Comprehensive Annual Financial ReportA4w
Allen Convention & Visitors Bureau
The Allen Convention & Visitors Bureau (CVB) was officially formed as a
City department in September 2009 and was tasked with marketing Allen
as a new destination for conventions and tourism. North Star Destination
Strategies was hired to create a brand concept that would clearly identify
Allen, Texas and communicate our destination assets.
The creative concept developed by North Star positions Allen as a
destination for those looking for an easy escape full of simple pleasures
with a tone that conveys Allen's freshness, openness and entertaining
nature. The concept personifies Allen with each of the simple pleasures
found in our community. Specifically, the concept is about not simply
launching Allen's voice into the marketplace, but about establishing and
asserting its persona. Grounding this concept is a signature -style logo
"All the best ... Allen."
For more on Allen, Texas please visit:
http://www.citVofaIIen.org/
http://www.aIlentx.com/
http://visitaIIentexas.com/
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2012
AS PREPARED BY THE
FINANCE DEPARTMENT
No Text
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
EXHIBIT Page
I. INTRODUCTORY SECTION
Letter of Transmittal i
Certificate of Achievement vi
Organizational Chart vii
Elected Officials and Administrative Officers viii
II. FINANCIAL SECTION
Independent Auditor's Report 1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS 3
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Assets
1
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 Assets
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 Assets — Proprietary Funds
7
26
Reconciliation of the Fund Level Statement of Net Assets
of Proprietary Funds to the Government -wide
Statement of Net Assets
8
27
Statement of Revenues, Expenses and Changes
In Net Assets — Proprietary Funds
9
28
Reconciliation of the Statement of Revenues,
Expenses and Changes in Net Assets 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 Assets — 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, 2012
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 -Term Debt
49
Note 6. Interfund Transfers
58
Note 7. Retirement Plan
59
Note 8. Water and Sewer Contracts
61
Note 9. Deferred Compensation Plan
62
Note 10. Risk Management
62
Note 11. Other Postemployment Benefits (OPEB)
63
Note 12. Commitments and Contingent Liabilities
65
Note 13. Subsequent Events
65
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of TMRS Funding Progress and Contributions
And Schedule of OPEB Funding Progress and Contributions A-1 66
General Fund Schedule of Revenues, Expenditures
And Changes in Fund Balances — Budget and Actual A-2 67
Notes to Required Supplementary Information 68
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Comparative Balance Sheets - General Fund
B-1
70
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Fund
B-2
71
Comparative Balance Sheets— Debt Service Fund
B-3
72
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — Debt Service Fund
B-4
73
Budgetary Comparison Schedule — Debt Service Fund
B-5
74
Comparative Balance Sheets — General Capital Projects Fund
B-6
75
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances — General Capital Projects Fund
B-7
76
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
EXHIBIT Page
Comparative Balance Sheets — General Obligation Bond Fund B-8 77
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balance — General Obligation Bond Fund B-9 78
Nonmajor Governmental Funds
Combining Balance Sheet C-1 80
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances C-2 81
Major Enterprise Funds
Comparative Statements of Net Assets — Water and Sewer
D-1
83
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets — Water and Sewer
D-2
84
Comparative Statements of Cash Flows — Water and Sewer
D-3
85
Comparative Statements of Net Assets — Solid Waste
D-4
86
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets — Solid Waste
D-5
87
Comparative Statements of Cash Flows — Solid Waste
D-6
88
Comparative Statements of Net Assets — Drainage
D-7
89
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets — Drainage
D-8
90
Comparative Statements of Cash Flows — Drainage
D-9
91
Comparative Statements of Net Assets — Golf Course
D-10
92
Comparative Statements of Revenues, Expenses and
Changes in Fund Net Assets — Golf Course Fund
D-11
93
Comparative Statements of Cash Flows — Golf Course Fund
D-12
94
Internal Service Funds
Combining Statement of Net Assets
E-1
96
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets
E-2
97
Combining Statement of Cash Flows
E-3
98
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
EXHIBIT Page
Discretely Presented Component Units
Comparative Balance Sheets -Economic Development Corporation F-1 100
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets F-2 101
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balances F-3 102
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balance F-4 103
Comparative Balance Sheets -Allen Community Development
Corporation
F-5
104
Reconciliation of the Governmental Funds Balance Sheet to the
G-2
109
Statement of Net Assets
F-6
105
Comparative Statements of Revenues Expenditures and
TABLE
Page
Changes in Fund Balances
F-7
106
Reconciliation of the Governmental Funds Statement of
1
113
Revenues, Expenditures and Changes in Fund Balance
F-8
107
E. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Comparative Schedules by Source
G-1
108
Schedule by Function and Activity
G-2
109
Schedule of Changes by Function and Activity
G-3
111
TABLE
Page
STATISTICAL SECTION
Net Assets by Components
1
113
Changes in Net Assets
2
114
Fund Balances, Governmental Funds
3
116
Changes in Fund Balances, Governmental Funds
4
117
Assessed Value and Estimated Actual Value of Taxable Property
5
118
Direct and Overlapping Property Tax Rates
6
119
Principal Property Taxpayers
7
120
Ad Valorem Tax Levies and Collections
8
121
Ratio of Outstanding Debt by Type
9
122
Ratio of General Bonded Debt Outstanding
10
123
Direct and Overlapping Governmental Activities Debt
11
124
Pledged -Revenue Coverage
12
125
Demographic and Economic Statistics
13
126
Principal Employers
14
127
Full -Time Equivalent City Government Employees by
Function/Program
15
128
Operating Indicators by Function/Program
16
129
Capital Asset Statistics by Function/Program
17
130
March 15, 2013
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, 2012.
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 unqualified ("clean") opinion on the City of Allen's financial
statements for the year ended September 30, 2012 issued by Weaver and Tidwell, L.L.P. The
independent auditor's 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 (AFDC) and Allen Community
Development Corporation (ACDC) are included in the financial statements as discretely
presented component units.
The City of Allen is the fourth largest city in population in Collin County, one of the fastest growing
counties in the nation. Located 25 miles north of downtown Dallas, on US 75, Allen encompasses
approximately 27 square miles. The completion of the George Bush Toll way and Sam Rayburn
Toll way (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 3.6 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 88,103 is estimated to grow to 97,938 at
build out.
305 CENTURY PARKWAY - AL,L qN, TEXAS "7501.3-8042.214.509.4100
WEB: www.cityofallen.org « EMAIL: coa6j,, cityofallen.org
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 746.35 full
time equivalent positions.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
In 2011, Texas claimed the number 1 spot for the nation's top business climate and the Dallas -
Fort Worth Metroplex (DFW) ranked No. 2 in the nation behind the Washington, D.C. area for
employment growth. That growth continued in 2012, with Collin County ranked 61h in the Nation
on CNN Money's "Where the Jobs Are" listing, mentioning a 55.9% jobs growth rate from 2000-
2011. The DFW area 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
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. Allen has
benefited from a well-educated and affluent workforce. With a median age of 33.5, over 48.8% of
adults have a Bachelors degree or higher and the average household income is $106,563.
During 2012, the City continued to provide exemplary services and an exceptional quality of life
despite the ongoing economic challenges. Public safety enhancements, ongoing development
and expanded recreational opportunities are just a few of the many accomplishments this year.
Allen's progress continues to be recognized as the City claimed the 13th spot on Money
Magazine's Best Places to Live in America, received the prestigious Keep Texas Beautiful
Governor's Community Achievement Award for outstanding environmental efforts, and ranked as
the 9th safest city in the United States for the third time by CQ Press.
Long Range Financial Planning
The City's responsiveness to emerging economic challenges and its long-term planning have
been key factors in its fiscal health. The City has a five-year financial plan and a 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."
In June 2012, Standard and Poor's raised its long-term and underlying bond rating on the City's
Water and Sewer Revenue Bonds from AA+ to AAA. The City continues to maintain the highest
`AAA' rating from Standard and Poor's and Aa1 from Moody's on its general obligation and
certificate of obligation bonds. S&P's February 2012 rating report supporting the `AAA' rating
stated the following credit factors:
• Rapidly growing and diversifying economic and property tax base to include a mix of
residential, commercial, and industrial components;
• High wealth and income levels;
• Access to the large and diverse north -central Texas employment base;
• History of very strong reserve levels and thorough planning processes; and
• Moderately high overall net debt levels.
• All indicators point to the City maintaining that highest `AAA' rating.
In February 2012, the City took advantage of low interest rates and issued $13,940,000 in G.O.
Refunding bonds with a net present value savings of $1,273,327. In FY2012, the sixth year of the
CIP program, the City took a one-year hiatus from issuing new debt and starting new projects
authorized in the 2007 Bond Program, in order to defer the impact those projects would have on
the tax rate, debt burden, and operating costs in the FY2013 budget. During FY2013, the City
plans to issue $5,065,000 in new debt for streets, parks, building renovations and public art. The
debt payments will begin in FY2014.
Fiscal Year 2012 Highlights
The vision of Allen as a destination point unfolded with the opening of the Allen Event Center in
November 2009. Since its opening, professional hockey, football and soccer, the Tom Thumb
Texas Stampede championship rodeo and a multitude of concerts and special events has
contributed to the growing base of lodging, shopping and dining options surrounding the Event
Center in the Village of Allen. New entertainment businesses, such as a cable wakeboarding
park (Hydrous Wake Park), a new golf driving range concept (Top Golf), plus the opening of
Cabela's, strengthens Allen's position as a destination point.
Similarly, Watters Creek at Montgomery Farm continues to offer a unique get -a -way for residents
and visitors alike with D Magazine ranking it as one of the Best Places to Shop noting the 52 -acre
setting of hills, trees and a creek. This development truly defines "live, shop and play" in Allen.
With these two great destinations, Allen is a prime location for hosting conventions with shopping,
dining, lodging and recreational opportunities. Also with the efforts of the AEDC, sales tax and
property tax revenue have been greatly impacted. Total assessed property values increased
5.25% or $399.1 million from the previous year. Sales tax revenue increased 8.2% over FY2011.
The City is able to maintain high service levels by stretching resources and by investing in
improvements that result in efficient operations and effective service delivery. The largest
General Fund expenditure (39%) is for Public Safety. One significant investment made to public
safety operations was the implementation of a Computer Aided Dispatch (CAD) system. Police,
Fire and IT departments all worked together to implement a CAD system. CAD is a system of
hardware and software, vehicle locators and integrated equipment which allows for the best use
of public safety resources and improves response times.
The second largest General Fund expenditure (31%) is for Culture and Recreation. A large part
of that is from the operations of the Allen Event Center which provides professional sports
entertainment as well as a multitude of concerts and special events. The presence of the Event
Center has drawn more businesses, hotels and restaurants to locate in Allen, impacting the
growth in property tax and sales tax revenue.
m
Keeping pace with growth and transportation, the Engineering Department installed LED
streetlights along Bethany Drive with funding made possible through an energy efficiency grant.
Also, construction began on an acceleration lane along US 75 to improve access to Cabela's and
the many restaurants and retail stores located in The Village at Allen.
To become more efficient, the Planning and Development and Building and Code divisions were
consolidated into the Community Development Department. By integrating staffing and
processes, customer service improved by providing faster turn -around times for customers. This
was important because in addition to considering nearly 60 new cases, permits were processed,
plan reviews completed and over 450 homes and 220 businesses were inspected.
Last year's drought coupled with the loss of 25% of our water supply due to invasive zebra
mussels make previously implemented conservation efforts the "new normal" for water resource
management. The Community Services Department continues to educate the public with water
efficiency rebate programs, a sustainable landscape lecture series, landscape irrigation
inspections and water conservation block leader programs. Also in 2012, a Household
Hazardous Waste Reuse Center opened and recycling programs were started at Allen Station
Park and Celebration Park.
A complete renovation of the municipal golf course was funded by the Allen Community
Development Corporation (ACDC). The ACDC oversees the funding of projects based on the
receipt of a half -cent sales tax revenue. The old "Chase Oaks" course was renovated and
rebranded "The Courses at Watters Creek" reflecting the City of Allen's vision to provide top-
quality recreational facilities for residents, families and guests. Centrally located on Highway 75
on the Allen/Plano border, the inviting and environmentally friendly design by Weibring-Wolfard
Golf Design sets the standard for a community golf experience- three courses designed for
players of all abilities, all at a competitive value. The 18 -hole course opened in January 2013, and
the 9 -hole and new 6 -hole (designed for the short game) will open later in 2013. The Courses at
Watters Creek adds one more destination to Allen's "work, live and play" atmosphere.
Due to conservative budgeting and effective management, the City continues to cash finance
capital projects thus saving debt issuance and interest costs. In FY2012, the General Fund
contributed $32,000 for restrooms at the K-9 training center, Water and Sewer Fund -$1,520,000
for sewer replacement, and ground storage, pump and lift station improvements, Solid Waste
Fund -$405,685 for alley repairs and dumpster enclosures, and Drainage Fund -$385,000 for
drainage improvements.
Following nationwide trends, healthcare costs continue to rise. To address the requirements of
GASB 45, a medical trust fund was established in March 2011 to address the funding of Other
Postemployment Benefits (OPEB) which the City is required by state law to offer to retirees and
dependents. Due to the significant increase in retiree premium costs, the City elected to create a
separate plan for retirees, which is explained in Note 11, page 63. Creating a separate plan for
retirees allows the Risk Management Fund to continue to be in good financial condition to provide
the financial security needed in the event that catastrophic claims should occur.
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.
iv
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, 2011. This was the fourteenth
consecutive year that the government has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements — We would like to express our sincere gratitude to City personnel who
contributed to this report, especially Dana Thornhill, Accounting Manager and Tru Nguyen, Senior
Accountant. Appreciation is expressed to representatives of Weaver for their invaluable
assistance in producing the final document and to the City Manager's 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 Finance Director
UT
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Certificate of
Achievement
for Excellence
in Financial
Presented to
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
044;�
President
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Executive Director
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CITY OF ALLEN
ORGANIZATIONAL CHART
Citizens of Allen
City Council
Boards and Commissions
City Attorney City Manager Municipal Judge
Assistant City Manager Assistant City Manager
Human Resources City Secretary
Public and Media Relations Community Development
Community Services Engineering
Finance I II I Fire
Library Information Technology
Police I II I Parks and Recreation
Vii
CITY OF ALLEN, TEXAS
CITY OFFICIALS
Council Members
Mayor
Mayor Pro Tem, Place 5
Place 1 Council Member
Place 2 Council Member
Place 3 Council Member
Place 4 Council Member
Place 6 Council Member
Stephen Terrell
Gary L. Caplinger
Kurt Kizer
Ross Obermeyer
Joey Herald
Robin L. Sedlacek
Baine Brooks
Management Staff
City Manager
Peter H. Vargas
Chief Financial Officer
Kevin Hammeke
Assistant Finance Director
Joanne Stoehr
Accounting Manager
Dana Thornhill
Viii
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members of
the City Council
City of Allen, Texas
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units, each major fund
and the aggregate remaining fund information of the City of Allen (the City) as of and for the
year ended September 30, 2012, which collectively comprise the City's basic financial
statements, as listed in the table of contents. These financial statements are the responsibility
of the City's management. Our responsibility is to express an opinion 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 includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the 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, 2012, 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.
In accordance with Government Auditing Standards, we have also issued our report dated
March 15, 2013, 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 and
should be considered in assessing the results of our audit.
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 3 through 16 and 66 through 68 be presented to supplement the basic financial
statements.
AN VV'WXLV''LNDINI WEAVER AND TIDWWr .L LLP DALLAS
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00`WURNA11 KMAL WA!X9,WL EAVERLkJfa.COM P: (9°6 490 11910 (972) 702 8321
City of Allen, Texas
Page 2
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.
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. 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.
The information has been subjected to the auditing procedures applied in the audit of the
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.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 15, 2013
2
MANAGEMENT'S DISCUSSION AND
ANALYSIS
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(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, 2012.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities (net assets) at September 30, 2012 by
$604,885,229. Of this amount, $57,245,475 (unrestricted net assets) may be used to meet
the government's ongoing obligations to citizens and creditors.
• The City's total net assets increased by $15,466,745. The increase is primarily a result of
capital contributions.
• The City's governmental funds reported combined ending fund balances of $43,083,637 at
September 30, 2012, a decrease of $3,734,375 from the prior fiscal year. This decrease is
attributed to the expenditures associated with the capital projects.
• At the end of the fiscal year, the unassigned fund balance for the General Fund was
$16,136,690 or 23% of total General Fund expenditures.
• On a government -wide basis, the City's total liabilities decreased by $7,431,475.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: 1) government -
wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements.
Government -wide financial statements - The government -wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to that of a private -sector
business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating. To
assess the overall health of the City, other non-financial factors should also be taken into consideration,
such as changes in the City's property tax base and the condition of the City's infrastructure.
The Statement of Activities presents information showing how the City's net assets changed during the
fiscal year. All changes in net assets are reported when the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes
and earned but unused compensated absences).
Both the Statement of Net Assets and the Statement of Activities are prepared utilizing the accrual basis
of accounting as opposed to the modified accrual basis used in prior reporting models.
In the government -wide financial statements, pages 17 through 19, the City is divided into three kinds of
activities:
• Governmental activities - Most of the City's basic services are reported here, including
the police, fire, library, community development, parks and recreation, municipal court, and
general administration. Property and sales taxes, charges for services, franchise fees, and
state and federal grants finance most of these activities.
• Business -type activities - The City's water, sewer, solid waste, drainage, and golf course
operations are reported here. These are functions intended to recover all or a significant
portion of their costs through user fees and charges.
3
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
• 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. During the course of the year, the City consolidated some funds in order to prepare for GASB 54
requirements. The basic governmental fund financial statements can be found on pages 20 through 25 of
this report.
Proprietary Funds - The City maintains two different types of proprietary funds: enterprise funds and
internal service funds. Enterprise funds are used to report the same functions presented as business -
type activities in the government -wide financial statements. The City uses enterprise funds to account for
its water and sewer operations, solid waste collection, disposal services, drainage operations, and golf
course operations. Internal service funds are an accounting device used to accumulate and allocate
costs internally among the City's various functions. The City uses its internal service funds to account for
vehicle, machinery, and equipment replacements and costs associated with workers compensation,
liability and property insurance, and employee medical and dental insurance programs. These services
have been included within governmental activities in the government -wide financial statements as they
predominantly benefit governmental rather than business -type functions.
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.
4
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
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 65 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents required supplementary information highlighting budgetary information for the General Fund
and funding schedules for TMRS and OPEB found on pages 66 through 68 of this report.
The combining statements referred to earlier in connection with 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 108 through
111.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, over time net assets may serve as a useful indicator of the financial position of a
government. The assets of the City of Allen exceed the liabilities by $604,885,229 as of September 30,
2012. By far the largest portion of the City's net assets ($526,168,695 or 87%) reflects its investment in
capital assets (i.e. land, buildings, infrastructure, vehicles, machinery, and equipment), less any related
debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
Table 1
Net Assets
An additional portion of the City's net assets, $21,471,059, represents resources that are subject to
external restrictions on how they may be used; the remaining balance of $57,245,475 may be used to
meet the government's ongoing obligations to citizens and creditors.
5
Governmental Activities
Business -type
Activities
Total
2012
2011
2012
2011
2012
2011
Current and other assets
$ 64,019,841
$ 65,572,063
$ 35,900,850
$ 35,120,831
$ 99,920,691 $
100,692,894
Capital assets
523,241,289
516,831,918
110,421,741
108,023,639
633,663,030
624,855,557
Total Assets
587,261,130
582,403,981
146,322,591
143,144,470
733,583,721
725,548,451
Long-term liabilities
106,623,962
113,548,811
10,923,454
12,155,973
117,547,416
125,704,784
Other liabilities
8,772,349
6,793,261
2,378,727
3,631,922
11,151,076
10,425,183
Total Liabilities
115,396,311
120,342,072
13,302,181
15,787,895
128,698,492
136,129,967
Net Assets:
Invested in capital
assets, net of related
debt
426,207,901
419,223,646
99,960,794
96,288,053
526,168,695
515,511,699
Restricted
21,042,413
18,656,870
428,646
349,692
21,471,059
19,006,562
Unrestricted
24,614,505
24,181,393
32,630,970
30,718,830
57,245,475
54,900,223
Total Net Assets
$ 471,864,819
$ 462,061,909
$ 133,020,410
$ 127,356,575
$ 604,885,229 $
589,418,484
An additional portion of the City's net assets, $21,471,059, represents resources that are subject to
external restrictions on how they may be used; the remaining balance of $57,245,475 may be used to
meet the government's ongoing obligations to citizens and creditors.
5
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Analysis of the City's Operations - As of September 30, 2012, the City had an overall increase in net
assets of $15,466,745 for the government as a whole which represents an increase of $9,802,910 for
governmental activities and an increase of $5,663,835 for business -type activities. The increase in
governmental activities is due to completion of capital projects. A summary of the City's operations for the
year ended September 30, 2012 is provided in Table 2.
