Comprehensive Annual Financial Reportmprehensive Annual
Financial Report
For Fiscal Year Ended
September 30, 2009
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/ALLEN, TEXAS
Allen Event Center
In July of 2008, construction of the Allen Event Center
began along the southeast corner of US 75 and Stacy
Road inside the Village at Allen shopping district. Upon
its completion in late 2009, the venue will total
188,000 square feet with capacity for 8,100 seats, 24
luxury suites, 5 hospitality suites and two ice rinks. The
project is a joint venture between The MGHerring
Group, Global Entertainment Corporation, and the City
of Allen. The center will serve as home to concerts,
trade shows, professional sporting events, festivals,
community ceremonies and a Central Hockey League
(CHL) franchise. Ownership of the CHL franchise was
awarded to Top Shelf, LLC. At the Event Center topping
off ceremony in April of 2009 Top Shelf, LLC announced
the name of the team as the Allen Americans.
Find out more about Allen, Texas at www.citvofallen.ore and www.allentx.com
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF ALLEN
FISCAL YEAR ENDED
SEPTEMBER 30, 2009
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
II. FINANCIAL SECTION
Independent Auditor's Report 1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS 3
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
EXHIBIT Page
I. INTRODUCTORY SECTION
Statement of Net Assets
Letter of Transmittal
i
Certificate of Achievement
vii
Organizational Chart
viii
Elected Officials and Administrative Officers
ix
II. FINANCIAL SECTION
Independent Auditor's Report 1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS 3
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Assets
1
19
Statement of Activities
2
20
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet — Governmental Funds
3
22
Reconciliation of the Balance Sheet of Government
Funds to the Statement of Net Assets
4
24
Statement of Revenues, Expenditures and
Changes in Fund Balances — Governmental Funds
5
25
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement
of Activities
6
27
Proprietary Funds Financial Statements
Statement of Net Assets — Proprietary Funds
7
28
Reconciliation of the Fund Level Statement of Net Assets
of Proprietary Funds to the Government -wide
Statement of Net Assets
8
29
Statement of Revenues, Expenses and Changes
In Net Assets — Proprietary Funds
9
30
Reconciliation of the Statement of Revenues,
Expenses and Changes in Net Assets of
Proprietary Funds to the Statement of Activities
10
31
Statement of Cash Flows — Proprietary Funds
11
32
Component Units Financial Statements
Statement of Net Assets — Component Units
12
33
Statement of Activities — Component Units
13
34
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPEB Funding Progress and Contributions A-1 66
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances — Budget and Actual A-2 67
Notes to Required Supplementary Information 68
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
EXHIBIT
Page
Notes To Financial Statements
Note 1.
Summary of Significant Accounting Policies
35
Note 2.
Deposits, Investments and Investment Policies
42
Note 3.
Receivables
45
Note 4.
Capital Assets
46
Note 5.
Long -Tenn Debt
50
Note 6.
Interfund Transfers
58
Note 7.
Retirement Plan
59
Note 8.
Water and Sewer Contracts
61
Note 9.
Deferred Compensation Plan
61
Note 10.
Risk Management
61
Note 11.
Other Postemployment Benefits (OPEB)
62
Note 12
Commitments and Contingent Liabilities
65
Note 13
Prior Period Adjustment
65
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPEB Funding Progress and Contributions A-1 66
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances — Budget and Actual A-2 67
Notes to Required Supplementary Information 68
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Comparative Balance Sheets - General Fund
B-1
70
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Fund
B-2
71
Comparative Balance Sheets — Debt Service Fund
B-3
72
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — Debt Service Fund
B-4
73
Budgetary Comparison Schedule — Debt Service Fund
B-5
74
Comparative Balance Sheets — General Capital Projects Fund
B-6
75
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Capital Projects Fund
B-7
76
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
EXHIBIT
Page
Comparative Balance Sheets - General Obligation Bond Fund
B-8
77
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balance - General Obligation Bond Fund
8-9
78
Non -major Governmental Funds
Combining Balance Sheet
C-1
80
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
C-2
82
Major Enterprise Funds
Comparative Statements of Net Assets - Water and Sewer
D-1
85
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets - Water and Sewer
D-2
86
Comparative Statements of Cash Flows - Water and Sewer
D-3
87
Comparative Statements of Net Assets - Solid Waste
D-4
88
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets - Solid Waste
D-5
89
Comparative Statements of Cash Flows - Solid Waste
D-6
90
Comparative Statements of Net Assets - Drainage
D-7
91
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets - Drainage
D-8
92
Comparative Statements of Cash Flows - Drainage
D-9
93
Comparative Statements of Net Assets - Golf Course
D-10
94
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets - Golf Course Fund
D-11
95
Comparative Statements of Cash Flows - Golf Course Fund
D-12
96
Internal Service Funds
Combining Statement of Net Assets
E-1
98
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets
E-2
99
Combining Statement of Cash Flows
E-3
100
CITY OF ALLEN, TEXAS
F-5
106
COMPREHENSIVE ANNUAL FINANCIAL REPORT
G-2
111
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
F-6
107
TABLE OF CONTENTS
TABLE
Page
EXHIBIT
Page
Discretely Presented Component Units
Reconciliation of the Governmental Funds Statement of
1
Comparative Balance Sheets -Economic Development Corporation
F-1
102
Reconciliation of the Governmental Funds Balance Sheet to the
Fund Balances, Governmental Funds
3
Statement of Net Assets
F-2
103
Comparative Statements of Revenues, Expenditures and Changes
Assessed Value and Estimated Actual Value of Taxable Property
5
in Fund Balances
F-3
104
Reconciliation of the Governmental Funds Statement of
Principal Property Taxpayers
7
Revenues, Expenditures and Changes in Fund Balance
F-4
105
Comparative Balance Sheets -Allen Community Development
Corporation
F-5
106
Reconciliation of the Governmental Funds Balance Sheet to the
G-2
111
Statement of Net Assets
F-6
107
Comparative Statements of Revenues Expenditures and
TABLE
Page
Changes in Fund Balances
F-7
108
Reconciliation of the Governmental Funds Statement of
1
115
Revenues, Expenditures and Changes in Fund Balance
F-8
109
E. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Comparative Schedules by Source
G-1
110
Schedule by Function and Activity
G-2
111
Schedule of Changes by Function and Activity
G-3
113
TABLE
Page
STATISTICAL SECTION
Net Assets by Components
1
115
Changes in Net Assets
2
116
Fund Balances, Governmental Funds
3
118
Changes in Fund Balances, Governmental Funds
4
119
Assessed Value and Estimated Actual Value of Taxable Property
5
120
Direct and Overlapping Property Tax Rates
6
121
Principal Property Taxpayers
7
122
Ad Valorem Tax Levies and Collections
8
123
Ratio of Outstanding Debt by Type
9
124
Ratio of General Bonded Debt Outstanding
10
125
Direct and Overlapping Governmental Activities Debt
11
126
Pledged -Revenue Coverage
12
127
Demographic and Economic Statistics
13
128
Principal
Employers
14
129
Full -Time
Equivalent City Government Employees by
Function/Program
15
130
Operating Indicators by Function/Program
16
131
Capital Asset Statistics by Function/Program
17
132
CITY OF ALLEN
February 23, 2010
Honorable Mayor and City Council,
City Manager,
Citizens of Allen:
The Finance Department is pleased to submit the Comprehensive Annual Financial Report
(CAFR) of the City of Allen, Texas (the City), for the fiscal year ended September 30, 2009.
This report is published to provide the City Council, our citizens, City staff, and other readers with
detailed information conceming the financial position and activities of the City. Management has
prepared the report and is responsible for both the accuracy of the presented data and the
completeness and fairness of the presentation, including all disclosures. To the best of our
knowledge and belief, the enclosed data is complete and reliable in all material respects. All
disclosures necessary to enable the reader to gain an understanding of the City's financial
activities have been included.
Also included in this report is an unqualified ("clean') opinion on the City of Allen's financial
statements for the year ended September 30, 2009 issued by Weaver. The independent auditors'
report is located in the beginning of the financial section of the CAFR.
THE REPORT
The CAFR is presented in three sections: introductory, financial, and statistical. The introductory
section includes this transmittal letter, a list of principal officials, organizational charts, and the
Government Finance Officers Association of the United States and Canada's (GFOA) Certificate
of Achievement for Excellence in Financial Reporting.
The financial section is prepared in accordance with generally accepted accounting principles.
This section of the CAFR includes the Management Discussion and Analysis (MDSA) which can
be found immediately following the independent auditor report, the basic financial statements and
combining and individual fund statements and schedules, as well as the required supplementary
information.
The MDBA is a narrative introduction, overview and analysis to accompany the basic financial
statements and should be read in conjunction with the transmittal letter. The basic financial
statements include the government -wide financial statements that present an overview of the
City's entire operations, while the fund level statements present the financial information of each
of the City's major funds, as well as nonmajor funds.
Lastly, the statistical section includes selected financial and demographic information, generally
presented on a multi-year basis.
REPORTING ENTITY
This report includes all funds of the City including its component units. Component units are
legally separate entities for which the City is financially accountable but are not part of the City's
operations. The Allen Economic Development Corporation (AEDC) and Allen Community
Development Corporation (ACDC) are included in the financial statements as discretely
presented component units.
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042.214.509.4100
WEB: www.citvofalleaore • EMAIL: wa@cityofallen.org
CITY PROFILE
The City of Allen is the fourth largest city in population in Collin County, one of the fasted growing
counties in the nation. Located 25 miles north of downtown Dallas on US 75 and 31 miles from
the Dallas -Fort Worth International Airport, Allen encompasses approximately 26 square miles.
With a population of 3.5 million in a 30 -mile radius, Allen sits in a prime location for restaurants,
shopping centers and other retail venues. The quality of the Allen community attracts well-
educated residents with a high level of spending power and disposable income. Current
population of 83,929 is estimated to grow to 97,938 at build out.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a
vote of the people and provides for seven non-partisan Council members, including the Mayor, to
be elected at -large to staggered terms of three years. The Council is responsible for enacting
ordinances, resolutions, and regulations governing the City as well as adopting the annual budget
which serves as the foundation for financial planning and control. The City Council appoints the
City Manager, who has full responsibility for carrying out Council policies and administering City
operations. The Council also appoints the Municipal Judge and various advisory boards.
City service departments provide a full range of services including police and fire protection,
emergency ambulance service, municipal courts, building code enforcement, library, parks and
recreation, tourism, water and sewer services, sanitation/solid waste services, traffic engineering,
and construction and maintenance of streets and infrastructure. The City employs 657.5 full time
equivalent positions.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
The Dallas -Fort Worth Metroplex (DFW) has been impacted by the recession and credit crisis but
has fared better than the nation. The Federal Reserve of Dallas in their Southwest Economy
Third Quarter 2009, reported "Texas stumbled into recession last fall, about a year behind the
nation as a whole. As hard as it has been hit, the state has fared better than most of the rest of
the country during this downturn. Job losses have been less severe. Housing markets haven't
suffered as much."
Allen's Position in the Region
Allen is a community that offers exceptional housing, award-winning schools and a dynamic
business climate all of which are strong factors in the success of the City's economy. The City
also continues to benefit from other favorable conditions associated with a desirable location for
work, destination and living.
Forbs.com lists Allen as one of "America's 20 Best Places to Move", Money Magazine includes
Allen in its "top 20 Best Places to Live,' and for the second year Congressional Quarterly ranked
Allen as the 9" safest city in America with populations exceeding 75,000 residents. This ranking
also placed Allen as the safest city in Texas. While these publications are documenting the
nation's economic downturn, Allen continues to move forward.
Allen has benefited from a well-educated and affluent workforce. According to U.S. Census
Bureau's American Community Survey published in 2009, Allen's median household income of
$93,688 compares favorably to $56,313 for DFW and $49,078 for Texas. The average price of
homes sold in 2009 was $233,166 and the average appraised home value was $218,530. In
2009 the average permit value of a new home was $366,766. With a median age of 34, over
46.7% of adults have a Bachelors degree or higher.
Long Range Financial Planning
The City's responsiveness to emerging economic challenges and its long-term planning have
been key factors in its fiscal health. The City has a five-year financial plan and a five year capital
improvement plan where departments reevaluate project priorities, review funding sources, and
identify new projects as needed. Using this plan allows the City to plan the timing of projects
associated with debt issuance and the effects on the tax rate. Although economic forecasts
remain favorable, the City has established a "no growth budget" for 2010 as explained in the
MDRA under "Economic Factors and Next Year's Budgets and Rates".
The long range capital improvement program involves selling approximately $14 million in G.O.
Bonds in the spring of 2010, the fourth year of a six-year plan. The City will again reevaluate the
amount it can sell and the long range financial impact on the tax payers.
Also, planned is the second G.O. bond sale for the 2004 voter approved performing arts center.
The Arts Park and Performing Hall are being jointly developed by the complex's owner cities of
Allen, Frisco and Plano, along with member cities Fairview and Melissa. Public commitment to
the project includes $57 million in bonds approved by residents of the owner cities. With an
additional $3 million in county grant funds and more than $10 million of pledged support from
private businesses, foundations and individuals, almost $70 million of the projects $80 million
Phase 1 cost has been accounted for.
Relevant Financial Policies
A new Debt Management and Fund Balance Reserve policy is being presented for Council
approval in February 2010. The Investment policy is also approved annually by the Council. All
other policies (accounting, budgeting, procurement, capital improvements, asset management,
and risk management) are internal policies approved by the Finance department and City
Manager. These policies follow guidelines established by management, professional
organizations and/or state and federal laws.
On a quarterly basis the Finance department prepares financial and investment reports which are
presented to the City Council.
Fiscal Year 2009 Highlights
In November 2009 the doors opened on the $52.6 million Allen Event Center featuring an
188,000 square feet venue with the capacity for 8,100 seats, 24 luxury suites, 5 hospitality suites
and a community ice rink that sports a second sheet of NHL standard ice. The majority of
planning and construction occurred during fiscal 2009 and is an example of teamwork between
multiple city departments, and exemplifies an investment to the community by public and private
partners. The Allen Event Center anchors over 1 million square -feet of new retail development in
the Villages at Allen adding to the property tax base and sales tax base. Additionally, several new
hotels are now located in close proximity of the Event Center.
Watters Creek at Montgomery Farms, Allen's first "live, shop, and play" destination has become
another central destination point for Allen with its first-class shopping and dining opportunities.
While other cities experienced decreasing sales tax revenue, both of these new developments
have contributed to bringing people from surrounding communities to Allen resulting in an 11%
increase in sales tax revenue from the prior year.
Despite a construction dip throughout the nation and with Allen's residential and commercial
activity decreasing 33%, property values increased $570 million or 8.8% from the preceding year.
Assessed property values have increased 46.8% over the past five years and reflect the
significant growth the City of Allen has experienced. Property taxes account for 51.85% of the
General Fund budget.
In response to the 2007 bond election for the capital improvement program, the City issued over
$15 million of new General Obligation Bonds to support the third year of a six-year plan. Despite
voter approval to increase taxes, the City Council has decreased the tax rate for sixteen
consecutive years while also continuing to cash finance capital projects and adding to the
General Fund balance.
While other cities faced budget cuts and staff reduction, the City of Allen added 10.55 new full
time equivalent positions. The overall increase in staff allows the City to support a higher level of
service required by new development within the City.
Healthcare costs continue to rise; however health and dental expenditures for 2009 were
$540,131 less than budgeted. A wellness program is promoted by the City to encourage
employee participation and awareness of programs designed to improve health and lower costs.
The City's Information Technology Department completed the third year of a five-year IT Master
Plan. Several large-scale projects included:
• Installing a point-to-point microwave network which created redundancy of the City's fiber
and T1 networks. This network also provides accessibility for public safety and other City
departments through the use of mobile application in the future and the installation helps
the City eliminate costs associated with the leasing of TV's for non public safety and
critical service facilities.
• Awarding a contract for a comprehensive Public Safety computer aided dispatch and
records management system to be utilized by the Fire and Police Departments.
• Worked with Police and Fire to complete a request for proposals for the replacement of
the current radio system to be jointly owned between Allen and Plano but include other
cities as subscribers such as Wylie and Murphy. This will move Allen in the direction of a
completely digital radio system.
• Completed the installation of Voice over Internet Protocol at Chase Oaks golf course, Joe
Farmer Recreation Center, Don Rodenbaugh Natatorium and the Senior Center,
eliminating costs for leasing dedicated voice lines to these facilities.
In addition to the infrastructure improvements related to the Allen Event Center and the Village at
Allen developments, the following projects were facilitated by the Engineering Department:
• Ramp reversals along U.S. 75 at Bethany supporting Watters Creek.
• New construction and improvement to West Exchange Parkway and Greenville Ave.
• The jail was updated and expanded.
• Purchased land for fire Station #6 to be located at Ridgeview Drive and Watters Road.
• Design and engineering began for a new service center which will bring all City
departments under one location.
• Four large-scale sewer replacement projects were completed.
• Construction of four new traffic signals and completion of an advanced traffic
management system and traffic signal upgrade with new progression based timing and
radio control functionality.
Two on-line programs were added. The Park and Recreation Department implemented on-line
class registration and Community Services completed the expansion of online billing and
payment options for residents. Also, enhancement of online tools and resources continued on
the City's website, www.citvofallen.om. The live video streaming allows residents to view current
programming on ACTV including broadcast of City Council and Planning and Zoning Commission
meetings. This expands the reach of ACTV programming beyond cable's government access
channel.
The City adopted the North Texas Municipal Water District's Water Conservation Drought
Contingency and Water Emergency Response Plan in order to prepare for the future needs of the
City. Water conservation was improved by adding a rebate program to include qualifying SMART
irrigation technology equipment. A water and sewer rate study completed in 2006 was updated in
2009 and rates were adjusted per the plan. Also, the North Texas Municipal Water District final
annual expenditure amounts for Allen were under the projected budget which resulted in savings
of $317,921.
With $209 million available to municipalities in North Texas through the Energy Efficiency and
Conservation Block Grants (EECBG), the City of Allen secured $1.8 million for Fire Station 5.
The fire station will be built based upon the Leadership in Energy and Environmental Design
(LEED) standards of energy efficiency and the reduction of energy use. In addition, the City was
awarded $693,000 for four other projects including solar panels for the new service center and
the Municipal Court/Parks Building, a lighting retrofit for the Police Headquarters building and
window film for City Hall. The improvements are expected to reduce annual energy costs by
$19,000.
The Allen Economic Development Corporation (AEDC) continues to recruit and attract high-
quality, aesthetically attractive and environmentally sound businesses. Cisco Systems will be
building a Tier III data center that will generate more than nine million dollars in taxes over the
next 10 years. Also, AEDC retained the city's largest private employer, Experian, a global
information services company, which signed a 10 -year renewal lease.
Attesting to its strong tax base and financial management, the City's general obligation bond
ratings were reaffirmed at their existing levels of Aa2 and AA+ and the Water & Sewer Bonds
were upgraded from A2 to Aa3 by Moody s and reaffirmed at AA+ by Standard & Poor's.
AWARDS AND ACKNOWLEDGEMENTS
Awards -- The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Allen for its CAFR for the fiscal year ended September 30, 2008. This was the eleventh
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
CAFR 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.
Acknowledgements — We would like to express our sincere gratitude to City personnel who
contributed to this report, especially Dana Thornhill, Accounting Manager, Tru Nguyen, Senior
Accountant, Kembedy Jones, Accountant and Stephanie Helmick, Accountant. Appreciation is
expressed to representatives of Weaver and Tidwell L.L.P. for their invaluable assistance in
producing the final document and to the City Manager's office and the members of the City
Council whose leadership and commitment are vital to the health and vitality of Allen.
Respectfully submitted,
Kevin Hammeke Joanne Stoehr
Finance Director Assistant Finance Director
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City of Allen
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Financial Report
for the Fiscal Year Ended
September 30, 2008
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.
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ORGANIZATIONAL CHART
City Council
QtyAttomey City Manager Municipal Judge
Assistant City Manager Building and Code
Compliance
Public and Media Relations City Secretary
Community Services w Engineering
Finance I I I Fire
Human Resources W Information Technology
Library W Padcs and Recreation
Planning and Police
Development
CITY OF ALLEN, TEXAS
CITY OFFICIALS
Council Members
Mayor
Stephen Terrell
Mayor Pro Tem
Debbie Stout
Place 2 Council Member
Ross Obermeyer
Place 3 Council Member
Joey Herald
Place 4 Council Member
Robin L. Sedlacek
Place 5 Council Member
Gary L. Caplinger
Place 6 Council Member
Jeff McGregor
Management Staff
City Manager
Peter H. Vargas
Finance Director
Kevin Hammeke
Assistant Finance Director
Joanne Stoehr
Accounting Manager
Dana Thornhill
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of
the City Council
CITY OF ALLEN, TEXAS
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units, each major fund
and the aggregate remaining fund information of the City of Allen (the City) as of and for the
year ended September 30, 2009, which collectively comprise the City's basic financial
statements, as listed in the table of contents. These basic financial statements are the
responsibility of the City's management. Our responsibility is to express an opinion on these
basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and 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 financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
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 opinions.
In our opinion the basic financial statements referred to above present fairly, in all material
respects, the financial position of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Allen at September 30, 2009 and the respective changes in
financial position and cash flows, where applicable, thereof, for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
February 17, 2010 on our consideration of the City's internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of the testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The accompanying management's discussion and analysis, schedule of TMRS funding progress
and contributions, schedule of OPEB funding progress and contributions and budgetary
comparison information on pages 3 through 18 and 66 and 68, respectively, are not a required
part of the basic financial statements but are supplementary information required by the GASB.
We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on
it.
AN INDEPENDENT WEAVERAND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 12221 MERIT DRIVE, SUITE 1400, DALLAS 7A 75251
INTERNATIONAL WWWWEAVERLLPCOM 1 P.(972)4901970 P(972)7029321
CITY OF ALLEN, TEXAS
February 17, 2010
Page 2
Our audit was made for the purpose of forming opinions on the basic financial statements taken
as a whole. The introductory section, combining and individual major and non -major fund
financial statements and schedules, the discretely presented component units financial
statements and schedules, schedules of capital assets used in the operation of governmental
funds, and statistical tables listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the basic financial statements of the City. The combining
and individual major and non -major fund financial statements and schedules, discretely presented
component units financial statements and schedules, and schedules of capital assets used in the
operation of governmental funds have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects
in relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we express no opinion on such data.
4)14P%l aajup.�,rzr P.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 17, 2010
MANAGEMENT'S DISCUSSION
AND ANALYSIS
aeSpFCT
ciry OF PLLSN
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
As management of the City of Allen, Texas, we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2009.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities (net assets) at September 30, 2009
by $581,948,061. Of this amount, $72,035,448 (unrestricted net assets) may be
used to meet the government's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $52,721,984. The increase is primarily a
result of an increase in developer contributions due to growth in commercial
development, an increase in the assessed property values, and the Allen Event
Center infrastructure.
• The City's governmental funds reported combined ending fund balances of
$68,151,272 at September 30, 2009, an increase of $14,619,867 from the prior
fiscal year.
• At the end of the fiscal year, the unreserved fund balance for the General Fund
was $13,827,083 or 27% of total General Fund expenditures.
• On a government -wide basis, the City's total liabilities increased by $16,222,960.
The key factor for this increase is a result of the issuance of $15,400,000 in
General Obligation Bonds.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: 1)
government -wide financial statements, 2) fund financial statements and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements.
Government -wide financial statements - The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to
that of a private -sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in
net assets may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating. To assess the overall health of the City, other non-financial factors
should also be taken into consideration, such as changes in the City's property tax base and the
condition of the City's infrastructure.
The Statement of Activities presents information showing how the City's net assets changed
during the fiscal year. All changes in net assets are reported when the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash Flows in
future fiscal periods (e.g. uncollected taxes and earned but unused compensated absences).
Both the Statement of Net Assets and the Statement of Activities are prepared utilizing the
accrual basis of accounting as opposed to the modified accrual basis used in prior reporting
models.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
In the government -wide financial statements, pages 19 through 21, the City is divided into three
kinds of activities:
• Governmental activities - Most of the City's basic services are reported here,
including the police, fire, library, community development, parks and recreation,
municipal court, and general administration. Property and sales taxes, charges for
services, franchise fees, and state and federal grants finance most of these
activities.
• Business -type activities - The City's water, sewer, solid waste, drainage, and golf
course operations are reported here. These are functions intended to recover all
or a significant portion of their costs through user fees and charges.
• Component units - The City includes two separate legal entities in this report: the
Allen Economic Development Corporation (AEDC) and the Allen Community
Development Corporation (ACDC). Although legally separate, these component
units are important because the City is financially accountable for them.
Fund financial statements - A fund is a grouping of related accounts used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like
other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City can be divided
into two categories: governmental and proprietary.
Governmental Funds - These funds are used to account for the majority of the City's activities,
which are essentially the same functions as governmental activities in the government -wide
statements. However, unlike the government -wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as
resources available for future spending at fiscal year end. These funds are reported using the
modified accrual basis of accounting, which measures cash and all other financial assets that
can be readily converted to cash. When compared with similar information in the broader
government -wide financial statements, readers may better understand the long-term impact of
the government's near-term financing decisions. Reconciliation is provided that details the
relationships or differences between governmental activities and governmental funds;
reconciliation follows the fund financial statements.
The City maintains several individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balance for the General Fund, Debt Service Fund, General
Capital Projects Fund and General Obligation Bond Fund, all of which are considered to be
major funds. Data for the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of the non -major governmental funds is provided in
the form of combining statements elsewhere in this report. The basic governmental fund
financial statements can be found on pages 22 through 27 of this report.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Proprietary Funds - The City maintains two different types of proprietary funds: enterprise
funds and internal service funds. Enterprise funds are used to report the same functions
presented as business -type activities in the government -wide financial statements. The City
uses enterprise funds to account for its water and sewer operations, solid waste collection,
disposal services, drainage operations, and golf course operations. Internal service funds are
an accounting device used to accumulate and allocate costs internally among the City's various
functions. The City uses its internal service funds to account for vehicle, machinery, and
equipment replacements and costs associated with workers compensation, liability and property
insurance, and employee medical and dental insurance programs. These services have been
included within governmental activities in the government -wide financial statements as they
predominantly benefit governmental rather than business -type functions.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water and sewer operations, solid waste collection, and disposal services
since they are considered to be major funds of the City. The Drainage Fund and the Golf
Course Fund are the only remaining enterprise funds, so they are being presented as major
funds even though they do not meet the criteria of a major fund established in Governmental
Accounting Standards Board Statement No. 34. All internal service funds are combined into a
single aggregated presentation in the proprietary fund financial statements. Individual fund data
for the internal service funds is provided in the form of combining statements elsewhere in this
report.
