2021 Annual Comprehensive Financial Report_202205061020501666.pdf
CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2021
AS PREPARED BY THE
FINANCE DEPARTMENT
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021
Table of Contents
i
Page Exhibit
Introductory Section
Letter of Transmittal vii
Certificate of Achievement xii
Organizational Chart xiii
Elected Officials and Administrative Officers xiv
Financial Section
Independent Auditor’s Report 3
Management's Discussion and Analysis 5
Basic Financial Statements
Government-Wide Statements:
Statement of Net Position 19 1
Statement of Activities 20 2
Fund Financial Statements:
Governmental Funds Financial Statements
Balance Sheet – Governmental Funds 22 3
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 24 4
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds 26 5
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 28 6
Proprietary Funds Financial Statements
Statement of Net Position – Proprietary Funds 29 7
Reconciliation of the Statement of Net Position
Proprietary Funds to the Government-Wide
Statement of Net Position 30 8
Statement of Revenues, Expenses, and Changes
In Net Position – Proprietary Funds 31 9
Reconciliation of the Statement of Revenues,
Expenses, and Changes in Net Position of
Proprietary Funds to the Statement of Activities 32 10
Statement of Cash Flows – Proprietary Funds 33 11
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 34 12
Statement of Changes in Fiduciary Net Position 35 13
Component Units Financial Statements
Statement of Net Position – Component Units 36 14
Statement of Activities – Component Units 37 15
Notes to the Financial Statements 39
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021
Table of Contents – Continued
ii
Page Exhibit
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios –
Supplemental Death Benefits Fund 81 A-1
Schedule of OPEB Contributions –
Supplemental Death Benefits Fund 82 A-2
Schedule of Changes in Net OPEB Liability (Asset) and
Related Ratios – Defined Benefit Retiree Healthcare Plan 83 A-3
Schedule of OPEB Contributions –
Defined Benefit Retiree Healthcare Plan 84 A-4
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS) 85 A-5
Schedule of Contributions – Retirement Plan (TMRS) 86 A-6
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 87 A-7
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 88 A-8
Notes to the Required Supplementary Information 89
Combining and Budgetary Comparison Schedules
Major Governmental Funds
Budgetary Comparison Schedule – Debt Service Fund 93 B-1
Nonmajor Governmental Funds
Combining Balance Sheet 95 B-2
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances 96 B-3
Internal Service Funds
Combining Statement of Net Position 98 C-1
Combining Statement of Revenues, Expenses, and 99 C-2
Changes in Fund Net Position
Combining Statement of Cash Flows 100 C-3
Discretely Presented Component Units
Balance Sheet-Allen Economic Development Corporation 102 D-1
Reconciliation of the Governmental Fund Balance Sheet to the
Statement of Net Position 103 D-2
Statement of Revenues, Expenditures, and Change
in Fund Balance 104 D-3
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities 105 D-4
Balance Sheet-Allen Community Development Corporation 106 D-5
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 107 D-6
Statement of Revenues Expenditures, and Change
in Fund Balance 108 D-7
Reconciliation of the Governmental Fund Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities 109 D-8
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021
Table of Contents – Continued
iii
Page Table
Statistical Section
Net Position by Component 114 1
Changes in Net Position 115 2
Fund Balances, Governmental Funds 117 3
Changes in Fund Balances - Governmental Funds 118 4
Assessed Value and Estimated Actual Value of Taxable Property 119 5
Direct and Overlapping Property Tax Rates 120 6
Principal Property Taxpayers 121 7
Ad Valorem Tax Levies and Collections 122 8
Ratio of Outstanding Debt by Type 123 9
Ratio of General Bonded Debt Outstanding 124 10
Direct and Overlapping Governmental Activities Debt 125 11
Pledged Revenue Coverage 126 12
Demographic and Economic Statistics 127 13
Principal Employers 128 14
Full-Time Equivalent City Government Employees by
Function & Program 129 15
Operating Indicators by Function & Program 130 16
Capital Assets Statistics by Function & Program 131 17
iv
v
Introductory Section
vi
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100
WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org
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February 17, 2022
Mayor Kenneth M. Fulk
The Honorable Mayor and Members of the Allen City Council,
Citizens of Allen:
The Finance Department is pleased to submit the Annual Comprehensive Financial Report (ACFR) of the
City of Allen, Texas (the City), for the fiscal year ended September 30, 2021.
This report is published to provide the City Council, our citizens, City staff, and other readers with detailed
information concerning the financial position and activities of the City. Management has prepared the report
and is responsible for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data is
complete and reliable in all material respects. All disclosures necessary to enable the reader to gain an
understanding of the City’s financial activities have been included.
Also included in this report is an unmodified (“clean”) opinion on the City of Allen’s financial statements for
the year ended September 30, 2021, issued by Weaver and Tidwell, L.L.P. The independent auditor’s
report is located at the beginning of the financial section of the ACFR.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and the two should be read in conjunction with each other.
REPORTING ENTITY
This report includes all funds of the City including its component units. Component units are legally separate
entities for which the City is financially accountable but are not part of the City’s operations. The Allen
Economic Development Corporation (AEDC) and Allen Community Development Corporation (ACDC) are
included in the financial statements as discretely presented component units.
CITY PROFILE
The City of Allen is located in Collin County, which is the 16th fastest-growing county in the nation. Collin
County’s population reached 1,095,576 in 2021 and is expected to reach 2.4 million by 2050. Located 25
miles north of downtown Dallas on US 75, Allen encompasses approximately 27 square miles. The George
Bush Tollway and Sam Rayburn Tollway (Hwy 121) provide direct access into the Metroplex and access to
Love Field (27 miles) and Dallas Ft Worth International Airport (31 miles). The City of Allen sits in a prime
location for restaurants, shopping centers and other retail venues. The quality of the City’s community
attracts well-educated residents with a high level of spending power and disposable income. Allen’s
population reached 108,207 residents in 2021, more than doubling from just over 45,000 in the year 2000
and is projected to reach approximately 140,000 at build-out.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a vote of the
people and provides for seven non-partisan Council members, including the Mayor, to be elected at-large
to staggered terms of three years. The Council is responsible for enacting ordinances, resolutions, and
regulations governing the City as well as adopting the annual budget which serves as the foundation for
financial planning and control. The City Council appoints the City Manager, who has full responsibility for
carrying out Council policies and administering City operations. The Council also appoints the Municipal
Judge and various advisory boards.
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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 currently supports a staff of 847.44 full time equivalent
employees.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
The Dallas-Fort Worth area has an incredibly diversified economy, an extremely low unemployment rate, a
growing labor force, low cost of living, affordable real estate, and a superior business climate. The City of
Allen’s unemployment rate as of September 2021 was 3.6%, and the Collin County unemployment rate
was 3.8% -- both of which were below the national rate of 4.7%. The City has seen the job market increase
by 3.3% over the last year. Allen has increasingly become a home for highly educated, high-income
professionals, yet maintains a welcoming spirit for people and families from all stations of life. The median
household income in Allen was $113,790 in 2021, and over 55% of the City’s residents have earned a
bachelor’s degree or higher.
Allen’s Position in the Region
Along with being situated in an ideal location just 12 miles north of Dallas on US 75, Allen’s appealing
demographics have spurred along record-breaking growth. The population of 108,207 is expanding at a
moderate growth rate. Allen is a community that offers exceptional housing, award-winning schools, steady
job growth, and dynamic business climate all of which are strong factors in the success of the City’s
economy.
Allen is a vibrant city with award winning amenities. The pro-business environment and superior quality of
life come together to empower Allen’s residents and businesses to achieve higher levels of success. This
unique combination has received national recognition, including AdvisorSmith ranking Allen the 5th safest
mid-sized City in America (2021) and an overall Niche grade of “A+”.
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. In June 2021, the ratings on the City’s General Obligation debt were reaffirmed
at AAA by Standard and Poor’s and Aaa by Moody’s. The Water and Sewer Revenue Bonds are rated
‘AAA’ from Standard and Poor’s and Aa2 from Moody’s. The S&P’s June 2021 rating report supporting the
‘AAA’ rating stated the following credit factors:
Very strong economy
Very strong management with strong financial policies and practices
Very strong budgetary flexibility and strong budgetary performance
Very strong liquidity
Adequate debt and contingent liability position
Strong institutional framework score.
During fiscal year 2016, the City began a CIP Bond Program that totaled $93 million and estimated to be
completed over seven years. During fiscal years 2017, 2018, 2019, and 2020 respectively, the City issued
$8,355,000, $11,845,000, $8,630,000, and $23,385,000 related to the Bond Program. In fiscal year 2021,
the City issued $10,595,000 of General Obligation Improvement and Refunding Bonds to construct library
facilities, make improvements to streets, and to refund certain outstanding obligations of the City.
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Additionally, during fiscal year 2021, the City issued $22,945,000 in Combination Tax and Revenue
Certificates of Obligation to construct a new recreation center and make public infrastructure improvements.
The City also issued $10,675,000 in Water and Sewer System Revenue Bonds. The purpose of the bonds
is to fund water and sewer line replacements in older neighborhoods within the City. This is a change in
philosophy as the City had been funding all Water and Sewer Fund capital improvements with operating
funds and has now adopted a hybrid approach that will slow customer rate increases as wholesale rates
from NTMWD increase.
Fiscal Year 2021 Highlights
During fiscal year 2021, the City accomplished many initiatives to enhance livability, improve personal
experience, invest in the future, and celebrate the successes. From quality neighborhoods to park
development, community safety, and environmental initiatives, it’s no surprise that people move here to
experience the quality of life the citizens of Allen enjoy.
As the City’s population continued to grow, the need for new housing continued as well, with the Community
Development Department issuing over six-hundred residential single family building permits for the past
year. The City welcomed a variety of new businesses, including Highlands Residential Mortgage, Micron
Technology, Inc. and Crawford & Co. Finally, the City facilitated several new residential developments
including The Montgomery Urban Residential, Uptown Crossing senior living community, and Stacy Green
Townhomes. The City also administered Community Development Block Grant funds which went toward
the rehabilitation of twenty-four homes within Allen’s older neighborhoods.
The City has an overall crime rate of 11 per 1,000 residents, making the crime rate here near the average
for all cities and towns of all sizes in the United States. However, compared to other communities of similar
population size, the City has a crime rate that is one of the lowest in the nation. This means that for
comparably sized cities across the United States, the City is one of the safest according to
NeighborhoodScout's exclusive analysis of FBI crime data. NeighborhoodScout's research shows that
Allen's violent crime rate is 1 per 1,000 inhabitants, which is well below the national average for all
communities of all population sizes.
The Fire Department continues to respond to the COVID-19 pandemic, increase awareness of available
Emergency Medical Services, and deliver the highest level of care to its citizens and visitors. The Fire
Department re-wrote medical treatment protocols to include the latest in-patient care, expanded
professional development programs for staff, provided education programs to the community, and installed
additional outdoor warning sirens. The renovation of the central fire station was completed, and the design
phase of Fire Station #6 has started. Lastly, the department increased inter-operability with neighboring
fire departments through joint training and resource sharing.
Environmentally focused public activities have continued to be impacted due to COVID-19. Educational
opportunities were provided to home schoolers, local schools, scouts, and youth camps. Despite the
pandemic the City was able to provide 58 programs to over 500 children. Various Keep Allen Beautiful
(KAB) youth contests and award ceremonies were conducted on-line along with Council recognition. CWD
also continued to support all residential and commercial waste and recycling activities despite pandemic
impacts on their operations. KAB and the City continue to be recognized by Keep Texas Beautiful as a
Gold Star Affiliate and Governor’s Community Achievement Award - Sustained Excellence Award Winner.
The City celebrated its 21st annual Arbor Day with over 100 new trees planted throughout the City. 2021
marks the City’s 20th year as a Tree City USA, and its 19th National Arbor Day Foundation Growth Award.
The Allen Public Library (the “Library”) continues to provide a vibrant, welcoming environment for Allen
citizens with an emphasis on exemplary customer service and support for lifelong learning, literacy, access
to information, and bringing the community closer together. To encourage literacy and lifelong learning,
the Library offers programs for children and teens on art, science (including robotics and coding), animals,
and reading. Adults find opportunities to feed their literary, cultural, historical, musical, and travel interests
augmented by hands-on activities for crafts and food. During the hot Texas summers, visitors of all ages
participate in the cool Summer Reading Clubs, while reading, learning, and earning prizes. The Library’s
digital collection, both e-books and e-audiobooks, continued to grow with the cloud Library service, notably
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through a consortium with thirty-three other Texas libraries, to offer more than 215,000 items. Physical
books and DVD’s remained more popular than ever, especially among children and families. During fiscal
2021, the Library was recognized by the Texas Municipal Library Directors Association for the seventh
consecutive year for Achievement of Library Excellence. The Library also provided citizens with access to
information outside the Library through databases, Interlibrary Loans, and expanded options for digital
books, audiobooks, digital magazines, and digital graphic novels from cloudLibrary.
During fiscal 2021, the CDC oversaw the expenditure of Type B half-cent sales tax revenue on projects that
include: trail development and enhancement; Allen USA Celebration; Demand Response – paratransit
transportation − Trail Marker Program; 3rd party consultant for TRC process; planning and design services
for the future dog park; irrigation central control replacements; Heritage Park renovation; playground
shade structures; recreation facility security cameras and fitness equipment; Rolling Hills Park - planning
and design; Erosion control at the Courses at Watters Creek; steam locomotive at Allen Heritage Center;
and the Parks and Recreation master plan update.
The Allen Economic Development Corporation (AEDC) worked to bring a variety of companies and related
development to Allen. The AEDC facilitated the completion of One Bethany West at Watters Creek, the
200,000 SF Class A office building that was 50% leased upon opening. The AEDC recruited MD7, a
mobile infrastructure consultancy to relocate their corporate headquarters to One Bethany West, which will
create over 200 new jobs. Micron Technology was also welcomed to the newly constructed building, which
will house approximately 200 of their employees. Numerous companies opened including: the relocation
and expansion of Brass Roots Technologies; completed construction of the Billings Productions facility,
which included manufacturing operations and educational/community space. The AEDC facilitated
commencement of construction for Allen Tech Hub, a 105,000 SF technology-focused office building in
Watters Creek by Heady Investments. They also negotiated and executed the infrastructure incentive
agreements for The Farm in Allen, a 135-acre mixed-use development with over 1.6 million SF of office
space and a family friendly entertainment venue aptly named The Hub. The AEDC also helped process $3
million in local small business grants authorized by City Council.
One of the City’s major draws, Allen Event Center, consists of the main arena and support facilities, the
Allen Community Ice Rink, the south parking structure, and shared ownership of the north parking structure
with The Village at Allen. The Center hosts a wide variety of activities including shows, concerts,
exhibitions, contests, athletic competitions, cultural events, trade shows, as well as civic ceremonies and
activities. While the facility typically has an estimated annual economic impact of over $12,000,000, the
COVID-19 pandemic continues to affect the attendance of sporting events and live shows. Allen Event
Center is also the home to professional sports; the Allen American Hockey Club (ECHL), and the Dallas
Sidekicks Soccer Club (MASL). The Center celebrated its 12th anniversary in November 2021.
With all this happening within Allen’s borders, it’s clear that the city is working hard to provide every resident
and visitor with great experiences, services, and safety.
Relevant Financial Policies
The City’s financial policies and practices set forth the basic framework for the fiscal management of the
City. The policies and procedures were developed within the parameters established by applicable
provisions of the Texas Local Government Code, the City of Allen charter, and internal management laws,
and are reviewed on a periodic basis. 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. On a quarterly
basis, the Finance Department prepares financial and investment reports that are presented to the City
Council.
Internal Control
Management of the City, through its Finance Department, is responsible for the implementation,
maintenance, and monitoring of a set of comprehensive internal controls. The goal of the City’s system of
internal control is to limit opportunity for theft, fraud, or abuse by ensuring adequate separation of duties
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and systematic monitoring with a positive control environment set at the top of the organization. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments
by management.
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 Annual
Comprehensive Financial Report for the fiscal year ended September 30, 2020. Fiscal year 2020 was the
twenty-second consecutive year for which the City has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, for Excellence in Financial Reporting, a government must publish
an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We
believe that our current ACFR 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.
The City also received the GFOA's Award for Distinguished Budget Presentation for its annual program of
services dated October 1, 2020. This is the twenty-second consecutive year the City has received the
award. In order to qualify for the Distinguished Budget Presentation Award, the government's budget
document was judged to be proficient in several categories including policy document, financial plan,
operations guide, and communications device.
Acknowledgements – We would like to express our sincere gratitude to City’s personnel who contributed
to the production of this report, especially the accounting division. Appreciation is expressed to
representatives of Weaver and Tidwell, L.L.P., for their invaluable assistance in producing the final
document, and to the City Manager’s office and the members of the City Council, whose leadership and
commitment are vital to the health and vitality of the City of Allen.
Respectfully submitted,
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CITY OF ALLEN
ORGANIZATIONAL CHART
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CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
SEPTEMBER 30, 2021
Councilmembers
Mayor Kenneth M. Fulk
Mayor Pro Tem, Place No. 6 Baine Brooks
Councilmember, Place No. 1 Daren Meis
Councilmember, Place No. 2 Carl Clemencich
Councilmember, Place No. 3 Dave Cornette
Councilmember, Place No. 4 Chris Schulmeister
Councilmember, Place No. 5 Dave Shafer
Management Staff
City Manager Eric Ellwanger
Chief Financial Officer Peter Phillis
Assistant Chief Financial Officer Chris Landrum
Strategic Services Auditor Ryan Patterson
Chief Accountant Tru Nguyen
1
Financial Section
2
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
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Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Allen, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of City of Allen, Texas (the City) as of and for the year ended
September 30, 2021, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information
of the City as of September 30, 2021, 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.
The Honorable Mayor and Members of City Council
City of Allen, Texas
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and budgetary
comparison schedules, and statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and budgetary comparison schedules, as listed in the table of contents, are the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the combining and budgetary comparison schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 17,
2022, 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 the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 17, 2022
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Management’s Discussion and Analysis
As management of the City of Allen, Texas (the “City”), 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, 2021.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources (net position) at September 30, 2021, by $647,175,402. Of this amount,
$129,411,202 (21%) represented the unrestricted net position, which may be used to meet the
City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $18,421,305. Out of this, $12,042,297 is from governmental
activities and $6,379,008 is from business activities.
On a government-wide basis, the City’s total assets increased by $55,768,893 or 7% and total
liabilities increased by $36,052,987 or 20%.
As of September 30, 2021, the City’s governmental funds reported combined ending fund
balances of $143,575,916 an increase of $35,562,361 or 33% in comparison to the previous year.
Approximately, $27,554,966 or 19% of the fund balance, is available for spending at the
government’s discretion (unassigned fund balance).
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 like that of a private-sector
business.
The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources,
and liabilities and deferred inflows of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as useful indicators 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 that shows how the City’s net position changed during
the fiscal year. All changes in net position are reported when the underlying event that gives rise to the
change occurs, regardless of the timing of related cash flows. Accordingly, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused compensated absences). Both the Statement of Net Position
and the Statement of Activities are prepared utilizing the accrual basis of accounting.
In the government-wide financial statements, on pages 19 through 21, the City is divided into three kinds
of activities:
Governmental activities - Most of the City’s basic services are reported here, including the police,
fire, library, community development, parks and recreation, municipal court, and general
administration. Property and sales taxes, charges for services, franchise fees, and state and federal
grants finance most of these activities.
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Business-type activities - The City’s water, sewer, solid waste, drainage, and golf course operations
are reported here. These are functions intended to recover all or a significant portion of their costs
through user fees and charges.
Component units - The City includes two separate legal entities in this report: the Allen Economic
Development Corporation (AEDC) and the Allen Community Development Corporation (ACDC).
Although legally separate, these component units are important because the City is financially
accountable for them.
Fund financial statements - A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The funds of the City can be divided into three categories: governmental, proprietary,
and fiduciary funds.
Governmental Funds - These funds are used to account for most 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, which
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 funds balance sheet and in the governmental funds statement of revenues, expenditures,
and changes in fund balances for the General Fund, Debt Service Fund, General Capital Projects Fund,
Grants Fund and General Obligation Bond Fund, all of which are major funds. Data for the other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of the non-major governmental funds is provided in the form of combining statements elsewhere in this
report. The basic governmental fund financial statements can be found on pages 22 through 28 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 and 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.
7
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 major funds of the City.
The Drainage Fund and the Golf Course Fund are the only remaining enterprise funds, and they are being
presented as major funds even though they do not meet the criteria of a major fund. 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 schedules
elsewhere in this report.
The basic proprietary fund financial statements are located on pages 29 through 33 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of the primary government. Fiduciary funds are not reported in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements are located on pages 34 and 35 of this report.
Notes to the Financial Statements - Additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements is provided in the notes to the
financial statements located on pages 39 through 78 of this report.
Required Supplementary Information includes budgetary comparison schedules that have been
provided for the general fund and grants fund to demonstrate compliance with the budget. Required
supplementary information also includes schedules of changes in net liabilities and related ratios and on
contributions to the City's pension and other postemployment benefits (OPEB). The City participates in
Texas Municipal Retirement System (TMRS) for its pension plan and provides its employees with post-
retirement healthcare benefits (OPEB). The required supplementary information is found on pages 81
through 89 of this report.
The combining and budgetary schedules referred to earlier include information for nonmajor
governmental funds, internal service funds, and the discretely presented component units, and are
presented immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, over time net position may serve as a useful indicator of the financial position of a
government. The assets and deferred outflows of the City of Allen exceed the liabilities and deferred
inflows by $647,175,402 at September 30, 2021.
By far the largest portion of the City’s net position, $502,191,637 or 78%, reflects its net investment in capital
assets (i.e. land, buildings, infrastructure, vehicles, machinery, and equipment). The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending.
An additional portion of the City’s net position, $15,572,563 or 2%, represents resources that are subject to
external restrictions on how those resources can be used. The remaining balance of $129,411,202 (20%) is
available to be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City reported a positive balance in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
8
The net position for governmental activities and business-type activities are summarized as follows:
2021 2020 2021 2020 2021 2020
195,021,780$ 148,922,914$ 83,767,718$ 68,394,367$ 278,789,498$ 217,317,281$
455,623,057 463,536,156 126,714,228 124,504,453 582,337,285 588,040,609
650,644,837 612,459,070 210,481,946 192,898,820 861,126,783 805,357,890
13,438,962 8,349,361 1,664,766 990,388 15,103,728 9,339,749
154,118,063 135,752,316 36,272,031 25,683,913 190,390,094 161,436,229
21,517,657 14,972,875 3,366,712 2,812,372 24,884,369 17,785,247
175,635,720 150,725,191 39,638,743 28,496,285 215,274,463 179,221,476
12,324,295 6,001,753 1,456,351 720,313 13,780,646 6,722,066
Net investment in capital assets 388,795,081 392,368,425 113,396,556 113,355,391 502,191,637 505,723,816
Restricted 14,807,800 13,891,413 764,763 513,520 15,572,563 14,404,933
Unrestricted 72,520,903 57,821,649 56,890,299 50,803,699 129,411,202 108,625,348
Total net position 476,123,784$ 464,081,487$ 171,051,618$ 164,672,610$ 647,175,402$ 628,754,097$
Current and other assets
Table 1
Statement of Net Position
Governmental Activities Business-type Activities Total
Deferred inflows of resources
Net position:
Capital assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
As of September 30, 2021, the City had an overall increase in net position of $18,421,305 for the primary
government, which represents an increase of $12,042,297 for governmental activities and an increase of
$6,379,008 for business-type activities. Details are in Table 2 as listed below.
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services 11,923,642$ 9,748,420$ 62,161,777$ 61,940,373$ 74,085,419$ 71,688,793$
Operating grants and contributions 4,874,743 3,427,631 - - 4,874,743 3,427,631
Capital grants and contributions 8,535,198 10,639,664 5,695,888 8,332,962 14,231,086 18,972,626
General revenues:
Property taxes 71,946,802 70,917,335 - - 71,946,802 70,917,335
Sales tax 25,599,945 21,686,335 - - 25,599,945 21,686,335
Franchise taxes 6,821,738 7,454,713 - - 6,821,738 7,454,713
Hotel motel taxes 1,337,147 1,156,398 - - 1,337,147 1,156,398
Other taxes 1,171,378 1,195,296 - - 1,171,378 1,195,296
Interest earnings 1,118,970 4,246,550 398,387 1,140,957 1,517,357 5,387,507
Gain on sale of capital assets 322,084 144,347 7,585 9,713 329,669 154,060
Miscellaneous 5,311,149 4,188,530 444,175 353,278 5,755,324 4,541,808
Total revenues 138,962,796 134,805,219 68,707,812 71,777,283 207,670,608 206,582,502
Expenses:
General government 22,940,360 24,937,087 - - 22,940,360 24,937,087
Public safety 49,532,988 47,369,212 - - 49,532,988 47,369,212
Public works 19,661,514 22,393,268 - - 19,661,514 22,393,268
Culture and recreation 29,359,242 29,015,632 - - 29,359,242 29,015,632
Community development 6,330,539 5,238,233 - - 6,330,539 5,238,233
Interest on long-term debt 3,103,192 2,745,698 - - 3,103,192 2,980,513
Water and sewer - - 46,442,937 45,524,999 46,442,937 45,524,999
Solid waste services - - 6,824,441 6,525,391 6,824,441 6,525,391
Drainage - - 1,497,014 1,555,570 1,497,014 1,555,570
Golf course - - 3,557,076 3,166,856 3,557,076 3,166,856
Total expenses 130,927,835 131,699,130 58,321,468 56,772,816 189,249,303 188,471,946
8,034,961 3,106,089 10,386,344 15,004,467 18,421,305 18,110,556
Transfers 4,007,336 4,603,154 (4,007,336) (4,603,154) - -
Change in net position 12,042,297 7,709,243 6,379,008 10,401,313 18,421,305 18,110,556
464,081,487 456,372,244 164,672,610 154,271,297 628,754,097 610,643,541
Net position, end of year 476,123,784$ 464,081,487$ 171,051,618$ 164,672,610$ 647,175,402$ 628,754,097$
Table 2
Changes in Net Position
Net position, beginning of year
Governmental Activities Business-type Activities Total
Change in net position before
9
Governmental activities
Revenues – The following chart visually illustrates the City’s revenue by sources for governmental activities:
Charges for services
8%Operating grants
3%Capital grants
6%
Property taxes
50%
Sales taxes
18%
Franchise taxes
5%Other
7%
Transfers
3%
Revenues by Source - Governmental Activities
Revenues for the City’s governmental activities totaled $138,962,796, an increase of $4,157,577 (3%). Major
components of revenue increases and decreases are explained as follows:
Property taxes increased by $1,029,467 (1%), due to an increase in assessed value and new
property additions.
