FY2019-Comprehensive-Annual-Financial-Report.pdfCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended September 30, 2019
CITY OF ALLEN, TEXAS
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2019
AS PREPARED BY THE
FINANCE DEPARTMENT
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019
TABLE OF CONTENTS
EXHIBIT Page
I. INTRODUCTORY SECTION
Letter of Transmittal i
Certificate of Achievement vi
Organizational Chart vii
Elected Officials and Administrative Officers viii
II. FINANCIAL SECTION
Independent Auditor’s Report 1
A. MANAGEMENT’S DISCUSSION AND ANALYSIS 4
B. BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 1 17
Statement of Activities 2 18
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet – Governmental Funds 3 20
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 4 22
Statement of Revenues, Expenditures, and
Changes in Fund Balances – Governmental Funds 5 23
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement
of Activities 6 25
Proprietary Funds Financial Statements
Statement of Net Position – Proprietary Funds 7 26
Reconciliation of the Statement of Net Position
Proprietary Funds to the Government-wide
Statement of Net Position 8 27
Statement of Revenues, Expenses, and Changes
In Net Position – Proprietary Funds 9 28
Reconciliation of the Statement of Revenues,
Expenses, and Changes in Net Position of
Proprietary Funds to the Statement of Activities 10 29
Statement of Cash Flows – Proprietary Funds 11 30
Component Units Financial Statements
Statement of Net Position – Component Units 12 31
Statement of Activities – Component Units 13 32
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 14 33
Statement of Changes in Fiduciary Net Position 15 34
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019
TABLE OF CONTENTS
EXHIBIT Page
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies 35
Note 2. Deposits, Investments, and Investment Policies 43
Note 3. Receivables 47
Note 4. Capital Assets 48
Note 5. Long-Term Debt 52
Note 6. Interfund Transfers 60
Note 7. Retirement Plan 61
Note 8. Water and Sewer Contracts 65
Note 9. Deferred Compensation Plan 66
Note 10. Risk Management 66
Note 11. Postemployment Benefits Other Than Pensions (OPEB) 67
Note 12. Tax Abatements and Economic Incentives 73
Note 13 Commitments and Contingent Liabilities 74
Note 14 Subsequent Events 74
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total OPEB Liability and Related Ratios –
Supplemental Death Benefits Fund A-1 75
Schedule of OPEB Contributions –
Supplemental Death Benefits Fund A-2 76
Schedule of Changes in Net OPEB Liability (Asset) and
Related Ratios – Defined Benefit Retiree Healthcare Plan A-3 77
Schedule of OPEB Contributions –
Defined Benefit Retiree Healthcare Plan A-4 78
Schedule of Changes in the Net Pension Liability and Related Ratios –
Retirement Plan (TMRS) A-5 79
Schedule of Contributions – Retirement Plan (TMRS) A-6 80
General Fund Schedule of Revenues, Expenditures,
And Changes in Fund Balances – Budget and Actual A-7 81
Notes to Required Supplementary Information 82
D. COMBINING AND BUDGETARY COMPARISON SCHEDULES
Major Governmental Funds
Budgetary Comparison Schedule – Debt Service Fund B-1 84
Nonmajor Governmental Funds
Combining Balance Sheet B-2 86
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances B-3 87
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019
TABLE OF CONTENTS
EXHIBIT Page
Internal Service Funds
Combining Statement of Net Position C-1 89
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position C-2 90
Combining Statement of Cash Flows C-3 91
Discretely Presented Component Units
Balance Sheet-Allen Economic Development Corporation D-1 93
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position D-2 94
Statement of Revenues, Expenditures, and Change
in Fund Balance D-3 95
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities D-4 96
Balance Sheet-Allen Community Development Corporation D-5 97
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position D-6 98
Statement of Revenues Expenditures, and Change
in Fund Balance D-7 99
Reconciliation of the Governmental Fund Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities D-8 100
TABLE Page
III. STATISTICAL SECTION
Net Position by Component 1 102
Changes in Net Position 2 103
Fund Balances, Governmental Funds 3 105
Changes in Fund Balances - Governmental Funds 4 106
Assessed Value and Estimated Actual Value of Taxable Property 5 107
Direct and Overlapping Property Tax Rates 6 108
Principal Property Taxpayers 7 109
Ad Valorem Tax Levies and Collections 8 110
Ratio of Outstanding Debt by Type 9 111
Ratio of General Bonded Debt Outstanding 10 112
Direct and Overlapping Governmental Activities Debt 11 113
Pledged-Revenue Coverage 12 114
Demographic and Economic Statistics 13 115
Principal Employers 14 116
Full-Time Equivalent City Government Employees by
Function & Program 15 117
Operating Indicators by Function & Program 16 118
Capital Assets Statistics by Function & Program 17 119
INTRODUCTORY SECTION
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100
WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org
i
March 19, 2020
Honorable Mayor and City Council, City Manager,
Citizens of Allen:
The Finance Department is pleased to submit the Comprehensive Annual Financial Report (CAFR) of the
City of Allen, Texas (the City), for the fiscal year ended September 30, 2019.
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, 2019, issued by Weaver and Tidwell, L.L.P. The independent auditors’
report is located at the beginning of the financial section of the CAFR.
REPORTING ENTITY
This report includes all funds of the City including its component units. Component units are legally separate
entities for which the City is financially accountable but are not part of the City’s operations. The Allen
Economic Development Corporation (AEDC) and Allen Community Development Corporation (ACDC) are
included in the financial statements as discretely presented component units.
CITY PROFILE
The City of Allen is located in Collin County, which is the 21st fastest-growing county in the nation. Collin
County’s population reached 1,004,108 in 2018, and is expected to reach1,150,943 in 2023. 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 107,151 residents in 2019, more than doubling from just over 45,000 in the year 2000
and is projected to reach 117,606 by 2023.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a vote of the
people and provides for seven non-partisan Council members, including the Mayor, to be elected at-large
to staggered terms of three years. The Council is responsible for enacting ordinances, resolutions, and
regulations governing the City as well as adopting the annual budget which serves as the foundation for
financial planning and control. The City Council appoints the City Manager, who has full responsibility for
carrying out Council policies and administering City operations. The Council also appoints the Municipal
Judge and various advisory boards.
City service departments provide a full range of services including police and fire protection emergency
ambulance service, municipal courts, building code enforcement, library, parks and recreation, tourism,
water and sewer services, sanitation/solid waste services, traffic engineering, and construction and
maintenance of streets and infrastructure. The City currently supports a staff of 839.46 full time equivalent
employees.
ii
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 2019 was 3.0%, and the Collin County unemployment rate
was 3.2% -- both of which were below the national rate of 3.7%. 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 $109,978 in 2019, which is 75% greater
than the median income in Dallas/Fort Worth. Over 56% of the City’s residents have earned a bachelor’s
degree or higher, twice the US average. The City has seen the job market increase by 3.3% over the last
year. Future job growth over the next ten years is predicted to be 45.0%, which is higher than the US
average of 33.5%.
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 107,151 is expanding with
an estimated 2.36% annual growth rate. With a median age of 35.5, 56% of residents having bachelor’s
degrees or higher, and a median household earnings of $109,978, 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 also vibrant city with amenities and a pride, and its 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 MONEY Magazine’s #2 Best Place to
Launch a Career (2018) and CNBC’s Best Suburb for Millennials in Texas (2018).
Long Range Financial Planning
The City’s responsiveness to emerging economic challenges and its long-term planning have been key
factors in its fiscal health. The City has a five-year financial plan and a seven-year capital improvement plan
where departments reevaluate project priorities, review funding sources, and identify new projects as
needed. Using this plan allows the City to plan the timing of projects associated with debt issuance and
the effects on the tax rate. Standard and Poor’s most recent credit rating report dated July 5th, 2018 stated,
“very strong management, with strong financial policies and practices under our Financial Management
Assessment methodology.”
The City continues to maintain the highest ‘AAA’ rating from Standard and Poor’s and during 2016 received
a rating increase from Aa1 to Aaa from Moody’s on its general obligation, certificate of obligation bonds.
This increase makes the City of Allen just one of seven Cities in the State of Texas to have both a AAA
rating with both S&P and Moody’s. The Water and Sewer Revenue Bonds are rated ‘AAA’ from Standard
and Poor’s and Aa2 from Moody’s. S&P’s July 2018 rating report supporting the ‘AAA’ rating stated the
following credit factors:
Very strong economy
High effective buying income, strong market values
Very strong budgetary flexibility and very strong year end reserves and liquidity
Very strong management and strong financial management practices that are sustainable
Faster than average debt amortization and moderate overlapping debt, while the debt liabilities
profile is adequate
iii
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 2018 and 2017, respectively, the City issued $11,845,000,
$8,355,000, related to the Bond Program. In fiscal year 2019, the City issued $8,630,000 of General
Obligation Improvement and Refunding Bonds to make improvements to existing City facilities, streets,
drainage, park and recreational facilities, public art projects, and public safety facilities; and to refund certain
outstanding obligations of the City.
Additionally, during fiscal year 2019, the City issued $3,845,000 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 2019 Highlights
During fiscal year 2019, 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 four-hundred and forty building permits. The City welcomed a variety
of new businesses, including Pinstack, Cyrus One Data Center Phase II, Starcreek Village, and the
Techcenter on Greenville III. Facilitated several new residential developments including The Village at Twin
Creeks – Phase IV, Huntington Villas, Vera at Watters, Dolce Living, Ridgeview Villas, St. Andews Park,
and Larkspur. The City also administered Community Development Block Grant funds which went toward
the rehabilitation of twenty-one homes within Allen’s older neighborhoods.
The City has an overall crime rate of 13 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 noticeably lower than the average. This means that for
comparably sized cities across the United States, the City is actually safer than most according to
NeighborhoodScout's exclusive analysis of FBI crime data. NeighborhoodScout's research shows that
Allen's violent crime rate is 1 per one thousand inhabitants, which is about average for all communities in
the United States, across all population sizes.
The Fire Department continues to improve their service to the community through the redesign of the
Central Fire Station and Fire Administration facility. The redesign will expand response capacity and allow
for efficient administration of the fire department. The Fire Department, re-wrote medical treatment
protocols to include the latest in-patient care, updated fire apparatus to meet the demands of a growing
community, expanded professional development programs for staff, and added automatic patient cot
loading systems to six ambulances. Additionally, staff applied for and received $312,683 from the Texas
Ambulance Supplemental Payment Program. Lastly, the department increased inter-operability with
neighboring fire departments through joint training and resource sharing.
The City’s environmental conservation and green initiatives continued to grow and develop with the
implementation of new energy management systems at City Hall, another year of recycling at City facilities
with an increased recycling presence at City parks, another year of chemical redistribution at the Chemical
Reuse Center, coordination of special events and public education programs related to protecting and
conserving natural resources, and winning multiple awards from regional, state and national organizations
dedicated to resource conservation. The City has continually been recognized for its efforts to expand in
this area, culminating in the winning of the National Recreation and Park Association’s Gold Medal Award
and being recognized by Keep Texas Beautiful as a Gold Star Affiliate and Governor’s Community
Achievement Award - Sustained Excellence Award Winner.
iv
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
through a consortium with other Texas libraries, to offer more than 123,000 items. Physical books and
DVD’s remained more popular than ever, especially among children and families. During fiscal 2019, the
Library was recognized by the Texas Municipal Library Directors Association for the fifth 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 and audiobooks
from cloudLibrary, with shared resources from twenty-two other Texas public libraries and digital magazines
from RB Digital.
During fiscal 2019, the CDC oversaw the expenditure of Type B half-cent sales tax revenue on projects that
include: rail development and enhancement; Allen USA Celebration; Demand Response – paratransit
transportation− Trail Marker Program; Special Services equipment; 3rd party consultant for TRC process;
Irrigation central control upgrade; Allen Event Center – lighting control system; Allen Event Center –
electronic marquee; and various parking lot refurbishments..
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 East at Watters Creek, the
125,000 SF Class A office building that opened in March 2018. One Bethany East saw numerous tenants
move into the newly opened building, which include Boss Fight Entertainment, Verado Energy, Cope
Equities, and AEDC’s administrative office. The AEDC recruited Credit Union of Texas to relocate their
corporate headquarters to One Bethany East, which brought in over 200 new jobs. All of this activity
boosted the occupancy of the newly opened building to over 70%. Numerous companies opened including:
WatchGuard Video moving into their new building, a $46 million headquarters facility in June; NETSCOUT
Systems, a cyber-security company, which brought 540 high paying jobs to a new $54 million headquarters
building in One Bethany at Watters Creek opened in August; and Yeager Office Suites, who opened their
first building in Allen in August. Compass Datacenters constructed their second phase of the $300 million
data center campus for lead tenant Jack Henry. CyrusOne broke ground on the first phase of their $1billion
data center that opened in October 2018, and Collin County Technical Campus broke ground in September,
in partnership with the AEDC. The AEDC partnered on the planning and announcement of Monarch City,
a 270-acre mixed-use development at the corner of US 75 & SH121 and lead a coalition of landowners to
block construction of a large electrical transmission line along SH 121. Construction of the electrical
transmission line would have negatively impacted future development of corporate campuses along the
corridor. These projects not only increased the City’s property tax base but also positively affected the
City’s economy by bringing over 1,500 jobs to Allen.
One of the City’s major draws, the 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 Allen Event Center hosts a wide variety of entertaining shows and events-
Disney on Ice, Kane brown, Dude perfect, Esports, Professional Bull Riding, Cultural events, and collegiate
sports as well as multiple graduations, and several trade shows such as Home & Garden Shows, Bridal
Shows, Gun Shows, and Job Fairs among others. These functions are estimated to have an economic
impact of over $12,000,000 annually. The Allen Event Center is also the home to professional sports; the
Allen American Hockey Club (ECHL), and the Dallas Sidekicks Soccer Club (MASL). The Allen Event
Center will celebrate its 10th anniversary in November 2019.
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.
v
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. Recently, the
Training/Travel Policy was updated to reflect changes in city processes and provide added flexibility for
travelers, as well as provide greater ease for Finance staff during the reconciliation process. 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
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 CAFR
for the fiscal year ended September 30, 2018. Fiscal year 2018 was the twentieth 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 comprehensive annual 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 CAFR continues to meet the Certificate of Achievement Program’s requirements,
and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements – We would like to express our sincere gratitude to City’s personnel who contributed
to the production of this report, especially the accounting division. Appreciation is expressed to
representatives of Weaver, LLP, 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,
vi
vii
viii
CITY OF ALLEN, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED
SEPTEMBER 30, 2019
Councilmembers
Mayor
Mayor Pro Tem, Place No. 5
Councilmember, Place No. 1
Councilmember, Place No. 2
Councilmember, Place No. 3
Councilmember, Place No. 4
Councilmember, Place No. 6
Stephen Terrell
Gary L. Caplinger
Kurt Kizer
Carl Clemencich
Lauren Doherty
Chris Schulmeister
Baine Brooks
Management Staff
City Manager Eric Ellwanger
Chief Financial Officer Eric Cannon
Assistant Chief Financial Officer Steven Glickman
Controller Martin Clarke
FINANCIAL SECTION
Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970 | Fax: 972.702.8321
CPAs AND ADVISORS | WEAVER.COM
1
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, 2019, 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, 2019, 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
2
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, other supplementary information,
and statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The other supplementary information, as listed in the table of contents, is 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 other supplementary information is 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.
The Honorable Mayor and Members of City Council
City of Allen, Texas
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 19,
2020, 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
March 19, 2020
MANAGEMENT’S DISCUSSION AND
ANALYSIS
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
4
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, 2019.
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, 2019, by $610,643,541. Of this amount,
$60,479,038 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 $28,994,736. The increase is primarily a result of an
increase in revenues from property taxes, charges for services, investment earnings, and developer
contributions in both governmental and business-type activities.
The City’s governmental funds reported a combined ending total fund balance of $89,484,297 at
September 30, 2019, an increase of $9,496,249 from the prior fiscal year. This increase is
attributed to the issuance of $8,630,000 in general obligation & refunding and bonds and
$2,600,000 of tax notes in fiscal year 2019, an increase in property tax revenues of $5,106,771,
with an increase in revenue offset through capital outlay of $11,921,047.
At the end of the 2019 fiscal year, the unassigned fund balance for the General Fund was
$25,744,069 or 25.7% of total General Fund expenditures.
On a government-wide basis, the City’s total liabilities increased by $19,815,065; primarily as a
result of an increase in the City’s net pension liability by $16,381,959 as of September 30, 2019.
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 17 through 19, the City is divided into three kinds
of activities:
Governmental activities - Most of the City’s basic services are reported here, including the police,
fire, library, community development, parks and recreation, municipal court, and general
administration. Property and sales taxes, charges for services, franchise fees, and state and
federal grants finance most of these activities.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
5
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 fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund, Debt Service Fund, General Capital Projects Fund and
General Obligation Bond Fund, all of which are 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 20 through 25 of this report.
Proprietary Funds - The City maintains two different types of proprietary funds: enterprise funds and
internal service funds. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to account for its
water and sewer operations, solid waste collection, disposal services, drainage operations, and golf course
operations. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses its internal service funds to account for vehicle,
machinery, and equipment replacements and costs associated with workers compensation, liability and
property insurance, and employee medical and dental insurance programs. These services have been
included within governmental activities in the government-wide financial statements as they predominantly
benefit governmental rather than business-type functions.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer operations, solid waste collection, and disposal services since they are 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 26 through 30 of this report.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
6
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 33 and 34 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 35 through 74 of this report.
Required Supplementary Information includes budgetary comparison schedules that have been
provided for the general 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 75 through 82 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 $610,643,541 at September 30, 2019. By far the largest portion of the City’s net position ($504,720,654
or 83%) reflects its net investment in capital assets (i.e. land, buildings, infrastructure, vehicles, machinery,
and equipment). The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City reports the net investment in its capital
assets, it should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
2019 2018 2019 2018 2019 2018
124,295,338$ 110,027,791$ 55,828,488$ 50,984,983$ 180,123,826$ 161,012,774$
465,940,896 455,359,516 123,629,403 118,218,401 589,570,299 573,577,917
590,236,234 565,387,307 179,457,891 152,278,465 769,694,125 717,665,772
15,643,851 7,844,279 1,859,065 875,828 17,502,916 8,720,107
136,522,362 122,968,369 22,302,972 17,898,089 158,825,334 140,866,458
12,492,392 11,340,373 4,681,843 3,977,673 17,174,235 15,318,046
149,014,754 134,308,742 26,984,815 21,875,762 175,999,569 156,184,504
493,087 4,868,245 60,844 609,244 553,931 5,477,489
Net investment in capital assets 391,261,029 379,153,944 113,459,625 103,762,241 504,720,654 482,916,185
Restricted 44,872,796 39,588,223 571,053 46,350 45,443,849 39,634,573
Unrestricted 20,238,419 15,312,432 40,240,619 43,785,615 60,479,038 59,098,047
Total Net Position 456,372,244$ 434,054,599$ 154,271,297$ 147,594,206$ 610,643,541$ 581,648,805$
Total Liabilities
Net Position:
Deferred outflows of resources
Deferred inflows of resources
Current and other assets
Capital assets
Total Assets
Long-term liabilities
Other liabilities
Governmental Activities Business-type Activities Total
Statement of Net Position
Table 1
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
7
An additional portion of the City’s net position, $45,443,849 represents resources that are subject to
external restrictions on how those resources can be used. The remaining balance of $60,479,038 is
available to be used to meet the government’s ongoing obligations to citizens and creditors.
Analysis of the City’s Operations - As of September 30, 2019, the City had an overall increase in net
position of $28,994,736 for the primary government, which represents an increase of $22,317,645 for
governmental activities and an increase of $6,677,091 for business-type activities. The increase in
governmental activities resulted primarily from an increase in revenue related to charges for services,
capital grants and contributions, property taxes, sales taxes, and investment earnings. The increase in
business-type activities is primarily a result of an increase in charges for services and investment earnings.
A summary of the City’s operations for the year ended September 30, 2019, is provided in Table 2.
2019 2018 2019 2018 2019 2018
Revenues:
Program Revenues:
Charges for services 18,483,674$ 17,858,790$ 55,012,181$ 54,104,868$ 73,495,855$ 71,963,658$
Operating grants and
contributions 2,056,001 2,423,768 - - 2,056,001 2,423,768
Capital grants and
contributions 19,888,044 18,942,856 10,175,397 9,734,528 30,063,441 28,677,384
General Revenues:
Property taxes 68,865,078 63,929,379 - - 68,865,078 63,929,379
Sales tax 21,648,401 20,717,505 - - 21,648,401 20,717,505
Franchise taxes 7,810,093 7,990,092 - - 7,810,093 7,990,092
Hotel motel taxes 1,759,159 1,487,066 - - 1,759,159 1,487,066
Other taxes 2,204,220 1,704,227 - - 2,204,220 1,704,227
Interest earnings 4,048,112 944,196 1,284,728 210,045 5,332,840 1,154,241
Gain on sale of capital
assets - 446,117 - 13,228 - 459,345
Miscellaneous 3,460,124 3,592,229 396,719 21,030 3,856,843 3,613,259
Total Revenues 150,222,906 140,036,225 66,869,025 64,083,699 217,091,931 204,119,924
Expenses:
General government 21,238,061 26,764,210 - - 21,238,061 26,764,210
Public safety 44,993,635 39,213,768 - - 44,993,635 39,213,768
Public works 27,039,953 24,161,991 - - 27,039,953 24,161,991
Culture and recreation 33,287,645 33,791,438 - - 33,287,645 33,791,438
Community
development 3,160,050 3,079,242 - - 3,160,050 3,079,242
Interest on long-term
debt 2,888,831 2,920,824 - - 2,888,831 2,980,513
Water and sewer - - 44,511,123 41,134,685 44,511,123 41,134,685
Solid waste services - - 6,248,035 6,223,788 6,248,035 6,223,788
Drainage - - 1,396,935 1,260,262 1,396,935 1,260,262
Golf course - - 3,332,927 3,397,180 3,332,927 3,397,180
Total Expenses 132,608,175 129,931,473 55,489,020 52,015,915 188,097,195 181,947,388
17,614,731 10,104,752 11,380,005 12,067,784 28,994,736 22,172,536
Transfers 4,702,914 4,398,244 (4,702,914) (4,398,244) - -
Change in net position 22,317,645 14,502,996 6,677,091 7,669,540 28,994,736 22,172,536
434,054,599 419,551,603 147,594,206 139,924,666 581,648,805 559,476,269
Net position, end of year 456,372,244$ 434,054,599$ 154,271,297$ 147,594,206$ 610,643,541$ 581,648,805$
Table 2
Changes in Net Position
Net pos ition, beginning of
year, as restated
Governmental Activities Business-type Activities Total
Change in net position
before transfers
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
8
Governmental activities
Revenues – The following chart visually illustrates the City’s revenue by sources for governmental activities:
Charges for services
12%Operating grants
2%
Capital grants
13%
Property taxes
44%
Sales taxes
14%
Franchise taxes
6%Other
6%
Transfers
3%
Revenues by Source - Governmental Activities
Revenues for the City’s governmental activities increased by $10,186,681. Major components of revenue
increase and decreases are explained as follows:
Property taxes increased by $4,935,699, or 7.7%, due to an increase of 9.9% from prior year's
valuation. This increase is due to real property reappraisals and new property additions.