The basic proprietary fund financial statements can be found on pages 28 through 32 of this
report.
Notes to the Financial Statements - Additional information that is essential to a full
understanding of the data provided in the govemment-wide and fund financial statements is
provided in the notes to the financial statements found on pages 35 through 65 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this
report also presents required supplementary information highlighting budgetary information for
the General Fund and funding schedules for TMRS and OPEB found on pages 66 through 68
of this report.
The combining statements referred to earlier in connection with non -major governmental funds
and internal service funds are presented following the required supplementary information.
Comparative schedules of capital assets used in the operation of governmental funds are found
on pages 110 through 113.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, over time net assets may serve as a useful indicator of the financial position of
a government. The assets of the City of Allen exceed the liabilities by $581,948,061 as of
September 30, 2009. By far the largest portion of the City's net assets ($508,189,441 or 87%)
reflects its investment in capital assets (i.e. land, buildings, infrastructure, vehicles, machinery,
and equipment), less any related debt used to acquire those assets that are still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
An additional portion of the City's net assets, $1,723,172, represents resources that are subject
to external restrictions on how they may be used; the remaining balance of $72,035,448 may be
used to meet the government's ongoing obligations to citizens and creditors.
Analysis of the City's Operations — As of September 30, 2009, the City had an overall
increase in net assets of $52,721,984 for the government as a whole which represents an
increase of $53,425,968 for governmental activities and a decrease of ($703,984) for business -
type activities. The increase in governmental activities is due to the continued economic
development, developer contributions, the Allen Event Center infrastructure, and an 8.8%
increase of total assessed property values from the preceding year. Assessed property values
have increased 46.8% over the past five years. The decrease in net assets for the business
activities is due to a prior period adjustment in the amount of $3,078,428 relating to depreciation
of capital assets during the year of implementation of GASB34. A prior period adjustment is
also reflected in the governmental activities in the amount of $11,985,861, but is offset by
increases in other areas. A summary of the City's operations for the year ended September 30,
2009 is provided in Table 2.
3
Table 1
No A dai e
Govemmental
Activltles
Busness-vane
M'vites
Total
2409
2008
2N9
2008
21XXI
2008
Lunen and other assets
$ 93,668.409
71,162,034
$
3$732,861
31,09&189
$ 126,401,370
102,261.223
Capital assets
480.222369
441,881827
107,157,875
110693620
5 NO,244
02,575,447
Total Assets
583,890,778
513,043,861
139,890838
141,792809
723781,614
654,838,670
Long-lerm llebilities
108,380285
91
14512938
15,404,511
12289,4201
112.993,572
Otherliabilitres
15.656072
9026327
3,284280
3W694
18,940,352
12,617,021
TOM LiabN4es
124,036.337
ID6,615380
17,797.216
18995205
141,033,553
125.610.593
Net Assets
Invested In capital
assets, net of related
debt
415,201,199
389,000,938
92,988,242
95.620,414
5081
464,701,352
Resbided
1,068,651
1,151,014
654521
94,863
1,723,172
2,074,677
Unrestnned
43,5 ,591
38195.721
28,450,857
26254327
72.035,48
62,450048
Total Net Assele
$ 458,854,41
400428,473
$
122,093,620
122,797,604
$581.940.061
529,226,077
An additional portion of the City's net assets, $1,723,172, represents resources that are subject
to external restrictions on how they may be used; the remaining balance of $72,035,448 may be
used to meet the government's ongoing obligations to citizens and creditors.
Analysis of the City's Operations — As of September 30, 2009, the City had an overall
increase in net assets of $52,721,984 for the government as a whole which represents an
increase of $53,425,968 for governmental activities and a decrease of ($703,984) for business -
type activities. The increase in governmental activities is due to the continued economic
development, developer contributions, the Allen Event Center infrastructure, and an 8.8%
increase of total assessed property values from the preceding year. Assessed property values
have increased 46.8% over the past five years. The decrease in net assets for the business
activities is due to a prior period adjustment in the amount of $3,078,428 relating to depreciation
of capital assets during the year of implementation of GASB34. A prior period adjustment is
also reflected in the governmental activities in the amount of $11,985,861, but is offset by
increases in other areas. A summary of the City's operations for the year ended September 30,
2009 is provided in Table 2.
3
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Revenues:
Program Revenue.:
Charge. for services $
Operating grants
and contributions
Capital grants and
contributions
General Revenues:
Property taxa.
Sales tex
Franchise taxes
Hotel motel taxes
Other taxes
Interest earnings
Gain on sale of
capital asset
Miscellaneous
Total Revenue,
Expansae:
General government
Public safety
Public works
Culture and
recreation
Community
devabpment
Interest onlong-
term debt
Water and sewer
Environmental
waste services
Drainage
Cog course
Total Espana.
Increase in net assets
before trerafers
Transfers
Increase in net means
Net asse6. beginning of
year (as previously
reported)
Phar Pencil Adjustment
Net assets, and of year
39.456387
Table 2
5,505,897
39,450,387
37.261,411
11,140,337
10,048,534
Changes in Net
Assets
10,046,534
5,533,573
5,530,732
Governmental
Activities
Business-haveA
myrties
jptp)
14,508,426
2W9
2008
2009
2W8
21gg
2M
8,225.038
8,747,568
32,928,981
32,135.803
39,154,023
40.883,471
2,771,709
2,782,517
- 667,024
113.734
2.M.7W
2,762,517
70,200,823
42.823,515
2,135,805
14,561,455
72,336700
57,384,970
39.456387
37,261,411
5,505,897
39,450,387
37.261,411
11,140,337
10,048,534
23,436274
11,140,337
10,046,534
5,533,573
5,530,732
14,893.306
6533,573
5,536732
597,512
719,039
14,508,426
597,512
719,039
1.987,765
1.906001
17,6139,513
1,907.765
1,906081
1,550,913
2,437,926
499.148 775,413
2,050.061
3,213,339
113,734
57,979
- 667,024
113.734
729.603
1,052.154
51165fi
1.052184
511656
22.222824
21,357,015
4.893,175
140,631.973
112.798.950
35564020 48140395
176.195.993
160939.353
14,304,910
13,468,124
5,505,897
19,674,742
14,304,910
13.466.124
24,498.604
23,436274
(3,211,4W)
(2806598)
24,498,804
23,438,274
14,893.306
14,508,426
14,893,308
14,508,426
17,689,583
1619801560
2,374,444
161888,148
17,6139,513
16,M'sidt
2,718,884
4,557,098
2,718,864
4,557,090
4,326330
4,216856
4,328,330
4,219,858
22,227,624
21,357,015
22.222824
21,357,015
4.893,175
4,433,560
4,093,175
4,433,580
692,180
710.711
692,180
710,711
2.165144
1 884 367
21651H
1964 387
78,431,597
A.170.34B
29.978123
28485853
106409720
105638.001
62,200,376
35,8281610
5,505,897
19,674,742
67.786273
56303,352
3.211.453
2.806596
(3,211,4W)
(2806598)
65,411,829
38,436206
2,374,444
161888,148
67786,273
553031352
408,428,473 37,933,267 122,797,604 106929,458 529,228,077 473,02,725
(11965881) (3078428) 1150642891
$ 459,654,441 408,428.03 122,093.620 122.797.604 581.948,461 526226,077
7
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Governmental activities
Revenues — The following chart visually illustrates the City's revenue by sources for
governmental activities.
Revenue by Source -Governmental Activities
Charges for
services
`$6,225,036
/ 4%
Capital Grants and
Contributions
570,200,823
49%
Sales Tax
$11,140,337
8%
Operating Grants
&Contributions Transfers franchise Taxes
$2,771,709 $3,211,453 Other $5,533,573
2% 2% $5,310,108 4%
4%
Revenues for the City's governmental activities increased by $27,833,015 or 25%. Major
components of revenue decreases/increases are explained as follows:
• Capital grants and contributions increased by $27,377,308 from the prior year due to
agreements and infrastructure related to the Allen Event Center.
• While the City was able to lower the property tax rate from $0.557 to $.0556 per $100
valuation, the property tax base and assessed property value increased on the average
single family home by 3.3%.
• Despite the downturn in the economy, sales tax revenue increased by 11% due to
increased commercial development and population growth.
• Charges for services decreased by 29% when compared to the prior year. This
reduction in revenues is due to the roadway impact fees that were collected in the
preceding year for the Village at Allen development. However, due to incentive
agreements generated from the commercial developments, the fees were refunded in
the preceding year as well and were shown as expenses.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Expenses for governmental activities were minimal and were only increased by $1,261,249 or
2%. Components of increases and decreases are explained as follows:
• Expenses include employee annual merit increases.
• As a result of the addition of new staff, as well as increased medical claims, the
cost the City contributes for health insurance premiums increased by 12%.
• Street construction consisted of expansion of the lanes on Exchange Parkway from
Twin Creek to State Highway 121 and expanding Ridgeview to include Custer to
Alma.
• The General Fund transferred a total of $269,955 to the Golf Course Fund to cover
operating expenses.
• Community Development expenses decreased by 40% due to the prior year
incentive agreements generated from the Village at Allen development. The
previous year expenses were offset by the roadway impact fees that were collected.
The following chart illustrates the relationship between expenses and program revenues for
governmental type activities.
$25,000,000
$20,000,000
$15,000000
$10.000 000
$5,000000
Expenses and Prognun Revenues-Govummental AclOvlees
H,brk
c°C°hare �O1M,w ,,, rnrerea o
re„� Leh b'tlRee. "'rroe�
nr °fib" �P06ry "°�e51
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Business -type activities —
Revenues — The following chart visually illustrates the City's revenue by sources for business -
type activities.
Revenue By Source - Business -Type Activities
Charges for
Services
32.928,987
93%Capital Grants 8
Contnbuhons
2,135,885
- A,-,- 6%
Other Revenue
499,148
1%
Business -type activities revenues decreased $12,576,375 or 26%. Major components of the
decreases/increases are as follows:
Capital contributions for water and sewer lines and impact fees decreased by 85% as
major projects have been completed.
Charges for services for business -type activities realized a minimal increase of $793,084
or 2.5%. Water sales increased by 2% and sewer charges increased by 10% from the
previous year.
Interest earnings decreased from $775,413 in FY2008 to $499,148 in FY2009, a
reduction of 35%, as a result of the continued decline of rates on investments during
FY2009.
10
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Expenses for business -type activities increased by $1,512,470 or 5%. The increases were
primarily a result of expansion of waterlines, sewer replacement, and continued renovation of
Hillside Water Tower. The following chart illustrates the relationship between expenses and
program revenues for business -type activities:
Expenses and Program Revenues - Business -type Activities
em mo 000
s Mm0
rz =,M
n5,0o0,000
smA00®
65,000000
Water&Sev r Solid M Drainage GOVCour e
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental funds
The focus of the City of Allen's governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing
the City's measure of a government's net resources available for spending at the end of the
fiscal year.
At the end of the current fiscal year, the governmental funds reported combined ending fund
balances of $68,151,272, an increase of $14,619,867 in comparison with the prior fiscal year.
Approximately 89% or $60,364,821 constitutes unreserved fund balances, which are available
for spending at the government's discretion. The remaining fund balances are reserved to
indicate that they are not available for new spending because the funds have already been
committed to pay for encumbrances ($6,206,703), debt service ($1,578,807), and prepaid
($941).
The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
the total unreserved fund balance was $13,827,083. The total fund balance increased by
$28,224 more than the final revised budget. Current operating expenditures had savings of
$3,198,146 allowing $460,200 to be transferred to the Capital Projects Fund for financing of the
I.T. Master Plan, $315,800 to be transferred to the Replacement Fund, and $332,000
transferred to the Capital Projects Fund for self financing of other capital projects. The fund
balance increased from $13,831,447 to $13,864,533 resulting in a positive effect on the
operational expenditure reserve for the 2008-2009 budget.
11
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
The Debt Service Fund balance of $1,578,807, all of which is reserved for the payment of debt,
decreased from the prior year fund balance by ($49,105) due to interest earnings being less
than anticipated. The fund balance meets the FY2010 10% of annual debt service requirement
of $1,076,379 and is approximately the amount projected in the City's long range financial plan.
The General Capital Projects Fund provides information on cash financed capital projects.
During the fiscal year, the fund balance increased by $5,938,175 from $8,416,767 to
$14,354,942. Revenues and transfers from other funds totaled $46,181,279 which included
$22,000,000 related to Event Center agreements, which are offset by expenditures,
$13,209,123 as an equity transfer in from Allen Economic Development in relation to the Allen
Event Center infrastructure, $7,781,000 from the County for road construction on Stacy Road,
Exchange Parkway, and Ridgeview Drive, $443,125 from the State of Texas for signal upgrade
and maintenance, and $1,725,070 transferred in from other funds to cash finance capital
projects. Total expenditures were $39,567,669 and consisted of the construction of the Allen
Event Center, extension of Ridgeview Road from Custer to Alma, widening of Exchange
Parkway, widening of Stacy Road from U.S. 75 to Greenville, and street and alley repairs.
The General Obligation Bond Fund had an ending fund balance of $29,887,422, an increase of
$8,031,588 from the prior year. Revenues and other financing sources included interest
earnings and $15,400,000 of new issued bonds. Expenditures totaled $7,859,466 which
included $3,187,452 for the extension of Ridgeview Road from Custer to Alma and $1,066,437
for costs associated with the starting construction of a new service center.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail. At the end of the year, unrestricted net assets for all
enterprise funds are as follows: Water and Sewer, $22,950,054, Solid Waste, $2,845,944,
Drainage, $1,275,773, and Golf Course, $365,994. The total change in net assets for the funds
was $1,821,577, $295,395, $194,944, and ($79,492), respectively. All funds, except the Golf
Course, had an increase in net assets as a result of capital contributions, transfers from other
funds, and operating revenues. A budgeted drawdown of reserves in the Golf Course Fund was
for clubhouse repairs which were funded in the preceding year. The Water and Sewer Fund
contributed $2,190,000 for water and sewer line replacement, pump and sewer lift station
maintenance and future construction in progress funding as per the rate plan study. Other
factors concerning the finances of these funds have already been addressed in the discussion
of the City's business -type activities.
General Fund Budgetary Highlights
During April and May, all accounts are evaluated to determine if they are in line with the original
budgets. Accounts that are under or over budget are revised to meet year-end estimates. New
projects are not added to the year-end estimate; only the cost of maintaining the current base
operation is revised as needed. As is customary, during 2008-09, the City Council amended the
budget for the General Fund one time.
Adjustments made during 2008-2009, decreased the original revenue budget by ($1,576,892)
and decreased the expenditure budget by ($1,824,528). Al the end of FY2009 revenues did not
reach the anticipated revised budget by ($238,609). Contributing to the variance was lower than
anticipated sales tax, franchise taxes, and investment earnings due to the continued economic
down turn.
12
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Positive expenditure variances were due to salary savings from open staffing positions and
prudent conservative management by city staff. The net result of the expenditure budget
variances allowed the General Fund to transfer out an additional $1,108,000 representing
$460,200 to the Capital Projects Fund for financing of the I.T. Master Plan, $315,800 to the
Replacement Fund, and $332,000 to the Capital Projects Fund for self financing of other capital
projects.
The resulting General Fund balance increased $33,086 which was $28,224 more than
budgeted. The funds operational expenditure reserve increased from the budgeted 84.8 days to
90.9 days, well above the City's financial policy of 60 days.
CAPITAL ASSETS
The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2009, amounts to $597,380,244 (net of accumulated depreciation.) This
investment in capital assets includes land and improvements, buildings, vehicles, machinery
and equipment, park land and facilities, roads and bridges. About 82% of the capital assets are
governmental and 18% are business -type activities. The total increase in investment in capital
assets for the current fiscal year was 11%. The capital assets for 2008 reflect a prior period
adjustment due to insufficient depreciation of capital assets being recorded during the year of
implementation of GASB34. This resulted from an incorrect in-service date being input into the
depreciation system. As a result, a prior period adjustment in the amount of $11,985,861 for the
governmental activities and $3,078,428 for the business type activities was recorded to show
the affect of depreciation that should have been taken in prior periods.
Land
Buildings
Towers, tanks and pump
stations
Other Improvements
Furniture and fixtures
Vehicles
Machinery and eculpmenl
construction in progress
Table 3
capital Assets at Yearend Not of Accumulated Depreciation
Govemmental Activities Business -type Activities
2009 200B 2009
$ 111,867,601 111,362,169 $ 4,072,882 4,048,296 $
42,441,281 43,060,155
248,746,792 245,582,387
288,644 564,227
5,157,730 3,330,350
1,944,799 2,339,610
79,775,522 23,657,069
89,462,263
90,150,739
416,416
429,621
5,974
8,505
298,972
26,839
1,797,694
1,650,423
11,103,675
11.300 770
2009 am
115,940,481 115,410.465
42,441,281 43,050,154
89,462,263 90,150,739
249,163,218 246,012,008
294,618 572,732
5,456,702 3,357,188
3,742,493 3,990,033
90,879,197 34,957,838
Total $ __L29 $ 107,157,875 107,615,192 $ 597,380,244 537,511,158
13
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
The major governmental -type capital improvement projects and developer contributions during
the current fiscal year included the following:
Projects
• Allen Event center building
$40,907,698
• Developer contributed right of way and park land
1,399,811
• Service Center
1,066,437
• Traffic Signal upgrade
1,011,205
• Street construction:
Ridgeview Drive, Custer to Alma
4,591,698
Exchange Parkway, Twin Creek to SH121
2,973,247
Business -type capital improvement projects and developer contributions during the current
fiscal year include the following:
Projects
• Developer contributed water mains and sewer lines $879,916
• High Meadows Sewer Line 732,623
• Hillside Water Tower 408,580
• Custer Road Waterline 299,495
Additional information on the City's capital assets can be found in Note 4 on pages 46-50
of this report.
At September 30, 2009, the City (including component units) had long-term debt totaling
$174,400,897 as shown in Table 4. Of this amount $122,703,328 is the total bonded amount of
government and business activities and $51,697,569 is the component units. The gross bonded
debt includes: $99,325,000-G.O. bonds backed by the full faith and credit of the government,
$4,905,000 -Certificates of Obligation backed by taxes and revenue generated from the golf
course, $14,100,000 -secured solely by water and sewer revenue and the component unit's total
of $51,980,000 secured by future sales tax revenue. Other long-term debt relates to
compensating absences, notes payable, debt refunding and issuance, premiums, and
discounts.
Total debt for governmental activities increased by 11 % and business -type activities decreased
by 6%. In May 2009, the City issued $15,400,000 in General Obligation Bonds resulting in a net
indebtedness increase of $9,709,756. At fiscal year end, the City had authorized but un -issued
direct general obligation bonds totaling $59,855,000.
The debt for both component units relates to debt issued in the preceding year in order to
support public infrastructure improvements and construction of the new event center. Total debt
for the Allen Economic Development Corporation decreased by 3% the Allen Community
Development debt was decreased by 2%.
14
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
Ge..all
Obllgallon
Berea
cenmale M
Obligation
alines
Revenue Banea
PayaMa
Sales Tax
Raenua Bbnda
TOW Gmae
BaMee..,
Table
Ootalandlrq D.bl a1 Y—nal
Boma and cher Lo,q T.. NM
Gaysnnaaaw tl . Btalnem-M1ce Ilealea cob,onml unlW TOW
2fSR 2M Zss18 290 SPY@ 2V➢fl 2YY@ 29�
$ 99,325.030 W.920,M
$ 9&325,M 83m.m
4,906,000 s,11o,0.tl 4,805,003 5,110.CW
14,100[00 15035.000 14,1KODD 15,035.00
51,800000 53,265.900 5118e0900 65365.00
104,230,000 94,on,= KIM= 15,035= 51,BP0.30 53,265..0 170.310,10 162,130.00
Mar Lwlg-Tenn NN
Caryynaab"
PMenma
3,274,186
2,932,3.
343.363
320.]68
3.817.00
3.253.104
Noaa Papde
118483
151AW
252,377
119}fi7
371,6)
2114]0
RaNndxll
(.2.087)
Muo. 3)
(9..891
(73.010)
(117,175)
(139.21)
(1.335..4)
(1.253.0N)
Ramous &
okel
1A16.BA
1.515.723
10,14
1.9.
(165.258)
11656541
1,43,816
1,351,857
TaW Max
tmg Te" Debt
3.500,94
3.553,081
4129.
389511
1262431
1.56151
4.M 897
3.622,897
11.1 5
100,190,398
el.00,$69,001
14.512006
15.404$11
M Dl.9
52959,325 $
Ti4,400,6W
165.952600
The City's bonds are insured resulting in AAA ratings. The underlying credit ratings from both
Moody's Investors Service and Standard and Poor's for the City's General Obligation Bonds,
Community Development Corporation's Sales Tax Bonds and Water and Sewer Revenue
Bonds are shown below in Table 5. Additional information on the City's long-term debt can be
found in Note 5.
General Obligation Bonds
Certificates of Obligation
Water & Sewer Revenue Bonds
Sales Tax - Revenue Bonds
Table 5
Bond Ratings
Moody's Investors
Service Standard & Poor's
Aa2 AA+
Aa2 AA+
Aa3 AA+
Al
15
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Despite the recession, the City of Allen is positioned to address this economic challenge in a
fiscally responsible manner. Focused on having a balanced community, the City takes a
proactive approach to economic development with its business recruitment and retention efforts,
as well as with its variety of housing options. The fiscal year 2009-2010 budget reflects the
commitment of the City Council and staff to provide services and facilities to our citizens while
maintaining a strong financial position during a period of economic uncertainty.
The City revenues most impacted by the recession are property taxes and sales taxes. Due to
current economic conditions, the rate at which new residential and commercial properties are
being added has slowed greatly compared to prior years. Also, valuations have begun to
decrease overall on existing properties, both residential and commercial, and base sales tax
revenues, which are those revenues from existing establishments, continued to decline
throughout FY2009. In FY2010 these declines will be offset by growth from the continued
construction of Watters Creek and The Village at Allen, two new mixed-use developments which
are adding to the community's property and sales tax. Without the new revenue from these two
developments, Allen would have seen a decrease in total property and sales tax revenues for
FY2010. Instead, the City is able to project modest increases for both.
Although the rate of residential growth has slowed, the City estimates issuance of 250 single
family permits in FY2010. The current population of 83,929 is expected to reach 97,938 at
buildout in the next several years.
As mentioned, commercial growth in FY2010 will be from the City's two mixed use
developments. When complete, these projects will have added approximately 2 million square
feet of retail, restaurants, and office space, several hundred residences, a hotel, and a 8,100
seat event center to Allen's tax base. The City has also earned a reputation as a premier
location for high-tech manufacturing, assembly/distribution facilities and corporate headquarters.
The newest addition to this category will be a Tier III data center, which is projected to begin
operations in 2011. The reasonable cost of living, a highly rated school district, and home
prices below the national average continue to make Allen an attractive area for businesses to
locate.
The various infrastructure and operational needs of the City have resulted in the annual
expenditure budget increasing from $87.3 million in FY2005, to $142 million for FY2010 for all
funds combined. The certified assessed property value for 2009-2010 equates to an overall
increase of approximately $294 million (4.2%) from the preceding year. This has afforded the
opportunity for the City to reduce the property tax rate for the seventeenth straight year, from
$0.556 to $0.555 per $100 valuation for FY2010. Of the total tax rate, $0.410751 is dedicated
to operations and maintenance in the General Fund, and $0.144249 is dedicated to general
obligation debt service.
Ad Valorem Taxes are the General Fund's largest revenue source and will contribute $30 million
or 51.01% of the fund's budgeted revenues in FY2010. Appraisal values are established by the
Central Appraisal District of Collin County, and collections are certified at 100% by the Collin
County Tax Assessor -Collector's office. Due to new development, the budget also reflects a
9.5% increase in sales tax from the revised 2008-2009 budget.
ill
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
The General Fund ended 2008-2009 with an increase to fund balance of $33,086. This brings
the total fund balance to an equivalent 90.9 days of operating expenditures, which exceeds the
budgeted 84.8 days, and is well above the City's financial policy of 60 days. The 2009-2010
General Fund expenditure budget reflects a 4.8% increase from the revised 2008-2009 budget.
The 2009-2010 budget is a "no growth budget", meaning that there is no money allocated to
expand or add new City services. Staffing levels are being reduced by 2.0 full-time equivalent
positions, through attrition, in the Building and Code department. These measures allowed for a
2% merit pay increase to be included in the budget. By focusing on the services we currently
offer and the staff we currently employ, the City will be able to continue to effectively implement
the City Council's strategic vision for Allen during a time when cities across the state are
freezing or reducing programs and services.
In accordance with the City's water and sewer rate study, which was updated in 2009, the Water
and Sewer Fund budget includes a rate increase effective February 1, 2010. The rate increase
is necessary as North Texas Municipal Water District proceeds with capital expansion plans,
therefore increasing the costs associated with water and sewer service from the District. Also
included in the FY2010 budget is $2.54 million to cash finance water and sewer capital projects.
The Water and Sewer Fund is expected to finish fiscal year 2010 with approximately $9.3 million
in working capital reserves, which exceeds the bond covenant requirements of 1.2 times the
size of the annual debt service obligations. This healthy balance is necessary to fund the future
capital projects and ongoing maintenance that are planned to ensure the water and sewer
infrastructure will meet the demand when the City reaches build out.
The Solid Waste Fund represents a stable operational service and staff continues to expand
educational outreach programs and seek grant funding for future grant cycles. No Solid Waste
Fund fee increases are planned in 2010.
The Drainage Fund is supported by drainage fees on utility bills and development inspection
fees. One Construction Inspector will be moved from the General Fund (Engineering division)
to the Drainage Fund in FY2010, in response to a decrease in engineering inspection activities
and an increase in mandated Texas Pollution Discharge Elimination System (TPDES)
inspection activities.
