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Public Art Collection Featured on Cover
Piece:
"Ocean"
Artist:
Roger White Stoller
Materials:
Bronze, Shanxi Black
Granite
Location:
Allen Public Library
Piece:
"Rail Ladder Fire"
Artists:
Christopher Fennell
Materials:
Decommissioned Fire Ladders and Steel Train Rails
Location:
Fire Station N5, 1950 W. McDermott Dr.
Piece:
"Blackland Prairie Song"
Artists:
Andrea Myklebust and Stanton Sears
Materials:
Indiana Limestone, Stainless Steel with Bronze and Glass Accents
Location:
City Hall Entry, 305 Century Parkway
Piece:
"A is For Allen"
Artist:
Gordon Huether
Materials:
Native stone, Stainless
Steel, Powder Coated
Steel, and Glass
Location:
Exchange Parkway
For more on Allen, Texas visit:
citvofallen.ore
allentx.com
vistallentexas.com
For more information on the City of
Allen's public art projects visit:
http://www.citvofallen.orklindex.a
sox7NID=1449
Piece:
Pier
Piece:
"Out of the ParklBoyl"
"stir:',
'The Allen Historic Dam"
Artist.
Artist:
- Artist
Walt Horton
Brad Goldberg
Materials:
Materials:
. -.: Amanda Dunbar
Bronze
Limestone, Water, Concrete, Plantings
Materials:
ab::
Oil on Canvas
Location:
Location:
Allen Station Park
Allen City Hall
Location:
Baseball Complex
j
City Hall Rotunda, 305 Century Pkwy
For more on Allen, Texas visit:
citvofallen.ore
allentx.com
vistallentexas.com
For more information on the City of
Allen's public art projects visit:
http://www.citvofallen.orklindex.a
sox7NID=1449
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF ALLEN
FISCAL YEAR ENDED
SEPTEMBER 30, 2014
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
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
vi
Organizational Chart
vii
Elected Officials and Administrative Officers
viii
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
6
27
Statement of Revenues, Expenses and Changes
In Net Position — Proprietary Funds
9
26
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, 2014
TABLE OF CONTENTS
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 -Tenn Debt
49
Note 6.
Interfund Transfers
58
Note 7.
Retirement Plan
59
Note 8.
Water and Sewer Contracts
62
Note 9.
Deferred Compensation Plan
62
Note 10.
Risk Management
62
Note 11.
Other Postemployment Benefits (OPEB)
64
Note 12.
Commitments and Contingent Liabilities
67
Note 13.
Cumulative Change in Accounting Principle
67
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPEB Funding Progress and Contributions A-1 68
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances — Budget and Actual A-2 69
Notes to Required Supplementary Information 70
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Comparative Balance Sheets - General Fund
B-1
72
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Fund
B-2
73
Comparative Balance Sheets — Debt Service Fund
B-3
74
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — Debt Service Fund
B-4
75
Budgetary Comparison Schedule — Debt Service Fund
B-5
76
Comparative Balance Sheets — General Capital Projects Fund
B-6
77
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Capital Projects Fund
B-7
78
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
EXHIBIT
Page
Comparative Balance Sheets — General Obligation Bond Fund
B-8
79
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balance—General Obligation Bond Fund
B-9
80
Nonmajor Governmental Funds
Combining Balance Sheet
C-1
82
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
C-2
83
Major Enterprise Funds
Comparative Statements of Net Position — Water and Sewer
D-1
85
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Water and Sewer
D-2
86
Comparative Statements of Cash Flows — Water and Sewer
D-3
87
Comparative Statements of Net Position — Solid Waste
D-4
88
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Solid Waste
D-5
89
Comparative Statements of Cash Flows — Solid Waste
D-6
90
Comparative Statements of Net Position — Drainage
D-7
91
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Drainage
D-8
92
Comparative Statements of Cash Flows — Drainage
D-9
93
Comparative Statements of Net Position — Golf Course
D-10
94
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Position — Golf Course Fund
D-11
95
Comparative Statements of Cash Flows— Golf Course Fund
D-12
96
Internal Service Funds
Combining Statement of Net Position
E-1
98
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
E-2
99
Combining Statement of Cash Flows
E-3
100
CITY OF ALLEN, TEXAS
F-5
106
COMPREHENSIVE ANNUAL FINANCIAL REPORT
G-2
111
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
F-6
107
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
102
Reconciliation of the Governmental Funds Balance Sheet to the
Ad Valorem Tax Levies and Collections
8
Statement of Net Position
F-2
103
Comparative Statements of Revenues, Expenditures and Changes
Ratio of General Bonded Debt Outstanding
10
in Fund Balances
F-3
104
Reconciliation of the Governmental Funds Statement of
Pledged -Revenue Coverage
12
Revenues, Expenditures and Changes in Fund Balance
F-4
105
Comparative Balance Sheets -Allen Community Development
Corporation
F-5
106
Reconciliation of the Governmental Funds Balance Sheet to the
G-2
111
Statement of Net Position
F-6
107
Comparative Statements of Revenues Expenditures and
TABLE
Page
Changes in Fund Balances
F-7
108
Reconciliation of the Governmental Funds Statement of
6
121
Revenues, Expenditures and Changes in Fund Balance
F-8
109
E. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Comparative Schedules by Source
G-1
110
Schedule by Function and Activity
G-2
111
Schedule of Changes by Function and Activity
G-3
113
Changes in Fund Balances, Governmental Funds
TABLE
Page
III. STATISTICAL SECTION
Net Position by Components
1
115
Changes in Net Position
2
116
Fund Balances, Governmental Funds
3
118
Changes in Fund Balances, Governmental Funds
4
119
Assessed Value and Estimated Actual Value of Taxable Property
5
120
Direct and Overlapping Property Tax Rates
6
121
Principal Property Taxpayers
7
122
Ad Valorem Tax Levies and Collections
8
123
Ratio of Outstanding Debt by Type
9
124
Ratio of General Bonded Debt Outstanding
10
125
Direct and Overlapping Governmental Activities Debt
11
126
Pledged -Revenue Coverage
12
127
Demographic and Economic Statistics
13
128
Principal Employers
14
129
Full -Time Equivalent City Government Employees by
Function/Program
15
130
Operating Indicators by Function/Program
16
131
Capital Asset Statistics by Function/Program
17
132
CITYOFlw
ALLEN
r
PEOPIE FIRST
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN
March 10, 2015
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, 2014.
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, 2014 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 3.75 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
91,157 at September 30, 2014 is estimated to grow to 115,000 at build out.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a vote of the
people and provides for seven non-partisan Council members, including the Mayor, to be elected at -large
to staggered terms of three years. The Council is responsible for enacting ordinances, resolutions, and
regulations governing the City as well as adopting the annual budget which serves as the foundation for
financial planning and control. The City Council appoints the City Manager, who has full responsibility for
carrying out Council policies and administering City operations. The Council also appoints the Municipal
Judge and various advisory boards.
City service departments provide a full range of services including police and fire protection emergency
ambulance service, municipal courts, building code enforcement, library, parks and recreation, tourism,
water and sewer services, sanitation/solid waste services, traffic engineering, and construction and
maintenance of streets and infrastructure. The City employs 754.56 full time equivalent positions.
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 •214.509 4100
WEB.www.ciwofallen.ore• EMAILt @cityofallm.org
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
In February 2013 Forbes magazine reported, from data gathered from Moody's Analytics, that Texas
dominates the best cities for goad 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 City of Allen unemployment rate in 2014 was
4.73% and the Collin County unemployment rate was 5.17%, both of which were below the national rate
of 7.0%. 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, Allen's appealing demographics have
spurred along record-breaking growth. The population of 91,157 is expanding with an estimated 2.5%
growth rate. Allen has benefited from a well-educated and affluent workforce with an average median
family income of $113,107 as reported by the U.S. Census Bureau, American Community Survey. With a
median age of 35.1, over 51.6% of adults have a Bachelors degree or higher and the median earnings for
a resident with a bachelofs degree is $66,702. Allen is a community that offers exceptional housing,
award-winning schools and a dynamic business climate all of which are strong factors in the success of
the City's economy. The 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-temr 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 Poor's 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 Poor's 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 Poor's and Aa2 from Moody's. S&P's May 2014 rating report supporting the
'AAA' rating stated the following credit factors:
• Strong local economy
• High effective buying income, strong market values
• Budgetary flexibility and strong year end reserves and liquidity
• History of strong financial management practices that are sustainable
• Faster than average debt amortization and moderate overlapping debt, while the debt liabilities
profile is adequate
During FY2014, the City issued $10,595,000 in new General Obligation debt for streets, parks, building
renovations, public art, and public safety projects authorized in the 2007 Bond Program. Due to
conservative budgeting and effective management, the City continues to cash finance capital projects
thus saving debt issuance and interest costs. In FY2014, the General Fund contributed $3,138,644 for
future capital projects, Water and Sewer Fund -$1,870,000 for waterlsewer replacements and pump and
lift station improvements, the EDC contributed $1,000,000 towards Water & Sewer infrastructure projects,
and Solid Waste Fund -$264,315 for alley repairs.
Fiscal Year 2014 Highlights
During FY 2014, 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
welcomed a variety of new businesses –Polio Tropical, La Madeline, Einstein Bagel, Allen Place Office
Complex, Krispy Kreme, and Bone Fish Grill and facilitated several new residential developments—
Cypress Meadows, Twin Creeks Crossing Ph 1 multi -family, Texas Star Assisted Living/Memory Care
Facility, Angel Field West, Building V of Walters Creek, and Cottonwood Crossing. 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 developed specialized
school security procedures and measures to enhance school safety for the community's children. They
also worked with the North Central Texas Council of Governments to develop and deploy "Texting 9-1-1"
to Verizon Wireless customers in most areas of Collin County.
The Fire Department also improved their service to the community by working with the Insurance Service
Office to maintain our Public Protection Classification (PPC). The PPC for Allen is a Class 2 which places
Allen in the top 5% of the ratings. The Fire Department expanded MediSim which is an EMS simulation
training program utilizing a high tech patient mannequin. Other service initiatives included the activation of
additional features, such as the enhanced use of "address points", in the Computer Aided Dispatching
system to further reduce dispatching time. Finally, the department increased inter -operability with
neighboring fire departments through joint training and resource sharing.
The Citys environmental conservation and green initiatives span the entire city through continuation of
the CitySmart Program that is aimed at improving energy efficiency of City buildings, enhancing recycling
efforts at City facilities, opening a new Chemical Reuse Center, providing special events and public
education for state mandated programs related to protecting and conserving natural resources, and
developed a 2014 – 2019 Water Conservation and Drought Plan.
With grant funding, the Library added a -books compatible with ii -readers, tablets, and smart phones.
Downloadable audiobooks were also added at the Library in May 2014. The first Winter Reading Club
was successfully held in January 2014 and various adult and children's program series were held
throughout the year. Access to videos of Library programs on ACTV and YouTube were increased.
The renovated Course at Waiters Creek had a successful full year of operations during FY2014. The
$9.20 million dollar renovation of the City's municipal golf course was made possible by funds from the
Community Development Corporation (CDC). 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. In 2014, the CDC provided funding for other projects such as the historic Old Stone Dam
repairs and upgrade, locker room repairs and new sound system at Joe Farmer Recreation Center,
reconstruction of athletic fields and new turf at Allen Station Park, design of the Hillside Park play area,
various reconstruction and equipment at recreational facilities, renovations to buildings at the historic
Heritage Village, share the road bicycle signage, trail development, and spray ground repairs at
Celebration Park.
The Allen Economic Development Corporation worked to bring a variety of companies and related
development to Allen-KONE Elevators to relocate into the A/IenPlace Office Complex, $26 million project,
102,000 s.foRce building, 120,000 s.f light industrial facility, 25,000 s.f test tower, 135 jobs; CVE
Technology Group, 196,000 s.f lease, 1,000 to 1,300 jobs; MonkeySporfs headquarters relocation to
Allen from California, 263,000 s.f, $40 million Investment, 200 jobs; Nine Band Brewing, 8,000 s.f.
brewery, $2 million facility; Corporate Center If speculative 18,000 s.f building, $3 million investment for
small to mid-sized office tenants, and assisted Atlas Copco in expanding and leasing 115,000 &1 of
additional space for their drilling equipment distribution center. These projects 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 -Disney on Ice, Disney Live, The Brian Selzer Orchestra, SNL comedic talent of Carvey, Miller and
Nealon, Doobie Brothers, and 3 Indian Concerts. The event center is also the home to professional
sports; the Allen American Hockey team, the Dallas Sidekicks Soccer team, and the Texas Revolution
Indoor Football team. The Allen Americans capped another successful season by winning the Presidents
Cup.
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, 2013. This was the sixteenth 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, Controller and Tru Nguyen, Senior Accountant It. Appreciation is
expressed to representatives of Weaver for their invaluable assistance in producing the final document
and to the City Manager's office and the members of the City Council whose leadership and commitment
are vital to the health and vitality of Allen.
Respectfully submitted,
Kevin Hammeke Joanne Stoehr
Chief Financial Officer Assistant Chief Financial Officer
CITY OF ALL EN
oEPPIE F�RSt
RESPECT INTEGRITY DELIVER EXCEL
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, 2013
*moo,
Executive Director/CEO
CITY OF ALLEN
ORGANIZATIONAL CHART
City Council
City Attorney City Manager Municipal Judge
Assistant City Manager Assistant City Manager
Human Resources City Secretary
Public and Media Relations Community Cevelopmenl
Community Seraces If Engineering
�mm
Libary W Information 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 Chief Financial Officer Joanne Stoehr
Controller Dana Thornhill
CITY ALLEN
PEOPCR`IRST
RESPECT INTEGRITY DELIVER EXCEL
weaver}
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, 2014, 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 Responsiblllty 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.
WEAVER MND TIDWELL, L.L.P. 12221 MERIT DRIVE, SUITE 140, DALLAS, Tx 75251
CERTIFIED PUBLIC ACCOUNTANTS PND ADVISORS P:972490.1970 F:972.702.8321
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, 2014, 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.
Change in Accounting Principle
As discussed in Note 13 to the financial statements, the City adopted the provisions of GASB
Statement No. 65, Items Previously Reported as Assets and Liabilities, as of September 30,
2014. Our opinion was not modified with respect to this matter.
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 68 through 70 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 2, 2015, 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.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 2, 2015
CITY Of ALLEN
PEaP`E 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, 2014
(UNAUDITED)
As management of the City of Allen, Texas, we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2014.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities (net
position) at September 30, 2014 by $604,518,585. Of this amount, $61,643,641
(unrestricted net position) may be used to meet the government's ongoing obligations to
citizens and creditors.
The City's total net position decreased by $3,145,145. The decrease is primarily a result of
an increase in gross bonded debt for governmental activities.
The City's governmental funds reported combined ending fund balances of $61,301,553 at
September 30, 2014, an increase of $10,636,864 from the prior fiscal year. This increase is
due to revenue as a result of the sale of general obligation bonds, actual revenues received
being higher than anticipated, and prudent, conservative management of City staff that
allowed the City to transfer $3,138,644 to the General Capital Projects Fund for future
capital projects, $95,000 to the Golf Course, and $400,000 to the Replacement Fund.
At the end of the fiscal year, the unassigned fund balance for the General Fund was
$17,647,235 or 23% of total General Fund expenditures.
On a government -wide basis, the City's total liabilities increased by $4,017,896, primarily
as a result of the City issuing $10,595,000 in general obligation bonds.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: 1) government -
wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements.
Government -wide financial statements - The government -wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to that of a private -sector
business.
The Statement of Net Position presents information on all of the City's 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, 2014
(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 Citys basic services are reported here, including
the police, fire, library, community development, parks and recreation, municipal court, and
general administration. Property and sales taxes, charges for services, franchise fees, and
state and federal grants finance most of these activities.
• Business -type activities - The City's water, sewer, solid waste, drainage, and golf course
operations are reported here. These are functions intended to recover all or a significant
portion of their costs through user fees and charges.
• Component units - The City includes two separate legal entities in this report: the Allen
Economic Development Corporation (AEDC) and the Allen Community Development
Corporation (ACDC). Although legally separate, these component units are important
because the City is financially accountable for them.
Fund financial statements - A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements. All of the funds of the City can be divided into two categories: governmental and
proprietary.
Governmental Funds - These funds are used to account for the majority of the City's activities, which are
essentially the same functions as governmental activities in the government -wide statements. However,
unlike the government -wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as resources available for future spending at
fiscal year end. These funds are reported using the modified accrual basis of accounting, which measures
cash and all other financial assets that can be readily converted to cash. When compared with similar
information in the broader government -wide financial statements, readers may better understand the
long-term impact of the government's near-term financing decisions. Reconciliation is provided that
details the relationships or differences between governmental activities and governmental funds;
reconciliation follows the fund financial statements.
The City maintains several individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund, Debt Service Fund, General Capital Projects Fund and
General Obligation Bond Fund, all of which are considered to be major funds. Data for the other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of
the 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 activkies 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, 2014
(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 67 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 68 through 70 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 110 through
113.
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 $604,518,585 as of September 30,
2014. By far the largest portion of the City's net position ($516,781,880 or 85%) reflects its net
investment in capital assets (i.e. land, buildings, infrastructure, vehicles, machinery, and equipment). The
City uses these capital assets to provide services to citizens; consequently, these assets are not available
for future spending. Although the City report net investment in its capital assets, 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
Staterrerrt of Nat Position
C+ menial Acdti
Business-tvoeP
UyOties
Ircial
2014
2013
2014
2013
2014
2013
Current antl other assets
$ 84,082,988
$ 70,398,208
$ 38,89,842
$ 39,363.016
$122,572,830
$109,761,224
Capital assets
502,347,524
514,374,899
109,697,936
109,370,527
612,045,460
623,745,426
Total Assets
586,430,512
584.773,107
148,187,718
148,733,543
734,618,290
733,506,650
Defer inflows of reseurces
1,700,087
2,061,872
321,481
198,565
2,021,548
2,260,437
Longterm liabilities
109,621,996
106,954,709
9,282,613
10.534,710
118,904,609
117,489,419
Other liabilities
8,914,756
7,171,738
4,301,888
3,42,2110
13216,644
10,613,938
Tonal Liabilities
118,536,752
114,125,M7
13,584,501
13,976,910
132,121,253
128,103,357
Net Position
Net investment in capital
axsMa
415,790,437
421,936,296
100,991,443
99'5 ',ia6
516,781,880
521,480,762
Resbicte6
26,066,205
26,511,231
26,859
364,510
26,093,064
26,875,741
Unmiricte8
27,737,205
24,281,005
33.906,438
35,096,222
61,643,641
59,307,227
Total Net PosNon
$469,593,847
$472.708.532
$134.924,738
$134,955,1913
$609.518.685
$607.683.730
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
An additional portion of the City's net position, $26,093,064, represents resources that are subject to
external restrictions on how they may be used; the remaining balance of $61,643,641 may be used to
meet the govemmenl's ongoing obligations to citizens and creditors.
Analysis of the City's Operations - As of September 30, 2014, the City had an overall decrease in net
position of $3,145,145 for the government as a whole which represents a decrease of $3,114,685 for
governmental activities and a decrease of $30,460 for business -type activities. The decrease in
governmental activities is due to operating expenses in the General Fund increasing and a decline in
revenue related to capital grants and contributions. The decrease in business -type activities is primarily a
result of a decrease in water sales due to water restrictions that were in place and Conservation efforts of
citizens. A summary of the City's operations for the year ended September 30, 2014 is provided in
Table 2.
Table 2
Changes in Net Position
Governmental Activities
Business-tvpe
Activities
Total
2014
2013
2014
2013
2014
22'
Revenues:
Program Revenues:
Charges for services
$ 14,0]5,]14
$ 13,0],590
$ 39,181.237
$ 40,200,412
$ 53,258,951
$ 53,278,002
Operating grants and
contributions
1,121,356
2,061,4
1,1100,000
1,000,000
2,121,356
3.087,482
Capital grants and
contributions
9,571,206
14,737,780
3,685,960
3,768,300
13,257,1%
18,5ze,ge0
General Revenues:
Property Was
46,232,565
44,474,745
-
-
46,232,585
44,4]4,]48
Sales tax
1Q004,636
16,289,761
-
-
18,004,636
16,289,761
Franchise taxes
6,973,705
6,302,018
-
-
6,973.705
6,302,018
Hotel motel Was
1,499,512
1,350,286
-
-
1,499,512
1,350,286
Other taxes
2,151,232
1.389,503
-
-
2,151,232
1,389,503
Interest earnings
416,828
171,495
134,988
70,382
551,816
247,871
Gain on sale of capital
asset
-W,01
-
-
-
92,401
Mscellaneous
2,445,4912,07`9,002
850,157
385,842
3,295,648
2,464,924
Total Revenues
102,492,245
102,038,143
44,652.342
45,444,936
147,344,587
147,483,079
ExPercae:
General government
24,940,939
22,271,050
-
-
24,940,939
22,271,050
Public safety
30,408,487
28,935,911
-
-
30,408,487
26,935,911
Public works
18,252,130
17,807,948
-
-
18,252,130
17,80,948
Culture and! recreation
30,987,689
29,983,224
-
-
30,90,689
29,983,224
Community
development
2,689,517
2,230,968
-
-
2,689,517
2,230,968
interest on long-term
debt
3.955,305
4,00,303
-
-
3.955,305
4,00,303
Water and sewer
-
-
30,081,379
29,160,261
30,081,379
29,160,281
Sclid waste..rocas
-
-
5,383,215
5,495,654
5,383,215
5,495,654
Drainage
-
-
951,03
910,179
951,973
910,179
Golf course
2,839,098
2,483,40
2,839,093
2,483,467
Total Expenses
111,234,00
105,296,404
39,255,685
38,049,581
150,439.732
143,345,985
Change in net position
before transfers
(8,741,822)
(3,258,261)
5,598,07
7,395,355
(3,145,145)
4,137,094
Transfers
5627137
5,331,830
(5621137)
(5361830)
Change in net position
(3,114,685)
2,103,589
(301460)
2,033,525
(3,145,145)
4,137,094
Net position, beginning of
Year , as restated
4]2]08532
470604963
134,955,198
13292103
60663730
803528.636
Net position, end of year
$469,593,847
$472,708,532
$134,924,738
$134,955,198
$604,518,585
$607.663,730
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
Governmental activities
Revenues — The following chart visually illustrates the City's revenue by sources for governmental
activities:
Revenues by Source- Governmental
Activities
F.hi.
s%
grant
w
Revenues for the City's governmental activities decreased by $454,102. Major components of revenue
increases and decreases are explained as follows:
• Property taxes increased by $1,757,820 due to an increase of 4.65% from prior year's valuation.