Sales taxes increased by $3,913,610 (18%), as a result of stimulus payments and a robust recovery
from the COVID-19 pandemic.
Franchise taxes decreased by $632,975 (8%), due to lower activities because of coronavirus.
Hotel motel taxes increased $180,749 (16%), as a result of increased travel.
Other tax revenues decreased by $23,918 (2%), due to lower fines and activities.
Charges for services increased by $2,175,222 (22%) primarily due to city facilities opening back up.
Operating grants and contributions increased by $1,447,112 (42%), due to the recognition of grant
revenue.
Capital grants and contributions decreased by $2,104,466 (20%) with lower construction activities.
Interest earnings decreased by $3,127,580 (74%) over prior year, as a result of interest rates and a
decrease in fair market values of investments during fiscal 2021.
Expenses for governmental activities totaled $130,927,835, a decrease of $771,295 (1%) from fiscal year
2020. Components of increases and decreases are explained as follows:
Expenses for General Government decreased by $1,996,727 (8%), due primarily to economic
incentives and grants.
Expenses for Public Safety increased by $2,163,776 (5%), due primarily to the scheduled salaries
market adjustment for both Fire and Police departments.
Expenses for Public Works decreased by $2,731,754 (12%), due to lower activities in street
maintenance.
Expenses for Culture and Recreation increased by $343,610 (1%), due to increased activities.
Expenses for Community Development increased by $1,092,306 (21%), due to grant related
activities.
10
The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Expenses and Program Revenues - Governmental
Activities
Expenses
Revenues
Business-type activities –
Revenues from business-type activities totaled $68,707,812, a decrease of $3,069,471, or 4%. Major
components of the net decrease are as follows:
Charges for services for business-type activities increased by $221,404 (less than 1%), due to an
increase in water and sewer revenues with increased water and sewer rates.
Capital grants and contributions decreased by $2,637,074 (32%) over the prior year due to lower
construction activity.
Investment earnings decreased by $742,570 (65%) over fiscal 2020 due to lower interest rates and
a decrease in the fair market value of investments during fiscal year 2021.
Expenses for business-type activities increased by $1,548,652, or 3%. The increase was due to an increase
in cost of services and supplies. The following chart illustrates the relationship between expenses and
program revenues for business-type activities:
11
Revenues – The following chart visually illustrates the City’s revenue by sources for business-type activities:
Charges for services
91%
Capital grants and
contributions
8%
Other
1%
Revenues by Source - Business-type Activities
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Water and sewer Solid waste services Drainage Golf course
Expenses and Program Revenues - Business-type Activities
Expenses
Revenues
12
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 a combined ending fund balance
of $143,575,916, an increase of $35,562,361 or (33%) in comparison with the prior fiscal year. Approximately
19%, or $27,554,966, constitutes unassigned fund balances, which are available for spending at the
government’s discretion. The remaining fund balances are classified as non-spendable, restricted, or
assigned to indicate that they are not available for new spending allocation. The non-spendable portion
includes $115,414 related to prepaid items and $31,037 associated with inventories. The restricted portion
includes: debt service ($918,379), capital expenditures ($57,534,190), tourism ($2,202,504), asset forfeiture
($143,951), state and federal grants ($261,457), park acquisition and development ($1,745,558), tax
increment financing agreements ($7,931,267), court technology ($150,492), juvenile case manager
($6,835), PEG fees ($1,162,109), radio system ($455,114), court security ($12,871), public safety and library
enhancements ($443,514), and cemetery trust ($63,627). In addition, $42,842,631 was assigned to capital
expenditures.
General Fund. The General Fund is the chief operating fund of the City. As of the end of the current fiscal
year, the total unassigned fund balance was $27,554,966, while the total fund balance was $27,764,293.
As a measure of the general fund’s liquidity, it may be useful to compare unassigned fund balance and
total fund balance to total fund expenditures. Unassigned fund balance represents 27% of total General
Fund expenditures.
The original budget included a planned balanced budget with no change in fund balance. However,
the General Fund balance increased by $866,147 or 3% during the current fiscal year. This was the result
of achieving actual expenditures below budget and reductions in general government expenditures.
Debt Service Fund. The Debt Service Fund balance of $918,379, all of which is restricted for the payment
of debt, represents a decrease from the prior year of $940,351 (51%). The City’s annual debt service
requirements outweighed the higher property valuation.
Capital Projects Fund. The General Capital Projects Fund provides information on cash financed capital
projects and had an ending fund balance of $42,843,382 at September 30, 2021, an increase of
$8,139,412. Revenues and other financing sources totaled $11,215,800, which includes $1.5M received
from Allen Sports Association for S. G. Terrell Community P&R Center, $1,518,075 from other funds to cash
finance capital projects, $1,207,470 in roadway impact fees for street improvements, $990,672 received
from HHSC for reimbursement of Fire Department ambulances service, and $333,156 in charges for
median and streets improvements. Total expenditures and other uses of $3,309,408 consisted primarily of
$836,753 for traffic signal installation and improvements, $937,247 for street and alleys improvements and
$256,660 for Public Safety hardware and software.
Grants Fund. The Grants Fund accounts for monies received from other governmental agencies that have
restricted legal requirements and multi-year budgets and had an ending fund balance of $261,457, a
decrease of $20,081 (7%) from the prior year. In fiscal year 2021, the Grants Fund had $1,506,463 remaining
from the 2020 advanced funding from the CARES Act related to the COVID-19 pandemic. CARES Act
expenditures of $534,970 were recognized as revenue in fiscal year 2021 and the remaining balance of
$971,493 was refunded to Collin County. The Grants Fund also received $5,079,935 in advanced funding
from the American Rescue Plan Act (ARPA), also related to the COVID-19 pandemic. There were no
ARPA expenditures in 2021 and the full balance is recorded as unearned revenue.
13
General Obligation Bond Fund. The General Obligation Bond Fund had an ending fund balance of
$57,534,190, which represents an increase of $25,646,884 (80%) from the prior year. Expenditures totaled
$7,651,596, which consisted mainly of $4,099,524 for the S. G. Terrell Community P&R Center, $732,527 for
street and alleys improvements, $619,837 for the Central Fire Station remodel, and $271,095 for traffic
signals. Other financing sources consisted mainly of issuance of bonds totaling $27,200,000 and the
related premium of $6,026,155.
Proprietary funds
The City’s proprietary funds provide information like the presentation in the government-wide financial
statements, but in more detail. As of September 30, 2021, the unrestricted net position for all enterprise
funds were as follows: Water and Sewer, $49,498,101; Solid Waste, $3,484,169; Drainage, $755,243 and
Golf Course, $1,693,513. The total change in net position for these funds was an increase of $5,877,593; a
decrease of $407,707; a decrease of $73,000; and an increase of $930,759, respectively.
The Water and Sewer Fund had an increase in net position as a result of an increase in water and sewer
rates. The Solid Waste Fund had a decrease in net position due to a reduction in garbage collection fees.
The Drainage Fund had a decrease in net position due to increased operating expenses and a reduction
in gifts and donations. The Golf Course Fund had an increase in net position due to the increase in driving
range and green fee revenues.
General Fund Budgetary Highlights
During April and May each year, all accounts are evaluated to determine whether they are in line with
the original budgets. Accounts that are under or over budget are revised to meet year-end final
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 fiscal year ended September 30, 2021, the
City Council amended the budget for the General Fund one time.
Adjustments made during fiscal year 2021 increased the original revenue budget by $91,484 and
increased the expenditure budget by $423,858. Due to actual expenditures being $1,996,490 less than
the revised budget and revenues exceeding the revised budget by $4,882,439, the City was able to
increase the unassigned General Fund balance by $728,782, after net transfers. The unassigned fund
balance of $27,554,966 is equal to 25%, or 90 days of next year’s operating budget.
CAPITAL ASSETS
The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2021, was $582,337,285 (net of accumulated depreciation). Investment in capital assets
includes land and improvements, buildings, vehicles, machinery and equipment, park land and facilities,
roads and bridges. About 78% of the capital assets are governmental and 22% represent business-type
activities. There was a decrease of 1% in the investment in capital assets for the current fiscal year.
2021 2020 2021 2020 2021 2020
Land 156,158,009$ 154,055,221$ 4,091,626$ 4,091,626$ 160,249,635$ 158,146,847$
Buildings 70,134,557 65,072,458 - - 70,134,557 65,072,458
- 111,587,595 110,837,749 111,587,595 110,837,749
Other Improvements 197,377,984 210,021,866 985,301 330,865 198,363,285 210,352,731
Furniture and fixtures 209,569 265,852 - - 209,569 265,852
Vehicles 7,197,873 7,903,493 591,232 326,283 7,789,105 8,229,776
Machinery and equipment 2,485,312 3,011,000 915,980 1,220,231 3,401,292 4,231,231
Construction in progress 22,059,753 23,206,266 8,542,494 7,697,699 30,602,247 30,903,965
Total 455,623,057$ 463,536,156$ $126,714,228 124,504,453$ 582,337,285$ 588,040,609$
Towers, tanks, and pump stations
Table 3
Capital Assets at Year-end, Net of Accumulated Depreciation
Governmental Activities Business-type Activities Total
14
The major governmental-type capital improvement projects and developer contributions during the
current fiscal year included the following:
Developer Contributed Streets, Alleys, and Rights of Way 6,214,462$
S G Terrell Community P&R Center 4,150,593
Ridgeview Drive Trail Connections 1,544,580
Fire Station #6 641,833
Street construction:
Alma/Ridgeview Roadway Improvements 850,149$
Street and Alley Improvements 573,838
Traffic Signal @ Bethany & Bel-Air 561,073
Business-type capital improvement projects and developer contributions during the current fiscal year
include the following:
Developer contributed water mains and sewer lines 2,013,893$
Windridge 1&2 Water and Sewer Rehabilitation 3,806,951
Sloan Creek Trunk Sewer 1,569,032
Additional information on the City’s capital assets can be found in Note 4 of this report.
DEBT ADMINISTRATION
As shown in Table 4, the City’s total outstanding debt of the primary government at September 30, 2021,
was $190,390,094. Of this total, $154,118,063 (81%) was associated with governmental activities and
$36,272,031 (19%) was business-type activities. Total gross bonded debt and a note payable accounted
for $156,710,955, which include $82,380,000 of General Obligation (G.O.) bonds and $22,945,000 of
Certificates of Obligation backed by the full faith and credit of the primary government; $28,955,000
secured solely by water and sewer revenues; notes payable balance of $3,580,000 and $18,850,955 in net
premiums and discounts from bond issuances. Other long-term debt relates to accrued compensated
absences, net pension liability, net OPEB liability, and capital leases liability.
Outstanding debts associated with the component units totaled $35,239,494. Out of which, $33,845,000
are secured by future sales tax revenue; $666,522 (notes payable) are secured by land; and $727,972 are
premiums and discounts from bond issuances.
During fiscal year 2021, the City issued General Obligation Improvement and Refunding Bonds in the
amount of $10,595,000; $22,945,000 of Combination Tax and Revenue Certificates of Obligation, and
$10,675,000 in Waterworks and Sewer System Revenue Bonds.
The revenue bond debt for both component units relates to debt issued to support public infrastructure
improvements, land acquisition, and construction of the Allen Event Center. The notes payable in the
Component Units relate to a loan agreement which Allen Economic Development Corporation entered
to finance the purchase of 31 acres of land. Total debt of the Component Units decreased by 4.0%. Total
debt for the Allen Economic Development Corporation increased by 2.5%, and for the Allen Community
Development Corporation, total debt decreased by 7.3%. During the year, the Allen Economic
Development Corporation issued Sales Tax Revenue Bonds in the amount of $2,295,000.
15
2021 2020 2021 2020 2021 2020 2021 2020
General obligation bonds 82,380,000$ 88,395,000$ -$ -$ 82,380,000$ 88,395,000$ -$ -$
Certificates of obligation 22,945,000 - - - 22,945,000 - - -
Revenue bonds payable - - 28,955,000 19,450,000 28,955,000 19,450,000 - -
Premiums and discounts 15,370,849 10,585,840 3,480,106 2,070,599 18,850,955 12,656,439 727,972 860,330
Sales tax revenue bonds - - - - - - 33,845,000 34,540,000
Tax notes 3,580,000 4,920,000 - - 3,580,000 4,920,000 666,522 1,319,975
Total gross bonded debt 124,275,849 103,900,840 32,435,106 21,520,599 156,710,955 125,421,439 35,239,494 36,720,305
Compensated absences 8,228,298 7,854,230 836,174 787,220 9,064,472 8,641,450 - -
Net pension liability 19,586,451 22,391,559 2,435,432 2,762,777 22,021,883 25,154,336 - -
Net OPEB liability 1,924,927 1,559,682 232,784 190,162 2,157,711 1,749,844 - -
Capital leases 102,538 46,005 332,535 423,155 435,073 469,160 - -
Total other long-term debt 29,842,214 31,851,476 3,836,925 4,163,314 33,679,139 36,014,790 - -
Total 154,118,063$ 135,752,316$ 36,272,031$ 25,683,913$ 190,390,094$ 161,436,229$ 35,239,494$ 36,720,305$
Bonds and Other Long-Term Liabilities
Outstanding Debt at Year-end
Table 4
Gross bonded debt
Other long-term debt
Governmental Activities Business-type Activities Total Primary Government Component Units
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, Waterworks and Sewer System 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 to the basic financial statements.
Table 5
Bond Ratings
Moody's
Investors
Service
Standard &
Poor's
General Obligation Bonds Aaa AAA
Certificates of Obligation Aaa AAA
Water & Sewer Revenue
Bonds Aa2 AAA
CDC Sales Tax Revenue Bonds Aa2
EDC Sales Tax Revenue Bonds Aa2
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City of Allen, Texas continues to be financially strong. Although the economy is the primary factor,
the City’s elected and appointed officials considered many factors when setting the fiscal year 2022
budget, tax rates and fees that will be charged for the business-type activities. The priority for fiscal year
2022 continues to be maintaining quality service while observing prudent spending practices.
Highlights of the 2022 budget include:
Balanced budget, with total revenues equal to or greater than total expenditures
Property tax rate reduced by 1.5 cents to $0.47 per $100 assessed value
Total City budget $300.4 million
General Fund budget $112.1 million
Sustained funding for equipment and facilities improvements
Proposed general obligation bonds issues of about $4.9 million, with $3.8 million for streets and
drainage and $1 million for the library expansion.
Additional 11 full-time equivalent (FTE) positions (9 in General Fund and 2 in Water & Sewer)
16
The property tax rate for fiscal year 2022 decreased from $0.485 to $0.47 per $100 assessed value. For
fiscal year 2022, the water rates increased 6% and wastewater (sewer) rates increased 8%, due to
increased cost of service from the North Texas Municipal Water District (NTMWD). There were no changes
to the solid waste or drainage rates.
Request for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional information,
please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626.
17
Basic Financial Statements
18
City of Allen, Texas Exhibit 1
Statement of Net Position
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
19
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Cash and cash equivalents 74,853,500$ 40,538,012$ 115,391,512$ 15,324,331$
Investments 110,044,741 28,806,303 138,851,044 23,684,021
Receivables (net of allowance
for uncollectibles) 9,972,403 9,270,140 19,242,543 4,445,032
Internal balances (1,459,273) 1,459,273 - -
Prepaid items and other assets 699,299 956,310 1,655,609 -
Net OPEB asset 880,073 - 880,073 -
Inventories 31,037 90,598 121,635 -
Restricted cash and cash equivalents - 2,647,082 2,647,082 -
Capital assets:
Non-depreciable 178,217,761 12,634,120 190,851,881 23,255,666
Depreciable (net of depreciation) 277,405,296 114,080,108 391,485,404 43,228,080
TOTAL ASSETS 650,644,837 210,481,946 861,126,783 109,937,130
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 16,221 47,698 63,919 645,523
Deferred outflows of resources - OPEB 573,031 70,791 643,822 -
Deferred outflows of resources - pension 12,849,710 1,546,277 14,395,987 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 13,438,962 1,664,766 15,103,728 645,523
LIABILITIES
Accounts payable 4,944,645 1,165,303 6,109,948 265,428
Accrued liabilities 6,689,078 448,869 7,137,947 623,421
Accrued interest payable 545,673 327,319 872,992 89,178
Customer deposits - 1,186,807 1,186,807 -
Unearned revenue 9,089,673 - 9,089,673 -
Retainage payable 248,588 238,414 487,002 77,122
Non-current liabilities:
Due within one year 20,226,439 2,465,754 22,692,193 3,858,880
Due in more than one year 133,891,624 33,806,277 167,697,901 31,380,614
TOTAL LIABILITIES 175,635,720 39,638,743 215,274,463 36,294,643
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - OPEB 461,741 39,074 500,815 -
Deferred inflows of resources - pension 11,862,554 1,417,277 13,279,831 -
TOTAL DEFERRED INFLOWS OF RESOURCES 12,324,295 1,456,351 13,780,646 -
NET POSITION
Net investment in capital assets 388,795,081 113,396,556 502,191,637 41,701,277
Restricted for:
Debt service 409,634 764,763 1,174,397 852,566
Tourism 2,202,504 - 2,202,504 -
Park acquisition and development 1,745,558 - 1,745,558 -
State and federal grants 143,951 - 143,951 -
Tax increment financing 7,931,267 - 7,931,267 -
Other purposes 2,374,886 - 2,374,886 -
Unrestricted 72,520,903 56,890,299 129,411,202 31,734,167
TOTAL NET POSITION 476,123,784$ 171,051,618$ 647,175,402$ 74,288,010$
Primary Government
City of Allen, Texas
Statement of Activities
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
20
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental activities:
General government 22,940,360$ 598,846$ 572,279$ -$
Public safety 49,532,988 2,063,311 99,021 -
Public works 19,661,514 587,112 - 4,740,701
Culture and recreation 29,359,242 4,649,476 1,875,266 17,692
Community development 6,330,539 4,024,897 2,328,177 3,776,805
Interest on long-term debt 3,103,192 - - -
Total governmental activities 130,927,835 11,923,642 4,874,743 8,535,198
Business-type activities:
Water and sewer 46,442,937 49,099,338 - 5,695,888
Solid waste 6,824,441 7,039,328 - -
Drainage 1,497,014 1,826,950 - -
Golf course 3,557,076 4,196,161 - -
Total business-type activities 58,321,468 62,161,777 - 5,695,888
TOTAL PRIMARY GOVERNMENT 189,249,303$ 74,085,419$ 4,874,743$ 14,231,086$
COMPONENT UNITS:
Allen Economic Development Corporation 8,210,690$ -$ -$ -$
Allen Community Development Corporation 5,905,398 - - -
TOTAL COMPONENT UNITS 14,116,088$ -$ -$ -$
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings
Gain on sale of assets
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION, beginning of year
NET POSITION, end of year
Program Revenues
Exhibit 2
21
Governmental Business - Type COMPONENT
Activities Activities TOTAL UNITS
(21,769,235)$ -$ (21,769,235)$ -$
(47,370,656) - (47,370,656) -
(14,333,701) - (14,333,701) -
(22,816,808) - (22,816,808) -
3,799,340 - 3,799,340 -
(3,103,192) - (3,103,192) -
(105,594,252) - (105,594,252) -
- 8,352,289 8,352,289 -
- 214,887 214,887 -
- 329,936 329,936 -
- 639,085 639,085 -
- 9,536,197 9,536,197 -
(105,594,252)$ 9,536,197$ (96,058,055)$ -$
-$ -$ -$ (8,210,690)$
- - - (5,905,398)
-$ -$ -$ (14,116,088)$
71,946,802$ -$ 71,946,802$ -$
25,599,945 - 25,599,945 25,134,082
6,821,738 - 6,821,738 -
1,337,147 - 1,337,147 -
1,171,378 - 1,171,378 -
1,118,970 398,387 1,517,357 352,696
322,084 7,585 329,669 -
5,311,149 444,175 5,755,324 24,629
4,007,336 (4,007,336) - -
117,636,549 (3,157,189) 114,479,360 25,511,407
12,042,297 6,379,008 18,421,305 11,395,319
464,081,487 164,672,610 628,754,097 62,892,691
476,123,784$ 171,051,618$ 647,175,402$ 74,288,010$
Changes in Net Position
Net (Expense) Revenue and
Primary Government
City of Allen, Texas
Balance Sheet
Governmental Funds
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
22
General
Debt Capital
General Service Projects
ASSETS
Cash and cash equivalents $ 10,888,168 585,253$ 17,102,905$
Investments 19,512,877 338,162 25,167,714
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes 156,423 36,928 -
Sales taxes 4,423,158 - -
Accounts receivable - - -
Accrued interest 79,358 1,375 102,356
Other 3,157,602 - 1,296,779
Inventories 31,037 - -
Prepaid items 114,663 - 751
TOTAL ASSETS 38,363,286$ 961,718$ 43,670,505$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 2,032,812 6,411 196,865$
Accrued liabilities 5,262,181 - 323,967
Unearned revenue 2,471,766 - -
Retainage payable - - 185
TOTAL LIABILITIES 9,766,759 6,411 521,017
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 156,423 36,928 -
Unavailable revenue - charges for services 614,724 - -
Unavailable revenue - miscellaneous 7,608 - 306,106
Unavailable revenue - interest 13,739 - -
Unavailable revenue - fines 39,740 - -
TOTAL DEFERRED
INFLOWS OF RESOURCES 832,234 36,928 306,106
FUND BALANCES
Nonspendable
Prepaid items 114,663 - 751
Inventories 31,037 - -
Restricted
Debt service - 918,379 -
Capital expenditures - - -
Tourism - - -
Asset forfeiture - - -
State and federal grants - - -
Park acquisition and development - - -
Tax increment financing agreement - - -
Court technology - - -
Juvenile case manager - - -
PEG fees - - -
Radio system - - -
Court security - - -
Public safety and library enhancements - - -
Cemetery trust 63,627 - -
Assigned
Capital expenditures - - 42,842,631
Unassigned 27,554,966 - -
TOTAL FUND BALANCES 27,764,293 918,379 42,843,382
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 38,363,286$ 961,718$ 43,670,505$
Exhibit 3
23
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
6,120,470$ 22,708,657$ 5,406,472$ 62,811,925$
- 37,164,253 8,780,744 90,963,750
- - - 193,351
- - - 4,423,158
267,475 - 155,976 423,451
- 151,146 35,711 369,946
- - - 4,454,381
- - - 31,037
583,885 - - 699,299
6,971,830$ 60,024,056$ 14,378,903$ 164,370,298$
92,054$ 2,254,845$ 87,746$ 4,670,733$
- - 36,134 5,622,282
6,618,319 - - 9,090,085
- 235,021 - 235,206
6,710,373 2,489,866 123,880 19,618,306
- - - 193,351
- - - 614,724
- - - 313,714
- - 808 14,547
- - - 39,740
- - 808 1,176,076
- - - 115,414
- - - 31,037
- - - 918,379
- 57,534,190 - 57,534,190
- - 2,202,504 2,202,504
- - 143,951 143,951
261,457 - - 261,457
- - 1,745,558 1,745,558
- - 7,931,267 7,931,267
- - 150,492 150,492
- - 6,835 6,835
- - 1,162,109 1,162,109
- - 455,114 455,114
- - 12,871 12,871
- - 443,514 443,514
- - - 63,627
- - - 42,842,631
- - - 27,554,966
261,457 57,534,190 14,254,215 143,575,916
6,971,830$ 60,024,056$ 14,378,903$ 164,370,298$
City of Allen, Texas Exhibit 4
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
24
Total fund balance of governmental funds balance sheet 143,575,916$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet. 455,623,057
Funds comprising the net OPEB asset are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 880,073
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred charges on refunding 16,221$
Deferred outflows of resources - OPEB 573,031
Deferred outflows of resources - pension 12,849,710
Deferred inflows of resources - OPEB (461,741)
Deferred inflows of resources - pension (11,862,554) 1,114,667
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability on the governmental
funds balance sheet.(545,673)
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 ($37,801,002) are net of the
amount allocated to business-type activities ($1,459,273) and to capital
assets ($7,923,998).28,417,731
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,176,076
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
General obligation bonds (82,380,000)$
Certificates of obligation (22,945,000)
Tax notes (3,580,000)
Capital lease payable (102,538)
Premiums/discounts (15,370,849)
Compensated absences (8,228,298)
Net OPEB liability (1,924,927)
Net pension liability (19,586,451) (154,118,063)
Net position of governmental activities 476,123,784$
25
City of Allen, Texas
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
26
General
Debt Capital
General Service Projects
REVENUES
Ad valorem taxes, penalties and interest 56,379,891$ 13,629,728$ -$
Municipal sales tax 25,344,374 - -
Franchise taxes 6,669,763 - -
Licenses, permits and fees 3,805,840 - -
Charges for services 6,521,194 - 1,540,626
Fines 1,076,468 - -
Gifts and contributions 1,180,503 115,675 -
Hotel / motel fees - - -
Intergovernmental 4,181,326 - 2,205,061
Investment earnings 86,598 10,144 311,460
Miscellaneous 2,323,395 - 2,328,649
Total revenues 107,569,352 13,755,547 6,385,796
EXPENDITURES
Current
General government 20,744,905 - 199,923
Public safety 49,836,540 - -
Public works 6,664,683 - 1,130,483
Culture and recreation 23,950,848 - 192,044
Community development 3,590,155 - -
Capital outlay 250,793 - 1,553,938
Debt service:
Principal retirement - 11,049,141 -
Interest and fiscal charges - 3,737,148 -
Total expenditures 105,037,924 14,786,289 3,076,388
Excess (deficiency) of revenues
over (under) expenditures 2,531,428 (1,030,742) 3,309,408
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 6,340,000 -
Issuance of bonds - - -
Premium on bonds issued - 855,617 -
Payment to refunded bond escrow agent - (7,105,226) -
Capital lease obligations 100,674 - -
Transfers in 5,119,962 - 5,060,083
Transfers out (6,909,368) - (230,079)
Proceeds from sale of capital assets 23,451 - -
Total other financing sources (uses)(1,665,281) 90,391 4,830,004
NET CHANGE IN FUND BALANCES 866,147 (940,351) 8,139,412
FUND BALANCES, BEGINNING OF YEAR 26,898,146 1,858,730 34,703,970
FUND BALANCES, END OF YEAR 27,764,293$ 918,379$ 42,843,382$
Exhibit 5
27
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
-$ -$ 1,816,066$ 71,825,685$
- - 255,571 25,599,945
- - 151,975 6,821,738
- - 703,695 4,509,535
- - - 8,061,820
- - 94,910 1,171,378
- - - 1,296,178
- - 1,337,147 1,337,147
2,935,303 - 185,256 9,506,946
- 354,811 114,711 877,724
- - 73,367 4,725,411
2,935,303 354,811 4,732,698 135,733,507
- 334,267 943,546 22,222,641
19,091 - 73,143 49,928,774
2,843,298 791,578 - 11,430,042
30,789 2,905 1,707,066 25,883,652
- - - 3,590,155
62,206 6,522,846 93,869 8,483,652
- - - 11,049,141
- - - 3,737,148
2,955,384 7,651,596 2,817,624 136,325,205
(20,081) (7,296,785) 1,915,074 (591,698)
- - - 6,340,000
- 27,200,000 - 27,200,000
- 6,026,155 - 6,881,772
- - - (7,105,226)
- - - 100,674
- - - 10,180,045
- (282,486) (59,288) (7,481,221)
- - 14,564 38,015
- 32,943,669 (44,724) 36,154,059
(20,081) 25,646,884 1,870,350 35,562,361
281,538 31,887,306 12,383,865 108,013,555
261,457$ 57,534,190$ 14,254,215$ 143,575,916$
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, 2021
The Notes to Financial Statements are an integral part of this statement.
