parkway and U.S. 75.
With a growing demand for small office space, several new office projects were brought
on-line providing approximately 22,000 square feet for small business owners.
Allen realized the benefits from additional retail and service projects with an additional
116,000 square feet of retail space completed on Phase II of the Allen Premium Outlets,
which draws patrons from over a 60 -mile radius.
Allen's companies and residents will soon be able to take advantage of the services
offered at the Hilton Hotel on the northeast corner of Bethany Drive and U.S. 75. The
hotel began construction on a six -story facility with 150 guestrooms and approximately
12,000 square feet of conference/meeting space. The project is anticipated to open in
summer 2002.
Allen's growing residential base of corporate executives, engineers, and skilled
employees' complements the growing influx of high-tech telecommunications and
medical -related industries. Based on 2000 census figures, Allen's median household
income is $92,022 with 74.06% of employed residents working in white-collar
occupations.
MAJOR INITIATIVES
Current Year Projects. The City of Allen 2000-2001 Budget for operations and debt
service was a 19.35% increase from the 1999-2000 Budget. This Budget reflects growth
for inflationary cost increases, as well as increases for service level enhancements,
infrastructure maintenance, and purchases of capital equipment and capital projects. The
budget increase was funded by increases in revenues resulting from the growing economy
of the City and inter -local agreements with other governmental entities. At the same time
iii
the City Council has continued lowering the property tax rate for the eighth consecutive
year from a level of $.574 per $100 value in 1999-00 to a level of $.564 per $100 value in
2000-2001. Key accomplishments for the 2000-2001 fiscal year include:
Construction began on a new Central Fire Station and Administration
building, scheduled to be completed in Spring 2002.
Renovations began on the current Police Station to add a second story and
new wing. The building is scheduled to be completed in Summer 2002.
Construction of the Donald P. Rodenbaugh Natatorium, scheduled to open in
January 2002, the facility contains 7,000 square foot of leisure waters, a 25 -yard
by 25 -meter competition pool, 5,000 square foot fitness facility, an aerobics room,
a climbing wall and related support facilities.
Phase I of the Mustang Creek drainage improvement project was completed from
Main Street to Timbercreek Drive.
Construction was completed on Watters Road, from McDermott Drive to Bethany
Drive; on Alma Drive, from Suncreek Drive to Hedgeoxe Road; on Exchange
Parkway, from Alma Drive to Watters Branch; and on Allen Heights, from
Rivercrest Boulevard to Main Street.
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 are as follows:
Allen Station Park Phases 2 and 3
Community Park Acquisitions and Trail Development
Drainage system construction and improvements
Construction and Extension of several roads including Angel Parkway and
Malone Road. Chaparral Road Extension, East Bethany Drive Expansion, East
Exchange Parkway Expansion, FM2170 Extension (Main Street), SH5 Expansion
and Watters Road at Stacy Road.
Maintenance of alley approaches, replacement of concrete alleys and asphalt
pavement
Traffic Management and Signals
An additional $10 million bond election for a new Central Library and Civic Auditorium
passed in August of 2000. An architect firm was hired and design plans began in 2001.
iv
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.
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
are reviewed and analyzed for budgetary compliance, and revenue budgets are reviewed
monthly.
General Government Functions. Revenues increased 50.54% over 2000-2001. This
increase is primarily due to inter -local agreements with other governmental entities and
continued growth in the state and regional economy.
The following schedule presents a summary of the General Fund, Special Revenue
Funds, Debt Service Fund, and Capital Project Funds revenues for the year ended
September 30, 2001, 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.
The increased residential and commercial construction and rise in existing home values in
Allen is evidenced by the increase in ad valorem property taxes. Assessed taxable
valuations at year-end totaled $2,849,399,418, which is a 24.5% increase from the
preceding year. The property tax collection rate for fiscal year 2001 was 99.88%. For
the eighth consecutive year the City Council has lowered the property tax rate. See Table
5 in Statistical Section for tax rate history.
ASSESSED PROPERTY VALUATIONS
ft...)
1997 1998 1999 2000 2001
Franchise tax revenue increased primarily due to a growing population. Increased sales
tax revenue of 33.13% and a 29.81% increase in Charges for Services reflects Allen's
population growth and continued economic growth as more businesses make Allen their
home.
The increase in fines is attributed to continued increase in municipal court activity. Gifts
and contributions decreased due to less facility agreements being implemented in 2001
Increase
Percent of
2001
Percent
(Decrease)
Increase
Revenues
Amount
of Total
from 2000
(Decrease)
Ad valorem Taxes
$16,293,275
37.22%
$2,804,582
20.79%
Franchise taxes
2,839,104
6.49%
699,662
32.70%
Municipal Sales Tax
6,160,361
14.07%
1,532,976
33.13%
Licenses and Permits
1,896,867
433%
163,727
9.45%
Charges for services
1,288,629
294%
295,957
29.81%
Fines
1,007,666
2.30%
269,661
36.54%
Gids and contributions
2,250
0.01%
(1,156,515)
(9981%)
Special assessments
7,313
0.02%
(11,475)
(61.08%)
Intergovernmental
10,991,761
25.11%
10,465,540
100.00%
Interest earned
2,614,653
5.97%
2,994
0.11%
Miscellaneous
672.492
1.54%
(371,361)
(35.58%)
Total Revenue
$43,774,371
100.00%
$14,695,748
50.54%
The increased residential and commercial construction and rise in existing home values in
Allen is evidenced by the increase in ad valorem property taxes. Assessed taxable
valuations at year-end totaled $2,849,399,418, which is a 24.5% increase from the
preceding year. The property tax collection rate for fiscal year 2001 was 99.88%. For
the eighth consecutive year the City Council has lowered the property tax rate. See Table
5 in Statistical Section for tax rate history.
ASSESSED PROPERTY VALUATIONS
ft...)
1997 1998 1999 2000 2001
Franchise tax revenue increased primarily due to a growing population. Increased sales
tax revenue of 33.13% and a 29.81% increase in Charges for Services reflects Allen's
population growth and continued economic growth as more businesses make Allen their
home.
The increase in fines is attributed to continued increase in municipal court activity. Gifts
and contributions decreased due to less facility agreements being implemented in 2001
and special assessments had less activity. Intergovernmental revenue was received for
construction of Stacy Road and the natatorium. Interest earnings had a slight increase
although interest rates dropped throughout 2001. Miscellaneous revenue used to record
one-time revenue items dropped 35.58%.
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, 2001, and the amount and percentage of increased and decreases in
relation to prior year's expenditures.
Expenditures
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Capital outlay
Debt service:
Principal retirement
Interest
Increases in Current expenditures are primarily related to staff additions and increased
operational costs. General government added 7 new positions. Public Safety added 14
new police and fire positions, 9 vehicles, 2 motorcycles, and 4 heart monitors. Public
works added 2 positions and machinery and equipment. Culture and Recreation added
8.75 new positions, 5 vehicles, various implements and increased maintenance of new
park facilities brought on-line in 2001. The General Fund budget for 2000-2001
increased by the equivalent of 31.75 full-time positions. The increase in capital outlay
expenditures is predominantly due to local inter -governmental agreements on
construction of Stacy Road and the natatorium and 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 $6,627,991
reflects an increase of $1,243,382 or 23.09%. This is $1,378,109 more than projected in
the 2001 fiscal year revised budget. This increase is primarily due to revenue sources,
such as sales taxes, intergovernmental revenue, and charges for services doing better than
anticipated and expenditures being less than the budgeted amount. The ending fund
balance represents 85 days of operational costs for the 2001-2002 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.
Vii
Increase
Percent
2001
Percent
(Decrease)
of Increase
Amount
of Total
from 2000
(Decrease)
$4,315,392
7.98%
$492,547
12.88%
10,896,606
20.15%
1,832,981
20.22%
2,354,777
4.35%
391,582
19.95%
4,554,158
8,42%
1,164,008
34.33%
1,242,795
2.30%
12.477
1.01%
23,897,780
44.19%
11,569,073
93.84%
3,446,497
6.37%
616,497
21.78%
3,367,273
6.23%
652,102
24.02%
$54,075,278
100.00%
$16,731,267
44.80%
Increases in Current expenditures are primarily related to staff additions and increased
operational costs. General government added 7 new positions. Public Safety added 14
new police and fire positions, 9 vehicles, 2 motorcycles, and 4 heart monitors. Public
works added 2 positions and machinery and equipment. Culture and Recreation added
8.75 new positions, 5 vehicles, various implements and increased maintenance of new
park facilities brought on-line in 2001. The General Fund budget for 2000-2001
increased by the equivalent of 31.75 full-time positions. The increase in capital outlay
expenditures is predominantly due to local inter -governmental agreements on
construction of Stacy Road and the natatorium and 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 $6,627,991
reflects an increase of $1,243,382 or 23.09%. This is $1,378,109 more than projected in
the 2001 fiscal year revised budget. This increase is primarily due to revenue sources,
such as sales taxes, intergovernmental revenue, and charges for services doing better than
anticipated and expenditures being less than the budgeted amount. The ending fund
balance represents 85 days of operational costs for the 2001-2002 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.
Vii
REVENUES AND EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30,
2001 FOR THE GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT
SERVICE FUND, AND CAPITAL PROJECT FUNDS
m,c®P mN
S9M
SIenJ
0,02%0E4
G.. nnn— .enm.
001%
L,u ,'n.
U3%
REVENUES
IntnpoammrnW
l5 II°h
W.,
CN.B®r0.em�a. Fmn 14M
W% 23M
1"'n'ry
30151
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 $1,118,666. This increase is primarily due to growth of the system
in terms of both residential and commercial customers. Comparative data for the past
two fiscal years depicting net revenues available for debt service coverage is shown next.
2001
2000
11.
(Including Interest Income)
$13,819,976
$12,701,310
Operating Expenses
W.
7,679,566
5,862,644
Net Revenues Available for
Debt Service
6,140,410
6,838,666
Annual Debt Service
1,861,484
1,859,300
Coverage (Income available
For Debt Service divided by
W.,
CN.B®r0.em�a. Fmn 14M
W% 23M
1"'n'ry
30151
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 $1,118,666. This increase is primarily due to growth of the system
in terms of both residential and commercial customers. Comparative data for the past
two fiscal years depicting net revenues available for debt service coverage is shown next.
viii
2001
2000
Gross Operating Revenues
(Including Interest Income)
$13,819,976
$12,701,310
Operating Expenses
(Net of Depreciation)
7,679,566
5,862,644
Net Revenues Available for
Debt Service
6,140,410
6,838,666
Annual Debt Service
1,861,484
1,859,300
Coverage (Income available
For Debt Service divided by
Annual debt service)
3.30
3.70
viii
The Internal 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, 2001, the City had $84,853,520 outstanding
bond indebtedness. Of this amount $68,409,064 were general obligation bonds and
$16,444,456 were revenue bonds. All debt is scheduled to retire by 2021. In May 2001,
the City issued $20,715,000 in General Obligation Refunding and Improvement Bonds.
Of this amount $8,715,000 was issued to advance refund a portion of the City's General
Obligation and Improvement Bonds and pay for issuance costs for the bonds, $3,805,000
was for the new library, $5,500,000 for parks and recreation projects, $2,358,108 for
street projects and $336,892 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 Al to an Aa3 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 $28,820,000 in authorized but unissued general
obligation 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 $4,190,583. Interest
is an important non -tax revenue for the City; all interest earned by each fund is allocated
to that fund.
Insurance & Risk Management. The City has established a self-insurance plan for City
employees and their covered dependents for medical and dental care. A third -party
insurance company re -insured the City for individual claims in excess of $25,000. The
City participates in the Municipal League Joint Self -Insurance Fund C'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 Il, Section 2.20, requires
that the City Council shall designate qualified certified public accountants who, as of the
ix
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, 2000. This was the third 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 Vivian Leverington, Senior
Accountant, Joyce Blankenship, Accountant and Debbie Sumrow, Administrative
Secretary who were instrumental in the successful completion of this report. These
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.
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,
Joanne Stoehr
Interim Finance Director
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, 2000
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.
i` MIIE451P16 �
Pr sident
uw
ia� mwwmx s
Y�*E.ecutrve Director
Xi
City of Alien
Organizational Chart
I Citizens of Allen I
City Council
Boards and Commissions F --H City Secretary
City Attorney Municipal Judge
City Manager .........
Assistant to the City Manager
Building and Code Compliance
Com m unity Services
Engineering
Finance
Municipal Court
Fire
Human Resources
Information Technology
Library
Parks and Recreation
Planning and Development
Police
xii
CITY OF ALLEN, TEXAS
CITY OFFICIALS
CITY OF ALLEN
Council Members
Mayor
Mayor Pro Tem, Place 6
Place 1 Council Member
Place 2 Council Member
Place 3 Council Member
Place 4 Council Member
Place 5 Council Member
Stephen Terrell
Melissa Owen
Debbie Stout
Richard Buchanan
Bill Petty
Susan Bartlemay
Kenneth Fulk
Management Staff
City Manager
Interim Finance Director
Peter H. Vargas
Joanne Stoehr
CITY OF ALLEN
X,v
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
WEAVER Honorable Mayor and Members of
TIDWELL CITY
City Council
Y OF ALLEN, TEXAS
LLP
CERTIFIED PUBLIC We have audited the accompanying general purpose financial statements of the City of Allen,
ACCODxiAXTS
AxD CDxBDLTAXTB Texas, as of and for the year ended September 30, 2001, as listed in the table of 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 financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in 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.
1133
In our opinion, the general purpose financial statements referred to above present fairy, in all
material respects, the financial position of the City of Allen, Texas at September 30, 2001, and
the results of its operations and cash flows of its proprietary fund type and nonexpendable trust
fund for the year than ended in conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 15, the City implemented Government Accounting Standards Board
Statement No. 33 in 2001 and, accordingly, recorded capital contributions to proprietary funds
as revenue rather than additions to contributed capital.
In accordance with Government Auciftfng Standards, we have also issued our report dated
January 18, 2002 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
DALLAS
financial statements and schedules listed in the table of contents are presented for purposes of
rn,., eo..,, Pl—
additional analysis and are not a required part of the general purpose financial statements of the
/2221 m.,,. o.,,,.
City of Allen, Texas. The combining, individual fund and account group financial statements and
S „«, ra00
schedules have been subjected to the auditing procedures applied in the audit of the general
mn.,.. 1 -7525/ -zero
purpose financial statements and, in our opinion, are fairly stated in all material respects in
7
997
2,02 02 970
relation to the general purpose financial statements taken as a whole.
F 729M
FORT WORTH
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 on such data.
160 W-5 ..... h s,...,
s„a s6D
41l. Wo81 6 T . ]6ID2-2soo
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sfi04295936
WEAVER AND TIDWELL, L.L.P.
WWW.WBAVERANCTDWBL. COM
Dallas, Texas
""'"E"BB" °`BAKER
January 18, 2002
TILLY
INTERNATICNAL
1133
CITY OF ALLEN
GENERAL PURPOSE FINANCIAL STATEMENTS
CRY OF ALLEN, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER30,2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
ASSETS AND OTHER DEBTS
Cash and cash equivalents
Investments
Recall net of allowances for
uncollectibles:
Ad valorem bees
Sales taxes
Accounts receivable
Accrued interest
Other
Special assessments
Due frown other funds
Invenbrles
Prepaid items
Restricted assets:
Cash and cash equivalents
Fbed assets, net where applicable
of accumulated depreciation
Other assets , at cost
Other debits:
Amount avallable in debt service fund
Amount to be pmvided for retirement
of general long-term debt
TOTAL ASSETS AND OTHER DEBTS It 9,691,652 $ 6,054,982 $ 964.]76 $ 35,381,777 $ 91,897,681 $ 4,241,2]4
The Notes to Financial Statements
are an integral pan of this statement.
4
PROPRIETARY
GOVERNMENTAL FUND TYPES
FUND TYPES
SPECIAL
DEBT
CAPITAL
INTERNAL
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE
SERVICE
$ 5,883,537
$ 2,282,745 $
452.854 $
12.582,858
$ 9,60804 $
998,620
2,183.042
3.741,987
390,618
21,785,530
10,302,944
2,000,000
ISSA53
116,310
1,004,503
5,513
2,098,740
337,104
7,129
23,900
4,466
186,589
114,448
10,335
418,580
528
5,653
226,800
600,000
300,000
49,251
8,208
837
154,582
2,818,450
66,694,609
595,215
50,400
TOTAL ASSETS AND OTHER DEBTS It 9,691,652 $ 6,054,982 $ 964.]76 $ 35,381,777 $ 91,897,681 $ 4,241,2]4
The Notes to Financial Statements
are an integral pan of this statement.
4
EXHIBIT AA
(Cmilnued)
5
302,963
302,963
TOTALS
FIDUCIARY
1,004.503
502,251
502,251
2,009.005
REPORTING ENTITY
FUND TYPES
ACCOUNT GROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
1,725,023
GENERAL
GENERAL
GOVERNMENT
9,252
367,731
520,937
FIXED
LONGTERM
(MEMORANDUM
ECONOMIC COMMUNITY
424,761
TRUST
ASSETS
DEBT
ONLY)
DEVELOPMENT DEVELOPMENT
2001 2000
$ 1,294.741 $
S
$ 33,104.159
$ 495,596 $ 2,851.580 S
36.451,313 $ 32,723,930
M.530
49,251
41,303.651
699,416 799.789
4202.858 36.806.750
(Cmilnued)
5
302,963
302,963
204,936
1,004.503
502,251
502,251
2,009.005
1,753,452
2,441,357
2,441,357
1,725,023
4,588
351,466
7,013
9,252
367,731
520,937
424,761
424,761
258,367
228.800
226.800
253,056
900,000
90.000
51.905
49,251
49,251
163,827
71,811
235,438
2,818,450
2,818,450
2,680,939
125,901,219
193,191,043
6,191.926
199,382,969
172,381.213
50.400
50.400
56,050
848,466
848,468
848,468
833,788
69,848,954
69,848,954
1,932,653
9,985,458
81,767,065
72,223,243
§ 2,198,870E 125.901,219E 70,697,420 E
347,029,851 $
9,828.853 $
14,220,121 $
371,078.825 $
322.373,599
(Cmilnued)
5
CITY OF ALLEN, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
The Notes to Financial Statements
are an integral part of Nis statement.