This increase is due to new construction and reappraisal increases of existing real property.
• Franchise taxes increased by 11 % as a result of an increase of 20% in electrical franchise fees due
to usage from data centers, new retail, and commercial development, an increase of 41% in gas
franchise fees due to commodity prices and weather, and an increase of 18% in access line fees.
• Operating grants and contributions decreased by 46% due to park dedication fees decreasing and
department's receiving fewer grants in FY2014.
• Capital grants and contributions decreased by 35% due to a decrease in developer contributions for
right of way and a decrease in intergovernmental revenue for street and packs projects.
• Sales tax increased by 11% due to continued commercial retail development, new equipment
purchases at data centers, and population growth in Allen.
• Charges for services increased by 8% due to the additional revenues created by a significant
increase in residential repair permits, an increase in single family permits, an increase in multi-
family permits, and the City increasing permit fees in order to stay in line with other municipalities.
• Hotel taxes increased by 11% due to more usage of the hotels as the City of Allen continues to
become a destination point for many activities.
• Interest earnings increased by $239,333, an increase of 135%, as a result of interest rates
beginning to increase during fiscal year 2014 and additional interest earnings from the City issuing
$10,595,000 in general obligation bonds.
Expenses for governmental activities increased by $5,937,663 or 6%. Components of increases and
decreases are explained as follows:
• Expenses include employee annual merit increases and adding over 16.7 fulltime equivalent
positions throughout various departments in order to address goals in the strategic plan and
in order to maintain the current level of service.
• Expenses for general government increased by 12% due to various infrastructure and
operational needs, an increase of 10% in the City's share of healthcare costs, continued
increases in economic development incentives pursuant to the development agreements as
two major retail developments generate increased sales tax, and a 7% increase in utility
costs.
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
Expenses for Public Safety increased by 5% due to the City implementing a pay plan
recommendation for adjustments in employee pay ranges with particular emphasis on
Public Safety employees.
Interest on long-term debt decreased 3%.
Community Development expenses increased by 21% due to the City beginning to incur
costs associated with the Job Access Reverse Commute program which is currently being
reimbursed 50% through a grant with the North Texas Council of Governments and the
other 50% was funded through Community Development Corporation.
The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
Expenses and Program Revenues -
Governmental Activities
sss,aoo,cco
sao,aoo.aao - __
szs.000.aoo
515,000.000 _
510.000,000
55,000,000 _ •E�
EO •M.•mw
cP yev�
Business -type activities —
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, 2014
(UNAUDITED)
Business -type activities revenues decreased $592,594 or 1%. Major components of the
decreases/increases are as follows:
• Capital contributions for water and sewer lines and impact fees decreased by $102,340 or 3%
due to a decrease in developer contributions for water mains and sewer lines.
• Interest earnings increased by $64,606 or 92% as a result of rates for investments beginning to
increase during fiscal year 2014.
• Charges for services for business -type activities decreased by $1,019,175, or 3% due to water
sales decreasing by 13% as a result of water restrictions and conservations efforts by citizens.
Expenses for business -type activities increased by $1,206,064, or 3%. The increase was due to an
increase in expenses in the Water and Sewer Fund and the Golf Course Fund. The increase in the Water
and Sewer Fund was primarily a result of an increase in the amount paid to North Texas Municipal Water
District (NTMWD) as they proceed with capital expansion plans that increased the City's costs associated
with water and sewer service from the District. The increase in the Golf Course Fund was a result of an
increase in professional services costs associated with commissions to Golf Resources and additional
staffing needs. The following chart illustrates the relationship between expenses and program revenues
for business -type activities:
Expenses and Program Revenues -
Business -type Activities
$35,000,000
$30,000,000
625.000,000
$20,000,000
$15,000,000 ��•
•Rw•nup
$10,000,000
$5,000,000
$0
Wrt rand Wdwant• Drnfna0• Gamun•
.r MNlfp!
10
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(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
$61,301,553, an increase of $10,636,864 in cemparison with the prior fiscal year. Approximately 29%, or
$17,647,235, constitutes unassigned fund balances, which are available for spending at the government's
discretion. The remaining fund balances are classified as assigned, restricted or nonspendable to
indicate that they are not available for new spending allocation. The nonspendable portion includes
prepaid items ($4,767), restricted funds are for debt service ($889,702), capital projects ($34,741,366),
tourism ($3,227,470), asset forfeiture ($41,715), state and federal grants ($400,492), park acquisition and
development ($1,359,931), tax increment financing agreements ($1,488,437), court technology ($25,614),
PEG fees ($632,143), photo red light enforcement ($38,340), cemetery trust ($56,141), and assigned
funds include facility maintenance ($600,000) and encumbrances ($148,200).
The General Fund is the chief operefing fund of the City. At the end of the current fiscal year, the total
unassigned fund balance was $17,647,235. Current operating expenditures had savings of $3,637,223,
allowing $3,136,644 to be transferred to the capital projects fund for self-financing of capital projects,
$95k to the Golf Course Fund, and $400k to the Replacement Fund. The total fund balance increased
from $16,532,652 to $19,152,440. This increase is due to prudent, conservative management by City
staff.
The Debt Service Fund fund balance of $889,702, all of which is restricted for the payment of debt,
decreased from the prior year by $12,146. This decrease was due to property taxes coming in slightly
under budget. The fund balance meets the FY2015 5-10% of annual debt service requirement of
$654,515 to $1,309,030.
The General Capital Projects Fund provides information on cash financed capital projects and had an
ending fund balance of $18,372,968, a decrease of $716,812. Revenues and transfers from other funds
totaled $6,172,587, which included $561,262 from Allen Independent School District for widening of Bray
Central, $500,000 received from the developer for the Montgomery Boulevard extension, $444,285 from
the Texas Department of Transportation for ROW construction at Highway 75 and FM 121, $325,860 in
special assessment revenue, $318,495 in miscellaneous revenue for street improvements, $209,975 for
facility agreements, and $3,402,959 from other funds to cash finance capital projects. Total expenditures
and transfers of $6,889,399 consisted of $3.7m for street construction for Exchange Parkway Phase 1
from Alma Drive to Allen Heights, reimbursement in the amount of $738k paid to Texas Department of
Transportation for ROW construction, and reimbursement in the amount of $500k paid to Collin County
for Stacy Road Phase It.
The General Obligation Bond Fund had an ending fund balance of $16,368,398, an increase of
$8,602,385 from the prior year. Expenditures totaled $2,260,724 which primarily included $994k for
Exchange Parkway Phase 1 from Alma Drive to Allen Heights and $407k for street and alley repair.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. At the end of the year, unrestricted net position for all enterprise funds are
as follows: Water and Sewer, $28,126,598, Solid Waste, $3,615,213, Drainage, $814,907, and Golf
Course, $211,117. The total change in net position for the funds was a decrease of $148,959, an
increase of $271,373 a decrease of $49,400, and a decrease of $88,553, respectively.
11
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
The Water and Sewer Fund had a decrease in net position as a result of a decrease in operating
revenues. The Golf Course Fund had a decrease in net position due to actual revenues being slightly
under budget and an increase in professional services costs associated with commissions to Golf
Resources and additional staffing needs.
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 FY2013-14, the City Council amended the budget for the General Fund
one time.
Adjustments made during the FY2013-14 increased the original revenue budget by $651,336 and
decreased the expenditure budget by $850,273. Due to the actual expenditures being $3,637,223 less
than the revised budget, the City was able to transfer $3,138,644 to the General Capital Projects Fund to
cash finance future capital projects, $95k to the Golf Course Fund, and $400k to the Replacement Fund.
The General Fund's operational expenditure reserve increased to 87.87 days from the amended budget
of 83.21 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, 2014, amounts to $612,045,461 (net of accumulated depreciation). This investment in
capital assets includes land and improvements, buildings, vehicles, machinery and equipment, park land
and facilities, roads and bridges. About 82% of the capital assets are governmental and 18% are
business -type activities. There was a decrease of 2% in the investment in capital assets for the current
fiscal year.
Table 3
capital Assets at Year-end Net of Accumulated Depreciation
G,,mental An6Urea B ess�, v�voe gyt_Jr�= Total
2414 2413 2414 241$ 2414 2413
laM $130614,642 $129,147,461 $4,072,882 $4,072,882 $134,68],524 $133,220343
Bulltlinga 105,633,070 108,969,985 - - 105,633,070 108,969,985
Towels, tank. and pump stat - - 98,650,225 101.61 98,650,225 101,66al"
Other lmp.aias 247,355,482 253,279,709 355,096 367,360 247,710,578 253,647,M
Fumture aM fixtures 593.747 116291965 - - 593,747 1,1129,965
vehicles 4,781,800 5,574,867 122,800 159,433 4,804,600 5.734,300
Machinery antl equipment 3.676,557 2,617,470 1,911,1145 1,958128 5,587,602 4,571,598
Construction in progress 9.692,227 13155.442 4,585888 1.150580 14,2]8115 14.306022
Total $002,34].525 $514,374.899 $109,697,936 $109.370,527 $612,00.5,461 $623,745,426
The major governmental -type capital improvement projects and developer contributions during the current
fiscal year included the following:
Developer contributed right of way and pads land
$ 5,705,863
Allen Station Park adifical turf
1,362,648
Adminstration software
404,830
Watters Crossing improvement
370,472
Street construction:
Exchange Parkway Phase 1 -Alma to Allen Heights
4,694,249
Bray Central Widening
526,408
Ridgeview Dme-Alma to Stacy
325,877
12
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
Business -type capital improvement projects and developer contributions during the current fiscal year
include the following:
Deteloper contributed water mains and sewer lines $ 2,402,611
Whis-Lynge Hill & Rolling Hills Estates water & sanitary sewer 3,248,796
Fountain Park Phase i & 2 water & sanitary sewer 92,997
Exchange Parkway Phase 1 -Alma to Allen Heights waterline 80,825
Additional information on the City'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, 2014 was $168,802,189 of which
$109,621,996 was governmental, $9,282,613 was business -type activities and $49,897,580 was
component units'. Total gross bonded debt was $157,855,000 which includes $99,245,000 of General
Obligation (G.O.) bonds backed by the full faith and credit of the government, $530,000 of Certificates of
Obligation backed by taxes and revenue generated from the golf course, $8,015,000 secured solely by
water and sewer revenue, and the component unit's total of $50,065,000 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 2014, the City issued $10,595,000 of G.O. Bonds, which will be used for capital acquisition
and/or improvements to the City.
The debt for both component units relates to debt issued in order to support public infrastructure
improvements and construction of the Allen Event Center. Total debt for the component units decreased
by 4%. Total debt for the Allen Economic Development Corporation decreased by 5% and the Allen
Community Development Corporation debt decreased by 3%.
Table 4
oubtanding Dabt of Year<nd
Benda and ONer Lone Term Deet
Goeammantal A bbd es Busintal Acaabes Comment Urts IQW
2014 2M 24L4 24.L7 2u15 203.$ zgua 24L7
Gm63 Bonded DaM
General
E 99,245,06
$ 96,735,000
$ -
$ -
$ -
$ -
$ 9&245,000
S 96,735,000
Odyatlon Bands
Cedi6cate0
530,000
BW,WO
-
-
-
-
530.000
800,000
OWgatlon Bmds
Revenue Bonds
-
-
8,01so00
9,370,000
-
-
8,015,000
9.370,000
Payable
Salsa Tax
-
-
W.M.000
52,000.000
50.085,000
52,000,000
Revenue Bmde
Total Gm
89,"5,0x,
97,535,000
0,015,000
9,370,000
6,RaNx
52,0W,000
157,855,000
158,65,60
Bended Odd
Other tnn,,-Tem, Ged
Compensated
4,985,426
4,888,231
5761120
510,084
-
-
5,572,545
5,19865
Absences
Pension
234,922
236,17r
-
-
-
-
2341922
238,177
Cagtal lane.
7,537
17,523
435,562
549,169
-
-
443,119
WAN
sltnrcb,
Premiums &
4,808,112
4,4",788
255,911
105,457
(167,420)
(168,494)
4,696,63
4,414,751
Discounts
Thal Other Lan,,
%W'so6
9,419)6
1,267.613
1,164,710
(167,420)
(168,494)
10,947,189
10,415,925
Tenth Odd
Trial
$ 109.891.996
S 1W,954.71a
59.282.813
$ 10,534.710
$49,897,56
$51,831,508
S 188,802,189
S 16,320.925
13
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
The underlying credit ratings from both Moody's Investors Service and Standard and Poors 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 2014-2015, reappraisal values for existing real (residential and
commercial) properties increased 5.45% compared to FY2014, while valuations for existing business
personal property increased 1.52%. Additional tax abatements on commercial property had a small
impact of reducing the taxable property valuation by .0027%. New construction of residential and
commercial property resulted in an increase in valuation of 2.45%. The overall increase in valuation from
all categories was 9.43%; however, the property tax revenue increase was budgeted at 7.44% as a result
of lowering the tax rate by one cent. Overall sales tax is expected to increase by about 1.83%. 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.
The rate of residential growth has steadily increased as the economy has recovered. The City estimates
issuance of 525 single family permits in FY2015. The population of approximately 91,157 as of
September 30, 2014 is expected to reach approximately 115,000 at build out in the next twelve years.
The population projection at build out has been increased recently due to the construction of additional
multi -family units, changes to projected land use plans, and an overall increase in the density of the
developments.
The various infrastructure and operational needs of the City have resulted in the annual expenditure
budget increasing from $141.97 million in FY2010, to $183.99 million for FY2015 for all funds combined.
The certified assessed property value for 2014-2015 equates to an overall increase of approximately
$789.3 million (9.43%) from the preceding year. The FY2015 tax rate was set at $0.540 per $100
valuation. Of the total tax rate, $0.398361 is dedicated to operations and maintenance in the General
Fund, and $0.141639 is dedicated to general obligation debt service.
14
Moody's
Investors
Standard &
Service
Poors
General Obligation Bonds
Aal
AAA
Certificates of Obligation
Aal
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 2014-2015, reappraisal values for existing real (residential and
commercial) properties increased 5.45% compared to FY2014, while valuations for existing business
personal property increased 1.52%. Additional tax abatements on commercial property had a small
impact of reducing the taxable property valuation by .0027%. New construction of residential and
commercial property resulted in an increase in valuation of 2.45%. The overall increase in valuation from
all categories was 9.43%; however, the property tax revenue increase was budgeted at 7.44% as a result
of lowering the tax rate by one cent. Overall sales tax is expected to increase by about 1.83%. 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.
The rate of residential growth has steadily increased as the economy has recovered. The City estimates
issuance of 525 single family permits in FY2015. The population of approximately 91,157 as of
September 30, 2014 is expected to reach approximately 115,000 at build out in the next twelve years.
The population projection at build out has been increased recently due to the construction of additional
multi -family units, changes to projected land use plans, and an overall increase in the density of the
developments.
The various infrastructure and operational needs of the City have resulted in the annual expenditure
budget increasing from $141.97 million in FY2010, to $183.99 million for FY2015 for all funds combined.
The certified assessed property value for 2014-2015 equates to an overall increase of approximately
$789.3 million (9.43%) from the preceding year. The FY2015 tax rate was set at $0.540 per $100
valuation. Of the total tax rate, $0.398361 is dedicated to operations and maintenance in the General
Fund, and $0.141639 is dedicated to general obligation debt service.
14
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
Ad valorem taxes are the General Fund's largest revenue source and will contribute $36.499 million or
42.93% of the fund's budgeted revenues in FY2015. 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. New retail development and population growth will continue to increase sales
tax, however, some one-time increases in FY2014 may not occur again in FY2015 and the sales tax
increase was projected at a moderate rate of 1.83% over the revised FY2014.
The General Fund ended 2013-2014 with an approximate increase of $959,340 as compared to the
revised budgeted fund balance. This brings the ending fund balance to an equivalent 87.87 days of
operating expenditures, which exceeds the amended estimate of 83.21 days, and is within the range of
the City's financial policy of 60 to 90 days. The 2014-2015 General Fund expenditure budget reflects a
6.95% increase from the revised 2013-2014 budget. This is primarily due to adding over 16.7 fulkime
equivalent position throughout various departments, an increase of 4.5% for health and dental budgeted
expenses, implementation of a pay plan study recommendation for adjustments in employee pay ranges
With particular emphasis on Public Safety employees, and continued increases in economic development
incentives as two major retail developments continued to generale 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 rete increase in February 2015 that ranges from 5.5% to 6.5% for a
combined water and sewer bill depending upon the customer Gass. The rate increase is necessary as
North Texas Municipal Water District (NTMWD) 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 FY2015
budget is $1.22 million to cash finance water and sewer capital projects related to water lines, sewer
lines, sewer lift station maintenance, and pump station maintenance. The Allen Economic Development
Corporation is contributing $1.0 million of the $1.22 million to the water and sewer infrastructure projects.
The Water and Sewer Fund is expected to finish the fiscal year 2015 with approximately $10.219 million
in working capital reserves resulting in 110.35 days of operating expenses in reserve, which is within the
City policy of 90 to 120 days. This healthy balance is necessary to fund the future City and NTMWD
capital projects, ongoing maintenance projects 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's current contract is with Community Waste
Disposal (CWD) as the solid waste provider. No commercial CPI solid waste fee increases are planned in
2015. Residential rates are subject to a Consumer Price Index rete change on May 31, 2015. The
contract includes 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. With the recent
declining fuel costs, the VFAF will probably not be charged. The Solid Waste fund balance at the end of
FY2015 is expected to be $2.77 million which is approximately 154 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 continues 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, formedy called Chase Oaks, is a newly redesigned course renamed as The
Courses at Watters Creek. The renovated course opened in January 2013. 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.
15
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
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.
Budgeted support from the General Fund was provided to the Golf Course, but was primarily necessary
to cover depreciation and lease expenses.
For 2014-2015, the Risk Management Fund reflects a rise in health care costs, due largely to the
combination of an increase in claims for retired and current employees, a maturing workforce, and
inflationary pressures related to health care costs. In FY 2014-2015, employees in Plan A will see a 7.5%
increase in their health insurance premiums, whereas employees in Plans B will see no increases in
premiums but will have higher deductibles. No changes to Plan C were anticipated. Overall, the City's
focus is to gradually shift an increased amount of the health care liability to the employees. For FY2015,
the City will incur a 4.5% increase in costs from the revised FY2014 budget. For the FY2015 budget, a
contribution of $220,000 is budgeted to be put into a trust fund for other post -employment benefits. This
amount is determined from an actuarial study every two years. Workers 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
2015 are expected to remain relatively flat as compared to fiscal year 2014 since there are no significant
additions of newly insured property. The Risk Fund continues to be in good financial condition.
The City of Allen's budget continues to be positively impacted by moderately strong growth and by
conservative fiscal management. The 2014-2015 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, Alen, Texas, 75013, or call (214)509-4626.
16
BASIC FINANCIAL STATEMENTS
CITYOfALLEN
AV
PECPIE FIRst
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
EXHIBIT 1
PRIMARYGOVERNMENT
GOVERNMENTAL BUSINESS -TYPE DOMPONB4T
ACTIVITIES ACTIVITIES TOTAL UNITS
ASSE S
Cash and cash agbirelenls $
32685483 $
13,715,358 $
45400.841
$ 7.712.95
Investments
46,433,277
16.397,958
82831,235
11,112,195
Recenebles past of allpwance
for uncollectibles)
5,716.148
51811,335
11,527,483
2,920,110
Internal balances
(1,138,601)
1,138,801
-
-
Prepaid items and other assets
385681
5,050
391.731
61298
Memories
-
W.m
36,728
-
RestactedcashandcashequiWlents
-
1,384,812
1,364,812
1.852146
C Piml assets:
Non -depreciable
140,305868
8,656.770
146,985,836
3,973,042
Depreciable(net of depreciation
362.040.656
101,039,165
463,079,822
795,449
TOTAL ASSETS
588,43,512
148,187,778
734,618,290
28,371,535
OEFERREO OUTFLOWS OF RESOURCES
Defamed loss on rebMln9
1,7W.W7
321,461
2.021.548
16.414
TOTAL OEFIR D OUTFLOWS OF RESOURCES
1,700,067
MIMI
2,921,548
16,414
LIABILITIES
Accounts payable
4,899,563
2224,148
7,123,711
189.798
Accrued liabilities
3.92045
184,351
3,276,396
13,878
Accrued interest payable
498.644
77,953
576.797
219,189
Customerdeposits
-
1.842.463
1,842.63
Unearned revenue
121,699
-
121,699
-
Retalna9epayable
302605
92,973
475,578
27,795
Noncurrent llablbees:
Me anthin one year
12,095133
1,933,593
14,023,726
2,005000
We In more than one year
97,531.863
7,349.DW
104,880.883
47,892,580
TOTAL LIABILITIES
118535752
131ilPf' 01
132,121.253
50.328,220
NIET POSITION
Net lineament in capital assets
415,790.437
100.981,443
516)81,880
4,768491
Restricted for
Debt ..No.