28
Net change in fund balances - total governmental funds 35,562,361$
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. 8,483,652
Governmental funds do not recognize contributed capital assets. However, in the
statement of activities the acquisition value of those assets is recognized as revenue,
then allocated over their estimated useful lives and reported as depreciation expense. 6,214,464
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. (21,563,601)
Current year changes in the net other post employment benefit asset are not current financial
resources and therefore are not reported in the governmental funds. 47,612
The proceeds from issuance of long-term debt provides current financial resources to
governmental funds, while the payment of the principal of long-term debt consumes the
current financial resources of governmental funds. Also, governmental funds report the
effect of premiums, discounts, and similar items when debt is first issued. However,
these amounts are amortized in the government-wide financial statements:
Refunding bonds issued (6,340,000)
Bonds issued (27,200,000)
Premium on bonds issued (6,881,772)
Principal amount of bonds refunded 6,945,000
Issuance of capital lease (100,674)
Bond and capital lease principal retirement 11,049,141
Amortization of bond premiums 2,096,763
Deferred charges on refunding changes (875,586) (21,307,128)
Current year changes for compensated absences, net pension liability, net OPEB liability,
deferred inflows/outflows related to pensions, and OPEB do not require the use of current
financial resources and, therefore, are not reported in governmental funds. 1,708,441
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. (52,918)
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net operating and
non-operating income and transfers of the internal service funds is reported with
governmental activities net of amounts allocated to business-type activities. 2,331,442
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.617,972
Change in net position of governmental activities 12,042,297$
City of Allen, Texas Exhibit 7
Statement of Net Position
Proprietary Funds
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
29
Governmental
Activities
Water and Solid Golf Internal Service
Sewer Waste Drainage Course Total Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 36,381,228$ 1,217,741$ 305,904$ 2,633,139$ 40,538,012$ 12,041,575$
Investments 26,312,787 1,992,908 500,608 - 28,806,303 19,080,991
Receivables, net of allowance for uncollectibles:
Accounts 7,946,101 802,372 241,618 - 8,990,091 30,514
Accrued interest 107,013 8,105 2,036 - 117,154 77,602
Other 7,942 130,693 292 23,968 162,895 -
Inventories 90,598 - - - 90,598 -
Prepaid items 956,310 - - - 956,310 -
Restricted cash and cash equivalents 2,647,082 - - - 2,647,082 -
Total current assets 74,449,061 4,151,819 1,050,458 2,657,107 82,308,445 31,230,682
NONCURRENT ASSETS
CAPITAL ASSETS
Land 4,091,626 - - - 4,091,626 -
Construction in progress 8,542,494 - - - 8,542,494 -
Other improvements - - 1,230,546 - 1,230,546 -
Towers, tanks, and pump stations 222,547,151 - - - 222,547,151 -
Vehicles 850,418 140,440 151,554 - 1,142,412 18,261,748
Machinery and equipment 3,314,105 - 593,962 1,552,587 5,460,654 5,801,606
Total capital assets 239,345,794 140,440 1,976,062 1,552,587 243,014,883 24,063,354
Less: accumulated depreciation (114,172,517) (77,242) (816,066) (1,234,830) (116,300,655) (16,139,356)
Capital assets, net of accumulated depreciation 125,173,277 63,198 1,159,996 317,757 126,714,228 7,923,998
Total noncurrent assets 125,173,277 63,198 1,159,996 317,757 126,714,228 7,923,998
TOTAL ASSETS 199,622,338 4,215,017 2,210,454 2,974,864 209,022,673 39,154,680
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 47,698 - - - 47,698 -
Deferred outflows of resources - OPEB 45,712 5,894 5,676 13,509 70,791 -
Deferred outflows of resources - pension 1,009,975 122,992 114,298 299,012 1,546,277 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,103,385 128,886 119,974 312,521 1,664,766 -
AND NET POSITION
CURRENT LIABILITIES
Accounts payable 721,512 266,163 46,506 131,122 1,165,303 286,882
Accrued liabilities 249,376 88,462 29,343 81,688 448,869 74
Retainage payable 238,414 - - - 238,414 -
Accrued compensated absences - current 365,655 38,457 31,879 99,119 535,110 -
Incurred but not reported claims - - - - - 1,066,722
Payable from restricted assets:
Revenue bonds payable - current 1,771,079 - - - 1,771,079 -
Capital leases payable - current - - - 159,565 159,565 -
Accrued interest payable 327,319 - - - 327,319 -
Customer deposits payable 1,138,382 - - 48,425 1,186,807 -
Total current liabilities 4,811,737 393,082 107,728 519,919 5,832,466 1,353,678
NONCURRENT LIABILITIES
Revenue bonds payable 30,664,026 - - - 30,664,026 -
Capital leases payable - - - 172,971 172,971 -
Net OPEB liability 150,161 18,877 17,908 45,838 232,784 -
Net pension liability 1,628,709 180,721 158,000 468,002 2,435,432 -
Accrued compensated absences 80,148 79,569 13,602 127,745 301,064 -
Total noncurrent liabilities 32,523,044 279,167 189,510 814,556 33,806,277 -
TOTAL LIABILITIES 37,334,781 672,249 297,238 1,334,475 39,638,743 1,353,678
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 914,724 121,092 114,818 266,643 1,417,277 -
Deferred inflows of resources - OPEB 25,213 3,195 3,133 7,533 39,074 -
TOTAL DEFERRED INFLOWS OF RESOURCES 939,937 124,287 117,951 274,176 1,456,351 -
NET POSITION
Net investment in capital assets 112,188,141 63,198 1,159,996 (14,779) 113,396,556 7,923,998
Restricted for revenue bond principal and interest 764,763 - - - 764,763 -
Unrestricted 49,498,101 3,484,169 755,243 1,693,513 55,431,026 29,877,004
TOTAL NET POSITION 162,451,005$ 3,547,367$ 1,915,239$ 1,678,734$ 169,592,345$ 37,801,002$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 8
Reconciliation of the Statement of Net Position
of Proprietary Funds to the
Government – Wide Statement of Net Position
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
30
Amounts reported for business-type activities in the statement of net
position are different because:
Total net position per statement of net position 169,592,345$
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The assets and liabilities of internal service funds are included in the governmental
activities in the government-wide statement of net position. The amount shown
represents the net receivable from internal service funds allocated to business-type
activities since the adoption of GASB 34. 1,459,273
Total net position of business-type activities 171,051,618$
City of Allen, Texas Exhibit 9
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
31
Governmental
Activities
Water and Solid Golf Internal
Sewer Waste Drainage Course Total Service Funds
OPERATING REVENUES
Charges for sales and services:
Water sales 27,232,314$ -$ -$ -$ 27,232,314$ -$
Sewer charges 21,328,641 - - - 21,328,641 -
Connection fees 121,711 - - - 121,711 -
Garbage collections - 7,039,328 - - 7,039,328 -
Service charges 416,672 - 30,669 4,196,161 4,643,502 16,833,271
Drainage fees - - 1,796,281 - 1,796,281 -
Gifts and contributions - - - - - -
Miscellaneous 339,207 38,802 1,806 64,360 444,175 969,966
Total operating revenues 49,438,545 7,078,130 1,828,756 4,260,521 62,605,952 17,803,237
OPERATING EXPENSES
Personnel services 5,708,292 746,596 685,792 1,726,493 8,867,173 455,630
Contractual services 32,096,535 5,988,762 199,304 1,174,208 39,458,809 13,014,843
Maintenance 769,930 3,442 246,480 246,106 1,265,958 1,292,127
Supplies 485,530 22,825 104,915 225,116 838,386 8,410
Depreciation 6,061,133 14,044 79,943 163,059 6,318,179 2,492,198
Other 587,657 48,772 180,580 22,094 839,103 -
Total operating expenses 45,709,077 6,824,441 1,497,014 3,557,076 57,587,608 17,263,208
OPERATING INCOME 3,729,468 253,689 331,742 703,445 5,018,344 540,029
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 367,021 24,591 6,775 - 398,387 247,104
Interest expense (785,223) - - - (785,223) -
Gain on disposal of capital assets 5,411 - 2,174 - 7,585 287,160
Total non-operating revenues (expenses) (412,791) 24,591 8,949 - (379,251) 534,264
INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 3,316,677 278,280 340,691 703,445 4,639,093 1,074,293
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees 3,681,995 - - - 3,681,995 -
Capital contributions 2,013,893 - - - 2,013,893 -
Transfers in 2,316,189 - - 227,314 2,543,503 1,308,512
Transfers out (5,451,161) (685,987) (413,691) - (6,550,839) -
Total capital contributions and transfers 2,560,916 (685,987) (413,691) 227,314 1,688,552 1,308,512
CHANGE IN NET POSITION 5,877,593 (407,707) (73,000) 930,759 6,327,645 2,382,805
NET POSITION, BEGINNING OF YEAR 156,573,412 3,955,074 1,988,239 747,975 163,264,700 35,418,197
NET POSITION, END OF YEAR 162,451,005$ 3,547,367$ 1,915,239$ 1,678,734$ 169,592,345$ 37,801,002$
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 10
Reconciliation of the Statement of Revenues, Expenses,
and Changes in Net Position of Proprietary Funds
to the Statement of Activities
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
32
Amounts reported for business-type activities in the statement of activities
are different because:
Net change in fund net position- total proprietary funds 6,327,645$
Internal service funds are used by management to charge the costs of replacing
machinery and equipment, fleet management, workers compensation, property liability
loss, medical and dental insurance, and health claims to individual funds.
The net expenses of certain activities of internal service funds is allocated to
business-type activities. 51,363
Change in net position of business-type activities 6,379,008$
City of Allen, Texas Exhibit 11
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
33
Governmental
Activities
Water and Solid Golf Internal
Sewer Waste Drainage Course Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 49,630,244$ 7,128,527$ 1,828,464$ 4,261,588$ 62,848,823$ -$
Cash received from transactions with other funds - - - - - 17,305,433
Cash paid to employees for services (5,752,145) (732,909) (685,160) (1,714,286) (8,884,500) (442,414)
Cash paid for goods and services (34,149,260) (5,740,696) (712,912) (1,676,649) (42,279,517) (5,507,087)
Cash paid for claims - - - - - (8,420,561)
Net cash provided by operating activities 9,728,839 654,922 430,392 870,653 11,684,806 2,935,371
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 2,316,189 - - 227,314 2,543,503 1,308,512
Transfers out to other funds (5,451,161) (685,987) (413,691) - (6,550,839) -
Net cash provided by (used in)
non-capital financing activities (3,134,972) (685,987) (413,691) 227,314 (4,007,336) 1,308,512
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities (1,170,000) - - - (1,170,000) -
Interest and fees paid on long-term debt (864,011) - - - (864,011) -
Acquisition and construction of capital assets (6,459,609) - - (54,452) (6,514,061) (1,469,382)
Proceeds from sale of capital assets 5,411 - 2,174 - 7,585 311,959
Capital lease payments - - - (90,619) (90,619) -
Proceeds from debt issuance 12,300,584 - - - 12,300,584 -
Contributions from developers 3,681,995 - - - 3,681,995 -
Net cash provided by (used in)
capital and related financing activities 7,494,370 - 2,174 (145,071) 7,351,473 (1,157,423)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investment securities (2,743,571) (415,791) (105,950) - (3,265,312) (4,079,391)
Interest on investments 396,662 28,433 8,323 - 433,418 266,920
Net cash used in investing activities (2,346,909) (387,358) (97,627) - (2,831,894) (3,812,471)
NET CHANGE IN CASH AND CASH EQUIVALENTS 11,741,328 (418,423) (78,752) 952,896 12,197,049 (726,011)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 27,286,982 1,636,164 384,656 1,680,243 30,988,045 12,767,586
CASH AND CASH EQUIVALENTS, END OF YEAR 39,028,310$ 1,217,741$ 305,904$ 2,633,139$ 43,185,094$ 12,041,575$
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income 3,729,468$ 253,689$ 331,742$ 703,445$ 5,018,344$ 540,029$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization expense 6,061,133 14,044 79,943 163,059 6,318,179 2,492,198
Change in assets and liabilities:
Accounts receivable 852,364 149,820 42,466 - 1,044,650 (7,573)
Other receivables (5,378) 50,397 (292) (11,055) 33,672 -
Prepaids (956,310) - - - (956,310) 251,600
Inventories (16,670) - - - (16,670) -
Deferred outflows - pension (438,386) (56,490) (52,434) (127,613) (674,923) -
Deferred outflows - OPEB (14,013) (1,795) (1,672) (4,086) (21,566) -
Accounts payable (318,521) 142,566 (24,099) (10,581) (210,635) (340,883)
Retainage payable 238,414 - - - 238,414 -
Accrued liabilities 101,824 45,497 15,091 39,770 202,182 -
Net OPEB liability 27,694 3,548 3,304 8,076 42,622 -
Net pension liability (212,622) (27,398) (25,431) (61,894) (327,345) -
Compensated absences 4,682 19,440 4,592 20,241 48,955 -
Deposits 197,077 - - 12,122 209,199 -
Deferred inflows - pension 476,367 61,384 56,977 138,669 733,397 -
Deferred inflows - OPEB 1,716 220 205 500 2,641 -
Total adjustments 5,999,371 401,233 98,650 167,208 6,666,462 2,395,342
Net cash provided by operating activities 9,728,839$ 654,922$ 430,392$ 870,653$ 11,684,806$ 2,935,371$
NON-CASH INVESTING ACTIVITIES:
Change in the fair value of investments (297,140)$ (22,783)$ 13,409$ -$ (306,514)$ (216,244)$
NON-CASH FINANCING ACTIVITIES:
Contributions of capital assets from developers 2,013,893$ -$ -$ -$ 2,013,893$ -$
Reconciliation of total cash to the statement of net position
Cash and cash equivalents - current 36,381,228$ 1,217,741$ 305,904$ 2,633,139$ 40,538,012$ 12,041,575$
Restricted cash and cash equivalents 2,647,082 - - - 2,647,082 -
CASH AND CASH EQUIVALENTS, END OF YEAR 39,028,310$ 1,217,741$ 305,904$ 2,633,139$ 43,185,094$ 12,041,575$
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 12
Statement of Fiduciary Net Position
Fiduciary Fund
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
34
Other
Postemployment
Benefits
Trust Fund
ASSETS
CURRENT ASSETS
Cash and deposits 13,535$
Investments:
Domestic Equities 314,779
Fixed Income 912,713
Private Equity 85,228
Real Estate 13,803
Total current assets 1,340,058
TOTAL ASSETS 1,340,058
NET POSITION
Restricted for postemployment benefits other than pensions 1,340,058
TOTAL NET POSITION 1,340,058$
City of Allen, Texas Exhibit 13
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the Year Ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
35
Other
Postemployment
Benefits
Trust Fund
ADDITIONS
Investment Income:
Net increase in fair value of investments 116,827$
Net Investment Income 116,827
TOTAL ADDITIONS 116,827
DEDUCTIONS
Benefit payments 222,665
Administrative expense 8,523
TOTAL DEDUCTIONS 231,188
CHANGE IN NET POSITION (114,361)
NET POSITION, BEGINNING OF YEAR 1,454,419
NET POSITION, END OF YEAR 1,340,058$
City of Allen, Texas Exhibit 14
Statement of Net Position
Component Units
September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
36
Allen Allen
Economic Community
Development Development
Corporation Corporation Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5,664,150$ 9,660,181$ 15,324,331$
Investments 8,214,700 15,469,321 23,684,021
Sales tax receivable 2,174,355 2,174,355 4,348,710
Accrued interest receivable 33,409 62,913 96,322
Total current assets 16,086,614 27,366,770 43,453,384
NONCURRENT ASSETS
CAPITAL ASSETS
Land 18,799,062 2,239,201 21,038,263
Construction in progress - 2,217,403 2,217,403
Buildings 1,004,091 36,225,091 37,229,182
Machinery & equipment - 3,099,175 3,099,175
Vehicles - 783,228 783,228
Improvements other than buildings - 38,207,511 38,207,511
Total capital assets 19,803,153 82,771,609 102,574,762
Less: accumulated depreciation (125,512) (35,965,504) (36,091,016)
Capital assets, net of accumulated depreciation 19,677,641 46,806,105 66,483,746
Total noncurrent assets 19,677,641 46,806,105 66,483,746
TOTAL ASSETS 35,764,255 74,172,875 109,937,130
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 321,470 324,053 645,523
TOTAL DEFERRED OUTFLOWS OF RESOURCES 321,470 324,053 645,523
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable 67,670 197,758 265,428
Retainage payable - 77,122 77,122
Accrued interest payable 39,533 49,645 89,178
Accrued and other liabilities 623,421 - 623,421
Current portion of long-term debt 2,043,880 1,815,000 3,858,880
Total current liabilities 2,774,504 2,139,525 4,914,029
NONCURRENT LIABILITIES
Noncurrent portion of long-term debt 10,665,614 20,715,000 31,380,614
Total noncurrent liabilities 10,665,614 20,715,000 31,380,614
TOTAL LIABILITIES 13,440,118 22,854,525 36,294,643
NET POSITION
Net investment in capital assets 17,101,119 24,600,158 41,701,277
Restricted for debt service 644,683 207,883 852,566
Unrestricted 4,899,805 26,834,362 31,734,167
TOTAL NET POSITION 22,645,607$ 51,642,403$ 74,288,010$
City of Allen, Texas Exhibit 15
Statement of Activities
Component Units
For the year ended September 30, 2021
The Notes to Financial Statements are an integral part of this statement.
37
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Allen Allen
Operating Economic Community
Charges for Grants and Development Development
Expenses Services Contributions Corporation Corporation Totals
Function/Program Activities
COMPONENT UNITS
Allen Economic
Development Corporation 8,210,690$ -$ -$ (8,210,690)$ -$ (8,210,690)$
Allen Community
Development Corporation 5,905,398 - - - (5,905,398) (5,905,398)
TOTAL COMPONENT UNITS 14,116,088$ -$ -$ (8,210,690)$ (5,905,398)$ (14,116,088)$
General revenues:
Sales taxes 12,567,041$ 12,567,041$ 25,134,082$
Interest on investments 140,326 212,370 352,696
Miscellaneous 14,579 10,050 24,629
Total general revenues 12,721,946 12,789,461 25,511,407
CHANGE IN NET POSITION 4,511,256 6,884,063 11,395,319
NET POSITION, beginning of year 18,134,351 44,758,340 62,892,691
NET POSITION, end of year 22,645,607$ 51,642,403$ 74,288,010$
Component Units
38
City of Allen, Texas
Notes to Financial Statements
39
Note 1. Summary of Significant Accounting Policies
General Statement
The City of Allen (the City) was incorporated in 1953, under the provisions of Chapter 11, Title 28, Texas
Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a home rule city operating
under a Council-Manager form of government. The City provides such services as are authorized by its
charter to advance the welfare, health, comfort, safety and convenience of its inhabitants.
The accounting and reporting policies of the City relating to the funds included in the accompanying
basic financial statements conform to accounting principles generally accepted in the United States of
America applicable to state and local governments. Generally accepted accounting principles for local
governments include those principles prescribed by the Governmental Accounting Standards Board
(GASB), and the American Institute of Certified Public Accountants in the publication entitled Audits of
State and Local Governmental Units. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, the financial
statements of the City include the primary government and organizations for which the primary
government is financially accountable and other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the reporting entity's
financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if its officials appoint a voting majority
of an organization's governing body and either it can 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 can 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. 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.
City of Allen, Texas
Notes to Financial Statements
40
Basis of Presentation
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all 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 specific
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 to aid financial
management and to demonstrate legal compliance. Separate statements are presented for
governmental funds, proprietary funds, and fiduciary funds. These statements present each major fund
as a separate column on the fund financial statements; all nonmajor funds are aggregated and
presented in a single column.
Governmental funds are those funds through which most governmental functions typically are financed.
The measurement focus of governmental funds is on the sources, uses and balances of current financial
resources. The City has presented the following major governmental funds:
General Fund
The General Fund is the general operating fund of the City. It is used to account for all financial resources
not accounted for in other funds. All general tax revenues and other receipts that are not restricted by
law or contractual agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges and capital improvement costs that are not paid through other funds are
paid from the General Fund.
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.
Grants Fund
To account for monies received from other governmental agencies that have restricted legal
requirements and multi-year budgets.
City of Allen, Texas
Notes to Financial Statements
41
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.
Business-type activities and all proprietary and fiduciary funds are accounted for on a flow of economic
resources measurement focus and the accrual basis of accounting. The accounting objectives are
determinations of net income, financial position and cash flow. All assets and liabilities are included on
the Statement of Net Position.
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
relating to 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.
The City reports 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 water and sewer debt. All costs are financed through
charges to utility customers with rates reviewed regularly and adjusted, if necessary, to ensure integrity of
the fund.
Solid Waste Fund
The Solid Waste Fund is used to account for the provision of solid waste services to residents of the City.
Drainage Fund
The Drainage Fund is used to account for the provision of developing and maintaining proper drainage
services to the residents of the City.
Golf Course Fund
The Golf Course Fund is used to account for activities associated with the operations of The Courses at
Watters Creek Golf Course purchased by the City in October 2004.
Additionally, the City reports the following Internal Service Funds:
Internal Service Funds
Replacement Fund
The Replacement Fund is an internal service fund that accounts for the costs associated with the
acquisition and replacement of vehicles, machinery, and equipment through the rental of such items to
other departments.
Risk Management Fund
The Risk Management Fund accounts for the costs associated with workers compensation, liability and
property insurance and medical and dental programs established for City employees and their covered
dependents.
Facility Maintenance Fund
The Facility Maintenance Fund accumulates resources to address large repairs and aging facility
infrastructure. The accumulation of resources will help address major building repairs and prevent building
deterioration.
City of Allen, Texas
Notes to Financial Statements
42
Fiduciary Fund
The City’s Fiduciary Fund are used to hold assets for the benefit of third parties (pension participants) and
cannot be used to address activities or obligations of the primary government. This fund is not
incorporated into the government-wide financial statements. The City’s fiduciary fund accounts for the
assets of the postemployment benefits trust.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured. Basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
The government-wide statements, fund financial statements for proprietary funds, and fiduciary fund
statements are reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and liabilities (whether current
or non-current) are included on the statement of net position and the operating statements present
increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water and sewer services which
are accrued. Expenses are recognized at the time the liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources measurement
focus and 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
To preserve portions of applicable appropriations, encumbrance accounting is used in governmental
funds for purchase orders, contracts, and other commitments on the expenditure of 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.
43
City of Allen, Texas
Notes to Financial Statements
Property Taxes
The City’s property tax is levied each October 1st on the assessed value listed as of the prior January 1st
for all real and certain personal property located within the City. Appraised values are established by
Collin County Central Appraisal District at 100% of estimated market value and certified by the Appraisal
Review Board. The assessed value upon which the 2020 levy was based is $14,843,010,614. Taxes are due
on October 1st and are delinquent after the following January 31st. 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. For the year ended September 30, 2021, the combined tax rate to finance general
government services, including the payment of principal and interest on long-term debt, was $0.4850 per
$100 of assessed valuation.