The Parks and Recreation Special Revenue Fund reflects only revenue generating activities
and related expenditures. Operating and maintenance costs for facilities are budgeted in the
General Fund. It is the goal of the City to have all revenue generating programs be 100% self
sustaining.
The City finished the fifth full year of operating the Chase Oaks Golf Course. In fiscal year
2008-2009, the City subsidized a portion of the course's operating costs, with transfers from the
General Fund and the Parks and Recreation Special Revenue Fund of $296,955 and $160,000,
respectively. Total expenses reflect approximately $200,000 for clubhouse repairs. Although
rounds played increased 9% from the previous year, revenue per golfer decreased slightly due
to decreases in golf shop and food and beverage purchases. Like many golf facilities and
businesses, the Golf Course continues to face many challenges with the current national
economic conditions. City staff continues to monitor expenses on a daily and weekly basis, and
works to steadily improve the facilities and programs available to the public. As part of these
efforts, the City plans to renovate the course beginning in October 2010.
17
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(UNAUDITED)
As healthcare costs continue to rise, the 2009-2010 Risk Management Fund budget includes a
9% budgeted increase to cover projected costs for medical, prescriptions, dental and vision
claims, immunizations and physicals for employees and claims handling administration.
Premium costs for employees were not increased due to a prudent Risk Management Fund
balance and positive trend in claims history. In Fiscal Year 2010 the City will contribute about
80% of the total cost of the health and dental insurance premiums, with the employees making
up the remaining 20%. The Worker's Compensation and Property and Liability components of
the fund also continue to have positive claims histories.
Despite current national economic conditions, the City of Allen's budget has been positively
impacted by growth and by conservative fiscal management. The 2009-2010 budget reflects
the efforts of the governing body and city staff to address the need to provide services and
facilities to support our vibrant and growing community, while maintaining a strong financial
position.
Reauest for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a
general overview of the City's finances. If you have questions about this report or need any
additional information, contact the Finance Department at 305 Century Parkway, Allen, Texas,
75013, or call (214)509-4626.
IF-]
BASIC FINANCIAL
STATEMENTS
*a�SpFCT * 1NTFC'
R
� rI-
C"TY OF AILEN
CITY OF ALLEN, TEXAS
EXHIBIT 1
STATEMENT OF NET ASSETS
YEAR ENDED SEPTEMBER 30, 2009
PRIMARY GOVERNMENT
GOVERNMENTAL
BUSINESS -TYPE
COMPONENT
ACTIVITIES
ACTIVITIES
TOTAL
UNITS
ASSETS
Cash and cash equivalents
$
22,232,699
$
8,421,294
$
30,653,983
$ 1,907,092
Investments
54,121,564
16,317,899
70,439,463
8,536,095
Receivables (net of allowance for uncollectibles)
17,530,256
4,591,351
22,121,607
1,919,761
Internal balances
(1,013,092)
1,013,092
-
_
Prepaid items and other assets
941
11,050
11,991
6,298
Inventodes
-
228,342
228,342
-
Restricted cash and cash equivalents
-
1,980,741
1,980,741
1,207,950
Capital assets:
Non -depreciable
191,643,123
15,176,557
206,819,680
4,532,403
Depreciable (net of depreciation)
298,579,246
91,981,318
390,560,564
1,608,366
Defamed charges
796,041
169,202
965,243
883,894
TOTAL ASSETS
$
583,890,778
$
139,890,836
$
723,781,614
$ 20,601,859
LIABILITIES
Accounts payable
$
10,331,916
$
1,358,025
$
11,689,941
$ 1,313,749
Accrued liabilities
3,581,074
315,490
3,896,564
57,781
Accrued interest payable
609,522
186,220
795,742
216,375
Customer deposits
-
1,424,545
1,424,545
-
Uneamedrevenue
93,115
-
93,115
-
Retainage payable
1,040,445
-
1,040,445
1,061,859
Noncurrent liabilities:
Due within one year
8,026,885
1,546,931
9,573,816
1,335,000
Due in more than one year
100,353,380
12,966,005
113,319,385
50,362,569
TOTAL LIABILITIES
$
124,036,337
$
17,797,216
$
141,833,553
$ 54,347,333
NET ASSETS
Invested in capital assets (me of related debt)
415,201,199
92,988,242
508,189,441
(43,493,806)
Restricted for debt service
1,068,651
654,521
1,723,172
-
Unrestricted
43,584,591
28,450,857
72,035,448
9,748,332
TOTAL NET ASSETS
$
459,854,441
$
122,093,620
$
581,948,061
L_(
The Notes to Financial Statements
are an integral part of this statement.
19
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2009
General revenues:
Taxes:
Property taxes, levied for general purposes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings
Gain on disposition of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET ASSETS
NET ASSETS, beginning of year (as previously reported)
Prior period adjustment
NET ASSETS, beginning of year (as restated)
NET ASSETS, end of year
The Notes to Financial Statements
are an integral part of this statement.
Charges for
Operating Grants
Capital Grants
Expenses
Services
and Contributions
and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental Activities:
General government
$ 14,304,910
$ 553,322
$ -
$ -
Public safety
24,498,604
1,514,091
757,350
-
Public works
14,893,306
26,940
-
70,200,823
Culture and recession
17,689,583
2,638,116
581,447
-
Community development
2,718,864
1,492,567
1,432,912
-
Interest on long-term debt
4,326,330
Total governmental activities
78,431,597
6,225,036
2,771,709
70,200,823
Business -type Activities:
Water and sewer
22,227,624
24,642,034
-
2,135,885
Environmental waste services
4,893,175
5,541,375
-
-
Dreinage
692,180
1,116,881
-
-
Golf Course
2,165,144
1,628,697
Total business -type activities
29,978,123
32,928,987
2,135,885
TOTAL PRIMARY GOVERNMENT
$ 108,409,720
$ 39.154.023
$ 2.771.709
=$___12J336 .708
COMPONENT UNITS:
Allen Economic Development Corporation
$ 17,316,891
$ -
$ -
$ -
AIIen Community Development Corporation
28,602,364
TOTAL COMPONENT UNITS
S 45.919.255
$
$
$
General revenues:
Taxes:
Property taxes, levied for general purposes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings
Gain on disposition of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET ASSETS
NET ASSETS, beginning of year (as previously reported)
Prior period adjustment
NET ASSETS, beginning of year (as restated)
NET ASSETS, end of year
The Notes to Financial Statements
are an integral part of this statement.
EXHIBIT 2
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business - Type COMPONENT
Activities Activities TOTAL UNITS
$ (13,751,588) $ - $ (13,751,588) $ -
(22,227,163) - (22,227,163) -
55,334,457 - 55,334,457 -
(14,470,020) - (14,470,020) -
206,615 - 206,615 -
(4,326,330) (4,326,330)
765,971 765.971
- 4,550,295 4,550,295 -
- 648,200 648,200 -
424,701 424,701 -
(536.447) (536,447)
5,066.749 5.086.749
$ 765.971 $ 5.086.749 S 5.852.720 $
$ - $ - E - $ (17,316,891)
(28,602,364)
$ - $ $ $ (45.919.255)
$ 39,450,387
$ -
$ 39,450,387
$ -
11,140,337
-
11,140,337
10,953,989
5,533,573
-
5,533,573
-
597,512
-
597,512
-
1,987,765
-
1,987,765
-
1,558,913
499,148
2,058,061
537,104
113,734
-
113,734
-
1,052,184
-
1,052,184
42,797
3.211,453
(3,211.453)
64.645,858
(2,712,305)
61.933.553
11.533.890
65,411,829
2,374,444
67,786,273
(34,385,365)
406.428.473
122,797,604
529.228077
639.891
(11,985,861)
(3.078.428)
(15,064,289)
394,442,612
119.719,176
514.161,788
639.891
459.854.441
$ 122.093.620
=L=a
$ (33.745.4741
21
CITY OF ALLEN, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued liabilities
Interest payable
Retainage payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES
Reserved for:
Encumbrances
Prepaid items
Debt service
Unreserved, reported in:
General fund
General obligation bond fund
Special revenue funds
Capital projects funds
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$ 2,123,586 $ - $ 7,222,409
2,068,209 - 709,777
- 61,902 -
- - 850,927
112,753 37,464
4,304,548 99,366 8,783,113
36,509 - 2,581,429
941 - -
- 1,578,807 -
13,827,083 - -
11,773,513
13,864,533 1,578,807 14,354,942
$ 18,169,081 $ 1,678,173 $ 23,138,055
The Notes b Financial Statements
are an integral part of this statement.
22
GENERAL
DEBT
CAPITAL
GENERAL
SERVICE
PROJECTS
ASSETS
Cash and cash equivalents
$ 385,368
$ 787,587
$ 7,511,192
Investments
14,208,364
850,019
2,200,034
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes
112,753
37,464
-
Sales taxes
1,878,457
-
-
Accounts receivable
-
-
-
Accmed interest
70,433
3,103
9,561
Other
1,512,765
-
13,229,711
Special assessments
-
-
187,557
Prepaid items
941
TOTAL ASSETS
$ 18,169,081
$ 1,678,173
$ 23,138,055
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued liabilities
Interest payable
Retainage payable
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES
Reserved for:
Encumbrances
Prepaid items
Debt service
Unreserved, reported in:
General fund
General obligation bond fund
Special revenue funds
Capital projects funds
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$ 2,123,586 $ - $ 7,222,409
2,068,209 - 709,777
- 61,902 -
- - 850,927
112,753 37,464
4,304,548 99,366 8,783,113
36,509 - 2,581,429
941 - -
- 1,578,807 -
13,827,083 - -
11,773,513
13,864,533 1,578,807 14,354,942
$ 18,169,081 $ 1,678,173 $ 23,138,055
The Notes b Financial Statements
are an integral part of this statement.
22
EXHIBIT 3
GENERAL OTHER TOTAL
OBLIGATION GOVERNMENTAL GOVERNMENTAL
BOND FUNDS FUNDS
$ 2,580,758 $ 6,833,774 $ 18,098,679
27,753,813 1,727,763 46,739,993
150,217
1,878,457
- 333,365 333,365
121,310 4,106 208,513
- - 14,742,476
187,557
941
$ 30,455,881 $ 8,899,008 $ 82,340,198
$ 378,941 $ 136,608 $ 9,861,544
- 203,717 2,981,703
- - 61,902
189,518 - 1,040,445
93,115 243,332
568,459 433,440 14,188,926
3,485,095 103,670 6,206,703
- - 941
- - 1,578,807
- - 13,827,083
26,402,327 - 26,402,327
- 3,080,087 3,080,087
- 5,281,811 17,055,324
29,887,422 8,465,568 68,151,272
$ 30,455,881 $ 8,899,008 $ 82,340,198
23
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30,2009
EXHIBIT 4
Total fund balances- governmental funds
$ 68,151,272
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet.
490,222,369
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements.
796,041
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental
funds balance sheet.
(547,620)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and Beet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business -type activities ($1,013,092) and to capital assets ($5,134,108).
9,462,427
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.
150,217
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
(108,380,265)
Net assets of governmental activities
$ 459,854,441
The Notes to Financial Statements
are an integral part of this statement.
24
osf acr
lq).0O
RtN
Clry OF W-6*L
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
REVENUES
Ad valorem taxes, penalties and interest
Franchise taxes
Municipal sales tax
Licenses, permits and fees
Charges for services
Court fines
Gifts and contributions
Hotel / motel fees
Recreation fees
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Premium on debt issuance
Transfers from other funds
Transfers to other funds
Capital lease obligations
Sale of capital assets
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
The Notes to Financial Statements
are an integral part of this statement.
25
11,915,266 - 664,737
23,662,504 - -
3,499,107 - -
10,454,422 - -
2,284,704 - -
- - 38,902,932
5,200,000 -
4,309,099
51,816,003 9,509,099 39,567,669
107,563 (49,105) 4,688,540
3,682,842
-
GENERAL
(3,864,106)
DEBT
CAPITAL
GENERAL
SERVICE
PROJECTS
71,718
$ 29,828,073
$ 9,407,830
$ -
5,448,977
-
-
10,879,111
-
-
1,292,312
-
-
1,591,604
-
332,174
1,817,068
-
-
356,798
-
22,000,000
-
-
21,433,248
408,070
52,164
155,116
301,553
535,671
51,923,566
9,459,994
44,456,209
11,915,266 - 664,737
23,662,504 - -
3,499,107 - -
10,454,422 - -
2,284,704 - -
- - 38,902,932
5,200,000 -
4,309,099
51,816,003 9,509,099 39,567,669
107,563 (49,105) 4,688,540
3,682,842
-
1,725,070
(3,864,106)
-
(675,435)
35,069
71,718
(74,477)
1,049,635
33,086
(49,105)
5,938,175
13,831,447
1,627,912
8,416,767
$ 13,864,533
$ 1,578,807
$ 14,354,942
EXHIBIT 5
GENERAL
OTHER
TOTAL
OBLIGATION
GOVERNMENTAL
GOVERNMENTAL
BOND
FUNDS
FUNDS
$ -
$ 288,635
$ 39,524,538
-
84,596
5,533,573
-
261,226
11,140,337
-
596,511
1,888,823
-
-
1,923,778
-
179,111
1,996,179
-
1,545,365
23,902,163
-
597,512
597,512
-
2,309,331
2,309,331
-
925,357
22,358,605
534,391
168,963
1,318,704
17,024
269,188
1,123,436
551,415
7,225,795
113,616,979
203,324
802,215
13,585,542
-
424,371
24,086,875
-
115,198
3,614,305
7,604
2,960,389
13,422,415
-
378,449
2,663,153
7,648,538
1,922,436
48,473,906
-
-
5,200,000
16,358,183
4,309,099
666,123
7,859,466
6,603,058
115,355,295
(7,308,051) 622,737 (1,738,316)
15,400,000
-
15,400,000
189,872
-
189,872
-
565,823
5,973,735
(250,233)
(528,290)
(5,318,064)
-
35,069
-
5,853
77,571
15,339,639
43,386
16,358,183
8,031,588
666,123
14,619,867
21,855,834
7,799,445
63,531,405
$ 29,887,422 $
8,465,568 $
68,151,272
26
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2009
EXHIBIT 6
Net change in fund balances - total governmental funds
$ 14,619,867
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount of capital assets recorded in the current period.
49,148,344
Governmental funds do not recognize assets contributed by developers. However, in the
statement of activities the fair market value of those assets is recognized as revenue,
then allocated over their estimated useful lives and reported as depreciation expense.
26,740,404
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds.
(17,928,173)
The proceeds from issuance of long-term debt (e.g. bonds and capital lease obligations)
provides current financial resources to governmental funds ($15,437,265), while the
repayment of the principal of long-term debt consumes the current financial resources
of governmental funds ($5,269,205). Neither transaction, however, has any effect on net assets.
(10,168,060)
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements.
(142,032)
Current year changes in long-term liability for compensated absences do not require
the use of current financial resources and, therefore, are not reported as expenditures
in governmental funds.
(341,858)
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
(64,856)
Internal service funds am used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net operating and
nonopsrating income and transfers of the internal service funds is reported with
governmental activities net of amounts allocated to business -type activities.
3,638,419
Governmental funds do not report disposition of capital assets. However, in the
statement of activities, the net book balance of the capital assets disposed is recorded
against the proceeds received. This amount is the net book balance of capital assets
disposed in the current period.
(16,075)
Certain revenues in the government -wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.
(74,151)
Change in Net Assets of Governmental activities
$ 65,411,829
The Notes to the Basic Financial Statements
are an integral part of this statement.
27
CITY OF ALLEN, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2009
EXHIBIT 7
Tolal currant crista
28,001999
BUSINESS �TYFE
1,334,787
502_480
31,550,657
11,545.262
NONCURREXTAs8EM
ENTERFRISEFUXOSACTIVITIES
33.083,828
$ 1,866825
GOVERNMENTAL
5138,8]7.744 S
16,679.370
CAFRILL ASSETS
654,521
166,515
ACTIVITIES
Purlcompensaledabsenws
WATERAND
MUD
GOLF
4.072,8U
INTERNALSERVICE
Tool noncurrent liabilities
SEWER
WASTE DRAINAGE
COURSE
TOTAL
FUNDS
"am
496.132
-
496,132
-
T..dead. andcampNalone
CURRENT ASSETS
Sol
13,818
-
1311.530406
-
Cash and cam eyuivalanU
S 7,123,912
3 W3,W5 S 270,588
8523.2]9
S 8,121,284
$ 4,134,020
InveslmeMs
13,117,892
2,200,007 1,WDW0
-
18,317,899
7,381,571
Receivabbs, nelotalloxancaforu bolletlibles
1,420.572
FumiMe and fiMulee
11,114
-
-
Acce,mas
4,087,652
284,190 84,199
8.155
4,424,496
34
Aaauetl mission
53,459
-
-
53,459
29,637
Other
11018,627
113.398 -
-
113,396
-
Inventonm
220,342
- -
369029
228,342
-
Repaldlrems
105,339235
- -
HOW
11000
-
Reso-laea ash and cash eaulvalenls
t9807n
4,288,818
='M
1,980,741
252_184
4,831,211
1.069.743
Bond,ssarme mab, net ofammere8m
169.202
Tolal currant crista
28,001999
3,081,398
1,334,787
502_480
31,550,657
11,545.262
NONCURREXTAs8EM
8133.100,425
33.083,828
$ 1,866825
SS ll,M
5138,8]7.744 S
16,679.370
CAFRILL ASSETS
654,521
166,515
100,515 -
Purlcompensaledabsenws
Ad.
1,]34
lend
4.072,8U
-
Tool noncurrent liabilities
-
4.072,692
-
Other impmvemems
6 1,100,306
$ 172762
496.132
-
496,132
-
T..dead. andcampNalone
13083 5.406
Sol
13,818
-
1311.530406
-
Veto.
999,751
31,599
110696
44,638
1.160.546
6.953,950
hismearyanesuipmenl
3,51
9.619
403,597
642,317
4,823.782
1,420.572
FumiMe and fiMulee
11,114
-
-
10,694
22006
Consiruam in pragrev
11.103.005
-
-
11,103,675
514.162
Total capital uveas
158,589,677
41,718
11018,627
653,211
100,300,433
818118.684
Leesaccumulated reewatlon
(00,200662)
(39288)
1466.589)
369029
(53,145558)
(3]505761
Capllal assets, net of accumulated MpYlNon
105,339235
2.030
552,038
264,182
107,157,075
5.134.1011
DEFERRED CHARGES
4,288,818
='M
57691
252_184
4,831,211
1.069.743
Bond,ssarme mab, net ofammere8m
169.202
100,202
Total noncurrent Ase.N
106,506.427
2,4M
552036
264182
1003220]]
5134108
NONCURRENT LIABILITIES
Revenue bonds payable
TOTAL ASSETS
8133.100,425
33.083,828
$ 1,866825
SS ll,M
5138,8]7.744 S
16,679.370
LIABILITIES AND NETASSETS
654,521
166,515
100,515 -
Purlcompensaledabsenws
Ad.
1,]34
CURRENT LIABILITIES
229531054
22.234
Tool noncurrent liabilities
12]35265
I'M
1,323
Accounts payable
6 1,100,306
$ 172762
$ 25,006
8 59.951
S 1,355025 8
470,372
Accrued llabllllles
2141405
Sol
13,818
47,035
315,490
-
Accrued compensatWabsences -wnent
22],638
3D726
1],86]
44,638
321 Me
Incurred bWnolatonal Gairl
-
-
-
595371
Payable Irom rasiricted au ds
Revenue bons payable-wrtanl
11140,000
-
-
1.140,003
-
Capllalleasespayable -wmnl
-
-
65.602
85,800
-
Acw ci lmil l payable
135220
-
-
186,220
-
CUstOmerrecordlspayaNe
1,409,847
14,696
1,24,545
Total current liabilities
4,288,818
='M
57691
252_184
4,831,211
1.069.743
NONCURRENT LIABILITIES
Revenue bonds payable
12,7]],256
-
-
552,D3a
12,7]],258 -
Capltaliialpanel-
5,134,108
ResNGed tat revenue bond pnnopal and Interest
654,521
166,515
100,515 -
Purlcompensaledabsenws
Ad.
1,]34
1.32311168
229531054
22.234
Tool noncurrent liabilities
12]35265
I'M
1,323
177,683
12,966,005
TOTAL LIABILmE3
17,073.831
235.454
59.014
422_86]
1],79]216 1.089]43
NETABBEM
Invesbdlnceloda mbects, net ofraidder debt
81,421,969
2,430
552,D3a
11,005
92,988,242
5,134,108
ResNGed tat revenue bond pnnopal and Interest
654,521
isal
Unrestricted
229531054
2,645,&4
1,2]5,7]3382_994
27.437765
10.475,519
TOTAL NET ASSETS
5116,026,500
52,848,374
$ 1,827,611
33]],]99
$121,OM,528 8
15,809.827
The Notes to the Financial Statements
are an integral part of this statement.
28
CITY OF ALLEN, TEXAS EXHIBIT 8
RECONCILIATION OF THE STATEMENT OF NET ASSETS
OF PROPRIETARY FUNDS TO THE
GOVERNMENT — WIDE STATEMENT OF NET ASSETS
AS OF SEPTEMBER 30, 2009
Amounts reported for business -type activities in the statement of net
assets are different because:
Total net assets per statement of net assets $ 121,080,528
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, Fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The assets and liabilities of internal service funds are included in the governmental
activities in the government -wide statement of net assets. The amount shown
represents the net receivable from internal service funds allocated to business -type
activities since the adoption of GASB 34. 1,013,092
Total net assets of business -type activities
The Notes to the Financial Statements
are an integral part of this statement.
29
$ 122,093,820
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
EXHIBIT 9
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
ACTIVITIES
WATER AND
SOLID
GOLF
INTERNAL
SEWER
WASTE
DRAINAGE
COURSE
TOTAL
SERVICE FUNDS
OPERATING REVENUES
CM1nges for sales and serviws'.
Wetsrselee
E 14,690,231
$
S -
$ -
g 14,880,331
S -
3ewerehar9ee
9,063,330
-
-
9,060,330
Carbap
183,765
-
-
-
slew
callediorm
5.488.000
483,765
5,408,800
8.800
S.,losa
Serv6e Merges
41$370
-
22,650
1,823,3]]
2,060,405
9,158,124
Drainegefaae
1,094223
1,094,223
Miswllaneous
207330
52.575
-
5.320
316,233
192,100
Total spading rehenues
24.842034
5,541,375
1,116,881
1,620,697
32,920,967
0351]24
OPERATINGEYPENSES
Personnel service.
3,405,253
374,129
292,924
11119,008
5,192,314
15277
Contractual services
13,035,101
4,416,051
102,046
533.455
18,087,45
6,282,755
Meintmers.
235,356
170.484
241,367
64],20]
-
suppliers
157,31A
9,399
14.990
1481339
330,092
Dopreciation
4,5]12]5
me
41,892
]5,5]0
4,891276
973,583
Other
383,521
92.254
69.844
47,405
57$024
Total operating expense.
21.775870
4.893.175
692,180
2.15144
29.528369
].422.591{
OPERATING INCOME (LOSS)
2.366151
648.200
424.701
(535,41,17)
3.402.618
928,628
NON-0PERATING REVENUES (EXPENSES)
InwsVn.nt..mags
433,7/9
45,957
19,412
-
499,145
240,209
Interestevpanse
(593,))4)
-
-
(593,774
-
G.In on disposal of raphal assets
_
5820
Total non<Parating revenues
(159,995)
45.957
19.412
194,6261
296,029
INCOME (LOBS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
2.706,189
891.157
444.113
(55447)
3.307,992
1.224.857
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development faas
1.255,969
-
-
-
125,969
C.PiMImrarlbu .as
879,918
-
-
879,916
Transfers from other funds
2.126
45,955
481,081
2,55,782
Tran.fere to other funds
(3,014603)
(398,764)
(249,169)
(3.682,534
Teta! capital contributloo. and ministers
(8645921
(398)62)
(249.169)
45,95
(1.07558)
2555782
CHANGE IN NET ASSETS
1,021,5)]
295,395
194,914
(79,492)
2,232424
3,700,439
NET ASSETS, BEGINNING OF YEAR
(AS PREVIOUSLY REPORTED)
117,203,395
$552,879
1,632,867
457,291
121.928532
11,829,180
PRIOR PERIOD ADJUSTMENT
(3,078.425)
(3,078,4281
NET ASSETS, BEGINNING OF YEAR (AS RESTATED)
114,201,90)
2,52.979
1,632867
457.291
115818.104
11,029.188
NET ASSETS, ENO OF YEAR
3116.028,544
S2.840,3]4
$ 1,827.811
8 377,]99
6121.0¢0.520
$ 15.809,627
The Notes to the Financial Statements
are an integral pert of this statement.
0
CITY OF ALLEN, TEXAS EXHIBIT 10
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS OF PROPRIETARY FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Amounts reported for business -type activities in the statement of activities
are different because:
Net change In fund net assets -total proprietary funds $ 2,232,424
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, vrorkers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The net expenses of certain activities of internal service funds is allocated to
business -type activities. 142,020
Change in net assets of business -type activities
The Notes to the Financial Statements
are an integral part of this statement.
31
$ 2,374,444
CITY OF ALLEN, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
EXHIBIT 11
CNnoe In lM brsow ollnve9menn
E 2,0011
BUSINES&TYVE ACTIVITIES
$
$
$ 81035
f
11.111
ENTERPRWe FUNDS
GOVERNMENTAL
CmNWnme 0 codicil mswa I— deeelo,
S 6]8918
ACTIVITIES
$
WATER AND
SOLID
$
GOLF
Relundln8 0 m ns ce bonds
INTERNAL
SEWER
WASTE
DRAINAGE
COLRSE
TOTAL
SERVICE FUNDS
CASH FLOWS FROM OPcence ACTIVITIES
f -
S
- $ -
S 5,526.4.
S
Cun remlwE M1wn cuabmxa
f 81.38.808
E SSM 369
E 1,195,985
$ 1.fiRB,Re
f 33,.8.988
$
Can M1wn..Re'oo xIM otnwlunEe
Lone MOMirq
B,]09.]W
S'109.1.