422954
26,%9
419.813
1,632977
Capital projects
18372,968
-
18,372868
-
Tounsm
3,227,470
-
3,227,470
-
ParkacquisitionanddeWlopment
1,359.931
-
1,359.931
-
Stme ed bedew 9rems
408492
-
400,492
-
Te4lncrement Financing
1.468437
-
1,488437
-
Otherpeposes
793,953
-
793.953
-
Unrestricted!
27,737,205
M."436
61.643'edI
(28,341,739)
TOTAL NE7 POSITION $
489,593,847 $
134,924,738 It
804.518,585$
121.940,271)
The Nates to Financial Statements are
an integral part of this statement
17
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
The Notes Ic Financial Statements are
an integral part of this statement
General revenues.
Taxes:
Property taxes, loved for general pumoses
Sales faxes
Franchise taxes
Notal motel taxes
Other texas
Investment earnings
U seella mous
Transfers
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION, beginning ofWar, as restated (Note 13)
NET POSITION, antl of year
18
Program Revenues
Charges for
Operating Grants
Capital Grants
Expanses
Smlges
and Contributions
antl Cantrib,xtions
FunctionslProgramk hriies
PRIMMY GOVERNMENT:
Governmental AcUmbes:
General government
$ 24,940,939
$ 823,801
$ -
$ _
Public safety
30,408,487
1,588,294
250,311
-
Publcwaks
18,252,130
154,418
-
9,571,2%
Culture and recreation
30,987,889
8,425,791
881,004
-
Community development
2,889,517
3,103,410
10,041
-
Interest an long-term debt
3,955,305
Total governmental activities
111.234057
14.075714
1.121.356
9.571.206
Business -type Pcbvgsys:
Water and sewer
30,081,379
28,955,282
1.000,000
3.885,960
send ..is
5,383,215
8,309,729
Drainage
951,973
1,378.662
-
-
Galfccurse
2.839096
2537.564
Toilet buslness4ypa activates
39,255.685
39.181.237
1.000000
3,865.9130
TOTAL PRIMMY GOVERNMENT
A 150.489.32
$ 53.256.951
$ 2.121.3%
$ 13257.168
COMPONENT UNITS:
Allan Ecendmlc Development Corporation
$ 4,952,338
$ -
$ -
$ _
Alan Community Development Corporation
5.189723
TOTAL COMPONENT UNITS
$ 10.142.001
$
$
$
The Notes Ic Financial Statements are
an integral part of this statement
General revenues.
Taxes:
Property taxes, loved for general pumoses
Sales faxes
Franchise taxes
Notal motel taxes
Other texas
Investment earnings
U seella mous
Transfers
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION, beginning ofWar, as restated (Note 13)
NET POSITION, antl of year
18
EXHIBIT 2
Not (Expense) Revenue and
Changes In Net Petition
Prinvu, Governlmnt
Gavernrrental Business - Type COMPONENT
fttWltlea AoBVNiea TOTI UNITS
$ (24,117,138) $
- $ (24,117,138) $
(28,589882)
- (28,589,882)
(8,528,508)
- (8,528,508)
(21,709894)
- (21,70,899)
423,934
- 423,934
(3,955,305)
(3,955,305)
1,499.512
(465791)
(88485,790
- 3,559,563
3,559,563 -
- 92,514
926,514 -
- 426,859
426,669 -
1301.534)
(301 534)
4.61 1,532
4611532
S (86.465.791) $ 4.611532
$ (81.854259) $
$ - $ - $ - $ (4,952,338)
(5.199,723)
$
$ s $ (10.142.061)
$ 46,232.565
$ -
$ 46,232,585
$ -
MW636
-
18,004,636
17,665,254
6,973.705
-
6,973,785
-
1,499.512
-
1,499,512
-
2,151 232
-
2,151,232
-
416,828
1311988
551,816
75,886
2,445,491
85,157
3,295,848
185,573
5,69,137
(5.627.137)
83,351,106
(4,41932)
78709114
17,926,713
(3,114,665)
(38460)
(3,145,145)
7784,652
472,708,532
134.955.198
607.883.730
(29.724,923)
S 489.593.847
$ 134.924,738
$ 604518585
$ (21.W4 Vll
19
CITY OF ALLEN, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
DEFERRED INFLOWS OF RESOURCES
Unshoilable rexenue- property taxes
1D1A63
GENERAL
TOTAL DEFERRED
DEBT
INFLOWS OF RESOURCES
CAPITAL
32,098
GENERAL
SERVILE
FUND BALANCES
PROJECTS
ASSETS
Nonspendabie
Pail items
Cash and cash ecuhelents
$
7,237,090
$
685533
$
7,975437
Investments
-
11,0.95,08]
-
207,427
-
12,207,442
Receivebles, net ofallowances fol
Tourism
Asset foNaiture
uncollectibles:
State and federal grants
Park acquisition and development
Ad valorem taxes
101,053
Tax increment financing agreement
321096
-
Sam taxes
25,614
2,8M,313
-
-
632,143
-
Accounts receivable
PhotoretlligMenfereement
-
-
-
Cemem,trum
-
Accmed imerest
-
72,287
20,742
45,584
Other
-
2.021,208
Omer
-
-
-
Special assessments
17.647,23S
-
187.557
Prepaid hams
19.152440
4,767
18,372,988
TOTAL ASSETS
$
23.803]83
$
921,7%
$
20,414,120
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable
$
3,017,140
$
-
$
1,234,030
Accrued liabilities
1,532,830
-
571,237
Uneamee revenue
500
-
RetainaW payable
235,885
TOTAL LIABILITIES
4,550,270
2,041,152
DEFERRED INFLOWS OF RESOURCES
Unshoilable rexenue- property taxes
1D1A63
32,098
TOTAL DEFERRED
INFLOWS OF RESOURCES
101,053
32,098
FUND BALANCES
Nonspendabie
Pail items
4,767
-
-
Restricted!
Debt seMw
-
569,702
-
Captal projects
-
-
16,372,988
Tourism
Asset foNaiture
State and federal grants
Park acquisition and development
-
-
Tax increment financing agreement
-
Court technology
25,614
-
-
PEGfees
632,143
-
-
PhotoretlligMenfereement
35340
-
-
Cemem,trum
58,141
-
-
Assi,W
Facilities maintenance
500,000
-
Omer
148,200
-
-
Unassigned
17.647,23S
TOTAL FUND BALANCES
19.152440
889,7132
18,372,988
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES $
25603,7$3 $
921,798
$ 20,414,12D
The Notes to Financial Statements are
an integral part of this statement,
20
GENERAL OTHER TOTAL
OBLIGATION GOVERNMENTAL GOVERNMENTAL
BOND FUNDS FUNDS
$ 6,917.481 $ 2,]33,91] $ 25,53D,464
9,569.392 3,954,316 31,321,104
133,149
2.872.313
263,875 283,875
26,485 14,102 179,880
2,021,206
187,59
4,767
$ 16,508,364 $ 6,888.870 $ 88.534.915
E 73,246 $ 202,384 $ 4,526,800
45,242 2,149.109
121,199 121,899
86,720 302,805
139 968 388,825 7,100,213
133,10.9
133,149
- - fioo,aoo
- - 198,200
17.641.235
16,366,396 6,518.015 61,301,553
$ 16.508,364 $ 6,886,70 $ 88.539,915
21
EXHIBIT 3
4.787
889,702
16,368,399 -
39,741,386
- 3,227.470
3,227,470
- 41,715
41,715
- 400,492
400,992
- 1,359.931
1.359,931
- 1,489.47
1,488.937
25.614
632.143
38.349
56.141
- - fioo,aoo
- - 198,200
17.641.235
16,366,396 6,518.015 61,301,553
$ 16.508,364 $ 6,886,70 $ 88.539,915
21
EXHIBIT 3
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30,2014
EXHIBIT 4
Total fund balances - governmental funds
$ 61,301,553
Amounts reported for governmental activities in the statement of net position
are di0erent because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet.
502,347,524
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.
115,284
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.
(498,844)
Internal service funds are used by management to charge the cost of certain
actvatles, such as insurance and fleet management, to Individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business4ype activities ($1,138,601) and to capital assets ($6,712,798). 14,117,090
Resenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 133,149
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. (107,921,909)
Net position of governmental activities
The Notes to Financial Statements are
an integral part of this statement.
22
$ 469,593,847
CITY OF
PEOPLE FIRSt
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
EXPENDITURES
GENERAL
Current
DEBT
CAPITAL
General 9memment
GENERAL
SERVICE
PROJECTS
REVENUES
29,025,421
-
Ad valorem taxes, penalties and interest
$ 33,936,634
It 11,678,213
$ -
Fmnchisetaxes
6,973.705
-
-
Municipalsale$tax
17,592,860
-
-
Ucenses, panni(. and fees
2,863,226
-
-
Charges for senices
10,30,6]]
-
279,876
Fines
2,161
-
-
GiBs and contnbubons
815,408
-
4,000
Hotel /motel fees
_
-
6,889,399
Inmxr xemmental
11,826
-
1.048,596
In istment earnings
154,788
48,941
82,725
Miscellaneous
2,023.573
1,354,431
Total avenues
76,832,865
11,725,154
2.769,628
EXPENDITURES
Current
General 9memment
20,469,625
-
2,1130,516
Public safety
29,025,421
-
Public w s
3,489,328
-
Cultureandmcreation
20,326,175
-
-
Canmunity development
2,031,281
-
-
Capital outlay
-
-
4,788,883
Debt seMce:
Principal retirement
9,986
8,355,000
-
Interesl and fiscal charges
94
3.882,300
Total expenditures
75,351 910
12,237,300
6,889,399
Excess (deficiency) of revenues
oler(untlar) expenditures
1,480,955
(512,146)
(4.119771)
OTHER FINANCING SOURCES (USES)
Issuance of debt
_
-
-
Premium on bonds issued
_
-
-
Tanalers in
5,314,988
500.000
3,402,959
Tmnsfers out
(4,191,984)
-
-
Proceed$ fiorn sale of capital assets
15.829
Tota l other 8 nanci ng wurces(uses)
1,138,833
50,000
3,402,959
NET CHANGE IN FUND BALANCES
2,619,788
(12,148)
(716,812)
FUND BALANCES, BEGINNING OF YEAR
16.532,652
901,848
19,069,780
FUND BALANCES, END OF YEAR
$ 191152,440 $
889,702
$ 18,372.961
The Notes to Financial Statements are
an integral part of this statement.
23
EXHIBIT 5
GENERAL
OTHER
TOTAL
OBLIGATION
GOVERNMENTAL
GOVERNMENTAL
BOND
FUNDS
FUNDS
$ -
$ 527,375
$ 46,142,222
-
-
6,973,705
-
411,776
18,004,636
-
52,307
2,915,533
-
-
10,580,553
-
-
2,160,168
819,408
-
1,499,512
1,499,512
-
643,982
1,704,404
33,020
26,912
3 ,386
651
15,542
3,394,197
33,671
3,177,406
94,538,724
166,828 805,268 23,544.055
- 189,131 29,214.552
568,633 - 4,077,961
13,667 1,095,739 21,435,581
- 600,008 2,631,289
1,489,798 294,321 6,573,002
8,364,986
3.882,394
2,260,724
2,984,487
99,723,820
(2,227,053)
192,919
(5,185,096)
10,595,000
-
10,595,000
432,879
-
432,879
-
39,158
9,257,105
(198,441)
(93,857)
(4,484,282)
5,429
21,258
10,829,438
(49,270)
15,821,960
8,602,385
143,649
10,636,864
7,766,013
8,374,398
50,664,689
$ 16368,398 $
6,518,045 $
61,301,553
24
CITY OF ALLEN, TEXAS EXHIBIT 6
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2014
Net change in fund balances - total governmental funds $ 10,636,864
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount of capital assets recorded in the current period.
6,929,469
Govemmental 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.
7,808,534
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resouroes. Therefore, depreciation
expense is not reported as expenditures in the govemmental funds.
(26,098,550)
In govemmental fund financial statements , the proceeds from sale of assets are shown
as an increase in financial resources. However, in the statement of activities,
the gain or loss is calculated and reported.
(301,167)
The proceeds from issuance of long-term debt, e.g. bonds ($10,595,000), provides
current financial resources to governmental funds, while the payment of the principal
of long-term debt ($8,364,986) consumes the current financial resources cf
governmental funds.
(2 230 014)
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. However, these amounts are amortized in the
government -wide financial statements.
(492,109)
Current year changes in long-term 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.
(305,826)
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.
(13,775)
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.
861,546
Certain revenues in the government -wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.
90,343
Change in net position ofgovemmental activities $ (3,114,685)
The Notes to Financial SlatemeMs are
an integral pad of this statement
25
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30,2014
EXHIBIT 7
BUSINESS�TYFE nCTIMTIEB
ENTERPRISE FUNDS GOVERNMENTAL
AUNTIES
MMTERAND SOLID GOLF INTERNAL SEWCE
SEVER WASTE DRAINAGE COURSE TOTAL FUNDS
ASSETS
32,157,057
3,735,803
938%5
567,385
3],351,261
CURRENT ASSETS
NONCURRENTASSUS
C-1 nM caab er.cronls
$ 11,800,7271
$ 1,356,199 $
3]e773 $ ECL315
S 13.715358 $
7.155.019
in --meals
10.275825
1,661,610
15],523
16.397.958
$1115/3
Facer able; 724151 all5wnace lm LncollacSe
ccndacl.ninpm9ra8
4.565.809
Axwnb
6.9].318
286,409
65,114 -
5,316,811
-
OccruMinlreal
59.533
6,301
1,575 -
67.409
Y,166
OMx
-
621,485
- -
40,685
-
Irvealor
x,ne
-
-
x.726
PreaeYJ Urns
-
-
5050
5,450
Zil
Rana las cash and cash ersonnetl
1,384,612
3730.730
Fume—n07oWrea
1,384,812
Total capital aerts
TWlaaenlaue6
32,157,057
3,735,803
938%5
567,385
3],351,261
16,571.390
NONCURRENTASSUS
CAPITAL/GSETS
ISN
4.0nb93-
ccndacl.ninpm9ra8
4.565.809
-
-
-
4.585.889
2911903
Olhr imwol'omems
-
-
486,132
-
458.132
-
Tmem.lanks,and Mmpsla4ons
172,226,480
-
-
172724.409
-
.,.a
086,128
12,923
311378
93 A.
10.811.536
LACbiMry and a,lipman
4,844,80.5
am
130,347
63],4y
881,437
3730.730
Fume—n07oWrea
Total capital aerts
185591,752
21,315
957,857
937,53
1855Lb.3T7
I6,0.b, 187
Less awumulaleOJWrocialun
(0.707.527)
(21,315)
(578781
(501ANI)
(78A10M1)
18,121.x9)
casa azaMs, nelola—invulalc]Eeprxiabm
108,864.225
378,128
'CEIRS
180,807,838
6712.796
Total noncurrent assets
17.44,8.54,225
STEVE
0.5,583
180,801,33
6,712786
TOTAL ASSETS
141.31,312
3.]35.80'
1.279.113
962918
147.ONIn
23,284.188
DEFERRED OUTFLOWS OF RESOURCES
Debarred late on retarding
321,481
321.481
TOTAL DEFERRED OUTFLOWS OF RESOURCES
321,481
921,81
LMBILRIES AND NET POSITION
CURRENTLDBILRIES
Accoun4lm9ade
1.983.15]
L.
32.53
174.647
2.224,148
372.763
accrue]IudMes
114.575
25176
11,69]
31.913
1&.31
Tm
Rrl9mli dervish.
18,913
-
-
-
m'dara
-
1wa50anpanseleEabsancm--and
Mast
57,414
x,924
allm
63],015
-
YWurRBWlMrepcsn'cleMa
-
-
-
-
-
93$86
Pay$Aa M1lm rw4kleE as a.
RBWnua bnntla des,.- curtanl
1,280,003
1,2301030
-
Carylelhande. Ifle -runan
-
-
-
"aft'8
116,578
-
OccruWiMeatPasadena
7233
-
-
-
77.953
-
Camrnraeposilaarerla
1.614483
2].980
1.68.663
Total current liabilities
6E@,6el
117,33
5i,188
432,471
6,235.401
1.315.E
NONCURRENT LASILMIES
R—a-bmBa unable
Small)
8.993.910
-
Capital.asesseason
-
-
-
319,006
3190.E
-
kcnra]ccmpanseletlabsences
I28x
322
21882
2835
38,10.5
Taal noncurrent lltlll8lea
],03510
3,23
2.842
139130
7,349,020
TOTALLGBILrt1Ea
12Po8.31
120.591
86.078
]1.631
13.584.501
1,316880
NETPOSUMN
....raiment M caput aaW
10.613.315
-
378.128
-
160,%1,443
6,712.799
RpNcbE la raWnw MnB PnMNy aq YaaN1
x.39
28.859
UnrmbYAeB
25126,53
3815,213
814.807
211,117
32767,83
1535.681
TOTAL NET POSITION
S 13,88.78
$ 3,615,213
$ 1,18365
S 211.117
S 133.73.137 $
21.9611
The Notes W Financial Statements are
an Integral D rl 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, 2014
Amounts reported for business -type activities in the statement of net
position am different because:
Total net position per statement of net position $ 133,786,137
Internal service funds am used by management to charge the costs of replacing
machinery and equipment, haat management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The assets and liabilities of internal service funds are included In the governmental
activities in the government -wide statement of net position. The amount shown
represents the net receivable from internal service funds allocated to business -type
activities since the adoption of GASB 34. 1,136,601
Total net position of business -type activities
The Notes to Financial Statements are
an integral part of this statement.
27
$ 134,924,738
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
12TI.
-
-
-
EXHIBIT 9
capSelcmblWbu
BURNESSI ACTMFEB
-
-
1402ARI
ENTEPPRIBE FVXBe
.."B
OOVERXMENTK
man
21.90.3
SE4a14
Tmela. I..r.Nq.
N.E.. E)
(7.4.5)
ACTMFIES
W Pao
SOm
TO used-roe..—ygt.anet.n
OOIF
(M.)
INTERN.
206Y7
BE a
PMSRE
ORMNbE
COVRBE
TOT.
..CB FUNDS
OPEMTINO REVENUES
01seet
W.
NET POSITION. BEGINNMG OF WAR, AS REST6TEB(NOTE 131
1.IS .1
5.21320
12.zAss
Caaemcea.
939]1 ..5
21.121..4
We�tvlo
f
E -
$ -
0 -
f 15,475,216
$ -
Bawer dagee
CmrecNniws
IN.
tW2
-
-
Garmg'c tiw
Bi%.TA
SB%Te.
0.3'1,]38
'g 89
551010
-
9 .21.
5)]
3,.581
31.3580
11.ffiS.PiS
Dre nage lee
1.3E.MB
-
;52E,Ma
-
11.X0
11.BIp
-
GOeNN!X ammemiOn.
1pm,000
1,SM.1.7
-
m.cam..oa
Sm.s1s
.z..9
X.
4..4
Bs9.1n
611,471
TeYl eperNlry re.eOre
..767.
B."'0.
1.381.530
1611.99
41.18.
"'No M
oPEPAnxD EZPSxaBE
Pvamnd aaNeec
.0693
.SIAM
33[0.931
B....
cml,xWaleavcu
ISBILB>5
1,.2.
IF.
".A.
10.012.an
10...
AtrMenmca
351.zBx
"N.
219A,
s.719
83 E.1
-
SuMA.
211.9
16.512
61Mz
A9.1M
512181
DpmaSm
S,M&1.
1]0
21.1.
113,an
6.1.1.1
1,MI..30
or-
irdlfl5
..ZX
S.
11.3.
3J2N0
reW gremlrro. WerneF
...BIT
6303,215
051.913
1.9.[59
39.1y,yA
11213...
CROONING INCOME(LOSS)
11..561
5....
42.55)
.71401
2x..1
R.A.)
NON�PEWING PEANNUES(EXPENSES)
minae
12'191
T."t
11.
o.I�ma.PYaa.wl..e.Y
57.3x1
TOY'—P.YIY...... -.RxP.—R
132xo3T
..013
xa.
I3T..W)
15....
INCOME (LOSS) BEFORE CIPn.
CONTRIBUTIONS AND TRNISFERS
.115.1
980.738
4QQm301
1.1.1.0)
1.931.38
5091
Omlcpmml teen
12TI.
-
-
-
1Z1a`X
capSelcmblWbu
2402511
-
-
1402ARI
Trwrm lmm We.tuka
.."B
man
21.90.3
SE4a14
Tmela. I..r.Nq.
N.E.. E)
(7.4.5)
(.1.21)
TO used-roe..—ygt.anet.n
R...)
(M.)
(.1.TM)
206Y7
n..25m
054.114
CHANGE IN NET POSRON
11. a91
.1473
(.AEA)
1.,553)
01seet
W.
