Comprehensive Annual Financial ReportComprehensive Annual
Financial Report
For Fiscal Year Ended
September 30, 2002
CITY OF ALLEN
CITY OF ALLEN
ALLEN,TEXAS
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF ALLEN
FISCAL YEAR ENDED
SEPTEMBER 30, 2002
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Exhibit
P89e
INTRODUCTORY SECTION
Letter of Transmittal
I
Government Finance Officers Association
Certificate of Achievement
xii
Organization Chart
xiii
City Officials
AV
FINANCIAL SECTION
Independent Auditor's Report
1
Combined Financial Statements Overview
(General Purpose Financial Statements):
Combined Balance Sheet — All Fund Types, Account
Groups and Discretely Presented Component Units
A-1
4
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances — All Governmental
Fund Types, Expendable Trust Funds, and
Discretely Presented Component Units
A-2
8
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances — Budget (GAAP Basis)
and Actual — General and Debt Service Funds
A-3
10
Combined Statement of Revenues, Expenses and
Changes in Fund Equity — All Proprietary Fund
Types and Nonexpendable Trust Fund
A-4
12
Combined Statement of Cash Flows — All Proprietary
Fund Types and Nonexpendable Trust Fund
A-5
13
Notes to Financial Statements
14
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Combining, Individual Fund and Account Group
Financial Statements and Schedules:
Governmental Fund Types:
General Fund:
Comparative Balance Sheets
Statement of Revenue, Expenditures
and Changes in Fund Balance—
Budget (GAAP Basis) and Actual
Special Revenue Funds:
Combining Balance Sheet
Combining Statement of Revenues,
Expenditures and Changes in
Fund Balances
Debt Service Fund:
Comparative Balance Sheets
Comparative Statements of Revenues,
Expenditures and Changes in
Fund Balance
Statement of Revenues, Expenditures
and Changes in Fund Balance —
Budget (GAAP Basis) and Actual
Capital Project Funds:
Combining Balance Sheet
Combining Statement of Revenues,
Expenditures and Changes in
Fund Balances
Exhibit Page
41
B-1 42
B-2 43
45
C-1 46
C-2
48
51
D-1
52
D-2
53
D-3
54
55
E-1
56
E-2
58
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Exhibit
Paste
Proprietary Fund Types:
Enterprise Funds:
61
Combining Balance Sheet
F-1
62
Combining Statement of Revenues,
Expenses and Changes
in Retained Eamings
F-2
64
Combining Statement of Cash Flows
F-3
66
Water and Sewer Fund:
Comparative Balance Sheets
F-4
68
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-5
69
Comparative Statements of Cash Flows
F-6
70
Solid Waste Fund:
Comparative Balance Sheets
F-7
71
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-8
72
Comparative Statements of Cash Flows
F-9
73
Development Fees Fund:
Comparative Balance Sheets
F-10
74
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-11
75
Comparative Statements of Cash Flows
F-12
76
Drainage Enterprise Fund:
Comparative Balance Sheets
F-13
77
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
F-14
78
Comparative Statements of Cash Flows
F-15
79
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Parks and Recreation Enterprise Fund:
Comparative Balance Sheets
Comparative Statements of Revenues,
Expenses and Changes in
Retained Earnings
Comparative Statements of Cash Flows
Aquatics Enterprise Fund:
Comparative Balance Sheet
Comparative Statements of Revenue,
Expenses and Changes in
Retained Earnings
Comparative Statements of Cash Flows
Internal Service Funds:
Combining Balance Sheet
Combining Statement of Revenues,
Expenses,and Changes
in Retained Earnings
Combining Statement of Cash Flows
Fiduciary Fund Types:
Combining Balance Sheet
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances — Expendable Trust Funds
Comparative Balance Sheets —
Nonexpendable Cemetery Trust Fund
Comparative Statements of Revenues,
Expenses and Changes in Fund Balance —
Nonexpendable Cemetery Trust Fund
Comparative Statements of Cash Flows —
Nonexpendable Cemetery Trust Fund
Exhibit
Pane
F-16
80
F-17
81
F-18
82
F-19 83
F-20 84
F-21 85
87
G-1 88
G-2 89
G-3 90
91
H-1 92
H-2 93
H-3 94
H-4 95
H-5 96
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Exhibit Paue
General Fixed Assets Account Group
97
Comparative Schedules of General
Fixed Assets — By Source
-1
98
Discretely Presented Component Units:
99
AFDC— 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
J-4
103
CITY OF ALLEN, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2002
TABLE OF CONTENTS
Table
Pace
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 Facts
12
121
Demographic Statistics
13
122
II
1
1
1
1 INTRODUCTION
1
1
1
1
1
1
1
1
i
1
1
1
1
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11
I1
March 25, 2003 CITY OF ALLEN
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, 2002, 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.
t 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
auditor's report on the financial statements and schedules. The statistical section includes
' selected financial and demographic information, generally presented on a multi -yew
basis.
' The financial reporting entity includes all the funds and account groups of the primary
government (The City of Allen), as well as all its component units. Component units are
legally separate entities for which the primary government is financially accountable.
The City provides to its citizens those services that have proven to be necessary and
which can be provided by the City at the least cost. Major services provided under
general 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
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.
ALLEN CIVIC PLAZA - 305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042
' 972/727-0100
EMAIL: coa@ci.dlen.mus
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 can 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, 58,790 in 2002,
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 (AFDC) 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 2002, amidst a struggling national economy, Allen continued to benefit from a healthy
level of commercial/industrial development. Sanmina-SCI, a leading global electronic
manufacturing service provider purchased the optical unit of Alcatel and moved into the
288,000 square -foot facility in Allen at 105 Bethany Drive. Sanntina retained 90 Alcatel
employees and projects to have 280 employees in Phase I of the relocation, growing to
over 500 over the next several years. The diversity of Allen's industrial base was
expanded with the location of several defense -related industries. Mustang Technology
Group, an engineering company serving the aerospace industry leased space in the
Bethany Tech Center. Their employee base consists predominately of engineers with
higher-level degrees and extensive experience in defense related industries. Fiber
I
Systems International moved its corporate headquarters and manufacturing operations
' into the Cornerstone Crossing building on the northeast comer of US 75 and Exchange
Parkway. Fiber System's fiber optic connectors are used by the U.S. Military for high-
speed communications systems. The company occupies 50,000 feet and employs 100
' people. The remaining 20,000 square feet in Cornerstone Crossing has been leased to
Velocity Sports Performance, a state-of-the-art training facility for individual or small
group training by world class coaches who also coach professional and amateur athletes.
' Keeping businesses in Allen has always been a high priority of the AFDC. With high
vacancy rates and a variety of office space in Dallas and Richardson, the competition is
' fierce as leases come up for renewal. In 2002, the AEDC successfully negotiated with
Experian, the largest private employer in Allen with 750 employees, to maintain their
primary operation in Allen for at least the next ten years. Experian is a leading provider
' of consumer information and the City of Allen receives sales tax revenues based on their
sales worldwide. Occupying 300,000 square feet, the national data center is a major
contributor to Allen's tax base.
Several existing industries also expanded their operations. Sage Telecom, a provider of
local and long-distance phone services continued to grow as it extended service to eleven
' states and approximately 450,000 customers. The company currently employs 400
people, up 60% from a year ago. Presbyterian Hospital of Allen acquired the adjoining
21 acres south of the existing facility. They also announced a $15 million expansion to
t double the number of beds and add an intensive case unit on their existing 14 -acre site.
Jack Henry & Associates, a company that develops software for the finance and banking
' industry, underwent internal expansion, occupying all the space in their facility that they
had previously subleased.
Several new office/tech projects were also developed. Trammell Crow Company
completed 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 tech tenants. The project added approximately $8
million on the local tax rolls. Richardson Properties announced a 96 -acre master -planned
development, Allen Commerce Center, located along the west side of US 75, north of
' Stacy Road The property is zoned Commercial Corridor, allowing for a mix of office,
light industrial/manufacturing and retail uses.
' With a growing demand for small office space, several new office projects were brought
on-line. JaRyCc completed construction of a 35,000 square foot, first class office
building, The Atrium at 1333 McDermott. The building is fully leased, and includes
' executive business suites. In Allen's Central Business District, Allen realtor, Mike
Williams, built a 3,200 square foot single story office building, which is fully leased with
four tenants. Architect Steve Meier has renovated the former Bank One building at 202
' W. Main in the CBD for officetretail.
In other CBD development, Meier has also purchased the property on the southeast
' comer of Butler and Main and plans to restore the building with a brick fagade to bring
' iii
back the historical integrity of the pharmacy that was once located on the site. The
building will be marketed to office users. Other new CBD developments include The
Salon at Eaton Court, developed by venture capitalist Charles Carter and partner
Kathleen Eaton in a green Victorian style cottage at 102 W. McDermott. The AEDC
works in conjunction with the City of Allen to attract projects that are consistent with the
redevelopment vision for the CBD.
Allen experienced a revitalization of retail with the tum -around of Cottonwood Creek
shopping center and the addition of Big Lots, Dollar Tree Store, and Joe Willy's Bar and
Grill.
In other new retail activity, CVS Pharmacy opened one of their first Texas locations at
the southwest comer of Angel Parkway and Stacy Road. Walmart Neighborhood
Supermarket opened on the southwest comer of Exchange Parkway and Angel Parkway.
On the north side of Twin Creeks Village, 24 Hour Fitness opened a facility.
Allen's tympanies and residents can now take advantage of the services offered at the
Hilton Hotel on the northeast comer of Bethany Drive and U.S. 75. The six -story facility
has 150 guestrooms and approximately 12,000 square feet of conference/meeting space.
The project was completed in August 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.
u : • ; tf�ItI77 I 1 I
Current Year Projects. The City of Allen 2001-2002 Budget for operations and debt
service was a 19.33% increase from the 2000-2001 Budget. This Budget reflects growth
for inflationary cost increases, increases for service level enhancements, infrastructure
maintenance, purchases of capital equipment, capital projects, and an increase in debt
service payments. The budget increase was funded by increases in revenues resulting
from increased property values and the growing economy of the City. At the same time
the City Council has continued lowering the property tax rate for the ninth consecutive
year from a level of $.564 per $100 value in 2000-01 to a level of $.563 per $100 value in
2001-2002. Key accomplishments for the 2001-2002 fiscal year include:
The new Central Fire Station and Administration building was completed
in the spring of 2002.
Renovations were completed on the current Police Station to add a second
story and new wing in the summer of 2002.
iv
I
' The Donald P. Rodenbaugh Natatorium opened 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.
tConstruction of Celebration Park began. The 100 -plus acre park will include 15
soccer fields, 4 baseball diamonds, Kid Mania playground, water spray ground,
' and two fishing lakes.
The design phase of the 55,000 square foot new library and civic center was
' completed with expected completion of construction in the Fall of 2004.
Construction was completed on Stacy Road, from CR 150 to CR 196; two lanes
' of Angel Parkway, from Muir Woods to Main Street, and four lanes from north of
Exchange parkway to Stacy Road; the widening of Malone Road adjacent to
Celebration Park; and on SH 5 (Greenville Avenue) sidewalks.
' Construction was also completed on the Stacy Road Pump Station and on Phase II
of the Mustang Creek improvements.
1
' 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 Chaparral Road Extension,
East Bethany Drive Expansion, East Exchange Parkway Expansion, FM2170
Extension (Main Street), SH5 Expansion and the reconstruction of Ridgemont
'
Drive.
'
Maintenance of alley approaches, replacement of concrete alleys and asphalt
pavement
Traffic Management and Signals
'
v
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 W, 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 decreased 12.34% from 2000-2001. This
decrease is due to a decline from prior year inter -local agreements and declining interest
rates. During the 2000-2001 fiscal year, the City received approximately $8 million in
inter -local agreements for the construction of Stacy Road and the Don Rodenbaugh
Natatorium. Both of these projects are now complete.
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, 2002, 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.
A
The continued 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 $3,445,805,987, which is a 20.9% increase from the
preceding year. The property tax collection rate for fiscal year 2002 was 99.6%. For the
ninth consecutive year the City Council has lowered the property tax rate. See Table 5 in
Statistical Section for tax rate history.
ASSESSED PROPERTY VALUES
(IN MILLIONS)
1998 1999 2000 2001 2002
vii
Increase
Percent of
(Decrease) from
Percent
Revenues
2002 Amount
Total
2001
Change
Ad valorem Taxes
$ 19,806,522
51.62%
$ 3,513,247
21.56%
Franchise taxes
3,270,580
6.52%
431,476
15.20%
Municipal Sales Tax
6,638,270
17.30%
477,909
7.76%
Licenses and Permits
1,484,888
3.87%
(411,979)
-21.72%
Charges for services
1,147,409
2.99%
(141,220)
-10.96%
Fines
1,179,269
3.07%
171,603
17.03%
Gifts and contributions
1,004,720
2.62%
1,002,470
44554.22%
Special assessments
190,109
0.50%
182,796
2499.60%
Intergovernmental
1,592,748
4.15%
(9,399,013)
-85.51%
Interest earned
1,198,197
3.12%
(1,416,456)
-54.17%
Miscellaneous
859,455
2.24%
186,963
27.80%
Total Revenue
$ 38,372,167
100.00%
$ (5,402,204)
-12.34%
The continued 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 $3,445,805,987, which is a 20.9% increase from the
preceding year. The property tax collection rate for fiscal year 2002 was 99.6%. For the
ninth consecutive year the City Council has lowered the property tax rate. See Table 5 in
Statistical Section for tax rate history.
ASSESSED PROPERTY VALUES
(IN MILLIONS)
1998 1999 2000 2001 2002
vii
Franchise tax revenue increased primarily due to a growing population. While Allen is
continuing to grow, construction slowed from the prior year resulting in a 21.72%
decrease in Licenses and Permits and a 10.96% decrease in Charges for Services. The
number of residential and commercial permits, along with inspections, declined when
compared with 2001.
The increase in fines is attributed to continued increase in municipal court activity. The
dramatic increase in Gifts and Contributions over the prior year is due to the recognition
of facilities revenue as new developments were completed. The offsetting expenses are
reflected below in Capital Outlay. Miscellaneous revenue increased 27.80% over the
prior year as a result of increased water tower rental fees in response to more aggressive
collection efforts.
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, 2002, and the amount and percentage of increases and decreases in
relation to prior year's expenditures.
Increases in Current expenditures are primarily related to staff additions and increased
operational costs. General government added 4.5 new positions. Public Safety added 18
new police and fire positions, 9 vehicles, and 2 motorcycles. Public works added 2
positions and l vehicle. Culture and Recreation added 8.5 new positions, 7 vehicles,
various implements and increased maintenance of new park facilities brought on-line in
2002. Community Development added 2 new positions and 2 vehicles. The General
Fund budget for 2001-2002 increased by the equivalent of 35 full-time positions. The
decrease in capital outlay expenditures is predominantly due to the prior year's local
inter -governmental agreements on construction of Stacy Road and the natatorium. These
projects were completed and therefore, expenditures decreased during 2002.
Increase
(Decrease)
Expenditures
2002 Amount
Percent of Total
from 2001
Percent Change
Current
General Government
$ 5,325,097
10.18%
$ 1,009,705
23.40%
Pudic Safety
12,813,503
24.49%
1,916,897
17.59%
Pudic Worts
2,629,347
5.02%
274,570
11.66%
Culture and Recreation
5,423,075
1036%
868,917
19.08%
Community Development
1,522,634
291%
279,839
22.52%
Captal Outlay
16,495,335
3152%
(7,402,445)
30.98%
Debt Service:
Principal Retirement
4,269,098
8.16%
822,601
2387%
Interest
3,851,836
7.36%
484,563
14.39%
Total Expenditures
$ 52,329,925
100.00%
$(1,741,353)
-3.23%
Increases in Current expenditures are primarily related to staff additions and increased
operational costs. General government added 4.5 new positions. Public Safety added 18
new police and fire positions, 9 vehicles, and 2 motorcycles. Public works added 2
positions and l vehicle. Culture and Recreation added 8.5 new positions, 7 vehicles,
various implements and increased maintenance of new park facilities brought on-line in
2002. Community Development added 2 new positions and 2 vehicles. The General
Fund budget for 2001-2002 increased by the equivalent of 35 full-time positions. The
decrease in capital outlay expenditures is predominantly due to the prior year's local
inter -governmental agreements on construction of Stacy Road and the natatorium. These
projects were completed and therefore, expenditures decreased during 2002.
General Fund Balance. The total fund balance of the General Fund of $6,956,066
reflects an increase of $328,075 or 4.95%. The ending fund balance represents 76 days
of operational costs for the 2002-2003 fiscal year General Fund budget. The current
policy requires the City to maintain a fund balance equal to 60 days of operational costs
in the General Fund.
REVENUES AND EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30,
2002 FOR THE GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT
SERVICE FUND, AND CAPITAL PROJECT FUNDS
REVENUES
EXPENDITURES
]38%
TM%
Government.me
Government.
Pn,r
us%
Remmmem
ee%
Pubno
smen.
za.asx
..,tel
Ouuey.3152%
PUNm
ftft 502%
Community
CultureeM
Oevecerm,
reoKelbP
29%
VM%
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 $297,668. 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.
2002 2001
Gross Operating Revenues
(Including Interest Income) $ 14,117,644 $ 13,819,976
Operating Expenses
(Net of Depreciation) 8,404,926 7,679,566
Net Revenues Available for
Debt Service 5,712,718 6,140,410
Annual Debt Service 1,858,456 1,861,484
Coverage 3.07 3.30
ix
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, 2002, the City had $93,424,328 outstanding
bond indebtedness. Of this amount $78,007,619 were general obligation bonds and
$15,416,709 were revenue bonds. All debt is scheduled to retire by 2022. In May 2002,
the City issued $13,000,000 in General Obligation Bonds. Of this amount $7,400,000
was for the new library, $5,056,000 for street projects, and $544,000 for parks and
recreation projects. The government had an upgrade from an A+ to an AA- in its ratings
from Standard & Poor's Corporation. The rating of Moody's Investor Services remained
at an Aa3. 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 $15,695,000 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, diversification, 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
$2,601,670. 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 II, Section 2.20, requires
that the City Council shall designate qualified certified public accountants who, as of the
end of the fiscal year, shall make an independent audit of accounts and other evidences of
financial transactions by the City and submit their report to the Council and the City
Manager. This requirement has been complied with and the independent auditors'
opinion has been included in this report. A report on the audit of the City's federal and
state awards was performed in accordance with the Single Audit Act of 1996, and is
bound under separate cover. 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, 2001. This was the fourth 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, Laci Culbert, 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,
Kevin Hammeke Joanne Stoehr
Director of Finance Assistant Finance Director
1
1
1
1
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, 2001
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.
/�1w��M
President
�j 5ElL t O
�Fxecutive Director
Xii
a
City of Allen
Organizational Chart
I Citizens of Allen I
City Council
Boards and Commissions City Secretary
City Attorney Municipal Judge
City Manager
Assistant to the City Manager
Building and Code Compliance
Community Services
Engineering
Finance
I Municipal Court I
Fire
Human Resources
Information Technology
Library
Parks and Recreation
I Planning and Development I
Police
CITY OF ALLEN, TEXAS
CITY OFFICIALS
CITY OF ALLEN
Council Members
Mayor
Mayor Pro Tem, Place 5
Place 1 Council Member
Place 2 Council Member
Place 3 Council Member
Place 4 Council Member
Place 6 Council Member
Stephen Terrell
Kenneth Fulk
Debbie Stout
Ross Obermeyer
Bill Petty
Susan Bartlemay
Jeff McGregor
Management Staff
City Manager Peter H. Vargas
Finance Director Kevin Hammeke
Assistant Finance Director Joanne Stoehr
CITY OF ALLEN
Xv
1
1
� COMBINED FINANCIAL
STATEMENTS
II I INDEPENDENT AUDITOR'S REPORT
WEAVER
TIDWELL Honorable Mayor and Members of
L L P the City Council
CITY OF ALLEN, TEXAS
CERTIFIED PUBLIC
ACCDUNIANT5
AND CONSULTANTS We have audited the accompanying general-purpose financial statements of the City of Allen,
Texas, (the City) as of and for the year ended September 30, 2002, as listed in the table of
contents. These general purpose financial statements are the responsibility of the City'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.
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The accompanying combining, individual fund and account group
financial statements and schedules listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the
OAuas
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Allen, Texas at September 30, 2002, and
'
the results of its operations and cash flows of its proprietary fund type and nonexpendable trust
12221 rile, u.,,,,
SRU. 14DO
fund for the year then ended in conformity with accounting principles generally accepted in the
D,11-, run.15251-22AO
United States of America.