Sales taxes increased by $930,896 over prior year collections.
Other tax revenues, including fines, increased by $499,993 over prior year collections.
Charges for services increased by $624,884 or 3.5% primarily due to an increase in parks and
recreations charges and an increase in roadway impact fee revenue.
Capital grants and contributions increased by $945,188 over fiscal 2018.
Interest earnings increased by $3,103,916, an increase of 329% over prior year, as a result of
increased interest rates and fair market values of investments during fiscal 2019.
Expenses for governmental activities totaled $132,608,175, an increase of $2,676,702 from fiscal year
2018. Components of increases and decreases are explained as follows:
The overall increase in expenses include the result of increased pension and OPEB net expense
in the current year and employee annual merit increases.
Expenses for Public Safety increased by 14.7%, due primarily to the scheduled salaries market
adjustment for both Fire and Police departments and the addition of 10 fulltime equivalent positions
to address goals in the strategic plan and maintain the current levels of service.
Expenses for Public Works increased by 11.9% due to the increase on street improvements
throughout the City and the increase in net pension liability from fiscal year 2018 to fiscal year 2019.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
9
Expenses for General Government decreased by $5,526,149, or 20.7%, due primarily to the
allocation of vehicle and equipment replacement costs to applicable City departments.
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
Expenses and Program Revenues - Governmental
Activities
Expenses
Revenues
Business-type activities –
Revenues – The following chart visually illustrates the City’s revenue by sources for business-type activities:
Charges for services
85%
Capital grants and
contributions
15%
Other
0%
Revenues by Source - Business-type Activities
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
10
Revenues from business-type activities increased $2,785,326, or 4.35%. Major components of the net
increase are as follows:
Charges for services for business-type activities increased by $907,313, or 1.68%.
Capital grants and contributions increased by $440,869 over the prior year.
Investment earnings increased by $1,074,683 or 511.64% over fiscal 2018.
Expenses for business-type activities increased by $3,473,105, or 6.7%. The increase was due to an
increase of 8.3% in expenses in the Water and Sewer Fund, an increase of 10.8% in the expenses in the
Drainage Fund, offset by a decrease of 1.9% in expenses in the Golf Course Fund. The increase in the
Water and Sewer Fund stemmed primarily from payments to North Texas Municipal Water District
(NTMWD) for the City’s share of the costs incurred to design, construct, operate, and maintain a new
wastewater collection system that would prevent participating cities from incurring more expensive future
costs. The increase in the Golf Course Fund was primarily a result of increased personnel costs and an
increase in the cost of general supplies. The following chart illustrates the relationship between expenses
and program revenues for 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
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
11
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
$89,484,297, an increase of $9,496,249 in comparison with the prior fiscal year. Approximately 30%, or
$25,744,069 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 $198,684
related to prepaid items and $11,390 associated with inventories. The restricted portion includes: debt
service ($1,713,320), capital expenditures ($18,190,422), tourism ($2,646,073), asset forfeiture ($177,538),
state and federal grants ($263,729), park acquisition and development ($1,130,579), tax increment
financing agreements ($5,086,363), court technology ($91,021), juvenile case manager ($29,435), PEG
fees ($1,026,569), radio system ($268,023), court security ($8,012), public safety and library enhancements
($813,833), and cemetery trust ($61,304). In addition, $32,023,933 was assigned to capital expenditures.
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 $25,744,069. Current operating expenditures had savings of $5,244,191,
which allowed monies to be transferred to the General Capital Projects Fund for self-financing of capital
projects. The total fund balance increased from $23,711,241 at September 30, 2018, to $26,014,696 at
September 30, 2019. This increase is due to prudent, conservative management by City staff.
The Debt Service Fund balance of $1,713,320, all of which is restricted for the payment of debt, represents
an increase from the prior year of $461,382. The increase was due to the reduction in expenditure for the
debt service principal retirement in the amount of $599,215 over the prior year. The fund balance covers
the 5-10% of annual debt service requirement for fiscal year 2019, which is $720,623 to $1,441,247.
The General Capital Projects Fund provides information on cash financed capital projects and had an
ending fund balance of $32,024,684 at September 30, 2019, an increase of $3,675,493. Revenues and
other financing sources totaled $10,042,685, which includes $95,000 received from the City of Fairview for
Stacy Road improvements, $312,683 received from HHSC for reimbursement of Fire Department
expenditures, $275,840 in charges for services for median improvements, $367,604 in miscellaneous
revenue for street improvements, and $6,500,000 from other funds to cash finance capital projects. Total
expenditures and other uses of $6,367,192 consisted primarily of $3,653,862 for streets, intersections and
medians improvements throughout the City, $918,215 for public safety software and hardware systems,
$203,589 for the bridge replacement at the Joe Farmer Recreation Center, $108,058 for improvements at
Spirit Park, $800,000 in capital lease payments, and $683,450 for miscellaneous street and alley repairs.
The General Obligation Bond Fund had an ending fund balance of $18,190,422, which represents a
increase of $88,456 from the prior year. Expenditures totaled $10,683,593, which consisted mainly of
$2,300,000 for the Collin County College Firearms Training Facility, $3,246,186 for the central fire station
remodel, $210,511 for traffic signal upgrades, $1,962,768 for Alma Drive improvements, $634,158 for
median enhancements, and $835,577 for miscellaneous street and alley repairs.
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, 2019, the City Council
amended the budget for the General Fund one time.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
12
Adjustments made during fiscal year 2019 increased the original revenue budget by $3,154,319 and
increased the expenditure budget by $1,714,346. Due to actual expenditures being $5,044,697 less than
the revised budget and revenues exceeding the revised budget by $2,048,485, the City was able to transfer
$6,000,000 to the General Capital Projects Fund to cash finance future capital projects and transfer $20,000
to the Golf Course Fund to ensure a positive net position at year’s end. The General Fund's unrestricted
operational expenditure in reserve increased to 95 days from the amended budget of 76 days, which is well
above the City's financial policy to maintain an operational expenditure reserve of 60- to 90-days.
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, 2019, the unrestricted net position for all enterprise
funds were as follows: Water and Sewer, $33,702,668; Solid Waste, $3,726,650; Drainage, $1,188,944
and Golf Course, $304,181. The total change in net position for these funds was an increase of $5,989,418;
an increase of $149,478; an increase of $64,634; and an increase of $264,394, respectively.
The Water and Sewer Fund had an increase in net position as a result of a significant increase in water
demand over the summer months of 2019 coupled with an increase in customer rates. The Solid Waste
Fund had an increase in net position due to increased revenue coupled with an increase in transfers out to
other funds. The Drainage Fund had an increase in net position due to an increase in operating revenues.
The Golf Course Fund had an increase in net position due to increased transfers in from other funds.
CAPITAL ASSETS
The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2019, was $589,570,299 (net of accumulated depreciation). Investment in capital assets
includes land and improvements, buildings, vehicles, machinery and equipment, park land and facilities,
roads and bridges. About 79% of the capital assets are governmental and 21% represent business-type
activities. There was an increase of 2.8% in the investment in capital assets for the current fiscal year.
2019 2018 2019 2018 2019 2018
Land 148,615,695$ 143,531,148$ 4,087,385$ 4,072,882$ 152,703,080$ 147,604,030$
Buildings 67,637,987 70,204,069 - - 67,637,987 70,204,069
- - 108,869,545 107,724,356 108,869,545 107,724,356
Other Improvements 215,915,622 212,575,308 293,775 306,039 216,209,397 212,881,347
Furniture and fixtures 138,814 169,577 - - 138,814 169,577
Vehicles 7,964,345 6,541,467 372,275 388,743 8,336,620 6,930,210
Machinery and equipment 3,727,830 3,692,505 1,578,068 2,038,203 5,305,898 5,730,708
Construction in progress 21,940,603 18,645,442 8,428,355 3,688,178 30,368,958 22,333,620
Total 465,940,896$ 455,359,516$ $123,629,403 118,218,401$ 589,570,299$ 573,577,917$
Towers, tanks, and pump stations
Table 3
Capital Assets at Year-end, Net of Accumulated Depreciation
Governmental Activities Business-type Activities Total
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 15,841,034$
Central Fire Station Remodel 3,246,186
Collin College Gun Range 2,300,000
Public Safety Hardware & Software 918,215
Street construction:
Alma Drive Improvement 2,310,895$
Street and Alleys Improvements 1,487,172
Median Improvements 634,159
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
13
Business-type capital improvement projects and developer contributions during the current fiscal year
include the following:
Developer contributed water mains and sewer lines 6,225,357$
Hillside Water & Sewer Rehabilitation Phase 1 1,232,617
Hillside Water & Sewer Rehabilitation Phase 2 3,309,872
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 at September 30, 2019, was $198,493,639. Of this
total, $136,522,362 was associated with governmental activities, $22,302,972 was business-type activities,
and $39,668,305 was associated with the Component Units. Total gross bonded debt and a note payable
accounted for $150,372,432, which include $83,815,000 of General Obligation (G.O.) bonds backed by the
full faith and credit of the primary government; $15,535,000 secured solely by water and sewer revenues;
the Component Units’ total of $36,715,000 that is secured by future sales tax revenue; notes payable
balance of $4,560,616; and $9,746,816 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.
During fiscal year 2019, the City issued General Obligation Improvement and Refunding Bonds in the
amount of $8,630,000; $3,845,000 in Waterworks and Sewer System Revenue Bonds; and $2,600,000 of
Tax Notes.
The revenue bond debt for both component units relates to debt issued to support public infrastructure
improvements, land acquisition, and construction of the Allen Event Center. The notes payable in the
Component Units relate to a loan agreement in which Allen Economic Development Corporation entered
to finance the purchase of 31 acres of land. Total debt of the Component Units decreased by 11.1%. Total
debt for the Allen Economic Development Corporation decreased by 19.2%, and for the Allen Community
Development Corporation, total debt decreased by 6.2%.
2019 2018 2019 2018 2019 2018 2019 2018
General Obligation Bonds 83,815,000$ 86,785,000$ -$ -$ -$ -$ 83,815,000$ 86,785,000$
Revenue Bonds Payable - - 15,535,000 13,050,000 - - 15,535,000 13,050,000
Premiums & Discounts 7,651,739 7,675,400 1,102,388 800,800 992,689 1,125,047 9,746,816 9,601,247
Sales Tax Revenue Bonds - - - - 36,715,000 40,925,000 36,715,000 40,925,000
Notes Payable 2,600,000 635,000 - - 1,960,616 2,588,695 4,560,616 3,223,695
Total Gross Bonded Debt 94,066,739 95,095,400 16,637,388 13,850,800 39,668,305 44,638,742 150,372,432 153,584,942
Compensated Absences 7,036,501 6,368,701 746,994 786,209 - - 7,783,495 7,154,910
Net Pension Liability 34,032,752 19,444,403 4,189,807 2,396,197 - - 38,222,559 21,840,600
Net OPEB Liability 1,310,379 1,195,620 159,601 145,492 - - 1,469,980 1,341,112
Capital Leases 75,991 864,245 569,182 719,391 - - 645,173 1,583,636
Total Other Long-Term Debt 42,455,623 27,872,969 5,665,584 4,047,289 - - 48,121,207 31,920,258
Total 136,522,362$ 122,968,369$ 22,302,972$ 17,898,089$ 39,668,305$ 44,638,742$ 198,493,639$ 185,505,200$
Gross Bonded Debt
Other Long-Term Debt
Table 4
Outstanding Debt at Year-end
Bonds and Other Long-Term Liabilities
Governmental Activities Business-type Activities Component Units Total
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
14
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 local economy continues to be moderately strong for the City of Allen and for the North Central Texas
region. Focused on having a balanced community, the City takes a proactive approach to economic
development with its business recruitment and retention efforts, as well as with its variety of housing
options. In addition, the City conservatively manages its budget. The City currently supports a staff of
839.46 full-time equivalent employees allocated among the operating departments. This budget includes
an increase of 6.48 full-time equivalent (FTE) positions, setting the total employment level for FY2020 at
845.94. This includes 6.98 additional General Fund FTE positions, as well as an increase of 1.0 additional
FTE position in the Water and Sewer Fund and a reduction of 1.5 FTE from the Golf Course Fund. The
staffing level has been increased in these funds to address the goals established by City Council and to
maintain current levels of service.
The City revenues impacted mostly by a moderately strong economy are ad valorem taxes and sales taxes.
Revenues from ad valorem taxes experienced growth due to new construction and reappraisal increases
of existing real property. For fiscal year 2019-2020, the overall increase in valuation from all categories
was 6.37%. However, the increase in property tax revenues was budgeted at 1.76% due to the lowering
of the tax rate by 0.9 cent. Ad valorem taxes are the General Fund’s largest revenue source and are
estimated to contribute $54.8 million or 50% of the fund’s budgeted revenues in FY2020. Appraisal values
are established by the Central Appraisal District of Collin County, and collections are certified at 100% by
the Collin County Tax Assessor-Collector’s office. Overall, revenues from sales taxes are expected to
increase by 3.51% over the revised fiscal year 2019 budget due to new retail development and population
growth. As the City’s sizeable retail developments near its capacity, the rate of growth of sales tax is
expected to increase based on a combination of population growth and increases in prices for retail items.
The rate of residential growth has steadily increased as the economy recovered. The City estimates
issuance of over 415 single family permits in fiscal year 2020. The population of approximately 107,151 as
of September 30, 2019, is expected to reach approximately 130,000 at “build out” in the next twelve years.
The population projection at “build out” has been increased recently due to the construction of additional
multi-family homes, changes to projected land use plans, and an overall increase in the density of the
developments.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
15
The various infrastructure and operational needs of the City have resulted in the annual expenditure budget
increase from $164.49 million in fiscal year 2012, to $226.01 million for fiscal year 2020 for all funds
combined. The certified assessed property value for 2019-2020 equates to an overall increase of
approximately $865.8 million (6.37%) from the preceding year. The fiscal year 2020 tax rate was set at
$0.489 per $100 valuation. Of the total tax rate, $0.387038 is dedicated to operations and maintenance in
the General Fund, and $0.101962 is dedicated to general obligation debt service.
As of September 30, 2019, the General Fund carried a positive variance with the revised budgeted fund
balance in the amount of $1,090,507. The general Fund ending fund balance of $26,014,696 supports an
equivalent of 95 days of operating expenditures, which is higher than the amended estimate of 76 days and
above the range of the City’s financial policy to maintain an operational expenditure reserve of 60- to 90-
days. The 2018-2019 General Fund expenditure budget reflects a 12.4% increase over the revised 2017-
2018 budget. This is primarily due to compensation merit increases and a market adjustment to the salaries
of Public Safety employees along with increases in the net OPEB liability and net pension liability as of the
end of the current fiscal year. These changes will allow the City to retain staff to meet its strategic goals
and continue its commitment to maintaining high levels of service to the public.
The Water and Sewer Fund is expected to begin fiscal year 2020 with a $9.948 million working capital
balance. The total fund revenues are expected to be $52,005,052. Expenses include a $3,011,567 transfer
to capital projects for systematic water and sewer infrastructure replacement projects and future CIP
funding. The budget incorporates the water and sewer rate study completed in 2017 and updated in fiscal
year 2019. The $12.465 million in working capital ending balance results in 98 days of operating
expenditures in reserve, which is within the City policy of 90 to 120 days. This balance is necessary to fund
future capital projects and ongoing major maintenance projects planned to ensure that water and sewer
infrastructure continues to meet the needs of the residents. Due to careful attention to cost containment,
the City has been able to maintain water and sewer rates that are among the lowest in the region.
The Solid Waste Fund represents the financial activity related to solid waste collection and disposal,
including recycling, composting services, and management of household hazardous waste. Anticipated
revenues in fiscal year 2020 total $7,171,105, and budgeted expenses total $7,709,943. The total working
capital ending balance for the Solid Waste Fund is projected to be $2,757,315 and provides for 136 days
of reserves. Following City Council’s recommendation, the Solid Waste Fund Balance will continue to
absorb the North Texas Municipal Water District disposal cost increases in fiscal year 2020, rather than
passing these increases to residents and businesses. The Solid Waste Fund will contribute funding in the
amount of $300,000 in fiscal year 2020 for alley repairs.
The Drainage Fund is supported by drainage fees on utility bills and development inspection fees. The
fund performs drainage system maintenance, funds the City’s contracts for street sweeping, greenbelt
mowing along drainage ways, and mosquito abatement activities. The fund also supports the City’s Texas
Pollutant Discharge Elimination System (TPDES) permit activities and provides funds to accomplish
drainage system related capital improvements. Additional funding of $50,000 is included for repairing failing
drainage infrastructure. Total anticipated revenues for fiscal year 2020 is $1,832,500, with budgeted
expenses totaling $2,005,604. The total working capital ending balance for the Drainage Fund is projected
to be $984,285 and provides for 179 days of reserves, which is consistent with Fund Balance Policy.
The City’s golf course, formerly called Chase Oaks, is in its seventh year of operation. After the course
was redesigned, it was renamed as The Courses at Watters Creek. The renovated course opened in
January 2013. The completion of the 33 holes has helped to improve the overall golf experience for the
established players and create an enthusiastic environment for new golfers of all ages. There is an 18-hole
course, a 9-hole course, 6 additional holes for short iron play, new putting greens, and a lighted driving
range. The Golf Course Fund’s operating expenses in fiscal year 2020 are anticipated to be $3,754,624,
which will be covered by operating revenues estimated at $3,402,472 and transfers in from the General
Fund of $352,152. General Fund support to the Golf Course Fund may fluctuate based upon actual
revenues from green fees and food & beverage sales that exceed budgeted amounts.
CITY OF ALLEN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
(UNAUDITED)
16
The Risk Management Fund accounts all risks and liability obligations the City incurs. Included in the fund
are health and dental costs, for which the City is self-insured. The fund also includes premiums for workers’
compensation as well as expenses for property and liability insurance. There is no increase to the health
and dental contribution rates for either the City or employees due to significant changes made to our benefit
plans such as increases to deductibles, out-of-pocket maximums, tobacco surcharge, elimination of out-of-
network coverage on all plans, and increasing specialty prescription copays. The budgeted amount for
workers’ compensation coverage is $600,000. Property and Liability Insurance is anticipated to increase
to a total budgeted amount of $853,300. The Risk Division continues to audit all policies on an ongoing
basis. The Risk Management Fund continues to be in good financial condition. The fund balance continues
to provide the financial security needed if catastrophic claims should occur.
In May 2016, the citizens of Allen authorized the future issuance of $93.15 million in General Obligation
Bonds to fund capital improvement projects over the following seven years. The projects identified within
that bond program represent a significant investment in infrastructure, public facilities, and recreational
venues. None of the debt from the 2007 election is scheduled to be issued for fiscal 2019 or fiscal year
2020. Only $2 million remain authorized and unissued from the 2007 bond election for use at the Municipal
Service Center. During fiscal year 2019, proceeds of approximately $7.686 million from the 2016 G.O.
Bond Election were received as a result of new bond issuance. From that issuance, the following projects
will be initiated:
● $2.386 million for various Signal and Roadway Improvements throughout the City
● $1.8 million to prepare for Fire Station #6
● $3 million for improvements to various Parks and Recreation Facilities
● $500,000 for Public Art Master Plan
The 2019 bond issuance included refunding proceeds of approximately $1.7 million to refund all future debt
service payments related to the General Obligation Bonds, Series 2009. Additionally, Tax Notes of $2.6
million were issued in fiscal year 2019 to cover maintenance of the City facilities due to aging.
The City of Allen’s budget continues to be positively impacted by moderately strong growth and by
conservative fiscal management. The 2019-2020 budget reflects the efforts of the governing body and City
staff to address the need to provide services and facilities to support our vibrant and growing community,
while maintaining a strong financial position.
Request for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional information,
please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626.