8
PROPRIETARY
GOVERNMENTAL
FUND TYPES
FUND TYPES
SPECIAL
DEBT
CAPITAL
INTERNAL
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE SERVICE
LIABILITIES
Accounts payable
f 787,854 f
18,381 f
f
3,268.364 f
1,288,487 f 402,980
Accmed liabilities
1,189,164
5Y.986
Accrued mmpansatetl absences
79,765
Retainage payable
1,019,240
54,183
Dua to otherfuns
900,000
Aconin interest payable
Payable them reeMdn assets:
Current porton Of revenue
Iron s payable
1040,000
,
Accrued! Inherent payable
271,538
Utility depoaits
852,058
Deferred revenue
106,653
3,630,655
116,310
226,800
Contracts payable
ns
Revenue bopayable
15,404,455
General obligation bonds payable
Leese payable
Contractual obligations
NOW payable
TOM liabilities
3063.861
3.847.046
115.310
4.512.394
19.044.331 402.96(b
EQUITY AND OTHER CREDITS
Cont6butel capital
48.018,7%
Investment In general fixed assets
Retained! earnings:
Reserved for revenue bond
principal and Interest
654,856
Resenred for field enhancement
33,043
Unreserved
26.145,815 3,838,324
Fund balances:
Reserved lorancumbrences
70,618
75,955
7,059,222
Reserved for debt service
848,488
Unreserved:
Designeln ter construction
3.728,311
Designated formal buildirp secudry,
22.227
Designated for munidpal court techndwy
59.582
Designated for police M.
14,214
Neigh" for fire earvices
2,898
Undesignated
6.0.58.454
2.331.901
20,081.850
Total equity Wed dhar cradib
5627.991
2,407,938
848,468
30.889.383
72.853.550 3.838.324
TOTAL LIABILITIES, EOUITYAND OTHER CREDITS
f 9.891,652 f
8.054,882 f
984.778 f
35.381,777 f
91,897,881 f 4,241.274
The Notes to Financial Statements
are an integral part of Nis statement.
8
EXHIBITA-1
48,018,736 46,018,738 47,177,786
125.901,219 125,901219 6,191,926 132,93,145 109,255,190
1,040,000
1,040,000
TOTALS
FIDUCIJRY
271,538
289,241
REPORTING ENTRY
FUND TYPES
ACCOUNT GROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM
ONLY)
4,160,418
GENERAL
GENERAL
GOVERNMENT
],39],830
848,466
F01ED
LONG-TERM
(MEMORANDUM
ECONOMIC COMMUNITY
15,404,458
TRUST
ASSETS
DEBT
ONLY)
DEVELOPMENT DEVELOPMENT
2001
2000
$ 1,170 $
89,082,730
$
$ 5,764,186 $
48,474 $ 7,121 $
5,819,781 $
3,567,911
133,084
720,915
720,915
1,242,040
4,334 106,508
1,352,1182
1,163,570
2,898
1,427,235
1,507,000
1,572,195
1,507,000
1,271,953
101.485,282
1,985,81
10,099,087
1,073,403
ID8.1091348
1,073,403
385,570
900,000
2,197,700
900,000
51,905
4.121,034
257,508,895
216,264,251
838,132
48,018,736 46,018,738 47,177,786
125.901,219 125,901219 6,191,926 132,93,145 109,255,190
1,040,000
1,040,000
995,000
271,538
271,538
289,241
852,058
852,050
739,459
4,160,418
260,844
4,160,410
],39],830
848,466
848,488
1,128,134
15,404,458
15,404,456
16,432,200
68,409,064
68.409,84
9,625,000
78,034,064
89,082,730
140,208
140,208
140,208
133,084
720,915
720,915
380,458
360,458
1,441,831
2,898
1,572,195
1,572,195
2.636,745
1.170 ]0.69].420
101.485,282
1,985,81
10,099,087
113.569.830
ID8.1091348
48,018,736 46,018,738 47,177,786
125.901,219 125,901219 6,191,926 132,93,145 109,255,190
(Concluded)
7
654,666
654,858
557,239
33,043
33,003
33,043
29,985,239
29,985239
17,602,543
7,205,793
260,844
7,466.]3]
17,248,759
848,466
848,488
833,]88
3,728,311
3,728,311
1,371,559
22,227
22,227
59,582
59.582
14,214
14,214
2,898
2,898
2,197,700
31.069.985
1,651,466
3,860,090
3'581,541
22,184,354
2,197,700
125,901219 245.540,569
7,843,392
4.121,034
257,508,895
216,264,251
$ 2,198.8]0 $
125,901,219 $ 70,fi9],420 $ 30],029,651 $
9,828,853 $
14220.121 $
371,078,825 $
322,3]3.598
(Concluded)
7
CT' OF ALLEN, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUNDS
The Notes to Financial Statements
are an inf mi part of this statement 8
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT
CAPITAL
GENERAL
REVENUE
SERVICE
PROJECTS
REVENUES:
Ad valorem teres, penalties aiM Interest
$ 10,064,6% $
$
6,228,620 5
Franchise lees
2,839,104
6,092,892
67,869
Munldpalsalestas
Llmnse. permits and fees
1,896,867
Clerya for aervcm
1,288,628
Fines
1,007.888
GMs and contributions
2,250
],313
m
Special assessenls
538,]61
10,453,1X10
Intengo,aen—tel
439.240
2]3,438
205,3]9
1,698.588
Interest mored
438.403
12,448
30.661
MiswlHlews
Total revenues
2480].01]
565.803
6.433.999
12187.552
EXPENDITURES
Currsm:
Gaeral9 annment
4A51,058
286,334
PubBosaley
10,896.806
PUNk ems
2,195,]]9
158,988
Cullum ano rsomallon
4,556,158
C atyd mlopmaot
1,242,]95
2,250
23,895.530
Capital outlay
Des servke:
PMsipalreWemaM
276.497
3,170.000
Inerest and fiscal charges
47870
3319403
TotaleWdIWM
23284]63
161.248
8489.403
24.159.584
Excess (deficiency) ot revenues over epandituree
1342.254
364.5:5
(55404)
(11.972.312)
OTHER FINANCING SOURCES (USES):
ProrrJeds horn sale d bonds
12,155,213
Pmof talundiw boots
weds
8.]58,782
Pmweds fmno capital Was obligation
54,275
pmmedel wmrapthal 0Nigations
1.984'826
Payment to refund baM a.. agent
(8,688.700)
Owraew transfers out to Primary govamment
Operating transfers in fmm primary government
Opereting handers out so component untls
16,118
Operating 9ansfem N hom wmponent units
60,000
OpamIW tmnslemh ot1mr funds
1,680.474
1,525,127
Operab, "refs. to oll er NM.
(1895.599)
(72.627)
Thal other firemPw murces(uss)
(1008w)
70.082
15.818.655
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES AND
1,241.404
W'SSS
14,678
3,W'w
OTHER FINANCING USES
FUND BALANCES, BEGINNING OF YEAR
5,W,Wg
24755,251
833,788
27,193,148
R ual epu6y transfers in
1,978
1,931,358
Residual epu6Y transfers aN
(31,870)
(1.901,488)
Prior period sd)usarent
FUND BALANCES, END OF YEAR
It 6.62].931
$ 2.407,936
S 848.466
$ 30.869.383
The Notes to Financial Statements
are an inf mi part of this statement 8
EXHISITA-2
9
4,315,892
484,888
TOTALS
4,275.73
FIDUCIARY
10,80,006
REPORTING ENTITY
FUNOTYPE
TOTALPRIMARY
COMPONENT UNIT$
(MEMORANDUM ONLY)
EXPENDABLE
GOVERNMENT
2,281,19
25,505
4,579.W3
TRUST
(MEMORANDUM
ECONOMIC
COMMUNITY
1.42,795
FUND
ONLY)
DEVELOPMENT
DEVELOPMENT
2001
2000
f
f 16,283,215 f
f
f
18,293,275 f
13,488,893
470,249
2,839,104
310,251
2,839,104
2,139,"2
541.05
6,Iw.wl
3,016,316
3,018,316
12,253,053
9,199,553
2,95,95
1,898,861
43,812,131
MAN
1,898,887
1,133,140
718.351
1,288,829
18.784,5581
1,288,628
892,872
1,07,886
1,007,688
738,05
MAN
25,070
11,10,00
25,070
1,1TT,281
7,313
7,313
18,788
10,981,181
10,901,781
528,221
98,504
2,113,151
60,189
175,590
2,918,916
2,985,485
671.984
1.350.486
1.950..186
2.028,303
799.318
M,573,689
3,iC6,W
1211.838
W.802.170
35.021,573
9
4,315,892
484,888
4,700,380
4,275.73
10,80,006
10,888,808
9,83,825
2,%4,771
448,888
2,W3,863
2,281,19
25,505
4,579.W3
4,579,663
3,402,734
1.42,795
47,888
1,20,863
1.304700
5,007
23,02,787
300,355
1,438,243
25,697,395
16,508,198
3,448.497
1,239,048
470,249
5,184,592
310,251
3387.73
207467
541.05
4.115.845
3,578.02
30512
54.105.700
2.117.00
2,95,95
00.3 ASS
43,812,131
MAN
(9,532,101)
W91M
718.351
(01261851
18.784,5581
12,155,213
12,155,213
11,10,00
8,700,782
8,700,782
%,275
54,275
1,984.826
1,994828
(8,688,700)
(8,988,700)
(21,000)
(52,116)
(/8,116)
(181,885)
165,530
(165530)
76,116
76,116
121,80
3,205001
3,205W1
2,551,059
(1.886.28)
(1.9852281
11.888.3211
15,587,007
(24,0)
(52.1181
15,511,771
11.844730
185800
8,055,186
385.85
884235
7,85.308
2,BM,IW
1,373.881
35840.871
1.80,181
3,49,198
41,563,651
35082,598
1,833,3%
1,933,39
(1,833.39)
(1,933,336)
(128,147)
789,025
f 2.142.97
f 42.898163
f 1.851.49
f 4.121,034
f 48,868,03
f 41.93.657
9
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, 2001
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
proceeds from capital lease obligation
Proceeds of refunding bonds
Payment to refund bond escrow agent
Operating transfers in from component units
Operating transfers from other funds
Operating transfers to othm 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 transfers
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
10
24,161,669 23,264,763 896,906
(929,892) 1,342254 2,272,146
54,275 54,275
60,000 60,000
1,680,474 1,680,474
(945,309) (1895.599) (950,290)
795,165 (100,850) (8961015)
(134,727) 1,241,404 1,376,131
5,384,609 5,384,609
1,978 1,978
$ 5,249,882 $ 6,627,991 $ 1,378,109
GENERALFUND
FAVORABLE
BUDGET
BUDGET
ACTUAL
(UNFAVORABLE)
REVENUES:
Ad valorem taxes, penalties and interest
$ 10,022,135 $
10,064,655
$ 42.520
60.018
2,779,086
2,839,104
Franchise taxes
5,576,764
6,092,692
515,928
Municipal sales tax
1,992,942
1,896,867
(96,075)
License, permits and fees
992'347
1'288'829
296'282
Charge for services
902,650
1,007,666
105,016
Fines
231,497
538,761
307,264
Intergovernmental
404,330
439,240
34,910
Interest earned
330,026
439,403
109,377
Miscellaneous
23231,777
24,607,017
1,375240
Total revenues
EXPENDITURES
Current
4,876,482
4,051,658
8.424
General government
10,988,318
10,89,808
$9 89,712
Public safety
2,072,733
2,1955.779
(123,048)
Publicvrorks
4,683,737
4,554,158
109,579
Culture and recreation
1,259.162
1'242'795
16,397
Community development
Debt service:
263,707
278,497
(
Principal rathemem
39,500
47,870
(8,790)
(8,970)
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
proceeds from capital lease obligation
Proceeds of refunding bonds
Payment to refund bond escrow agent
Operating transfers in from component units
Operating transfers from other funds
Operating transfers to othm 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 transfers
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
10
24,161,669 23,264,763 896,906
(929,892) 1,342254 2,272,146
54,275 54,275
60,000 60,000
1,680,474 1,680,474
(945,309) (1895.599) (950,290)
795,165 (100,850) (8961015)
(134,727) 1,241,404 1,376,131
5,384,609 5,384,609
1,978 1,978
$ 5,249,882 $ 6,627,991 $ 1,378,109
EXHIBIT A-3
DEBT SERVICE FUND
VARUWCE-
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 6,149,859 $ 6,228,820 $ 78,761
187,697 205,379 17,682
6,337,556 6,433,999 96,443
3,170,000
3,170,000
3,319,403
3,319,403
6,489,403
6,489,403
(151,847)
(55,404) 96,443
8,758,782 8,758,782
(8,688,700) (8,688,700)
70,082 70,082
(81,765) 14,678 96,443
833,788 833,788
$ 752,023 $ 848,466 $ 96,443
11
CRY OF ALLEN, TEXAS EXHIBIT AA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY -
AU- PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND
The Notes w Financial Statements
are an integral part of Mis statement.
12
PROPRIETARY
FIDUCIARY
TOTALS
FUND TYPES
FUNDTYPE
(MEMORANDUM ONLY)
INTERNAL
NONEXPENDABLE
ENTERPRISE
SERVICE
TRUST
2001
2000
OPERATING REVENUES:
f
8,188,025$
f
S
9,188,025 f
8.49%M
Water saes
2.984,522
2,984,822
2,884,419
Sewer chaW
Conner nfees
007,002
307.002
213.122
GaNage ooledens
2,438,824
878,2115
2,739,541
2,438.824
3.417,748
2,050,347
1,450.063
Service ohagee
610,744
610,744
518.30
Drainage tees
43Z423
428•690
Rerreatlon tees
Mis llaneous
•
217.180
381.755
200
598.135
312.476
Tool aperahn, revenues
18834.825
3.121.296
200
19,9513.321
18.127.744
OPERATING EXPENSES:
2.021.721
48,80
2,070,582
2.847,807
Pelsonalselvkes
Cenlraolual sarvhm
7,820,693
2,383,930
10,184.623
8,772,149
Maln�
778,871
]78.971
180,642
Suposs
91,179
91.179
73,371
Depreoiaeon and ane fiion
2.287,927
233.528
2.521,455
2.446.090
Other
120,293
944
121.217
87,621
Trial operating expenees
13.120.724
2.647.203
15.]88,007
12.207,580
OPERATING INCOME
3,714,101
474,013
200
4188.314
3.920.154
NONOPERATING REVENUES (EXPENSES):
Interest intone
1,100,170
141,467
1.941.637
1.194.231
Interest expanse on revenue ponds
(853.039)
(853.039)
(901,548)
Total non�ting revenues
247,131
141,457
388.588
292,889
INCOME BEFORE CAPITAL CONTRIBUTIONS,
DEVELOPMENT FEES, OPERATING TRANSFERS,
AND EXTRAORDINARY REM
3,981,232
615,480
200
4578,912
4,212,837
Caphal wrblEulians
4.157.888
4,157,888
Development tees
1.881.994
1,881,994
Opereting tanalere in fio n o. pmrlanl unh
40.000
Opera4rg ranaere fiom o Nrde
282,520
387,584
870.104
1,048.225
Opea6rg tanners to olhBr funds
(1.907.479)
(1907,479)
(1.630.983)
INCOME BEFORE EXTRAORDINARY REM
8,355.953
1.003.084
200
9,359,217
3,e85099
EXTRAORDINARY ITEM: Denawgnilbn of lability
1.902.288
1.962268
NET INCOME
10.318,219
1.003.054
200
11,321.483
3,8138.009
ADD DEPRECIATION ON CONTRIBUTED ASSETS
1.159,000
1.159.030
1.151L000
INCREASE IN RETAINED EARNINGS I FUND BALANCE
11,47,249
1,003,064
200
12,480,513
4,827,129
RETAINED EARNINGSIFUND BALANCE. BEGINNING OF YEAR
15,357,585
2,835,280
54.813
18.24T53B
13,202.362
Residual equity tana(xe
128,147
RETAINED EARNINGSIFUND BALANCE, END OF YEAR
26,834,814
3.838.324
0,013
30.728.151
18.247.638
CONTRIBUTED CAPITAL AT BEGINNING OF YEAR
47.177,788
47,177,758
40.017,1331
CapXaluuMd8u8ons
D,nadelion 9anee1ed Ilam retained --IN-
(1.159.0301
(1159.030)
8,319.185
(1,159,030)
CONTRIBUTED CAPITAL AT END OF YEAR
40.018,738
48018.738
47,177,766
FUND EQUITY AT END OF YEAR
$ 72.853.5% f
3.835.324
f 55.D13
f 76.748.857
f 85.425.404
The Notes w Financial Statements
are an integral part of Mis statement.
12
CRY OF ALLEN, TEXAS
COMBINED STATEMENTS
ALL PROPRIETARY FUND
CASH FLOWS FROM OPERATING ACTNITIES:
Opereting Incon e
Mjuatments to reWndle pperetirp insists, to
net cash provided by operating achdtlae:
Deprecation and amodtratlon
Increase In accounts receivable
Decraaae (I..sal ) in other receivable
Increase In Inventor..