Ovnpyearybooyand nrviwa
(3141.8m)INS
(310,868)
Can 18] 1
(1,to6,a881
15,169,m)
(168.61)
CmM1 Pe4 Mgca0¢eM aeMcu
ed
(13,x.1 N)
IO,SBOA31)
13fiO,N0)
(863.236)
(19,110,]36)
126..8.)
Gen peq /w tlalm¢
E 509,5.4
f
R]0, 588 E 523,99
f 8.481.811
S
1.4431001)
NN cash pmN6e6 by(usad las) ogaatIn8 actlNlln
7,4041
51
e&4558
Ib$9SN
l.B]2AT]
2281]58
CASH FLOWS FROM 110KCAPITAL
CASH AND CASH EQUNAIEKTA END OF YEAR
$ 8111,553
f 511.5&
S
Y..SIS $ .868
S toA02.025
FINANCING Asn"W"R8
4.160.
Trina/mlmmoNerfunO[
24,126
458,956
dal'oe1
2.55,1.
Trnnabnto MerNM¢
110ee,603)
19..]421
(2es,m)
13.M,5Se1
Net cash provl4tl by lustaln) rnneaP Emminp acllN6q
11920A7D
(]88.1821
049,188)
s.e55
(UH1A53)
2.555.782
CASH FLOWS FROM CA Mn4
RELATEDFINANCINGACI ES
Pnndps bald on retanue bmO meNMNa
(1,Od5.0'V.)
MossOW)
Inoccat and fees paid on Ono'Inrm debt
(8U,@3)
(BM,09)
m mbnY aswtr.
ry,080.80]I
-
169.6881
(sent")
(3.354.043)
(3.A.)
CesdMlleewdwm wymenl
132,600
1]2.Me
Bond]nuenw aaob on remndln9 deshisanw
1]2,1411
-
-
-
(n.1.1)
"Add
ConmWOona/mmdevempers
1.255.968
1.256.988
Met been (nea lnl caFbal and wltled financial acmlBee
13658102/
(58,852)
(70.646)
(3,]16.630)
Mantes)
CASH FLOWS FROM IN MNG ACTWITIES
PnOha`iollnvetlmenb-11ns
(13,663,559)
(859,001)
(1.000.(.1
-
(16.613,586)
(3.Iassaw)
,—be M1cm sale and ounceean of lnwMenlacun9e[
8139289
91]8268
Inbrealminwanrenb
447,758
45,851
19.412
518185
210.753
Net cash provided by luta and lmepin9 ectlNtlq
(3.880.500
Inti
(864,586)
(8570.14R)
1276831)
NET GRANGE IN CASH AND CASH EOUWAL£NiS
(2.88].188)
t1M,ta0j
1628951)
(N.A.)
M,5261a81
(113889381
CASH AND CASH EGUIVAIENT, BEGINNING OF YEAR
11"SHIGH
1.232.&5
1.116.1.
111,106
14.821.11]
5,6"Ides
CASH AND CASH EQUIVALENT., END OF YEAR
$ 8.104.853
$ 5.506
$ 270,9511
S 523,69
$ IBa.A25
f 4.1110X,
RECONCILIATION OF OPEMTNO INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Nelopemnn9lnwme(low)
S 2,6.164
$ 1111,264
$ 411,311
S (536,447)
$ 8408.6111
$ B26.fiR6
Alorewncbopecome lloas)
W not cash eldaby (utsse)opnclhtles :
Cewncnnasenemxa9mextainso
e,508A48
538
41.892
]S,SIO
4,124,118
9]],553
cnench l n nssen and nabanlen.
Ooaeneemeounb rnnrveble
«
lz
130,1172s..
(2.1891
(10,9E8)
t,DB2
118,191
1
In mw
Increase lnclnnrwwiaepee
-
(2,188)
-
(2,189)
-
InweeaelnpmpeJa
(11,&19)
(11,003)
-
mwea¢elOenenaelnlnvemm"es
(abbet)
-
-
LIN
(GLSNH
In nmsrme pavadm
m144146ldeccr
Izo9.161)
Oeb89)
9.]13
112,031
124;ND)
9Tlbla
owaem a«ruednamuhm
it
9,014
2,.
8141
U.S.
Incmeam compensalaebwnwa
4,118
3,.3
1.16
12,619
21.531
Increeae in 1111.1 deposln
yL.e
39611
Tonal alustmenp
4.538,721
(7425c6)
39,161
fi8.50B
a,56p,B58
1,$3,121
Net cash provide. by lu¢a 1p innHn, act...
S 7ANA&5
S 99.8]2
$ 463FM
$ MfiBB:N)
f 7,9&07
$ 2281.795
CNnoe In lM brsow ollnve9menn
E 2,0011
S
$
$
$ 81035
f
11.111
NONCASH FINANCNG ACTSATES:
CmNWnme 0 codicil mswa I— deeelo,
S 6]8918
S
$
S
S 0]8.810
$
Relundln8 0 m ns ce bonds
Payment to e¢vcwepenl
S S.B..E9B
f -
S
- $ -
S 5,526.4.
S
Bonds Marded
16..5.003)
-
-
(5 0.
,595,)
Lone MOMirq
0. IS
tlonclquoants io Uleeialement of MeeeM
Cash
Cmnnnd assn .pines,
E ].123,911
E 509,5.4
f
R]0, 588 E 523,99
f 8.481.811
S
4.191,0.
O'cierem
RulnvYed costs entl casts e9Wwbnls
1,B..1M
1950 pM
CASH AND CASH EQUNAIEKTA END OF YEAR
$ 8111,553
f 511.5&
S
Y..SIS $ .868
S toA02.025
$
4.160.
The Notes to the Financial Statements
are an integral part of this statement.
32
CITY OF ALLEN, TEXAS
STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30,2009
4,324,525
-
EXHIBIT 12
Land improvements
ALLEN
ALLEN
207,878
Furniture and fixtures
ECONOMIC
COMMUNITY
66,075
Improvements other than buildings
DEVELOPMENT
DEVELOPMENT
3,128,689
Total capital assets
CORPORATION
CORPORATION
TOTALS
ASSETS
(1,586,398)
(1,586,398)
CURRENT ASSETS
6,140,769
6,140,769
Cash and cash equivalents
$ 724,416
$ 1,182,676
$ 1,907,092
Investments
1,376,984
7,159,111
8,536,095
Sales tax receivable
939,229
939,229
1,878,458
Accounts receivable
2,070
2,070
4,140
Accrued interest receivable
7,333
29,830
37,163
Prepaid hems
6,298
-
61298
Restricted cash and cash equivalents
89,753
1,118,197
1,207,950
Total current assets
3,146,083
10,431,113
13,577,196
NONCURRENT ASSETS
CAPITAL ASSETS
Land
4,324,525
-
4,324,525
Land improvements
207,878
-
207,878
Furniture and fixtures
66,075
-
66,075
Improvements other than buildings
3,128,689
3,128,689
Total capital assets
7,727,167
-
7,727,167
Less: accumulated depreciation
(1,586,398)
(1,586,398)
Capital assets, net of accumulated depreciation
6,140,769
6,140,769
DEFERRED CHARGES
Bond issuance costs, net of amortzation
258,451
625,443
883,894
Total noncurrent assets
6,399,220
625,443
7,024,663
TOTAL ASSETS
$ 9,545,303
$ 11,056,556
$ 20,601,859
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$ 325,750
$ 987,999
$ 1,313,749
Accrued interest payable
47,948
168,427
216,375
Accrued and other liabilities
57,781
-
57,781
Retainage payable
-
1,061,859
1,061,859
Revenue bonds payable - current
405,000
930,000
1,335,000
Total currant liabilities
836,479
3,148,285
3,984,764
NONCURRENT LIABILITIES
Revenue bonds payable (net of unamortized
-
discounts and deferred amount on refunding)
13,891,369
36,471,200
50,362,569
Total noncurrent liabilities
13,891,369
36,471,200
50,362,569
TOTAL LIABILITIES
14,727,848
39,619,485
54,347,333
NET ASSETS (ACCUMULATED DEFICIT)
Invested in capital assets,
net of related debt
(8,155,600)
(35,338,206)
(43,493,806)
Unrestricted
2,973,055
6,775,277
9,748,332
TOTAL NET ASSETS (ACCUMULATED DEFICIT)
$ (5,182,545)
$$ 2
$ (33745,474)
The Notes to the Financial Statements
are an integral part of this statement.
Ric]
CITY OF ALLEN, TEXAS
EXHIBIT 13
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
FunctionlPro,ram Aclrvnies
COMPONENT UNITS
Allen Erenamic
Development Corpombon
Allen Community
Development Corporation
TOTAL COMPONENT UNITS
Net (Expanse) Revenue and
Program Revenues Change, In Net Mass;
COMPONENT UNITS
ALLEN ALLEN
Operating ECONOMIC COMMUNITY
Charges for Grants and DEVELOPMENT DEVELOPMENT
Upon," Some" Contributions CORPORATION CORPORATION TOTALS
$ 17,316,891 $ - $ - $ (17.316,891) $ - $ (17,316,891)
26,802,364 - - (28.802,36q (28,602,3 )
J.! 5.919.255 _$ - $ - $ (17,316.891) _$ (28.602.364) $ (45.919.255)
The Notes to the Financal Statements
are an integral part of this statement.
Generalrevenues:
Sales lazes
Interest on investments
Miscellaneous
Total general revenues
CHANGE IN NET ASSETS
NET ASSETS, beginning of year
NET ASSETS, end of year
34
$ 5,476,995
E 5,476,994
$ 10,953,989
45,226
491,878
537,104
24,438
18,359
42,797
5,546,659
5,987,231
11,533,890
(11,770,232)
(22,615,133)
(34,385,365)
6,587,687
(5,947,796)
639,891
=L 15.182.5451
=L=al
$ 133.745.4741
a�gpECT
s
' owl.
'Ere
R�r
c'Tr OF A`%EN
NOTES TO
FINANCIAL STATEMENTS
ESpECT
'N).
R,
� YY
♦ C"ry OF AI�.EN
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Allen (the City) was incorporated in 1953, under the provisions of Chapter 11,
Title 28, Texas Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a
home rule city 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.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally accepted in
the United States of America applicable to state and local governments. Generally accepted
accounting principles for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units and by the
Financial Accounting Standards Board (when applicable). As allowed by Governmental
Accounting and Financial Reporting Standards, the City has elected not to apply Financial
Accounting Standards Board Statements and Interpretations, Accounting Principles Board
Opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued
after November 30, 1989. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, the
financial statements of the City include the primary government and organizations for which the
primary government is financially accountable and other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause
the reporting entity's financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if its officials appoint a voting
majority of an organization's governing body and either it is able to impose its will on that
organization or there is a potential for the organization to provide specific financial benefits to, or
to impose specific financial burdens on, the primary government. A primary government may
also be financially accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects, or activities of, or the level of services performed or provided by,
the organization. A financial benefit or burden relationship exists if the primary government (a) is
entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the
obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization.
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval by the primary government.
35
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Financial Reporting Entity —Continued
The following entities were found to be component units of the City and are included in the basic
financial statements:
Allen Economic Development Corporation (AEDC) - The AEDC is responsible for aiding,
promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) - The 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 the AEDC's and ACDC's Boards of Directors are appointed by the City
Council. Both the AEDC and ACDC are fiscally dependent upon the City as the City Council
approves their budgets and must approve any debt issuance. However, the component units
do not qualify for blending because the component services directly benefit the community
rather than the City itself. The AEDC and ACDC are discreetly presented as governmental
fund types and do not issue separate financial statements.
Basis of Presentation
The government -wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the non -fiduciary activities of the primary government and its
component units. The effect of interfund activity, within the governmental and business -type
activities columns, has been removed from these statements; however, interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges for support.
Additionally, the primary government is reported separately from the legally separate component
units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given program
and 2) operating or capital grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Taxes and other items not property included
among program revenues are reported instead as general revenues.
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Separate statements
are presented for governmental funds and proprietary funds. These statements present each
major fund as a separate column on the fund financial statements; all non -major funds are
aggregated and presented in a single column.
36
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Governmental funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds is on the sources, uses and balances
of current financial resources. The City has presented the following major governmental funds:
General Fund -
The General Fund is the general operating fund of the City. It is used to account for all
financial resources not accounted for in other funds. All general tax revenues and other
receipts that are not restricted by law or contractual agreement to some other fund are
accounted for in this fund. General operating expenditures, fixed charges and capital
improvement costs that are not paid through other funds are paid from the General Fund.
Debt Service Fund -
The Debt Service Fund is used to account for the accumulation of financial resources for the
payment of principal, interest and related costs on general long-term debt paid primarily from
taxes levied by the City. The fund balance of the Debt Service Fund is reserved to signify the
amounts that are restricted exclusively for debt service expenditures.
General Capital Projects Fund -
The General Capital Projects Fund is used to account for resources used for the acquisition
and/or construction of capital facilities by the City, except those financed by proprietary funds
and not accounted for by another capital projects fund.
General Obligation Bond Capital Projects Fund -
To account for financing, acquisitions, and construction of improvements to City facilities and
infrastructure not accounted for by other bond funds.
Proprietary Funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position and rash Flow. All assets and liabilities are included on the Statement of Net
Assets. The City has presented the following major proprietary funds:
Enterprise Funds:
Water and Sewer Fund -
The Water and Sewer Fund is used to account for the provision of water and sewer services
to the residents of the City. Activities for the fund include administration, operations and
maintenance of the water and sewer system and billing and collection activities. The fund
also accounts for the accumulation of resources for, and the payment of, long-term debt
principal and interest for water and sewer debt. All costs are financed through charges to
utility customers with rates reviewed regularly and adjusted if necessary to ensure integrity of
the fund.
37
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Solid Waste Fund -
The Solid Waste Fund is used to account for the provision of solid waste services to residents
of the City.
Drainage Fund -
The Drainage Fund is used to account for the provision of developing and maintaining proper
drainage services to the residents of the City.
Golf Course Fund -
The Golf Course Fund is used to account for activities associated with the operations of the
Chase Oaks Golf Course purchased by the City in October 2004.
Internal Service Funds:
Replacement Fund -
The Replacement Fund is an internal service fund that accounts for the costs associated with
the acquisition and replacement of vehicles, machinery, and equipment through the rental of
such items to other departments.
Risk Management Fund -
The Risk Management Fund accounts for the costs associated workers compensation,
liability and property insurance and medical and dental programs established for City
employees and their covered dependents.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for the proprietary funds include the cost of personnel and contractual services,
supplies and depredation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured. Basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of
the measurement focus applied.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Measurement Focus and Basis of Accounting — Continued
The government -wide statements and fund financial statements for proprietary funds are reported
using the economic resources measurement focus and the accrual basis of accounting. The
economic resources measurement focus means all assets and liabilities (whether current or non-
current) are included on the statement of net assets and the operating statements present
increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water and sewer services
which are accrued. Expenses are recognized at the time the liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual;
i.e., when they become both 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 be used to pay liabil0ies of the current period. The City considers all
revenues as 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.
The revenues susceptible to accrual are property and sales taxes, franchise taxes and interest
income. Other receipts (special assessments) become measurable and available when rash is
received by the City and are recognized as revenue at that time.
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 rash 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 funds consider all highly liquid
investments (including restricted assets) with an original maturity of three months or less when
purchased to be cash equivalents, as they are available for withdrawal on demand.
Investments are recorded at amortized cost when original maturity at the time of purchase is less
than one year or at market if greater 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.
39
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED
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 within 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 Review Board. The assessed value upon which the 2008 levy was
based is $7,023,771,639. Taxes are due on October 1 and are delinquent after the following
January 31.
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, 2009 was $0.556 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
three years; however, the City may, at its own expense, require annual reviews of appraised
values.
The City may challenge appraised values established by the appraisal district through various
appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates
on City property. However, if the effective tax rate, excluding tax rates for bonds and other
contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by
more than 8%, qualified voters of the City may petition for an election to determine whether to
limit the tax rate to no more than 8% above the tax rate of the previous year.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are reported as 'due to/from other funds". Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances".
Transactions Between Funds and Between Funds and Component Units
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are property applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as a reduction of expenditures/expenses in the fund reimbursed. All other
intertund transactions, except transactions between the component units and the primary
government are recorded as transfers.
Transactions between the component units and the primary government are accounted for as
external transactions (revenues and expenses). During the fiscal year ended September 30,
2009, ACDC contributed $188,000 to the General Fund and $70,000 to the Park and Recreation
Special Revenue Fund and AEDC contributed $72,100 to the General Fund. These revenues
were reflected as grants and contributions for the primary government in the government -wide
statement of activities.
S0
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED
Inventories and Prepaid Items
Inventories, which are expended when consumed, are recorded using the average cost method,
and are valued at cost.
Prepaid items are for payments made by the City in the current year to provide services occurring
in the subsequent fiscal year. A reserve for prepaid items is recognized in the governmental
funds in the fund level financial statements to signify that a portion of fund balance is not available
for other subsequent expenditures.
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).
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in
the applicable governmental or business -type activities columns in the government -wide financial
statements and in the fund financial statements for proprietary funds. All capital assets are valued
at historical cost or estimated historical cost if actual historical cost is not available. Donated
assets are valued at fair market value on the date donated. The costs of normal repairs and
maintenance that do not add to the value of the asset or materially extend the asset lives are not
capitalized. Renewals and betterments are capitalized. Interest has not been capitalized during
the construction period on property, plant and equipment.
Assets cap0alized have an original cost of $5,000 or more and over one year of useful life.
Depreciation has been calculated on each class of depreciable property using the straight-line
method. Estimated useful lives are as follows:
Buildings
15 - 40 Years
Towers, tanks, and pump stations
30 Years
Infrastructure
10 - 50 Years
Machinery and equipment
3 - 15 Years
Vehicles
2 - 15 years
Library books
5 Years
Furniture and fixture
5 Years
Other improvements
2 - 30 Years
The City has established the Replacement Fund to account for the replacement of the City -owned
vehicle, machinery, and equipment. Charges for use in the form of user payments are made by
City departments to the Replacement Fund to provide for future acquisitions and replacements.
41
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE t. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Compensated Assets
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. Accumulated vacation and sick leave is accrued when incurred in the
government -wide, proprietary, and fiduciary fund financial statements.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital
assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowing used for the acquisition, construction or improvements
of those assets, and adding back unspent proceeds. Net assets are reported as restricted when
there are limitations imposed on their use either through the enabling legislations adopted by the
City or through external restrictions imposed by creditors, grantors or laws or regulations of other
governments.
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES
Deposits - State statutes require that all deposits be fully collateralized by U.S. Government
obligations or obligations of Texas and its agencies that have a market value of not less than the
principal amount of the deposits.
The City's demand deposits and certificates of deposit were fully insured or collateralized at
September 30, 2009, with collateral required by state statutes. At year-end, the carrying amount of
the City's deposits was $2,163,445 and the bank balance was $2,913,900. Of the bank balance,
federal depository insurance covered $250,000 and the remainder was covered by collateral held by
the pledging financial institution's agent in the City's name. The City's petty cash balance at
September 30, 2009 was $11,998.
The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were
$65,017 and $33,300, 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. The City, AEDC and
ACDC invest in 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 Texpool is to allow for the pooling of public funds to provide a higher yield on
the pooled investment than would be possible with the investment of the individual public entity's
funds. Texpool investments are subject to the same investment policies maintained by the State
Treasury for all state funds. The Legislature has authorized only certain investment instruments for
public funds, including repurchase agreements, U.S. Treasury bills and bonds, securities of other
U.S. Government agencies, commercial paper and other safe instruments. The investment in
Texpool and any accrued interest may be redeemed at the City's discretion. The City's position in the
pool is not materially different from the value of the pool shares.
42
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES — CONTINUED
The table below identifies the investment types that are authorized for the City by the Public Funds
Investment Act. (Government Code Chapter 2256). The table also identifies certain provisions of the
City's investment policy that address interest rate risk, credit risk, and concentration of credit risk.
Authorized
Investment Type
Certificates of Deposit
Repurchase Agreements
U. S. Treasure Obligations
Municipal Investment Pool
Commercial Bank Savings Account
U. S. Government Securities (non -callable)
U. S. Government Securities (callable)
U. S. Government Sponsored Corp.
Instruments: non -callable
U. S. Government Sponsored Corp.
Instruments: callable
Commercial Paper
Bankers Acceptance
Guaranteed Investment Contracts
State or Local Governmental Obligations
Disclosures Relating To Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Investments with interest rates that are fixed for longer periods of time are
more likely to be subject to increased variability in their fair values due to changes in the market
interest rates. The City manages its exposure to market price changes by avoiding over -
concentration of assets in a specific maturity sector, limitation of average maturity of operating
funds investments to less than eighteen months, and avoidance of over -concentration of assets in
specific instruments other than U.S. Treasury Securities and authorized investment pools.
As of September 30, 2009, the City had the following investments:
Maximum
Maximum
Maximum
Percentage
Investment
Maturity
of Portfolio
In One Issuer
5 years
30%
None
5 years
30%
None
5 years
100%
None
5 years
100%
None
5 years
15%
None
5 years
100%
None
5 years
70%
None
5 years
75%
None
5 years
70%
None
5 years
20%
None
5 years
10%
None
5 years
25%
None
5 years
30%
None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Investments with interest rates that are fixed for longer periods of time are
more likely to be subject to increased variability in their fair values due to changes in the market
interest rates. The City manages its exposure to market price changes by avoiding over -
concentration of assets in a specific maturity sector, limitation of average maturity of operating
funds investments to less than eighteen months, and avoidance of over -concentration of assets in
specific instruments other than U.S. Treasury Securities and authorized investment pools.
As of September 30, 2009, the City had the following investments:
43
Fair Value
Weighted
Investment
Primary
Avg. Maturity
Type
Government
AEDC
ACDC
Total
(years)
FHLB
$ 9,928,478
$ 80,894
$ 1,158,622
$ 11,167,994
1.83
FHLMC
8,929,159
72,752
1,042,004
10,043,915
2.60
FNMA
8,510,226
69,338
993,116
9,572,680
2.29
FFCB
3,559,390
29,001
415,369
4,003,760
2.04
Certificates of Deposit
39,512,211
1,124,999
3,550,000
44,187,210
0.70
Texpool
30,459.281
780,869
2,235,856
33,476,OO6
0.003
Total
$100,898,745
$ 2,157,853
$ 9,394,967
$112,451,565
43
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES - CONTINUED
Disclosures Relating To Credit Risk
The City's Investment policy, in conjunction with state law, specifies the type of credit rating of all
authorized investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a
nationally recognized statistical rating organization. The City reduces the risk of issuer default by
limiting investments to those instruments allowed by the Public Funds Investment Act, Chapter
2256, Texas Government Code. The City's investments in U.S. Agency securities (FHLB and
FHLMC) are rated AAA by Standard & Poor's and Asa by Moody's Investors Service.
The investment in the Texas Local Government Pool (TexPool) carried a credit rating of AAAnn by
Standard & Poor's as of September 30, 2009. The City's investments in commercial paper are
rated A-1, F-1, and P-1 by Moody's Investors Service, Fitch, and Standard & Poor's as of
September 30, 2009.
Concentration of Credit Risk
The City's investment policy does not contain stipulations regarding the amount of funds that can
be invested in any single issuer. As of September 30, 2009, with the exception of funds invested
at Texpool, the following table represents 5% or more of the City's investments.
Issuer Investment Type Reported Amount Percentage
FHLB Federal agency securities $ 11,167,994 9.93%
FHLMC Federal agency securities $ 10,043,915 8.93%
FNMA Federal agency securities $ 9,572,680 8.51%
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover deposits or will not be able to
recover collateral securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty,
to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The City's investment policy minimizes
custodial credit risk by requiring pledged securities to be in the name of the City.
The Public Funds Investment Act does require that financial institutions secure deposits made by
state or lost governmental bodies by pledging securities in an undivided collateral pool held by a
depository regulated under state law. The market value of the pledged securities of the collateral
must always remain at least equivalent to the bank balance less the FDIC insurance.
As of September 30, 2009, the City's deposits with financial institutions above the federal
depository limits were fully collateralized.
44
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 3. RECEIVABLES
Receivables at September 30, 2009 for the government's
individual
major funds and non -major, and
internal service funds in the aggregate, including
the applicable allowances for uncollectible accounts,
consist of the following:
Property Select
Aarued
Tax Tes.
Aaounts
Interest
Assessments Olber Total
General Fund $2fal $1.878,467
$ -
$ 70,433
$ - E 1,512,765 $ 3.665]69
Debt Servloa 1031]22 -
-
3,103
108,825
General Capital Pmjects - -
-
9,561
187,55r 13,229]11 13,42.829
G.O. Bond Fund - -
121,310
- 121,310
Nonmaior Gonernmental Funds - -
333,364
4,107
- 330,171
Water and se4rer - -
4.102.233
O'eue
- 4.155.692
Solid Waste - -
259042
12,448
- 113,398 377,888
Drein,a - -
5.213
5,986
- - 641199
Gall Causes - -
3155-
- 0.155
-34
Internal Service Funds
-
29.637
29,671
Gross Rewivables 307.830 1,070.457
4,754,007
310,074
187.557 1405.908 n.293,807
Less. Nlaxance for
Uruollectbles 157,819 -
(14,501)
-
- (172200)
Total Net Receivables,
Pdmery Govammeni $15i $1,078,457
$ 4,739,88
E 310,014
$ 187,%7 $14,855,906 $22,121,807
CamponeM Units E® $1,87.4511
3 -
L37,183
E $ 4140 -L=M
The Water and Sewer Fund accounts receivable include unbilled charges for services rendered
through September 30, 2009. The General Capital Projects Fund other receivable is with The Village
of Allen, LP related to the Event Center construction.
45
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009 was as follows
Governmental Activities
46
Balance
Sales or
Bamnu
September 30,
Other
Adfuarmen4/
September 30,
2008
Milltlons
Dlepos19one
Tourists.