In Texas, countywide central appraisal districts are required to assess all property within the appraisal
district based on 100% of its appraised value and are prohibited from applying any assessment ratios. The
value of property within the appraisal district must be reviewed every three years; however, the City may,
at its own expense, require annual reviews of appraised values. The City may challenge appraised values
established by the appraisal district through various appeals and, if necessary, legal action. Under this
legislation, the City continues to set tax rates on City property. However, if the effective maintenance and
operations tax rate, increased by 8% excluding other contractual obligations, adjusted for new
improvements, plus the calculated debt tax rate is less than the proposed city tax rate, then qualified
voters of the City may petition for an election to determine whether to limit the tax rate to no more than
the rollback tax rate.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are reported as “due to/from other funds”. Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances”.
Transactions Between Funds and Between Funds and Component Units
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are 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, 2021,
ACDC contributed $498,903 and AEDC contributed $106,006 to the General Fund for
administrative costs. The ACDC contributed $115,675 to the Debt Service Fund to service debt related
to the Terrell Recreation Center. These revenues were reflected as operating grants and contributions
for the primary government in the government-wide statement of activities.
Inventories and Prepaid Items
Inventories are valued at cost using the first-in, first-out method for fuel and historical cost for meters. The
inventories of governmental funds are recorded as expenditures when consumed rather than when
purchased.
City of Allen, Texas
Notes to Financial Statements
44
Payments made to vendors for services that will provide benefit in subsequent fiscal periods are recorded
as prepaid items in both the government-wide and fund financial statements. Prepaid items are reported
as non-spendable fund balance in the governmental funds in the fund financial statements to signify that
a portion of fund balance is not available for other subsequent expenditures. The consumption method
is used in the fund financial statements.
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 acquisition value on the date donated. The costs of normal repairs and maintenance that do
not add value to assets or materially extend 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 10 - 40 Years
Towers, tanks, and pump stations 5 - 40 Years
Infrastructure 3 - 50 Years
Machinery and equipment 3 - 15 Years
Vehicles 2 - 15 years
Furniture and fixture 5 - 10 Years
Other improvements 2 - 30 Years
The City has established the Replacement Fund to account for the replacement of the City-owned
vehicles, 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.
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 are accrued when incurred in the government-wide,
proprietary, and fiduciary fund financial statements.
Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and inflows of
resources, and pension expense, City specific information about its Fiduciary Net Position in the Texas
Municipal Retirement System (TMRS) and additions to/deductions from the City’s Fiduciary Net Position have
been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are
recognized in the period that compensation is reported for the employee, which is when contributions are
legally due. Benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms.
City of Allen, Texas
Notes to Financial Statements
45
Investments are reported at fair value. Information regarding the City’s Total Pension Liability is obtained
from TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith &
Company.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s
OPEB Plan and the additions to/deductions from the City’s OPEB Plan’s net fiduciary position have been
determined on the same basis as they were reported by the City’s Other Postemployment Benefit Plan.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with the benefit terms. The investments are reported at fair value.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net assets that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has the following items
that qualify for reporting in this category:
Deferred charges on refunding – A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
Contributions after measurement date – These contributions are deferred and recognized in the
following fiscal year.
Difference between expected and actual pension and OPEB experience – This difference is
deferred and amortized over a closed period.
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The City has three types of items that qualify
for reporting in this category. In the statement of net position, the City reports the difference in expected
and actual pension and OPEB experience, the changes in actuarial assumptions and the difference in
projected and actual earnings on pension assets . These are deferred and recognized over the estimated
average remaining lives of all members determined as of the measurement date. In the balance sheet for
the governmental funds, the City reports unavailable revenue for property taxes not received within 60 days
of year end.
Net Position
Net position represents the difference between assets, liabilities, and deferred inflows and outflows. Net
investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used for the acquisition, construction or improvements of those
assets, and adding back unspent proceeds. Net position is reported as restricted when there are
limitations imposed on their use either through the enabling legislations adopted by the City or through
external restrictions imposed by creditors, grantors or laws or regulations of other governments.
Fund Balance
Fund balance classifications are non-spendable, 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.
City of Allen, Texas
Notes to Financial Statements
46
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:
Non-spendable -- includes fund balance 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 either constrained for specific purposes imposed by
external providers, such as creditors, or 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 imposed
internally by the City through formal action of the highest level of decision-making authority. Committed
fund balance is reported pursuant to resolutions passed by the City Council.
Assigned -- includes fund balance amounts that are self-imposed by the City to be used for a particular
purpose. Fund balance can be assigned by the City Manager or the Chief Financial Officer. This
classification includes insurance deductibles, encumbrances, program start-up costs, projected budget
deficit for subsequent years and other legal uses.
Unassigned -- includes residual positive fund balance within the General Fund which has not been
classified within the other above-mentioned categories. Unassigned fund balance may also include
negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or
assigned for those specific purposes.
When multiple categories of fund balance are available for expenditure, the City will start with the most
restricted category and spend those funds first before moving down to the next category with available
funds.
Minimum General Fund Unassigned Fund Balance - It is the goal of the City to achieve and maintain an
unassigned General Fund balance that is within a range of 60 to 90 days of annual expenditures. If
unassigned General Fund balance falls below the goal or has a deficiency, the City will establish a
timeframe and work plan to replenish the fund balance. The work plan may include tax increases, fee
increases, reduction of services, and/or reduction of expenditures (i.e. hiring freeze, salary freeze, or
reduction of travel/training).
Note 2. Deposits, Investments and Investment Policies
Deposits – State statutes require all deposits to be fully collateralized by U.S. Government obligations or
obligations of Texas and its agencies with market values not less than the principal amount of the deposits.
Pursuant to the Texas Public Funds Investment Act (PFIA) and the City's investment policy, all deposits of
the City that exceed the federal depository insurance coverage level must be collateralized with
irrevocable letters of credit and/or by governmental obligations pledged to the City with market values
of at least 103% of the deposit balances plus accrued interest.
The City’s demand deposits and certificates of deposit were fully insured or collateralized at
September 30, 2021, with collateral required by state statutes. At year’s end, the carrying amount of the
City’s deposits was $10,378,579, and the bank balance was $9,231,194. Of the bank balance, federal
depository insurance covered $250,000, and the remainder was covered by collateral held by the
pledging financial institution’s agent in the City’s name. The City’s petty cash balance at September 30,
2021, was $23,309. The carrying amount of deposits for ACDC and AEDC, discretely presented
component units, were $736,542 and $391,125, respectively, with no corresponding bank balances as
they are pooled with the City’s deposits.
City of Allen, Texas
Notes to Financial Statements
47
Investments – State statutes authorize the City to invest in U.S. Government obligations, obligations of
Texas and its agencies and fully collateralized repurchase agreements. The City, AEDC and ACDC invest
in TexPool which is an investment fund authorized by the Texas Legislature and administered by the Texas
State Treasury. The Texas Treasury Safekeeping Trust Company is trustee of TexPool and is a limited purpose
trust company authorized pursuant to Texas Government Code. The purpose of TexPool is to allow for the
pooling of public funds to provide a higher yield on the pooled investment than would be possible with
the investment of the individual public entity’s funds. TexPool investments are subject to the same
investment policies maintained by the State Treasury for all state funds. The Legislature has authorized only
certain investment instruments for public funds, including repurchase agreements, U.S. Treasury bills and
bonds, securities of other U.S. Government agencies, commercial paper and other safe instruments.
The PFIA (Government Code Chapter 2256) contains specific provisions in the areas of investment
practices, management reports, and establishment of appropriate policies. In compliance with PFIA, the
City has adopted an investment policy and is authorized to invest in obligations of, or guaranteed by,
governmental entities, certificates of deposit, Texas Public Funds Investment Pools, collateralized
repurchase agreements, commercial paper, banker's acceptances, no-load money market mutual
funds and guaranteed investment contracts. The table below identifies the investment types that are
authorized for the City under 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.
Maximum
Authorized Maximum Investment
Investment Type Maturity in One Issuer
Certificates of Deposit 5 years 35%
Repurchase Agreements 5 years 35%
U. S. Treasure Obligations 5 years None
Municipal Investment Pool 5 years None
Commercial Bank Savings Account 5 years None
Money Market Mutual Fund 5 years 35%
U. S. Government Securities (non-callable) 5 years None
U. S. Government Securities (callable) 5 years None
U. S. Government Sponsored Corp. 5 years None
Instruments: non-callable
U. S. Government Sponsored Corp. 5 years None
Instruments: callable
Commercial Paper 5 years 35%
Bankers’ Acceptance 5 years 35%
Guaranteed Investment Contracts 5 years 35%
State or Local Governmental Obligations 5 years 35%
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application
provides a framework for measuring fair value by establishing a three-level fair value hierarchy that
describes the inputs used to measure assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that
a government can access at the measurement date.
Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
City of Allen, Texas
Notes to Financial Statements
48
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique that maximizes the use of relevant observable inputs and minimizes the use
of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than
one level of the fair value hierarchy, the measurement is based on the lowest priority level input that is
significant to the entire measurement.
The City’s investments are measured as presented in the table below. The City’s investment balances,
weighted average maturity, and credit risk of such investments are as follows:
Significant
Other
Other Total Observable % of Total Weighted
Investment Primary Postemp loyment September 30, Inputs Government-w ideAvg. Maturity Credit
Type Government AEDC ACDC Benefits Trust 2021 (Level 2)Investments (Years ) Rating
Government-wide:
Investments Measured at Amortized Cost:
TexPool 8,895,110$ 553,067$ 861,790$ -$ 10,309,967$ -$ 3.61% 0.03 AAAm
TexSTAR 2,708,424 160,236 301,744 - 3,170,404 - 1.11% 0.01 AAAm
Investments Measured at NAV:
Money Market Accounts 10,787 638 1,202 - 12,627 - 0.00% - AAAm
Texas CLASS 97,160,839 4,559,723 7,760,104 - 109,480,666 - 38.35% 0.37 AAAm
Investments Measured at Cost:
Certificates of Deposit 12,865,632 761,156 1,433,353 - 15,060,141 - 5.28% 30.35 n/a
Investments Subject to Fair Value:
U.S. Agencies 48,213,151 2,852,384 5,371,402 - 56,436,937 56,436,937 19.77% 254.40 AA+
Certificates of Deposit 7,249,715 428,907 807,687 - 8,486,309 8,486,309 2.97% 14.85 n/a
Municipal Bonds 70,511,759 4,171,614 7,855,678 - 82,539,051 82,539,051 28.91% 208.34 A to AAA
PARS OPEB Trust Program:
Domestic Equities - - - 314,779 314,779 -
Fixed Income - - - 912,713 912,713 -
Private Equity - - - 85,228 85,228 -
Real Estate - - - 13,803 13,803 -
Total Government-wide Plus PARS OPEB Trust 247,615,417$ 13,487,725$ 24,392,960$ 1,326,523$ 286,822,625$ 147,462,297$
Investment pools, money markets, certificates of deposits (Level 1), and domestic equities are measured
at amortized cost, net asset value, or cost; are valued using prices quoted in active markets for those
securities; and are not required to be reported by levels in the table.
Investments in U.S. Agencies securities, certificates of deposits (Level 2), commercial paper, and municipal
bonds classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique in
accordance with pricing sources by the custodian bank. Matrix pricing is used to value securities based
on the securities' relationship to benchmark quoted prices.
In order to meet the criteria to be recorded at amortized cost, investment pools must transact at a stable
net asset value per share and maintain certain maturity, quality, liquidity and diversification requirements
within the investment pool. The investment pools transact at a net asset value of $1.00 per share, have
weighted average maturity of 60 days or less and weighted average life of 120 days or less, investments
held are highly rated by a nationally recognized statistical rating organization, have no more than 5% of
portfolio with one issuer (excluding US government securities), and can meet reasonably foreseeable
redemptions. TexPool and TexSTAR have a redemption notice period of one day and no maximum
transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the
event of a general suspension of trading on major securities market, general banking moratorium, or
national or state emergency that affects the pools’ liquidity.
TexPool is an external investment pool measured at amortized cost. The Texas Comptroller of Public
Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company,
which is authorized to operate TexPool. In addition, the TexPool Advisory Board advises on TexPool’s
Investment Policy. This Board is composed equally of participants in TexPool and other persons who do
not have a business relationship with TexPool who are qualified to advise TexPool.
City of Allen, Texas
Notes to Financial Statements
49
TexSTAR is duly chartered by the State of Texas Interlocal Cooperation Act, is administered by Hilltop
Securities, Inc. and J.P. Morgan Investment Management, Inc. (JPMIM), and managed by JPMIM, who
provides custody and investment management. The primary objectives of TexSTAR are, in order of priority,
preservation and protection of principal, maintenance of enough liquidity to meet participants’ needs,
and yield. The portfolio will maintain a dollar-weighted average maturity that does not exceed 60 days
and seeks to maintain a net asset value of $1.00 per share. TexSTAR uses amortized costs rather than fair
value to report net position to compute share prices. Accordingly, the fair value of the position in TexSTAR
is the same as the value of TexSTAR’s shares.
Texas CLASS (Texas Cooperative Liquid Assets Security System) is an external investment pool measured
at its net asset value. Texas CLASS’ strategy is to seek preservation of principal, liquidity and current
income through investment in a diversified portfolio of short-term marketable securities. The City has no
unfunded commitments related to the investment pool. Texas CLASS has a redemption notice period of
one day and may redeem daily. Authority over the investment pool may only impose restrictions on
redemptions in the event of a general suspension of trading on major securities market, general banking
moratorium or national or state emergency that affects the pool’s liquidity. Texas CLASS was organized in
March 1996 under a trust agreement executed by and among Texas local governmental entities in
accordance with the Public Funds Investment Act, and the Texas Government Code and remains in full
compliance with Government Code Chapter 2256. The fund is administered by Public Trust Advisors, LLC
and is rated AAAm by Standard & Poor’s Rating Services.
Investments in the Other Postemployment Benefit Trust Program (the “Trust”) are held by a bank trust
department separate from the City’s cash and investments. The City has contracted with Public Agency
Retirement Services (PARS) to manage the investment portfolio of the Trust Fund. The investments are
subject to the policies and guidelines established by the committee members of the Trust.
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, U.S. Agency Obligations or Securities and authorized investment pools.
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 (FFCB, 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 TexPool, TexSTAR, Texas CLASS, and money market accounts carried a
credit rating of AAAm by Standard & Poor’s as of September 30, 2021.
City of Allen, Texas
Notes to Financial Statements
50
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in
a single issuer. The City's investment policy controls concentration of credit risk by limiting the amount of
investment with a single issuer to no more than 35% of the total portfolio except for State approved
investment pools and U.S. Government Securities and Agency Obligations. As of September 30, 2021,
apart from funds invested in TexPool, TexSTAR, or Texas CLASS, the City did not have any investments with
a single issuer exceeding 5% or more of the City’s investments.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover deposits or will not be able to recover collateral
securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral securities that
are in the possession of an outside party. The City’s investment policy minimizes custodial credit risk by
requiring pledged securities to be in the name of the City.
The Public Funds Investment Act requires financial institutions to 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, 2021, the City’s deposits with financial institutions above the federal depository limits
were fully collateralized.
Note 3. Receivables
Receivables at September 30, 2021, for both governmental and business-type activities, including the
applicable allowances for uncollectible accounts, consist of the following:
Property Sales Accrued
Taxes Taxes Accounts Interest Other Total
General Fund 519,764$ 4,423,158$ -$ 79,358$ 4,940,690$ 9,962,970$
Debt Service 121,715 - - 1,375 - 123,090
General Capital Projects - - - 102,356 1,296,779 1,399,135
Grants Fund - - 267,475 - - 267,475
G.O. Bond Fund - - - 151,146 - 151,146
Nonmajor Governmental Funds - - 155,976 35,711 - 191,687
Water and Sewer Fund - - 8,165,745 107,013 7,942 8,280,700
Solid Waste Fund - - 838,480 8,105 130,693 977,278
Drainage Fund - - 249,986 2,036 292 252,314
Golf Course Fund - - - - 23,968 23,968
Internal Service Funds - - 30,514 77,602 - 108,116
Gross Receivables 641,479 4,423,158 9,708,176 564,702 6,400,364 21,737,879
Less: Allowance for
Uncollectibles (448,128) - (264,119) - (1,783,089) (2,495,336)
Total Net Receivables,
Primary Government 193,351$ 4,423,158$ 9,444,057$ 564,702$ 4,617,275$ 19,242,543$
Component Units -$ 4,348,710$ -$ 96,322$ -$ 4,445,032$
The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include unbilled
charges for services rendered through September 30, 2021.
City of Allen, Texas
Notes to Financial Statements
51
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2021, was as follows:
Governmental Activities
Balance Balance
September 30, Adjustments/ September 30,
2020 Additions Dispositions Transfers 2021
Governmental Funds:-
General capital assets
not being depreciated:
Land and land improvements 154,055,221$ 2,102,788$ -$ -$ 156,158,009$
Construction in progress 23,206,266 7,872,562 - (9,019,076) 22,059,752
Total capital assets
not being depreciated 177,261,487 9,975,350 - (9,019,076) 178,217,761
General capital assets
being depreciated:
Buildings 101,175,168 - - 7,723,621 108,898,789
Improvements
other than buildings 539,587,380 4,313,934 - 1,295,455 545,196,769
Furniture and fixtures 4,836,510 - - - 4,836,510
Vehicles 2,065,662 100,674 (195,300) - 1,971,036
Library books 263,597 - (263,597) - -
Machinery and equipment 8,458,523 308,158 (16,322) - 8,750,359
Total capital assets being
depreciated 656,386,840 4,722,766 (475,219) 9,019,076 669,653,463
Less accumulated
depreciation for:
Buildings (36,102,710) (2,661,521) - - (38,764,231)
Improvements
other than buildings (329,565,514) (18,253,271) - - (347,818,785)
Furniture and fixtures (4,570,658) (56,283) - - (4,626,941)
Vehicles (1,305,635) (198,154) 195,300 - (1,308,489)
Library books (263,597) - 263,597 - -
Machinery and equipment (7,275,669) (394,372) 16,322 - (7,653,719)
Total accumulated
depreciation (379,083,783) (21,563,601) 475,219 - (400,172,165)
Total general capital assets
being depreciated, net 277,303,057 (16,840,835) - 9,019,076 269,481,298
General capital assets, net 454,564,544$ (6,865,485)$ -$ -$ 447,699,059$
City of Allen, Texas
Notes to Financial Statements
52
Balance Balance
September 30, Adjustments/ September 30,
2020 Additions Dispositions Transfers 2021
Internal service funds
assets being depreciated:
Vehicles $ 17,529,340 1,469,382$ (736,974)$ $ - $ 18,261,748
Machinery and equipment 5,803,006 - (1,400) - 5,801,606
Total internal service
assets being depreciated 23,332,346 1,469,382 (738,374) - 24,063,354
Less accumulated
depreciation for:
Vehicles (10,385,874) (2,052,724) 712,176 - (11,726,422)
Machinery and equipment (3,974,860) (439,474) 1,400 - (4,412,934)
Total accumulated
depreciation (14,360,734) (2,492,198) 713,576 - (16,139,356)
Total Internal service funds
capital assets being depreciated, net 8,971,612 (1,022,816) (24,798) - 7,923,998
Total Internal service funds
capital assets, net 8,971,612 (1,022,816) (24,798) - 7,923,998
Governmental activities
capital assets, net $ 463,536,156 $ (7,888,301)(24,798)$ -$ $ 455,623,057
Business-Type Activities
Balance
September 30,
2020 Additions
Dispositions /
Transfers
Balance
September 30,
2021
Water and Sewer Activities:
Capital assets not being depreciated:
Land 4,091,626$ -$ -$ 4,091,626$
Construction in progress 6,963,285 6,069,554 (4,490,345) 8,542,494
Total capital assets not
being depreciated 11,054,911 6,069,554 (4,490,345) 12,634,120
Capital Assets Being depreciated:
Towers, tanks, & pumps stations 216,042,913 2,013,893 4,490,345 222,547,151
Machinery and equipment 3,290,535 23,570 - 3,314,105
Vehicles 864,068 366,485 (380,135) 850,418
Total capital assets
being depreciated 220,197,516 2,403,948 4,110,210 226,711,674
Less accumulated depreciation for:
Towers, tanks, & pumps stations (105,205,164) (5,754,392) (110,959,556)
Machinery and equipment (2,597,224) (232,722) - (2,829,946)
Vehicles (689,131) (74,019) 380,135 (383,015)
Total accumulated
depreciation (108,491,519) (6,061,133) 380,135 (114,172,517)
Total capital assets
being depreciated, net 111,705,997 (3,657,185) 4,490,345 112,539,157
Water and sewer activities
capital assets, net 122,760,908$ 2,412,369$ -$ 125,173,277$
City of Allen, Texas
Notes to Financial Statements
53
Balance
September 30,
2020 Additions
Dispositions /
Transfers
Balance
September 30,
2021
Solid Waste Activities:
Capital assets being depreciated:
Machinery and equipment 12,359$ -$ (12,359)$ -$
Vehicles 140,440 - - 140,440
Total capital assets
being depreciated 152,799 - (12,359) 140,440
Less accumulated depreciation for:
Machinery and equipment (12,359) - 12,359 -
Vehicles (63,198) (14,044) - (77,242)
Total accumulated
depreciation (75,557) (14,044) 12,359 (77,242)
Solid waste activities
capital assets, net 77,242$ (14,044)$ -$ 63,198$
Drainage Activities:
Capital assets not being depreciated:
Construction in progress 734,414$ -$ (734,414)$ -$
Total capital assets not
being depreciated 734,414 - (734,414) -
Capital assets being depreciated:
Other improvements 496,132 - 734,414 1,230,546
Vehicles 151,554 - - 151,554
Machinery and equipment 598,962 - (5,000) 593,962
Total capital assets
being depreciated 1,246,648 - 729,414 1,976,062
Less accumulated
depreciation for:
Other improvements (214,621) (30,624) - (245,245)
Vehicles (77,450) (13,473) - (90,923)
Machinery and equipment (449,052) (35,846) 5,000 (479,898)
Total accumulated
depreciation (741,123) (79,943) 5,000 (816,066)
Drainage activities
capital assets, net 1,239,939$ (79,943)$ -$ 1,159,996$
Golf Course Activities:
Capital assets being depreciated:
Machinery and equipment 1,498,135$ 54,452$ -$ 1,552,587$
Total capital assets
being depreciated 1,498,135 54,452 - 1,552,587
Less accumulated
depreciation for:
Machinery and equipment (1,071,771) (163,059) - (1,234,830)
Total accumulated
depreciation (1,071,771) (163,059) - (1,234,830)
Golf course activities
capital assets, net 426,364 (108,607) - 317,757
Business-type activities
capital assets, net 124,504,453$ 2,209,775$ -$ 126,714,228$
City of Allen, Texas
Notes to Financial Statements
54
Balance Balance
September 30, Adjustments/ September 30,
2020 Additions Dispositions Transfers 2021
Economic Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 18,115,044$ 684,018$ -$ -$ 18,799,062$
Total capital assets
not being depreciated 18,115,044 684,018 - - 18,799,062
Capital assets being depreciated:
Buildings 1,004,091 - - - 1,004,091
Total capital assets being
depreciated 1,004,091 - - - 1,004,091
Less accumulated depreciation for:
Buildings (75,307) (50,205) - - (125,512)
Total accumulated depreciation (75,307) (50,205) - - (125,512)
Total capital assets being depreciated, net 928,784 (50,205) - - 878,579
Economic Development Corporation
capital assets, net 19,043,828$ 633,813$ -$ -$ 19,677,641$
Community Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 2,239,201$ -$ -$ -$ 2,239,201$
Construction in progress 459,967 1,757,436 - - 2,217,403
Total capital assets
not being depreciated 2,699,168 1,757,436 - - 4,456,604
Capital assets being depreciated:
Buildings 36,225,091 - - - 36,225,091
Machine & Equipment 3,030,834 140,908 (72,567) - 3,099,175
Improvements other than buildings 38,207,511 - - - 38,207,511
Vehicles 874,339 - (91,111) - 783,228
Total capital assets being
depreciated 78,337,775 140,908 (163,678) - 78,315,005
Less accumulated depreciation for:
Buildings (9,770,389) (912,819) - - (10,683,208)
Machine & Equipment (2,238,336) (266,036) 72,567 - (2,431,805)
Improvements other than buildings (19,907,340) (2,274,484) - - (22,181,824)
Vehicles (720,495) (39,283) 91,111 - (668,667)
Total accumulated depreciation (32,636,560) (3,492,622) 163,678 - (35,965,504)
Total capital assets being depreciated, net 45,701,215 (3,351,714) - - 42,349,501
Community Development Corporation
capital assets, net 48,400,383 (1,594,278) - - 46,806,105
Component units capital assets, net 67,444,211$ (960,465)$ -$ -$ 66,483,746$
City of Allen, Texas
Notes to Financial Statements
55
Depreciation expense was charged as direct expense to programs of the primary government and
component units as follows:
Governmental activities:
General government 1,067,317$
Public safety 1,079,623
Public works 16,170,430
Culture and recreation 3,227,366
Community development 18,865
Total depreciation expense - General capital assets 21,563,601
Internal Service Funds 2,492,198
Total depreciation expense - Governmental activities 24,055,799$
Business-type activities:
Water and sewer 6,061,133$
Solid waste 14,044
Drainage utility 79,943
Golf course 163,059
Total depreciation expense - Business-type activities 6,318,179$
Component units:
Allen Economic Development Corporation 50,205$
Allen Community Development Corporation 3,492,622
Total depreciation expense - Component units 3,542,827$
Outstanding commitments at September 30, 2021, under authorized construction contracts totaled
$39,000,756. These outstanding commitments for capital projects will be funded from unexpended bond
proceeds and additional general obligation bonds.