Revenues:
Program Revenues:
Charges for services
Operating grants and
contributions
Capital grants and contributions
General Revenues:
Property taxes
Sales tax
Franchise taxes
Hotel motel taxes
Other taxes
Interest earnings
Gain on sale of capital asset
Miscellaneous
Total Revenues
Expenses:
General government
Public safety
Public works
Culture and recreation
Community development
Interest on long-term debt
Water and sewer
Solid waste services
Drainage
Golf course
Total Expenses
Table 2
Changes in Net Assets
Governmental Activities Business -type Activities Total
2012 2011 2012 2011 2012 2011
$ 11,712,062 $ 11,371,983 $ 36,131,606 $ 39,627,671 $ 47,843,668 $ 50,999,654
1,504,355 2,736,094 1,000,000 1,000,000 2,504,355 3,736,094
26,626,381 5,437,433 7,151,043 2,749,029 33,777,424 8,186,462
42,042,753
41,111,106
42,042,753
41,111,106
15, 038, 519
13, 907, 095
15, 038, 519
13, 907, 095
6,150,419
6,421,059
6,150,419
6,421,059
1,229,996
1,113,312
1,229,996
1,113,312
1,622,633
1,886,665
1,622,633
1,886,665
538,863
644,169
197,613 184,709 736,476
828,878
40,509
233,783
- - 40,509
233,783
1,802,747
1,451,743
411,268 143,329 2,214,015
1,595,072
108,309,237
86,314,442
44,891,530 43,704,738 153,200,767
130,019,180
18, 347, 067
16, 989, 047
18, 347, 067
16, 989, 047
28,675,146
27,110,778
4,425,703
(12,668,532)
28,675,146
27,110,778
17, 681, 730
16, 779, 393
Transfers
5,377,207
17, 681, 730
16, 779, 393
32,112,451
30,645,922
Increase (decrease) in net assets
32,112,451
30,645,922
2,527,518
2,742,284
15,466,745
(2,746,291)
2,527,518
2,742,284
4,539,622
4,715,550
122,505,680
589,418,484
4,539,622
4,715,550
-
-
26,359,698
25,638,007
26,359,698
25,638,007
5,429,049
5,411,960
5,429,049
5,411,960
882,726
819,947
882,726
819,947
1,179, 015
1,912,583
1,179, 015
1,912,583
103,883,534
98,982,974
33,850,488
33,782,497
137,734,022
132,765,471
Increase (decrease) in net assets
before transfers
4,425,703
(12,668,532)
11,041,042
9,922,241
15,466,745
(2,746,291)
Transfers
5,377,207
5,071,346
(5,377,207)
(5,071,346)
-
Increase (decrease) in net assets
9,802,910
(7,597,186)
5,663,835
4,850,895
15,466,745
(2,746,291)
Net assets, beginning of year
462,061,909
469,659,095
127,356,575
122,505,680
589,418,484
592,164,775
Net assets, end of year
$ 471,864,819
$ 462,061,909
$ 133,020,410
$ 127,356,575
$ 604,885,229
$ 589,418,484
2
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Governmental activities
Revenues — The following chart visually illustrates the City's revenue by sources for governmental
activities:
•y Source- Government,'
Activities
Revenues for the City's governmental activities increased by $21,994,795 or 25%. Major components of
revenue increases and decreases are explained as follows:
• Property taxes increased by $931,647 because overall assessed property value increased
approximately $212.5 million (2.88%) from the previous year.
• Operating grants declined by $1,231,739. In FY11 the city received a federal energy efficiency
grant and a grant for Fire Station #5 which was not renewed in FY12.
• Capital grants and contributions increased by $21,188,948 from the prior year due to
infrastructure being dedicated by developers to the City and the Allen Community Development
Corporation's contribution to the renovation of the city golf course.
• Sales tax revenue increased 8% due to a full year's impact of new retail development and
commercial constructions in the city.
• Hotel taxes increased by 10% due to more usage of the hotels as the City of Allen continues to
become a destination point for many activities.
• Interest earnings decreased $105,306, a reduction of 16%, as a result of the continued decline of
rates on investments during fiscal year 2012.
Expenses for governmental activities increased by $4,900,560 or 5%. Components of increases and
decreases are explained as follows:
• Expenses include employee annual merit increases.
• Expenses for general government increased by 3% due to various infrastructure needs, increase
in City's share of healthcare costs, and operational needs.
• Expenses for public safety increased by 6% due to the opening of Fire Station #5 and increased
staffing of officers to meet traffic demands.
• Culture and recreation expense increased by 5% due to the continued management
responsibilities for the city -owned Allen Event Center.
7
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
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r rrr rrr
rrr rrr
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41
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® Revenues
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Business -type activities —
Revenues — The following chart visually illustrates the City's revenue by sources for business -type
activities:
Business -type activities revenues increased $1,186,792 or 3%. Major components of the
decreases/increases are as follows:
• Capital contributions for water and sewer lines and impact fees increased by $4,402,014, or
160% due to developer contributed water mains and sewer lines and Allen Economic
Development Corporation's contribution for the construction of the Hillside Water Tower and the
improvement of the waterline along highway U.S. 75.
• Charges for services for business -type activities decreased by $3,496,065, or 9%. Because of
water conservation efforts, Stage 2 and Stage 3 water restrictions were implemented. Reducing
water consumption caused water sales in FY12 to be $2,677,796 less than in FY11. Also,
closure of the golf course for renovations decreased revenue by $748,263.
Irl
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Expenses for business -type activities increased by $67,991, or 0.2%. The following chart illustrates the
relationship between expenses and program revenues for business -type activities:
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
$43,083,637, a decrease of $3,734,375 in comparison with the prior fiscal year. Approximately 37% or
$16,136,690 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 ($2,081), restricted funds are for debt service ($537,520), capital projects ($20,430,063),
tourism ($2,301,283), asset forfeiture ($96,039), state and federal grants ($368,137), park acquisition and
development ($1,580,962), tax increment financing agreements ($983,583), court technology ($69,880),
juvenile case manager ($45,210), PEG fees ($312,490), photo red light enforcement ($30,300), cemetery
trust ($55,921), and assigned funds are for information technology ($85,288), municipal court ($46,138),
and public safety ($2,052).
The budget planned for a drawdown of $312,702 in the Debt Service Fund. Due to decreases in the
collections of current and delinquent taxes and low interest earnings, the actual drawdown was $75,590
more than budgeted. The tax rate portion allocated to the Debt Service Fund was adjusted in the FY13
budget to meet policy requirement.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total
unassigned fund balance was $16,136,690. Current operating expenditures had savings of $971,783
allowing $155,000 to be transferred to the golf course to assist with operations as the facility was being
renovated. The total fund balance increased from $15,686,338 to $16,786,050 resulting in a positive
effect on the operational expenditure reserve for the 2012-2013 budget.
10
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
The Debt Service Fund balance of $537,520, all of which is restricted for the payment of debt, decreased
from the prior year fund balance by $388,292 due to interest earnings being less than anticipated and a
budgeted drawdown on fund balance. Although the Debt Service policy is to maintain 5-10% of the
annual debt service requirement, due to property taxes collected and interest earnings coming in less
than budgeted, the fund balance was slightly below. The 2012-2013 budget will be revised to ensure the
fund balance meets the 5-10% policy.
The General Capital Projects Fund provides information on cash financed capital projects and had an
ending fund balance of $15,080,453, an increase of $2,213,816. Revenues and transfers from other
funds totaled $6,059,484, which included $4,100,000 from the county for widening of Bethany Drive and
ROW purchase for the expansion of Ridgeview Drive and $823,185 from other funds to cash finance
capital projects. Total expenditures of $2,142,875 consisted of the continued construction to widen
Bethany Drive, traffic signals, and street and alley repairs.
The General Obligation Bond Fund had an ending fund balance of $5,349,610, a decrease of $6,742,036
from the prior year. Revenues included interest earnings of $47,833. Expenditures totaled $6,533,404
which included $1,843,202 for the expansion of Chelsea Boulevard, $1,059,142 for the purchase of ROW
for the Ridgeview Drive expansion, $834,147 for continued widening of Bethany Drive, and $329,755 for
median improvements to Exchange Parkway.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. At the end of the year, unrestricted net assets for all enterprise funds are
as follows: Water and Sewer, $27,038,316, Solid Waste, $3,376,057, Drainage, $1,014,974, and Golf
Course, $213,007. The total change in net assets for the funds was an increase of $6,009,776, a
decrease of $138,345, a decrease of $334,484, and an increase of $176,938, respectively. The Water
and Sewer Fund and the Solid Waste Fund had an increase in net assets as a result of capital
contributions, transfers from other funds, and operating revenues. The Water and Sewer Fund
contributed $1,520,000 for water and sewer line replacement, pump and sewer lift station maintenance
and future construction in progress funding as per the rate plan study. Other factors concerning the
finances of these funds have already been addressed in the discussion of the City's business-type
activities.
General Fund Budgetary Highlights
During April and May, all accounts are evaluated to determine if they are in line with the original budgets.
Accounts that are under or over budget are revised to meet year-end estimates. New projects are not
added to the year-end estimate; only the cost of maintaining the current base operation is revised as
needed. As is customary, during FY2011-12, the City Council amended the budget for the General Fund
one time.
Adjustments made during the FY2011-12 decreased the original revenue budget by $3,509,457 and
decreased the expenditure budget by $4,981,569. Although it was budgeted for the General Fund's fund
balance to remain unchanged from the prior year, the resulting fund balance increased $1,099,712. The
funds operational expenditure reserve increased based on the amended budget from 83.1 days to 85.4
days, within the City's financial policy of 60 to 90 days.
11
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
CAPITAL ASSETS
The City's investment in capital assets for its governmental and business -type activities as of September
30, 2012, amounts to $633,663,030 (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 83% of the capital assets are governmental and 17% are business -type
activities. There was an increase of 1 % in the investment in capital assets for the current fiscal year due
to some assets being disposed of during the fiscal year.
Land
Buildings
Towers, tanks and pump stations
Other Improvements
Furniture and fixtures
Vehicles
Machinery and equipment
Construction in progress
Total
Table 3
Capital Assets at Year-end Net of Accumulated Depreciation
Governmental Activities Business -type Activities
2012 2011 2012 2011
$126,146,774 $120,411,968 $4,072,882 $4,072,882
108,552,522 98,136,405
246,479,401
253,116,617
2,646,969
3,558,109
5,311,311
4,416,203
3,633,111
4,318,948
30,471,201
32,873,668
$523,241,289 $516,831,918
102,312,542
379,624
176,884
1,420,132
2,059,677
94,863,295
391,888
1,089
230,424
1,548,671
6,915,390
Total
2012
$130,219,656
108,552,522
102,312,542
246,859,025
2,646,969
5,488,195
5,053,243
32,530,878
2011
$124,484,850
98,136,405
94,863,295
253,508,505
3,559,198
4,646,627
5,867,619
39,789,058
$110,421,741 $108,023,639 $633,663,030 $624,855,557
The major governmental -type capital improvement projects and developer contributions during the current
fiscal year included the following:
Protects
• Developer contributed right of way and park land $13,196,551
• City golf course renovation (The Courses at Watters Creek) 7,811,340
• Public safety dispatch and records system 731,961
• Street construction:
Chelsea Boulevard Phase 1 2,038,313
Ridgeview Drive — Alma to US75, purchase of right-of-way 1,059,142
East Bethany Drive widening 862,292
Business -type capital improvement projects and developer contributions during the current fiscal
year include the following:
Projects
• Developer contributed water mains and sewer lines $4,273,079
• Walden Park Water/Sewer Replacement 1,175,829
• Chelsea Boulevard Phase 1 400,000
Additional information on the City's capital assets can be found in Note 4 on pages 45-49 of this report.
12
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
DEBT ADMINISTRATION
As shown in Table 4, the City's total outstanding debt at September 30, 2012 was $171,193,611 of which
$106,623,962 was governmental, $10,923,454 was business -type activities and $53,646,195 was
component units'. Total gross bonded debt was $164,825,000 which includes $99,365,000 of General
Obligation (G.O.) bonds backed by the full faith and credit of the government, $1,060,000 of Certificates
of Obligation backed by taxes and revenue generated from the golf course, $10,535,000 secured solely
by water and sewer revenue, and the component unit's total of $53,865,000 secured by future sales tax
revenue. Other long-term debt relates to compensating absences, notes payable, debt refunding and
issuance, premiums, and discounts.
In March 2012, the City issued $13,940,000 of G.O. Refunding Bonds, which resulted in a net
indebtedness decrease of $9,595,000 or 8%. Total debt for governmental activities decreased by 6% and
business -type activities decreased by 10%. At fiscal year end, the City had authorized but un -issued
direct general obligation bonds totaling $42,720,000.
The debt for both component units relates to debt issued in order to support public infrastructure
improvements and construction of the Allen Event Center. Total debt for the component units decreased
by 3%. Total debt for the Allen Economic Development Corporation decreased by 3% and the Allen
Community Development Corporation debt decreased by 3%.
Gross Bonded Debt
General Obligation
Bonds
Certificate of Obligation
Bonds
Revenue Bonds
Payable
Sales Tax Revenue
Bonds
Total Gross Bonded
Debt
Other Long -Term Debt
Compensated
Absences
Capital leases
Refunding
Issuance, Premiums &
Discounts
Table 4
Outstanding Debt at Year-end
Bonds and Other Long Term Debt
Governmental Activities Business-tvoe Activities Component Units Total
2012 2011 2012 2011 2012 2011 2012 2011
$ 99,365,000 $ 104,330,000 $ $ $ $ $ 99,365,000 $ 104,330,000
1,060,000 4,455,000 1,060,000 4,455,000
- - 10,535,000 11,770,000 10,535,000 11,770,000
- - - - 53,865,000 55,670,000 53,865,000 55,670,000
100,425,000 108,785,000 10,535,000 11,770,000 53,865,000 55,670,000 164,825,000 176,225,000
4,240,964 3,848,893 462,507 420,387 - - 4,703,471 4,269,280
27,437 6,662 41,464 103,512 68,901 110,174
(2,423,657) (1,358,356) (232,948) (267,331) (49,237) (71,883) (2,705,842) (1,697,570)
4,354,218 2,266,612 117,431 129,405 (169,568) (170,642) 4,302,081 2,225,375
Total Other Long Term 6,198,962 4,763,811 388,454 385,973 (218,805) (242,525) 6,368,611 4,907,259
Debt
Total $ 106.623.962 $ 113.548.811 $ 10.923.454 $12.155.973 $ 53.646.195 $ 55.427.475 $171.193.611 $ 181.132.259
The underlying credit ratings from both Moody's Investors Service and Standard and Poor's for the City's
General Obligation Bonds, Certificates of Obligation, Water and Sewer Revenue Bonds, Community
Development Corporation's Sales Tax Bonds and Economic Development Sales Tax Revenue Bonds are
shown below in Table 5. Additional information on the City's long-term debt can be found in Note 5.
13
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Table 5
Bond Ratings
Moody's
Investors Standard &
Service Poor's
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 has been 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 2012-2013 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 and business personal property. For fiscal year 2012-2013, reappraisal values
for existing real properties increased .50% compared to FY2012, while valuations for existing business
personal property increased by 1.50%. Expiring tax abatements on commercial property resulted in a
1.10% increase in taxable property valuation. New construction of residential and commercial property
resulted in an increase in valuation of 2.16%. The overall increase in valuation from all categories was
5.26%, however, the property tax revenue increase was budgeted as 5.06% as a result of lowering the
tax rate a tenth of one cent. Base (existing) sales tax is expected to increase by about 4% and the
newer retail developments are expected to show 9% to 15% increases in sales tax revenues. The overall
projected increase of 7.3% in total sales tax revenue for FY2013 is primarily due to a full year's impact of
new retail development that opened in late 2011 or in 2012 and also continued commercial construction.
Although the rate of residential growth has slowed, the City estimates issuance of 450 single family
permits in FY2013. The current population of 88,103 is expected to reach 97,938 at buildout in the next
several years.
The various infrastructure and operational needs of the City have resulted in the annual expenditure
budget increasing from $117.4 million in FY2008, to $177.95 million for FY2013 for all funds combined.
The certified assessed property value for 2012-2013 equates to an overall increase of approximately
$399.1 million (5.26%) from the preceding year. The FY2013 tax rate was set at $0.552 per $100
valuation. Of the total tax rate, $0.405058 is dedicated to operations and maintenance in the General
Fund, and $0.146942 is dedicated to general obligation debt service.
Ad valorem taxes are the General Fund's largest revenue source and will contribute $32.2 million or
41.2% of the fund's budgeted revenues in FY2013. Appraisal values are established by the Central
Appraisal District of Collin County, and collections are certified at 100% by the Collin County Tax
Assessor -Collector's office. Due to new development and continued population growth, the budget also
reflects a 5.3% increase in sales tax from the revised 2011-2012 budget.
The General Fund ended FY2011-2012 with no change in the unassigned fund balance. This brings the
unassigned fund balance to an equivalent 85.4 days of operating expenditures, which exceeds the
amended estimate of 84.9 days, and is within the range of the City's financial policy of 60 to 90 days.
14
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
The 2012-2013 General Fund expenditure budget reflects a 9.6% increase from the revised 2011-2012
budget. This is primarily due to the City's continued management responsibilities for the City -owned Allen
Event Center, staffing increases for the newly constructed Fire Station #5, additional staffing impact in
Police for detention officers, and the full year impact in FY2013 of an additional 12 Police officers
approved for only a portion of FY2012. Some of the Event Center expenditure budget increase is
expected to be offset by additional revenue created by its operations. Also, the General Fund budget
allows for merit increases of 2%. The City Manager allowed departments to restore budget areas that
had been previously reduced, such as conferences and training, overtime, and certain employee
programs. These changes will allow the City 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 2009 and is currently
being revised in 2012, the Water and Sewer Fund budget anticipates a rate increase in February 2013
that ranges from 6.8% to 7.6% for a combined water and sewer bill depending upon the customer class.
The rate increase is necessary as North Texas Municipal Water District proceeds with capital expansion
plans that will increase the City's costs associated with water and sewer service from the District. Also
included in the FY2013 budget is $2.17 million to cash finance water and sewer capital projects and $1.0
million for the Administrative System Software Replacement. The Water and Sewer Fund is expected to
finish the fiscal year 2013 with approximately $10.3 million in working capital reserves resulting in 112.9
days of operating expenditures in reserve, which is within the City policy of 90 to 120 days. This healthy
balance is necessary to fund the future capital projects and ongoing maintenance that are planned to
ensure the water and sewer infrastructure will meet the demand when the City reaches buildout.
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. No Solid Waste Fund fee increases are planned in
2013. Rather than passing cost increases on to residents and businesses, in 2013 the Solid Waste
Fund's growth in customer base should result in an adequate increase in revenue to allow the fund to
absorb the impact of a Consumer Price Index cost increase that is contractually due to the City's waste
disposal provider, as well as a North Texas Municipal Water District disposal cost increase.
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, formerly called Chase Oaks, was shut down in late 2011 for a complete
renovation. The newly redesigned course, renamed as The Courses at Watters Creek, is expected to be
opened in January 2013 and is expected to improve the overall golf experience for the established
players and create an enthusiastic environment for new golfers of all ages. For 2013, the operating
expenses are anticipated to be approximately $2.276 million. These costs will be covered primarily by an
increase in revenue from additional rounds of golf being played at the renovated course, an increase in
food and beverage revenue, and an increase in sales at the club house retail store. Additional support of
about $177,000 from the General Fund may be necessary. The City and the community are eagerly
awaiting the opening of the renovated course.
For 2012-2013, the Risk Management Fund reflects a rise in health care costs, due largely to the
combination of an increase in claims for retired employees, changes in federally mandated health care
requirements, a maturing workforce, and inflationary pressures related to health care costs. In FY 2012-
2013, employees will see an 8% increase in their health insurance premiums, and the City will incur an
8% increase as well. This will allow the City to continue to contribute 79% of the total cost of employee
health insurance premiums with the employees making up the remaining 21%. For the third year,
$325,000 will be put into a trust fund for other postemployment benefits. Worker's compensation
premiums will remain relatively flat since the Risk Administrator has increased training to address areas
that had higher worker's compensation claims activity in the past.
15
CITY OF ALLEN, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(UNAUDITED)
Property and liability insurance rates for fiscal year 2013 are expected to remain relatively flat as
compared to fiscal year 2012 since there are no significant additions of newly insured property. Most of
the additional property was added in 2011 and 2012. The Risk Fund continues to be in good financial
condition.
The City of Allen's budget continues to be positively impacted by moderately strong growth and by
conservative fiscal management. The 2012-2013 budget reflects the efforts of the governing body and
city staff to address the need to provide services and facilities to support our vibrant and growing
community, while maintaining a strong financial position.
Request for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the City's finances. If you have questions about this report or need any additional information,
contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214)509-4626.
16
TUM
BASIC FINANCIAL STATEMENTS
TUM
CITY OF ALLEN, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
EXHIBIT 1
The Notes to Financial Statements are
an integral part of this statement.