NET POSITION. BEGINNMG OF WAR, AS REST6TEB(NOTE 131
1.IS .1
5.21320
12.zAss
2..810
939]1 ..5
21.121..4
NET POSITION, END OFYEM
f I2SINISR
S 3515213f
1193.035
S 211,111
$ 13i,T., 137 f
31969.4.
The Notes to Financial Statements are
an integral pan of this 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, 2014
Amounts reported for business -type activities in the statement of actimbes
are different because:
Net change in fund net position- total proprietary funds $ (15,539)
Internal serNce 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 seMce funds is allocated to
business -type activities. (14,921)
Change in net position of business -type actiNlies $ (30,400)
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 30.2014
EXHIBIT 11
FINANONGACTNME
(ZD1]]5)
auSINE$S.TYPF RCTN 1.
-
(59],66])
(933,3(4)
TmrsismmSgn date a
33.375
ENTERPRISE FUNDS
208.59]
241,962
GO9ERXMEHTK
Trerebn odbotler=s
48]8035)
(]09363 (481701)
(EMINAN(4
MS.)
..a
(709,383) (481.701)
WATER PND
SOLID
554,314
094£
13.487,135
NTERNK
4a1591
SEWER
IESS 309
DRIWNiE
COURSE
TOTAL
EER9ICEFUNDS
CASH FLOWS FROM OPERATING ACTNmES
f 151E0,170 $
Pnnci ne"R5 m--....N.a
(1..5109)
- -
(1,x05,01111)
Ca¢Nec¢i`eo fiomculo�ma
$31.M.Syst
$5312.37
ELNT.I34
$2,SN.T80
$41.53]$51
$
hrxeiuetl lmmbarsactiort��tiN.'NN.
Ma15,428)
- (16.a.)
5320
(1931990)
(1.135,709)
11.70.771
=h
Ca¢hpaiE bampb)ee¢ lo, ¢¢Mm¢
(4,335$.)
(4]5,5]1)
(476,073)
N366.161
1.58229](
(4503(4)
Ca¢hpai 0br aoo0¢s4s.—
(15.1,520)
(4,800135)
(450..)
(1.391551)
IRS1]5,959)
MAN,238)
Ceahp¢iebrcI—
(4AW.0.U)
5],33]
Co�Ni5ud0rm had d..,n
13]1549
(53013]2)
13]1,549
Not cash us" In caphal and
NW cash pra.Ma56y (u.. N.B. .. at..
5.825135
535]20
480AIS
(144382)
%118.905
1,479.833
FINANONGACTNME
(ZD1]]5)
(0.403)
-
(59],66])
(933,3(4)
TmrsismmSgn date a
33.375
3.330
208.59]
241,962
854.314
Trerebn odbotler=s
48]8035)
(]09363 (481701)
(EMINAN(4
MS.)
Net cash pmvlded by (used In)--pbal Bnandn9 selXXW HBU.68N
(709,383) (481.701)
208.5d]
0.627,1371
554,314
CASH FLOWS FROM GMRKAXO
13.487,135
1,417,775
4a1591
d".607
IESS 309
N EO FNANCNGSCTNTES
$12 s4NS3
f 1,358.199
$ 376.773f
2I2315
f 151E0,170 $
Pnnci ne"R5 m--....N.a
(1..5109)
- -
(1,x05,01111)
-
Iacal.ace.boa manaber,..
(01328)
-
-
(491]28)
]23]
Z aceonand meE¢ti-W.O.,vae.
Ma15,428)
- (16.a.)
5320
(1931990)
(1.135,709)
OMplbl ease pgmn.
41a.2
(113.687)
(111581)
40.1.
P. -.d. Som data scunce
4.550.000
- -
-
4,6500(4
7.E34094
Ps,.NblaNtlad.. c,—case
RANDOM)
- -
-
(4AW.0.U)
5],33]
Co�Ni5ud0rm had d..,n
13]1549
13]1,549
Not cash us" In caphal and
naafi Fnan..l....
(4,480305)
(is.)
(113,587)
(4620.35)
01—b )
u heasofl...aecuices
Wemalcal—cannea
N.Ic.eh... 11. I—Macn9 actleb..
NET CHANGE IN CASH MD CASH EW NALENTS
CASH AND CASH EW NALENT3, BEGIXNNG OF YEAR
EARN AND CASH EQII A EXTS. END OF YEAR
RECONCI WTION OF OFERRTIXG INCOME (LOS)
TO NET CASH pRO9S1ED BY OPERATING ACTNRIES
MlopmSrg lrevme(o..)
Aaac.. a b... onnalre )mane sass)
to relcaahpmeded Oy (used m) WeraanD.NNtim
Oepre ms4noe
crerge�nasaalsx44 IaibInd.
Faovare
Wer,ecelyhbeWas
preplm
Merbne
n«aa,bhadeace,P.'a
lwcnetllladlaa
compSLama chasms.
Dapcvb
TebLdju...
....an p—.. 0y (aged In) qaw+..a a...—
....H
. W.wNON{ASH N9ESTNG..d.S:
CBe,Ga In . ler vacs d lme¢OmM¢
NOI I FINANCING ACTNRIES:
c..0) 5ole acRnR....... e.-.,
Re concllNibn el.1.... b Na slabmenl.1 nsl Pad.
Cantam uM and... -cured
Reamma cash and cash eadwaM.
CASH AND CASH EWNALENTS. END OF YEAR
pass..)
(ZD1]]5)
(0.403)
-
(59],66])
(933,3(4)
192.964
1IA42
3.330
2522
208,136
77.035
(153328)
(188,833)
(47.772)
(389531)
MS.)
(862353)
01.5]0)
(Hats)
(49892)
SMI
460.249
13.487,135
1,417,775
4a1591
d".607
IESS 309
5884,]]0
$12 s4NS3
f 1,358.199
$ 376.773f
2I2315
f 151E0,170 $
L155019
E 11.1550 $ 885594 $ 428.557 $ 1287.(40) $ 2,244.091 $ (167,45(4
5910821
270
24,165
113,587
5049043
ij01,439
0x5,309
(141,135)
5,606
2522
4828(4
-
1,453
-
1.453
-
-
B.WO
sass
M3,550)
10,583
10..3
]00,3]3
2033
9323)
25353
nNAM
239,500
128.]20
125]x0
-
11281
103
2aN
p}93)
]23]
-
40,109
5.022
5320
]A88
05030
41a.2
4,650
40.1.
].482559
(132.1]4)
30882
162.040
7.E34094
1647.300
0 0.020.113
f 039720
$ 409A10
$ (144382)
$ BT8.985 E
1,479S.
E (67,M) E = E E S (57,850) $
$ 2.402811 E E w $ E 21402511 E
$11.440.071 $1a50.1W $ 3]8}773 S 542415 313,115a. $ 1155.019
1,384,812 1a54512
$12,824,883 $ 1..l. $ 3]8.]773 $ 542.315 f 16.109.1]0 $ 1155.019
The NO. tD Financial Statements are
an integral part of this statement.
30
CITY OF ALLEN, TEXAS
STATEMENT OF NET POSITION
COMPONENT UNITS
SEPTEMBER 30, 2014
EXHIBIT 12
ALLEN
ALLEN
ECONOMIC
COMMUNITY
DEVELOPMENT
DEVELOPMENT
CORPORATION
CORPORATION
TOTALS
ASSETS
CURRENT ASSETS
Cash and cash equinelents
$ 4,829,520
$ 2,882,T75
$ 7,712,295
Investments
6,891,910
4,220,285
11,112,195
Sales tax mcevble
1,436,156
1,436156
2812312
Accounts receivable
2,534
2,534
5,068
Accrued interest receivble
26,813
15,917
42,730
Prepaid items
6,298
-
6,298
Restricted cash and cash equivalents
751,646
1,100,500
1,852146
Total current assets
13,944,877
9,658,167
23,603094
NONCURRENT ASSETS
CAPITAL ASSETS
Land
3,91
-
3.973,042
Fumeure and fixtures
66,075
-
66,075
Impmsement8 other than buildings
3,128.689
3,128689
Total capital assets
7,167,806
-
7,167,806
Lessaccumulated depreciation
(2,399,315)
(2,399,315)
Capital assets, net of accumulated depreciation
4,768,491
4,768,491
Total noncurrent assets
4,768491
4,768,491
TOTAL ASSETS
18,713,368
9,658.167
28,371 535
DEFERRED OUTFLOWS OF RESOURCES
Deland loss on refunding
16,414
16.414
TOTAL DEFERRED OUTFLOWS OF RESOURCES
16,414
16,414
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
65,095
104,703
169.798
Retainage payable
-
27,795
27,795
Accrued interest payable
60,326
158,843
219,169
Accrued and other liabilities
13,878
-
13,878
Revenue bonds payable - current
870.000
1.135.010
2,005,000
Total current liabilities
1,009.299
1,426,M1
2,435,840
NONCURRENT LIABILITIES
Revenue bonds payable (net of unamodized
discounts)
16,554.160
31.338,420
47.892580
Total noncumant liabilities
16,554160
31,338,420
47,892580
TOTAL LIABILITIES
17,563,459
32,764,761
50,328,220
NET POSITION
Investment in capital assets
4,768,491
-
4,768,491
Residcted Tor debt service
691,320
941,657
1,632,977
Unrestncted
(4,309,902)
(24,031 837)
(28,341,739)
TOTAL NET POSITION
$ 1,149.909
$ (23,090,180)
$ (21,940,271)
The Notes to Financial Statements are
an integral pad of this statement
31
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
EXHIBIT 13
N•rIng"' )Revenue.ne
cn... Net Position
COMPONE IT UNITS
M EN ALLEN
OP•roong E XXINK( C waded NMy
cNryaakr Gra Maend OEWELOPMENT OEVELOPMENT
EapnnNe SeMc•a GOMlbudone CORPORATION CORPORATION TOTA58
Fu..Prcervn Acti.tlN
COMPONal UNITS
Allan Ecawmlc
$ 3.332.627 $
ale.,., $
11,%5.2A
oevacpmem "Torpom
$ 4,952.338 $ - $
- s 14,esz,3381 $ -
$ (4.91AIIen
Cenmunity
Ni
185.573
GSMCOnenl Gw$welloi
AINIM
(5.188.723)
(5.183,723)
TOTAL COMPONENT UNITS
$ 10.12.061 $ $
$ (4.952.334) $ (5.189723)
$ 110.142.989
General Iwamr+:
3tlp Nam
$ 3.332.627 $
ale.,., $
11,%5.2A
in ione—mama
6],ON
24.EC2
75.8%
MI¢Wlarecue
Ni
185.573
Total general nvenuee
9,015,2M
8,561,468
1].926.]13
CHANGE IN all POSITION
4.112906
3.8]1.]46
]]80.652
NU POSITION, 5e01nnln9 of par, as n4NE(Nob 1$) (2.9&2.9W) (26.]61.926) (29,]24,9231
NET POSITION, end M year $ 1.149.90) $ (23,090.1391 $ 121.911
The Notes W Financial 5talemeMs are
an integral Part N this statement.
32
CITY OF
�E���EFIRST
RESPECT INTEGRITY DELIVER EXCEL
NOTES TO FINANCIAL STATEMENTS
CITY OF ALLEN
pERPIE FIRST
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 specific financial benefits to, or
to impose specific financial burdens on, the primary government. A primary government may
also be financially accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects, or activities of, or the level of services performed or provided by,
the organization. A financial benefit or burden relationship exists 0 the primary government (a) is
entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the
obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization.
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval by the primary government. 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, 2014
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 are appointed by the City
Council. Both the AEDC and ACDC are fiscally dependent upon the City as the City Council
approves their budgets and must approve any debt issuance. However, the component units
do not qualify for blending because the component services directly benefit the community
rather than the City itself. The AEDC and ACDC are discretely presented as governmental
fund types and do not issue separate financial statements.
Basis of Presentation
The government -wide financial statements (i.e., the statement of net 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.
K-9
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 primadly from
taxes levied by the City. The fund balance of the Debt Service Fund is reserved to signify the
amounts that are restricted exclusively for debt service expenditures.
General Capital Projects Fund -
The General Capital Projects Fund is used to account for resources used for the acquisition
and/or construction of capital facilities by the City, except those financed by proprietary funds
and not accounted for by another capital projects fund.
General Obligation Bond Capital Projects Fund -
To account for financing, acquisitions, and construction of improvements to City facilities and
infrastructure not accounted for by other bond funds.
Proprietary Funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position and cash flow. All assets and liabilities 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 collection activities. The fund
also accounts for the accumulation of resources for, and the payment of, long -tens 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, 2014
NOTE 1. 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.
KS"
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 accounts. Interest income relating to pooled deposits is allocated to the individual funds
based on each fund's pro rata share of total pooled deposits.
For purposes of the statement of cash flows, the proprietary funds consider all highly liquid
investments (including restricted assets) with an original maturity of three months or less when
purchased to be cash equivalents, as they are available for withdrawal on demand.
Investments are recorded at amortized cost when original maturity at the time of purchase is less
than one year or at market if greater than one year.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of funds are recorded in order to reserve that portion of the applicable
appropriation, is utilized in the governmental funds. Under the City's budgetary process,
appropriations lapse at fiscal year end. Encumbrances are reported as 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, 2014
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 2013 levy was
based is $8,373,043,840. 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-temr debt. The combined tax rate to finance
general governmental services including the payment of principal and interest on long-term debt
for the year ended September 30, 2014 was $0.550 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 rales
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
govemment-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 properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as a reduction of expenditures/expenses in the fund reimbursed. All other
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,
2014, ACDC contributed $393,302 and AEDC contributed $100,370 to the General Fund for
administrative costs and for the Allen U.S.A. Celebration. These revenues were reflected as
grants and contributions for the primary government in the government -wide statement of
activities.
aA
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 mel (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.
0,7
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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
govemment-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 classifcation includes retirement of long term debt,
construction programs, and other federal and state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes that are
intemally 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, 2014
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, 2014, with collateral required by state statutes. At year-end, the carrying amount of
the City's deposits was $9,378,025 and the bank balance was $10,067,472. 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, 2014 was $47,075.
The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were
$437,420 and $836,048, respectively, with no corresponding bank balances as they are pooled with
the City's deposits. AEDC's petty cash balance at September 30, 2014 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, 2014
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 Type
Certificates of Deposit
Repurchase Agreements
U. S. Treasure Obligations
Municipal Investment Pool
Commercial Bank Savings Account
Money Market Mutual Fund
U. S. Government Securities (non -callable)
U. S. Government Securities (callable)
U. S. Government Sponsored Corp.
Instruments: non -callable
U. S. Government Sponsored Corp.
Instruments: callable
Commercial Paper
Bankers Acceptance
Guaranteed Investment Contracts
State or Local Governmental Obligations
Disclosures Relating To Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Investments with interest rates that are fixed for longer periods of time are
more likely to be subject to increased variability in their fair values due to changes in the market
interest rates. The City manages its exposure to market price changes by avoiding over -
concentration of assets in a specific maturity sector, Imitation 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.
42
Maximum
Maximum
Maximum
Percentage
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
30%
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, Imitation 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.
42
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES —CONTINUED
Disclosures Relating To Interest Rate Risk— Continued
As of September 30, 2014, the City had the following investments:
Disclosures Relating To Credit Risk
The Citys Investment policy, in conjunction with state law, specifies the type of credit rating of all
authorized investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a
nationally recognized statistical rating organization. The City reduces the risk of issuer default by
limiting investments to those instruments allowed by the Public Funds Investment Act, Chapter
2256, Texas Government Code. The City's investments in U.S. Agency securities (FHLB,
FHLMC, and FNMA) are rated AA+ by Standard & Poor's and Asa by Moody's Investors Service.
The City's investments in municipal bonds are rated AA- by Standard and Poor's 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, 2014.
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, 2014, with the exception of funds invested at Texpool, the following table
represents 5% or more of the Citys investments.
Issuer
Investment Type
Reported Amount
ev
Velue
Federal agency securities
$ 15,050,182
12.48%
Wc9Metl
Imeaiment
P
9.09%
FHLB
Federal agency securities
9,195,427
7.63%
FHLMC
A,g. Malunty
Type
Gowm.ent
AEDC
ACOC
Talcl
(Veers)
FFCB
$ 9.3D9.M3
$
1,021.174
$
825.320
$
10.958.197
286
FINa
7,813,541
857,062
524,824
9,185,427
342
FHLMC
5,595,747
813.793
375,058
6,505,398
3.09
FNMA
12]88.495
1AM.765
858.902
15,0501182
3.15
MunlciMi BOM
1.204.724
132,145
80.920
1.417]89
1.39
C ificadm d Deposit
26,119,075
2,864.981
1,751,381
30]38.437
1.13
Tex
38,36e553
4.745,010
3,595,855
48,851,428
D.W3
Tolnl
$ 101.191.788
$
11,636,928
$
7.7W.140
$
120.584.8%
Disclosures Relating To Credit Risk
The Citys Investment policy, in conjunction with state law, specifies the type of credit rating of all
authorized investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a
nationally recognized statistical rating organization. The City reduces the risk of issuer default by
limiting investments to those instruments allowed by the Public Funds Investment Act, Chapter
2256, Texas Government Code. The City's investments in U.S. Agency securities (FHLB,
FHLMC, and FNMA) are rated AA+ by Standard & Poor's and Asa by Moody's Investors Service.
The City's investments in municipal bonds are rated AA- by Standard and Poor's 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, 2014.
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, 2014, with the exception of funds invested at Texpool, the following table
represents 5% or more of the Citys investments.
Issuer
Investment Type
Reported Amount
Percentage
FNMA
Federal agency securities
$ 15,050,182
12.48%
FFCB
Fetleml agency securities
10,956,197
9.09%
FHLB
Federal agency securities
9,195,427
7.63%
FHLMC
Federal agency securities
6,585,398
5.46%
43
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES—CONTINUED
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, 2014, the City's deposits with financial institutions above the federal
depository limits were fully collateralized.
NOTE 3. RECEIVABLES
Receivables at September 30, 2014 for both governmental and business -type activities, including the
applicable allowances for uncollectible accounts, consist of the following:
Grove R ebles 523.309 2,8]2,313 5,515,297 265.457 137.557 2.M .291 11.932.301
Less, Allwerce W
Uncallec081es
Pn y
Sales
A Cm
Total W R ei�bl�,
Primary Goverment
Tv
Tmwe
Account.
Interest
gaesemaHa
01M
TOW
Gereml Fund
$ 398.761
$2,872.313
$ -
$ 71.287
$ -
S 2.021.206
$ 5,3$.547
Oabt S.rk.
153,625
-
-
20.742
-
1)4.36]
G neml capnal pmis
-
-
45,666
167.557
-
233,241
G.O. Bond! Fund
-
-
-
26,485
-
-
MAN
N nnajor GnremmanW Funds
-
283875
14.M
-
290.577
Waur.. Sewer
-
-
4,881,899
591533
-
-
5,L41,432
solid Waste
-
-
284.409
8.301
-
427,085
717.]95
IXa'na
65,114
1.575
-
-
MI(MG
Into l Seruce Funds
-
x_180
-
-
MAN
Grove R ebles 523.309 2,8]2,313 5,515,297 265.457 137.557 2.M .291 11.932.301
Less, Allwerce W
Uncallec081es
(ND.23])
- 11458ll
1401.0101
Total W R ei�bl�,
Primary Goverment
5133149
$2,872.313 $ 5.6W]10 $ 20545] $ 10],55]
$2440.291 $11.527.403
Cumlpnent Unl4
$
$2,072.312 $ $ 42]30 $
S 5AW S 2020110
The Water and Sewer Fund accounts receivable include unbilled charges for services rendered
through September 30, 2014.
EE1
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2014 was as follows:
Governmental Activities
Total capital assets
Balance
Balance
September 30,
140]92.739
AijumnenW
September W.
(10,740.530)
2013
Atlanta.
Digoitions Transrem
2014
Governmental Funda:-
bang depreciated
General pdpp2l..segs
Buildings
but being dsibeepetad:
-
(161
-
131,330.347
LaM aM land improvement.
$ 129,147,401
$ 1,480,163
$ (12,802) $ -
$ 130,014,612
Construction in migness
11,60.5,278
0495.575
(10.740,530)
9.400.323
Total capital assets
not being disPnguised
140]92.739
91975,738
(12,982)
(10,740.530)
140,014,985
General captal assets
bang depreciated
Buildings
131,347,203
-
(161
-
131,330.347
Imcrmements
other than buildings
468,053.965
4,263,451
(3,3W,355)
10,260,813
471,197,874
Fumiture and fixtures
6.042.531
-
(61.2891
-
7.973.242
Vehicles
2,518,100
62,683
(135,027)
-
2,445,8%
LibmN books
1,355,346
243,842-
-
1,599,180
Machinery and aguipment
10,497,952
212,289
(145.093)
479.79
11,014,065
Tmal capital assets being
depreciated
619.815.97
4.762,266
(3,728,820)
10,74(1
631.591.352
Less accumulated
dapreclatum bar,
Builtlings
(22,377,218)
(3,336,914)
16,855
-
(25,692271)
bnpm ennents
other than building.