Increase in prepaid ..seta
Increase (decrease) In accounts payable
Increase (decrease) in socroed liabilities
Increase (decrease) in accrued compensated absences
Increase in Wish, deposits
Increase (decrease) fatalna9e payable
Total Bdjustrnents
Net cash provided by opena8ng adivities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operefing hanstsrs from oder funds
Operating trs oaten to other funds
Net cash provided by (used in) non capital financing activities
EXHIBIT A-5
TRUSTFUND
PROPRIETARY FIDUCIARY TOTALS
FUNOTYPES FUND TYPE (MEMORANDUM ONLY)
INTERNAL NONE�Er1UPBlE
ENTERPRISE SERVICE TRUST 2001 2000
S 3,714,101 $ 474A13 S 200 8 4,188,314 E 3,920,154
2,287.921
233,528
2,521,466
2,"0.090
(421,122)
(283,689)
(710,21)
(22.511)
(5,533)
(300.000)
(305,533)
23,534
(49,261)
(995,000)
(",251)
Interest paM
(156,582)
(151,502)
(917.88)
21,793
(2208,530
241,193
(1,828,879)
(18,808)
130,180
111.352
313,986
12.04
(2,212560
12,404
(28,413)
112,599
112,599
68,178
(200.1811
CASH FLOWS FROM INVESTING ACTNITIES:
Purchase of invedment secuntiea
(205181)
49.432
1,199,246
(=.011)
1,579235
1,005.422
5.513,347
2".M2
200 5.787.569
4.925516
282,520 381.564 610.104 1,045225
(1,807,479) (1, Ant (1630,963)
(L82d959) 387,584 (1,237.375) (58t 7311)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTNITIES:
Contnbdions hen developer
1,881.884
1,881.984
1,888,921
Principal pall on revenue bond meturtles
(995,000)
(995,000)
(9,15,000)
Interest paM
(870,71)
(8707")
(917.88)
Acpuisition and canstmatlon of capital assets
(2208,530
(303,4585)
(2512,519)
(5,429,113)
Net cash uaed In capital and needed financing ac1h,i8"
(2,212560
(303.605)
(2,516,M)
(5289,8]8)
CASH FLOWS FROM INVESTING ACTNITIES:
Purchase of invedment secuntiea
(31.571.07)
(525.551)
(32,097,578)
(24,559,5")
proceeds hom the sale and Months$ of Investment secu hail
30,333228
183,057
355151283
28,647,415
Lntmesl on Investments
1,121.885
145,011
1206.898
1,166,673
Net cash provided by(used In) Investing adlyhke:
(117.0881
(107,5131
(314A99)
5,253,"7
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,555118
140,388
200 1,891
4,204,507
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
NONCASH CAPITAL FINANCING ACTNITIES:
Contnbution. of Pored assets Into, dWelopere
Dereoognitloo dconbectspayable
NONCASH NON -CAPITAL FINANCING ACTNITIES:
Residual equ8y transfer of accounts receivable
The Notes to Financial Statements
are an integral part of this statement.
10,88,536 858282 6,1,813 11,181.581 7.536,814
$ 12.427254 E Si S 55.013 $ 13.80,87 $ 11.741.501
E 4.167.888 S_$_$ 4.157,880 $ 8.4202"
E 1,962268 $_$_$ 1.982286 $
$-$-$-$- E 120.147
13
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2001
NOTE 1. 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 (AEDC) and the Allen Community Development Corporation (ACDC),
which have September 30 fiscal year ends. AEDC is responsible for aiding, promoting and
furthering emnomic development within the City. ACDC is responsible for supporting the
Improvements in community parks and recreation, streets and sidewalks, public safety and the
community library. The members of both AEDC's and ACDC's Boards of Directors are appointed
by the City Council. Both AEDC and ACDC are fiscally dependent upon the City as the City
Council approves their budgets and must approve any debt issuance. However, the component
units do not qualify for blending because the component unit services directly benefit the
community rather than the City itself. AEDC and ACDC are presented as governmental 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 amounting entity. The operations of each fund are accounted for with
a separate set of self -balancing amounts that comprise its assets, liabilities, fund balancetretained
earnings, revenues and expenditures/expenses. Account groups are a reporting device to account
for certain assets and liabilities of the governmental 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 30.2001
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,
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 recorded when the related fund liability is incurred, except for unmatured
interest on general long-term debt which is recognized when due, and certain compensated
absences and claims and judgments which are recognized when the obligations are expected to
be liquidated with expendable available financial resources.
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 accounts 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 2001
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 amount 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 fund types are used to account for assets held by the government in a trustee rapacity or
as an agent on behalf of others. Trust funds account for assets held by the City 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
amounting. 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 nonexpenciable 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 amounting. 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 2001
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 Citys amount groups:
General Fixed Assets Account Group — This amount group is established to amount for fixed
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 amount for all
long-term liabilities of the City, except those amounted 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 amounting 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 2001
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 2001, a budget amendment
totaling $265,273 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.
Inventories
Inventories, which are expended when consumed, are recorded using the average cost method, and
are valued at cost.
R4
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2001
NOTE t. 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, 2001, was not material, and therefore, was not
recorded in the accompanying general purpose financial statements.
IR]
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
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 mel.
Vacation and Sick Leave (Compensated Absences)
City employees earn vacation and sick leave, which may either be taken or accumulated, up to
certain amounts, unfil 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 an accumulated deficit of $628,024.
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
governments 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 rash flows in conformity with generally accepted accounting principles.
20
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2001
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 2001 levy was based was
$2,849,399,418.
Taxes are due on October 1 and are delinquent after the following January 31. Current tax
collections for the year ended September 30, 2001, were 99.88% of the current tax levy. Property
taxes receivable at September 31, 2001 were $407,559.
Property taxes levied for 2001 are recorded as receivables, net of estimated uncollectibles. Tax
receivables collected during the current period have been recognized as revenues in 2001. The
remaining receivables are reflected as deferred revenue ($302,963 at September 30, 2001). 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, 2001 was $0.5640 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, 2001, with collateral required by the State statutes. At year-end, the carrying amount
of the City's deposits was $2,096,877 and the bank balance was $902,469. Of the bank balance,
Federal Depository Insurance covered $200,000 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, 2001, was $5,252.
21
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 3. DEPOSITS, INVESTMENTS, AND INVESTMENT POLICIES —(continued)
The carrying amount of the deposit for Allen Community Development Corporation, a discretely
presented component unit, was $981,624, 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 counterparly'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, 2001, the City had
no Category 2 or 3 investments.
The City, AEDC and ACDC 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 ACDC, 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, 2001, the City's investment balances were as follows:
Category Carrying Fair
1 Amount Value
U.S. Treasury Bills $ 4,557,745 $ 4,557,745 $ 4,617,000
Other Government Agency Securities 36,745,906 36,745,906 37,474,340
Texpcol 33.777.914 33.777.914
PY1
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 3. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES - continued
At year-end, AEDC's investment balances were as follows
NOTE 4. FIXED ASSETS
A summary of changes in general fixed assets at September 30, 2001, follows
Category
Carrying
Fair
I
Amount
Value
Other Government Agency Securities
$ 699,416
$ 699,416
$ 710,451
Texpool
$ 699 416
508.158
$ 1.207.574
508.158
$ 1218 809
At year-end, ACDC's investment balances were as follows:
Category
Carrying
Fair
1
Amount
Value
Other Government Agency Securities
$ 799,789
$ 799,789
$ 817,205
Texpool
799.789
1.869.936
$ 2 fi99 725
1.869 936
$ 2 867 141
NOTE 4. FIXED ASSETS
A summary of changes in general fixed assets at September 30, 2001, follows
Total
At September 30, 2001, construction in progress consisted of utilities construction, street paving and
park improvement projects for which total contract commitments of $9,373,606 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.
W
Balance,
Balance,
October 1,
September 30,
2000
Additions Transfers
2001
Land
$ 15,060,560
$ 1,609,216 $
$ 16,669,776
Buildings and
Improvements
14,156,866
14,156,866
Improvements other
than buildings
55,447,398
3,854,516
59,301,914
Machinery and equipment
12,438,622
718,072
13,156,694
Construction in progress
2.613.254
20.002.715
22.615.969
Total
At September 30, 2001, construction in progress consisted of utilities construction, street paving and
park improvement projects for which total contract commitments of $9,373,606 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.
W
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 4. FIXED ASSETS - continued
A summary of proprietary fund type property, plant and equipment at September 30, 2001, is as follows
Activity in the general fixed asset group for the AEDC for the year ended September 30, 2001, follows
Balance,
Internal
Enterprise
Service
Land
$ 601,840
$
Utility plant in service
72,913,544
2,528.832
2000
Pump station
Machinery and equipment
2,287,409
176,919
Construction in progress
7,780,754
41.804
1,224,250
Vehicles
$ 3,175,300
Improvements other than
5,894,237
88,154183
1,401,169
Less accumulated depreciation
(19.459 674)
( 805.964)
Total fixed assets
R 66.694.
A 595215
Activity in the general fixed asset group for the AEDC for the year ended September 30, 2001, follows
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transactions, including current portion, for the year ended September 30,
2001, is as follows:
Balance,
Balance,
Proprietary
October 1
General Lona -Term Debt
September 30,
Fund Types
2000
Additions
Deletions
2001
Land
$ 2,969,300
$ 206,000
$
$ 3,175,300
Improvements other than
5,894,237
Bonds
( 5,694,237)
$ 1,204,492
buildings
Furniture and fixture
$ 133,064
74,028
$ 17,427,204
74,028
Machinery and equipment
74,028
54,275
( 47,1331
( 74,028)
( 982.748
Construction in progress
800.925
Lj§aL,gffl
2,141.67
c 9 4z=
A f 5 768 26.)
2942.598
A 6 191 926
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transactions, including current portion, for the year ended September 30,
2001, is as follows:
24
Proprietary
General Lona -Term Debt
Fund Types
Accrued
Compensated
General
Obligation
Lease
Contractual
Revenue
Absences
Bonds
Payable
Oblioations
Bonds
Amounts payable
at beginning of year
$ 1,204,492
$59,177,730
$ 133,064
$
$ 17,427,204
Additions
222,743
20,816,334
( 11 525.0001
54,275
( 47,1331
997,414
( 276,499
( 982.748
Reductions
Amounts payable
a 720 915
i 1fi 444 A5R
at end of year
A 1 d 7 94.
4 6R409.p
140.9n
24
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2001
NOTE 5. LONG-TERM DEBT - continued
AEDC
Notes Contractual
Payable Obllaabons
Amounts payable
ACDC
Sales Tax
Revenue Contractual
Bonds Obligations
at beginning of year $ 2,636,745 $ $ 9,965,000 $
Additions 498,706 498,706
Reductions f 1,064.55D) f 138.248) (340.000) ( 138.2481
Amounts payable
at end of year $ 7572195 $ 3�4 t6 9 fi25 nll $ :tan.a5s
Long-term debt at September 30, 2001 is composed of the following individual issues:
Geneml 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 3.0% 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%.
$20,715,000 Series 2001 Bonds due in annual installments
of $160,000 to $2,110,000 through September 1, 2021;
interest at 4.0% to 5.25%.
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a specific development.
Pk.
$ 45,000
7,879,064
855,000
6,055,000
9,255,000
12,620,000
10,985,000
20.715.000
$ 68.409.064
$ 720.915
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2001
NOTES. LONG-TERM DEBT—continued
Lease Payable
$ 140.20
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%.
$ 1,480,000
$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%.
3,315,000
$12,545,000 Series 1999 Bonds due in annual installments
of $330,000 to $950,000 through June 1, 2019;
interest at 3.55% to 5%.
11,870,000
Unamortized Bond Discount
( 220.544)
18 444.45
ACDC
Sales Tax Revenue Bonds:
$5,350,000 Series 1997 Bonds due In annual installments
of $125,000 to $435,000 through September 1, 2017;
interest at 4.63% to 6.63%.
$ 4,720,000
$5,125,000 Series 1999 Bonds due in annual installments
of $55,000 to $400,000 through September 1, 2017;
interest at 4.5% to 6%.
4.905.000
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a specific development.
$ 360.458
AEDC
Notes Payable:
$3,947,595 due in monthly principal and interest installments of
$47,064 through May 1, 2013; interest at 7.75% through 2002
at which time rate will be adjusted based on the note agreement.
$ 1� 572�19q
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a specific development.
$ 380.458
26
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2000
NOTES. LONG-TERM DEBT—continued
The annual requirements to amortize all debt outstanding (except for the contractual obligations) as of
September 30, 2001, are as follows:
General Sales Tax
Years Ending Obligation Lease Revenue Nates Revenue
September 30 Bonds Payable Batas Payable Bolls Total
2002 S 7,434,817 $ 53,149 $ 1,854,609 $ 564,765 $ 860,776 $10,768,116
2003 7,429,177 45,146 1,859,091 564,765 857,689 10,755,868
2004 7,400,340 32,381 1,857,806 564,765 848,339 10,703,631
2005 7,375,590 27,344 1,860,131 458,747 843,026 10,584,838
2006 7,362,360 3,092 1,851,234 841,451 10,058,137
Subsequent 65,267,573 14,179,514 10,229,453 89,676,540
Less applicable interest (33,860,793) ( 20,906) ( 6,797,385) ( 580,847) ( 4,855,734) (46,115,665)
Unannortized bond discount ( 220.546) ( 220.5441
Pnncipal due fifl d^.p n84 5 14(1 �O6 ttR �tSR 31 5791A5 S A a95 (1110 got tpn A91
The annual requirements to amortize the contractual obligations of the City, AEDC, and ACDC are not
determinable and are not included in the above table due to the variable means of payment (see Note 5d).
At September 30, 2001, the City had $28,820,000 in General Obligation 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 $848,466 available to service the general obligation debt at September 30,
2001. 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, 2001.
In May 2001, the City issued $20,715,000 in General Obligation Refunding and Improvement
Bonds to (I) undertake various general fund capital improvement projects for the City, (ii) to
advance refund a portion of the City's General Obligation and Improvement Bonds, Series 1992
and General Obligation Bonds, Series 1994, and (iii) to pay the costs of issuance for the bonds.
Proceeds of $8,758,782 (net of issue costs) were used to purchase U.S. government securities.
Those securities were deposited into an irrevocable trust with an escrow agent to provide for all
future debt service payments on the refunded bonds. As a result, $8,355,000 of refunded bonds is
considered to be defeased and the liability has been removed from the general long-term account
group.
The refunding resulted in a reduction of the City's total debt service payments by approximately
$138,144 and an economic gain (difference between the present values of the debt service
payments of the old and new debt) of approximately $254,537.
27
CRY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 5. LONG-TERM DEBT - continued
(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. At September 30, 2001, the amount of defeased
revenue bonds outstanding was $1,480,000.
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 $651,702 at September 30, 2001 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, 2001 of
$1,966,392 are adequate to meet the reserve requirements.
At September 30, 2001, restricted assets, which include Revenue Bond Debt Service and
Reserve Funds, were as follows:
Revenue bond debt service $ 651,702
Revenue bond reserve fund 1,314,690
Utility deposits 852,058
$ 281845
The amount of retained earnings reserved for revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds
$ 1,966,392
Less:
Accrued interest, payable from restricted assets
( 271,536)
Current maturities of revenue bonds,
Payable from restricted assets
f 1.040.000)
Reserved for revenue bond principal and interest
$ 6548
28
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2001
NOTE S. LONG-TERM DEBT - continued
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, 2001 was
4.4 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, 2001:
Years Ending
Capital
September 30,
Lease
2002
$ 53,149
2003
45,146
2004
32,381
2005
27,344
2006
3.092
Future minimum lease payments
161,112
Less amount representing interest
(20,906)
Present value of future minimum lease payments
(d) Contractual Obligations
During the year ended September 30, 2001 the City entered into an economic development
agreement whereby the developer agreed to advance the City funds for the City's share of the
construction of a road. The developer also agreed to design, construct, operate and manage a
retail shopping center. The amount advanced, less the developer's share of the construction of
road improvements will be repaid from 100% of the City's sales tax receipts imposed by the
City, AEDC and ACDC attributed to sales by retailers at the proposed development.
These amounts are reflected as contractual obligations in the City's, AEDC, and ACDC general
long-term debt account groups in the amount of $720,915, $360,458, and $360,456,
respectively, as of September 30, 2001. The City, AEDC and ACDC made principal and
interest payments of $324,367, $162,184, and $162,184, respectively, from sales tax collected
at the center during the year.
29
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 6. RETIREMENT PLAN
Plan Description
The City provides pension benefits for all of its full -lime employees (any exceptions such as firefighters
would be inserted here by the City) through a non-traditional, joint contributory, hybrid defined benefit
plan in the state-wide Texas Municipal Retirement System (TMRS), one of over 745 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 by writing to: Texas
Municipal Retirement System, P.O. Box 149153, Austin, Texas 78714-9153.
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 rale. 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 mortises the unfounded
(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 for budgetary purposes, 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, 2000
valuation is effective for rates beginning January 2002.
