Comprehensive Annual Financial ReportCITY OF ALLEN
Comprehensive Annual
Financial Report
For Fiscal Year Ended
Allen, Texas
Official Copy
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THE COURSES AT
WAITERS CREEK
The Courses at Watters Creek reflects the
City of Allen's vision to provide
top-
quality recreational facilities
for
residents, families and guests; centrally
located on Highway 75 on
the
Allen/Plano border, the inviting
and
environmentally friendly design
by
Weibring-Wolfard Golf Design sets
the
standard for a community
golf
experience- three courses designed
for
players of all abilities, all at a competitive
value. It's not the old Chase Oaks ...
it's
the new Courses at Watters Creek.
For more on Allen, Texas please visit:
htto://www.citvofallen.or¢
http://www.allentx.com
http://visitallentexas.com/
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
To the Finance/Audit Committee
City of Allen, Texas
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the 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, Texas (the City), as of and for the year ended September 30, 2013, and the
related notes to the financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated March 4, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control 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 and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
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
AN INDEPENDENT NEL6ER OF WEAVat ANDiUAELL,LLP
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laws, regulations, and contracts, 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 Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 4, 2014
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF ALLEN
FISCAL YEAR ENDED
SEPTEMBER 30, 2013
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
TABLE OF CONTENTS
It. FINANCIAL SECTION
Independent Auditors Report 1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS 4
B. BASIC FINANCIAL STATEMENTS
EXHIBIT Page
I. INTRODUCTORY SECTION
Government -Wide Financial Statements
Letter of Transmittal
i
Certificate of Achievement
A
Organizational Chart
vii
Elected Officials and Administrative Officers
viii
It. FINANCIAL SECTION
Independent Auditors Report 1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS 4
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Position
1
17
Statement of Activities
2
18
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet — Governmental Funds
3
20
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position
4
22
Statement of Revenues, Expenditures and
Changes in Fund Balances — Governmental Funds
5
23
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement
of Activities
6
25
Proprietary Funds Financial Statements
Statement of Net Position — Proprietary Funds
7
26
Reconciliation of the Fund Level Statement of Net Position
of Proprietary Funds to the Government -wide
Statement of Net Position
8
27
Statement of Revenues, Expenses and Changes
In Net Position — Proprietary Funds
9
28
Reconciliation of the Statement of Revenues,
Expenses and Changes in Net Position of
Proprietary Funds to the Statement of Activities
10
29
Statement of Cash Flows — Proprietary Funds
11
30
Component Units Financial Statements
Statement of Net Position — Component Units
12
31
Statement of Activities — Component Units
13
32
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
TABLE OF CONTENTS
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPER Funding Progress and Contributions A-1 67
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances— Budget and Actual A-2 68
Notes to Required Supplementary Information 69
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
EXHIBIT
Page
Notes To Financial Statements
Note 1.
Summary of Significant Accounting Policies
33
Note 2.
Deposits, Investments and Investment Policies
41
Note 3.
Receivables
44
Note 4.
Capital Assets
45
Note 5.
Long -Term Debt
49
Note 6.
Intedund Transfers
58
Note 7.
Retirement Plan
59
Note B.
Water and Sewer Contracts
61
Note 9.
Deferred Compensation Plan
62
Note 10.
Risk Management
62
Note 11.
Other Postemployment Benefits (OPEB)
63
Note 12.
Commitments and Contingent Liabilities
66
Note 13.
Subsequent Events
66
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPER Funding Progress and Contributions A-1 67
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances— Budget and Actual A-2 68
Notes to Required Supplementary Information 69
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Comparative Balance Sheets - General Fund
B-1
71
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances—General Fund
B-2
72
Comparative Balance Sheets — Debt Service Fund
B-3
73
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — Debt Service Fund
B-4
74
Budgetary Comparison Schedule — Debt Service Fund
B-5
75
Comparative Balance Sheets — General Capital Projects Fund
B-6
76
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Capital Projects Fund
B-7
77
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
TABLE OF CONTENTS
EXHIBIT
Page
Comparative Balance Sheets — General Obligation Bond Fund
B-8
78
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balance — General Obligation Bond Fund
B-9
79
Nonmajor Governmental Funds
Combining Balance Sheet
C-1
81
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
C-2
82
Major Enterprise Funds
Comparative Statements of Net Position —Water and Sewer
D-1
84
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Water and Sewer
D-2
85
Comparative Statements of Cash Flaws — Water and Sewer
D-3
86
Comparative Statements of Net Position — Solid Waste
D-4
87
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Solid Waste
D-5
88
Comparative Statements of Cash Flows — Solid Waste
D-6
89
Comparative Statements of Net Position — Drainage
0-7
90
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Drainage
D-8
91
Comparative Statements of Cash Flows—Drainage
0-9
92
Comparative Statements of Net Position — Golf Course
D-10
93
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position —Golf Course Fund
D-11
94
Comparative Statements of Cash Flows — Golf Course Fund
D-12
95
Internal Service Funds
Combining Statement of Net Position
E-1
97
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
E-2
98
Combining Statement of Cash Flows
E-3
99
CITY OF ALLEN, TEXAS
F-5
105
COMPREHENSIVE ANNUAL FINANCIAL REPORT
G-2
110
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
F-6
106
TABLE OF CONTENTS
TABLE
Page
EXHIBIT
Page
Discretely Presented Component Units
Reconciliation of the Governmental Funds Statement of
6
Comparative Balance Sheets -Economic Development Corporation
F-1
101
Reconciliation of the Governmental Funds Balance Sheet to the
Ad Valorem Tax Levies and Collections
8
Statement of Net Position
F-2
102
Comparative Statements of Revenues, Expenditures and Changes
Ratio of General Bonded Debt Outstanding
10
in Fund Balances
F-3
103
Reconciliation of the Governmental Funds Statement of
Pledged -Revenue Coverage
12
Revenues, Expenditures and Changes in Fund Balance
F-4
104
Comparative Balance Sheets -Allen Community Development
Corporation
F-5
105
Reconciliation of the Governmental Funds Balance Sheet to the
G-2
110
Statement of Net Position
F-6
106
Comparative Statements of Revenues Expenditures and
TABLE
Page
Changes in Fund Balances
F-7
107
Reconciliation of the Governmental Funds Statement of
6
120
Revenues, Expenditures and Changes in Fund Balance
F-8
108
E. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Comparative Schedules by Source
G-1
109
Schedule by Function and Activity
G-2
110
Schedule of Changes by Function and Activity
G-3
112
Changes in Fund Balances, Governmental Funds
TABLE
Page
III. STATISTICAL SECTION
Net Position by Components
1
114
Changes in Net Position
2
115
Fund Balances, Governmental Funds
3
117
Changes in Fund Balances, Governmental Funds
4
118
Assessed Value and Estimated Actual Value of Taxable Property
5
119
Direct and Overlapping Property Tax Rates
6
120
Principal Property Taxpayers
7
121
Ad Valorem Tax Levies and Collections
8
122
Ratio of Outstanding Debt by Type
9
123
Ratio of General Bonded Debt Outstanding
10
124
Direct and Overlapping Governmental Activities Debt
11
125
Pledged -Revenue Coverage
12
126
Demographic and Economic Statistics
13
127
Principal Employers
14
128
Full -Time Equivalent City Government Employees by
Function/Program
15
129
Operating Indicators by Function/Program
16
130
Capital Asset Statistics by Function/Program
17
131
CITYOFALLEN
PEOPLE FIRsr
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN
March 11, 2014
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, 2013.
This report is published to provide the City Council, our citizens, City staff, and other readers with
detailed information concerning 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 unmodified ("clean") opinion on the City of Allen's financial
statements for the year ended September 30, 2013 issued by Weaver and Tidwell, L.L.P. The
independent auditors' report is located in the beginning of the financial section of the CAFR.
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.
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, Allen encompasses
approximately 27 square miles. The George Bush Tollway and Sam Rayburn Tollway (Hwy 121)
provide direct access into the Metroplex and access to Love Field (27 miles) and Dallas Ft Worth
International Airport (31 miles). With a population of 3.65 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 89,705 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
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 •214.509.4100
WEB: www.cirwfallm.om • EMAIL: coa@crtyofallm.org
recreation, tourism, water and sewer services, sanitation/solid waste services, traffic engineering,
and construction and maintenance of streets and infrastructure. The City employs 746.29 full
time equivalent positions.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
In February 2013 Forbes magazine reported, from data gathered from Mootly s Analytics, that
Texas dominates the best cities for good jobs. In fact, it reported that five metropolitan areas in
Texas were in the nation's top ten with Dallas taking the top spot. The Texas unemployment rate
is 6.2% compared to the U.S. unemployment rate at 8%. The Dallas -Fort Worth area has an
incredibly diversified economy, excels in a low unemployment rate, a growing labor force, low
cost of living, affordable real estate costs and a superior business climate. The lower cost of
living creates huge savings to corporations and their employees when relocating to Texas.
Allen's Position in the Region
Along with an ideal location just 12 miles north of Dallas on US 75, Alen's appealing
demographics have spurred along record-breaking growth. The population of 89,705 is
expanding with an estimated 2.8% growth rate. Allen has benefited from a well-educated and
affluent workforce with approximately 80% of the 75013 zip code (one of the two major zip codes
in Allen) composed of Allen residents with an income of $75,000 or more. With a median age of
34.7, over 53.1% of adults have a Bachelors degree or higher and the average household income
is $112,143. AIIen 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 quality of the Allen community attracts residents with a high level of spending power and
disposable income. This makes Allen a prime location for restaurants, shopping centers and other
retail venues.
Allen's progress continues to be recognized as the City was named one of the Top 10 Best
Towns for Families in Family Circle, July 2013 and was named 21" Safest City in Texas by
SafeWise.com, October 2013.
Long Range Financial Planning
The City's responsiveness to emerging economic challenges and its long -tens planning have
been key factors in its fiscal health. The City has a five-year financial plan and a seven 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. Standard and Poois
credit rating report stated "the city's Financial Management Assessment (FMA) to be 'strong',
indicating practices are strong, well embedded and likely sustainable."
The City continues to maintain the highest 'AAA' rating from Standard and Poois and Aal from
Moody's on its general obligation, certificate of obligation bonds. The Water and Sewer Revenue
Bonds are rated'AAA' from Standard and Poois and Aa2 from Moody's. S&P's May 2013 rating
report supporting the 'AAA' rating stated the following credit factors:
• Rapidly growing and diversifying economic and property tax base to include a mix of
residential, commercial, and industrial components;
• High wealth and income levels;
• Access to the large and diverse north -central Texas employment base;
• History of very strong reserve levels and thorough planning processes; and
• Moderately high overall net debt levels.
During FY2013 the City issued $5,065,000 in new General Obligation debt for streets, parks,
building renovations and public art after a one-year hiatus from issuing new debt and starling new
projects authorized in the 2007 Bond Program. Not issuing debt in FY2012 deferred the impact
those projects would have on the tax rate, debt burden, and operating costs in the FY2013
budget.
Due to conservative budgeting and effective management, the City continues to cash finance
capital projects thus saving debt issuance and interest costs. In FY2013 the General Fund
contributed $3,000,000 for future capital projects, Water and Sewer Fund -$3,620,000 for software
replacement, waterlsewer replacement, and pump and lift station improvements, Solid Waste
Fund -$300,000 for software replacement and alley repairs, and Drainage Fund -$153,992 for
software replacement and drainage improvements.
Fiscal Year 2013 Highlights
During FY 2013, the City accomplished many initiatives to enhance livability, improve personal
experience, invest in the future, and celebrate the successes. From quality neighborhoods to
park development, community safety, and environmental initiatives, it's no surprise that people
move here because they want Allen's quality of life.
As the city's population continued to grow, the need for new housing continued as well with the
Community Development Department issuing almost four hundred and sixty building permits. The
City welcemed a variety of new businesses -Cracker Barrel, Pie Five Pizza, Jump Street, Altar'D
State, Z Gallene, Emier Swim School, Blue Wave Express Carwash, Car Spa, Christian Brothers
Automotive, Legacy ER, and facilitated several new residential developments—The Landings,
Bethany Mews, McDermott Farm, Hamilton Hills, Phase ill of Villas at Twin Creeks and Phase II
of the Villas at Cottonwood Creek. The City also administered Community Development Block
Grant funds which went toward the rehabilitation of nine homes within Allen's older
neighborhoods.
As one of the safest communities in the state and nation, the Police Department created a new
street crimes task force to reduce property crimes. Also, working with the Information Technology
Department, the department implemented a new $2.4 million records management system to
increase efficiency with data entry, collection and analysis. The system includes use of electronic
ticket writers in the field, enhances crime mapping capabilities and interactive crime data that can
be provided on a public platform.
The Fire Department also improved their service to the community by replacing two ambulances
which include innovative features such as an automated cot raising and lowering system to
minimizes back injuries and increase patient safety. Other safety initiatives included the
implementation of enhanced mosquito control efforts by the Environmental Health Division and
Allen' emergency response was expanded by working with the North Central Texas Council of
Governments as an early adopter of a new text to 911 services for Verizon Wireless customers in
most areas of Collin County.
The City's environmental conservation and green initiatives span the entire city: from installing
energy efficient lighting at the Don Rodenbaugh Natatorium, opening a new Chemical Reuse
Center, to providing a free irrigation inspection program, to encourage residents to reach a len
percent water use reduction during Stage three of the City's Water Conservation Plan.
The Community Services Department successfully negotiated a contract extension with
Community Waste Disposal (CWD), Allen's solid waste provider that will have a positive impact to
the Solid Waste Fund budget. And with the assistance of a grant received by Keep Allen
Beautiful, the City was able to implement recycling at Allen Event Center and encourage
participation there through a series of animated public service announcements.
With monetary gifts from the McDermott Foundation and Friends of the Library, as well as county
grant funds, the library upgraded the radio frequency identification system, which allows for
patron traffic counting, book location alerts, alarm notification, and self-service check-out stations.
Renovations to the library's second floor included new carpet, paint, and a whole new layout for
adult fiction and non-fiction materials.
Another development completed was a $9.20 million dollar renovation of the City's municipal golf
course made possible by funds from the Community Development Corporation. Renamed The
Courses at Watters Creek, and reopened in January 2013, the course includes a lighted driving
range, eighteen hole Traditions course, a nine hole Player's Course and a six hole Future's
course to accommodate players of all skill levels. Other projects funded by the CDC were
construction of a restroom at Heritage Village, improvements at Bethany Lakes Park, share the
road bicycle signage, trail development, and a new bus for the Allen Senior Recreation Center.
The Allen Economic Development Corporation worked to bring a variety of companies and
related development to Allen -Cooking Solutions Group -45 new jobs and capital investment of
$600,000; Bddgemetrics-53 new jobs and $75,000 capital investment; Expansion of Experian
Information Solutions created 154 newjobs with a capital investment of $6 million; announced
the development of Allen Place, a new $70 million office park along U.S. 75, that will include
468,000 square feet of office space , retail shopping, conference rooms, and a fitness center.
This not only positively affected the city's economy, but also increased the number of jobs in
Allen.
One of the city's major draws, Allen Event Center, is home to a wide range of entertaining shows
and events-Scooby Doo, The Brian Setzer Orchestra, Allen Blues Festival, Under the Sun Tour,
and SNL comedic talent of Carvey, Miller and Nealon. And when the event center is in between
shows, it transforms into a professional sports venue for numerous events, ranging from indoor
football to the Tom Thumb Texas Stampede Championship Rodeo. On the event center ice, the
Allen Americans capped another successful season by winning the Presidents Cup. And the
legendary Dallas Sidekicks soccer team kicked off their inaugural season by dominating their
home turf in the PJlen Event Center.
Allen Convention and Visitors Bureau, or CVB, funded by the Hotel Tax Fund, markets Allen as a
destination for meeting and sporting event planners. This helps generate economic activity from
the visitors to Allen. Events such as the Miss Texas Pageant, the Lone Star Conference
Basketball Championships, and the National Collegiate Wrestling Association Championship
resulted in over 15,000 visitors that booked over 4,000 hotel room nights, and generated more
than $4 million in economic activity. The CVB also stimulates regional tourism by promoting the
city for shopping, dining and entertainment.
With all this happening within Allen's borders, it's clear that the city is working hard to provide
every resident and visitor with great experiences, services and safety.
Relevant Financial Policies
A resolution amending the Debt Management and Fund Balance Reserve Policy to reflect new
accounting requirements (GASB 54) was approved by Council in September 2011. 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.
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, 2012. This was the fifteenth
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, Fiscal Services Administrator and Tm
Nguyen, Senior Accountant. Appreciation is expressed to representatives of Weaver for their
invaluable assistance in producing the final document and to the City Manager's once 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
Chief Financial Officer Assistant Finance Director
CITY OFALLEN ;
PEOPIE FIRST
RESPECT INTEGRITY DELIVER EXCEL
i►i
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Allen
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2012
*4,04 0 wA, e-*
Executive DirectodCEO
CITY OF ALLEN
ORGANIZATIONAL CHART
City Attomey City Manager Municipal Judge
Assistant City Manager Assistant tc the Clry Manager
Human Resources City Sacrelary
Public and Media Relations Commungy Devebpmem
Community SeMcas W Engineering
Finance I I I Fire
Library W Intonation Technology
Police I I I Parks and Recreation
CITY OF ALLEN, TEXAS
CITY OFFICIALS
Council Members
Mayor
Stephen Terrell
Mayor Pro Tem, Place 5
Gary L. Caplinger
Place 1 Council Member
Kurt Kizer
Place 2 Council Member
Ross Obermeyer
Place 3 Council Member
Joey Herald
Place 4 Council Member
Robin L. Sedlacek
Place 6 Council Member
Baine Brooks
Management Staff
City Manager
Peter H. Vargas
Chief Financial Officer
Kevin Hammeke
Assistant Finance Director
Joanne Stoehr
Financial Services Administrator
Dana Thornhill
Acting Accounting Manager
Tru Nguyen
CITY OFALLEN
OF
IEFIRST RESPECT INTEGRITY DELIVER EXCEL
PEEP
weaver}
Auwnrxe.IO,. AJr,ury
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of
the City Council
City of Allen, Texas
Report on the Financial Statements
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, 2013, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
AN IN]BBDBJT AE76ER a WEAVER ANO HOWELL, L IP. IMI LERIT DRIVE. 3U M, DALLAS. TX 15231
BAKERTRLYINrERNATIONAL CERTIFIED PII&IC ACCOMANTS AID ADVISORS P:M WAM F: n2TW.=
City of Allen, Texas
Page 2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective 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, Texas, as of September 30, 2013, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended
in conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
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 4 through 16 and 67 through 69 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's financial statements as a whole. The introductory section,
combining and individual major and nonmajor fund financial statements, the discretely
presented component units financial statements and schedules, schedules of capital assets
used in the operation of governmental funds, and statistical section, are presented for purposes
of additional analysis and are not a required part of the financial statements.
City of Allen, Texas
Page 3
The combining and individual major and nonmajor fund financial statements, discretely
presented component units financial statements and schedules, and schedules of capital assets
used in the operation of governmental funds are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare
the financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated in all material respects in
relation to the financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Governmental Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 4, 2014, on our consideration of the City's internal control over financial reporting and on
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 that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
' i)AVIan 1,0J J4tJ,. Q Jf;f P.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 4, 2014
CITY OF
Ar
PEOPLE FIRst
RESPECT INTEGRITY DELIVER EXCEL
MANAGEMENT'S DISCUSSION AND
ANALYSIS
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
As management of the City of Allen, Texas, we offer readers of the Citys financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2013.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities (net position) at September 30, 2013 by
$609,022,323. Of this amount, $60,665,820 (unrestricted net position) may be used to meet
the government's ongoing obligations to citizens and creditors.
• The City's total net position increased by $4,137,094. The increase is primarily a result of
prudent, conservative management by City staff that led to actual expenditures being $31M
less than budgeted and a reduction in total gross bonded debt.
• The City's governmental funds reported combined ending fund balances of $50,664,689 at
September 30, 2013, an increase of $7,581,052 from the prior fiscal year. This increase is
due to prudent, conservative management of City staff that allowed the City to transfer $3M
to the General Capital Projects Fund for future capital projects, operating revenues in the
General Fund increasing, and revenue as a result of the sale of general obligation bonds in
the amount of $5,065,000.
• At the end of the fiscal year, the unassigned fund balance for the General Fund was
$14,952,037 or 20% of total General Fund expenditures.
• On a government -wide basis, the City's total liabilities decreased by $2,855,572, primarily
because the general obligation principal payment of $7,955,000 was greater than the new
general obligation bond issue of $5,065,000.
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 Position presents information on all of the Citys assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
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 position changed during the
fiscal year. All changes in net position 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 Position 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, 2013
(UNAUDITED)
In the government -wide financial statements, pages 17 through 19, 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 infiows 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 nonmajor 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 20 through 25 of this
report.
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.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
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 26 through 30 of this report.
Notes to the Financial Statements - Additional information that is essential to a full understanding of the
data provided in the government -wide and fund financial statements is provided in the notes to the
financial statements found on pages 33 through 66 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 67 through 69 of this report.
The combining statements referred to earlier in connection with nonmajor 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 109 through
112.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, over time net position may serve as a useful indicator of the financial position of a
government. The assets of the City of Allen exceed the liabilities by $609,022,323 as of September 30,
2013. By far the largest portion of the City's net position ($521,480,762 or 86%) 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.
Table 1
Net Assets
Si.Mns
Aal kdsibea
BuaineasNDe
AdMtes
12M
13
2g12
2913
2012
2918
012
Currant and Doer assets
8 71,658,0fit
$ 64,019,841
$ 39,461]53
$ 35,900.$60
S 111,119,817 $
9992,691
Capital assets
514.374.899
523,241.289
109,370.527
110,421,741
623,745.428
833.fi7030
Total Assets
586.032,963
587,261,130
148,832.280
14813221591
734,885,243
733,583,721
Lang-terrn liabilities
104,892,837
106,623,962
10,338,145
10,923,464
11512281982
117,547,418
Olherlebilities
7,171,738
8772,349
3,442.200
2,378,727
10,813,936
11,151,076
Total Liabilities
112,M,575
11539,311
13,T78.345
13,302,101
125,842,920
128,696,492
Net Pos tim.
Net investment in
oapitsl assets
421,93,296
426,27,901
99544,466
99,97,794
521,400]62
5261168,895
RestricteE
26,511131
21,042,413
364.510
428,646
26,875,741
21,471,059
Unan icteG
25,520,861
24,614,505
_ 35,144,959
32.67970
60,665,820
57,245,475
Total Net Position
E 473.9fi,388
E 1.884.819 ,
-1- 135,053 935
$ 133.020.410
$ 809.022.323 S
fiO4.805.229
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
An additional portion of the City's net position, $26,875,741, represents resources that are subject to
external restrictions on how they may be used; the remaining balance of $60,665,820 may be used to
meet the govemmenl's ongoing obligations to citizens and creditors.