17
PRIMARY GOVERNMENT
GOVERNMENTAL
BUSINESS -TYPE
COMPONENT
ACTIVITIES
ACTIVITIES
TOTAL
UNITS
ASSETS
Cash and cash equivalents
$
20,377,549
$
8,872,983
$
29,250,532
$
3,167,383
Investments
37,689,010
16,523,304
54,212,314
5,025,837
Receivables (net of allowance
for uncollectibles)
5,492,310
7,595,040
13,087,350
2,640,379
Internal balances
(988,616)
988,616
-
-
Prepaid items and other assets
202,158
11,050
213,208
6,298
Inventories
-
48,272
48,272
-
Restricted cash and cash equivalents
-
1,734,662
1,734,662
1,859,023
Capital assets:
Non -depreciable
156,617,975
6,132,559
162,750,534
4,532,403
Depreciable (net of depreciation)
366,623,314
104,289,182
470,912,496
1,108,722
Deferred charges
1,247,430
126,923
1,374,353
860,015
TOTAL ASSETS
$
587,261,130
$
146,322,591
$
733,583,721
$
19,200,060
LIABILITIES
Accounts payable
$
5,468,902
$
462,890
$
5,931,792
$
510,524
Accrued liabilities
2,475,636
149,956
2,625,592
9,655
Accrued interest payable
550,282
141,016
691,298
223,386
Customer deposits
-
1,536,319
1,536,319
-
Unearned revenue
49,157
-
49,157
-
Retainage payable
228,372
88,546
316,918
369,436
Non-current liabilities:
Due within one year
10,520,150
1,622,793
12,142,943
1,865,000
Due in more than one year
96,103,812
9,300,661
105,404,473
51,781,195
TOTAL LIABILITIES
$
115,396,311
$
13,302,181
$
128,698,492
$
54,759,196
NET ASSETS
Invested in capital assets
(net of related debt)
$
426,207,901
$
99,960,794
$
526,168,695
$
5,641,125
Restricted for:
Debt service
118,155
428,646
546,801
1,635,637
Capital projects
15,080,453
-
15,080,453
-
Tourism
2,301,283
-
2,301,283
-
Park acquisition and development
1,580,962
-
1,580,962
-
State and federal grants
368,137
-
368,137
-
Other purposes
1,593,423
-
1,593,423
-
Unrestricted
24,614,505
32,630,970
57,245,475
(42,835,898)
TOTAL NET ASSETS
$
471,864,819
$
133,020,410
$
604,885,229
$
(35,559,136)
The Notes to Financial Statements are
an integral part of this statement.
17
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental Activities:
General government
Public safety
Public works
Culture and recreation
Community development
Interest on long-term debt
Total governmental activities
Business -type Activities:
Water and sewer
Solid waste
Drainage
Golf course
Total business -type activities
TOTAL PRIMARY GOVERNMENT
Expenses
Revenues
Charges for Operating Grants Capital Grants
Services and Contributions and Contributions
$ 18,347,067
$ 712,432 $
- $
-
28,675,146
1,577,643
507,935
-
17,681,730
137,357
-
26,626,381
32,112,451
8,019,145
982,460
-
2,527,518
1,265,485
13,960
4,539,622
-
-
-
103,883,534
11,712,062
1,504,355
26,626,381
26,359,698
28,693,707
1,000,000
6,551,043
5,429,049
6,040,165
-
-
882,726
1,338,680
-
-
1,179,015
59,054
-
600,000
33,850,488
36,131,606
1,000,000
7,151,043
$ 137,734,022
$ 47,843,668 $
2,504,355 $
33,777,424
COMPONENT UNITS:
Allen Economic Development Corporation $ 7,001,305 $ - $ - $ -
Allen Community Development Corporation 12,239,172 - - -
TOTAL COMPONENT UNITS $ 19,240,477 $ $ $
The Notes to Financial Statements are
an integral part of this statement.
18
General revenues:
Taxes:
Property taxes, levied for general purposes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings
Gain on disposition of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET ASSETS
NET ASSETS, beginning of year
NET ASSETS, end of year
EXHIBIT 2
Net (Expense) Revenue and
Chanaes in Net Assets
$ - $ - $ - $ (7,001,305)
(12,239,172)
$ $ $ $ (19,240,477)
$ 42,042,753
Primary Government
$ 42,042,753
Governmental
Business - Type
COMPONENT
Activities
Activities
TOTAL UNITS
$ (17,634,635)
$ - $
(17,634,635) $ -
(26,589,568)
-
(26,589,568) -
9,082,008
-
9,082,008 -
(23,110,846)
-
(23,110,846) -
(1,248,073)
-
(1,248,073) -
(4,539,622)
-
(4,539,622) -
(64,040,736)
-
(64,040,736) -
-
9,885,052
9,885,052 -
-
611,116
611,116 -
-
455,954
455,954 -
-
(519,961)
(519,961) -
-
10,432,161
10,432,161 -
$ (64,040,736)
$ 10,432,161 $
(53,608,575) $
$ - $ - $ - $ (7,001,305)
(12,239,172)
$ $ $ $ (19,240,477)
$ 42,042,753
$ -
$ 42,042,753
$ -
15,038,519
-
15,038,519
14,793,606
6,150,419
-
6,150,419
-
1,229,996
-
1,229,996
-
1,622,633
-
1,622,633
-
538,863
197,613
736,476
70,098
40,509
-
40,509
-
1,802,747
411,268
2,214,015
1,824
5,377,207
(5,377,207)
-
-
73,843,646
(4,768,326)
69,075,320
14,865,528
9,802,910
5,663,835
15,466,745
(4,374,949)
462,061,909
127,356,575
589,418,484
(31,184,187)
$ 471,864,819
$ 133,020,410
$ 604,885,229
$ (35,559,136)
19
CITY OF ALLEN, TEXAS
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30, 2012
The Notes to Financial Statements are
an integral part of this statement.
20
GENERAL
DEBT
CAPITAL
GENERAL
SERVICE
PROJECTS
ASSETS
Cash and cash equivalents
$
5,092,403
$
555,745
$
5,268,066
Investments
11,050,686
330
10, 747,199
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes
216,590
74,485
-
Sales taxes
2,582,970
-
Accounts receivable
-
-
-
Accrued interest
133,598
37,877
85,736
Other
1,797,121
-
-
Special assessments
-
187,557
Prepaid items
2,081
-
-
TOTAL ASSETS
$
20,875,449
$
668,437
$
16,288,558
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
$
2,680,228
$
-
$
687,738
Accrued liabilities
1,176,633
-
445,042
Interest payable
-
54,185
-
Retainage payable
-
-
75,325
Deferred revenue
232,538
76,732
-
TOTAL LIABILITIES
4,089,399
130,917
1,208,105
FUND BALANCES
Nonspendable
Prepaid items
2,081
-
-
Restricted
Debt service
-
537,520
-
Capital projects
-
15,080,453
Tourism
-
Asset forfeiture
State and federal grants
Park acquisition and development
Tax increment financing agreement
-
Court technology and court security
69,880
Juvenile case manager
45,210
PEG fees
312,490
Photo red light enforcement
30,300
Cemetery trust
55,921
Assigned
Information technology
85,288
Municipal court
46,138
Public safety
2,052
Unassigned
16,136,690
-
-
TOTAL FUND BALANCES
16,786,050
537,520
15,080,453
TOTAL LIABILITIES AND FUND BALANCES
$
20,875,449
$
668,437
$
16,288,558
The Notes to Financial Statements are
an integral part of this statement.
20
GENERAL OTHER TOTAL
OBLIGATION GOVERNMENTAL GOVERNMENTAL
BOND FUNDS FUNDS
$ 2,411,383 $ 2,282,359 $ 15,609,956
4,620,750 2,989,345 29,408,310
291,075
2,582,970
- 222,696 222,696
55,089 28,017 340,317
- - 1,797,121
187,557
- 2,081
$ 7,087,222 $ 5,522,417 $ 50,442,083
$ 1,607,324 $ 114,466 $
5,089,756
- 21,979
1,643,654
- -
54,185
130,288 22,759
228,372
- 33,209
342,479
1,737,612 192,413
7,358,446
2,081
-
537,520
5,349,610 -
20,430,063
- 2,301,283
2,301,283
96,039
96,039
368,137
368,137
1,580,962
1,580, 962
983,583
983,583
-
69,880
45,210
312,490
30,300
55,921
85,288
46,138
2,052
-
16,136,690
5,349,610 5,330,004
43,083,637
$ 7,087,222 $ 5,522,417 $
50,442,083
EXHIBIT 3
21
CITY OF ALLEN, TEXAS EXHIBIT 4
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
Total fund balances - governmental funds $ 43,083,637
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet. 523,241,289
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements. 1,247,430
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. (496,097)
Internal service funds are used by management to charge the cost of certain
activities, 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 business -type activities ($988,616) and to capital assets ($6,648,203). 11,119,200
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 293,322
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. (106,623,962)
Net assets of governmental activities $ 471,864,819
The Notes to Financial Statements are
an integral part of this statement.
22
TUM
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
REVENUES
Ad valorem taxes, penalties and interest
Franchise taxes
Municipal sales tax
Licenses, permits and fees
Charges for services
Fines
Gifts and contributions
Hotel / motel fees
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current
General government
Public safety
Public works
Culture and recreation
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Refunding bonds issued
Premium on refunding bonds issued
Payment to refunded bond escrow agent
Proceeds from capital lease obligations
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
The Notes to Financial Statements are
an integral part of this statement.
23
GENERAL
DEBT CAPITAL
$ 30,403,717
$ 11,068,632 $ -
6,150,419
- -
14,673,992
- -
1,075,712
- -
9,852,902
- 198,782
1,648,194
- -
831,266
- 397,500
11,826
- 4,110,526
186,353
44,854 122,127
1,759,433
- 407,364
66,593,814
11,113,486 5,236,299
15,582,940 - 727,814
26,944,211 - -
3,694,124 - -
21,524,565 - -
2,194,634 - -
- - 1,415,061
9,130 7,625,000 -
148 4,562,817 -
cn nAn �Cn An nom OAS n 4 An OCG
(3,355,938) (1,074,331) 3,093,424
-
13,940,000
-
-
2,296,042
-
-
(16,050,003)
-
29,905
-
-
5,451,660
500,000
823,185
(1,026,222)
-
(1,702,793)
307
-
-
4,455,650
686,039
(879,608)
1,099,712
(388,292)
2,213,816
15,686,338
925,812
12,866,637
$ 16,786,050
$ 537,520
$ 15,080,453
EXHIBIT 5
GENERAL
OTHER
TOTAL
OBLIGATION
GOVERNMENTAL
GOVERNMENTAL
BOND
FUNDS
FUNDS
-
9,315
$ -
$ 572,903
$ 42,045,252
-
-
6,150,419
-
364,527
15,038,519
-
139,965
1,215,677
-
-
10,051,684
-
-
1,648,194
-
215,000
1,443,766
-
1,229,996
1,229,996
-
514,991
4,637,343
47,833
38,898
440,065
-
74,369
2,241,166
47,833
3,150,649
86,142,081
13,590
821,259
17,145,603
60,103
286,887
27,291,201
409,994
-
4,104,118
320
935,186
22,460,071
-
211,851
2,406,485
6,049,397
507,701
7,972,159
-
-
7,634,130
-
-
4,562,965
6,533,404
2,762,884
93,576,732
(6,485,571)
387,765
(7,434,651)
-
-
13,940,000
-
-
2,296,042
(16,050,003)
-
-
29,905
-
299,591
7,074,436
(256,465)
(614,246)
(3,599,726)
-
9,315
9,622
(256,465)
(305,340)
3,700,276
(6,742,036)
82,425
(3,734,375)
12,091,646
5,247,579
46,818,012
$ 5,349,610 $
5,330,004 $
43,083,637
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, 2012
Net change in fund balances - total governmental funds
$ (3,734,375)
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.
8,327,911
Governmental funds do not recognize contributed capital assets. However, in the
statement of activities the fair market value of those assets is recognized as revenue,
then allocated over their estimated useful lives and reported as depreciation expense.
22,050,695
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds.
(24,936,181)
The proceeds from issuance of long-term debt, e.g. refunding bonds ($13,940,000) and
capital lease obligations ($29,905), provides current financial resources to governmental
funds, while the payment of the principal of long-term debt ($7,634,130) and refunded
debt ($14,675,000) consumes the current financial resources of governmental funds.
8,339,225
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements.
(918,810)
Current year changes in long-term liability for compensated absences do not require
the use of current financial resources and, therefore, are not reported as expenditures
in governmental funds.
(392,071)
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.
20,966
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.
1,494,144
Governmental funds do not report disposition of capital assets. However, in the
statement of activities, the net book balance of the capital assets disposed is recorded
against the proceeds received. This amount is the net book balance of capital assets
disposed in the current period.
(15,654)
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. (432,940)
Change in Net Assets of Governmental activities $ 9,802,910
The Notes to Financial Statements are
an integral part of this statement.
25
CITY OF ALLEN, TEXAS EXHIBIT 7
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2012
The Notes to Financial Statements are
an integral part of this statement.
26
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
ACTIVITIES
WATER AND
SOLID
GOLF
INTERNAL SERVICE
SEWER
WASTE
DRAINAGE
COURSE
TOTAL
FUNDS
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 7,054,768
$ 1,064,462
$ 375,809
$ 377,944
$ 8,872,983
$ 4,767,593
Investments
13,786,622
2,126,049
610,506
127
16,523,304
8,280,700
Receivables, net of allowance for uncollectibles:
Accounts
6,489,187
349,809
89,611
250
6,928,857
-
Accrued interest
112,684
15,939
5,295
1,415
135,333
70,574
Other
415,316
115,534
-
-
530,850
-
Inventories
48,272
-
-
48,272
-
Prepaid items
-
11,050
11,050
200,077
Restricted cash and cash equivalents
1,734,662
1,734,662
Total current assets
29,641,511
3,671,793
1,081,221
390,786
34,785,311
13,318,944
NONCURRENT ASSETS
CAPITAL ASSETS
Land
4,072,882
-
-
-
4,072,882
-
Construction in progress
2,059,677
-
2,059,677
1,369,778
Other improvements
-
496,132
496,132
-
Towers, tanks, and pump stations
166,109,217
-
-
166,109,217
-
Vehicles
815,838
12,923
31,379
860,140
9,618,663
Machinery and equipment
4,260,318
8,392
430,682
563,641
5,263,033
1,842,460
Furniture and fixtures
11,114
-
-
10,894
22,008
-
Total capital assets
177,329,046
21,315
958,193
574,535
178,883,089
12,830,901
Less: accumulated depreciation
(67,372,365)
(20,505)
(535,407)
(533,071)
(68,461,348)
(6,182,698)
Capital assets, net of accumulated depreciation
109,956,681
810
422,786
41,464
110,421,741
6,648,203
DEFERRED CHARGES
Bond issuance costs, net of amortization
126,923
-
-
-
126,923
-
Total noncurrent assets
110,083,604
810
422,786
41,464
110,548,664
6,648,203
TOTAL ASSETS
$ 139,725,115
$ 3,672,603
$ 1,504,007
$ 432,250
$ 145,333,975
$ 19,967,147
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$ 159,530
$ 218,816
$ 28,832
$ 55,712
$ 462,890
$ 379,146
Accrued liabilities
87,313
27,519
8,108
27,016
149,956
-
Retainage payable
88,546
-
-
-
88,546
Accrued compensated absences - current
289,747
46,762
27,287
67,083
430,879
-
Incurred but not reported claims
-
-
-
-
-
831,982
Payable from restricted assets:
Revenue bonds payable - current
1,165,000
-
1,165,000
-
Capital leases payable - current
-
26,914
26,914
Accrued interest payable
141,016
-
141,016
Customer deposits payable
1,525,135
-
-
11,184
1,536,319
-
Total current liabilities
3,456,287
293,097
64,227
187,909
4,001,520
1,211,128
NONCURRENT LIABILITIES
Revenue bonds payable
9,254,483
-
-
-
9,254,483
-
Capital leases payable
-
-
-
14,550
14,550
Accrued compensated absences
10,185
2,639
2,020
16,784
31,628
Total noncurrent liabilities
9,264,668
2,639
2,020
31,334
9,300,661
TOTAL LIABILITIES
12,720,955
295,736
66,247
219,243
13,302,181
1,211,128
NET ASSETS
Invested in capital assets, net of related debt
99,537,198
810
422,786
-
99,960,794
6,648,203
Restricted for revenue bond principal and interest
428,646
-
-
-
428,646
-
Unrestricted
27,038,316
3,376,057
1,014,974
213,007
31,642,354
12,107,816
TOTAL NET ASSETS
$ 127,004,160
$ 3,376,867
$ 1,437,760
$ 213,007
$ 132,031,794
$ 18,756,019
The Notes to Financial Statements are
an integral part of this statement.
26
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE STATEMENT OF NET ASSETS
OF PROPRIETARY FUNDS TO THE
GOVERNMENT — WIDE STATEMENT OF NET ASSETS
AS OF SEPTEMBER 30, 2012
Amounts reported for business -type activities in the statement of net
assets are different because:
Total net assets per statement of net assets
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
EXHIBIT 8
$ 132,031,794
The assets and liabilities of internal service funds are included in the governmental
activities in the government -wide statement of net assets. The amount shown
represents the net receivable from internal service funds allocated to business -type
activities since the adoption of GASB 34. 988,616
Total net assets of business -type activities
The Notes to Financial Statements are
an integral part of this statement.
27
$ 133,020,410
CITY OF ALLEN, TEXAS EXHIBIT 9
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
The Notes to Financial Statements are
an integral part of this statement.
28
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
ACTIVITIES
WATER AND
SOLID
GOLF
INTERNAL
SEWER
WASTE
DRAINAGE
COURSE
TOTAL
SERVICE FUNDS
OPERATING REVENUES
Charges for sales and services:
Water sales
$ 16,665,581
$
$
$
$ 16,665,581
$
Sewer charges
11,307,807
11,307,807
Connection fees
138,735
138,735
Garbage collections
-
6,040,165
-
-
6,040,165
-
Service charges
581,584
-
57,996
59,054
698,634
10,060,546
Drainage fees
-
1,280,684
-
1,280,684
-
Gifts and contributions
1,000,000
-
-
600,000
1,600,000
-
Miscellaneous
358,370
48,540
554
3,804
411,268
1,239,469
Total operating revenues
30,052,077
6,088,705
1,339,234
662,858
38,142,874
11,300,015
OPERATING EXPENSES
Personnel services
3,904,753
425,712
423,883
813,795
5,568,143
471,610
Contractual services
15,682,441
4,891,898
150,962
186,510
20,911,811
9,888,832
Maintenance
236,620
2,687
207,240
26,803
473,350
-
Supplies
234,712
13,214
46,873
66,859
361,658
206,893
Depreciation
5,575,409
540
48,680
64,410
5,689,039
1,320,768
Other
185,714
94,998
5,088
20,638
306,438
Total operating expenses
25,819,649
5,429,049
882,726
1,179,015
33,310,439
11,888,103
OPERATING INCOME (LOSS)
4,232,428
659,656
456,508
(516,157)
4,832,435
(588,088)
NON-OPERATING REVENUES (EXPENSES)
Investment earnings
166,908
21,619
6,601
2,485
197,613
98,798
Interest expense
(489,999)
-
-
-
(489,999)
-
Gain on disposal of capital assets
30,887
Total non-operating revenues (expenses)
(323,091)
21,619
6,601
2,485
(292,386)
129,685
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
3,909,337
681,275
463,109
(513,672)
4,540,049
(458,403)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees
877,964
-
-
877,964
Capital contributions
5,673,079
-
5,673,079
-
Transfers from other funds
32,419
690,610
723,029
1,902,497
Transfers to other funds
(4,483,023)
(819,620)
(797,593)
(6,100,236)
-
Total capital contributions and transfers
2,100,439
(819,620)
(797,593)
690,610
1,173,836
1,902,497
CHANGE IN NET ASSETS
6,009,776
(138,345)
(334,484)
176,938
5,713,885
1,444,094
NET ASSETS, BEGINNING OF YEAR
120,994,384
3,515,212
1,772,244
36,069
126,317,909
17,311,925
NET ASSETS, END OF YEAR
$ 127,004,160
$ 3,376,867
$ 1,437,760
$ 213,007
$ 132,031,794
$ 18,756,019
The Notes to Financial Statements are
an integral part of this statement.
28
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS OF PROPRIETARY FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Amounts reported for business -type activities in the statement of activities
are different because:
Net change in fund net assets- total proprietary funds
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
EXHIBIT 10
$ 5,713,885
The net expenses of certain activities of internal service funds is allocated to
business -type activities. (50,050)
Change in net assets of business -type activities
The Notes to Financial Statements are
an integral part of this statement.
29
$ 5,663,835
CITY OF ALLEN, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
EXHIBIT 11
The Notes to Financial Statements are
an integral part of this statement.