'
In accordance with Government Auditing Standards, we have also issued our report dated
F 9Z J02 x"'
January 31, 2003 on our consideration of the City's internal control over financial reporting and
POR,,x
r s...b s
con � ..uv.o R
our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.
500
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
8173322905
audit.
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The accompanying combining, individual fund and account group
financial statements and schedules listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the
OAuas
City of Allen, Texas. The combining, individual fund and account group financial statements and
schedules have been subjected to the auditing procedures applied in the audit of the general -
re„. ro""' P1..
purpose financial statements and, in our opinion, are fairly stated in all material respects in
12221 rile, u.,,,,
SRU. 14DO
relation to the general-purpose financial statements taken as a whole.
D,11-, run.15251-22AO
9224901926
The statistical section has not been subjected to the auditing procedures applied in the audit of
F 9Z J02 x"'
the general purpose financialstatements and, accordingly, we express no opinion on such data.
POR,,x
r s...b s
con � ..uv.o R
�(y✓R/
`` GI/", do,I
500
WEAVER AND TIDWELL, L.L.P.
rA., w.,16, n..,, 2rt102-25.
8173322905
Dallas, Texas
P817429 5936
January 31, 2003
AN ,N RDE
BAKER
1294
INTERNATIONAL
,N
r
r
r
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r
r
r
CITY OF ALLEN r
' GENERAL PURPOSE FINANCIAL STATEMENTS
1
1
1
1
3
CITY OF ALLEN, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30,2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
The Notes to Financial Statements
are an integral part of this statement.
4
PROPRIETARY
GOVERNMENTAL FUND TYPES
FUND TYPES
SPECIAL
DEBT
CAPITAL
INTERNAL
ASSETS AND OTHER DEBTS
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE
SERVICE
Cash and cash equivalents
$ 5,818,009
$ 1,954,068 $
1,036,613 $
13,313,443
$ 7,559,053 $
2,146,543
Investments
3,700,000
3,882,251
23,018,192
6,566,806
2,635,010
Receivables, net of allmaonces for
uncollectibles:
Ad valorem taxes
308,706
177.811
Saks taxes
1,158,101
Accounts receivable
9,311
2,376,253
Accrued interest
17,115
25,330
103,710
29,861
6,264
Other
327,379
4,122
62,768
Special assessments
208,796
Due from other funds
147,331
2,041,617
Inventories
44,183
Prepaid items
11,840
Restricted assets:
Cash and cash equivalents
2,369,408
Fixed assets, net where applicable
of accumulated depredation
77,041,547
472,075
Other assets. at cost
47,600
Other debits:
Amount available in debt service fund
Amount to be provided for retirement
of general long-term debt
TOTAL ASSETS AND OTHER DEBTS
$ 11,341,150E
6,018,291 $
1,218,546 $
38,685,758
$ 96,087,479 $
5,259,892
The Notes to Financial Statements
are an integral part of this statement.
4
I
EXHIBIT A•1
I ' (Con inued)
5
486,517
486,517
TOTALS
1,158,101
579,050
579,050
2,316,201
REPORTING ENTITY
FIDUCIARY
FUND TYPES
ACCOUNT GROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
2,441,357
GENERAL GENERAL
GOVERNMENT
6,111
5,810
196,447
367,731
FIXED LONG-TERM
(MEMORANDUM
ECONOMIC
COMMUNITY
384,269
TRUST
ASSETS DEBT
ONLY)
DEVELOPMENT
DEVELOPMENT
2002 2001
$ 1,611,263 $
$
$ 33,438,992 3
154,759 $
2.651,365 $
36,245,116 $ 36,451,313
1,021,617
40,623,776
599,053
2,099,657
43,522,486 42,802,856
I ' (Con inued)
5
486,517
486,517
302,963
1,158,101
579,050
579,050
2,316,201
2,009,005
2,385,564
2,385,564
2,441,357
2,246
184,526
6,111
5,810
196,447
367,731
384,269
384,269
424,761
208,796
208.796
226,800
2,188,948
2,188,948
900.000
44,163
44,183
49,251
11,840
11,840
235,438
2,369,408
2,369,408
2,818,450
145.713,482
223,227,104
7,155,514
230,382,618
199,382,969
47,600
47,600
50,400
1,040,735
1,040.735
1,040,735
848,466
80.283,793
80,283,793
673,784
9,933,784
90.891,361
81,767,065
$ 2,635,026 E 145,713,482 E,
1 E8
7
15,269,666
412.722,089
,3710788253
I ' (Con inued)
5
I
CITY OF ALLEN, TEXAS
'
COMBINED BALANCE SHEET
ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS
PROPRIETARY
SEPTEMBER 30.2002
,
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2001)
GOVERNMENTAL FUND TYPES
Cl
1
The Notes to Financial Statements ,
are an integral Dart of this statement.
6
PROPRIETARY
GOVERNMENTAL FUND TYPES
FUND TYPES
'
SPECIAL
DEBT
CAPITAL
INTERNAL
GENERAL
REVENUE
SERVICE
PROJECTS
ENTERPRISE
SERVICE
'
LIABILITIES
A=oes payable
$ 825,169 $
227.420 $
$
1,308,829 $
1.586.0913 $
305,502
A a,! liabilities
1,576,209
90.645
'
Aobnno com"nsated absomme
55.425
Retainage payable
35,849
428,942
233,891
Duetoo8lerfunds
1,200.000
988.946
Payable from restdcled assets:
'
Current portion of revenue
bolls payable
1.100.000
Aot m xl interest payable
253,031
Utility deposits
961.541
,
Dalemed revenue
]83,]06
3.251,4%
177,811
266,080
Revenue bonds payable
14,316,709
Geneml obligation bands payable
Leases payable
,
Contractual obligaticns
Note payable
Total liabilities
4.385,084
3.514,765
177.811
2,003,551
19,591,289
305,502
,
EQUITY AND OTHER CREDITS
Contributed capital
44,859,706
Investment in general fixed assets
Retained eamings:
Reserved for revenue bond
principal and interest
54,836
Reserved for field enhancement
42.909
ad
Unreserved
31,538,699
4,954.390
Fund baances:
Reserved for encumbrances
680,095
116.480
7,196,059
,
Reserved for debt service
1,040,735
Unreserved:
Designated for censtrualion
5,733,879
Designated for court security ant technology
120,745
t
Designated for library services
4,127
Designated for police services
6,792
Designated for fire services
3,196
Undesignated
6.141,111
2.387.046
20.751.969
'
Total equity and other credos
6.956,066
2,503,526
1,040.735
36.681.907
76.496.190
4,954,390
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS
$ 11,341.150 $
6.018.291 $
1,218.546 $
35.685.755 $
96.087.479 $
5.259,892
'
Cl
1
The Notes to Financial Statements ,
are an integral Dart of this statement.
6
EXHIBIT A-1
44,859,706 46,859,706 46,018,736
145,713,482 145,713.482 7.155,514 152,868,995 132.83,145
1,100,000
1,100.00D
1.040,000
TOTALS
FIDUCIARY
253,031
271,536
REPORTING ENTITY
FUND TYPES
ACCOUNT GROUPS
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
2,022,985
GENERAL
GENERAL
GOVERNMENT
14.316.708
14,316,709
FIXED
LONGTERM
(MEMORANDUM
ECONOMIC COMMUNITY
87,267.619
TRUST
ASSETS
DEBT
ONLY)
DEVELOPMENT DEVELOPMENT
2002 2001
1,347,569
1,347,569
673,784 673,784
2,695,137
1,411,831
$ 2.751 $
$
$ 4,235,767 $
116,959 $ 165,781 $
4,518,507 $ 5.819,781
795,567 10136,605
122237,753
113,569,830
1,888,851
4,824 37.10
1,708,718 1,352,882
36.239,667
36,581,511
1.659,749
1,735,177
1,735.177 1507,000
2,632275
W,713,482 276,978,571
698,682
290,484,336
696.682 1.073,403
$ 2,635.025 $
145,713,482 $ 81,324.528 $ 388284,152 $
9,168,271 $ 15,269,666 $
2,188.68
371,078,825
2.188.948 900,000
44,859,706 46,859,706 46,018,736
145,713,482 145,713.482 7.155,514 152,868,995 132.83,145
1,100,000
1,100.00D
1.040,000
253,031
253,031
271,536
961,561
961.541
852,058
4,479,093
2,022,985
4,479,093
4,160.418
14.316.708
14,316,709
15,404,456
78,007,619
78,007.619
9260.ODD
87,267.619
78.034.64
314,581
314,591
314,591
140,206
1,347,569
1,347,569
673,784 673,784
2,695,137
1,411,831
6,792
6,792
1,572,185
2,751 81,324,528
111,305,581
795,567 10136,605
122237,753
113,569,830
44,859,706 46,859,706 46,018,736
145,713,482 145,713.482 7.155,514 152,868,995 132.83,145
(Concluded)
7
$4,838
54.836
654,858
42,949
42,969
33,043
38,493,069
38,493,089
29,985,239
7,992.634
2,022,985
10,015,619
7,466,737
1,090.735
1,090,735
848,466
8,733,879
8,733.879
3.728.311
120,745
120,745
81,809
4,127
4.127
6,792
6,792
14,214
3,196
3,196
2,898
2,632.275
31,912.401
1,217,190 3,110,076
36.239,667
36,581,511
2,632275
W,713,482 276,978,571
8,372,701 5,133,061
290,484,336
257 508,995
$ 2,635.025 $
145,713,482 $ 81,324.528 $ 388284,152 $
9,168,271 $ 15,269,666 $
412,722,089 $
371,078,825
(Concluded)
7
CITY OF ALLEN, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES. EXPENDABLE TRUST FUNDS
AND DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2D01)
The Notes to Financial Statements
are an integral part of this statement.
Irl
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT
CAPITAL
GENERAL
REVENUE
SERVICE
PROJECTS
REVENUES:
Ad valorem lazes, densities am interest
$ 12,590,583
$
S 7,211,959
$
Franchise taxes
3.270,580
Municipal sales tax
6.575,584
62.706
License, permits am fees
1,484,888
Charge for services
1,147,409
Fin.
1,179269
Gifts am con rRad.ns
1,004,720
Special assessments
180,109
Integovemmental
89.321
696,427
Intsresteamm
181,737
134,429
12.439
761,592
Miscellaneous
479,654
356,783
23.088
Total revenues
27.809,915
1.558.638
7,332.395
1.671216
EXPENDITURES
Current
General gwemment
5,091,235
233.862
Public safety
12,813,503
Public works
2,350,227
269,120
Culture am recrea5on
5,423,075
Community development
1,522,634
Capital outlay
1,004)20
15.490,615
Debt service:
Pnncipal retirement
544.098
3.725.=
Interest am fiscal charges
136.707
3.715.129
Total expenditures
27.691.479
1,273,640
7.440.129
15.724.477
Excess (deficiency) of revenues over.penditures
(81,564)
284.796
1107.7311
(14.053281)
OTHER FINANCING SOURCES (USES):
Proceeds from sale of bonds
13,000,000
Proceeds from mfuiding bonds
Proceeds from capital lease obligation
396,945
Proceeds from contractual obligations
1,062.5118
Payment to refund bod escrow agent
Operating transient to primary gwemment
Operating transient Som canpanre t units
80.000
1,062.588
Operating vansfere fiom other fume
2,054.256
300,000
5.049.567
Operating transfers d other funds
(2.101.562)
1189.2081
(308.958)
Total other firmncingeourcas(Uses)
409,W9
089.208)
300.000
19,865,785
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
328,075
95,59D
192,269
5,812.524
FUND BALANCES, BEGINNING OF YEAR
6.627,991
2,407,936
848,466
30,869,383
Residual equity transfers in
Residual equity transfers out
FUND BALANCES, END OF YEAR
$ 6,956,066
$ 2.503,526
$ 1,040.735
$ 361681,907
The Notes to Financial Statements
are an integral part of this statement.
Irl
I
I t
'
FIDUCIARY
TOTALS
REPORTING ENTRY
4,76,388
FUND TYPE
TOTAL PRIMARY
COMPONENT UNITS
(MEMORANDUM ONLY)
EXPENDABLE
GOVERNMENT
12,813,63
TRUST
(MEMORANDUM
ECONOMIC
COMMUNITY
2,629,347
4n,785
FUND
ONLY)
DEVELOPMENT
DEVELOPMENT
2002
2001
S
S 18,808,522 $
S
$
19,86.522 $
16,293275
1,522,634
3270,580
1,51,756
1,26,663
3.270,580
2,839,104
16,910,103
963,588
6.638.270
3287)82
3,287,782
13213,834
12,253.053
'
1,86.638
1.484.888
6,712,785
4.557.523
5,164,592
4.115.645
1,484.888
1.86.867
3,851,836
141.557
1,147,409
1,147,409
1288,629
52.76,245
3.791,025
1,179,269
58871.099
59,328,635
1,179,269
1,67,568
'
40,36
1,045,116
02.885,4321
(8.426,465)
1,065,116
16,109
25,070
7,313
16,109
1.592.746
13,0)0.000
1,592,748
10.991,761
13,000.06
49,529
1.247,726
32233
6,074
1.36,033
2,948,946
'
774.970
1.834.425
60.734
1.86.159
1350,488
864.895
39,237.62
3,36.749
3.387.856
45.995.867
50.62,170
'
4,76,388
5.325.67
401, 5
5,728.554
12,813,63
12,813,503
10,896,66
2,629,347
4n,785
3,10],132
2,86,663
1
15,552
5,438,627
5,438,627
4.579,663
1,522,634
19,122
1,51,756
1,26,663
414,768
16,910,103
963,588
1,099.528
18.973219
25,697,395
'
4,259,06
1,86.638
637.049
6,712,785
4.557.523
5,164,592
4.115.645
3,851,836
141.557
584.130
430.320
52.76,245
3.791,025
2.319,829
58871.099
59,328,635
'
434,575
(13.523183)
(4182]81
1.048,02]
02.885,4321
(8.426,465)
13,0)0.000
13,000.06
12,155,213
'
8,758,782
398945
36,945
54,275
1,62,588
531294
531,294
2,125,176
1,99'628
(8.68876)
'
(555.29)
(567294)
(1.122.586)
1,171.588
(76,116)
76.116
1.122.588
7,403,823
7,46.823
3205,61
(2.56,728)
(2599.728)
(1868.2261
'
20.385,216
(24,60)
138.061
20.328218
15.511.771
'
43'575
6,863,033
(434276)
1,012,027
7,440,784
7,085.306
2,142,687
42,898463
1,651.46
4,121.034
48.668,963
41,583,657
'
1,63,336
(i 63,338)
'
$2,5]7.262
$ 49p59,496
$ 1,217,16
$ 5,133,61
$ 5816.747
$ 48.668.963
9
EXHIBIT A-2
CITY OF ALLEN, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND DEBT SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2002
EXPENDITURES
Current:
General govemment
Public safety
Public works
Culture and recreation
Community development
Debt service:
Principal refirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Proceeds from capital lease obligation
Operating transfera from component units
Operating transfers from other funds
Operating transfers to other funds
Total other financing sources (uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
10
4,904,767
5,091235
GENERALFUND
13,502292
12,813,503
688,789
2,657,921
VARIANCE -
297,694
5,424,222
5,423,075
FAVORABLE
2,327,608
BUDGET
ACTUAL
(UNFAVORABLE)
REVENUES:
(88,208)
112,433
136,707
Ad valorem taxes, penalties and interest
S 12,389,717
$ 12,594,563
E 204,846
Franchise taxes
3,242,162
3,270,580
28,418
Municipal sales tax
6,628,591
6,575,564
(53,027)
License, permits and fees
1,688.706
1,484,888
(203,818)
Charge for services
1,271,650
1,147,409
(124,241)
Fines
1,125,083
1,179,269
54,186
Intergovernmental
1,444,078
896,321
(547,757)
Interest eamed
177,973
181,737
3,764
Miscellaneous
370,596
479,584
108,988
Total revenues
28,338,556
27,809,915
(528,641)
EXPENDITURES
Current:
General govemment
Public safety
Public works
Culture and recreation
Community development
Debt service:
Principal refirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Proceeds from capital lease obligation
Operating transfera from component units
Operating transfers from other funds
Operating transfers to other funds
Total other financing sources (uses)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
10
4,904,767
5,091235
(96,468)
13,502292
12,813,503
688,789
2,657,921
2,360,227
297,694
5,424,222
5,423,075
1,147
2,327,608
1,522,634
804,974
455,890
644,098
(88,208)
112,433
136,707
(24,274)
29,475,133
27,891,479
1,583,664
(1,136,577)
(81,564)
1,065,013
396,945
396,945
60,000
60,000
2,037,713
2,054,256
16,643
(788,248)
(2,101,662)
(1,313,314)
1,309,465
409,639
(899,826)
172,888
328,075
155,187
6,627,991
6,627,991
$ 6,800,879
$ 8,956,066
S 155,187
EXHIBIT A-3
DEBT SERVICE FUND
vmmuE -
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
S 7,218,481 $ 7,211,959 $ (6,522)
101,840 120,439 18,599
7,320,321 7,332,398 12,077
3,725,000 3,725,000
3,715,004 3,715,129 (125)
7,440,004 7,440,129 (125)
(119,683) (107,731) 11,952
300,000 300,000
300,000 300,000
180,317 192,269 11,952
848,466 848,466
S 1,028,783 $ 1,040,735 $ 11,952
11
I
CITY OF ALLEN, TEXAS
EXHIBIT A4
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY-
'
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30.2M2
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2001)
PROPRIETARY
FIDUCIARY TOTALS
'
FUND TYPES
FUND TYPE (MEMORANDUM ONLY)
INTERNAL
NONEXPENDABLE
ENTERPRISE
SERVICE
TRUST 2002
2001
'
OPERATING REVENUES:
Water sales
$ 9,703,921 $
$
$ 9,703,921 $
9,188,025
SeeerchaWs
3,320,060
3.320,080
2.964.622
Connection fees
288,882
286.882
307.002
Geroage collections
2.889,284
2,889,284
2.438,624
Service charges
1,104,423
3.487.515
4,591,938
3,417,746
Drill age tees
667,268
667,268
610,744
Recreation lees
540,248
540,248
432,423
Miscellaneous
390,060
317,689
707,749
599.135
'
Total opea8rp revenues
18.904,146
3,805204
22.709.350
19,958.321
OPERATING EXPENSES:
3,107,948
5.814
3,162,562
2,070,562
'
Personal services
Contactual services
9.479.702
2,467,587
11,947.289
10.184,623
Maintenance
260,778
2 'Re
776,971
Supplies
217,835
217,835
91,179
Depreciation and amortization
2,644.836
255,605
2,900.241
2,521.455
'
Phar
160.523
180.523
121,217
Total opere6ng expenses
15.871.422
2.777,806
18.649228
15,768.007
OPERATING INCOME
3,032.724
1.027.398
4.060,122
4,188.314
NON-0PERATING REVENUES (EXPENSES):
Interest In.