EZ
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2001
NOTE 6. RETIREMENT PLAN -continued
Increase In NPO
NPO at the end of the period
Annual City TMR pension cost and related information for the last three years is as follows
Schedule of Actuarial Liabilities and Funding Progress
2000
1999
Annual required contribution (ARC)
$ 1,315,729
$ 1,218,421
December
31
1,315,729
1,218,421
1,040,079
Net pension obligation
None
None
None
Actuarial Valuation Date
2000
1999
1998
1997
1996
1995_
Level of Percent
Actuarial value of assets (1)
$18,375,900
$ 14,193,181
$11,599,541
$ 9,549,733
$ 7,994,671
$ 6,443,075
Actuarial accrued liability (1)
22,396,483
17,723,052
15,743,031
12,476,918
10,101,805
8,158,063
Percentage funded
73%
80%
75%
77%
79%
79%
Unfunded (Over -funded) Actuarial
GASB stmt, No. 25,
GASB stmt, No. 25,
Accrued Uablllty (UAAL)
6,020,583
3,572,871
3,873,490
2,927,185
2,107,134
1,714,988
Annual covered payroll (2)
11,938,005
10,994,145
8,986,968
7,274,772
8,888,655
5,717,722
UAAL as a percentage of
covered payroll
50%
32%
43%
40%
31%
30%
Net Pension Obligation (NPO)
at the beginning of period
Annual pension cost (1):
Annual Required Contribution (ARC) 1,315,729
1,218,421
1,040,079
834500
708,429
523,722
Interest on NPO
Adlu ament b ARC
Contributions made (2)
1,315,729
1,218,421
1,040,079
834,500
706,429
523,722
Increase In NPO
NPO at the end of the period
Annual City TMR pension cost and related information for the last three years is as follows
paragraphs 36e and 138) paragraphs 36e and 138) paragraphs 36e and 138)
Actuarial Assumptions
Investment Rate of Return
2001
2000
1999
Annual required contribution (ARC)
$ 1,315,729
$ 1,218,421
$ 1,040,079
Actual contribution
1,315,729
1,218,421
1,040,079
Net pension obligation
None
None
None
Actuarial cost method
Unit Credit
Unit Credit
Unit Credit
Amortization method
Level Percent
Level of Percent
Level of Percent
of Payroll
of Payroll
of Payroll
Remaining amortization period
25 Years — Open Period
25 Years—Open Period
25 Years — Open Period
Asset valuation method
Amortized Cost
Amortized Cost
Amortized Cost
(to amuratey reflect
(to accurately reflect
(to accurately reflect
the requirements of
the requirements of
the requirements of
GASB stmt, No. 25,
GASB stmt, No. 25,
GASB stmt, No. 25,
paragraphs 36e and 138) paragraphs 36e and 138) paragraphs 36e and 138)
Actuarial Assumptions
Investment Rate of Return
8%
8%
8%
Projected Salary Increases
Now
None
None
Includes Inflation At
None
None
None
Cost of Living Adjustments
None
None
None
31
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 7. INTERFUND RECEIVABLES AND PAYABLES
Interfund balances at September 30, 2001 consisted of the following individual fund receivables and
payables:
Receivable Payable
General Fund:
Non -Bond Capital Projects Fund $ $ 600,000
Self -Insurance Fund 300,000
Non -Bond Capital Projects Fund:
General Fund 600,000
Self -Insurance Fund:
General Fund 300.000
NOTE 8. 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, 2001, the
deferred compensation investments are no longer reported in the City's financial statements.
NOTE 9. 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 2001, the cost of water purchased under this contract was $2,470,539.
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 2001, the cost for transportation, treatment and disposal of sewage and other
wastes was $2,057,331.
32
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2001
NOTE 10. DERECOGNITION OF LIABILITY
The City entered into an agreement to repay a private Corporation for the cost of construction of utilities
required to service a factory outlet mall. Construction of the utilities was completed in 1984 at a total cost
of approximately $1,297,000. The obligation bore an interest rete of 12.5% 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 obligation was payable solely from (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 were 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. The City obtained a legal opinion that the
City was legally released from the aforementioned liability and the unpaid balance plus accrued interest
have been derecognized and reflected as an extraordinary item in the Water and Sewer Fund.
NOTE 11. SEGMENT DISCLOSURE
The City maintains six Enterprise Funds. The Water and Sewer Fund amounts for water and wastewater
treatment service to the City. The Solid Waste Fund amounts for the collection and disposal of refuse.
The Development Fees Fund accounts for completion of development in new subdivisions. The Drainage
Fund amounts 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, 2001 for these funds is listed as follows:
Solid
Water
and Sewer
Aquatics
Fund
Operating revenues
$13,007,038
Operating expenses
Recreation
(excluding depredation)
7,679,566
Depredation and
Fund
amortization
2,187,022
Operating income (loss)
3,160,448
Operating transfers in
65,520
Operating transfers out
( 1,574,035)
Net Income (loss)
3,571,100
Cument assets
18,412,301
Cunent liabilities
3,195,168
Net working capital
15,217,133
Total assets
80,641,582
Current capital -
10,283
contributions
4,157,686
Net property, plant
( 62,064)
am equipment
62,178,881
Property, plant and
3,714,101
equipment additions
1,029,737
Bonds and other
long-termliabillties-
285,520
payaole from
operating revenues
16,444,456
Total equity
62,041,958
Solid
Development
Parks and
Aquatics
Waste
Fees
Drainage
Recreation
Enterprise
Fund
Fund
Fund
Fund
Fund
Total
$2,438,624
S
$ 864,272
$ 466,669
$ 58,224
$16,834,825
2,113,654
411,623
453,585
174,389
10,832,797
62,064
48,558
10,283
2,287,927
324,970
( 62,064)
404,091
2,801
( 116,145)
3,714,101
220,000
285,520
36,601) (
(
171,5
(
( )
319,245
130,676
318,725)
( 155,745)
114,538)
6,298,539
1,017,451
4,448,819
795.557
108,303
370,441
25,152,872
209,348
102,661
106,484
19,984
4,230
3,639.875
808,103
4,346,158
687,073
88.319
366,211
21,512,997
1,017,451
8,318,403
1,418,294
131,710
370,441
91,897,881
1.661.994
6.019.680
3,889,584
622.737
23,407
66,694.609
759,321
419.776
2,208,834
16,444,456
808,103
8,215,742
1,309,810
111,726
366,211
72,853,550
33
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 12. SELF-INSURANCE AND RISK MANAGEMENT
The City has established a self-insurance plan for City 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, 2001, 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 expenditures/expenses
of the participating funds.
Changes in the medical and dental claims liability during fiscal years ended September 30, 2001 and
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 claims over the self-insured retention are covered by TMLIF.
During 2001, the City contributed $479,539 to the fund for property, general liability, and workers
compensation.
34
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
2001
272,791
2,414,770
2,377,796
307,765
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 claims over the self-insured retention are covered by TMLIF.
During 2001, the City contributed $479,539 to the fund for property, general liability, and workers
compensation.
34
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30: 2001
NOTE 13. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS
Individual fund operating transfers for fiscal year 2001 were as follows:
Primary Component
Government Unit
Transfer Transfer Transfer Transfer
From To From To
Transfer Transfer Component Component Primary Primary
Fund In Out Unit Unit Gov'tGov't
General Fund:
Water and Sewer Fund
$1,549,632
$ 50,290 $ $ $ $
Solid Waste Fund
17,478
6,893
Drainage Fund
113,364
General Fund
Aquatic Enterprise Fund
Self -Insurance
50,000
Non -Bond Capital Projects
1,452,500
Economic Development Corp.
Community Development Fund
(Component unit)
24,000
Community Development Fund
Aquatics Enterprise Fund:
(Component unit)
50,000
36,000
Self -Insurance Fund
Self -Insurance
342,809
Water and Sewer Fund:
Non -Bond Capital Projects
General Fund
50,290
1,549,632
Solid Waste Fund
12,230
Non -Bond Capital Projects
1998 City Hall Bonds
Park Bonds
21,779
Self -Insurance
24,403
Solid Waste Services
General Fund
17,478
Water and Sewer Fund
12,230
Self -Insurance
6,893
Drainage Fund:
General Fund
113,364
Self -Insurance
10,114
Parks and Recreation Enterprise:
Aquatics
170,000
Community Development Fund
(Component unit)
Self -Insurance
1,365
Aquatics Enterprise Fund:
General Fund
50,000
Park and Recreation Enterprise
170,000
Self -Insurance
2,000
Library Bonds:
Non -Bond Capital Projects
6,178
Park Bonds
4,357
Police Bonds:
Non -Bond Capital Projects
6,178
Park Bonds
21,779
Fire Bonds:
Non -Bond Capital Projects
6,178
Park Bonds
21,779
35
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 13. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS -continued
Primary Component
Government Unit
Transfer Transfer Transfer Transfer
From To From To
Transfer Transfer Component Component Primary Primary
Fund _ In _911L Unit Unit $,oyl _
Park Bonds:
Library Bonds
Police Bonds
Fire Bonds
Community Development Fund
(Component unit)
Park Bonds
Non -Bond Capital Projects
Non -Bond Capital Projects:
General Fund
Library Bonds
Police Bonds
Fire Bonds
Park Bonds
Economic Development Corp.
General Fund
Community Development Fund
General Fund
Park Bonds
Self -Insurance Fund:
General Fund
Water and Sewer
Solid Waste
Drainage
Park and Recreation Enterprise
Aquatics
4,357
21,779
21,779
16,116
6,178
1,452,500
6,178
6,178
6,178
6,178
24,000
36,000
16,116
342,809
24,403
6,893
10,114
1,365
2.000
3 675 $3 5 $ lu S__ rhea 417 M
Individual fund residual equity transfers for fiscal year ending September 30, 2001, were as follows:
36
Transfers Transfers
Fund
In out
General Fund:
Cable TV Fund
$ 1,978 $
Cable TV Fund:
General Fund
1.978
Non -Bond Capital Projects:
Capital Projects Pro Rata
1,033,099
City Hall Landscape
664,158
Rose/Shelton Estate Fund
29,692
Police and Courts Building
83,663
36
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30. 2001
NOTE 13. INTERFUND OPERATING AND RESIDUAL EQUITY TRANSFERS —continued
Capital Projects Pro Rata:
Non -Bond Capital Projects
City Hall Landscape:
Non -Bond Capital Projects
Rose Shelton Estate Fund
Nan -Bond Capital Projects
Police and Courts Building
Non -Bond Capital Projects
Public Safety
Public Safety:
Police and Courts Building
Fire
Fire:
Public Safety
Transfers
Transfers
In
Out
1,033,099
664,158
29,892
83,663
87,105
87,105
33,441
33,441
$>113336
$1933 338
NOTE 14. COMMITMENTS AND CONTINGENT LIABILITIES
Federal Grants
The City participates in a number of State and Federally assisted grant programs. Amounts received or
receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the
federal government. Any disallowed claims, including amounts already collected, may constitute a liability
of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor
cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
Litigation
The City Is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material
adverse effect on the financial condition of the City.
Economic Development Grant
The City has entered into an economic development agreement whereby it has agreed to pay a grant to a
developer in return for the developer designing, constructing, operating, and managing a retail shopping
center. The grant is calculated at $22 per gross leasable square feet up to a maximum of 458,000 square
feet. The grant is payable solely from sales tax receipts imposed by the City, AEDC, and ACDC,
attributed only to sales by retailers at the proposed development for a period not to exceed 15 years from
the date of certificate of occupancy. If the developer has not completed a minimum of 418,000 square
feet within six years after the commencement of construction, then the City is no longer obligated to make
any future grant payments. The developer had completed construction of 356,779 square feel of the
retail shopping center as of September 30, 2001.
37
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2001
NOTE 15. CONTRIBUTED CAPITAL
During 2001, the City adopted Government Accounting Standards Board Statement No. 33 and, accordingly,
recorded capital contributions and development fees to enterprise funds as revenue. Total capital
contributions and development fees in 2001 were $6,019,680 and $1,861,994, respectively. Capital
contributions prior to October 1, 2000 were reduced by depreciation of assets contributed in prior years.
Changes in contributed capital in the Enterprise Fund during 2001 are as follows:
Balance at beginning of year $ 47,177.766
Depreciation on assets contributed prior to October 1, 2000 ( 1.159.030)
Balance at end of year
14D]
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP FINANCIAL STATEMENTS
AND SCHEDULES
M
CITY OF ALLEN
40
GENERALFUND
The General Fund is used to account for resources associated with traditional governmental functions that
are not required legally or by sound financial management to be accounted for in another fund.
41
CITY OF ALLEN, TEXAS
GENERALFUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
Cash and temporary Investments
Investments
Receivables:
Ad valorem taxes (net, where applicable, of allowances
for estimated uncollectible amounts of $61,988)
Sales taxes
Accrued interest
Other
Prepaid expenses
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Deferred revenue
TOTAL LIABILITIES:
FUND BALANCES:
Reserved for encumbrances
Unreserved:
Designated for court building security
Designated for municipal court technology
Designated for police services
Designated for fire services
Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCE
42
EXHIBIT B-1
2001 2000
5,883,537 $
1,497,966
2,183,042
4,462,200
186,653
123,544
1,004,503
876,726
7,129
77,234
418,580
252,894
8,208
2,860
9,691,652
7,293,424
787,854
764,600
1,189,154
1,003,018
900,000
186,653
151,197
3,063,661
1,906,815
70,616
22,227
59,582
14,214
2,898
6,458,454 5,38409
6,627,991 5,384,609
$ 9,691,652 $ 7,293,424
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, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
EXPENDITURES
2001
2000
Current:
VARIANCE -
General government
4,876,482
4,051,058
FAVORABLE
3,714,436
Public safety
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES:
2,072,733
2,195,779
(123,046)
1.884,813
Ad valorem taxes, penalties and interest
$ 10,022,135 $
10,064,855
$ 42,620 $
8,301,578
Franchise taxes
2,779,086
2,839,104
60,018
2,139,442
Municipal sales tax
5,576,764
6,092,692
515,928
4,572,178
License, permits and fees
1,992,942
1,898,867
(96,075)
1,733,140
Charge for services
992,347
1,288,629
296,282
992,672
Fines
902,650
1,007,666
105,018
738,005
Intergovernmental
231,497
538,761
307,264
526,221
Interest eamed
404,330
439,240
34,910
454,155
Miscellaneous
330,026
439,403
109,377
342,274
Total revenues
23,231,777
24,607,017
1,375240
19,799,6115
EXPENDITURES
Current:
General government
4,876,482
4,051,058
825,424
3,714,436
Public safety
10,986,318
10,896,606
89,712
9,063,625
Public works
2,072,733
2,195,779
(123,046)
1.884,813
Culture and recreation
4,663,737
4,554,158
109,579
3,390,150
Community development
1,259,192
1,242,795
16,397
1,230,318
Debt service:
Principal retirement
263,707
276,497
(12,790)
Interest and fiscal charges
39,500
47,870
(8,370)
Total current expenditures
24,161,689
23264,763
896.906
19,283,342
Excers(deficiency) of revenues over expenditure;
(929,892)
1,342,254
2272,146
516,323
OTHER FINANCING SOURCES AND (USES):
Proceeds from capital lease obligation
54,275
54275
Operating transfers from other funds
1,680,474
1,680,474
1,496,670
Operating transfer in from component unit
60,000
60,000
121,865
Operating transfers to other funds
(945,309)
(1,895,599)
(950,290)
(1,199,950)
Total other financing sources (uses)
795,165
(100,850)
(896,15)
416,579
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
(134,727)
1241,404
1,376,131
934,902
FUND BALANCE, BEGINNING OF YEAR
5,384,609
5,384,609
4,577,854
Residual equity therefore
1,978
1,978
(128,1471
FUND BALANCE, END OF YEAR
$ 5,249,882
$ 8.627.991
$ 1,378,109
$ 5.384.609
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 speck 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 stale 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.
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
the City of 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 30,2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
HOTEL
CAPITAL OCCUPANCY CABLE ASSET
ASSETS: IMPROVEMENT TAX TELEVISION FORFEITURE
Cash and cash equivalents $ 425,325 $ 62,131 $ $ 20,592
Investments
Accounts receivable
Accrued Interest receivable
Prepaid Items
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Retainage payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES:
Reserved for encumbrances
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCES
5,513
837
$ 425,325 $ 87,644 E $ 21,429
$ 3,552 $ 5,059 $
3,552 5,059
$ 6,840
6,840
353
421,420 62,595 14,589
$ 425,325 $ 67,644 $ $ 21,429
"d
EXHIBIT C-1
ROSE/ ALLEN
TOTALS
SHELTON ARTS
FACILITIES
ESTATE ALLIANCE
AGREEMENT
2001
2000
$ $ 9,177 $
1,765,520 $
2,282,745 $
2,266,674
3,741,987
3,741,987
2,675,303
5,513
23,900
23,900
48,112
837
$ $ 9,177 $
5,531,407 $
6,054,982 $
4,990,089
$ $ $ 940 $ 16,391 $ 6,551
42,602
3,630,655 3,630,655 2,885,685
3,631,595 3,647,046 2,934,838
75,602 75,955
9,177 1,824,210 2,331,981 2,055,251
$ $ 9,177 $ 5,531,407 $ 6,054,982 $ 4,990,089
47
CITY OF ALLEN, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
HOTEL
CAPITAL OCCUPANCY CABLE ASSET
IMPROVEMENT TAX TELEVISION FORFEITURE
REVENUES:
Hotel t motel taxes $ $ 67,669 $ $
Gilts and contributions 738
Interest 16,473 2,751
Miscellaneous
Total revenues
EXPENDITURES:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES):
Operating transfers to component ung
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 transfers out
FUND BALANCES, END OF YEAR
189,791 12,657
206,264 70,420 13,395
83,583 61,177 14,238
83,583 61,177 14,238
122,681 9,243 (843)
122,681 9,243 (843)
299,092 53,342 1,978 15,432
(1,978)
$ 421,773 $ 62,585 $ $ 14,589
48
EXHIBIT C-2
ROSE/ ALLEN TOTALS
SHELTON ARTS FACILITIES
ESTATE ALLIANCE AGREEMENT 2001 2000
$ $ $ $ 67,669 $ 55,207
2,250 2,250 1,158,765
441 253,033 273,436 295,220
202,448 227,524
441 255,283 545,803 1,736,716
(14,743)
(350,876)
(365,619)
441 253,033 384,555 139,620
29,892 8,736 1,646,779 2,055,251 2,075,248
(29,892)
158,998
78,382
2,250
2,250
1,153,095
$ $
2,250
161,248
1,231,477
$ 2,407,936 $
2,055,251
441 253,033
384,555
505,239
(14,743)
(350,876)
(365,619)
441 253,033 384,555 139,620
29,892 8,736 1,646,779 2,055,251 2,075,248
(29,892)
(31,870)
(159,617)
$ $
9,177
$ 1,899,812
$ 2,407,936 $
2,055,251
49
CITY OF ALLEN
50
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for and the payment of general
obligation bonds and interest from governmental resources.