Analysis of the City's Operations - As of September 30, 2013, the City had an overall increase in net
position of $4,137,094 for the government as a whole which represents an increase of $2,103,569 for
governmental activities and an increase of $2,033,525 for business -type activities. The increase in
governmental activities is due to operating revenues in the General Fund increasing, prudent
management by City staff, and revenue as a result of the sale of general obligations bonds. The increase
in business -type activities due to operating revenues increasing for Water and Sewer as a result of a
water rate increase in February 2013 in accordance with the Water and Sewer rate study and the
reopening of the city -owned golf course. A summary of the Citys operations for the year ended
September 30, 2013 is provided in Table 2.
Table 2
Cbangec In Net PoaTion
( nunrartal Aclvities
Rinneashoe
Act402
$413
2,312
2012
2413
2012
2112
2412
Revenues:
Program Revenues:
Chagea for semces
S 13.67L590
S 11,712.62
$ 40,200,44
$ 36,131,606
$ 53,270,002 $
47,843,868
operating grants and
penMbWipre
2,06],462
1,509,355
1,000,000
1,000,000
3,01
2,51
capital grads and contributions
14,]37.]80
26,620,381
3,788,300
7,151,043
18.526,000
33,777,424
General Revenues:
P.,riy tares
44.474,745
42,092,753
-
-
1,474,745
42,042,753
seat tax
16,209,761
15,036,519
-
-
16,209161
15,038,519
Francit. tares
6,302,018
8,150,419
-
-
6,30$018
8,150,419
Hotel motel taxes
1,350,208
1,229,996
-
-
1,350$86
1.229,996
Otheriares
1,369,503
11622,633
-
-
11389.503
1,622,833
Iderasteemings
177.495
53&883
70,382
197,613
247,877
736.476
Gain on sal f.,al aseet
92,401
40,50
-
-
92,401
40.509
Miscellaneous
$019,02
1.602.747
385.842
411,268
;464,924
2214,015
Total Revenues
102,030,143
108,30,237
46,444,938
44,891.530
147,483,078
153,200,787
Ewen
General go M.nat
22,271,0$
10,347,067
-
-
22,271,050
IsM7,087
Public safety
28.05,911
28.875,146
-
-
2&935,911
28,675.148
PubllcemAs
17,650,940
17,681,730
-
-
17,0(17,910
1],881.]30
Culture and! recreation
29,903,224
32,112.451
-
-
29,983,224
32,112,0.51
Community development
2,230.988
2,527,510
-
-
21230,988
2,527,518
Inherent on king-teml debt
4.67.303
4,539,622
-
-
4,087,303
4,539.622
WateraM steer
-
-
29.10.281
28,359,690
29.160,281
28,359.698
solid waste services
-
-
5,495,654
5,429,049
5,495,654
5,429,099
Drainage
-
-
9101179
682.86
910'In
882128
GOT course
2.483,467
1,19,015
2,483.481
1,179,015
Total Expensas
105,296,404
103,883,534
30,049.561
33,650,400
193131.51965
137,734,022
Cbange In net posdlOn before
traMers
(3,258261)
4,425103
7,395,355
11,041,042
4,137,094
15,468145
Tranefen
5361030
53]]207
(5361830)
(5.377,207)
-
Clvnge in net posnlon
2,103.569
91802,910
2.033,525
5,853,635
4,137,094
15,468.745
Net posNon, binning dyear
471.884,819
462,061,90
133.020,410
127,30.575
00418851229
589,418.484
Net tender, eM of year
$ 473,988,368
111 471,864.819
$ 135,056,935
1 133,020410
1 809.022 ,323 1 604.885,229
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
Governmental activities
Revenues — The following chart visually illustrates the City's revenue by sources for governmental
activities:
Revenues by Source- Governmental
Activities
Omer Transfers Charges for service
Franchise taxes 5% 5% 12%
6% Operating grants
2%
Revenues for the City's governmental activities decreased by $6,271,094 or 6%. Major components of
revenue increases and decreases are explained as follows:
• Property taxes increased by $2,432,002 due to an increase of 5.25% from prior yeses valuation. This
increase is due to new property, increases in valuation of business personal property, and abatement
reductions.
• Operating grants and contributions increased by 37% due to the City receiving additional federal grant
funding for Ore station #5, park dedication fees increasing, and the Parks Department being awarded a grant
for recycling at the Allen Event Center.
• Capital grants and contributions decreased by $11,888,601 due to a decrease in developer contributions for
right of way and Parkland.
• Sales tax increased by 8% due to continued commercial retail development and population growth in Allen.
• Charges for services increased by 12% due to the additional revenues created by the City -owned Allen
Event Canter as well as due to City staff evaluating the various fees charged for services to ensure the City
stays in line with other municipalities regarding cost recovery.
• Hotel taxes increased by 10% due to more usage of the hotels as the City of Allen continues to become a
destination point for many activities
• Interest earnings decreased $361,368, a reduction of 67%, as a result of the continued decline of rates on
investments during fiscal year 2013.
Expenses for governmental activities increased by $1,412,870 or 1%. Components of increases and
decreases are explained as follows:
• Expenses include employee annual merit increases.
• Due to the City's retiree insurance rates increasing significantly after December 2012, the City had an
increase in the number of employees refiring which resulted in an increase in payouts for employees'
accrued time.
• Expenses for general government increased by 21% due to critical maintenance needs to vadous City
operations and an increase in the City's share of healthcare costs. Expenses for the city's General Fund
electricity and water accounts were moved to the general government category, and the personnel costs for
managing the GIS application moved to the IT department.
• Interest on long-term debt decreased 10%.
• Culture and recreation expense decreased by 7% due to electricity and water accounts being moved to
general government.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
• Community Development expense decreased by 12% due to the personnel costs for managing the GIS
application moved to the IT department
The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
Expenses and Program Revenues -
Governmental Activities
$30,000,000
$25,000,000
$20.000,000
$15.000,000
$10,000,000
$5,000,000 _
$0 -
�enA ��e roc c� a�K
a Qaa°
da \o a�
QJn e �Daa �oc�
c� e�`a Jca `oc
C� Gu GoFF a��
Business -type activities -
•Expenses
•Revenues
Revenues - The following chart visually illustrates the City's revenue by sources for business -type
activities:
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
Business -type activities revenues increased $553,406 or 1%. Major components of the
decreases/increases are as follows:
• Capital contributions for water and sewer lines and impact fees decreased by $3,362,743, or 47%
due to a decrease in developer contributions for water mains and sewer lines.
• Interest earnings decreased by 64% as a result of the continued decline of rates on investments
during fiscal year 2013
• Charges for services for business -type activities increased by $4,068,806, or 11%, due to
operating revenues for Water and Sewer increasing by 7% as a result of a water rate increase in
February 2013 in accordance with the Water and Sewer rate study and the reopening of the city -
owned golf course which was closed during FY2012.
Expenses for business -type activities increased by $4,199,093, or 12.4%. Expenses for Water and Sewer
increased by 11% which included $2.17m transferred to capital projects for systemic Water and Sewer
infrastructure replacement and future CIP funding, $1m was transferred for Water and Sewer's portion of
the cost to replace the City's administrative software, and three full-time employees were added to
establish an Inflow and Infiltration Crew in order to assist with the Texas Commission on Environmental
Equality compliance. Due to the golf course being closed in 2012 and reopening in 2013, expenses in the
Golf Course Fund increased by 111%. The following chart illustrates the relationship between expenses
and program revenues for business -type activities:
Expenses and Program Revenues -
Business -type Activities
$40,000,000 _
-_..__------__-
$35,000,000
$30,ODO,000
$25,000,000
$20,000,000 .Expenses
$15,ODO,000 •Revenues
$10,000,000
$5,000,000
$D
Water and Solid waste Drainage Golf course
sewer services
10
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
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
$50,664,689, an increase of $7,581,052 in comparison with the prior fiscal year. Approximately 30%, or
$14,952,037, constitutes unassigned fund balances, which are available for spending at the government's
discretion. The remaining fund balances are classified as assigned, restricted or nonspentlable to
indicate that they are not available for new spending allocation. The nonspendable portion includes
prepaid items ($2,098), restricted funds are for debt service ($901,848), capital projects ($26,855,793),
tourism ($2,808,030), asset forfeiture ($148,020), state and federal grants ($588,649), park acquisition
and development ($1,607,822), tax increment financing agreements ($1,221,875), court technology
($25,739), juvenile case manager ($27,81)4), PEG fees ($468,910), photo red light enforcement
($40,554), child safety fees ($108,105) cemetery trust ($55,841), and assigned funds are for general
government ($490,727), public safety ($37,672), public works ($76,866), culture and recreation
($237,273), and community development ($9,026).
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total
unassigned fund balance was $14,952,037. Current operating expenditures had savings of $3,839,148,
allowing $3,000,000 to be transferred to the capital projects fund for self-financing of capital projects. The
total fund balance decreased from $16,786,05010 $16,532,652, which was budgeted for one-time capital
purchases.
The Debt Service Fund fund balance of $901,848, all of which is restricted for the payment of debt,
increased from the prior year by $364,328 This increase was due to a budgeted transfer from the Solid
Waste Fund and the Drainage Fund to offset the general obligation debt that was issued for street and
drainage projects. The fund balance meets the FY2014 5-10% of annual debt service requirement of
$611,533 to $1,223,066.
The General Capital Projects Fund provides information on cash financed capital projects and had an
ending fund balance of $19,089,780, an increase of $4,009,327. Revenues and transfers from other
funds totaled $9,142,225, which included $780,000 from the county for the expansion of Ridgeview Drive,
$3.6 million from the Texas Department of Transportation for the widening of Exchange Parkway from
Alma Drive to Allen Heights, and $3,453,992 from other funds to cash finance capital projects. Total
expenditures and transfers of $5,132,898 consisted of the continued construction to widen Bethany Drive,
renovation at The Course at Watters Creek, police station renovation, expansion of Chelsea and
Ridgeview Drive, and the widening of Exchange Parkway.
The General Obligation Bond Fund had an ending fund balance of $7,766,013, an increase of $2,416,403
from the prior year. Expenditures totaled $2,965,490 which included $742,031 for the widening of Main
Street from Allen Drive to U.S. Highway 75, $439,852 for the continued widening of Bethany Drive,
$293,255 for street and alley repair, and $393,524 for police station renovations.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the govemment-wide financial
statements, but in more detail. At the and of the year, unrestricted net position for all enterprise funds are
as follows: Water and Sewer, $29,491,491, Solid Waste, $3,343,570, Drainage, $856,706, and Golf
Course, $299,670. The total change in net position for the funds was an increase of $2,010,308, a
decrease of $33,027 a decrease of $195,325, and an increase of $86,663, respectively.
11
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
The Water and Sewer Fund and the Solid Waste Fund had an increase in net position as a result of an
increase in operating revenues. The Golf Course Fund had an increase in net position due to revenues
exceeding expectation for the reopening of the course, a transfer from General Fund for additional costs
associated with the final preparations of the reopening of the course, and expenses being below budget.
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 FY2012-13, the City Council amended the budget for the General Fund
one time.
Adjustments made during the FY2012-13 decreased the original revenue budget by $1,144,062 and
decreased the expenditure budget by $1,291,553. Due to actual expenditures being $3,839.148 less than
the revised budget, the City was able to transfer $3m to the General Capital Projects Fund to cash
finance future capital projects. The budgeted fund balance allowed for a draw do" in the amount of
$636,000 for one time capital expenditures; however, the actual decrease was only $253,398. The
General Fund's operational expenditure reserve increased to 75.133 days from the amended budget of
73.8 days, easily within the City's financial policy of 60 to 90 days.
CAPITAL ASSETS
The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2013, amounts to $623,745,426 (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. There was a decrease of 2% in the investment in capital assets for the current
fiscal year.
Table 3
cat" Resets at Yearand NO of Rxumulatsd Depreciaton
Governmental RnllvX'es Business -tum Rc4WXea Tidal
2410 212 2013 211E 2L4 2412
lend $129,147,461 $126,148,774 $4,072,882 $4,0]4882 $133,220,313 $130,219,656
Buildings 108,969,985 108.552,522 - - 108,969.965 108,5521522
Towere, tanks end pump OBIWs - - 101,666,144 102,312.542 101,866144 102,312542
Olherlmpmvemen6 253.279,709 246,479.101 367,360 379,624 252847,089 248,858.025
Fumilum and BNures 1,629.985 2,616,969 - - 1,629,965 2,648,969
vidides 5,574,867 5.311,311 159,433 176,884 5,7M,300 5,488,195
Wichlne, and egulpmenl 2.617,470 3.833.111 1,951,128 1,420.132 4,571,598 5,053.243
ConsWNm In progress 13,155,"2 30,471,201 1,15,580 2.59.877 14,308,022 32530,878
Total $514,374,899 $523,241,289 $109,370,527 $110,421,741 $623,745,426 $833,883,030
The major governmental -type capital improvement projects and developer contributions during the current
fiscal year included the following:
Developer contributed right of way and park land
$ 8,387,214
City golf course renovation (The Courses at Watters Creek)
1,020,649
Public Safety Dispatch and Records Systems
274,016
Street construction:
Fast Bethany Drive widening
1,266,181
Ridgeview Drive -Watters to Stacy
1,241,539
Main Street -Allen Drive to US 75
742,031
Chelsea Boulevard Phase 1
342,357
12
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
Business -type capital improvement projects and developer contributions during the current fiscal year
include the following:
Developer contributed water mains and sewer lines
$ 2,468,211
Allen Heights -Bethany Bypass
447,192
Whis-Lynge Hill & Rolling Hills Estates water & sanitary sewer
437,591
Stacy Tank Improvement
301,675
Additional information on the Cky's capital assets can be found in Note 4 on pages 45-49 of this report.
DEBT ADMINISTRATION
As shown in Table 4, the City's total outstanding debt at September 30, 2013 was $166,791,486 of which
$104,656,660 was governmental, $10,336,145 was business -type activities and $51,798,681 was
component units'. Total gross bonded debt was $158,905,000 which includes $96,735,000 of General
Obligation (G.O.) bonds backed by the full faith and credit of the government, $800,000 of Certificates of
Obligation backed by taxes and revenue generated from the golf course, $9,370,000 secured solely by
water and sewer revenue, and the component unit's total of $52,000,000 secured by future sales tax
revenue. Other long-term debt relates to compensating absences, notes payable, debt refunding and
issuance, premiums, and discounts.
In fiscal year 2013, the City issued $5,065,000 of G.O. Bonds, which will be used for capital acquisition
and/or improvements to the City.
The debt for both component units relates to debt issued in order to support public infrastructure
improvements and construction of the Allen Event Center. Total debt for the component units decreased
by 3%. Total debt for the Allen Economic Development Corporation decreased by 3% and the Allen
Community Development Corporation debt decreased by 3%.
T.Bw 4
OulatandingB Nat YW4M
B..d. antl COW Long Tp b
Gvsnma,W Pc.Ol Busnmrlwe MMtlu CmwnetUna Igal
2414 241T 2411 1412 Li 1412 29]1 W12
Gmee B..d.d DW
Gmeml O51iga5on f 88,I35.WJ $ 98.345.000 $ - $ - f - $ - S 88735,0,6 S 99,365000
M.M
CT aw of Oellgem mo,m0 IMWJ - - - BOO.W3 t.o80.000
Bonar
Revenue BoM% - 9.3]0.000 1015351W0 - 9.3]0,000 10,535 WJ
Payed.
falx Tru Revenue 52.0.0.0.0 53.865,001 52.0A.000 55865.000
Bods
Towl G.. Bnnd.d p].555.000 1We25,W0 9.x0.= 10.sN,M 52.WWO N.865.0" t56905WO 16a16251NO
Dd
OIMr Lo.w. DeM
Compenaele] 6,890,221 4.2409&1 51010& 482.5% - - 5.198,314 4.703A71
Mess
CePllal lease. 17,523 23,637 519.169 41,4C - - 586.692 BB.N1
ReBrdl,p 12.NI,BM1 (2,123,857) (196.%5) (232,918) 02.6251 (68,237) (2.293.262) (2,705.812)
L uanm. PmmIuma8 1,4]]664,M4,218 105.57 117,631 (186,19.1 (169,568) 4414.751 4,302,081
DiewuMa
Tow! 0#n Lag T.. 7,121 NO 6,1118.982 966145 389.456 (201,319) (218.805) 7,6%.466 5368,611
OW
TWI f104.f56660 8168.823.,6]2 E 10.J36. 145.60923654 55 ]99661 --a 868195 SIfifi.791 .88 5131183811
13
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
The underlying credit ratings from both Moody's Investors Service and Standard and Poor's for the City's
General Obligation Bonds, Certificates of Obligation, Water and Sewer Revenue Bonds, Community
Development Corporation's Sales Tax Bonds and Economic Development Sales Tax Revenue Bonds are
shown below in Table 5. Additional information on the City's long-term debt can be found in Note 5.
Table 5
Bond Ratings
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The economic recovery in the North Central Texas area continues to be moderately strong for the City of
Allen. 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. In addition, the City conservatively manages its budget. The fiscal year 2013-2014 budget
reflects the commitment of the City Council and staff to provide services and facilities to our citizens while
maintaining a strong financial position.
The City revenues most impacted by a moderately strong economy are property taxes and sales taxes.
The property tax revenue source experienced growth due to new construction and reappraisal increases
of existing real property. For fiscal year 2013-2014, reappraisal values for existing real (residential and
commercial) properties increased 3.43% compared to FY2013, while valuations for existing business
personal property decreased .51%. There were no expiring tax abatements on commercial property that
would have increased taxable property valuation. New construction of residential and commercial
property resulted in an increase in valuation of 1.73%. The overall increase in valuation from all
categories was 4.65%; however, the property tax revenue increase was budgeted as 4.27% as a result of
lowering the tax rate two-tenths of one cent. Overall sales tax is expected to increase by about 4.7%. As
the City's sizable retail developments near capacity the rate of growth of sales tax is expected to increase
at a rate that is a combination of population growth and increases in prices for retail items.
Although the rate of residential growth has slowed, the City estimates issuance of 450 single family
permits in FY2014. The current population of 89,705 is expected to reach approximately 98,000 at build
out in the next four to six years.
The various infrastructure and operational needs of the City have resulted in the annual expenditure
budget increasing from $117.4 million in FY2008, to $174.319 million for FY2014 for all funds combined.
The cerfifed assessed property value for 2013-2014 equates to an overall increase of approximately
$3721 million (4.65%) from the preceding year. The FY2014 tax rate was set at $0.550 per $100
valuation. Of the total tax rate, $0.409121 is dedicated to operations and maintenance in the General
Fund, and $0.140879 is dedicated to general obligation debt service.
Ad valorem taxes are the General Fund's largest revenue source and will contribute $34.256 million or
42.4% of the fund's budgeted revenues in FY2014. 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 and continued population growth, the budget also
refiects a 4.7% increase in sales tax from the revised 2012-2013 budget
14
Moody's
Investors
Standard &
Service
Poor's
General Obligation Bonds
Aat
AAA
Certificates of Obligation
Aa1
AAA
Water & Sewer Revenue Bonds
Aa2
AAA
CDC Sales Tax Revenue Bonds
Al
EDC Sales Tax Revenue Bonds
Aa3
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The economic recovery in the North Central Texas area continues to be moderately strong for the City of
Allen. 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. In addition, the City conservatively manages its budget. The fiscal year 2013-2014 budget
reflects the commitment of the City Council and staff to provide services and facilities to our citizens while
maintaining a strong financial position.
The City revenues most impacted by a moderately strong economy are property taxes and sales taxes.
The property tax revenue source experienced growth due to new construction and reappraisal increases
of existing real property. For fiscal year 2013-2014, reappraisal values for existing real (residential and
commercial) properties increased 3.43% compared to FY2013, while valuations for existing business
personal property decreased .51%. There were no expiring tax abatements on commercial property that
would have increased taxable property valuation. New construction of residential and commercial
property resulted in an increase in valuation of 1.73%. The overall increase in valuation from all
categories was 4.65%; however, the property tax revenue increase was budgeted as 4.27% as a result of
lowering the tax rate two-tenths of one cent. Overall sales tax is expected to increase by about 4.7%. As
the City's sizable retail developments near capacity the rate of growth of sales tax is expected to increase
at a rate that is a combination of population growth and increases in prices for retail items.
Although the rate of residential growth has slowed, the City estimates issuance of 450 single family
permits in FY2014. The current population of 89,705 is expected to reach approximately 98,000 at build
out in the next four to six years.
The various infrastructure and operational needs of the City have resulted in the annual expenditure
budget increasing from $117.4 million in FY2008, to $174.319 million for FY2014 for all funds combined.
The cerfifed assessed property value for 2013-2014 equates to an overall increase of approximately
$3721 million (4.65%) from the preceding year. The FY2014 tax rate was set at $0.550 per $100
valuation. Of the total tax rate, $0.409121 is dedicated to operations and maintenance in the General
Fund, and $0.140879 is dedicated to general obligation debt service.
Ad valorem taxes are the General Fund's largest revenue source and will contribute $34.256 million or
42.4% of the fund's budgeted revenues in FY2014. 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 and continued population growth, the budget also
refiects a 4.7% increase in sales tax from the revised 2012-2013 budget
14
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
The General Fund ended 2012-2013 with an approximate increase of $383,000 as compared to the
revised budgeted fund balance. This brings the fund balance to an equivalent 75.133 days of operating
expenditures, which exceeds the amended estimate of 73.8 days, and is within the range of the City's
financial policy of 60 to 90 days. The 2013-2014 General Fund expenditure budget reflects a 3.6%
increase from the revised 2012-2013 budget. This is primarily due to adding over 8 fulltime equivalent
position throughout various departments, an increase of 10% for health and dental budgeted expenses,
implementation of a pay plan study recommendation for adjustments in employee pay ranges, and
continued increases in economic development incentives as two major retail developments generate
increased sales taxes pursuant to the development agreements. These changes will allow the City retain
staff, to meet its strategic goals, and continue its commitment to maintaining a high level of service to the
public.
In accordance with the City's water and sewer rate study, which was updated in 2012, the Water and
Sewer Fund budget anticipates a rate increase in February 2014 that ranges from 5.5% to 6.8% for a
combined water and sewer bill depending upon the customer class. The rate increase is necessary as
North Texas Municipal Water District proceeds with capital expansion plans that will increase the City's
costs associated with water and sewer service from the District. Also included in the FY2014 budget is
$1.87 million to cash finance water and sewer capital projects related to water lines, sewer lines, sewer lift
station maintenance, and pump station maintenance. The Water and Sewer Fund is expected to finish the
fiscal year 2014 with approximately $11.57 million in working capital reserves resulting in 123.7 days of
operating expenses in reserve, which is slightly greater than the City policy of 90 to 120 days. 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 and also provides reserves that can be used during drought related watering restrictions that would
have an impact on revenues.