434.650
88,668
962 524280
1,241,637
Interest expense an revenue bonds
(7991951)
(789.9511
(853,039)
'
Total nonoperefiN mvenues (expenses)
(365,301)
88,668
962 (275.871)
38BA98
INCOME BEFORE CAPITAL CONTRIBUTIONS,
'
DEVELOPMENT FEES, OPERATING TRANSFERS,
AND EXTRAORDINARY ITEM
2,61
1,116,M
962 3.784,451
4,578,912
Capital conuWuOona
4,072,057
4,072,057
4,157.608
'
Development fees
1,706283
1,706,283
1,881,984
Opere6n9tanslemhnmoNerfuttle
24,662
2.662
670.104
0pea0ng aensfers 0 Winer Wrote
(4.827.795)
(962) (4,828.757)
0.907.4791
INCOME BEFORE EXTRAORDINARY REM
3,642,640
1.116,086
4,758,706
9,359217
,
EXTRAORDINARY REM:Oereco9ni9on of liability
1•1152•266
NET INCOME
3,642,640
1,116,066
4,758.706
11,321,483
'
ADD DEPRECIATION ON CONTRIBUTED ASSETS
1,159.030
1.159,030
1.159.030
INCREASE IN RETAINED EARNINGS f FUND BALANCE
4,801,670
1,118,086
5,917,736
12,480513
'
RETAINED EARNINGSIFUND BALANCE, BEGINNING OF YEAR
26,83.814
3.838324
55.013 30.728.151
18.247,638
RETAINED EARNINGSIFUND BALANCE, END OF YEAR
31.636.484
4.954.390
55.013 36.645.887
30.728.151
CONTRIBUTED CAPITAL AT BEGINNING OF YEAR
46,018,736
48018,736
47,177,766
'
Depreciation varseaneE Dom atemew es0ungs
(1.159.030)
(1.159.030)
(1.159.030)
CONTRIBUTED CAPITAL AT END OF YEAR
44,659,706
44,859.706
46,018.738
'
FUND EQUITY AT END OF YEAR
$ 78.498.190 S
4.954.390 $
0,013 $ 81.505,593 $
76.748.887
The Notes to Finantlal Statements
are an magnet part of this statement
,
12
CITY OF ALLEN, TEXAS
COMBINED STATEMENTS OF CASH FLOWS
ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBITAS
PROPRIETARY HDUGARY TOTALS
FUND TYPES FUND TYPE (MEMORANDUM ONLY)
INTERNAL NONEXPEIAABtE
ENTEAFRISE SERVICE TRUST 2102 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operatlng incase f 3,032,724 f 1.027.398 f f 4.060.122 $ 4,188.314
AdjusMents to reconcile opemfinq incase to
net cash provided by operating actl4fies:
Depreciation and amorthatlon
(Increase) decmese In accounts mceivene
t (Increase) decrease in cher receivable
(Increase) decrease In inventories
(Increase) decrease in prepaid assets
Increase (decrease) in accounts payable
' Increase In acomed liabilities
Increase (decrease) in accrued compensated absences
Inaoase In utility deposits
Increase (decrease) mtainage payable
t Total adjustments
Net cash provided by operating ac6vitles
CASH FLOWS FROM NON -CAPITAL FINANCING ACTWITES:
Operating transom fran other funds
Dpemting 68nstem to peal funds
Net cash used in nonrapilal financing eotivides
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTNITIES:
Conlnbutiens from dew"m
P inopal paid on mvenve bad matunfiss
Interest paid
Acqulsitim and construction of caphol assets
Net cash used in capital and mlated financing actrAties
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchass of inwhipient securities
Pnecosds hom the sale and matundes of investment aeAci ies
Interest on investments
Net cash provided by (used In) Investing activities:
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
NON-CASH CAPITAL FINANCING ACTIVITIES:
Contributions of fixed assets ham developer
Derecognition of contracts payable
The Notes to Financial Statements
are an integral part of this statenianl.
2,844,838
255,805
2,900241
2.521,455
(2]],513)
337,104
59.591
(7WQ821)
(47,115)
300.000
252.885
(3051533)
5.88
191189.0911
5,088
(49,251)
154,581
154.581
(154,582)
278,629
(97,148)
1]9,151
241,793
1.029.82
1,029,082
III=
(1.892)
1,147,923
(1.692)
12,404
109,483
12.427256
1091483
112,599
179,727
11,781,581
179727
(200.181)
4,072,866
795,261
4.81
1,579235
7.105,590
1.822,859
8.928,249
5,]5],549
24,662
1,708293
24,682
870.104
(4.827.795)
(962)
(4,828.]57)
(1,904,4]9)
(4.8034331
(982)
(4,841 1
(1237.3]5)
1,]08,293
1,708293
1,861,994
(1.040,000)
(1.040,000)
(998.000)
(818,458)
(918,458)
(8]0.]44)
(9.904,4931 1132.465)
(910361928)
(2,512,519)
(9,059,828) (132,485)
191189.0911
(215182891
(17.88.58)
(4,263,451)
(22,242.04)
(32.097,578)
21,725,094
3,818.441
25,343535
30,518283
519.238
92.739
982
612,939
1288,896
4255.3]8
(5422]11
982
3.714.067
(314,598)
(2.498,]83)
1,147,923
(1,350.870)
1,699,308
12.427256
99816.
55013
13,480,887
11,781,581
$ 9,926,481 $
2.146.543 $
55.013 f
12.130,017
$ 13.80.66]
It 4.072,057 $_$_$ 4,0]2,05] It 4457.686
$_$_$_$_ S 1,952266
13
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
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 signficant 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 economic 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. AEDC and ACDC are
discreetly 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 accounting entity. The operations of each fund are accounted for with
a separate set of self -balancing accounts that comprise its assets, liabilities, fund balance/retained
earnings, revenues and expenditures/expenses. Account groups are a reporting device to account
for certain assets and liabilities of the 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
J
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
' 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 -tern 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 30.2002
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 Propnetary Funds and Other Governmental Entities That Use Proprietary Fund
Accounting, the City applied all FASB statements issued on or before November 30, 1989, unless
they conflict with or contradict GASB pronouncements, and has chosen not to follow FASB
statements issued subsequent to that date. Proprietary funds of the City include the following fund
types:
Enterprise Fund — The Enterprise Funds are used to account for the operations (a) that are
financed and operated in a manner similar to private business enterprises where the intent of the
governing body is that the costs (expenses, including depreciation) of providing goods or services to
the general public on a continuing basis be financed or recovered primarily through user charges; or
(b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, public policy, management
control, accountability or other purposes.
Internal Service Fund — The Internal Service Fund is used to account for the financing of goods or
services provided by one department or agency to other departments 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 capacity 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
accounting. Expendable trust funds account for assets where both the principal and interest may be
spent.
Nonexpendable Trust Fund — The Cemetery Trust Fund is the City's sole nonexpendable trust fund
and is amounted for and reported in essentially the same manner as proprietary fund types using the
same measurement focus and basis of accounting. The trust corpus or principal of the Cemetery
Trust Fund cannot be spent.
16
' CITY OF ALLEN, TEXAS
' NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —(continued)
' Account Groups
Account groups are used to establish accounting control and accountability for the City's general
' fixed assets and general long-term liabilities that are not accounted for in proprietary or trust funds.
The following are the City's account groups:
General Fixed Assets Account Group — This account group is established to account for 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 account for all
' long-term liabilities of the City, except those accounted for in the proprietary fund types.
Cash, Cash Equivalents and Investments
State statutes and policy as established by the City Council authorize the City to invest in certificates
of deposit, direct obligations of the U.S. Treasury, investment pools consisting of such U.S. Treasury
obligations, repurchase agreements, commercial paper and mutual funds. 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:
t 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 2002
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 2002, budget amendments
totaling $1,756,583 for the General Fund were 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 inlerfund receivable and payable
accounts. All legally authorized transfers are appropriately treated as operating transfers and are
included in the results of operations of both govemmental 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.
18
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —(continued)
Special Assessments
The City has the authority to make special assessments to property owners as part of the financing
of capital improvements. Such assessments are recorded in the capital projects fund as receivables
when assessed and are recognized as revenue when both the measurable and available criteria
have been met (generally when collected).
General Fixed Assets
General fixed assets that have been acquired for general governmental purposes are recorded as
expenditures in the governmental funds and capitalized at cost or at estimated historical cost if
purchased or constructed in the general fixed assets account group. Contributed fixed assets are
recorded in general fixed assets at estimated fair market value at the time received. No depreciation
has been provided on general fixed assets, nor has interest been capitalized.
Public domain (infrastructure) general fixed assets contributed by subdividers or other contractors
consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters,
streets and sidewalks, drainage systems, and lighting systems, are not capitalized. Such assets
normally are immovable and of value only to the City; therefore, the purpose of stewardship for these
items is satisfied without recording these assets.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not included in the general fixed asset account group or capitalized in the
proprietary funds.
Proprietary Funds— Property, Plant and Equipment
Property, plant and equipment owned by the proprietary funds is staled at cost or estimated fair
market value at the dale 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
Furniture and fixture
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.
19
CRY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — (continued)
Intergovernmental Revenues
Intergovernmental revenues and related receivables arise through funding received from Federal
and State grants and revenue from inter -local agreements with other governmental entities. Grant
revenue is recognized when the expenditures are made and other related requirements are met.
Vacation and Sick Leave (Compensated Absences)
City employees earn vacation and sick leave, which may either be taken or accumulated, up to
certain amounts, until paid upon retirement or termination. Upon termination or retirement, an
employee is reimbursed up to a maximum number of hours of vacation pay and sick leave based
upon the years of service. Compensated absences pay and related salary payments are accrued
when incurred in proprietary funds and reported as a fund liability. Amounts that are expected to be
liquidated with expendable available financial resources are reported as 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 Equity
Reserves represent those portions of fund equity not appropriable for expenditures or legally
segregated for a specific future use. Designations of fund balances represent tentative management
plans for future use of financial resources. The proprietary funds' contributed capital represents
equity acquired through capital grants or contributions from developers, customers or other funds
prior to October 1, 2000.
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 tern of
the bonds using the effective interest method.
Comparative Data
Comparative total data for the prior year have been presented in selected sections of accompanying
general purpose financial statements in order to provide an understanding of the changes in the
government's financial position and operations.
Memorandum Only—Total Columns
The total columns presented in the general purpose financial statements are captioned
"Memorandum Only" to indicate that they are presented only to facilitate financial analysis. No
consolidating entries or other eliminations were made in the aggregation of the totals; thus, they do
not present consolidated information and do not purport to present financial position, results of
operations or cash flows in conformity with generally accepted accounting principles.
70
I
' CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
' NOTE 2. PROPERTY TAXES
' 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 2002 levy was based was
$3,445,805,987.
Taxes are due on October 1 and are delinquent after the following January 31. Current tax
' collections for the year ended September 30, 2002, were 99.60% of the current tax levy. Property
taxes receivable at September 30, 2002 were $486,517.
' Property taxes levied for 2002 are recorded as receivables, net of estimated uncollectibles. Tax
receivables collected during the current period have been recognized as revenues in 2002. The
remaining receivables are reflected as deferred revenue ($486,517 at September 30, 2002). Taxes
estimated to be collectible within 60 days following the Gose 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, 2002 was $0.5630 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 rale of the previous year.
' NOTE 3. DEPOSITS, INVESTMENTS, AND INVESTMENT POLICIES
' Deposits — State statutes require that all deposits be fully collateralized by U.S. Govemment
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, 2002, with collateral required by the State statutes. At year-end, the carrying amount
of the City's deposits was $7,172,105 and the bank balance was $6,645,392. Of the bank balance,
Federal Depository Insurance covered $200,000 and the remainder was covered by collateral held
by the pledging financial insfi udon's agent in the City's name. The City's petty cash balance at
September 30, 2002, was $5,602.
21
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30. 2002
NOTES. DEPOSITS,INVESTMENTS, AND INVESTMENT POLICIES—(continued)
The carrying amount of deposits for Allen Community Development Corporation (ACDC) and Allen
Economic development Corporation (AEDC), discretely presented component units, were
$1,079,317 and $3,382, respectively, with no corresponding bank balances as they are pooled
with the City's deposits.
Investments — State statutes authorize the City to invest in U.S. Government 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 counterpartys 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, 2002, 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 Citys 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, 2002, the City's investment balances were as follows:
Category
Carrying
Fair
,
1
Amount
Value
U.S. Treasury Bills
$ 8,615,925
$ 8,615,925
$ 8,682,000
Other Government Agency Securities
31,807,850
31,807,850
32,328,134
'
Texpool
29.030.694
29.030.694
$ 40.423.775
$ 69.454.469
$ 70 040.62
,
22
'
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 3. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES - continued
At year-end, AEDC's investment balances were as follows:
Category
Carrying
Fair
1
Amount
Value
Other Government Agency Securities $ 599,053 $
599,053
$ 604,887
Texpool
Q $
151,377
750.430
151.377
$ 756 264
_5$9
At year-end, ACDC's investment balances were as follows:
2001
Additions Transfers
Category
Carrying
Fair
I
Amount
Value
Other Government Agency Securities $ 2,099,657 $
2,099,657
$ 2,125,979
Texpool
$$
1.572.048
3.671.705
1.572.048
3.698.027
NOTE 4. FIXED ASSETS
A summary of changes in general fixed assets at
September 30, 2002, follows:
Balance,
Balance,
October 1,
September 30,
2001
Additions Transfers
2002
Land
$ 16,669,776
$ 3,066,275 $
$ 19,736,051
Buildings and
improvements
14,156,866
14,156,866
Improvements other
than buildings
59,301,914
439,660 16,917,236
76,658,810
Machinery and equipment
13,156,694
1,155,049
14,311,743
Construction in progress
22.615.969
15.151.279 (16.917.236)
20.850.012
Total
1259ni 21
$19872263 $
1A5J134a
At September 30, 2002, construction in progress consisted of utilities construction, street paving and
park improvement projects for which total contract commitments of $10,415,235 have been
encumbered. Future expenditures for capital projects will be funded from unexpended bond proceeds
and additional general obligation bonds. Authorization to issue additional bonds may be requested
from the qualified voters of the City.
23
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTE 4. FIXED ASSETS - continued
A summary of proprietary fund type property, plant and equipment at September 30, 2002, is as follows:
Internal
Enterprise Service
Land $ 822,643 $
Utility plant in service
83,919,885
Pump station
2,528,832
Propnetary
Machinery and equipment
2,335,152
186,665
Furniture and fixture
8,187
Fund Types
Construction in progress
9,051,033
General
Vehicles
464.971
1.346.970
99,130,703
1,533,635
Less accumulated depreciation
( 22.089.1561
( 1.061.560)
Total fixed assets
Activity in the general fixed asset group for the AEDC for the year ended September 30, 2002, follows:
Balance, Balance,
October 1, September 30,
2001 Additions Transfers 2002
Land $ 3,175,300 $ 963,588 $ $ 4,138,888
Buildings and improvements 2,942,598 2,942,598
Furniture and fixture 74,028 74,028
Construction in progress 2.942.598 (2.942.5981
6 t91 92 S 9RASRA $ s 7.151514
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transactions, including current portion, for the year ended September 30,
2002, is as follows:
24
Propnetary
General Lona -Tenn
Debt
Fund Types
Accrued
General
Compensated
Obligation
Lease
Contractual
Revenue
Absences
Bonds
Payable
Oblications
Bonds
Amounts payable
at beginning of year
$ 1,427235
$ 68,409,064
$ 140,206
$ 720,915
$16,444,456
Additions
227,514
13,323,555
396,945
1,174,752
Reductions
( 3.725.0001
(222.5601
( 548.0981
( 1.027.7471
Amounts payable
at end of year
L—L654.ZA2
$ 1 347.569
$ 15.416 709
24
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 5. LONG-TERM DEBT -continued
AEDC ACDC
Sales Tax
Notes Contractual Revenue Contractual
Payable Obligations Bonds Obligations
Amounts payable
at beginning of year $ 1,572,195 $ 360,458 $ 9,625,000 $ 360,458
Additions 585,375 585,375
Reductions ( 1.572.195) ( 272.0491 1365.000) f 272.049)
Amounts payable
at and of year $ $ 673.7(14 9.2fi9.00 $ fi73 784
Long-term debt at September 30, 2002 is composed of the following individual issues:
General Obligation Bonds:
$100,000 Series 1966 Bonds due in annual installments
of $5,000 to $15,000 beginning November 1, 1995
through November 1, 2004; interest at 5.75%. $
$16,053,921 Series 1992 Bonds due in annual installments
of $30,000 to $2,135,000 through September 1, 2007;
interest at 3.0% 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%.
$13,000,000 Series 2002 Bonds due in annual installments
of $175,000 to $1,020,000 through September 1, 2022;
35,000
6,287,619
585,000
5,795,000
8,905,000
12,195,000
10,650,000
20,555,000
interest at 4.2% to 5.5%. 13 000.000
$ 78 007 619
25
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTE5. LONG-TERM DEBT—continued
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a specific development. 1.347.569
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%.
$ 955,000
$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%.
3,155,000
$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%.
11,515,000
Unamortized Bond Discount
( 208.2911
$ 15.416.709
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%. $ 4,530,000
$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%. 4.730.000
E s.2s9.gog
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a specific development. E 573.784
AEDC
Contractual Obligation:
Contractual obligation payable bearing interest of 10% to
12% on unpaid balances payable solely from sales
taxes collected at a speck development. L=Azazu
' CITY OF ALLEN, TEXAS
t NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
' NOTES. LONG-TERM DEBT—continued
t The annual requirements to amortize all debt outstanding (except for the contractual obligations) as of
September 30, 2002, are as follows:
General Sales T"
Years Ending Obligation lease Revenue Revenue
September 30 Bands Pavable Bonds Bonds Total
2003 $ 8,463,574 $ 131,896 $ 1,859,091 S 857,689 E 11,312,250
2004 8,445,262 123,955 1,857,806 848,339 11,275,362
2005 8,422,962 82,542 1,860,131 843,026 11,208,681
2006 8,405,808 5,302 101,234 841,451 11,103.795
2007 8,258,452 2,393 1,848,104 842.983 10,951,932
Subsequent 75,592,614 12,331,410 9,386,470 97,310,494
Less applimble Interest (39,581.053) ( 31,497) ( 5,982,776) ( 4,359,958) ( 49,955,284)
Unamortized bond discount ( 208.2911 ( 206.2911
Principal due L 7E 00] 619 E 314.591 E 15Ita]a9 < o N,(1 ryxl S102.2911,2:12
' 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, 2002, the City had $15,695,000 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 $1,040,735 available to service the general obligation debt at September 30,
2002. 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, 2002.
' (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, 2002, the amount of defeased
revenue bonds outstanding was $955,000.
The City is required by the applicable revenue bond indentures to pledge the net revenues of the
t 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 $41,271 at September 30, 2002 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.
' 27
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTES. LONG-TERM DEBT -continued
(b) Revenue Bonds - continued
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, 2002 of
$1,366,596 are adequate to meet the reserve requirements.
At September 30, 2002, restricted assets, which include Revenue Bond Debt Service and
Reserve Funds, were as follows:
Revenue bond debt service $ 41,271
Revenue bond reserve fund 1,366,596
Utility deposits 961.541
$ 2.369.408
The amount of retained earnings reserved for revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt '
Service and reserve funds $ 1,407,857
Less: '
Accrued interest, payable from restricted assets ( 253,031)
Current maturities of revenue bonds,
Payable from restricted assets ( 1.100.0001
Reserved for revenue bond principal and interest $ 54838 ,
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, 2002 was
3.1 times.
t
(c) Capital Leases
The City acquired office equipment under various leases accounted for as capital leases. These '
leases meet the criteria of a capital lease as defined by Statement of Financial Accounting
Standards No. 13, "Accounting for Leases", which defines a capital lease generally as one which
transfers benefits and risks of ownership to the lessee. The leased assets and related '
obligations are accounted for in the General Fixed Asset Account Group and the General Long -
Term Debt Account Group respectively. As of September 30, 2002, the capitalized cost of the
leased property under capital leases was $419,160. '
28 1
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2002
NOTE 5. LONG-TERM DEBT - continued
(c) Capital Leases — continued
The terms of the leases range from 3 - 5 years and call for monthly and annual payments over the
life of the leases. The future minimum lease payments under the capitalized leases and the net
present value of the future minimum lease payments at September 30, 2002 are as follows:
Years Ending
Annual Lease
September 30,
Payments
2003
$ 131,896
2004
123,955
2005
82,542
2006
5.302
2007
2.393
Future minimum lease payments
346,088
Less amount representing interest
(31,497
Present value of future minimum lease payments
(d) Contractual Obligations
During the year ended September 30, 2002 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.
The amounts reflected as contractual obligations in the City's, AEDC, and ACDC general long-
term debt account groups in the amount of $1,347,569, $673,784, and $673,784, respectively,
as of September 30, 2002. The City, AEDC and ACDC made principal and interest payments
of $680,805, $340,403, and $340,403, respectively, from sales tax collected at the center
during the year.
29
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTES. RETIREMENT PLAN
Plan Description
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS),
one of over 758 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 refire at ages 60 and above with 5 or more years of service or with 20 years of service
regardless of age. A member is vested after 5 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 rate. This rale consists of the normal cost contribution rate and the
prior service contribution rate, both of which are calculated to be a level percent of payroll from year to
year. The normal cost contribution rate finances the currently accruing monetary credits due to the
City matching percent, which are the obligation of the City as of an employee's retirement date, not at
the time the employee's contributions are made. The normal cost contribution rate is the actuarially
determined percent of payroll necessary to satisfy the obligation of the City to each employee at the
time his/her retirement becomes effective. The prior service contribution rate amortizes the unfunded
(over funded) actuarial liability (asset) over the remainder of the plan's 25 -year amortization period.
The unit credit actuarial cost method is used for determining the City contribution rate. Both the
employees and the City make contributions monthly. Since the City needs to know its contribution rate
in advance 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, 2001
valuation is effective for rates beginning January 2003).