Note 5. Long-term Debt
At September 30, 2021, bonds payable consisted of the following individual issues:
General Obligation Bonds:
$1,595,000 Series 2006 Bonds due in annual installments
of $50,000 to $115,000 through August 15, 2026;
interest at 4.0% to 4.2%.525,000$
$5,065,000 Series 2013 Bonds due in annual installments
of $190,000 to $340,000 through August 15, 2032;
interest at 2.0% to 3.5%.3,230,000
$10,595,000 Series 2014 Bonds due in annual installments
of $375,000 to $740,000 through August 15, 2033;
interest at 2.0% to 4.0%.7,375,000
$32,245,000 Series 2015 Refunding and Improvement Bonds
due in annual installments of $160,000 to $3,605,000 through
August 15, 2034; interest at 2.0% to 5.0%. 13,165,000
City of Allen, Texas
Notes to Financial Statements
56
General Obligation Bonds – continued
$6,910,000 Series 2016 Refunding Bonds due in annual
installments of $775,000 to $1,000,000 through
August 15, 2028; interest at 2.0% to 4.0%.5,910,000$
$11,845,000 Series 2017 Bonds due in annual installments
of $645,000 to $1,130,000 through August 15, 2032;
interest at 2.25% to 5.0%.8,745,000
$8,355,000 Series 2018 Bonds due in annual installments
of $400,000 to $725,000 through August 15, 2033;
interest at 2.0% to 5.0%.6,830,000
$8,630,000 Series 2019 Refunding and Improvement Bonds
due in annual installments of $370,000 to $2,165,000 through
August 15, 2034; interest at 2.5% to 4.0%.6,095,000
$23,385,000 Series 2020 Refunding and Improvement Bonds
due in annual installments of $1,020,000 to $3,355,000 through
August 15, 2035; interest at 2.0% to 4.0%.20,030,000
$10,595,000 Series 2021 Refunding and Improvement Bonds
due in annual installments of $120,000 to $2,575,000 through
August 15, 2036; interest at 3.0% to 5.0%.10,475,000
Unamortized premium on general obligation bonds. 9,699,808
92,079,808$
Certificates of Obligation:
$22,945,000 Series 2021 Tax & Revenue Certificates due
in annual installments of $1,075,000 to $2,035,000
through August 15, 2036; interest at the rate of 4%-5%. 22,945,000$
Unamortized premium on certificates of obligation. 5,333,061
28,278,061$
Tax Notes:
$2,600,000 Series 2019 Tax Notes due in annual
installments of $855,000 to $880,000 through
August 15, 2022; interest at the rate of 1.75%.880,000$
$3,175,000 Series 2020 Tax Notes due in annual
installments of $475,000 to $580,000 through
August 15, 2026; interest at the rate of 4%.2,700,000
Unamortized premium on tax notes.337,980
3,917,980$
City of Allen, Texas
Notes to Financial Statements
57
Business-type
Water and Sewer Revenue Bonds:
$3,370,000 Series 2013 Refunding Bonds due in installments
of $90,000 to $385,000 through June 1, 2025; with
interest at the rate of 2.0% to 3.0%. 1,375,000$
$1,280,000 Series 2014 Refunding Bonds due in installments
of $105,000 to $265,000 through June 1, 2024; with
interest at the rate of 2.1%. 355,000
$9,330,000 Series 2018 Bonds due in installments
of $290,000 to $670,000 through June 1, 2038; with
interest at the rate of 2.0% to 5.0%. 8,340,000
$3,845,000 Series 2019 Bonds due in installments
of $150,000 to $265,000 through June 1, 2039; with
interest at the rate of 2.0% to 4.0%. 3,535,000
$4,880,000 Series 2020 Bonds due in installments
of $175,000 to $360,000 through June 1, 2040; with
interest at the rate of 2.0% to 5.0%. 4,675,000
$10,675,000 Series 2021 Bonds due in installments
of $400,00 to $715,000 through June 1, 2036; with
interest at the rate of 2.0% to 5.0%. 10,675,000
Unamortized premium on water and sewer revenue bonds. 3,480,106
32,435,106$
AEDC Sales Tax Revenue Bonds:
$11,810,000 Series 2017A Refunding Bonds due in
annual installments of $880,000 to $1,335,000 through
September 1, 2027; interest at 2.0% to 5.0%. 7,110,000$
$2,110,000 Series 2020 Sales Tax Revenue Bonds
due in annual installments of $200,000 to $225,000
through September 1, 2030; interest at .75% to 2.0%. 1,910,000
$2,295,001 Series 2020 Sales Tax Revenue Bonds
due in annual installments of $160,000 to $200,000
through September 1, 2036; interest at .65% to 2.45%. 2,295,000
Unamortized premium on AEDC sales tax revenue bonds. 727,972
12,042,972$
AEDC Promissory Note:
$4,400,000 Promissory Note due in annual installments
of $679,853 through June 11, 2022; interest at 2.00%. 666,522$
666,522$
ACDC Sales Tax Revenue Bonds:
$31,235,000 Series 2016 Refunding Bonds due in
annual installments of $1,715,000 to $3,825,000 through
September 1, 2025; interest at 0.750% to 2.353%. 22,530,000$
22,530,000$
City of Allen, Texas
Notes to Financial Statements
58
The following is a summary of long-term debt transactions, including current portion, of the City for the
year ended September 30, 2021:
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Governmental Activities
General obligation bonds 88,395,000$ 10,595,000$ (16,610,000)$ 82,380,000$ 9,495,000$
Certificates of obligation - 22,945,000 - 22,945,000 1,075,000
Tax notes 4,920,000 - (1,340,000) 3,580,000 1,380,000
Capital lease payable 46,005 100,674 (44,141) 102,538 45,253
Premiums (discounts) 10,585,840 6,881,772 (2,096,763) 15,370,849 1,645,970
Compensated absences 7,854,230 5,938,604 (5,564,536) 8,228,298 6,585,216
Net OPEB liability 1,559,682 365,245 - 1,924,927 -
Net pension liability 22,391,559 - (2,805,108) 19,586,451 -
Governmental activity
long-term debt 135,752,316$ 46,826,295$ (28,460,548)$ 154,118,063$ 20,226,439$
The general fund has typically been used to liquidate the liability for compensated absences for
governmental activities.
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Business-Type Activities
Water and sewer revenue bonds 19,450,000$ 10,675,000$ (1,170,000)$ 28,955,000$ 1,555,000$
Capital lease payable 423,155 54,453 (145,073) 332,535 159,565
Premiums (discounts) 2,070,599 1,625,584 (216,077) 3,480,106 216,079
Net pension liability 2,762,777 - (327,345) 2,435,432 -
Net OPEB liability 190,162 42,622 - 232,784 -
Compensated absences 787,220 553,882 (504,928) 836,174 535,110
Business-type activity long-term debt 25,683,913$ 12,951,541$ (2,363,423)$ 36,272,031$ 2,465,754$
Component Units
Allen Community Development Corporation
Sales tax revenue bonds 24,315,000$ -$ (1,785,000)$ 22,530,000$ 1,815,000$
ACDC long-term debt 24,315,000$ -$ (1,785,000)$ 22,530,000$ 1,815,000$
Allen Economic Development Corporation
Sales tax revenue bonds 10,225,000$ 2,295,000$ (1,205,000)$ 11,315,000$ 1,245,000$
Note payable 1,319,975 - (653,453) 666,522 666,522
Premiums (discounts) 860,330 - (132,358) 727,972 132,358
AEDC long-term debt 12,405,305$ 2,295,000$ (1,990,811)$ 12,709,494$ 2,043,880$
Component units long-term debt 36,720,305$ 2,295,000$ (3,775,811)$ 35,239,494$ 3,858,880$
Bond Issuances
On June 30, 2021, the City issued City of Allen, Texas General Obligation Improvement and Refunding
Bonds, Series 2021, in the amount of $10,595,000, to construct and/or make improvements to existing
library facilities and streets; and to refund all future debt service payments of $6,945,000 related to the
City of Allen, Texas General Obligation Refunding Bonds, Series 2011 and General Obligation Refunding
Bonds, Series 2012. Total bond proceeds totaled $12,143,711 and includes a premium of $1,548,711.
Expenses incurred to deliver the Series 2021 bonds, including issuance costs, underwriter’s discount, and
agents’ fees amounted to $156,486. The Series 2021 bonds incur an average cost over the life of the debt
at a rate of 3.00%-5.00% and mature annually, with semi-annual interest payments. The City deposited
$7,105,226 with an escrow agent in order to redeem the outstanding balances of the refunded debt.
City of Allen, Texas
Notes to Financial Statements
59
The net carrying amount of the old debt exceeded the reacquisition price by $365,182. This amount is
being netted against the new debt and amortized over the remaining life of the refunding Series 2011
and Series 2012 bonds. The City refunded the series 2011 and 2012 bonds to reduce its total debt service
payments over ten years by $770,350 and to obtain an economic gain (difference between the present
values of the debt service payments on the old and new debt) of $738,178.
On June 30, 2021, the City issued City of Allen, Texas Combination Tax and Revenue Certificates of
Obligation Series 2021, in the amount of $22,945,000, plus a premium of $5,333,061, to construct a new
recreation center, construct and/or make improvements on public infrastructure within the City and to
pay costs related to the issuance of the certificates. The certificates incur an average cost over the life of
the debt at a rate of 4.00-5.00% and mature annually with semi-annual interest payments. The certificates
will fully mature in 2036.
On June 30, 2021, the City issued City of Allen, Texas Waterworks and Sewer System Revenue Bonds, Series
2021, in the amount of $10,675,000, plus a premium of $1,625,584, to make improvements to the existing
water and sewer systems of the City. The bonds incur an average cost over the life of the bonds at a rate
of 2.00-5.00% and mature annually with semi-annual interest payments. The bonds will fully mature in 2041.
On June 24, 2021, the Allen Economic Development Corporation issued, Sales Tax Revenue Bonds, Series
2021, in the amount of $2,295,000 to provide funds to finance the costs of designing, constructing,
acquiring, and improving infrastructure with the City, including streets and roads, storm sewer, sanitary
sewer and water utilities, detention and irrigation improvements, and related improvements to promote
or develop new or expanded business enterprises, to make a deposit to the reserve fund and to pay costs
associated with the issuance of the bonds. The bonds incur an average cost over the life of the bonds at
a rate of .65-1.6% and mature annually with semi-annual interest payments. The bonds will fully mature in
2036.
Annual Requirements to Retire Debt Obligations
The City intends to retire all its general long-term liabilities, plus accrued interest, from ad valorem taxes
and other current revenues. The proprietary fund type long-term debt, plus accrued interest, will be repaid
from operating revenues of the Water and Sewer Fund. The annual aggregate maturities for each bond
type for the years subsequent to September 30, 2021, are on the following pages.
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2022 9,495,000$ 3,205,481$ 12,700,481$
2023 8,095,000 2,868,586 10,963,586
2024 7,880,000 2,548,458 10,428,458
2025 6,980,000 2,253,386 9,233,386
2026 7,235,000 1,999,807 9,234,807
2027-2031 29,190,000 5,834,962 35,024,962
2032-2036 13,505,000 1,070,863 14,575,863
Total 82,380,000$ 19,781,543$ 102,161,543$
Governmental Activities
City of Allen, Texas
Notes to Financial Statements
60
Certificates of Obligation
Annual debt service requirements to maturity for certificates of obligation, including interest, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2022 1,075,000$ 1,036,500$ 2,111,500$
2023 1,130,000 982,750 2,112,750
2024 1,190,000 926,250 2,116,250
2025 1,250,000 866,750 2,116,750
2026 1,310,000 804,250 2,114,250
2027-2031 7,585,000 2,972,500 10,557,500
2032-2036 9,405,000 1,158,600 10,563,600
Total 22,945,000$ 8,747,600$ 31,692,600$
Governmental Activities
Tax Notes
Annual debt service requirements to maturity for the Tax Notes, including interest, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total
2022 1,380,000$ 123,400$ 1,503,400$
2023 520,000 88,000 608,000
2024 540,000 67,200 607,200
2025 560,000 45,600 605,600
2026 580,000 23,200 603,200
Total 3,580,000$ 347,400$ 3,927,400$
Governmental Activities
Waterworks and Sewer System Revenue Bonds
Revenue bonds debt service requirements to maturity, including interest, are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2022 1,555,000$ 1,040,735$ 2,595,735$
2023 1,575,000 1,019,366 2,594,366
2024 1,645,000 970,308 2,615,308
2025 1,420,000 929,700 2,349,700
2026 1,200,000 892,950 2,092,950
2027-2031 6,605,000 3,833,900 10,438,900
2032-2036 8,160,000 2,273,450 10,433,450
2037-2041 6,795,000 622,900 7,417,900
Total 28,955,000$ 11,583,309$ 40,538,309$
Business-type Activities
City of Allen, Texas
Notes to Financial Statements
61
AEDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total
2022 1,245,000$ 425,743$ 1,670,743$
2023 1,305,000 371,792 1,676,792
2024 1,515,000 314,743 1,829,743
2025 1,580,000 253,845 1,833,845
2026 1,645,000 189,015 1,834,015
2027-2031 3,075,000 268,892 3,343,892
2032-2036 950,000 69,010 1,019,010
Total 11,315,000$ 1,893,040$ 13,208,040$
AEDC
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest, are as follows
Fiscal Year Ending
September 30, Principal Interest Tota l
2022 1,815,000$ 595,735$ 2,410,735$
2023 1,850,000 560,560 2,410,560
2024 1,890,000 521,192 2,411,192
2025 1,935,000 476,721 2,411,721
2026 1,980,000 431,190 2,411,190
2027-2031 10,725,000 1,335,413 12,060,413
2032-2036 2,335,000 74,090 2,409,090
Total 22,530,000$ 3,994,901$ 26,524,901$
ACDC
AEDC Note Payable
The note payable debt service requirements to maturity, including interest, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total
2022 666,522$ 13,330$ 679,852$
Total 666,522$ 13,330$ 679,852$
AEDC
City of Allen, Texas
Notes to Financial Statements
62
A schedule of authorized but unissued direct General Obligation Bonds as of September 30, 2021, is as
follows:
Date of Original Amount Issued in Issued Unissued
Purpose Authorization Authorized Prior Fiscal Years in 2021 Balance
Service Center Facilities 5/12/2007 $ 14,500,000 $ 12,500,000 -$ $ 2,000,000
Library 5/7/2016 16,045,000 1,431,000 1,000,000 13,614,000
Streets and Drainage 5/7/2016 23,890,000 14,346,000 3,882,000 5,662,000
Parks 5/7/2016 27,000,000 18,000,000 - 9,000,000
Public Art Projects 5/7/2016 1,770,000 867,940 - 902,060
Public Safety 5/7/2016 24,445,000 13,000,000 - 11,445,000
$ 107,650,000 $ 60,144,940 $ 4,882,000 $ 42,623,060
Waterworks and Sewer System Revenue Bonds
Waterworks and Sewer System Revenue Bonds are used to finance the acquisition of major capital
improvements for the City’s water and sewer system and related facilities. 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 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 $764,763 at September 30, 2021, 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.
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 whenever enough 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, 2021, of $2,647,082 are adequate to meet the reserve requirements.
At September 30, 2021, restricted assets, which include amounts in the Water and Sewer Revenue Bond
Debt Service and the Revenue Bond Reserve Fund, were as follows:
Revenue bond reserve fund 2,020,203$
Revenue bond debt service 626,879
2,647,082$
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds 2,647,082$
Accrued interest, payable from restricted assets (327,319)
Current maturities of revenue bonds,
payable from restricted assets (1,555,000)
Reserved for water and sewer revenue bonds principal and interest 764,763$
City of Allen, Texas
Notes to Financial Statements
63
The City complies with the various requirements of the bond ordinances.
Capital Leases
The City has acquired office equipment, a building, and land under various leases accounted for as
capital leases. As of September 30, 2021, the capitalized costs of the governmental leased property and
business-type leased property under capital leases were $223,214 and $850,166, respectively.
The terms of the leases range from 3 - 5 years and call for monthly and annual payments over the life of the
leases. The future minimum lease payments under the capitalized leases and the net present value of the
future minimum lease payments at September 30, 2021, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total Principal Interest Total
2022 45,253$ 3,008$ 48,261$ 159,565$ 10,468$ 170,033$
2023 33,953 1,527 35,480 139,471 4,293 143,764
2024 23,332 320 23,652 10,908 1,514 12,422
2025 - - - 11,501 921 12,422
2026 - - - 11,090 296 11,386
Total 102,538$ 4,855$ 107,393$ 332,535$ 17,492$ 350,027$
Governmental Activities Business-type Activities
Operating Leases
The City leases machinery and equipment under non-cancelable operating leases. Total cost for such
leases was $578,360 for the fiscal year ended September 30, 2021. Future minimum lease payments, by year
and in the aggregate, under the non-cancelable lease commitments are as follows:
Fiscal Year Ending
September 30, Amount
2022 518,269$
2023 480,400
2024 396,982
2025 55,131
2026 24,795
Total 1,475,577$
City of Allen, Texas
Notes to Financial Statements
64
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 ended September 30, 2021, were as follows:
Fund Transfers In Transfers Out
Major Governmental Funds:
General Fund 5,119,962$ 6,909,368$
General Capital Projects 5,060,083 230,079
General Obligation Bonds - 282,486
10,180,045 7,421,933
Nonmajor Governmental Funds:
Special Revenue - 56,835
Hotel Occupancy Tax - 2,453
Total Nonmajor Governmental Funds - 59,288
Major Enterprise Funds:
Water and Sewer Fund 2,316,189 5,451,161
Solid Waste Fund - 685,987
Drainage Utility Fund - 413,691
Golf Course Fund 227,314 -
Total Major Enterprise Funds 2,543,503 6,550,839
Internal Service Funds:
Replacement Fund 230,079 -
Facility Maintenance Fund 320,170 -
Risk Management Fund 758,263 -
Total Internal Service Funds 1,308,512 -
Total Transfers $ 14,032,060 $ 14,032,060
Total Major Governmental Funds
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 transfer in of $10,180,045 into the governmental funds were made to fund
capital projects, and provide funding for technology, procurement, human resources, building
maintenance, financial, and administrative support. Transfers out totaling $7,481,221 includes cash
financing for capital projects, operational support for the Golf Course, and support to programs recorded
in non-major governmental and internal service funds.
City of Allen, Texas
Notes to Financial Statements
65
Proprietary funds: Total transfers in of $2,543,503 into the enterprise funds mainly represents amounts
transferred into the Golf Course and Water and Sewer Funds to support operations. The total transfers out
of $6,550,839 represents the amount provided by other funds for technology, procurement, human
resources, building maintenance, financial and administrative support. The internal service funds total
transfers in of $1,308,512 represents the amounts needed for repairs of aging facility infrastructure and risk
administration support.
Note 7. Retirement Plan
Plan Description
The City participates as one of 895 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit
pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a
publicly available comprehensive annual financial report that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also
choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24,
or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest.
A summary of plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
Years required for vesting 5
Service retirement eligibility 20 years at any age, 5 years
at age 60 and above
Updated Service Credit 100% Repeating
Annuity Increase to retirees 70% of CPI Repeating
The City also participates in Social Security.
City of Allen, Texas
Notes to Financial Statements
66
Employees Covered by Benefit Terms:
At the December 31, 2020, valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 275
Inactive employees entitled to, but not yet receiving benefits 505
Active employees 767
Total 1,547
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the
city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the
consulting actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined
rate is the estimated amount necessary to finance the cost of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The actuarially determined contribution rates for retirement benefits for the City were 14.03%, 14.00% and
14.38% in calendar years 2019, 2020, and 2021, respectively. The City’s contributions to TMRS for the years
ended September 30, 2019, 2020, and 2021, were $7,736,900, $7,890,278 and $8,739,669, respectively, which
were in excess of the required annual contribution for each year.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2020, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2020, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.50% to 11.50% including inflation
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees and
beneficiaries were based on the gender-distinct 2019 Municipal Retirees of Texas mortality tables. The
rates are projected on a fully generational basis by scale UMP to account for future mortality
improvements. For disabled annuitants, the mortality tables for healthy retirees is used with a four-year set-
forward for males and a three-year set-forward for females.
City of Allen, Texas
Notes to Financial Statements
67
Actuarial assumptions used in the December 31, 2020, valuation were based on the results of actuarial
experience studies. This experience study was for the period December 31, 2014 through December 31,
2018. Healthy post-retirement mortality rates and annuity purchase rates are based on a Mortality
Experience Investigation Study covering 2014 through 2018, and dated December 31, 2019. Plan assets
are managed on a total return basis with an emphasis on both capital appreciation as well as the
production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building block
method in which best estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal
year 2021 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)
Global Equity 30.0% 7.80%
Core Fixed Income 10.0% 3.80%
Non-Core Fixed Income 20.0% 6.60%
Real Estate 10.0% 6.50%
Real Return 10.0% 6.40%
Absolute Return 10.0% 6.00%
Private Equity 10.0% 10.30%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected
to be available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the Total Pension Liability.
City of Allen, Texas
Notes to Financial Statements
68
Changes in the Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
Balance at 12/31/2020 232,630,122$ 207,475,787$ 25,154,335$
Changes for the year:
Service cost 9,715,534 - 9,715,534
Interest 15,828,804 - 15,828,804
Difference between expected
and actual experience (735,396) - (735,396)
Change in assumptions - -
Contributions - employer - 8,425,764 (8,425,764)
Contributions - employee - 3,850,652 (3,850,652)
Net investment income - 15,770,860 (15,770,860)
Benefit payments, including
refunds of employee contributions (5,974,168) (5,974,168) -
Administrative expense - (101,906) 101,906
Other changes - (3,976) 3,976
Net changes 18,834,774 21,967,226 (3,132,452)
Balance at 12/31/2021 251,464,896$ 229,443,013$ 22,021,883$
Increase (Decrease)
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is
1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease in
Discount Rate
(5.75%)
Discount Rate
(6.75%)
1% Increase in
Discount Rate
(7.75%)
City’s net pension liability 62,513,800$ 22,021,883$ (10,794,703)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued TMRS
financial report. That report may be obtained on the Internet at www.tmrs.com.
City of Allen, Texas
Notes to Financial Statements
69
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2021, the City recognized pension expense in the amount of $6,337,540.
At September 30, 2021, the City reported deferred outflows and inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 1,307,294$ (584,664)$
Changes in actuarial assumptions 240,362 -
Difference between projected and
actual investment earnings 6,813,903 (12,695,167)
Contributions subsequent to the
measurement date 6,034,428 -
Total 14,395,987$ (13,279,831)$
Deferred outflows of resources in the amount of $6,034,428 related to pensions that resulted from
contributions made subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the fiscal year ending September 30, 2022. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement
year ending
December 31:
2021 (1,532,859)$
2022 314,334
2023 (3,215,124)
2024 (484,623)
Total (4,918,272)$
Note 8. Water and Sewer Contracts
In 1972, the City entered 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. For the year ended September 30, 2021, the cost of water purchased under this contract
was $17,743,394.
In 1978, the City entered 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. The cost includes
the City’s proportionate share of the District’s operating and maintenance expenses and related debt
service costs. During fiscal year 2021, the cost for transportation, treatment and disposal of sewage and
other wastes was $11,315,421.
City of Allen, Texas
Notes to Financial Statements
70
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, 2021, the deferred compensation
investments are not reported in the City’s financial statements.
Note 10. Risk Management
Health and Dental Insurance
The City provides health and dental insurance benefits to City employees under a modified self-insurance
plan. Under the plan, the City and the employee pay a portion of a predetermined monthly premium,
which is based on the estimated claims cost for the plan and the extent of medical coverage selected
by the employee. To cover annual costs, premium payments are reported as operating revenues of the
Risk Management Fund and operating expenditures/expenses of the participating funds.
A commercial insurance carrier is utilized to adjudicate and pay medical claims on behalf of the City.
The City’s medical claims liability is limited by a stop loss insurance policy that covers individuals’ medical
claims in excess of $125,000 per plan year. Aggregate stop loss coverage of $2,000,000 per plan year
provides protection to limit claim liability for the plan as a whole. The liabilities for insurance claims
reported are based on GASB No. 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues, which requires that a liability for claims be reported if information prior to the issuance of
the financial statements indicates that it is probable that a liability has been incurred at the date of the
financial statements and the amount of the loss can be reasonably estimated.
These liabilities include an estimate for incurred but not reported claims. The estimated amount at
September 30, 2021, was $1,066,722. Changes in the Risk Management liability during the past five fiscal
years were as follows:
Balance at Current Year Claims Balance at
Year Ending Beginning of and Changes in Claim End of
September 30, Fiscal Year Estimates Payments Fiscal Year
2017 1,073,336$ 8,599,895$ 8,512,397$ 1,160,834$
2018 1,160,834 7,857,200 7,953,825 1,064,209
2019 1,064,209 8,909,032 8,771,234 1,202,007
2020 1,202,007 8,285,276 8,433,972 1,053,311
2021 1,053,311 9,400,218 9,386,807 1,066,722
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.
City of Allen, Texas
Notes to Financial Statements
71
The City has a workers’ compensation deductible of $25,000 per occurrence, with an annual aggregate
deductible of $330,000. During fiscal 2021, the City contributed $930,016 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 fiscal 2021, the City contributed $1,083,224 for property and general liability.
Note 11. Postemployment Benefits Other Than Pensions (OPEB)
City of Allen Retiree Healthcare Plan:
Plan Description and Benefits Provided
In addition to the pension benefits described in Note 7, and as required by state law, the City provides
post-retirement health care benefits for all permanent full-time employees through a single employer
defined benefit medical plan. To be eligible under the plan, a participant must either attain age sixty (60)
and at least five (5) years of TMRS service or be any age with twenty (20) or more years of service. Retirees
must make a one-time irrevocable decision to continue benefits at the time of retirement, after which
their eligibility for this benefit ends. The retiree benefit consists of medical, dental and vision care until age
65.
Employees who retired on or before December 31, 2012, were “grandfathered” in and allowed to pay
the same blended medical premium rates as COBRA participants, which are the total cost of premiums
(no City subsidy) plus 2% administration fees. The retirees are also subject to the same rate increases as
COBRA participants. Employees who retire 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. During fiscal year ended September 30, 2021, retirees paid
$59,766 in the form of premiums and incurred $224,512 in plan expenses.