30
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
GOVERNMENTAL
ACTIVITIES
WATER AND
SOLID
GOLF
INTERNAL
SEWER
WASTE
DRAINAGE
COURSE
TOTAL
SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 29,232,125
$ 5,994,980
$ 1,308,776
$ 670,072
$ 37,205,953
$ -
Cash received from transactions with other funds
-
-
-
-
-
11,353,102
Cash paid to employees for services
(3,889,122)
(415,253)
(419,374)
(802,274)
(5,526,023)
(471,610)
Cash paid for goods and services
(17,435,211)
(5,078,651)
(409,047)
(295,836)
(23,218,745)
(6,506,899)
Cash paid for claims
(3,432,437)
Net cash provided by (used in) operating activities
7,907,792
501,076
480,355
(428,038)
8,461,185
942,156
CASH FLOWS FROM NON -CAPITAL
FINANCING ACTIVITIES
Transfers in from other funds
32,419
-
-
690,610
723,029
1,902,497
Transfers out to other funds
(4,483,023)
(819,620)
(797,593)
(6,100,236)
Net cash provided by (used in) non -capital financing activities
(4,450,604)
(819,620)
(797,593)
690,610
(5,377,207)
1,902,497
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities
(1,235,000)
-
-
-
(1,235,000)
-
Interest and fees paid on long-term debt
(504,674)
-
-
-
(504,674)
-
Acquisition and construction of capital assets
(2,414,062)
-
-
-
(2,414,062)
(2,303,368)
Capital lease payment
-
-
-
(62,048)
(62,048)
-
Proceeds from sale of capital assets
-
-
-
-
-
30,887
Contributions from developers
877,964
877,964
Net cash used in capital and
related financial activities
(3,275,772)
(62,048)
(3,337,820)
(2,272,481)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
1,812,779
600,357
404,820
-
2,817,956
1,077,012
Proceeds from sale and maturities of investment securities
-
-
-
98,916
98,916
-
Interest on investments
114,296
21,619
5,564
1,070
142,549
69,853
Net cash provided by investing activities
1,927,075
621,976
410,384
99,986
3,059,421
1,146,865
NET CHANGE IN CASH AND CASH EQUIVALENTS
2,108,491
303,432
93,146
300,510
2,805,579
1,719,037
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
6,680,939
761,030
282,663
77,434
7,802,066
3,048,556
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 8,789,430
$ 1,064,462
$ 375,809
$ 377,944
$ 10,607,645
$ 4,767,593
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income (loss)
$ 4,232,428
$ 659,656
$ 456,508
$ (516,157)
$ 4,832,435
$ (588,088)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
5,611,911
540
48,680
64,410
5,725,541
1,320,768
Change in assets and liabilities:
Accounts receivable
(819,952)
(88,546)
(30,458)
7,214
(931,742)
-
Other receivables
-
(5,179)
-
-
(5,179)
-
Prepaids
-
-
-
(1,272)
(1,272)
(51,000)
Inventories
36,530
-
-
5,384
41,914
-
Accounts payable
(1,008,698)
(85,829)
(866)
862
(1,094,531)
260,476
Retainage payable
(210,930)
-
-
-
(210,930)
-
Accrued liabilities
16,285
9,975
1,982
-
28,242
-
Compensated absences
15,631
10,459
4,509
11,521
42,120
-
Utility deposits
34,587
34,587
Total adjustments
3,675,364
(158,580)
23,847
88,119
3,628,750
1,530,244
Net cash provided by (used in) operating activities
$ 7,907,792
$ 501,076
$ 480,355
$ (428,038)
$ 8,461,185
$ 942,156
NON-CASH INVESTING ACTIVITIES:
Change in the fair value of investments
$ 2,036
$
$
$
$ 2,036
$
NON-CASH FINANCING ACTIVITIES:
Contributions of capital assets from developers
$ 5,673,079
$
$
$
$ 5,673,079
$
Reconciliation of total cash to the statement of net assets
Cash and cash equivalents - current
$ 7,054,768
$ 1,064,462
$ 375,809
$ 377,944
$ 8,872,983
$ 4,767,593
Restricted cash and cash equivalents
1,734,662
-
-
-
1,734,662
-
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 8,789,430
$ 1,064,462
$ 375,809
$ 377,944
$ 10,607,645
$ 4,767,593
The Notes to Financial Statements are
an integral part of this statement.
30
CITY OF ALLEN, TEXAS
STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2012
EXHIBIT 12
The Notes to Financial Statements are
an integral part of this statement.
31
ALLEN
ALLEN
ECONOMIC
COMMUNITY
DEVELOPMENT
DEVELOPMENT
CORPORATION
CORPORATION
TOTALS
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
2,009,025
$ 1,158,358
$
3,167,383
Investments
3,718,159
1,307,678
5,025,837
Sales tax receivable
1,291,485
1,291,485
2,582,970
Accounts receivable
2,153
2,153
4,306
Accrued interest receivable
23,593
29,510
53,103
Prepaid items
6,298
-
6,298
Restricted cash and cash equivalents
752,727
1,106,296
1,859,023
Total current assets
7,803,440
4,895,480
12,698,920
NONCURRENT ASSETS
CAPITAL ASSETS
Land
4,324,525
-
4,324,525
Land improvements
207,878
-
207,878
Furniture and fixtures
66,075
-
66,075
Improvements other than buildings
3,128,689
-3,128,689
Total capital assets
7,727,167
-
7,727,167
Less: accumulated depreciation
(2,086,042)
-
(2,086,042)
Capital assets, net of accumulated depreciation
5,641,125
-
5,641,125
DEFERRED CHARGES
Bond issuance costs, net of amortization
346,610
513,405
860,015
Total noncurrent assets
5,987,735
513,405
6,501,140
TOTAL ASSETS
$
13,791,175
$ 5,408,885
$
19,200,060
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$
182,509
$ 328,015
$
510,524
Accrued interest payable
64,543
158,843
223,386
Accrued and other liabilities
9,655
-
9,655
Retainage payable
-
369,436
369,436
Revenue bonds payable - current
820,000
1,045,000
1,865,000
Total current liabilities
1,076,707
1,901,294
2,978,001
NONCURRENT LIABILITIES
Revenue bonds payable (net of unamortized
discounts and deferred amount on refunding)
18,263,030
33,518,165
51,781,195
Total noncurrent liabilities
18,263,030
33,518,165
51,781,195
TOTAL LIABILITIES
19,339,737
35,419,459
54,759,196
NET ASSETS (ACCUMULATED DEFICIT)
Invested in capital assets,
net of related debt
5,641,125
-
5,641,125
Restricted for debt service
688,184
947,453
1,635,637
Unrestricted
(11,877,871)
(30,958,027)
(42,835,898)
TOTAL NET ASSETS (ACCUMULATED DEFICIT)
$
(5,548,562)
$ (30,010,574)
$
(35,559,136)
The Notes to Financial Statements are
an integral part of this statement.
31
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Function/Program Activities
COMPONENT UNITS
Allen Economic
Development Corporation
Allen Community
Development Corporation
TOTAL COMPONENT UNITS
Program Revenues
Charges for
Expenses Services
Net (Expense) Revenue and
Changes in Net Assets
COMPONENT UNITS
ALLEN
Operating ECONOMIC
Grants and DEVELOPMENT
Contributions CORPORATION
ALLEN
COMMUNITY
DEVELOPMENT
CORPORATION
EXHIBIT 13
TOTALS
$ 7,001,305 $ $ $ (7,001,305) $ - $ (7,001,305)
12,239,172 (12,239,172) (12,239,172)
$ 19,240,477 $ $ $ (7,001,305) $ (12,239,172) $ (19,240,477)
The Notes to Financial Statements are
an integral part of this statement.
General revenues:
Sales taxes
Interest on investments
Miscellaneous
Total general revenues
CHANGE IN NET DEFICIT
NET DEFICIT, beginning of year
NET DEFICIT, end of year
32
$ 7,396,803 $ 7,396,803 $ 14,793,606
31,961 38,137 70,098
1,824 - 1,824
7,430,588 7,434,940 14,865,528
429,283 (4,804,232) (4,374,949)
(5,977,845) (25,206,342) (31,184,187)
$ (5,548,562) $ (30,010,574) $ (35,559,136)
cum
NOTES TO FINANCIAL STATEMENTS
cum
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Allen (the City) was incorporated in 1953, under the provisions of Chapter 11,
Title 28, Texas Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a
home rule city operating under a Council -Manager form of government. The City provides such
services as are authorized by its charter to advance the welfare, health, comfort, safety and
convenience of its inhabitants.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally accepted in
the United States of America applicable to state and local governments. Generally accepted
accounting principles for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units and by the
Financial Accounting Standards Board (when applicable). As allowed by Governmental
Accounting and Financial Reporting Standards, the City has elected not to apply Financial
Accounting Standards Board Statements and Interpretations, Accounting Principles Board
Opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued
after November 30, 1989. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, the
financial statements of the City include the primary government and organizations for which the
primary government is financially accountable and other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause
the reporting entity's financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if its officials appoint a voting
majority of an organization's governing body and either it is able to impose its will on that
organization or there is a potential for the organization to provide specific financial benefits to, or
to impose specific financial burdens on, the primary government. A primary government may
also be financially accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects, or activities of, or the level of services performed or provided by,
the organization. A financial benefit or burden relationship exists if the primary government (a) is
entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the
obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization.
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is
unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval by the primary government.
33
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Financial Reporting Entity — Continued
The following entities were found to be component units of the City and are included in the basic
financial statements:
Allen Economic Development Corporation (AEDC) - The AEDC is responsible for aiding,
promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) - The ACDC is responsible for
supporting the improvements in community parks and recreation, streets and sidewalks,
public safety and the community library.
The members of both the AEDC's and ACDC's Boards of Directors are appointed by the City
Council. Both the AEDC and ACDC are fiscally dependent upon the City as the City Council
approves their budgets and must approve any debt issuance. However, the component units
do not qualify for blending because the component services directly benefit the community
rather than the City itself. The AEDC and ACDC are 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 assets and the statement of
activities) report information on all of the non -fiduciary activities of the primary government and its
component units. The effect of interfund activity, within the governmental and business -type
activities columns, has been removed from these statements; however, interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges for support.
Additionally, the primary government is reported separately from the legally separate component
units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given program
and 2) operating or capital grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Taxes and other items not 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.
34
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
Governmental funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds is on the sources, uses and balances
of current financial resources. The City has presented the following major governmental funds:
General Fund -
The General Fund is the general operating fund of the City. It is used to account for all
financial resources not accounted for in other funds. All general tax revenues and other
receipts that are not restricted by law or contractual agreement to some other fund are
accounted for in this fund. General operating expenditures, fixed charges and capital
improvement costs that are not paid through other funds are paid from the General Fund.
Debt Service Fund -
The Debt Service Fund is used to account for the accumulation of financial resources for the
payment of principal, interest and related costs on general long-term debt paid primarily from
taxes levied by the City. The fund balance of the Debt Service Fund is reserved to signify the
amounts that are restricted exclusively for debt service expenditures.
General Capital Projects Fund -
The General Capital Projects Fund is used to account for resources used for the acquisition
and/or construction of capital facilities by the City, except those financed by proprietary funds
and not accounted for by another capital projects fund.
General Obligation Bond Capital Projects Fund -
To account for financing, acquisitions, and construction of improvements to City facilities and
infrastructure not accounted for by other bond funds.
Proprietary Funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position and cash flow. All assets and liabilities are included on the Statement of Net
Assets. The City has presented the following major proprietary funds:
Enterprise Funds:
Water and Sewer Fund -
The Water and Sewer Fund is used to account for the provision of water and sewer services
to the residents of the City. Activities for the fund include administration, operations and
maintenance of the water and sewer system and billing and collection activities. The fund
also accounts for the accumulation of resources for, and the payment of, long-term debt
principal and interest for water and sewer debt. All costs are financed through charges to
utility customers with rates reviewed regularly and adjusted if necessary to ensure integrity of
the fund.
35
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
Solid Waste Fund -
The Solid Waste Fund is used to account for the provision of solid waste services to residents
of the City.
Drainage Fund -
The Drainage Fund is used to account for the provision of developing and maintaining proper
drainage services to the residents of the City.
Golf Course Fund -
The Golf Course Fund is used to account for activities associated with the operations of the
Chase Oaks Golf Course purchased by the City in October 2004.
Internal Service Funds:
Replacement Fund -
The Replacement Fund is an internal service fund that accounts for the costs associated with
the acquisition and replacement of vehicles, machinery, and equipment through the rental of
such items to other departments.
Risk Management Fund -
The Risk Management Fund accounts for the costs associated workers compensation,
liability and property insurance and medical and dental programs established for City
employees and their covered dependents.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for the proprietary funds include the cost of personnel and contractual services,
supplies and 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.
36
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Measurement Focus and Basis of Accounting — Continued
The government -wide statements and fund financial statements for proprietary funds are reported
using the economic resources measurement focus and the accrual basis of accounting. The
economic resources measurement focus means all assets and liabilities (whether current or non-
current) are included on the statement of net assets and the operating statements present
increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water and sewer services
which are accrued. Expenses are recognized at the time the liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual;
i.e., when they become both measurable and available. "Measurable" means the amount of the
transaction can be determined and "available" means collectible within the current period or soon
enough thereafter to be used to pay 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, 2012
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 2011 levy was
based is $7,602,180,470. Taxes are due on October 1 and are delinquent after the following
January 31.
The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to
$2.50 per $100 of assessed valuation for general governmental services, including the payment
of principal and interest on general obligation long-term debt. The combined tax rate to finance
general governmental services including the payment of principal and interest on long-term debt
for the year ended September 30, 2012 was $0.553 per $100 of assessed valuation. In Texas,
countywide central appraisal districts are required to assess all property within the appraisal
district on the basis of 100% of its appraised value and are prohibited from applying any
assessment ratios. The value of property within the appraisal district must be reviewed every
three years; however, the City may, at its own expense, require annual reviews of appraised
values.
The City may challenge appraised values established by the appraisal district through various
appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates
on City property. However, if the effective tax rate, excluding tax rates for bonds and other
contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by
more than 8%, qualified voters of the City may petition for an election to determine whether to
limit the tax rate to no more than 8% above the tax rate of the previous year.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are reported as "due to/from other funds". Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances".
Transactions Between Funds and Between Funds and Component Units
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are 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,
2012, ACDC contributed $306,800 to the General Fund which includes funds for administrative
costs and for the Allen U.S.A. 2011 Celebration, and AEDC contributed $91,668 to the General
Fund. These revenues were reflected as grants and contributions for the primary government in
the government -wide statement of activities.
38
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Inventories and Prepaid Items
Inventories, which are expended when consumed, are recorded using the average cost method,
and are valued at cost.
Prepaid items are for payments made by the City in the current year to provide services occurring
in the subsequent fiscal year. Prepaid items are reported as nonspendable fund balance in the
governmental funds in the fund level financial statements to signify that a portion of fund balance
is not available for other subsequent expenditures.
Special Assessments
The City has the authority to make special assessments to property owners as part of the
financing of capital improvements. Such assessments are recorded in the capital projects fund as
receivables when assessed and are recognized as revenue when both the measurable and
available criteria have been met (generally when collected).
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in
the applicable governmental or business -type activities columns in the government -wide financial
statements and in the fund financial statements for proprietary funds. All capital assets are valued
at historical cost or estimated historical cost if actual historical cost is not available. Donated
assets are valued at fair market value on the date donated. The costs of normal repairs and
maintenance that do not add to the value of the asset or materially extend the asset lives are not
capitalized. Renewals and betterments are capitalized. Interest has not been capitalized during
the construction period on property, plant and equipment.
Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Depreciation has been calculated on each class of depreciable property using the straight-line
method. Estimated useful lives are as follows:
Buildings
15 - 40 Years
Towers, tanks, and pump stations
30 Years
Infrastructure
10 - 50 Years
Machinery and equipment
3 - 15 Years
Vehicles
2 - 15 years
Library books
5 Years
Furniture and fixture
5 Years
Other improvements
2 - 30 Years
The City has established the Replacement Fund to account for the replacement of the City -owned
vehicle, machinery, and equipment. Charges for use in the form of user payments are made by
City departments to the Replacement Fund to provide for future acquisitions and replacements.
39
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Compensated Absences
City employees earn vacation and sick leave, which may either be taken or accumulated, up to
certain amounts, until paid upon retirement or termination. Upon termination or retirement, an
employee is reimbursed up to a maximum number of hours of vacation pay and sick leave based
upon the years of service. Accumulated vacation and sick leave is accrued when incurred in the
government -wide, proprietary, and fiduciary fund financial statements.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital
assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowing used for the acquisition, construction or improvements
of those assets, and adding back unspent proceeds. Net assets are reported as restricted when
there are limitations imposed on their use either through the enabling legislations adopted by the
City or through external restrictions imposed by creditors, grantors or laws or regulations of other
governments.
Fund Balance
Fund balance classifications, under GASB 54 are nonspendable, restricted, committed, assigned,
and unassigned. These classifications reflect not only the nature of funds, but also provide clarity
to the level of restriction placed upon fund balance. Fund balance can have different levels of
constraint, such as external versus internal compliance requirements. Unassigned fund balance
is a residual classification within the General Fund. The General Fund should be the only fund
that reports a positive unassigned balance. In all other funds, unassigned is limited to negative
residual fund balance.
The City classifies governmental fund balances as follows
Nonspendable -- includes amounts that cannot be spent because they are either not in spendable
form, or, for legal or contractual reasons, must be kept intact. This classification includes
inventories, prepaid items and long term receivables.
Restricted -- includes fund balance amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts restricted due to constitutional
provisions or enabling legislation. This classification includes retirement of long term debt,
construction programs, and other federal and state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the City through formal action of the highest level of decision making
authority. Committed fund balance is reported pursuant to resolution passed by the City Council.
40
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
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 Council 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, 2012, with collateral required by state statutes. At year-end, the carrying amount of
the City's deposits was $8,405,847 and the bank balance was $10,258,635. Of the bank balance,
federal depository insurance covered $4,266,518 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, 2012 was $45,400.
The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were
$678,615 and $644,859, respectively, with no corresponding bank balances as they are pooled with
the City's deposits. AEDC's petty cash balance at September 30, 2012 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, 2012
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 T,
Certificates of Deposit
Repurchase Agreements
U. S. Treasure Obligations
Municipal Investment Pool
Commercial Bank Savings Account
U. S. Government Securities (non -callable)
U. S. Government Securities (callable)
U. S. Government Sponsored Corp.
Instruments: non -callable
U. S. Government Sponsored Corp.
Instruments: callable
Commercial Paper
Bankers Acceptance
Guaranteed Investment Contracts
State or Local Governmental Obligations
Disclosures Relating To Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Investments with interest rates that are fixed for longer periods of time are
more likely to be subject to increased variability in their fair values due to changes in the market
interest rates. The City manages its exposure to market price changes by avoiding over -
concentration of assets in a specific maturity sector, limitation of average maturity of operating
funds investments to less than eighteen months, and avoidance of over -concentration of assets in
specific instruments other than U.S. Treasury Securities and authorized investment pools.
As of September 30, 2012, the City had the following investments:
Fair Value Weighted
Investment Primary Avg. Maturity
Type Government AEDC ACDC Total (Years)
FFCB
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
15%
None
5 years
100%
None
5 years
70%
None
5 years
75%
None
5 years
70%
None
5 years
20%
None
5 years
10%
None
5 years
25%
None
5 years
30%
None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Investments with interest rates that are fixed for longer periods of time are
more likely to be subject to increased variability in their fair values due to changes in the market
interest rates. The City manages its exposure to market price changes by avoiding over -
concentration of assets in a specific maturity sector, limitation of average maturity of operating
funds investments to less than eighteen months, and avoidance of over -concentration of assets in
specific instruments other than U.S. Treasury Securities and authorized investment pools.
As of September 30, 2012, the City had the following investments:
Fair Value Weighted
Investment Primary Avg. Maturity
Type Government AEDC ACDC Total (Years)
FFCB
$ 920,990 $
63,040
$ 22,170
$ 1,006,200
4.51
FHLB
3,679,152
252,114
88,664
4,019,930
2.93
FHLMC
7,347,653
504,331
177,386
8,029,370
2.92
FNMA
5,527,998
378,891
133,249
6,040,138
4.30
Municipal Bond
972,706
66,875
23,520
1,063,101
2.43
Certificates of Deposit
35,763,815
2,452,908
862,689
39,079,412
0.84
Texpool
22,533,947
2,116,793
1,586,039
26,236,779
0.003
Total
$ 76,746,261 $
5,834,952
$ 2,893,717
$ 85,474,930
42
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES — CONTINUED
Disclosures Relating To Credit Risk
The City's Investment policy, in conjunction with state law, specifies the type of credit rating of all
authorized investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a
nationally recognized statistical rating organization. The City reduces the risk of issuer default by
limiting investments to those instruments allowed by the Public Funds Investment Act, Chapter
2256, Texas Government Code. The City's investments in U.S. Agency securities (FHLB,
FHLMC, and FNMA) are rated AA+ by Standard & Poor's and Aaa by Moody's Investors Service.
The City's investments in municipal bonds are rated AA- by Standard and 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, 2012.
Concentration of Credit Risk
The City's investment policy does not contain stipulations regarding the amount of funds that can
be invested in any single issuer. As of September 30, 2012, with the exception of funds invested
at Texpool, the following table represents 5% or more of the City's investments.
Issuer Investment Type
FNMA Federal agency securities
FHLMC Federal agency securities
Custodial Credit Risk
Reported Amount Percentage
$ 6,040,138 7.07%
8,029,370 9.39%
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, 2012, the City's deposits with financial institutions above the federal
depository limits were fully collateralized.
43
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 3. RECEIVABLES
Receivables at September 30, 2012 for both governmental and business -type activities, including the
applicable allowances for uncollectible accounts, consist of the following:
Property Sales Accrued
Tax Taxes Accounts Interest Assessments Other Total
General Fund
Debt Service
General Capital Projects
G.O. Bond Fund
Nonmajor Governmental Funds
Water and Sewer
Solid Waste
Drainage
Golf Course
Internal Service Funds
Gross Receivables
Less: Allowance for
Uncollectibles
Total Net Receivables,
Primary Government
Component Units
$ 350,605 $2,582,970 $ $ 133,598 $ $ 2,619,479 $ 5,686,652
149,615 37,877 - 187,492
- 85,736 187,557 273,293
55,089 - 55,089
222,696 28,017 - 250,713
6,503,768 112,684 415,316 7,031,768
349,809 15,939 115,534 481,282
89,611 5,295 - 94,906
250 1,415 1,665
- 70,574 - - 70,574
500,220 2,582,970 7,166,134 546,224 187,557 3,150,329 14,133,434
209,145 - (14,581) - - (822,358) (1,046,084)
$ 291,075 $2,582,970 $ 7,151,553 $ 546,224 $ 187,557 $ 2,327,971 $13,087,350
$ - $2,582,970 $ - $ 53,103 $ - $ 4,306 $ 2,640,379
The Water and Sewer Fund accounts receivable include unbilled charges for services rendered
through September 30, 2012.