BASIC FINANCIAL STATEMENTS
CITY OF ALLEN, TEXAS EXHIBIT 1
STATEMENT OF NET POSITION
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
17
GOVERNMENTAL BUSINESS-TYPE COMPONENT
ACTIVITIES ACTIVITIES TOTAL UNITS
ASSETS
Cash and cash equivalents 14,427,573$ 11,980,996$ 26,408,569$ 3,393,746$
Investments 101,330,322 29,228,337 130,558,659 18,789,545
Receivables (net of allowance
for uncollectibles) 8,613,101 11,439,429 20,052,530 4,304,661
Internal balances (1,318,176) 1,318,176 - -
Prepaid items and other assets 423,366 - 423,366 -
Net OPEB asset 807,762 - 807,762 -
Inventories 11,390 156,188 167,578 -
Restricted cash and cash equivalents - 1,705,362 1,705,362 -
Capital assets:
Non-depreciable 170,030,776 12,515,740 182,546,516 24,367,004
Depreciable (net of depreciation) 295,910,120 111,113,663 407,023,783 45,612,211
TOTAL ASSETS 590,236,234 179,457,891 769,694,125 96,467,167
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 1,272,441 91,920 1,364,361 916,216
Deferred outflows of resources - OPEB 185,080 22,964 208,044 -
Deferred outflows of resources - pension 14,186,330 1,744,181 15,930,511 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 15,643,851 1,859,065 17,502,916 916,216
LIABILITIES
Accounts payable 6,190,077 2,899,473 9,089,550 398,993
Accrued liabilities 5,139,939 357,711 5,497,650 614,377
Accrued interest payable 441,281 169,309 610,590 105,657
Customer deposits - 1,080,918 1,080,918 -
Unearned revenue 244,349 - 244,349 -
Retainage payable 476,746 174,432 651,178 110,000
Non-current liabilities:
Due within one year 15,700,137 1,650,841 17,350,978 5,057,998
Due in more than one year 120,822,225 20,652,131 141,474,356 34,610,307
TOTAL LIABILITIES 149,014,754 26,984,815 175,999,569 40,897,332
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - OPEB 169,448 21,054 190,502 -
Deferred inflows of resources - pension 323,639 39,790 363,429 -
TOTAL DEFERRED INFLOWS OF RESOURCES 493,087 60,844 553,931 -
NET POSITION
Net investment in capital assets 391,261,029 113,459,625 504,720,654 43,260,431
Restricted for:
Debt service 1,307,688 571,053 1,878,741 509,871
Capital projects 32,023,933 - 32,023,933 -
Tourism 2,646,073 - 2,646,073 -
Park acquisition and development 1,130,579 - 1,130,579 -
State and federal grants 263,729 - 263,729 -
Tax Increment Financing 5,086,363 - 5,086,363 -
Other purposes 2,414,431 - 2,414,431 -
Unrestricted 20,238,419 40,240,619 60,479,038 12,715,749
TOTAL NET POSITION 456,372,244$ 154,271,297$ 610,643,541$ 56,486,051$
PRIMARY GOVERNMENT
CITY OF ALLEN, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
18
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental Activities:
General government 21,238,061$ 500,122$ -$ -$
Public safety 44,993,635 1,954,810 760,105 -
Public works 27,039,953 1,485,962 - 15,069,083
Culture and recreation 33,287,645 9,744,309 971,779 3,639,328
Community development 3,160,050 4,798,471 324,117 1,179,633
Interest on long-term debt 2,888,831 - - -
Total governmental activities 132,608,175 18,483,674 2,056,001 19,888,044
Business-type Activities:
Water and sewer 44,511,123 43,103,920 - 10,175,397
Solid waste 6,248,035 7,006,423 - -
Drainage 1,396,935 1,763,694 - -
Golf course 3,332,927 3,138,144 - -
Total business-type activities 55,489,020 55,012,181 - 10,175,397
TOTAL PRIMARY GOVERNMENT 188,097,195$ 73,495,855$ 2,056,001$ 30,063,441$
COMPONENT UNITS:
Allen Economic Development Corporation 8,256,674$ -$ -$ -$
Allen Community Development Corporation 5,727,497 - - -
TOTAL COMPONENT UNITS 13,984,171$ -$ -$ -$
General revenues:
Taxes:
Property taxes, levied for general purposes
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
19
Governmental Business - Type COMPONENT
Activities Activities TOTAL UNITS
(20,737,939)$ -$ (20,737,939)$ -$
(42,278,720) - (42,278,720) -
(10,484,908) - (10,484,908) -
(18,932,229) - (18,932,229) -
3,142,171 - 3,142,171 -
(2,888,831) - (2,888,831) -
(92,180,456) - (92,180,456) -
- 8,768,194 8,768,194 -
- 758,388 758,388 -
- 366,759 366,759 -
- (194,783) (194,783) -
- 9,698,558 9,698,558 -
(92,180,456)$ 9,698,558$ (82,481,898)$ -$
-$ -$ -$ (8,256,674)$
- - - (5,727,497)
-$ -$ -$ (13,984,171)$
68,865,078$ -$ 68,865,078$ -$
21,648,401 - 21,648,401 21,205,654
7,810,093 - 7,810,093 -
1,759,159 - 1,759,159 -
2,204,220 - 2,204,220 -
4,048,112 1,284,728 5,332,840 793,661
- - - 1,426,630
3,460,124 396,719 3,856,843 30,899
4,702,914 (4,702,914) - -
114,498,101 (3,021,467) 111,476,634 23,456,844
22,317,645 6,677,091 28,994,736 9,472,673
434,054,599 147,594,206 581,648,805 47,013,378
456,372,244$ 154,271,297$ 610,643,541$ 56,486,051$
Changes in Net Position
Net (Expense) Revenue and
Primary Government
CITY OF ALLEN, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
20
GENERAL
DEBT CAPITAL
GENERAL SERVICE PROJECTS
ASSETS
Cash and cash equivalents $ 482,310 1,627,503$ 2,991,992$
Investments 26,894,166 85,943 29,502,179
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes 138,109 35,523 -
Sales taxes 3,769,763 - -
Accounts receivable 330,448 - -
Accrued interest 222,606 - 115,935
Other 2,952,223 - 312,683
Inventories 11,390 - -
Prepaid items 197,933 - 751
TOTAL ASSETS 34,998,948 1,748,969 32,923,540
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 4,330,261 - 299,218
Accrued liabilities 3,517,033 - 384,795
Unearned revenue 244,349 - -
Retainage payable - - 142,199
TOTAL LIABILITIES 8,091,643 - 826,212
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 138,109 35,523 -
Unavailable revenue - charges for services 686,195 - -
Unavailable revenue - miscellaneous 8,439 - 40,857
Unavailable revenue - interest 15,518 126 31,787
Unavailable revenue - fines 44,348 - -
Unavailable revenue - grants - - -
TOTAL DEFERRED
INFLOWS OF RESOURCES 892,609 35,649 72,644
FUND BALANCES
Nonspendable
Prepaid items 197,933 - 751
Inventories 11,390 - -
Restricted
Debt service - 1,713,320 -
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 61,304 - -
Assigned
Capital expenditures - - 32,023,933
Unassigned 25,744,069 - -
TOTAL FUND BALANCES 26,014,696 1,713,320 32,024,684
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 34,998,948$ 1,748,969$ 32,923,540$
EXHIBIT 3
21
GENERAL OTHER TOTAL
OBLIGATION GOVERNMENTAL GOVERNMENTAL
BOND FUNDS FUNDS
1,963,377$ 3,427,038$ 10,492,220$
17,366,985 8,237,889 82,087,162
- - 173,632
- - 3,769,763
- 326,355 656,803
79,673 38,703 456,917
15,600 - 3,280,506
- - 11,390
- - 198,684
19,425,635 12,029,985 101,127,077
861,422 416,035 5,906,936
- 36,030 3,937,858
- - 244,349
322,276 12,271 476,746
1,183,698 464,336 10,565,889
- - 173,632
- - 686,195
- - 49,296
51,515 24,347 123,293
- - 44,348
- 127 127
51,515 24,474 1,076,891
- - 198,684
- - 11,390
- - 1,713,320
18,190,422 - 18,190,422
- 2,646,073 2,646,073
- 177,538 177,538
- 263,729 263,729
- 1,130,579 1,130,579
- 5,086,363 5,086,363
- 91,021 91,021
- 29,435 29,435
- 1,026,569 1,026,569
- 268,023 268,023
- 8,012 8,012
- 813,833 813,833
- - 61,304
- - 32,023,933
- - 25,744,069
18,190,422 11,541,175 89,484,297
19,425,635$ 12,029,985$ 101,127,077$
CITY OF ALLEN, TEXAS EXHIBIT 4
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
22
Total fund balance of governmental funds balance sheet 89,484,297$
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. 465,940,896
Funds comprising the net OPEB asset are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 807,762
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred charges on refunding 1,272,441$
Deferred outflows of resources - OPEB 185,080
Deferred outflows of resources - pension 14,186,330
Deferred inflows of resources - OPEB (169,448)
Deferred inflows of resources - pension (323,639) 15,150,764
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. (441,281)
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 ($31,884,155) are net of the
amount allocated to business-type activities ($1,318,176) and to capital
assets ($9,690,702). 20,875,277
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,076,891
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
General obligation bonds (83,815,000)$
Tax notes (2,600,000)
Capital lease payable (75,991)
Premiums/discounts (7,651,739)
Compensated absences (7,036,501)
Net OPEB liability (1,310,379)
Net pension liability (34,032,752) (136,522,362)
Net position of governmental activities 456,372,244$
CITY OF ALLEN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
23
DEBT
GENERAL SERVICE
REVENUES
Ad valorem taxes, penalties and interest 53,250,570$ 14,202,312$
Franchise taxes 7,628,851 -
Municipal sales tax 21,127,093 -
Licenses, permits and fees 5,019,490 -
Charges for services 11,814,263 -
Fines 2,025,605 -
Gifts and contributions 785,613 -
Hotel / motel fees - -
Intergovernmental 261,132 -
Investment earnings 1,326,225 216,756
Miscellaneous 2,579,264 -
Total revenues 105,818,106 14,419,068
EXPENDITURES
Current
General government 18,376,868 -
Public safety 43,155,246 -
Public works 6,410,188 -
Culture and recreation 28,652,437 -
Community development 2,859,578 -
Capital outlay 787,360 -
Debt service:
Principal retirement - 10,582,162
Interest and fiscal charges - 3,407,768
Total expenditures 100,241,677 13,989,930
Excess (deficiency) of revenues
over (under) expenditures 5,576,429 429,138
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 1,660,000
Issuance of bonds - -
Premium on bonds issued - 47,244
Payment to refunded bond escrow agent - (1,675,000)
Capital lease obligations - -
Transfers in 4,911,714 -
Transfers out (8,208,513) -
Proceeds from sale of capital assets 23,825 -
Total other financing sources (uses)(3,272,974) 32,244
NET CHANGE IN FUND BALANCES 2,303,455 461,382
FUND BALANCES, BEGINNING OF YEAR 23,711,241 1,251,938
FUND BALANCES, END OF YEAR 26,014,696$ 1,713,320$
EXHIBIT 5
24
GENERAL GENERAL OTHER TOTAL
CAPITAL OBLIGATION GOVERNMENTAL GOVERNMENTAL
PROJECTS BOND FUNDS FUNDS
-$ -$ 1,431,944$ 68,884,826$
- - 181,242 7,810,093
- - 521,308 21,648,401
- - 259,935 5,279,425
1,772,211 - - 13,586,474
- - 188,966 2,214,571
- - 800,000 1,585,613
- - 1,758,858 1,758,858
467,027 - 530,239 1,258,398
865,438 565,592 306,329 3,280,340
438,009 - 89,721 3,106,994
3,542,685 565,592 6,068,542 130,413,993
408,412 169,389 947,873 19,902,542
- - 128,738 43,283,984
2,508,362 2,275,843 - 11,194,393
243,071 300 1,148,852 30,044,660
- - 302,101 3,161,679
2,407,347 8,238,061 488,279 11,921,047
800,000 - - 11,382,162
- - - 3,407,768
6,367,192 10,683,593 3,015,843 134,298,235
(2,824,507) (10,118,001) 3,052,699 (3,884,242)
- - - 1,660,000
- 9,570,000 - 9,570,000
- 847,549 - 894,793
- - - (1,675,000)
- 33,908 - 33,908
6,500,000 - 514 11,412,228
- (245,000) (100,556) (8,554,069)
- - 14,806 38,631
6,500,000 10,206,457 (85,236) 13,380,491
3,675,493 88,456 2,967,463 9,496,249
28,349,191 18,101,966 8,573,712 79,988,048
32,024,684$ 18,190,422$ 11,541,175$ 89,484,297$
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, 2019
The Notes to Financial Statements are
an integral part of this statement.
25
Net change in fund balances - total governmental funds 9,496,249$
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. 11,921,047
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. 3,050
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. 19,220,426
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. (21,246,013)
In governmental fund financial statements, the proceeds from sales of assets are shown
as an increase in financial resources. However, in the statement of activities,
the gain or loss is calculated and reported. (23,332)
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 (1,660,000)
Bonds issued (9,570,000)
Premium on bonds issued (894,793)
Payment to refunding bond escrow agent 1,675,000
Issuance of capital lease (33,908)
Bond and capital lease principal retirement 11,382,162
Amortization of bond premiums 918,454
Amortization of deferred charges on refunding (379,666) 1,437,249
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. (2,816,512)
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. (19,852)
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. 4,453,915
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.(108,582)
Change in net position of governmental activities 22,317,645$
CITY OF ALLEN, TEXAS EXHIBIT 7
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
26
WATER AND SOLID GOLF INTERNAL SERVICE
SEWER WASTE DRAINAGE COURSE TOTAL FUNDS
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9,993,068$ 348,029$ 429,745$ 1,210,154$ 11,980,996$ 3,935,353$
Investments 25,520,169 2,819,444 888,724 - 29,228,337 19,243,160
Receivables, net of allowance for uncollectibles:
Accounts 9,627,124 814,898 242,690 10,249 10,694,961 190,044
Accrued interest 115,260 11,359 4,548 - 131,167 85,436
Other 469,712 143,082 407 100 613,301 -
Inventories 156,188 - - - 156,188 224,682
Restricted cash and cash equivalents 1,705,362 - - - 1,705,362 -
Total current assets 47,586,883 4,136,812 1,566,114 1,220,503 54,510,312 23,678,675
NONCURRENT ASSETS
CAPITAL ASSETS
Land 4,087,385 - - - 4,087,385 -
Construction in progress 8,428,355 - - - 8,428,355 -
Other improvements - - 496,132 - 496,132 -
Towers, tanks, and pump stations 208,392,264 - - - 208,392,264 -
Vehicles 835,663 140,440 151,554 - 1,127,657 5,808,405
Machinery and equipment 3,566,331 12,359 573,537 1,448,781 5,601,008 16,348,854
Total capital assets 225,309,998 152,799 1,221,223 1,448,781 228,132,801 22,157,259
Less: accumulated depreciation (102,853,222) (60,889) (679,946) (909,341) (104,503,398) (12,466,557)
Capital assets, net of accumulated depreciation 122,456,776 91,910 541,277 539,440 123,629,403 9,690,702
Total noncurrent assets 122,456,776 91,910 541,277 539,440 123,629,403 9,690,702
TOTAL ASSETS 170,043,659 4,228,722 2,107,391 1,759,943 178,139,715 33,369,377
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 91,920 - - - 91,920 -
Deferred outflows of resources - OPEB 14,889 1,791 1,767 4,517 22,964 -
Deferred outflows of resources - pension 1,130,667 142,994 136,041 334,479 1,744,181 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,237,476 144,785 137,808 338,996 1,859,065 -
AND NET POSITION
CURRENT LIABILITIES
Accounts payable 2,602,481 78,052 96,786 122,154 2,899,473 283,141
Accrued liabilities 222,234 44,600 27,090 63,787 357,711 74
Retainage payable 174,432 - - - 174,432 -
Accrued compensated absences - current 304,091 48,848 39,878 68,060 460,877 -
Incurred but not reported claims - - - - - 1,202,007
Payable from restricted assets:
Revenue bonds payable - current 1,043,937 - - - 1,043,937 -
Capital leases payable - current - - - 146,027 146,027 -
Accrued interest payable 169,309 - - - 169,309 -
Customer deposits payable 1,050,238 - - 30,680 1,080,918 -
Total current liabilities 5,566,722 171,500 163,754 430,708 6,332,684 1,485,222
NONCURRENT LIABILITIES
Revenue bonds payable 15,593,451 - - - 15,593,451 -
Capital leases payable - - - 423,155 423,155 -
Net OPEB liability 102,905 12,642 12,001 32,053 159,601 -
Net pension liability 2,755,396 333,180 304,706 796,525 4,189,807 -
Accrued compensated absences 93,312 32,739 29,798 130,268 286,117 -
Total noncurrent liabilities 18,545,064 378,561 346,505 1,382,001 20,652,131 -
TOTAL LIABILITIES 24,111,786 550,061 510,259 1,812,709 26,984,815 1,485,222
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 25,794 3,262 3,103 7,631 39,790 -
Deferred inflows of resources - OPEB 13,654 1,624 1,616 4,160 21,054 -
TOTAL DEFERRED INFLOWS OF RESOURCES 39,448 4,886 4,719 11,791 60,844 -
NET POSITION
Net investment in capital assets 112,856,180 91,910 541,277 (29,742) 113,459,625 9,690,702
Restricted for revenue bond principal and interest 571,053 - - - 571,053 -
Unrestricted 33,702,668 3,726,650 1,188,944 304,181 38,922,443 22,193,453
TOTAL NET POSITION 147,129,901$ 3,818,560$ 1,730,221$ 274,439$ 152,953,121$ 31,884,155$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
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, 2019
The Notes to Financial Statements are
an integral part of this statement.
27
Amounts reported for business-type activities in the statement of net
position are different because:
Total net position per statement of net position 152,953,121$
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. 1,318,176
Total net position of business-type activities 154,271,297$
CITY OF ALLEN, TEXAS EXHIBIT 9
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
28
GOVERNMENTAL
ACTIVITIES
WATER AND SOLID GOLF INTERNAL
SEWER WASTE DRAINAGE COURSE TOTAL SERVICE FUNDS
OPERATING REVENUES
Charges for sales and services:
Water sales 24,667,050$ -$ -$ -$ 24,667,050$ -$
Sewer charges 17,638,064 - - - 17,638,064 -
Connection fees 214,330 - - - 214,330 -
Garbage collections - 7,006,423 - - 7,006,423 -
Service charges 584,476 - 55,365 3,138,144 3,777,985 15,821,750
Drainage fees - - 1,708,329 - 1,708,329 -
Miscellaneous 320,388 36,500 4,617 35,214 396,719 2,092,047
Total operating revenues 43,424,308 7,042,923 1,768,311 3,173,358 55,408,900 17,913,797
OPERATING EXPENSES
Personnel services 5,607,601 704,073 705,101 1,704,203 8,720,978 367,131
Contractual services 30,648,905 5,398,811 249,069 1,070,418 37,367,203 13,119,165
Maintenance 579,321 9,421 147,710 173,402 909,854 -
Supplies 608,338 32,826 56,694 204,064 901,922 1,082
Depreciation 6,033,952 15,293 61,285 164,012 6,274,542 2,203,795
Other 712,478 87,611 177,076 16,828 993,993 -
Total operating expenses 44,190,595 6,248,035 1,396,935 3,332,927 55,168,492 15,691,173
OPERATING INCOME (LOSS)(766,287) 794,888 371,376 (159,569) 240,408 2,222,624
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 1,147,358 96,711 40,659 - 1,284,728 697,073
Interest expense (529,695) - - - (529,695) -
Loss on disposal of capital assets - - - - - (101,370)
Total non-operating revenues (expenses)617,663 96,711 40,659 - 755,033 595,703
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (148,624) 891,599 412,035 (159,569) 995,441 2,818,327
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees 3,950,040 - - - 3,950,040 -
Capital contributions 6,225,357 - - - 6,225,357 -
Transfers in 46,059 - - 423,963 470,022 1,868,755
Transfers out (4,083,414) (742,121) (347,401) - (5,172,936) (24,000)
Total capital contributions and transfers 6,138,042 (742,121) (347,401) 423,963 5,472,483 1,844,755
CHANGE IN NET POSITION 5,989,418 149,478 64,634 264,394 6,467,924 4,663,082
NET POSITION, BEGINNING OF YEAR 141,140,483 3,669,082 1,665,587 10,045 146,485,197 27,221,073
NET POSITION, END OF YEAR 147,129,901$ 3,818,560$ 1,730,221$ 274,439$ 152,953,121$ 31,884,155$
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, 2019
The Notes to Financial Statements are
an integral part of this statement.