Employees Covered by Benefit Terms
Membership in the defined benefit medical plan consisted of the following at the measurement date of
September 30, 2021:
Inactive employees or beneficiaries currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits -
Active plan members 723
Total members 731
City of Allen Retiree Healthcare Plan
Funding Policy
Due to the significant increase in retiree premium costs, the City elected to create a separate Other
Postemployment Defined Benefit Medical Plan for retirees, effective January 1, 2013. 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) and
is used to accumulate resources to fund future benefits. However, it does not represent the activities of
the plan. Related medical costs are incurred in and paid from the City’s Risk Management Fund. The plan
benefit provisions and obligations to contribute are established by City Council action and are actuarially
determined.
City of Allen, Texas
Notes to Financial Statements
72
Net OPEB Liability (Asset)
Actuarial Methods and Assumptions - The City’s net OPEB liability (asset) was measured as of
September 30, 2021, and the total OPEB liability used to calculate the net OPEB liability (asset) was
determined by an actuarial valuation as of that date, which was rolled forward using standard update
procedures to determine the September 30, 2021, total OPEB liability based on the following actuarial
methods and assumptions:
Actuarial Assumptions
Valuation Date October 1, 2019
Measurement Date September 30, 2021
Discount Rate 4.00%
Inflation 2.25% per annum
Payroll Growth Rate 3.00% per annum, including inflation
Mortality, Non-Annuitants Sex distinct headcount weighted PUB-2010 general and
safety employees table, with mortality Improvement
scale MP-2019
Mortality, Annuitants Sex distinct headcount weighted PUB-2010 general
retirees table, with mortality improvement scale MP-2019
Healthcare Trend - Medical – 11.87% initial, decreasing to an ultimate rate
of 4.60% in 2041 and later years.
- Dental - 3.0%
Participation Rate 20% of participants eligible for medical or dental benefits
upon retirement are assumed to elect coverage.
Investment Rate of Return 4.00%, net of OPEB plan investment expenses
The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Domestic Equities 20.0% 5.55%
Fixed Income 65.0% 2.16%
Private Equity 2.5% 7.80%
Real Estate 2.5% 5.90%
Cash 10.0% 1.10%
Total 100.0%
Discount Rate - The current valuation is based upon last year’s valuation results projected forward to the
new Measurement Date of September 30, 2021.
City of Allen, Texas
Notes to Financial Statements
73
Changes in the Net OPEB Liability (Asset)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(a) - (b)
Balance at 09/30/2020 621,958$ 1,454,419$ (832,461)$
Changes for the year:
Interest 21,215 - 21,215
Difference between expected -
and actual experience - - -
Changes of assumptions - - -
Net investment income - 116,827 (116,827)
Benefit payments (183,188) (222,665) 39,477
Administrative expense - (8,523) 8,523
Net changes (161,973) (114,361) (47,612)
Balance at 09/30/2021 459,985$ 1,340,058$ (880,073)$
Increase (Decrease)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability (asset) of the City for the City of Allen Retiree Healthcare Plan,
as well as what the City’s net OPEB liability (asset) would be if it were calculated using a discount rate that
is 1-percentage-point lower or 1-percentage-point higher than the current discount rate of 4.00%:
1% Decrease in
Discount Rate
(3.00%)
Current
Discount Rate
(4.00%)
1% Increase in
Discount Rate
(5.00%)
City’s net OPEB (Asset) (858,842)$ (880,073)$ (899,980)$
The following presents the net OPEB liability (asset) of the City for the City of Allen Retiree Healthcare Plan,
as well as what the City’s net OPEB liability (asset) would be if it were calculated using healthcare cost trend
rates that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend
rates:
1% Decrease in
Trend Rate (8.53%)
Healthcare Cost
Trend Rate (9.53%)
1% Increase in
Trend Rate
(10.53%)
City’s net OPEB (Asset) (907,447)$ (880,073)$ (851,220)$
City of Allen, Texas
Notes to Financial Statements
74
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended September 30, 2021, the collective OPEB expense of the City of Allen Retiree
Healthcare Plan was a credit of $68,635. At September 30, 2021, the City reported deferred outflows and
deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ (55,066)$
Changes in actuarial assumptions 19,238 (111,008)
Difference between projected and
actual investment earnings - (73,112)
Total 19,238$ (239,186)$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as part of OPEB expense as follows.
Measurement
year ending Annual
September 30,Amor tization
2022 (44,950)$
2023 (43,024)
2024 (45,638)
2025 (37,074)
2026 (24,393)
Thereafter (24,869)
Total (219,948)$
Supplemental Death Benefits Plan:
Program Description
The City also participates in the cost sharing multiple-employer defined benefit group-term life insurance
plan administered by Texas Municipal Retirement System (TMRS), which is 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 an
employee’s annual salary (calculated based on the employee’s actual earnings for the 12-month period
preceding the month of death). Retired employees are each insured for $7,500, and this coverage is
reported as an “other postemployment benefit” or (OPEB). As the SDBF covers both active and retired
participants, with no segregation of assets, the SDBF is considered as an unfunded OPEB plan (i.e. no
assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for
financial reporting.
City of Allen, Texas
Notes to Financial Statements
75
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 to not pre-fund retiree term life insurance during employees’ entire
careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for each
city. The rate is based on the mortality and service experience of all employees covered by the SDBF and
the demographics specific to the workforce of the City. There is a one-year delay between the actuarial
valuation that serves as the basis for the employer contribution rate and the calendar year when the rate
goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet
all death benefit payments for the upcoming year.
The retiree portion of contribution rates to the SDBF for the City was 0.01% for calendar years 2020, 2019,
and 2018. The City’s contributions to the TMRS SDBF for retirees for the fiscal years ended September 30,
2021, 2020, and 2019 were $18,595, $5,394, and $5,156, respectively, which were equal to the actuarially
determined contribution (ADC) for each year.
Summary of Actuarial Assumptions and Other Inputs Used
Inflation 2.5 %
Salary Increases 3.5% to 10.5%, including inflation.
Discount Rate 2.00%
Retirees’ share of benefit-related costs $0.00
Administrative Expenses All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
Mortality Rates – service retirees 2019 Municipal Retirees of Texas Mortality Tables. The
rates are projected on a fully generational basis with
scale UMP.
Mortality Rates – disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4
year set-forward for males and a 3 year set-forward for
females. In addition, a 3.5% and 3% minimum mortality
rate will be applied to reflect the impairment for younger
members who become disabled for males and females,
respectively. The rates are projected on a fully
generational basis by Scale UMP to account for future
mortality improvements subject to the floor.
Note: The actuarial assumptions used in the December 31, 2020, valuation was based on the
results of an actuarial experience study for the period December 31, 2014, to December 31, 2018.
Employees Covered by Benefit Terms*
At December 31, 2020, the actuarial valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 194
Inactive employees entitled to, but not yet receiving benefits 105
Active employees 767
Total 1,066
City of Allen, Texas
Notes to Financial Statements
76
Changes in total OPEB Liability
Total OPEB Liability – beginning of year 1,749,844$
Changes for the year:
Service Cost 126,390
Interest on Total OPEB Liability 49,783
Differences between expected and actual experience (78,736)
Changes in assumptions or other inputs 315,925
Benefit payments (5,495)
Net Change 407,867
Total OPEB Liability - end of year 2,157,711$
The City’s total OPEB liability of $2,157,711 was measured at December 31, 2020, and determined by an
actuarial valuation as of that date. Accordingly, no roll-forward is required.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower (1.00%) or 1-percentage-
point higher (3.00%) than the current discount rate:
1.0% Decrease Current 1.0% Increase
in Discount Rate Discount Rate in Discount Rate
(1.00%) (2.00%) (3.00%)
Total OPEB Liability 2,691,339$ 2,157,711$ 1,749,553$
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2021, the City recognized OPEB expense of $245,361. OPEB expense
recognized is as follows
Components of OPEB Expense:
Service Cost 126,390$
Interest on Total OPEB Liability 49,783
Differences between expected and actual experience (23,278)
Change in assumptions or other input 92,466
Total OPEB Expense 245,361$
At September 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from
the following sources:
Deferred
outflows of
Resources
Deferred
inflows of
Resources
Contributions made subsequent to measurement date 17,010$ -$
Differences between expected and actual experience 58,312 (197,684)
Changes in assumptions or other inputs 549,262 (63,945)
Total 624,584$ (261,629)$
City of Allen, Texas
Notes to Financial Statements
77
Deferred outflows of resources in the amount of $17,010 related to OPEB that resulted from contributions
made subsequent to the measurement date but before September 30, 2021, will be recognized as a
reduction of the net OPEB liability in the subsequent fiscal period rather than in the current fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in future OPEB expense as follows:
Year Ending Net deferred outflows/
September 30, (inflows) of resources
2022 69,188$
2023 69,188
2024 69,188
2025 52,843
2026 51,945
Thereafter 33,593
Total 345,945$
Combined Totals for Retiree Healthcare Plan and Supplemental Death Benefits Plan
The combined totals for the two OPEB plans are as follows:
Retiree
Healthcare
Plan SDBF Total
OPEB asset 880,073$ -$ 880,073$
OPEB liability - (2,157,711) (2,157,711)
Deferred inflows (239,186) (261,629) (500,815)
Deferred outflows 19,238 624,584 643,822
OPEB expense (credit) (68,635) 245,361 176,726
Note 12. Tax Abatements and Economic Incentives
The City enters into economic development agreements designed to promote development and
redevelopment within the City, spur economic improvement, stimulate commercial activity, generate
additional sales tax, and enhance the property tax base and economic vitality of the City. These
programs abate or rebate property and sales taxes and include incentive payments and rebates of fees
that are not tied to taxes. The City’s economic development agreements are authorized under Chapter
380 of the Texas Local Government Code, Chapter 311 (Tax Increment Financing Act), and 312 (Property
Redevelopment and Tax Abatement Act) of the Texas Tax Code. Recipients may be eligible to receive
economic assistance based on the employment impact, economic impact, or community impact of the
project requesting assistance. Recipients of assistance generally commit to building or remodeling real
property and related infrastructure, demolishing and redeveloping outdated properties, expanding
operations, renewing facility leases, or bringing targeted businesses to the City. Agreements generally
contain recapture provisions that may require repayment or termination if recipients do not meet the
required provisions of the economic incentives. The following are the three categories of economic
development agreements City has contracted:
City of Allen, Texas
Notes to Financial Statements
78
General Economic Development -The City, Allen Economic Development Corporation, and Allen
Community Development Corporation enter into various agreements under Chapter 380 of the Texas
Local Government Code to stimulate economic development. Agreements may rebate a flat amount
or percentage of property taxes or sales tax received, may result in fee reductions or rebates, or make
lump sum payments to offset moving expenses, tenant finish-outs, demolition costs, infrastructure
reimbursements, redevelopment costs or other expenses. During fiscal year 2021, the City rebated
$5,468,474 in taxes and rebated fees of $219,501 under these agreements.
Additionally, for fiscal year 2021, the Allen Economic Development Corporation rebated taxes in the
amount of $177,893 and made incentive payments of $5,874,795, while the Allen Community
Development Corporation rebated taxes in the amount of $177,893.
Tax Abatements -Tax Abatements under Chapter 312 of the Texas Tax Code allow the City to designate
tax reinvestment zones and negotiate tax abatement agreements with applicants. These abatement
agreements authorize the appraisal districts to reduce the assessed value of the taxpayer’s property by
a percentage specified in the agreement, and the taxpayer pays taxes on the lower assessed value
during the term of the agreement. Property taxes abated under this program were $226,850 for the fiscal
year ended September 30, 2021.
Tax Increment Financing -The City has adopted two Tax Increment Financing (TIF) zones under Chapter
311 of the Texas Tax Code. The City enters into economic development and infrastructure reimbursement
agreements that earmark TIF revenues for payment to developers and represent obligations over the life
of the TIF or until all terms of the agreements have been met. Additionally, the City may enter into general
economic development agreements, under Chapter 380 of the Texas Local Government Code, which
are funded with TIF resources. The City made $810,767 in payments for TIF obligations during fiscal year
2021.
Note 13. Commitments and Contingent Liabilities
Federal Grants -The City participates in several State and Federal assisted grant programs. Amounts
received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the Federal Government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the City expects such amounts, if any, to be
immaterial.
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
Economic Development Grant -The City has several economic development agreements whereby the
City has agreed to pay a grant(s) to a developer and/or business in return for the design, construction,
operating, and/or managing of the business within the City of Allen. All grants are performance based
and do not constitute liabilities on the City’s financial records.
79
Required Supplementary
Information
80
City of Allen, Texas Exhibit A-1
Schedule of Changes in Total OPEB Liability and Related Ratios -
Supplemental Death Benefits Fund
Last Four Measurement Years
81
2020*2019*2018*2017*
Total OPEB liability:
Service cost 126,390$ 94,165$ 97,628$ 83,658$
Interest (on the total pension liability) 49,783 56,186 45,926 42,992
Changes in benefit terms - - - -
Difference in expected and actual experience (78,736) (183,037) 101,506 -
Change in assumptions or other inputs 315,925 317,781 (111,311) 121,271
Benefit payments **(5,495) (5,231) (4,881) (4,648)
Net change in total OPEB liability 407,867 279,864 128,868 243,273
Total OPEB liability, beginning of year 1,749,844 1,469,980 1,341,112 1,097,839
Total OPEB liability, end of year 2,157,711$ 1,749,844$ 1,469,980$ 1,341,112$
Covered-employee payroll 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$
Total OPEB liability as a percentage of covered-employee payroll 3.93% 3.34% 3.01% 2.89%
Notes to Schedule:
*GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
**Due to the SDBP being considered an unfunded plan under GASB 75, benefit payments
are treated as being equal to the employer's yearly contributions for retirees.
There are no assets accumulated in trust to pay related benefits for the OPEB Plan.
City of Allen, Texas Exhibit A-2
Schedule of OPEB Contributions -
Supplemental Death Benefits Fund
Last Four Fiscal Years
82
Fiscal Year Ended September 30,
2021* 2020* 2019* 2018*
Actuarially determined contributions 18,595$ 5,394$ 5,156$ 4,778$
Contributions in relation to actuarially determined contribution 18,595 5,394 5,156 4,778
Contributions deficiency (excess) -$ -$ -$ -$
Covered-employee payroll 58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$
Contributions as a percentage of covered-employee payroll 0.03% 0.01% 0.01% 0.01%
Notes to Schedule of OPEB Contributions
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
GASB 75, paragraph 57, requires that the data in this schedule be presented as of the
City’s fiscal year as opposed to the time period covered by the measurement date.
City of Allen, Texas Exhibit A-3
Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios -
Defined Benefit Retiree Healthcare Plan
Last Four Measurement Years
83
2021* 2020* 2019* 2018*
Total OPEB liability
Service cost -$ -$ -$
Interest (on the total OPEB liability) 21,215 29,520 38,887 41,469
Changes in benefit terms - - - -
Difference in expected and actual experience - (5,299) - (91,701)
Change in assumptions - (120,997) 28,859 (30,415)
Benefit payments (183,188) (49,154) (155,176) 29,767
Net change in total OPEB liability (161,973) (145,930) (87,430) (50,880)
Total OPEB liability, beginning of year 621,958 767,888 855,318 906,198
Total OPEB liability, end of year (a)459,985$ 621,958$ 767,888$ 855,318$
Plan fiduciary net position:
Contributions -employer -$ -$ -$ -$
Contributions -employee - - - -
Net investment income 116,827 99,920 66,177 94,484
Benefit payments (222,665) (212,086) (142,438) (252,781)
Administrative expense (8,523) (9,065) (8,119) (10,442)
Net change in plan fiduciary net position (114,361) (121,231) (84,380) (168,739)
Plan fiduciary net position - beginning 1,454,419 1,575,650 1,660,030 1,828,769
Plan fiduciary net position - ending (b) 1,340,058$ 1,454,419$ 1,575,650$ 1,660,030$
Plan Net OPEB liability (asset) - ending (a) - (b)(880,073)$ (832,461)$ (807,762)$ (804,712)$
Plan fiduciary net position as a % of total OPEB liability 291.33% 233.85% 205.19% 194.08%
Covered payroll 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Net OPEB liability (asset) as a % of covered payroll -1.51% -1.54% -1.69% -1.94%
Notes to Schedule:
Benefit changes. There have been no material benefit changes during the valuation periods shown above.
Changes in assumptions . There have been no material benefit changes during the valuation period.
*GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
Measurement Year Ended September 30,
City of Allen, Texas Exhibit A-4
Schedule of OPEB Contributions -
Defined Benefit Retiree Healthcare Plan
Last Four Fiscal Years
84
Fiscal Year Ended September 30,
2021* 2020* 2019* 2018*
Actuarially determined contributions -$ -$ -$ -$
Contributions in relation to actuarially determined contribution - - - -
Contributions deficiency (excess) -$ -$ -$ -$
Covered payroll 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00%
* GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Notes to Schedule of OPEB Contributions
Valuation Date:The Actuarially Determined Contribution is the sum of the current year's
normal cost plus an amount necessary to amortize the unfunded liability
over a closed 19-year period. Actuarial valuations have been performed
biennially as of October 1. The most recent valuation was performed
as of October 1, 2019.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level dollar
Amortization Period N/A
Asset Valuation Method Market value of assets
Inflation 2.5% per annum
Healthcare cost trend rates 11.87% initial, decreasing to an ultimate rate of 4.60% in the year 2041
Investment Rate of Return 4.0%, net of OPEB plan investment expense
Retirement Age Rates are the same as those used for the TMRS retirement plan
Mortality Sex distinct headcount weighted PUB-2010 general safety employees mortality
tables and general retirees table in conjunction with martality improvement
scale MP-2019
City of Allen, Texas Exhibit A-5
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS)
Last Seven Measurement Years
85
2014* 2015* 2016* 2017* 2018* 2019* 2020*
Total pension liability:
Service cost 6,407,942$ 7,377,440$ 7,740,829$ 8,091,540$ 8,503,427$ 9,118,332$ 9,715,534$
Interest (on the total pension liability) 9,749,386 10,562,818 11,165,087 12,232,446 13,379,960 14,492,431 15,828,804
Changes in benefit terms - - - - - - -
Difference in expected and actual experience (1,791,341) 196,259 894,580 1,293,282 (680) 1,564,808 -
Change in assumptions - (231,950) - - - 409,038 (735,396)
Benefit payments, including refunds of
employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230) (6,195,996) (5,974,169)
Net change in total pension liability 11,152,869 14,657,132 15,898,007 17,193,500 16,660,477 19,388,613 18,834,773
Total pension liability, beginning of year 137,679,525 148,832,394 163,489,526 179,387,533 196,581,033 213,241,510 232,630,123
Total pension liability, end of year 148,832,394$ 163,489,526$ 179,387,533$ 196,581,033$ 213,241,510$ 232,630,123$ 251,464,896$
Plan fiduciary net position:
Contributions -employer 5,455,902$ 6,063,051$ 6,473,617$ 7,130,557$ 7,423,200$ 8,050,585$ 8,425,764$
Contributions -employee 2,754,779 3,021,766 3,129,050 3,274,594 3,423,774 3,661,981 3,850,652
Net investment income 6,648,346 188,559 9,039,319 20,569,321 (5,239,779) 27,097,746 15,770,860
Benefit payments, including refunds of
employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230) (6,195,996) (5,974,168)
Administrative expense (69,397) (114,830) (102,024) (106,520) (101,162) (152,888) (101,906)
Other (5,706) (5,671) (5,497) (5,400) (5,285) (4,592) (3,976)
Net change in plan fiduciary net position 11,570,806 5,905,440 14,631,976 26,438,784 278,518 32,456,836 21,967,226
Plan fiduciary net position - beginning 116,193,427 127,764,233 133,669,673 148,301,649 174,740,433 175,018,951 207,475,787
Plan fiduciary net position - ending 127,764,233$ 133,669,673$ 148,301,649$ 174,740,433$ 175,018,951$ 207,475,787$ 229,443,013$
Net pension liability - ending 21,068,161$ 29,819,853$ 31,085,884$ 21,840,600$ 38,222,559$ 25,154,336$ 22,021,883$
Plan fiduciary net position as a % of total pension liability 85.84% 81.76% 82.67% 88.89% 82.08% 89.19% 91.24%
Covered payroll 39,335,988$ 43,142,910$ 44,410,952$ 46,476,391$ 48,814,159$ 52,314,010$ 54,952,114$
Net pension liability as a % of covered payroll 53.56% 69.12% 70.00% 46.99% 78.30% 48.08% 40.07%
* GASB 68 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Measurement Year Ended September 30,
City of Allen, Texas Exhibit A-6
Schedule of Contributions –
Retirement Plan (TMRS)
Last Seven Fiscal Years
86
2015* 2016* 2017* 2018* 2019* 2020* 2021*
Actuarially determined contributions 5,785,220$ 6,028,939$ 6,217,858$ 6,678,295$ 7,228,643$ 7,555,689$ 8,333,070$
Actual contributions (5,797,651) (6,181,797) (6,545,488) (6,927,485) (7,736,900) (7,890,278) (8,739,669)
Contributions deficiency (excess) (12,431)$ (152,858)$ (327,630)$ (249,190)$ (508,257)$ (334,589)$ (406,599)$
Covered payroll 40,985,314$ 43,564,466$ 45,962,313$ 47,782,955$ 51,562,996$ 53,937,361$ 58,367,657$
Ratio of actual contributions to covered payroll amount 14.15% 14.19% 14.24% 14.50% 15.00% 14.63% 14.97%
*GASB 68 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
Notes to Schedule
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 25 years
Asset Valuation Method 10 year smoothed market; 12% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 11.5% including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated
for the 2019 valuation pursuant to an experience study of the period 2014 - 2018
Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected
on a fully generational basis with scale UMP.
Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the
General Employee table used for females. The rates are projected on a fully generational
basis with scale UMP.
Other information:There were no benefit changes during the year.
Actuarial determined contribution rates are calculated as of December 31st each year
and become effective in January 13 months later.
Fiscal Year Ended September 30,
City of Allen, Texas Exhibit A-7
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2021
87
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes, penalties and interest 57,080,458$ 57,082,725$ 56,379,891$ (702,834)$
Municipal sales tax 19,994,676 22,631,828 25,344,374 2,712,546
Franchise taxes 7,047,870 6,962,773 6,669,763 (293,010)
Licenses, permits and fees 3,016,875 3,516,380 3,805,840 289,460
Charges for services 9,885,131 6,723,000 6,521,194 (201,806)
Fines 1,653,590 960,112 1,076,468 116,356
Gifts and contributions 924,683 971,410 1,180,503 209,093
Intergovernmental 254,152 1,012,727 4,181,326 3,168,599
Investment earnings 580,541 676,522 86,598 (589,924)
Miscellaneous 2,157,453 2,149,436 2,323,395 173,959
Total revenues 102,595,429 102,686,913 107,569,352 4,882,439
EXPENDITURES
Current:
General government 20,160,917 20,760,826 20,744,905 15,921
Public safety 48,737,335 50,339,296 49,836,540 502,756
Public works 6,678,564 6,923,852 6,664,683 259,169
Culture and recreation 27,222,151 24,998,348 23,950,848 1,047,500
Community development 3,778,111 3,873,928 3,590,155 283,773
Capital Outlay 33,478 138,164 250,793 (112,629)
Total expenditures 106,610,556 107,034,414 105,037,924 1,996,490
Excess (deficiency) of revenues
over (under) expenditures (4,015,127) (4,347,501) 2,531,428 6,878,929
OTHER FINANCING SOURCES (USES)
Transfers in 5,075,327 5,205,717 5,119,962 (85,755)
Transfers out (1,070,200) (4,112,224) (6,909,368) (2,797,144)
Capital lease obligations - - 100,674 100,674
Sale of capital assets 10,000 12,000 23,451 11,451
Total other financing sources (uses) 4,015,127 1,105,493 (1,665,281) (2,770,774)
NET CHANGE IN FUND BALANCE - (3,242,008) 866,147 4,108,155
FUND BALANCES, BEGINNING OF YEAR 26,898,146 26,898,146 26,898,146 -
FUND BALANCES, END OF YEAR 26,898,146$ 23,656,138$ 27,764,293$ 4,108,155$
Budgeted Amounts
City of Allen, Texas Exhibit A-8
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2021
88
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 837,079$ 4,384,078$ 2,935,303$ (1,448,775)$
Investment earnings 4,812 10,555 - (10,555)
Total revenues 841,891 4,394,633 2,935,303 (1,459,330)
EXPENDITURES
Current:
Public safety 9,974 19,974 19,091 883
Public works 706,987 4,203,717 2,843,298 1,360,419
Culture and recreation 2,350 31,090 30,789 301
Community development 102,757 62,206 62,206 -
Total expenditures 822,068 4,316,987 2,955,384 1,361,603
Excess (deficiency) of revenues
over (under) expenditures 19,823 77,646 (20,081) (97,727)
OTHER FINANCING SOURCES (USES)
Transfers in 3,077 3,077 - (3,077)
Transfers out - (85,755) - 85,755
Total other financing sources (uses) 3,077 (82,678) - 82,678
NET CHANGE IN FUND BALANCE 22,900 (5,032) (20,081) (15,049)
FUND BALANCES, BEGINNING OF YEAR 281,538 281,538 281,538 -
FUND BALANCES, END OF YEAR 304,438$ 276,506$ 261,457$ (15,049)$
Budgeted Amounts
City of Allen, Texas
Notes to Required Supplementary Information
For the Year Ended September 30, 2021
89
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 each 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, Grants 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
adopts an annual budget for those funds for managerial control purposes.
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 also adopts an annual budget for those funds for
managerial control purposes.
7. Budgetary data for the non-major Special Revenue Funds and Capital Projects Funds has not
been presented in the accompanying basic financial statements because 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 and Grants Fund present a comparison of budgetary data to actual results. The General Fund and
Grants Fund utilizes the same basis of accounting for both budgetary purposes and actual results.