The Solid Waste Fund represents a stable operational service and staff continues its educational
outreach programs through several key programs and events held throughout the year. Staff also
continues to seek grant funding for future cycles. The City successfully negotiated an extension to the
current contract with Community Waste Disposal (CWD), the City's solid waste provider. No residential or
commercial CPI solid waste fee increases are planned in 2014. There is an agreement to adjust the
variable fuel adjustment fee (VFAF) on commercial accounts to a higher fuel cost starting point, which is
beneficial to the City's commercial customers. The Solid Waste fund balance at the end of FY2014 is
expected to be $2.67 million which is approximately 148 operating days of reserve and is greater than the
City's policy of 90 to 120 days.
The Drainage Fund is supported by drainage fees on utility bills and development inspection fees. The
fund confinues to sustain a fund balance which supports drainage maintenance, mosquito abatement,
Texas Pollution Discharge Elimination System (TPDES), and capital improvement activities.
The City's golf course, formerly called Chase Oaks, was shut down in late 2011 for a complete
renovation. The newly redesigned course, renamed as The Courses at Watters Creek opened in January
2013 and exceeded expectations for revenues and was below budget for expenses. The completion of
the 33 holes has helped to improve the overall golf experience for the established players and create an
enthusiastic environment for new golfers of all ages. There is an 18 hole course, a 9 hole course, 6
additional holes for short iron play, new putting greens, and a lighted driving range that generated twice
as much revenue prior to the course renovation. The revenues also increased in the food and beverage
area as a new grill and menu were added. Budgeted support from the General Fund was provided to the
Golf Course, but was primarily necessary due to additional costs associated with final preparations to
opening the course. The City and the various community leaders attended the grand opening ceremony
in January 2013.
15
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(UNAUDITED)
For 2013-2014, the Risk Management Fund reflects a rise in health care costs, due largely to the
combination of an increase in claims for retired employees, changes in federally mandated health care
requirements, a maturing workforce, and inflationary pressures related to health care costs. In FY 2013-
2014, employees will see a 10% increase in their health insurance premiums, and the City will incur a
10% increase as well. This will allow the City to continue to contribute 79% of the total cost of employee
health insurance premiums with the employees making up the remaining 21%. For the fourth year,
$325,000 is budgeted to be put into a trust fund for other post employment benefits. Worker's
compensation premiums will remain relatively flat since the Risk Administrator has increased training to
address areas that had higher workers compensation claims activity in the past. Property and liability
insurance rates for fiscal year 2014 are expected to remain relatively flat as compared to fiscal year 2013
since there are no significant additions of newly insured property. Most of the additional property was
added in 2011 and 2012. The Risk Fund continues to be in goad financial condition.
The City of Allen's budget continues to be positively impacted by moderately strong growth and by
conservative fiscal management. The 2013-2014 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.
Request 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)509-0626.
16
BASIC FINANCIAL STATEMENTS
CITY OFALLEN
�EFIRsr RESPECT INTEGRITY DELIVER EXCEL
PEEP
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
EXHIBIT 1
PRIMARY GOVERNMENT
GOVERNMENTAL
BUSINESS -TYPE
COMPONENT
ACTIVITIES
ACTIVITIES
TOTAL
UNITS
ASSETS
Cash and cash equivalents
$
30,200,763
$
14,261,859
$
44,462,622
$ 5,078,138
Investments
35,260,666
15,858,141
51,118,807
7,235,362
Receivables (net of allowance
for uncollectibles)
5,800,962
6,320,690
12,121,652
2,767,678
Internal balances
(1,153,522)
1,153,522
-
-
Prepaid items and other assets
289,339
11,050
300,389
6,298
Inventories
-
47,311
47,311
-
Restricted cash and cash equivalents
-
1,696,350
1,696,350
1,853,722
Capital assets:
Non -depreciable
142,302,903
5,223,462
147,526,365
4,532,403
Depreciable (net of depreciation)
372,071,996
104,147,065
476,219,061
948,782
Deferred charges
1,259,856
112,830
1,372,686
809,577
TOTAL ASSETS
$
586,032,963
$
148,832,280
$
734,865,243
$ 23,231,960
LIABILITIES
Accounts payable
$
3,866,752
$
1,495,682
$
5,362,434
$ 119,477
Accrued liabilities
2,690,595
177,114
2,867,709
11,375
Accrued interest payable
485,069
126,940
611,909
217,773
Customerdeposits
-
1,596,311
1,596,311
-
Unearned revenue
53,164
-
53,164
Retainage payable
76,156
46,253
122,411
-
Nonrument liabilities:
Due within one year
11,234,763
1,793,339
13,028,102
1,935,000
Due in more than one year
93,658,074
8,542,806
102,200,880
49,863,681
TOTAL LIABILITIES
$
112,064,575
$
13,778,345
$
125,842,920
$ 52,147,306
NET POSITION
Net investment In capital assets
$
421,936,296
$
99,544,466
$
521,480,762
$ 5,481,185
Restricted for:
Debt service
428,207
364,510
792,717
1,635,949
Capital projects
19,089,780
-
19,089,780
-
Tourlsm
2,808,030
-
2,808,030
-
Park acquisition and development
1,607,822
-
1,607,822
-
State and federal grants
588,649
-
568,649
-
TazlncrementFinancing
1,221,875
-
1,221,875
-
Other purposes
766,868
-
766,868
-
Unrestricted
25,520,861
35,144,959
60,665,820
(36,032,480)
TOTAL NET POSITION
$
473,968,388
$
135,053,935
$
609,022,323
$ (28,915,346)
The Notes to Financial Statements are
an integral part of this statement.
17
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30.2013
Program Revenues
The Nates to Financial Slateove is are
an integral pan of this statement
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 POSITION
NET POSITION, beginning of year
NET POSITION, end of year
18
Charges for
Operating Grants
Capital Grants
Expenses
Services
and Contributions
and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental Activities:
General government
$ 22,271,050
$ 675,196
$ -
$ -
Public safety
28,935,911
1,541,985
737,486
-
Public works
17,807,948
196,685
-
14,737,780
Culture and recreation
29,983,224
8,443.286
1,259,942
-
Community development
2,230,968
2,220,438
70,054
-
Interest on long-term debt
4,067,303
Total governmental activities
105.296.404
13,077.590
2.067.482
14.737.780
Business -type Activities:
Water and sewer
29,160,281
30,808,084
1,000,000
3,788,300
Solid waste
5.495,654
6,114,951
-
-
Dreinage
910,179
1,352,671
-
-
Golfcourse
2.483.467
1,924.706
Total business -type activ6ies
38.049,581
40.200.412
1,000.000
3.788.300
TOTAL PRIMARY GOVERNMENT
=L=j43.345.985
$ 53.278.002
$ 3.067.482
_ $ 18.526.080
COMPONENT UNITS:
Allen Economic Development Corporation
$ 5,115,693
$ -
$ -
$ -
AllenCommunityDevelopmentCorporation
4.262.407
TOTAL COMPONENT UNITS
$ 9.378.100
_$
$
$
The Nates to Financial Slateove is are
an integral pan of this statement
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 POSITION
NET POSITION, beginning of year
NET POSITION, end of year
18
EXHIBIT 2
Net (Expense) Revenue and
Changes In Net Position
Primary Government
Govemmental Business -Type COMPONENT
Activities Activities TOTAL UNITS
$ (21,595,854) $ - $ (21,595,854) $
(26,656,440) - (26,656,440)
(2,873,483) - (2,873,483)
(20,279,996) - (20,279,996)
59,524 - 59,524
(4,067,303) (4,067,303)
(75,413,552) (75,413,552)
6,436103 6,436,103 -
619,297 619,297 -
442,492 442,492 -
(558,761) (558.761)
6,939.131 6,939,131
$ !75.413.5521 $ 6.939.131 $ (68.474.421) $
$ - $ - $ - $ (5,115,693)
(4,262,407)
$ $ $ $ (9.378.100)
$ 44,474,745
$ -
$ 44,474,745
$ -
16,289,761
-
16,289,761
15,986,074
6,302,018
-
6,302,018
-
1,350,286
-
1,350,286
-
1,389,503
-
1,389,503
-
177,495
70,382
247,877
34,181
92,401
-
92,401-
2,079,082
385,842
2,464,924
1,635
5,361,830
(5,361.830)
77,517,121
(4,905.606)
72,811,515
16,021,890
2,103,569
2,033,525
4,137,094
6,643,790
471.864.819
133.020,410
604,885,229
(35.559.136)
$ 473.968.388
$ 135.053.935
=L=222
$ (28.915.3/61
19
CITY OF ALLEN, TEXAS
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30.2013
The Notes to Financial Statements are
an integral Pert of this statement.
20
GENERAL
DEBT
CMITAL
GENERAL
SERVICE
PROJECTS
A55ET5
Cash and cash equivalents
$
7,1337,298
$
899,350
$ 8,599,911
Investments
8.328,505
-
10,883,465
Receivables, nM of allowances for
unwllectibles:
Ad valorem lazes
31,378
11,428
-
Salesholes
2,724,625
-
-
AccountsrecinaNe
-
-
-
Accmetlinterest
41,199
2,498
57,758
011ier
2,357,432
-
-
Specialassessments
-
-
187,557
Prepaid items
2,098
TOTAL ASSETS
$
21,125,535
$
913,276
$ 19,719,891
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
$
3,202,139
$
-
E 71,925
Accrued liabilities
1,337,903
-
521.398
Retainage payable
-
-
3'590
Detained revenue
52,841
11,428
TOTAL LIABILITIES
4,592,883
11,428
82.911
FUND BALANCES
Nonspentlable
Prepaid mine
2,098
-
-
Restrictetl
Debt service
-
901,848
-
Capital Projects
-
-
19,089780
Tounsm
_
Asset forfeiture
-
-
-
State and federal granis
-
-
-
Park occupation and development
-
-
-
Taxincrementfinancingagreement
-
Court technology
25,739
-
-
Jwenllecasemanager
27,804
-
-
PEG fees
45'910
-
-
Photo red light enforcement
0.554
-
-
Chiklsaferyfees
10'105
-
-
Camaterytnat
55841
-
-
Assgned
Generalprvamment
490,727
-
Public safety
37,872
-
-
Publicxerks
76,866
-
-
Culture and reveation
237,273
-
-
Communalydevelopment
9,026
-
-
Unassgned
14,952,037
TOTAL FUND BALANCES
16.532,652
9011848
19,089,780
TOTAL LIABILITIES AND FUND BALANCES
$
21,125,535
E
913,2)fi
$ 19,719,691
The Notes to Financial Statements are
an integral Pert of this statement.
20
EXHIBIT 3
GENERAL OTHER TOTAL
OBLIGATION GOVERNMENTAL GOVERNMENTAL
BOND FUNDS FUNDS
E 3.242,695 $ 3,135,739 $ 23,505,993
4.742,963 3,097,540 27.052,473
42.806
2.724.625
- 298,918 298,916
25,171 16,439 146,065
2.357. 3
187,557
2,098
$ 8,010,829 $ 6,548,634 $ 56,317,965
8 205,248 $ 123,651 $ 3,602,963
18,806 1,878,185
39,588 - 76,150
31,701 95.970
814,816 174,238 5,653,276
490,727
37,672
76,886
237,273
9,026
14.952.037
7,766,013 6,374.398 W,664,609
$ 8.010,829 $ 6,54Q634 $ 56.317,985
21
2.090
901,848
7,766,013 -
26,855,793
- 2,808,030
2,808,030
- 148,020
148,020
- 588,649
588,649
- 1,607.822
1,607,822
- 1.221,875
1,221,875
25,739
27.804
468,910
40,554
108,105
55.841
490,727
37,672
76,886
237,273
9,026
14.952.037
7,766,013 6,374.398 W,664,609
$ 8.010,829 $ 6,54Q634 $ 56.317,985
21
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
EXHIBIT 4
Total fund balances - governmental funds
$ 50,664,689
Amounts reported for governmental activities in the statement of net position
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.
514,374,899
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.
1,259,856
Funds comprising the net other post employment benefit asset are not current
financial resources and therefore are not reported in the governmental funds
balance sheet.
114,161
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.
(485,069)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and feet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business -type activities ($1,153,522) and to capital assets ($7,078,459).
12,889,883
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.
42,806
Long-term Ilabilifies, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
(104,892,837)
Net position of governmental activities
$ 473,968,388
The Note. to Rm,rcial Statements are
an integral part of this statement.
22
CITY oFALLEN
IEFIRST RESPECT INTEGRITY DELIVER EXCEL
PEpP
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
GENERAL
DEBT CAPITAL
The Notes to Financial Statements are
an integral Pan M this statement.
23
GENERAL
SERVICE
PROJECTS
REVENUES
Ad valorem taxes, penalties and interest
$ 32,432,416
$ 11,748,992
$
Franchise taxes
6,302,018
-
-
Municipalsalestax
15,900,029
-
-
Licenses, permits and fees
1,939,426
-
-
Chargesforservices
10,301,649
-
322,321
Fines
1,402,725
-
-
GiRs and contributions
829,376
-
277,852
Hotel / motel fees
-
-
-
Intergovernmental
11,826
-
4,440,385
Investment earnings
90,093
25,809
30,339
Miscellaneous
1,852,171
617,336
Total revenues
71,061,729
11,774,801
5,688,233
EXPENDITURES
Current
General government
19,745,780
-
1,092,911
Public safety
27,979,103
-
-
Public mrks
3,304,507
-
-
Culture and recreation
19,965,694
-
Community development
1,962,615
-
-
Capital outlay
-
-
3,717,755
Debt service:
Principal retirement
9,914
7,955,000
-
Interest and fiscal charges
166
3,955,473
Total expenditures
72,967,779
11,910,473
4,810,666
Excess (deficiency) of revenues
over (under) expenditures
(1,906,050)
(135,672)
877,567
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
Premium on bonds issued
-
-
-
Transfersin
5,357,270
500,000
3,453,992
Transfers out
(3,720,968)
-
(322,232)
Proceeds from sale of capital assets
16,350
-
Total other financing sources (uses)
1,652,652
500,000
3,131,760
NET CHANGE IN FUND BALANCES
(253,398)
364,328
4,009,327
FUND BALANCES, BEGINNING OF YEAR
16,786,050
537,520
15,080,453
FUND BALANCES, END OF YEAR
$ 16,532,652
$ 901,848
$ 19,089,780
The Notes to Financial Statements are
an integral Pan M this statement.
23
EXHIBIT 5
GENERAL
OTHER
TOTAL
OBLIGATION
GOVERNMENTAL
GOVERNMENTAL
BOND
FUNDS
FUNDS
S -
$ 543,853
$ 44,725,261
-
-6,302.018
2,211,253
-
389,732
16,289,761
-
355,529
2,294,955
-
-
10,623,970
-
-
1,402,725
-
215,0 00
1,322,228
-
1,350,286
1,350,286
-
814,815
5,267,026
(10,984)
9,347
144,604
350,071
201,903
2,671,410
(10,984)
3,880,465
92,394,244
111,357
835,629
21,785,677
137,455
201,045
28,317,603
750,993
-
4,055,500
-
898,446
20,864,140
-
248,638
2,211,253
1,965,685
440,346
6,123,786
-
-
7,964,914
3,955,639
2,965,490
2,624,104
95,278,512
(2,976,474)
1,256,361
(2,884,268)
5,065,000
-
5,065,000
350,071
-
350,071
240,416
46,509
9,598,187
(262,610)
(265,416)
(4,571,226)
6,938
23,288
5,392,877
(211,969)
10,465,320
2,416,403
1,044,392
7,581,052
5,349,610
5,330,004
43,083,637
$ 7,766,013 $
6,374,396 $
50,664,689
24
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, 2013
EXHIBIT 6
Net change in fund balances- total governmental funds
$ 7,581,052
Amounts reported for governmental activities in the statement of activities
are different because:
2,899,914
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.
6,507,169
Governmental funds do not recognize contributed capital assets. 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.
9,774,175
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
11,028
expense is not reported as expenditures in the governmental funds.
(25,553,999)
The proceeds from issuance of long-term debt, e.g. bonds ($5,065,000), provides
current financial resources to governmental funds, while the payment of the principal
of long-term debt ($7,964,914) consumes the current financial resources of
governmental funds.
2,899,914
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 govemmenl-wide financial statements.
(472,929)
Current year changes in long -tens liabilities for compensated absences and the pension
obligation, and current year changes in the opeb asset do not require the use of
current financial resources and, therefore, are not reported in governmental funds.
(569,273)
Current year changes in accmed interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
11,028
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net operating and
non-operating income and transfers of the internal service funds is reported with
governmental activities net of amounts allocated to business -type activities.
2,200,939
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.
(23,991)
Certain revenues in the government -wide statement of activities that do not
provide wnent financial resources are not reported as revenue in the
governmental funds.
(250,516)
Change in net position of governmental activities
$ 2,103,569
The Notes to Financial Statements are
an integral part of this statement
25
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
EXHIBIT 7
CURRENT W&IIDEs
BUSINESS -TYPE ACTNrtIES
Aaounta payable
ENTERPRISE FUNDS
S 31.73
S 39,M
GO9ERNINi
S 1,43,682 B
257M
Because! Insiders
103.3el
25.960
B,iO4
ACTI9n1ES
177,111
WATER AND
Rod.
46.253
DOLE
INTERNAL SER9ICE
`819
SEWER
WRSTE
DRAINAGE
COURSE
TOTK
FUNDS
449 ET9
Inwmd bN non talxrlW daima
-
-
-
CURRENT ASSETS
012,410
Reyatle fors reaMCIM asse6
Cnbend®Mslulvekmin
E 11,790.786
SIA17.775
S 01.691
$ 591.607
S 14,281,859
S Bell
InsMents
ve
13989,9&5
1.41
407,121
-
15,89,141
8,20,193
Rappood lea, neldalkrvnnw for uiMlwAbles
-
Amuediwassoapapble
128,&0
-
-
spar
5,582,827
312,03
Tens
2.8E2
5.978.]84
23130
Approved Mmad
74,245
7,754
2.161
-
61.163
43,91
Mer
/812.139
29.260
-
-
29$68
1.078,13
venter s
47,311
-
-
47.311
Propend Nems
0.0]1.951
-
-
11,050
11.950
93,080
ReeM1idad queen aM®M eyuMbnb
1..Be.99
43493
1.898.360
-
Tobl cumin..
33,191.301
3,19,923
81L895
805,479
38msi
15,119.601
NONCURREWMSET9
0.32,885
2,970
2.514
454,437
852Nd
CAPITAL "SETS
12.me024
113,353
Sal
34,9]9
131ii43aS
1,076.199
Land
407292-
-
-
4,072,892
Corewemor In 'Ween
1,19.90
-
385.729
-
1119,560
1.510,181
.a, lmpmvenenh
36`,510
-
494132
-
496.132
-
T-m.lanke and pump ebWne
170183p35
3N3570
38]08
-
170.835.836
14013/05
tors a
841,143
12,923
31.378
S 23.870
8851414
10,543,8]8
MCTlnery and equipment
1.802.049&392
1301.
91
5,978.577
2.088.592
Furniture and ntlures
11,114
10.881
22.DW
Tonal upOal assds
101,613,403
21.315
99,193
946.3p7
18314411250
14,122734
Le»eaunubled dpretlelhn
173,070.0451
121.0151
1572.4841
1399,1771
04,070.7311
(7.041
Capnhl aasele, net d aLamulaled MgectLL
160,435.38
270
30929
548,170
109.370.527
71,81.9
DEFERRED CN GES
Bond lauance man, nH of emMUallon
112830
112830
Tonal a-.-nl weab
1W,SIa1B8
270
384II9
519.90
109483.357
1,078,159
TOTAL ASSETS
S 141,739,492
S 3 157,193
$ 1.3Y7.1'U
S 1,151819
s 117,678758
$ 22198,083
uA9111TES AND NETAS3ET3
CURRENT W&IIDEs
Aaounta payable
S 1.274,780
S 31.73
S 39,M
S 149,381
S 1,43,682 B
257M
Because! Insiders
103.3el
25.960
B,iO4
59,103
177,111
8600
Retznaso payai
46.253
`819
-
A-.peampensatedaMenw a-quarand
312Ent
9,880
33%3
75.358
0]4.]52
Inwmd bN non talxrlW daima
-
-
-
-
012,410
Reyatle fors reaMCIM asse6
Rerenue bends notable current
1.205.000
-
111,5,020
Cpral leapespample-ctranl
-
-
113.97
113,587
-
Amuediwassoapapble
128,&0
-
-
128.840-
Cusumardopwd,moueble
1,93.181
23130
1153,311
Total eureand labllli
/812.139
1101361
82.475
W3.512
5235.538
1.078,13
NONCURRENT LUBILTIES
Revenue bonds reason
0.0]1.951
-
-
0.0)1 ,891
-
Capballeases payabb
43493
`35.583
-
Appappe mpensaledebsensee
to.W4
2,970
2514
t0.8:N
as=
Taal nancurrnrt llabnMaa
0.32,885
2,970
2.514
454,437
852Nd
TOTAL WBILITIES
12.me024
113,353
Sal
34,9]9
131ii43aS
1,076.199
NET P03010N
Nelle"Bassmnaplblaa.
84156`67
270
385.729
-
3,5444N
7,078.09
RBaWaed br rnmue Mid pepped and lMemd
36`,510
361510
Umrestdticd
29,191491
3N3570
38]08
YA.B70
33,991,137
14013/05
TOTAL NET POSONIN
S 129,MANS
$ 3343 40
$ 1242435
S 23.870
s 133.eW,`13 S
21.121.884
The Nates to Financial Statements are
an integral part of this statement.