29
Amounts reported for business-type activities in the statement of activities
are different because:
Net change in fund net position- total proprietary funds 6,467,924$
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. 209,167
Change in net position of business-type activities 6,677,091$
CITY OF ALLEN, TEXAS EXHIBIT 11
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
30
GOVERNMENTAL
ACTIVITIES
WATER AND SOLID GOLF INTERNAL
SEWER WASTE DRAINAGE COURSE TOTAL SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 41,021,566$ 7,132,108$ 1,785,800$ 3,174,613$ 53,114,087$ -$
Cash received from transactions with other funds - - - - - 17,833,455
Cash paid to employees for services (5,447,620) (671,644) (671,049) (1,638,544) (8,428,857) (363,946)
Cash paid for goods and services (32,003,787) (5,635,555) (633,578) (1,411,515) (39,684,435) (1,235,311)
Cash paid for claims - - - - - (11,982,548)
Net cash provided by operating activities 3,570,159 824,909 481,173 124,554 5,000,795 4,251,650
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 46,059 - - 423,963 470,022 1,868,755
Transfers out to other funds (4,083,414) (742,121) (347,401) - (5,172,936) (24,000)
Net cash provided by (used in)
non-capital financing activities (4,037,355) (742,121) (347,401) 423,963 (4,702,914) 1,844,755
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities (1,360,000) - - - (1,360,000) -
Interest and fees paid on long-term debt (483,788) - - - (483,788) -
Acquisition and construction of capital assets (5,440,898) - - (19,291) (5,460,189) (3,221,881)
Proceeds from sale of capital assets - - - - - 207,464
Capital lease payments - - - (150,209) (150,209) -
Proceeds from debt issuance 4,211,275 - - - 4,211,275 -
Contributions from developers 3,950,040 - - - 3,950,040 -
Net cash provided by (used in)
capital and related financing activities 876,629 - - (169,500) 707,129 (3,014,417)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities (3,492,544) (779,232) (72,288) - (4,344,064) (3,925,656)
Interest on investments 1,112,424 94,164 39,852 - 1,246,440 667,054
Net cash used in investing activities (2,380,120) (685,068) (32,436) - (3,097,624) (3,258,602)
NET CHANGE IN CASH AND CASH EQUIVALENTS (1,970,687) (602,280) 101,336 379,017 (2,092,614) (176,614)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 13,669,117 950,309 328,409 831,137 15,778,972 4,111,967
CASH AND CASH EQUIVALENTS, END OF YEAR 11,698,430$ 348,029$ 429,745$ 1,210,154$ 13,686,358$ 3,935,353$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net operating income (loss) (766,287)$ 794,888$ 371,376$ (159,569)$ 240,408$ 2,222,624$
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation and amortization expense 6,033,952 15,293 61,285 164,012 6,274,542 2,203,795
Change in assets and liabilities:
Accounts receivable (2,402,742) 89,183 17,490 (3,795) (2,299,864) (167,308)
Prepaids - - - 5,050 5,050 (184,996)
Inventories (49,786) - - - (49,786) -
Deferred outflows - pension (635,548) (82,737) (84,557) (191,483) (994,325) -
Deferred outflows - OPEB (7,145) (904) (860) (2,114) (11,023) -
Accounts payable 1,346,834 (102,993) (3,030) 64,358 1,305,169 177,535
Accrued liabilities 44,962 16,624 8,442 (424) 69,604 -
Net OPEB liability 9,146 1,157 1,100 2,706 14,109 -
Net pension liability 1,162,709 147,046 139,897 343,958 1,793,610 -
Compensated absences (52,831) (12,598) 10,577 15,637 (39,215) -
Deposits (753,931) - - (5,154) (759,085) -
Deferred inflows - pension (364,444) (40,717) (41,181) (110,187) (556,529) -
Deferred inflows - OPEB 5,270 667 634 1,559 8,130 -
Total adjustments 4,336,446 30,021 109,797 284,123 4,760,387 2,029,026
Net cash provided by operating activities 3,570,159$ 824,909$ 481,173$ 124,554$ 5,000,795$ 4,251,650$
NON-CASH INVESTING ACTIVITIES:
Change in the fair value of investments 357,398$ 33,504$ 13,409$ -$ 404,311$ 251,629$
NON-CASH FINANCING ACTIVITIES:
Contributions of capital assets from developers 6,225,357$ -$ -$ -$ 6,225,357$ -$
Reconciliation of total cash to the statement of net position
Cash and cash equivalents - current 9,993,068$ 348,029$ 429,745$ 1,210,154$ 11,980,996$ 3,935,353$
Restricted cash and cash equivalents 1,705,362 - - - 1,705,362 -
CASH AND CASH EQUIVALENTS, END OF YEAR 11,698,430$ 348,029$ 429,745$ 1,210,154$ 13,686,358$ 3,935,353$
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES
CITY OF ALLEN, TEXAS EXHIBIT 12
STATEMENT OF NET POSITION
COMPONENT UNITS
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
31
ALLEN ALLEN
ECONOMIC COMMUNITY
DEVELOPMENT DEVELOPMENT
CORPORATION CORPORATION TOTALS
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,374,770$ 2,018,976$ 3,393,746$
Investments 5,309,577 13,479,968 18,789,545
Sales tax receivable 1,825,969 1,825,969 3,651,938
Accounts receivable 562,185 - 562,185
Accrued interest receivable 27,175 63,363 90,538
Total current assets 9,099,676 17,388,276 26,487,952
NONCURRENT ASSETS
CAPITAL ASSETS
Land 18,309,096 2,239,201 20,548,297
Construction in progress - 3,818,707 3,818,707
Buildings 1,004,091 36,225,091 37,229,182
Machine & equipment - 2,926,235 2,926,235
Vehicles - 874,339 874,339
Improvements other than buildings - 33,863,285 33,863,285
Total capital assets 19,313,187 79,946,858 99,260,045
Less: accumulated depreciation (25,102) (29,255,728) (29,280,830)
Capital assets, net of accumulated depreciation 19,288,085 50,691,130 69,979,215
Total noncurrent assets 19,288,085 50,691,130 69,979,215
TOTAL ASSETS 28,387,761 68,079,406 96,467,167
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 430,136 486,080 916,216
TOTAL DEFERRED OUTFLOWS OF RESOURCES 430,136 486,080 916,216
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable 197,302 201,691 398,993
Retainage payable - 110,000 110,000
Accrued interest payable 51,116 54,541 105,657
Accrued and other liabilities 614,377 - 614,377
Current portion of long-term debt 3,302,998 1,755,000 5,057,998
Total current liabilities 4,165,793 2,121,232 6,287,025
NONCURRENT LIABILITIES
Noncurrent portion of long-term debt 10,295,307 24,315,000 34,610,307
Total noncurrent liabilities 10,295,307 24,315,000 34,610,307
TOTAL LIABILITIES 14,461,100 26,436,232 40,897,332
NET POSITION
Net investment in capital assets 18,153,221 25,107,210 43,260,431
Restricted for debt service 283,648 226,223 509,871
Unrestricted (deficit) (4,080,072) 16,795,821 12,715,749
TOTAL NET POSITION 14,356,797$ 42,129,254$ 56,486,051$
CITY OF ALLEN, TEXAS EXHIBIT 13
STATEMENT OF ACIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
32
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 8,256,674$ -$ -$ (8,256,674)$ -$ (8,256,674)$
Allen Community
Development Corporation 5,727,497 - - - (5,727,497) (5,727,497)
TOTAL COMPONENT UNITS 13,984,171$ -$ -$ (8,256,674)$ (5,727,497)$ (13,984,171)$
General revenues:
Sales taxes 10,602,827$ 10,602,827$ 21,205,654$
Interest on investments 333,724 459,937 793,661
Gain on disposition of capital assets 1,426,630 - 1,426,630
Miscellaneous 30,899 - 30,899
Total general revenues 12,394,080 11,062,764 23,456,844
CHANGE IN NET POSITION 4,137,406 5,335,267 9,472,673
NET POSITION, beginning of year 10,219,391 36,793,987 47,013,378
NET POSITION, end of year 14,356,797$ 42,129,254$ 56,486,051$
COMPONENT UNITS
CITY OF ALLEN, TEXAS EXHIBIT 14
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
33
OTHER
POSTEMPLOYMENT
BENEFITS
TRUST FUND
ASSETS
CURRENT ASSETS
Cash and deposits 130,464$
Investments:
Domestic Equities 334,511
Fixed Income 1,006,366
Private Equity 78,783
Real Estate 25,526
Total current assets 1,575,650
TOTAL ASSETS 1,575,650
NET POSITION
Restricted for postemployment benefits other than pensions 1,575,650
TOTAL NET POSITION 1,575,650$
CITY OF ALLEN, TEXAS EXHIBIT 15
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2019
The Notes to Financial Statements are
an integral part of this statement.
34
OTHER
POSTEMPLOYMENT
BENEFITS
TRUST FUND
ADDITIONS
Investment Income:
Net increase in fair value of investments 66,177$
Net Investment Income 66,177
TOTAL ADDITIONS 66,177
DEDUCTIONS
Benefit payments 142,438
Administrative expense 8,119
TOTAL DEDUCTIONS 150,557
CHANGE IN NET POSITION (84,380)
NET POSITION, BEGINNING OF YEAR 1,660,030
NET POSITION, END OF YEAR 1,575,650$
NOTES TO FINANCIAL STATEMENTS
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
35
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
36
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
The members of both the AEDC’s and ACDC’s Boards of Directors are appointed by the City
Council. Both the AEDC and ACDC are fiscally dependent upon the City as the City Council
approves their budgets and must approve any debt issuance. However, the component units
do not qualify for blending because the component services directly benefit the community
rather than the City itself. The AEDC and ACDC are discretely presented as governmental fund
types and do not issue separate financial statements.
Basis of Presentation
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all 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 and proprietary funds. These statements present each
major fund as a separate column on the fund financial statements; all nonmajor funds are
aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds is on the sources, uses and balances
of current financial resources. The City has presented the following major governmental funds:
General Fund -
The General Fund is the general operating fund of the City. It is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that
are not restricted by law or contractual agreement to some other fund are accounted for in this
fund. General operating expenditures, fixed charges and capital improvement costs that are
not paid through other funds are paid from the General Fund.
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
37
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
General Capital Projects Fund -
The General Capital Projects Fund is used to account for resources used for the acquisition
and/or construction of capital facilities by the City, except those financed by proprietary funds
and not accounted for by another capital projects fund.
General Obligation Bond Capital Projects Fund -
To account for financing, acquisitions, and construction of improvements to City facilities and
infrastructure not accounted for by other bond funds.
Business-type activities and all Proprietary 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 debt principal
and interest for water and sewer debt. All costs are financed through charges to utility
customers with rates reviewed regularly and adjusted, if necessary, to ensure integrity of the
fund.
Solid Waste Fund -
The Solid Waste Fund is used to account for the provision of solid waste services to residents
of the City.
Drainage Fund -
The Drainage Fund is used to account for the provision of developing and maintaining proper
drainage services to the residents of the City.
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
38
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
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.
Fiduciary Fund –
The City’s Fiduciary Funds 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.
These funds are 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 are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual,
i.e., when they become both measurable and available. “Measurable” means the amount of the
transaction can be determined and “available” means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current period. The City considers all revenues
as available if they are collected within 60 days after year end.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus and Basis of Accounting – Continued
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest
on general long-term debt which is recognized when due, and certain compensated absences and
claims and judgments which are recognized when the obligations are expected to be liquidated
with expendable available financial resources. The revenues susceptible to accrual are property
and sales taxes, franchise taxes and interest income. Other receipts (special assessments)
become measurable and available when cash is received by the City and are recognized as
revenue at that time.
Cash, Cash Equivalents, and Investments
State statutes and policy as established by the City Council authorize the City to invest in
certificates of deposit, direct obligations of the U.S. Treasury, investment pools consisting of such
U.S. Treasury obligations, repurchase agreements, commercial paper and mutual funds.
Substantially all operating cash and cash equivalents are maintained in pooled cash and time
deposit accounts. Interest income relating to pooled deposits is allocated to the individual funds
based on each fund’s pro rata share of total pooled deposits.
For purposes of the statement of cash flows, the proprietary funds consider all highly liquid
investments (including restricted assets) with an original maturity of three months or less when
purchased to be cash equivalents, as they are available for withdrawal on demand. Investments
are recorded at amortized cost when original maturity at the time of purchase is less than one year
or at market if greater than one year.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation,
is utilized in the governmental funds. Under the City’s budgetary process, appropriations lapse at
fiscal year-end. Encumbrances are reported as assigned fund balance because they do not
constitute expenditures or liabilities.
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 2018 levy was based
is $13,284,616,133. 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. The combined tax rate to
finance general governmental services including the payment of principal and interest on long-term
debt for the year ended September 30, 2019, was $0.4980 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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
40
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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, 2019,
ACDC contributed $446,307 and AEDC contributed $101,889 to the General Fund for
administrative costs and for the Allen U.S.A. Celebration. These revenues were reflected as grants
and contributions for the primary government in the government-wide statement of activities.
Inventories and Prepaid Items
Inventories are valued at cost using the average cost method. The inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
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 to the value of the asset or materially extend the asset lives are not capitalized.
Renewals and betterments are capitalized. Interest has not been capitalized during the
construction period on property, plant and equipment.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
41
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Capital Assets - Continued
Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Depreciation has been calculated on each class of depreciable property using the straight-line
method. Estimated useful lives are as follows:
Buildings 15 - 40 Years
Towers, tanks, and pump stations 30 Years
Infrastructure 10 - 50 Years
Machinery and equipment 3 - 15 Years
Vehicles 2 - 15 years
Library books 5 Years
Furniture and fixture 5 Years
Other improvements 2 - 30 Years
The City has established the Replacement Fund to account for the replacement of the City-owned
vehicle, machinery, and equipment. Charges for use in the form of user payments are made by
City departments to the Replacement Fund to provide for future acquisitions and replacements.
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. 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, in compliance
with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial
Reporting for Pensions.
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
42
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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 position 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.
Pension contributions after measurement date – These contributions are deferred and
recognized in the following fiscal year.
Difference in projected and actual earnings on pension assets – This difference is deferred
and amortized over a closed five-year period.
Difference between expected and actual pension experience – This difference is deferred
and amortized over a closed period of 5.49 years.
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 position 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 experience and the changes in actuarial
assumptions. 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. 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 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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
43
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance – Continued
Restricted -- includes fund balance amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts restricted due to constitutional
provisions or enabling legislation. This classification includes retirement of long-term debt,
construction programs, and other federal and state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the City through formal action of the highest level of decision-making
authority. Committed fund balance is reported pursuant to resolution passed by the City Council.
Assigned -- includes fund balance amounts that are self-imposed by the City to be used for a
particular purpose. Fund balance can be assigned by the City Manager or the Chief Financial
Officer. This classification includes insurance deductibles, encumbrances, program start-up costs,
projected budget deficit for subsequent years and other legal uses.
Unassigned -- includes residual positive fund balance within the General Fund which has not been
classified within the other above-mentioned categories. Unassigned fund balance may also include
negative balances for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those specific purposes.
When multiple categories of fund balance are available for expenditure, the City will start with the
most restricted category and spend those funds first before moving down to the next category with
available funds.
Minimum General Fund Unassigned Fund Balance - It is the goal of the City to achieve and maintain
an unassigned General Fund balance that is within a range of 60 to 90 days of annual expenditures.
If unassigned General Fund balance falls below the goal or has a deficiency, the City will establish
a timeframe and work plan to replenish the fund balance. The work plan may include tax increases,
fee increases, reduction of services, and/or reduction of expenditures (i.e. hiring freeze, salary
freeze, or reduction of travel/training).
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES
Deposits – State statutes require that all deposits be fully collateralized by U.S. Government
obligations or obligations of Texas and its agencies that have a market value of not less than the
principal amount of the deposits.
The City’s demand deposits and certificates of deposit were fully insured or collateralized at
September 30, 2019, with collateral required by state statutes. At year’s end, the carrying amount of
the City’s deposits was $2,278,911, and the bank balance was $2,355,541. 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, 2019, was $45,851.
The carrying amount of deposits for ACDC and AEDC, discretely presented component units, were
$296,414 and $449,265, respectively, with no corresponding bank balances as they are pooled with
the City’s deposits. AEDC’s petty cash balance at September 30, 2019, was $100.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
44
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES – CONTINUED
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 Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports, and establishment of appropriate policies. Among
other things, the Public Funds Investment Act requires the City to adopt, implement, and publicize an
investment policy. In compliance with the Public Funds Investment Act, the City has adopted a deposit
and investment policy. 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 None
Repurchase Agreements 5 years None
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 None
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 None
Bankers’ Acceptance 5 years None
Guaranteed Investment Contracts 5 years None
State or Local Governmental Obligations 5 years None
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 which establishes a three-level fair value hierarchy that
describes the inputs that are 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.
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
45
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES – CONTINUED
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 Postemployment September 30, Inputs Government-wide Avg. Maturity Credit
Type Government AEDC ACDC Benefits Trust 2019 (Level 2) Investments (Years) Rating
Government-wide:
Investments Measured at Amortized Cost:
TexPool 1,908,484$ 925,405$ 1,722,562$ -$ 4,556,451$ -$ 2.55% 0.09 AAAm
TexSTAR 3,141,588 - - - 3,141,588 - 1.76% 0.06 AAAm
Investments Measured at NAV:
Money Market Accounts 1,614,224 - - - 1,614,224 - 0.90% 0.07 AAAm
Texas CLASS 19,870,551 - - - 19,870,551 - 11.13% 0.14 AAAm
Investments Measured at Cost:
Certificates of Deposit 18,836,227 759,634 1,771,185 - 21,367,046 - 11.97% 1.58 n/a
Investments Subject to Fair Value:
U.S. Agencies 41,099,740 1,657,485 3,864,641 - 46,621,866 46,621,866 26.11% 1.66 AA+
Certificates of Deposit 13,068,113 527,015 1,228,805 - 14,823,933 14,823,933 8.30% 2.80 n/a
Commercial Paper 900,327 35,544 63,911 - 999,782 999,782 0.56% 0.00 A1, P1
Municipal Bonds 56,654,252 2,329,899 6,551,426 - 65,535,577 65,535,577 36.71% 1.24 A to AAA
PARS OPEB Trust Program:
Domestic Equities - - - 334,511 334,511 -
Fixed Income - - - 1,006,368 1,006,368 -
Private Equity - - - 78,783 78,783 -
Real Estate - - - 25,526 25,526 -
Total Government-wide
Plus PARS OPEB Trust 157,093,506$ 6,234,982$ 15,202,530$ 1,445,188$ 179,976,206$ 127,981,158$
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 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.
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
46
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES – CONTINUED
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 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, 2019.
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. As of
September 30, 2019, apart from funds invested in TexPool, TexSTAR, or Texas CLASS, the
following table represents 5% or more of the City’s investments.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
47
NOTE 2. DEPOSITS, INVESTMENTS AND INVESTMENT POLICIES – CONTINUED
Concentration of Credit Risk - Continued
Issuer Investment Type Reported Amount Percentage
FNMA Federal agency securities 9,125,481$ 5.11%
FFCB Federal agency securities 10,483,301 5.87%
FHLB Federal agency securities 18,000,603 10.08%
FHLMC Federal agency securities 9,012,481 5.05%
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover deposits or will not be able to recover
collateral securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to
a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The City’s investment policy minimizes
custodial credit risk by requiring pledged securities to be in the name of the City.
The Public Funds Investment Act does require that financial institutions secure deposits made by
state or local governmental bodies by pledging securities in an undivided collateral pool held by a
depository regulated under state law. The market value of the pledged securities of the collateral
must always remain at least equivalent to the bank balance less the FDIC insurance.
As of September 30, 2019, the City’s deposits with financial institutions above the federal
depository limits were fully collateralized.