51
CRY OF ALLEN, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS:
Cash and cash equivalents
Investments
Receivables:
Ad valorem taxes (net, where applicable, of allowances
for estimated uncollectible amounts of $42,609)
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
a,
EXHIBIT D-1
2001 2000
$
452,854
$
124,091
390,618
693,000
116,310
81,392
4,466
11,344
528
5,353
$
9646776
$
915,180
$
116,310
$
81,392
848,466
$33,788
$
964,776
$
91.5j. 80
CITY OF ALLEN, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30.2001 AND 2000
REVENUES:
Ad valorem tax
Interest
Miscellaneous
Total revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES AND (USES):
Proceeds of refunding bonds
Payment to refund bond escrow agent
Total other financing sources
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
53
2001
$ 6,228,620
205,379
6,433,999
3,170,000
3,319,403
6,489,403
(55,404)
8,758,782
(8,688,700)
70,082
EXHIBIT D-2
2000
5,187,115
250,833
3,625
5,441,573
2,830,000
2,715,171
5,545,171
(103,598)
14,678 (103,598)
833,788 937,386
$ 848,466 $ 833,788
CITY OF ALLEN, TEXAS
3,170,000
2,830,000
EXHIBIT D-3
DEBT SERVICE FUND
2,715,171
6,489,403
STATEMENT OF REVENUES, EXPENDITURES AND
5,545,171
$ 752023 $
CHANGES IN FUND BALANCE - BUDGET(GAAP-BASIS) AND ACTUAL
96,443 $
833,788
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
Favorable
BUDGET
ACTUAL
(Unfavorable)
2000
REVENUES:
Ad valorem tax $ 6,149,859
6,228,620
$ 78,761
5,187,115
Interest 187,697
205,379
17,682
250,833
Miscellaneous
3,625
Total revenues 6,337,556
8,433,989
96,443
5,441,573
EXPENDITURES:
Principal re0rement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES AND (USES):
Proceeds of refunding bonds
Payment to refund bond escrow agent
Total other financing sources
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
3,170,000
3,170,000
2,830,000
3,319,403
3,319,403
2,715,171
6,489,403
6,489,403
5,545,171
(151,847) (55,404) 96,443 (103,598)
8,758,782 8,758,782
(8,688,700) (8,688,700)
70,082 70,082
(81,765)
14,678
96,443
833,788
833,788
937,386
$ 752023 $
848,466 $
96,443 $
833,788
CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for all resources used for the acquisition and/or construction of major
capital facilities by the City, except those financed by proprietary funds 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
CT' OF ALLEN, TOM
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2D01
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000
CAPITAL
SPECIAL
FIRE
STREET
PROJECTS
PRO RATA
ASSESSMENTS
STATION
IMPROVEMENTS
ASSETS
S 2.132,925
$
$ 910,505 $
9D9,919
$
Cash and cash equivalents
4,679,330
690.60
1,900,000
4,424,981
Investments
3SADD
9,181
8,332
43.542
Accrue, interest receivable
228• 800
Spacial assessments receivable
Due from other funds
600.000
$ 7,451,055_
E
$ 1.838.546 E
2.818251_
$ 6.644.790
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:9180
$ 1,780,348
$
$ , $
342,4]1
$ 56.822
Accounts payable
514,501
22.241
114,254
10,237
Retainage payable
Due b otber funds
226 BW
Deferretl revenue
2274.849
258221
456,72$
66.859
TOTAL LIABILITIES
FUND BALANCES:
56,316
1,427,593
788,936
Reserved for encumbrances
1.447.80
Unre.arved:
Designated for capital projects
3.728,311
1522.009
933.833
5788.995
Undesignated
5178.206
1,578,325
2.361.526
65]7.931
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$ 7.451 ,055
$
$1.836.546 E
2,818,251
$ 6.644.790
56
EXHIBIT E-1
$ 4,275.105 $
$
POLICE AND
TOTALS
PARK
PUBLIC
COURT
DRAINAGE
IMPROVEMENTS
SAFETY
CITYHALL LIBRARY BUILDING
IMPROVEMENTS 2001 2000
$ 4,275.105 $
$
$
874,822 $
921,793
381,522 $
12,582,858 $
16.081,476
6,941,159
3,728,311
1,300,000
1,850,000
1540.019
21,785,530
15,737,598
56,9%
12,029,629
10,544
19,194
188,589
198,549
2350.355
381.M
30,869,383
27,193448
226,800
253,056
$ 11273280 $ $
$ 2,185.366 $
2.790.987 $
381,522 $
35,381= $
32,322.584
600,000
51,905
$ 11273260 S
S
$
2.185,366 $
2.790.987 $
381,522 S
35,381.777 $
32,322.584
$ 745,829 $
S
$
6,760 $
345,344 $
$
3268.354 $
688,883
288,719
91,288
1,019240
129,092
51,905
228,600
4279b56
1,012,348
8.760
436.632
4,512,394
5,129,436
629,246
638,587
2.070,648
7,059,222
13,791,960
3,728,311
1,371,559
9,631.888
1540.019
283,706
381,522
20081.850
12,029,629
10280.912
2.178,606
2350.355
381.M
30,869,383
27,193448
$ 11273280 $ $
$ 2,185.366 $
2.790.987 $
381,522 $
35,381= $
32,322.584
57
CRY OF ALLEN, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2(101
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
OTHER FINANCING SOURCES (USES)
Operating transfers from componem unit
Operating transfers to component unit
Operating transfers Born ottrer funds
Operating transfersto ctMr funds
Proceeds fronn contractual obligations
Proceeds from sale of bonds
Total otherfnancing sources (uses)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses
FUND BALANCES, BEGINNING OF YEAR
Residual equity transfers M
Residual equitytrensfers out
Prlar pmdcd adjustment
FUND BALANCES, END OF YEAR
1,477,213
1,994.828
3,472.039
3010.597 (481,643)
422,123 1,033,099 2,060,168
1,727,149
(83,883) (1.033.099)
(27,957)
1.220,586 2,388,609
1.192.629 2,388,609
(1,130,728) 2,131,871
3,458,813 4,446,060
33,441
$ 5,176,206 $ $ 1.578,325 $ 2,361,526 $ 6,577,931
58
CAPITAL
SPECIAL
FIRE
STREET
PROJECTS
PRO RATA ASSESSMENTS
STATION
IMPROVEMENTS
REVENUE
Special assessments
$ $
3 7,313 $
$
InteMovemmental
10,453,000
Interest
335,242
101,972
182,276
274,750
Dsvelopers'fees
Miscellaneous
30,641
Total revenues
10,818,883
109285
182,276
274.750
EXPENDITURES:
Capital outlay
11,160.325
581,128
2,490,047
500.957
Other
15.586
30,501
Total expenditures
11,180,325
591.128
2.505.633
531,488
Excess (deficiency) of revenues over
expeMiNres
1361.442)
(481.843)
(2,323,3571
(256,738)
OTHER FINANCING SOURCES (USES)
Operating transfers from componem unit
Operating transfers to component unit
Operating transfers Born ottrer funds
Operating transfersto ctMr funds
Proceeds fronn contractual obligations
Proceeds from sale of bonds
Total otherfnancing sources (uses)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses
FUND BALANCES, BEGINNING OF YEAR
Residual equity transfers M
Residual equitytrensfers out
Prlar pmdcd adjustment
FUND BALANCES, END OF YEAR
1,477,213
1,994.828
3,472.039
3010.597 (481,643)
422,123 1,033,099 2,060,168
1,727,149
(83,883) (1.033.099)
(27,957)
1.220,586 2,388,609
1.192.629 2,388,609
(1,130,728) 2,131,871
3,458,813 4,446,060
33,441
$ 5,176,206 $ $ 1.578,325 $ 2,361,526 $ 6,577,931
58
EXHIBIT E-2
(892,682) 2,098,606 (1,333,492) 144,014 3.646,343 2,404,761
11,153,591 120,546 664,158 80,000 3,517,079 237,508 27,193,148 23,839,745
170,768 1.931,358 159,617
(120.546) (664,158) (1,901.466)
789,025
$ 10280.912 S $ $ 2,178.606 $ 2.354,355 $ 381,522 $ 30,869,393 $ 27,193.148
59
POLICE AND
TOTALS
PARK
PUBLIC
COURT
DRAINAGE
IMPROVEMENTS
SAFETY CITY HALL LIBRARY
BUILDING
IMPROVEMENTS
2001
2000
$ $
$ $
$
$ $
7,313 $
18,788
10.453,000
580,627
42,081
190,570
9,080
1,696,598
1,611,451
438246
30,641
32,184
560,627
42,081
190,5/0
9,460
12,187,552
2,100.689
6,902,039
532,941
1,498,105
201,958
23,895,530
11,175,612
180281
33,628
4,356
264.334
108,409
7,082.300
566.569
1,496,105
206,316
24,159,864
11284,021
(6,521,873)
(524,488)
(1,305,535)
(197236)
(11,972,3121 19,183,3521
16.116
16,116
(150,787)
47,914
1,525,127
1,054,389
(6,178)
(10,535)
(27,957)
(72,627)
(415,489)
1,994.826
5,571,139
2,633,629
341,250
12,155213
11,100.000
5,628,991
2.623.594
127,957)
W,250
15,618,655
11,588,113
(892,682) 2,098,606 (1,333,492) 144,014 3.646,343 2,404,761
11,153,591 120,546 664,158 80,000 3,517,079 237,508 27,193,148 23,839,745
170,768 1.931,358 159,617
(120.546) (664,158) (1,901.466)
789,025
$ 10280.912 S $ $ 2,178.606 $ 2.354,355 $ 381,522 $ 30,869,393 $ 27,193.148
59
CITY OF ALLEN
M
ENTERPRISE FUNDS
The Enterprise Funds are used to account for operations that 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; or where the City's
council has decided that periodic determination of net income is appropriate for accountability purposes.
Water and Sewer Fund — To account for the provision of water and sewer services to the residents of the
city.
Solid Waste Fund — To account for the provision of solid waste services to the residents of the City of Allen.
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.
61
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
(WITH COMPARATNE TOTALS FOR SEPTEMBER 30 2000)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Invesonents
Receivables, net of allowance for
uneDllecbble accounts:
Accounts
Accrued interest
Diner
Inventories
Prepaid items
Restricted cash and cash equivalents
Total anent assets
FIXED ASSETS, not accumulated depreciation
OTHER ASSETS, at coal
TOTAL ASSETS. at cost
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Accrued compensated absences
Retainage payable
Payable from restricted assets:
Revenue bonds payable
Accrued interest payable
Utility deposits
Total anent liabilities
Accrued Interest payable
Contact payable
Revenue bonds payable
Total liablli8es
FUND EQUITY
Contributed capital
Retained earnings (defid9:
Reserved for revenue bond principal and Intereet
Reserved for field enhancement
Unreserved
Total retained earnings (deficit)
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
62
WATER AND
SOLID
DEVELOPMENT
SEWER
WASTE
FEES
75,051
808,103
1,233,970
$ 5,751,615 $
788,880
$ 1,830,371
7,603,388
100,000
2,598.558
1,941,908
120,864
8.318.403
93,107
2,054
18,892
852.058
5,653
49,251
209,348
102,661
154,582
2.818.450
18,412,301
1,017,451
4,448,819
62,178,881
3,859,584
50,400
§ 80,641.582 $
1,017.451
E 8,318,403
$ 914,769 S
200,391 $
81,287
34,310
8,957
75,051
808,103
1,233,970
7,444
808,103
21,374
1,031,574
209,348
102,661
1,040,000
1,017457 E
8.318.403
271,538
852.058
3,195,168
209,348
102,661
15.404,458
18.599.624 209.348 102.661
39,036.964
6.981.772
854,856
22.350,138
808,103
1,233,970
23.004,994
808,103
1.233,970
62.041,958
808.103
8.215.742
E 80,841,582 $
1,017457 E
8.318.403
EXHIBIT F-1
S 74,467 E
16,457 $
2,096 $
TOTALS
1,047,674
3.958
PARKS AND
AQUATICS
52,886
69,560
DRAINAGE
RECREATION
ENTERPRISE
2001
2000
25,345
$ 759,589 $
107,908
$ 370,441 $
9,608,804 $
8,287,597
1,476,281
1,441,073
10,302,944
9,064,173
35,968
995,000
2,098,740
1,671,618
271,536
395
114,448
135,963
852,058
739,459
108,484
5,653
120
3,639,875
3,464,773
49,251
836,132
154,582
1,126,134
2,818,450
2.580.939
15,404.456
795,557
108,303
370,441
25,152,872
21,740,410
622,737
23,407
86694.609
62,600,964
47,177,766
50,400
53.200
$ 1,418,294 $
131,710
$ 370 441 $
91,897.881 $
84,394.574
S 74,467 E
16,457 $
2,096 $
1,289,467 $
1,047,674
3.958
3,527
2,134
52,886
69,560
4,714
79,765
67,361
25,345
54,163
256.478
106.484
19,984
4,230
1,476,281
1,441,073
1,040,000
995,000
271,536
289,241
852,058
739,459
108,484
19,984
4,230
3,639,875
3,464,773
836,132
1,126,134
15,404.456
16.432,204
108,484
19,984
4.230
19.044,331
21,859,243
46,018,736
47,177,766
654,856
557,239
33,043
33,043
33,043
1,309,810
78.683
366,211
28.146,915
14.767.283
1,309,810
111.726
366,211
26,834,814
15.357,565
1,309.810
111,726
366,211
72,853,550
62,535,331
$ 1.418.294 S_
131.710 $_
370,441 $
91,89],887 S
84.394.574
63
CRY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES. EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30. 2001
OPERATING REVENUES:
Water sales
Sewer charges
Connection fees
Garbage collections
Service charges
Drainage fees
Recreation fees
Mismllaneous
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual services
Maintenance
Supplies
Depredation and amor bon
Other
Total operating expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Interest income
Interestexpense
Total nw-operating revenue(expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS,
DEVELOPMENT FEES. OPERATING TRANSFERS,
AND EXTRAORDINARY REM
Capital contributions
Development fees
Operating transfers in
Operating transfers in from cornpment unit
Opereting transfere out
INCOME BEFORE EXTRAORDINARY ITEM
EXTRAORDINARY ITEM:
DenmgnMm of liability
NET INCOME (LOSS)
Add depredation on contributed assets
Inmase (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
Contributed capital at end of year
FUND EQUITY AT END OF YEAR
WATER AND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 9,186,026 S $
2.964,622
307,002
2,438,624
366.453
m-
182.934
13.007.036 2.438.624
1,456,762
39,774
130.676
5,465,201
2,059,053
643,565
1,861,994
65,713
2,167,022
(38.601)
62,064
48.325
14.817
319.245
9.846.688
2113.654
62.064
3.160.448
324.970
(62 0641
812,940
30,876
192,740
(853.0391
8,887,816
319,245
1.992,670
(40,099)
30,876
192.740
3.120.349
355,846
130.676
4,157,886
1,861,994
62.520
(1.674,035)
(38.601)
5,766,520
319.245
1,992.670
1.962,266
7,728,786
319,245
1,992,670
1,159.030
8,887,816
319,245
1.992,670
14.117.178
488.958
(758,700)
23.004.994
608.103
1.233.970
40,195,984
6,981,772
(1.159.030)
39.036.964
6,981,772
$ 82.041,958
S 808.103
$ 8.215,742
EKNIBI7 F-2
65
PARKS AND
AQUATICS
DRAINAGE
RECREATION
ENTERPRISE
2001
2000
$
S
$
$ 9,186,025
$ 8.490,270
2,964,622
2,664,419
307,002
213,122
2,438,624
2,050,347
253,528
58,224
678,205
286,450
610,744
610,744
518,347
432,423
432,423
428,690
34.246
217.180
295.338
864.272
468.669
58.224
16.834.825
14.956.983
181,674
201,439
142,072
2,021,721
1,518,969
57,160
235,862
3AU
7,820,693
6.686,830
124,185
11,221
778,971
180,642
7,797
17,888
91,179
73,371
48,558
10,283
2,287,927
2,263,176
40.807
16.284
120.233
87.521
460.181
463.868
174.389
13.120.724
10.810.509
404.091
2.801
(116.1451
3.714.101
4,148.474
38,112
12,819
12,683
1,100,170
1,082,130
(89.00
(901.548)
38.112
12.819
12.69
247,131
180.582
442,203
15,620
(103,462)
3,961,232
4,327,09
4.157,686
1,91,984
220,000
282,520
275,423
40,000
(123.4781
(171.365)
(2.000)
11.907.479)
(1.630.99)
318,725
(19,745)
114,98
8.39,99
3,011,516
1.962.288
318,725
(19,745)
114,638
10,318,219
3,011,516
1.19.030
1.159.030
318,725
(155,745)
114,59
11,477,249
4,170,646
991.085
267.471
251.873
15.357.5&5
11.187.019
1.309.810
111.726
366,211
28.94.814
15.357,95
47,177,79
40.017,631
8,319,165
(1.159,030)
(1.159.030)
46.018.736
47.177.766
$ 1.309.810
$ 111.728
$ 368.211
$ 72.853.550
$ 62.535.331
65
CITY OF ALLEN, TERAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operafing income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
Change in assets and liabilities:
Increase in acoounts receivable
Decrease (increase) in otherreceivables
Increase in inventories
Increase in prepaid items
Increase (decrease) In a=unts payable
Increase (decrease) In accrued liabilities
Increase (decrease) in compensated absences
Increase In utility deposits
Increase (decrease) in retainage payable
Total adjustments
Net cash pmvlded by (used in) operating activities
WATER AND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 3,160,448 $ 324,970 $ (62,064)
2,167,022 62,064
(326,152) (74,761)
(5,533)
(49,251)
586,625 1,816,673
$ 8,570,065
(154,582)
$ 4,157,686
(1,313)
92,025
81,287
7.278
(26,667)
11,853
112,599
093,282)
(34,378)
1,574,172
(14,936)
108.973
4,734,620
310,034
46,909
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers in from component unit
Operating transfers from other funds 62.520
Operating banters to other funds (1574,035) (36,601)