26
CITY OF ALLEN, TEXAS EXHIBIT 8
RECONCILIATION OF THE STATEMENT OF NET POSITION
OF PROPRIETARY FUNDS TO THE
GOVERNMENT — WIDE STATEMENT OF NET POSITION
AS OF SEPTEMBER 30, 2013
Amounts reported for business -type activities in the statement of net
position are different because:
Total net position per statement of net assets $ 133,900,413
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 assets and liabilities of internal service funds are included in the governmental
activities in the govemment-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 1,153,522
Total net position of business -type activities
The Notes to Financial Statements are
an integml part ot this statement
27
$ 135,053,935
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
EXHIBIT 9
BUSINESS -TYPE ACTW TIES
ENTERPRISE FUNDS
GOVERNMENTAL
ACTIVITIES
WATERAND
SOLID
GOLF
INTERNAL
SEWER
WASTE
DRAINAGE
COURSE
TOTAL
SERVICEFUNDS
OPERATING REVENUES
Charges for sales and services',
Water sales
$ 17,805,137
$ -
$ -
11 -
$ 9,805.137
$ -
SeserCMrges
12,215,705
-
-
-
12,215,785
-
ConneUionlees
179,852
-
-
179.552
-
Cape,callaclbna
6,114,951
8,114,951
Service charges
607,310
-
53,109
1,924,706
2,585,125
11,032,858
Drainage tees
-
12981562
-
129,582
-
GiRsandcontdbubons
1.00'000
1,000,000
Miscellaneous
322,615
0,983
2159
12,724
355,812
2.134.159
Total operating revenues
32,130,899
6,182,934
1,35'191
1,937,430
41,588254
13,967,017
OPERATING EXPENSES
Personn0ram.
4,213,531
444411
4M,276
1,39,50
8.49,759
5621050
Contractual services
10.145,477
4,942,657
167,465
744,427
23.980.09
10.111,808
Maimenanve
99,122
2,353
212,142
681145
581]62
-
Supplies
25'503
11,807
53,502
29,508
553,300
Connotation
51816,795
540
37,057
88.212
5,99,604
1,442,59
Other
145,1%
93,996
S,7S7
84,834
309,562
Tatal operating expenses
28.378,713
5,491
910,179
2,403,467
37,768,013
12,116,378
OPERATING INCOME (LOSS)
31251,988
687,280
445,012
(518,037)
3,818,241
1,850,830
NON-OPERATING REVENUES (EXPENSES)
Investment earnings (Iosses)
68,89
4,221
(1,553)
(1,115)
70,382
32.891
Infemst expense
(448,04)
-
-
-
(448,04)
Gain an disposal of pe.1 assets
10.446
Total nonopimting revenues (expenses)
(377,645)
4,91
(1.5531
(1,115)
(376,002)
18'337
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
2,874,341
671,501
4431159
(847,152)
3.442,149
2.030.976
CAPITAL CONTRIBUTIONS AND TRANSFERS
Do-spmantfees
1,320,089
-
-
-
1,320,089
-
Cap9alcentdbulions
2.460.211
-
-
2,460,211
Transfers from atter funs
33,092
633,815
667,507
334,869
Transfers to.Mer funds
14.686,025)
(701,591
(838,781)
(8,029,337)
Total capital contributions and tmnsfere
(864,033)
po4591
(838]84)
833,815
(1,573,530)
334.669
CHANGE IN NET POSITION
2,010,308
(33,027)
(195.325)
8'883
1,8881819
2,365,845
NET POSITION, BEGINNING OF YEAR
127,004,160
3,376,867
1437.760
213,007
132,031]94
18,756,019
NET POSITION, END OF YEAR
$19,014,488
$3.343.840
$1.242435
S 299,670
$133,900,413
$ 21,121,864
The Notes m Financial Statemerbs are
an integral part of Nis statement.
28
CITY OF ALLEN, TEXAS EXHIBIT 10
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION OF PROPRIETARY FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Amounts reported for business -type activities in the statement of activities
are different because:
Net change In fund net position. total proprietary funds $ 1,868,619
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 net expenses of certain activities of internal service funds is allocated to
business -type activities. 164,906
Change in net position of business -type activities $ 2,033,525
The Notes to Financial Statements are
an integral part of this statement.
29
CITY OF ALLEN, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
EXHIBIT 11
CASH FLOWS FROM NONCA➢RA.
BUS INESS-TYPE ACTMTIES
FINANCING ACTIVITIES
EWMPRISEFUNDS
GOVERNMENTAL
Thans.rs In trorn hor funds
33882
ACTNRIES
all
WATERAND
SOLID
(4,885026)
GOLF
".71
INTERNAL
(8.029,337)
SEWER
WASTE
DRAUNME
MURSE
TOTAL
SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTWIES
331489
CASH FLOWS FROM CA MD
CazM1 re.".1....mars
8 33442575
$ 6,06 tIXl
8 1,314.083
8 1,934.8%
{ 42.817.616
$
Cash recelvaE trmnlm¢ timawM OMx MM¢
foone,alr
Paid on wxiw hand seasonalm&Inu
(1,185.4401
-
-
f4,Ot2pa
chad"welto—wayee¢1w¢hems
(AHR.69Sj
(438.182)
Hi
(1,]18,198)
0.3"!.182)
1382,0301
Cash,slorpMaenOwMws
(17.673.920)
15,239.3151
(1
(969,029)
(24,3W,M)
shass1T)
OxfpadercNlme
(1.11
Capital anae36yment
_
_
-
1],818.670)
NHaam P.eMedit'houh.),garta lNtlea
11,5,8.95]
389,608
81903]00
rya'sain)
12,1]4498
S.,M5n
CASH FLOWS FROM NONCA➢RA.
FINANCING ACTIVITIES
Thans.rs In trorn hor funds
33882
633,815
all
351,689
Tan¢lers wl to other NnEs
(4,885026)
0678181
".71
(8.029,337)
Net cash pl de6 q(used al non<ylm 6nmclq ecWSls
(4.652,333)
901
(676.]611
634815
(51361,830)
331489
CASH FLOWS FROM CA MD
ELATED FINANCING ACTIVITIES
foone,alr
Paid on wxiw hand seasonalm&Inu
(1,185.4401
-
-
-
11p850W1
-
nsan,1.lai0mlmthes— .
Annisiton
(480,8591
(444671
,8
ane.ltewcum m®NMLVNa
Hshh e21
-
-
0."" 1
(1.11
Capital anae36yment
_
_
-
(68.212)
136.2191
Pmceetls lmm Bale stooped s¢se6
-
-
-
147.446
ConmOWlan¢ iron association
1.320.089
;3ID,089
Net cealr used In aepWl and
MNN 6nanaled a o8N8n
(2,132,825)
1892121
(2201p35)
(1.725330)
CASH FLOWS FROM INVESTING ACTIVITIES
Fumeese of Investment securtas
(.1,21S)
(261.213)
(1534121
crucial boys sale and maturNes N Investment waMle¢
60,014
203.395
127
868.526
US.319
stxest m lressMlay.
Hall
47211
1,581
Mo
171.220
58.951
MAI cam proNded by (used ml handled Mobadw
1..0951
66795
201.M
49
778.533
132AII
NET cN GE IN CASH Mo CAM EQ%d`ALENTB
Assisi06
353,313
95,882
213,.3
5,8....
1 d
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
57WA3o
1,674462
S....
377,674
ithabo 45
4,M7.593
CASH AND CASH EOUIVAIENTS. END OF YEAR
613.467.136
51417.775
{ 81.691
$ 591.807
S 15.958,209
$ 9.671!0
RECONCNIATON OF GPER,STNG INCOME LASS)
TO NET CASH PROVIDED BY OPEWING ACTIVITIES
Net spatial Income (l.a)
S SE1,9.
S .7280
S 445,012
$ 15..0371
S 3,816241
5 1.950.639
Adjustments to .canoe opea0ng Income Oox)
to net cash ptooded 5y (used In) oPoal.9 estate,
DepxlaOm and...,.a.,.8107
5,.3.29]
us
37,057
Cal
5.959.108
1,442544
Chan9eln ...Is and tiadl.es
Accounts remlvaOM
1.311.844
003,016)
18.089
(2,572)
193.177
-
pnmmcelnda¢
-
8,185
-
8,165
Pnpads
-
-
all
93,.2
..BW
Insentmry
981
12037
13.676
,-ants payee!.
1.115,258
(181.81
10,944
It.WB
.1p.
(1(4.929)
societ9e payable
(42,39])
-
Hi
-
Aca..niclmes
16pm
0.5.1
5.
15,071
competrca.d a0senms
1,803833
999
7.170
low
4151
Just, ll
49.048
49,08
Tout adjust....
8.344.971
(244,874)
11,8.
103.8]0
%so n SS
1.334.8
Net cash pralladEy(us" an) operating avl Mes
Sfl,AS.i
$ S..B.
{ 519.767
f 1352.3671
$12,134,8.
{ 3.165%17
NON{ASH SHRESTING ACTNITIES:
Caused. mhelsrvaluecllnn¢Mence
S (57,.0)
5
S
$
$ (57.850)
6
Haiti FINANCING ACTIVITIES
ConthSullon¢dlcashad smb6wndewlopea
$ 2465211
S
S
$
It 2411S111
S
Rxmclllatlon o tl l wh. dH sMmmtenel weft
Calm and cash saboolmts - current
S 11,M9.7W
S IA17 T5
$ 481.991
5 591,W7
{ 14.261.859
S 5.4.720
NB 0 Wish and Wish pdrativN
1015350
1.898.3.
CASH MO CAM EWIVAWW9. ENO OF YEAR
$ 13.487.136
S 1.417,775
S 491,891
$ 591.10]
S 15.9.,209
S mail_
The NDles t0 Financial Statements am
an integral pert M this statement.
30
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
COMPONENT UNITS
SEPTEMBER 30,2013
4,324,525
-
EXHIBIT 12
Land improvements
ALLEN
ALLEN
207,878
Furniture and OXtures
ECONOMIC
COMMUNITY
66,075
Improvements other than buildings
DEVELOPMENT
DEVELOPMENT
3,128,689
Total capital assets
CORPORATION
CORPORATION
TOTALS
ASSETS
(2,245,982)
(2,245,982)
CURRENTASSETS
5,481,185
5,481,185
Cash and cash equivalents
$ 3,177,502
$ 1,900,636
$ 5,078,138
Investments
4,583,427
2,651,935
7,235,362
Sales tax receivable
1,362,313
1,362,313
2,724,626
Accounts receivable
2,327
2,327
4,654
Accrued interest receivable
24,324
14,074
38,398
Prepaid items
6,298
-
6,298
Restricted cash and cash equivalents
752,345
1,101,377
1,853,722
Total currant assets
9,908,536
7,032,662
16,941,198
CAPITAL ASSETS
Land
4,324,525
-
4,324,525
Land improvements
207,878
-
207,878
Furniture and OXtures
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
(2,245,982)
(2,245,982)
Capital assets, net of accumulated depreciation
5,481,185
5,481,185
DEFERRED CHARGES
Bond issuance costs, net of amortization
325,768
483,809
809,577
Total noncurrent assets
5,806,953
483,809
6,290,762
TOTAL ASSETS
$ 15,715,489
$ 7,516,471
$ 23,231,960
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$ 12,711
$ 106,766
$ 119,477
Accrued interest payable
62,537
155,236
217,773
Accrued and other liabilities
11,375
-
11,375
Revenue bonds payable - current
845,000
1,090,000
1,935,000
Total current liabilities
931,623
1,352,002
2,283,625
NONCURRENT LIABILITIES
Revenue bonds payable (net of unamonized
discounts and defamed amount on refunding)
17,421,095
32,442,586
49,863,681
Total noncurrent liabilities
17,421,095
32,442,586
49,863,681
TOTAL LIABILITIES
18,352,718
33,794,588
52,147,306
NET POSITION
Investment in capital assets
5,481,185
-
5,481,185
Restricted for debt service
689,808
946,141
1,635,949
Unrestricted
(8,808,222)
(27,224,258)
(36,032,480)
TOTAL NET POSITION
$ (2,637,229)
$ (2fi,278,117)
E (28,915,346)
The Notes to Finandal Statements are
an integral pan of this statement
31
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
EXHIBIT 13
The Nates to Financial Statements am
an integral part Of this statement.
General revenues
Not(&sense) Revenue and
Baba taxes
$ 7.993,031
Pnmen Revenues
Changes in Net Position
Interest on invontrom
32,351
1,827
34.101
COMPONENT UNRB
1.8%
1.8%
ALLEN
ALLEN
Total9eneral nvenuea
Operating
ECONOMIC
COMMUNITY
Chargee for Grinbane
DEVELOPMENT
DEVELOPMENT
3,]32,451
Eaeenaes
Services Contributions
CORPORATION
CORPORATION TOTALS
Func4oNPmgnm ANvil'res
NET POSITION, and of year
COMPONENT UNITS
E 126.278.117)S
(28.915.3461
Mien Economic
Development Odlnrefun
$ 5,115,893
E $
E (5.115,093)
S - E (5,115,893)
Mien Community
Development Comcutubon
4,262,407
(4.262,40]) (4.M2,07)
TOTAL COMPONENT UNITS8
9.3]0.100
$ $
E 15.1156931
L_.14,28240]1 E (9.3]0.1001
The Nates to Financial Statements am
an integral part Of this statement.
General revenues
Baba taxes
$ 7.993,031
S ].093.03]
S 15.988,074
Interest on invontrom
32,351
1,827
34.101
Miscellaneous
1.8%
1.8%
Total9eneral nvenuea
EATON
T.W4,%4
16.021.890
CHANGE IN NET POSITION
2,911,333
3,]32,451
8,843,790
NET POSITION, beginning of year
(5.540,582)
(30.010.5]0
(35.559.136)
NET POSITION, and of year
S R.53T3281
E 126.278.117)S
(28.915.3461
32
CITYOFALLEN
PEppl
EFIR$T RESPECT INTEGRITY DELIVER EXCEL
NOTES TO FINANCIAL STATEMENTS
CITY OF
AF
lE FIRST RESPECT INTEGRITY DELIVER EXCEL
PEpP
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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), and the American Institute of Certified
Public Accountants in the publication entitled Audits of State and Local Governmental Units. 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 speck 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 R is
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval by the primary government. 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.
33
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Financial Reporting Entity—Continued
The members of both the AEDC's and ACDC's Boards of Directors am 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 discretely presented as governmental
fund types and do not issue separate financial statements.
Basis of Presentation
The govemment-wide financial statements (i.e., the statement of net position 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 properly 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 nonmajor
funds are aggregated and presented in a single column.
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.
34
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
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 Generel 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
accmal basis of accounting. The accounting objectives are determinations of net income,
financial position and cash flow. All assets and liabilifies are included on the Statement of Net
Position. 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 cellection 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.
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.
35
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED
Basis of Presentation — Continued
Golf Course Fund -
The Golf Course Fund is used to account for activities associated with the operations of The
Courses at Watters Creek 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 with 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 depreciation 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.
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 position and the operating statements present
increases (revenues) and decreases (expenses) in total net position. 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.
M
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Measurement Focus and Basis of Accounting — Continued
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 liabilities 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 cash 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 cash and time
deposit amounts. 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,
appropnations lapse at fiscal year end. Encumbrances are reported as assigned fund balance
because they do not constitute expenditures or liabilities.
37
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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 2012 levy was
based is $8,001,298,212. 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 govemmental services including the payment of principal and interest on long -tern debt
for the year ended September 30, 2013 was $0.552 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 maintenance and operations tax rate, increased by 8%
excluding other contractual obligations, adjusted for new improvements, plus the calculated debt
tax rate is less than the proposed city tax rate, then qualified voters of the City may petition for an
election to determine whether to limit the tax rate to no more than the rollback tax rate.
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 expenditureslexpenses in the fund reimbursed. All other
interfund 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,
2013, ACDC contributed $321,336 to the General Fund which includes funds for administrative
costs and for the Allen U.S.A. Celebration, and AEDC contributed $93,501 to the General Fund
for administrative costs. These revenues were reflected as grants and contributions for the
primary government in the government -wide statement of activities.
38
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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. Prepaid items are reported as nonspendable fund balance 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 capitalized 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 forth of user payments are made by
City departments to the Replacement Fund to provide for future acquisitions and replacements.
0
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Compensated Absences
City employees earn vacation and sick leave, which may either be taken or accumulated, up to
certain amounts, until paid upon retirement or termination. Upon termination or retirement, an
employee is reimbursed up to a maximum number of hours of vacation pay and sick leave based
upon the years of service. Accumulated vacation and sick leave is accrued when incurred in the
government -wide, proprietary, and fiduciary fund financial statements.
Net Position
Net position represents the difference between assets, liabilities, and deferred inflows and
outflows. Net investment in capital assets 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 position
is 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.
Fund Balance
Fund balance classifications, under GASB 54 are nonspendable, restricted, committed, assigned,
and unassigned. These classifications reflect not only the nature of funds, but also provide clarity
to the level of restriction placed upon fund balance. Fund balance can have different levels of
constraint, such as external versus internal compliance requirements. Unassigned fund balance
is a residual classification within the General Fund. The General Fund should be the only fund
that reports a positive unassigned balance. In all other funds, unassigned is limited to negative
residual fund balance.
The City classifies governmental fund balances as follows:
Nonspendable -- includes amounts that cannot be spent because they are either not in spendable
form, or, for legal or contractual reasons, must be kept intact. This classification includes
inventories, prepaid items and long term receivables.
Restricted -- includes fund balance amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts restricted due to constitutional
provisions or enabling legislation. This classification includes retirement of long tern debt,
construction programs, and other federal and state grants.
Committed — includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the City through formal action of the highest level of decision making
authority. Committed fund balance is reported pursuant to resolution passed by the City Council.
40
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED
Fund Balance - Continued
Assigned — includes fund balance amounts that are self-imposed by the City to be used for a
particular purpose. Fund balance can be assigned by the City Manager or the Chief Financial
Officer. This classification includes insurance deductibles, encumbrances, program start-up
costs, projected budget deficit for subsequent years and other legal uses.
Unassigned — includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may also
include negative balances for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those specific purposes.
When multiple categories of fund balance are available for expenditure, the City will start with the
most restricted category and spend those funds first before moving down to the next category
with available funds.
Minimum General Fund Unassigned Fund Balance - It is the goal of the City to achieve and
maintain an unassigned General Fund balance that is within a range of 60 to 90 days of annual
expenditures. If unassigned General Fund balance falls below the goal or has a deficiency, the
City will establish a timeframe and work plan to replenish the fund balance. The work plan may
include tax increases, fee increases, reduction of services, and/or reduction of expenditures (i.e.
hiring freeze, salary freeze, or reduction of travel/training).
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, 2013, with collateral required by state statutes. At year-end, the carrying amount of
the City's deposits was $9,094,605 and the bank balance was $9,028,620. 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, 2013 was $46,700.
The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were
$109,263 and $81,312, respectively, with no corresponding bank balances as they are pooled with
the City's deposits. AEDC's petty cash balance at September 30, 2013 was $100.
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
41
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2013
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES—CONTINUED
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.
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 Tvoe
Certificates of Deposit
Repurchase Agreements
U. S. Treasure Obligations
Municipal Investment Pool
Commercial Bank Savings Account
U. S. Government Securities (nonrallable)
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, 2013, the City had the following investments:
Maximum
Maximum
Maximum
Percantage
Investment
Maturity
of Portfolio
In One Issuer
5 years
50%
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, 2013, the City had the following investments:
42
Falryalue
weigh
IrimbreM
Primary
Avg, Maturity
Type
Government
AEDC
ACDC
Toll
(Yeam)
FFCB
$ 4,342,618
S 389,369
$ 225,2811
$ 4,957,271
354
FHLB
3,471,085
311,261
180.093
3,982.839
440
FHLMC
8,131,830
549,793
318,106
6,999,729
2.87
FNMA
14,781,135
1,325,310
766,814
16,873,259
3.83
Muni Bond
1,890787
151,6110
87,714
1,930.101
1.96
Ce199eate8 of Deposit
20700,951
1,858,1194
1,073,822
23,830,970
135
TexpW
37,017.667
3,9481435
2,892,750
43,758,852
0.003
Total
S 88,136,04
S 8,431,862
$ 5,541.885
$ 102,113,021
42
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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 Citys investments in U.S. Agency securities (FHLB,
FHLMC, and FNMA) are rated AA+ by Standard & Poor's and Aaa by Moody's Investors Service.
The City's investments in municipal bonds are rated AA- by Standard and Poors and Aa3 by
Moody's Investors Service. Investments in the Texas Local Government Pool (TexPool) carried a
credit rating of AAAm by Standard & Poor's as of September 30, 2013.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's
investment in a single issuer. The City's investment policy controls concentration of credit risk by
limiting the amount of investment with a single issuer to no more than 35% of the total portfolio
with the exception of State approved investment pools and U.S. Government Securities. As of
September 30, 2013, 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
FNMA Federal agency securities $ 16,873,259 16.52%
FHLMC Federal agency securities 6,999,729 6.85%
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 local 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, 2013, the City's deposits with financial institutions above the federal
depository limits were fully collateralized.
43
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 3. RECEIVABLES
Receivables at September 30, 2013 for both governmental and business -type activities, including the
applicable allowances for uncollectible accounts, consist of the following:
The Water and Sewer Fund accounts receivable include unbilled charges for services rendered
through September 30, 2013.
44
Property
Saks
A adl
Tet
T..
Accounts
Interest
Assessments
011ier
Total
General Fund
$176,60.5
$2,724,625
$ -
$ 44,199
$ -
$ 3,179,790
$ 6,119,459
Data Servlet
87,405
-
-
2,490
-
-
69,903
General capital Projeas
-
-
-
57,758
187,557
-
245,315
G.O. BOM Fund
-
-
-
25,171
-
-
25,171
Nonmajor Governmental Funds
-
-
298,916
16,431)
-
-
315,355
Water and Sewer
-
-
5,607,208
74,245
-
-
5,661,453
sold Waste
-
-
312,093
7,754
-
256.266
576,113
Drsinage
-
-
70,722
2,161
-
-
72,803
Gott Course
-
-
2,822
-
-
-
2,822
Internal Serviro Funds
43.561
43,561
Grass Receivables
258.250
2,724,625
8,291761
273.786
187,557
3. 3 .056
13,174,035
LessAllowance for
Unmilecbbles
(215,444)
114.5811
(822.350)
(1.052.383)
Total Net ReceleaGes,
Primary Ginammant
$ 42,806
$2,724,625
$ 6,277,180
$ 273,786
$ 187,557
$ 2,615,698
$12,121,652
Component Units
$
$2.724.626
$
$ 38.398
$
$ 4.654
$ 2,767,678
The Water and Sewer Fund accounts receivable include unbilled charges for services rendered
through September 30, 2013.
44
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2013 was as follows:
Governmental Activities
General capital assets
Balance
Sales or
Balance
being depreciated:
September 30,
other
Adjustments/
September 30,
Buildings
2012
Atldi0ons
Dispositions
Tronshrs
2013
Governmental Funds: -
General capital assets
439,913,639
6,395,852
(259,553)
20,004,021
456,053,965
not being depreciated:
8,058,581
23,812
(39,122)
-
8,042,531
Land and land improvements
$ 126,146,]]4
$ 3,016.292
$ (15,605)
$ -
$ 129,147,461
Construction in progress
29,101,423
6,255,909
(358,083)
(23,112.054)
11,64$218
Total capital assets
10,339,350
232,431
(73,835)
10,491,952
not being depmciated
155,248,197
9,212,201
(15,605)
(23]12,054)
140792,139
General capital assets
being depreciated:
Buildings
121,639,116
-
-
3,108,021
131.341,203
Improvements
other than buildings
439,913,639
6,395,852
(259,553)
20,004,021
456,053,965
Fumiture and fixtures
8,058,581
23,812
(39,122)
-
8,042,531
vehicles
2749,635
13"481
(365,938)
-
2,518,180
Librery books
1,490,128
222,101
(358,083)
-
1,355,346
Machinery and equipment
10,339,350
232,431
(73,835)
10,491,952
Total capital assets being
depreciated
590,191,109
2009,143
(1,097,129)
23,112,054
619,815,111
Less acam.lated
depredation for.