30
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE S. RETIREMENT PLAN - continued
Schedule of Actuarial Liabilities and Funding Progress
Actuarial VI tiDat
2001
2000
1989
1998
1997
�1 96
Unit Credit
Actuarial value of assets (1)
$19,247,668
$ 16,375,900
$14,193,181
$11,599,541
$ 9,549,733
$ 7,994,671
Actuarial accrued liability (1)
24,411,636
22,398.483
17,723,052
15,743,031
12,476,918
10,101,605
Percentage funded
79%
73%
80%
75%
77%
79%
Unfunded (Over -funded) Actuarial
Accrued Liability (UAAL)
5164,070
6,020.583
3,572,871
3,873,490
2,827,185
2,107,134
Annual covered payroll (2)
14,778,443
11,938,005
10,994,145
8,986,968
7,274,772
6,888.655
UAAL as a percentage of%
50 %
32 %
43%
40%
31 %
covered payroll
Not Pension Obligation (NPO)
at the beginning of period
Annual pension cost (1):
Annual Required Contribution (ARC) 1,756,563
1,315,729
1,218,421
1,010,079
834.500
706,429
Interest on NPO
Adjustment to ARC
Contributions made (2)
1,758.583
1,315,729
1,218,421
1,1140,079
831,500
708.428
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:
Annual required contribution (ARC)
2002
$ 1,756,583
Actual contribution
1.756.683
Net pension obligation
None
Actuarial cost method
Unit Credit
Amortization method
Level Percent
(to accurately reflect
of Payroll
Remaining amortization period
25 Years — Open Period
Asset valuation method
Amortized Cost
paragraphs 36e and 138)
(to accurately reflect
the requirements of
GASB stmt, No. 25,
paragraphs 36e and 138)
Actuarial Assumptions:
Unit Credit
Investment Rate of Return
8%
Projected Salary Increases
None
Includes Inflation At
None
Cost of Living Adjustments
None
31
2001 2000
$ 1,315,729 $ 1,218,421
1.315.729 1218.421
Unit Credit
Unit Credit
Level of Percent
Level of Percent
of Payroll
of Payroll
25 Years — Open Period
25 Years — Open Period
Amortized Cost
Amortized Cost
(to accurately reflect
(to accurately reflect
the requirements of
the requirements of
GASB stmt, No. 25,
GASB stmt, No. 25,
paragraphs 36e and 138)
paragraphs 36e and 138)
8%
8%
None
None
None
None
None
None
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 7. INTERFUND RECEIVABLES AND PAYABLES
Interfund balances at September 30, 2002 consisted of the following individual fund receivables and
payables:
Fund
Receivable
Payable
Non -bond Capital Projects Fund:
Water& Sewer Fund -
$ 841,617
$
General Fund
1,200,000
Facilities Agreements Fund:
Development Fees Fund
147,331
Water & Sewer Fund:
Non -bond Capital Projects Fund
841.617
Development Fees Fund:
Facilities Agreements Fund
147,331
General Fund:
Non -bond Capital Projects Fund
2.188.948
1.200.000
$ 2 188 948
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 made 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, 2002, the
deferred compensation investments are not 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 2002, the cost of water purchased under this contract was $3,162,182.
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 2002, the cast for transportation, treatment and disposal of sewage and other
wastes was $2,400,511.
004
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 10. SEGMENT DISCLOSURE
The City maintains six Enterprise Funds. The Water and Sewer Fund accounts for water and wastewater
treatment service to the City. The Solid Waste Fund accounts for the collection and disposal of refuse.
The Development Fees Fund accounts for completion of development in new subdivisions.
The Drainage
Fund accounts for the City's storm water management program. The Parks and Recreation Fund
accounts for the City's recreational facilities. The Aquatics Enterprise Fund accounts for the operations
and maintenance of the City's leisure and competitive swimming pools. Key financial information as of
and for the year ended September 30, 2002 for these funds is listed as follows:
Water Solid Development Parks and Aquabcs
and Sever waste Fees Drainage Recreation Enterprise
Fund Fund Fund Fund Fund Fund
Total
Operating revenues $13,823,843 $2,915,489 $ $ 773,400 $ 565,071 $ 826,343
$18,904,146
Operating expenses
(excluding depredation) 8,404,926 2,659,203 469.489 518,282 1,174,886
13,226,788
Depredation and
amoNzsBon 2,476,020 95,225 55,148 10,283 7,950
2.844,636
Operating income Otras) 2,942,897 258,286 ( 95,225) 248,763 36,506 ( 356.503)
3,032,724
Operating transfers in 24,682
Operating transfers out ( 4,634,025) ( 68.612) ( 123,808) ( 5,150)
24,662
( 4,827,795)
Net inccrne(loss) 1,899,441 208,400 1,711,097 140.383 39,277 ( 355,958)
3,642,640
Current assets 12,229,443 1,304,338 4,498,759 780,495 157,975 27,322
18,998.332
Current liabilities 4,605,888 287,835 254,608 49,283 20,096 56,872
5274,560
Net mriking capital 7,623.557 1,016,503 4,244.151 731,212 137,879 ( 29,550)
13.723,752
Total assels 82,863,994 1,304.338 10,181,447 1,499,476 171,099 67,125
96.087,479
Current capital -
4.072.057
conbibutiore 4,072,057
Net property, plant
and equipment 70,586,951 5,682,688 718.981 13,124 39,803
77,041,547
Properly, plant and
equipment addition 8,774,197 1,098,329 151,391 47,763
8,071,880
Bonds and Pi nes
bng-tem liabilities -
payable from
operating revenues 14,318,709
14,316,709
Total equity 63,941,399 1,016,503 9,926,839 1,450,193 151,003 10,253
78,496.190
NOTE 11. 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, 2002, 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 three fiscal years.
1
11 33
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 11. SELF-INSURANCE AND RISK MANAGEMENT -continued
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, 2000 thru
2002 were as follows:
Current Year
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
2002 307,765 2,467,587 2,472,106 303,246
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 entitles, 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 2002, the City contributed $579,315 to the fund for property, general liability, and workers
compensation.
NOTE 12. INTERFUND OPERATING TRANSFERS
Individual fund operating transfers for fiscal year 2002 were as follows:
General Fund:
Water and Sewer Fund
Solid Waste Fund
Drainage Utility Fund
Aquatics Enterprise Fund
Non -Bond Capital Projects
Primary
Component
Government
Unit
Transfer
Transfer
Transfer
Transfer
From
TO
From
TO
Transfer Transfer Component
Component
Primary
Primary
In out unit
Unit
Gnv1
Gov't
$1,881,186 $ $
40,150
123,808
5,150
2,101,562
I
34 1
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 12. INTERFUND OPERATING TRANSFERS -continued
General Fund - continued:
Economic Development Corp.
(Component unit)
Community Development Corp.
(Component unit)
Cemetery Trust Fund
Water and Sewer Fund:
General Fund
Solid Waste Fund
Non -Bond Capital Projects
Solid Waste Fund:
General Fund
Water and Sewer Fund
Drainage Utility Fund:
General Fund
Street Bonds:
Debt Service Fund
Drainage Bonds:
Debt Service Fund
Library Bonds:
Debt Service Fund
Police Bonds:
Debt Service Fund
Fire Bonds:
Debt Service
Park Bonds:
Non -Bond Capital Projects
Debt Service Fund
Aquatics Enterprise Fund:
General Fund
Primary
Component
Government
Unit
Transfer
Transfer
Transfer Transfer
From
TO
From To
Transfer Transfer Component
Component
Primary Primary
In Out Unit
Unit
Gov't Gov't
$ $ $
$
$ $
24,000
36,000
962
1,884,186
24,662
2,749,839
40,150
24,662
123,808
89,746
5,903
23,992
4,903
14,884
8,958
160,572
5,150
35
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 12. INTERFUND OPERATING TRANSFERS - continued
Non -Bond Capital Projects:
General Fund
Water 8 Sewer Fund
Park Bonds
Antenna Rental Fund
Economic Development Corp.
(Component unit)
Community Development Corp.
(Component unit)
Economic Development Corp.:
(Component unit)
General Fund
Non -Bond Capital Projects
Community Development Corp.:
(Component unit)
General Fund
Non -Bond Capital Projects
Antenna Rental Fund:
Non -Bond Capital Projects
Cemetery Trust Fund:
General Fund
Debt Service Fund:
Library Bonds
Police Bonds
Fire Bonds
Street Bonds
Drainage Bonds
Park Bonds
24,000
531,294
Primary
Component
531,294
Government
189,208
'
Unit
Transfer
Transfer
Transfer
Transfer
4,903
14,884
From
To
From
To
Transfer
Transfer Component
Component
Primary
Primary
In
Qut Unit
Unit
Gov't
Gov't
2,101,562
2,749,839
8,958
189,208
631,294
531,294
24,000
531,294
36.000
531,294
'
189,208
'
962
23,992
4,903
14,884
'
89,746
5,903
160.572
$7428485 $7.62A QB5 S 1 t2=
'
L_ $1.122566
1
36
'
1
1
1
1
1
1
CITY OF ALLEN, TEXAS
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30 2002
NOTE 13. 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 314,037 square feet of the
retail shopping center as of September 30, 2002.
NOTE 14. CONTRIBUTED CAPITAL
The City has adopted Government Accounting Standards Board Statement No. 33 and, accordingly, records
capital contributions and development fees within enterprise funds as revenue. Total capital contributions and
development fees in 2002 were $5,778,350 and $1,706,293, respectively. Capital contributions received
prior to October 1, 2000 are reduced by depreciation of assets contributed in those prior years.
Changes in contributed capital in the enterprise funds during 2002 are as follows:
Balance at beginning of year $ 46,018,736
Depreciation on assets contributed prior to October 1, 2000 ( 1,159,030)
Balance at end of year $ 44 859 706
37
CITY OF ALLEN
38
I
1
� FINANCIAL STATEMENTS
1
II
OF
I INDIVIDUAL FUNDS
1
1
1
1
1
1
1
1
1
1
1
I
1
1
1
1
i
1
' COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP FINANCIAL STATEMENTS
' AND SCHEDULES
1
1
1
1
1
1 39
CITY OF ALLEN
I
I
'
40
I
II
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.
1
41
Cash and temporary investments
Investments
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $107,956 in 2002 and $61,988 in 2001)
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 security and technology
Designated for library services
Designated for police services
Designated for fire services
Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCE
42
$ 5,818,009 $
5,883,537
CITY OF ALLEN, TEXAS
EXHIBIT B-1 ,
GENERALFUND
900,000
COMPARATIVE BALANCE SHEETS
186,653
1,004,503
SEPTEMBER 30, 2002 AND 2001
,
7,129
2002 2001'
ASSETS
,
Cash and temporary investments
Investments
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $107,956 in 2002 and $61,988 in 2001)
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 security and technology
Designated for library services
Designated for police services
Designated for fire services
Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCE
42
$ 5,818,009 $
5,883,537
1,576,209
3,700,000
2,183,042
900,000
308,706
1,158,101
186,653
1,004,503
'
17,115
7,129
3,063,661
327,379
418,580
680,095
11,840
8,208
'
11,341,150
9,691,652
6,792
825,169
787,854
1,576,209
1,189,154
1,200,000
900,000
783,706
186,653
4,385,084
3,063,661
680,095
70,616
120,745
81,809
4,127
6,792
14,214
3,196
2,898
6,141,111
6,458,454
6,956,066
6,627,991
$ 11,341,150 $
9,691,652
CITY OF ALLEN, TEXAS EXHIBIT B-2
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET (GAAP -BASIS) AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.21)(H)
Total current expenditures
(96.468)
Excess (deficiency) of revenues over expenditures
13,502.292
OTHER FINANCING SOURCES AND (USES):
2002
Proceeds from capital lease obligation
2001
Operating transfers from other funds
Opereting transfers from component unit
297,694
Operating transfers to other funds
VARIANCE -
Total other framing sources (uses)
1,147
EXCESS OF REVENUES AND OTHER FINANCING
2,327,608
FAVORABLE
'
OTHER FINANCING USES
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES:
FUND BALANCE, END OF YEAR
(24,274)
47,870
1
Ad valorem tares, penalties and interest
$ 12,389,717 $
12,594,563
$ 204,846 $
10,064,655
Franchise fazes
3,242,162
3,270,580
28,418
2,839,104
Municipal sales tax
6,628,591
6,575,564
(53,027)
6,092,692
License, permits and fees
1,688,706
1,484,888
(203,818)
1,896,867
Chargeforservicas
1,271,650
1,147,409
(124,241)
1.288,629
Fines
1,125,083
1,179,269
54,186
1,007,666
Intergovernmental
1,444,078
896,321
(547,757)
538,761
Interest earned
177,973
181,737
3,764
439,240
Miscellaneous
370,596
479,584
108,988
439,403
Total revenues
28,338,556
27,809,915
(528,641)
24,607,017
EXPENDITURES
Current:
General government
Public safety
Public voft
Culture and recreation
Community development
Debt service:
Principal retirement
Interest and fiscal Charges
4,994,767
Total current expenditures
(96.468)
Excess (deficiency) of revenues over expenditures
13,502.292
OTHER FINANCING SOURCES AND (USES):
6118,789
Proceeds from capital lease obligation
2,657,921
Operating transfers from other funds
Opereting transfers from component unit
297,694
Operating transfers to other funds
'
Total other framing sources (uses)
1,147
EXCESS OF REVENUES AND OTHER FINANCING
2,327,608
SOURCES OVER EXPENDITURES AND
'
OTHER FINANCING USES
455,890
FUND BALANCE, BEGINNING OF YEAR
'
Residual equity transfers
112,433
FUND BALANCE, END OF YEAR
(24,274)
47,870
1
27,891,479
1,583,654
23264,763
4,994,767
5,091,235
(96.468)
4,051,058
13,502.292
12,813,503
6118,789
10,896,606
2,657,921
2,300,227
297,694
2,195,779
5,424,222
5,423,075
1,147
4,554,158
2,327,608
1,522,634
804,974
1,242,795
455,890
544,098
(88,208)
276,497
112,433
136,707
(24,274)
47,870
29,475,133
27,891,479
1,583,654
23264,763
11,136,577)
(81,564)
1,055,013
1,342254
396,945
396,945
54,275
2,037,713
2,054,256
16,543
1,680,474
60,000
60,000
60,000
(788,248)
(2,101,562)
(1,313,314)
(1,895,599)
1,309,485
409,639
(899,826)
(100,850)
172,888
328,075
155,187
1,241,404
6,627,991
6,627,991
5,384,609
1,978
$ 6,800,879
$ 6,956,066
$ 155,187
$ 6,627,991
43
CITY OF ALLEN
44
II
SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources (other than expendable
trust or major capital projects) that are legally restricted to expenditures for specific purposes.
Antenna Rental Fund —To account for funds received and expended for capital items for the City.
' Hotel Occupancy Tax Fund — To account for funds received from hotel occupancy tax and expend as
allowed by state law.
Asset Forfeiture Fund - To account for activities associated with assets legally seized and forfeited.
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Accrued interest receivable
Due from other funds
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
11
$==__380,762 $ 82,976 $ 24,023 '
$ 91 $ 1,000 $ 15,333
91 1,000 15,333
380,671 81,976 8,690
$ 380,762 $ 82,976 $ 24,023
M
HOTEL
ANTENNA
OCCUPANCY
ASSET
ASSETS:
RENTAL
TAX
FORFEITURE
Cash and cash equivalents
$ 379,791
$ 74,636
$ 24,023
Investments
Accounts receivable
971
8,340
Accrued interest receivable
Due from other funds
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
11
$==__380,762 $ 82,976 $ 24,023 '
$ 91 $ 1,000 $ 15,333
91 1,000 15,333
380,671 81,976 8,690
$ 380,762 $ 82,976 $ 24,023
M
ALLEN
227,420 $
TOTALS
35,849
ARTS
FACILITIES
3,251,496
3,251,496
ALLIANCE
AGREEMENT
2002
2001
3,514,765
3,647,046
$ 8,530 $
1,467,088 $
1,954,068 $
2,282,745
2,387,046
3,882,251
3,882,251
3,741,987
$ 8,530 $ 5,522,000 $
6,0186291 $
9,311
5,513
25,330
25,330
23,900
147,331
147,331
837
$ 8,530 $
5,522,000 $
6,018,291 $
660541982
$ $ 210,996 $
227,420 $
16,391
35,849
35,849
3,251,496
3,251,496
3,630,655
3,498,341
3,514,765
3,647,046
116,480
116,480
75,955
8,530 1,907,179
2,387,046
2,331,981
$ 8,530 $ 5,522,000 $
6,0186291 $
6,064,982
47
CITY OF ALLEN, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
HOTEL
ANTENNA OCCUPANCY ASSET
RENTAL TAX FORFEITURE
REVENUES:
Hotel / motel taxes $ $ 62,706 $
Gifts and contributions
Interest 8,719 1,034 653
Miscellaneous
Total revenues
EXPENDITURES:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES USES:
Operating transfers to other funds
Total other financing uses
Excess (deficiency) of revenues over
expenditures and other financing uses
FUND BALANCES, BEGINNING OF YEAR
Residual equity transfers out
FUND BALANCES, END OF YEAR
318,711 38,072
327,430 63,740 38,725
179,324 44,349 44,624
179,324 44,349 44,624
148,106 19,391 (5,899)
(189,208)
(189,208)
(41,102) 19,391 (5,899)
421,773 62,585 14,589
It 380,671 $ 81,976 $ 8,690
48
EXHIBIT C-2
ALLEN TOTALS
ARTS FACILITIES
ALLIANCE AGREEMENT 2002 2001
$ $ $ 62,706 $ 67,669
1,004,720 1,004,720 2,250
176 123,847 134,429 273,436
356,783 202,448
176 1,128,567 1,558,638 545,803
823
123,847
269,120
158,998
9,177
1,004,720
1,004,720
2,250
(31,870)
823
1,004,720
1,273,840
161,248
2,023,659 $
2,503,526
$ 2,407,936
(647)
123,847
284,798
384,555
(189,208)
(189,208)
(647)
123,847
95,590
384,555
9,177
1,899,812
2,407,936
2,055,251
(31,870)
$ 8,530 $
2,023,659 $
2,503,526
$ 2,407,936
49
CITY OF ALLEN
Ins
I
I
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.
1
1
1
1
1
51
CITY OF ALLEN, TEXAS EXHIBIT D-1
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30.2002 AND 2001
r1111
52
2002
2001
ASSETS:
Cash and cash equivalents
$
1,036,613
$
452,854
Investments
390,618
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $71,216 in 2002 and $42,609 in 2001)
177,811
116,310
Accrued interest receivable
4,466
Other receivables
4,122
528
Total assets
$
1,218,546
$
964,776
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Deferred revenue
$
177,811
$
116,310
FUND BALANCE:
Reserved for debt service
1,040,735
848,466
TOTAL LIABILITIES AND FUND BALANCE
$
1,218,546
$
964,776
52
CITY OF ALLEN, TEXAS EXHIBIT D-2
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
53
2002
$ 7,211,959
120,439
7,332,398
6,228,620
205,379
6,433,999
3,725,000
REVENUES:
3,715,129
Ad valorem tax
'
Interest
7,440,129
Total revenues
'
(107,731)
EXPENDITURES:
300,000
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
70,082
OTHER FINANCING SOURCES AND (USES):
Operating transfers from other funds
14,678
Proceeds from refunding tonds
833,788
Payment to refund bond escrow agent
$ 1,040,735
financing
Total other sources
EXCESS OF REVENUES AND OTHER
'
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
53
2002
$ 7,211,959
120,439
7,332,398
6,228,620
205,379
6,433,999
3,725,000
3,170,000
3,715,129
3,319,403
7,440,129
6,489,403
(107,731)
(55,404)
300,000
8,758,782
(8,688,700)
300,000
70,082
192,269
14,678
848,466
833,788
$ 1,040,735
$ 848,466
CITY OF ALLEN, TEXAS EXHIBIT D-3
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET (GAAP -BASIS) AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
2002 2001
REVENUES:
Ad valorem tax
Interest
Total revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES AND (USES):
Operating transfers from other funds
Proceeds from refunding bonds
Payment to refund bond escrow agent
Total other financing sources
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCES BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
3,725,000
3,725,000
VARIANCE -
3,170,000
3,715,004
3,715,129
FAVORABLE
3,319,403
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
7,440,129
(125)
6,489,403
$ 7,218,481
7,211,959
$ (6,522)
6,228,620
101,840
120,439
18,599
205,379
7,320,321
7,332,398
12,077
6,433,999
3,725,000
3,725,000
3,170,000
3,715,004
3,715,129
(125)
3,319,403
7,440,004
7,440,129
(125)
6,489,403
(119,683) (107,731) 11,952 (55,404)
300,000 300,000
8,758,782
(8,688,700)
300,000 300,000 70,082
180,317 192,269 11,952 14,678
848,466 848,466 833,788
$ 1,028,783 $ 1,040,735 $ 11,952 $ 848,466
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.