Net cash provided by (used in) non- apilal financing activities (1,511,515) (36.601)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: 1,861,994
Contributions from develoPem
Principal paid on revenue bond maturifies (995•x)
Interest paid (870,744)
Acquisition of capital assets (1,029,7371 (759,321)
Net cash provided by (used in) capital and related financial activities (2,895,481) 1,102,673
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities (28,740,739) (100,000) (2,731,258)
Proceeds from the sale and maturities of investment securities 28,645,334 1,307,892
Interest on Investments 818,319 28.822 207,482
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
NON-CASH FINANCING ACTIVITIES:
Contributions of fixed assets from developers
Derecognition of contracts payable
Iri
722,914 (71,178) (1,135,884)
1,050,538 202,255 13,698
7,519,527
586,625 1,816,673
$ 8,570,065
$ 788.880 $ 1,830,371
$ 4,157,686
§ $
$ 1 ,962 266
$ $
EXHIBIT F-3
TOTALS
PARKSAND AQUATICS
DRAINAGE RECREATION ENTERPRISE 2001 2000
$ 404,091 $ 2,801 $ (116,145) $ 3,714,101 $ 4,146,474
48,558
10,283
(995,000)
2,287,927
2,263,176
(26,209)
(419,776) (2,208,834)
(5,002,808)
(427,122)
(303,253)
30,333,226
27,528.993
41,955
(5,533)
23,534
1,121,685
1,056,901
(49,251)
12,424
12,683
(117,0861
(154,582)
318,157
65,616
2,197
1,781
241,793
(1,628,876)
1,304
(723)
251,988
(18,808)
41,197
551
$ 759,589
$ 107,908
12,404
(28,413)
12827254 $
10,868,536
112,599
58,178
25,345
$
2,134
(200,181)
49,432
115,365
11,757
3,915
1,799,246
474,975
519,456
14,558
(112230)
5,513,347
4,621,449
40,000
220,000 282,520 275,423
(123,478) (171,365) (2A00) (1,907,479) (1,630,963)
(123,478) (171,365) 218,000 (1,624,959) (1,315,540)
1,861,994
1,898,921
(995,000)
(945,000)
(870,744)
(917,486)
(419,776) (2,208,834)
(5,002,808)
(419,776) (2,212,584) (4,966,373)
67
(31,571,997)
(22,902,068)
300,000
30,333,226
27,528.993
41,955
12,424
12,683
1,121,685
1,056,901
341,955
12,424
12,683
(117,0861
5,683,826
318,157
(144,383)
118,453
1,558,718
4,023,362
441,432
252,291
251,988
10,868.536
6,845,174
$ 759,589
$ 107,908
$ 370,441
$
12827254 $
10,868,536
$
$
$
$
4,157.686 $
6,420,244
s
s
s
$
1,962,266 $
67
CRY OF ALLEN, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000)
EXHIBIT F4
2001
2000
ASSETS
CURRENTASSETS:
Cash and cash equivabnb
E 5,751,615 $
4,938,568
Investments
7,603.388
7,507,983
Receivables. net of allowance for uncollectible:
Accounts
1,941,905
1,615,756
Accrued Interest
93.107
98.486
Inventories
48,251
Prepaid items
154• 582
Restricted cash and cash equivalents
2,816,450
2,580,939
Total current assets
18,412,301
16,741,752
FIXED ASSETS:
LaM
341,850
341,850
Utility, plant and service
70,348,502
66,124,120
Pump station
2,528.832
2,525.832
Machinery anti equipnrem
1,988.540
1,551,187
Construction in progress
5.703.186
5,177,498
80,910,910
75,723.487
Less: accumulated depreciation
118,732.0291
(16,580.0%)
Total ftsed assets, net
62,178,881
59,143,428
011ier assets: - unamor6aed bond issue casts
50.400
53.200
TOTAL ASSETS
E 80.641.582 E
75,938.380
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accaums payable
$ 914,769 $
916.082
Accrued liabilities
34,310
27,032
Accrued compensated absences
75,051
63,198
Retainage payable
7,444
200,M
Payable from restricted assets:
Revenue bonds payable
1.040,000
995,000
A rued interest payable
271,536
289.241
Utility deposits
852,058
739,459
Total current liabilities
3,195,168
3.230.738
Accrued interest payable
8W•1a2
Contract payable
1.126.134
Revenue bonds payable
15,404,456
18,432.204
Total liabilities
18,599.624
21,625,208
FUND EQUITY:
Contributed capital
39,036,964
40,195.994
Retained earnings:
Reserved for revenue bond principal and Interest
654,658
557,239
Unreserved
22 350,138
13.559,939
Total fund equity
62,041,958
54313,172
TOTAL LIABILITIES AND FUND EQUITY
$ 80.641.582 E
75.938.380
68
CITY OF ALLEN, TEXAS
1.962.266
EXHIBIT FS
WATER AND SEWER ENTERPRISE FUND
7,728,786
2,496,840
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
1,159,030
1,159,030
AND CHANGES IN RETAINED EARNINGS
8,887,816
3,655,870
YEAR ENDED SEPTEMBER 30, 2001
14,117,178
10,461,308
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
23.004.994
14.117.178
Conbibuted capital at beginning of year
40,198,994
2001
2000
OPERATING REVENUES:
6,420244
Depredation transferred from relelned eamings
Water sales
E 9,186,025
$ 8,490,270
Sewer charges
2,964,622
2,664,419
Connection fees
307,002
213,122
Service charges
366,453
254,035
Miscellaneous
182.934
230,233
Total operating revenues
13.007.036
11.852.079
OPERATING EXPENSES:
Personal services
1,456.762
1,103,078
Contractual and other services
5,465,201
4,537,159
Maintenanw
643,565
124,014
Supplies
65,713
63,222
Deprecation and antonl7ation
2,167,022
1,989,907
Other
48,325
35.171
Total operating expenses
9.846,588
7.852.551
OPERATING INCOME
3,160.448
3,999,528
NON-OPERATING REVENUES (EXPENSES):
Interest Income
812,940
849,231
Interestexpense
(853.G39)
(901548)
Total non-operating revenue (elpense)
(40,0991
(52,317)
INCOME BEFORE CAPITAL CONTRIBUTIONS,
OPERATING TRANSFERS, AND EXTRAORDINARY ITEM
3,120,349
3,947,211
Capital contrbutions
4,157,686
Operating transfers in
62,520
10,423
Operating transfers out
(1.574.035)
(1,460794)
INCOME BEFORE EXTRAORDINARY REM
5,766,520
2496,840
EXTRAORDINARY ITEM
DerecognPoon of liability
1.962.266
NET INCOME
7,728,786
2,496,840
ADD DEPRECIATION ON CONTRIBUTED ASSETS
1,159,030
1,159,030
Increase in retained earnings
8,887,816
3,655,870
RETAINED EARNINGS. BEGINNING OF YEAR
14,117,178
10,461,308
RETAINED EARNINGS, END OF YEAR
23.004.994
14.117.178
Conbibuted capital at beginning of year
40,198,994
34,934,780
Capital contributions
6,420244
Depredation transferred from relelned eamings
(1,159,030)
(1,159,030)
Contrbuted capital at and of year
39.036.964
40,195,994
FUND EQUITY AT END OF YEAR
$ 62,041,958
$ 54,313,172
69
CITY OF ALLEN, TEXAS
EXHIBIT F-6
WATER AND SEWER ENTERPRISE FUNDS
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.2000)
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income
$ 3,160448
$ 3,999,528
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization expense
2,167.022
1,989,907
Change in assets and liabilities:
Increase in accounts receivable
(326,152)
(317,488)
Increase in inventories
(49,251)
Increase in prepaid items
(154.082)
Decrease in accounts payable
(1.313)
(1,488.189)
Increase in accrued liabilities
7278
2.507
Increase (decrease) in compensated absences
11,853
(29,114)
Increase in utility deposits
112,599
58,178
Increase (decrease) in retainage payable
(193,282)
13,102
Total adjustments
1,574,172
228,923
Net cash provided by operating activibes
4,734,620
4,228,451
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
62,520
10,423
Operating transfers to other funds
(1,574,035)
(1,460,794)
Net cash used in non -capital financing activities
(1,511,515)
(1,450.371)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Issuance of revenue bonds
Principal paid on revenue bond maturities
(995,000)
(945.000)
Interest paid
(870,744)
(917,486)
Acquisition of capital assets
(1,029,737)
(3,615,401)
Net cash used in capital and related financing activities
(2,895,481)
(5,477,887)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Investment securities
(28,740,739)
(22,602,088)
Proceeds from the sale and maturities of investment secorifies
28,645,334
26,337,103
Interest on investments
818,319
841,971
Net cash provided by Investing activities
722,914
4,577.008
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,050,538
1,877,198
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
7.519,527
5,642,328
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 8,570,085
$ 7,519,527
NON-CASH FINANCING ACTIVITIES:
Contributions of fixed assets from developers
$ 4,157,688
,244
$_==j,420
Derecognition of contracts payable
$ 1,962,266
$
Z
CITY OF ALLEN, TEXAS EXHIBIT F-7
SOLID WASTE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
2001 2000
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
788,880
$
586,625
Investments
10(),000
Receivables, net of allowance for uncollectibles:
Accounts
120,864
46,103
Accrued interest
2,054
Other
5,653
120
Total current assets
1,017,451
632,848
TOTAL ASSETS
$
1,017,451
$
632,848
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
$
200,391
$
108,366
Accrued liabilities
8,957
35,624
Total current liabilities
209,348
143,990
FUND EQUITY:
Retained earnings- unreserved
808,103
488,858
Total fund equity
808,103
488,858
TOTAL LIABILITIES AND FUND EQUITY
$
1.017,451
$
632,848
71
CITY OF ALLEN, TEXAS
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
OPERATING REVENUES:
Garbage collections
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES:
Interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
FPd
EXHIBIT F-8
2001 2000
$ 2,438,624 $
2,050,347
2,438,624
2,050,347
39,774
31,508
2,059,063
1,820,067
14,817
18,281
2,113,654
1,869,856
324,970
180,491
30,876
25,087
355,846
205,578
(36,601)
319,245
488,858
$ 808,103
(28,820)
176,758
312,100
$ 488,858
CITY OF ALLEN, TEXAS
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
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
(Increase) decrease in other receivables
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers to other funds
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
73
EXHIBIT F-9
2001 2000
$ 324,970
$ 180,491
(74,761)
(1,791)
(5,533)
22,205
92,025
(18,406)
(26,667)
35,624
(14,936)
37,632
310,034
218,123
(36,601)
(28,820)
(100,000)
319,638
28,622
26,132
(71,178)
345,770
202,255
535,073
586,625
51,552
$ 788,880
$ 586,825
crTY OF ALLEN, TEXAS
EXHIBIT F-10
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 1,830,371
$ 1,816,673
Investments
2,599,556
1,256,190
Accrued interest receivable
18,892
33,634
Total current assets
4,448,819
3,106,497
FIXED ASSETS:
259,990
259,990
Land
Utility plant in service
2,482,565
2,256,880
Construction in progress
1,705,859
1,172,223
4,448,414
3,689,093
Less: accumulated depreciation
(578,830)
(516,766)
Total fixed assets, net
3,869,584
3,172,327
TOTAL ASSETS
$ 8,318,403
$ 6,278,824
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 81,287
$
Retainage payable
21,374
55,752
Total current liabilities
102,661
55,752
FUND EQUITY:
Contributed capital
6,981,772
6,981,772
Retained earnings (accumulated deficit)
1,233,970
(758,700)
Total fund equity
8,215,742
6,223,072
TOTAL LIABILITIES AND FUND EQUITY
$ 8,318,403
$ 6,278,824
74
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, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
2001 2000
OPERATING REVENUES:
$
$
OPERATING EXPENSES:
Depreciation
62,064
251,667
Total operating expenses
62,064
251,667
OPERATING LOSS
(62,064)
(251,667)
Non-operating revenue - interest income
192,740
147,468
Development fees
1,861,994
NET INCOME (LOSS)
1,992,670
(104,199)
ACCUMULATED DEFICIT AT BEGINNING OF YEAR
(758,700)
(654,501)
RETAINED EARNINGS/
(ACCUMULATED DEFICIT) AT END OF YEAR
1,233,970
(758,700)
Contributed capital at beginning of year
6,981,772
5,082,851
Capital contributions
1,898,921
Contributed capital at end of year
6,981,772
6,981,772
FUND EQUITY AT END OF YEAR
$ 8,215,742
$ 6,223,072
75
rC1
EXHIBIT F-12
CITY OF ALLEN, TEXAS
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
SEPTEMBER 30 2001
TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
(WITH COMPARATIVE
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES:
$ (62.064)
$ (251,687)
Operating loss
Adjustments to reconcile operating loss
to net cash provided by (used in) operating activities:
62 064
251 667
Depreciation and amortization
Change in assets and liabilities:
Increase (decrease) in accounts payable
811,287
(95,866)
Increase (decrease) in retainage payable
(34 378)
38,330
Total adjustments
108,973
192,131
Net cash provided by (used in) operating activities
46,909
(59,536)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
1,861,994
1,898,921
Contributions from developers
Acquisition of capital assets
(759321)
(1,336,199)
Net cash provided by capital and related financing activities
1,102,673
562,722
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
2 731,258)
Proceeds from the sale and maturities of
1,387,892
218,793
investment secudtie5
207,482
124,002
Interest on investments
Net cash provided by (used in) investing activities
(1,135,884)
342,795
NET INCREASE IN CASH AND CASH EQUIVALENTS
13,698
845,981
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,816,673
970,692
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 1,830,371
$ 1,816,673
rC1
CITY OF ALLEN, TEXAS EXHIBIT F-13
DRAINAGE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Investments
Accounts receivable
Accrued Interest receivable
Total current assets
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
Retainage payable
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
77
$ 759,589 $
441,432
300,000
35,968
9,759
3,843
795,557
755,034
82,477
82,477
41,804
27,245
237,171
188,663
371,709
15,000
733,161 313,385
(110,424) (61,866)
622,737 251,519
$ 1,418,294 $ 1,006,553
$ 74,467 $ 8,651
3,958 2,654
4,714 4,163
25,345
108,484 15,468
1,309,810 991,085
1,309,810 991,085
$ 1,418,294 $ 1,006,553
CITY OF ALLEN, TEXAS
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
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
Nonoperafing revenues - interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
d7
EXHIBIT F-14
2001 2000
$ 610,744 $ 518,347
253,528 42,415
864,272 560,762
181,674
57,160
124,185
7,797
48,558
40,807
460,181
404,091
150,145
36,321
56,628
10,149
11,319
32,916
297,478
263,284
38,112
43,187
442,203
306,471
(123,478)
(141,349)
318,725
165,122
991,085
825,963
$ 1,309,810
$ 991,085
CITY OF ALLEN, TEXAS
EXHIBIT F-15
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income $ 404,091 $ 263,284
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase in retainage payable
Increase in accrued liabilities
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 Investing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
79
48,558 11,319
(26,209)
16,026
65,816
(9,085)
25,345
341,955
1,304
809
551
701
115,365
19,770
519,456
283,054
(123,478) (141,349)
(419,776) (48,866)
(300,000)
300,000
472,361
41,955
45,866
341,955
218,227
318,157
311,066
441,432
130,366
$ 759,589 $
441,432
CITY OF ALLEN, TEXAS
EXHIBIT F-16
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Accrued interest receivable
Total current assets
FIXED ASSETS:
Machinery and equipment
Less: accumulated depreciation
Total fixed assets, net
TOTALASSETS
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
jg
$ 107,908 $ 252,291
395
108,303 252,291
61,698 61,698
(38,291) (28,008)
23,407 33,690
$ 131,710 $285,981
$ 16,457 $ 14,260
3,527 4,250
19,984 18,510
33,043 33,043
78,683 234,428
111,726 267,471
$ 131,710 $ 285,981
CITY OF ALLEN, TEXAS EXHIBIT F-17
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
2001 2000
OPERATING REVENUES: $ $
Recreation fees
432,423
428,690
Miscellaneous
34,246
65,105
Total operating revenues
466,669
493,795
OPERATING EXPENSES:
Personal services
201,439
234,238
Contractual and other services
235,862
292,968
Depreciation
10,283
10,283
Other
16,284
1,153
Total operating expenses
463,868
538,642
OPERATING INCOME (LOSS)
2,801
(44,847)
Non-operating revenues - Interest income
12,819
15,169
INCOME (LOSS) BEFORE OPERATING TRANSFERS
