ANNUAL COMPREHENSIVE FINANCIAL REPORTAnnual Comprehensive
Financial Report
FISCAL YEAR ENDED SEPTEMBER 30, 2022
CITY OF ALLEN, TEXAS
CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2022
AS PREPARED BY THE
FINANCE DEPARTMENT
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents
i
Page Exhibit
Introductory Section
Letter of Transmittal vii
Certificate of Achievement xii
Organizational Chart xiii
Elected Officials and Administrative Officers xiv
Financial Section
Independent Auditor’s Report 3
Management's Discussion and Analysis 7
Basic Financial Statements
Government-Wide Statements:
Statement of Net Position 21 1
Statement of Activities 22 2
Fund Financial Statements:
Governmental Funds Financial Statements
Balance Sheet – Governmental Funds 24 3
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 26 4
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds 28 5
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 30 6
Proprietary Funds Financial Statements
Statement of Net Position – Proprietary Funds 31 7
Reconciliation of the Statement of Net Position
Proprietary Funds to the Government-Wide
Statement of Net Position 32 8
Statement of Revenues, Expenses, and Changes
In Net Position – Proprietary Funds 33 9
Reconciliation of the Statement of Revenues,
Expenses, and Changes in Net Position of
Proprietary Funds to the Statement of Activities 34 10
Statement of Cash Flows – Proprietary Funds 35 11
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 36 12
Statement of Changes in Fiduciary Net Position 37 13
Component Units Financial Statements
Statement of Net Position – Component Units 38 14
Statement of Activities – Component Units 39 15
Notes to the Financial Statements 41
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents – Continued
ii
Page Exhibit
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios –
Supplemental Death Benefits Fund 85 A-1
Schedule of OPEB Contributions –
Supplemental Death Benefits Fund 86 A-2
Schedule of Changes in Net OPEB Liability (Asset) and
Related Ratios – Defined Benefit Retiree Healthcare Plan 87 A-3
Schedule of OPEB Contributions –
Defined Benefit Retiree Healthcare Plan 88 A-4
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS) 89 A-5
Schedule of Contributions – Retirement Plan (TMRS) 90 A-6
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 91 A-7
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual 92 A-8
Notes to the Required Supplementary Information 93
Combining and Budgetary Comparison Schedules
Major Governmental Funds
Budgetary Comparison Schedule – Debt Service Fund 97 B-1
Nonmajor Governmental Funds
Combining Balance Sheet 99 B-2
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances 100 B-3
Internal Service Funds
Combining Statement of Net Position 102 C-1
Combining Statement of Revenues, Expenses, and 103 C-2
Changes in Fund Net Position
Combining Statement of Cash Flows 104 C-3
Discretely Presented Component Units
Balance Sheet-Allen Economic Development Corporation 106 D-1
Reconciliation of the Governmental Fund Balance Sheet to the
Statement of Net Position 107 D-2
Statement of Revenues, Expenditures, and Change
in Fund Balance 108 D-3
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities 109 D-4
Balance Sheet-Allen Community Development Corporation 110 D-5
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 111 D-6
Statement of Revenues Expenditures, and Change
in Fund Balance 112 D-7
Reconciliation of the Governmental Fund Statement of
Revenues, Expenditures, and Change in Fund Balance
to the Statement of Activities 113 D-8
City of Allen, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents – Continued
iii
Page Table
Statistical Section
Net Position by Component 118 1
Changes in Net Position 119 2
Fund Balances, Governmental Funds 121 3
Changes in Fund Balances - Governmental Funds 122 4
Assessed Value and Estimated Actual Value of Taxable Property 123 5
Direct and Overlapping Property Tax Rates 124 6
Principal Property Taxpayers 125 7
Ad Valorem Tax Levies and Collections 126 8
Ratio of Outstanding Debt by Type 127 9
Ratio of General Bonded Debt Outstanding 128 10
Direct and Overlapping Governmental Activities Debt 129 11
Pledged Revenue Coverage 130 12
Demographic and Economic Statistics 131 13
Principal Employers 132 14
Full-Time Equivalent City Government Employees by
Function & Program 133 15
Operating Indicators by Function & Program 134 16
Capital Assets Statistics by Function & Program 135 17
iv
v
Introductory Section
vi
305 CENTURY PARKWAY • ALLEN, TEXAS 75013-8042 • 214.509.4100
WEB: www.cityofallen.org • EMAIL: coa@cityofallen.org
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March 9, 2023
Mayor Kenneth M. Fulk
The Honorable Mayor and Members of the Allen City Council,
Citizens of Allen:
The Finance Department is pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of
Allen, Texas (the City), for the fiscal year ended September 30, 2022.