Buildings
(19,0 rise)
(3,29"561)
-
-
(22,311,218)
Improvements
other Man buildings
(193,885,810)
(19,631,183)
254,053
-
(213,262,970)
FumiMmandfixtures
(5,411,612)
(1,040,616)
3SU2
-
(6,412,566)
viduchs
(2,213,484)
(102,584)
363,051
-
(2,013,011)
Library Boons
(110391126)
(185,509)
358,083
-
re66,fi32)
Machinery and equipment
(7,149,504)
(1,303,403)
13,834
(8,319,013)
Totes accumulated
deprecation
(228,846,220)
(25,553,999)
1,088,143
(253,311,416)
Total general capital assets
being depredated, net
361,344,889
(18,541,856)
(8,386)
23,112,054
368,503,101
General cartel assets, net
f 516,593,086
$ (9,2];655)
$ (23,9911
$
$ 507,296,440
45
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE4. CAPITAL ASSETS—CONTINUED
Balance Sales or Balance
September 30, Other Adjusenentsf September 30,
2012 Accton Dispositions Therefore 2013
IMemal Service Fords:
Internal service funds assets
not being depredated:
Construction in progress $ 1,389,778 $ 140,388 $ $ $ 1.510,164
Total capital assets
not being deprenated 1,309,778 140,388 1,510,164
Internal service
assets being depredated'
6,648,203
430,256
7,078,459
Vehicles
9,618,663
1,454,820
(529,505)
- 10,543,978
Machinery and equipment
1,842,460
277,570
(51,430)
2,060,592
Total internal service
assets being depreciated
11461,123
1,732,390
(580,943)
12,612,570
Less accumulated
depreciation for:
$ 4,072,882
$ -
$ - $ -
$ 4,072,882
Vehidas
(4,783,503)
(1,230,933)
529,505
10,657 (5,474,274)
Machinery and equipment
(1,399,195)
(211,587)
51,438
(10,657) (1,570,001)
Total accumulated
6,132,559
1,349,109
(2,268,2013)
5,223,462
deprecation
(8,182,698)
(1442,520)
W.943
(7,044,275)
Total Internal service funds
166,109,217
2,468,211
- 2,258,206
170,835,634
capital assets being deprecated, net
5,270,425
209,870
- -
5,568,295
Total IMemal semce funds
capital assets. net
6,648,203
430,256
7,078,459
Goinu m oral adMOes
capital assets net
$ 523,2A1,289
$(8,842,398)
S (23,991) $
$ 514,374,099
Business -Type Activities
Water and Sewer Activities:
Capital assets not being depreciated:
Land
$ 4,072,882
$ -
$ - $ -
$ 4,072,882
Construction 1n progress
2,059,677
1,349,109
(2258,208)
1,150,580
Total capital assets not
being depreciated
6,132,559
1,349,109
(2,268,2013)
5,223,462
Capital Assets Being depreciated:
Towers, tanks, 8 pumps stations
166,109,217
2,468,211
- 2,258,206
170,835,634
Furniture and fixtures
11,114
-
- -
11,114
Machinery and equipment
4260,318
439,332
(97,601) -
4,602,049
Vehicles
815,638
36,620
(13,515)
841,143
Total capital assets
Ming depredated
171,196,487
2,946,363
(111,116) 2,258206
176,289,940
Less accumulated depreciation for:
Towers, tanks, 8 pumps stations
(63,798,675)
(5,372,815)
- -
(69,169,490)
Furniture and fixtures
(11,114)
-
- -
(11,114)
Machinery and equipment
(2,920,576)
(391,073)
97,601 -
(3,214,048)
Vehicles
(644,000)
(52,907)
13,515
(683,392)
Total accumulated
depreciation
(67,372,365)
(5,816,795)
111,116
(73,078,044)
Total capital assets
being depreciated, net
103,824,122
(2,870,432)
2,256206
103,211,896
Water and sewer activities
capital assets, net
$ 109,956,681
$(1.521,323)
$ $
$ 108,435,358
46
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 4. CAPITAL ASSETS -CONTINUED
Balance
Sales or
Balance
September 30,
Other
September 30,
2012
Additions
Dispasnions
2013
Solid Waste Activities.
Capital assets being depreciated:
Machinery and equipment
$ 8,392
$ -
$ -
$ 8,392
Vehicles
12,923
12,923
Total capital assets
being depreciated
21,315
21,315
Leas accumulated depreciation for:
Machinery and equipment
(7,582)
(540)
-
(8,122)
Vehicles
(12,923)
(12,923)
Total accumulated
depreciation
(20,505)
(540)
(21,045)
Solid waste activities
capital assets, net
$ 810
E (540)
$
$ 270
Drainage Activities:
Capital assets being depreciated:
Other improvements
$ 498,132
$ -
S -
$ 496,132
Vehicles
31,379
-
-
31,379
Machinery and equipment
430,882
430,682
Total capital assets
being depreciated
958,193
958,193
Less accumulated
depreciation for:
Other improvements
(116,508)
(12,264)
-
(128,772)
Vehicles
(26,333)
(3,364)
-
(29,697)
Machinery and equipment
(392,566)
(21,429)
(413,995)
Total accumulated
depreciation
(535,407)
(37,057)
(572,464)
Drainage activities
capital assets, net
$ 422,786
$ (37,057)
$
$ 385,729
Goff Course Activities:
Capital assets being depreciated
Machinery and equipment
$ 563,641
$ 575,918
$ (202,106)
$ 937,453
Furniture and fixtures
10,894
10,894
Total capital assets
being depreciated
574,535
575,918
(202,106)
948,367
Less accumulated
depreciation for:
Machinery and equipment
(522,177)
(68,212)
202,106
(388,283)
Furniture and fdurea
(10,894)
(10,894)
Total accumulated
depreciation
(533,071)
(68,212)
202,106
(399,177)
Goff canoes activities
capital assets, net
41,464
507,706
549,170
Business -type actrvNies
capital assets, net
$110.421,741
$ (1,051,214)
$
$ 109,370,527
47
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE4. CAPITAL ASSETS—CONTINUED
component Uni
capital assets not being deprmaled
.no
Land Improvements
Tonal capital assets
not berg deprmeled
Capital assets being depreciated
Improvements mbar
than builds,
FumiNre and futures
Teal capital assets being
depreciand
Less accumulated dep,eaatkn for
3.11 Bake or me.
September 30, 011ier Son andi
2D12 Molders D,eposi9mn 2013
S 4.324,525 S - $ - $ 4,324.525
20],878 207,878
4,532403 4,532,403
3,120,009 - - 3,129,669
88,075 66475
3,194,784 3,194,704
Improvements other Nan Willi
(1,028,574)
(153,333)
- (2,179,907)
Furniture and fixtures
(59,408)
(61607)
(01 1
Total accumulated depreua9un
(2,088,042)
(159,940)
(2145,982)
Total modal assets being deprecated,net
11101
(159,940)
949,782
Cuniessi un9s capital csaeis, net
S 5,641125
$ (159.9001 9
$ 5481,195
Depreciation expense was charged as direct expense to programs of the primary government and
component units 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
48
$ 956,620
834,961
14,607,919
9,071,423
2,453
80,623
25,553,999
1,442,620
$ 25,996.519
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE4. CAPITAL ASSETS—CONTINUED
Business -type activities:
Water and sewer
$ 5,816,795
Solid waste
540
Drainage utility
37,057
Golf course
68,212
Total depreciation expense - Business -type activities
5,922,604
Component units:
Allen Economic Development Corporation
$ 159,940
Outstanding commitments at September 30, 2013,
under authorized construction contracts were
$467,240. These outstanding commitments for capital
projects will be funded from unexpended bond
proceeds and additional general obligation bonds.
NOTE 5. LONG-TERM DEBT
At September 30, 2013, bonds payable consisted of the following individual issues:
General Obligation Bonds:
$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%.
$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%.
$1,595,000 Senes 2006 Bonds due in annual installments
of $50,000 to $115,000 through August 15, 2026;
interest at 4.0% to 4.20%.
$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 5.0%.
$10,185,000 Series 2008 Bonds due in annual installments
of $250,000 to $745,000 through August 15, 2028;
interest at 3.5% to 4.60%.
49
$ 565,000
20,210,000
1,180,000
8,675,000
8,325,000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. LONG-TERM DEBT -CONTINUED
General Obligation Bands— continued
$15,400,000 Senes 20M Bonds due in annual installments
of $435,00 to $1,140,000 thmugh August 15, 2028,
intarestat2S%104.5%. S 13,065,000
$12,00,000 Senes 2010 Bonds due in annual installments
of $370,000 to $865,000 through August 15, 2029,
interest at 2.0% to 4.0%.
10,620,000
$8,785,000 Series 2010A Refunding Bonds due in annual
Installments of $110,000 to $970,00 through August 15,
2022; interest at 20% ro 3.0%
7,770,00
$8,840,000 Senea 2011 Refunding and Impmvemant Bonds
due in annual installments of $255,000 to $795,000 through
August 15, 2030; interest at 2.0% to 4.25%
7,395,000
$13,865,000 Series 2012 Refunding and Improvement Bonds
due in annual installments of $350,000 to $1,600,000 through
August 15, 2024; interest at 2.0%10 5.0%.
13,865,000
$5,065,000 Sones 2013 Bonds due In annual Installments
al $190,000 to $340,000 through August 15, 2032,
interest at 2.0%to 3.5%
5,065,000
$ 96,735,000
Certificates of Obligation;
$4,735,000 Series 2004A Combination Tax & Revenue
Golf Course Cedl6cates of Obligation due in annual
installments of $165,000 to $390,000 through
September 1, 2024, interest at 350%to 500%
$ 235,000
$765,00 Series NUB Combination Tax & Revenue
Golf Coums Cedficetes of Obtigabon due in annual
installments of $25,000 m 570,000 through
September 1. 2020nterest at 4.876% to 5.00%.
565.000
$ 600,000
Wafer and Sewer Raxenue Bonds;
$6,710,000 Senes 2004 Bonds due In annual installments
of $175,000 to $490,000 through Jura 1. 2024; interest
at 475%1050%.
$ 2,900,000
54,300,000 Senes 2005 Bonds due in annual installments
of $140,0001a $310.000 through June 1.2025; interest
at 375%to 6625%
2,980,000
$5,795,000 Sones 2009 Refunding Bands due installments
$530,000 to $630.000 through June 1.2019;
Interest at 1.2% to 3 5%
3.490.000
$ 9,370,000
y
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. LONG-TERM DEBT—CONTINUED
AEDC Sales Tax Revenue Bonds:
$15,335,000 Senes 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%.
$1,605,000 Series 2010A Sales Tax Revenue Bonds
due in annual installments of $440,000 to $595,000
beginning September 1, 2023 through September 1,
2025; interest at 4.00%.
$5,165,000 Series 2010B Sales Tax Revenue Bonds
due in annual installments of $105,000 to $520,000
through September 1, 2023; interest at 1.35% to 5.10%
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%.
$32,835,000 Sense 2008 Sales Tax Revenue Bands
due in annual installments of $345,000 to $2,785,000
through September 1, 2032; interest at 4.00% to 6.00%.
51
$ 12,635,000
1,605,000
4,070,000
$ 18,310,000
$ 3,690,000
30,000,000
$ 33,690,000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. LONG-TERM DEBT—CONTINUED
The following is a summary of long-term debt transactions, including current portion, of the City for
the year ended September 30, 2013:
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Buil.... Type ActivMes
Water and Sewer Revenue Bonds
Compensakd absences
Cap,lal lease payable
Less deterred amounts:
For refundings,
For lssuanw discounts l premiums
Business -type allOty
Balance
Balance
3565
Balm
Balance
Due
AEDC long4erm debt
Begmning
End
WINE
End
Webm
Decreases
of Year
Increases
D...
of Year
One Year
Governmental Aetivitles
$
E 1053,000
$ -
$ (1,185,000)
$ 9,370,000
General ObllgaBon Bonds
$ 99,385,01)o
$ 5,065,000
$ (7,695,000)
$ 8,735,000
E 8,085,000
Cer58cates of Obligation
1,060,000
-
(260,000)
800,000
270,000
Capital lease payable
27,437
-
(9,914)
17,523
9,986
Compensated absences
4,240,91M
3,152,646
(2,705,389)
4,688,221
2,889,777
Municipal pension obligation
270,853
5,248,905
(5,283,581)
236,177
-
Less deferred amounts.
Sales Tar Revenue Bonds $ 19,130,000
j
- $ (820,000)
E
For premiums and discounts
4,354,218
350,071
(226,501)
4.477,788
-
Forrefundings
(2,423,657)
381,785
(2,061,872)
Governmental activity
long-term debt
$ 108.894.815
E 13.816.822
E (15.818.6001
8 104.892.83]
$ 11.2MJ63
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Buil.... Type ActivMes
Water and Sewer Revenue Bonds
Compensakd absences
Cap,lal lease payable
Less deterred amounts:
For refundings,
For lssuanw discounts l premiums
Business -type allOty
Balance
(46,970)
3565
Balm
Due
Beginning
AEDC long4erm debt
Mien Community Development Corporation
End
WINE
of YsM
increaus
Decreases
of Year
On. Year
$
- $ ..045,000)
S
33,690,000
$
E 1053,000
$ -
$ (1,185,000)
$ 9,370,000
$ 1,205,000
482,507
374,582
(327,005)
5101081
474,752
41,484
575,917
(68,212)
6191169
113.587
(232,948) - M,383 (19,585)
117.431 (11,974) 105,457
long-term debt 110,923A54 $ 950.499 E (1537.W81 E 10.3315,145 $ 1793.339
Component UnB
(46,970)
3565
(43,905)
AEDC long4erm debt
Mien Community Development Corporation
E $ (816,935)
E 18,288,095
$
845,000
Component unit bng-term debt
$ 53.646 ,195
Sales T. Revenue seeds $ 34,735,000
$
- $ ..045,000)
S
33,690,000
$
1,501000
Less deferred amounts:
For Issuance dl.../premiums (122,596)
- (1,991)
(124,589)
For refundings (49,237)
16.412
(32,825)
ACDC long-term debt $ M,563.185
S
$ (1.030,579)
E
33.532,6%
$
1,090,000
Allen Economic Development CurporYbn
Sales Tar Revenue Bonds $ 19,130,000
j
- $ (820,000)
E
18,310,000
$
545.000
For issuance discounts/premiums
(46,970)
3565
(43,905)
AEDC long4erm debt
If 19,083,030
E $ (816,935)
E 18,288,095
$
845,000
Component unit bng-term debt
$ 53.646 ,195
E $ (1,847,514)
E 51796.681
$
1,935.000
52
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. LONG-TERM DEBT—CONTINUED
Annual Requirements to Retire Debt Obligations
The City intends to retire all of its general long-term 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 bond type for the years subsequent to September 30, 2013, are as follows:
General Obliaaffon Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest
of $27,484,371 are as follows:
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2014
$ 8,085,000
$ 3,837,180 $
11,922,180
2015
8,740,000
3,513,183
12,253,183
2016
8,425,000
3,182,828
11,607,828
2017
8,095,000
2,894,273
10,989,273
2018
8,405,000
2,593,248
10,998,248
2019-2023
32,585,000
8,399,304
40,984,304
2024-2028
19,555,000
2,874,805
22,429,805
2029-2032
2,845,000
189,550
3,034,550
Total
$ 96,735,000
$ 27,484,371 $
124,219,371
Certificates of Obligation
Annual debt service requirements to maturity
for the Certificates
of Obligation, including
interest of $211,075 are
as follows:
Governmental
Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2014
$ 270,000
$ 38,480 $
308,480
2015
40,000
28,270
68,270
2016
40,000
26,230
66,230
2017
45,000
24,150
69,150
2018
45,000
21,810
66,810
2019-2023
290,000
68,285
358,285
2024
70,000
3,850
73,850
Total
$ 800,000
$ 211,075 $
1,011,075
53
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 5. LONG-TERM DEBT — CONTINUED
Water and Sewer Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $2,095,665 are as
follows:
Business -type Activities
Fiscal Year Ending
September 30 Principal Interest Total
2014 $
1,205,000 $
380,519 $
1,585,519
2015
1,250,000
335,934
1,585,934
2016
955,000
286,789
1,241,789
2017
990,000
252,539
1,242,539
2018
1,035,000
215,256
1,250,256
2019-2023
3,065,000
570,838
3,635,838
2024-2025
870,000
53,790
923,790
Total $
9,370,000 $
2,095,665 $
11,465,665
AEDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$7,719,441 areas follows:
AEDC
Fiscal Year Ending
September 30
Principal
Interest
Total
2014 $
805,000 $
750,440 $
1,595,440
2015
870,000
723,905
1,593,905
2016
900,000
694,625
1,594,625
2017
930,000
662,125
1,592,125
2018
970,000
627,500
1,597,500
2019-2023
5,475,000
2,512,319
7,987,319
2024-2028
4,800,000
1,343,527
6,143,527
2029-2032
3,520,000
405,000
3,925,000
Total $
18,310,000 $
7,719,441 $
26,029,441
54
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. LONG-TERM DEBT -CONTINUED
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$22,391,976 are as follows:
ACDC
Fiscal Year Ending
September 30 Principal Interest Total
2014 $ 1,090,000 $ 1,862,835 $ 2,952,835
2015 1,135,000 1,816,365 2,951,365
2016 11190'" 1,760,455 2,950,455
2017 1,245,000 1,705,145 2,950,145
2018 1,305,000 1,646,820 2,951,820
2019-2023 7,585,000 7,172,538 14,757,538
2024-2028 9,910,000 4,848,918 14,758,918
2029-2032 10,230,000 1,578,900 11,808,900
Total $ 33,690,000 $ 22,391,976 $ 56,081,976
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, $5,065,000 of general obligation
bonds were issued to construct and/or make improvements to existing City facilities, streets
and drainage, parks, park land acquisition, and public art. The Debt Service Fund has
$847,663 available to service the general obligation debt at September 30, 2013. 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, 2013.
A schedule of authorized but unissued direct General Obligation Bonds as of September 30,
2013, is as follows:
55
Dated
Orgiml Amount
Issued
Unissued
Purpose
Authpmnbon
Au91or
To Dale
Balance
Perrom,i, Ads Center
11l&2W2
$ 19,500,000 $
2,815,000 $
16,885,000
Sivvm Center FeciLtiea
&12/2007
14,500,000
12,500,000
2,000,000
Municipal Building
&122007
1,7W,OW
1,025,000
8751000
Saeeb
&122007
27,200,000
22,040,000
5.160,0W
Packs
5`122007
17,250,000
8,700,000
8,SW,OW
Public Arl Pmleds
&122W7
11300.000
925,000
465000
Public Sdety
&122007
15.8le'"
11.9751000
3,BBO.OW
55
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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 $364,510 at September 30, 2013 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.
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, 2013 of $1,696,350 are adequate to meet the reserve
requirements.
At September 30, 2013, restricted assets, which include Water and Sewer Revenue Bond
Debt Service and Reserve Funds, were as follows:
Revenue bond debt service
$
529,368
Revenue bond reserve fund
1,166,982
$
1,696,350
Net position reserved for Water and Sewer revenue bond retirement
is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds
$
1,696,350
Accrued interest, payable from restricted assets
(126,840)
Current maturities of revenue bonds,
payable from restricted assets
(1,205,000)
Reserved for revenue bond principal and interest
$
364,510
M
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE5. LONG-TERM DEBT—CONTINUED
Water and Sewer Revenue Bonds — Continued
The City is in compliance with the various requirements of the bond ordinances. This
covenant requires that operating revenues, as defined, cover the current debt requirement
including principal and interest by a minimum of 1.2 times. Such coverage at September 30,
2013 was 5.75 times.
Capital Lease
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 the Financial Accounting
Standards Board (FASB) Accounting Standards Codification guidance on "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, 2013, the capitalized costs of the
Governmental leased property and Business -type leased property under capital leases were
$851,183 and $937,453, 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, 2013 are as
follows:
Fiscal Year Ending
September 30,
Governmental Admires
2014
$ 302,284
Senteri 30,
294,979
PtIndyal
Interest
2017
Total
2014
$
9,9$8
$ 94
$
1oWo
2015
7,07
23
7,560
Tetat
E
17,523
S 117
$
17,840
Feral Year Ending
Business-ivpe Activities
September 30,
Niespal
Interest
Teel
2014
$
113,587
$ 18,860
$
132,40
M15
116,578
14,480
131.050
2016
120,713
9,942
130.655
2017
120,852
5,30
126,205
2018
77.439
1,025
78,464
Total
$
549,169
$ 49,660
$
598,829
OPeratinp Leases
The City leases machinery and equipment under non -cancelable operating leases. Total costs
for such leases were $321,624 for the fiscal year ended September 30, 2013. 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
2014
$ 302,284
2015
294,979
2016
192,435
2017
3,429
2018
744
Total
$ 793,842
57
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 6. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds. Individual fund operating transfers for fiscal year 2013 were as
follows:
Fund
Transfers In
Transfers Out
Major Governmental Funds:
General Fund
$ 5,357,270
$ 3,720,968
General Capital Projects
3,453,992
322,232
General Obligation Bonds
240,416
262,610
Debt Service Fund
500,000
Total Major Governmental Funds
9,551,678
4,305,810
Nonmajor Governmental Funds:
Grams and Special Revenue
46,509
240,416
Hotel Occupancy Tax
25,000
Total Nonmajor Governmental
Funds
46,509
265,416
Major Enterprise Funds
Water and Sewer Fund
33,692
4,686,025
Solid Waste Fund
-
704,528
Drainage Utility Fund
-
638,784
Golf Course Fund
633,815
Total Major Enterprise Funds
667,507
6,029,337
Internal Service Funds:
Replacement Fund
11,332
-
Risk Management Fund
323,537
-
Total Internal Service Funds 334,869
Total Transfers $ 10,600,563 $ 10,600,563
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 $9,598,187 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 $4,571,226
include cash financing of capital projects, support of programs recorded in nonmajor
governmental funds and internal service funds.