NOTE 3. RECEIVABLES
Receivables at September 30, 2019, 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 580,112$ 3,769,763$ 330,448$ 222,606$ 4,903,688$ 9,806,617$
Debt Service 106,136 - - - - 106,136
General Capital Projects - - - 115,935 312,683 428,618
G.O. Bond Fund - - - 79,673 15,600 95,273
Nonmajor Governmental Funds - - 326,355 38,703 - 365,058
Water and Sewer Fund - - 9,763,734 115,260 469,712 10,348,706
Solid Waste Fund - - 843,233 11,359 143,082 997,674
Drainage Fund - - 249,220 4,548 407 254,175
Golf Course Fund - - 10,249 - 100 10,349
Internal Service Funds - - 190,044 85,436 - 275,480
Gross Receivables 686,248 3,769,763 11,713,283 673,520 5,845,272 22,688,086
Less: Allowance for
Uncollectibles (512,616) - (171,475) - (1,951,465) (2,635,556)
Total Net Receivables,
Primary Government 173,632$ 3,769,763$ 11,541,808$ 673,520$ 3,893,807$ 20,052,530$
Component Units -$ 3,651,938$ 562,185$ 90,538$ -$ 4,304,661$
The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include
unbilled charges for services rendered through September 30, 2019.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
48
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2019, was as follows:
Governmental Activities
Balance Balance
September 30, Adjustments/ September 30,
2018 Additions Dispositions Transfers 2018
Governmental Funds:-
General capital assets
not being depreciated:
Land and land improvements 143,531,148$ 5,084,547$ -$ -$ 148,615,695$
Construction in progress 18,293,075 10,424,349 - (6,776,821) 21,940,603
Total capital assets
not being depreciated 161,824,223 15,508,896 - (6,776,821) 170,556,298
General capital assets
being depreciated:
Buildings 101,175,168 - - - 101,175,168
Improvements
other than buildings 510,198,454 14,661,400 (4,252,618) 6,776,821 527,384,057
Furniture and fixtures 7,278,895 56,001 (2,689,003) - 4,645,893
Vehicles 2,117,112 86,374 (500,867) - 1,702,619
Library books 730,141 (222,702) - 507,439
Machinery and equipment 9,131,863 828,802 (1,455,741) - 8,504,924
Total capital assets being
depreciated 630,631,633 15,632,577 (9,120,931) 6,776,821 643,920,100
Less accumulated
depreciation for:
Buildings (30,971,099) (2,566,082) - - (33,537,181)
Improvements
other than buildings (297,623,146) (18,097,907) 4,252,618 - (311,468,435)
Furniture and fixtures (7,212,781) (9,660) 2,689,003 - (4,533,438)
Vehicles (1,440,789) (186,397) 477,535 - (1,149,651)
Library books (626,678) (77,104) 222,702 - (481,080)
Machinery and equipment (8,203,297) (308,863) 1,455,741 - (7,056,419)
Total accumulated
depreciation (346,077,790) (21,246,013) 9,097,599 - (358,226,204)
Total general capital assets
being depreciated, net 284,553,843 (5,613,436) (23,332) 6,776,821 285,693,896
General capital assets, net 446,378,066$ 9,895,460$ (23,332)$ -$ 456,250,194$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
49
NOTE 4. CAPITAL ASSETS – CONTINUED
Balance Balance
September 30, Adjustments/ September 30,
2018 Additions Dispositions Transfers 2019
Internal Service Funds:
Internal service funds assets
not being depreciated:
Construction in progress 352,367$ -$ -$ (352,367)$ -$
Total capital assets
not being depreciated 352,367 - - (352,367) -
Internal service funds
assets being depreciated:
Vehicles 14,440,981 3,216,381 (1,660,875) 352,367 16,348,854
Machinery and equipment 6,004,332 5,500 (201,427) - 5,808,405
Total internal service
assets being depreciated 20,445,313 3,221,881 (1,862,302) 352,367 22,157,259
Less accumulated
depreciation for:
Vehicles (8,575,836) (1,713,682) 1,352,041 - (8,937,477)
Machinery and equipment (3,240,394) (490,113) 201,427 - (3,529,080)
Total accumulated
depreciation (11,816,230) (2,203,795) 1,553,468 - (12,466,557)
Total Internal service funds
capital assets being depreciated, net 8,629,083 1,018,086 (308,834) 352,367 9,690,702
Total Internal service funds
capital assets, net 8,981,450 1,018,086 (308,834) - 9,690,702
Governmental activities
capital assets, net $ 455,359,516 $ 10,913,546 (332,166)$ -$ $ 465,940,896
Business-Type Activities
Balance Balance
September 30, Adjustments/ September 30,
2018 Additions Dispositions Transfers 2019
Water and Sewer Activities:
Capital assets not being depreciated:
Land 4,072,882$ 14,503$ -$ -$ 4,087,385$
Construction in progress 3,688,178 5,310,939 - (570,762) 8,428,355
Total capital assets not
being depreciated 7,761,060 5,325,442 - (570,762) 12,515,740
Capital Assets Being depreciated:
Towers, tanks, & pumps stations 201,770,563 6,225,357 (174,418) 570,762 208,392,264
Machinery and equipment 3,893,589 63,560 (390,818) - 3,566,331
Vehicles 947,953 51,894 (164,184) - 835,663
Total capital assets
being depreciated 206,612,105 6,340,811 (729,420) 570,762 212,794,258
Less accumulated depreciation for:
Towers, tanks, & pumps stations (94,046,207) (5,650,930) 174,418 - (99,522,719)
Machinery and equipment (2,736,891) (342,177) 390,818 - (2,688,250)
Vehicles (765,592) (40,845) 164,184 - (642,253)
Total accumulated
depreciation (97,548,690) (6,033,952) 729,420 - (102,853,222)
Total capital assets
being depreciated, net 109,063,415 306,859 - 570,762 109,941,036
Water and sewer activities
capital assets, net 116,824,475$ 5,632,301$ -$ -$ 122,456,776$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
50
NOTE 4. CAPITAL ASSETS – CONTINUED
Balance Balance
September 30, September 30,
2018 Additions Dispositions 2019
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 - - 152,799
Less accumulated depreciation for:
Machinery and equipment (10,486) (1,249) - (11,735)
Vehicles (35,110) (14,044) - (49,154)
Total accumulated
depreciation (45,596) (15,293) - (60,889)
Solid waste activities
capital assets, net 107,203$ (15,293)$ -$ 91,910$
Drainage Activities:
Capital assets being depreciated:
Other improvements 496,132$ -$ -$ 496,132$
Vehicles 151,554 - - 151,554
Machinery and equipment 573,537 - - 573,537
Total capital assets
being depreciated 1,221,223 - - 1,221,223
Less accumulated
depreciation for:
Other improvements (190,093) (12,264) - (202,357)
Vehicles (50,502) (13,473) - (63,975)
Machinery and equipment (378,066) (35,548) - (413,614)
Total accumulated
depreciation (618,661) (61,285) - (679,946)
Drainage activities
capital assets, net 602,562$ (61,285)$ -$ 541,277$
Golf Course Activities:
Capital assets being depreciated:
Machinery and equipment 1,429,490$ 19,291$ -$ 1,448,781$
Total capital assets
being depreciated 1,429,490 19,291 - 1,448,781
Less accumulated
depreciation for:
Machinery and equipment (745,329) (164,012) - (909,341)
Total accumulated
depreciation (745,329) (164,012) - (909,341)
Golf course activities
capital assets, net 684,161 (144,721) - 539,440
Business-type activities
capital assets, net 118,218,401$ 5,411,002$ -$ 123,629,403$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
51
NOTE 4. CAPITAL ASSETS – CONTINUED
Balance Balance
September 30, Adjustments/ September 30,
2018 Additions Dispositions Transfers 2019
Economic Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 14,621,471$ 4,810,039$ (1,122,414)$ -$ 18,309,096$
Total capital assets
not being depreciated 14,621,471 4,810,039 (1,122,414) - 18,309,096
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 - (25,102) - - (25,102)
Total accumulated depreciation - (25,102) - - (25,102)
Total capital assets being depreciated, net - 978,989 - - 978,989
Economic Development Corporation
capital assets, net 14,621,471$ 5,789,028$ (1,122,414)$ -$ 19,288,085$
Community Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 2,239,201$ -$ -$ -$ 2,239,201$
Construction in progress 3,757,489 61,218 - - 3,818,707
Total capital assets
not being depreciated 5,996,690 61,218 - - 6,057,908
Capital assets being depreciated:
Buildings 36,225,091 - - - 36,225,091
Machine & Equipment 2,484,221 523,207 (81,193) - 2,926,235
Improvements other than buildings 33,977,616 - (114,331) - 33,863,285
Furniture and fixtures 317,194 - (317,194) - -
Vehicles 734,305 140,034 - - 874,339
Total capital assets being
depreciated 73,738,427 663,241 (512,718) - 73,888,950
Less accumulated depreciation for:
Buildings (7,943,643) (913,927) 81,193 - (8,776,377)
Machine & Equipment (1,811,531) (245,411) 114,331 - (1,942,611)
Improvements other than buildings (15,806,540) (2,055,768) 317,194 - (17,545,114)
Furniture and fixtures (317,194) - - - (317,194)
Vehicles (635,364) (39,068) - - (674,432)
Total accumulated depreciation (26,514,272) (3,254,174) 512,718 - (29,255,728)
Total capital assets being depreciated, net 47,224,155 (2,590,933) - - 44,633,222
Community Development Corporation
capital assets, net 53,220,845 (2,529,715) - - 50,691,130
Component units capital assets, net 67,842,316$ 3,259,313$ (1,122,414)$ -$ 69,979,215$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
52
NOTE 4. CAPITAL ASSETS – CONTINUED
Depreciation expense was charged as direct expense to programs of the primary government and
component units as follows:
Governmental activities:
General government 1,157,325$
Public safety 873,914
Public works 15,868,081
Culture and recreation 3,332,818
Community development 13,875
Total depreciation expense - General capital assets 21,246,013
Internal Service Funds 2,203,795
Total depreciation expense - Governmental activities 23,449,808$
Business-type activities:
Water and sewer 6,033,952$
Solid waste 15,293
Drainage utility 61,285
Golf course 164,012
Total depreciation expense - Business-type activities 6,274,542$
Component units:
Allen Economic Development Corporation 25,102$
Allen Community Development Corporation 3,254,174
Total depreciation expense - Component units 3,279,276$
Outstanding commitments at September 30, 2019, under authorized construction contracts totaled
$3,318,823. 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, 2019, 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 $115,000 through August 15, 2026;
interest at 4.0% to 4.2%. 710,000$
$12,000,000 Series 2010 Bonds due in annual installments
of $370,000 to $865,000 through August 15, 2029;
interest at 2.0% to 4.0%. 7,295,000
$8,785,000 Series 2010A Refunding Bonds due in annual
installments of $110,000 to $970,000 through August 15,
2022; interest at 2.0% to 3.0%. 2,820,000
$8,840,000 Series 2011 Refunding and Improvement Bonds
due in annual installments of $255,000 to $795,000 through
August 15, 2030; interest at 2.0% to 4.25%. 3,830,000
$13,865,000 Series 2012 Refunding and Improvement Bonds
due in annual installments of $350,000 to $1,600,000 through
August 15, 2024; interest at 2.0% to 5.0%. 7,140,000
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
53
NOTE 5. LONG-TERM DEBT – CONTINUED
General Obligation Bonds – continued
$5,065,000 Series 2013 Bonds due in annual installments
of $190,000 to $340,000 through August 15, 2032;
interest at 2.0% to 3.5%. 3,725,000$
$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%. 8,360,000
$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%. 17,680,000
$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%. 10,070,000
$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%. 7,645,000
$8,630,000 Series 2019 Refunding and Improvement Bonds
due in annual installments of $370,000 to $2,165,000 through
August 15, 2034; interest at 2.5% to 4.0%. 8,630,000
Unamortized premium on general obligation bonds. 7,651,739
91,466,739$
Tax Notes:
$2,600,000 Series 2019 Tax Notes due in annual
installments of $855,000 to $880,000 through
August 15, 2022; interest at the rate of 1.75%. 2,600,000$
2,600,000$
Water and Sewer Revenue Bonds:
$3,370,000 Series 2013 Refunding Bonds due in installments
of $90,000 to $385,000 through June 1, 2025; with
interest at the rate of 2.0% to 3.0%. 2,065,000$
$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%. 585,000
$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%. 9,040,000
$3,845,000 Series 2019 Bonds due in installments
of $150,000 to $265,000 through June 1, 2039; with
interest at the rate of 2.0% to 4.0%. 3,845,000
Unamortized premium on water and sewer revenue bonds. 1,102,388
16,637,388$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
54
NOTE 5. LONG-TERM DEBT – CONTINUED
AEDC Sales Tax Revenue Bonds:
$11,810,000 Series 2017A Refunding Bonds due in
annual installments of $880,000 to $1,335,000 through
September 1, 2027; interest at 2.0% to 5.0%. 9,080,000$
$6,140,000 Series 2017B Sales Tax Revenue Bonds
due in annual installments of $1,510,000 to $1,565,000
through September 1, 2020; interest at 1.25% to 2.3%. 1,565,000
Unamortized premium on AEDC sales tax revenue bonds. 992,689
11,637,689$
AEDC Promissory Note:
$4,400,000 Promissory Note due in annual installments
of $679,853 through June 11, 2022; interest at 2.00%. 1,960,616$
1,960,616$
ACDC Sales Tax Revenue Bonds:
$31,235,000 Series 2016 Refunding Bonds due in
annual installments of $1,715,000 to $3,825,000 through
September 1, 2025; interest at 0.750% to 2.353%. 26,070,000$
26,070,000$
The following is a summary of long-term debt transactions, including current portion, of the City for the
year ended September 30, 2019:
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Governmental Activities
General obligation bonds 86,785,000$ 8,630,000$ (11,600,000)$ 83,815,000$ 10,210,000$
Tax notes 635,000 2,600,000 (635,000) 2,600,000 855,000
Capital lease payable 864,245 33,908 (822,162) 75,991 29,986
Premiums (discounts)7,675,400 894,793 (918,454) 7,651,739 965,675
Compensated absences 6,368,701 4,142,287 (3,474,487) 7,036,501 3,639,476
Net OPEB liability 1,195,620 114,759 - 1,310,379 -
Net pension liability 19,444,403 14,588,349 - 34,032,752 -
Governmental activity
long-term debt 122,968,369$ 31,004,096$ (17,450,103)$ 136,522,362$ 15,700,137$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
55
NOTE 5. LONG-TERM DEBT – CONTINUED
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 13,050,000$ 3,845,000$ (1,360,000)$ 15,535,000$ 965,000$
Capital lease payable 719,391 - (150,209) 569,182 146,027
Premiums (discounts) 800,800 366,275 (64,687) 1,102,388 78,937
Net pension liability 2,396,197 1,793,610 - 4,189,807 -
Net OPEB liability 145,492 14,109 - 159,601 -
Compensated absences 786,209 398,125 (437,340) 746,994 460,877
Business-type activity long-term debt 17,898,089$ 6,417,119$ (2,012,236)$ 22,302,972$ 1,650,841$
Component Units
Allen Community Development Corporation
Sales tax revenue bonds 27,805,000$ -$ (1,735,000)$ 26,070,000$ 1,755,000$
ACDC long-term debt 27,805,000$ -$ (1,735,000)$ 26,070,000$ 1,755,000$
Allen Economic Development Corporation
Sales tax revenue bonds 13,120,000$ -$ (2,475,000)$ 10,645,000$ 2,530,000$
Note payable 2,588,695 - (628,079) 1,960,616 640,640
Premiums (discounts) 1,125,047 - (132,358) 992,689 132,358
AEDC long-term debt 16,833,742$ -$ (3,235,437)$ 13,598,305$ 3,302,998$
Component units long-term debt 44,638,742$ -$ (4,970,437)$ 39,668,305$ 5,057,998$
Bond Issuances
On July 11, 2019, the City issued City of Allen, Texas General Obligation Improvement and Refunding
Bonds, Series 2019, in the amount of $8,630,000, to make improvements to existing City facilities,
streets, drainage, park and recreational facilities, public art projects, and public safety facilities; and to
refund all future debt service payments of $1,708,501 related to the City of Allen, Texas General
Obligation Bonds, Series 2009. Total bond proceeds in the amount of $9,524,792 include a premium
of $894,792. Expenses incurred to deliver the Series 2019 bonds, including issuance costs,
underwriter’s discount, and agents’ fees amounted to $157,274. The Series 2019 bonds incur an
average cost over the life of the debt at a rate of 2.00%-4.00% and mature annually, with semi-annual
interest payments.
The reacquisition price exceeded the net carrying amount of the old debt by $3,109. This amount is
being netted against the new debt and amortized over the remaining life of the refunding Series 2009
bonds. The City refunded the series 2009 bonds to reduce its total debt service payments over two
years by $49,857 and to obtain an economic gain (difference between the present values of the debt
service payments on the old and new debt) of $34,098.
Also, on July 11, 2019, the City issued City of Allen, Texas Waterworks and Sewer System Revenue
Bonds, Series 2019, in the amount of $3,845,000, to make improvements to the existing water and
sewer systems of the City. The bonds incur an average cost over the life of the bonds at a rate of 2.00-
4.00% and mature annually with semi-annual interest payments. The bonds will fully mature in 2039.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
56
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations
The City intends to retire all its general long-term liabilities, plus accrued interest, from ad valorem taxes
and other current revenues. The proprietary fund type long-term debt, plus accrued interest, will be
repaid from operating revenues of the Water and Sewer Fund. The annual aggregate maturities for
each bond type for the years subsequent to September 30, 2019, are on the following pages.
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2020 10,210,000$ 3,271,477$ 13,481,477$
2021 7,760,000 2,852,364 10,612,364
2022 8,000,000 2,565,781 10,565,781
2023 7,255,000 2,308,936 9,563,936
2024 7,010,000 2,026,058 9,036,058
2025 - 2029 28,815,000 6,184,117 34,999,117
2030 - 2034 14,765,000 1,465,700 16,230,700
Total 83,815,000$ 20,674,433$ 104,489,433$
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
2020 855,000$ 43,731$ 898,731$
2021 865,000 30,538 895,538
2022 880,000 15,400 895,400
Total 2,600,000$ 89,669$ 2,689,669$
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
2020 965,000$ 536,610$ 1,501,610$
2021 965,000 528,073 1,493,073
2022 975,000 505,169 1,480,169
2023 995,000 480,216 1,475,216
2024 1,040,000 454,758 1,494,758
2025 - 2029 3,205,000 1,917,250 5,122,250
2030 - 2034 3,635,000 1,214,300 4,849,300
2035 - 2039 3,755,000 409,000 4,164,000
Total 15,535,000$ 6,045,376$ 21,580,376$
Business-type Activities
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
57
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
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
2020 2,530,000$ 470,295$ 3,000,295$
2021 1,005,000 395,700 1,400,700
2022 1,045,000 355,500 1,400,500
2023 1,100,000 303,250 1,403,250
2024 1,150,000 248,250 1,398,250
2025 - 2027 3,815,000 387,750 4,202,750
Total 10,645,000$ 2,160,745$ 12,805,745$
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 Total
2020 1,755,000$ 654,489$ 2,409,489$
2021 1,785,000 626,866 2,411,866
2022 1,815,000 595,735 2,410,735
2023 1,850,000 560,560 2,410,560
2024 1,890,000 521,193 2,411,193
2025 - 2029 10,170,000 1,890,383 12,060,383
2030 - 2032 6,805,000 427,030 7,232,030
Total 26,070,000$ 5,276,256$ 31,346,256$
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
2020 640,640$ 39,212$ 679,852$
2021 653,453 26,400 679,853
2022 666,522 13,330 679,852
Total 1,960,615$ 78,942$ 2,039,557$
AEDC
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
58
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
A schedule of authorized but unissued direct General Obligation Bonds as of September 30, 2019,
is as follows:
Date of Original Amount Issued in Issued Unissued
Purpose Authorization Authorized Prior Fiscal Years in 2019 Balance
Service Center Facilities 5/12/2007 $ 14,500,000 $ 12,500,000 -$ $ 2,000,000
Library 5/7/2016 16,045,000 831,000 - 15,214,000
Streets and Drainage 5/7/2016 23,890,000 9,782,810 2,386,190 11,721,000
Parks 5/7/2016 27,000,000 - 2,000,000 25,000,000
Public Art Projects 5/7/2016 1,770,000 - 500,000 1,270,000
Public Safety 5/7/2016 24,445,000 11,200,000 1,800,000 11,445,000
$ 107,650,000 $ 34,313,810 $ 6,686,190 $ 66,650,000
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 $571,053 at September 30, 2019, 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, 2019, of $1,705,362 are adequate to meet the reserve requirements.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
59
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Water and Sewer Revenue Bonds – Continued
At September 30, 2019, restricted assets, which include amounts in the Water and Sewer Revenue
Bond Debt Service and the Revenue Bond Reserve Fund, were as follows:
Revenue bond reserve fund 1,102,069$
Revenue bond debt service 603,293
1,705,362$
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds 1,705,362$
Accrued interest, payable from restricted assets (169,309)
Current maturities of revenue bonds,
payable from restricted assets (965,000)
Reserved for water and sewer revenue bonds principal and interest 571,053$
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, 2019, the capitalized costs of the governmental leased
property and business-type leased property under capital leases were $1,809,530 and $1,429,490,
respectively.
The terms of the leases range from 3 - 5 years and call for monthly and annual payments over the
life of the leases. The future minimum lease payments under the capitalized leases and the net
present value of the future minimum lease payments at September 30, 2019, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total Principal Interest Total
2020 29,986$ 2,275$ 32,261$ 146,027$ 18,686$ 164,713$
2021 33,490 1,004 34,494 144,278 13,334 157,612
2022 12,515 267 12,782 149,752 7,859 157,611
2023 - - - 129,125 2,218 131,343
Total 75,991$ 3,546$ 79,537$ 569,182$ 42,097$ 611,279$
Governmental Activities Business-type Activities
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
60
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Operating Leases
The City leases machinery and equipment under non-cancelable operating leases. Total cost for
such leases was $576,823 for the fiscal year ended September 30, 2019. Future minimum lease
payments, by year and in the aggregate, under the non-cancelable lease commitments are as follows:
Fiscal Year Ending
September 30, Amount
2020 428,262$
2021 222,933
2022 124,105
2023 110,582
2024 55,200
Total 941,082$
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, 2019, were as follows:
Fund Transfers In Transfers Out
Major Governmental Funds :
General Fund 4,911,714$ 8,208,513$
General Capital Projects 6,500,000 -
General Obligation Bonds - 245,000
11,411,714 8,453,513
Nonmajor Governmental Funds:
Grants and Special Revenue 514 100,556
Total Nonmajor Governmental Funds 514 100,556
Major Enterprise Funds :
Water and Sewer Fund 46,059 4,083,414
Solid Waste Fund - 742,121
Drainage Utility Fund - 347,401
Golf Course Fund 423,963 -
Total Major Enterprise Funds 470,022 5,172,936
Internal Service Funds:
Facility Maintenance Fund 1,334,500 20,000
Risk Management Fund 534,255 4,000
Total Internal Service Funds 1,868,755 24,000
Total Transfers $ 13,751,005 $ 13,751,005
Total Major Governmental Funds
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
61
NOTE 6. INTERFUND TRANSFERS – CONTINUED
Transfers are used to 1) move amounts from funds receiving administrative and operating support to
the appropriate fund incurring the administrative and operating costs and 2) to move unrestricted funds
to finance various programs that the City must account for in other funds in accordance with budgetary
authorizations, including amounts provided as subsidies or matching funds for various grant programs
and to support cash financing of capital projects.
The fund financial statements show:
Governmental funds: Total transfers in of $11,412,228 into the governmental funds were made
to fund capital projects, provide funds for grant-matching expenditures, and provide funding for
technology, procurement, human resources, building maintenance, financial, and
administrative support. Transfers out totaling $8,544,069 includes cash financing for capital
projects, operational support for the Golf Course Fund, and support to programs recorded in
non-major governmental and internal service funds.
Proprietary funds: Total transfers in of $470,022 into the enterprise funds mainly represents
amounts transferred into the Golf Course to support operations. The total transfers out of
$5,172,936 represents the amount provided by other funds for technology, procurement,
human resources, building maintenance, financial and administrative support. The internal
service funds total transfer in of $1,868,755 represents the amounts needed for repairs of aging
facility infrastructure and administrative support, and total transfers out of $24,000 represents
the amounts needed in the special revenue fund to replace technology equipment.
NOTE 7. RETIREMENT PLAN
Plan Description
The City participates as one of 866 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 (CAFR) 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.
At the date the plan began, the City granted monetary credits for service rendered before the plan began
of a theoretical amount equal to two times what would have been contributed by the employee, with
interest, prior to establishment of the plan. Monetary credits for service since the plan began are 200%
of the employee's accumulated contributions.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
62
NOTE 7. RETIREMENT PLAN – CONTINUED
Beginning in 1993, the City granted an annually repeating (automatic) basis a monetary credit referred to
as an Updated Service Credit (USC), which is a theoretical amount that considers salary increases or
plan improvements. If at any time during their career an employee earns a USC, this amount remains in
their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum
of the employee's accumulated contributions with interest and the employer match plus
employer-financed monetary credits, such as USC, with interest were used to purchase an annuity.
Additionally, initiated in 1993, the City provided on an annually repeating (automatic) basis cost of living
adjustments (COLA) for retirees equal to a percentage of the change in the consumer price index (CPI).
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.
Employees Covered by Benefit Terms:
At the December 31, 2019, valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 222
Inactive employees entitled to, but not yet receiving benefits 467
Active employees 751
Total 1,440
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 13.94%,
13.99%, and 14.03% in calendar years 2017, 2018, and 2019, respectively. The City’s contributions to
TMRS for the years ended September 30, 2017, 2018, and 2019, were $6,545,488, $6,927,485, and
$7,316,790, 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, 2019, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
63
NOTE 7. RETIREMENT PLAN – CONTINUED
Actuarial Assumptions
The Total Pension Liability in the December 31, 2018, actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
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 RP2000 Combined Healthy Mortality Tables with Blue
Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. The rates
are projected on a fully generational basis by scale BB to account for future mortality improvements. For
disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Tables with Blue Collar
Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3
year set-forward for both males and females. In addition a 3% minimum mortality rate is applied to reflect
the impairment for younger members who become disabled. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements subject to the 3% floor.
Actuarial assumptions used in the December 31, 2018, valuation were based on the results of actuarial
experience studies. The experience study in TMRS was for the period December 31, 2010, through
December 31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated
based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated
December 31, 2013. These assumptions were first used in the December 31, 2013, valuation, along with
a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No
additional changes were made for the 2014 valuation. After the Asset Allocation Study analysis and
experience investigation study, the Board amended the long-term expected rate of return on pension plan
investments from 7% to 6.75%. 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. In determining their
best estimate of a recommended investment return assumption under the various alternative asset
allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an
adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time
(aggressive).
The target allocation and best estimates of arithmetic real rates of return for each major asset class in
fiscal year 2019 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)
Domestic Equity 17.5% 4.30%
International Equity 17.5% 6.10%
Core Fixed Income 10.0% 1.00%
Non-Core Fixed Income 20.0% 3.39%
Real Return 10.0% 3.78%
Real Estate 10.0% 4.44%
Absolute Return 10.0% 3.56%
Private Equity 5.0% 7.75%
Total 100.0%
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
64
NOTE 7. RETIREMENT PLAN – CONTINUED
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.