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, 2022, issued by Weaver and Tidwell, L.L.P. The independent auditors’ report is located at
the beginning of the financial section of the ACFR.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides
a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of
transmittal and the two should be read in conjunction with each other.
REPORTING ENTITY
This report includes all funds of the City including its component units. Component units are legally separate entities
for which the City is financially accountable but are not part of the City’s operations. The Allen Economic
Development Corporation (AEDC) and Allen Community Development Corporation (ACDC) are included in the
financial statements as discretely presented component units.
CITY PROFILE
The City of Allen is located in Collin County, which is the 16th fastest-growing county in the nation. Collin County’s
population reached 1,109,462 in 20221 and is expected to reach 2.4 million by 2050. Located 25 miles north of
downtown Dallas on US 75, Allen encompasses approximately 27 square miles. The George Bush Tollway and
Sam Rayburn Tollway (Hwy 121) provide direct access into the Metroplex and access to Love Field (27 miles) and
Dallas Ft Worth International Airport (31 miles). The City of Allen sits in a prime location for restaurants, shopping
centers and other retail venues. The quality of the City’s community attracts well-educated residents with a high
level of spending power and disposable income. Allen’s population reached 109,039 residents in 2022, more than
doubling from just over 45,000 in the year 2000 and is projected to reach approximately 140,000 at build-out.
Incorporated in 1953, Allen is a home rule charter city. The Charter can be amended only by a vote of the people
and provides for seven non-partisan Council members, including the Mayor, to be elected at-large to staggered
terms of three years. The Council is responsible for enacting ordinances, resolutions, and regulations governing
the City as well as adopting the annual budget which serves as the foundation for financial planning and control.
The City Council appoints the City Manager, who has full responsibility for carrying out Council policies and
administering City operations. The Council also appoints the Municipal Judge and various advisory boards.
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City service departments provide a full range of services including police and fire protection, emergency ambulance
service, municipal courts, building code enforcement, library, parks and recreation, tourism, water and sewer
services, sanitation/solid waste services, traffic engineering, and construction and maintenance of streets and
infrastructure. The City currently supports a staff of 858.69 full time equivalent employees.
ECONOMIC CONDITIONS AND OUTLOOK
Regional Economy
The Dallas-Fort Worth area has an incredibly diversified economy, an extremely low unemployment rate, a growing
labor force, low cost of living, affordable real estate, and a superior business climate. The City of Allen’s
unemployment rate as of September 2022 was 2.8%, and the Collin County unemployment rate was 3.0% -- both
of which were below the national rate of 3.5%. The city has seen the job market increase by 7.9% over the last 5
years. 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
$112,603 in 2022, and over 59% of the City’s residents have earned a bachelor’s degree or higher.
Allen’s Position in the Region
Along with being situated in an ideal location just 12 miles north of Dallas on US 75, Allen’s appealing demographics
have spurred along record-breaking growth. The population of 109,039 is expanding at a moderate growth rate.
Allen is a community that offers exceptional housing, award-winning schools, steady job growth, and dynamic
business climate all of which are strong factors in the success of the City’s economy.
Allen is a vibrant city with award winning amenities. The pro-business environment and superior quality of life come
together to empower Allen’s residents and businesses to achieve higher levels of success. This unique combination
has received national recognition, including Wallet Hub ranking Allen the 2nd best real-estate market in America.
(2022)
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. The
ratings on the City’s General Obligation debt were reaffirmed at AAA by Standard and Poor’s and Aaa by Moody’s.
The Water and Sewer Revenue Bonds are rated ‘AAA’ from Standard and Poor’s and Aa2 from Moody’s. S&P’s
recent rating report supporting the ‘AAA’ rating stated the following credit factors:
Very strong economy
Very strong management with strong financial policies and practices
Very strong budgetary flexibility and strong budgetary performance
Very strong liquidity
Adequate debt and contingent liability position
Strong institutional framework score.
During fiscal year 2016, the City began a CIP Bond Program that totaled $93 million and estimated to be completed
over seven years. Since that time Allen has issued $62,810,000 related to the bond program. In fiscal year 2022,
the City issued $23,000,000 of General Obligation Improvement Bonds to construct and improve park, library and
public safety facilities and to improve and maintain streets, bridges and sidewalks within the City.
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Fiscal Year 2022 Highlights
During fiscal year 2022, 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.