15,620
(29,678)
Operating transfers in
15,000
Operating transfers in from component unit
40,000
Operating transfers out
(171,365)
NET INCOME (LOSS)
(155,745)
25,322
RETAINED EARNINGS, BEGINNING OF YEAR
267,471
242,149
RETAINED EARNINGS, END OF YEAR
$ 111,726 $
267,471
81
CITY OF ALLEN, TEXAS
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.2000)
EXHIBIT F-18
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
$ 2 801
$ (44,847)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation
10,283
10,283
Change in assets and liabilities:
1.329
Decrease in other accounts receivable
Increase (decrease) in accounts payable
2,197
(17,665)
Increase (decrease) in accrued liabilities
(723)
2,257
Total adjustments
11,757
(3,796)
Net cash provided by (used in) operating activities
14,558
(48,643)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers in from component unit
40,000
Operating transfers from other funds
15,000
Operating transfers to other funds
(171,365)
Net cash provided by (used in) noncapital financing activities
(171,365)
55,000
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
(2,342)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale and maturities of
investment securities
12,424
181,098
16,942
Interest on investments
Net cash provided by investing activities
12,424
198,040
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(144,383)
202,055
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
252,291
50,236
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 107,908
$ 252,291
82
CITY OF ALLEN, TEXAS
AQUATICS ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Total current assets
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
[:kl
EXHIBIT F-19
2001 2000
$ 370,441 $ 251,988
370,441 251,988
$ 370,441 $ 251,988
$ 2,096 $
315
2,134
4,230
315
366,211
251,673
366,211
251,673
$ 370,441 $
251,988
CITY OF ALLEN, TEXAS EXHIBIT F-20
AQUATICS ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30.2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
2001 2000
OPERATING REVENUES:
$ $
Charges for services
58,224
Total operating revenues
58,224
OPERATING EXPENSES:
Personal services
142,072
Contractual and other services
3,407
315
Maintenance
11,221
Supplies
17,669
Total operating expenses
174,369
315
OPERATING LOSS
(116,145)
(315)
Non-operating revenues -interest income
12,683
1,988
INCOME (LOSS) BEFORE OPERATING TRANSFERS
(103,462)
1,673
Operating transfers in
220,000
250,000
Operating transfers out
(2,000)
NET INCOME
114,538
251,673
RETAINED EARNINGS, BEGINNING OF YEAR
251,673
RETAINED EARNINGS, END OF YEAR
$ 366,211 $
251,673
84
CITY OF ALLEN, TEXAS
AQUATICS ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss
Adjustment to reconcile operating loss to net cash
provided by (used in) operating activities:
Increase in accounts payable
Increase in accrued liabilities
Total adjustments
Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
Operating transfers to other funds
Net cash provided by non -capital financing activities
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
2001 2000
$ (116,145) $ (315)
1,781
315
2,134
3,915
315
(112,230)
12,683
1,988
220,000
250,000
(2,000)
218,000
250,000
118,453
251,988
251,988
$ 370,441 $
251,988
CITY OF ALLEN
86
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
CITY OF ALLEN, TEXAS
EXHIBIT G-1
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
VEHICLE SELF TOTALS
REPLACEMENT INSURANCE
FUND FUND 2001 2000
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable
Accrued interest receivable
Due from other funds
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
$ 845,188 $
153,432
$ 998,620 $
858,232
2,000,000
2,000,000
1,657,476
337,104
337,104
53,405
10,335
10,335
13,879
300,000
300,000
2,855,523
790,536
3,646,059
2,582,992
176,920
176,920
158,203
1,224,250
1,224,250
939,282
(805,955)
(805,955)
(572,426)
595,215
595,215
525,059
3,450,738
790,536
4,241,274
3,108,051
95,185
307,765
402,950
272,791
Fund equity:
Retained earnings - unreserved 3,355,553 482,771 3,838,324 2,835,260
Total fund equity 3,355,553 482,771 3,838,324 2,835,260
TOTAL LIABILITIES AND FUND EQUITY $ 3,450,738 $ 790,536 $ 4,241,274 $ 3,108,051
10
CITY OF ALLEN, TEXAS
EXHIBIT G-2
INTERNAL SERVICE FUNDS
48,841
48,841
COMBINING STATEMENT OF REVENUES, EXPENSES
Contractual services
2,363,930
AND CHANGES IN RETAINED EARNINGS
85,319
Depreciation
233,528
YEAR ENDED SEPTEMBER 30, 2001
233,528
182,914
Other expenses
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
984
Total operating expenses
234,512
VEHICLE
SELF
TOTALS
OPERATING INCOME (LOSS)
REPLACEMENT
INSURANCE
474,013
(226,320)
FUND
FUND
2001
2000
OPERATING REVENUES:
Interest Income
113,696
27,771
Charges for services $ 898,091 $
1,841,450 $
2,739,541 $
1,153,613
Other Income 7,161
374,594
381,755
17,138
387,584
387,584
Total operating revenues 905,252
2,216,044
3,121,296
1,170,751
OPERATING EXPENSES
Personal services
48,841
48,841
1,128,838
Contractual services
2,363,930
2,363,930
85,319
Depreciation
233,528
233,528
182,914
Other expenses
984
984
Total operating expenses
234,512
2,412,771
2,647,283
1,397,071
OPERATING INCOME (LOSS)
670,740
(196,727)
474,013
(226,320)
NON-OPERATING REVENUES:
Interest Income
113,696
27,771
141,467
112,101
Income (loss) before operating transfers
784,436
(168,956)
615,480
(114,219)
Operating transfers from other funds
387,584
387,584
770,802
NET INCOME
784,436
218,628
1,003,064
656,583
RETAINED EARNINGS,
BEGINNING OF YEAR
2,571,117
264,143
2,835,260
2,050,530
Residual equity transfer in
128,147
RETAINED EARNINGS, END OF YEAR
$ 3,355,553 $482,771
$
3,838,324 $
2,835,260
89
CITY OF ALLEN, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation
Charge in assets and liabilities:
(Increase) decrease in accounts receivables
Increase in other receivables
Increase in accounts payable
Total adjustments
Net cash provided by (used in) operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of imesunant securities
Proceeds from sale and maturities of investment securities
Interest on imestments
Net cash provided by (used in) investing activilies
EXHIBIT G3
VEHICLE SELF Tul ALO'
REPLACEMENT INSURANCE
FUND FUND 2001 2000
$ 670.740 $ (196,727) $ 474,013 $ (226,320)
233,528
(525,581)
233,528
182,914
183,057 183,057
(283,699)
(283,899)
74,742
108,675
(300,000)
(300,000)
95,186
34,974
130,160
272,791
328,714
(548,725)
(220,011)
530,447
999,454
(745,452)
254,002
304,127
387,584 387,584 770,802
(303,685) (303,685) (423,305)
(525,581)
(525,581)
(1,657,476)
183,057 183,057
1,118,422
116.650
28,361 145,011
108,675
(408,931)
211,418 (197,613)
(430,379)
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 286,838 (145450) 140.388 221,245
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 558,350 299,882 858,232 636,987
CASH AND CASH EQUIVALENTS, END OF YEAR $ 845,188 $ 153,432 $ 998,620 E 858,232
NON-CASH NON -CAPITAL FINANCING ACTIVITIES: $ 128 147
Residual equity transfer of accounts receivable $ $ $
FIDUCIARY FUND TYPES
The Fiduciary Fund Types are used to account for assets held by the City in a trustee or agency capacity 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 rapacity in
which the principal must be preserved intact.
Cemetery Trust Fund — To account for funds received and expended for providing City cemetery
services.
91
CITY OF ALLEN, TEXAS
TRUSTFUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000)
EXHIBIT H-1
NON
EXPENDABLE
EXPENDABLE TRUST
TRUST
TOTALS
LIBRARY
PARK
ALLEN
CEMETERY
ACQUISITION DEDICATION SWIMTEAM
TRUST
2001
2000
ASSETS:
Cash and Cash equivalents
$
186,564 $
1,049,831 $
3,333
$ 55,013 $
1.8 530 $
923,299
899,538
500000
Inveabnents
4,599
4,599
5,395
Accrued Interest receivable
TOTAL ASSETS
E
186.564E
1,953.960 $
3,333
$ 55,013 $
2,198,870E
1,428,694
LIABILITIES AND FUND BALANCES
LIABILITIES:
$
$
E
1,170E
$
1,170 $
Accounts payable
TOTAL LIABILITIES
1,170
1,170
FUND BALANCES:
Unreserved - undesignated
186,564
1.953.960
2.163
55.013
2.197,700
1.428,894
TOTAL LIABILITIES AND FUND BALANCES
E
186,564E
1,953,960 $
3,333E
55,013 $
2,198.870 $
1,428,894
7
CITY OF ALLEN, TEXAS
TRUSTFUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - EXPENDABLE TRUST FUNDS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
EXHIBIT H-2
EXPENDITURES:
TOTALS
LIBRARY
PARK
ALLEN
7,327
ACQUISITION
DEDICATION
SWIM TEAM
2001 2000
REVENUES:
5,871
Capital outlay
Gifts and contributions
$ 10,570 $
$
12,250 $
22,820 $ 18,516
Recreation fees
677,994
12,307
677,994 984,450
Interest
9,299
89,205
12,307
98,504 64,217
515,144
NET INCOME
12,642
Total revenues
19,869
767,199
12,250
799,318 1,067,183
EXPENDITURES:
Library purchases
7,327
7,327
General items
5,871
5,871
Capital outlay
5,007
5,007
502,560
Miscellaneous
12,307
12,307
12,584
Total expenditures
7,327
10,878
12,307
30,512
515,144
NET INCOME
12,642
756,321
(57)
788,806
552,039
FUND BALANCE, BEGINNING OF YEAR
174,022
1,197,639
2,220
1,373,881
821,842
FUND BALANCE, END OF YEAR
$ 186,564 $
1,953,960 $
2,163 $
2,142,687 $
1,373,881
93
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000)
ASSETS
Cash and cash equhtalents
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCES
L
EXHIBIT H-3
2001 2000
$ 55,013 $ 54,813
55,013 54,813
55,013 54,813
$ 55,013 $ 54,813
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
NON-OPERATING REVENUES
EXHIBIT H-4
2001 2000
Miscellaneous income $ 200 $
NET INCOME
FUND BALANCE, BEGINNING OF YEAR 54,813 54,813
FUND BALANCE, END OF YEAR $ 55,013 $ 54.813
95
CITY OF ALLEN, TEXAS
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
CASH FLOWS FROM OPERATING ACTIVITIES - operating income
Net cash provided by opera0ng activi8e5
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
g8
EXHIBIT H5
2001 2000
$ 200 3
200
200
54,813 54,813
$ 55,013 $ 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.
1411
CITY OF ALLEN, TEXAS
EXHIBIT 1-1
GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30, 2001
2001 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
98
$ 16,669,776 $
15,060,560
14,158,866
14,156,866
59,301,914
55,447,396
13,156,894
12,438,622
22,615,969
2,613,254
$ 125,901,219 $ 99,716,700
$ 99,716,700 $ 73,335,708
26,184,519 16,981,514
9,399,478
$ 125,901,219 $ 99,716,700
DISCRETELY PRESENTEDCOMPONENT UNITS
Allen Economic Development Corporation (AFDC) — AEDC is a legally separate entity from the City and
is responsible for aiding, promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) —ACDC is a legally separate entity from the City and
is responsible for supporting the improvements in community parks and recreation, streets and sidewalks,
public safety and the community library.
Ell
CITY OF ALLEN, TEXAS
EXHIBIT J-1
ALLEN ECONOMIC DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2000)
GENERAL GENERAL TOTALS
ECONOMIC LONG-TERM FIXED
DEVELOPMENT DEBT ASSETS 2001 2000
ASSETS AND OTHER DEBITS
Cunentowets:
Cash and cash equivalents
Investments
Sales tax receivable
Accrued interest receivable
Total moment assets
Fixed assets
Amount to be provided for lag term debt
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES, FUND BALANCE
AND OTHER CREDITS
Liabilities:
Accounts payable
Accrued and other liabilities
Contractual obligations
Notes payable
Total liabilities
Fund balance and other credits:
Investment in general fixed assets
Unreserved - undesignated
Total hind equity and other credits
TOTAL LIABILITIES, FUND BALANCE
AND OTHER CREDITS
$ 495,594 $ E $
495,594 $
411,414
699,416
699,416
600,000
502,251
502,251
438,363
7,013
7,013
7,114
1,704,274
1,704,274
1,456,891
6,1911926
6,191,926
9,538,490
1.932.653
1,932,653
2,636,745
$ 1,704,274 $ 1,932.653 $ 6,191,926 $ 9,828,853 $ 13,632.126
$ 48,474 $
E
$
48,474 $
166,249
4,334
4,334
4,461
360,458
360,458
1,572,195
1,572,195
2,636,745
52,808
1,932,653
1,985,461
2,807,455
6,191,926
6,191,926
9,538,490
1,651,466
1,651,466
1,286,181
1,651,466
6,191,926
7,843,392
10824,671
$ 1,704,274 $
1,932.653 $6,191.926
$
9,828,853 $
13,632.126
100
Cfry OF ALLEN, TEXAS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2000)
REVENUES:
Sales taxes
Interest
Total revenues
EXPENDITURES:
General government
Public works
Capital outlay
Principal retirement
Interest
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Operating transfers in from primary government
Operating transfers out to primary government
Total other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over expenditures
and other financing uses
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
101
EXHIBIT 3-2
2001
2000
$ 3,046,346 $
2,286,089
60,199
65.971
3,106,545
2,352,060
1,286,181
464,996
451,421
448,886
317,955
356,365
1,096,861
1,239,846
345,251
207.167
219,514
2,717,260
2,431,002
389,_85 (78,942)
146,191
(24,000)
(85,865)
(24000)
60,326
365,285
(18,616)
1,286,181
1,304,797
$ 1,651.466 $
1,286,181
CITY OF ALLEN, TEXAS
EXHIBIT J-3
COMMUNITY DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30.2000)
GENERAL TOTALS
COMMUNITY LONG-TERM
DEVELOPMENT DEBT 2001 2000
ASSETS
Current assets:
Cash and cash equivalents
$
2,851,560
$
$
2,851,560
$
2,273,181
Investments
799,789
799,789
1,417,000
Sales tax receivable
502,251
502,251
438,363
Accrued interest receivable
9,252
9,252
23,347
Prepaid expenses
71,811
71,811
Total current assets
4,234,663
4,234,663
4,151,891
Fixed assets
Amount to be provided for long term debt
9,985,458
9,985,458
9,965,000
TOTAL ASSETS
$
4,234,663
$
9,985,458 $
14,220,121
$
14,116.891
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$
7,121
$
$
7,121
$
651,163
Retainage payable
106,508
106,508
43,929
Contractual obligations
360,458
360,458
Revenue bond payable
9,625,000
9,625,000
9,965,000
Total liabilities
113,629
9,985,458
10,099,087
10,660,092
Fund balance and other credits:
Reserved for encumbrances
260,944
260,944
3,456,799
Unreserved - undesignated
3,860,090
3,860,090
Total fund equity and other credits
4,121,034
4,121,034
3,456,799
TOTAL LIABILITIES AND FUND BALANCES
$
4,234,663
$
9,985,458 $
14,220.121
$
14,116,891
102
CITY OF ALLEN, TEXAS
COMMUNITY DEVELOPMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000)
EXHIBIT J-4
103
2001
2000
REVENUES:
Sales taxes
$ 3,046,346
$ 2,286,089
Interest
175.590
243,618
Total revenues
3.221.936
2.529.707
EXPENDITURES:
General items
1,007
Community development
47,888
74,382
Capital outlay
1,438,243
2,580,068
Principal retirement
478,249
225,000
Interest
541.205
641.517
Total expenditures
2.505.585
3.521,974
Excess (deficiency) of revenues over expenditures
716,351
(992,267)
OTHER FINANCING SOURCES (USES):
Operating trensfers in from primary government
19,339
Operating transfers out to primary government
(52,116)
(76,000)
Total other financing uses
(52,118)
(56,661)
Excess (deficiency) of revenues and
other financing sources over expenditures
and other financing uses
664,235
(1,048,928)
FUND BALANCE, BEGINNING OF YEAR
3.458.799
4,505,727
FUND BALANCE, END OF YEAR
$ 4,121,034
$ 3.458,799
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
PURLIC
S
CULTURE
RECREATION
YEAR
GOVERNMENT
SAFETY
$ 815,243
$ 2,974,389
$ 354,775
$ 1,092,446
1992
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
2001
4,051,058
10,896,606
2,354,777
4,554,158
Source: Current year and prior year combined financial statements.
Note :
(A) Includes General, Special Revenue and Debt Service Funds.