M
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. INTERFUND TRANSFERS —CONTINUED
Proprietary funds: Total enterprise funds transfers in of $667,507 mainly represent
amounts transferred into the Golf Course Fund to support operations. The total transfers
out of $6,029,337 represent 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 $334,869 represents the amounts
needed for sign plotter and CAD software, and administrative support for 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. The plan provisions that
have been adopted by the city are within the options available in the governing state statutes of
TMRS.
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 from the TMRS website at www.tmrs.com.
The plan provisions are adopted by the governing body of the City, within the options available in
the state statutes goveming TMRS. Plan provisions for the City were as follows:
Contributions and Fundina Policy
Under the state law governing TMRS, the wntribution rate for each City is determined annually by
the actuary using the Projected Unit Credit actuarial cost method. The rate consists of the normal
cost 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.
Plan Year 2012
Plan Year 2013
Employee deposit rate
7%
7%
Matching ratio (City to employee)
2 to 1
2 to 1
Years required for vesting
5
5
Service retirement eligibility
6015,0120
60/5,0/20
(expressed as age/years of service)
Updated service credit
100% repeating,
100% repeating,
transfers
transfers
Annuity Increase (to Retirees)
70% repeating CPI
70% repeating CPI
Contributions and Fundina Policy
Under the state law governing TMRS, the wntribution rate for each City is determined annually by
the actuary using the Projected Unit Credit actuarial cost method. The rate consists of the normal
cost 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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE7. RETIREMENT PLAN—CONTINUED
The City's refirement cost rate was 13.79% from October to December 2012 and 13.90% from
January to September 2013.
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, approximately 2% for the fiscal
years 2010, 2011, and 2012, and increased the City's contribution rate above the minimum phase
in rate in order to reduce the unfunded actuarial accrued liability.
The annual pension cost and net pension obligation are as follows:
Annual required contribution (ARC) $ 5,246,243
Interest on net pension obligation 18,960
Adjustment to the ARC (16,298)
Annual pension cost (APC) 5,248,905
Contributions made (5,283,581)
Decrease in net pension obligation (34,676)
Net pension obligation, beginning of the year 270,853
Net pension obligation, end of the year $ 236,177
Three -Year Trend Information:
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method --
Amortization Method --
Remaining Amortization Period --
Amortization period for new gains/losses—
Asset Valuation Method --
Investment Rate of Return --
Projected Salary increases --
Includes Inflation at --
Costof-Living Adjustments --
RE
Projected unit credit
Level percent of payroll
25.2 years — closed period
30 years
10 year smoothed market
7.0%
Varies by age and service
3.0%
2.1%
Annual
Actual
Percentage
Net
Fiscal
Pension
Contribution
of APC
Pension
Year
Cost (APC)
Made
Contributed
Obligation
2011
$
5,267,776
$ 5,080,950
96%
$ 245,697
2012
$
5,001,225
$ 4,976,069
99%
$ 270,853
2013
$
5,248,905
$ 5,283,581
101%
$ 236,177
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method --
Amortization Method --
Remaining Amortization Period --
Amortization period for new gains/losses—
Asset Valuation Method --
Investment Rate of Return --
Projected Salary increases --
Includes Inflation at --
Costof-Living Adjustments --
RE
Projected unit credit
Level percent of payroll
25.2 years — closed period
30 years
10 year smoothed market
7.0%
Varies by age and service
3.0%
2.1%
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 7. RETIREMENT PLAN - CONTINUED
Fundino Status and Funding Progress
As of December 31, 2012, the most recent actuarial valuation date, the plan was 83.2% funded.
The actuarial accrued liability for benefits was $117,900,313, and the actuarial value of assets was
$98,094,098, resulting in an unfunded actuarial accrued liability (UAAL) of $19,806,215. The
covered payroll (annual payroll of active employees covered by the plan) was $36,537,115, and the
ratio of the UAAL to the covered payroll was 54.2%.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual
revision as actual results are compared to past expectations and new estimates are made about
the future.
Actuarial calculations are based on the benefits provided under the terms of the substantive plan in
effect at the time of each valuation, and reflect a long-term perspective. Consistent with that
perspective, actuarial methods and assumptions used include techniques that are designed to
reduce short -tern volatility in actuarial accrued liabilities and the actuarial value of assets. The
schedule of funding progress, presented as Required Supplementary Information following the
notes to the financial statements, presents multi-year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of
benefits.
NOTES. 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, 2013, the
cost of water purchased under this contract was $10,219,054.
In 1978, the City entered into a contract with the District for the transportation, treatment and disposal
of sanitary sewage and other waste. The contract will continue in force at least until all bonds issued
by the District pursuant to the contract have been paid in full and will remain in force thereafter
throughout the useful life of the District's sanitary sewer system. The contract requires the City to pay
varying amounts based on the costs associated with sewage transported and/or treated and disposed
of. The cost includes the City's proportionate share of the District's operating and maintenance
expenses and related debt service costs. During 2013, the cost for transportation, treatment and
disposal of sewage and other wastes was $5,327,329.
61
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTES. 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,
2013, 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 medical claims liability is limited by a stop loss insurance policy covering an
individual's medical claims in excess of $125,000 per plan year. Aggregate stop loss coverage of
$2,000,000 per plan year provides protection to limit claim liability for the plan as a whole. 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, 2013 was $812,410. Changes
in the Risk Management liability during the past five fiscal years were as follows:
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
errors/omissions), 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 expenditures/expenses of the participating
funds.
62
Balance at
Current Year Claims
Balance at
Year Ending
Beginning of
and Changes in
Claim
End of
September 30,
Fiscal Year
Estimates
Payments
Fiscal Year
2009
$ 629,487
$ 4,448,591
$ 4,518,707
$ 599,371
2010
599,371
5,685,199
5,544,605
739,965
2011
739,965
5,444,705
5,459,311
725,359
2012
725,359
6,631,188
6,524,565
831,982
2013
831,982
5,691,732
5,711,304
812,410
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
errors/omissions), 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 expenditures/expenses of the participating
funds.
62
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 10. RISK MANAGEMENT—CONTINUED
Workers Compensation, Property and Liability Insurance — Continued
The City has a workers' compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $250,000. During 2013, the City contributed $291,751 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 2013, the City contributed $562,002 for property and
general liability.
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Program Descriotion
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. Retirees must make a ane -time irrevocable decision to continue benefits at the time
of retirement, after that their eligibility for this benefit ends. The retiree benefit consists of medical,
dental and vision care until age 65.
Due to the significant increase in retiree premium costs, the City elected to create a separate plan
for retirees effective January 1, 2013. Employees who retired on or before December 31, 2012,
were "grandfathered" and allowed to pay blended medical premium rates the same as COBRA
participants which are the total cost of premiums (no City subsidy) plus 2% administration fees.
They will also be subject to the same rate increases as COBRA participants. Retirees refiring on
or after January 1, 2013, can elect health care coverage but will be required to pay the (higher)
unblended rate.
Current OPEB benefits are made on a pay-as-you-go basis from the Risk Management Fund. In
2012, retirees paid $112,862 in the form of premiums and incurred $1,191,381 in expenses. In
2013, retirees paid $181,830 in the form of premiums and incurred $442,024 in expenses.
Fundina Policy
In October 2012, an actuarial study update was completed. This study estimated the actuarial
accrued liability increased slightly from $2,736,262 to $2,790,177; however, the annual required
contribution (ARC) decreased from $321,597 to $217,491. The decrease in the ARC is because
the City created a separate plan for retirees. Employees retiring on or after January 1, 2013 can
elect health care coverage but will be required to pay a higher, unblended rate. In March 2011,
the City established a Section 115 Trust (the Trust) to comply with the requirements of
Governmental Accounting Standards Board Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits other than Pensions (OPEB), for the
purpose of funding and providing certain benefits to its eligible retirees and dependents. The
single -employer defined benefit plan is created by City ordinance and appoints the City Manager
as Plan Administrator for the program. The trust was established with Public Agency Retirement
Services Company (PARS). Prior to establishment of the trust, the ARC was contributed to the
Risk Management Fund where all medical costs are incurred. Net position of $3,952,517
available in the Risk Management Fund exceeds the $2,790,177 actuarial accrued liability,
therefore, OPEB costs will continue to be covered by the Risk Management Fund until the funded
ratio of the trust is more positive. The City has budgeted for annual actuarial study updates to
determine if funding requirements need to be changed.
63
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPER) —CONTINUED
Annual OPER costs and NET OPEB Obligation
The City's annual other postemployment 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. Calculations are based on
the OPEB benefits provided under the terms of the substantive plan in effect at the time of each
valuation and on the pattern of sharing costs between the employer and plan members to that
point.
Annual required contribution (ARC)
$ 217,491
Interest on net OPEB obligation
(338)
Adjustment to the ARC
439
Annual OPEB cost
217,592
Contributions made
(325,000)
Increase in OPEB obligation (asset)
(107,408)
Net OPEB obligation (asset), beginning
of the year
(6,753)
Net OPEB obligation (met), end of the year
$ (114,161)
Three -Year Trend Information:
Annual
Actual
Percentage
Net
Fiscal OPEB
Contribution
of OPEB
OPEB
Year Cost
Made
Contributed
Asset
2011 $ 321,597
$ 325,000
101%
$ (3,403)
2012 $ 321,650
$ 325,000
101%
$ (8,753)
2013 $ 217,592
$ 325,000
149%
$ (114,161)
Actuarial valuations for the OPEB plan involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future. Actuarially determined amounts are
subject to continual revision as results are compared to past expectations and new estimates are
made about the future. Actuarial calculations of the OPEB plan reflect a long-term perspective.
Significant methods and assumptions used for this were:
Investment return
Discount Rate
Amortization Method/Period
Health Care Cost Trend Rale
Retirement Rates
Retiree/Spouse Participation Rate
Mortality
Actuarial Value of Assets
Actuarial Cost Method
Inflation Rate
8.86%
5.00%
level dollar, open, 30 years
Avg. 5.8% Yrs 1-10, 60.08% Yrs 11-20, 44.1%
Ages 50-55-2%,56-60-5%,601a4-15%,65+ 100%
20%/40%
RP 2000 EE/Combined
Market value on valuation date
Projected unit credit
6.2% Medical inflation and 3 7% dental inflation
91
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
NOTE 11. OTHER POSTEMPLOYM ENT BENEFITS (OPEB) —CONTINUED
Schedule of Funding Information
Actuarial valuation date 1011112
Actuarial value of assets $678,092
Actuarial Accrued Liability( AAL) $2,790,177
Funded Ratio 24.3%
Unfunded Actuarial Accrued Liability (URAL) $2,112,085
Annual covered payroll $37,022,759
UAAL as % of covered payroll 5.7%
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 held in an irrevocable trust is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Supplemental Death Benefits Plan:
Program Description
The City also participates in the cost sharing muhiple-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 benefir 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 2013, 2012, and
2011 were $49,157, $51,028, and $63,471, respectively, which equals the required
contributions (ARC) each year.
65
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2013
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, if any, of expenditures which
may be disallowed by the grantor cannot be determined at this time although the City expects such
amounts, if any, to be immaterial.
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City s counsel that resolution of these matters will not
have a material adverse effect on the financial condition of the City.
Economic Development Grant The City has 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. SUBSEQUENT EVENTS
In October of 2013, the City issued $3,370,000 in Waterworks and Sewer System Revenue Refunding
Bonds, Series 2013 with an average coupon interest rate of 2.9%. The bonds are dated October 15,
2013. Interest on the bonds will be payable semiannually on June 1 and December 1 of each year,
commencing June 1, 2014. The proceeds of the Series 2013 bonds were used to refund the
Waterworks and Sewer System Revenue Refunding and Improvement Bonds, Series 2004 and the
Waterworks and Sewer System Revenue Bonds, Series 2005. The refunding was undertaken to
reduce total debt service payments by $655,838 over the next eleven years and resulted in an
economic gain of $312,311.
m
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF
PEQpI
E FIRST RESPECT INTEGRITY DELIVER EXCEL
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, 2013
Required Supplementary Information
Schedule of Texas Municipal Retirement System
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
1011/2009 2011 296,824 2,736,262 2,439,438
10/1/2008 2012 678,092 2,736,262 2,058,170
1011/2012 2013 678,092 2,790,177 2,112,085
'Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
67
10.8% 34,267,319 71%
24.8% 37,022,769 56%
24.3% 37,022,759 5.7%
Required Supplementary Information
Unfunded
Actuarial
Last Three Valuation Years (unaudited)
Actuarial
&Warial
UAALasa
Valuation
Actuarial value of
Actuarial awrued
Percentage
Accrued Liability
Annual covered
percentage of
Date
assets
liability
funded
(URAL)
payroll
wwred payroll
12/31/10
$ 75,602,771
$ 97,880,304
77.3%
$ 22,257,533
11 33,316,861
66.8%
12131/11
86,384,487
108,537,229
79.6%
22,152,742
35,359,763
62.6%
12/31/12
98,094,098
117,900,313
83.2%
19,806,215
36,537,115
542%
1011/2009 2011 296,824 2,736,262 2,439,438
10/1/2008 2012 678,092 2,736,262 2,058,170
1011/2012 2013 678,092 2,790,177 2,112,085
'Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
67
10.8% 34,267,319 71%
24.8% 37,022,769 56%
24.3% 37,022,759 5.7%
Required Supplementary Information
Schedule of Other Postemployment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
&Warial
UAAL ae a
Valuation
Fiscal Year Value or Assets AAL' UAAL^ Fulled RaW
Covered Payroll %of
Date
Covered
Payroll
1011/2009 2011 296,824 2,736,262 2,439,438
10/1/2008 2012 678,092 2,736,262 2,058,170
1011/2012 2013 678,092 2,790,177 2,112,085
'Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
67
10.8% 34,267,319 71%
24.8% 37,022,769 56%
24.3% 37,022,759 5.7%
CITY OF ALLEN, TEXAS
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2013
REVENUES
Ad valorem taxes, penalties and interest
Municipal sales tax
Franchise taxes
Licenses, perni and fees
Charge for services
Fines
Gifts and contributions
Investrnent earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Total expenditures
Excess(deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
EXHIBIT A-2
VARIANCE WITH
BUDGETED AMOUNTS FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
$ 32,191,557
$ 32,529,703
$ 32,432,416
$ (97,287)
15.693,130
16,074,240
15,900,029
(174,211)
6,643,096
6,390,314
6,302,018
(88,296)
1,048,600
1,660,100
1,939,426
279,326
11,835,667
10,704,476
10,301,649
(402,827)
1,862,625
1,238,285
1,402,725
164,440
1,739,237
869,996
841,202
(28,794)
139,040
163,750
90,093
(73,657)
1,525,735
1,903,761
1,852,171
(51,590)
72,678,687 71,534,625 71,061,729 (472,896)
22,291,301
22,365,390
19,755,860
2,609,530
28,426,156
28,324,753
27,979,103
345,650
2,991,938
2,960,942
3,304,507
(343,565)
22,052,129
21,089,449
19,965,594
1,123,755
2,336,946
2,066,393
1,962.615
103,778
78,098,480 76,806,927 72,967,779 3,839,148
(5,419,793) (5,272,302) (1,906,050) 3,366,252
Transfers in
5,445,270
5,357,270
5,357,270
-
Transfers out
(542,820)
(720,968)
(3,720,968)
(3,000,000)
Sale of capital assets
16,350
16,350
Total other financing sources(uses)
4,902,450
4,636,302
1,652,652
(2,983,650)
NET CHANGE IN FUND BALANCE (517,343) (636,000) (253,398) 382,602
FUND BALANCES, BEGINNING OF YEAR 16,786,050 16,786,050 16,786,050
FUND BALANCES, END OF YEAR $ 16,268,707 $ 16,160,050 $ 16,532,652 $ 382,602
m
CITY OF ALLEN, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2013
BUDGETARY INFORMATION
The City Council adheres to the following procedures in establishing the budgets reflected 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 induces
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 the combined
total budgeted expenditures for all fund types.
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.
M
CITY OFALLEN
�Eppl
E FIRST RESPECT INTEGRITY DELIVER EXCEL
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Y
Y
CITY OFALLEN
AF
PEaP�E F�Rst
RESPECT INTEGRITY DELIVER EXCEL
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.
rZr7
CITY OF ALLEN, TEXAS EXHIBIT B-1
COMPARATIVE BALANCE SHEETS
GENERALFUND
SEPTEMBER 30, 2013 AND 2012
2013 2012
ASSETS
Cash and cash equivalents
$
7,637,298
$
5,092,403
Investments
8,328,505
11,050,686
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $139,467 in 2013 and $134,015 in 2012)
31,376
216,590
Sales taxes
2,724,625
2,582,970
Other, net
2,357,432
1,797,121
Accrued interest
44,199
133,598
Prepaid items
2,098
2,081
TOTAL ASSETS
$
21,125,535
$
20,875,449
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
$
3,202,139
$
2,680,228
Accrued liabilities
1,337,903
1,176,633
Deferred revenue
52,841
232,538
TOTAL LIABILITIES
4,592,883
4,089,399
FUND BALANCES
Nonspendable
Prepaid items
2,098
2,081
Restricted
Court technology
25,739
69,880
Juvenile case manager
27,804
45,210
PEG fees
468,910
312,490
Photo red light enforcement
40,554
30,300
Child safety fees
108,105
Cemetery trust
55,841
55,921
Assigned
General government
490,727
131,426
Public safety
37,672
2,052
Public works
76,866
-
CuBure and recreation
237,273
Community development
9,026
-
Unassigned
14,952,037
16,136,690
TOTAL FUND BALANCES
16,532,652
16,786,050
TOTAL LIABILITIES AND FUND BALANCE
$
21,125,535
$
20,875,449
71
CITY OF ALLEN, TEXAS
EXHIBIT B-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
2013
2012
REVENUES
Ad valorem taxes, penalties and interest
$
32,432,416
$ 30,403,717
Franchise taxes
6,302,018
6,150,419
Municipal sales tax
15,900,029
14,673,992
Licenses, permits and fees
1,939,426
1,075,712
Charges for services
10,301,649
9,852,902
Fines
1,402,725
1,648,194
Gifts and contributions
829,376
831,266
Intergovernmental
11,826
11,826
Investment earnings
90,093
186,353
Miscellaneous
1,852,171
1,759,433
Total revenues
71,061,729
66,593,814
EXPENDITURES
Current:
General government
19,745,780
15,582,940
Public safety
27,979,103
26,944,211
Public works
3,304,507
3,694,124
Culture and recreation
19,965,694
21,524,565
Community development
1,962,615
2,194,634
Debt service:
Principal retirement
9,914
9,130
Interest and fiscal charges
166
148
Total expenditures
72,967,779
69,949,752
Deficiency of revenues under expenditures
(1,906,050)
(3,355,938)
OTHER FINANCING SOURCES (USES)
Transfers in
5,357,270
5,451,660
Transfers out
(3,720,968)
(1,026,222)
Capital lease obligations
-
29,905
Sale of capital assets
16,350
307
Total other financing sources (uses)
1,652,652
4,455,650
NET CHANGE IN FUND BALANCES
(253,398)
1,099,712
FUND BALANCE, BEGINNING OF YEAR
16,786,050
15,686,338
FUND BALANCE, END OF YEAR
$
16,532,652
$ 16,786,050
72
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2013 AND 2012
EXHIBIT B-3
2013
2012
ASSETS
Cash and cash equivalents
$
899,350
$
555,745
Investments
-
330
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $75,977 in 2013 and $75,130 in 2012)
11,428
74,485
Accrued interest receivable
2,498
37,877
Total assets
$
913,276
$
668,437
LIABILITIES AND FUND BALANCES
LIABILITIES
Interest payable
$
-
$
54,185
Deferred revenue
11,428
76,732
Total liabilities
11,428
130,917
FUND BALANCE
Restricted for debt service
901,848
537,520
TOTAL LIABILITIES AND FUND BALANCE
$
913,276
$
668,437
73
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
REVENUES
Ad valorem taxes
Investment earnings
Total revenues
EXPENDITURES
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Premium on issuance of bonds
Payment to refund bond escrow agent
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
74
EXHIBIT B-4
2013 2012
$ 11,748,992 $ 11,068,632
25,809 44,854
11, 774, 801 11,113,486
7,955,000
7,625,000
3,955,473
4,562,817
-
(16,050,003)
11,910,473
12,187,817
(135,672)
(1,074,331)
-
13,940,000
-
2,296,042
-
(16,050,003)
500,000
500,000
500,000
686,039
364,328
(388,292)
537,520
925,812
$ 901,848
$ 537,520
CITY OF ALLEN, TEXAS
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2013
EXHIBIT B-5
VARIANCE
WITH FINAL
BUDGETED
AMOUNTS
BUDGET
POSITIVE
ORIGINAL
FINAL
ACTUAL
(NEGATIVE)
REVENUES
Ad valorem taxes
$ 11,675,790
$ 11,788,537
$ 11,748,992
$ (39,545)
Investment earnings
55,140
45,000
25,809
(19,191)
Total revenues
11,730,930
11,833,537
11,774,801
(58,736)
EXPENDITURES
Principal re8rement
7,955,000
7,955,000
7,955,000
-
Interest and fiscal charges
4,012,510
4,013,117
3,955,473
57,644
Total expenditures
11,967,510
11,968,117
11,910,473
57,644
OTHER FINANCING SOURCES
Transfers in
500,000
500,000
500,000
Total other financing sources
500,000
500,000
500,000
-
NET CHANGE IN FUND BALANCES
263,420
365,420
364,328
(1,092)
FUND BALANCE, BEGINNING OF YEAR
537,520
537,520
537,520
FUND BALANCE, END OF YEAR
$ 800,940
$ 902,940
$ 901,848
$ (1,092)
75
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL CAPITAL PROJECTS FUND
SEPTEMBER 30, 2013 AND 2012
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Special assessments receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Accrued liabildies
Total liabilities
FUND BALANCES
Restricted for capital projects
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
76
EXHIBIT B-6
2013 2012
$ 8,590,911 $ 5,268,066
10,883,465 10,747,199
57,758 85,736
187,557 187,557
$ 19,719,691 $ 16,288,558
$ 71,925 $ 687,738
36,590 75,325
521,396 445,042
629,911 1,208,105
19,089,780 15,080,453
19,089,780 15,080,453
$ 19,719,691 $ 16,288,558
CITY OF ALLEN, TEXAS EXHIBIT B-7
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL CAPITAL PROJECTS FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
REVENUES
Charges for services
Intergovernmental
Investment earnings
Gifts and contributions
Miscellaneous
Total revenues
EXPENDITURES
General government
Capital outlay
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
77
2013 2012
$ 322,321 $
198,782
4,440,385
4,110,526
30,339
122,127
277,852
397,500
617,336
407,364
2,213,816
15,080,453
5,688,233
5,236,299
1,092,911
727,814
3,717,755
1,415,061
4,810,666
2,142,875
877,567 3,093,424
3,453,992
823,185
(322,232)
(1,702,793)
3,131,760
(879,608)
4,009,327
2,213,816
15,080,453
12,866,637
$ 19,089,780 $
15,080,453
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL OBLIGATION BOND FUND
SEPTEMBER 30, 2013 AND 2012
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Total liabilities
FUND BALANCES
Restricted for capital projects
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
78
EXHIBIT B-8
2013 2012
$ 3,242,695 $ 2,411,383
4,742,963 4,620,750
25,171 55,089
$ 8,010,829 $ 7,087,222
$ 205,248 $ 1,607,324
39,568 130,288
244,816 1,737,612
7,766,013 5,349,610
7,766,013 5,349,610
$ 8,010,829 $ 7,087,222
CITY OF ALLEN, TEXAS EXHIBIT B-9
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL OBLIGATION BOND FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
2013 2012
REVENUES
Investment earnings $ (10,984) $ 47,833
Total revenues (10,984) 47,833
EXPENDITURES
General government
Culture and recreation
Public safety
Public works
Capital outlay
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Premium on debt issuance
Issuance of debt
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
79
111,357
13,590
-
320
137,455
60,103
750,993
409,994
1,965,685
6,049,397
2,965,490
6,533,404
(2,976,474) (6,485,571)
240,416
(262,610)
(256,465)
350,071
5,065,000
5,392,877
(256,465)
2,416,403
(6,742,036)
5,349,610
12,091,646
$ 7,766,013 $
5,349,610
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
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.