90
91
Combining and Budgetary
Comparison Schedules
92
Major Governmental Funds
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.
City of Allen, Texas Exhibit B-1
Budgetary Comparison Schedule
Debt Service Fund
For the Year Ended September 30, 2021
93
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes 13,869,057$ 13,869,057$ 13,629,728$ (239,329)$
Gifts and contributions 115,675 115,675 -
Investment earnings 175,651 58,300 10,144 (48,156)
Total revenues 14,044,708 14,043,032 13,755,547 (287,485)
EXPENDITURES
Principal retirement 10,932,278 11,083,297 11,049,141 34,156
Interest and fiscal charges 3,618,095 4,324,745 3,737,148 587,597
Total expenditures 14,550,373 15,408,042 14,786,289 621,753
Excess (deficiency) of revenues
over (under) expenditures (505,665) (1,365,010) (1,030,742) 334,268
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 6,340,000 6,340,000 -
Premium on issuance of bonds - 855,617 855,617 -
Payment to refund bond escrow agent - (7,105,226) (7,105,226) -
Total other financing sources (uses) - 90,391 90,391 -
NET CHANGE IN FUND BALANCES (505,665) (1,274,619) (940,351) 334,268
FUND BALANCE, BEGINNING OF YEAR 1,858,730 1,858,730 1,858,730 -
FUND BALANCE, END OF YEAR 1,353,065$ 584,111$ 918,379$ 334,268$
Budgeted Amounts
94
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.
Special Revenue Fund – To account for monies that have external legal restrictions associated with their
use.
Gift Permanent Fund – To account for funds received through substantial gifts from the public.
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.
City of Allen, Texas Exhibit B-2
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2021
95
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
ASSETS
Cash and cash equivalents 809,579$ 76,373$ 671,922$ 168,086$ 664,341$ 3,016,171$ 5,406,472$
Investments 1,324,927 98,665 1,099,644 275,084 1,087,237 4,895,187 8,780,744
Accounts receivable 119,905 - 36,071 - - - 155,976
Accrued interest 5,388 401 4,472 1,119 4,422 19,909 35,711
TOTAL ASSETS 2,259,799$ 175,439$ 1,812,109$ 444,289$ 1,756,000$ 7,931,267$ 14,378,903$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 41,026$ 10,815$ 24,688$ 775$ 10,442$ -$ 87,746$
Accrued liabilities 15,461 20,673 - - - - 36,134
TOTAL LIABILITIES 56,487 31,488 24,688 775 10,442 - 123,880
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest 808 - - - - - 808
TOTAL DEFERRED INFLOWS OF RESOURCES 808 - - - - - 808
FUND BALANCES
Restricted
Tourism 2,202,504 - - - - - 2,202,504
Asset forfeiture - 143,951 - - - - 143,951
Park acquisition and development - - - - 1,745,558 - 1,745,558
Tax increment financing agreement - - - - - 7,931,267 7,931,267
Court technology - - 150,492 - - - 150,492
Juvenile case manager - - 6,835 - - - 6,835
PEG fees - - 1,162,109 - - - 1,162,109
Radio system - - 455,114 - - - 455,114
Court security - - 12,871 - - - 12,871
Public safety and library enhancements - - - 443,514 - - 443,514
TOTAL FUND BALANCES 2,202,504 143,951 1,787,421 443,514 1,745,558 7,931,267 14,254,215
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 2,259,799$ 175,439$ 1,812,109$ 444,289$ 1,756,000$ 7,931,267$ 14,378,903$
Special Revenue
City of Allen, Texas Exhibit B-3
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2021
96
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
REVENUES
Ad valorem taxes, penalties and interest -$ -$ -$ -$ -$ 1,816,066$ 1,816,066$
Franchise taxes - - 151,975 - - - 151,975
Municipal sales tax - - - - - 255,571 255,571
Licenses, permits, and fees - - - - 703,695 - 703,695
Fines - - 94,910 - - - 94,910
Hotel / motel taxes 1,337,147 - - - - - 1,337,147
Intergovernmental 37,308 - - - - 147,948 185,256
Investment earnings 9,353 1,472 15,627 6,567 25,199 56,493 114,711
Miscellaneous - 73,367 - - - - 73,367
Total revenues 1,383,808 74,839 262,512 6,567 728,894 2,276,078 4,732,698
EXPENDITURES
General government - - 102,778 - - 840,768 943,546
Public safety - 61,763 - 11,380 - - 73,143
Culture and recreation 1,707,066 - - - - - 1,707,066
Capital outlay - 10,995 28,526 8,995 45,353 - 93,869
Total expenditures 1,707,066 72,758 131,304 20,375 45,353 840,768 2,817,624
Excess (deficiency) of revenues
over (under) expenditures (323,258) 2,081 131,208 (13,808) 683,541 1,435,310 1,915,074
OTHER FINANCING SOURCES (USES)
Transfers out (2,453) - (56,835) - - - (59,288)
Sale of capital assets - 14,564 - - - - 14,564
Total other financing sources (uses)(2,453) 14,564 (56,835) - - - (44,724)
NET CHANGE IN FUND BALANCES (325,711) 16,645 74,373 (13,808) 683,541 1,435,310 1,870,350
FUND BALANCES, BEGINNING OF YEAR 2,528,215 127,306 1,713,048 457,322 1,062,017 6,495,957 12,383,865
FUND BALANCES, END OF YEAR 2,202,504$ 143,951$ 1,787,421$ 443,514$ 1,745,558$ 7,931,267$ 14,254,215$
SPECIAL REVENUE
97
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.
Facility Maintenance Fund - The Facility Maintenance Fund accumulates resources to address large
repairs and aging facility infrastructure. The accumulation of resources will help address major building
repairs and prevent building deterioration.
City of Allen, Texas Exhibit C-1
Combining Statement of Net Position
Internal Service Funds
September 30, 2021
98
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 7,154,654$ 4,341,170$ 545,751 12,041,575$
Investments 11,705,002 6,482,833 893,156 19,080,991
Accounts receivable - 30,514 - 30,514
Accrued interest receivable 47,605 26,365 3,632 77,602
Total current assets 18,907,261 10,880,882 1,442,539 31,230,682
CAPITAL ASSETS
Machinery and equipment 5,801,606 - - 5,801,606
Vehicles 18,261,748 - - 18,261,748
Accumulated depreciation (16,139,356) - - (16,139,356)
Capital assets,
net of accumulated depreciation 7,923,998 - - 7,923,998
TOTAL ASSETS 26,831,259 10,880,882 1,442,539 39,154,680
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable 39,108 75,148 172,626 286,882
Accrued liabilities - 74 - 74
Incurred but not reported claims - 1,066,722 - 1,066,722
TOTAL LIABILITIES 39,108 1,141,944 172,626 1,353,678
NET POSITION
Net investment in capital assets 7,923,998 - - 7,923,998
Unrestricted 18,868,153 9,738,938 1,269,913 29,877,004
TOTAL NET POSITION 26,792,151$ 9,738,938$ 1,269,913$ 37,801,002$
City of Allen, Texas Exhibit C-2
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2021
99
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
OPERATING REVENUES
Charges for services 3,749,984$ 13,083,287$ -$ 16,833,271$
Other income 22,527 457,208 490,231 969,966
Total operating revenues 3,772,511 13,540,495 490,231 17,803,237
OPERATING EXPENSES
Personal services - 455,630 - 455,630
Contractual services - 13,014,843 - 13,014,843
Maintenance - - 1,292,127 1,292,127
Supplies 8,410 - - 8,410
Depreciation 2,492,198 - - 2,492,198
Total operating expenses 2,500,608 13,470,473 1,292,127 17,263,208
OPERATING INCOME (LOSS)1,271,903 70,022 (801,896) 540,029
NON-OPERATING REVENUES
Investment earnings 167,021 68,285 11,798 247,104
Gain on disposal of capital assets 287,160 - - 287,160
Total non-operating revenues 454,181 68,285 11,798 534,264
INCOME (LOSS) BEFORE TRANSFERS 1,726,084 138,307 (790,098) 1,074,293
TRANSFERS
Transfers in 230,079 758,263 320,170 1,308,512
Total transfers 230,079 758,263 320,170 1,308,512
CHANGE IN FUND NET POSITION 1,956,163 896,570 (469,928) 2,382,805
NET POSITION, BEGINNING OF YEAR 24,835,988 8,842,368 1,739,841 35,418,197
NET POSITION, END OF YEAR 26,792,151$ 9,738,938$ 1,269,913$ 37,801,002$
City of Allen, Texas Exhibit C-3
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2021
100
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds 3,772,511$ 13,532,922$ -$ 17,305,433$
Cash paid to employees for services - (442,414) - (442,414)
Cash paid for goods and services (294,927) (4,536,791) (675,369) (5,507,087)
Cash paid for claims - (8,420,561) - (8,420,561)
Net cash provided by (used in) operating activities 3,477,584 133,156 (675,369) 2,935,371
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in 230,079 758,263 320,170 1,308,512
Transfers out - - - -
Net cash provided by non-capital financing activities 230,079 758,263 320,170 1,308,512
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,469,382) - - (1,469,382)
Proceeds from sale of capital assets 311,959 - - 311,959
Net cash used in capital and related financing activities (1,157,423) - - (1,157,423)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities (3,599,376) (344,936) (135,079) (4,079,391)
Interest on investments 171,532 80,470 14,918 266,920
Net cash used in investing activities (3,427,844) (264,466) (120,161) (3,812,471)
NET CHANGE IN CASH AND CASH EQUIVALENTS (877,604) 626,953 (475,360) (726,011)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 8,032,258 3,714,217 1,021,111 12,767,586
CASH AND CASH EQUIVALENTS, END OF YEAR 7,154,654$ 4,341,170$ 545,751$ 12,041,575$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income (loss) 1,271,903$ 70,022$ (801,896)$ 540,029$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 2,492,198 - - 2,492,198
Change in assets and liabilities:
Accounts receivable - (7,573) - (7,573)
Prepaids - 251,600 - 251,600
Liabilities (286,517) (180,893) 126,527 (340,883)
Total adjustments 2,205,681 63,134 126,527 2,395,342
Net cash provided by (used in) operating activities 3,477,584$ 133,156$ (675,369)$ 2,935,371$
NON-CASH INVESTING ACTIVITIES
Change in the fair value of investments (116,626)$ (88,667)$ (10,951)$ (216,244)$
101
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 Exhibit D-1
Balance Sheet
Allen Economic Development Corporation
September 30, 2021
102
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5,664,150$
Investments 8,214,700
Sales tax receivable 2,174,355
Accrued interest receivable 33,409
TOTAL ASSETS 16,086,614$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 67,670$
Accrued and other liabilities 623,421
TOTAL LIABILITIES 691,091
FUND BALANCE
Restricted
Debt service 644,683
Unassigned 14,750,840
TOTAL FUND BALANCE 15,395,523
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 16,086,614$
City of Allen, Texas Exhibit D-2
Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position
Allen Economic Development Corporation
September 30, 2021
103
Total fund balance of governmental fund balance sheet 15,395,523$
Amounts reported for governmental activities in the statement of net position
are different because:
Deferred charges on refunding represent a consumption of net position that applies
to future periods and, therefore, will not be recognized as an outflow of resources
until then. The amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt. 321,470
Interest payable on long-term debt does not require current financial resources.
Accordingly, interest payable is not reported as a liability on the governmental
funds balance sheet.(39,533)
Long-term liabilities, including bonds payable are not due and payable in the
current period and, accordingly, are not reported in the fund financial statements. (12,709,494)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and, accordingly, are not reported on the
governmental funds balance sheet. 19,677,641
Net position of governmental activities 22,645,607$
City of Allen, Texas Exhibit D-3
Statement of Revenues, Expenditures,
and Change in Fund Balance
Allen Economic Development Corporation
For the Year Ended September 30, 2021
104
REVENUES
Sales and other taxes 12,567,041$
Investment earnings 140,326
Miscellaneous 14,579
Total rev enues 12,721,946
EXPENDITURES
Current:
Economic development 7,700,090
Capital projects:
Economic development 684,018
Debt service:
Principal retirement 1,858,453
Interest and fiscal charges 542,803
Total expenditures 10,785,364
Excess of revenues over expenditures 1,936,582
OTHER FINANCING SOURCES
Issuance of debt 2,295,000
Total other financing sources 2,295,000
NET CHANGE IN FUND BALANCE 4,231,582
FUND BALANCE, BEGINNING OF YEAR 11,163,941
FUND BALANCE, END OF YEAR 15,395,523$
City of Allen, Texas Exhibit D-4
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities
Allen Economic Development Corporation
For the Year Ended September 30, 2021
105
Net change in fund balance - total governmental fund 4,231,582$
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 are allocated over their estimated
useful lives and reported as depreciation expense. 684,018
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Accordingly, depreciation
expense is not reported as expenditures in the governmental funds. (50,205)
The payment of the principal of long-term debt consumes the current financial resources
of governmental funds. Also, governmental funds report the effect of premiums, discounts,
and similar items when debt is first issued. However, these amounts are amortized
in the government-wide financial statements:
Bonds issued (2,295,000)$
Bond principal retirement 1,205,000
Note principal retirement 653,453
Amortization of bond premiums 132,358
Amortization of deferred charges on refunding (54,333) (358,522)
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. 4,383
Change in net position of governmental activities 4,511,256$
City of Allen, Texas Exhibit D-5
Balance Sheet
Allen Community Development Corporation
September 30, 2021
106
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9,660,181$
Investments 15,469,321
Sales tax receivable 2,174,355
Accrued interest receivable 62,913
TOTAL ASSETS 27,366,770$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 197,758$
Retainage payable 77,122
TOTAL LIABILITIES 274,880
FUND BALANCES
Restricted
Debt service 207,883
Unassigned 26,884,007
TOTAL FUND BALANCE 27,091,890
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 27,366,770$
City of Allen, Texas Exhibit D-6
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
Allen Community Development Corporation
September 30, 2021
107
Total governmental fund balance 27,091,890$
Amounts reported for governmental activities in the statement of net position
are different because:
Deferred charges on refunding represent a consumption of net position that applies
to future periods and, therefore, will not be recognized as an outflow of resources
until then. The amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt. 324,053
Interest payable on long-term debt does not require the use of current financial
resources, and, accordingly, is not reported as a liability on the governmental
fund balance sheet.(49,645)
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. (22,530,000)
Capital assets (net of accumulated depreciation) used in governmental activities
are not current financial resources and, therefore, are not reported on the
governmental fund balance sheet. 46,806,105
Net position of governmental activities 51,642,403$
City of Allen, Texas Exhibit D-7
Statement of Revenues, Expenditures,
and Change in Fund Balance
Allen Community Development Corporation
For the Year Ended September 30, 2021
108
REVENUES
Sales and other taxes 12,567,041$
Investment earnings 212,370
Total rev enues 12,779,411
EXPENDITURES
Current:
Community development 1,706,741
Capital projects:
Community development 1,898,344
Debt service:
Principal retirement 1,785,000
Interest and fiscal charges 627,616
Total expenditures 6,017,701
Excess of revenues over expenditures 6,761,710
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 10,050
Total other financing sources (uses)10,050
NET CHANGE IN FUND BALANCE 6,771,760
FUND BALANCE, BEGINNING OF YEAR 20,320,130
FUND BALANCE, END OF YEAR 27,091,890$
City of Allen, Texas Exhibit D-8
Reconciliation of the Governmental Fund Statement
of Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities
Allen Community Development Corporation
For the Year Ended September 30, 2021
109
Net change in fund balance - total governmental fund 6,771,760$
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 are allocated over their estimated
useful lives and reported as depreciation expense. 1,898,344
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. However, these amounts are amortized in the
government-wide financial statements. (81,013)
Current year changes in accrued interest payable do not require the use of current
financial resources and, accordingly, are not reported as expenditures in
governmental funds.2,594
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Accordingly, depreciation
expense is not reported as expenditures in the governmental funds. (3,492,622)
Repayment of the principal on long-term debt consumes the current financial
resources of governmental funds. However, these transactions have no
effect on net position. 1,785,000
Change in net position of governmental activities 6,884,063$
110
111
Statistical Section
(Unaudited)
112
113
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.
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.
Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual
financial reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003: tables
presenting government-wide information include information beginning in that year.
City of Allen, Texas Table 1 Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 114 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Governmental activitiesNet investment in capital assets 373,586,071$ 369,314,466$ 363,168,607$ 355,756,224$ 364,667,251$ 366,322,218$ 379,153,944$ 391,261,029$ 392,368,425$ 388,795,081$ Restricted 21,042,413 26,511,231 26,066,205 31,476,026 32,485,173 38,303,226 39,588,223 44,872,796 13,891,413 14,807,800 Unrestricted 8,054,347 8,960,703 12,436,903 16,596,955 14,435,604 15,902,576 15,312,432 20,238,419 57,821,649 72,520,903 Total governmental net position 402,682,831$ 404,786,400$ 401,671,715$ 403,829,205$ 411,588,028$ 420,528,020$ 434,054,599$ 456,372,244$ 464,081,487$ 476,123,784$ Business-type activitiesNet investment in capital assets 99,960,794$ 99,544,466$ 100,991,443$ 102,340,588$ 106,174,191$ 107,926,811$ 103,762,241$ 113,459,625$ 113,355,391$ 113,396,556$ Restricted for debt service 428,646 364,510 26,859 344,421 216,664 195,485 46,350 571,053 513,520 764,763 Unrestricted 31,346,727 33,860,716 32,720,930 34,165,174 33,592,809 31,920,455 43,785,615 40,240,619 50,803,699 56,890,299 Total business-type net position 131,736,167$ 133,769,692$ 133,739,232$ 136,850,183$ 139,983,664$ 140,042,751$ 147,594,206$ 154,271,297$ 164,672,610$ 171,051,618$ Primary governmentNet investment in capital assets 473,546,865$ 468,858,932$ 464,160,050$ 458,096,812$ 470,841,442$ 474,249,029$ 482,916,185$ 504,720,654$ 505,723,816$ 502,191,637$ Restricted for debt service 21,471,059 26,875,741 26,093,064 31,820,447 32,701,837 38,498,711 39,634,573 45,443,849 14,404,933 15,572,563 Unrestricted 39,401,074 42,821,419 45,157,833 50,762,129 48,028,413 47,823,031 59,098,047 60,479,038 108,625,348 129,411,202 Total primary government net position 534,418,998$ 538,556,092$ 535,410,947$ 540,679,388$ 551,571,692$ 560,570,771$ 581,648,805$ 610,643,541$ 628,754,097$ 647,175,402$ Source:City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 2 Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 115 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021ExpensesGovernmental activities:General government 18,347,067$ 22,271,050$ 24,940,939$ 24,464,246$ 25,304,811$ 28,251,550$ 26,764,210$ 21,238,061$ 24,937,087$ 22,940,360$ Public safety 28,675,146 28,935,911 30,408,487 31,607,444 35,199,937 39,624,788 39,213,768 44,993,635 47,369,212 49,532,988 Public works 17,681,730 17,807,948 18,252,130 18,349,569 19,083,214 20,209,785 24,161,991 27,039,953 22,393,268 19,661,514 Culture and recreation 32,112,451 29,983,224 30,987,689 32,407,934 32,851,598 28,968,534 33,791,438 33,287,645 29,015,632 29,359,242 Community development 2,527,518 2,230,968 2,689,517 2,861,704 3,251,555 3,007,047 3,079,242 3,160,050 5,238,233 6,330,539 Interest on long-term debt 4,539,622 4,067,303 3,955,305 3,921,989 3,356,234 2,980,513 2,920,824 2,888,831 2,745,698 3,103,192 Total governmental activities expenses 103,883,534 105,296,404 111,234,067 113,612,886 119,047,349 123,042,217 129,931,473 132,608,175 131,699,130 130,927,835 Business-type activities:Water and sewer 26,359,698 29,160,281 30,081,379 32,304,628 35,604,182 39,527,816 41,134,685 44,511,123 45,524,999 46,442,937 Solid waste 5,429,049 5,495,654 5,383,215 5,560,294 5,870,269 6,078,853 6,223,788 6,248,035 6,525,391 6,824,441 Drainage 882,726 910,179 951,973 914,322 1,146,138 1,193,057 1,260,262 1,396,935 1,555,570 1,497,014 Golf Course 1,179,015 2,483,467 2,839,098 2,911,476 3,089,041 3,135,144 3,397,180 3,332,927 3,166,856 3,557,076 Total business-type activities expenses 33,850,488 38,049,581 39,255,665 41,690,720 45,709,630 49,934,870 52,015,915 55,489,020 56,772,816 58,321,468 Total primary government expenses 137,734,022$ 143,345,985$ 150,489,732$ 155,303,606$ 164,756,979$ 172,977,087$ 181,947,388$ 188,097,195$ 188,471,946$ 189,249,303$ Program RevenuesGovernmental activities:Charges for Services:General government 712,432$ 675,196$ 823,801$ 705,064$ 467,786$ 497,243$ 525,542$ 500,122$ 509,691$ 598,846$ Public safety 1,577,643 1,541,985 1,568,294 1,647,407 1,801,984 2,712,076 2,171,332 1,954,810 2,189,114 2,063,311 Public works 137,357 196,685 154,418 233,808 210,687 293,559 1,333,506 1,485,962 725,209 587,112 Culture and recreation 8,019,145 8,443,286 8,425,791 9,177,211 10,289,465 8,747,206 9,803,084 9,744,309 3,793,429 4,649,476 Community development 1,265,485 2,220,438 3,103,410 3,021,708 3,216,799 4,266,140 4,025,326 4,798,471 2,530,977 4,024,897 Operating grants and contributions 1,504,355 2,067,482 1,121,356 1,749,567 1,557,260 2,443,054 2,423,768 2,056,001 3,427,631 4,874,743 Capital grants and contributions 26,626,381 14,737,780 9,571,206 10,552,610 16,039,869 15,327,094 18,942,856 19,888,044 10,639,664 8,535,198 Total governmental activities program revenues 39,842,798 29,882,852 24,768,276 27,087,375 33,583,850 34,286,372 39,225,414 40,427,719 23,815,715 25,333,583 Business-type activities:Charges for services:Water and sewer 28,693,707 30,808,084 28,955,282 34,135,714 36,335,868 37,163,882 42,453,681 43,103,920 49,461,636 49,099,338 Solid waste 6,040,165 6,114,951 6,309,729 6,474,386 6,687,182 6,735,559 6,933,356 7,006,423 7,116,831 7,039,328 Drainage 1,338,680 1,352,671 1,378,662 1,465,044 1,519,405 1,648,681 1,907,407 1,763,694 2,162,770 1,826,950 Golf Course 59,054 1,924,706 2,537,564 2,361,384 2,705,799 2,959,361 2,810,424 3,138,144 3,199,136 4,196,161 Operating grants and contributions 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - Capital grants and contributions 7,151,043 3,788,300 3,685,960 4,416,642 6,172,301 5,622,911 9,734,528 10,175,397 8,332,962 5,695,888 Total business-type activities program revenues 44,282,649 44,988,712 43,867,197 49,853,170 53,420,555 54,130,394 63,839,396 65,187,578 70,273,335 67,857,665 Total primary government program revenues 84,125,447$ 74,871,564$ 68,635,473$ 76,940,545$ 87,004,405$ 88,416,766$ 103,064,810$ 105,615,297$ 94,089,050$ 93,191,248$ (continued) (continued)Fiscal Year Ended September 30