106
TABLE 1
COMMUNITY
CAPITAL
DEBT
DEVELOPMENT
OUTLAY
SERVICE
TOTAL
$ 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
1,242,795
2,250
6,813,770
29,915,414
107
CRY OF ALLEN, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (Note A) (UNAUDITED)
LAST TEN FISCAL YEARS
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
LICENSES
INTER-
CHARGES FOR
FISCAL
YEAR
TAXES (B)
AND PERMITS
GOVERNMENTAL
SERVICES
1992
$ 7,201,152 $
356,249
$ 42,069
$ 154,597
1993
7,953,560
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
356,597
2000
20,255,520
1,733,140
992,672
2001
25,292,740
1,896,867
536,761
1,288,629
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
FINES AND
GIFTS AND
FORFEITURES
CONTRIBUTIONS
$ 147,550
$ 144,938
$
175,066
388,154(c)
177,323
209,376
202,345
9,776,374
310,318
866,113(c)
332,385
473,570
465,756
685,217
671,934
254,693
738,005
1,158,765
1,007,666
2,250
TABLE 2
INTEREST
MISCELLANEOUS
TOTAL
$ 147,550
$ 154,953 (c) $
8,046,555
151,747
388,154(c)
9,099,807
209,376
711,445(c)
9,776,374
420,387
866,113(c)
10,448,182
473,570
510,363(c)
12,576,708
451,499
909,111 (c)
14,056,002
521,151
459,825
18,238,223
478,640
653,506
21,031,436
1,000,208
1,099,644
26,977,954
918,055
641,851
31,586,819
109
CITY OF ALLEN, TEXAS
AD VALOREM TAX LEVIES AND COLLECTIONS (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL
YEAR
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
TOTAL
TAX LEVY
$ 5,423,882
5,578,141
5,770,930
6,380,680
7,139,479
8,092,555
9,107,745
10,823,366
13,100,263
16,070,978
CURRENTTAX
COLLECTIONS
$ 5,483,917
5,578,440
5,770,699
6,363,231
7,142,679
8,056,575
9,102,700
10,762,014
13,043,521
16,051,072
PERCENT
OF LEVY
COLLECTED
101.11
100.01
100.00
99.73
100.04
99.56
99.94
99.43
99.57
99.88
(1) Includes penalty and interest collections. Such amounts are recorded with
ad valorem tax revenue in the combined financial statements.
DELINQUENT
TAX
COLLECTIONS
$ 190,813
31,752
14,349
19,016
50,451
80,355
27,067
68,580
103,623
152,450
Vd7111Xa7
111
PERCENT OF
PERCENT OF
TOTALTAX
OUTSTANDING
OUTSTANDING
TOTAL TAX
COLLECTIONS
DELINQUENT
DELINQUENT
COLLECTIONS (1)
TO TAX LEVY
TAXES
TAXES TO TAX LEVY
$ 5,674,730
100.71 %
$ 14,065
0.26
5,610,192
100.39
7,957
0.14
5,785,048
100.87
6,349
0.11
6,382,247
99.65
4,626
0.07
7,193,130
100.06
8,158
0.11
8,136,930
99.57
12,131
0.15
9,129,767
99.81
38,701
0.42
10,830,594
100.36
72,467
0.67
13,147,144
100.36
56,244
0.43
16,203,522
100.82
104,596
0.65
111
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
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
100
1997
1,248.851.016
1, 248 , 851, 016
100
1998
1,666,233,175
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
2001
2,849,399,418
2,849,399,418
100
(1) Represents total assessed value before expiration.
Source: City of Allen
112
CITY OF
ALLEN, TEXAS
TABLE 5
PROPERTY TAX RATES - DIRECT AND
OVERLAPPING
GOVERNMENTS (UNAUDITED)
LAST TEN FISCAL YEARS
COLLIN
COUNTY
DEBT
COMMUNITY
FISCAL
GENERAL
SERVICE
ALLEN
COLLIN
COLLEGE
YEAR
FUND
FUND
TOTAL
I.S.D.
COUNTY
DISTRICT
TOTAL
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
2001
0.348170
0.215830
0.56400
1.83142
0.2500
0.092843
2.73826
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 Stale funding method
was enacted for fiscal year 1995.
Source: City of Allen
113
CITY OF ALLEN, TEXAS
NET GENERAL BONDED DEBT TO TAXABLE
VALUE
RATIO OF
AND NET BONDED DEBT PER CAPITA (UNAUDITED)
LAST TEN FISCAL YEARS
GROSS
GENERAL
FISCAL
ESTIMATED
TAXABLE
BONDED
DEBT (2)
YEAR POPULATION (1) VALUE (3)
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
1,586,233,175
38,413,921
1999
43,686
1,882,324,508
49,608,921
2000
48,308
2,287,107,121
59,117,730
2001
54,421
2,849,399,418
68,409,064
(1) Source: Census results/North Central 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
$ 301,934
401,949
469,120
594,510
765,253
838,686
1,017,694
937,386
833,788
848,466
NET
BONDED DEBT
$ 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
67,560,598
115
RATIO OF
NET BONDED
DEBT TO
TAXABLE VALUE
0.02224
0.02953
0.02607
0.02894
0.02912
0.02361
0.02388
0.02585
0.02548
0.02371
TABLE 6
NET
BONDED DEBT
PER CAPITA
$ 781.97
946.06
830.02
948.03
1,061.11
906.15
1,046.22
1,114.12
1,206.51
1,241.44
CITY OF ALLEN, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30, 2001
TABLE 7
Article XI, Section 5 of the Texas Constitution, applicable to cities of more than 5,000 population stales that the
maximum rate shall not exceed $2.50 per $100.00 of assessed valuation of taxable property. The City Charter
of the City of Allen, Texas, does not provide for a debt limit. The City tax rate of $0.55400 per $100.00 assessed
valuation is 22.56% of the constitutional limit for operation and debt service.
116
CITY OF ALLEN, TEXAS
TABLE 8
COMPUTATION OF DIRECT AND OVERLAPPING
DEBT (UNAUDITED)
SEPTEMBER 30, 2001
PERCENTAGE
AMOUNT
(1)
APPLICABLE TO
APPLICABLE TO
GROSS DEBT
CITY OF
CITY OF
OUTSTANDING
ALLEN
ALLEN
City of Allen
$
68,409,064
100% $
68,409,064
Allen I.S.D.
156,272,216
95%
148,458,605
Collin County
198,492,087
6.28%
12,465,303
Collin County Community College District
16,943,301
6.28%
1,064,039
Total direct and overlapping debt
$
440,116,668
$
230,397,012
Average debt per capita
$
8,087
(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
TO TOTAL GENERAL
GOVERNMENTAL EXPENDITURES (UNAUDITED)
GENERAL BONDED
DEBT
LAST TEN FISCAL YEARS
RATIO OF DEBT
SERVICE TO
TOTAL GENERAL
GENERAL
FISCAL
TOTAL DEBT
GOVERNMENTAL
GOVERNMENTAL
YEAR
PRINCIPAL
INTEREST
SERVICE
EXPENDITURES
EXPENDITURES
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
0.22520
2000
2,830,000
2,715,171
5,545,171
26,059,990
0.21278
2001
3,469,803
3,343,967
6,813,770
29,915,414
0.22777
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, add-ons and improvements.
119
TOTAL
_
CONSTRUCTION (1)
FISCAL
ASSESSED
NUMBER
COMMERCIAL
NUMBER
RESIDENTIAL
YEAR
VALUE
PERMITS
VALUE
PERMITS
VALUE (2)
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
366
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
2001
2,849,399,418
197
73,483,501
2,257
586,583,500
(1) Source: City of Allen- Building Inspections (includes all permits)
(2) Includes new construction, alterations, add-ons and improvements.
119
Source: City of Allen
120
TABLE 11
CITY OF ALLEN, TEXAS
PRINCIPAL TAXPAYERS (UNAUDITED)
SEPTEMBER 30, 2001
PERCENTAGE OF
2000
TAXABLE ASSESSED
TAXPAYER
TYPE OF BUSINESS
VALUATION
VALUATION
TXU - Electric and Gas
Utilities
$ 36,558,647
128%
Chelsea Allen Development
Outlet Mall
32,845,074
1.15%
Southmslem Bell
Telephone Utilities
30,165,642
1.06%
Allen Office Inv. Ltd. Partners
Information Services
28,761,645
1.01%
Janice Bdttingham
Real Estate
28,252,380
0.99%
Benton Pointe Apartments
Apartment Complex
25,650,000
0.90%
Meridian Settlers Gate Ltd.
Apartment Complex
25,060,000
0.88%
Sunbelt Telecommunications
Telecommunications
18,432,543
0.65%
Albertson's Inc.
Retail
14,923,583
0.52%
Photronics- Toppan
Mycrographics
14,199,730
0.50%
$ 254,849,244
8.94%
Total
Source: City of Allen
120
CITY OF ALLEN, TEXAS
TABLE 12
MISCELLANEOUS STATISTICAL FACTS (UNAUDITED)
SEPTEMBER 30, 2001
Date of Incorporation July 1, 1953
Form of Government Council/Manager
Area
27.1059 square miles
Miles of street
216.03 center line miles
Population estimate (2001)
54,421
Fire Protection:
Number of stations
4
Number of personnel
75
Number of fire hydrants
3584
Police Protection:
Number of stations
1
Number of personnel
87
Water Service:
Supplier
North Texas Municipal Water District
Number of consumers
17,897
Average daily consumption
9,632,057 Gallons
Miles of water lines
242.88 linear miles
Sewer Service:
Sanitary sewer lines
208.55 linear miles
Storm sewer lines
71.29 linear miles
Building Permits Issued
6,013
Parks:
Number
38
Area
830 acres
Municipal Employees:
Full-time
354
Part-time
31
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 (3) INCOME (2) ENROLLMENT (1)
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
2001
54,421
40,068
11,519
(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 SECRETARY
OFFICIAL FILE COPY
CITY OF ALLEN, TEXAS
REPORT ON FEDERAL
FINANCIAL ASSISTANCE
YEAR ENDED SEPTEMBER 30, 2001
TABLE OF 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 and on Internal Control Over
Compliance in Accordance with OMB A-133 and
Schedule of Federal Awards
Schedule of Findings and Questioned Costs
Corrective Action Plan
Schedule on Prior Audit Findings
Supplementary Information:
Schedule of Expenditure of Federal Awards
Notes to Schedule of Expenditure of Federal Awards
Page
1
3
5
7
S
9
10
I
'
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III
WEAVER
'
TIDWELL
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
L r IN
FINANCIAL REPORTING BASED ON AN AUDIT OF
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FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
CERTIFIED PUBLIC
WITH GOVERNMENTAUDITING STANDARDS
ACCOUNTANTS
F.¢IXart/ / _—_�✓a
ANCONSULTANTS
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'
WEEVEPANOTiOwELL ROM
AN INDEPENDENT MEMBER OF
To the Honorable Mayor, City
BAKER TILLY
Council and City Manager
1
City Of Allen
Alen, Texas
1 We have audited the financial statements of The City Of Allen (the City) as of and for the
year ended September 30, 2001, and have issued our report thereon dated January 18,
2002. 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.
11
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WEEVEPANOTiOwELL ROM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
1
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 no instances of noncompliance that are required to be reported under
Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Citys 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 a matter involving the internal
control over financial reporting and its operation that we consider to be a reportable
condition. Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the intemal control over financial
reporting that in our judgment, could adversely affect the City's ability to record, process,
summarize and report financial data consistent with the assertions of management in the
general purpose financial statements. The reportable condition is described in the
accompanying schedule of findings and questioned costs as item # 01-01.
City of Allen, Texas
January 18 2002
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 the reportable condition described above is not 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
specified parties.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
January 18, 2002
2
I
' APPLICABLE
111
C MPLIAN CE IN ACCORDANCE WITHPROGRAM AND ON OMB CIRCULAR MAJORTO EACH 3 R
AND SCHEDULE OF FEDERAL AWARDS
WEAVER
' TIDWELL
L r r To the Honorable Mayor, City
Council and City Manager
CERTIFIED PuaLIC City Of Xlen
ncCOLKTANTs Allen, Texas
AND O N suLTRNTS
' Compliance
We have audited the compliance of the City of Allen (the City), with the types of
' compliance requirements described in the U. S. Office of Management and Budget (OMB)
Circular A-133 Compliance Supplement that are applicable to its major federal program
for the year ended September 30, 2001. 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, Loral 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,
2001.
Internal Control Over Compliance
The management of the City of Allen is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts
and grants applicable to federal programs. In planning and performing our audit, we
considered the Ciys internal control over compliance with requirements that could have a
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.
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INTERNATIONAL
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, Loral 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,
2001.
Internal Control Over Compliance
The management of the City of Allen is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts
and grants applicable to federal programs. In planning and performing our audit, we
considered the Ciys internal control over compliance with requirements that could have a
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.
I
'
above that are applicable to its major federal program for the year ended September 30,
2001.
REPORT ON COMPLIANCE WITH REQUIREMENTS i
D^"^s
I I I
MAJORTO EACH AND ON OVER
effective internal control over compliance with requirements of laws, regulations, contracts
er2r u.,,• 1>,•,,
COMPLIANCE IN ACCORDANCE W H OMB CIRCULAR q 133
-5211-NII
considered the City's internal control over compliance with requirements that could have a
SCHEDULE OF FEDERAL AWARDS
direct and material effect on a major federal program in order to determine our auditing
WEAVER
procedures for the purpose of expressing our opinion on compliance and to test and
TIDWELL
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To the Honorable Mayor, City
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Council and City Manager
CERTIFIED PUBLIC
City Of Allen
£ 817,429 5936
ACC
Allen, Texas
OUNTANTI
•HD CONSULTANTS
'
Compliance
We have audited the compliance of the City of Allen (the City), with the types of
compliance requirements described in the U. S. Once of Management and Budget (OMB)
Circular A-133 Compliance Supplement that are applicable to its major federal program
for the year ended September 30, 2001. The City's major federal program is identified in
the summary of auditor's results section of the accompanying schedule of audit findings.
1
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
'AKW
above that are applicable to its major federal program for the year ended September 30,
2001.
Internal Control Over Compliance
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The management of the City of Alan is responsible for establishing and maintaining
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effective internal control over compliance with requirements of laws, regulations, contracts
er2r u.,,• 1>,•,,
and grants applicable to federal programs. In planning and performing our audit, we
-5211-NII
considered the City's internal control over compliance with requirements that could have a
S,v
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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.
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WE"ERANDTIOWELL COM
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BAKER TILLY
I
1 City of Allen, Texas
January 18, 2002
1 Page 2
1 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
1 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
1 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.
1 Schedule of Expenditure of Federal Awards
We have audited the financial statements of the City as of and for the year ended
September 30, 2001, and have issued our report thereon dated January 18, 2002. Our
1 audit was performed for the purpose of forming an opinion on the financial statements
taken as a whole. The accompanying Schedule of Expenditure of Federal Awards is
presented for purposes of additional analysis as required by OMB A-133 and is not a
1 parties
required part of the financial statements. Such Information has been subjected to the
1
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.
1
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
1 parties
1
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
January 18, 2002
1
CITY OF ALLEN, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
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 X No
• Reportable cendition(s) identified
that are not considered to be
material weakness(es)?
-L-Yes _No
Noncompliance material to financial
Statements noted?
_Yes X 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):
CFDA Number Name of Federal Programs or Cluster
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?
X Yes No
5
' CITY OF ALLEN, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
' Section II -Financial Statement Findings
' Finding 001-01
Criteria or Specific Requirement:
An entity should maintain detailed subsidiary information to support significant general ledger account
balances.
' Condition:
( ) Compliance Finding (X) Reportable Condition ( ) Material Weakness.
Context:
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 also be recorded in separate general ledger accounts
' Management'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.
n
I
Section III -Federal Awards Findings and Questioned Costs
There were no findings for the year ended September 30, 2001,
6
' CITY OF ALLEN, TEXAS
CORRECTIVE ACTION PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2001
' Corrective Action Plan
Finding # 01.01
' 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.
' Ac0on Taken:
Management concur with the recommendation and 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
SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
Findings from the Year Ended, September 30, 2000
Compliance Issue
FINDING 2000-1 Delinquent Property Tax Allocation
Condition: Delinquent property taxes, related collections and the associated estimated allowances for non -
collectible amounts were not being allocated to the Debt service fund.
Recommendation: We recommend that the City comply with §28.05 (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.
Current Status: Management's plan to allocate delinquent tax collections to both the General and Debt
Service Funds was adopted during the fiscal year. No similar findings were noted during the audit for the
year ended September 30, 2001
Reportable Conditions
FINDING 2000-2 Fixed Asset Detail Records
Condition: As of September 30, 2000 the City did not have or maintain adequate records pertaining to water
and sewer fund fixed assets and the general fixed assets of the City and its component units.
Recommendation: We recommended 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.
Current Status: The auditors noted that an additional senior accountant position was added to the Finance
Department and that a fixed asset accounting system was implemented. This was also done in preparation
for the City's implementation of the new reporting model under GASB 34.
FINDING 20003 Utilities Receivable
Condition: In performing procedures to audit receivables, the City was unable to provide subsidiary detail or
other information to support or reconcile to the water and sewer fund general ledger account receivable
balances. Accordingly, a significant amount of audit time was required to establish the reasonableness of
the amounts recorded.
Recommendation: 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. In addition, we recommended that accrued unbilled utility receivables be recorded in
separate general ledger amounts.
Management's Response: Similar conditions existed at September 30, 2001. See Item 2001-1 in Section It
— Financial Statement Findings.
SUPPLEMENTARY INFORMATION
CITY OF ALLEN, TEXAS
SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2001
Agency
Federal Grantor/ Federal Grantor or
Passed Through Grantor/ CFDA Pass -Through
Program Title Number Number Expenditures
United States Department of Justice
COPS in School Programs 16.710
COPS Universal Hiring Supplemental Award 16.710
0
1999SHWX0301 $ 169,322
95CFWX4044 273,990
S 443,312
CITY OF ALLEN, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Note 1. General
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal
awards programs of The City of Allen, Texas. The Citys accounting policies and procedures are
defined in the Note 1 to the financial statements. All awards received directly from federal agencies as
well as federal awards passed through other government agencies have been included in the
accompanying schedule.
Note 2. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of
accounting. Under this method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred.
10