Changes in the Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
Balance at 12/31/2017 196,581,033$ 174,740,433$ 21,840,600$
Changes for the year:
Service cost 8,503,427 - 8,503,427
Interest 13,379,960 - 13,379,960
Difference between expected
and actual experience (680) - (680)
Contributions - employer - 7,423,200 (7,423,200)
Contributions - employee - 3,423,774 (3,423,774)
Net investment income - (5,239,779) 5,239,779
Benefit payments, including
refunds of employee contributions (5,222,230) (5,222,230) -
Administrative expense - (101,162) 101,162
Other changes - (5,285) 5,285
Net changes 16,660,477 278,518 16,381,959
Balance at 12/31/2018 213,241,510$ 175,018,951$ 38,222,559$
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 72,994,042$ 38,222,559$ 10,133,474$
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 BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
65
NOTE 7. RETIREMENT PLAN – CONTINUED
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2019, the City recognized pension expense in the amount of
$10,214,352. At September 30, 2019, the City reported deferred outflows and inflows of resources related
to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 1,264,634$ (294,536)$
Changes in actuarial assumptions - (68,893)
Difference between projected and
actual investment earnings 9,036,771 -
Contributions subsequent to the
measurement date 5,629,106 -
Total 15,930,511$ (363,429)$
Deferred outflows of resources in the amount of $5,629,106 related to pensions that resulted from
contributions made subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the measurement year ending December 31, 2019, (i.e. recognized in the City’s
financial statements for the year ending September 30, 2020). Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement
year ending
December 31:
2019 3,151,714$
2020 1,696,656
2021 1,621,209
2022 3,468,402
2023 (5)
Total 9,937,976$
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, 2019, the cost of water purchased under
this contract was $17,109,012.
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 2019, the cost for transportation, treatment and disposal
of sewage and other wastes was $10,551,423.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
66
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, 2019, 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, 2019, was $1,202,007. Changes in the Risk Management liability during the past
five fiscal years were as follows:
Balance at Current Year Claims Balance at
Year Ending Beginning of and Changes in Claim End of
September 30, Fiscal Year Estimates Payments Fiscal Year
2015 935,264$ 7,393,719$ 7,345,549$ 983,434$
2016 983,434 8,076,640 7,986,738 1,073,336
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
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
67
NOTE 10. RISK MANAGEMENT – CONTINUED
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.
The City has a workers’ compensation deductible of $25,000 per occurrence, with an annual
aggregate deductible of $282,222. During fiscal 2019, the City contributed $614,097 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 2019, the City contributed $816,718 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, 2019, retirees paid $70,144 in the form of premiums and
incurred $219,347 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, 2019:
Inactive employees or beneficiaries currently receiving benefits 10
Inactive employees entitled to but not yet receiving benefits -
Active plan members 688
Total members 698
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
68
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) – CONTINUED
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 actuarily determined.
Net OPEB Liability (Asset)
Actuarial Methods and Assumptions - The City’s net OPEB liability (asset) was measured as
of October 1, 2017, 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, 2019, total OPEB liability based on the
following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date October 1, 2017
Measurement Date September 30, 2019
Discount Rate 4.00%
Inflation 2.50% per annum
Payroll Growth Rate 3.00% per annum, including inflation
Mortality, Non-Annuitants Sex distinct RP 2014h mortality table, with mortality
improvement scale MP-2018.
Mortality, Annuitants Sex distinct RP 2014h mortality table, with mortality
improvement scale MP-2018.
Medical & Pharmacy Healthcare Trend - Medical - 7.3% for 2018, decreasing to an ultimate
rate of 4.0% in 2044 and later years.
- Dental - 3.0% for 2018 and later years.
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% 6.40%
Fixed Income 65.0% 3.18%
Private Equity 3.0% 8.80%
Real Estate 3.0% 5.80%
Cash 9.0% 1.90%
Total 100.0%
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
69
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)– CONTINUED
City of Allen Retiree Healthcare Plan - Continued
Discount Rate - The current valuation is based upon last year’s valuation results projected forward
to the new Measurement Date of September 30, 2019, reflecting a change in the expected return
on assets and the discount rate from 5.00% as of September 30, 2018 to 4.00% as of
September 30, 2019. The reduction of 100 basis points is attributable to a change in the investment
policy to hold a more conservative set of investment instruments. Actual Assets were used at the
measurement date of September 30, 2019..
Changes in the Net OPEB Liability (Asset)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(a) - (b)
Balance at 09/30/2018 855,318$ 1,660,030$ (804,712)$
Changes for the year:
Interest 38,887 - 38,887
Changes of assumptions 28,859 - 28,859
Net investment income - 66,177 (66,177)
Benefit payments (155,176) (142,438) (12,738)
Administrative expense - (8,119) 8,119
Net changes (87,430) (84,380) (3,050)
Balance at 09/30/2019 767,888$ 1,575,650$ (807,762)$
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) (765,767)$ (807,762)$ (846,356)$
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
(6.30%)
Healthcare Cost
Trend Rate
(7.30%)
1% Increase in
Trend Rate
(8.30%)
City’s net OPEB (Asset) (842,055)$ (807,762)$ (771,318)$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
70
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) – CONTINUED
City of Allen Retiree Healthcare Plan - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended September 30, 2019, the collective OPEB expense of the City of Allen Retiree
Healthcare Plan was a credit of $41,906. At September 30, 2019, the City reported deferred
outflows and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ (71,323)$
Changes in actuarial assumptions 25,652 (23,657)
Difference between projected and
actual investment earnings 4,672 -
Total 30,324$ (94,980)$
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, Amortization
2020 (9,674)$
2021 (9,674)
2022 (9,676)
2023 (7,748)
2024 (10,361)
Thereafter (17,523)
Total (64,656)$
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 BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
71
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) – CONTINUED
Supplemental Death Benefits Plan - Continued
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
2019, 2018, and 2017. The City’s contributions to the TMRS SDBF for retirees for the years ended
September 30, 2019, 2018, and 2017 were $72,188, $66,896, and $64,347, 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 3.71% (The discount rate was based on the Fidelity
Index’s “20-Year Municipal GO AA Index” rate as of
December 31, 2018)
Retirees’ share of benefit-related costs $0.00
Administrative Expenses All administrative expenses are paid through the
Pension Trust and accounted for under reporting
requirements under GASB Statement No. 68.
Mortality Rates – service retirees RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% and projected on a
fully generational basis with scale BB.
Mortality Rates – disabled retirees RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% with a 3-year set-
forward for both males and females. The rates are
projected on a fully generational basis with scale BB
to account for future mortality improvements subject
to the 3% floor.
Note: The actuarial assumptions used in the December 31, 2018, valuation was based on the
results of an actuarial experience study for the period December 31, 2010, to December 31, 2014.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
72
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) – CONTINUED
Supplemental Death Benefits Plan - continued:
Employees Covered by Benefit Terms*
At December 31, 2018, the actuarial valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 162
Inactive employees entitled to, but not yet receiving benefits 96
Active employees 751
Total 1,009
Changes in total OPEB Liability
Total OPEB Liability – beginning of year 1,341,112$
Changes for the year:
Service Cost 97,628
Interest on Total OPEB Liability 45,926
Differences between expected and actual experience 101,506
Changes in assumptions or other inputs (111,311)
Benefit payments (4,881)
Net Change 128,868
Total OPEB Liability - end of year 1,469,980$
The City’s total OPEB liability of $1,469,980 was measured at December 31, 2018, and determined
by an actuarial valuation as of that date. Accordingly, no roll-forward is required.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.31%)
or 1-percentage-point higher (4.31%) than the current discount rate:
1.0% Decrease Current 1.0% Increase
in Discount Rate Discount Rate in Discount Rate
(2.71%) (3.71%) (4.71%)
Total OPEB Liability 1,772,418$ 1,469,980$ 1,237,356$
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2019, the City recognized OPEB expense of $159,365. OPEB
expense recognized is as follows
Components of OPEB Expense:
Service Cost 97,628$
Interest on Total OPEB Liability 45,926
Differences between expected and actual experience 14,398
Change in assumptions or other input 1,413
Total OPEB Expense 159,365$
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
73
NOTE 11. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) – CONTINUED
Supplemental Death Benefits Plan - continued:
At September 30, 2019, 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 3,745$ -$
Differences between expected and actual experience 87,108 -
Changes in assumptions or other inputs 86,867 (95,522)
Total 177,720$ (95,522)$
Deferred outflows of resources in the amount of $3,745 related to OPEB that resulted from
contributions made subsequent to the measurement date but before September 30, 2019, will be
recognized as a reduction of the net OPEB liability in the subsequent fiscal period rather than in the
current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to OPEB will be recognized in future OPEB expense as follows:
Year Ending Net deferred outflows/
September 30, (inflows) of resources
2020 15,811$
2021 15,811
2022 15,811
2023 15,811
2024 15,811
Thereafter (602)
Total 78,453$
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.
CITY OF ALLEN, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2019
74
NOTE 12. TAX ABATEMENTS AND ECONOMIC INCENTIVES – CONTINUED
The following are the three categories of economic development agreements City has contracted:
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 2019, the City rebated
$3,996,279 in taxes and rebated fees of $369,532 under these agreements. Additionally, for fiscal year
2019, the Allen Economic Development Corporation rebated taxes in the amount of $189,028 and
made incentive payments of $5,658,447, while the Allen Community Development Corporation rebated
taxes in the amount of $189,028 and made incentive payments of $81,250. The Allen Economic
Development Corporation also sold land for economic development during fiscal year 2019.
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
$255,873 for the fiscal year ended September 30, 2019.
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 $848,269 in payments for TIF
obligations during fiscal year 2019.
NOTE 13. COMMITMENTS AND CONTINGENT LIABILITIES
Federal Grants -The City participates in several State and Federal assisted grant programs. Amounts
received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the Federal Government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be
disallowed by the grantor cannot be determined at this time although the City expects such amounts, if
any, to be immaterial.
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City’s legal counsel that resolution of these matters will
not have a material adverse effect on the financial condition of the City.
Economic Development Grant -The City has several economic development agreements whereby
the City has agreed to pay a grant(s) to a developer and/or business in return for the design,
construction, operating, and/or managing of the business within the City of Allen. All grants are
performance based and do not constitute liabilities on the City’s financial records.
NOTE 14. SUBSEQUENT EVENTS
The City has evaluated all events or transactions that occurred subsequent to September 30, 2019,
through March 19, 2020, the date the financial statements were issued. During this period, there were
no subsequent events that require disclosure.
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF ALLEN, TEXAS EXHIBIT A-1
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS -
SUPPLEMENTAL DEATH BENEFITS FUND
LAST TWO MEASUREMENT YEARS
75
2018*2017*
Total OPEB liability:
Service cost 97,628$ 83,658$
Interest (on the total pension liability) 45,926 42,992
Changes in benefit terms - -
Difference in expected and actual experience 101,506 -
Change in assumptions or other inputs (111,311) 121,271
Benefit payments **(4,881) (4,648)
Net change in total OPEB liability 128,868 243,273
Total OPEB liability, beginning of year 1,341,112 1,097,839
Total OPEB liability, end of year 1,469,980$ 1,341,112$
Covered payroll 48,814,159$ 46,476,391$
Total OPEB liability as a percentage of covered payroll 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.
CITY OF ALLEN, TEXAS EXHIBIT A-2
SCHEDULE OF OPEB CONTRIBUTIONS -
SUPPLEMENTAL DEATH BENEFITS FUND
LAST TWO FISCAL YEARS
76
2019* 2018*
Actuarially determined contributions 5,156$ 4,778$
Contributions in relation to actuarially determined contribution 5,156 4,778
Contributions deficiency (excess) -$ -$
Covered payroll 51,562,996$ 47,782,955$
Contributions as a percentage of covered payroll 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.
Fiscal Year Ended September 30,
CITY OF ALLEN, TEXAS EXHIBIT A-3
SCHEDULE OF CHANGES IN NET OPEB LIABILITY (ASSET) AND RELATED RATIOS -
DEFINED BENEFIT RETIREE HEALTHCARE PLAN
LAST TWO MEASUREMENT YEARS
77
2019* 2018*
Total OPEB liability
Service cost -$ -$
Interest (on the total OPEB liability) 38,887 41,469
Changes in benefit terms - -
Difference in expected and actual experience - (91,701)
Change in assumptions 28,859 (30,415)
Benefit payments (155,176) 29,767
Net change in total OPEB liability (87,430) (50,880)
Total OPEB liability, beginning of year 855,318 906,198
Total OPEB liability, end of year (a)767,888$ 855,318$
Plan fiduciary net position:
Contributions -employer -$ -$
Contributions -employee - -
Net investment income 66,177 94,484
Benefit payments (142,438) (252,781)
Administrative expense (8,119) (10,442)
Net change in plan fiduciary net position (84,380) (168,739)
Plan fiduciary net position - beginning 1,660,030 1,828,769
Plan fiduciary net position - ending (b)1,575,650$ 1,660,030$
Plan Net OPEB liability (asset) - ending (a) - (b)(807,762)$ (804,712)$
Plan fiduciary net position as a % of total OPEB liability 205.19% 194.08%
Covered payroll 47,857,137$ 41,451,256$
Net OPEB liability (asset) as a % of covered payroll -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 . During fiscal year 2019, the expected return rate and the discount rate were
decreased from 5.00% to 4.00% corresponding with a change to the OPEB trust's investment policy
to a more conservative investment portfolio.
*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 TWO FISCAL YEARS
78
2019* 2018*
Actuarially determined contributions -$ -$
Contributions in relation to actuarially determined contribution - -
Contributions deficiency (excess) -$ -$
Covered payroll 47,857,137$ 41,451,256$
Contributions as a percentage of covered payroll 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, 2017.
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 7.3% initial, decreasing to an ultimate rate of 4.25% in the year 2044
Salary Increases 2.75% per annum
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 RPH-200 Health Annuity/Non-annuitant Mortality Table adjusted
to 2006 with Mortality improvement scale MP-2018.
Other information:
During 2019, the investment portfolio of the OPEB trust changed to a more conservative investment strategy.
As a result, the investment rate of return was lowered from 5.00% as of September 30, 2018, to 4.00%
as of the current measurement date.
Fiscal Year Ended September 30,
CITY OF ALLEN, TEXAS EXHIBIT A-5
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS –
RETIREMENT PLAN (TMRS)
LAST FIVE MEASUREMENT YEARS
79
2014* 2015* 2016* 2017* 2018*
Total pension liability:
Service cost 6,407,942$ 7,377,440$ 7,740,829$ 8,091,540$ 8,503,427$
Interest (on the total pension liability) 9,749,386 10,562,818 11,165,087 12,232,446 13,379,960
Changes in benefit terms, including substantively automatic status - - - - -
Difference in expected and actual experience (1,791,341) 196,259 894,580 1,293,282 (680)
Change in assumptions - (231,950) - - -
Benefit payments, including refunds of employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230)
Net change in total pension liability 11,152,869 14,657,132 15,898,007 17,193,500 16,660,477
Total pension liability, beginning of year 137,679,525 148,832,394 163,489,526 179,387,533 196,581,033
Total pension liability, end of year 148,832,394$ 163,489,526$ 179,387,533$ 196,581,033$ 213,241,510$
Plan fiduciary net position:
Contributions -employer 5,455,902$ 6,063,051$ 6,473,617$ 7,130,557$ 7,423,200$
Contributions -employee 2,754,779 3,021,766 3,129,050 3,274,594 3,423,774
Net investment income 6,648,346 188,559 9,039,319 20,569,321 (5,239,779)
Benefit payments, including refunds of employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230)
Administrative expense (69,397) (114,830) (102,024) (106,520) (101,162)
Other (5,706) (5,671) (5,497) (5,400) (5,285)
Net change in plan fiduciary net position 11,570,806 5,905,440 14,631,976 26,438,784 278,518
Plan fiduciary net position - beginning 116,193,427 127,764,233 133,669,673 148,301,649 174,740,433
Plan fiduciary net position - ending 127,764,233$ 133,669,673$ 148,301,649$ 174,740,433$ 175,018,951$
Net pension liability - ending 21,068,161$ 29,819,853$ 31,085,884$ 21,840,600$ 38,222,559$
Plan fiduciary net position as a % of total pension liability 85.84% 81.76% 82.67% 88.89% 82.08%
Covered payroll 39,335,988$ 43,142,910$ 44,410,952$ 46,476,391$ 48,814,159$
Net pension liability as a % of covered payroll 53.56% 69.12% 70.00% 46.99% 78.30%
* 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 FIVE FISCAL YEARS
80
2015* 2016* 2017* 2018* 2019*
Actuarially determined contributions 5,785,220$ 6,028,939$ 6,217,858$ 6,678,295$ 7,228,643$
Actual contributions (5,797,651) (6,181,797) (6,545,488) (6,927,485) (7,742,056)
Contributions deficiency (excess) (12,431)$ (152,858)$ (327,630)$ (249,190)$ (513,413)$
Covered payroll 40,985,314$ 43,564,466$ 45,962,313$ 47,782,955$ 51,562,996$
Ratio of actual contributions to covered payroll amount 14.15% 14.19% 14.24% 14.50% 15.01%
*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 27 years
Asset Valuation Method 10 year smoothed market; 15% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 10.5% 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 2015 valuation pursuant to an experience study of the
period 2010 - 2014.
Mortality
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.
RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by
109% and female rates multiplied by 103% and projected on a fully generational basis with scale
BB.
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, 2019
81
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest 52,726,466$ 53,288,304$ 53,250,570$ (37,734)$
Municipal sales tax 19,794,260 20,503,676 21,127,093 623,417
Franchise taxes 7,433,496 7,861,058 7,628,851 (232,207)
Licenses, permits and fees 3,028,100 3,451,100 5,019,490 1,568,390
Charges for services 13,405,250 14,073,914 11,814,263 (2,259,651)
Fines 1,664,133 1,633,133 2,025,605 392,472
Gifts and contributions 585,946 588,282 785,613 197,331
Intergovernmental 100,000 100,000 261,132 161,132
Investment earnings 556,706 550,000 1,326,225 776,225
Miscellaneous 1,320,945 1,720,154 2,579,264 859,110
Total revenues 100,615,302 103,769,621 105,818,106 2,048,485
EXPENDITURES
Current:
General government 19,294,262 19,393,504 18,376,868 (1,016,636)
Public safety 44,383,527 44,490,296 43,155,246 (1,335,050)
Public works 6,721,137 6,747,354 6,410,188 (337,166)
Culture and recreation 29,586,511 30,633,108 28,652,437 (1,980,671)
Community development 3,267,591 3,434,246 2,859,578 (574,668)
Capital Outlay 319,000 587,866 787,360 199,494
Total expenditures 103,572,028 105,286,374 100,241,677 (5,044,697)
Excess (deficiency) of revenues
over (under) expenditures (2,956,726) (1,516,753) 5,576,429 7,093,182
OTHER FINANCING SOURCES (USES)
Transfers in 4,603,089 4,907,714 4,911,714 4,000
Transfers out (2,277,926) (2,190,013) (8,208,513) (6,018,500)
Sale of capital assets 10,000 12,000 23,825 11,825
Total other financing sources (uses)2,335,163 2,729,701 (3,272,974) (6,002,675)
NET CHANGE IN FUND BALANCE (621,563) 1,212,948 2,303,455 1,090,507
FUND BALANCES, BEGINNING OF YEAR 23,711,241 23,711,241 23,711,241 -
FUND BALANCES, END OF YEAR 23,089,678$ 24,924,189$ 26,014,696$ 1,090,507$
BUDGETED AMOUNTS
CITY OF ALLEN, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 2019
82
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 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 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 presents a comparison of budgetary data to actual results. The General Fund utilizes
the same basis of accounting for both budgetary purposes and actual results.
COMBINING AND BUDGETARY
COMPARISON SCHEDULES
83
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, 2019
84
VARIANCE
WITH FINAL
BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes 14,024,502$ 14,028,189$ 14,202,312$ 174,123$
Investment earnings 122,376 130,000 216,756 86,756
Total revenues 14,146,878 14,158,189 14,419,068 260,879
EXPENDITURES
Principal retirement 10,581,949 10,583,703 10,582,162 (1,541)
Interest and fiscal charges 3,373,660 3,440,448 3,407,768 (32,680)
Total expenditures 13,955,609 14,024,151 13,989,930 (34,221)
Excess (deficiency) of revenues
over (under) expenditures 191,269 134,038 429,138 295,100
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 1,700,000 1,660,000 (40,000)
Premium on issuance of bonds - - 47,244 47,244
Payment to refund bond escrow agent (12,750) (1,711,250) (1,675,000) 36,250
Total other financing sources (uses)(12,750) (11,250) 32,244 43,494
NET CHANGE IN FUND BALANCES 178,519 122,788 461,382 338,594
FUND BALANCE, BEGINNING OF YEAR 1,251,938 1,251,938 1,251,938 -
FUND BALANCE, END OF YEAR 1,430,457$ 1,374,726$ 1,713,320$ 338,594$
BUDGETED AMOUNTS
85
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Hotel Occupancy Tax Fund – To account for funds received from hotel occupancy tax and expend as
allowed by state law.
Asset Forfeiture Fund –- To account for activities associated with assets legally seized and forfeited.
Grants Fund – To account for monies received from other governmental agencies that have restricted
legal requirements and multi-year budgets.