(213,262,970)
(20,181
3,072,170
-
(230.379,215)
Fumiture and fixtures
(6,412,566)
(1,036,216)
69,2&9
-
(7.379,495)
Vehicles
(2,013,017)
(227,463)
135,028
-
(2,105,452)
i books
(968632)
(1%.7 )
(1,062,336)
Machinery and equipment
(8,379,073)
(1,113,806)
145.093
(9,347,786)
Total accumulated
depreciation
(253311476)
(26090.550)
3.438.435
(275,9]1,581)
Total general capital assets
being aepeclatea, net
386.503.701
(21.338.285)
(288.185)
10.740,530
355.619.761
General capital assets, net
Y W829e440
$ (11.360.54]1
$ (301,167)
$ $
495.634728
45
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30.2014
NOTE4. CAPITAL ASSETS—CONTINUED
Balance Balance
Sepembw 30, Adjustments/ September 30,
2013 Adddians Depositions Translate 2014
Internal Service Funds,
IMemal wrote Nnds assets
not berg deoraciated.
Constmctlonin po,ona E 1.51 O.t84 $ 291903 $ $11.5101841 E 291,803
Total camel assets
not berg dapreaated 1,510,184 291,903 (1.5101541 291,803
Internal s.Mce
sets being depremated:
7,076,459
(385891)
8712798
Vehmles
10,543,978
W91305
(321,749)
- 10,811,534
Machinery ant equipment
2,068592
26455!1
(102,584)
11510.184 3,730730
Total internal aeMte
assets bar, depreciated
12,612.570
843,883
(424.333)
115101164 14,542.284
Less accumulated
depreciation for
$ 4,072,882
$ -
$ - $
- $ 4,072,882
Vehicles
(5,474,274)
(1,217,593)
321,749
- (6,370,118)
Machinery ant e9uament
(1,5]0,001)
(283834)
102,504
(1,751$1)
TOM accumweled
5,223,452
3,435308
8658,T70
deposdation
(7,040.2]5)
(1,501,42])
424.333
(8.121.389)
Total Internal service ands
170,835,634
2,402,811
(1,014,236)
- 172,224,009
capdal assets being depreciated, net
5,588295
857,5641
(11,114)
1,510,184 8.420,895
Total IManal serAm Nets
oapdall assets. net
7,076,459
(385891)
8712798
Greemmental actiMies
captal assets. net
$ 514,374,899
$ (11]26,208)
$ (301,187) $
$ 502,34],526
Business -Type Activities
Water and sewer Activities,
Capital assets not being depreciated,
Land
$ 4,072,882
$ -
$ - $
- $ 4,072,882
Constmchon in progress
111501580
3,435,308
4.585,888
Total capital assets not
being depredated
5,223,452
3,435308
8658,T70
Capital Assets Being depreciated:
Towers, tanks, 8 pumps stations
170,835,634
2,402,811
(1,014,236)
- 172,224,009
Furniture ant fixtures
11,114
-
(11,114)
- -
Machirxayandeguipment
4,802,049
457,132
(214,336)
- 4,844,845
Vehicles
841,143
22,985
864,128
Total capital assets
being depreciated
176.289.940
2,882]28
(1,239,688)
1]],932.982
Less accumulated depreciation loc
Towers, tanks, 8 pumps stations
(69,189,490)
(5,418,531)
1,014,236
- 93,573,785)
Furniture ant fixtures
(11,114)
-
11,114
- -
Machirevy and equipment
(3,214,048)
(392.703)
214,336
- (3,392.415)
Vehicles
(883,392)
(57935)
(741327)
Total accumulated
deprecation
(73.078044)
(5,889169)
1,239,686
(,4]07,52])
Total capital assets
being depreciated, net
103,211,896
(2,988441)
100,225,455
Water ant sewer aotietwe
capital assets, net
$ 108,435,358
$ 448,8137
$ $
$ 108,864.225
M.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE4. CAPITAL ASSETS -CONTINUED
Golf Course Activlfies:
Balance
Balance
Capital assets being depreciated:
Seplember30,
Seplember30,
Machinery and equipment
2013
Addition
Disposition.
2014
Solid Waste Oc[Nllis.
10.894
(10894)
Capital assets us, depreciated:
Machinery and equipment
$ 8,392
$ -
$ -
$ 8,392
Vehicles
12,923
12.923
Total capital assets
bang depreciated
21,315
(113,587)
-
21.315
Fumiture and fidures
(10.894)
10.894
Less accumulated depreciation for.
Total accumulated
Machinery and equipment
(8,122)
(270)
-
(8,392)
Vehicles
(12.923)
(12,923)
Total accumulated
capital assets, net
549.170
(113.587)
depreciation
(21,045)
(270)
(21,315)
Solid waste activities
capital assets, net
$109,370,527
$ 327,409
$
capital assets, net
$ 270
$ (270)
$
$
DralneW Mielt es:
Capital assets being depeciated.
Other improvements
$ 196,1M
$ -
$ -
$ 496,132
Vehicles
31,379
-
-
31,379
Machinery and equipment
430682
16,564
(16,900)
430,346
Total capital assets
being depreciated
958,193
16,564
(16,900)
957,857
Less accumulated
depreciabon for:
Other improvements
(128,772)
(12,264)
-
(141,036)
Vehicles
(29,697)
(1,682)
-
(31,379)
!Machinery and equipment
(413.9%)
(10.219)
16.900
(407.314)
Total accumulated
depreciation
(572.464)
(24.185)
16,900
(579,729)
Drainage actmbes
capital assets, net
$ 385,729
$ (7,601)
$
$ 378,128
Golf Course Activlfies:
Capital assets being depreciated:
Machinery and equipment
$ 937,453
$ -
$ -
$ 937,453
Furniture and Snures
10.894
(10894)
Total capital assets
being depreciated
948347
(10,894)
937,453
Less accumulated
depreciabm for.
machinery and equipment
(388,283)
(113,587)
-
(501,870)
Fumiture and fidures
(10.894)
10.894
Total accumulated
depreciation
(399M)
(113,587)
10,694
(501,870)
Golf course acfivises
capital assets, net
549.170
(113.587)
435,583
Business -type activities
capital assets, net
$109,370,527
$ 327,409
$
$ 109,697,936
47
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 4. CAPITAL ASSETS — CONTINUED
component units:
Capital assets not being depreciated
Land
Land improvements
Total capital assets
not being depreciated
Capital assets being depreciated.
hnprevxments other
than buildings
Furniture and fixtures
Total capital assets being
depreciated
Lass accumulated depreciation for.
Balance Balance
september 30, September 30,
2013 Aaarlions Dispositions 2014
$ 4,324,525
$ 30.000 $ (381,483) $
3,973,042
207.878
(207878)
(66075)
(88,075)
4.532403
30,000 (589,361)
3,873,042
(2,245.982)
(153.333)
(2,399,315)
3.1281689
- -
3.128,6a9
68,075
Component unds capital assets, net $
65,075
S (123,333) $ (589,361) $
4,768,491
3,194.764
-
3.194.784
Impmenn is other than buildings
(2,99,907)
(153,333) -
(2,333,240)
Furniture and fixtures
(66075)
(88,075)
Total accumulated depreciation
(2,245.982)
(153.333)
(2,399,315)
Total capltal assets being depredated ret
91
(153,333)
795449
Component unds capital assets, net $
5,481,185
S (123,333) $ (589,361) $
4,768,491
Depreciation expense was charged as direct expense to programs of the primary government and
component units as follows:
Govemmenual 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 actisties
48
$ 1,204,458
987,068
14,592,664
9,236,143
3,076
75,141
26,098,550
1,501,427
$ 27,599,977
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE4. CAPITAL ASSETS—CONTINUED
Buslnass-type activities;
Water and sewer
$ 5,869,169
Solid waste
270
Drainage utility
24,165
Golf course
113,587
Total depreciation expense - Business -type actiW ies
6,007,191
Component units:
Allen Economic Development Corporation
$ 153.333
Outstanding commitments at September 30, 2014,
under authorized construction contracts were
$297,869. 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, 2014, bonds payable consisted of the following individual issues:
General Obligation Bonds:
$32,330,000 Series 2005 Refunding Bonds due in annual
installments of $75,000 to $3,505,000 through August 15.
2021; interest at 10% to 5.00%.
$ 16,875,000
$1,595,000 Series 2006 Bonds due in annual installments
of $50,000 to $115,000 through August 15, 2026;
interest al4.0%to 4.20%.
1,110,000
$11,145,000 Series 2007 Bonds due in annual installments
of $380,000 to $815,000 through August 15, 2027;
interest at 4.0% to 5.0%.
8,210,000
$10,185,000 Serres 2008 Bonds due in annual installments
of $250,000 to $745,000 through August 15, 2028;
interest at 3.5% to 4.60%.
7,885,000
49
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE5. LONG-TERM DEBT -CONTINUED
General Obligatlon Bond.—continued
$15AW0 Stales 2009 Bonds due in annual Installments
of $435.000 to $1,140,000 through August 15, 2028;
Interest at 2 5% to 4.5%.
$12,000,000 Serres 2010 Bolls due in annual installments
of $390000 to $865,000 tln u h "ust 15, 2029;
Interest at 2.0% to 4 0%
$8,985,000 Series 20104 Refunding Bonds due In annual
installments Of $110,000 m $970,000 tbrougn August 15,
2022, iMtaest at 2.0%to 3 0%
$8,840,000 Some 201 t Refunding and ImerosemeM Bonds
due in annual Installments of $255,000 fo $785000 inrougn
August 15, 2030; Interest at 20%to 4 2 %.
$13,855000 Series 2012 Refunding and YngovemeM Bonds
due in annual Installments of $350000 to $1,800.000 inmugn
August 15. 2024, interest at 2,0% to 5.0%.
$5,085,000 Sanies 2013 Bonds due In annual installments
of $1 W." b $340,000 tf,agn August 15, 2032:
interest a12.0%b 3.5%.
$10,595000 Serles 2014 Bands due in annual Installments
of $375,000 to $740,000 through August 15, WW,
interest 812.0%to 4 0%.
Cludilica es W Obligation:
$765.00 Series Z B Combination Tax 8 Revenue
Gen Course Certificates of Oblgation due in annual
Installments of$ 25,000 to $70,0D0 ivr h
September 1, 202* indeed at 4.875% to 5.50%
Water and Sever Revenue Bonds:
$4,3110,000 Sales 2005 Bonds due in annual installments
Of $140,00010 $310.WO thmugb June 1, 2025; InlereSt
at 3,75% to 6 625%
$5)95,000 Series 2009 Refunding Bolla due installments
$530,000 to $630,000 tbmugn June 1, 2019,
interest at 1 2% to 3.5%.
$3.370,000 Seres 2013 Refunding Bonds due installments
$90.000 to $385,000 Mrcugb June 1, 2025;
inlereal at Z13% 3.0%.
$1.280.000 Santee 2014 Refunding Bonds due installments
$105.000 to $265,000 dvougb June 1, 2024;
Intenest at 21%.
50
$ 12,400,000
10,100000
6,990,000
6.690,000
13,515.000
4,875,000
10.595.000
$ 99?45000
$ 530000
$ 530.000
$ 415,900
2.950.000
3.370,000
1.280000
$ 8.015000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30,2014
NOTE 5. LONG-TERM DEBT - CONTINUED
AFDC Sales Tax Rewnue Bonds
$15,335,000 Series 2008 Sales Tax Revenue Bonds
due in annual Installments or$390,000 to $940,000
through September 1, 2032; Interest at 3.50% to 4.50%
$1,605,000 Sense 201M Set.. Tax Ratans. Bonds
due in annual installments of $440,000 to $595,000
beginning September 1, 2023 tbmugb September 1,
2025; interest at 4.00%.
$5.165.000 Sense 20106 Sales Tax Revenue Bonds
due In annual Installments of $105,000 to $52Q000
though September 1, 2023, interest at 1.35% to 510%.
AGOG Sales Tax Rewnue Bonds
$S,fi00,000 Series 2015 Refumling Bonds due in
annual installments of $290.000 to $785.00 through
September 1. 2019; interest at 3.75% to 5.0%.
$32,835,000 Sense 2008 Sales Tax Revenue Bonds
due in annual installments of $345,000 to $2,985,000
through September 1, 2032; Interest at 4 00% to 6 00%.
51
$ 12,1)0,000
1.805.000
3.890.000
$ 1),485,000
$ 3.010.000
29.590.000
$ 32600,000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE5. LONG-TERM DEBT—CONTINUED
Balmcn
The folloveing Is a summary of long-term debt transactions,
including current portion, of the City for
the year ended September 30, 2014:
B,innm9
Balance
End
Belerce
Due
Beglmi,q
Increases
Dec,eaees
End
WiMin
of Yen
Iwreass
Cecreyas
o/Ywr
One Year
Gowrnmereal ANNBee
Gere,al OdlgNlon BoMs $ 9B735.W0
$ 10,$9,030
E (8,0%.060)
$ 9d,2A5,003
$ 9.115,"
GMificels MOpliya0on WOWO
-
(2]0,600)
&MUM
W'M
Wpnel base payable 11,523
-
(9,988)
],53]
],53]
Wnn'..0eW... 4,689,221
2.W.386
(2.W,182)
4.898.425
2,927.598
Municinal pension od19ation 23,17]
5,40$669
is 4W,924)
234.922
-
Premiums/tl¢couMs 4,47(,]88
432,8]8
(302.555)
4.608.112
255,911
Gotemmwnal eceuly
Buslreserype aceNry
I., -Wm, debt E 108.954]60
$ 18.370,934
$ (18.]11.84])
$ 1W,621.998
$ 12,Mj1
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
52
Balmcn
Balance
qg
B,innm9
End
Within
ofY.r
Increases
Dec,eaees
area
Ore Yen
B.M... Type Actvi8ee
Water and Seeer eemnue Bonds
$ 9,=.600
$ 4,660.060
$ (Sp ,B,)
S
8,01,060
$
1,2W,CW
Cornwsaled absences
510.084
387,W3
(321,487)
W6,1.4
5371015
Capital lease pWade
549,160
-
(113,507)
435.592
116,578
PremWme/dlacoums
160.45]
180,,5
(30.021)
255,911
Buslreserype aceNry
I.wte,m debt
$ 10,534.710
$ 5,21],9]0
$ (6.4M,075)
$
9.282.613
E
1.933.583
component Unit
Allen community Dewlomond coryon8en
Sales Tax Benno. S.M.
$ 33.660.060
3 -
s (1,060,600)
$
M'sx.oW
$
1.135.(0
Premiums/dlscoun.
(124,560)
(1,991)
(Im.w)
ACDC longterm deM
$ 33.605,411
$
$ (1.(1,(11
f
32.4]3.420
$
11138(0
Allen Edonemlc Development cnrpan8on
Be. Tax Beenun a..
$ 18,310,01M
$ -
S (845.(0)
$
17,4&5.(
$
87010(
P—Wroe/dn.ouns
0390
3,(5
(40.8W)
.EDC ion term deM
$ 18.26(.5
$
$ (841.935)
$
1],424,1(
$
8]0,(0
Componntunll ion,.— debt
S 51,8311$05
$
$ (1,933,926)
$
49,(],590
$
2.(,(0
52
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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, 2014, are as follows:
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest
of $27,692,782 are as follows:
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2015 $
9,115,000 $
3,907,027
$ 13,022,027
2016
8,875,000
3,504,293
12,379,293
2017
8,555,000
3,206,738
11,761,738
2018
8,880,000
2,896,513
11,776,513
2019
8,415,000
2,539,019
10,954,019
2020-2024
32,050,000
8,370,176
40,420,176
2025-2029
19,225,000
2,900,416
22,125,416
2030-2033
4,130,000
368,600
4,498,600
Total $
99,245,000 $
27,692,782
$ 126,937,782
Certificates of Oblinafion
Annual debt service requirements to maturity for the Certificates of Obligation, including
interest of $172,595 are as follows:
Governmental ActiNties
Fiscal Year Ending
September3U
Principal
Interest
Total
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
50,000
19,470
69,470
2020-2024
310,000
52,665
362,665
Total $
530,000
$ 172,595 $
702,595
53
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTES. LONG-TERM DEBT—CONTINUED
Water and Sewer Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $1,101,161 are as
follows:
Business -We Activities
Fiscal Year Ending
SeptBmber30
Principal
Interest
Total
2015 $
1,280,000 $
233,860 $
1,513,860
2016
975,000
198,576
1,173,576
2017
1,000,000
169,081
1,169,081
2018
1,040,000
141,675
1,181,675
2019
1,070,000
108,426
1,178,426
2020-2024
2,390,000
241,743
2,631,743
2025
260,000
7,800
267,800
Total $
8,015,000 $
1,101,161 $
9,116,161
AEDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$6,969,000 are as follows:
Fiscal Year Ending
September30
Principal
Interest
Total
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
11010,000
590,288
1,600,288
2020-2024
5,705,000
2,281,698
7,986,698
2025-2029
4,380,000
1,142,259
5,522,259
2030-2032
2,700,000
246600
2,946,600
Total $
17,465,000 $
6,969,000 $
24,434,000
54
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTES. LONG-TERM DEBT—CONTINUED
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$20,529,140 are as follows:
ACDC
Fiscal Year Ending
September 30 Principal Interest Total
2015 $ 1,135,000 $ 1,816,365 $ 2,951,365
2016 1,190,000 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 1,370,000 1,583,420 2,953,420
2020-2024 7,985,000 6,770,550 14,755,550
2025-2029 10,480,000 4,281,285 14,761,285
2030-2032 7,890,000 965,100 8,855,100
Total $ 32,600,000 $ 20,529,140 $ 53,129,140
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, $10,595,000 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 $889,702 available to service the general obligation debt at September 30, 2014.
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, 2014.
A schedule of authorized but unissued direct General Obligation Bonds as of September 30,
2014, is as follows:
Date of Ordinal Amount Issued in Issued Unissued
Semce Canter Facilities
5/12/2007
14,500,000
12,500,000
-
2,000,000
Municipal Building
5/12/2007
1,700,000
1,025,000
425,000
250,000
Shasta
5/12/2007
27,200,000
22,040,000
3,210,000
1,95,000
Parks
5/12/2007
17,250,000
8,700,000
5,100,000
3,450,000
Public Art Projects
5/12/2007
1,390,000
925,000
230,000
235,000
Public Safety
5/12/2007
15,855,000
11,975,000
1,90,000
1,980,000
$
97,395,000 $
59,990,000
$ 10,885,000 $
28,550,000
55
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE5. 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 $26,859 at September 30, 2014 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, 2014 of $1,384,812 are adequate to meet the reserve
requirements.
At September 30, 2014, restricted assets, which include Water and Sewer Revenue Bond
Debt Service and Reserve Funds, were as follows:
Revenue bond debt serNce $ 504,6U
Revenue bond reserve fund 880,178
$ 1,384.812
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
SerNce and reserve funds $ 1,384,812
Accrued interest, payable from restricted assets (77,953)
Current maturities of revenue bonds,
payable from restricted assets (1,280.000)
Reserved for revenue bond principal and interest $ 26.859
56
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTES. 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 fimes. Such coverage at September 30,
2014 was 4.50 times.
Capital Leases
The City acquired office equipment under various leases accounted for as capital leases. As
of September 30, 2014, 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, 2014 are as
follows:
Fiscal Year Ending
September 30,
Governmental AcbNbes
2015
$ 353,792
September 30,
251,248
Principal
Interest
2018
Total
2019
5,689
Total
$ 714,983
2015
$
7,537
$ 23
$
7,560
Total
$
7,537
$ 23
$
7,560
Fiscal Year Ending
Business -type Activities
September 30,
Principal
Interest
Total
2015
$
116,578
$ 14,480
$
131,058
2016
120,713
9,942
130,655
2017
120,852
5,353
126.205
2018
Tr,439
1,025
78,464
Total
$
435,582
$ 30,800
$
466,382
Operating Leases
The City leases machinery and equipment under noncancelable operating leases. Total costs
for such leases were $324,700 for the fiscal year ended September 30, 2014. 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
2015
$ 353,792
2016
251,248
2017
62,233
2018
42,021
2019
5,689
Total
$ 714,983
57
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 2014 were as
follows:
Fund
Transfers In
Transfers Out
Major Governmental Funds:
General Fund
$ 5,314,988
$ 4,191,984
General Capital Projects
3,402,959
-
General Obligation Bonds
-
198,441
Debt Service Fund
500,000
Total Major Governmental Funds
9,217,947
4,390,425
Nonmajor Governmental Funds:
Grants and Special Revenue
39,158
-
Hotel Occupancy Tax
93,857
Total Nonmajor Governmental
Funds
39,158
93,857
Major Enterprise Funds
Water and Sewer Fund
33,375
4,678,035
Solid Waste Fund
-
709,363
Drainage Utility Fund
-
481,701
Golf Course Fund
208,587
Total Major Enterprise Funds
241,962
5,869,099
Internal Service Funds:
Replacement Fund
400,000
-
Risk Management Fund
454,314
Total Internal Service Funds
854,314
Total Transfers
$ 10,353,381
$ 10,353,381
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 $9,257,105 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 $4,484,282
include cash financing of capital projects, support of programs recorded in nonmajor
governmental funds and internal service funds.
58
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 6. INTERFUND TRANSFERS — CONTINUED
Proprietary funds: Total enterprise funds transfers in of $241,962 mainly represent
amounts transferred into the Golf Course Fund to support operations. The total transfers
out of $5,869,099 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 $854,314 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 governing TMRS. Plan provisions for the City were as follows:
Contributions and Funding Policy
Under the state law governing TMRS, the contribution rate for each City is determined annually by
the actuary using the Entry Age Normal (EAN) cost method (EAN was first used in the December
31, 2013 valuation; previously the Projected Unit Credit actuarial cost method had been used). The
rate consists of the normal cost contribution rate and the prior service cost contribution rete, which
is calculated to be a level percent of payroll from year to year. The normal cost contribution rete for
an employee is the contribution rate which, if applied to a member's compensation throughout their
period of anticipated covered service with the municipality, would be sufficient to meet all benefits
payable on their behalf. The salary -weighted average of the individual rates is the total normal cost
rate. 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.