2009
Govamma0tal Funds: -
General capdalassets
not being depredateP
Land and land improvements
$ 111,362,169
$ 505,432
$ -
$ -
$ 111,867,601
Conatructbn in progress
23,657,069
73,126,812
(17,522,521)
79,261,360
Total caplxl waste
not being deprecated
135,019,238
73,832244
(1],522521)
191,128,961
Gars al capital assets
Ming depmaided:
Buildings
52,661,071
-
-
757,389
53,418,460
Improvements
other Nan buildings
371,915,255
1,399,811
-
18,909,127
390,224,194
Furniture and fixtures
2,955796
-
2,955,796
VehiGw
3,157.470
151,816
(539,284)
-
2,770,022
Libmrybooke
2711,471
188,190
(468,921)
-
2,430,748
Machinery and equipment
5,582174
516,679
(206,855)
(143.995)
51748113
Total capital aware being
depreciated
436,983,338
2,256,504
(1,215,040)
17,522,521
457,547,323
Less accumulated
deprecation for:
Buildings
(9.600.916)
(1,376,263)
-
-
(10,977,179)
Improvements
mher than buildings
(126,753,269)
(15,162,153)
-
-
(141,915,422)
Furniture and forum
(2,391,589)
(275,583)
-
-
(2,667,152)
Vehicles
(2,030,103)
(250,965)
523,189
-
(1,765,879)
LlbaryBool®
(2,291,072)
(170,577)
468,921
-
(1,992,728)
Machinery and equipment
(3783,888)
(692,632)
208,855
-
(4,269,663)
Total accumulated
depreciation
(146,854815)
(17,928,173)
1,19.985
-
(163,588,023)
Total general capital assets
being deprecate. net
292,124,523
(15,671,669)
(16.D75)
17,522,521
293,959,300
General rapital assets, net
$ 427,143,761
$ 57,960,575
$ (16,D75)
$
$ 485,084261
46
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE4. CAPITAL ASSETS—CONTINUED
Less accumulated depreciation for
Towers, tanks, 6 pumps stations
Balance
(4,178,362) 195,000
Sales or
Balance
(10,236)
September 30,
- (10,588)
Ocher Adjustinentsl
Septamlier30,
(372,011) 92,844
2008
Additions
Dispositions Trensfere
2009
attempt Service Fund.:
Total accumulated
Internal service funds assets
(47,965,221)
(4,573,275) 287,844
(52,250,652)
Total capital assets
not being depreciated:
being depreciated net
91,592,611
Construction in progress
$ -
$ 514,162
$ $
$ 514,162
Total capital asses
capital assets, net
$106,941,677$
(802,452) $
$ $ 106,339,225
not being depreciated
514,162
-
514,162
Internal service
assets being depreciated:
Vehicles
4,621,191
2,671,232
(338,473) -
8,953,950
Machinery and equipment
1,309,665
170,071
(59,184)
1,420,572
Total internal service
.seers being depreciated
5,930,856
2,841,303
(397,637)
8,374,522
Less accumulated
depreciation for:
Vehicles
(2,410,208)
(728,628)
338,473 -
(2,800,363)
Machinery and equipment
(768,442)
(244,935)
59,164
(954,213)
Total accumulated
depreciation
(3,178,650)
(973,563)
397,637 -
(3,754,576)
Total Internal service funds
capital assets being depreciated net
2,752,208
1,867,740
4,619,946
Total Internal service funds
wpital assets, net
2,752,206
2,381,902
5,134,108
Governmental adivilies
capital assets, net
S 429,895,967
$ 60,342,477
$ (16,075) $
$ 490,222,369
Business -Type Activities
Water and Sewer Activities:
Capital assets not being deprecmted:
Land
$ 4,048,296 $
24,586
$ -
$ 4,072,882
Construction in progress
11,300,770
2,334,219
(2,531,314)
11,103,675
Total capital assets not
being depreciated
15,349,066
2,358,805
(2,531,314)
15,176,557
Capital Assets Being depreciated:
Towers, tanks, S pumps stations
135,540,519
958,573
(195,000) 2,531,314
138,835,406
Furniture and fxtures
11,114
-
- -
11,114
Machinery and equipment
3,289,907
369,986
(92,844) -
3,567,049
Vehicles
716,292
283,459
998,751
Total capital assets
being depreciate!
139,557,832
1,612,018 (287,844) 21531,314
143,413,320
Less accumulated depreciation for
Towers, tanks, 6 pumps stations
(45,389,780)
(4,178,362) 195,000
- (49,373,142)
Furniture, and fixtures
(10,236)
(352) -
- (10,588)
Machinery and equipment
(1,862,404)
(372,011) 92,844
- (2,141,571)
Vehicles
(702,801)
(22,550)
(725,351)
Total accumulated
depreciation
(47,965,221)
(4,573,275) 287,844
(52,250,652)
Total capital assets
being depreciated net
91,592,611
(2,961,257)
2,531,314 91,162,666
Water and sewer activities
capital assets, net
$106,941,677$
(802,452) $
$ $ 106,339,225
47
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE4. CAPITAL ASSETS -CONTINUED
Drainage AogvXies:
Balance
Sales or
Capital assets being depreciated
Balance
September30,
Other improvements
Other
Adjustments/
September 30,
Vehicles
2008
Additions
Dispositicns
Transfers
2009
Solid Waste Activities
403,597
Thal capital assets
449,757
203,454
653,211
Capital assets being depreciated:
958.945
59,682
1,018,627
Less accumulated
Machinery and equipment
$ 9,819
$ -
$ -
$ -
$ 9,819
Vehicles
44,448
(13,208)
(12,549)
Vehicles
31,899
Total capital assets
- - (94,324)
Machine,yand equipment
(269,55)
(23,092)
(292,547)
being depreciated
54,287
(12,549)
depreciation
41,718
(41,892)
(468,589)
Drainage activities
Less accumulated depreciation for:
capital assets, net
$ 534,248
$ 17,790 $
$ It 552,038
Machinery and equipment
(6,850)
(539)
-
-
(7,389)
Vehicles
(44,448)
12,549
(31,899)
Total accumulated
depredation
(51,298)
(539)
12,549
(39,288)
Solid waste allivities
capital assets, net
$ 2,969
$ (539)
$
$
S 2,430
Drainage AogvXies:
Capital assets being depreciated
Other improvements
$ 496,132
$ - $
- $ - $ 496,132
Vehicles
102,079
16,819
- - 118,898
Machinery and equipment
360,734
42863
403,597
Thal capital assets
449,757
203,454
653,211
Wing depreciated
958.945
59,682
1,018,627
Less accumulated
depreciation for.
(310,191)
(73,390)
- - (383,581)
Other improvements
(86,512)
(13,208)
- - (79,718)
Vehicles
(68,730)
(5.59,
- - (94,324)
Machine,yand equipment
(269,55)
(23,092)
(292,547)
Total accumulated
depreciation
(424,697)
(41,892)
(468,589)
Drainage activities
capital assets, net
$ 534,248
$ 17,790 $
$ It 552,038
Golf Course ActlAties:
Capital assets being depreciated:
Machinery and equipment
$ 438,863
$ 203,454 $
- $ - $ 642,317
Furniture and Oriures
10,894
10,894
Total capital assets
being depredated
449,757
203,454
653,211
Less accumulated
depreciation for:
Machinery and equipment
(310,191)
(73,390)
- - (383,581)
Furniture and fi>tures
(3,268)
(2,180)
(5,48)
Total accumulated
depreciation
(313,459)
(75,570)
(389,029)
Got course activities
capital assets, net
136,298
127,884
264,182
Business -type activities
capital assets, net
$107,615,192
$ (457,317) $
$ $ 107,157,875
48
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 4. CAPITAL ASSETS —CONTINUED
Lees accumulated depreciation for
Balance
seats or
B.W.
auiaings
4tsia er 30,
(153,333)
other Adlusloenlsl
saptamber3o.
Furniture and figures
2000
Matters
Dapositar, Transfers
2009
Component units:
(1,493,8781
(168,540)
74,028
(1,506390)
Capital auets not being depreciated.
1.]]4914
(heal
1,808.388
Lantl
$ d,325.551
$ 614,00)
$ 11,028) $ -
$ 4,324,525
Lane improvements
207.878
-
-
20],8]8
Co LLon in progress
12,428,495
780,628
(13,209,1231
TOtat cap,alassets
notot being depreciated
eprec
18,861,820
780,826
(13,210,149) -
4,532.403
Capital mots being depreciated
I eme other
than buildings
3,128609
FumlWre and
(asset.xturest
100,103
(74,028)
86,075
,da
Tool ccgal assets being
deprecated
3.260.792
174,0261
3.191
Lees accumulated depreciation for
auiaings
(1,413,242)
(153,333)
11,5685]5)
Furniture and figures
(00.838)
(13.215)
74,020
(19,6231
Total accumulated depreaabon
(1,493,8781
(168,540)
74,028
(1,506390)
Total capital amea being depreciated. nal
1.]]4914
(heal
1,808.388
Canponent units espial asses, net
$ 18]38838
$ 614,00)
$ (13,210,149) $
$ 8140.769
Depreciation expense was charged as direct expense to programs of the primary government as
follows:
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Community development
Grant Administration
Total depreciation expense - General capital assets
Internal Service Funds
Total depreciation expense - Governmental activities
49
$ 857,394
784,326
11,293,891
4,922,661
7,677
62,224
17,928,173
973,563
$ 18,901,736
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE4. CAPITAL ASSETS—CONTINUED
Business -type activities:
Water and sewer
$ 4,573,275
Solid waste
539
Drainage utility
41,892
Golf course
75,570
Total depreciation expense - Business -type activities
4,691,276
Component units:
Allen Economic Development Corporation
$ 166,548
Outstanding commitments at September 30, 2009, under authorized construction contracts were
$3,485,095. These outstanding commitments 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.
At September 30, 2009, bonds payable consisted of the following individual issues:
General Obligation Bonds:
$11,100,000 Sense 2000 Bonds due in annual installments
of $115,000 to $915,000 through September 1, 2020;
interest at 5.0% to 6.5%.
$ 520,000
$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%.
5,945,000
$13,000,000 Sense 2002 Bonds due in annual installments
of $175,000 to 1,020,000 through September 1, 2022;
interest at 4.2% to 5.5%.
10,000,000
$7,210,000 Series 2003 Bonds due in annual installments
of $175.000 to $515,000 through September 1, 2023;
interest at 2.75% to 4.25%.
5,655,000
50
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE5. LONG-TERM DEBT -CONTINUED
General Obligation Bonds—continued
$11,700,000 Series 2004 Bonds due in annual installments
of $395,000 to $790,000 through September 1, 2024;
interest at 4.0% to 5 25%.
9,760,000
$32,330,000 Series 2005 Refunding Bonds due in annual
installments of $75,000 to $3,505,000 through August 15,
2021; interest at 3.0% to 5.00%.
30,320,000
$1,595,000 Series 2006 Bonds due in annual mstallmen4s
Of $50,000 to $115,000 through August 15, 2026;
interest at 4.0% to 4.20%.
1 430 000
$11,145,000 Series 2007 Bonds due in annual installments
of $380,000 to $815,000 through August 15, 2027;
interest at 4.0% to 4.60%.
10,360,000
$10,185,000 Sense 2008 Bonds due in annual installments
of $250,000 to $540,885 through August 15, 2028;
interest at 3 5% to 4.60%.
9,935,000
$15,400,000 Series 2009 Bonds due in annual installments
of $435,000 to $1,140,000 through August 15, 2028;
interest at 2.5% to 4.5%
15,400,000
$ 99,325,000
Certificates of Obligation:
$4,735,000 Series 2004A Combination Tax 8 Revenue
Goff Course Certificates of Obligation due in annual
installments of $165,000 to $390,000 through
September 1, 2024; interest at 3.50% to 5.00%.
$ 4,215,000
$765,000 Sense 20048 Combination Tax 8 Revenue
Golf Course Certificates of Obligation due in annual
installments of $25,000 to $70,000 through
September 1, 2024interest at 4.875% to 5.50%.
690,000
$ 4,905,000
AEDC Sales Tax Revenue Bonds:
$15,335,000 Sense 2008 Sales Tax Revenue Bonds
due in annual installments of $390,000 to $940,000
through September 1, 2032; interest at 3 50% to 4.50%.
$ 14,345.000
$ 14,345,000
ACDC Sales Tax Revenue Bonds:
$5,600,000 Series 2006 Refunding Bonds due in
annual installments of $290,000 to $785,000 through
September 1, 2019; interest at 3.75% to 5.0%.
$ 5,310,000
$1,615,000 Series 2007-A Refunding Bonds due in
annual installments of $260,000 to $515,000
through September 1, 2012; interest at 3.98%.
840,000
$32,835,000 Series 2008 Sales Tax Revenue Bonds
due in annual installments of $345,000 to $2,785,000
through September 1, 2032; interest at 4.00% to 6.00%.
31,485,000
$ 37,635,000
51
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE5. LONG-TERM DEBT—CONTINUED
Water and Sewer Revenue Bonds:
$6,710,000 Series 2004 Bonds due in annual installments
of $175,000 to $490,000 through June 1, 2024; interest
at 4.75% to 5.0%.
$4,300,000 Series 2005 Bonds due in annual installments
of $140,000 to $310,000 through June 1, 2025; interest
at 3.75% to 6.625%.
$5,795,000 Series 2009 Refunding Bonds due installments
$575,000 to $630,000 through June 1, 2019;
interest at 1.2% to 3.5%
$ 4,615,000
3,690,000
5,795,000
$ 14,100,000
The following is a summary of long-term debt transactions, including current portion, of the City for
the year ended September 30, 2009:
Less defend amounts;
For issuance premiums 1,515,723 189,872 (66,903) 1,638,692
For refundings (1,040,403) 158.316 (882,087)
Governmental activity
Long-term debt $ 97,589.061 $ 17.862.861 $ (7,071.658) $ 108.380.264 $ 8,026,885
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
52
Balance
Balance
Due
Beginning
En!
Within
of Year
Increases
Decreases
of Year
One Year
Governmental ActN9les
General Obligation Bonds
$ 88,920,000
$ 15,400,000
$ (4,995,000)
$ 99,325,000
$ 5.790,000
Certificates of Obligation
5,110,000
-
(205,000)
4,905,000
205,000
Capital lease payable
151,403
37,265
(69,205)
119,463
67,367
Compensated absences
2,932,338
2,235,724
(1,893,866)
3,274,196
1,964,518
Less defend amounts;
For issuance premiums 1,515,723 189,872 (66,903) 1,638,692
For refundings (1,040,403) 158.316 (882,087)
Governmental activity
Long-term debt $ 97,589.061 $ 17.862.861 $ (7,071.658) $ 108.380.264 $ 8,026,885
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
52
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 5. LONG-TERM DEBT - CONTINUED
(48,831)
AEDC
Long -teem debt $ 14,683780 $ $ (387,411)
$ 14,296,369 $ 405,000
Balance
Long-term debt $ 15,404,511
$ 5,854,956
Balance
Due
14,512,936
Beginning
1,548,931
Allen Community Devalopmant Corporation
End
Within
$37,380,198 are as follows:
of Year
Increases
Decreases
W Year
one Year
Business Type Activities
$
37,635,000
$
930,00()
Less defended amounts.
Water and Sewer Revenue Bonds
$ 15,035,000
$ 5,795,000
$ (8,730,000)
$ 14,10.000
$ 1,140,000
Compensated absences
320,766
153,968
(131,431)
343,303
321,069
Capital lease payable
119,767
203,455
(70,845)
252,377
85,882
Less defamed! amounts:
ACDC
Forrefundings
(73,010)
(297,467)
34,381
(336,098)
-
For issuance discaunts/premiums
1,988
930,000
151,364
153.352
Business -type activity
(48,831)
AEDC
Long -teem debt $ 14,683780 $ $ (387,411)
$ 14,296,369 $ 405,000
Annual Requirements to Retire Debt Obligations
Long-term debt $ 15,404,511
$ 5,854,956
$ (6,746,531)
$
14,512,936
$
1,548,931
Allen Community Devalopmant Corporation
Annual debt service requirements to maturity for general obligation bonds, including
interest of
$37,380,198 are as follows:
Governmental Activities
Sales Tax Revenue Bonds $ 38,530,000
(895,000)
$
37,635,000
$
930,00()
Less defended amounts.
2012 6,480,000 3,914,298
10,394,298
2013 6,765,000 3,633,002
10,398,002
2014 7,075,000 3,344,728
10,419,728
For issuance discounts l premiums (114,634)
(1,991)
2020-2024 22,570,000 4,844,992
27,414,992
(116,625)
10.206 757
Total $ 99.325.000 Lizaw=
For refundings (139,821)
22,646
(117,175)
ACDC
Long-term debt $ 38,275,545
$ (1,991)
$ (8]2,354)
$
37,401,200
$
930,000
Allen Economic Development Corporation
Sales Tax Revenue Bonds $ 14,735,000
$ -
(390,000)
$
14,345,000
It
405,000
For issuance discounts I premiums (51,220) 2,589
(48,831)
AEDC
Long -teem debt $ 14,683780 $ $ (387,411)
$ 14,296,369 $ 405,000
Annual Requirements to Retire Debt Obligations
The City intends to retire all of its general long -tens liabilities, plus accrued interest, from ad valorem
taxes and other current revenues. The proprietary fund type long-term
debt will be repaid, plus
accrued interest, from operating revenues of the Water and Sewer Fund. The annual aggregate
maturities for each band type for the years subsequent to September 30, 2009, are as follows:
General Oblioation Bonds
Annual debt service requirements to maturity for general obligation bonds, including
interest of
$37,380,198 are as follows:
Governmental Activities
Fiscal Year Ending
September 30 Principal Interest
Total
2010 $ 5,775,000 $ 4,555,471
$ 10,330,471
2011 6,190,000 4,158,585
10,348,585
2012 6,480,000 3,914,298
10,394,298
2013 6,765,000 3,633,002
10,398,002
2014 7,075,000 3,344,728
10,419,728
2015-2019 35,240,000 11,952,365
47,192,365
2020-2024 22,570,000 4,844,992
27,414,992
2026-2028 9.230.000 976.757
10.206 757
Total $ 99.325.000 Lizaw=
$ Q6.79110
53
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE5. LONG-TERM DEBT -CONTINUED
Certificates of Obligation
Annual debt service requirements to maturity for the Certificates of Obligation, including interest of
$1,934,393 are as follows:
Water and Sewer Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $4,057,804 are as follows:
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2010
$ 220,000
$ 213,325
$ 433,325
2011
230,000
202,175
432,175
2012
240,000
190,525
430,525
2013
260,000
180,475
440,475
2014
270,000
170,894
440,894
2015-2019
1,600,000
680,724
2,280,724
2020-2024
2.085.000
296.275
2.381.275
Total
$ 4 905.000
$ 1 934.393
$ 6 839 393
Water and Sewer Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $4,057,804 are as follows:
AEDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of $8,226,573 are
as follows:
Business -type Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2010
$ 1,140,000
$ 558,661
$ 1,698,661
2011
1,190,000
513,355
1,703,355
2012
1,235,000
467,074
1,702,074
2013
1,165,000
423,049
1,588,049
2014
1,205,000
380,519
1,585,519
2015-2019
5,305,000
1,265,129
6,570,129
2020-2024
2,550,000
436,222
2,986,222
2025-2028
310.000
13.795
323.795
Total
16.100.00
d OS] A
1 A.15] A
AEDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of $8,226,573 are
as follows:
54
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2010
$ 405,000
$ 575,380
$ 980,380
2011
420,000
561,205
981,205
2012
435,000
546,505
981,505
2013
450,000
531,280
981,280
2014
465,000
515,530
980,530
2015-2019
2,585,000
2,321,800
4,906,800
2020-2024
3,100,000
1,809,813
4,909,813
2025-2029
3,785,000
1,118,460
4,903,460
2030-2032
2.700.000
246.600
2.946.600
Total
id 9d5.1x1
R.92fi.57.
99.5]1 F7.
54
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 5. LONG-TERM DEBT - CONTINUED
Original
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt
service requirements
to maturity, including interest of $30,250,975 are
as follows:
2009
Unissued
Purse
Authorization
Authorized
Governmental Activities
Issue
Fiscal Year Ending
Pedonning Ant Center
11105,02
$19,500,000
September 30
Principal
Interest
Total
2010
$ 930,000
$ 2,021,123
$ 2,951,123
2011
965,000
1,984,752
2,949,752
2012
1,005,000
1,947,008
2,952,008
2013
1,045,000
1,906,116
2,951,116
2014
1,090,000
1,862,835
2,952,835
2015-2019
6,245,000
8,512,205
14,757,205
2020-2024
7,985,000
6,770,551
14,755,551
2025-2029
10,480,000
4,281,285
14,761,285
2030-2032
7.890 000
965,100
8.855 100
Total
$ 3] say 000
i aay75
A 67 eB5 975
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities and infrastructure. During the year, $15,400,000 of general obligation bonds
were issued to finance permanent public improvements and public purposes. 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 $1,553,318 available to
service the general obligation debt at September 30, 2009. 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, 2009.
A schedule of authorized but unissued direct General Obligation Bonds as of September 30, 2009, is
as follows:
55
Original
Date
Amoum
Issued
2009
Unissued
Purse
Authorization
Authorized
To Date
Issue
Balance
Pedonning Ant Center
11105,02
$19,500,000
$2,815,000
$ -
$16,685,000
Service Center Facilities
05/122007
14,500,000
2,000,000
10,500,000
2,000,000
Renovations
05/122007
1,700,000
-
-
1,700,000
streets
05112@007
27,200,000
8,000,000
1,4so,ofro
17,750,000
Parks
05/122007
17,250,000
5,850,000
-
11,400,000
Public Ad Projects
05/122007
1,390,000
200,000
100,000
1,090,000
Public Safety
05/122007
15.855.00023.
4%395 (In0
75`00
522.1411 Opp
335. 0.000
&j5jffl=
92.30.000
AUJIM=
55
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTES. LONG-TERM DEBT—CONTINUED
Water and Sewer Revenue Bonds
The City is required by the applicable revenue bond indentures to pledge the net revenues of the
Water and Sewer Enterprise Fund for the retirement of its outstanding revenue bonds, including
interest thereon, and is required to maintain debt service funds and bond reserve funds for all
such bonds outstanding.
Funds aggregating $654,521 at September 30, 2009 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.
In February of 2009, the City issued $5,795,000 in Waterworks and Sewer System Revenue
Refunding Bonds, with interest ranging from 1.20% to 3.50%. The portion of the debt that
represents refunded bonds were 1999 series in Waterworks and Sewer System Revenue
Refunding Bonds totaling $5,965,000 and carried interest rates ranging from 3.55%to 5.00% with
maturity dates in 2010 through 2019. Refunded bonds were considered a current refunding and
resulted in a net present value benefit to the City of $337,418.
Water and Sewer Revenue Bonds and Refunding Bonds are payable solely from and, equally
secured by, a first lien on and pledge of the net revenue of the City's combined waterworks and
sanitary sewer systems.
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 accumulate reserves to an amount equal to the average annual principal and interest
requirements of all outstanding bonds secured by the net revenues of the system. Such reserves
are funded up to the required level in equal monthly installments over a maximum five-year
period, as defined in the indentures. Amounts in the reserve fund at September 30, 2009 of
$1,980,741 are adequate to meet the reserve requirements.
At September 30, 2009, restricted assets, which include Water and Sewer Revenue Bond Debt
Service and Reserve Funds, were as follows:
Revenue bond debt service
Revenue bond reserve fund
$
1,168,598
812,143
$
1,980,741
Retained earnings reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds $ 1,980,741
Accrued interest, payable from restricted assets (186,220)
Current maturities of revenue bonds,
payable from restricted assets (1,140,000)
Reserved for revenue bond principal and interest $ 654,521
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, 2009 was
4.74 times.
56
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTES. LONG-TERM DEBT -CONTINUED
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. As of September 30, 2009, the
capitalized costs of the Governmental leased property and Business -type leased property under
capital leases were $821,279 and $642,317, respectively.
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, 2009 are as follows:
Fiscal Year Ending Governmental Activities
September 30, Principal Interest Total
2010
$ 67,367
$ 3,911
$
71,278
2011
45,434
1,052
46,486
2012
6,662
95
6,757
Total
$ 119,463
$ 5,058
$
124,521
Fiscal Year Ending
Business -type Activities
September 30,
Principal
Interest
Total
2010
$ 85,862
$ 10,974
$
96,836
2011
84,194
6,547
90,741
2012
58,137
2,661
60,798
2013
22,809
387
23,196
2014
1,375
14
1,389
Total
$ 252,377
$ 20,583
$
272,960
Operating LBeses
The City leases machinery and equipment under non -cancelable operating leases.
Total costs
for such leases were $164,991 for the fiscal year ended
September 30, 2009.
Future
minimum
lease payments, by year and in the aggregate, under the non -cancelable lease commitments
are as follows:
Fiscal Year Ending
September 30,
Amount
2010
$
164,991
2011
164,991
2012
31,646
Total
$
361,628
57
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 6. INTERFUND TRANSFERS
All intertund transfers between the various
funds are approved
supplements to the
operations of those funds. Individual fund operating transfers for fiscal year 2009 were as
follows:
Fund
Transfers In
Transfers Out
Major Governmental Funds:
General Fund
$ 3,682,842
$ 3,864,106
General Non -Bond Capital Projects
1,725,070
675,435
General Obligation Bonds
-
250.233
Total Major Governmental Funds
5.407,912
4.789.774
Non -major Governmental Funds:
Antenna Rental Fund
-
204,000
Parks 8 Recreation Special Revenue
274,000
299,290
Park Improvement
-
-
Grants 8 Special Revenue
291.823
Total Non -major Governmental Funds
565.823
503.290
Major Enterprise Funds
Water and Sewer Fund
24,126
3,044,603
Solid Waste Fund
-
398,762
Drainage Utility Fund
-
249,169
Golf Course Fund
456,955
-
Hotel Occupancy Tax Fund
-
25.000
Total Major Enterprise Funds
$ 481.081
$ 3.717.534
Internal Service Funds:
Replacement Fund 2,323,025
Risk Management Fund 232,757
Total Internal Service Funds 2.555.782
Total Transfers 9.010.59 $ 9 010 598
Transfers are used to 1) move amounts from funds receiving administrative and operating support to
the appropriate fund incurring the administrative and operating costs and 2) to move unrestricted
funds to finance various programs that the City must account for in other funds in accordance with
budgetary authorizations, including amounts provided as subsidies or matching funds for various grant
programs and to support cash financing of capital projects.