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 Citys
parks. These improvements and enlargements are funded by general obligation bond proceeds, state grants
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 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.
1 55
CITY OF ALLEN, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
ASSETS
Cash and cash epuivalenls
Inveslmenis
Accrued interest receivable
Special assessments receivable
Due hen other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Acmunts payable
Retainage payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES:
Reserved fpr encumbrances
Unreserved:
Designated for capital Projects
Undesignaled
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
CAPITAL SPECIAL FIRE STREET
PROJECTS ASSESSMENTS STATION IMPROVEMENTS
$ 4,421,300 $ 465,515 $ 755,409 $ 2,748,328
4,142,286 600.000 7,445,931
10,228 789 37,705
208,796
2,041,617
$ 10.615.431 $ 1,276,100 $ 755.409 $ 10231,964
$ 325,005 $
183,710 $
3,722 $
19,689
98,345
20,830
22,875
42,520
266,080
423,350
470M
28,597
82,209
1,458,202
15,000
23,811
3.230,404
8.733,879
790,480
705,001
6,939,351
10,192,081
805,480
728,812
10,169,755
E 10.615.431 $
1,278,100 E
755,409 $
10231,964
M
EXHIBIT E-1
$ 789,925 $
10 $
6,766 $
$
TOTALS
3, .240
PARK
6.659
DRAINAGE
IMPROVEMENTS
LIBRARY
POLICE
IMPROVEMENTS
2002
2001
1.007,638
10
13,427
2,003,851
$ 2,351,196 $
2,157,529 $
36,818
376,048 $
13,313,443 $
12,58208
5,350.386
5,479,589
580,992
19,586
23,018,192
21,785,530
18,639
36.349
103.710
186,589
3,728,311
4845,759
7,092,765
3,805
208.796
226.80D
20.081,850
6,712,683
2,041,617
600.000
S 7.720 ,221 $
7,673.767 $
36,818
$ 376,048 $
38.685.758 $
35,381,777
7,673,767 $
36,818 $
$ 789,925 $
10 $
6,766 $
$
1.4W.942 $
3, .240
237,713
6.659
266.080
226.800
1.007,638
10
13,427
2,003,851
4,512,394
1,866,824
580,992
19,586
1,240
7,196,059
7,059,222
8,733,879
3,728,311
4845,759
7,092,765
3,805
374.808
20751,969
20.081,850
6,712,683
7673,757
23,394
376,048
36,681,907
30,869,383
$ 7,720,221 $
7,673,767 $
36,818 $
376.048 $
38,685,758 $
35.381 ,77
57
CRY OF ALLEN, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2002 '
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30 2001)
REVENUE
Special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES:
Capital outlay
Other
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers from component ung
Operating transfers from other funds
Operating transfers to other funds
Proceeds from contractual obligations
Proceeds from sale of bonds
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 in
Residual equity transfers out
FUND BALANCES, END OF YEAR
CAPITAL
SPECIAL
FIRE
STREET
PROJECTS
ASSESSMENTS
STATION
IMPROVEMENTS
'
$
$ 190,109
$
$
898,127
'
156,320
34,972
41,031
178,719
23.088
875,835
225,081
41.031
178.719
2,878,485
997,926
1,656,150
1,626,048
'
156,218
2,711
27,101
3,034,703
997,926
1,658,861
1,553,149
,
(2,158,868)
(772,845)
(1,617,830)
(1,374,430)
1,062,588
5,049,567
(14.884)
(89,746)
1,062,588
,
5.056.000
7.174.743
(14,884)
4.966,254
'
5,015,875
(772,845)
(1,632,714)
3,591,824
'
5,176,206
1,578,325
2,361,526
6,577,931
1
$ 10.192.081
$ 805,480
11 728.812
$ 10.169.755
t
1
1
58 1
EXHIBIT E-2
PARK
DRAINAGE
1,062,588
16.116
IMPROVEMENTS
LIBRARY
POLICE
IMPROVEMENTS
2002
2001
(169,530)
(23,992)
(4,903)
(5,903)
$
$ $
$ $
190,109 $
7,313
1,062,588
1,994,826
544,000
7M,000
696,427
10,453,000
232,728
78.576
31,457
7,789
761,592
1,696,598
19,865,785
15,618,655
(3,548,329)
5,495,151
23,088
30,641
232,728
78,576
31,457
7,789
1,671,216
12,187,552
30,869,383
27,193,148
4,149,486
1,920,142
2,355,018
7,360
15,490,615
23,895,530
6,041
39,291
2.500
E 6,712.583 E
233,882
264,334
4,155,527
1,959,433
2,357,518
7,360
15,724,477
24,159,864
(3,922,799) (1,880,857) (2,326,061) 429 (14,053261) (11,972,312)
59
1,062,588
16.116
5,049,567
1,525,127
(169,530)
(23,992)
(4,903)
(5,903)
(308,958)
(72,627)
1,062,588
1,994,826
544,000
7M,000
13,000,000
12,155,213
374,470
7,376,008
(4,903)
(5,903)
19,865,785
15,618,655
(3,548,329)
5,495,151
(2,330.964)
(5,474)
5,812,524
3,646,343
10260,912
2,178,606
2,354,355
381,522
30,869,383
27,193,148
1,931,358
(1,901,466)
E 6,712.583 E
7.673.757
$ 23,391
§ 376.048 E
36.681 ,907
$ 30,889,383
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.
[:SI
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
ASSETS
CURRENT ASSETS:
Cash and rash equivalents
Investments
Receivables, net of allowance low
uncollectbes:
A=ounts
Accrued interest
Other
Inventones
Prepaid items
Restricted cash and cash equivalents
Total current assets
FIXED ASSETS, net accumulated depreciation
OTHER ASSETS, at oosl
TOTALASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Accrued compensated absences
Due so other funds
Retainage payable
Payable from restricted assets:
Revenue bonds payable
Accrued interest payable
Utility deposits
Total ounent liabilities
Revenue bonds payable
Total liabilities
FUND EQUITY
Contributed capital
Retained earnings:
Reserved for revenue bond principal and interest
Reserved for field enhancement
Unreserved
Total retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
62
WATER AND
SOLID
DEVELOPMENT
SEWER
WASTE
FEES
71,520
3,899
$ 3,199,371 $
1,114,244
It 2,321,669
4,399,952
128.730
2,166.854
2,196,904
137,325
287,835
19,625
1,100,000
10,236
52,768
44,183
961.541
2,369,408
4.605.888
287,535
12,229,443
1,304,338
4,498,759
70,586,951
18.922,595
5,682,688
47,600
37,877,934
$ 82,863.994 $
1,304,338
$ 10,101,447
3 1,213,396 It
271,993 $
2,116
36,049
11,943
71,520
3,899
841,817
147,331
128.730
105.161
2,291,314
287,835
254,608
1,100,000
253,031
961.541
4.605.888
287,535
254,608
14.316,709
18.922,595
287.835
251.608
37,877,934
6,981,772
54,836
28.008.629
1,016,503
2.945.067
26.063,465
1,016.503
2.945,067
63,941,399
1.016.503
9.926,839
It 62.863,994 It
1.304,338 $
10,181.447
EXHIBIT F-1
TOTALS
PARKS AND AQUATICS
DRAINAGE RECREATION ENTERPRISE 2002 2001
E 742,489 E
153,958 E
27,322 E
7,559,053 E
9,608,804
3,408
9,014
30,231
6,566,806
10,302,944
38,006
4,017
2,376,253
2,098,740
29,861
114,448
52,768
5,653
49,283
20,096
56,872
44,183
49,251
1,100,000
154,582
2,369,408
2,818,450
780,495
157,975
27,322
18,998,332
25,152,872
718,981
13,124
39,803
77,041,547
66,694,609
47,600
50,400
E 1,499,476 E
171.099 E
67,125 E
96.087.479 E
91.897.881
S 40,866 E
11,082 $
26,641 E
1,566,096 $
1,289,467
3,408
9,014
30,231
90,645
50,531
5,009
80,428
82,120
988,948
233.891
54.163
49,283
20,096
56,872
2,960,008
1,476,281
1,100,000
1,040,000
253,031
271,538
961,541
852,058
49,283
20,096
56,872
5,274,580
3,639,875
14,316,709
15,404,456
49,283
20,098
58,872
19,591,289
19,044,331
44,859,706
46,018,736
54.836
654,856
42,949
42,949
33,043
1,450,193
108.054
10,253
31,538,699
26,146,915
1,450,193
151,003
10,253
31,636,484
26,834,814
1.450,193
151.003
10,253
76,496,190
72,853,550
S 1.499.476 S
171.099 $,_S7
S
96.087.479 E
91,897,881
i
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEAR ENDED SEPTEMBER 30.2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30.2001)
OPERATING REVENUES:
Water sales
Sewer cilarges
Connection fees
Garbage collections
Service charges
Drainage fees
Recreation fees
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual services
Maintenance
Supplies
Depreciation and amortiration
Ofer
Total operating expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Interest income
Interest expense
Total non-operating revenue (expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS,
DEVELOPMENT FEES, OPERATING TRANSFERS,
AND EXTRAORDINARY ITEM
Capital contrbutions
Development fees
Operating transfers from afar funds
Operating transfers to other funds
INCOME BEFORE EXTRAORDINARY ITEM
EXTRAORDINARY ITEM:
Derecognition of liability
NET INCOME (LOSS)
Add depreciation on contrbuted assets
Inorease (decrease) in retained earnings
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
Contributed capital at beginning of year
Depreciation transferred from retained earnings
Contributed capital at and of year
FUND EQUITY AT END OF YEAR
WATERAND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 9,703,921 $ $
3,320,060
288.882
2,989,284
177,o77
64
333,903 26.205
13.823.843 2.915489
1,788,390
104.582
1,711,087
6,326.704
2.500,158
135,517
208,400
1,711,097
96,419
5.820
1,233,970
2,476,020
1,016,503
95,225
57,896
48,643
6,981,772
10880,946
2.659.203
95.225
2942,897
256,286
(95225)
E 83.941.399 $
293,801
16.926
100,029
(799,951)
(506,160)
16,926
100,029
2,436,747
273.212
4,804
4,072,057
1,706,293
24,662
(4.634,025)
(64612)
1,899,441
208,400
1,711,097
1,899,441
208,400
1,711,087
1,159,030
3,058,471
208,400
1,711,097
23,004.994
808,103
1,233,970
26.063,465
1,016,503
2 945,067
39,036,964
6,981,772
(1,159,0301
37877,934
6,981,772
E 83.941.399 $
1,016,503 E
9.926,839
101MUM
264,191
39.277
(350,508)
TOTALS
3,961,232
PARKS AND
AOUATICS
4,072,057
DRAINAGE
RECREATION
ENTERPRISE
2002
2001
$
$
E
$ 9,703,921
$ 9,186,025
282,520
(123,808)
3.320,060
2,964,622
(1,907,479)
140,383
39,277
288,882
307,002
8,355,953
2,889,284
2,438.624
106,132
140,383
621214
1,104,423
678,205
667,268
667,268
610,744
1,159,030
540,248
39,277
540,248
432,423
11,477,249
24,823
5,129
390,060
217,180
773,400
585,071
826,343
18,904,146
16,834,825
28.834,814
48,018,738
203.793
255,633
755,550
3,107,948
2,021,721
95.619
257,658
299,563
9,479,702
7,820.693
104,920
$ 1,450.193 $
20,341
260,778
778,971
16,164
99.432
217,835
91,179
55.148
10,283
7,960
2,644,636
2,287,927
48,993
4,991
160.523
120.233
524.837
528.565
1.182.846
15.871.422
13,120.724
248.763
36.506
(366,503)
3.032,724
3,714,101
15,428
2,771
5,695
434,650
1,100,170
1799,951)
(853.039)
15,428
2.771
5,695
1365.3011
247,131
264,191
39.277
(350,508)
2,667,423
3,961,232
4,072,057
4,157,686
1,706293
1.861,994
24,662
282,520
(123,808)
(5,150)
(4,827,795)
(1,907,479)
140,383
39,277
(355,958)
3,642,840
8,355,953
1,962,266
140,383
39,277
(355,958)
3,642,640
10,318,219
1,159,030
1,159,030
140,383
39,277
(355,958)
4,801,670
11,477,249
1,309,810
111,726
366,211
26,834,814
15,357,665
1,450,193
151,003
10,253
31,636,484
28.834,814
48,018,738
47,177.766
(1,159,030)
(1,159.030)
44.869.706
46,018,736
$ 1,450.193 $
151.003
$ 10.253
$ 78,498.190
$ 72.853.550
65
CITY OF ALLEN, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
Change in assets and liabilities:
(Increase) in accounts receivable
(Increase) in other receivables
(Increase) decrease in inventories
(Increase) decrease in prepaid items
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in compensated absences
Increase in utility deposits
Increase (decrease) in retainage payable
Total adjustments
Net cash provided by (used In) operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
Operating transfers to other funds
Net cash used in non -capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Contributions fmm developers
Principal paid on revenue bond maturities
Interest paid
Acquisition of capital assets
Net cash used in capital and related financial activities
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 (wed 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
WATER AND SOLID DEVELOPMENT
SEWER WASTE FEES
$ 2,942,897 $ 256,286 $ (95,225)
2,476,020 95,225
(254,996)
(16,462)
(4,534,152)
(47,115)
5,068
4,966,854
367,284
154,581
106,685
298,629
71,602
(79,171)
843,356
5,341
147,331
(3,531)
1,544
8,570,085
109,483
1,830,371
121,286
1,114,244
83,786
3,749,896
14,910
247,171
6,692,793
271,196
151,946
24,662
(4,634,025) (64,812)
(4,609,363) (64,812)
1,706,293
(1,040,000)
(818,456)
(6.796.980) (1,908,328)
(8,655,436) (202,035)
(13,554,804)
100,000
(4,534,152)
16,758,240
4,966,854
367,284
18,980
106,685
3,570,720
1181980
541,387
(3,001,286)
325,364
491298
8,570,085
788,880
1,830,371
$ 5.568.779 $
1,114,244
$
2,321,669
$ 4,072,057 $
S
$ $
$
EXHIBIT F-3
TOTALS
PARKS AND AQUATICS
DRAINAGE RECREATION ENTERPRISE 2002 2001
$ 248,763 $ 36.506 $ (356,503) $ 3.032,724 $ 3,714,101
55,148
10,283
7,960
2,644,636
2,287,927
(2,038)
(4,017)
.3,166
(277,513)
(427,122)
519.238
1.121,685
15.428
(47,115)
(5,533)
4.255.376
(117.086)
5,068
(49,251)
(343,119)
(2,498,793)
154,581
(154,582)
(33,601)
(5,375)
24,545
276,629
241,793
(SM
5,487
28,097
1,029,062
(16,453)
295
$
$
(1,692)
10,049
4,072,057 $
4,157,666
$
109,483
112,599
(25.345)
$
1,962,266
179,727
(200.181)
(6.091)
6,378
60,602
4,072,866
1.799,246
242,672
42,884
(295,901)
7,105.590
5,513,347
24,662 282,520
(123,808) (51150) (4,827,795) (1,907,479)
(123,808) (5,150) (4,803,133) (1,624,959)
1,706,293 1,861,994
(1,040,000) (995,000)
(818,456) (870,744)
(151,392) (47,763) (8,904,463) (2,208,834)
(151,392) (47,763) (9,056,626) (2,212.584)
(17,988,956) (31,571,997)
67
21,725,094
30,333,226
15,428
.3,166
5.695
519.238
1.121,685
15.428
3.166
5.695
4.255.376
(117.086)
(17,100)
46,050
(343,119)
(2,498,793)
1,558,718
759.589
107.908
370,441
12.427,254
10.868,536
$ 742,489
$ 153.958
$ 27,322
$
9,928,461 $
12.427,254
$
$
$
$
4,072,057 $
4,157,666
$
S
5
$
$
1,962,266
67
CITY OF ALLEN, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30.2002 AND 2001
E 1,213,398 E
EXHIBIT F-4
Accrued lubili8ea
2002
2001
ASSETS
71,520
75,051
CURRENT ASSETS:
128,730
7,444
Cash am Cash equivalents
E 3,199,371 E
5,751,615
Imesbcents
4,399.952
7,803.388
Receivables, net of allewanca for uncollectibles:
1,100,000
1,040,000
Accounts
2.196.904
1,941.908
Aooned interest
19.625
93,107
Imantaries
44.183
49,251
Prepaid items
14.316.709
154.582
Restricted rash and cash equivalents
2,369,408
2.818450
Total current assets
12,229,443
18.412.301
FIXED ASSETS:
37,877,934
39,036,964
Land
562.653
341.850
Utility plant and service
8,040.997
70,34$502
Pump station
2,528,832
2,528,832
Machinery and equipment
2,372,148
1,988,540
Furniture and future
8.187
80.841582
Construction in progress
6,267.130
5,703.186
91,779.947
80.910,910
Less: accumulated depredation
(21,192.996)
(18.732,029)
Total feed assets, net
70,581l
62,178,881
Other assets: - unumoNred bond Issue Goss
47.600
50.400
TOTALASSETS
E 82.863.994 E
80.641.582
LABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
A nts payable
E 1,213,398 E
914,769
Accrued lubili8ea
36,048
34,310
A rued compensaWd absences
71,520
75,051
Resinage payable
128,730
7,444
Due to other funds
841.617
Payable from restricted asses:
Revenue bonds payable
1,100,000
1,040,000
A.adintereslpayabie
253.031
271,536
Utility deposits
961.541
852.058
Total ourrent liabilities
4,805,886
3,195,168
Revenue bonds payable
14.316.709
15.404.458
Total liabilities
18.922,595
18599.624
FUND EQUITY.