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, 2019
86
TOTAL
HOTEL TAX NON-MAJOR
OCCUPANCY ASSET SPECIAL GIFT PARK INCREMENT GOVERNMENTAL
TAX FORFEITURE GRANTS REVENUE PERMANENT DEDICATION FINANCING FUNDS
ASSETS
Cash and cash equivalents 288,256$ 114,794$ 215,794$ 407,769$ 809,648$ 338,349$ 1,252,428$ 3,427,038$
Investments 2,232,318 87,138 30,571 970,892 4,175 1,187,510 3,725,285 8,237,889
Accounts receivable 156,805 - 23,888 44,542 - - 101,120 326,355
Accrued interest 7,843 569 156 4,969 21 6,078 19,067 38,703
TOTAL ASSETS 2,685,222 202,501 270,409 1,428,172 813,844 1,531,937 5,097,900 12,029,985
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 22,502 - 1,550 1,876 - 390,107 - 416,035
Accrued liabilities 11,067 24,963 - - - - - 36,030
Retainage payable - - 5,000 - - 7,271 - 12,271
TOTAL LIABILITIES 33,569 24,963 6,550 1,876 - 397,378 - 464,336
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest 5,580 - 3 3,236 11 3,980 11,537 24,347
Unavailable revenue - grants - - 127 - - - - 127
TOTAL DEFERRED INFLOWS OF RESOURCES 5,580 - 130 3,236 11 3,980 11,537 24,474
FUND BALANCES
Restricted
Tourism 2,646,073 - - - - - - 2,646,073
Asset forfeiture - 177,538 - - - - - 177,538
State and federal grants - - 263,729 - - - - 263,729
Park acquisition and development - - - - - 1,130,579 - 1,130,579
Tax increment financing agreement - - - - - - 5,086,363 5,086,363
Court technology - - - 91,021 - - - 91,021
Juvenile case manager - - - 29,435 - - - 29,435
PEG fees - - - 1,026,569 - - - 1,026,569
Radio system - - - 268,023 - - - 268,023
Court security - - - 8,012 - - - 8,012
Public safety and library enhancements - - - - 813,833 - - 813,833
TOTAL FUND BALANCES 2,646,073 177,538 263,729 1,423,060 813,833 1,130,579 5,086,363 11,541,175
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 2,685,222$ 202,501$ 270,409$ 1,428,172$ 813,844$ 1,531,937$ 5,097,900$ 12,029,985$
CITY OF ALLEN EXHIBIT B-3
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
87
TOTAL
HOTEL TAX NON-MAJOR
OCCUPANCY ASSET SPECIAL GIFT PARK INCREMENT GOVERNMENTAL
TAX FORFEITURE GRANTS REVENUE PERMANENT DEDICATION FINANCING FUNDS
REVENUES
Ad valorem taxes, penalties and interest -$ -$ -$ -$ -$ -$ 1,431,944$ 1,431,944$
Franchise taxes - - - 181,242 - - - 181,242
Municipal sales tax - - - - - - 521,308 521,308
Licenses, permits, and fees - - - - - 259,935 - 259,935
Fines - - - 188,966 - - - 188,966
Hotel / motel taxes 1,758,858 - - - - - - 1,758,858
Gifts and contributions - - - - 800,000 - - 800,000
Intergovernmental - - 350,752 53,758 - - 125,729 530,239
Investment earnings 65,203 5,744 5,379 39,411 13,833 46,787 129,972 306,329
Miscellaneous 301 89,420 - - - - - 89,721
Total revenues 1,824,362 95,164 356,131 463,377 813,833 306,722 2,208,953 6,068,542
EXPENDITURES
General government - - - 69,604 - - 878,269 947,873
Public safety - 74,066 54,672 - - - - 128,738
Culture and recreation 1,110,988 - 6,152 - - 31,712 - 1,148,852
Community development - - 302,101 - - - - 302,101
Capital outlay - - - 83,842 - 404,437 - 488,279
Total expenditures 1,110,988 74,066 362,925 153,446 - 436,149 878,269 3,015,843
Excess (deficiency) of revenues
over (under) expenditures 713,374 21,098 (6,794) 309,931 813,833 (129,427) 1,330,684 3,052,699
OTHER FINANCING SOURCES (USES)
Transfers in - - - 514 - - - 514
Transfers out (3,771) - - (96,785) - - - (100,556)
Sale of capital assets - 14,806 - - - - - 14,806
Total other financing sources (uses)(3,771) 14,806 - (96,271) - - - (85,236)
NET CHANGE IN FUND BALANCES 709,603 35,904 (6,794) 213,660 813,833 (129,427) 1,330,684 2,967,463
FUND BALANCES, BEGINNING OF YEAR 1,936,470 141,634 270,523 1,209,400 - 1,260,006 3,755,679 8,573,712
FUND BALANCES, END OF YEAR 2,646,073$ 177,538$ 263,729$ 1,423,060$ 813,833$ 1,130,579$ 5,086,363$ 11,541,175$
88
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, 2019
89
RISK FACILITY
REPLACEMENT MANAGEMENT MAINTENANCE
FUND FUND FUND TOTALS
ASSETS
CURRENT ASSETS
Cash and cash equivalents 2,470,060$ 1,271,460$ 193,833$ 3,935,353$
Investments 10,754,319 6,875,302 1,613,539 19,243,160
Accounts receivable 71,385 118,659 - 190,044
Accrued interest receivable 44,549 35,188 5,699 85,436
Prepaid items - 224,682 - 224,682
Total current assets 13,340,313 8,525,291 1,813,071 23,678,675
CAPITAL ASSETS
Machinery and equipment 16,348,854 - - 16,348,854
Vehicles 5,808,405 - - 5,808,405
Accumulated depreciation (12,466,557) - - (12,466,557)
Capital assets,
net of accumulated depreciation 9,690,702 - - 9,690,702
TOTAL ASSETS 23,031,015 8,525,291 1,813,071 33,369,377
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable 136,711 11,782 134,648 283,141
Accrued liabilities - 74 - 74
Incurred but not reported claims - 1,202,007 - 1,202,007
TOTAL LIABILITIES 136,711 1,213,863 134,648 1,485,222
NET POSITION
Net investment in capital assets 9,690,702 - - 9,690,702
Unrestricted 13,203,602 7,311,428 1,678,423 22,193,453
TOTAL NET POSITION 22,894,304$ 7,311,428$ 1,678,423$ 31,884,155$
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, 2019
90
RISK FACILITY
REPLACEMENT MANAGEMENT MAINTENANCE
FUND FUND FUND
OPERATING REVENUES
Charges for services 3,450,337$ 12,371,413$ -$ 15,821,750$
Other income 176,137 1,915,910 - 2,092,047
Total operating revenues 3,626,474 14,287,323 - 17,913,797
OPERATING EXPENSES
Personal services - 367,131 - 367,131
Contractual services 37,955 12,406,877 674,333 13,119,165
Maintenance - - - -
Supplies 1,082 - - 1,082
Depreciation 2,203,795 - - 2,203,795
Total operating expenses 2,242,832 12,774,008 674,333 15,691,173
OPERATING INCOME (LOSS)1,383,642 1,513,315 (674,333) 2,222,624
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 412,039 241,411 43,623 697,073
Loss on disposal of capital assets (101,370) - - (101,370)
Total non-operating revenues (expenses)310,669 241,411 43,623 595,703
INCOME (LOSS) BEFORE TRANSFERS 1,694,311 1,754,726 (630,710) 2,818,327
TRANSFERS
Transfers in - 534,255 1,334,500 1,868,755
Transfers out - (4,000) (20,000) (24,000)
Total transfers - 530,255 1,314,500 1,844,755
CHANGE IN FUND NET POSITION 1,694,311 2,284,981 683,790 4,663,082
NET POSITION, BEGINNING OF YEAR 21,199,993 5,026,447 994,633 27,221,073
NET POSITION, END OF YEAR 22,894,304$ 7,311,428$ 1,678,423$ 31,884,155$
TOTALS
CITY OF ALLEN, TEXAS EXHIBIT C-3
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2019
91
RISK FACILITY
REPLACEMENT MANAGEMENT MAINTENANCE
FUND FUND FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds 3,555,088$ 14,278,367$ -$ 17,833,455$
Cash paid to employees for services - (363,946) - (363,946)
Cash paid for goods and services 37,580 (612,382) (660,509) (1,235,311)
Cash paid for claims - (11,982,548) - (11,982,548)
Net cash provided by (used in) operating activities 3,592,668 1,319,491 (660,509) 4,251,650
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in - 534,255 1,334,500 1,868,755
Transfers out - (4,000) (20,000) (24,000)
Net cash provided by non-capital financing activities - 530,255 1,314,500 1,844,755
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (3,221,881) - - (3,221,881)
Proceeds from sale of capital assets 207,464 - - 207,464
Net cash used in capital and related financing activities (3,014,417) - - (3,014,417)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities (1,513,827) (1,532,461) (879,368) (3,925,656)
Interest on investments 401,688 224,406 40,960 667,054
Net cash used in investing activities (1,112,139) (1,308,055) (838,408) (3,258,602)
NET CHANGE IN CASH AND CASH EQUIVALENTS (533,888) 541,691 (184,417) (176,614)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,003,948 729,769 378,250 4,111,967
CASH AND CASH EQUIVALENTS, END OF YEAR 2,470,060$ 1,271,460$ 193,833$ 3,935,353$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income (loss) 1,383,642$ 1,513,315$ (674,333)$ 2,222,624$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 2,203,795 - - 2,203,795
Change in assets and liabilities:
Accounts receivable (71,385) (95,923) - (167,308)
Prepaids - (184,996) - (184,996)
Liabilities 76,616 87,095 13,824 177,535
Total adjustments 2,209,026 (193,824) 13,824 2,029,026
Net cash provided by (used in) operating activities 3,592,668$ 1,319,491$ (660,509)$ 4,251,650$
NON-CASH INVESTING ACTIVITIES
Change in the fair value of investments 147,696$ 13,002$ 90,931$ 251,629$
TOTALS
92
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, 2019
93
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,374,770$
Investments 5,309,577
Sales tax receivable 1,825,969
Accounts receivable 562,185
Accrued interest receivable 27,175
TOTAL ASSETS 9,099,676$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 197,302$
Accrued and other liabilities 614,377
TOTAL LIABILITIES 811,679
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest 15,039
TOTAL DEFERRED INFLOWS OF RESOURCES 15,039
FUND BALANCE
Restricted
Debt service 283,648
Unassigned 7,989,310
TOTAL FUND BALANCE 8,272,958
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 9,099,676$
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, 2019
94
Total fund balance of governmental fund balance sheet 8,272,958$
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. 430,136
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 15,039
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. (51,116)
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. (13,598,305)
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. 19,288,085
Net position of governmental activities 14,356,797$
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, 2019
95
REVENUES
Sales and other taxes 10,602,827$
Investment earnings 324,934
Miscellaneous 30,899
Total revenues 10,958,660
EXPENDITURES
Current:
Economic development 7,735,856
Capital projects:
Economic development 5,814,130
Debt service:
Principal retirement 3,103,079
Interest and fiscal charges 582,469
Total expenditures 17,235,534
Deficiency of revenues under expenditures (6,276,874)
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 2,549,044
Total other financing sources 2,549,044
NET CHANGE IN FUND BALANCE (3,727,830)
FUND BALANCE, BEGINNING OF YEAR 12,000,788
FUND BALANCE, END OF YEAR 8,272,958$
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, 2019
96
Net change in fund balance - total governmental fund (3,727,830)$
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. 5,814,130
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. (25,102)
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:
Bond principal retirement 2,475,000$
Note principal retirement 628,079
Amortization of bond premiums 132,358
Amortization of deferred charges on refunding (54,333) 3,181,104
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. 8,728
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.8,790
In the governmental fund financial statements, the proceeds from a sale of assets
are shown as an increase in financial resources. However, in the statement of
activities, gain or loss from the transaction is calculated and reported. (1,122,414)
Change in net position of governmental activities 4,137,406$
CITY OF ALLEN, TEXAS EXHIBIT D-5
BALANCE SHEET
ALLEN COMMUNITY DEVELOPMENT CORPORATION
SEPTEMBER 30, 2019
97
ASSETS
CURRENT ASSETS
Cash and cash equivalents 2,018,976$
Investments 13,479,968
Sales tax receivable 1,825,969
Accrued interest receivable 63,363
TOTAL ASSETS 17,388,276$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 201,691$
Retainage payable 110,000
TOTAL LIABILITIES 311,691
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest 35,065
TOTAL DEFERRED INFLOWS OF RESOURCES 35,065
FUND BALANCES
Restricted
Debt service 226,223
Assigned for capital projects 657,182
Unassigned 16,158,115
TOTAL FUND BALANCE 17,041,520
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 17,388,276$
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, 2019
98
Total governmental fund balance 17,041,520$
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. 486,080
Revenues earned but not available within sixty days of the year end are not
recognized as revenue in the fund financial statements. 35,065
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.(54,541)
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. (26,070,000)
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. 50,691,130
Net position of governmental activities 42,129,254$
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, 2019
99
REVENUES
Sales and other taxes 10,602,827$
Investment earnings 430,760
Total revenues 11,033,587
EXPENDITURES
Current:
Community development 1,716,602
Capital projects:
Community development 724,459
Debt service:
Principal retirement 1,735,000
Interest and fiscal charges 677,569
Total expenditures 4,853,630
Excess of revenues over expenditures 6,179,957
NET CHANGE IN FUND BALANCE 6,179,957
FUND BALANCE, BEGINNING OF YEAR 10,861,563
FUND BALANCE, END OF YEAR 17,041,520$
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, 2019
100
Net change in fund balance - total governmental fund 6,179,957$
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. 724,459
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.29,177
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.1,861
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. (3,254,174)
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. 1,735,000
Change in net position of governmental activities 5,335,267$
STATISTICAL SECTION
(UNAUDITED)
101
Contents Table
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 derived from the comprehensive annual
financial reports for each respective 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) 102 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Governmental activitiesNet investment in capital assets 375,929,040$ 366,601,816$ 373,586,071$ 369,314,466$ 363,168,607$ 355,756,224$ 364,667,251$ 366,322,218$ 379,153,944$ 391,261,029$ Restricted 889,439 18,656,870 21,042,413 26,511,231 26,066,205 31,476,026 32,485,173 38,303,226 39,588,223 44,872,796 Unrestricted 23,658,628 7,621,235 8,054,347 8,960,703 12,436,903 16,596,955 14,435,604 15,902,576 15,312,432 20,238,419 Total governmental net position 400,477,107$ 392,879,921$ 402,682,831$ 404,786,400$ 401,671,715$ 403,829,205$ 411,588,028$ 420,528,020$ 434,054,599$ 456,372,244$ Business-type activitiesNet investment in capital assets 94,983,309$ 96,288,053$ 99,960,794$ 99,544,466$ 100,991,443$ 102,340,588$ 106,174,191$ 107,926,811$ 103,762,241$ 113,459,625$ Restricted for debt service 376,962 349,692 428,646 364,510 26,859 344,421 216,664 195,485 46,350 571,053 Unrestricted 25,861,166 29,434,587 31,346,727 33,860,716 32,720,930 34,165,174 33,592,809 31,920,455 43,785,615 40,240,619 Total business-type net position 121,221,437$ 126,072,332$ 131,736,167$ 133,769,692$ 133,739,232$ 136,850,183$ 139,983,664$ 140,042,751$ 147,594,206$ 154,271,297$ Primary governmentNet investment in capital assets 470,912,349$ 462,889,869$ 473,546,865$ 468,858,932$ 464,160,050$ 458,096,812$ 470,841,442$ 474,249,029$ 482,916,185$ 504,720,654$ Restricted for debt service 1,266,401 19,006,562 21,471,059 26,875,741 26,093,064 31,820,447 32,701,837 38,498,711 39,634,573 45,443,849 Unrestricted 49,519,794 37,055,822 39,401,074 42,821,419 45,157,833 50,762,129 48,028,413 47,823,031 59,098,047 60,479,038 Total primary government net position 521,698,544$ 518,952,253$ 534,418,998$ 538,556,092$ 535,410,947$ 540,679,388$ 551,571,692$ 560,570,771$ 581,648,805$ 610,643,541$ Source:City of Allen Comprehensive Annual 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) 103 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019ExpensesGovernmental activities:General government 20,415,700$ 16,989,047$ 18,347,067$ 22,271,050$ 24,940,939$ 24,464,246$ 25,304,811$ 28,251,550$ 26,764,210$ 21,238,061$ Public safety 26,106,950 27,110,778 28,675,146 28,935,911 30,408,487 31,607,444 35,199,937 39,624,788 39,213,768 44,993,635 Public works 16,036,561 16,779,393 17,681,730 17,807,948 18,252,130 18,349,569 19,083,214 20,209,785 24,161,991 27,039,953 Culture and recreation 23,160,807 30,645,922 32,112,451 29,983,224 30,987,689 32,407,934 32,851,598 28,968,534 33,791,438 33,287,645 Community development 2,665,534 2,742,284 2,527,518 2,230,968 2,689,517 2,861,704 3,251,555 3,007,047 3,079,242 3,160,050 Interest on long-term debt 4,860,527 4,715,550 4,539,622 4,067,303 3,955,305 3,921,989 3,356,234 2,980,513 2,920,824 2,888,831 Total governmental activities expenses 93,246,079 98,982,974 103,883,534 105,296,404 111,234,067 113,612,886 119,047,349 123,042,217 129,931,473 132,608,175 Business-type activities:Water and sewer 26,344,371 25,638,007 26,359,698 29,160,281 30,081,379 32,304,628 35,604,182 39,527,816 41,134,685 44,511,123 Solid waste 5,111,913 5,411,960 5,429,049 5,495,654 5,383,215 5,560,294 5,870,269 6,078,853 6,223,788 6,248,035 Drainage 895,924 819,947 882,726 910,179 951,973 914,322 1,146,138 1,193,057 1,260,262 1,396,935 Golf Course 2,029,699 1,912,583 1,179,015 2,483,467 2,839,098 2,911,476 3,089,041 3,135,144 3,397,180 3,332,927 Total business-type activities expenses 34,381,907 33,782,497 33,850,488 38,049,581 39,255,665 41,690,720 45,709,630 49,934,870 52,015,915 55,489,020 Total primary government expenses 127,627,986$ 132,765,471$ 137,734,022$ 143,345,985$ 150,489,732$ 155,303,606$ 164,756,979$ 172,977,087$ 181,947,388$ 188,097,195$ Program RevenuesGovernmental activities:Charges for Services:General government 619,950$ 575,406$ 712,432$ 675,196$ 823,801$ 705,064$ 467,786$ 497,243$ 525,542$ 500,122$ Public safety 1,464,849 1,521,787 1,577,643 1,541,985 1,568,294 1,647,407 1,801,984 2,712,076 2,171,332 1,954,810 Public works 131,147 117,518 137,357 196,685 154,418 233,808 210,687 293,559 1,333,506 1,485,962 Culture and recreation 4,347,601 7,762,439 8,019,145 8,443,286 8,425,791 9,177,211 10,289,465 8,747,206 9,803,084 9,744,309 Community development 1,498,580 1,394,833 1,265,485 2,220,438 3,103,410 3,021,708 3,216,799 4,266,140 4,025,326 4,798,471 Operating grants and contributions 3,148,752 2,736,094 1,504,355 2,067,482 1,121,356 1,749,567 1,557,260 2,443,054 2,423,768 2,056,001 Capital grants and contributions 21,884,059 5,437,433 26,626,381 14,737,780 9,571,206 10,552,610 16,039,869 15,327,094 18,942,856 19,888,044 Total governmental activities program revenues 33,094,938 19,545,510 39,842,798 29,882,852 24,768,276 27,087,375 33,583,850 34,286,372 39,225,414 40,427,719 Business-type activities:Charges for services:Water and sewer 25,588,187 30,798,158 28,693,707 30,808,084 28,955,282 34,135,714 36,335,868 37,163,882 42,453,681 43,103,920 Solid waste 5,789,828 6,138,900 6,040,165 6,114,951 6,309,729 6,474,386 6,687,182 6,735,559 6,933,356 7,006,423 Drainage 1,238,278 1,284,058 1,338,680 1,352,671 1,378,662 1,465,044 1,519,405 1,648,681 1,907,407 1,763,694 Golf Course 1,430,861 1,406,555 59,054 1,924,706 2,537,564 2,361,384 2,705,799 2,959,361 2,810,424 3,138,144 Operating grants and contributions - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - - - Capital grants and contributions 5,142,221 2,749,029 7,151,043 3,788,300 3,685,960 4,416,642 6,172,301 5,622,911 9,734,528 10,175,397 Total business-type activities program revenues 39,189,375 43,376,700 44,282,649 44,988,712 43,867,197 49,853,170 53,420,555 54,130,394 63,839,396 65,187,578 Total primary government program revenues 72,284,313$ 62,922,210$ 84,125,447$ 74,871,564$ 68,635,473$ 76,940,545$ 87,004,405$ 88,416,766$ 103,064,810$ 105,615,297$ (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) 104 Net (Expenses) RevenueGovernmental activities (60,151,141)$ (79,437,464)$ (64,040,736)$ (75,413,552)$ (86,465,791)$ (86,525,511)$ (85,463,499)$ (88,755,845)$ (90,706,059)$ (92,180,456)$ Business-type activities 4,807,468 9,594,203 10,432,161 6,939,131 4,611,532 8,162,450 7,710,925 4,195,524 11,823,481 9,698,558 Total primary government net expenses (55,343,673)$ (69,843,261)$ (53,608,575)$ (68,474,421)$ (81,854,259)$ (78,363,061)$ (77,752,574)$ (84,560,321)$ (78,882,578)$ (82,481,898)$ General Revenuesand Other Changes in Net AssetsGovernmental activities:Taxes:Property taxes 40,757,240$ 41,111,106$ 42,042,753$ 44,474,745$ 46,232,565$ 50,143,986$ 54,102,952$ 58,816,876$ 63,929,379$ 68,865,078$ Sales taxes 12,461,268 13,907,095 15,038,519 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,505 21,648,401 Franchise taxes 6,091,857 6,421,059 6,150,419 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 Hotel / Motel taxes 805,185 1,113,312 1,229,996 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,759,159 Other taxes 2,128,167 1,886,665 1,622,633 1,389,503 2,151,232 1,851,397 1,621,012 1,912,559 1,704,227 2,204,220 Investment earnings 1,154,160 644,169 538,863 177,495 416,828 689,736 735,832 837,577 944,196 4,048,112 Gain on disposition of capital assets 103,095 233,783 40,509 92,401 - - - 263,627 446,117 - Miscellaneous 1,312,462 1,451,743 1,802,747 2,079,082 2,445,491 2,650,103 3,794,277 2,703,964 3,592,229 3,460,124 Transfers 5,142,361 5,071,346 5,377,207 5,361,830 5,627,137 6,249,489 4,790,072 4,610,889 4,398,244 4,702,914 Total governmental activities 69,955,795 71,840,278 73,843,646 77,517,121 83,351,106 88,683,001 93,222,322 97,695,837 105,209,055 114,498,101 Business-type activities:Investment earnings 338,849 184,709 197,613 70,382 134,988 194,051 197,125 199,508 210,045 1,284,728 Gain on disposition of capital assets - - - - - - 15,503 - 13,228 - Miscellaneous 408,104 143,329 411,268 385,842 850,157 1,003,939 - 274,944 21,030 396,719 Transfers (5,142,361) (5,071,346) (5,377,207) (5,361,830) (5,627,137) (6,249,489) (4,790,072) (4,610,889) (4,398,244) (4,702,914) Total business-type activities (4,395,408) (4,743,308) (4,768,326) (4,905,606) (4,641,992) (5,051,499) (4,577,444) (4,136,437) (4,153,941) (3,021,467) Total primary government 65,560,387$ 67,096,970$ 69,075,320$ 72,611,515$ 78,709,114$ 83,631,502$ 88,644,878$ 93,559,400$ 101,055,114$ 111,476,634$ Change in Net PositionGovernmental activities 9,804,654$ (7,597,186)$ 9,802,910$ 2,103,569$ (3,114,685)$ 2,157,490$ 7,758,823$ 8,939,992$ 14,502,996$ 22,317,645$ Business-type activities 412,060 4,850,895 5,663,835 2,033,525 (30,460) 3,110,951 3,133,481 59,087 7,669,540 6,677,091 Total primary government 10,216,714$ (2,746,291)$ 15,466,745$ 4,137,094$ (3,145,145)$ 5,268,441$ 10,892,304$ 8,999,079$ 22,172,536$ 28,994,736$ Source:City of Allen Comprehensive Annual Financial Reports