44
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2012 was as follows:
Governmental Activities
45
Balance
Sales or
Balance
September 30,
Other
Adjustments/
September 30,
2011
Additions
Dispositions
Transfers
2012
Governmental Funds: -
General capital assets
not being depreciated:
Land and land improvements
$ 120,411,968
$ 5,734,806
$
$ -
$ 126,146,774
Construction in progress
31,572,838
14,071,769
(16,543,184)
29,101,423
Total capital assets
not being depreciated
151,984,806
19,806,575
(16,543,184)
155,248,197
General capital assets
being depreciated:
Buildings
114,096,303
-
13,542,873
127,639,176
Improvements
other than buildings
427,529,266
9,384,062
3,000,311
439,913,639
Furniture and fixtures
7,933,223
125,358
-
8,058,581
Vehicles
2,728,453
36,836
(15,654)
2,749,635
Library books
1,660,812
178,885
(348,969)
1,490,728
Machinery and equipment
9,520,954
846,890
(28,494)
-
10,339,350
Total capital assets being
depreciated
563,469,011
10,572,031
(393,117)
16,543,184
590,191,109
Less accumulated
depreciation for:
Buildings
(15,959,898)
(3,126,756)
-
(19,086,654)
Improvements
other than buildings
(174,863,515)
(19,022,325)
(193,885,840)
Furniture and fixtures
(4,375,114)
(1,036,498)
(5,411,612)
Vehicles
(2,129,488)
(143,996)
-
(2,273,484)
Library Books
(1,209,947)
(178,148)
348,969
(1,039,126)
Machinery and equipment
(5,749,540)
(1,428,458)
28,494
(7,149,504)
Total accumulated
depreciation
(204,287,502)
(24,936,181)
377,463
(228,846,220)
Total general capital assets
being depreciated, net
359,181,509
(14,364,150)
(15,654)
16,543,184
361,344,889
General capital assets, net
$ 511,166,315
$ 5,442,425$
(15,654)
$
$ 516,593,086
45
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 4. CAPITAL ASSETS — CONTINUED
Balance
September 30,
2011
Additions
Sales or
Other
Dispositions
Balance
Adjustments/ September 30,
Transfers 2012
Internal Service Funds:
Internal service funds assets
not being depreciated:
Construction in progress $ 1,300,830 $ 381,593 $ $ (312,645) $ 1,369,778
Total capital assets
not being depreciated 1,300,830 381,593 (312,645) 1,369,778
Internal service
1,006,876
(24,276)
6,648,203
assets being depreciated:
$ 6,449,301
$ (39,930)
$
$ 523,241,289
Vehicles
7,730,725
1,828,934
(253,641) 312,645
9,618,663
Machinery and equipment
1,758,627
121,544
(37,711) -
1,842,460
Total internal service
3,434,090
(8,289,803)
2,059,677
assets being depreciated
9,489,352
1,950,478
(291,352) 312,645
11,461,123
Less accumulated
depreciation for:
4,273,079
8,289,803
166,109,217
Vehicles
(3,913,487)
(1,116,153)
246,137 -
(4,783,503)
Machinery and equipment
(1,211,092)
(209,042)
20,939 -
(1,399,195)
Total accumulated
-
(27,995)
-
815,838
depreciation
(5,124,579)
(1,325,195)
267,076
(6,182,698)
Total Internal service funds
capital assets being depreciated, net
4,364,773
625,283
(24,276) 312,645
5,278,425
Total Internal service funds
capital assets, net
Governmental activities
capital assets, net
Business -Type Activities
Water and Sewer Activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not
being depreciated
Capital Assets Being depreciated:
Towers, tanks, & pumps stations
Furniture and fixtures
Machinery and equipment
Vehicles
Total capital assets
being depreciated
Less accumulated depreciation for:
Towers, tanks, & pumps stations
Furniture and fixtures
Machinery and equipment
Vehicles
Total accumulated
depreciation
Total capital assets
being depreciated, net
Water and sewer activities
capital assets, net
5,665,603
1,006,876
(24,276)
6,648,203
$ 516,831,918
$ 6,449,301
$ (39,930)
$
$ 523,241,289
$ 4,072,882
$ -
$
$
$ 4,072,882
6,915,390
3,434,090
(8,289,803)
2,059,677
10,988,272
3,434,090
(8,289,803)
6,132,559
153,546,335
4,273,079
8,289,803
166,109,217
11,114
-
-
11,114
4,153,586
379,972
(273,240)
4,260,318
843,833
-
(27,995)
-
815,838
158,554,868
4,653,051
(301,235)
8,289,803
171,196,487
(58,683,040)
(5,113,635)
-
(63,796,675)
(11,114)
(11,114)
(2,782,218)
(411,598)
273,240
(2,920,576)
(621,819)
(50,176)
27,995
(644,000)
(62,098,191)
(5,575,409)
301,235
(67,372,365)
96,456,677
(922,358)
-
8,289,803
103,824,122
$ 107,444,949
$ 2,511,732
$ -
$ -
$ 109,956,681
46
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 4. CAPITAL ASSETS - CONTINUED
Balance
September 30,
2011
Solid Waste Activities:
Capital assets being depreciated
Additions
Sales or
Other
Dispositions
Balance
Adjustments/ September 30,
Transfers 2012
Machinery and equipment
$ 8,392
$
$ $
$ 8,392
Vehicles
12,923
12,923
Total capital assets
being depreciated
21,315
21,315
Less accumulated depreciation for:
Machinery and equipment
(7,042)
(540)
(7,582)
Vehicles
(12,923)
(12,923)
Total accumulated
depreciation
(19,965)
(540)
(20,505)
Solid waste activities
capital assets, net
$ 1,350
$ (540)
$ $
$ 810
Drainage Activities:
Capital assets being depreciated:
Other improvements
$ 496,132
$
$ $
$ 496,132
Vehicles
43,933
(12,554)
31,379
Machinery and equipment
430,682
430,682
Total capital assets
being depreciated
970,747
(12,554)
958,193
Less accumulated
depreciation for:
Other improvements
(104,244)
(12,264)
-
(116,508)
Vehicles
(35,523)
(3,364)
12,554
(26,333)
Machinery and equipment
(359,514)
(33,052)
(392,566)
Total accumulated
depreciation
(499,281)
(48,680)
12,554
(535,407)
Drainage activities
capital assets, net
$ 471,466
$ (48,680)
$ - $
$ 422,786
Golf Course Activities:
Capital assets being depreciated:
Machinery and equipment
$ 563,641
$
$ $
$ 563,641
Furniture and fixtures
10,894
10,894
Total capital assets
being depreciated
574,535
574,535
Less accumulated
depreciation for:
Machinery and equipment
(458,856)
(63,321)
(522,177)
Furniture and fixtures
(9,805)
(1,089)
(10,894)
Total accumulated
depreciation
(468,661)
(64,410)
(533,071)
Golf course activities
capital assets, net
105,874
(64,410)
41,464
Business -type activities
capital assets, net
$108,023,639
$ 2,398,102
$ $
$ 110,421,741
47
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 4. CAPITAL ASSETS — CONTINUED
Depreciation expense was charged as direct expense to programs of the primary government as
follows:
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Community development
Total depreciation expense - General capital assets
Internal Service Funds
Total depreciation expense - Governmental activities
48
$ 799,349
850,215
13,980,663
9,210,028
95,926
24,936,181
1,325,195
$ 26,261,376
Balance
Sales or
Balance
September 30,
Other
Adjustments/
September 30,
2011
Additions Dispositions
Transfers
2012
Component Units:
Capital assets not being depreciated:
Land
$ 4,324,525
$ $
$
$ 4,324,525
Land improvements
207,878
207,878
Construction in progress
1,392,749
7,251
(1,400,000)
-
Total capital assets
not being depreciated
5,925,152
7,251
(1,400,000)
4,532,403
Capital assets being depreciated:
Improvements other
than buildings
3,128,689
-
3,128,689
Furniture and fixtures
66,075
66,075
Total capital assets being
depreciated
3,194,764
3,194,764
Less accumulated depreciation for:
Buildings
(1,873,241)
(153,333)
(2,026,574)
Furniture and fixtures
(46,253)
(13,215)
(59,468)
Total accumulated depreciation
(1,919,494)
(166,548)
(2,086,042)
Total capital assets being depreciated, net
1,275,270
(166,548)
1,108,722
Component units capital assets, net
$ 7,200,422
$ (159,297) $
1_1,400,000i
$ 5,641,125
Depreciation expense was charged as direct expense to programs of the primary government as
follows:
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Community development
Total depreciation expense - General capital assets
Internal Service Funds
Total depreciation expense - Governmental activities
48
$ 799,349
850,215
13,980,663
9,210,028
95,926
24,936,181
1,325,195
$ 26,261,376
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 4. CAPITAL ASSETS — CONTINUED
Business -type activities:
Water and sewer
Solid waste
Drainage utility
Golf course
Total depreciation expense - Business -type activities
Component units:
Allen Economic Development Corporation
$ 5,575,409
540
48,680
64,410
5,689,039
$ 166,548
Outstanding commitments at September 30, 2012, under authorized construction contracts were
$1,813,590. These outstanding commitments for capital projects will be funded from unexpended
bond proceeds and additional general obligation bonds. Authorization to issue additional bonds may
be requested from the qualified voters of the City.
NOTE 5. LONG-TERM DEBT
At September 30, 2012, bonds payable consisted of the following individual issues:
General Obligation Bonds:
$7,210,000 Series 2003 Bonds due in annual installments
of $175,000 to $515,000 through September 1, 2023;
interest at 2.75% to 4.25°/x. $ 350,000
$11,700,000 Series 2004 Bonds due in annual installments
of $395,000 to $790,000 through September 1, 2024;
interest at 4.0% to 5.25°/x. 1,105,000
$32,330,000 Series 2005 Refunding Bonds due in annual
installments of $75,000 to $3,505,000 through August 15,
2021; interest at 3.0% to 5.00%. 23,380,000
49
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT- CONTINUED
General Obligation Bonds —continued
$1,595,000 Series 2006 Bonds due in annual installments
of $50,000 to $115,000 through August 15, 2026;
interest at 4.0% to 4.20%.
$ 1,245,000
$11,145,000 Series 2007 Bonds due in annual installments
of $380,000 to $815,000 through August 15, 2027;
interest at 4.0% to 4.60%.
9,120,000
$10,185,000 Series 2008 Bonds due in annual installments
of $250,000 to $540,885 through August 15, 2028;
interest at 3.5% to 4.60%.
8,750,000
$15,400,000 Series 2009 Bonds due in annual installments
of $435,000 to $1,140,000 through August 15, 2028;
interest at 2.5% to 4.5%.
13,715,000
$12,000,000 Series 2010 Bonds due in annual installments
of $370,000 to $865,000 through August 15, 2029;
interest at 2.0% to 4.0%.
11,130,000
$8,785,000 Series 2010A Refunding Bonds due in annual
installments of $110,000 to $970,000 through August 15,
2022; interest at 2.0% to 3.0%.
8,535,000
$8,840,000 Series 2011 Refunding and Improvement Bonds
due in annual installments of $255,000 to $795,000 through
August 15, 2030; interest at 2.0% to 4.25%.
8,170,000
$13,865,000 Series 2012 Refunding and Improvement Bonds
due in annual installments of $350,000 to $1,145,000 through
August 15, 2024; interest at 2.0% to 5.0%.
13,865,000
$ 99,365,000
Certificates of Obligation:
$4,735,000 Series 2004A Combination Tax & Revenue
Golf Course Certificates of Obligation due in annual
installments of $165,000 to $390,000 through
September 1, 2024; interest at 3.50% to 5.00%.
$ 460,000
$765,000 Series 2004B Combination Tax & Revenue
Golf Course Certificates of Obligation due in annual
installments of $25,000 to $70,000 through
September 1, 2024;interest at 4.875% to 5.50%.
600,000
$ 1,060,000
Water and Sewer Revenue Bonds:
$6,710,000 Series 2004 Bonds due in annual installments
of $175,000 to $490,000 through June 1, 2024; interest
at 4.75% to 5.0%. $ 3,345,000
$4,300,000 Series 2005 Bonds due in annual installments
of $140,000 to $310,000 through June 1, 2025; interest
at 3.75% to 6.625%. 3,170,000
$5,795,000 Series 2009 Refunding Bonds due installments
$575,000 to $630,000 through June 1, 2019;
interest at 1.2% to 3.5%. 4,020,000
$ 10,535,000
50
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT— CONTINUED
AEDC Sales Tax Revenue Bonds:
$15,335,000 Series 2008 Sales Tax Revenue Bonds
due in annual installments of $390,000 to $940,000
through September 1, 2032; interest at 3.50% to 4.50°/x.
$1,605,000 Series 2010A Sales Tax Revenue Bonds
due in annual installments of $440,000 to $595,000
beginning September 1, 2023 through September 1,
2025; interest at 4.00°/x.
$5,165,000 Series 2010B Sales Tax Revenue Bonds
due in annual installments of $105,000 to $520,000
through September 1, 2023; interest at 1.35% to 5.10%.
ACDC Sales Tax Revenue Bonds:
$5,600,000 Series 2006 Refunding Bonds due in
annual installments of $290,000 to $785,000 through
September 1, 2019; interest at 3.75% to 5.0%.
$32,835,000 Series 2008 Sales Tax Revenue Bonds
due in annual installments of $345,000 to $2,785,000
through September 1, 2032; interest at 4.00% to 6.00%.
51
$ 13,085,000
1,605,000
4,440,000
$ 19,130,000
$ 4,340,000
30,395,000
$ 34,735,000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT— CONTINUED
The following is a summary of long-term debt transactions, including current portion, of the City for
the year ended September 30, 2012:
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Balance
$
Balance
Balance
Due
Beginning
Beginning
End
Within
End
Within
Decreases
of Year
Increases
Decreases
of Year
One Year
Governmental Activities
Water and Sewer Revenue Bonds
$ 11,770,000 $ -
$ (1,235,000)
$ 10,535,000
General Obligation Bonds
$ 104,330,000
$ 13,940,000
$ (18,905,000)
$ 99,365,000
$ 7,695,000
Certificates of Obligation
4,455,000
-
(3,395,000)
1,060,000
260,000
Capital lease payable
6,662
29,905
(9,130)
27,437
9,914
Compensated absences
3,848,893
2,914,663
(2,522,592)
4,240,964
2,555,236
Less deferred amounts:
(122,598)
-
For refundings
For issuance premiums
2,266,612
2,296,042
(208,436)
4,354,218
-
For refundings
(1,358,356)
(1,375,003)
309,702
(2,423,657)
-
Governmental activity
$
1,045,000
Allen Economic Development Corporation
long-term debt
$ 113,548,811
$ 17,805,607
$ (24,730,456)
$ 106,623,962
$ 10,520,150
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Business -type activity
long-term debt
Balance
$
Balance
Due
$
Beginning
$
End
Within
of Year Increases
Decreases
of Year
One Year
Business Type Activities
Allen Community Development Corporation
Water and Sewer Revenue Bonds
$ 11,770,000 $ -
$ (1,235,000)
$ 10,535,000
$ 1,165,000
Compensated absences
420,387 333,156
(291,036)
462,507
430,879
Capital lease payable
103,512 -
(62,048)
41,464
26,914
Less deferred amounts:
For refundings
(267,331)
34,383
(232,948)
-
For issuance discounts / premiums
129,405
(11,974)
117,431
Business -type activity
long-term debt
$ 12,155,973
$
333,156 $
(1,565,675)
$
10,923,454
$
1,622,793
Component Unit
Allen Community Development Corporation
Sales Tax Revenue Bonds
$ 35,740,000
$
- $
(1,005,000)
$
34,735,000
$
1,045,000
Less deferred amounts:
For issuance discounts / premiums
(120,607)
(1,991)
(122,598)
-
For refundings
(71,883)
22,646
(49,237)
-
ACDC long-term debt
$ 35,547,510
$
$ (984,345)
$
34,563,165
$
1,045,000
Allen Economic Development Corporation
Sales Tax Revenue Bonds
$ 19,930,000
$
$
(800,000)
$
19,130,000
$
820,000
For issuance discounts / premiums
(50,035)
3,065
(46,970)
-
AEDC long-term debt
$ 19,879,965
$
$
(796,935)
$
19,083,030
$
820,000
Component unit long-term debt
$ 55,427,475
$
$
(1,781,280)
$
53,646,195
$
1,865,000
52
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. 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, 2012, are as follows:
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest
of $29,805,827 are as follows:
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2013 $
7,695,000 $
3,957,247 $
11,652,247
2014
7,895,000
3,676,288
11,571,288
2015
8,520,000
3,382,283
11,902,283
2016
8,200,000
3,056,328
11,256,328
2017
7,865,000
2,772,273
10,637,273
2018-2022
34,630,000
9,284,936
43,914,936
2023-2027
20,475,000
3,430,272
23,905,272
2028-2030
4,085,000
246,200
4,331,200
Total $
99,365,000 $
29,805,827 $
129,170,827
Certificates of Obligation
Annual debt service requirements to maturity for the Certificates of Obligation, including
interest of $259,136 are as follows:
Governmental Activities
Fiscal Year Ending
September 30
Principal
Interest
Total
2013 $
260,000
$ 48,061 $
308,061
2014
270,000
38,480
308,480
2015
40,000
28,270
68,270
2016
40,000
26,230
66,230
2017
45,000
24,150
69,150
2018-2022
270,000
82,670
352,670
2023-2024
135,000
11,275
146,275
Total $
1,060,000
$ 259,136 $
1,319,136
53
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT— CONTINUED
Water and Sewer Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $2,518,714 are as
follows:
Business -type Activities
Fiscal Year Ending
3,570,000
721,380
4,291,380
September 30
Principal
Interest
Total
2013 $
1,165,000 $
423,049 $
1,588,049
2014
1,205,000
380,519
1,585,519
2015
1,250,000
335,934
1,585,934
2016
955,000
286,789
1,241,789
2017
990,000
252,539
1,242,539
2018-2022
3,570,000
721,380
4,291,380
2023-2025
1,400,000
118,504
1,518,504
Total $
10,535,000 $
2,518,714 $
13,053,714
AFDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$8,493,956 are as follows:
AEDC
Fiscal Year Ending
September 30
Principal
Interest
Total
2013
$ 820,000 $
774,515 $
1,594,515
2014
845,000
750,440
1,595,440
2015
870,000
723,905
1,593,905
2016
900,000
694,625
1,594,625
2017
930,000
662,125
1,592,125
2018-2022
5,260,000
2,731,596
7,991,596
2023-2027
5,195,000
1,558,788
6,753,788
2028-2032
4,310,000
597,962
4,907,962
Total
$ 19,130,000 $ 8,493,956 $ 27,623,956
54
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT— CONTINUED
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest of
$24,298,091 are as follows:
ACDC
Fiscal Year Ending
September 30
Principal
Interest
Total
2013 $
1,045,000 $
1,906,116 $
2,951,116
2014
1,090,000
1,862,835
2,952,835
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
2018-2022
7,215,000
7,543,288
14,758,288
2023-2027
9,380,000
5,378,888
14,758,888
2028-2032
12,435,000
2,325,000
14,760,000
Total $
34,735,000 $
24,298,091 $
59,033,091
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, $13,940,000 of general
obligation refunding bonds were issued to refund outstanding obligations of the City and to
finance permanent public improvements and public purposes. The resources were placed in
an irrevocable trust for the purpose of generating resources for all future debt service
payments. As a result, the refunded bonds are considered defeased and the liability has been
removed from the governmental activities column of the statement of net assets. The
reacquisition prices exceeded the net carrying amount of the old debt by $1,375,003. The
advance refunding was undertaken to reduce total debt service payments over the next 12
years by $120,000 annually and resulted in an economic gain of $1,273,328. The City is
required by ordinance to create from ad valorem tax revenues a sinking fund sufficient to pay
the current interest and principal installments as they become due. The Debt Service Fund
has $537,520 available to service the general obligation debt at September 30, 2012. 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, 2012.
A schedule of authorized but unissued direct General Obligation Bonds as of September 30,
2012, is as follows:
Date of
Original Amount
Issued 2011
Unissued
Purpose
Authorization
Authorized
To Date Issue
Balance
Performing Arts Center
11/5/2002
$ 19,500,000 $
2,815,000 $
$ 16,685,000
Service Center Facilities
5/12/2007
14,500,000
12,500,000
2,000,000
Renovations
5/12/2007
1,700,000
475,000
1,225,000
Streets
5/12/2007
27,200,000
19,085,000
8,115,000
Parks
5/12/2007
17,250,000
7,200,000
10,050,000
Public Art Projects
5/12/2007
1,390,000
625,000
765,000
Public Safety
5/12/2007
15,855,000
11,975,000
3,880,000
$
55
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. 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 $428,646 at September 30, 2012 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, 2012 of $1,734,662 are adequate to meet the reserve
requirements.
At September 30, 2012, restricted assets, which include Water and Sewer Revenue Bond
Debt Service and Reserve Funds, were as follows:
Revenue bond debt service
Revenue bond reserve fund
$ 568,786
1,165, 876
$ 1,734,662
Retained earnings reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds $ 1,734,662
Accrued interest, payable from restricted assets (141,016)
Current maturities of revenue bonds,
payable from restricted assets (1,165,000)
Reserved for revenue bond principal and interest $ 428,646
56
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 5. LONG-TERM DEBT— CONTINUED
Water and Sewer Revenue Bonds — Continued
The City is in compliance with the various requirements of the bond ordinances. This
covenant requires that operating revenues, as defined, cover the current debt requirement
including principal and interest by a minimum of 1.2 times. Such coverage at September 30,
2012 was 5.86 times.