Cohnia,w capital
37,877,934
39,036,964
Retained earnings:
Reserved for revenue bond principal and Interest
54.836
654,856
Unreserved
28.008.629
22.350.138
TOW] fund equsy
63.941,399
82.041.958
TOTAL LIABILITIES AND FUND EQUITY
E 82.863.994 E
80.841582
0
'
CITY OF ALLEN, TEXAS
EXHIBIT F-5
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
'
FOR THE YEARS ENDED SEPTEMBER 30,2002 AND 2001
2002
2001
'
OPERATING REVENUES:
Water sales
$ 9,703,921
$ 9,186,025
Sewer charges
3,320,080
2,9134,622
'
Connection fees
Service charges
288,882
177,077
307,002
386.453
Miscellaneous
333.903
182.934
'
Total operating revenues
13,823.843
13.007,036
OPERATING EXPENSES:
Personal services
1,788,390
1,458,762
Contractual and other services
6,326,704
5,465,201
'
Maintenance
135,517
643,565
Supplies
96,419
65,713
Depreciation and amorbza0w
2,476,020
2,167,022
'
Other
57.8%
48.325
Total operating expenses
10.880.946
9.846.588
OPERATING INCOME
2.942.897
3.160.448
NON-OPERATING REVENUES (EXPENSES):
Interest income
293,801
812,940
'
Interest expense
(799,951)
(853,039)
Total non-operating expense
(506.150)
(40,099)
'
INCOME BEFORE CAPITAL CONTRIBUTIONS,
OPERATING TRANSFERS, AND EXTRAORDINARY ITEM
2,436,747
3,120.349
Capital contributions
4,072,057
4,157,686
'
Operating transfers from other funds
24,662
62,520
Operating trawlers to other funds
(4.634.025)
(1,574.035)
INCOME BEFORE EXTRAORDINARY ITEM
1,899,441
5,768,520
EXTRAORDINARY ITEM:
Derewgnition of liability
1,962,266
'
NET INCOME
1,899,441
7,728,786
ADD DEPRECIATION ON CONTRIBUTED ASSETS
1,159.030
1.159,030
'
Increase in retained samings
3.058,471
8,887,816
RETAINED EARNINGS. BEGINNING OF YEAR
23.004.994
14.117,176
'
RETAINED EARNINGS, END OF YEAR
26,063.465
23.004,994
Contributed capital at beginning of year
39,036,964
40,195,994
Depredation transferred from retained earnings
Contributed
(1.159.030)
(1,159,030)
capital at and of year
37.877,934
39,036,964
1
FUND EQUITY AT END OF YEAR
S 63.941,399
$ 62,041,958
'
69
CITY OF ALLEN, TEXAS
EXHIBIT F-6 ,
WATER AND SEWER ENTERPRISE FUNDS
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30.2002 AND 2001
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income $ 2,942,897 $ 3,160,448
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and anariization expense
Change in assets and liabilities:
(Increase) in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
Increase (decrease) in accounts payable
Increase In accrued liabilities
Increase (decrease) in compensated absences
Increase In utility deposits
Increase (decrease) in retainage payable
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
Operating transfers to other funds
Net cash used in non -capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from issuance of revenue bonds
Principal paid on revenue land maturities
Interest paid
Acquisition of capital assets
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from the sale and maturities of investment securities
Interest on Investments
Not cash provided by investing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
NON-CASH FINANCING ACTIVITIES:
Contributions of fixed assets from developers
Derecognition of contracts payable
70
2,476,020
(254,996)
5,068
154,581
298,629
843,356
(3,531)
109,483
121.286
3.749.896
6,692,793
2,167,022
(326,152)
(49,251)
(154,582)
(1,313)
7,278
11,853
112,599
(193,282)
1,574,172
4,734,620
24,662
62,520
(4,634,025)
(1,574,035)
'
(4609,363)
(11511,515)
(1,040,000)
(995,000)
(818,456)(870,744)
(6,796,980)
(1,029,737)
'
(8,655,436)
(2895,481)
'
(13,554.804)
(28,740,739)
16,768,240
28,645,334
'
367,284
818,319
3,570,720
722,914
'
(3,001,286)
1,050,538
8,570,065
7519,527
'
$ 5,568,779
$ 8,570,065
'
$ 4,072.057
$ 4,157,686
$
$ __f962
'
CITY OF ALLEN, TEXAS EXHIBIT F-7
SOLID WASTE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002 AND 2001
2002 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Investments
Receivables, net of allowance for uncollectibles:
Accounts
Accrued interest
Other
Total current assets
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Accrued compensated absences
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
71
$ 1,114,244 $
788,880
100,000
137,326
120,864
2,054
52,768
5,653
1,304,338
1,017,451
$ 1,304,338 $
1,017,451
$ 271,993
11,943
3,899
287,835
1,016,503
1,016,503
$ 1,304,338
$ 200,391
6,602
2,355
209,348
808,103
808,103
$ 1,017,451
CITY OF ALLEN, TEXAS EXHIBIT F-8
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
OPERATING REVENUES:
Garbage collections
Other
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Supplies
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES:
Interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers to other funds
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
72
$ 2,889,284
$ 2,438,624
26,205
2,915,489
2,438,624
104,582
39,774
2,500,158
2,059,063
5,820
48,643
14,817
2,659,203
2,113,654
256,286
324,970
16,926
30,876
273,212
355,846
(64,812)
(36,601)
208,400
319,245
808,103
488,858
$ 1,016,503
$ 808,103
CITY OF ALLEN, TEXAS EXHIBIT F-9
SOLID WASTE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30,2D02 AND 2001
2002 2001
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)in other receivables
Increase in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued 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 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
$ 256,286
$ 324,970
18,980
28,822
(16,462)
(74,761)
(47,115)
(5,533)
71,602
92,025
5,341
(24,312)
1,544
(2,355)
14,910 (14,936)
271,196 310,034
(64,812) (36,601)
(100,000)
100,000
18,980
28,822
118,980
(71,178)
325,364
202,255
788,880
586.625
$ 1,114,244
$ 788,880
CITY OF ALLEN, TEXAS
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002 AND 2001
EXHIBIT F-10
2002
2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
2,321,669 $
1,830,371
Investments
2,166,854
2,599,556
Accrued interest receivable
10,236
18,892
Total current assets
4,498,759
4,448,819
FIXED ASSETS:
Land
259,990
259,990
Utility, plant in service
3,808,982
2,482,565
Construction in progress
2,287,770
1,705,859
6,356,742
4,448,414
Less: accumulated depreciation
(674,054)
(578,830)
Total fixed assets, net
5,682,688
3,869,584
TOTAL ASSETS
$
10,181,447 $
8,318,403
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
$
2,116 $
81,287
Retainage payable
105,161
21,374
Due to other funds
147,331
Total current liabilities
254,608
102,661
FUND EQUITY:
Contributed capital
6,981,772
6,981,772
Retained earnings
2,945,067
1,233,970
Total fund equity
9,926,839
8,215,742
TOTAL LIABILITIES AND FUND EQUITY
$
10,181,447 $
8,318,403
74
CITY OF ALLEN, TEXAS EXHIBIT F-11
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
OPERATING REVENUES:
OPERATING EXPENSES:
Depreciation
Total operating expenses
OPERATING LOSS
NON-OPERATING REVENUES:
Interest income
Development fees
Total non-operating revenues
NET INCOME
RETAINED EARNINGS /
(ACCUMULATED DEFICIT) AT BEGINNING OF YEAR
RETAINED EARNINGS AT END OF YEAR
75
2002 2001
95,225
95,225
(95,225)
100,029
1,706,293
1,806,322
1,711,097
62,064
62,064
(62,064)
192,740
1,861,994
2,054,734
1,992,670
1,233,970 (758,700)
$ 2,945,067 $ 1,233,970
CITY OF ALLEN, TEXAS EXHIBIT F-12
DEVELOPMENT FEES ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30.2002 AND 2001
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss $ (95,225) $ (62,064)
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Depreciation and amortization
95,225
62,064
Change in assets and liabilities:
Increase (decrease) in accounts payable
(79,171)
81,287
Increase in accrued liabilities
147,331
Increase (decrease)in retainage payable
83,786
(34,378)
Total adjustments
247,171
108,973
Net cash provided by operating activities
151,946
46,909
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Contributions from developers
1,706,293
1,861,994
Acquisition of capital assets
(1,908,328)
(759,321)
Net cash provided by (used in) capital and related financing activities
(202,035)
1,102,673
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
(4,534,152)
(2,731,258)
Proceeds from the sale and maturities of
investment securities
4,966,854
1,387,892
Interest on investments
108,685
207,482
Net cash provided by (used in) investing activities
541,387
(1,135,884)
NET INCREASE IN CASH AND CASH EQUIVALENTS
491,298
13,698
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,830,371
1,816,673
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 2,321,669
$1,830,371
Z-1
CITY OF ALLEN, TEXAS
DRAINAGE ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30 2002 AND 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Accounts receivable
Total current assets
FIXED ASSETS:
Utility plant in service
Vehicles
Machinery and equipment
Construction in progress
Less: accumulated depreciation
Total fixed assets, net
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
EXHIBIT F-13
2002 2001
$ 742,489
$ 759,589
38,006
35,968
5,009
4,714
780,495
795,557
49,283
69,906
82,477
54,353
41,804
264,161
237,171
496,133
371,709
$ 1,499,476 $
1,418,294
884,553
733,161
(165,572)
(110,424)
718,981
622,737
$ 1,499,476
$ 1,418,294
$ 40,866 $
74,467
3,408
3,958
5,009
4,714
25,345
49,283
108,484
1,450,193
1,309,810
1,450,193
1,309,810
$ 1,499,476 $
1,418,294
CITY OF ALLEN, TEXAS EXHIBIT F-14
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
OPERATING REVENUES:
Drainage fees
Service charges
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
Non-opera5ng revenues - interest income
INCOME BEFORE OPERATING TRANSFERS
Operating transfers to other funds
NET INCOME
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
f61
$ 667,268
$ 610,744
106,132
253,528
773,400
864,272
203,793
181,674
95,619
57,160
104,920
124,185
16,164
7,797
55,148
48,558
48,993
40,807
524,637
460,181
248,763
404,091
15,428
38,112
264,191
442,203
(123,808)
(123,478)
140,383
318,725
1,309,810
991,085
$ 1,450,193
$ 1,309,810
CITY OF ALLEN, TEXAS EXHIBIT F-15
DRAINAGE ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income $ 248,763 $ 404,091
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
(increase)in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in retainage payable
Increase (decrease) 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
Net cash used in non -capital financing activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale and maturities of
investment securities
Interest on investments
Net cash provided by investing activities
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
79
55,148
48,558
(2,038)
(26,209)
(33,601)
65,816
(25,345)
25,345
(550)
1,304
295
551
(6,091)
115,365
242,672
519,456
(123,808) (123,478)
(123,808) (123,478)
(151,392) (419,776)
(151,392) (419,776)
300,000
15,428 41,955
15,428 341,955
(17,100) 318,157
759,589 441,432
$ 742,489 $ 759,589
CITY OF ALLEN, TEXAS EXHIBIT F-16
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002 AND 2001
2002 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Accounts 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
LP1
$ 153,958 $ 107,908
4,017 395
157,975 108,303
61,698 61,698
(48,574) (38,291)
13,124 23,407
$ 171,099 $ 131,710
$ 11,082 $ 16,457
9,014 3,527
20,096 19,984
42,949 33,043
108,054 78,683
151,003 111,726
$ 171,099 $ 131,710
'
CITY OF ALLEN, TEXAS
EXHIBIT F-17
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002
2001
OPERATING REVENUES:
$
$
'
Recreation fees
540,248
432,423
Miscellaneous
24,823
34,246
1
Total operating revenues
565,071
466,669
OPERATING EXPENSES:
'
Personal services
Contractual and other services
255,633
257,658
201,439
235,862
Depreciation
10,283
10,283
Other
4,991
16,284
Total
528,565
463,868
operating expenses
OPERATING INCOME
36,506
2,801
Non-operating revenues - Interest income
2,771
12,819
INCOME BEFORE OPERATING TRANSFERS
39,277
15,620
Operating transfers to other funds
(171,365)
1
NET INCOME (LOSS)
39,277
(155,745)
RETAINED EARNINGS, BEGINNING OF YEAR
111,726
267,471
RETAINED EARNINGS, END OF YEAR
$ 151,003
$ 111,726
81
CITY OF ALLEN, TEXAS EXHIBIT F-18
PARKS AND RECREATION ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income $ 36,506 $ 2,801
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
Increase in accounts receivable
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
Net cash used in non -capital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
Net cash provided by investing activities
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
82
10,283
10,283
(4,017)
(5,375)
2,197
5,487
(723)
6,378
11,757
42,884
14,558
(171,365)
(171,365)
3,166 12,424
3,166 12,424
46,050 (144,383)
107,908 252,291
$ 153,958 $ 107,908
CITY OF ALLEN, TEXAS EXHIBIT F-19
AQUATICS ENTERPRISE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002 AND 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Total current assets
FIXED ASSETS:
Vehicles
Machinery and equipment
Less: accumulated depreciation
Total fixed assets, net
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Total current liabilities
FUND EQUITY:
Retained earnings - unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
83
2002 2001
$ 27,322 $ 370,441
27,322 370,441
21,266
26,497
47,763
(7,960)
39,803
370,441
$ 26,641 $ 2,096
30,231 2,134
56,872 4,230
10,253 366,211
10,253 366,211
370,441
CITY OF ALLEN, TEXAS EXHIBIT F-20
AQUATICS ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
OPERATING REVENUES:
Charges for services
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personal services
Contractual and other services
Maintenance
Supplies
Depreciation
Total operating expenses
OPERATING LOSS
Non-operating revenues - interest income
LOSS BEFORE OPERATING TRANSFERS
Operating transfers from other funds
Operating transfers to other funds
NET INCOME (LOSS)
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
84
821,214
58,224
5,129
826,343
58,224
755,550
142,072
299,563
3,407
20,341
11,221
99,432
17,669
7,960
1,182,846
174,369
(356,503)
(116,145)
5,695
12,683
(350,808)
(103,462)
220,000
(5,150)
(2,000)
(355,958)
114,538
366,211
251,673
$ 10,253
$ 366,211
CITY OF ALLEN, TEXAS EXHIBIT F-21
AQUATICS ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30.2002 AND 2001
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating loss
Adjustment to reconcile operating loss
to net cash used in operating activities:
Depreciation
Change in assets and liabilities:
Increase in accounts payable
Increase in accrued liabilities
Total adjustments
Net cash used in operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
Operating transfers to other funds
Net cash provided by (used in) non -capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash used In capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
Net cash provided by investing activities
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
85
$ (356,503) $ (116,145)
7,960
24,545
1,781
28,097
2,134
60,602
3,915
(295,901)
(112,230)
220,000
(5,150) (2,000)
(5,150) 218,000
(47,763)
(47,763)
5,695 12,683
5,695 12,683
(343,119) 118,453
370,441 251,988
370,441
CITY OF ALLEN
M
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, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
VEHICLE SELF TOTALS
REPLACEMENT INSURANCE
FUND FUND 2002 2001
ASSETS
4,183,867
770,523
4,954,390
3,838,324
Current assets:
TOTAL LIABILITIES AND FUND EQUITY $
4,183,867 $
1,076,025 $
5,259,892 $
Cash and cash equivalents
$ 1,370,851 $
775,692
$ 2,146,543
$ 998,620
Investments
2,335,010
300,000
2,635,010
2,000,000
Accounts receivable
337,104
Accrued interest receivable
5,931
333
6,264
10,335
Due from other funds
300,000
Total current assets
3,711,792
1,076,025
4,787,817
3,646,059
Property, plant, and equipment:
Machinery and equipment
186,665
186,665
176,920
Vehicles
1,346,970
1,346,970
1,224,250
Less: accumulated depreciation
(1,061,560)
(1,061,560)
(805,955)
Net property, plant, and equipment
472,075
472,075
595,215
TOTAL ASSETS
4,183,867
1,076,025
5,259,892
4,241,274
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable 305,502 305,502 402,950
Fund equity:
Retained earnings - unreserved _ 4,183,867 770,523 4,954,390 3,838,324
Total fund equity
4,183,867
770,523
4,954,390
3,838,324
TOTAL LIABILITIES AND FUND EQUITY $
4,183,867 $
1,076,025 $
5,259,892 $
4,241,274
i
CITY OF ALLEN, TEXAS
54,614
54,614
EXHIBIT G-2
INTERNAL SERVICE FUNDS
2,467,587
2,467,587
2,363,930
COMBINING STATEMENT OF REVENUES, EXPENSES
255,605
233,528
AND CHANGES IN RETAINED EARNINGS
984
FOR THE YEAR ENDED SEPTEMBER 30, 2002
255,605
2,522,201
2,777,806
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
753,336
VEHICLE
SELF
TOTALS
REPLACEMENT
INSURANCE
88,668
141,467
FUND
FUND
2002
2001
OPERATING REVENUES:
Charges for services $ 1,008,941 $
2,478,574 $
3,487,515
$ 2,739,541
Other income
317,689
317,689
381,755
Total operating revenues 1,008,941
2,796,263
3,805,204
3,121,296
OPERATING EXPENSES:
Personal services
Contractual services
Depredation
Other expenses
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES:
Interest income
Income before operating transfers
Operating transfers from other funds
NET INCOME
RETAINED EARNINGS,
BEGINNING OF YEAR
RETAINED EARNINGS, END OF YEAR
m
54,614
54,614
48,841
2,467,587
2,467,587
2,363,930
255,605
255,605
233,528
984
255,605
2,522,201
2,777,806
2,647,283
753,336
274,062
1,027,398
474,013
74,978
13,690
88,668
141,467
828,314
287,752
1,116,066
615,480
387,584
828,314
287,752
1,116,066
1,003,064
3,355,553
482,771
3,838,324
2,835,260
$ 4,183,867 $
770,523 $
4,954,390 $
3,838,324
m
CITY OF ALLEN, TEXAS
I
EXHIBIT G-3 ,
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
VEHICLE SELF TOTALS
REPLACEMENT INSURANCE
FUND FUND 2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
(Increase) decrease in accounts receivables
(Increase) decrease in other receivables
Increase (decrease) in accounts payable
Total adjustments
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers from other funds
Net cash provided by non -capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from sale and maturities of Investment securities
Interest on investments
Net cash 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
$ 753,336 $ 274,062 $ 1,027,398 $ 474,013
25505
(300,000)
265,605
233,528
3,618,441
337,104
337,104
(283,699)
79,362
300,000
300,000
(300,000)
(95,185)
(2,263)
(97,448)
130,160
(255,628)
(286,643)
(542,271)
(197,513)
160,420
634,841
795,261
(220,011)
525,663
622,280
1,147,923
140,388
913,756
906.903
1,822,659
254,002
387,584
387,584
(132,465) (132,465) (303,685)
(132,465) (132,465) (303,685)
(3,953,451)
(300,000)
(4,253,451)
(525,581)
3,618,441
3,618,441
183,057
79,362
13,357
92,739
145,011
(255,628)
(286,643)
(542,271)
(197,513)
525,663
622,280
1,147,923
140,388
845,188
153,432
998,620
858,232
$ 1,370,851
$ 775,692
$ 2,146,543
$ 998,620
701
II
1 FIDUCIARY FUND TYPES
1
The Fiduciary Fund Types are used to account for assets held by the City in a trustee or agency capacity for
1 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.
1 Library Acquisition Fund - To account for funds received and expended for the acquisition of library
books and other resources.
1 Park Dedication Fund - To account for funds received and expended for the acquisition of additional
park land and for the development of neighborhood parks.
1 City of Allen Swim Team Fund - To account for funds received and expended for the City of Allen
swim Team activities.
1 Nonexpendable Trust Fund - To account for assets held by the City in a trustee or agency capacity in
which the principal must be preserved intact.
Cemetery Trust Fund - To account for funds received and expended for providing City cemetery
1 services.
1
1
1
1
1
1
1
1
1
1 91
CITY OF ALLEN, TEXAS EXHIBIT H-1
TRUSTFUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
92
NON
EXPENDABLE
EXPENDABLE TRUST
TRUST
TOTALS
LIBRARY
PARK
ALLEN
CEMETERY
ACQUISITION
DEDICATION SWIMTEAM
TRUST
2002
2001
ASSETS:
Cash and cash equivalents
$
202,632 $
1,335,957 $
17.661
$ 55,013 $
1.611,253 $
1,294,741
Investments
1,021,517
1,021,517
899.530
A=ed interest receNable
2.246
2.246
4,599
TOTAL ASSETS
$
202,632 $
2,359,720 $
17,661
$ 55,013 $
2,635.026 $
2,198,870
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts Payable
$
2,751 $_$_$-$
2,751 $
1,170
TOTAL LIABILITIES
2,751
2,751
1,170
FUND BALANCES:
Unreserved - undesignated
199,881
2,359,720
17,661
55,013
2,632,275
2,197,700
TOTAL LIABILITIES AND FUND BALANCES
E
202.632 $
2,359,720 $
17,661
$ W013 $
2,635,026 $
21198,870
92
CITY OF ALLEN, TEXAS
EXHIBIT H-2
TRUSTFUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
5,871
414,768
AND CHANGES IN FUND BALANCES- EXPENDABLE TRUST FUNDS
414,766
5,007
FOR THE YEAR ENDED SEPTEMBER 30, 2002
10,641
10,641
12,307
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001)
4,911
414,768
10,641
430,320
30,512
TOTALS
LIBRARY PARK
ALLEN
ACQUISITION DEDICATION SWIM TEAM
2002
2001
REVENUES:
768,806
186,564
1,953,960
Gifts and contributions $ 14,257 $ $
26,139 $
40,396 $
22,820
Recreation fees 774,970
774,970
677,994
Interest 3,971 45,558
$
49,529
98,504
2,142,687
Total revenues 18,228 820,528
26,139
864,895
799,318
EXPENDITURES:
Library purchases
General items
Capital ou9ay
Miscellaneous
Total expenditures
NET INCOME
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
4,911
4,911
7,327
5,871
414,768
414,766
5,007
10,641
10,641
12,307
4,911
414,768
10,641
430,320
30,512
13,317
405,760
15,498
434,575
768,806
186,564
1,953,960
2,163
2,142,687
1,373,881
$ 199,881 $2,359,720
$
17,661 $
2,577,262 $
2,142,687
93
CITY OF ALLEN, TEXAS EXHIBIT H-3
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002 AND 2001
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Unreserved - undesignated
TOTAL LIABILITIES AND FUND BALANCES
94
2002 2001
$ 55,013 $ 55,013
55,013 55,013
55,013 55,013
$ 55,013 $ 55,013
CITY OF ALLEN, TEXAS EXHIBIT H-4
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001
NON-OPERATING REVENUES:
Interest income
Total non-operating revenues
INCOME BEFORE OPERATING TRANSFERS
Operating transfers to other funds
NET INCOME
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
Fb1
2002 2001
$ 962 $ 200
962 200
962 200
(962)
55,013
54,813
$ 55,013
$
55,013
CITY OF ALLEN, TEXAS EXHIBIT H-5
NONEXPENDABLE CEMETERY TRUST FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2002 AND 2001
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments
Net cash provided by investing activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Operating transfers to other funds
Net cash used in 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
96
2002 2001
$ 962
$
200
962
200
(962)
(962)
200
55,013 54,813
$ 55A13 $ 55,013
' 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.