City of Allen, Texas Table 2 Changes in Net Position Last Ten Fiscal Years (Continued) (Accrual Basis of Accounting) (Unaudited) 116 Net (Expenses) RevenueGovernmental activities (64,040,736)$ (75,413,552)$ (86,465,791)$ (86,525,511)$ (85,463,499)$ (88,755,845)$ (90,706,059)$ (92,180,456)$ (107,883,415)$ (105,594,252)$ Business-type activities 10,432,161 6,939,131 4,611,532 8,162,450 7,710,925 4,195,524 11,823,481 9,698,558 13,500,519 9,536,197 Total primary government net expenses (53,608,575)$ (68,474,421)$ (81,854,259)$ (78,363,061)$ (77,752,574)$ (84,560,321)$ (78,882,578)$ (82,481,898)$ (94,382,896)$ (96,058,055)$ General Revenuesand Other Changes in Net AssetsGovernmental activities:Taxes:Property taxes 42,042,753$ 44,474,745$ 46,232,565$ 50,143,986$ 54,102,952$ 58,816,876$ 63,929,379$ 68,865,078$ 70,917,335$ 71,946,802$ Sales taxes 15,038,519 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,505 21,648,401 21,686,335 25,599,945 Franchise taxes 6,150,419 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 Hotel / Motel taxes 1,229,996 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,759,159 1,156,398 1,337,147 Other taxes 1,622,633 1,389,503 2,151,232 1,851,397 1,621,012 1,912,559 1,704,227 2,204,220 1,195,296 1,171,378 Investment earnings 538,863 177,495 416,828 689,736 735,832 837,577 944,196 4,048,112 4,246,550 1,118,970 Gain on disposition of capital assets 40,509 92,401 - - - 263,627 446,117 - 144,347 322,084 Miscellaneous 1,802,747 2,079,082 2,445,491 2,650,103 3,794,277 2,703,964 3,592,229 3,460,124 4,188,530 5,311,149 Transfers 5,377,207 5,361,830 5,627,137 6,249,489 4,790,072 4,610,889 4,398,244 4,702,914 4,603,154 4,007,336 Total governmental activities 73,843,646 77,517,121 83,351,106 88,683,001 93,222,322 97,695,837 105,209,055 114,498,101 115,592,658 117,636,549 Business-type activities:Investment earnings 197,613 70,382 134,988 194,051 197,125 199,508 210,045 1,284,728 1,140,957 398,387 Gain on disposition of capital assets - - - - 15,503 - 13,228 - 9,713 7,585 Miscellaneous 411,268 385,842 850,157 1,003,939 - 274,944 21,030 396,719 353,278 444,175 Transfers (5,377,207) (5,361,830) (5,627,137) (6,249,489) (4,790,072) (4,610,889) (4,398,244) (4,702,914) (4,603,154) (4,007,336) Total business-type activities (4,768,326) (4,905,606) (4,641,992) (5,051,499) (4,577,444) (4,136,437) (4,153,941) (3,021,467) (3,099,206) (3,157,189) Total primary government 69,075,320$ 72,611,515$ 78,709,114$ 83,631,502$ 88,644,878$ 93,559,400$ 101,055,114$ 111,476,634$ 112,493,452$ 114,479,360$ Change in Net PositionGovernmental activities 9,802,910$ 2,103,569$ (3,114,685)$ 2,157,490$ 7,758,823$ 8,939,992$ 14,502,996$ 22,317,645$ 7,709,243$ 12,042,297$ Business-type activities 5,663,835 2,033,525 (30,460) 3,110,951 3,133,481 59,087 7,669,540 6,677,091 10,401,313 6,379,008 Total primary government 15,466,745$ 4,137,094$ (3,145,145)$ 5,268,441$ 10,892,304$ 8,999,079$ 22,172,536$ 28,994,736$ 18,110,556$ 18,421,305$ Source:City of Allen Annual Comprehensive Financial Reports
City of Allen, Texas Table 3 Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (Unaudited) 117 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021General FundNonspendable 2,081$ 2,098$ 4,767$ 1,486$ 2,129$ 126,833$ 25,747$ 209,323$ 8,777$ 145,700$ Restricted 513,801 726,953 752,238 779,185 907,908 58,910 59,386 61,304 63,185 63,627 Assigned 133,478 851,564 748,200 921,030 - 2,000,000 - - - - Unassigned 15,857,642 14,672,989 17,368,187 18,407,873 20,911,943 19,684,053 23,626,108 25,744,069 26,826,184 27,554,966 Total General Fund 16,507,002$ 16,253,604$ 18,873,392$ 20,109,574$ 21,821,980$ 21,869,796$ 23,711,241$ 26,014,696$ 26,898,146$ 27,764,293$ All Other Governmental FundsNonspendable -$ -$ -$ -$ -$ -$ -$ 751$ 751$ 751$ Restricted 26,297,587 34,132,037 42,149,113 51,398,430 46,610,702 57,540,668 27,922,044 31,444,917 46,411,439 72,968,241 Assigned - - - - - - 28,349,191 32,023,933 34,703,219 42,842,631 Unassigned (deficit) - - - - - - (4,428) - - Total all other governmental funds 26,297,587$ 34,132,037$ 42,149,113$ 51,398,430$ 46,610,702$ 57,540,668$ 56,266,807$ 63,469,601$ 81,115,409$ 115,811,623$ Source:City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 4 Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (Unaudited) 118 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021REVENUESAd valorem taxes 42,045,252$ 44,725,261$ 46,142,222$ 50,177,840$ 54,104,132$ 58,875,936$ 63,775,055$ 68,884,826$ 71,018,733$ 71,825,685$ Municipal sales tax 15,038,519 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,504 21,648,401 21,686,335 25,599,945 Franchise taxes 6,150,419 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 Licenses, permits and fees 1,215,677 2,294,955 2,915,533 3,134,551 3,064,580 4,450,639 4,494,361 5,279,425 3,341,367 4,509,535 Charges for services 10,051,684 10,623,970 10,580,553 11,734,344 13,002,770 11,664,328 13,442,785 13,586,474 6,845,248 8,061,820 Fines 1,648,194 1,402,725 2,160,168 1,805,230 1,579,628 1,851,735 1,710,354 2,214,571 1,195,296 1,171,378 Gifts and contributions 1,443,766 1,322,228 819,408 1,012,103 832,211 712,437 852,322 1,585,613 821,914 1,296,178 Hotel / motel fees 1,229,996 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,758,858 1,156,398 1,337,147 Intergovernmental 4,637,343 5,267,026 1,704,404 3,570,737 2,645,089 1,927,567 3,555,241 1,258,398 4,210,605 9,506,946 Investment earnings 440,065 144,604 344,386 577,014 627,760 643,928 851,954 3,280,340 3,648,787 877,724 Miscellaneous 2,241,166 2,671,410 3,394,197 3,420,441 3,711,870 3,428,366 3,276,677 3,106,994 3,896,892 4,725,411 Total revenues 86,142,081 92,394,244 94,538,724 102,530,550 107,746,217 112,105,281 122,153,411 130,413,993 125,276,288 135,733,507 EXPENDITURESGeneral government 17,145,603 21,785,677 23,544,055 23,996,598 24,101,637 27,182,391 26,141,256 19,902,542 23,770,757 22,222,641Public safety 27,291,201 28,317,603 29,214,552 30,731,310 32,966,265 37,294,550 38,524,578 43,283,984 45,372,064 49,928,774Public works 4,104,118 4,055,500 4,077,961 4,888,798 4,865,431 5,428,996 8,899,247 11,194,393 10,342,827 11,430,042Culture and recreation 22,460,071 20,864,140 21,435,581 22,540,516 24,287,382 23,745,884 29,714,212 30,044,660 24,910,955 25,883,652Community development 2,406,485 2,211,253 2,631,289 2,880,880 2,833,011 2,951,864 3,076,260 3,161,679 3,254,786 3,590,155Capital outlay 7,972,159 6,123,786 6,573,002 6,555,445 15,408,293 7,053,863 13,114,988 11,921,047 9,458,085 8,483,652Debt servicePrincipal retirement 7,634,130 7,964,914 8,364,986 9,322,537 9,135,000 10,445,000 11,181,377 11,382,162 11,094,986 11,049,141Interest and fiscal charges 4,562,965 3,955,639 3,882,394 3,931,548 3,801,812 3,378,943 3,461,414 3,407,768 3,414,094 3,737,148Total expenditures 93,576,732 95,278,512 99,723,820 104,847,632 117,398,831 117,481,491 134,113,332 134,298,235 131,618,554 136,325,205 Excess (deficiency) of revenuesover (under) expenditures (7,434,651) (2,884,268) (5,185,096) (2,317,082) (9,652,614) (5,376,210) (11,959,921) (3,884,242) (6,342,266) (591,698) OTHER FINANCING SOURCES (USES)Refunding bonds issued 13,940,000 - - 32,245,000 6,910,000 - 1,660,000 7,730,000 6,340,000 Premium on bonds issued 2,296,042 350,071 432,879 3,772,133 1,039,610 955,225 978,386 9,570,000 4,034,604 6,881,772 Issuance of debt - 5,065,000 10,595,000 - 1,940,000 11,845,000 8,355,000 894,793 18,830,000 27,200,000 Capital lease obligations 29,905 - - - 1,700,000 - 75,622 (1,675,000) - 100,674 Payment to refund bond escrow agent (16,050,003) - - (28,097,931) (7,789,058) - - 33,908 (8,595,000) (7,105,226) Transfer in 7,074,436 9,598,187 9,257,105 9,711,565 9,137,082 9,805,859 9,682,182 11,412,228 7,388,801 10,180,045Transfer out (3,599,726) (4,571,226) (4,484,282) (4,847,771) (6,384,490) (6,295,989) (6,639,012) (8,554,069) (4,554,357) (7,481,221)Proceeds from sale of capital assets 9,622 23,288 21,258 19,585 24,148 43,897 85,327 38,631 37,476 38,015Total other financing sources 3,700,276 10,465,320 15,821,960 12,802,581 6,577,292 16,353,992 12,537,505 13,380,491 24,871,524 36,154,059 NET CHANGE IN FUND BALANCES (3,734,375)$ 7,581,052$ 10,636,864$ 10,485,499$ (3,075,322)$ 10,977,782$ 577,584$ 9,496,249$ 18,529,258$ 35,562,361$ Debt service as a percentageof noncapital expenditures 14.3% 13.4% 13.2% 13.6% 12.7% 12.5% 12.1% 12.1% 11.9% 11.6%Source: City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 119 Fiscal Year Ended September 30, Real Property Personal PropertyLess: Tax-Exempt PropertyTotal Taxable Assessed ValueTotal Direct Tax Rate2012 7,721,491,897 496,008,713 615,320,140 7,602,180,470 0.55300 2013 7,810,983,131 833,800,673 643,485,592 8,001,298,212 0.55200 2014 8,197,352,931 789,414,854 613,723,945 8,373,043,840 0.55000 2015 9,347,795,862 885,946,440 1,071,401,599 9,162,340,703 0.54000 2016 10,892,510,607 949,453,680 1,665,547,504 10,176,416,783 0.53000 2017 12,247,829,044 1,019,719,862 1,799,062,766 11,468,486,140 0.52000 2018 13,546,087,428 1,031,270,509 1,878,212,643 12,699,145,294 0.51000 2019 14,696,634,742 1,158,167,450 1,903,666,393 13,951,135,799 0.49800 2020 15,295,656,455 1,233,701,862 2,005,309,071 14,524,049,246 0.48900 2021 15,713,691,463 1,149,504,775 1,960,955,511 14,902,240,727 0.48500 Sources:City of Allen Budget DocumentsCollin Central Appraisal DistrictEstimated Market Value
City of Allen, Texas Table 6 Direct and Overlapping Property Tax Rates (Per $100 Of Assessed Value) Last Ten Fiscal Years (Unaudited) 120 Fiscal Year Ended September 30Fiscal Year Ended September 30,Operating/General RateGeneral Obligation Debt Service Total DirectAllen Independent School DistrictPlano Independent School DistrictMcKinney Independent School DistrictCollin CountyCollin County Community College District2012 0.40533 0.14767 0.55300 1.67000 1.37340 1.54000 0.24000 0.08630 2013 0.40506 0.14694 0.55200 1.67000 1.37340 1.54000 0.24000 0.08630 2014 0.40912 0.14088 0.55000 1.67000 1.45300 1.67000 0.23750 0.08364 2015 0.39836 0.14164 0.54000 1.64000 1.44800 1.67000 0.23500 0.08196 2016 0.40627 0.12373 0.53000 1.61000 1.43900 1.67000 0.22500 0.08196 2017 0.39627 0.12373 0.52000 1.59000 1.43900 1.62000 0.20840 0.08122 2018 0.39274 0.11726 0.51000 1.57000 1.43900 1.62000 0.19225 0.07981 2019 0.39346 0.10454 0.49800 1.55000 1.43900 1.59000 0.18079 0.08122 2020 0.38704 0.10196 0.48900 1.45890 1.33735 1.48835 0.17495 0.08122 2021 0.39052 0.09448 0.48500 1.43250 1.32375 1.47470 0.17253 0.08122 Source: Collin Central Appraisal DistrictCity Direct Rates Overlapping Rates
City of Allen, Texas Table 7 Principal Property Taxpayers Current Year and Nine Years Ago (Unaudited) 121 TaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValueaTaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValuebVAA Improvements LLC 160,680,000$ 1.08% Village At Allen LP 139,937,198$ 1.84%Watters Creek Owner LLC 131,784,891 0.88% Coventry II DDR/Trademark Montgomery Farm 121,100,000 1.59%Allen Premium Outlets LP 125,013,767 0.84% Chelsea Allen Development LP 69,572,529 0.92%AT&T Mobility LLC 91,336,469 0.61% AT&T Mobility LLC 68,724,058 0.90%Cisco Systems Inc 86,864,604 0.58% AT&T Services Inc 35,779,841 0.47%Creekside Acquisition LP 72,386,126 0.49% Oncor Electric Delivery Company 35,050,834 0.46%C1-Allen LLC 64,602,702 0.43% Cisco Systems Inc 34,775,058 0.46%AT&T Services Inc 64,451,682 0.43% Lexington Allen LP 31,100,000 0.41%DD Andrews Parkway 10.495 LLC 63,427,998 0.43% BH Benton Pointe Apartments LLC 30,366,237 0.40%Benton Pointe LP 62,985,867 0.42% BH Settler's Gate Apartments LP 28,601,556 0.38%Total 923,534,106$ 6.20% Total 595,007,311$ 7.84%Total Assessed Valuation 14,902,240,727$ 100.00% Total Assessed Valuation 7,602,180,470$ 100.00%Source: Collin Central Appraisal DistrictNotes: aTaxpayers are assessed on January 1, 2020 (2020 tax year) for the 2021 fiscal year. bTaxpayers are assessed on January 1, 2011 (2011 tax year) for the 2012 fiscal year.20212012
City of Allen, Texas Table 8 Ad Valorem Tax Levies and Collections Last Ten Fiscal Years (Unaudited) 122 Fiscal Year Ended September 30,Total Tax Lev y for Fiscal Year AmountPercentage of LevyCollections in Subsequent Years AmountPercentage of Levy2012 42,945,211$ 41,817,303$ 97.37 %515,154$ 42,332,458$ 98.57 2013 44,390,125 44,005,302 99.13 %364,253 44,369,555 99.95 2014 46,466,114 45,924,321 98.83 %525,339 46,449,660 99.96 2015 49,958,933 49,472,535 99.03 %471,929 49,944,464 99.97 2016 54,342,759 53,821,573 99.04 %508,664 54,330,237 99.98 2017 58,617,868 58,282,589 99.43 %335,279 58,617,868 100.00 2018 63,184,129 62,950,713 99.63 %198,737 63,149,451 99.95 2019 67,684,728 67,511,154 99.74 %28,986 67,540,140 99.79 2020 70,617,878 70,550,256 99.90 %(255,760) 70,294,496 99.54 202171,909,214 71,715,864 99.73 %- 71,715,864 99.73 Source: Collin County Tax AssessorCollected within the Fiscal Year of the Levy Total Collections to Date
City of Allen, Texas Table 9 Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 123 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax NotesOther ObligationsWater and Sewer Revenue BondsOther ObligationsPercentage of Personal IncomeaPer Capitaa2012 99,365,000$ 1,060,000$ -$ 1,957,998$ 10,535,000$ (74,053)$ 3.42% 1,281 2013 96,735,000 800,000 - 2,433,439 9,370,000 456,061 2.96% 1,224 2014 99,245,000 530,000 - 4,615,649 8,015,000 691,493 3.19% 1,241 2015 95,690,000 490,000 - 7,258,749 6,735,000 596,700 2.81% 1,188 2016 93,920,844 450,000 1,940,000 1,700,000 5,760,000 448,387 2.73% 1,102 2017 96,184,995 405,000 1,255,000 1,250,000 4,760,000 282,326 2.60% 1,043 2018 94,460,400 - 635,000 864,245 13,850,800 719,391 2.34% 1,077 2019 91,466,739 - 2,600,000 75,991 16,637,388 569,182 2.37% 1,039 2020 98,980,840 - 4,920,000 46,005 21,581,071 423,155 2.58% 1,149 2021 92,417,888 28,278,061 3,580,000 102,538 32,435,106 332,535 3.26% 1,452 Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements.aSee Table 13 for personal income and population data.Governmental Activities Business-Type Activities
City of Allen, Texas Table 10 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) 124 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax Notes TotalPercentage of Actual Taxable Value of PropertyaPer Capitab2012 99,365,000$ 1,060,000$ -$ 100,425,000$ 1.32% 1,140$ 2013 96,735,000 800,000 - 97,535,000 1.22% 1,087 2014 99,245,000 530,000 - 99,775,000 1.19% 1,095 2015 95,690,000 490,000 - 96,180,000 1.05% 1,031 2016 93,920,844 450,000 - 94,370,844 0.93% 998 2017 96,184,995 405,000 1,255,000 97,844,995 0.85% 980 2018 94,460,400 - 635,000 95,095,400 0.75% 927 2019 91,466,739 - 2,600,000 94,066,739 0.67% 878 2020 98,980,840 - 4,920,000 103,900,840 0.72% 948 2021 92,417,888 28,278,061 3,580,000 124,275,949 0.83% 1,149 Notes:Details regarding the city's outstanding debt can be found in the notes to the financial statements.aSee Table 5 for property value data.bSee Table 13 for population data.General Bonded Debt Outstanding
City of Allen, Texas Table 11 Direct and Overlapping Governmental Activities Debt as of September 30, 2021 (Unaudited) 125 Debt OutstandingEstimated Percentage Applicable (a)Estimated Share of Direct and Overlapping DebtDebt repaid with property taxes:Allen I.S.D. 630,085,730$ 90.31% 569,030,423$ Plano I.S.D. 625,625,000 0.85% 5,317,813 McKinney I.S.D. 517,065,000 0.14% 723,891 Lovejoy I.S.D. 148,362,326 10.45% 15,503,863 Collin County526,975,000 10.09% 53,171,778 Collin College514,470,000 10.09% 51,910,023 Subtotal, overlapping debt695,657,790$ City of Allen direct debt outstanding124,378,487$ 100.00% 124,378,487 Total Direct and Overlapping Debt820,036,277$ Source:Taxable value data used to estimated applicable percentages provided by Collin Central Appraisal District. Net Bonded Debt Outstanding and Percentage of debt obtained from the Texas Municipal Report ("TMR") that was prepared by the Municipal Advisory Council of Texas ("MAC").Notes:(a) The percentage of applicable overlapping debt is estimated using taxable property values. Applicablepercentages were estimated by determining the portion of the county's taxable assessed value that is within the City of Allen's boundaries and dividing it by the county's total taxable assessed value.Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. This does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government.Governmental Unit
City of Allen, Texas Table 12 Pledged Revenue Coverage Last Ten Fiscal Years (Unaudited) 126 Fiscal Year Ended September 30,Total RevenuesaLess: Operating ExpensesbNet Available RevenueAnnual RequirementcTimes Coverage2012 30,218,985$ 20,244,240$ 9,974,745$ 1,702,074$ 5.86 2013 32,199,528 23,061,918 9,137,610 1,588,049 5.75 2014 30,887,999 23,754,848 7,133,151 1,585,519 4.50 2015 36,275,063 26,397,770 9,877,293 1,513,860 6.52 2016 36,509,983 29,287,984 7,221,999 1,173,576 6.15 2017 37,609,746 33,023,729 4,586,017 1,169,082 3.92 2018 42,629,369 34,843,950 7,785,419 1,181,675 6.59 2019 44,571,666 38,156,431 6,415,235 1,501,610 4.27 2020 50,750,704 39,026,679 11,724,025 1,501,611 7.81 2021 49,805,566 39,647,944 10,157,622 1,874,030 5.42 Notes:bIncludes operating expenses minus depreciation.cIncludes Principal and Interest.aAs of 2009, Development fees are no longer included as part of the non-operating revenues and therefore are not included in the times coverage calculation.Water and Sewer System Revenue Bonds
City of Allen, Texas Table 13 Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) 127 Fiscal Year Ended September 30,Estimated PopulationaPersonal Income Per Capita Personal IncomebSchool EnrollmentcUnemployment Rated2012 88,103$ 3,298,664,423$ 37,441$ 19,765 5.4%2013 89,705 3,709,032,635 41,347 20,295 5.2%2014 91,157 3,542,543,334 38,862 20,503 4.4%2015 93,261 3,940,277,250 42,250 20,755 3.2%2016 94,576 3,823,896,832 40,432 20,973 3.6%2017 99,852 4,007,759,724 40,137 21,054 3.1%2018 102,632 4,715,221,976 45,943 21,567 3.2%2019 107,151 4,694,285,310 43,810 21,791 2.8%2020 109,591 4,876,032,363 44,493 21,538 6.2%2021108,207 e 4,814,454,051 44,493 21,390 3.6%Sources:aEstimated population provided by the City of Allen.cAllen Independent School District.dTexas Workforce Commission.bEstimated Per Capita Income provided by U.S. Census Bureau based on current income trends within the area.eThe reduction in population from prior years is due to inaccurate estimates used between the 2010 and 2020 decennial censuses.
City of Allen, Texas Table 14 Principal Employers Current Year and Nine Years Ago (Unaudited) 128 EmployerTotal EmployeesPercentage of Total City Employment EmployerTotal EmployeesPercentage of Total City EmploymentAllen Independent School District 2,443 7.01% Allen Independent School District 2,402 8.90%Experian Information Solutions 870 2.50% City of Allen 723 2.68%City of Allen 847 2.43% Frontier Communications 700 2.59%Jack Henry & Associates 662 1.90% Texas Health Presbyterian Hospital 670 2.48%Andrew's Distributing 489 1.40% Experian 619 2.29%Texas Health Presbyterian Hospital 428 1.23% PFSweb 450 1.67%Netscout 425 1.22% Andrew Distributing 450 1.67%Credit Union of Texas 375 1.08% Jack Henry & Associates 422 1.56%Motorola Solutions 329 0.94% Graphic Converting 215 0.80%GC Packing LLC 300 0.86% Quest Medical 198 0.73%Total 7,168 20.56% Total 6,849 25.37%Total Allen Daytime Employees 34,857 Total Allen Daytime Employees 27,000Source: Top ten employers and employee count provided by Allen Fairview Chamber of Commerce and Allen Economic Development Corporation.20212012
City of Allen, Texas Table 15 Full–Time Equivalent City Government Employees by Function & Program Last Ten Fiscal Years (Unaudited) 129 Function/Program2012 2013 2014 2015 2016 2017 2018 2019 2020 2021General Government and Administration 57.50 62.00 64.00 67.00 70.50 72.50 75.50 77.00 80.48 82.48 Public Safety 276.50 284.50 286.00 295.00 299.00 299.00 305.00 316.00 319.00 320.00 Public Works 53.00 53.00 54.50 55.50 59.00 59.00 60.50 62.50 63.50 63.50 Culture and Recreational 214.86 214.50 212.27 215.71 221.31 221.31 226.32 228.32 227.82 223.32 Water and Sewer 63.50 66.50 68.00 69.00 70.00 74.00 76.50 79.00 80.00 80.00 Golf Course 23.63 32.54 32.54 33.64 33.64 33.64 33.64 33.64 32.14 32.14 Community Development 28.00 26.00 27.00 27.50 28.50 27.50 30.50 32.00 32.00 34.00 Risk Management 2.00 3.00 4.00 4.00 4.00 4.00 4.00 3.50 3.50 4.50 Economic Development 4.25 4.25 6.25 7.00 7.00 7.00 7.00 7.50 7.50 7.50 Total 723.24 746.29 754.56 774.35 792.95 797.95 818.96 839.46 845.94 847.44 Source:City of Allen's Annual Official BudgetsFiscal Year Ended September 30
City of Allen, Texas Table 16 Operating Indicators by Function & Program Last Ten Fiscal Years (Unaudited) 130 Function/Program2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Public Safety Police Number of Employees 172 174 175 183 185 185 189 199 201 202 Number of Violations (Citations) 13,812 13,902 19,943 14,000 13,645 18,778 17,025 21,060 8,774 10,715 Fire Number of Employees 104 110 111 112 114 114 116 117 118 122 Number of Fire/Other runs 1,325 1,377 1,541 1,622 1,822 1,886 1,896 1,899 1,912 2,490 Number of EMS runs 3,193 3,613 3,703 3,812 4,162 4,210 4,667 4,898 4,725 5,753Development Services Streets paved (miles) 41415562287 Building Permits Issueda5,192 6,013 9,538 7,549 7,022 7,116 7,126 9,414 6,440 6,104Cultural and Recreational Parks and Recreation Park maintained & operated per acre 5,117$ 3,827$ 4,022$ 4,083$ 4,092$ 4,668$ 4,675$ 3,679$ 3,667$ 3,771$ Participants in Leisure Service Programs 683,645 666,452 646,719 568,503 638,367 911,064 955,441 1,002,717 528,935 595,869 Rounds of Golfc0 33,615 45,546 39,723 44,478 47,010 44,163 49,293 54,556 66,518 Library Volumes in Collectionb124,471 124,226 128,501 132,380 138,041 141,774 139,605 146,699 143,103 142,324Water and Sewer Number of Water Consumers 27,974 28,669 29,124 29,750 30,332 30,920 31,391 31,922 32,334 33,109 Average Daily Water Consumption (gallons) 14,336,000 14,479,000 11,863,621 13,284,000 14,472,000 15,107,156 15,926,000 15,454,057 15,710,457 16,143,000 Maximum Storage Capacity (million of gallons) 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33 33.0Sanitation Recyclables Collected (tons) 9,517 9,667 9,920 10,015 10,108 10,578 10,723 10,073 10,343 9,838 Solid Waste Collected (tons) 53,960 53,445 55,142 59,591 62,009 63,712 66,333 65,242 66,515 66,773Source:City of Allen DepartmentsNotes:aIncludes residential, commercial, and miscellaneous permits (e.g. for pools, fences, and roof repairs).bIncludes books and media.c The Golf Course was closed for renovations during fiscal 2012 and was re-opened in January 2013.Fiscal Year Ended September 30
City of Allen, Texas Table 17 Capital Assets Statistics by Function & Program Last Ten Fiscal Years (Unaudited) 131 Function/Program2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Public Safety Police Stations 1111111111 Police Patrol Units 27272727283131313144 Fire Stations 5555555555 Police Motorcycle Units 4444444444Development Services Streets-Paved (miles) 325 326 330 331 336 341 347 349 351 438 Alleys-Paved (miles) 163 163 165 166 167 168 169 169 169 180Cultural and Recreational Parks (acres) 597 597 599 599 607 614 689 691 691 691 Playgrounds 32323232323232323231 Swimming Pools (outdoor) 1111111111 Recreation Centers 1111111111 Senior Center 1111111111 Tennis Courts 5555555555 Natatorium 1111111111 Visitor (Youth) Center 1111111111 Golf Course 1111111111 Event Center 1111111111Water and Sewer Water Mains (miles) 461 467 471 474 481 494 506 515 524 524 Fire Hydrants 4,144 4,210 4,329 4,398 4,560 4,675 4,982 4,934 5,316 5,359 Sanitary Sewers (miles) 346 352 354 356 361 370 379 386 393 393 Storm Sewer Lines (miles) 107 108 109 110 112 117 123 129 136 224Source: City Of Allen DepartmentsFiscal Year Ended September 30