The fund financial statements show
Governmental funds: Total transfers in of $5,407,912 include funding for capital projects, grant
matching funds, and reimbursement for operating and administrative costs incurred to provide
technology, procurement, human resources, building maintenance, financial and administrative
support. Transfers out totaling $4,789,774 include cash financing of capital projects, support of
programs recorded in non -major governmental funds and internal service funds.
58
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 6. INTERFUND TRANSFERS —CONTINUED
• Proprietary funds: Total transfers in of $481,081 mainly represent amounts transferred into the
Golf Course to support operations. The total transfer out of $3,717,534 represents the amount
provided by other funds for technology, procurement, human resources, building maintenance,
financial and administrative support. The Internal Service Funds total transfer in of $2,555,782
mainly represents the amounts needed for Public Safety Dispatch system of the Replacement
fund and administrative support of the Risk Management fund.
NOTE 7. RETIREMENT PLAN
Plan Description
The City provides pension benefits for all its eligible employees through a nontraditional, joint
contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System
(TMRS), an agent, multiple -employer public employee retirement system.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS. The report also provides
detailed explanations of the contributions, benefits and actuarial methods and assumptions used by
the System. This report may be obtained by writing to TMRS, P.O. Box 149153, Austin, Texas
78714-9153, calling 800-924-8677, or accessing the publications section of the TMRS website at
www.imrs.om.
The plan provisions are adopted by the governing body of the City, within the options available in
the state statutes governing TMRS. Plan provisions for the City were as follows:
Matching Ratio (City to Employee)
Years required for vesting
Age/years of service retirement eligibilit
Updated Service Credit
Annuity increase to Retirees
Contributions and Funding Policy
Plan Year 2008
Plan Year 2009
2 to 1
2 to 1
5
5
60/5,0/20
60/5,0/20
100% repeating,
1009/ repeating,
Transfers
Transfers
700/6 repeating
70% repeating
Under the state law governing TMRS, the contribution rate for each City is determined annually by
the actuary using the Projected Unit Credit actuarial cost method. The rate consists of the normal
cast contribution rate and the prior service cost contribution rate, which is calculated to be a level
percent of payroll from year to year. The normal cost contribution rate finances the portion of an
active member's projected benefit allocated annually; the prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city. Both the
normal cost and prior service contribution rates include recognition of the projected impact of
annually repeating benefits such as Updated Service Credits and Annuity Increases.
The City contributes to the TMRS Plan at an actuarially determined 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 serves as the
basis for the rate and the calendar year when the rate goes into effect (i.e. December 31, 2007
valuation is effective for rates beginning January 2009). The City's retirement cost rate was 9.93%
from October to December 2008 and 10.9% from January to September 2009.
59
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30. 2009
NOTE7. RETIREMENT PLAN—CONTINUED
Beginning in fiscal year 2008, changes in actuarial funding and assumptions resulted in higher
required contributions and lower funded ratios. To assist in this transition to higher rates, TMRS
approved an eight-year phase-in period, which allows cities the opportunity to increase their
contributions gradually to their full required contribution rate. The City made additional voluntary
contributions of approximately 1% from January to September 2008 and 2% for the entire 2009
fiscal year to reduce the unfunded actuarial accrued liability.
The annual pension cost and net pension obligation/(asset) are as follows:
Annual Required Contribution (ARC) $6,277,604
Contributions Made -statutorily required monthly (5,666,839)
Contributions Made — voluntary monthly ( 570.000)
Increase in net pension asset $ 40,765
Net Pension Asset, beginning of the year
Net Pension Asset, end of the year $ 40-765
Three -Year Trend Information:
Funding Status and Fundlna Proaress:
As of December 31, 2008, the most recent actuarial valuation date, the plan was 68.9% funded.
The actuarial accrued liability for benefits was $72,366,502, and the actuarial value of assets was
$49,860,343, resulting in an unfunded actuarial accrued liability (UAAL) of $22,506,159. These
amounts include the assets and actuarial liabilities related to both the Municipal Accumulation fund
(MAF) and the Employee Savings Fund (ESF) of the City. It should be noted that only the assets of
the MAF can be used to pay for the MAF's actuarial liabilities, and if ESF assets and liabilities had
been excluded, the reported funding status would be lower. The covered payroll (annual payroll of
active employees covered by the plan) was $31,392,512, and the ratio of the UAAL to the covered
payroll was 71.7%.
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Projected Salary increases
Includes Inflation at
Cost -of -Living Adjustments
Dus
-- Projected Unit Credit
-- Level Percent of Payroll
-- 29 Years — Closed Period
-- Amortized Cost
7.5%
-- Varies by Age and Service
3.0%
2.1%
Annual
Percentage
Net Pension
Fiscal
Pension
of APC
(Obligation)
Year
Cost (APCI
Contributed
Asset
2007
$2,519,314
100%
2008
$2,680,367
100%
2009
$6,277,604
101%
$ 40,765
Funding Status and Fundlna Proaress:
As of December 31, 2008, the most recent actuarial valuation date, the plan was 68.9% funded.
The actuarial accrued liability for benefits was $72,366,502, and the actuarial value of assets was
$49,860,343, resulting in an unfunded actuarial accrued liability (UAAL) of $22,506,159. These
amounts include the assets and actuarial liabilities related to both the Municipal Accumulation fund
(MAF) and the Employee Savings Fund (ESF) of the City. It should be noted that only the assets of
the MAF can be used to pay for the MAF's actuarial liabilities, and if ESF assets and liabilities had
been excluded, the reported funding status would be lower. The covered payroll (annual payroll of
active employees covered by the plan) was $31,392,512, and the ratio of the UAAL to the covered
payroll was 71.7%.
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Projected Salary increases
Includes Inflation at
Cost -of -Living Adjustments
Dus
-- Projected Unit Credit
-- Level Percent of Payroll
-- 29 Years — Closed Period
-- Amortized Cost
7.5%
-- Varies by Age and Service
3.0%
2.1%
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE7. RETIREMENT PLAN—CONTINUED
The schedule of funding progress, presented as Required Supplementary Information following the
notes to the financial statements, presents multiyear trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of
benefits.
NOTE 8. WATER AND SEWER CONTRACTS
In 1972, the City entered into a forty -year contract with the North Texas Municipal Water District
(District) for the purchase of water. Under the terms of this contract, the City is obligated to make a
minimum annual payment (adjusted annually) in return for a minimum volume of gallons of water per
year. During 1998, the City was annexed into the North Texas Municipal Water District, which
guaranteed the City a minimum volume of water. During the year ended September 30, 2009, the
cost of water purchased under this contract was $6,594,146.
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 fife 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 2009, the cost for transportation, treatment and
disposal of sewage and other wastes was $4,990,371.
NOTE 9. DEFERRED COMPENSATION PLAN
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,
2009, the deferred compensation investments are not reported in the City's financial statements.
NOTE 10. RISK MANAGEMENT
Health and Dental Insurance
The City provides health and dental insurance benefits to City employees under a modified self-
insurance plan. Under the plan, the City and the employee pay a portion of a predetermined
monthly premium, which is based on the estimated claims cost for the plan and the extent of
medical coverage selected by the employee. To cover annual costs, premium payments are
reported as operating revenues of the Risk Management Fund and operating
expenditures/expenses of the participating funds.
A commercial insurance carrier is utilized to adjudicate and pay medical claims on behalf of the
City. The City's liability is limited by an excess ("stop loss") insurance policy covering individual
claims in excess of $125,000 per person. Throughout the policy year, the "stop loss" insurance
carder reimburses the City for claims paid during the policy year which exceeded the "stop loss"
amount. A commercial insurance company re -insures the City for individual claims in excess of
up to a lifetime maximum of $2,000,000.
61
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE10. RISK MANAGEMENT -CONTINUED
Health and Dental Insurance - Continued
The liabilities for insurance claims reported are based on GASB No. 10, Accounting and Financial
Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for
claims be reported if information prior to the issuance of the financial statements indicates that it
is probable that a liability has been incurred at the date of the financial statements and the
amount of the loss can be reasonably estimated. These liabilities include an estimate for incurred
but not reported claims. The estimated amount at September 30, 2009 was $599,371.
Changes in the Risk Management liability during the past five fiscal years 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
2005 $424,616 $4,506,755 $4,404,086 $527,285
2006 527,285 4,347,042 4,359,306 515,021
2007 515,021 6,056,992 5,954,712 617,301
2008 617,301 9,206,758 9,194,572 629,487
2009 629,487 4,448,591 4,518,707 599,371
Workers Compensation, Property and Liability Insurance
The City participates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for
workers' compensation claims, liability (general, automobile, law enforcement, and
enorsiomissions), and property insurance. The cost is based on the pool's claims cost, which is
adjusted to reflect the City's individual claims experience As claims arise they are submitted to
and paid by TMLIRP. To cover annual costs, premium payments are reported as operating
revenues of the Risk Management Fund and operating expenditureslexpenses of the participating
funds.
The City has a workers' compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $400,000. During 2009, the City contributed $177,954 to the Risk
Management Fund for workers' compensation.
The City has various levels of insurance deductibles for property, liability, and automobile
insurance with the maximum deductible set at $10,000. All insured claims are paid by TMLIRP,
less the appropriate deductible. During 2009, the City contributed $410,733 for property and
general liability.
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Effective for fiscal year 2009, the City implemented Governmental Accounting Standards Board
(GASB) Statement 45 "Accounting and Financial Reporting by Employers for Postemployment
Benefits Other than Pensions (OPEB)" prospectively (no beginning Net OPEB Obligation).
62
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB) -CONTINUED
Retiree Health Care Benefits
Program Description
In addition to the pension benefits described in Note 7, as required by state law the City makes
health care benefits available to all retired employees through a single -employer defined benefit
medical plan. This healthcare plan provides lifetime insurance or until age 65 to all employees at
any age with 20 years of service and their dependents. Retirees must make a one-time
irrevocable decision to continue benefits at the time of retirement, after that their eligibility for this
benefit ends.
The benefits and contribution rates are approved annually by the City Council as part of the
budget process. The retiree benefit consists of medical, dental and vision care at the same cost
as an employee until age 65. Retiree premiums are equal to COBRA rates and are paid entirely
by the retiree (no City subsidy). Since an irrevocable trust has not been established, the plan is
not accounted for as a trust fund, therefore, does not issue a separate financial report. For
financial reporting purposes, health benefits for retiree and active employees are reported in the
Risk Management Fund.
As of September 30, 2009, membership consisted of:
Retirees and beneficiaries receiving benefits 8
Active employees 517
Total
Funding Policy
525
Actuarial studies were completed in August 2006 and September 2008 to prepare for
implementation of GASB 45. As part of the annual budget process plan premium rates (annually
determined by a medical consulting firm) and the OPER annual required contribution (ARC) are
approved by the City Council. Retiree premiums are equal to COBRA rates and are paid entirely
by the retiree. In 2009 retirees contributed $21,234 with COBRA rates ranging from $414 to $981
per month depending on coverage selected For the first year of GASB 45 implementation the
City contributed the ARC of $48,973 to the Risk Management Fund where payments of current
OPEB benefits are made on a pay-as-you-go basis. The City is not required to establish an
irrevocable trust fund to accumulate assets for payment of future OPEB benefits, and has elected
not to do so for 2009.
Annual OPEB costs and NET OPEB Obligation
The City's annual other post -employment benefit (OPEB) cost is calculated based on the annual
required contribution of the City (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. Since fiscal year 2009 is
the first year of implementation of GASB Statement 45, the OPEB obligation at the beginning of
the year is zero and the OPER cost (expense) is equal to the ARC.
63
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPER) —CONTINUED
Annual required contribution
$ 48,973
Interest on prior year Net OPEB obligation
-
Adjustment to annual required contribution
Annual OPEB cost
$48,973
Contributions made
$48,973
Change in OPEB obligation
-
Net OPEB obligation (asset) — beginning of year
Net OPER obligation (asset) —end of year
-
Percentage of OPEB costs contributed
100%
Funded Status and Funding Progress
As of September 30, 2008, the most recent actuarial valuation date, the actuarial accrued liability
for benefits was $534,259, all of which was unfunded. The covered payroll (annual payroll of
active employees covered by the plan) was $31,392,512, and the ratio of the unfunded actuarial
accrued liability to the covered payroll was 1.7%.
Actuarial values of the program involve estimates of the value of reported amounts and
assumptions of the probability of occurrence of events far into the future. Amounts determined
regarding the funded status of the program and the annual required contributions of the employer
are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future.
The schedule of funding progress, presented as required supplementary information following the
notes to the financial statements, presents multiyear trend information (only one year presented
in this first year of implementation) that shows whether the actuarial value of plan assets held in
an irrevocable trust is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits. As the City chose not to establish an irrevocable trust, plan assets will
always be reported under GASB Statement 45 as zero.
It is important to note, however, that the net assets of $3,575,961 available in the Risk
Management Fund exceed the $534,259 actuarial accrued liability. An actuarial study update is
planned for fiscal year 2010 at which time the City will reassess the funding and program options.
Actuarial Methods Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan understood by the employer and plan members) and include the type of benefits in force at
the valuation date and the historical pattern of sharing benefit costs between the City and the plan
members at that point. Actuarial calculations reflect a long-term perspective and employ methods
and assumptions that are designed to reduce short -tens volatility in actuarial accrued liabilities
and the actuarial value of assets. Significant methods and assumptions used for this were:
Actuarial Assumotions
Discount Rate
Amortization Method/Period
Health Care Cost Trend Rate:
Retirement Rates:
Retiree Participation Rate
Dependent Status:
Mortality:
Actuarial Value of Assets
Actuarial Cost Method
5.00%
level dollar, open, 30 years
9% graded to 5 1/2% in year 8 and thereafter
Ages 50-55-2%, 56-60-5%, 60-64-15%, 65+ 100%
20%
Actual composition used
RP 2000 EE/Combined
Interest-bearing liquidity account
Projected unit credit
64
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2009
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB) —CONTINUED
Supplemental Death Benefits Plan:
Program Description
The City also participates in the cost sharing multiple -employer defined benefit group -term life
insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the
Supplemental Death Benefits Fund (SDBF). The city elected, by ordinance, to provide group -
term life insurance coverage to both current and retired employees. The city may terminate
coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump -sum payment approximately equal to the
employee's annual salary (calculated based on the employee's actual earnings, for the 12 -month
period preceding the month of death). Retired employees are insured for $7,500 and this
coverage is reported as an "other postemployment benefit" or (OPEB).
Contributions and Funding Policy
The city contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The
funding policy for the SDBF program is to assure that adequate resources are available to meet
all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life
insurance during employee's entire careers.
The city's contributions to the TMRS SDBF for retiree's for the years ended 2009, 2008 and 2007
were $563, $566, and $495 which equals the required contributions (ARC) each year.
NOTE 12. COMMITMENTS AND CONTINGENT LIABILITIES
Federal Grants The City participates in a number of State and Federal 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, it 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 several economic development agreements whereby it
has agreed to pay a grant(s) to a developer and/or business in return for the design, construction,
operating and/or managing of the business within the City of Allen. All grants are performance based
and do not constitute a liability on the City's financial records.
NOTE 13. PRIOR PERIOD ADJUSTMENT
During fiscal year 2009, it was determined that the City had not recorded sufficient depreciation on
capital assets due to an incorrect in-service date being inputted in the depreciation system during the
year or implementation of GASB 34. As a result a prior period adjustment in the amount of
$11,985,861 for the governmental activities and $3,078,428 for the business type activities was
recorded to show the affect of depreciation that should have been taken in prior pedods.
65
aEgpEGT
kI wr
R,
ctry OF PIIEN
REQUIRED SUPPLEMENTARY
INFORMATION
* �Esp ECT # I NTFC I
R
CITY OF
CITY OF ALLEN, TEXAS EXHIBIT A-1
SCHEDULE OF TMRS FUNDING PROGRESS AND CONTRIBUTIONS
AND SCHEDULE OF OPEB FUNDING PROGRESS AND CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30.2009
Required Supplementary Information
Schedule of Other Post Employment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
UAAL as
Actuarial a % of
Valuation Value of Funded Covered Covered
Date Assets AAL" UAAL" Ratio Payroll Payroll
09/30/06 N/A N/A N/A
09/30/07 N/A N/A N/A
09/30/08 N/A $534,259 $534,259 0% $31,392,512 1.7%
'Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
Required Supplementary Information
Schedule
of Texas Municipal Retirement System
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
UAAL as a
Actuarial
% of
Valuation
Value of
Funded
Covered
Covered
Dale
Assets
AAL" Ratio UAAL"
Payroll
Payroll
12/31/06
$39,700,687
$47,412,499 83.7% $7,711,812
$25,875,248
29.8%
12/31/07
$44,996,760
$65,013,172 69.2% $20,016,412
$27,986,779
71.5%
12/31/08
$49,860,343
$72,366,502 68.9% $22,506,159
$31,392,512
71.7%
Required Supplementary Information
Schedule of Other Post Employment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
UAAL as
Actuarial a % of
Valuation Value of Funded Covered Covered
Date Assets AAL" UAAL" Ratio Payroll Payroll
09/30/06 N/A N/A N/A
09/30/07 N/A N/A N/A
09/30/08 N/A $534,259 $534,259 0% $31,392,512 1.7%
'Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
CITY OF ALLEN, TEXAS
4,009,342
4,012,942
3,682,842
EXHIBIT A-2
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES
(870,873)
(1,156,106)
AND CHANGES IN FUND BALANCES — BUDGET AND
ACTUAL
Capital lease obligations
-
FOR THE YEAR ENDED SEPTEMBER 30, 2009
35,069
35,069
Sale of capital assets
71,718
71,718
Total other financing sources (uses)
3,136,469
2,856,836
(74,477)
VARIANCE WITH
NET CHANGE IN FUND BALANCE
BUDGETED AMOUNTS
4,862
FINAL BUDGET -
28,224
FUND BALANCES, BEGINNING OF YEAR
13,831,447
13,831,447
POSITIVE
ORIGINAL
FINAL
ACTUAL
(NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest
$ 29,943,621
$ 29,882,809
$ 29,828,073
$ (54,736)
Franchise taxes
5,849,411
5,672,945
5,448,977
(223,968)
Municipal sales tax
12,207,748
11,401,529
10,879,111
(522,418)
Licenses, permits and fees
1,424,250
1,075,100
1,292,312
217,212
Charge for services
1,423,567
1,482,375
1,591,604
109,229
Court fines
1,868,300
1,875,000
1,817,068
(57,932)
Gifts and wntributions
11,500
19,636
356,798
337,162
Investment earnings
800,000
500,000
408,070
(91,930)
Miscellaneous
210,670
252,781
301,553
48,772
Total revenues
53,739,067
52,162,175
51,923,566
(238,609)
EXPENDITURES
Current:
General government
15,250,277
14,264,007
11,915,266
2,348,741
Public safety
24,149,767
23,883,967
23,862,504
221,463
Public works
3,835,945
3,736,728
3,499,107
237,621
Culture and recreation
11,125,822
10,816,056
10,454,422
361,634
Community development
2,476,866
2,313,391
2,284,704
28,687
Total expenditures
66,838,677
55,014,149
51,816,003
3,198,146
Excess (deficiency) of revenues
over expenditures
(3,099,610)
(2,851,974)
107,563
2,959,537
OTHER FINANCING SOURCES (USES)
Transfers from other funds
4,009,342
4,012,942
3,682,842
(330,100)
Transfers to other funds
(870,873)
(1,156,106)
(3,864,106)
(2,708,000)
Capital lease obligations
-
-
35,069
35,069
Sale of capital assets
71,718
71,718
Total other financing sources (uses)
3,136,469
2,856,836
(74,477)
(2,931,313)
NET CHANGE IN FUND BALANCE
38,859
4,862
33,086
28,224
FUND BALANCES, BEGINNING OF YEAR
13,831,447
13,831,447
13,831,447
FUND BALANCES, END OF YEAR
$ 13,870,306
$ 13,836,309
$ 13,864,533
$ 28,224
67
CITY OF ALLEN, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2009
BUDGETARY INFORMATION
The City Council adheres to the following procedures in establishing the budgets re0ected in the
financial statements:
1. Each year the City Manager is required to submit to the City Council a proposed budget for
the fiscal year beginning on the following October 1. The operating budget includes
proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to 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 accounting principles generally accepted in the United States of America.
Formal budgetary integration is not employed for proprietary funds. However, the City does
adopt an annual budget for those funds for managerial control.
5. The City Manager is authorized to adjust budgeted amounts; however, such revisions may
not result in total expenditures (appropriations) in excess of budgeted expenditures without
approval of the City Council. Therefore, the legal level of budgetary control is total budgeted
expenditures.
6. Formal budgetary integration is not employed for Special Revenue Funds, Proprietary Funds
or Capital Projects Funds. However, the City does adopt an annual budget for those funds
for managerial control.
7. Budgetary data for the Special Revenue Funds and Capital Projects Funds has not been
presented in the accompanying basic financial statements as such funds are budgeted over
the life of the respective grant or project and not on an annual basis. Budgetary information
for the Proprietary Funds has not been presented since reporting on such budgets is not
legally required.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual —
General Fund presents a comparison of budgetary data to actual results. The General Fund
utilizes the same basis of accounting for both budgetary purposes and actual results.
01
SpecT #
} C�rY OF PIbEN
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
ESVECr
*a
'N rfG
a,
r`
+ Ctrr OF At-Uo-%%
MAJOR GOVERNMENTAL FUNDS
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.
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for and the payment of
general obligation bonds, certificate of obligation bonds, and interest from governmental resources.
MAJOR 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. The following
Capital Projects Funds are classified as major funds:
General Capital Projects Fund — To account for the acquisition and/or construction of capital
facilities and infrastructure, except those financed by proprietary and trust funds and not accounted
for by the other capital project funds. Proceeds from nonrecurring revenue sources are allocated to
this fund.
General Obligation Bond Fund — To account for bond proceeds used for financing, acquisitions,
and construction of improvements to City facilities and infrastructure not accounted for by other bond
funds. Proceeds from the sale of general obligation bonds provide financing for this fund.
M,
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERALFUND
YEAR ENDED SEPTEMBER 30, 2009 AND 2008
ASSETS
Cash and cash equivalents
Investments
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $91,361 in 2009 and $153,040 in 2008)
Sales taxes
Accrued interest
Other
Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
Accrued liabilities
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES
Reserved for encumbrances
Reserved for prepaid items
Unreserved, undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCE
70
EXHIBIT B-1
2009 2008
$ 385,368 $
191,943
14,208,364
14,275,913
112,753
171,074
1,878,457
1,835,784
70,433
125,784
1,512,765
1,518,246
941
1,126
$ 18,169,081 $
18,119,770
$ 2,123,586 $
2,198,805
2,068,209
1,918,444
112,753
171,074
4,304,548
4,288,323
36,509
51,904
941
1,126
13,827,083
13,778,417
13,864,533
13,831,447
$ 18,169,081 $
18,119,770
CITY OF ALLEN, TEXAS EXHIBIT B-2
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEARS ENDED SEPTEMBER 30. 2009 AND 2008
OTHER FINANCING SOURCES AND (USES)
Transfers from other funds
2009
2008
REVENUES
(3,864,106)
(2,433,919)
Ad valorem taxes, penalties and interest
$ 29,828,073
$ 28,616,988
Franchise taxes
5,448,977
5,458,370
Municipal sales tax
10,879,111
9,940,618
Licenses, permits and fees
1,292,312
1,832,689
Charge for services
1,591,604
1,557,929
Court fines
1,817,068
1,713,351
Gifts and contributions
356,798
278,357
Investment earnings
408,070
751,511
Miscellaneous
301,553
198,072
Total revenues
51,923,566
50,347,885
EXPENDITURES
Current:
General government
11,915,266
11,864,246
Public safety
23,662,504
22,928,597
Public works
3,499,107
3,478,586
Culture and recreation
10,454,422
10,378,193
Community development
2,284,704
2,254,889
Total expenditures
51,816,003
50,904,511
Excess (deficiency) of revenues over expenditures
107,563
(556,626)
OTHER FINANCING SOURCES AND (USES)
Transfers from other funds
3,682,842
3,243,426
Transfers to other funds
(3,864,106)
(2,433,919)
Capital lease obligations
35,069
153,455
Sale of capital assets
71,718
51,868
Total other financing sources (uses)
(74,477)
1,014,830
NET CHANGE IN FUND BALANCES
33,086
458,204
FUND BALANCE, BEGINNING OF YEAR
13,831,447
13,373,243
FUND BALANCE, END OF YEAR
$ 13,864,533
$ 13,831,447
71
CITY OF ALLEN, TEXAS EXHIBIT B3
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2009 AND 2008
2009 2008
ASSETS
Cash and cash equivalents
$ 787,587 $ 1,674,540
Investments
850,019 -
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $66,258 in 2009 and $88,733 in 2008)
37,464 53,294
Accrued interest receivable
3,103 -
Total assets
$ 1,678,173 $ 1,727,834
LIABILITIES AND FUND BALANCES
LIABILITIES
Interest payable $ 61,902 $ 46,628
Deferred revenue 37,464 53,294
Total liabilities 99,366 99,922
FUND BALANCE
Reserved for debt service 1,578,807 1,627,912
TOTAL LIABILITIES AND FUND BALANCE $ 1,678,173 $ 1,727,834
72
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
REVENUES
Ad valorem taxes
Investment earnings
Total revenues
EXPENDITURES
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
73
EXHIBIT B-4
2009 2008
$ 9,407,830 $ 8,838,673
52,164 150,821
9,459,994 8,989,494
5,200,000 4,775,000
4,309,099 3,986,567
9,509,099 8,761,567
(49,105) 227,927
(49,105) 227,927
1,627,912 1,399,985
$ 1,578,807 $ 1,627,912
CITY OF ALLEN, TEXAS
EXHIBIT B-5
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
VARIANCE WITH
BUDGETED AMOUNTS
FINAL BUDGET
POSITIVE
ORIGINAL
FINAL
ACTUAL
(NEGATIVE)
REVENUES
Ad valorem taxes
$ 9,348,425
$ 9,418,738
$ 9,407,830
$ (10,908)
Investment earnings
150,000
91,000
52,164
(38,836)
Total revenues
9,498,425
9,509,738
9,459,994
(49,744)
EXPENDITURES
Principal retirement
5,200,000
5,200,000
5,200,000
-
Interest and fiscal charges
4,361,097
4,358,096
4,309,099
48,997
Total expenditures
9,561,097
9,558,096
9,509,099
48,997
NET CHANGE IN FUND BALANCES
(62,672)
(48,358)
(49,105)
(747)
FUND BALANCE, BEGINNING OF YEAR
1,627,912
1,627,912
1,627,912
FUND BALANCE, END OF YEAR
$ 1,565,240
$ 1,579,554
$ 1,578,807
$ (747)
74
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL CAPITAL PROJECTS FUND
SEPTEMBER 30, 2009 AND 2008
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Special assessments receivable
Other receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Accrued liabilities
Total liabilities
FUND BALANCES
Reserved for encumbrances
Unreserved, designated
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
75
EXHIBIT B$
2009 2008
$ 7,511,192 $
5,602,769
2,200,034
4,238,937
9,561
32,250
187,557
187,557
13,229,711
$ 23,138,055 $
10,061,513
$ 7,222,409 $ 853,431
850,927 29,783
709,777 761,532
8,783,113 1,644,746
2,581,429 481,802
11,773,513 7,934,965
14,354,942 8,416,767
$ 23,138,055 $ 10,061,513
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL CAPITAL PROJECTS FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
REVENUES
Charges for services
Intergovernmental
Investment earnings
Gifts and contributions
Miscellaneous
Total revenues
EXPENDITURES
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers from other funds
Transfers to other funds
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
YY7
2009
EXHIBIT B-7
2008
$ 332,174 $ 2,611,524
21,433,248 1,559,343
155,116 254,464
22,000,000 46,128
535,671 1,094,483
44,456,209 5,565,942
664,737 3,244,163
38,902,932 3,479,714
39,567,669 6,723,877
4,888,540 (1,157,935)
1,725,070 1,764,397
(675,435) (20,000)
1,049,635 1,744,397
5,938,175 586,462
8,416,767 7,830,305
$ 14,354,942 $ 8,416,767
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL OBLIGATION BOND FUND
SEPTEMBER 30, 2009 AND 2008
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Total liabilities
FUND BALANCES
Reserved for encumbrances
Unreserved, undesignated
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
77
EXHIBIT B-8
2009 2008
$ 2,580,758 $ 10,808,303
27,753,813 11,233,278
121,310 96,558
$ 30,455,881 $ 22,138,139
$ 378,941 $ 271,250
189,518 11,055
568,459 282,305
3,485,095 2,946,042
26,402,327 18,909,792
29,887,422 21,855,834
$ 30,455,881 $ 22,138,139
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL OBLIGATION BOND FUND
SEPTEMBER 30, 2009 AND 2008
REVENUES
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
General government
Culture and recreation
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES
Transfers to other funds
Premium on debt issuance
Issuance of debt
Total other financing sources
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
YZ3
EXHIBIT B-9
2009 2008
$ 534,391 $ 646,628
17,024 12,923
551,415 659,551
203,324 333,689
7,604 -
7,648,538 1,766,037
7,859,466 2,099,726
(7,308,051) (1,440,175)
(250,233) (174,617)
189,872 50,904
15,400,000 10,185, 000
15,339,639 10,061,287
8,031,588 8,621,112
21,855,834 13,234,722
$ 29,887,422 $ 21,855,834
NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources (other than
expendable trust or capital projects) that are legally restricted to expenditures for speck purposes. Non -
major Special Revenue Funds are as follows:
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.