Capital Leases
The City acquired office equipment under various leases accounted for as capital leases.
These leases meet the criteria of a capital lease as defined by the Financial Accounting
Standards Board (FASB) Accounting Standards Codification guidance on "Accounting for
Leases", which defines a capital lease generally as one which transfers benefits and risks of
ownership to the lessee. As of September 30, 2012, the capitalized costs of the
Governmental leased property and Business -type leased property under capital leases were
$851,183 and $563,641, 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, 2012 are as
follows:
Fiscal Year Ending
Governmental Activities
September 30,
Principal
Interest
Total
2013
$
9,914
$ 166
$
10,080
2014
9,986
94
10,080
2015
7,537
23
7,560
Total
$
27,437
$ 283
$
27,720
Fiscal Year Ending
Business -type Activities
September 30,
Principal
Interest
Total
2013
$
26,914
$ 1,135
$
28,049
2014
5,684
558
6,242
2015
4,523
330
4,853
2016
4,343
106
4,449
Total
$
41,464
$ 2,129
$
43,593
Operating Leases
The City leases machinery and equipment under non -cancelable operating leases. Total costs
for such leases were $231,677 for the fiscal year ended September 30, 2012. Future minimum
lease payments, by year and in the aggregate, under the non -cancelable lease commitments
are as follows:
Fiscal Year Ending
September 30,
2013
2014
2015
2016
Total
57
Amount
$ 199,132
166,406
159,122
57,783
$ 582,443
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
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 2012 were as
follows:
Fund
Major Governmental Funds:
General Fund
General Capital Projects
General Obligation Bonds
Debt Service Fund
Total Major Governmental Funds
Nonmajor Governmental Funds:
Grants and Special Revenue
Tax Increment Financing
Hotel Occupancy Tax
Total Nonmajor Governmental
Funds
Major Enterprise Funds
Water and Sewer Fund
Solid Waste Fund
Drainage Utility Fund
Golf Course Fund
Total Major Enterprise Funds
Internal Service Funds:
Replacement Fund
Risk Management Fund
Total Internal Service Funds
Total Transfers
Transfers In Transfers Out
$ 5,451,660
$ 1,026,222
823,185
1,702,793
-
256,465
500,000
-
6,774,845
2,985,480
292,912
589,246
6,679
-
-
25,000
299,591
614,246
32,419
4,483,023
-
819,620
-
797,593
690,610
-
723,029
6,100,236
1,660,012
-
242,485
-
1,902,497
-
$ 9,699,962 $ 9,699,962
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 $7,074,436 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 $3,599,726
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, 2012
NOTE 6. INTERFUND TRANSFERS— CONTINUED
Proprietary funds: Total enterprise funds transfers in of $723,029 mainly represent
amounts transferred into the Golf Course Fund to support operations. The total transfers
out of $6,100,236 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 $1,902,497 represents the amounts
needed for fire engine and police vehicles, Replacement Fund public safety dispatch
system, 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 Projected Unit Credit actuarial cost method. The rate consists of the normal
cost contribution rate and the prior service cost contribution rate, which is calculated to be a level
percent of payroll from year to year. The normal cost contribution rate finances the portion of an
active member's projected benefit allocated annually; the prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city. Both the
normal cost and prior service contribution rates include recognition of the projected impact of
annually repeating benefits such as Updated Service Credits and Annuity Increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and
the City make contributions monthly. Since the City needs to know its contribution rate in advance
for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the
basis for the rate and the calendar year when the rate goes into effect.
59
Plan Year 2011
Plan Year 2012
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
60/5,0/20
(expressed as age/years of service)
Updated service credit
100% repeating,
100% repeating,
transfers
transfers
Annuity Increase (to Retirees)
70% repeating CPI
70% repeating CPI
Contributions and Funding Policy
Under the state law governing TMRS, the contribution rate for each City is determined annually by
the actuary using the Projected Unit Credit actuarial cost method. The rate consists of the normal
cost contribution rate and the prior service cost contribution rate, which is calculated to be a level
percent of payroll from year to year. The normal cost contribution rate finances the portion of an
active member's projected benefit allocated annually; the prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city. Both the
normal cost and prior service contribution rates include recognition of the projected impact of
annually repeating benefits such as Updated Service Credits and Annuity Increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and
the City make contributions monthly. Since the City needs to know its contribution rate in advance
for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the
basis for the rate and the calendar year when the rate goes into effect.
59
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 7. RETIREMENT PLAN — CONTINUED
The City's retirement cost rate was 12.61% from October to December 2011 and 13.01% from
January to September 2012.
Beginning in fiscal year 2008, changes in actuarial funding and assumptions resulted in higher
required contributions and lower funded ratios. To assist in this transition to higher rates, TMRS
approved an eight-year phase-in period, which allows cities the opportunity to increase their
contributions gradually to their full required contribution rate. The City made additional voluntary
contributions of approximately 1 % from January to September 2008 and approximately 2% for the
2010, 2011, and 2012 fiscal years to reduce the unfunded actuarial accrued liability.
The annual pension cost and net pension obligation are as follows:
Annual required contribution (ARC)
Interest on net pension obligation
Adjustment to the ARC
Annual pension cost (APC)
Contributions made — statutorily required monthly
Contributions made — voluntary monthly
Increase in net pension obligation
Net pension obligation, beginning of the year
Net pension obligation, end of the year
Three -Year Trend Information:
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method -
Amortization Method -
Remaining Amortization Period -
Amortization period for new gains/losses--
Asset Valuation Method -
Investment Rate of Return -
Projected Salary increases -
Includes Inflation at -
Cost -of -Living Adjustments -
$ 4,999,157
17,702
(15,634)
5,001,225
(4,833,569)
(142,500)
25,156
245,697
$ 270,853
Projected unit credit
Level percent of payroll
26.1 years — closed period
30 years
10 year smoothed market
7.0%
Varies by age and service
3.0%
2.1%
Annual
Actual
Percentage
Net
Fiscal
Pension
Contribution
of APC
Pension
Year
Cost (APC)
Made
Contributed
Obligation
2010
$ 4,663,050
$ 4,423,818
95%
$ 58,871
2011
$ 5,267,776
$ 5,080,950
96%
$ 245,697
2012
$ 5,001,225
$ 4,976,069
99%
$ 270,853
A summary of actuarial methods and assumptions is as follows:
Actuarial Cost Method -
Amortization Method -
Remaining Amortization Period -
Amortization period for new gains/losses--
Asset Valuation Method -
Investment Rate of Return -
Projected Salary increases -
Includes Inflation at -
Cost -of -Living Adjustments -
$ 4,999,157
17,702
(15,634)
5,001,225
(4,833,569)
(142,500)
25,156
245,697
$ 270,853
Projected unit credit
Level percent of payroll
26.1 years — closed period
30 years
10 year smoothed market
7.0%
Varies by age and service
3.0%
2.1%
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 7. RETIREMENT PLAN — CONTINUED
Funding Status and Funding Progress:
As of December 31, 2011, the most recent actuarial valuation date, the plan was 79.6% funded.
The actuarial accrued liability for benefits was $108,537,229, and the actuarial value of assets was
$86,384,487, resulting in an unfunded actuarial accrued liability (UAAL) of $22,152,742. The
covered payroll (annual payroll of active employees covered by the plan) was $35,359,763, and the
ratio of the UAAL to the covered payroll was 62.6%.
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 trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of
benefits.
NOTE 8. WATER AND SEWER CONTRACTS
In 1972, the City entered into a forty -year contract with the North Texas Municipal Water District
(District) for the purchase of water. Under the terms of this contract, the City is obligated to make a
minimum annual payment (adjusted annually) in return for a minimum volume of gallons of water per
year. During 1998, the City was annexed into the North Texas Municipal Water District, which
guaranteed the City a minimum volume of water. During the year ended September 30, 2012, the
cost of water purchased under this contract was $8,956,700.
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 2012, the cost for transportation, treatment and
disposal of sewage and other wastes was $5,005,044.
61
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
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,
2012, the deferred compensation investments are not reported in the City's financial statements.
NOTE 10. RISK MANAGEMENT
Health and Dental Insurance
The City provides health and dental insurance benefits to City employees under a modified self-
insurance plan. Under the plan, the City and the employee pay a portion of a predetermined
monthly premium, which is based on the estimated claims cost for the plan and the extent of
medical coverage selected by the employee. To cover annual costs, premium payments are
reported as operating revenues of the Risk Management Fund and operating
expenditures/expenses of the participating funds.
A commercial insurance carrier is utilized to adjudicate and pay medical claims on behalf of the
City. The City's liability is limited by an excess ("stop loss") insurance policy covering individual
claims in excess of $125,000 per person. Throughout the policy year, the "stop loss" insurance
carrier reimburses the City for claims paid during the policy year which exceeded the "stop loss"
amount. Through 12/31/10 a commercial insurance company re -insures the City for individual
claims in excess of up to a lifetime maximum of $2,000,000. Per the Health Care Reform act no
lifetime maximum will be imposed effective 1/1/11. The liabilities for insurance claims reported
are based on GASB No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if information prior to the
issuance of the financial statements indicates that it is probable that a liability has been incurred
at the date of the financial statements and the amount of the loss can be reasonably estimated.
These liabilities include an estimate for incurred but not reported claims. The estimated amount
at September 30, 2012 was $831,982. Changes in the Risk Management liability during the past
five fiscal years were as follows:
Workers Compensation, Property and Liability Insurance
The City participates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for
workers' compensation claims, liability (general, automobile, law enforcement, and
errors/omissions), and property insurance. The cost is based on the pool's claims cost, which is
adjusted to reflect the City's individual claims experience. As claims arise they are submitted to
and paid by TMLIRP. To cover annual costs, premium payments are reported as operating
revenues of the Risk Management Fund and operating expenditures/expenses of the participating
funds.
62
Balance at
Current Year Claims
Balance at
Year Ending
Beginning of
and Changes in
Claim
End of
September 30,
Fiscal Year
Estimates
Payments
Fiscal Year
2008
$ 617,301
$ 9,206,758
$ 9,194,572
$ 629,487
2009
629,487
4,448,591
4,518,707
599,371
2010
599,371
5,685,199
5,544,605
739,965
2011
739,965
5,444,705
5,459,311
725,359
2012
725,359
6,631,188
6,524,565
831,982
Workers Compensation, Property and Liability Insurance
The City participates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for
workers' compensation claims, liability (general, automobile, law enforcement, and
errors/omissions), and property insurance. The cost is based on the pool's claims cost, which is
adjusted to reflect the City's individual claims experience. As claims arise they are submitted to
and paid by TMLIRP. To cover annual costs, premium payments are reported as operating
revenues of the Risk Management Fund and operating expenditures/expenses of the participating
funds.
62
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 10. RISK MANAGEMENT— CONTINUED
Workers Compensation, Property and Liability Insurance — Continued
The City has a workers' compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $250,000. During 2012, the City contributed $243,688 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 2012, the City contributed $558,855 for property and
general liability.
NOTE 11. 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 rate 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
2011, retirees paid $75,313 in the form of premiums and incurred $543,351 in expenses. In
2012, retires paid $112,862 in the form of premiums and incurred $1,191,381 in expenses.
Funding Policy
In November, 2010 an actuarial study update was completed. This study estimated the actuarial
accrued liability increased from $534,259 to $2,736,262 and the annual required contribution
(ARC) increased from $48,973 to $321,597. To address the new actuarial findings, in March
2011, the City established a Section 115 Trust (the Trust) to comply with the requirements of
Governmental Accounting Standards Board Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits other than Pensions (OPEB), for the
purpose of funding and providing certain benefits to its eligible retirees and dependents. The
single -employer defined benefit plan is created by City ordinance and appoints the City Manager
as Plan Administrator for the program. The trust was established with Public Agency Retirement
Services Company (PARS). Prior to establishment of the trust, the ARC was contributed to the
Risk Management Fund where all medical costs are incurred. Net assets of $3,210,475 available
in the Risk Management Fund exceeds the $2,736,262 actuarial accrued liability, therefore,
OPEB costs will continue to be covered by the Risk Management Fund until the funded ratio of
the trust is more positive. A new actuarial study will be completed in March 2013 to determine if
funding requirements have changed.
63
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
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.
Annual required contribution (ARC)
10/1/09
$ 321,597
Interest on net OPEB obligation
Actuarial Accrued Liability (AAL)
(136)
Adjustment to the ARC
24.78%
189
Annual OPEB cost
Annual covered payroll
321,650
Contributions made
5.6%
(325,000)
Decrease in OPEB obligation
(3,350)
Net OPEB obligation (asset), beginning of the year
(3,403)
Net OPEB obligation (asset), end of the year
$ (6,753)
Three -Year Trend Information:
Annual Actual
Percentage
Net
Fiscal OPEB Contribution
of OPEB
OPEB
Year Cost Made
Contributed
Asset
2010 $ 321,597 $ 321,597
100%
$ -
2011 $ 321,597 $ 325,000
101%
$ (3,403)
2012 $ 321,650 $ 325,000
101%
$ (6,753)
Significant methods and assumptions used for this were:
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
Schedule of Funding Information
4.00%
level dollar, open, 30 years
Avg. 5.8% Yrs 1-10, 5.63% -Yrs 11-20, 5.28% -Yrs 21-30
Ages 50-55-2%, 56-60-5%, 60-64-15%, 65+ 100%
20%/40%
RP 2000 EE/Combined
Market value on valuation date
Unit credit
6% Medical inflation and 5.43% dental inflation
Actuarial valuation date
10/1/09
Actuarial value of assets
$678,092
Actuarial Accrued Liability (AAL)
$2,736,262
Funded Ratio
24.78%
Unfunded Actuarial Accrued Liability (UAAL)
$2,058,170
Annual covered payroll
$37,022,759
UAAL as % of covered payroll
5.6%
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.
64
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2012
NOTE 11. OTHER POSTEMPLOYMENT BENEFITS (OPEB) — CONTINUED
Supplemental Death Benefits Plan:
Program Description
The City also participates in the cost sharing multiple -employer defined benefit group -term life
insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the
Supplemental Death Benefits Fund (SDBF). The city elected, by ordinance, to provide group -
term life insurance coverage to both current and retired employees. The city may terminate
coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump -sum payment approximately equal to
the employee's annual salary (calculated based on the employee's actual earnings, for the
12 -month period proceeding the month of death). Retired employees are insured for $7,500
and this coverage is reported as an "other postemployment benefit" or (OPEB).
Contributions and Funding Policy
The City contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance.
The funding policy for the SDBF program is to assure that adequate resources are available
to meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree
term life insurance during employee's entire careers.
The City's contributions to the TMRS SDBF for retiree's for the years ended 2012, 2011, and
2010 were $54,457, $63,471, and $53,964, which equals the required contributions (ARC)
each year.
NOTE 12. COMMITMENTS AND CONTINGENT LIABILITIES
Federal Grants The City participates in a number of State and Federal assisted grant programs.
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the Federal Government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which
may be disallowed by the grantor cannot be determined at this time although the City expects such
amounts, if any, to be immaterial.
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City's counsel that resolution of these matters will not
have a material adverse effect on the financial condition of the City.
Economic Development Grant The City has several economic development agreements whereby it
has agreed to pay a grant(s) to a developer and/or business in return for the design, construction,
operating and/or managing of the business within the City of Allen. All grants are performance based
and do not constitute a liability on the City's financial records.
NOTE 13. SUBSEQUENT EVENTS
The City has evaluated all events or transactions that occurred after September 30, 2012 up through
March 15, 2013, the date the financial statements were issued. During this period, there were no
subsequent events requiring disclosure.
65
cum
REQUIRED SUPPLEMENTARY
INFORMATION
cum
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, 2012
Required Supplementary Information
Schedule of Texas Municipal Retirement System
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
Required Supplementary Information
Schedule of Other Postemployment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
UAAL as
Actuarial
Unfunded
a % of
Actuarial
Value of
Actuarial
Covered
UAAL as a
Valuation
Actuarial value
Actuarial accrued
Percentage
Accrued Liability
Annual covered
percentage of
Date
of assets
liability
funded
(UAAL)
payroll
covered payroll
12/31/09
$ 55,724,219
$ 79,567,937
70.0%
$ 23,843,718
$ 33,147,218
71.9%
12/31/10
75,602,771
97,860,304
77.3%
22,257,533
33,316,861
66.8%
12/31/11
86,384,487
108,537,229
79.6%
22,152,742
35,359,763
62.6%
Required Supplementary Information
Schedule of Other Postemployment Benefits
Funding Progress and Contributions
Last Three Valuation Years (unaudited)
UAAL as
Actuarial
a % of
Valuation
Value of
Funded
Covered
Covered
Date
Assets
AAL*
UAAL**
Ratio
Payroll
Payroll
09/30/08
N/A
$534,259
$534,259
0%
$33,147,218
1.6%
10/01/09
296,824
2,736,262
2,439,438
10.8%
34,267,319
7.1%
10/01/09
678,092
2,736,262
2,058,170
24.8%
37,022,759
5.6%
*Actuarial Accrued Liability
**Unfunded Actuarial Accrued Liability
M.
CITY OF ALLEN, TEXAS
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2012
REVENUES
Ad valorem taxes, penalties and interest
Municipal sales tax
Franchise taxes
Licenses, permits and fees
Charge for services
Fines
Gifts and contributions
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
BUDGETED AMOUNTS
ORIGINAL FINAL
EXHIBIT A-2
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ACTUAL (NEGATIVE)
$ 30,589,753
$ 30,641,805
$ 30,403,717 $
(238,088)
13,426,306
14,912,663
14,673,992
(238,671)
6,274,713
6,375,405
6,150,419
(224,986)
944,400
1,051,300
1,075,712
24,412
15,467,786
10,193,672
9,852,902
(340,770)
1,801,592
1,822,340
1,648,194
(174,146)
1,310,620
1,058,295
843,092
(215,203)
237,650
163,000
186,353
23,353
1,277,543
1,596,062
1,759,433
163,371
71,330,363
67,814,542
66,593,814
(1,220,728)
15,791,512
16,255,530
15,592,218
663,312
26,821,150
26,983,584
26,944,211
39,373
3,876,854
3,812,990
3,694,124
118,866
27,057,435
21,616,999
21,524,565
92,434
2,356,153
2,252,432
2,194,634
57,798
75,903,104
70,921,535
69,949,752
971,783
(4,572,741) (3,106,993) (3,355,938) (248,945)
Capital lease obligations
-
-
29,905
29,905
Transfers in
5,445,296
5,451,660
5,451,660
-
Transfers out
(872,555)
(838,865)
(1,026,222)
(187,357)
Sale of capital assets
-
-
307
307
Total other financing sources (uses)
4,572,741
4,612,795
4,455,650
(157,145)
NET CHANGE IN FUND BALANCE
-
1,505,802
1,099,712
(406,090)
FUND BALANCES, BEGINNING OF YEAR
15,686,338
15,686,338
15,686,338
-
FUND BALANCES, END OF YEAR $
15,686,338
$ 17,192,140
$ 16,786,050 $
(406,090)
67
CITY OF ALLEN, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2012
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.
.:
cum
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
cum
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.