59
Plan Year 2013
Plan Year 2014
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
60/5.0/20
60/6,0/20
(expressed as agelyears of service)
Updated service credit
100% repeating,
100% repeating,
transfers
transfers
Annuity Increase (to Retirees)
70% repeating CPI
70% repeating CPI
Contributions and Funding Policy
Under the state law governing TMRS, the contribution rate for each City is determined annually by
the actuary using the Entry Age Normal (EAN) cost method (EAN was first used in the December
31, 2013 valuation; previously the Projected Unit Credit actuarial cost method had been used). The
rate consists of the normal cost contribution rate and the prior service cost contribution rete, which
is calculated to be a level percent of payroll from year to year. The normal cost contribution rete for
an employee is the contribution rate which, if applied to a member's compensation throughout their
period of anticipated covered service with the municipality, would be sufficient to meet all benefits
payable on their behalf. The salary -weighted average of the individual rates is the total normal cost
rate. 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.
59
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30. 2014
NOTE 7. RETIREMENT PLAN —CONTINUED
Contributions and Funding Policy —Continued
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and
the City make contributions monthly. Since the City needs to know its contribution rate in advance
for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the
basis for the rate and the calendar year when the rate goes into effect (i.e. the December 31, 2013
valuation will determine the contribution rate beginning January 1, 2015).
The City's retirement cost rate was 13.90% from October to December 2013 and 13.87% from
January to September 2014.
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 beginning in 2013, 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) $ 5,401,003
Interest on net pension obligation 16,532
Adjustment to the ARC (14,866)
Annual pension cost (APC) 5,402,669
Contributions made (5,403,924)
Decrease in net pension obligation (1,255)
Net pension obligation, beginning of the year 236,177
Net pension obligation, and of the year $ p3q,g22
Three -Year Trend Information:
Annual Actual Percentage Net
Fiscal Pension Contribution of APC Pension
Year Cost (APC) Made Contributed Obligation
2012 $ 5,001,225 $ 4,976,069 99% $ 270,853
2013 $ 5,248,905 $ 5,283,581 101% $ 236,177
2014 $ 5,402,669 $ 5,403,924 100% $ 234,922
60
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 7. RETIREMENT PLAN — CONTINUED
Contributions and Fundina Policy — Continued
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method --
Entry Age Normal
Amortization Method --
Level percent of payroll
Remaining Amortization Period --
30.0 years — closed period
Amortization period for new gains/losses--
30 years
Asset Valuation Method —
10 year smoothed market
Investment Rate of Return —
7.0%
Projected Salary increases —
Varies by age and service
Includes Inflation at --
3.0
Cost -of -Living Adjustments --
2.1%
Fundina Status and Fundina Proaress
In October 2013, the TMRS Board approved actuarial changes in (a) the funding method from
Projected Unit Credit to Entry Age Normal, (b) the past -retirement mortality assumptions used in
calculating liabilities and contribution rates and in the development of the Annuity Purchase Rate
factors, and (c) the amortization policy. These actuarial changes were effective with the
December 31, 2013 actuarial valuation. For a complete description of Bre new actuarial cost
method and assumptions, please see the December 31, 2013 TMRS Comprehensive Annual
Financial Report (CAFR).
As of December 31, 2013, the most recent actuarial valuation date, the plan was 79.8% funded.
The actuarial accrued liability for benefits was $137,679,525, and the actuarial value of assets was
$109,927,597, resulting in an unfunded actuarial accrued liability (UAAL) of $27,751,928. The
covered payroll (annual payroll of active employees covered by the plan) was $38,057,771, and the
ratio of the UAAL to the covered payroll was 72.9%.
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-term 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 Vend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of
benefits.
61
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 8. WATER AND SEWER CONTRACTS
In 1972, the City entered into a forty -year contract with the North Texas Municipal Water District
(District) for the purchase of water. Under the terms of this contract, the City is obligated to make a
minimum annual payment (adjusted annually) in return for a minimum volume of gallons of water per
year. During 1998, the City was annexed into the North Texas Municipal Water District, which
guaranteed the City a minimum volume of water. During the year ended September 30, 2014, the
cost of water purchased under this contract was $11,240,959.
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 fiscal year 2014, the cost for transportation,
treatment and disposal of sewage and other wastes was $5,654,466.
NOTE 9. DEFERRED COMPENSATION PLAN
As a result of legislative changes, all amounts of compensation deferred, all property and rights
purchased, and all income, property or rights are (until paid or made available to the employee or
other beneficiary) held in trust for the exclusive benefit of the participants and their beneficiaries,
whereas, prior to these legislative changes, these amounts were solely the property and rights of the
City subject only to the claims of the City's general creditors. As a result at September 30, 2014, 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.
62
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE10. RISK MANAGEMENT -CONTINUED
Health and Dental Insurance - Continued
These liabilities include an estimate for incurred but not reported claims. The estimated amount
at September 30, 2014 was $935,264. 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
enors/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 am 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.
The City has a workers' compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $282,222. During 2014, the City contributed $222,380 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 2014, the City contributed $590,845 for property and
general liability.
63
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
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
2014
812,410
7,054,662
6,931,808
935,264
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
enors/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 am 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.
The City has a workers' compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $282,222. During 2014, the City contributed $222,380 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 2014, the City contributed $590,845 for property and
general liability.
63
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE11. OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Program Description
In addition to the pension benefits described in Note 7, as required by state law the City makes
health care benefits available to all retired employees through a single -employer defined benefit
medical plan. Retirees must make a one-time irrevocable decision to continue benefits at the time
of retirement, after that their eligibility for this benefit ends. The 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 rete increases as COBRA participants. Retirees retiring 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
2013, retirees paid $181,830 in the form of premiums and incurred $442,024 in expenses. In
2014, retirees paid $181,216 in the form of premiums and incurred $313,559 in expenses.
Funding 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 progmm. The trust was established with Public Agency Retirement
Services Company (PARS). Prior to establishment of the trust, the ARC was conMbuted to the
Risk Management Fund where all medical costs are incurred. Net position of $4,335,659
available in the Risk Management Fund exceeds the $2,790,177 actuarial accrued liability,
therefore, OPER 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.
64
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB) —CONTINUED
Annual OPEB 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
(5,708)
Adjustment to the ARC
7,094
Annual OPEB cost
218,877
Contributions made
(220,000)
Increase in OPEB obligation (asset)
(1,123)
Net OPEB obligation (asset), beginning of the year
(114,161)
Net OPEB obligation (asset), end of the year
$ (115,284)
Three -Year Trend Information:
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 Rate
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, 441%
Ages 5055-2%, 56-605%, 60-64-15%,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
65
Annual
Actual
Percentage
Net
Fiscal
OPER
Contribution
of OPER
OPER
Year
Cost
Made
Contributed
Asset
2012
$
321,650
$ 325,000
101%
$ (6,753)
2013
$
217,592
$ 325,000
149%
$ (114,161)
2014
$
218,877
$ 220,000
101%
$ (115,284)
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 Rate
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, 441%
Ages 5055-2%, 56-605%, 60-64-15%,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
65
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30,2014
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB) —CONTINUED
Schedule of Funding Information
Actuarial valuation date 10/1/12
Actuarial value of assets $1,365,426
Actuarial Accrued Liability (AAL) $2,790,177
Funded Ratio 48.9%
Unfunded Actuarial Accrued Liability (UAAL) $2,112,085
Annual covered payroll $35,875,962
UAAL as % of covered payroll 4%
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 multiple -employer defined benefit group -tens 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 benefP 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 2014, 2013, and
2012 were $50,597, $49,157, and $51,028, respectively, which equals the required
contributions (ARC) each year.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2014
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 detemlinable, lt 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. CUMULATIVE CHANGE IN ACCOUNTING PRINCIPLE
The City implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities,
during the fiscal year ended September 30, 2014. In accordance with GASB Statement No. 65, debt
issuance costs should be recognized as expenses in the period incurred. Previously, debt issuance
costs were recorded as assets and amortized over the life of the debt. The implementation of GASB
Statement No. 65 resulted in a restatement of beginning net position as follows:
67
coemmennt
Business4ym
water and
Gxnpment
AolMbes
A ndies
Sewer
Unify
Netp ntim, bWinnng of year
$ 473,998,388
$ 135,053,935
$ 129,014,488
$ (28,915,346)
cumulative charge in accounting principle
(1,259,8581
(98.13]1
(98,737)
(809.5'/1)
Net posltion, beginning M year, as restated
$ 412.105.532
$ 134955.198
$ 126.915.131
$ (29.n4.9231
67
CITY OF AL L EN
RESPECT INTEGRITY DELIVER EXCEL
PEOPLE FIRSt
REQUIRED SUPPLEMENTARY
INFORMATION
CITYOFALLEN
AV
PEOPIEFIRst
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, 2014
`Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
C3�7
Required Supplementary Information
Schedule of Texas Municipal Retirement System
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
Unfunded
Actuarial
Actuadal
UAAL as a
Valuation
Actuarial Yalue of
Actuarial accrued Pementage Accmed Liability
Annual covered percentage of
Date
assets
liability funded (UAAL)
payroll colered rayrdl
12/31/11
$ 8,384,487
$ 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 54.2%
12/31/13
109,927,597
137,679,525 79.8% 27,751,928
38,057,771
Required Supplementary Information
Schedule of Other Postemployment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
uAAL as a
Aciueriel
%of
Valuation
Fiscal Year
Valueof Assets AAL' UAAL" Funded Ratio Co�eiatl Payrol
Cala
aYmll
Paymid
10/1/2009
2012
$ 678,092 $ 2,736,262 $ 2,058,170
248% $ 33,188,362 6.2%
10/1/2012
2013
1,065,372 2,790,177 1)24,805
38.2% 34,304723 5.0%
10/1/21112
2014
1,365,426 2,790,177 1,424,751
46.9% 35,875,962 4.0%
`Actuarial Accrued Liability
"Unfunded Actuarial Accrued Liability
C3�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, 2014
5,221,488
EXHIBIT A-2
5,314,988
-
Current
(472820)
VARIANCE WITH
(4,191,984)
BUDGETED
AMOUNTS
23,542,346
FINAL BUDGET -
20,479,705
2,426,125
Public safety
29,125,055
POSITIVE
29,025,421
ORIGINAL
FINAL
ACTUAL
(NEGATIVE)
REVENUES
(242,010)
Culture and recreation
21,948,672
21,327,416
Ad valorem taxes, Penalties and interest
$ 34,112,693
$ 33,980,692
$ 33,936,634
$ (44,058)
Municipal sales tax
16,822,299
17,369,309
17,592,860
223,551
Franchise taxes
6,831,834
6,946,244
6,973,705
27,461
Licenses, permits and fees
1,484,800
2,073,800
2,863,226
789,426
Charge for seMces
11,381,618
10,847,256
10,300,677
(546,579)
Fines
1,859,625
11932,066
2,160,168
228,102
Gies and Contributions
866,092
770,950
815,408
4,458
Imestmem earnings
163,750
139,900
15,788
14,888
Miscellaneous
1,712,686
1,826 516
2,035,399
208,883
Total revenues
75,235,397
75,886,733
76,832,865
946,132
EXPENDITURES
5,221,488
5,314,988
5,314,988
-
Current
(472820)
(563,640)
(4,191,984)
(3,628,344)
General goutmment
23,542,346
22,905,830
20,479,705
2,426,125
Public safety
29,125,055
29,390,898
29,025,421
365,4T7
PUNIC x s
3,001,793
3,247,318
3,489,328
(242,010)
Culture and recreation
21,948,672
21,327,416
20,328,175
1,001,241
Community development
2,221,540
2,117,671
2,031 281
86,390
Total expenditures
79,839,406
76.989,133
75,351,910
3,637.223
Exceed (deficiency) of revenues
mer (uncles) expenditures
(4,604,009)
(3,102,407)
1,480955
4,583355
OTHER FINANCING SOURCES (USES)
Transfers in
5,221,488
5,314,988
5,314,988
-
Translem out
(472820)
(563,640)
(4,191,984)
(3,628,344)
Sale of capital assets
8,000
11,500
15,829
4,329
Total other financing soumes(uses)
4,756,668
4,762,848
1,138,833
(3,624,015)
NET CHANGE IN FUND BALANCE
152,659
1,660,448
2,619,788
959,340
FUND BALANCES, BEGINNING OF YEAR
16,532 652
16,532,652
16,532,652
FUND BALANCES, END OF YEAR $
16.685,311
$ 18,193,100
$ 19,152,440 $
959,340
M
CITY OF ALLEN, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2014
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 includes
proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. Annual budgets are legally adopted for the General Fund and Debt Service Fund on a basis
consistent with accounting principles generally accepted in the United States of America.
Formal budgetary integration is not employed for proprietary funds. However, the City does
adopt an annual budget for those funds for managerial control.
5. The City Manager is authorized to adjust budgeted amounts; however, such revisions may
not result in total expenditures (appropriations) in excess of budgeted expenditures without
approval of the City Council. Therefore, the legal level of budgetary control is 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.
70
CITY OAN
F
r
�EFIRsr RESPECT INTEGRITY DELIVER EXCEL
PEEP
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
CITY OFALLEN
IVr
RESPECT INTEGRITY DELIVER EXCEL
PEOPLE FIRST
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.
71
CITY OF ALLEN, TEXAS EXHIBIT B-1
COMPARATIVE BALANCE SHEETS
GENERALFUND
SEPTEMBER 30.2014 AND 2013
LIABILITIES
Accounts payable
2014
2013
ASSETS
1,532,630
1,337,903
Cash and cash equivalents $
7,237,090 $
7,637,298
Investments
11,495,067
8,328,505
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
101,053
31,378
of $268,708 in 2014 and $139,467 in 2013)
101,053
31,378
Sales taxes
2,872,313
2,724,625
Other, net
2,021,206
2,357,432
Accrued interest
72,267
44,199
Prepaid items
4,767
2,098
Restricted
TOTAL ASSETS $
23,803,763 $
21,125,535
LIABILITIES, DEFERRED INFLOWS OF
25,739
Juvenile case manager
RESOURCES AND FUND BALANCE
27,804
PEG fees
LIABILITIES
Accounts payable
$ 3,017,140
$ 3,202,139
Accrued liabilities
1,532,630
1,337,903
Unearned revenue
500
21,463
TOTAL LIABILITIES
4,550,270
4,561,505
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue- property taxes
101,053
31,378
TOTAL DEFERRED
INFLOWS OF RESOURCES
101,053
31,378
FUND BALANCES
Nonspendable
Prepaid items
4,767
2,098
Restricted
Court technology
25,614
25,739
Juvenile case manager
-
27,804
PEG fees
632,143
468,910
Photo red light enforcement
38,340
40,554
Child safety fees
_
108,105
Cemetery trust
56,141
55,841
Assigned
Facilities maintenance
600,000
490,727
Other
148,200
360,837
Unassigned
17,647,235
14,952,037
TOTAL FUND BALANCES
19,152,440
16,532,652
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
$ 23,803,763
$ 21,125,535
72
CITY OF ALLEN, TEXAS EXHIBIT B-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
REVENUES
Ad valorem taxes, penalties and interest
Franchise taxes
Municipal sales tax
Licenses, permits and fees
Charges for services
Fines
Gifts and contributions
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Debt seNce:
2014 2013
$ 33,936,634
$ 32,432,416
6,973,705
6,302,018
17,592,860
15,900,029
2,863,226
1,939,426
10,300,677
10,287,097
2,180,168
1,402,725
815,408
829,376
11,826
11,826
154,788
90,093
2,023,573
1,866,723
76,832,865 71,061,729
20,469,625
19,745,780
29,025,421
27,979,103
3,489,328
3,304,507
20,326,175
19,965,694
2,031,281
1,962,615
Principal retirement
9,986
9,914
Interest and fiscal charges
94
166
Total expenditures
75,351,910
72,967,779
Excess (deficiency) of revenues over(under) expenditures
1,480,955
(1,906,050)
OTHER FINANCING SOURCES (USES)
Transfers in
5,314,988
5,357,270
Transfers out
(4,191,984)
(3,720,968)
Sale of capital assets
15,829
16,350
Total other financing sources (uses)
1,138,833
1,652,652
NET CHANGE IN FUND BALANCES
2,619,788
(253,398)
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
73
16,532,652 16,786,050
$ 19,152,440 $ 16,532,652
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2014 AND 2013
EXHIBIT B-3
2014
2013
ASSETS
Cash and cash equivalents
$
668,533
$
899,350
Investments
200,427
_
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $121,529 in 2014 and $75,977 in 2013)
32,096
11,428
Accrued interest receivable
20,742
2,498
Total assets
$
921,798
$
913,276
DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes
$
32,096
$
11,428
Total defeffed inflows of resources
32,096
11,428
FUND BALANCE
Restricted for debt service
889,702
901,848
TOTAL DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCE
$
921,798
$
913,276
74
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
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)
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
75
EXHIBIT B-4
2014 2013
$ 11,678,213 $ 11,748,992
46,941 25,809
11,725,154 11,774,801
8,355,000
7,955,000
3,882,300
3,955,473
500,000
500,000
12,237,300
11,910,473
(12,146)
364,328
(512,146)
(135,672)
500,000
500,000
500,000
500,000
(12,146)
364,328
901,848
537,520
$ 889,702 $
901,848
CITY OF ALLEN, TEXAS
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30. 2014
EXHIBIT B-5
76
VARIANCE
WITH FINAL
BUDGETED AMOUNTS
BUDGET
POSITIVE
ORIGINAL
FINAL
ACTUAL
(NEGATIVE)
REVENUES
Ad valorem taxes
$ 11,750,413
$ 11,701,723
$ 11,678,213
$ (23,510)
Investment earnings
45,000
43,700
46,941
3,241
Total revenues
11,795,413
11,745,423
11,725,154
(20,269)
EXPENDITURES
Principal retirement
8,355,000
8,355,000
8,355,000
-
Interest and fiscal charges
3,883,464
3,884,914
3,882,300
2,614
Total expenditures
12,238,464
12,239,914
12,237,300
2,614
OTHER FINANCING SOURCES
Transfers in
500,000
500,000
600,000
Total Wherfinancing sources
500,000
500,000
500,000
-
NET CHANGE IN FUND BALANCES
56,949
5,509
(12,146)
(17,655)
FUND BALANCE, BEGINNING OF YEAR
901,848
901,848
901,848
FUND BALANCE, END OF YEAR
$ 958,797
$ 907,357
$ 889,702
$ (17,655)
76
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL CAPITAL PROJECTS FUND
SEPTEMBER 30, 2014 AND 2013
ASSETS
Cash and cash equivalents
Inwstments
Accrued interest receivable
Special assessments receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Accrued liabilities
Total liabilities
FUND BALANCES
Restricted for capital projects
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
77
EXHIBIT B-6
2014 2013
$ 7,973,437 $ 8,590,911
12,207,442 10,883,465
45,684 57,758
187,557 187,557
$ 20,414,120 $ 19,719,691
$ 1,234,030 $ 71,925
235,885 36,590
571,237 521,396
2,041,152 629,911
18,372,968 19,089,780
18,372,968 19,089,780
$ 20,414,120 $ 19,719,691
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, 2014 AND 2013
2014
2013
REVENUES
Charges for samces $
279,876 $
322,321
Intergovernmental
1,048,596
4,440,385
Investment earnings
82,725
30,339
Gifts and contnbutions
4,000
277,852
Miscellaneous
1,354,431
617,336
Total revenues
2,769,628
5,688,233
EXPENDITURES
General govemment
2,100,516
1,092,911
Capital outlay
4,788,883
3,717,755
Total expenditures
6,889,399
4,810,666
Excess (deficiency) of revenues over (under) expenditures
(4,119,771)
877,567
OTHER FINANCING SOURCES (USES)
Transient in
3,402,959
3,453,992
Transfers out
(322,232)
Total other financing sources (uses)
3,402,959
3,131,760
NET CHANGE IN FUND BALANCES
(716,812)
4,009,327
FUND BALANCES, BEGINNING OF YEAR
19,089,780
15,080,453
FUND BALANCES, END OF YEAR $
18,372,968 $
19,089,780
78
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL OBLIGATION BOND FUND
SEPTEMBER 30, 2014 AND 2013
ASSETS
Cash and cash equivalents
Imestmems
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
79
EXHIBIT B$
2014 2013
$ 6,917,487 $ 3,242,695
9,564,392 4,742,963
26,485 25,171
$ 16,508,364 $ 8,010,829
$ 73,246 $ 205,248
66,720 39,568
139,966 244,816
16,368,398 7,766,013
16,368,398 7,766,013
$ 16,508,364 $ $010.829
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL OBLIGATION BOND FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
REVENUES
Investment eamings
Miscellaneous
Total revenues
EXPENDITURES
General govemment
Culture and recreation
Public safety
Public works
Capital outlay
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Tmnsfers 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
JJ
EXHIBIT B-9
2014 2013
$ 33,020 $ (10,964)
651
33,671 (10,984)
168,626
111,357
13,667
-
-
137,455
588,633
750,993
1,489,798
1,965,685
2,260,724
2,965,490
(2,227,053) (2,976,474)
240,416
(198,441)
(262,610)
432,879
350,071
10,595,000
5,065,000
10,829,438
5,392,877
8,602,385
2,416,403
7,766,013
5,349,610
$ 16,368,398 $
7,766,013
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.