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.
0
CITY OF ALLEN, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
EXHIBIT C-1
SPECNL REVENUE
Tounsm
2,808,030
-
-
-
-
2,808,030
Assetlode9um
GRANTS
148.020
-
-
TOTAL
148Amo
HOTEL
-
-
588,849
AND
-
588.649
TAX
NON -MAJOR
-
OCCUPANCY
1,607,822
ASSET
1,607,822
SPECT
PMN
INCREMENT
GOVERNMENTAL
1,221,875
TAX
FONFE"M
REVENUE
DEDICATION
FINU4CING
FUNDS
MSETS
2,808,030
148,020
588,49
1,607,822
1,221,875
8,374,348
Cash and cash eCulvalenla
$ 1,388,197
S
131,665
$
369,014
$
771,488
$ 477,365
S 3.135,739
Inwstments
1,358,814
55,886
184.242
831,909
666,689
3,097,540
A uma namirvable
113,310
-
111,323
-
74,283
296.816
Accrued interest
7,211
297
978
4,415
3.536
16,439
TOTALMSETS
$ 2,885,532
$
187,&8
$
865557
$
1,607,822
$ 1.221,875
$ 6,548,634
LIMNAIES AND FUND SA LACES
LIMIMIES
Accounts payable
S 53,751
S
25,081
$
44,819
$
-
$ -
$ 123,651
Aaamed l'wb0das
3,751
14,747
3%
-
-
18,888
Warned revenue
31,701
31,701
TOTAL LIMILRIEB
57,SM
38,828
76,906
174,238
FUNDBALMCES
Rabided
Tounsm
2,808,030
-
-
-
-
2,808,030
Assetlode9um
-
148.020
-
-
-
148Amo
State am federal grants
-
-
588,849
-
-
588.649
Park a,uwdwn and dewbpmerd
-
-
-
1,607,822
-
1,607,822
Tae increment finamling agreement
1,221,875
LY11,875
TOTAL FUND BALANCES
2,808,030
148,020
588,49
1,607,822
1,221,875
8,374,348
TOTAL LUMILRIE$ MD FUND BALANCES $
2,M02 $
187.848 $
865557
$ 1,607,822
$1,221,875 $
6,548.834
81
CITY OF ALLEN
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
EXHIBIT C-2
EXPENDITURES
-
-
GRANTS
-
-
TOTAL
Genere'meemment
HOTEL
-
AND
-
TAX
NON#AJOR
Public safety
OCCUPPNCY
ASSET
SPECIAL
PARK
INCREMENT
GOVERNMENTAL
Culture and recreation
TAX
FORFEITURE
REVENUE
DEDICATION
FINANCING
FUNDS
REVENUES
-
-
240.638
-
-
248.638
Ad vakram taxes, penalties and Interest
$ -
E -
$ -
$ -
$ W.853
$ 513,853
Municipal sales tax
-
-
-
-
389,732
389,732
Licanses, permits. and fees
-
-
-
355.529
-
355,529
Hotel l motel taxes
1,300,286
-
-
-
-
1,350,208
GMs and contributions
-
-
215,000
-
-
215,000
Inter9ovemmenta1
-
-
877,684
-
137,131
814,815
Inuestmenleamings
5,370
(89)
(739)
1,654
3,151
9,37
Miscellaneous
11558
200,30.5
201,903
Total revenues
1,39214
200,258
891,945
357,183
1,073,867
3,880,465
EXPENDITURES
-
-
48.509
-
-
48,599
Genere'meemment
-
-
5a
-
835,575
$35.629
Public safety
-
97,593
103.452
-
-
201.045
Culture and recreation
025,467
-
72,979
-
-
8981446
Oommunllydon"ment
-
-
240.638
-
-
248.638
Capital o ily
2,301,263
57,620
52,403
330,323
903,583
4401346
Total expenditures
825,49
155,213
77,526
330,323
035,575
2.624,104
Excess of revenues aver expenditures
531,77
45,043
414,419
26,860
230,292
1.256,361
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
48.509
-
-
48,599
Trensfersout
(25,000)
-
(240,416)
-
-
(265,416)
Sale of capital rias%
8,830
5930
Total oMer financing sources (uses)
(25,000)
5930
(193.907)
(211,969)
NET CHANGE IN FUND BALANCES
506,77
51,901
220,512
25360
230,292
1.044,392
FUND BALANCES, BEGINNING OF YEAR
2,301,263
961039
368,137
1,560,962
903,583
5,330,061
FUND BALANCES, END OF YEAR
E 2,808,039 $
148,020
E 586.649 $
1,607,022 $
1,221,875
$ 6,374,396
82
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.
83
CITY OF ALLEN, TEXAS EXHIBIT D-1
COMPARATIVE STATEMENTS OF NET POSITION
WATER AND SEWER ENTERPRISE FUND
SEPTEMBER 30. 2013 AND 2012
0
2013
2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 11,790,786
$ 7,0M.76B
Investments
13,989,985
13,786,622
Receivables, net of allowance for uncollectibles:
Accounts
5,592.627
6,489,187
Accrued interest
74,245
112,684
Other
-
415,316
Inventories
47,311
48,272
Restricted cash and cash equivalents
1,898,350
1,734,662
Total current assets
33,191,304
29,641,511
NONCURRENTASSETS
CAPITAL ASSETS
Land
4,072,882
4,072,882
Towers, tanks, and pump stations
170,835,635
160,109,217
Vehicles
841,143
815,838
Machinery and equipment
4,602,049
4,260,318
Furniture and fixtures
11,114
11,114
Construction In progress
1,150,580
2,059,677
Total capital assets
181,513,403
177,329,046
Less: accumulated depreciation
(73,078,045)
(67,372,365)
Capital assets, net of accumulated depreciation
108,435,358
109,956,681
DEFERRED CHARGES
Bond issuance costs, net of amortuation
112,830
126,923
Total noncurrent assets
108,548,188
110,083,604
TOTALASSETS
141,739,492
139,725,115
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
1,274,780
159,530
Accrued liabilities
103,314
87,313
Retainage payable
46,253
88,546
Payable from restricted assets:
Revenue bonds payable - current
1,205,000
1,165.000
Accrued interest payable
126,840
141,016
Accrued compensated absences - current
312,771
289,747
Customer deposits payable
1,573,181
1,525,135
Total current liabilities
4,642,139
3,456,287
NONCURRENT LIABILITIES
Revenue bonds payable
8,071,891
9,254,483
Accrued compensated absences
10,994
10,185
Total noncurrent liabilities
8.062,885
9,284,668
TOTAL LIABILITIES
12,725,024
12,720,955
NET POSITION
Net investment in capital assets
99,158,467
99,537,198
Restricted!
Restricted for revenue bond principal and interest
364,510
428,646
Unrestricted
29,491,491
27,038,316
TOTAL NET POSITION
$ 129,014,468
$ 127,004,160
0
CITY OF ALLEN, TEXAS
EXHIBIT D-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
WATER AND SEWER ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
2013
2012
OPERATING REVENUES
Water sales
$ 17,805,137
$ 16,665,581
Sewer charges
12,215,785
11,307,807
Connection fees
179,852
138,735
Service charges
607,310
581,584
Gifts and contributions
1,000,000
1,000,000
Miscellaneous
322,615
358,370
Total operating revenues
32,130,699
30,052,077
OPERATING EXPENSES
Personnel services
4,213,531
3,904,753
Contractual and other services
18,145,477
15,682,441
Maintenance
299,122
236,620
Supplies
258,593
234,712
Depreciation
5,816,795
5,575,409
Other
145,195
185,714
Total operating expenses
28,878,713
25,819,649
OPERATING INCOME
3,251,986
4,232,428
NON-OPERATING REVENUES (EXPENSES)
Interest income
68,829
166,908
Interest expense
(446,474)
(489,999)
Total non-operating expenses
(377,645)
(323,091)
INCOME BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
2,874,341
3,909,337
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees
1,320,089
877,964
Capital contributions
2,468,211
5,673,079
Transfers in
33,692
32,419
Transfers out
(4,686,025)
(4,483,023)
Total capital contributions and transfers
(864,033)
2,100,439
CHANGE IN NET POSITION
2,010,308
6,009,776
NET POSITION, BEGINNING OF YEAR
127,004,160
120,994,384
NET POSITION, END OF YEAR
$ 129,014,468
$ 127,004,160
85
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
WATER AND SEWER ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash recalvetl fere customers
Cash paitl to employees for services
Cash paid for goods and services
NO cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
Transfers out
NO cash used In non pltal financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities
Interest and fees paid on bng-term debt
Acquisition and construction of capital assets
Contributions from developers
NO cash used In capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
Interest on investments
Net cash prevldad by (used In) Investing activities
NET INCREASE IN CASH AND CASH EOUNALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVRIES
Net operating income
Adjustments to reconcile net operating income
to net cash provided by operating activities'.
Depreciation and amortization expense
Change in assets and liabilities
Accounts receivable
Inventories
Accounts payable
Accrued liabilities
Retainage payable
Compensated absences
UBlitydeposits
Total adjustments
Not cash provided by operating activities
NONCASH INVESTING ACTIVITIES
Charge in the fair value of investments
NON-CASH FINANCING ACTNI'TIES
Contributions of capital assets from developers
RECONCILIATION OF CASH
Cash and cash equivalents - current
Restricted cash and cash equivalents
.m'
EXHIBIT D•3
2013 3012
$ 33,42.575 $ 29,232,125
(4,189,698) (3,889,122)
(17,673,920) (17,435,211)
11,578,957 7,907,792
33,692 32,419
(4,6%,025) (4,483,023)
(4,852,333) (4,450,604)
(1,165,000)
(1,235,000)
(460,650)
(504,674)
(1,827,262)
(2,414,062)
1,320,089
877,964
(2,132,823) (3,275,772)
(261,213)
1,812,779
165,118
114,296
(96.095)
1,927,075
4,697,7%
2,108,491
8,789,430
6.680,939
$ 13.487,136
$ 8,789,430
$ 3,251,9116
$ 4,232,428
5,853,297
5,611,911
1,311,876
901
1,115,250
16,001
(42,293)
23,833
48.046
8,326,971
$ 11,578,957
(819,952)
36,530
(1,NS698)
16,285
(210,930)
15,631
34.587
3,675,364
$ 7,907.792
f (57.8501 $ 2,036
f 2,468.211 $ 5,673,079
$ 11,790,766 $ 7,054,768
1,696,350 1)34,662
$ 13.467,136 $ 8,789,430
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET POSITION
SOLID WASTE ENTERPRISE FUND
SEPTEMBER 30, 2013 AND 2012
12,923
EXHIBIT D-4
Machinery and equipment
2013
2012
ASSETS
21,315
21,315
CURRENT ASSETS
(21,045)
(20,505)
Cash and cash equivalents
$ 1,417,775
$ 1,064,462
Investments
1,461,035
2,126,049
Receivables, net of allowance for uncollectibles:
3,457,193
3,672,603
Accounts
312,093
349,809
Other
258,266
115,534
Accrued interest
7,754
15,939
Total current assets
3,456,923
3,671,793
NONCURRENT ASSETS
CAPITAL ASSETS
Vehicles
12,923
12,923
Machinery and equipment
8,392
8,392
Total capital assets
21,315
21,315
Less: accumulated depreciation
(21,045)
(20,505)
Capital assets, net of accumulated depreciation
270
810
Total noncurrent assets
270
810
TOTAL ASSETS
3,457,193
3,672,603
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
31,730
218,816
Accrued compensated absences -current
52,660
46,762
Accrued liabilities
25,993
27,519
Total current liabilities
110,383
293,097
NONCURRENT LIABILITIES
Accrued compensated absences
2,970
2,639
Total noncurrent liabilities
2,970
2,639
TOTAL LIABILITIES
113,353
295,736
NET POSITION
Net investment in capital assets
270
810
Unrestricted
3,343,570
3,376,057
TOTAL NET POSITION
$ 3,343,840
$ 3,376,867
87
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
OPERATING REVENUES
Garbage collections
Other
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 TRANSFER:
TRANSFERS
Transfers out
Total transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
eL•
EXHIBIT D-5
2013 2012
$ 6,114,951
$ 6,040,165
47,983
48,540
6,162,934
6,088,705
444,411
425,712
4,942,657
4,891,898
2,353
2,687
11,697
13,214
540
540
93,996
94,998
5,495,654 5,429,049
667,280 659,656
4,221 21,619
671,501 681,275
(704,528) (819,620)
(704,528) (819,620)
(33,027) (138,345)
3,376,867 3,515,212
$ 3,343,840 $ 3,376,867
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
EXHIBIT D-6
2013
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$6,066,103
$ 5,994,980
Cash paid to employees for services
(438,182)
(415,253)
Cash paid for goods and services
(5,239,315)
(5,078,651)
Net cash provided by operating activities
388,606
501,076
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out
(704,528)
(819,620)
Net cash used in non -capital financing activities
(704,528)
(819,620)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
665,014
600,357
Interest on investments
4,221
21,619
Net cash provided by investing activities
669,235
621,976
NET INCREASE IN CASH AND CASH EQUIVALENTS
353,313
303,432
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,064,462
761,030
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 1,417,775
$ 1,064,462
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 667,280
$ 659,656
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation
540
540
Change in assets and liabilities:
Accounts receivable
(105,016)
(88,546)
Other receivables
8,185
(5,179)
Accounts payable
(187,086)
(85,829)
Accrued liabilities
(1,526)
9,975
Accrued compensated absences
6,229
10,459
Total adjustments
(278,674)
(158,580)
Net cash provided by operating activities
$ 388,606
$ 501,076
M:
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET POSITION
DRAINAGE ENTERPRISE FUND
SEPTEMBER 30, 2013 AND 2012
EXHIBIT D-7
2013
2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 461,691
$ 375,809
Investments
407,121
610,506
Receivables:
Accounts
70,722
89,611
Accrued interest
2,161
5,295
Total current assets
941,695
1,081,221
NONCURRENT ASSETS
CAPITAL ASSETS
Other improvements
496,132
496,132
Vehicles
31,378
31,379
Machinery and equipment
430,683
430,682
Total capital assets
958,193
958,193
Less: accumulated depreciation
(572,464)
(535,407)
Capital assets, net of accumulated depreciation
385,729
422,786
Total noncurrent assets
3&5,729
422,786
TOTAL ASSETS
1,327,424
1,504,007
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
39,808
28,832
Accrued compensated absences
33,963
27,287
Accrued liabilities
8,704
8,108
Total current liabilities
82,475
64,227
NONCURRENT LIABILITIES
Accrued compensated absences
2,514
2,020
Total noncurrent liabilities
2,514
2,020
TOTAL LIABILITIES
84,989
66,247
NET POSITION
Net investment in capital assets
385,729
422,786
Unrestricted
856,706
1,014,974
TOTAL NET POSITION
$ 1,242,435
$ 1,437,760
419
CITY OF ALLEN, TEXAS EXHIBIT D-8
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
OPERATING REVENUES
Drainage fees
Service charges
Other
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 (loss)
INCOME BEFORE TRANSFERS
TRANSFERS
Transfers out
Total transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
91
2013 2012
$ 1,299,562
$ 1,280,684
53,109
57,996
2,520
554
1,355,191
1,339,234
434,276
423,883
167,465
150,962
212,142
207,240
53,502
46,873
37,057
48,680
5,737
5,088
910,179
882,726
445,012
456,508
(1,553) 6,601
443,459 463,109
(638,784) (797,593)
(638,784) (797,593)
(195,325) (334,484)
1,437,760 1,772,244
$ 1,242,435 $ 1,437,760
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
EXHIBIT D-9
2013
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 1,374,080
$ 1,308,776
Cash paid to employees for services
(427,106)
(419,374)
Cash paid for goods and services
(427,274)
(409,047)
Net cash provided by operating activities
519,700
480,355
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out
(638,784)
(797,593)
Net cash used in non -capital financing activities
(638,784)
(797,593)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
203,385
404,820
Interest on investments
1,581
5,564
Net cash provided by investing activities
204,966
410,384
NET INCREASE IN CASH AND CASH EQUIVALENTS
85,882
93,146
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
375,809
282,663
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 461,691
$ 375,809
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 445,012
$ 456,508
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation
37,057
48,680
Change in assets and liabilities:
Accounts receivable
18,889
(30,458)
Accounts payable
10,976
(866)
Accrued liabilities
596
1,982
Compensated absences
7,170
4,509
Total adjustments
74,688
23,847
Net cash provided by operating activities
$ 519,700
$ 480,355
92
CITY OF ALLEN, TEXAS
EXHIBIT D-10
COMPARATIVE STATEMENTS OF NET POSITION
GOLF COURSE ENTERPRISE FUND
SEPTEMBER 30, 2013 AND 2012
2013 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Receivables:
Accounts
Accrued interest
Prepaid items
Total current assets
NONCURRENT ASSETS
CAPITAL ASSETS
Furniture and fixtures
Machinery and equipment
Less: accumulated depreciation
Capital assets, net of accumulated depreciation
Total noncurrent assets
TOTAL ASSETS
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
Accrued liabilities
Accrued compensated absences
Capital leases payable - current
Customer deposits payable
Total current liabilities
NONCURRENT LIABILITIES
Capital leases payable
Accrued compensated absences
Total noncurrent liabilities
TOTAL LIABILITIES
NET POSITION
Unrestricted
TOTAL NET POSITION
$ 591,607 $ 377,944
- 127
2,822
250
-
1,415
11,050
11,050
605,479
390,786
10,894
10,894
937,453
563,641
(399,177)
(533,071)
549,170
41,464
549,170
41,464
1,154,649
432,250
149,364
55,712
39,103
27,016
75,358
67,083
113,687
26,914
23,130
11,184
400,542
187,909
435,583
14,550
18,854
16,784
454,437
31,334
854,979
219,243
299,670
213,007
$ 299,670
$ 213,007
CITY OF ALLEN, TEXAS EXHIBIT D-11
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
OPERATING REVENUES
Service charges
Gifts and contributions
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING LOSS
NON-OPERATING REVENUES
Interest income (loss)
LOSS BEFORE TRANSFERS
TRANSFERS
Transfers in
Total transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
94
2013 2012
$ 1,924,706
$ 59,054
-
600,000
12,724
3,804
213,007
36,069
1,937,430
662,858
1,328,541
813,795
724,427
186,510
68,145
26,803
229,508
66,859
68,212
64,410
64,634
20,638
2,483,467
1,179,015
546,037) (516,157)
(1,115) 2,485
(547,152) (513,672)
633,815
690,610
633,815
690,610
86,663
176,938
213,007
36,069
$ 299,670 $
213,007
CITY OF ALLEN. TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash paid to employees for services
Cash paid for goods and services
Net cash used in operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
Net cash provided by non -capital financing activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Capital lease payment
Net cash used In capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
Interest on investments
Net cash provided by investing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION OF OPERATING LOSS TO NET CASH
USED IN OPERATING ACTIVITIES
Net operating loss
Adjustments to reconcile net operating loss
to net cash used in operating activities:
Depreciation
Change in assets and liabilities:
Accounts receivable
Accounts payable
Accrued liabilities
Customer deposits
Compensated absences
Total adjustments
Net cash used in operating activities
95
EXHIBIT D-12
2013 2012
$ 1,934,858 $ 670,072
(1,318,196) (802,274)
(969,029) (295,836)
(352,367) (428,038)
633,815 690,610
633,815 690,610
(68,212) (62,048)
(68,212) (62,048)
127
98,916
300
1,070
427
99,986
213,663
300,510
377,944
77,434
$ 591,607
$ 377,944
$ (546,037) $ (516,157)
68,212 64,410
(2,572)
7,214
93,652
(1,272)
12,087
5,384
11,946
862
10,345
11,521
193,670
88,119
$ (352,367)
$ (428,038)
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to amount for financing of services provided by one department to
other departments of the City on a cost -reimbursement basis.
Replacement Fund - amounts for the costs associated with the acquisition of vehicles, machinery,
and equipment through the rental of such items to other departments.
Risk Management Fund — amounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their
covered dependents.