The City continues to meet the growing diversity of residents by adding a variety of housing types--single-family
homes, townhomes, and multifamily units; single-family and townhome revenue activity represent the predominant
revenue sources. Permit activity for commercial and mixed-use development showed the greatest revenue across
all development types, due largely to the development activity in the Watters Creek District and The Farm mixed-
use development. The City also administered Community Development Block Grant funds that funded rent and
utility assistance to 74 households and 15 home rehabilitation projects in Allen’s aging neighborhoods. All funds
were administered to programs impacting low-moderate income persons within the City of Allen.
The City has an overall crime rate of 10.26 per 1,000 residents compared to other communities of similar population
size, the City has a crime rate that is one of the lowest in the nation. According to SafeWise’s list of Texas’s 50
Safest Cities of 2022, Allen ranks 38th safest city in Texas and was the third safest city listed with a population
exceeding 100,000 residents. Regarding violent crimes, NeighborhoodScout's research shows that Allen's violent
crime rate is 1 per 1,000 inhabitants, which is well below the national average for all communities of all population
sizes.
The Fire Department is currently focused on improving emergency services and care for its citizens and visitors.
The department has updated medical treatment protocols to include the latest in-patient care, expanded
professional development programs for staff, and provided education programs to the community. Additionally, the
department has implemented a new records management system to better organize data. Construction of Fire
Station #6 is currently underway and the department has increased inter-operability with neighboring fire
departments through joint training and resource sharing.
Environmentally focused public activities came back to life in fiscal year 22 as the COVID pandemic subsided.
Educational opportunities were provided to home schoolers, local schools, scouts, and youth camps. The City was
able to provide 60 programs to 5,137 children and adults. Various Keep Allen Beautiful (KAB) youth contests and
award ceremonies were conducted before the Allen City Council at Regular City Council meetings. Our franchised
waste services provider, Community Waste Disposal, continued to support all residential and commercial waste
and recycling activities including the major KAB events like Great American Clean Up and Allen Recycles Day.
The City celebrated its 22nd annual Arbor Day and marks the City’s 21st year as a Tree City USA, and its 20th
National Arbor Day Foundation Growth Award. KAB and the City continue to be recognized by Keep Texas Beautiful
as a Gold Star Affiliate and Sustained Excellence Award Winner. The highlight of this year’s accomplishments was
selection by Keep Texas Beautiful for the Governor’s Community Achievement Award for Population Category 9.
This was KAB’s third time to receive this award that recognizes the City and KAB as the best in public environmental
activities among cities of our size. The award came with a $290,000 grant to beautify the city.
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,
continue to grow with the cloud Library service, notably through a consortium with thirty-three other Texas libraries,
to offer more than 215,000 items. Physical books and DVD’s remain more popular than ever, especially among
children and families. During fiscal year 2022, the Library was recognized by the Texas Municipal Library Directors
Association for the eighth consecutive year for Achievement of Library Excellence. The Library also provided
citizens with access to information outside the Library through databases, Interlibrary Loans, and expanded options
for digital books, audiobooks, digital magazines, and digital graphic novels from cloudLibrary.
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During fiscal year 2022, the CDC oversaw the expenditure of Type B half-cent sales tax revenue on projects that
enhanced the overall quality of life in Allen. Some of these projects included: construction of various hike and bike
trails,; Allen USA Celebration, Demand Response (paratransit transportation);, planning for a new dog park, Allen
Heritage Village renovations, various playground renovation/replacements and shade structure additions,
completion of the steam locomotive restoration at Allen Heritage Center construction of Stephen G Terrell
Recreation Center and Park and master planning of Molsen Farm.
The Allen Economic Development Corporation (AEDC) worked to bring a variety of companies and related
development to Allen. The AEDC facilitated the kickoff of development along SH 121 with completion of Phase 1
for The Farm in Allen, including the roadway and utility infrastructure, a shared parking garage and The HUB
entertainment facility. AEDC also facilitated the commitment of two additional entertainment users to the
development, Chicken N Pickle and High 5, and negotiated incentive agreements for FarmWORK One, a 101,000-
SF Class A Office building to be constructed at The Farm. MD7 was welcomed into their new suite in One Bethany
West, which will house approximately 200 of their employees. Credit Union of Texas was assisted in redeveloping
415 Century, the former WatchGuard facility that is now home to CUTX’s FairLease program. Growing tech firm
Strike Photonics purchased a 165,000-SF office building with plans to add a capital investment of $84 million and
400 new jobs. Substantial progress was made in the construction of Allen Tech Hub, a 105,000 SF technology-
focused office building in Watters Creek by Heady Investments. Additional office tenants who committed to Allen
in FY22 include National Produce Consultants (Foodbuy) and Keynote Photonics (Visitech).