CITY OF ALLEN, TEXAS TABLE 3 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) (Unaudited) 105 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General FundNonspendable 862$ 156$ 2,081$ 2,098$ 4,767$ 1,486$ 2,129$ 126,833$ 25,747$ 209,323$ Restricted - 55,898 513,801 726,953 752,238 779,185 907,908 58,910 59,386 61,304 Assigned - 1,402 133,478 851,564 748,200 921,030 - 2,000,000 - - Unassigned 15,187,065 15,349,834 15,857,642 14,672,989 17,368,187 18,407,873 20,911,943 19,684,053 23,626,108 25,744,069 Total General Fund 15,187,927$ 15,407,290$ 16,507,002$ 16,253,604$ 18,873,392$ 20,109,574$ 21,821,980$ 21,869,796$ 23,711,241$ 26,014,696$ All Other Governmental FundsNonspendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 751$ Restriced 39,138,691 31,131,674 26,297,587 34,132,037 42,149,113 51,398,430 46,610,702 57,540,668 27,922,044 31,444,917 Assigned - - - - - - - - 28,349,191 32,023,933 Unassigned (deficit) - - - - - - - - (4,428) - Total all other governmental funds 39,138,691$ 31,131,674$ 26,297,587$ 34,132,037$ 42,149,113$ 51,398,430$ 46,610,702$ 57,540,668$ 56,266,807$ 63,469,601$ Source:City of Allen Comprehensive Annual 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) 106 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019REVENUESAd valorem taxes 40,555,218$ 41,167,524$ 42,045,252$ 44,725,261$ 46,142,222$ 50,177,840$ 54,104,132$ 58,875,936$ 63,775,055$ 68,884,826$ Franchise taxes 6,091,857 6,421,059 6,150,419 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 Municipal sales tax 12,461,268 13,907,095 15,038,519 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,504 21,648,401 Licenses, permits and fees 1,120,401 1,270,493 1,215,677 2,294,955 2,915,533 3,134,551 3,064,580 4,450,639 4,494,361 5,279,425 Charges for services 5,790,716 9,234,618 10,051,684 10,623,970 10,580,553 11,734,344 13,002,770 11,664,328 13,442,785 13,586,474 Fines 2,134,324 1,886,665 1,648,194 1,402,725 2,160,168 1,805,230 1,579,628 1,851,735 1,710,354 2,214,571 Gifts and contributions 609,522 986,125 1,443,766 1,322,228 819,408 1,012,103 832,211 712,437 852,322 1,585,613 Hotel / motel fees 805,185 1,113,312 1,229,996 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,758,858 Intergovernmental 5,528,449 3,795,087 4,637,343 5,267,026 1,704,404 3,570,737 2,645,089 1,927,567 3,555,241 1,258,398 Investment earnings 985,219 547,525 440,065 144,604 344,386 577,014 627,760 643,928 851,954 3,280,340 Miscellaneous 5,199,090 1,939,352 2,241,166 2,671,410 3,394,197 3,420,441 3,711,870 3,428,366 3,276,677 3,106,994 Total revenues 81,281,249 82,268,855 86,142,081 92,394,244 94,538,724 102,530,550 107,746,217 112,105,281 122,153,411 130,413,993 EXPENDITURESGeneral government 19,656,265 16,502,188 17,145,603 21,785,677 23,544,055 23,996,598 24,101,637 27,182,391 26,141,256 19,902,542Public safety 24,994,107 26,089,579 27,291,201 28,317,603 29,214,552 30,731,310 32,966,265 37,294,550 38,524,578 43,283,984Public works 5,186,355 3,856,373 4,104,118 4,055,500 4,077,961 4,888,798 4,865,431 5,428,996 8,899,247 11,194,393Culture and recreation 14,581,130 21,785,214 22,460,071 20,864,140 21,435,581 22,540,516 24,287,382 23,745,884 29,714,212 30,044,660Community development 2,584,454 2,549,235 2,406,485 2,211,253 2,631,289 2,880,880 2,833,011 2,951,864 3,076,260 3,161,679Capital outlay 34,219,102 17,398,837 7,972,159 6,123,786 6,573,002 6,555,445 15,408,293 7,053,863 13,114,988 11,921,047Debt servicePrincipal retirement 5,995,000 6,930,000 7,634,130 7,964,914 8,364,986 9,322,537 9,135,000 10,445,000 11,181,377 11,382,162Interest and fiscal charges 4,710,336 4,775,982 4,562,965 3,955,639 3,882,394 3,931,548 3,801,812 3,378,943 3,461,414 3,407,768Total expenditures 111,926,749 99,887,408 93,576,732 95,278,512 99,723,820 104,847,632 117,398,831 117,481,491 134,113,332 134,298,235 Excess (deficiency) of revenuesover (under) expenditures (30,645,500) (17,618,553) (7,434,651) (2,884,268) (5,185,096) (2,317,082) (9,652,614) (5,376,210) (11,959,921) (3,884,242) OTHER FINANCING SOURCES (USES)Refunding bonds issued - 12,625,000 13,940,000 - - 32,245,000 6,910,000 - 1,660,000 Premium on bonds issued 150,733 667,702 2,296,042 350,071 432,879 3,772,133 1,039,610 955,225 978,386 9,570,000 Issuance of debt 12,000,000 5,000,000 - 5,065,000 10,595,000 - 1,940,000 11,845,000 8,355,000 894,793 Capital lease obligations - - 29,905 - - - 1,700,000 - 75,622 (1,675,000) Payment to refund bond escrow agent - (12,998,419) (16,050,003) - - (28,097,931) (7,789,058) - - 33,908 Transfer in 10,136,842 6,849,982 7,074,436 9,598,187 9,257,105 9,711,565 9,137,082 9,805,859 9,682,182 11,412,228Transfer out (5,285,873) (2,336,625) (3,599,726) (4,571,226) (4,484,282) (4,847,771) (6,384,490) (6,295,989) (6,639,012) (8,554,069)Proceeds from sale of capital assets 98,192 23,259 9,622 23,288 21,258 19,585 24,148 43,897 85,327 38,631Total other financing sources 17,099,894 9,830,899 3,700,276 10,465,320 15,821,960 12,802,581 6,577,292 16,353,992 12,537,505 13,380,491 NET CHANGE IN FUND BALANCES (13,545,606)$ (7,787,654)$ (3,734,375)$ 7,581,052$ 10,636,864$ 10,485,499$ (3,075,322)$ 10,977,782$ 577,584$ 9,496,249$ Debt service as a percentageof noncapital expenditures 13.8% 14.2% 14.3% 13.4% 13.2% 13.6% 12.7% 12.5% 12.1% 12.1%Source: City of Allen Comprehensive Annual 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) 107 Fiscal Year Ended September 30, Real Property Personal PropertyLess: Tax-Exempt PropertyTotal Taxable Assessed ValueTotal Direct Tax Rate2010 7,546,057,552$ 627,120,557$ 855,810,360$ 7,317,367,749$ 0.55500 2011 7,592,460,367 673,537,481 876,322,043 7,389,675,805 0.55400 2012 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 Sources:City of Allen Budget DocumentsCollin Central Appraisal DistrictEstimated Market Value
CITY OF ALLEN, TEXAS TABLE 6 DIRECT AND OVERLAPPING PROPERTY TAX RATES (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS (Uaudited) 108 Fiscal Year Ended September 30,Operating/General RateGeneral Obligation Debt Service Total DirectAllen Independent School DistrictPlano Independent School DistrictMcKinney Independent School DistrictLove Joy Independent School DistrictCollin CountyCollin County Community College District2010 0.41075 0.14425 0.55500 1.54000 1.32840 1.54000 1.53500 0.24250 0.08630 2011 0.40908 0.14492 0.55400 1.54000 1.35340 1.52800 1.53500 0.24000 0.08630 2012 0.40533 0.14767 0.55300 1.67000 1.37340 1.54000 1.53500 0.24000 0.08630 2013 0.40506 0.14694 0.55200 1.67000 1.37340 1.54000 1.53500 0.24000 0.08630 2014 0.40912 0.14088 0.55000 1.67000 1.45300 1.67000 1.53500 0.23750 0.08364 2015 0.39836 0.14164 0.54000 1.64000 1.44800 1.67000 1.56000 0.23500 0.08196 2016 0.40627 0.12373 0.53000 1.61000 1.43900 1.67000 1.56000 0.22500 0.08196 2017 0.39627 0.12373 0.52000 1.59000 1.43900 1.62000 1.67000 0.20840 0.08122 2018 0.39274 0.11726 0.51000 1.57000 1.43900 1.62000 1.67000 0.19225 0.07981 2019 0.39346 0.10454 0.49800 1.55000 1.43900 1.59000 1.67000 0.18079 0.08122 Source: Collin Central Appraisal DistrictCity Direct Rates Overlapping Rates
CITY OF ALLEN, TEXAS TABLE 7 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (Unaudited) 109 TaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValueaTaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValuebVAA Improvements LLC 160,963,346$ 1.15% Coventry II DDR/Trademark Montgomery Farm 133,138,544$ 1.82%AT&T Mobility LLC 160,243,944 1.15% Village At Allen LP 105,131,593 1.44%Watters Creek Owner LLC 125,111,460 0.90% AT&T Mobility LLC 86,924,025 1.19%Allen Premium Outlets LP 107,764,510 0.77% Chelsea Allen Development LP 70,000,000 0.96%Cisco Systems Inc 86,873,456 0.62% Oncor Electric Delivery Company 35,206,362 0.48%Creekside Acquisition LP 66,500,000 0.48% Lexington Allen LP 34,429,245 0.47%Benton Pointe LP 63,700,000 0.46% TC Village Inc 30,660,534 0.42%Settler's Gate Apartments LP 63,100,000 0.45% BH Settler's Gate Apartments LP 30,500,000 0.42%AT&T Services Inc 62,440,495 0.45% BH Benton Pointe Apartments LLC 29,561,441 0.40%Twin Creeks Crossing LP 48,600,000 0.35% Worthing Allen Station LP 25,700,000 0.35%Total 945,297,211$ 6.78% Total 581,251,744$ 7.95%Total Assessed Valuation 13,951,135,799$ 100.00% Total Assessed Valuation 7,317,367,749$ 100.00%Source: Collin Central Appraisal DistrictNotes: aTaxpayers are assessed on January 1, 2018 (2018 tax year) for the 2019 fiscal year. bTaxpayers are assessed on January 1, 2009 (2009 tax year) for the 2010 fiscal year.20192010
CITY OF ALLEN, TEXAS TABLE 8 AD VALOREM TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Unaudited) 110 Fiscal Year Ended September 30,Total Tax Levy for Fiscal Year AmountPercentage of LevyCollections in Subsequent Years AmountPercentage of Levy2010 40,506,583$ 40,162,971$ 99.15 % 321,544$ 40,484,515$ 99.95 %2011 41,262,761 41,006,394 99.38 % 224,883 41,231,278 99.92 %2012 42,945,211 41,817,303 97.37 % 514,069 42,331,373 98.57 %2013 44,390,125 44,005,302 99.13 % 356,575 44,361,877 99.94 %2014 46,466,114 45,924,321 98.83 % 490,249 46,414,570 99.89 %2015 49,958,933 49,472,535 99.03 % 422,874 49,895,408 99.87 %2016 54,342,759 53,821,573 99.04 % 442,503 54,264,076 99.86 %2017 58,617,868 58,282,589 99.43 % 248,613 58,531,202 99.85 %2018 63,184,129 62,950,713 99.63 % 115,403 63,066,116 99.81 %2019 67,684,728 67,511,154 99.74 % - 67,511,154 99.74 %Source: Collin County Tax AssessorTotal Collections to DateCollected within the Fiscal Year of the Levy
CITY OF ALLEN, TEXAS TABLE 9 RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (Unaudited) 111 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax NotesOther ObligationsWater and Sewer Revenue BondsOther ObligationsTotal Primary GovernmentPercentage of Personal IncomeaPer Capitaa2010 105,550,000$ 4,685,000$ -$ 1,053,242$ 12,960,000$ 6,179$ 124,254,421$ 4.24% 1,456 2011 104,330,000 4,455,000 - 914,918 11,770,000 (34,414) 121,435,504 4.01% 1,402 2012 99,365,000 1,060,000 - 1,957,998 10,535,000 (74,053) 112,843,945 3.42% 1,281 2013 96,735,000 800,000 - 2,433,439 9,370,000 456,061 109,794,500 2.96% 1,224 2014 99,245,000 530,000 - 4,615,649 8,015,000 691,493 113,097,142 3.19% 1,241 2015 95,690,000 490,000 - 7,258,749 6,735,000 596,700 110,770,449 2.81% 1,188 2016 93,920,844 450,000 1,940,000 1,700,000 5,760,000 448,387 104,219,231 2.73% 1,102 2017 96,184,995 405,000 1,255,000 1,250,000 4,760,000 282,326 104,137,321 2.60% 1,043 2018 94,460,400 - 635,000 864,245 13,850,800 719,391 110,529,836 2.34% 1,077 2019 91,466,739 - 2,600,000 85,991 16,637,388 569,182 111,359,300 2.37% 1,039 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) 112 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax Notes TotalPercentage of Actual Taxable Value of PropertyaPer Capitab2010 105,550,000$ 4,685,000$ -$ 110,235,000$ 1.51% 1,292$ 2011 104,330,000 4,455,000 - 108,785,000 1.47% 1,256 2012 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 1,940,000 96,310,844 0.95% 1,018 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 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, 2019 (Unaudited) 113 Debt OutstandingEstimated Percentage Applicable (a)Estimated Share of Direct and Overlapping DebtDebt repaid with property taxes:Allen I.S.D. 605,825,427$ 90.31% 547,120,943$ Plano I.S.D. 855,305,000 0.85% 7,270,093 McKinney I.S.D. 534,395,000 0.14% 748,153 Lovejoy I.S.D. 166,105,234 10.45% 17,357,997 Collin County 392,565,000 10.09% 39,609,809 Collin College 239,445,000 10.09% 24,160,001 Subtotal, overlapping debt636,266,995$ City of Allen direct debt outstanding86,415,000$ 100.00% 86,415,000 Total Direct and Overlapping Debt722,681,995$ 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) 114 Fiscal Year Ended September 30,Total RevenuesaLess: Operating ExpensesbNet Available RevenueAnnual RequirementcTimes Coverage2010 28,773,833 20,620,871 8,152,962 1,698,662 4.80 2011 32,088,556 19,752,880 12,335,676 1,703,356 7.24 2012 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 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) 115 Fiscal Year Ended September 30,Estimated PopulationaPersonal Income Per Capita Personal IncomebSchool EnrollmentcUnemployment Rated2010 85,315 2,930,399,620$ 34,348$ 18,715 6.7%2011 86,633 3,030,508,973 34,981 19,387 7.2%2012 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%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.
CITY OF ALLEN, TEXAS TABLE 14 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (Unaudited) 116 EmployerTotal EmployeesPercentage of Total City Employment EmployerTotal EmployeesPercentage of Total City EmploymentAllen Independent School District 2,875 8.21% Allen Independent School District 2,402 9.54%Experian Information Solutions 800 2.29% Presbyterian Hospital 950 3.77%City of Allen 839 2.40% City of Allen 820 3.26%Jack Henry & Associates 662 1.89% Experian 594 2.36%Frontier Communications 630 1.80% Jack Henry & Associates 398 1.58%Netscout 450 1.29% Sanmina SCI 220 0.87%Andrew's Distributing 489 1.40% State Farm 190 0.75%Texas Health Presbyterian Hospital 384 1.10% Quest Medical 159 0.63%PFS Web Inc 347 0.99% Amphenol Fiber Systems International 138 0.55%WatchGuard Video 323 0.92% Photronics 130 0.52%Total 7,799 22.28% Total 6,001 23.84%Total Allen Daytime Employees 35,007 Total Allen Daytime Employees 25,171Source: Top ten employers and employee count provided by Allen Economic Development Corporation.20192010
CITY OF ALLEN, TEXAS TABLE 15 FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION & PROGRAM LAST TEN FISCAL YEARS (Unaudited) 117 FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS(Unaudited)Function/Program2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General Government and Administration 55.50 56.00 57.50 62.00 64.00 67.00 70.50 72.50 75.50 77.00 Public Safety 255.00 257.50 276.50 284.50 286.00 295.00 299.00 299.00 305.00 316.00 Public Works 52.50 54.00 53.00 53.00 54.50 55.50 59.00 59.00 60.50 62.50 Culture and Recreational 213.87 215.36 214.86 214.50 212.27 215.71 221.31 221.31 226.32 228.32 Water and Sewer 60.50 63.50 63.50 66.50 68.00 69.00 70.00 74.00 76.50 79.00 Golf Course 34.08 32.49 23.63 32.54 32.54 33.64 33.64 33.64 33.64 33.64 Community Development 29.00 28.00 28.00 26.00 27.00 27.50 28.50 27.50 30.50 32.00 Risk Management 2.00 2.00 2.00 3.00 4.00 4.00 4.00 4.00 4.00 3.50 Economic Development 4.25 4.25 4.25 4.25 6.25 7.00 7.00 7.00 7.00 7.50 Total 706.70 713.10 723.24 746.29 754.56 774.35 792.95 797.95 818.96 839.46 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) 118 Function/Program2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Public Safety Police Number of Employees 157 160 172 174 175 183 185 185 189 199 Number of Violations (Citations) 17,504 17,925 13,812 13,902 19,943 14,000 13,645 18,778 17,025 21,060 Fire Number of Employees 98 98 104 110 111 112 114 114 116 117 Number of Fire/Other runs 1,362 1,468 1,325 1,377 1,541 1,622 1,822 1,886 1,896 1,899 Number of EMS runs 2,885 3,155 3,193 3,613 3,703 3,812 4,162 4,210 4,667 4,898Development Services Streets paved (miles) 4341415562 Building Permits Issueda4,689 4,993 5,192 6,013 9,538 7,549 7,022 7,116 7,126 9,414Cultural and Recreational Parks and Recreation Park maintained & operated per acre 4,887$ 5,393$ 5,117$ 3,827$ 4,022$ 4,083$ 4,092$ 4,668$ 4,675$ 3,679$ Participants in Leisure Service Programs 581,535 624,643 683,645 666,452 646,719 568,503 638,367 911,064 955,441 1,002,717 Rounds of Golfc37,857 38,775 0 33,615 45,546 39,723 44,478 47,010 44,163 49,293 Library Volumes in Collectionb127,665 122,522 124,471 124,226 128,501 132,380 138,041 141,774 139,605 146,699Water and Sewer Number of Water Consumers 27,094 27,495 27,974 28,669 29,124 29,750 30,332 30,920 31,391 31,922 Average Daily Water Consumption (gallons) 14,542,980 17,115,783 14,336,000 14,479,000 11,863,621 13,284,000 14,472,000 15,107,156 15,926,000 15,454,057 Maximum Storage Capacity (million of gallons) 31.0 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33.0Sanitation Recyclables Collected (tons) 9,374 9,307 9,517 9,667 9,920 10,015 10,108 10,578 10,723 10,073 Solid Waste Collected (tons) 53,660 56,233 53,960 53,445 55,142 59,591 62,009 63,712 66,333 65,242Source: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 ASSET STATISTICS BY FUNCTION & PROGRAM LAST TEN FISCAL YEARS (Unaudited) 119 Function/Program2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Police Patrol Units 23232727272728313131 Fire Stations 4 4 5 5 5 5 5 5 5 5 Police Motorcycle Units 4 4 4 4 4 4 4 4 4 4Development Services Streets-Paved (miles) 318 321 325 326 330 331 336 341 347 349 Alleys-Paved (miles) 163 163 163 163 165 166 167 168 169 169Cultural and Recreational Parks (acres) 576 576 597 597 599 599 607 614 689 691 Playgrounds 32323232323232323232 Swimming Pools (outdoor) 1 1 1 1 1 1 1 1 1 1 Recreation Centers 1 1 1 1 1 1 1 1 1 1 Senior Center 1 1 1 1 1 1 1 1 1 1 Tennis Courts 5 5 5 5 5 5 5 5 5 5 Natatorium 1 1 1 1 1 1 1 1 1 1 Visitor (Youth) Center 1 1 1 1 1 1 1 1 1 1 Golf Course 1 1 1 1 1 1 1 1 1 1 Event Center 1 1 1 1 1 1 1 1 1 1Water and Sewer Water Mains (miles) 452 456 461 467 471 474 481 494 506 515 Fire Hydrants 3,981 4,022 4,144 4,210 4,329 4,398 4,560 4,675 4,982 4,934 Sanitary Sewers (miles) 339 342 346 352 354 356 361 370 379 386 Storm Sewer Lines (miles) 105 106 107 108 109 110 112 117 123 129Source: City Of Allen DepartmentsFiscal Year Ended September 30