1
1
1
1
t
1
1
1
1
1 97
CITY OF ALLEN, TEXAS EXHIBIT 1-1
GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30, 2002 AND 2001
2002 2001
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
Total investment in general fixed assets
98
$ 19,736,051 $
16,669,776
14,156,866
14,156,866
76,658,810
59,301,914
14,311,743
13,156,694
20,850,012
22,615,969
$ 145,713,482 $ 125,901,219
$ 125,901,219 $ 99,716,700
19,812,263 26,184,519
$ 145,713,482 $ 125,901,219
I
DISCRETELY PRESENTED COMPONENT UNITS
Allen Economic Development Corporation (AEDC) — AEDC is a legally separate entity from the City and
is responsible for aiding, promoting and furthering economic development within the City.
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.
M
CRY OF ALLEN, TEXAS EXHIBIT J-1
ALLEN ECONOMIC DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30,2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 2001)
GENERAL GENERAL TOTALS
ECONOMIC LONG-TERM FIXED
DEVELOPMENT DEBT ASSETS 2002 2001
ASSETS AND OTHER DEBITS
Current assets:
Cash and cash equivalents
$
154,759
$ $
$ 154,759 $
495.594
Investments
599,053
599,053
699,416
Sales tax receivable
579.050
579.050
502,251
Accrued interest receivable
6,111
61111
7,013
Total current assets
1,338.973
1,338.973
1,704,274
Fixed assets
7,155,514
7,155,514
6.191,926
Amount to be Provided for long term debt
673,784
673,784
1,932,653
TOTAL ASSETS AND OTHER DEBITS
$
1,338.973
E 873,784 $ 7,155.514
$ 9,168271 $
9,828.853
LIABILITIES, FUND BALANCE
AND OTHER CREDITS
Liabilities:
Accounts Payable
$
116,959
$ $
$ 116,959 $
48,474
Accrued and other liabilities
4,824
4.624
4.334
Contractual obligations
673784
673,784
360,458
Notes payable
1,572,195
Total liabilities
121,783
673,784
795,567
1,985,461
Fund balance and other credits:
Investment in general fixed assets
7,155,514
7,155,514
6,191,926
Unreserved -undesignated
1,217,190
1217,190
1,651,466
Total fund equity and other credits
1,217,190
7,155,514
8,372,704
7,843,392
TOTAL LIABILITIES, FUND BALANCE
AND OTHER CREDITS
$
1,338.973
$ 673.784 $ 7,155,514
$ 9,168,271 $
9,828.853
100
CITY OF ALLEN, TEXAS EXHIBIT J-2
ALLEN ECONOMIC DEVELOPMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEARS ENDED SEPTEMBER 30, 2002 and 2001
101
2002
2001
REVENUES:
Sales taxes
$ 3,287,782 $
3,046,346
Interest
32,233
60,199
Miscellaneous
60,734
Total revenues
3,380,749
3,106,545
EXPENDITURES:
General government
401,457
464,996
Public works
477,785
448,886
Capital outlay
963,688
356,365
Principal retirement
1,806,638
1,239,846
Interest
141,557
207,167
Total expenditures
3,791,025
2,717,260
Excess (deficiency) of revenues over expenditures
(410,276)
389,285
OTHER FINANCING SOURCES (USES):
Proceeds from contractual obligations
531,294
Operating transfers to primary government
(555,294)
(24,000)
Total other financing uses
(24,000)
(24,000)
Excess (deficiency) of revenues over
expenditures and other financing uses
(434,276)
365,285
FUND BALANCE, BEGINNING OF YEAR
1,651,466
1,286,181
FUND BALANCE, END OF YEAR
$ 1,217,190 $
1,651,466
101
CITY OF ALLEN, TEXAS EXHIBIT J-3
COMMUNITY DEVELOPMENT CORPORATION
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001)
GENERAL TOTALS
COMMUNITY LONG-TERM
DEVELOPMENT DEBT 2002 2001
ASSETS
Current assets:
Cash and rash equivalents
Investments
Sales tax receivable
Accrued interest receivable
Prepaid expenses
Total current assets
Amount to be provided for long term debt
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Contractual obligations
Revenue bond payable
Total liabilities
Fund balance and other credits:
Reserved for encumbrances
Unreserved - undesignated
Total fund equity and other credits
TOTAL LIABILITIES AND FUND BALANCES
$ 2,651,365 $
$ 2,651,365 $
2,851,560
2,099,657
2,099,657
799,789
579,050
579,050
502,251
5,810
5,810
9,252
673,784
71,811
360,458
5,335,882
5,335,882
4,234,663
9,260,000
9,625,000
9,933,784 9,933,784
9,985,458
$ 5,335,882 $
9,933,784 $ 15,269,666 $__14
,220,121
$ 165,781 $
$
165,781 $
7,121
37,040
37,040
108,508
'
673,784
673,784
360,458
9260,000
9,260,000
9,625,000
,
202,821
9,933,784
10,136,605
10,099,087
2,022,985
2,022,985
260,944
'
3,110,076
3,110,076
3,860,090
5,133,061
5,133,061
4,121,034
,
$ 5,335,882 $
9,933,784 $
15,269,666 $
14,220.121
t
u
102 1
CITY OF ALLEN, TEXAS EXHIBIT J-4
COMMUNITY DEVELOPMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEARS ENDED SEPTEMBER 30, 2002 and 2001
REVENUES:
Sales taxes
Interest
Total revenues
EXPENDITURES:
General items
Community development
Capital outlay
Principal retirement
Interest
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Proceeds from contractual obligations
Operating transfers to primary government
Total other financing uses
Excess of revenues over expenditures
and other financing uses
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
103
2002
2001
$ 3,287,782 $
3,046,346
80,074
175,590
3,367,856
3221,936
19,122
47,888
1,099,528
1,438,243
637,049
478,249
564,130
541,205
2,319,829
2,505,585
1,048,027 716,351
531,294
(567,294) (52,116)
(36,000) 152,116)
1,012,027 664,235
4,121,034 3,456,799
$ 5,133,061 $ 4,121,034
CITY OF ALLEN
104
i
1
1
1
1 STATISTICAL SECTION
1
1
1
1
1
1
1
1
1
1
1
1
1
1
' STATISTICAL SECTION
(UNAUDITED)
1 105
CITY OF ALLEN, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (Note A) (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL
GENERAL
PUBLIC
PUBLIC
CULTURE AND
YEAR
GOVERNMENT
SAFETY
WORKS
RECREATION
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
2002
5,091,234
12,813,503
2,629,347
4,996,149
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
$ 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
1,949,561
1,004,720
8,124,934
36,609,448
107
0
CITY OF ALLEN, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (Note A) (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL
LICENSES
INTER-
CHARGES FOR
YEAR
TAXES (B)
AND PERMITS
GOVERNMENTAL
SERVICES
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
358,597
2000
20,255,520
1,733,140
992,672
2001
25,292,740
1,896,867
538,761
1,288,629
2002
29,715,372
1,484,888
896,321
1,147,409
Note:
(A) Includes General, Special Revenue and Debt Service Funds.
(B) Includes ad valorem, penalty and interest, franchise, hotel and sales taxes -
General and Debt Service Funds.
(C) Includes gifts and contributions.
108
TABLE 2
FINES AND
GIFTS AND
FORFEITURES
CONTRIBUTIONS
INTEREST
MISCELLANEOUS
TOTAL
$ 175,066
$
$ 151,747
$ 388,154 (C) $
9,099,807
177,323
209,376
711,445 (C)
9,776,374
202,345
420,387
866.113(C)
10,448,182
310,318
473,570
510,363(C)
12,576,708
332,385
451,499
909,111 (C)
14,056,002
465,756
685,217
521,151
459,825
18,238,223
671,934
254,693
478,640
653,506
21,031,436
738,005
1,158,765
1,000,208
1,099,644
26,977,954
1,007,666
2,250
918,055
641,851
31,586,819
1,179,269
1,004,720
436,605
836,367
36,700,951
109
CITY OF ALLEN, TEXAS
AD VALOREM TAX LEVIES AND COLLECTIONS (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
TOTAL
CURRENTTAX
TAX LEVY
COLLECTIONS
COLLECTED
COLLECTIONS
$ 5,578,141
$ 5,578,440
5,770,930
5,770,699
6,380,680
6,363,231
7,139,479
7,142,679
8,092,555
8,056,575
9,107,745
9,102,700
10,823,366
10,762,014
13,100,263
13,043,521
16,070,978
16,051,072
19,396,752
19, 318,306
PERCENT
DELINQUENT
OF LEVY
TAX
COLLECTED
COLLECTIONS
100.01
$ 31,752
100.00
14,349
99.73
19,016
100.04
50,451
99.56
80,355
99.94
27,067
99.43
68,580
99.57
103,623
99.88
152,450
99.60
272,200
(A) Includes penalty and interest collections. Such amounts are recorded with
ad valorem tax revenue in the combined financial statements.
110
TABLE 3
111
PERCENT OF
OUTSTANDING
PERCENT OF
TOTAL TAX
PRIOR YEARS'
OUTSTANDING
TOTAL TAX
COLLECTIONS
DELINQUENT
DELINQUENT
COLLECTIONS (A)
TO TAX LEVY
TAXES
TAXES TO TAX LEVY
$ 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
19,590,506
101.00
179,172
0.92
111
CITY OF ALLEN, TEXAS TABLE 4
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (UNAUDITED)
LAST TEN FISCAL YEARS
(A) 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(A)
VALUE
TOTAL ESTIMATED
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
1,566,233,175
1,566,233,175
100
1999
1,882,324,508
1,882,324,508
100
2000
2,287,107,121
2,287,107,121
100
2001
2,849,399,418
2,849,399,418
100
2002
3,445,805,987
3,445,805,987
100
(A) 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
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
2002
0.357050
0.205950
0.56300
1.80820
0.2500
0.091946
2.71315
Note: Rates are based per $100 valuation.
In 1992, a new fazing entity (County Education District) was established by the State of Texas. County education
disbict taxes were initially levied and collected during fiscal year 1993. The legislation which created County
education districts was declared unconstitutional by the Texas Supreme Court, and a new State funding method
was enacted for fiscal year 1995.
Source: City of Allen
113
CITY OF ALLEN, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE
AND NET BONDED DEBT PER CAPITA (UNAUDITED)
LAST TEN FISCAL YEARS
(A) Source: Census results/North Central Texas Council of Governments.
(B) Includes all general obligation bonds.
(C) Represent assessed valueless exemptions.
114
GROSS
GENERAL
FISCAL
ESTIMATED
TAXABLE
BONDED
YEAR
POPULATION (A)
VALUE(C)
DEBT(B)
1993
22,728
$ 728,216,890
$ 21,903,921
1994
24,493
779,885,438
20,798,921
1995
27,219
891,654,515
26,398,921
1996
29,468
1,073,605,805
32,033,921
1997
32,539
1,248,851,016
30,323,921
1998
35,744
1,566,233,175
38,413,921
1999
43,686
1,882,324,508
49,608,921
2000
48,308
2,287,107,121
59,117,730
2001
54,421
2,849,399,418
68,409,064
2002
58,790
3,445,805,987
78,007,619
(A) Source: Census results/North Central Texas Council of Governments.
(B) Includes all general obligation bonds.
(C) Represent assessed valueless exemptions.
114
LESS DEBT
SERVICE
FUND
401,949
469,120
594,510
765,253
838,686
1,017,694
937,386
833,788
848,466
1,040,735
NET
BONDED DEBT
$ 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
76,966,884
115
RATIO OF
NETBONDED
DEBT TO
TAXABLE VALUE
0.02953
0.02607
0.02894
0.02912
0.02361
0.02388
0.02585
0.02548
0.02371
0.02234
TABLE 6
NET
BONDED DEBT
PER CAPITA
$ 946.06
830.02
948.03
1,061.11
906.15
1,046.22
1,114.12
1,206.51
1,241.44
1,309.18
116
CRY OF ALLEN, TEXAS TABLE 7
'
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30, 2002
Article A, Section 5 of the Texas Constitution, applicable to cities of more than 5,000 population states that the
maximum rate shall not exceed $2.50 per $100.00 of assessed valuation of taxable property. The CityCharter
'
of the City of Allen, Texas, does not provide for a debt limit. The City tax rate of $0.56300 per $100.00 assessed
valuation is 22.52% 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, 2002
PERCENTAGE
AMOUNT
(A)
APPLICABLE TO
APPLICABLE TO
GROSS DEBT
CITY OF
CITY OF
OUTSTANDING
ALLEN
ALLEN
City of Allen $
78,007,619
100% $
78,007,619
Total direct debt
78,007,619
78,007,619
Allen I.S.D.
176,313,946
95%
167,498,249
Collin County
210,252,040
6.28%
13,203,828
Collin County Community College District
32,205,695
6.28%
2,022,518
Total overlapping debt
418,771,681
182,724,594
Total direct and overlapping debt $
496,779,300
$
260,732,213
Average debt per capita $
8,450
(A) Includes all general obligation debt which is to be repaid through property taxes.
117
CITY OF ALLEN, TEXAS TABLE 9
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES TO
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES (UNAUDITED)
LAST TEN FISCAL YEARS
RATIO OF DEBT
SERVICE TO
FISCAL
UUVMKIVIVICIN I HL
�]V VCrV YrylGlr l/lL
YEAR
PRINCIPAL
INTEREST
1993 $
980,000 $
1,412,589 $
1994
1,105,000
1,294,973
1995
1,195,000
1,204,232
1996
1,465,000
1,539,912
1997
1,710,000
1,906,985
1998
1,927,980
1,715,075
1999
2,145,000
2,306,686
2000
2,830,000
2,715,171
2001
3,469,803
3,343,966
2002
3,725,000
3,715,129
U IAL UtbI
UUVMKIVIVICIN I HL
�]V VCrV YrylGlr l/lL
SERVICE
EXPENDITURES
EXPENDITURES
2,392,589 $
9,218,704
0.25954
2,399,973
8,920,078
0.26905
2,399,232
11,260,877
0.21306
3,004,912
12,256,870
0.24516
3,616,985
15,402,503
0.23483
3,643,055
17,324,481
0.21028
4,451,686
19,756,702
0.22520
5,545,171
24,828,513
0.22334
6,813,769
29,754,166
0.22900
7,440,129
35,335,608
0.21056
NOTE: Table includes General and Debt Service Funds.
118
CITY OF ALLEN, TEXAS TABLE 10
PROPERTY VALUES AND CONSTRUCTION (UNAUDITED)
LAST TEN FISCAL YEARS
(A) Source: City of Allen - Building Inspec0ons (includes all permits)
(B) Includes new construction, alterations, addons and improvements.
119
TOTAL
CONSTRUCTION (A)
FISCAL
ASSESSED
NUMBER
COMMERCIAL
NUMBER
RESIDENTIAL
YEAR
VALUE
PERMITS
VALUE
PERMITS
VALUE(B)
1993 $
728,216,890
321
$ 23,820,557
1,514 $
74,697,229
1994
779,885,438
332
9,239,371
2,411
119,699,855
1995
891,654,515
333
13,491,728
2,259
104,305,165
1996
1,073,605,805
319
36,369,959
2,803
164,855,137
1997
1,248,851,016
386
75,998,593
2,487
158,480,566
1998
1,566,233,175
468
56,481,429
3,360
209,691,408
1999
1,882,324,508
133
116,245,279
1,298
209,732,070
2000
2,287,107,121
252
105,883,860
1,425
244,820,111
2001
2,849,399,418
197
73,483,501
2,257
586,563,500
2002
3,445,805,987
202
50,759,762
1,458
277,808,123
(A) Source: City of Allen - Building Inspec0ons (includes all permits)
(B) Includes new construction, alterations, addons and improvements.
119
CITY OF ALLEN, TEXAS
PRINCIPAL TAXPAYERS (UNAUDITED)
SEPTEMBER 30,2002
TABLE 11 t
iris
PERCENTAGE OF
2001
TAXABLE ASSESSED
TAXPAYER
TYPE OF BUSINESS
VALUATION
VALUATION
Chelsea Allen Development LP
Commercial Real Estate
$ 45,057,024
1.31%
Wells Operating Pamtership LP
Commercial Real Estate
34,963,145
1.01%
ONCOR Electric Delivery Co.
Electric Utility
29,927,196
0.87%
Janice Brittingham
Real Estate
28,708,816
0.83%
Meridian Settlers Gate Ltd.
Apartment Complex
25,988,633
0.75%
Alcatel USA Sourcing LP
Telecommunications
25,296,740
0.73%
Benton Pointe Apartments, Inc.
Apartment Complex
25,000,000
0.73%
Southwestern Bell Telephone
Telephone Utility
24,407,780
0.71%
Sunbelt Telecommunications
Telecommunications
23,539,793
0.68%
Albertson's Inc.
Retail
15,194,244
0.44%
TOTAL
$ 278,083,371
8.07%
iris
CITY OF ALLEN, TEXAS
TABLE 12
MISCELLANEOUS STATISTICAL FACTS (UNAUDITED)
SEPTEMBER 30,2002
Date of Incorporation
July 1, 1953
Forth of Government
CouncillManager
Area
26.31 square miles
Miles of street
238.44 center line miles
Population estimate (2002)
58,790
Fire Protection:
Number of stations
4
Number of personnel
84
Number of fire hydrants
2927
Police Protection:
Number of stations
1
Number of personnel
112
Water Service:
Supplier
North Texas Municipal Water District
Number of consumers
19,603
Average daily consumption
11,870,356
Miles of water lines
265.51 linear miles
Sewer Service:
Sanitary sewer lines
231.29 linear miles
Storm sewer lines
78.69 linear miles
Building Permits Issued (A)
5,715
Parks:
Number
41
Area
721 acres
Municipal Employees:
Full-time
442
Part-time
30
Temporary
36
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
(A) Includes residential, commercial, and miscellaneous (e.g. pools, fences) permits
121
CITY OF ALLEN, TEXAS TABLE 13
DEMOGRAPHIC STATISTICS (UNAUDITED)
LAST TEN FISCAL YEARS
FISCAL ESTIMATED PER CAPITA SCHOOL
YEAR POPULATION LqL INCOME (B) ENROLLMENT (A)
1993
22,728
16,040
6,248
1994
24,493
16,040
6,695
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 (D)
10,595
2001
54,421
40,068 (D)
11,519
2002
58,790
40,068
12,380
(A) Source: Allen Independent School District.
(B) Source: North Dallas Chamber of Commerce/North Central Texas Council of Governments.
(C) Estimates by City, review of available census data and review of various City records.
(D) Updated only at each 10 -year census study
122
CITY OF ALLEN, TEXAS
INDEPENDENT AUDITOR'S REPORTS
ON FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance with Requirements Applicable
To Each Major Federal Program, Internal Control Over Compliance,
And Schedule of Expenditures of Federal and State Awards
Schedule of Findings and Questioned Costs
Corrective Action Plan
Schedule on Prior Audit Findings
Supplementary Information:
Schedule of Expenditures of Federal and State Awards
Notes to Schedule of Expenditures of Federal and State Awards
Page
3
5
7
8
9
10
WEAVER
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL
TIDWELL
CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
LLP
WITH GOVERNMENT AUDITING STANDARDS
CERTIFIED PUBLIC
ACCOUNTANTS
RRD CONSULTANTS
To the Honorable Mayor,
City Council and City Manager
City Of Allen
Alen, Texas
We have audited the financial statements of The City Of Allen (the City) as of and for the
year ended September 30, 2002, and have issued our report thereon dated January 31,
2003. We conducted our audit in accordance with generally accepted auditing standards
and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the Citys 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 City's internal control over
financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. However, we noted a certain matter involving the
internal control over financial reporting and its operation that we consider to be a reportable
DALLAS condition. Reportable conditions involve matters coming to our attention relating to
3c.., to..,, rm.. significant deficiencies in the design or operation of the internal control over financial
",I'm ... I,—, reporting that in our judgment, could adversely affect the City's ability to record, process,
s„ -752Y summarize and report financial data consistent with the assertions of management in the
o„a.,..24901r„-22xD P 9
9;z 490 1970 general purpose financial statements. The reportable condition is described in the
FR— 102 All accompanying schedule of findings and questioned costs as finding # 2002-01.
Four WORTH
I61111Wm 9umW S..L
,$.1, 300
f—WOh.T o 76102 2506
817 3327905
FBDd295936
AN INDERENDENT DENSER CF
BAKER TILLY
INTERNATIONAL
City of Alen, Texas
March 3, 2003
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 and state
' 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
' March 3, 2003
1
1
1
1
2
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
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, 2002. 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 Citys 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-Prord 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,
2002.