.•
CITY OF ALLEN, TEXAS EXHIBIT B-1
COMPARATIVE BALANCE SHEETS
GENERALFUND
SEPTEMBER 30, 2012 AND 2011
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
2012
2011
ASSETS
1,176,633
963,548
Cash and cash equivalents
$ 5,092,403
$ 3,450,684
Investments
11,050,686
10,935,723
Receivables:
FUND BALANCES
Ad valorem taxes (net of allowances for uncollectibles
Nonspendable
of $134,015 in 2012 and $116,238 in 2011)
216,590
217,814
Sales taxes
2,582,970
2,443,289
Other
1,797,121
3,026,978
Accrued interest
133,598
81,013
Prepaid items
2,081
156
TOTAL ASSETS
$ 20,875,449
$ 20,155,657
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
$ 2,680,228 $
2,836,687
Accrued liabilities
1,176,633
963,548
Deferred revenue
232,538
669,084
TOTAL LIABILITIES
4,089,399
4,469,319
FUND BALANCES
Nonspendable
Prepaid items
2,081
156
Restricted
Court technology and court security
69,880
-
Juvenile case manager
45,210
-
PEG fees
312,490
-
Photo red light enforcement
30,300
-
Cemetery trust
55,921
55,898
Assigned
Information technology
85,288
-
Municipal court
46,138
-
Fire
2,052
1,402
Unassigned
16,136,690
15,628,882
TOTAL FUND BALANCES
16,786,050
15,686,338
TOTAL LIABILITIES AND FUND BALANCE
$ 20,875,449 $
20,155,657
70
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERALFUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
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 service:
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Capital lease obligations
Sale of capital assets
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
71
EXHIBIT B-2
2012
2011
26,944,211
25,633,080
$ 30,403,717
$ 30,018,546
6,150,419
6,230,269
14, 673, 992
13, 573, 016
1,075,712
1,009,913
9,852,902
8,829,051
1,648,194
1,720,678
831,266
986,125
11,826
-
186,353
192,723
1,759,433
1,290,990
66,593,814 63,851,311
15,582,940
15,020,469
26,944,211
25,633,080
3,694,124
3,572,487
21,524,565
20,411,524
2,194,634
2,331,868
9,130 -
148 -
69,949,752 66,969,428
(3,355,938) (3,118,117)
5,451,660
5,015,341
(1,026,222)
(1,685,979)
29,905
-
307
8,118
4,455,650
3,337,480
1,099,712
219,363
15,686,338
15,466,975
$ 16,786,050
$ 15,686,338
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2012 AND 2011
ASSETS
Cash and cash equivalents
Investments
Receivables:
Ad valorem taxes (net of allowances for uncollectibles
of $75,130 in 2012 and $69,592 in 2011)
Accrued interest receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Interest payable
Deferred revenue
Total liabilities
FUND BALANCE
Restricted for debt service
TOTAL LIABILITIES AND FUND BALANCE
72
2012
EXHIBIT B-3
2011
$ 555,745 $ 899,144
330 -
74,485 77,970
37,877 26,705
$ 668,437 $ 1,003,819
$ 54,185 $ -
76,732 78,007
130,917 78,007
537,520 925,812
$ 668,437 $ 1,003,819
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
REVENUES
Ad valorem taxes
Investment earnings
Total revenues
EXPENDITURES
Principal retirement
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Premium on issuance of bonds
Payment to refund bond escrow agent
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
73
EXHIBIT B-4
2012
2011
$ 11,068,632
$ 10,627,997
44,854
69,996
11,113,486
10,697,993
7,625,000
6,930,000
4,562,817
4,775,982
12,187,817
11,705,982
(1,074,331)
(1,007,989)
13,940,000
12,625,000
2,296,042
447,508
(16,050,003)
(12,998,419)
500,000
500,000
686,039 574,089
(388,292) (433,900)
925,812 1,359,712
$ 537,520 $ 925,812
CITY OF ALLEN, TEXAS
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2012
REVENUES
Ad valorem taxes
Investment earnings
Total revenues
EXPENDITURES
Principal retirement
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Premium on issuance of bonds
Payment to refund bond escrow agent
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
BUDGETED AMOUNTS
ORIGINAL FINAL
EXHIBIT B-5
VARIANCE
WITH FINAL
BUDGET
POSITIVE
ACTUAL (NEGATIVE)
$ 11,158,583
$ 11,160,698
$ 11,068,632 $
(92,066)
57,000
48,555
44,854
(3,701)
11,215,583
11,209,253
11,113,486
(95,767)
7,550,000
7,625,000
7,625,000
-
4,419,938
4,582,994
4,562,817
20,177
11,969,938
12,207,994
12,187,817
20,177
-
13,940,000
13,940,000
-
-
2,296,042
2,296,042
-
-
(16,050,003)
(16,050,003)
-
500,000
500,000
500,000
-
500,000
686,039
686,039
-
(254,355)
(312,702)
(388,292)
(75,590)
925,812
925,812
925,812
-
$ 671,457
$ 613,110
$ 537,520 $
(75,590)
74
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL CAPITAL PROJECTS FUND
SEPTEMBER 30, 2012 AND 2011
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Special assessments receivable
Other receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Accrued liabilities
Total liabilities
FUND BALANCES
Restricted for capital projects
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
75
EXHIBIT B-6
2012
2011
$ 5,268,066
$ 3,141,726
10,747,199
10,585,288
85,736
47,368
187,557
187,557
-
2,774
$ 16,288,558
$ 13,964,713
$ 687,738 $ 651,400
75,325 90
445,042 446,586
1,208,105 1,098,076
15,080,453 12,866,637
15,080,453 12,866,637
$ 16,288,558 $ 13,964,713
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL CAPITAL PROJECTS FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
REVENUES
Charges for services
Intergovernmental
Investment earnings
Gifts and contributions
Miscellaneous
Total revenues
EXPENDITURES
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
76
EXHIBIT B-7
2012 2011
$ 198,782 $
405,567
4,110,526
1,545,801
122,127
109,307
397,500
-
407,364
480,052
5,236,299
2,540,727
727,814
388,650
1,415,061
2,876,474
2,142, 875
3,265,124
3,093,424
(724,397)
823,185
1,125, 000
(1,702,793)
(307,225)
(879,608)
817,775
2,213,816
93,378
12, 866, 637
12, 773, 259
$ 15,080,453 $
12,866,637
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL OBLIGATION BOND FUND
SEPTEMBER 30, 2012 AND 2011
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Retainage payable
Total liabilities
FUND BALANCES
Restricted for capital projects
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
77
EXHIBIT B-8
2012 2011
$ 2,411,383
$ 2,643,012
4,620,750
9,570,762
55,089
62,961
$ 7,087,222
$ 12,276,735
$ 1,607,324 $ 95,641
130,288 89,448
1,737,612 185,089
5,349,610 12,091,646
5,349,610 12,091,646
$ 7,087,222 $ 12,276,735
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GENERAL OBLIGATION BOND FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
REVENUES
Investment earnings
Total revenues
EXPENDITURES
General government
Culture and recreation
Public safety
Public works
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Premium on debt issuance
Issuance of debt
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
78
EXHIBIT B-9
2012
2011
$ 47,833 $
136,232
47,833
136,232
13,590
93,830
320
753,360
60,103
-
409,994
214,641
6,049,397
12,638,696
6,533,404
13,700,527
(6,485,571) (13,564,295)
(256,465) (233,421)
220,194
5,000,000
(256,465) 4,986,773
(6,742,036) (8,577,522)
12,091,646 20,669,168
$ 5,349,610 $ 12,091,646
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.
79
CITY OF ALLEN, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2012
EXHIBIT C-1
SPECIAL REVENUE
GRANTS
TOTAL
HOTEL AND
TAX NON -MAJOR
OCCUPANCY ASSET SPECIAL PARK
INCREMENT GOVERNMENTAL
TAX FORFEITURE REVENUE DEDICATION
FINANCING FUNDS
ASSETS
Cash and cash equivalents $
804,986
$
119,713
$
395,183
$
525,370
$
437,107
$
2,282,359
Investments
1,458,331
120
290
1,059,575
471,029
2,989,345
Accounts receivable
106,994
-
44,024
-
71,678
222,696
Accrued interest
10,860
911
3,611
8,866
3,769
28,017
TOTAL ASSETS $
2,381,171
$
120,744
$
443,108
$
1,593,811
$
983,583
$
5,522,417
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $
76,662
$
8,221
$
18,882
$
10,701
$
-
$
114,466
Accrued liabilities
3,226
16,484
2,269
-
21,979
Retainage payable
-
-
20,611
2,148
22,759
Deferred revenue
-
-
33,209
-
33,209
TOTAL LIABILITIES
79,888
24,705
74,971
12,849
192,413
FUND BALANCES
Restricted
Tourism
2,301,283
-
-
-
2,301,283
Asset forfeiture
-
96,039
-
96,039
State and federal grants
-
368,137
-
368,137
Park acquisition and development
-
1,580,962
-
1,580,962
Tax increment financing agreement
-
-
-
-
983,583
983,583
TOTAL FUND BALANCES
2,301,283
96,039
368,137
1,580,962
983,583
5,330,004
TOTAL LIABILITIES AND FUND BALANCES $
2,381,171
$
120,744
$
443,108
$
1,593,811
$
983,583
$
5,522,417
:1
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, 2012
SPECIAL REVENUE
81
GRANTS
TOTAL
HOTEL
AND
TAX
NON -MAJOR
OCCUPANCY
ASSET
SPECIAL
PARK
INCREMENT
GOVERNMENTAL
TAX
FORFEITURE
REVENUE
DEDICATION
FINANCING
FUNDS
REVENUES
Ad valorem taxes, penalties and interest
$
$
$
$
$ 572,903
$ 572,903
Municipal sales tax
364,527
364,527
Licenses, permits, and fees
139,965
-
139,965
Hotel / motel taxes
1,229,996
-
1,229,996
Gifts and contributions
-
215,000
-
215,000
Intergovernmental
-
-
360,208
-
154,783
514,991
Investment earnings
15,415
1,004
5,318
11,920
5,241
38,898
Miscellaneous
297
74,072
-
-
74,369
Total revenues
1,245,708
75,076
580,526
151,885
1,097,454
3,150,649
EXPENDITURES
General government
-
-
-
-
821,259
821,259
Public safety
-
85,378
201,509
-
286,887
Culture and recreation
903,878
-
31,308
935,186
Community development
-
-
211,851
-
211,851
Capital outlay
-
62,203
216,467
229,031
-
507,701
Total expenditures
903,878
147,581
661,135
229,031
821,259
2,762,884
Excess (deficiency) of revenues over
expenditures
341,830
(72,505)
(80,609)
(77,146)
276,195
387,765
OTHER FINANCING SOURCES (USES)
Transfers in
-
292,912
6,679
299,591
Transfers out
(25,000)
-
(589,246)
-
(614,246)
Sale of capital assets
9,315
-
9,315
Total other financing sources (uses)
(25,000)
9,315
(296,334)
6,679
(305,340)
NET CHANGE IN FUND BALANCES
316,830
(63,190)
(376,943)
(77,146)
282,874
82,425
FUND BALANCES, BEGINNING OF YEAR
1,984,453
159,229
745,080
1,658,108
700,709
5,247,579
FUND BALANCES, END OF YEAR
$ 2,301,283
$ 96,039
$ 368,137
$ 1,580,962
$ 983,583
$ 5,330,004
81
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.
82
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
WATER AND SEWER ENTERPRISE FUND
SEPTEMBER 30, 2012 AND 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowance for uncollectibles:
Accounts
Accrued interest
Other
Inventories
Restricted cash and cash equivalents
Total current assets
NONCURRENT ASSETS
CAPITAL ASSETS
Land
Towers, tanks, and pump stations
Vehicles
Machinery and equipment
Furniture and fixtures
Construction in progress
Total capital assets
Less: accumulated depreciation
Capital assets, net of accumulated depreciation
DEFERRED CHARGES
Bond issuance costs, net of amortization
Total noncurrent assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued liabilities
Retainage payable
Payable from restricted assets:
Revenue bonds payable - current
Accrued interest payable
Accrued compensated absences - current
Customer deposits payable
Total current liabilities
NONCURRENT LIABILITIES
Revenue bonds payable
Accrued compensated absences
Total noncurrent liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Restricted
Restricted for revenue bond principal and interest
Unrestricted
Ir0iIF_111111.I=1r_1�-I=1&
83
EXHIBIT D-1
2012 2011
$ 7,054,768
13,786,622
6,489,187
112,684
415,316
48,272
1,734,662
29,641,511
4,072,882
166,109,217
815,838
4,260,318
11,114
2,059,677
177,329,046
(67,372,365)
109,956,681
126,923
110,083,604
$ 4,940,556
15.597.365
6,084,551
62,108
84,802
1,740,383
28,509,765
4,072,882
153,546,335
843,833
4,153, 586
11,114
6,915,390
169,543,140
(62,098,191)
107,444,949
141,016
107,585,965
139, 725,115 136, 095, 730
159,530
87,313
88,546
1,165, 000
141,016
289,747
1,525,135
3,456,287
9,254,483
10,185
9,264,668
12,720,955
99, 537,198
428,646
27,038,316
$ 127,004,160
1,168, 228
71,028
299,476
1,235,000
155,691
274,646
1,490,548
4,694,617
10,397,074
9,655
10,406,729
15,101, 346
95,812,875
349,692
24,831,817
$ 120,994,384
CITY OF ALLEN, TEXAS EXHIBIT D-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
WATER AND SEWER ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
OPERATING EXPENSES
Personnel services
2012
2011
OPERATING REVENUES
15,682,441
15,187,796
Water sales
$ 16,665,581
$ 19,343,377
Sewer charges
11,307,807
10,682,500
Connection fees
138,735
173,737
Service charges
581,584
598,544
Intergovernmental
-
54,163
Gifts and contributions
1,000,000
1,000,000
Miscellaneous
358,370
83,029
Total operating revenues
30,052,077
31,935,350
OPERATING EXPENSES
Personnel services
3,904,753
3,791,330
Contractual and other services
15,682,441
15,187,796
Maintenance
236,620
265,011
Supplies
234,712
260,733
Depreciation
5,575,409
5,390,462
Other
185,714
248,010
Total operating expenses
25,819,649
25,143,342
OPERATING INCOME
4,232,428
6,792,008
NON-OPERATING REVENUES (EXPENSES)
Interest income
166,908
153,206
Interest expense
(489,999)
(535,529)
Total non-operating expenses
(323,091)
(382,323)
INCOME BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
3,909,337
6,409,685
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees
877,964
1,264,798
Capital contributions
5,673,079
1,430,068
Transfers in
32,419
29,477
Transfers out
(4,483,023)
(4,278,378)
Total capital contributions and transfers
2,100,439
(1,554,035)
CHANGE IN NET ASSETS
6,009,776
4,855,650
NET ASSETS, BEGINNING OF YEAR
120,994,384
116,138,734
NET ASSETS, END OF YEAR
$ 127,004,160
$ 120,994,384
84
CITY OF ALLEN, TEXAS EXHIBIT D-3
COMPARATIVE STATEMENTS OF CASH FLOWS
WATER AND SEWER ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
85
2012
2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$
29,232,125
$ 30,732,272
Cash paid to employees for services
(3,889,122)
(3,769,561)
Cash paid for goods and services
(17,435,211)
(16,182,682)
Net cash provided by operating activities
7,907,792
10,780,029
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
32,419
29,477
Transfers out
(4,483,023)
(4,278,378)
Net cash used in non -capital financing activities
(4,450,604)
(4,248,901)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities
(1,235,000)
(1,190,000)
Interest and fees paid on long-term debt
(504,674)
(550,956)
Acquisition and construction of capital assets
(2,414,062)
(4,125,325)
Contributions from developers
877,964
1,264,798
Net cash used in capital and related financing activities
(3,275,772)
(4,601,483)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
1,812,779
(3,059,557)
Interest on investments
114,296
166,406
Net cash provided by (used in) investing activities
1,927,075
(2,893,151)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
2,108,491
(963,506)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
6,680,939
7,644,445
CASH AND CASH EQUIVALENTS, END OF YEAR
$
8,789,430
$ 6,680,939
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$
4,232,428
$ 6,792,008
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation and amortization expense
5,611,911
5,426,964
Change in assets and liabilities:
Accounts receivable
(819,952)
(1,203,078)
Inventories
36,530
136,380
Accounts payable
(1,008,698)
(363,093)
Accrued liabilities
16,285
(95,374)
Retainage payable
(210,930)
36,586
Compensated absences
15,631
21,769
Utility deposits
34,587
27,867
Total adjustments
3,675,364
3,988,021
Net cash provided by operating activities
$
7,907,792
$ 10,780,029
NON-CASH INVESTING ACTIVITIES
Change in the fair value of investments
$
2,036
$ 2,036
NON-CASH FINANCING ACTIVITIES
Contributions of capital assets from developers
$
5,673,079
$ 1,430,068
RECONCILIATION OF CASH
Cash and cash equivalents - current
$
7,054,768
$ 4,940,556
Restricted cash and cash equivalents
1,734,662
1,740,383
$
8,789,430
$ 6,680,939
85
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
SOLID WASTE ENTERPRISE FUND
SEPTEMBER 30, 2012 AND 2011
EXHIBIT D-4
2012 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,064,462 $ 761,030
Investments 2,126,049 2,726,406
Receivables, net of allowance for uncollectibles:
Accounts 349,809 268,377
Other 115,534 108,420
Accrued interest 15,939 10,760
Total current assets 3,671,793 3,874,993
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
(20,505)
(19,965)
Capital assets, net of accumulated depreciation
810
1,350
Total noncurrent assets
810
1,350
TOTAL ASSETS
3,672,603
3,876,343
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
218,816
304,645
Accrued compensated absences -current
46,762
36,863
Accrued liabilities
27,519
17,544
Total current liabilities
293,097
359,052
NONCURRENT LIABILITIES
Accrued compensated absences
2,639
2,079
Total noncurrent liabilities
2,639
2,079
TOTAL LIABILITIES
295,736
361,131
NET ASSETS
Invested in capital assets, net of related debt
810
1,350
Unrestricted
3,376,057
3,513,862
TOTAL NET ASSETS
$ 3,376,867
$ 3,515,212
:.
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
OPERATING REVENUES
Garbage collections
Other
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES
Interest income
INCOME BEFORE TRANSFERS
TRANSFERS
Transfers out
Total transfers
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
87
EXHIBIT D-5
2012 2011
$ 6,040,165 $
6,138,900
48,540
47,504
6,088,705
6,186,404
425,712
391,829
4,891,898
4,913,609
2,687
1,814
13,214
11,314
540
540
94,998
92,854
5,429,049
5,411,960
659,656
774,444
21,619
23,694
681,275
798,138
(819,620)
(504,914)
(819,620)
(504,914)
(138, 345)
293,224
3,515,212
3,221,988
$ 3,376,867 $
3,515,212
CITY OF ALLEN, TEXAS EXHIBIT D-6
COMPARATIVE STATEMENTS OF CASH FLOWS
SOLID WASTE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 5,994,980
$
6,165,039
Cash paid to employees for services
(415,253)
(393,242)
Cash paid for goods and services
(5,078,651)
(4,953,214)
Net cash provided by operating activities
501,076
818,583
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out
(819,620)
(504,914)
Net cash used in non -capital financing activities
(819,620)
(504,914)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
600,357
(613,636)
Interest on investments
21,619
23,694
Net cash provided by (used in) investing activities
621,976
(589,942)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
303,432
(276,273)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
761,030
1,037,303
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 1,064,462
$
761,030
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 659,656
$
774,444
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation
540
540
Change in assets and liabilities:
Accounts receivable
(88,546)
(23,641)
Other receivables
(5,179)
2,276
Accounts payable
(85,829)
79,912
Accrued liabilities
9,975
(13,535)
Accrued compensated absences
10,459
(1,413)
Total adjustments
(158,580)
44,139
Net cash provided by operating activities
$ 501,076
$
818,583
::
CITY OF ALLEN, TEXAS EXHIBIT D-7
COMPARATIVE STATEMENTS OF NET ASSETS
DRAINAGE ENTERPRISE FUND
SEPTEMBER 30, 2012 AND 2011
:•
2012
2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 375,809
$ 282,663
Investments
610,506
1,015,326
Receivables:
Accounts
89,611
59,153
Accrued interest
5,295
4,258
Total current assets
1,081,221
1,361,400
NONCURRENT ASSETS
CAPITAL ASSETS
Other improvements
496,132
496,132
Vehicles
31,379
43,933
Machinery and equipment
430,682
430,682
Total capital assets
958,193
970,747
Less: accumulated depreciation
(535,407)
(499,281)
Capital assets, net of accumulated depreciation
422,786
471,466
Total noncurrent assets
422,786
471,466
TOTAL ASSETS
1,504,007
1,832,866
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
28,832
29,698
Accrued compensated absences
27,287
23,089
Accrued liabilities
8,108
6,126
Total current liabilities
64,227
58,913
NONCURRENT LIABILITIES
Accrued compensated absences
2,020
1,709
Total noncurrent liabilities
2,020
1,709
TOTAL LIABILITIES
66,247
60,622
NET ASSETS
Invested in capital assets, net of related debt
422,786
471,466
Unrestricted
1,014,974
1,300,778
TOTAL NET ASSETS
$ 1,437,760
$ 1,772,244
:•
CITY OF ALLEN, TEXAS EXHIBIT D-8
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
OPERATING REVENUES
Drainage fees
Service charges
Other
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING INCOME
NON-OPERATING REVENUES
Interest income
INCOME BEFORE TRANSFERS
TRANSFERS
Transfers out
Total operating transfers
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
.o
2012 2011
$ 1,280,684 $
57,996
554
1,231,432
52,626
8,230
1,339,234
1,292,288
423,883
395,216
150,962
124,718
207,240
216,067
46,873
30,338
48,680
49,602
5,088
4,006
882,726 819,947
456,508
472,341
6,601
7,809
463,109
480,150
(797,593)
(609,448)
(797,593)
(609,448)
(334,484)
(129,298)
1,772,244
1,901,542
$ 1,437,760 $
1,772,244
CITY OF ALLEN, TEXAS EXHIBIT D-9
COMPARATIVE STATEMENTS OF CASH FLOWS
DRAINAGE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,308,776 $ 1,288,832
Cash paid to employees for services (419,374) (391,728)
Cash paid for goods and services (409,047) (384,340)
Net cash provided by operating activities 480,355 512,764
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers out (797,593) (609,448)
Net cash used in non -capital financing activities (797,593) (609,448)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (27,085)
Net cash used in capital and related financing activities - (27,085)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
404,820
(44,402)
Interest on investments
5,564
9,541
Net cash provided by (used in) investing activities
410,384
(34,861)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
93,146
(158,630)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
282,663
441,293
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 375,809
$ 282,663
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net operating income
$ 456,508
$ 472,341
Adjustments to reconcile net operating income
to net cash provided by operating activities:
Depreciation
48,680
49,602
Change in assets and liabilities:
Accounts receivable
(30,458)
(3,456)
Accounts payable
(866)
1,738
Accrued liabilities
1,982
(10,949)
Compensated absences
4,509
3,488
Total adjustments
23,847
40,423
Net cash provided by operating activities
$ 480,355
$ 512,764
91
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF NET ASSETS
GOLF COURSE ENTERPRISE FUND
SEPTEMBER 30, 2012 AND 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Receivables:
Accounts
Accrued interest
Prepaid items
Total current assets
NONCURRENT ASSETS
CAPITAL ASSETS
Furniture and fixtures
Machinery and equipment
Less: accumulated depreciation
Capital assets, net of accumulated depreciation
Total noncurrent assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued liabilities
Accrued compensated absences
Capital leases payable - current
Customer deposits payable
Total current liabilities
NONCURRENT LIABILITIES
Capital leases payable
Accrued compensated absences
Total noncurrent liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
TOTAL NET ASSETS
92
2012
$ 377,944
127
250
1,415
11,050
390,786
10,894
563,641
(533,071)
41,464
41,464
432,250
55,712
27,016
67,083
26,914
11,184
187,909
14,550
16,784
31,334
219,243
213,007
$ 213,007
EXHIBIT D-10
2011
$ 77,434
99,043
7,464
11,050
194,991
10,894
563,641
(468,661)
105,874
105,874
300,865
56,984
21,632
57,868
62,048
10,322
208,854
41,464
14,478
55,942
264,796
2,362
33,707
$ 36,069
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
OPERATING REVENUES
Service charges
Gifts and contributions
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel services
Contractual and other services
Maintenance
Supplies
Depreciation
Other
Total operating expenses
OPERATING LOSS
NON-OPERATING REVENUES
Interest income
LOSS BEFORE TRANSFERS
TRANSFERS
Transfers in
Total transfers
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
93
EXHIBIT D-11
2012 2011
$ 59,054
$ 1,406,555
600,000
-
3,804
4,566
662,858
1,411,121
813,795
1,108, 595
186,510
440,772
26,803
128,175
66,859
101,790
64,410
89,321
20,638
43,930
1,179,015
1,912,583
(516,157)
(501,462)
2,485 -
(513,672) (501,462)
690,610 291,917
690,610 291,917
176,938 (209,545)
36,069 245,614
$ 213,007 $ 36,069
CITY OF ALLEN, TEXAS EXHIBIT D-12
COMPARATIVE STATEMENTS OF CASH FLOWS
GOLF COURSE ENTERPRISE FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 670,072
$ 1,404,577
Cash paid to employees for services
(802,274)
(1,106,250)
Cash paid for goods and services
(295,836)
(851,008)
Net cash used in operating activities
(428,038)
(552,681)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
690,610
291,917
Net cash provided by non -capital financing activities
690,610
291,917
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
-
(21,598)
Capital lease payment
(62,048)
(63,002)
Net cash used in capital and related financing activities
(62,048)
(84,600)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
98,916
222,744
Interest on investments
1,070
1,985
Net cash provided by investing activities
99,986
224,729
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
300,510
(120,635)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
77,434
198,069
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 377,944
$ 77,434
RECONCILIATION OF OPERATING LOSS TO NET CASH
USED IN OPERATING ACTIVITIES
Net operating loss
$ (516,157)
$ (501,462)
Adjustments to reconcile net operating loss
to net cash used in operating activities:
Depreciation
64,410
89,321
Change in assets and liabilities:
Accounts receivable
7,214
(6,544)
Accounts payable
(1,272)
(98,991)
Accrued liabilities
5,384
(38,051)
Customer deposits
862
701
Compensated absences
11,521
2,345
Total adjustments
88,119
(51,219)
Net cash used in operating activities
$ (428,038)
$ (552,681)
94
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.