Grants and Special Revenue Fund — To account for monies received from other governmental
agencies that have restricted legal requirements and multi-year budgets.
Parks and Recreation Fund — To account for the provision of recreation services to the residents of
the City, account for the operations and maintenance of the City's leisure and competitive swimming
pools and to account for funds received and expended for the City of Allen swim team activities.
Park Dedication Fund — To account for funds received and expended for the acquisition of additional
park land and for the development of neighborhood parks.
Tax Increment Financing Fund — To account for the tracking of property tax and sales tax revenue
and associated expenses for the City's Tax Increment Financing agreements.
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.
79
CITY OF ALLEN, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
$ -
$ 39,957
$ 11,756
GRANTS
32,557
Accruetl liabilities
-
HOTEL
7,854
AND
PARKS
Deferred! revenue
ANTENNA
OCCUPANCY
ASSET
SPECIAL
AND
TOTAL LIABILITIES
RENTAL
TM
FORFEITURE
REVENUE
RECREATION
ASSETS
Cash and cash equivalents
$ 429,940
$ 700,629
$ 111,272
369,083
$ 683,158
Investments
100,003
550,019
-
-
150,005
Accounts receivaGe
530181
53,391
-
230,426
20,016
Accmed interest
238
1,307
$ 111,272
$ 599,509 $
356
TOTAL ASSETS
$ 530,181
$ 1,305,346
$ 111,272
$ 599509
$ 853,535
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
$ -
$ 39,957
$ 11,756
40,831 $
32,557
Accruetl liabilities
-
3,848
7,854
23,701
45,683
Deferred! revenue
79,361
13)54
TOTAL LIABILITIES
43,805
19,610
143,893
91,994
FUND BALANCES
Reserved for encumbrances
-
-
17,283
3,171
-
unreserved
530,181
1,261,541
74,379
452,445
761,541
TOTAL FUND BALANCES
530181
1,261,541
91,662
455,616
761,541
TOTAL LIABILITIES AND FUND BALANCES
$ 530,181
$ 1,305,346
$ 111,272
$ 599,509 $
853,535
EXHIBIT C-1
$ 740,818 $ 225,455 $ 3,573,419 $ 8,833,774
927,738 - - 1,727,763
- 29,532 - 333,365
2,205 4,106
$ 1,670,759 $ 254,887 $ 3,573,419 $ 8,899.008
$ 2,794 $
TOTAL
TAX
NON -MAJOR
PARK INCREMENT FACILITIES
GOVERNMENTAL
DEDICATION FINANCING AGREEMENT
FUNDS
$ 740,818 $ 225,455 $ 3,573,419 $ 8,833,774
927,738 - - 1,727,763
- 29,532 - 333,365
2,205 4,106
$ 1,670,759 $ 254,887 $ 3,573,419 $ 8,899.008
$ 2,794 $
40 $
8,673 $
138,808
-
-
122,631
203,717
0.115
2,794
40
131,304
433,440
58,837
-
28,379
103,670
1,811,128
251,947
3,415,736
8,361,898
1,667,965
254,947
3,442,115
8,465,568
$ 1,670.]59 $
254,98] $
3,573,418 $
8,899,008
81
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
[:y.
GRANTS
HOTEL
AND
PARKS
ANTENNA
OCCUPANCY
ASSET
SPECIAL
AND
RENTAL
TM
FORFEITURE
REVENUE
RECREATION
REVENUES
Ad valorem taxes, penalties and interest
$ -
$ -
$ -
$ -
$
Franchise Wes
-
-
-
84,596
-
Municipalsalestax
-
-
-
-
Licenses, permits, and fees
446,226
-
-
-
-
Coodfines
-
-
-
179,111
-
Hotellmoteltaxes
-
597,512
-
-
Recreation fees
-
-
-
-
2,309,331
Gifts and contributions
-
-
127,062
Intergovernmental
-
-
-
846,321
-
Immstmenteamings
5,971
17,074
212
2,909
13,482
Miscellaneous
175,520
93,888
Total revenues
452,197
614,586
175,732
1,112,937
2,543,543
EXPENDITURES
General government
-
-
-
233,153
public safety
-
-
54,393
369,978
-
Publicworks
-
-
-
115,198
-
Culture and recreaGon
115,3
56
327,041
-
52,298
2,458,073
Community development
-
-
-
378,449
Capital outlay
44,391
197,933
Total expenditures
115,563
327,041
98)84
1,347,009
2,458,073
Excess (deficiency) of revenues over
expenditures
336,634
287,545
78,948
(23,072)
85,470
OTHER FINANCING SOURCES (USES)
Transfers from other funds
-
-
-
291,823
274,000
Transfers to other funds
(204,DDD)
(25,000)
-
-
(299,290)
Sale of capdal assets
5,853
Total other financln9 sources (uses)
(204,000)
(25,000)
5,853
291,823
(25,290)
NET CHANGE IN FUND BALANCES
132,634
262,545
82,801
57,751
60,180
FUND BALANCES, BEGINNING OF YEAR
397,547
998,996
8,861
397,865
701,381
FUND BALANCES, END OF YEAR
$ 530,181
$ 1,261,541
$ 91,662
$ 455,616
$ 761,541
[:y.
CAPITAL PROJECTS
EXHIBIT C-2
565,823
(528,290)
5.853
TOTAL
(54,696)
TAX
62,769
NON -MAJOR
PARK
INCREMENT
FACILITIES
GOVERNMENTAL
DEDICATION
FINANCING
AGREEMENT
FUNDS
$ -
$ 288,635
$ -
$ 288,635
84,596
-
261,226
-
261,226
150,285
-
-
596,511
'
-
-
179,111
'
-
-
597,512
-
-
-
2,309,331
-
-
1,418,303
1,545,365
-
79,036
-
925,357
36,950
2,304
90,061
168,963
269,188
187,235
631,201
1,508364
7,225,795
-
589,062
-
802,215
'
-
-
424,371
-
-
-
115,198
7,414
-
-
2,960,389
-
-
-
378,449
234,517
-
1,445,595
1,922,436
241,931
569,062
1,445,595
6,603,058
(54,696)
62,139
62,769
622,737
565,823
(528,290)
5.853
83
43,386
(54,696)
62,139
62,769
666,123
1,7M.661
192,808
3,379,346
7,799, 4
$ 1,667,965 $
254,947 $
3A42,116$
8,465,568
83
ESpECT
Circ OF p`y�N
MAJOR 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.
Drainage Fund - To account for the provision of developing and maintaining proper drainage services to
the residents of the City.
Golf Course Fund - To account for activities associated with the operations of the Chase Oaks Golf
Course purchased by the City in October 2004.
0
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
WATER AND SEWER ENTERPRISE FUND
SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-11
1009
MIS
ASSETS
CURRENTASSETS
Cash and cash equivalents
$ 7,123,912
9,797,519
Investments
13,117.892
8,982,556
Receivables, net of allowance for uncolleNbles-
Accounts
4,087,652
4,218,524
Accrued interest
53,459
69,512
Inventories
228,342
193,378
Restricted cash and cash equivalents
1,980,741
2,194,332
Total current assets
26,591,998
25,455,821
NONCURRENT ASSETS
CAPITAL ASSETS
Land
4,072,882
4,0$290
Towers, tanks, and pump stations
138,835,406
135,540,519
Vehicles
91
716,292
Machinery and equipment
3,567,049
3,289,907
Fumdure and fixtures
11,114
11,114
Construction in progress
11,103,675
11,300770
Total capital assets
158,589,877
154,908,898
Less: accumulated depreciation
(52,250652)
(47,965,221)
Capital assets, net of accumulated depredation
108.33%225
106,941,677
DEFERRED CHARGES
Bond issuance costs, net of amodrsation
169,202
141,954
Total noncurrent assets
106,508,427
107,083,831
TOTAL ASSETS
133,100,425
132,539,452
LIABILITES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
1,10D,306
1,310,087
Accrued liabilities
n4,4D5
216,391
Payable from restricted assets:
Revenue bonds payable - currant
1,140,000
1,035,000
Accrued interest payable
188,220
236,469
A=ued compensated absences - current
227,838
181,795
Customer deposits payable
1,409 847
1,376,153
Total current liabilities
4,288,616
L355,875
NONCURRENT LIABILITIES
Revenue bons payable
12,777,258
13,928,976
Accrued compensated absences
8,009
49,634
Total noncurrent liabilities
12,785,265
13,978,810
TOTAL LIABILITIES
17,073,881
18,334,485
NETASSETS
Invested in capital assets, net of related debt
92,421,969
79,820,597
Restricted
Restricted for revenue bond principal and interest
654,521
922,883
Unrestncted
22,350.054
33,481,507
TOTAL NET ASSETS
$ 116,026,544
$ 114,204,967
85
CITY OF ALLEN, TEXAS
EXHIBIT D-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
WATER AND SEWER ENTERPRISE FUND
SEPTEMBER 30, 2009 AND 2008
2009
2008
OPERATING REVENUES
Water sales
$ 14,690,231
$ 14,458,505
Sewer charges
9,068,330
8,260,250
Connection fees
183,765
275,350
Service charges
412,370
1,195,952
Miscellaneous
287,338
399,383
Total operating revenues
24,642,034
24,589,440
OPERATING EXPENSES
Personnel services
3,406,253
3,256,682
Contractual and other services
13,035,101
11,642,961
Maintenance
235,356
219,849
Supplies
157,364
122,942
Depreciation
4,573,275
4,529,586
Other
368,521
968,558
Total operating expenses
21,775,870
20,740,578
OPERATING INCOME
2,866,164
3,848,862
NON-OPERATING REVENUES (EXPENSES)
Interest income
433,779
669,215
Interest expense
(593,774)
(781,420)
Gain on disposal of capital assets
667,624
Total non-operating expense
(159,995)
555,419
INCOME BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
2,706,169
4,404,281
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees
1,255,969
2,483,886
Capital contributions
879,916
12,077,569
Transfers from other funds
24,126
160,477
Transfers to other funds
(3,044,603)
(2,798,116)
Total capital contributions and transfers
(884,592)
11,923,816
CHANGE IN NET ASSETS
1,821,577
16,328,097
NET ASSETS, BEGINNING OF YEAR (AS PREVIOUSLY REPORTED)
117,283,395
100,955,298
PRIOR PERIOD ADJUSTMENT
(3,078,428)
(3,078,428)
NET ASSETS, BEGINNING OF YEAR (AS RESTATED)
114,204,967
97,876,870
NET ASSETS, END OF YEAR
$ 116,026,544
$ 114,204,967
SId
CITY OF ALLEN, TEXAS
EXHIBIT D3
COMPARATIVE STATEMENTS OF CASH FLOWS
WATER AND SEWER ENTERPRISE FUNDS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008
2009
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash remimtl horn customers
'In
3
24,712,908S
24,494,264
Cash paidemployees for services
(3.401,83)
(3,213,430)
Cash paid for goods and services
(13,988.188)
(13,438,050)
Net cash provided by opending activities
7,404,83
7,811,960
CASH FLOWS FROM NONtAPITAL FINANCING ACTIVITIES
Tamales from other funds
24,128.
160,477
Tmnders to other funds
13,040.8031
12,798,116)
NO cash used in norcaphal financing activities
(3,020,477)
(2,831,639)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Pdnclpai paid on revenue bond maturities
(1,03,000)
(1,575,000)
Debt issuance costs paid Win refunding issuance
(72.141)
-
Interest and fees Will on long-term debt
(&4,023)
(1)00,300)
"uiaition and concoction of cepiial assets
(3,090.907)
(2,558,262)
Contributions from developers
1,255,969
2,483.008
Net cash used In capital and related financing aOly
(3586102)
(2,4476T6)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment incomes
(13,863,589)
112,403,8881
Proceeds from the sale and maturities of investment sources
9,730,289
9,810,000
Ineresl on investments
147,796
603,811
Net cash used In Investing activities
(3,605.504)
(1,910,055)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(2,887,198)
818.590
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
11,991,851
11,145.253
CASH AND CASH EQUIVALENTS, END OF YEAR
$
9,1041853
$ 11,991,651
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVOIES
Net Operating income
$
2,866,164
$ 3,848.882
Adjustments to recondle net opereting income
to net cash provided by operating activities:
Depreciation and amortbabon expense
4,600,418
4,539,266
Change In assets and kabudi6es
(Increased decrease in accounts removable
13.872
(95,176)
(Increase) in Inventories
(341984)
pHS97)
Decrease In accounts payable
(209,761)
(20.501)
Increase (Decrease) in account liabilities
8,014
(292,940)
Increase In compensated absences
4,418
43,244
Increase in utility deposits
MAIN
67,190
Total adjustments
4,53,721
3,993,106
Net cash provided by operating activities
$
7,404,805
$ 7,841,968
NON-CASH INVESTING ACTIVITIES
Change in the fair value of Investments
$
2,03
S (15,707)
NONCASH FINANCING ACTIVITIES
Contributions of capital assets ham developers
$
$79,916
$ 12,077,569
RefuMing of revenue bonds
Payment In escrew agent
$
5,826,099
$ -
Bondsrefonded
(5,695.000)
-
Loss on retuning
(131599)
$
E
87
CITY OF ALLEN, TEXAS EXHIBIT D-4
COMPARATIVE STATEMENTS OF NET ASSETS
SOLID WASTE ENTERPRISE FUND
SEPTEMBER 30.2009 AND 2008
8Y:
2009
2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 503,505
$ 1,232,645
Investments
2,200,007
1,250,000
Receivables, net of allowance for uncollectibles:
Accounts
264,490
259,673
Other
113,396
111,207
Total current assets
3,081,398
2,853,525
NONCURRENT ASSETS
CAPITAL ASSETS
Vehicles
31,899
44,448
Machinery and equipment
9,819
9,819
Total capital assets
41,718
54,267
Less: accumulated depreciation
(39,288)
(51,298)
Capital assets, net of accumulated depreciation
2,430
2,969
Total noncurrent assets
2,430
2,969
TOTAL ASSETS
3,083,828
2,856,494
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
172,762
247,351
Accrued compensated absences -current
30,726
7,603
Accrued liabilities
30,232
27,567
Total current liabilities
233,720
282,521
NONCURRENT LIABILITIES
Accrued compensated absences
1,734
20,994
Total noncurrent liabilities
1,734
20,994
TOTAL LIABILITIES
235,454
303,515
NET ASSETS
Invested in capital assets, net of related debt
2,430
2,969
Unrestricted
2,645,944
2,550,010
TOTAL NET ASSETS
$ 2,848,374
$ 2,552,979
8Y:
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-5
2009
2008
OPERATING REVENUES
Garbage collections
$ 5,488,800
$ 4,931,558
Other
52,575
44,036
Total operating revenues
5,541,375
4,975,594
OPERATING EXPENSES
Personnel services
374,129
344,170
Contractual and other services
4,416,854
3,988,631
Supplies
9,399
16,330
Depreciation
539
614
Other
92,254
83,815
Total operating expenses
4,893,175
4,433,560
OPERATING INCOME
648,200
542,034
NON-OPERATING REVENUES
Interest income
45,957
69,118
INCOME BEFORE TRANSFERS
694,157
611,152
TRANSFERS
Transfers to other funds
(398,762)
(393,353)
Total transfers
(398,762)
(393,353)
CHANGE IN NET ASSETS
295,395
217,799
NET ASSETS, BEGINNING OF YEAR
2,552,979
2,335,180
NET ASSETS, END OF YEAR
$ 2,848,374
$ 2,552,979
F
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
EXHIBIT 04
2009
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 5,534,369
$ 5,159,898
Cash paid to employees for services
(370,266)
(337,752)
Cash paid for goods and services
(4,590,431)
(4,010,775)
Net cash provided by operating activities
573,672
811,371
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers to other funds
(398,762)
(393,353)
Net cash used in non -capital financing activities
(398,762)
(393,353)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
(950,007)
(1,250,000)
Interest on investments
45,957
69,118
Net cash provided by (used in) investing activities
(904,050)
(1,180,882)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(729,140)
(762,864)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,232,645
1,995,509
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 503,505
$ 1,232,645
RECONCILIATION OF OPERATING (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating
$ 648,200
$ 542,034
Adjustments to reconcile net operating
to net cash provided by operating activities:
Depreciation
539
616
Change in assets and liabilities:
Increase in accounts receivable
(4,817)
(26,054)
(Increase) decrease in other receivables
(2,189)
210,358
Increase (decrease) in accounts payable
(74,589)
71,879
Increase in accrued liabilities
2,665
6,120
Increase in accrued compensated absences
3,863
6,418
Total adjustments
(74,528)
269,337
Net cash provided by operating activities
$ 573,672
$ 811,371
m
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
DRAINAGE ENTERPRISE FUND
SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-7
2009
2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 270,588
$ 1,096,169
Investments
11000,000
-
Accounts receivable
64,199
53,243
Total current assets
1,334,787
1,149,412
NONCURRENT ASSETS
CAPITAL ASSETS
Other improvements
496,132
496,132
Vehicles
118,898
102,079
Machinery and equipment
403,597
360,734
Total capital assets
1,018,627
958,945
Less: accumulated depreciation
(466,589)
(424,697)
Capital assets, net of accumulated depreciation
552,038
534,248
Total noncurrent assets
552,038
534,248
TOTAL ASSETS
1,886,825
1,683,660
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
26,006
22,663
Accrued compensated absences
17,867
13,242
Accrued liabilities
13,818
10,677
Total current liabilities
57,691
46,582
NONCURRENT LIABILITIES
Accrued compensated absences
1,323
4,211
Total noncurrent liabilities
1,323
4,211
TOTAL LIABILITIES
59,014
50,793
NET ASSETS
Invested in capital assets, net of related debt
552,038
534,248
Unrestricted
1,275,773
1,098,619
TOTAL NET ASSETS
$ 1,827,811
$ 1,632,867
>SI
CITY OF ALLEN, TEXAS EXHIBIT D-8
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
OPERATING REVENUES
Drainage fees
Service charges
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES
Interest income
INCOME BEFORE TRANSFERS
TRANSFERS
Transfers to other funds
Total operating transfers
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
92
2009 2008
$ 1,094,223 $ 949,950
22,658 66,258
1,116,881 1,016,208
292,924 311,994
102,046 98,318
170,484 191,178
14,990 15,385
41,892 37,165
69,844 56,671
692,180 710,711
424,701 305,497
19,412 37,080
444,113 342,577
(249,169) (529,759)
(249,169) (529,759)
194,944 (187,182)
1,632,867 1,820,049
$ 1,827,811 $ 1,632,867
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
DRAINAGE ENTERPRISE FUND
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-9
2009
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 1,105,925
$ 1,016,907
Cash paid to employees for services
(291,187)
(308,763)
Cash paid for goods and services
(350,880)
(359,852)
Net cash provided by operating activities
463,858
348,292
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Aquistion and construction of capital assets
(59,682)
-
Trensfem to other funds
(249,169)
(529,759)
Net cash used in non -capital financing activities
(308,851)
(529,759)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
(1,000,000)
-
Interest on investments
19,412
37,080
Net cash provided by (used in) investing activities
(980,588)
37,080
NET DECREASE IN CASH AND CASH EQUIVALENTS
(825,581)
(144,387)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,096,169
1,240,556
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 270,588
$ 1,096,169
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 424,701
$ 305,497
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation
41,892
37,165
Change in assets and liabilities:
Increase (decrease) in accounts receivable
(10,956)
699
Increasse (decrease) in accounts payable
3,343
(110)
Increase in accrued liabilities
3,141
1,810
Increase in compensated absences
1,737
3,231
Total adjustments
39,157
42,795
Net cash provided by operating activities
$ 463,858
$ 348,292
J9
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
GOLF COURSE ENTERPRISE FUND
SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-10
2009
2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 523,279
$ 607,106
Accounts receivable
8,155
9,247
Prepaid items
11,050
11,050
Total current assets
542,484
627,405
NONCURRENT ASSETS
CAPITAL ASSETS
Furniture and fixtures
10,894
10,894
Machinery and equipment
642,317
438,863
Less: accumulated depreciation
(389,029)
(313,459)
Capital assets, net of accumulated depreciation
264,182
136,298
Total noncurrent assets
264,182
136,298
TOTAL ASSETS
806,666
763,703
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
58,951
70,754
Accrued liabilities
47,035
45,271
Accrued compensated absences
44,638
26,176
Capital leases payable - current
85,862
41,341
Customer deposits payable
14,698
27,331
Total current liabilities
251,184
210,873
NONCURRENT LIABILITIES
Capital leases payable
166,515
78,428
Accrued compensated absences
11,168
17,111
Total noncurrent liabilities
177,683
95,539
TOTAL LIABILITIES
428,867
306,412
NET ASSETS
Invested in capital assets, net of related debt
11,805
16,529
Unrestricted
365,994
440,762
TOTAL NET ASSETS
$ 377,799
$ 457,291
94
CITY OF ALLEN, TEXAS EXHIBIT D-11
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
OPERATING REVENUES
Service charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING LOSS
TRANSFERS
Transfers from other funds
Total transfers
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
W
2009 2008
$ 1,623,377 $ 1,547,902
5,320 6,759
1,628,697 1,554,661
1,119,008 1,063,811
533,455 550,450
241,367 86,253
148,339 149,653
75,570 65,511
47,405 48,689
2,165,144 1,964,367
(536,447) (409,706)
456,955 754,155
456,955 754,155
(79,492) 344,449
457,291 112,842
$ 377,799 $ 457,291
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
GOLF COURSE ENTERPRISE FUND
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008
EXHIBIT D-12
2009
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 1,629,789
$ 1,552,263
Cash paid to employees for services
(1,106,489)
(1,053,249)
Cash paid for goods and services
(993,238)
(818,319)
Net cash used in operating activities
(469,938)
(319,305)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Operating transfers from other funds
456,955
754,155
Net cash provided by non -capital financing activities
456,955
754,155
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
(203,454)
(129,355)
Capital lease down payment
132,608
68,566
Net cash used in capital and related financing activities
(70,846)
(60,789)
NET INCREASE IN CASH AND CASH EQUIVALENTS
(83,829)
374,061
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
607,108
233,047
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 523,279
$ 607,108
RECONCILIATION OF OPERATING LOSS TO NET CASH
USED IN OPERATING ACTIVITIES
Net operating loss
$ (536,447)
$ (409,706)
Adjustments to reconcile net operating lass
to net cash used in operating activities
Depreciation
75,570
65,511
Change In assets and liabilities:
(Increase) decrease in accounts receivable
1,092
(2,398)
Increase (decrease) in accounts payable
(11,803)
3,129
Increase in accrued liabilities
1,764
12,754
Increase (decrease) in customer deposits
(12,633)
843
Increase in compensated absences
12,519
10,562
Total adjustments
68,509
90,401
Net cash used in operating activities
$ 469,938
$ (319,305)
BE
a0,gPEcv
'NTEO
R,
� ry.