CITY OF ALLEN, TEXAS
EXHIBIT E-1
COMBINING STATEMENT OF NET POSITION
122,567
135,142
257,709
INTERNAL SERVICE FUNDS
Accrued liabilities
-
6,080
6.080
SEPTEMBER 30,2013
Incurred but not reported claims
812,410
812,410
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 20, 2012)
TOTAL LIABILITIES
122,567
953,632
1,076,199
1,211,128
NET POSITION
RISK
TOTALS
REPLACEMENT
MANAGEMENT
-
7,078,459
6,648,203
FUND
FUND
2013
2012
ASSETS
TOTAL NET POSITION
$ 17,169,347
$ 3,952,517
$21,121,864
CURRENT ASSETS
Cash and cash equivalents
$ 4,494,055
$ 2,200,715
$ 6,694,770
$ 4,767,593
Investments
5,689,207
2,618,986
8,208,193
8,280,700
Accrued interest receivable
30,193
13,368
43,561
70,574
Prepaid items
173,080
173,080
200,077
Total current assets
10,213,455
4,906,149
15,119,604
13,318,944
CAPITAL ASSETS
Machinery and equipment
2,068,592
-
2,068,592
1,842,460
Vehicles
10,543,978
-
10,543,978
9,618,663
Construction In progress
1,510,164
-
1,510,164
1,369,778
Accumulated depreciation
(7,044,275)
(7,044,275)
(6,182,698)
Capital assets,
net of accumulated depreciation
7,078,459
-
7,078,459
6,648,203
TOTAL ASSETS
17,291,914
4,906,149
22,198,063
19,967,147
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable
122,567
135,142
257,709
379,146
Accrued liabilities
-
6,080
6.080
Incurred but not reported claims
812,410
812,410
831,962
TOTAL LIABILITIES
122,567
953,632
1,076,199
1,211,128
NET POSITION
Net investment in capital assets
7,078,459
-
7,078,459
6,648,203
Unrestricted
10,090,888
3,952,517
14,043,405
12,107,816
TOTAL NET POSITION
$ 17,169,347
$ 3,952,517
$21,121,864
$18,756,019
97
CITY OF ALLEN, TEXAS EXHIBIT E-2
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER, 30, 2012)
OPERATING REVENUES
Charges for services
Other income
Total operating revenues
Personal services
Contractual services
Supplies
Depredation
Total operating expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES
Investment earnings
Gain on disposal of capital assets
Total non-operating revenues
INCOME BEFORE TRANSFERS
TRANSFERS
1,439,938 410,701
25,087
RISK
TOTALS
REPLACEMENT
MANAGEMENT
7,804
1,612,471
FUND
FUND
2013
2012
3,210,475
NET POSITION, END OF YEAR =L
17,169,347
$ 3,952,517
$ 2,826,390
$ 9,006,468
$ 11,832,858
$ 10,060,546
87,498
2,046,661
2,134,159
1,239,469
2,913,888
11,053,129
13,967,017
11,300,015
-
562,050
562,050
471,610
31,430
10,080,378
10,111,808
9,888,832
-
-
-
206,893
1,442,520
1,442,520
1,320,768
1,473,950
10,642,428
12,116,378
11,888,103
1,439,938 410,701
25,087
7,804
147,446
Total transfers
172,533
7,804
1,612,471
418,505
Transfers in
11,332
323,537
Total transfers
11,332
323,537
CHANGE IN NET POSITION
1,623,803
742,042
NET POSITION, BEGINNING OF YEAR
15,545,544
3,210,475
NET POSITION, END OF YEAR =L
17,169,347
$ 3,952,517
M
1,850,639 (588,088)
32,891 98,798
147,446 30,887
180,337 129,685
2,030,976 (458,403)
334,869
1,902,497
334,869
1,902,497
2,365,845
1,444,094
18,756,019 17,311,925
$ 21,121,864 $ 18,756,019
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds
Cash paid Io employees far services
Cash paid for goods and services
Cash paid far claims
Net cash provided by operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
Not cash provided by nancadbil financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Aryuisition of .,he assets
Proceeds ham sale of capital assets
Net cash used in captal and related financing activities
CASH FLOWS FROM INVESTING ACTRATIES
Purchase of invesMent violence
Proceeds hcm sale and maturities ofimestment securities
Interest on Investments
Net cash provitletl by (used In) Investing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Operating income (loss)
Ad(usbnents ro reconcile operating income (loss)
to net cash provided by operating activities.
Depreciation
Change in assets and liabilities:
Prapaids
Accounts payable
Total adjustments
Net cash provided by opsanding activities
99
EXHIBIT E-3
RISK TOTALS
REPLACEMENT MANAGEMENT
FUND FUND W13 2012
$
2,932,368
$ 11,080,126
$14,012,494
$ 111353,102
-
(562,050)
(562,050)
(471,610)
(31,430)
(6,617,747)
(9,649,1n)
(6,506,899)
(3,616,040)
(3,616,090)
(3,432,437)
2,900,938
284,289
3,185,227
942,156
11,332
323,537
334,839
1,902,497
11,332
323,537
334,869
1,902,497
(1,8]2,776)
-
(1,872,71`8)
(2,303,368)
147446
147,46
30,887
(1,725,330)
(1,726,330)
(2,272,481)
-
(153,812)
(153,812)
1,0]].012
226,319
-
226,319
-
42,468
17,436
59,904
69,853
268,]8]
(136.376)
132,411
1.146,865
1,455,]2]
471,450
1,927,177
1,]19,03]
3,0361328
1,729,265
4,]6],593
3,098,556
If
4,94,055
$ 2,200,715
$ 6,6847]0
$ 4,]6],593
$
1,439,938
$ 410,701
$ 1,85,639
$ (588,088)
1,442,520
-
1,442,520
1,320,768
-
26.997
26,997
(51,000)
18,480
(153,408)
(134,929)
260,476
1.461.000
(126,12)
1,334,588
1,530,244
$
2,900,938
$ 28,289
$ 3,185.22]
$ 9421156
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.
100
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2013 AND 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Sales tax receivable
Accounts receivable
Accrued interest receivable
Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
Accrued and other liabilities
TOTAL LIABILITIES
FUND BALANCES
Nonspendable
Restricted
Debt service
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
101
EXHIBIT F-1
2013 2012
$ 3,929,847 $
2,761,752
4,583,427
3,718,159
1,362,313
1,291,485
2,327
2,153
24,324
23,593
6,298
6,298
$ 9,908,536 $
7,803,440
$ 12,711 $ 182,509
11,375 9,655
24,086 192,164
6,298 6,298
752,345 752,727
9,125,807 6,852,251
9,884,450 7,611,276
$ 9,908,536 $ 7,803,440
CITY OF ALLEN, TEXAS EXHIBIT F-2
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30,2013
Total governmental fund balance
$ 9,884,450
Amounts reported for governmental activities in the statement of net position
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.
325,768
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.
(62,537)
Long-term liabilities, including bonds payable are not due and payable in the
wment period and, therefore, are not reported in the fund financial statements.
(18,266,095)
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.
5,481,185
Net position of governmental activities
102
=L (2,637,229)
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
REVENUES
Sales and other taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
Economic development
Capital projects:
Economic development
Debt service:
Principal refirement
Interest and fiscal charges
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
103
EXHIBIT F-3
2013
2012
$ 7,993,037
$ 7,396,803
32,354
31,961
1,635
1,824
8,027,026
7,430,588
4,159,337
4,612,636
-
7,251
820,000
800,000
774,515
796,128
5,753,852
6,216,015
2,273,174
1,214,573
7,611,276
6,396,703
$ 9,884,450
$ 7,611,276
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, 2013
EXHIBIT F-4
Net change in fund balances - total governmental funds
$ 2,273,174
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 that issued. However, these amounts are deferred and amortized
in the government -vide financial statements.
(23,907)
The repayment of the principal of long-term debt consumes the current financial resources
of governmental funds ($820,000). The transaction, however, has no effect on not assets.
820,000
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.
2,006
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.
(159,940)
Change in net position of governmental activities
104
It 2,911,333
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2013 AND 2012
EXHIBIT F-5
2013
2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
3,002,013
$
2,264,654
Investments
2,651,935
1,307,678
Sales tax receivable
1,362,313
1,291,485
Accounts receivable
2,327
2,153
Accrued interest receivable
14,074
29,510
TOTAL ASSETS
$
7,032,662
$
4,895,480
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
$
106,766
$
328,015
Retamage payable
369,436
TOTAL LIABILITIES
106,766
697,451
FUND BALANCES
Restricted
Debt service
1,101,377
1,106,296
Assigned for capital projects
3,084,147
1,487,874
Unassigned
2,740,372
1,603,859
TOTAL FUND BALANCES
6,925,896
4,198,029
TOTAL LIABILITIES AND FUND BALANCES
$
7,032,662
$
4,895,480
105
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30,2013
EXHIBIT F-6
Total governmental fund balance
$ 6,925,896
Amounts reported for governmental activities in the statement of net position
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.
483,809
Interest payable on long-tens debt does not require current financial resources,
and, therefore, is not reported as a liability in the governmental funds
balance sheet.
(155,236)
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.
(33,532,586)
Net position of governmental activities
$ (26,278,117)
106
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012
REVENUES
Sales and other taxes
Investment earnings
Total revenues
EXPENDITURES
Current:
Community development
Capital projects:
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
107
EXHIBIT F-7
2013
2012
$ 7,993,037
$ 7,396,803
1,828
38,137
7,994,865
7,434,940
928,921
1,383,429
1,386,961
8,854,142
1,045,000
1,005,000
1,906,116
1,947,008
5,266,998
13,189,579
2,727,867
(5,754,639)
4,198,029
9,952,668
$ 6,925,896
$ 4,198,029
CITY OF ALLEN, TEXAS
EXHIBIT F-8
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, 2013
Net change in fund balances -total governmental funds
$ 2,727,867
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.
(44,017)
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.
3,607
Repayment of the principal on long -tern debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net position.
1,045,000
Change in net position of governmental activities
$ 3,732,457
108
CITY OF
AN
pEapl�flRsr
REspECT INTEGRITY DELIVER EXCEL
CAPITAL ASSETS
USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
CITY OF ALL EN
AV
PEOP�EFIRsr
RESPECT INTEGRITY !DELIVER EXCEL
CITY OF ALLEN, TEXAS
COMPARATIVE SCHEDULES BY SOURCE
AS OF SEPTEMBER 30, 2013
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
EXHIBIT G-1
2012
$ 126,146,774
127,639,176
10,339,350
8,058,581
2,749,635
1,490,728
439,913,639
748,962,638 716,337,883
11,645,278 29,101,423
$ 760,607,916 $ 745,439,306
$ 188,469,879 $ 186,598,852
10,475,000 10,475,000
372,456,483 364,069,269
9,951,500 9,951,500
157,687,465 153,095,694
21,567,589 21,248,991
$ 760,607,916 $ 745,439,306
(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.
109
2013
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land and land improvements
$ 129,147,461
Buildings
131,347,203
Machinery and equipment
10,497,952
Furniture and fixtures
8,042,531
Vehicles
2,518,180
Books
1,355,346
Infrastructure
466,053,965
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
EXHIBIT G-1
2012
$ 126,146,774
127,639,176
10,339,350
8,058,581
2,749,635
1,490,728
439,913,639
748,962,638 716,337,883
11,645,278 29,101,423
$ 760,607,916 $ 745,439,306
$ 188,469,879 $ 186,598,852
10,475,000 10,475,000
372,456,483 364,069,269
9,951,500 9,951,500
157,687,465 153,095,694
21,567,589 21,248,991
$ 760,607,916 $ 745,439,306
(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.
109
CITY OF ALLEN, TEXAS
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF
GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY (a)
AS OF SEPTEMBER 30, 2013
Police
Land
- 8,528,747
Machinery&
Function and Activity
Land Improvements
Buildings
Equipment
GENERAL GOVERNMENT
78,932
18,016,320
1,601,849
Municipal court $
631,788 $ - $
289,669
$ 137,584
City administration
2,719,532 -
8,871,016
274,261
Information technology
- -
-
555,408
Human resources
108,910,419
20,809,190
770,120
Internal services
- -
-
372,059
Finance
15,478,720
826,070 70,288,336
5,115,847
Total general government
3,351,320
9,160,685
1,339,312
PUBLIC SAFETY
15,478,720
828,070 81,329,723
5,577,376
Police
-
- 8,528,747
694,020
Fire
78,932
9,487,573
907,829
Total public safety
78,932
18,016,320
1,601,849
PUBLIC WORKS
Community services & streets
51,274,858
- 13,184,077
609,836
Engineering
57,635,561
7,625,113
160,284
Total public works
108,910,419
20,809,190
770,120
CULTURE & RECREATION
Parks & recreation
15,478,720
826,070 70,288,336
5,115,847
Library
11,041,387
461,529
Total culture and recreation
15,478,720
828,070 81,329,723
5,577,376
COMMUNITY DEVELOPMENT
Building & code compliance
Planning & development
Total community development
GRANT ADMINISTRATION
Grant Administration 500,000
Total grant administra0on 500,000
Construction In Progress
16,988
16,988
2,031,285 1,192,307
2,031,285 1,192,307
Total governmental funds capital assets $ 128,319,391 $ 828,070 $ 131,347,203 $ 10,497,952
(a) This schedule presents only the capital asset balances related to governmental funds, Including infras5uc ure
Accordingly, the capital assets reported In the internal sewde funds are excluded from the above amounts. Generally, the
capital assets of internal service funds are included as governmental actrvNes In the statement of net assets.
110
Furniture &
Other Consuvc0on in
FiMures
Vehicles
Books
Improvements Progress
TMeI
11,645,278
$ 413 $
- $
- $
6,178 $ - $
1,065,632
838,708
-
-
-
12,703,517
21,624
-
-
5,539,835 -
6,116,867
5,771
-
-
-
5,771
18,321
122,770
4,311 -
517,461
23,991
23,991
908,828
122,770
5,550.324
20,433,239
260,089
413,244
-
1,148,333 -
11,044,433
289,841
1,053,653
59,199
11,877,027
549,930
1,466,897
1,207,532
22,921,460
57,718
97,649
-
260,941,692 -
326,165,830
469,584
79,884
162,195,616
218,166,042
527,302
177,533
413,137,306
544,331,872
5,207.646
473,841
-
43,704,872 -
141,097,332
839,459
1,289,789
3,519
13,635,683
6,047,105
473,841
1,289,789
43,708,391
164,733,015
-
38,260
-
- -
38,260
9,386
26,354
9,366
38,260
64,614
238,879
65,657
2,450,410
6,478,438
-
238,879
65,557
2,450,410 -
6,478,438
111
11,645,278
11,645,278
$ 8,042,531
$
2,518,180
$
1,355,346
$
466,053,965
$
11,645,278
$
760,607,916
111
CITY OF ALLEN, TEXAS EXHIBIT GJ
SCHEDULE OF CHANGES IN CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS — BY FUNCTION AND ACTIVITY (a)
FOR THE YEAR ENDED SEPTEMBER 30, 2013
(a) This schedule presents only me capital asset balances stead! to govemmental funds, including
affastmcture. Accordmgly, bre capital assets spored In Ne Intemai service funds are excluded (mm Me above
punts. Generally, the capital assets of Informal service funds are included as gowntmental achvibes in Me
statement of net assets.
112
Govommental Funds
GovemmeNal Funds
Capital Assets
Developer
Capdel Assets
Function and Activ(N
October 1. 2012
Contnbutiona
Addlticns
Deductions
T,anafere
Septembor 30, 2013
GENERALGOVERNMENT
Munitipal Court
$ 985,933
$ -
$ -
$ -
$ 79,699
$ 1,085,632
City Adminstation
12.783,80
-
23,820
-
(104j 10)
12,]03,51]
IMormabun TeMnolo9y
1,906,489
-
17,231
-
4,10,147
6,116,867
Human Resources
5,771
-
-
-
5,771
Intamal Services
548,07
-
-
-
(3.616)
517,481
Finance
23,991
23,991
Total General Government
16,254,068
41,051
4,138,120
20,433,239
PUBLIC SA M
Police
11,403,809
-
5],820
(22],253)
(189,513)
11,044,433
Fre
9,782,663
(20.8]5)
2,135,239
11,8]1,027
Total Public Safety
21,166,272
57,020
(248,128)
1,945,6913
22.921,460
PUBLIC WORKS
Community services 8 streets
326,107,594
-
-
(21784)
-
32,197,830
Engineering
199,813,565
8,387,214
1,02A,=
(269,658)
9,409.991
218,188,042
Total Public Wonks
525,801,159
8,387,214
1,024,930
(291,422)
9,409,991
544,331,072
CULTURE & RECREATION
Parks B Recreation
136,400,300
-
20,919
(191,018)
4,679,131
141,097,332
Library
13,111$2,080
285594
(293,950)
(2W,015)
13,635,683
Total Culture a Recreation
150,252,360
494,513
1484.9741
4,471,116
154.733,015
COMMUNITY DEVELOPMENT
BwMing 8 Code Compliance
62,343
-
-
(24,083)
-
381260
Planning a Development
26.354
2,354
Total Community Development
88,697
(24,1383)
64,814
GRANTADMINISTRATION
Clint kiministrattn
2,775,327
20,107
(64,12]1
3,747.131
8,478,438
Total Gmnt Administration
2,7]5.32]
20.107
(6.12])
3,747.131
8.478,438
Total general rued assets allocated
by function
716,337,8133
8,30],214
1,638,221
(1,112,734)
23,712.054
748,962,638
Conatrucibn in progress
29,101,4236,255,997
-
-
(23,712,05.
11,645,278
Totalg.m.nml fulls capital
..am
$ 745,439,397
$ 8,387,214
$ 7,8)4,130
E 1,112734
E
Y 760,60,916
(a) This schedule presents only me capital asset balances stead! to govemmental funds, including
affastmcture. Accordmgly, bre capital assets spored In Ne Intemai service funds are excluded (mm Me above
punts. Generally, the capital assets of Informal service funds are included as gowntmental achvibes in Me
statement of net assets.
112
STATISTICAL SECTION
(UNAUDITED)
CITY OFALLEN
AF
PEOPLE FIRSt
RESPECT INTEGRITY DELIVER EXCEL
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 Cltys overall financial health. This information has not been audited by the
independent auditor.
Contents Table ft
Financial Trends
1, 2, 3 & 4
These tables contain trend information to help the reader understand how the Ciys financial
performance and well-being have changed overtime.
Revenue Capacity
5, 6, 7 & 8
These tables contain information to help the reader assess the Ciys 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 Ciys
cuff ant levels of outstanding debt and the City's 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 City's 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.
113
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CITY OF ALLEN,TEXAS TABLE 15
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal Year
FunctiONProamm 20042005 20 2007 2008 220 9 2010 2011 2012 2LI3
General Government
and Adminstration 42.25 41.75 43.75 46.75 52.75 55.50 55.50 56.00 57.50 62.00
Public Safety 202.50 210.00 233.00 239.00 251.00 255.00 255.00 257.50 276.50 284.50
Public Works 50.00 52.00 50.00 50.00 51.50 52.50 52.50 54.00 53.00 53.00
Culture and Recreational 130.10 144.96 157.64 161.04 162.14 162.92 213.87 215.36 214.86 214.50
Water and Sewer 50.50 53.50 56.50 57.00 60.00 60.50 60.50 63.50 63.50 66.50
Golf Course' - 25.00 34.00 34.00 34.00 34.08 34.08 32.49 23.63 32.54
Community Development 25.00 26.00 26.00 28.50 30.00 31.00 29.00 28.00 28.00 26.00
Risk Management 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00
Economic Development 3.00 3.00 3.00 4.00 4.00 4.00 4.25 4.25 4.25 4.25
Total 504.35 558.21 605.89 622.29 647.39 657.50 706.70 713.10 723.24 746.29
Source: City Budget Book
Note: 'The City acquired the Golf Course in Fiscal Year 2005.
129
CITY OF ALLEN,TEXAS TABLE 16
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
IUnauditedl
Fiscal Year
FunclbnlPrOaram Ill 2005 am17 am 2009 ID10 2011 2012 2011
Public Safety
Police
Number of Employees 117 123 142 140 154 157 157 160 172 1A
Number of Violations(Contains) 20.282 16,970 20,749 18.562 21,462 18,251 17,504 17,925 13,812 13,902
Fire
Number of Employees IS 87 91 91 97 9B 98 98 104 110
Number of FlrelONer cans 1,477 1.618 1,844 1,298 2,144 2.045 1,362 1,468 1,320 1,377
Number of EMS rams 1,374 1,517 1,687 2.416 2,000 2,084 2,885 3,155 3,193 3,813
Development Seel
Streate paved(mins) 6 13 21 14 5 2 4 3 4 1
Bmoing Earl lesmtl' 4,992 4,888 5,871 4,903 5,287 4,014 4,689 4,993 5,192 6,013
Call and Recreatnnal
Parke and Recreation
Pah maintained&.paraded per name S 5,865 $ 4,741 IS 5.796 $ 5,083 $ 5,959 $ 4772 $ 5,121 $ 5.393 $ Ell $ 4,3M
Padlcipann in Leisure Serl Programs fall 307,469 308,699 351,931 385,376 501.626 5811535 624,643 681645 666.452
Rounds of Gd f WA 35,866 35,919 33,685 39,886 43,527 37,057 38)75 - 33,615
Library
Volumes in Warmers 11516,13 119,241 128,799 130.063 135,079 131,048 127,685 122,522 124,471 124,228
Water ark Saver
NumWrof Wanr Consumers 21,933 22,870 24,438 25,326 26,162 26,598 27,094 27,495 27,974 20,609
Presage Dairy Water Consumption(galos) 10,579,183 11,02L5M 14,300,342 9,3Pp66 13,131,057 14,018,701 14,542,980 17,115,783 14,336,00) 14.479,000
Madmum Storage Camel(million Wgellans) 25.5 27.5 275 33.5 31.5 31.0 310 33.0 330 330
Sanitation
ReoAdabns Colle ded(om) 3205 5.515 61502 6.954 7,571 9,232 9,374 9,307 9.517 9.667
Sola Waste Warned!tad) 47,268 56.669 47,512 49.822 52,689 52,457 53,660 56,233 53,960 53,445
Source:City Dep mormar s
Nobe:WA-Data mol Availebn.
'Indudes medical commer 1,and mlaielammus(e,pals,fences) ammil
elmdude Cooke and medal
`Gdf Co mar wffi closed for remernoor In FY2o12 and Imman el in January 2813
130
CITY OF ALLEN,TEXAS TABLE 17
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal Year
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Patrol Units 17 17 17 18 23 24 23 23 27 27
Fire Stations 4 4 4 4 4 4 4 4 5 5
Police Motorcycle Units 4 4 4 4 4 4 4 4 4 4
Development Services
Streets-Paved(miles) 259 272 293 307 312 314 318 321 325 326
Alleys-Paved(miles) 143 149 158 159 161 161 163 163 163 163
Cultural and Recreational
Parks(acres) 525 554 573 578 578 578 576 576 597 597
Playgrounds 21 22 24 32 32 32 32 32 32 32
Swmming Pools(outdoor) 1 1 1 1 1 1 1 1 1 1
Recreation Centers 1 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1 1
Tennis Courts 5 5 5 5 5 5 5 5 5 5
Natatorium 1 1 1 1 1 1 1 1 1 1
Visitor(Youth)Center - 1 1 1 1 1 1 1 1 1
Golf Course - 1 1 1 1 1 1 1 1 1
Event Center - - - - - - 1 1 1 1
Water and Sewer
Water Mains(miles) 367 381 410 427 439 445 452 456 461 467
Fire Hydrants 2,733 3,444 3,748 3,894 3,941 3,954 3,981 4,022 4,144 4,210
Sanitary Se"m(miles) 283 296 316 329 334 336 339 342 346 352
Storm Sewer Lines(miles) 85 90 97 101 103 104 105 106 107 108
Source:City Departments
131