Internal Control Over Compliance
The management of the City of Allen is responsible for establishing and maintaining
TA"A' effective internal control over compliance with requirements of laws, regulations, contracts
"I" and grants applicable to federal and state programs. In planning and performing our audit,
we considered the City's internal control over compliance with requirements that could
have a direct and material effect on a major federal and state program in order to
n.✓c,,. n.,,, �=sr zzen 1 P 9
-_ 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.
FORT W"TH
Icon Ir„ RsuuA A,.,•
1Y '
1
..n 'n1, /,ms 9115 2306
1O
B 333 '905
1 11- 215y0
APPLICABLE H MAJOR FEDERAL INTERNAL CONTROL
I I I
EXPENDITURES OF
R COMPLIANCE,ERAL
FE AND ATE AWARDS
WEAVER
TIDWELL
To the Honorable Mayor,
City Council and City Manager
L L P
City Of Allen
CERTIFIED PUBLIC
Allen, Texas
A CCCUNT nNTS
AND CON BCLTANTS
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, 2002. 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 Citys 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-Prord 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,
2002.
Internal Control Over Compliance
The management of the City of Allen is responsible for establishing and maintaining
TA"A' effective internal control over compliance with requirements of laws, regulations, contracts
"I" and grants applicable to federal and state programs. In planning and performing our audit,
we considered the City's internal control over compliance with requirements that could
have a direct and material effect on a major federal and state program in order to
n.✓c,,. n.,,, �=sr zzen 1 P 9
-_ 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.
FORT W"TH
Icon Ir„ RsuuA A,.,•
1Y '
1
..n 'n1, /,ms 9115 2306
1O
B 333 '905
1 11- 215y0
City of Afen, Texas
March 3, 2003
Page 2
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is
a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that noncompliance with
applicable requirements of laws, regulations, contracts, and grants that would be material
in relation to a major federal program being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over compliance and its operation that
we consider to be material weaknesses.
Schedule of Expenditure of Federal and State Awards
We have audited the financial statements of the City as of and for the year ended
September 30, 2002, and have issued our report thereon dated January 31, 2003. Our
audit was performed for the purpose of forming an opinion on the financial statements
taken as a whole. The accompanying Schedule of Expenditures of Federal and State
Awards is presented for purposes of additional analysis as required by OMB Circular A-133
and is not a required part of the financial statements. This schedule is the responsibility of
the City's management. Such information has been subjected to the auditing procedures
applied in the audit of the financial statements, and, in our opinion, is fairly stated, in all
material respects, in relation to the financial statements taken as a whole.
This report is intended for the information of management and federal and state 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
March 3, 2003
CITY OF ALLEN, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2002
Section I -Summary 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 condition(s) identified
that are not considered to be
material weakness(es)? X
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
weekness(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 Proomms
or Cluster
16.710 Public Safety Partnership
and Community
Policing Grants (COPS)
Dollar threshold used to distinguish
between type A and type B programs: $300,000
Audilee 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, 2002
' Section II - Financial Statement Findings
' Finding # 2002-01 - Sidewalk Escrow Policies and Procedures
Criteria or Specific Requirement:
' Reconciling the sidewalk escrow general ledger account to the subsidiary schedules on a regular basis
is a critical internal control procedure. General Ledger accounts as well as subsidiary detail should be
' maintained and reconciled on a regular and timely basis.
Condition:
' ( ) Compliance Finding (X) Reportable Condition ( ) Material Weakness.
Context:
In accordance with section 8.25 of the Allen Land Development Code, escrow policies and procedures, the
City is required to maintain sidewalk escrow deposits made by property owners and developers since
these deposits, plus accrued interest, are refundable to the respective property owners. During our audit
' of the sidewalk escrow liability, we noted that the subsidiary schedule balance did not reconcile with the
general ledger account balance at September 30, 2002.
' Effect:
Not performing timely reconciliations may result in errors not being found within the general ledger
accounts, which could ultimately result in incorrect financial reporting.
' Recommendation:
' We recommend that the City reconcile the sidewalk escrow subsidiary ledger to the respective general
ledger account balance on a regular basis. In the event construction for which escrow funds were
deposited were not paid for by the City, the City needs to determine the specific amounts of escrowed
funds, plus accrued interest, that need to be refunded to each respective owner, upon request.
' Management's Response:
' The Finance and Engineering departments are in the process of developing procedures to reconcile the
sidewalk escrow. The Engineering department will annually review subdivisions over 2-3 years old;
upon completion and, if eligible, sidewalk escrow refunds will be processed accordingly. The Finance
department will verify that the subsidiary ledger matches the general ledger balance.
Section III - Federal Awards Findings and Questioned Costs
This section identifies the reportable conditions, material weaknesses, and instances of noncompliance,
including questioned costs, related to the audit of major federal programs, as required to be reported by
CircularA-133 Compliance Supplement, section .510. Where practical, findings should be organized by
federal agency or pass-through entity.
There were no findings for the year ended September 30, 2002.
CITY OF ALLEN, TEXAS
CORRECTIVE ACTION PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2002
Corrective Action Plan
Finding # 2002-01
Recommendation:
We recommended that the City reconcile the sidewalk escrow subsidiary ledger to the respective
general ledger account balance on a regular basis. In the event construction for which escrow funds
were deposited were not paid for by the City, the City needs to determine the specific amounts of
escrowed funds, plus accrued interest, that need to be refunded to each respective owner, upon
request.
Action Taken:
Management concurs with this recommendation. The Finance and Engineering departments are in the
process of developing procedures to reconcile the sidewalk escrow. The Engineering department will
annually review subdivisions over 2-3 years old; upon completion and, if eligible, sidewalk escrow
refunds will be processed accordingly. The Finance department will verify that the subsidiary ledger
matches the general ledger balance.
7
II
I 1 CITY OF ALLEN, TEXAS
SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2002
II
Findings from the Year Ended, September 30, 2001
1 Reportable Condition
1 FINDING 2001.1 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
1 balances. Accordingly, a significant amount of audit time was required to establish the reasonableness of
the amounts recorded.
1 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 accounts.
1 Current Status: Management has given priority to this item in that the Utility Billing and Finance
departments are utilizing the HTE software system to generate subsidiary receivables information on a
monthly basis and to reconcile the balances per subsidiary reports to the general ledger. In addition, the
1 City plans to begin recording billed and unbilled utility receivables in separate accounts.
11 8
SUPPLEMENTARY INFORMATION
'
'
CITY OF ALLEN, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
YEAR ENDED SEPTEMBER 30, 2002
Federal
Federal Grantor/Pass-Through CFDA Contract
Grantor/Program Title Number Number Expenditures
'
EXPENDITURES OF FEDERAL AWARDS
United States Department of Justice:
Direct Program$:
COPS in School Programs 16.710
1999SHWX0301 $
168,701
'
COPS MORE 2001 Grant 16.710
2001CMWX0403
206,910
Total U.S. Department of Justice
375,611
'
United States Department of Agriculture:
Pass Through Texas Forest Service:
Urban Forestry partnership Grant Award 10.664
01-04-01
30,218
'
Total U.S. Department of Agriculture
30,218
Total Expenditures of Federal Awards
405,829
'
EXPENDITURES OF STATE AWARDS
Office of the Governor. Criminal Justice Division:
Juvenile Accountability Grant
JB -00J20-15525-02
4,189
'
Juvenile Accountability Grant
JB -00J20-15525-03
300
Total Office of the Govemor, Criminal Justice Division
4,489
'
Texas Comptroller of Public Accounts,
TCLEOSE Police Training Grant
17560049128-004
6,048
Tobacco Compliance Grant
17560049128-005
3,000
1
Total Texas Comptroller of Public Accounts
9,048
Texas Department of Trensoortatiom
STEP WAVE Project Grant
582XXF6038
14.267
'
Total Texas Department of Transportation
14,267
Bureau of Justice Assistance:
'
Bulletproof Vest Grant Program
G02006
4,098
Total Bureau of Justice Assistance
4.098
'
Texas Council for the Humanities:
Listening to the Prairie - Distinguished Lecture Series
2002-2854
1,500
Total Texas Council for the Humanities
1,500
Texas State Library and Archives Commission
Lone Star Libraries Grant Program
442-02007
9.926
'
Total Texas State Library and Archives Commission
9.926
'
Total Expenditures of State Awards
43,328
Total Expenditures of Federal and State Awards
$
449,157
'
See notes to schedule of expenditures
of federal and state awards
9
CITY OF ALLEN, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES
OF FEDERAL AND STATE AWARDS
Note 1. General
The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all
federal and state awards programs of the City of Allen, Texas. The City's accounting policies and
procedures are defined in the Note 1 to the financial statements. All awards received directly from
federal and state agencies as well as 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 and State 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
CITY OF ALLEN, TEXAS
' COMMUNICATION OF INTERNAL CONTROL STRUCTURE
RELATED MATTERS NOTED IN THE AUDIT
FOR THE YEAR ENDED SEPTEMBER 30, 2002
' The City's internal control structure consists of policies and procedures established by
management to provide reasonable, but not absolute, assurance that the financial data are
recorded, processed, summarized, and reported consistent with the assertions embodied in
the financial statements. In establishing those policies and procedures, management
assesses their expected benefits and related costs. Because of the inherent limitations in
any internal control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any assessment of the internal control structure to future
periods is subject to the risk that policies or procedures may become inadequate because
of changes in conditions or that the degree of compliance with the policies or procedures
may deteriorate.
' In planning and performing our audit of the financial statements of the City of Allen for the
year ended September 30, 2002, we considered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control structure. Our
report on compliance and on internal control over financial reporting is documented in a
separate letter dated January 31, 2003. However, certain matters came to our attention
that we wish to report to you. These matters, which were considered by us during our audit
' of the financial statements and do not modify the opinion expressed in our report dated
January 31, 2003, are presented in the following paragraphs.
' REPORTABLE CONDITION
Sidewalk Escrow Policies and Procedures
Observation:
In accordance with section 73.25 of the Allen Land Development Code, escrow policies and
r1„:N procedures, the City is required to maintain sidewalk escrow deposits made by property
' 1121 m.,,. D—, owners and developers since these deposits, plus accrued interest, are refundable to the
`-1400 respective property owners. During our audit of the sidewalk escrow liability, we noted that
n„n,,, nom,,, 75
1977 nh" the subsidiary schedule balance did not reconcile with the general ledger account balance at
9]z 470 rsTo N 9 9
F viz voz 1n1 September 30, 2002.
FO" W°°'" Recommendation:
1600 VV- S --h se....
s.... 100 We recommend that the City reconcile the sidewalk escrow subsidiary ledger to the
k—we.,A. nFN, 76102 25oa B13 2905 respective general ledger account balance on a regular basis. In the event construction
r xv4l9s»6 for which escrow funds were deposited were not paid for by the City, the City needs to
determine the specific amounts of escrowed funds, plus accrued interest, that need to be
' wN NwEA�ENANN.�NwEL1p of refunded to each respective owner, upon request.
1
March 3, 2003
WEAVER
'
TIDWELL
To the Honorable Mayor,
L r. v
City Council and City Manager
City of Allen, Texas
CIRTi EiED rueuC
ACCOUNTANTS
'
ANO CONSULTANTS
Management of the City of Allen, Texas (the "City') is responsible for establishing and
maintaining the City's internal control structure. In fulfilling this responsibility, estimates and
'
judgments by management are required to assess the expected benefits and related costs
of internal control structure policies and procedures.
' The City's internal control structure consists of policies and procedures established by
management to provide reasonable, but not absolute, assurance that the financial data are
recorded, processed, summarized, and reported consistent with the assertions embodied in
the financial statements. In establishing those policies and procedures, management
assesses their expected benefits and related costs. Because of the inherent limitations in
any internal control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any assessment of the internal control structure to future
periods is subject to the risk that policies or procedures may become inadequate because
of changes in conditions or that the degree of compliance with the policies or procedures
may deteriorate.
' In planning and performing our audit of the financial statements of the City of Allen for the
year ended September 30, 2002, we considered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control structure. Our
report on compliance and on internal control over financial reporting is documented in a
separate letter dated January 31, 2003. However, certain matters came to our attention
that we wish to report to you. These matters, which were considered by us during our audit
' of the financial statements and do not modify the opinion expressed in our report dated
January 31, 2003, are presented in the following paragraphs.
' REPORTABLE CONDITION
Sidewalk Escrow Policies and Procedures
Observation:
In accordance with section 73.25 of the Allen Land Development Code, escrow policies and
r1„:N procedures, the City is required to maintain sidewalk escrow deposits made by property
' 1121 m.,,. D—, owners and developers since these deposits, plus accrued interest, are refundable to the
`-1400 respective property owners. During our audit of the sidewalk escrow liability, we noted that
n„n,,, nom,,, 75
1977 nh" the subsidiary schedule balance did not reconcile with the general ledger account balance at
9]z 470 rsTo N 9 9
F viz voz 1n1 September 30, 2002.
FO" W°°'" Recommendation:
1600 VV- S --h se....
s.... 100 We recommend that the City reconcile the sidewalk escrow subsidiary ledger to the
k—we.,A. nFN, 76102 25oa B13 2905 respective general ledger account balance on a regular basis. In the event construction
r xv4l9s»6 for which escrow funds were deposited were not paid for by the City, the City needs to
determine the specific amounts of escrowed funds, plus accrued interest, that need to be
' wN NwEA�ENANN.�NwEL1p of refunded to each respective owner, upon request.
1
I
'
CITY OF ALLEN, TEXAS
March 3, 2003
Page Two
Management's Response:
'
The Finance and Engineering departments are in the process of developing procedures
to reconcile the sidewalk escrow. The Engineering department will annually review
subdivisions over 2-3 years old; upon completion and, if eligible, sidewalk escrow refunds
will be processed accordingly. The Finance department will verify that the subsidiary
'
ledger matches the general ledger balance.
OTHER MATTERS
'
Principal and Interest Repayments on Capital Leases
Observation:
During our audit procedures, we noted that payments in the general fund to reduce capital
lease obligations were recorded within general ledger accounts bearing no relation to the
specific expenditures.
'
Recommendation:
We recommend that payments of principal and related interest be recorded in specific
accounts titled "debt service or capital lease payments" so they may be easily identifiable in
the general ledger.
'
Management's Response:
In the past, departments recorded lease expenses in a number of accounts. The expenses
often included maintenance and other costs. A new lease expense account number has
been created to record all lease expenses for contracts of 12 months or more. Each
department has been instructed to use this account number for lease expenses only and to
forward a copy of the lease agreement to the Finance department. The Finance
'
department will determine the proper accounting treatment (capital vs. operating lease)
which will reconcile with the general ledger.
' Changes in the Government Reporting Model
The Government Accounting Standards Board (GASB) issued its revolutionary new
reporting model in June 1999. The new model dramatically changes the presentation of
' governments' external financial statements. In the GASB's view, the objective of the new
model is to enhance the clarity and usefulness of government financial statements to the
citizenry, oversight bodies, investors and creditors. It will substantially affect the Citys
' financial data accumulation and financial statement presentation processes. Some of the
key aspects of the changes are as follows:
Management's Discussion and Analysis (MD&A) — A comprehensive MD&A will now be
' included as required supplementary information. The MD&A will introduce the financial
statements by presenting an analysis of the government's financial performance for the
year and its financial position at year-end. The MD&A will be in addition to the transmittal
' letter currently required for Government Financial Officers Association (GFOA) award
candidates, such as your city.
CITY OF ALLEN, TEXAS
March 3, 2003
Page Three
Government -Wide Reporting — The City will be required to report financial operations and
net assets, not only at the fund perspective for governmental activities, but will also have to
prepare statements at the government -wide level. This level will distinguish between
government and business type activities. All information at the government -wide level will
be reported using the economic resources measurement focus and accrual basis of
accounting, as enterprise funds do under the current model. Fiduciary activities will be
excluded from the government -wide level of reporting. General government fixed assets,
including infrastructure, and long -tens liabilities of the government will need to be reported
with all other governmental assets and liabilities.
Statement of Activities — Governments will now be required to use a "net program cost'
format for the government -wide statements instead of a traditional operating statement.
This new format groups revenues and expenses by functional categories (such as public
safety, public works, etc.). The purpose of the new statement is to inform readers about the
cost of specific functions and the extent to which they are financed with program revenues
or general revenues of the government. Governments will have the option of reporting both
direct and indirect program costs. Depreciation expense will not generally be reflected as a
cost in the statement of activities.
Infrastructure Reporting — Historically, the City has not been required to record
infrastructure assets in its financial statements. Under the new standard, the City must
report infrastructure assets at historical cost or estimated historical cost. The standard
provides several alternatives for determining historical cost of infrastructure assets.
Although the standard generally requires depreciation of infrastructure assets, the City may
not be required to depreciate these assets if it can demonstrate that it is preserving its
infrastructure at approximately (or above) a disclosed condition level established by the
City.
Fund Level Reoortino — Fund level financial statements will still be required and will provide
information about the City's fund types, including fiduciary funds and blended component
units. General capital assets and general long-term liabilities will only be reported at the
government -wide level. Fund level reporting will continue to focus on fiscal accountability
and reflect the flows and balances of current financial resources. The modified accrual
basis of accounting will continue to be used at the fund level, except for proprietary and
fiduciary funds, which would continue reporting, based on economic resources and the
accrual method of accounting. A reconciliation between the fund and the government -wide
statements will be required on the face of the fund statements. Finally, proprietary fund
cash flow statements must be presented using the direct method.
Presentation of Budgetary Information — The standard requires budgetary statements for
' the general fund and certain other governmental funds as required supplementary
Information. The original adopted budget of the City as well as the final revised budget
must be presented. Actual results on a budgetary basis will need to be reconciled to the
GAAP (generally accepted accounting principles) basis on the face of the statements.
Effective Dates - The effective date of the new pronouncement will require implementation'
by the City for its year ended September 30, 2003. The magnitude of these changes and
the time required preparing for implementation should not be underestimated. We
recommend that the City begin to look at its systems and processes to ensure that the
required information will be available to ensure timely implementation. Further, we
recommend that the City consider the cost of required changes to its systems and
�'' processes to ensure availability of necessary funds in its upcoming budget.
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CITY OF ALLEN, TEXAS
March 3, 2003
Page Four
Manaoement's Response:
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During fiscal year 2002 staffing levels and awareness have improved to allow for
planning and preparation of the many changes this new statement requires. The Finance
staff has been working on fixed asset valuations and reporting requirements to ensure
that the City is ready for this new reporting model. The Finance department will continue
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to work closely with Weaver and Tidwell to implement required changes.
Status of Prior Year Comments
Accompanying this letter is a summary of the status of prior year comments, which should
be read along with our current observations and recommendations.
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Concluding Comments
We appreciate the opportunity to be of service and wish to express our appreciation to the
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officials and employees of the City for their cooperation and assistance during the course of
the audit. We would be pleased to discuss these recommendations in greater detail or
otherwise assist in their implementation.
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This report is intended solely for the information and use of the City council, management,
and others within the organization.
WEAVER AND TIDWELL, L.L.P.
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II
I' CITY OF ALLEN, TEXAS
March 3, 2003
Page Five
STATUS OF PRIOR YEAR COMMENTS
tThe
status of prior year's recommendations is based upon discussion with management and limited review
of their implementation. Such recommendations were reported to the City Council and are more fully
tdescribed
in prior year's Communication of Internal Control Structure Related Matters Noted in the Audit.
Implementation
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Recommendations Implemented Not Implemented In Process
t. We recommended that the City maintain
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the proper and adequate staffing resources
to appropriately perform the City's day -today
financial activities. X
2. We recommended that the City generate
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aged water and sewer consumer accounts
receivable subsidiary reports and reconcile
the respective general ledger balances to
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the subsidiary information on a monthly basis. X
3. We recommended that accrued unbilled utility
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receivables should be recorded in general
ledger accounts separate from those used to
record charges already billed to consumers. X
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4. We recommended that the City review its
treatment of funds received that are to be
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restricted for specific future expenditures.
These amounts should be recorded as
revenue when received and held as
designated for a specific purpose until the
funds are actually expended, at which time
the expenditure should be recorded. X
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5. We recommended that the City generate
detailed subsidiary reports on revenue from
the municipal court and reconcile the
respective general ledger balances to the
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subsidiary information on a monthly basis.
Reconciling differences should also be
investigated and resolved monthly. Both
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the municipal court and the City's accounting
department should operate in harmony to
ensure the accomplishments of these
recommendations. X
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