81
CITY OF ALLEN, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30,2014
EXHIBIT C-1
RCsMcte5
SPECIAL REVENUE
Teunsm
3,227,470
GRANTS
-
-
TOTAL
3227,470
NOTEL
-
AND
-
TA%
NONWAJOR
41,715
OCWPANCy
ASSET
SPECIAL
PARK
INCREM9T
GOVERNMENTAL
400.492
I"
FORFEITURE
REVENUE
DEDICATION
FINANCING
FUNDS
ASSETS
Tax Increment firencin929re Crs
1,488437
CSlh aW cash Nui1aleats
$ 1,263,872
$ 1002W
$ 285504
$ 06,274
$ 544,978
$ 2,733,917
ImestmeMs
1,94$327
591334
188,874
820,047
857,794
3.854,378
ACCWM. receivable
108,167
-
93259
-
82,449
233,875
ACcmeal Interest
8,826
IV
653
3,610
3,216
14,702
TOTAL ASSETS
$ 3.327 ,M
$ 159.820
$ 551,490
$ 1,359,931
$ 1,488.437
$ 6,688,870
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
$ 93.239
$ 737
$ 108,408
$ -
$ -
$ 202,384
Accra liabilities
6,83
38.371
388
-
-
45,242
Uneam reren.
78,997
42202
121.1W
TOTAL LIABILITIES
W,M
118,105
150.998
368825
FUND BALANCE$
RCsMcte5
Teunsm
3,227,470
-
-
-
-
3227,470
A ... t(aftlture
-
41,715
-
-
-
41,715
State and fetleml pant.
-
-
408492
-
-
400.492
Psk ac9ui.9ion ant detelapment
-
-
-
1.358931
-
1.359,931
Tax Increment firencin929re Crs
1,488437
1,488,37
TOTAL FUND BALANCES
3,29,470
41,715
400.492
1,358931
1,88437
8,518,45
TOTAL LIABILITIES AND FUND BAIANCEI$
3,39,192 $
158820 $
551.0.90
$ 1,359,931
$1,488,37 $
81888870
82
CITY OF ALLEN EXHIBIT C-2
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
83
SPECIAL REIMMUE
GRAMS
TOTAL
HOTEL
AND
TAX
NO"MOR
OCCIRANCY
ASSET
SPECIAL
PARK
INCREMEM
GOVERNMEN]AL
TAX
FORFEITURE
REVENUE
OEDIWTION
FINANCING
FUNDS
REVENUES
M valorem taxes, penalbas and Interest
$ -
$ -
$ -
$ -
$ 52],3]5
$ 52],3]5
Municipal sales tax
-
-
-
-
411,"8
411,"6
U.... penis. and face
-
-
52.3(1]
-
52,307
hotel/motel ones
1,499,512
-
-
-
-
1,499,54
IMergonemmeotal
-
-
517,211
-
128,]]1
613,982
Imeatment earnings
11,616
383
1,7M
7.211
5,928
28,912
Miscellaneous
7.694
7.848
18542
Total revenues
1.511.158
Ban
528,803
Sl
1,071,850
81]],406
EXPENDITURES
General 9ovamment
-
-
-
-
Si
805,288
Public safely
-
80,02]
imim
-
-
189,131
Culture and recreaean
997.861
-
45,088
52,8"
-
1,095.739
Community development
-
-
m'm
-
-
600,008
Capital outlay
39]84
250.537
294,321
Total expentlitures
997861
119,8"
754.118
3D7409
6(15.266
2.984,487
Excess (deficiency) of onenues
ovar(under) expeMllums
513297
(111130
(227,315)
(24],891)
266.562
192,919
OTHER FINANCING S WRCES (USES)
Trensfare in
-
-
39,158
-
-
39,158
Trenskre out
(93,857)
-
-
-
-
(93,857)
Sale of captal assets
5.429
5,429
Total other financing sources(uses)
(93,85])
SAN
39.158
(49270)
NET CHANGE IN FUND BALANCES
419,440
(108305)
(188,157)
(247,891)
266,582
143,649
FUND BALANCES, BEGINNING OF YEAR
2,808,030
148020
566819
1,607,822
1,221.675
6.374.396
FUND BALANCES. END OF YEAR
$ 322],470
$ 41,715
$ 40(1,492
E 1.359.9314
1.488,43]
$ 8.518,045
83
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.
84
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET POSITION
WATER AND SEWER ENTERPRISE FUND
SEPTEMBER 30, 2014 AND 2013
msE s
CURRENTASSETS
Cash and cash epuialams
imea,men,e
RaOelables, Mo,allavmwaronncpuacrhiea
Accounts
Accme4lntemt
memories
Ruchat. cash aM cash achoolents
Total coma, aanb
NONCURRENT iUM ETIS
CAPITAL ASSETS
Limp
To, tanks, aM pump station
Vehicles
Mach nery ana epuipment
wmtue and $awes
Construction in pa9ms
Total Ni aaxb
Less accummatee eepaciation
Capital assets. rel W acamulatea aegenatum
Total aonctrrant assets
TOTALASSETS
DEFERRED OUTFLOWS OF RESOURCES
Deas. I... on reNMiiq
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts l®yaae
AcciueC LabNOea
Raisins, payable
payaei9 mom mamcme aaa.
Ibna nue minds payable -current
Accnsd imenat pnyama
Accn mi compensalee absence -cumml
Cuenmx aapwna wyable
Tom comm liabilities
NONCUNRENT LIABILITIES
Renaud 00ma payable
Accrues compensated abserces
Toyl normmrt nabnlHea
TOTFL LIF&LITIES
NET POSITION
NM imealmant in cegm a.-.
Reamilae
Restacte] for mama Land panmml aiI intaml
unselhcbe
TOTAL NET POSITION
Mw
EXHIBIT D-1
MAI 2w3
S 11,U10071 $
11,]911,786
14.278625
13.969.965
4,567,318
5,%2.27
59.581
74,245
%,726
47,311
1,36x812
I'e,Si50
32.167.087
33.191304
4.072.62
1.672562
,7z,Y1aa0B
178815,635
96x128
841,143
4.644,615
4,W2.a9
-
1,,1,4
4.95888
1,167,567
186.591,7K
181513.403
(n,707, 2)
93,0780151
lw'ss,I'm
108435358
,0888x225
l0S4S5.5e
14101,312
141,626. W 2
321,461
198675
321,81
194565
1,981153
1,274,780
114,575
103.314
172,973
46.2"
1.w'"
1.205.WO
n."
ze.wo
35%324
312,"1
1.614,467
1573.181
5,672,61
4.642.139
6,980.910
S.n0,56
12,693
10,994
7.0XI,5w
8.al450
12,808,001
12,923,589
1W,613,315
99,159.487
28867
384,510
28126,598
2%378W1
$ 128,766,7n $
128991.M
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, 2014 AND 2013
OPERATING EXPENSES
Personnel services
2014
2013
OPERATING REVENUES
18,611,905
18,144,752
Water sales
$ 15,475,216
$ 17,805,137
Sewer charges
12,749,253
12,215,785
Connection tees
178,003
179,852
Service charges
552,810
607,310
Intergovernmental
11,800
_
Gifts and contributions
1,000,000
1,000,000
Miscellaneous
800,515
322,615
Total operating revenues
30,767,597
32,130,699
OPERATING EXPENSES
Personnel services
4,383,437
4,213,531
Contractual and other services
18,611,905
18,144,752
Maintenance
351,292
299,122
Supplies
242,449
258,593
Depreciation
5,869,169
5,816,795
Other
165,765
145,920
Total operating expenses
29,624,017
28,878,713
OPERATING INCOME
1,143,580
3,251,986
NON-OPERATING REVENUES (EXPENSES)
Interest income
120,402
68,829
Interest expense
(442,441)
(446,474)
Total non-operating expenses
(322,039)
(377,645)
INCOME BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
821,541
2,874,341
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees
1,271,549
1,320,089
Capital contributions
2,402,611
2,468,211
Transfers in
33,375
33,692
Transfers out
(4,678,035)
(4,686,025)
Total capital contributions and transfers
(970,500)
(864,033)
CHANGE IN NET POSITION
(148,959)
2,010,308
NET POSITION, BEGINNING OF YEAR, AS RESTATED
128,915,731
126,891,330
NET POSITION, END OF YEAR
$ 128,766,772
$ 128,901,638
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
WATER AND SEWER ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
EXHIBIT D-3
2014
2013
CASH FLOM FROM OPERATING ACTIVITIES
Cash received from customers
$ 31,392,906
$ 33,442,575
Cash paid to employees for services
(4,335,248)
(4,189,698)
Cash paid for goods and services
(18,431,520)
(17,673,920)
Net cash provided by operating activities
8,626,138
11,578,957
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in
33,375
33,692
Transfers out
(4,678,035)
(4,686,025)
Net cash used in non<apRal financing activities
(4,644,660)
(4,652,333)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal Paid on revenue bond maturities
(1,205,000)
(1,165,000)
Proceeds from debt issuance
4,650,000
Payment to refunded bond escrow agent
(4,800,000)
-
Interest and fees paid on long-term debt
(491,328)
(460,650)
Acquisition and construction of capital assets
(3,915,426)
(1,827,262)
Contributions from developers
1,271,549
1,320,089
Net cash used in capital and related financing activities
(4,490,205)
(2,132,823)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
(346,490)
(261,213)
Interest on investments
192,964
165,118
Net cash used in investing activities
(153,526)
(98095)
NET INCREASE IN CASH AND CASH EQUIVALENTS
(662,253)
4,697,706
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
13,487,136
8,789,430
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 12,824,883
$ 13,487,136
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 1,143,580
$ 3251,986
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation and amortization expense
5,910,821
5,853,297
Change in assets and liabilities:
Accounts receivable
625,309
1,311,876
Inventories
10,583
961
Accounts payable
708,373
1,115,250
Accrued! liabilities
11,261
16,001
Retainage payable
126,720
(42,293)
Compensated absences
48,189
23,833
Utility deposits
41,302
48,046
Total adjustments
7,482,568
8,328971
Net cash provided by operating activities
$ 8,626,138
$ 11,578,957
NON-CASH INVESTING ACT W IES
Change in the fair value of investments
$ (57.650)
$ (57,850)
NON-CASH FINANCING ACTIVITIES
Contributions of capital assets from developers
$ 2,402,611
$ 2,468,211
RECONCILIATION OF CASH
Cash and cash equivalents- current
$ 11,440,071
$ 11,798786
Restricted cash and cash equivalents
1,384,812
1,696,350
$ 12,824,883
$ 13,487,136
87
CITY OF ALLEN, TEXAS EXHIBIT D-4
COMPARATIVE STATEMENTS OF NET POSITION
SOLID WASTE ENTERPRISE FUND
SEPTEMBER 30, 2014 AND 2013
NONCURRENT ASSETS
CAPITAL ASSETS
Vehicles
2014
2013
ASSETS
8,392
8,392
CURRENT ASSETS
21,315
21,315
Cash and cash equivalents
$ 1,356,199
$ 1,417,775
Imestmerrts
1,661,810
1,461,035
Receivables, net of allowance for uncollectibles:
270
Accounts
284,409
312,093
Other
427,085
258,266
Accrued interest
6,301
7,754
Total current assets
3,735,804
3,456,923
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
(21,315)
(21,045)
Capital assets, net of accumulated depreciation
270
Total noncurrent assets
270
TOTAL ASSETS
3,735,804
3,457,193
LIABILITIES AND NEr POSITION
CURRENT LIABILITIES
Accounts Payable
33,763
31,730
Accrued compensated absences -current
57,414
52,660
Accrued liabilities
26,176
25,993
Total current liabilities
117,353
110,383
NONCURRENT LIABILITIES
Accrued compensated absences
3,238
2,970
Total noncurrent liabilities
3,238
2,970
TOTAL LIABILITIES
120,591
113,353
NET POSITION
Net investment in capital assets
-
270
Unrestricted
3,615,213
3,343,570
TOTAL NET POSITION
$ 3,615,213
$ 3,343,840
88
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, 2014 AND 2013
OPERATING REVENUES
Garbage collections
Other
Total operating revenues
OPERATING EXPENSES
Personnel serNces
Contractual and other serdces
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES
Interest income
INCOME BEFORE TRANSFERS
TRANSFERS
Transfers out
Total transfera
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
89
PM1.11.3111-Z1
2014 2013
$ 6,309,729
$ 6,114,951
42,380
47,983
$
3,615,213
6,352,109
6,162,934
480,593
444,411
4,792,608
4,942,657
1,903
2,353
15,542
11,697
270
540
92,299
93,996
5,383,215 5,495,654
968,894 667,280
11,842 4,221
980,736 671,501
(709,363) (704,528)
(709,363) (704,528)
271,373 (33,027)
3,343,840
3,376,867
$
3,615,213
$
3,343,840
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
EXHIBIT D-6
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receiked from customers
$6,212,427
$ 6,066,103
Cash paid to employees Tor services
(475,571)
(438,182)
Cash paid for goods and services
(4,900,136)
(5,239 315)
Net cash provided by operating activities
836,720
388,606
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out
(709,363)
(704,528)
Net cash used in non capital financing activities
(709,363)
(704,528)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of imestments
(200,775)
665,014
Interest on investments
11,842
4,221
Net cash provided by (used in) Investing activities
(188,933)
669,235
NET INCREASE IN CASH AND CASH EQUIVALENTS
(61,576)
353,313
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1,417,775
1,064,462
CASH AND CASH EQUIVALENTS, END OF YEAR
$1,356,199
$ 1,417,775
RECONCILIATION OF OPERATING INCOME TO
NET CASH USED BY OPERATING ACTIVITIES
Net Operating income
$ 968,894
$ 667,280
Adjustments to reconcile net operating income
to net cash provided by operating actidties:
Depreciation
270
5540
Change in assets and liabilities:
Accounts receivable
(141,135)
(105,016)
Other receivables
1,453
8,185
Accounts payable
2,033
(187,086)
Accrued liabilities
183
(1,526)
Accrued compensated absences
5,022
6,229
Total adjustments
(132,174)
(278,674)
Net cash provided by operating activities
$ 836,720
$ 388,606
90
CITY OF ALLEN, TEXAS EXHIBIT D-7
COMPARATIVE STATEMENTS OF NET POSITION
DRAINAGE ENTERPRISE FUND
SEPTEMBER 30, 2014 AND 2013
2014 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 376,773
$ 461,691
Investments
457,523
407,121
Receivables:
Accounts
65,114
70,722
Accrued interest
1,575
2,161
Tota l current assets
900,985
941,695
NONCURRENT ASSETS
CAPITAL ASSETS
Other improvements
496,132
496,132
Vehicles
31,378
31,378
Machinery and equipment
430,347
430,683
Total capital assets
957,857
958,193
Less: accumulated depreciation
(579,729)
(572,464)
Capital assets, net of accumulated depreciation
378,128
385,729
Total noncurrent assets
378,128
385,729
TOTAL ASSETS
1,279,113
1,327,424
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
32,585
39,808
Accrued compensated absences
38,924
33,963
Accrued liabilities
11,687
8,704
Total current liabilities
83,196
82,475
NONCURRENT LIABILITIES
Accrued compensated absences
2,882
2,514
Total noncurrent liabilities
2,882
2,514
TOTAL LIABILITIES
86,078
84,989
NET POSITION
Net investment in capital assets
378,128
385,729
Unrestricted
814,907
856,706
TOTAL NET POSITION
$ 1,193,035
$ 1,242,435
91
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, 2014 AND 2013
OPERATING REVENUES
Drainage fees
Service charges
Other
Total operating revenues
OPERATING EXPENSES
Personnel seMces
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
92
2014 2013
$ 1,325,448 $
1,299,562
53,214
53,109
2,868
2,520
1,381,530
1,355,191
481,402
434,276
172,355
167,465
219,477
212,142
51,042
53,502
24,165
37,057
3,532
5,737
951,973
910,179
429,557
445,012
2,744
(1,553)
432,301
443,459
(481,701)
(638,784)
(481,701)
(638,784)
(49,400)
(195,325)
1,242,435
1,437,760
$ 1,193,035 $
1,242,435
CITY OF ALLEN, TEXAS
EXHIBIT D-9
COMPARATIVE STATEMENTS OF CASH FLOWS
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 1,387,138
$ 1,374,080
Cash paid to employees for seNces
(476,073)
(427,106)
Cash paid for goods and semces
(450,646)
(427,274)
Net cash provided by operating activities
460,419
519,700
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out
(481,701)
(638,784)
Net cash used in non -capital financing activities
(481,701)
(638,784)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
(16,564)
Net cash used in capital and related financing activities
(16,564)
-
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
-
203,385
Purchase of investment securities
(50,402)
-
Interest on im,estments
3,330
1,581
Not cash provided by (used in) investing activities
(47,072)
204,966
NET INCREASE IN CASH AND CASH EQUIVALENTS
(84,918)
85,882
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
461,691
375,809
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 376,773
$ 461,691
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 429,557
$ 445,012
Adjustments to reconcile net operating income
to net cash presided by operating acti sties:
Depreciation
24,165
37,057
Change in assets and liabilities:
Accounts receiwble
5,608
18,889
Accounts payable
(7,223)
10,976
Accrued liabilities
2,983
596
Compensated absences
5,329
7,170
Total adjustments
30,862
74,688
Net cash provided by operating activities
$ 460,419
$ 519,700
FB7
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET POSITION
GOLF COURSE ENTERPRISE FUND
SEPTEMBER 30, 2014 AND 2013
EXHIBIT D-10
2014
2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 542,315
$ 591,607
Receivables:
Accounts
-
2,822
Prepaid items
5,050
11,050
Total current assets
547,365
605,479
NONCURRENT ASSETS
CAPITAL ASSETS
Furniture and fixtures
-
10,894
Machinery and equipment
937,453
937,453
Lass: accumulated depreciation
(501,870)
(399,177)
Capital assets, net of accumulated depreciation
435,583
549,170
Total noncurrent assets
435,583
549,170
TOTAL ASSETS
982,948
1,151,649
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable
174,647
149,364
Accrued liabilities
31,913
39,103
Accrued compensated absences
81,353
75,358
Capital leases payable -current
116,578
113,587
Customer deposits payable
27,980
23,130
Total current liabilities
432,471
400,512
NONCURRENT LIABILITIES
Capital leases payable
319,005
435,583
Accrued compensated absences
20,355
18,854
Total noncurrent liabilities
339,360
454,437
TOTAL LIABILITIES
771,831
854,979
NET POSITION
Unrestricted
211,117
299,670
TOTAL NET POSITION
$ 211,117
$ 299,670
94
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, 2014 AND 2013
OPERATING REVENUES
SeMce charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel seMces
Contractual and other seMces
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
95
2014 2013
$ 2,537,564 $
1,924,706
4,394
12,724
2,541,958
1,937,430
1,302,901
1,328,541
1,035,399
687,061
52,719
68,145
263,148
266,874
113,587
68,212
71,344
64,634
2,839,098
2,483,467
(297,140)
(546,037)
(1,115)
(297,140)
(547,152)
208,587
633,815
208,587
633,815
(88,553)
86,663
299,670
213,007
$ 211,117 $
299,670
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF CASH FLOWS
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
EXHIBIT D-12
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Cash recei ed from customers
$ 2,544,780
$ 1,934,858
Cash paid to employees for services
(1,295,405)
(1,318,196)
Cash paid for goods and services
(1,393,667)
(969,029)
Net cash used in operating activities
(144,292)
(352,367)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
208,587
633,815
Net cash provided by non -capital financing activities
208,587
633,815
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Capital lease payment
(113,587)
(68212)
Net cash used In capital and related financing activities
(113,587)
(68,212)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
_
127
Interest on investments
300
Net cash provided by Investing activities
427
NET INCREASE IN CASH AND CASH EQUIVALENTS
(49,292)
213,663
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
591,607
377,944
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 542,315
$ 591,607
RECONCILIATION OF OPERATING LOSS TO NET CASH
USED IN OPERATING ACTIVITIES
Net operating loss
$ (297,140)
$ (546,037)
Adjustments to reconcile net operating loss
to net cash used in operating activities:
Depreciation
113,587
68,212
Change in assets and liabilities:
Accounts receivable
2,822
(2,572)
Prepaid items
6,000
Accounts payable
25,283
93,652
Accrued liabilities
(7,190)
12,087
Customer deposits
4,850
11,946
Compensated absences
7,496
10,345
Total adjustments
152,848
193,670
Net cash used in operating activities
_L_U44,292
$ (352,367)
96
INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for financing of services provided by one department to
other departments of the City on a cost -reimbursement basis.
Replacement Fund - accounts for the costs associated with the acquisition of vehicles, machinery,
and equipment through the rental of such items to other departments.
Risk Management Fund — accounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their
covered dependents.