} C'TY OF
m
x
O
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for financing of services provided by one department to
other departments of the City on a cost -reimbursement basis.
Replacement Fund - accounts for the costs associated with the acquisition of vehicles, machinery, and
equipment through the rental of such items to other departments.
Risk Management Fund — accounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their covered
dependents.
97
CITY OF ALLEN, TEXAS
EXHIBIT E-1
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30,2009
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 20, 2008)
RISK TOTALS
REPLACEMENT MANAGEMENT
FUND FUND 2009 2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 4,006,846
$ 127,174
$ 4,134,020
$ 5,533,958
Investments
3,247,488
4,134,083
7,381,571
4,215,246
Accounts receivable
-
34
34
-
Accrued interest receivable
14,216
15,421
29,637
23,947
Total current assets
7,268,550
4,276,712
11,545,262
9,773,151
CAPITAL ASSETS
Machinery and equipment
1,420,572
-
1,420,572
1,309,665
Vehicles
6,953,950
-
6,953,950
4,621,191
Construction in progress
514,162
-
514,162
-
Accumulated depreciation
(3,754,576)
(3,754,576)
(3,178,650)
Capital assets,
net of accumulated depreciation
5,134,108
5,134,108
2,752,206
TOTAL ASSETS
12,402,658
4,276,712
16,679,370
12,525,357
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
368,992
101,380
470,372
66,682
Incurred but not reported claims
599,371
599,371
629,487
TOTAL LIABILITIES
368,992
700,751
1,069,743
696,169
NET ASSETS
Invested in capdal assets,
net of related debt
5,134,108
-
5,134,108
2,752,206
Unresincted
6,899,558
3,575,961
10,475,519
9,076,982
TOTAL NET ASSETS
$ 12,033,666
$ 3,575,961
=L15,09,627
$ 11,829,188
98
CITY OF ALLEN, TEXAS EXHIBIT E-2
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(WITH. COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER, 30, 2008)
OPERATING REVENUES
Charges for services
Other income
Total operating revenues
OPERATING EXPENSES
Personal services
Contractual services
Depreciation
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES
Investment earnings
Gain on disposal of capital assets
Total non-operating revenues
INCOME BEFORE TRANSFERS
TRANSFERS
RISK TOTALS
REPLACEMENT MANAGEMENT
FUND FUND 2009 2006
$ 1,325,659 $ 6,833,465 $ 6,159,124 $ 8,404,946
192,100 192,100 144,026
1,325,659 7,025,565 8,351,224 8,548,972
166,277 166,277 163,918
- 6,282,756 6,282,756 6,412,182
973,563 973,563 804,994
973,563 6,449,033 7,422,596 7,381,094
352,096 576,532
141,847
98,362
55,820
Total transfers
197,667
98,362
549,763
674,894
Transfers from other funds
2,323,025
232,757
Total transfers
2,323,025
232,757
CHANGE IN NET ASSETS
2,872,788
907,651
NET ASSETS, BEGINNING OF YEAR
9,160,878
2,668,310
NET ASSETS, END OF YEAR
$ 12,033,666
$ 3,575,961
F$7
928,628 1,167,878
240,209
277,915
55,820
4,545
296,029
282,460
1,224,657
1,450,338
2,555,782
210,338
2,555,782
210,338
3,780,439
1,660,676
11,829,188 10,168,512
$ 15,609,627 $ 11,829,188
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other had.
Cash paid to employees for services
Cash pad for goods and services
Cash pail for claims
Net cash provitled by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers from other funds
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets
Prccaeds from sale of capital assets
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVRIES
Purchase of investment securldes
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
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Neteperatingimcome
Adjustments to reconcile opending income
to net cash provided! by operating activities:
Deprecation
Change m assets nal Iiebiffil
Decrease in amounts receivables
Increase (decrease) in accounts payable
Total adjustments
Net cash provided by operating activities
NON-CASH INVESTING ACTIVITIES
Change In the lair value of Investments
EXHIBIT E3
iDL7
RISK
TOTALS
REPLACEMENT
MANAGEMENT
FUND
FUND
2008
2008
$
1,678,147
$ 7,031,558
$8,701
$8,535,2.44
-
(1661
(186,277)
(183,918)
-
(2,830,86.9)
(2,830,669)
(2,917,793)
(3,431,001)
(3,31,001)
(3,538,434)
1,678,147
803,609
2,281,756
1,9151099
2,323,025
232,757
2,555,782
210,338
2,323,025
232,757
2,555.782
210,338
(3,355.465)
-
(3,355,65)
(964,000)
55,820
55,820
13,990
(3,291
(3,2911
(950,010)
-
(3,148,584)
(3,148,5841
(2,185,499)
127,812
81
210,753
282.539
127,812
(3.0135,843)
(2,937,831)
(1,902,960)
8211
(2,229,277)
(1,399,938)
(727,533)
3,177,507
2,3561
51533,958
6,261,491
$
4,006,848
eel
$4,134,020
$5,533,958
$
352,096
$ 578,532
$ 928,628
$ 1,167,878
973,563
-
973,563
804,994
-
5,991
5,991
2.295
352,488
21,086
373,574
(60,068)
11326,051
27,077
1,353,128
747,221
$
1,878,147
$ 603,609
52,281,756
$ 1,915,099
S
17,741
$ -
$ 17.741
E (6.6201
iDL7
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.
101
CITY OF ALLEN, TEXAS EXHIBIT F-1
COMPARATIVE BALANCE SHEETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30. 2009 AND 2008
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
2009
2008
ASSETS
$ 325,750 $
166,797
CURRENT ASSETS
57,781
53,681
Cash and cash equivalents
$ 814,169 $
922,231
Investments
1,376,984
681,250
Sales tax receivable
939,229
917,893
Accounts receivable
2,070
1,772
Accrued interest receivable
7,333
2,543
Prepaid items
6,298
6,298
TOTAL ASSETS
$ 3,146,083 $
2,531,987
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
$ 325,750 $
166,797
Accrued and other liabilities
57,781
53,681
TOTAL LIABILITIES
383,531
220,478
FUND BALANCES
Reserved for encumbrances
-
666,024
Unrestricted
2,762,552
1,645,485
TOTAI FUND BALANCES
2,762,552
2,311,509
TOTAL LIABILITIES AND FUND BALANCES
$ 3,146,083 $
2,531,987
i6➢i
CITY OF ALLEN, TEXAS EXHIBIT F-2
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2009
Total governmental fund balance
$ 2,762,552
Amounts reported for governmental activities in the statement of net assets
are different because:
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements.
258,451
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental
funds balance sheet.
(47,948)
Long-term liabilities, including bonds payable are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
(14,296,369)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and therefore are not reported in the
governmental funds balance sheet.
6,140,769
Net assets of governmental activities
103
$ (5,182,545)
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
REVENUES
Sales and other taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
Economic development
Capital projects:
Economic development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Issuance of revenue bonds
Discount on issuance of debt
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
104
1=3:11;3Y1;&3
2009 2008
$ 5,476,995 $ 4,968,133
45,226 155,829
24,438 89,491
5,546,659
5,213,453
3,336,111
6,699,195
780,475
12,555,693
390,000
600,000
589,030
323,655
5,095,616
20,178,543
451,043
(14,965,090)
-
15,335,000
(53,053)
-
15,281,947
451,043
316,857
2,311,509
1,994,652
$ 2,762,552
$ 2,311,509
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TO THE STATEMENT OF ACTIVITIES
ALLEN ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
EXHIBIT F4
Net change in fund balances - total governmental funds
$ 451,043
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
Items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements.
(16,344)
The proceeds from issuance of long-term debt (e.g. bonds and capital lease obligations)
provides current financial resources to governmental funds($15,335,000), while the
repayment of the principal of long-term debt consumes the current financial resources
of governmental funds ($600,000). Neither transaction, however, has any effect on net assets.
390,000
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds.
1,138
In the governmental fund financial statements, the proceeds from a sale of assets are shown as an
increase in financial resources. However in the statement of activities, the gain or loss is reported (13,209,996)
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds. (166,548)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense. 780,475
Change in net assets of governmental activities
105
$ (11,770232)
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2009 AND 2008
EXHIBIT F-5
2009
2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
2,300,873
$
27,507,524
Investments
7,159,111
4,680,139
Sales tax receivable
939,229
917,893
Accounts receivable
2,070
1,772
Accrued interest receivable
29,830
31,811
TOTAL ASSETS
$
10,431,113
$
33,139,139
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
$
987,999
$
1,224,941
Retainage payable
1,061,859
71,305
TOTAL LIABILITIES
2,049,858
1,296,146
FUND BALANCES
Reserved /or encumbrances
1,013,468
14,520,466
Unreserved
7,367,787
17,322,527
TOTAL FUND BALANCES
8,381,255
31,842,993
TOTAL LIABILITIES AND FUND BALANCES
$
10,431,113
$
33,139,139
HIM
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30,2009
EXHIBIT F4
Total governmental fund balance
$ 8,381,255
Amounts reported for governmental activities in the statement of net assets
are different because:
Costs associated with the issuance of governmental long -tens debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements.
625,443
Interest payable on long -tern debt does not require current financial resources,
and, therefore, is not reported as a liability in the governmental funds
balance sheet.
(168,427)
Long-term liabilities, including bonds payable are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
(37,401,200)
Net assets of governmental activities
$ (28,562,929)
107
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
REVENUES
Sales and other taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
Community development
Capital projects:
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES AND (USES)
Issuance of debt
Discount on debt issuance
Payment to refund bond escrow agent
Total other financing sources
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
M
EXHIBIT F-7
2009 2008
$ 5,476,994 $ 4,968,132
491,878 751,680
18,359
5,987,231
5,719,812
1,158,257
1,542,817
25,339,566
12,017,797
895,000
1,520,000
2,056,146
1,258,062
29,448,969 16,338,676
(23,461,738) (10,618,864)
34,450,000
- (274,111)
(1,586,176)
32,589,713
(23,461,738) 21,970,849
31,842,993 9,872,144
$ 8,381,255 $ 31,842,993
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TO THE STATEMENT OF ACTIVITIES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
EXHIBIT F-8
Net change in fund balances - total governmental funds
$ (23,461,738)
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements.
(51,314)
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds.
2,919
Repayment of the principal on long-term debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net assets.
895,000
Change in net assets of governmental activities $ (22,615,133)
109
��SPQGT
' N r"a
R�
T CI'*r of All Eta
CAPITAL ASSETS
USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
QESpECT
► INT�cG
R�
CIrY OF Al4EN
CITY OF ALLEN, TEXAS
COMPARATIVE SCHEDULES OF CAPITAL ASSETS USED IN
THE OPERATIONS OF GOVERNMENTAL FUNDS — BY SOURCE (a)
SEPTEMBER 30, 2009 AND 2008
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land and land improvements
Buildings
Machinery and equipment
Furniture and fixtures
Vehicles
Books
Infrastructure
Total property and equipment in service
Construction in progress
Total governmental funds capital assets
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS
BY REVENUE SOURCE
General obligation bond proceeds and interest income
Revenue bonds
Contributions
Other governments
General and other fund operations
Special revenue funds
Total governmental funds capital assets
1 wr3.111ii SEI
2009 2008
$ 111,867,601 $ 111,362,168
53,418,460
52,661,071
5,748,103
5,582,273
2,955,796
2,955,796
2,770,022
3,157,470
2,430,748
2,711,472
390,224,194
371,915,256
569,414,924 550,345,506
79,261,360 23,657,070
$ 648,676,284 $ 574,002,576
$ 148,221,743 $ 118,615,928
10,475,000
10,475,000
334,586,420
333,185,583
9,951,500
9,951,500
129,110,571
87,321,560
16,331,050
14,453,005
$ 648,676,284 $ 574,002,576
(a) This schedule presents only the capital asset balances related to governmental funds,
including infrastructure. Accordingly, the capital assets reported in the internal service
funds are excluded from the above amounts. Generally, the capital assets of internal
service funds are included as governmental activities in the statement of net assets.
ill
CITY OF ALLEN, TEXAS
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF
GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY(a)
AS OF SEPTEMBER 30, 2009
Land Machinery &
Function and Activity Land Improvements Buildings Equipment
GENERAL GOVERNMENT
Municipal court
City administra0on
Information technology
Human resources
Internal services
Finance
$ 631,788 $ - $ 289,669 $ 57,885
2,712,978 8,871,016 223,566
527,643
Total General Government 3,344,766
PUBLIC SAFETY
181,740
9,160,685 990,834
Police
7,464,437
539,586
Fire
61,432
6,983,460
991,466
Total Public Safety
61,432
14,447,897
1,531,052
PUBLIC WORKS
Community services and streets
51,274,858
287,164
Engineering
44,844,953
15,897
Total Public Works
96,119,811
303,061
CULTURE & RECREATION
Parks & recreation
10,999,436 842,156
18,768,491
1,720,860
Library
11,041,387
388,854
Total Culture & Recreation10,999,438
842,156
29,809,878
2,109,714
COMMUNITY DEVELOPMENT
Building & code compliance
10,790
Planning & development
6,993
Total community development
17,783
GRANT ADMINISTRATION
Grant Administration
500,000
795,659
Total grant administration
500,000
795,659
Construction in Progress
Total governmental funds capital assets $ 111,025,445 $ 842,156 $ 53,418,460 L 56748,103
(a) This schedule presents only the capital asset balances related to governmental funds, including infrastrucrure.
Accordingly, the capital assets reported in the internal servcie funds are excluded from the above amounts. Generally,
the capital assets of internal service funds are included as governmental activities in the statement of net assets.
111
EXHIBIT G-2
Furniture 8
458,484
Other Construction in
105,617
Fixtures
Vehicles Books
Improvements Progress
Total
$ 413
$ - $ -
$ - $ -
$ 979,755
838,706
375,502
18,646,716
12,646,266
21,626
(483)
811,606
1,360,392
5,771
260,793,642
5,771
18,321
(10,116)
200,061
2 3,991
17,701
199,297
23,991
908,828
(483)
811,606
15,216,236
274,766
458,484
105,617
8,842,890
235,398
1,262,185
269,885
9,803,826
510,164
1,720,669
375,502
18,646,716
209,413
260,793,642
312,565,077
17,701
(10,116)
95,793,120
140,661,555
17,701
199,297
356,586,762
453,226,632
672,166
532,385
32,058,100
65,593,594
839,459
2,366,620
143,995
14,780,315
1,511,625
532,385
2,366,620
32,202,095
80,373,909
87,147
97,937
7,478
(41,467)
(26,941
7,478
45,680
70,941
272,474
64,128
248,229
1,880,490
272,474
64,128
248,229
1,880,490
79,261,360 79,261,360
$2,955,796 $ 2,770,022 $ 2,430,748 $ 390,224,194 $ 79,261,360 $ 648,676,284
112
CITY OF ALLEN, TEXAS EXHIBIT G-3
SCHEDULE OF CHANGES IN CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS - BY FUNCTION AND ACTIVITY (a)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
(a) This acheaul Presents only the sapilal asset bahman a held 10 gowmmmatal Tandy, including infrastructure
Accordingly We capital assets reacted In Ne Imemel,arca force are football From the able, cmounla. Gsneaft
Ilne capital easels of inlmal service hands are induced, as governmental acliv'Nea in Ne Waimea of net nseb.
113
Covrma lel Funaa
Govourneril Fund.
Capital Assets October
Deye�
Critical firm.
Function and Activity
1,208
Contributions
Paoli
Deductions
TmnsMn
September 30, 3009
GENERAL GOVERNMENT
Usual Could
$ 9]9,]55
$ -
$ -
$ -
$ -
$ 9]9.]55
City AaminisVa110n
12.646,266
12,646.266
Information Technology
1.360.382
1.380.392
Human Resources
5.771
5]]1
Internal Services
11,537
16852,
mi
Flinn.
D,991
23.931
Total General Gorommint
15,02].]11
180.SN
15,216.238
PUBLIC SAFETY
PUYce
8088991
141
(1M.451)
]68,9]0
0,012,09]
Fire
9,992.741
80.353
(239.288)
9A03.826
Tom Pudic Safety
18,91.731
22],]16
(411.702)
768,970
18.648.716
PUBLIC WORKS
Wmmunih se,Nces Babeels
312,529.939
35139
312,588077
Engineenn9
131,3M.280
1.399.811
431,26]
(930001
1,61319]
140.881.555
Total Public Works
449,834,778
1.399.811
469,4W
(W,001
T613, 197
4531228,832
CULTURE 8 RECREATION
Parka B arboreal
50,481.130
1,025
236.779
(19(1,894)
15.0651355
&5,593.595
Library
15.0611038
105197
(485821)
14.780,314
Totl Culture S Recreation
65,542.18000
1.028.00
424,976BID
(659,615)
15055355
80,313,909
COMMUNITY DEVELOPMENT
Building 6 Casae Compliance
118.190
(12,253)
9].93]
card g B Demadismnl
14,171
141.4671
(26.936)
To. Cosu ly 0evebgneM
124,861
-
(53,]201
]0941
GRANTADMINMTRAT10N
Grant P,drumbtra0m
1]55016
50A75
]5.080
1,8W.4W
Total Grant Administrator,
1]55.816
WA75
75,000
1,BW,4%
Total general fixed morel allocated
bylunctou
550345505
1.480,&7!
1,381,80]
(1,215,037)
17,522.522
580,414.924
Constmctipn'mprrgresa
23,65],069
73,126,812
117,5225221
79.261
Tolyl governmental funds radial
ares,
$ 5]4,02.5]4
$ 1,480.83]$]448],909
S 1.2( 15.0311
$
Y &8.0]6284
(a) This acheaul Presents only the sapilal asset bahman a held 10 gowmmmatal Tandy, including infrastructure
Accordingly We capital assets reacted In Ne Imemel,arca force are football From the able, cmounla. Gsneaft
Ilne capital easels of inlmal service hands are induced, as governmental acliv'Nea in Ne Waimea of net nseb.
113
STATISTICAL SECTION
(UNAUDITED)
p�SpEGT
'N).
p�
� TY
ClrY OF ALLEN
STATISTICAL SECTION
This part of the City of Allen's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, notes disclosures, and required supplementary
information says about the Citys overall financial health. This information has not been audited by the
independent auditor.
Contents
Table #s
Financial Trends
1, 2, 3 & 4
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity
5, 6, 7 & 6
These tables contain information to help the reader assess the Citys two most significant
local revenue sources, the property and sales taxes.
Debt Capacity
9, 10, 11 & 12
These tables present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the Citys ability to issue additional debt in the future.
Economic and Demographic Information
13 & 14
These tables offer economic and demographic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information
15, 16 & 17
These tables contain service and infrastructure data to help the reader understand how the
information in the Citys financial report relates to the services the City provides.
Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual
financial reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003: tables
presenting government -wide information include information beginning in that year.
114
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CITY OF ALLEN, TEXAS
SINGLE AUDIT REPORTS
YEAR ENDED SEPTEMBER 30, 2009
CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters based in an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance with Requirements Applicable to
Each Major Program, on Internal Control Over Compliance in Accordance
with OMB Circular A-133, and on Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Summary of Prior Audit Findings
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
weaver}
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
The Honorable Mayor and City Council
City of Allen, Texas
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component unit, each major fund,
and the aggregate remaining fund information of the City of Allen, Texas (the City), as of and for
the year ended September 30, 2009, which collectively compromise the City's basic financial
statements and have issued our report thereon dated February 17, 2010. 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 Govemment Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A significant deficiency is a control
deficiency, or a combination of control deficiencies, that adversely affect the City's ability to
initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a
misstatement of the City's financial statements that is more than inconsequential will not be
prevented or detected by the City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a misstatement of the financial statements will not
be prevented or detected by the City's internal control. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined
above.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of the section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
ANINDEPENDENT WEAVER AND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 1 12221 MERIT DRIVE, SUITE 1400, DALLAS, T%75251
INTERNATIONAL WWW.WEAVERLLPCOM PA972) 490 1970 N972)702$321
City of Allen, Texas
February 17, 2010
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, 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 or other matters that are required to be reported under Govemment Auditing
Standards.
This report is intended solely for the information and use of the audit committee, management,
City Council, and federal awarding agencies and pass-through entities 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
February 17, 2010
weaver
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and City Council
City of Allen, Texas
Compliance
We have audited the compliance of the City of Allen, Texas (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 each of Its major federal
programs for the year ended September 30, 2009. The City's major federal programs are
identified in the summary of auditor's results section of the accompanying schedule of findings
and questioned costs. Compliance with the requirements of laws, regulations, contracts, and
grants applicable to each of its major federal programs is the responsibility of the City's
management. Our responsibility is to express an opinion on the City's compliance based on our
audit.
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City's compliance
with those requirements and performing such other procedures as we considered necessary in
the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on the City's compliance with those requirements.
In our opinion, the City, complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended
September 30, 2009.
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grants applicable
to federal programs. In planning and performing our audit, we considered the City's internal
control over compliance with requirements that could have a direct and material effect on a
major federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control over compliance.
ANINDEPENDENT WEAVER AND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTSAND CONSULTANTS 3 12221 MERIT DRIVE, SUITE 1400, DALLAS, T% 75251
INTERNATIONAL WWWWEAVERLLPCOM P(972)4901970 PAM 7028321
City of Allen, Texas
February 17, 2010
Page 2
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A significant deficiency is a control
deficiency, or a combination of control deficiencies, that adversely affect the entity's ability to
administer a federal program such that there is more than a remote likelihood that
noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program will not be prevented or detected by the entity's internal
control.
Our consideration of the internal control over compliance would not necessarily identify all
deficiencies in internal control that might be significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined above.
Schedule of Exoenditures of Federal Awards
We have audited the basic financial statements of the City of Allen, Texas as of and for the year
ended September 30, 2009, and have issued our report dated February 17, 2010. Our audit was
performed for the purpose of forming an opinion on the basic financial statements taken as a
whole. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by OMB A-133 and is not a required part of the
basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all
material respects in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of City Council, management, and
federal awarding agencies and pass-through entities and is not intended to be and should not
be used by anyone other than these specified parties.
//
( AUIPA a�j ,ff f..
WEAVER AND TIDWELL, L.L.P
Dallas, Texas
February 17, 2010
CITY OF ALLEN, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
I. Summary of the Auditor's Results:
Financial Statements
a. An unqualified opinion was issued on the financial statements.
b. Internal control over financial reporting:
Material weakness(es) identified? _Yes X No
Significant deficiency(ies) identified that are not
considered a material weakness? Yes X No
c. Noncompliance material to financial
statements noted Yes X No
Maior Programs
d. Internal control over major programs:
Material weakness(es) identified? _Yes X No
Significant deficiency lies) identified that are not
Considered a material weakness?
_Yes
X None reported
e. An unqualified opinion was issued on compliance for major programs.
f Any audit findings disclosed that were required to be
reported under Section 510(a) or OMB Circular
A-133.
Yes
X No
g. Identification of major programs:
14.218
Community Development Block Grant
h. The dollar threshold used to distinguish between type
A and type B programs.
$300,000
i. Auditee qualified as a low-risk auditee.
Yes
X No
R
CITY OF ALLEN, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
IL Findings Relating to the Financial Statements Which Are Required To Be Reported in
Accordance with Generally Accepted Government Auditing Standards.
NONE
III. Findings and Questioned Costs for Federal Awards Including Audit Findings as
Described in Lf Above
NONE
CITY OF ALLEN, TEXAS
SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
IV. Summary of Prior year Findings.
NONE
CITY OF ALLEN, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
U.S. DEPARTMENT OF JUSTICE
CFDA
Number Grant Number Expenditures
Passed through Office of the Governor, Criminal Justice Division
Violence Against Women Act Fund
16.588 WF -08-V30-20226-01 $ 50,025
Justice Assistance Grant
16.804 2009 -SB -B9-1417 17,976
Bullet Proof Vest Reimbursement
16.607 me 5,478
TOTAL DEPARTMENT OF JUSTICE
73,479
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed through Office of the Governor, State Health
Prevention Investigations and Technical Assistance
93.283
7560049128A2006
4,850
TOTAL DEPARTMENT OF HOMELAND SECURITY
4,850
U.S. DEPARTMENT OF HOMELAND SECURITY
Direct Funding
Homeland Security Grant Program/CCP
97.053
2007 -GE -T7-0024
6,586
Staffing for Adequate Fire and Emergency Response (SAFER)
97.083
EMW-2005-FF-02581
42,000
TOTAL DEPARTMENT OF HOMELAND SECURITY
48,586
U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
Direct Funding
Community Development Block Grant
14 218
B-06-MC48-0044
16,533
Community Development Block Grant
14.218
B -07 -MC -48-0044
125,709
Community Development Block Grant
14.218
B -08 -MC -48-0044
246,130
Community Development Block Grant
14.253
B-09-MY48-0044
66,501
TOTAL U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
454,873
TOTAL EXPENDITURES
0
$ 581,788
CITY OF ALLEN, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
1. GENERAL
The accompanying schedule of expenditures of federal awards presents the activity of
all applicable federal awards of the City of Allen, Texas (the City). The City's reporting
entity is defined in Note 1 to the City's basic financial statements.
2. BASIS OF ACCOUNTING
The accompanying schedule of expenditures of federal awards is presented using
modified accrual basis of accounting, which is described in Note 1 to the City's basic
financial statements. Grants are generally accounted for in special revenue funds,
except for the FAA grants, which are recorded in the Airport Fund, a proprietary fund.
3. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the accompanying schedule may not agree with amounts reported
in the related federal financial reports since the City used the modified accrual basis of
accounting in preparing the schedule and the cash basis in preparing the federal
financial reports.
4. CONTINGENCIES
The City participates in several grant programs, which are governed by various rules and
regulations of the grantor agencies. Costs charged to the respective grant programs are
subject to audit and adjustment by grantor agencies. Therefore, to the extent that the
City has not complied with the rules and regulations governing the grants, refunds of any
money received may be required, and the collectability of any related receivable at
September 30, 2009 may be impaired. In the opinion of the management, there are no
significant contingent liabilities relating to compliance with the rules and regulations
governing the respective grants.
5. NON-CASH ASSISTANCE
During the fiscal year ended September 30, 2009 the City did not receive any non-cash
federal assistance. At September 30, 2009 the City did not have any outstanding loans
due to any federal agencies.