95
CITY OF ALLEN, TEXAS EXHIBIT E-1
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2012
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 20, 2011)
LIABILITIES AND NET ASSETS
LIABILITIES
RISK
TOTALS
REPLACEMENT
MANAGEMENT
275,059
379,146
225,293
FUND
FUND
2012
2011
ASSETS
TOTAL LIABILITIES
104,087
1,107,041
1,211,128
CURRENT ASSETS
NET ASSETS
Cash and cash equivalents
$ 3,038,328
$ 1,729,265
$ 4,767,593
$ 3,048,556
Investments
5,915,526
2,365,174
8,280,700
9,357,712
Accrued interest receivable
47,574
23,000
70,574
41,629
Prepaid items
-
200,077
200,077
149,077
Total current assets
9,001,428
4,317,516
13,318,944
12,596,974
CAPITAL ASSETS
Machinery and equipment
1,842,460
-
1,842,460
1,758,627
Vehicles
9,618,663
-
9,618,663
7,730,725
Construction in progress
1,369,778
-
1,369,778
1,300,830
Accumulated depreciation
(6,182,698)
-
(6,182,698)
(5,124,579)
Capital assets,
net of accumulated depreciation
6,648,203
-
6,648,203
5,665,603
TOTAL ASSETS
15,649,631
4,317,516
19,967,147
18,262,577
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
104,087
275,059
379,146
225,293
Incurred but not reported claims
-
831,982
831,982
725,359
TOTAL LIABILITIES
104,087
1,107,041
1,211,128
950,652
NET ASSETS
Invested in capital assets,
net of related debt
6,648,203
-
6,648,203
5,665,603
Unrestricted
8,897,341
3,210,475
12,107,816
11,646,322
TOTAL NET ASSETS
$ 15,545,544
$ 3,210,475
$ 18,756,019
$ 17,311,925
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER, 30, 2011)
OPERATING REVENUES
Charges for services
Other income
Total operating revenues
OPERATING EXPENSES
Personal services
Contractual services
Supplies
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 ASSETS
RISK
REPLACEMENT MANAGEMENT
$ 1,666,557 $ 8,393,989
41,178 1,198,291
- 471,610
63,703 9,825,129
206,893 -
1,320,768 -
1,591,364 10,296,739
116,371 (704,459)
68,162
30,636
30,887
-
99,049
30,636
215,420
(673,823)
11,888,103
1,660,012
242,485
1,660,012
242,485
1,875,432
(431,338)
NET ASSETS, BEGINNING OF YEAR 13,670,112 3,641,813
NET ASSETS, END OF YEAR $ 15,545,544 $ 3,210,475
97
EXHIBIT E-2
TOTALS
$ 10,060,546 $ 9,236,063
1,239,469 457,781
471,610
471,065
9,888,832
7,539,875
206,893
2,269
1,320,768
1,200,477
11,888,103
9,213,686
(588,088) 480,158
98,798
96,644
30,887
210,524
129,685
307,168
(458,403)
787,326
1,902,497
557,989
1,902,497
557,989
1,444,094
1,345,315
17,311,925 15,966,610
$ 18,756,019 $ 17,311,925
CITY OF ALLEN, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2011)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds
Cash paid to employees for services
Cash paid for goods and services
Cash paid for claims
Net cash provided by (used in) operating activities
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Transfers in
Net cash provided by non -capital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sale of capital assets
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
Interest on investments
Net cash provided by (used in) investing activities
RISK
REPLACEMENT MANAGEMENT
EXHIBIT E-3
TOTALS
2012 2011
$ 1,811,822 $ 9,541,280 $ 11,353,102 $ 9,514,171
- (471,610) (471,610) (471,065)
(270,596) (6,236,303) (6,506,899) (4,074,547)
(3,432,437) (3,432,437) (3,337,352)
1,541,226 (599,070) 942,156 1,631,207
1,660,012 242,485 1,902,497 557,989
1,660,012 242,485 1,902,497 557,989
(2,303,368) (2,303,368) (1,428,744)
30,887 30,887 210,524
(2,272,481) (2,272,481) (1,218,220)
57,343 1,019,669 1,077,012 (1,384,920)
46,673 23,180 69,853 104,206
104,016 1,042,849 1,146,865 (1,280,714)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1,032,773
686,264
1,719,037
(309,738)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
2,005,555
1,043,001
3,048,556
3,358,294
CASH AND CASH EQUIVALENTS, END OF YEAR $
3,038,328
$ 1,729,265
$ 4,767,593
$ 3,048,556
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation
Change in assets and liabilities:
Accounts receivables
Prepaids
Accounts payable
Total adjustments
Net cash provided by (used in) operating activities
$ 116,371 $ (704,459) $ (588,088) $480,158.00
1,320,768 1,320, 768 1,200,477
- - 1,184
- (51,000) (51,000) (75,683)
104,087 156,389 260,476 25,071
1,424,855 105,389 1,530,244 1,151,049
$ 1,541,226 $ (599,070) $ 942,156 $ 1,631,207
DISCRETELY PRESENTED COMPONENT UNITS
Allen Economic Development Corporation (AEDC) — AEDC is a legally separate entity from the City
and is responsible for aiding, promoting and furthering economic development within the City.
Allen Community Development Corporation (ACDC) — ACDC is a legally separate entity from the City
and is responsible for supporting the improvements in community parks and recreation, streets and
sidewalks, public safety and the community library.
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2012 AND 2011
EXHIBIT F-1
2012
2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
2,761,752
$
1,746,570
Investments
3,718,159
3,518,735
Sales tax receivable
1,291,485
1,221,645
Accounts receivable
2,153
2,501
Accrued interest receivable
23,593
20,592
Prepaid items
6,298
6,298
TOTAL ASSETS
$
7,803,440
$
6,516,341
LIABILITIES AND FUND BALANCES
CURRENT LIABILITIES
Accounts payable
$
182,509
$
80,097
Retainage payable
-
28,938
Accrued and other liabilities
9,655
10,603
TOTAL LIABILITIES
192,164
119,638
FUND BALANCES
Restricted
Capital projects
-
2,318,212
Debt service
752,727
754,194
Unassigned
6,858,549
3,324,297
TOTAL FUND BALANCES
7,611,276
6,396,703
TOTAL LIABILITIES AND FUND BALANCES
$
7,803,440
$
6,516,341
100
CITY OF ALLEN, TEXAS EXHIBIT F-2
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
ALLEN ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2012
Total governmental fund balance $ 7,611,276
Amounts reported for governmental activities in the statement of net assets
are different because:
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements. 346,610
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. (64,543)
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. (19,083,030)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and therefore are not reported in the
governmental funds balance sheet. 5,641,125
Net assets of governmental activities $ (5,548,562)
101
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
REVENUES
Sales and other taxes
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
Economic development
Capital projects:
Economic development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
102
EXHIBIT F-3
2012 2011
$ 7,396,803 $ 6,835,454
31,961 46,665
1,824 379,476
7,430,588 7,261,595
4,612,636 7,432,651
7,251 594,449
800,000
780,000
796,128
815,688
6,216,015
9,622,788
1,214,573
(2,361,193)
6,396,703
8,757,896
$ 7,611,276
$ 6,396,703
CITY OF ALLEN, TEXAS EXHIBIT F-4
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, 2012
Net change in fund balances - total governmental funds $ 1,214,573
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements. (27,794)
The repayment of the principal of long-term debt consumes the current financial resources
of governmental funds ($800,000). The transaction, however, has no effect on net assets. 800,000
Current year changes in accrued interest payable do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. 1,801
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds. (166,548)
Capital contributions to the primary government are reported in the statement of activities
but do not require the use of current financial resources. Therefore the expense
is not reported as an expenditure in the governmental funds. (1,400,000)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense. 7,251
Change in deficit of governmental activities $ 429,283
103
CITY OF ALLEN, TEXAS
COMPARATIVE BALANCE SHEETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2012 AND 2011
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 service
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
104
EXHIBIT F-5
2012
2011
$ 2,264,654 $
2,733,106
1,307,678
5,972,508
1,291,485
1,221,645
2,153
2,501
29,510
24,641
$ 4,895,480 $
9,954,401
$ 328,015
369,436
697.451
$ 1,733
1.733
1,106,296 1,107,008
3,091,733 8,845,660
4,198,029 9,952,668
$ 4,895,480 $ 9,954,401
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2012
Total governmental fund balance
Amounts reported for governmental activities in the statement of net assets
are different because:
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements.
Interest payable on long-term debt does not require current financial resources,
and, therefore, is not reported as a liability in the governmental funds
balance sheet.
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.
Net assets of governmental activities
105
EXHIBIT F-6
4,198,029
513,405
(158,843)
(34,563,165)
$ (30,010,574)
CITY OF ALLEN, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011
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
106
EXHIBIT F-7
2012 2011
$ 7,396,803 $ 6,835,454
38,137 56,257
7,434,940 6,891,711
1,383,429
975,149
8,854,142
499,770
1,005,000
965,000
1,947,008
1,984,752
13,189,579 4,424,671
(5,754,639) 2,467,040
9,952,668 7,485,628
$ 4,198,029 $ 9,952,668
CITY OF ALLEN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TO THE STATEMENT OF ACTIVITIES
ALLEN COMMUNITY DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued. However, these amounts are deferred and amortized
in the government -wide financial statements.
EXHIBIT F-8
(5,754,639)
(58,001)
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. 3,408
Repayment of the principal on long-term debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net assets. 1.005.000
Change in net assets of governmental activities
107
$ (4,804,232)
cum
CAPITAL ASSETS
USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
cum
CITY OF ALLEN, TEXAS
COMPARATIVE SCHEDULES OF CAPITAL ASSETS USED IN
THE OPERATIONS OF GOVERNMENTAL FUNDS — BY SOURCE (a)
SEPTEMBER 30, 2012 AND 2011
Total governmental funds capital assets
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS
BY REVENUE SOURCE
General obligation bond proceeds and interest income
Revenue bonds
Contributions
Other governments
General and other fund operations
Special revenue funds
Total governmental funds capital assets
EXHIBIT G-1
2011
$ 120,411,968
114,096,303
9,520,954
7,933,223
2,728,454
1,660,812
427,529,266
683,880,980
31,572,838
$ 745,439,306 $ 715,453,818
$ 186,598,852
10,475,000
364,069,269
9,951,500
153,095,694
21,248,991
$ 180,548,868
10,475,000
350,872,718
9,951,500
142,877,895
20,727,837
$ 745,439,306 $ 715,453,818
(a) This schedule presents only the capital asset balances related to governmental funds,
including infrastructure. Accordingly, the capital assets reported in the internal service
funds are excluded from the above amounts. Generally, the capital assets of internal
service funds are included as governmental activities in the statement of net assets.
108
2012
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land and land improvements
$ 126,146,774
Buildings
127,639,176
Machinery and equipment
10,339,350
Furniture and fixtures
8,058,581
Vehicles
2,749,635
Books
1,490,728
Infrastructure
439,913,639
Total property and equipment in service
716,337,883
Construction in progress
29,101,423
Total governmental funds capital assets
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS
BY REVENUE SOURCE
General obligation bond proceeds and interest income
Revenue bonds
Contributions
Other governments
General and other fund operations
Special revenue funds
Total governmental funds capital assets
EXHIBIT G-1
2011
$ 120,411,968
114,096,303
9,520,954
7,933,223
2,728,454
1,660,812
427,529,266
683,880,980
31,572,838
$ 745,439,306 $ 715,453,818
$ 186,598,852
10,475,000
364,069,269
9,951,500
153,095,694
21,248,991
$ 180,548,868
10,475,000
350,872,718
9,951,500
142,877,895
20,727,837
$ 745,439,306 $ 715,453,818
(a) This schedule presents only the capital asset balances related to governmental funds,
including infrastructure. Accordingly, the capital assets reported in the internal service
funds are excluded from the above amounts. Generally, the capital assets of internal
service funds are included as governmental activities in the statement of net assets.
108
CITY OF ALLEN, TEXAS
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION OF
GOVERNMENTAL FUNDS BY FUNCTION AND ACTIVITY (a)
AS OF SEPTEMBER 30, 2012
Construction in Progress
Total governmental funds capital assets $ 125,318,704 $ 828,070 $ 127,639,176 $ 10,339,350
(a) This schedule presents only the capital asset balances related to governmental funds, including infrastrucrure.
Accordingly, the capital assets reported in the internal servcie funds are excluded from the above amounts. Generally, the
capital assets of internal service funds are included as governmental activities in the statement of net assets.
109
Land
Machinery &
Function and Activity
Land
Improvements
Buildings
Equipment
GENERAL GOVERNMENT
Municipal court $
631,788 $
- $
289,669
$ 57,885
City administration
2,719,532
-
8,871,016
354,551
Information technology
-
-
-
538,177
Human resources
-
-
-
-
Internal services
-
-
-
372,059
Finance
-
-
-
-
Total general government
3,351,320
-
9,160,685
1,322,672
PUBLIC SAFETY
Police
-
-
8,528,747
904,067
Fire
78,932
-
7,342,256
977,275
Total public safety
78,932
-
15,871,003
1,881,342
PUBLIC WORKS
Community services & streets
51,274,858
-
13,184,077
609,836
Engineering
54,634,874
-
7,625,113
160,284
Total public works
105,909,732
-
20,809,190
770,120
CULTURE & RECREATION
Parks & recreation
15,478,720
828,070
70,756,911
5,063,074
Library
-
-
11,041,387
398,529
Total culture and recreation
15,478,720
828,070
81,798,298
5,461,603
COMMUNITY DEVELOPMENT
Building & code compliance
-
-
-
-
Planning & development-
-
-
16,988
Total community development
-
-
-
16,988
GRANT ADMINISTRATION
Grant Administration
500,000
-
-
886,625
Total grant administration
500,000
-
-
886,625
Construction in Progress
Total governmental funds capital assets $ 125,318,704 $ 828,070 $ 127,639,176 $ 10,339,350
(a) This schedule presents only the capital asset balances related to governmental funds, including infrastrucrure.
Accordingly, the capital assets reported in the internal servcie funds are excluded from the above amounts. Generally, the
capital assets of internal service funds are included as governmental activities in the statement of net assets.
109
EXHIBIT G-2
Furniture &
Other
Construction in
Fixtures
Vehicles
Books
Improvements
Progress
Total
$ 413
$ - $
-
$ 6,178
$ - $
985,933
838,708
-
-
-
12,783,807
21,624
-
-
1,346,688
-
1,906,489
5,771
-
-
-
5,771
18,321
122,770
34,927
-
548,077
23,991
-
-
-
-
23,991
908,828
122,770
-
1,387,793
-
16,254,068
299,811
486,007
-
1,184,977
-
11,403,609
289,841
1,074,359
-
-
-
9,762,663
589,652
1,560,366
-
1,184,977
-
21,166,272
57,718
119,413
-
260,941,692
-
326,187,594
469,584
79,884
-
136,643,826
-
199,613,565
527,302
199,297
-
397,585,518
-
525,801,159
5,183,974
532,385
-
38,557,166
-
136,400,300
839,459
-
1,425,171
147,514
-
13,852,060
6,023,433
532,385
1,425,171
38,704,680
-
150,252,360
-
62,343
-
-
-
62,343
9,366
-
-
-
-
26,354
9,366
62,343
-
-
-
88,697
-
272,474
65,557
1,050,671
-
2,775,327
-
272,474
65,557
1,050,671
-
2,775,327
-
-
-
-
29,101,423
29,101,423
$ 8,058,581
$ 2,749,635 $
1,490,728
$ 439,913,639
$ 29,101,423 $
745,439,306
110
CITY OF ALLEN, TEXAS EXHIBIT G-3
SCHEDULE OF CHANGES IN CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS - BY FUNCTION AND ACTIVITY (a)
FOR THE YEAR ENDED SEPTEMBER 30, 2012
(a) This schedule presents only the capital asset balances related to governmental funds, including infrastructure.
Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the statement of
net assets.
111
Governmental Funds
Governmental Funds
Capital Assets October
Developer
Capital Assets
Function and Activity
1. 2011
Contributions
Additions
Deductions
Transfers
September 30, 2012
GENERAL GOVERNMENT
Municipal Court
$ 979,755
$
$ -
$
$ 6,178
$ 985,933
City Administration
12,738,289
45,518
-
12,783,807
Information Technology
1,906,007
-
482
1,906,489
Human Resources
5,771
-
-
5,771
Internal Services
490,982
53,267
3,828
548,077
Finance
23,991
23,991
Total General Government
16,144,795
98,785
10,488
16,254,068
PUBLIC SAFETY
Police
10,793,061
125,574
(16,733)
501,707
11,403,609
Fire
9,153,764
143,182
465,717
9,762,663
Total Public Safety
19,946,825
268,756
(16,733)
967,424
21,166,272
PUBLIC WORKS
Community services & streets
312,956,838
46,681
13,184,075
326,187,594
Engineering
183, 693,691
12,423, 866
1,879,833
1,616,175
199,613, 565
Total Public Works
496,650,529
12,423,866
1,926,514
14,800,250
525,801,159
CULTURE & RECREATION
Parks & Recreation
134,266,948
772,685
615,786
(16,623)
761,504
136,400,300
Library
14,008,951
-
188,560
(348,969)
3,518
13,852,060
Total Culture & Recreation
148,275,899
772,685
804,346
(365,592)
765,022
150,252,360
COMMUNITY DEVELOPMENT
Building & Code Compliance
73,134
-
-
(10,791)
-
62,343
Planning & Development
14,471
11,883
26,354
Total Community Development
87,605
11,883
(10,791)
88,697
GRANT ADMINISTRATION
Grant Administration
2,775,327
2,775,327
Total Grant Administration
2,775,327
2,775,327
Total general fixed assets allocated
by function
683,880,980
13,196,551
3,110,284
(393,116)
16,543,184
716,337,883
Construction in progress
31,572,838
14,071,769
-
(16,543,184)
29,101,423
Total governmental funds capital
assets
$ 715,453,818
$ 13,196,551
$ 17,182,053
$ (393,116)
$ -
$ 745,439,306
(a) This schedule presents only the capital asset balances related to governmental funds, including infrastructure.
Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the statement of
net assets.
111
STATISTICAL SECTION
(UNAUDITED)
cum
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
environment within which the City's financial activities take place.
Operating Information 15, 16 & 17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides.
Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual
financial reports for the relevant year.
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