97
CITY OF ALLEN, TEXAS
3,730,730
-
EXHIBIT E-1
COMBINING STATEMENT OF NET POSITION
Vehicles
10,811,534
-
INTERNAL SERVICE FUNDS
10,543,978
Construction in progress
291,903
SEPTEMBER 30,2014
291,903
1,510,164
Accumulated depreciation
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2013)
(8,121,369)
(7,044,275)
Capital assets,
RISK
TOTALS
REPLACEMENT MANAGEMENT
net ofaccumulated depreciation
FUND
FUND
2014
2013
ASSETS
17,691,212
5,592,976
23,284,188
CURRENT ASSETS
LIABILITIES AND NET POSITION
Cash and cash equivalents $ 4,848,840 $
2,306,179
$ 7,155,019
$ 6,694,770
Investments 6,103,549
3,008,024
9,111,573
8,208,193
Accrued interest receivable 26,025
12,143
38,168
43,561
Prepaid items
266,630
266,630
173,080
Total current assets 10,978414
5,592,976
16,571,390
15,119,604
CAPITAL ASSETS
Machinery and equipment
3,730,730
-
3,730,730
2,068,592
Vehicles
10,811,534
-
10,811,534
10,543,978
Construction in progress
291,903
-
291,903
1,510,164
Accumulated depreciation
(8121369)
(8,121,369)
(7,044,275)
Capital assets,
net ofaccumulated depreciation
6.712,798
6,712798
7,078,459
TOTAL ASSETS
17,691,212
5,592,976
23,284,188
22,198,063
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable
58,382
314,381
372,763
257,709
Accrued liabilities
-
7,672
7,672
6,080
Incurred but not reported claims
-
935,264
935,264
812,410
TOTAL LIABILITIES
58,382
1,257,317
1,315,699
1,076,199
NET POSITION
Net investment in capital assets
6,712,798
-
6,712,798
7,078,459
Unrestricted
10,920032
4,335,659
15,255,691
14,043,405
TOTAL NET POSITION
$ 17,632,830
$ 4335,659
$ 21,968.489
$ 21,121.864
98
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER
OPERATING REVENUES
Charges for services
Other income
Total operating revenues
OPERATING EXPENSES
Personal services
Contractual services
Depreciation
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
Transfers in
Total transfers
CHANGE IN NET POSITION
f�:1:II7Y��9
(74,117) (93,341)
50,273
87,327
137,600
RISK
TOTALS
REPLACEMENT
MANAGEMENT
454,314
400,000
FUND
FUND
2014
2013
$ 1,617,873
$ 9,647,162
$ 11,265,035
$ 11,832,858
10,235
631,236
641,471
2,134,159
1,628,108
10,278,396
11,906,506
13,967,017
-
480,241
480,241
562,050
200,795
9,891,498
10,092,293
10,111,808
1,501,430
1,501,430
1,442,520
1,702,225
10,371,739
12,073,964
12,116,378
(74,117) (93,341)
50,273
87,327
137,600
22,169
22,169
63,483
(71,172)
400,000
454,314
400,000
454,314
463,483
383,142
(167,458) 1,850,639
72,442
32,891
87,327
147,446
159,769
180,337
(7,689)
2,030,976
854,314
334,869
854,314
334,869
846,625
2,365,845
NET POSITION, BEGINNING OF YEAR 17,169,347 3,952,517 21,121,864 18,756,019
NET POSITION, END OF YEAR $ 17,632,830 $ 4.335,659 $ 21,968,489 $ 21,121,864
99
CITY OF ALLEN, TEXAS EXHIBIT E3
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2013)
RISK TOTALS
REPLACEMENT MANAGEMENT
FUND FUND 2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
354,785
105,484
480,249
Cash recened fiom lmnsacbons with other fords
$ 1,563,923
$ 10,181
311,748,7]1
$ 14,012,494
Cash peed to employees Air seraces
-
(480,241)
(480,241)
(562,05))
Cash paid for goods and seraces
(204795)
(6,286,441)
(8,487,236)
(6,649,171)
Cash paid for claims
(3.301.372)
(3,301,372)
(3,618,040)
Net cash proalded by operating aotivilies
1,383,128
116,794
1,479.922
3,185,227
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
1,501,430
-
1,501,430
Transfaram
400,000
454,314
854,314
334.869
Net cash provided by mon-capital financing activities
400,000
454,314
854.314
334.889
CASH FLOWS FROM CAPITAL AND RELATED
(134929)
1,437,245
FINANCING ACTIVITIES
1,647380
1,334,588
$
Acquisition of capital assets
(1,135,769)
-
(1,135,789)
(1,872,718)
Proceeds from sale ofcaot.1 assets
8],32]
87,327
147,448
Net east, used In capital and related financing acBNties
(1,0411
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase ofimestment secuMies
(414,342)
(489,038)
(903,380)
(153.812)
Proceeds hon sale and maturities of investment securities
-
-
225319
Interest on mandments
50."l
23.394
n'835
59 904
Net cash provided by (used In) investing i clivlties
(359,9011
(465,614)
(825,545)
132,411
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)
Adjustments to reconcile operating income (lois)
to net cash prcvidea by opemling actMUes:
Depreciation
Lange in assets and liabilities:
Prepaids
Accounts payable
Total adjustments
Net cash provided by operating activities
100
354,785
105,484
480,249
1,927,177
4,494,055
2200.715
3894.770
4,787,583
$
4.848,840
$ 2,308,179
$ 7455.019
$
S69i
$
(74,117)
$ (93,341)
$ (187,458)
$
1,850,639
1,501,430
-
1,501,430
1,"2.520
-
(93,550)
(93,550)
26,997
(64185)
303.805
239,500
(134929)
1,437,245
210,135
1,647380
1,334,588
$
1,363,128
$ 118,]94
$ 1,4]9,922
$
3,185227
100
DISCRETELY PRESENTED COMPONENT UNITS
Allen Economic Development Corporation (AFDC) — AEDC is a legally separate entity from the City
and is responsible for aiding, promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) — ACDC is a legally separate entity from the City
and is responsible for supporting the improvements in community parks and recreation, streets and
sidewalks, public safety and the community library.
101
CITY OF ALLEN, TEXAS EXHIBIT F-1
COMPARATIVE BALANCE SHEETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2014 AND 2013
2014 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 5,581,166 $
3,929,847
Investments
6,891,910
4,583,427
Sales tax receivable
1,436,156
1,362,313
Accounts receiwble
2,534
2,327
Accrued interest receivable
26,813
24,324
Prepaid items
6,298
6,298
TOTAL ASSETS
$ 13,944,877 $
9,908,536
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
$ 65,095 $
12,711
Accrued and other liabilities
13,878
11,375
TOTAL LIABILITIES
78,973
24,086
FUND BALANCES
Nonspendable
6,298
6,298
Restricted
Debt service
751,646
752,345
Unassigned
13,107,960
9,125,807
TOTAL FUND BALANCES
13,865,904
9,884,450
TOTAL LIABILITIES AND FUND BALANCES
$ 13,944,877 $
9,908,536
102
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, 2014
Total governmental fund balance
$ 13,866,904
Amounts reported for go%emmental actiHlies in the statement of net position
are different because:
Interest payable on long -tern debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental
funds balance sheet.
(60,326)
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.
(17,424,160)
Capital assets (net of accumulated depreciation) used in governmental actitities
are not current financial resources and therefore are not reported in the
governmental funds balance sheet.
4,768,491
Net position of governmental actvatles
103
$ 1,149,909
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
EXHIBIT F-3
EXPENDITURES
Current:
Economic development
Capital projects
Economic development
Debt seMce:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES
Proceeds from sale of capital assets
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
104
4,047,711
2014
2013
REVENUES
845,000
820,000
Sales and other taxes
$ 8,832,627
$ 7,993,037
Investment eamings
47,044
32,354
Miscellaneous
31,184
1,635
743,750
Total revenues
8,910,855
8,027,026
EXPENDITURES
Current:
Economic development
Capital projects
Economic development
Debt seMce:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES
Proceeds from sale of capital assets
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
104
4,047,711
4,159,337
30,000
-
845,000
820,000
750,440
774,515
5,673,151
5,753,852
3,237,704
2,273,174
743,750
743,750
-
3,981,454
2,273,174
9,884,450
7,611,276
$ 13,865,904 $
9,884,450
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, 2014
EXHIBIT F-4
Net change in fund balances -total goaemmental funds $ 3,981,454
Amounts reported for governmental activities in the statement of activities
am different because:
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. fi w r, these amounts are amortized in the
govemmerd wide financial statements.
The repayment ofthe principal of long-term debt consumes the current financial resources
of goemmental funds ($645,000).
645,000
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in go emmental
funds.
2,211
In the governmental fund financial statements, the proceeds from a sale of assets
are shown as an increase in financial resources. Hov ner in the statement of ach,dies,
the gain or loss is calculated and reported.
(569,361)
Depreciation expense on capital assets is reported in the statement of achuoes but
does not require the use of current financial resources. Themla e, depreciation
expense is not repoded as expenditures in the gowmmental funds.
(153,333)
Goemmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense
30,000
Change in net position of gotemmental activities
105
$ 4,112,906
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2014 AND 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Sales tax receivable
Accounts receivable
Accrued interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
Retainage payable
TOTAL LIABILITIES
FUND BALANCES
Restricted
Debt seMce
Assigned for capital pmjects
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
f[1Z1-i
EXHIBIT F-5
2014 2013
$ 3,983,275 $
3,002,013
4,220,285
2,651,935
1,436,156
1,362,313
2,534
2,327
15,917
14,074
$ 9,658,167 $ 7,032,662
$ 104,703 $ 106,766
27,795
132,498 106,766
1,100,500
1,101,377
4,245,452
3,084,147
4,179,717
2,740,372
9,525,669
6,925,896
$ 965B, 167 $
7,032,662
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30,2014
EXHIBIT F-6
Total governmental fund balance
$ 9,525,669
Amounts reported for governmental activities in the statement of net position
are deferent because:
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.
(158,843)
Long -tens liabilities, including bonds payable are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
(32,457,006)
Net position of gown mental activities
$(23,090,180)
107
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013
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
108
EXHIBIT F-7
2014
2013
$ 8,832,627
$ 7,993,037
28,842
1,828
8,861 469
7,994,865
1,206,190
928,921
2,102,671
1,386,961
1,090,000
1,045,000
1,862,835
1,906,116
6,261,696
5,266,998
2,599,773
2,727,867
6,925,896
4,198,029
$ 9,525,669 $ 6,925,896
CITY OF ALLEN, TEXAS
EXHIBIT F-S
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, 2014
Net change in fund balances - total governmental funds
$ 2,599,773
Amounts reported for governmental achNties in the statement of activities
are different because:
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. However, these amounts are amortized in the
govemment-wide financial statements.
(14,420)
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-term debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net position.
1,090,000
Change in net position of governmental activities
$ 3,671,746
109
CITY OF
lE FIRST RESPECT INTEGRITY DELIVER EXCEL
PERP
CAPITAL ASSETS
USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
CITYOFALLEN
jw
PEOPIEFIRST
RESPECT INTEGRITY DELIVER EXCEL
CITY OF ALLEN, TEXAS
COMPARATIVE SCHEDULES BY SOURCE
AS OF SEPTEMBER 30, 2014
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land and land improvements
Buildings
Machinery and equipment
Furniture and fixtures
Vehicles
Books
Infrastructure
Total properly and equipment in service
Construction in progress
Total governmental funds capital assets
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS
BY REVENUE SOURCE
EXHIBIT G-1
2014 2013
$ 130,614,642 $ 129,147,461
131,330,347
131,347,203
11,044,865
10,497,952
7,973,242
8,042,531
2,445,836
2,518,180
1,599,188
1,355,346
477,197,874
466,053,965
762,205,994 748,962,638
9,400,323 11.645,278
$ 771,606,317 $ 760,607,916
General obligation bond proceeds and interest income
$ 189,869,270
$ 188,469,879
Revenue bonds
10,475,000
10,475,000
Contributions
378,162,347
372,456,483
Other governments
9,951,500
9,951,500
General and other fund operations
161,326,074
157,687,465
Special revenue funds
21,822,126
21,567,589
Total governmental funds capital assets
$ 771,606,317 $ 760,607,916
(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 position.
110
CITY OF ALLEN, TEXAS
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF
GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY (a)
AS OF SEPTEMBER 30, 2014
Construction In Progress
Total govemmencil funds capital assets $ 129,799,554 $ 815,088 $ 131,330,347 $ 11 W 865
(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 position.
111
Machinery &
Function and Activity
Land
Land Improvements Buildings
Equipment
GENERAL GOVERNMENT
Municipal court
$ 631,788
$ - $ 289,669
$ 137,584
City administration
2,719,532
- 8,871,016
303,049
Information technology
-
- -
1,029,875
Internal services
-
- -
371,109
Finance
Total general government
3,351,320
9,160,685
1,841,617
PUBLIC SAFETY
Police
-
- 8,528,747
647,708
Fire
78,932
9,470,738
899,823
Total public safety
78,932
- 17,999,485
1,547.531
PUBLIC WORKS
Commumtyservices&steels
51,274,858
- 13,184,077
602,961
Engineering
59.081,607
7,625,113
160,284
Total public works
110.356,465
20.809,190
763,245
CULTURE & RECREATION
Parks & recreation
15,512,837
815,088 70,288,315
5,225,231
Library
-
11.041,387
457,946
Total culture and recreation
15,512,837
815,088 81,329.702
6,683,177
COMMUNITY DEVELOPMENT
Building & code compliance
-
-
-
Planning & development
-
16,988
Total community, development
-
16,988
GRANT ADMINISTRATION
Gram Administration
500.000
2,031,285
1,192,307
Total grant administration
500,000
2,031,285
1,192,307
Construction In Progress
Total govemmencil funds capital assets $ 129,799,554 $ 815,088 $ 131,330,347 $ 11 W 865
(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 position.
111
=FMI-7Y[Te:
Fumiture&
Other Constmchon in
Fixtures
Vehicles
Books
Improvements Progress
Total
9,400,323
9,400,323
$ -
$ -
$ -
$ 6,178 $ -
$ 1,065,219
838,708
-
-
-
12,732,305
12,978
19,942
-
5,539,835 -
6,602,630
14.623
122,770
2,445,836
4,311 -
512,813
23,600
$
477,197,874
$
23,600
889,909
142,712
5,550,324
20,936,567
247,040
321,618
-
1,148,333 -
10,893,446
289,841
1,076,547
110.682
11,926,563
536,881
1,398,165
1,259,015
22,820,009
57,718
97,649
-
257,894,676 -
323,111,939
468,878
79,884
156,396,161
223,811,927
526,596
177,533
414,290,837
546,923,866
5,173,234
455,081
-
63.613,873 -
151,083,659
837,256
1,686,058
3,519
13,926,166
6,010 490
455,081
1,586,058
53,617,392
1654009,825
-
13,619
-
- -
13,619
9,366
19,848
46,202
9,366
33,467
59,821
238,878
13,130
2,480,306
6,455,906
238,878
13,130
2,480,306
6,455,906
112
9,400,323
9,400,323
$
7,973,242
$
2,445,836
$
1,599,188
$
477,197,874
$
9,400,323
$
771,606,317
112
CITY OF ALLEN, TEXAS
SCHEDULE OF CHANGES IN CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS — BY FUNCTION AND ACTIVITY (a)
FOR THE YEAR ENDED SEPTEMBER 30, 2014
EXHIBIT G-3
Govemmental Funds
Goyemmental Funds
Caodal Assets Deeelgpair
Capitol Assets
Fund'onand AcBriN
Clabber 12013 Contributions
Mahlon,
Deduchons
Immature
September 302014
GENERAL.WWRI MENT
Munidpal Court
S 1,065,832 $ -
$ -
$ (413)
$ -
$ 1,0115,219
CBYAdministration
12,]03,51] -
28.788
-
12,]32,305
Information Technology
6,116,867 -
19,942
(13,896)
479,717
6.602,630
Human Resources
5771 -
-
(5,771)
-
-
IntemalSernces
517,461 -
-
(4.648)
-
512,813
Finance
23,991 -
(391)
23,600
Total General Govumment
20.433.239
(25,119)
09.]1]
20,936,567
PUBLIC SAFETY
Police
11,044,933 -
39,784
(190,]]1)
-
10,893,446
Fee
11.077,02] -
22,894
(24.041)
51.483
11,926.583
Total Public Safety
22921,460 -
62,678
(215.812)
51.483
22,820,009
PUBLIC WORKS
Communityaboaces8sirsels
326,165,830 -
-
(3.053,891)
-
323,111,939
Erginuenn9
218,166,012 5671748
-
(25,861)
223.811,927
Thal Public Works
544,331.872 66]1,748
-
(3,079,752)
5,16,923,856
CULTURE d RECREATION
Parks B Recreation
141,097,332 34,117
181.466
(106508)
9,891
151,083.659
Llbrary
13.888.110 -
243.842
(5.786)
13.926.166
Total Cullum B Recreation
154,785.462 36,117
405.308
(1062961
9,891.252
165.009.825
COMMUNITYDEVELOPMENT
Building B Code Compliance
30,260 -
(24,841)
-
13,619
Planning$ Davelopmhd
26,354 -
19,849
46202
Total Community Development
84.614
19.840
(24.641)
59.821
GRANT ADMINISTRATION
Grant Adminisba ton
6.426.011 -
-
29.895
8.455.906
Thal Greet Administration
6,426,011 -
-
29,8%
6,455.908
Total general capital assets
allocated by function
748,982638 5,705,863
536,564
(3,951,418)
10,462,347
762,205,994
Construction in pro9mes
11.8452]8
8.495.575
(288.183)
(10,452.34])
9,400323
Total govummental funds rapdal
assns
$ 760,607,916 L.5]06663
L9.032,139
4(3,]39,6011
E
$ 7]1,606317
(a) The schedule presents only the capital asset balances related to governmental funds, including
Mfmdruhum. Accordingly, Me capital assets repelled In the intimal si hinds ere excluded from Me above
mounts. Generally Me capital assets of sternal seri funds are inducted as govammental aci virme In Me
statement of not poartion
113
STATISTICAL SECTION
(UNAUDITED)
CITY OF ALLEN
PEOPLE F�Rst
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 City's overall financial health. This information has not been audited
by the independent auditor.
Contents
Table #s
Financial Trends
1, 2, 3 & 4
These tables contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
5, 6, 7 & 8
These tables contain information to help the reader assess the City's two most significant
local revenue sources, the property and sales taxes.
Debt Capacity
9, 10, 11 & 12
These tables present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the 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 emAronment 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 denied from the comprehensive annual
financial reports for the relevant year.
114
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CITY OF ALLEN,TEXAS TABLE 6
DIRECT AND OVERLAPPING PROPERTY TAX RATES(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
funauditedl
City Direct Rates Overlapping Rates
Collin
Allen Plano McKinney Love Joy County
Operating/ General Independent Independent Independent Independent Community
Fiscal Geneml Obligation School School School School Collin College
Year Rate Debt SeMce Total Direct District District Distdct District County District
2005 0.35824 0.20176 0.56000 1.93335 1.73340 2.00000 1.82340 0.25000 0.09065
2006 0.37624 0.18276 0.55900 1.91246 1.73340 2.00000 1.82340 0.25000 0.08942
2007 0.39100 0.16700 0.55800 1.77510 1.57840 1.84100 1.69340 0.24500 0.08768
2008 0.42662 0.13038 0.55700 1.47030 1.26840 1.51700 1.47630 0.24500 0.08698
2009 0.42370 0.13231 0.55600 1.47030 1.30340 1.51700 1.51500 0.24250 0.08649
2010 0.41075 0.14425 0.55500 1.54000 1.32840 1.54000 1.53500 0.24250 0.08630
2011 0.40908 0.14492 0.55400 1.54000 1.35340 1.52800 1.53500 0.24000 0.08630
2012 0.40533 0.14767 0.55300 1.67000 1.37340 1.54000 1.53500 0.24000 0.08630
2013 0.40506 0.14694 0.55200 1.67000 1.37340 1.54000 1.53500 0.24000 0.08630
2014 0.40912 0.14088 0.55000 1.67000 1.45300 1.67000 1.53500 0.23750 0.08364
Source:Collin Central Appraisal Distnct
121
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CITY OF ALLEN,TEXAS TABLE 17
CAPITAL ASSET STATISTICS BY FUNCTIONIPROGRAM
LAST TEN FISCAL YEARS
IUnauditedl
Fiscal Year
FunctlonlProaram 244¢ 2M 2QQi 2409 2409 2010 2011 2012 2013 2014
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Patrol Units 17 17 18 23 24 23 23 27 27 27
Fire Stations 4 4 4 4 4 4 4 5 5 5
Police Motorcycle Units 4 4 4 4 4 4 4 4 4 4
Development SeMces
Streets-Paved(miles) 272 293 307 312 314 318 321 325 326 330
Alleys-Paced (miles) 149 158 159 161 161 163 163 163 163 165
Cultural and Recreational
Parks (acres) 554 573 578 578 578 576 576 597 597 599
Playgrounds 22 24 32 32 32 32 32 32 32 32
Swimming 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 i 1 1 1 1 1
Visitor(Youth)Center 1 1 1 1 1 1 1 1 1 1
Golf Course 1 1 1 1 1 1 1 1 1 1
Event Center - - - - - 1 1 1 1 1
Water and Sewer
Water Mains (miles) 381 410 427 439 445 452 456 461 467 471
Fire Hydrants 3,444 3,748 3,894 3,941 3,954 3,981 4,022 4,144 4,210 4,329
Sanitary Sewers (miles) 296 316 329 334 336 339 342 346 352 354
Stone Sewer Lines (miles) 90 97 101 103 104 105 106 107 108 109
Source: City Departments
132
CITY OF
lE FIRST RESPECT INTEGRITY DELIVER EXCEL
PEEP
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 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, 2014, 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 2, 2015.
Internal Control Over Financial Reportina
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
laws, regulations, and contracts, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts.
AN INDEPENDENT MEMBER OF WEAVER AND TIDWELL LLP. 12221 MERIT DRIVE, SURE I4DO, DALLAS TX 75251
BAKER TILLY INTERNATIONAL CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS P972A901970 F:972702.8U1
,__
City of Allen, Texas
Page 2
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 2, 2015