One of the City’s major draws, The Credit Union of Texas Event Center, consists of a main arena and support
facilities, the Allen Community Ice Rink, the south parking structure, and shared ownership of the north parking
structure with The Village at Allen. The Center hosts a wide variety of activities including shows, concerts,
exhibitions, contests, athletic competitions, cultural events, trade shows, as well as civic ceremonies and
activities. We are beginning to see pre-pandemic levels of participation at sporting events and live shows helping
to bring in an annual estimated impact of over $12,000,000. The Event Center is also home to professional sports
with the Allen American Hockey Club (ECHL), and the Dallas Sidekicks Soccer Club (MASL) residing there. The
Center celebrated its 13th anniversary in November 2022.
With all this happening within Allen’s borders, it’s clear the City is working hard to provide every resident and visitor
with great experiences, services, and safety.
Relevant Financial Policies
The City’s financial policies and practices set forth the basic framework for the fiscal management of the City. The
policies and procedures were developed within the parameters established by applicable provisions of the Texas
Local Government Code, the City of Allen charter, and internal management laws, and are reviewed on a periodic
basis. The Investment Policy is also approved annually by the Council. All other policies (accounting, budgeting,
procurement, capital improvements, asset management, and risk management) are internal policies approved by
the Finance department and City Manager. On a quarterly basis, the Finance Department prepares financial and
investment reports that are presented to the City Council.
Internal Control
Management of the City, through its Finance Department, is responsible for the implementation, maintenance, and
monitoring of a set of comprehensive internal controls. The goal of the City’s system of internal control is to limit
opportunity for theft, fraud, or abuse by ensuring adequate separation of duties and systematic monitoring with a
positive control environment set at the top of the organization. The internal control structure is designed to provide
reasonable 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.
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AWARDS AND ACKNOWLEDGEMENTS
Awards -- The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Allen for its Annual Comprehensive
Financial Report for the fiscal year ended September 30, 2021. Fiscal year 2021 was the twenty-third consecutive
year for which the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement,
for Excellence in Financial Reporting, a government must publish an easily readable and efficiently organized
annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe
that our current ACFR continues to meet the Certificate of Achievement Programs requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The City also received the GFOA's Award for Distinguished Budget Presentation for its annual program of services
dated October 1, 2021. This is the twenty-second consecutive year the City has received the award. In order to
qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be
proficient in several categories including policy document, financial plan, operations guide, and communications
device.
Acknowledgements – We would like to express our sincere gratitude to City’s personnel who contributed to the
production of this report, especially the accounting division. Appreciation is expressed to representatives of
Weaver, 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,
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CITY OF ALLEN
ORGANIZATIONAL CHART
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CITY OF ALLEN, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
SEPTEMBER 30, 2022
City Council
Mayor Kenneth M. Fulk
Mayor Pro Tem, Place No. 4 Chris Schulmeister
Councilmember, Place No. 1 Daren Meis
Councilmember, Place No. 2 Carl Clemencich
Councilmember, Place No. 3 Dave Cornette
Councilmember, Place No. 5 Dave Shafer
Councilmember, Place No. 6 Ben Trahan
Management Staff
City Manager Eric Ellwanger
Chief Financial Officer Peter Phillis
Assistant Chief Financial Officer Mark Davies
Chief Accountant Tru Nguyen
1
Financial Section
2
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
3
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Allen, Texas
Report on the Audit of the Financial Statements
Opinions
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, 2022, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements 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, 2022, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the
City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our
opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America, and for
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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
The Honorable Mayor and Members of City Council
City of Allen, Texas
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements.
Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis and the 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.
The Honorable Mayor and Members of City Council
City of Allen, Texas
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Supplementary 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 combining and budgetary comparison schedules, as
listed in the table of contents, are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The combining and budgetary comparison schedules are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the combining and budgetary comparison schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information included in the (ACFR). The other information
comprises the Introductory Section and Statistical Section but does not include the financial statements
and our auditor's report thereon. Our opinions on the financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon. In connection with our
audit of the financial statements, our responsibility is to read the other information and consider whether
a material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it
in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 9, 2023 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 solely 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 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 9, 2023
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Management’s Discussion and Analysis
As management of the City of Allen, Texas (the “City”), we offer readers of the City’s financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2022.
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, 2022, by $666,066,842. Of this amount,
$147,411,252 (22%) represented the unrestricted net position, which may be used to meet the
City’s ongoing obligations to citizens and creditors.
The City’s total net position increased by $18,891,440. Out of this, $9,741,178 is from governmental
activities and $9,150,262 is from business-type activities.
On a government-wide basis, the City’s total assets increased by $27,712,991 or 3% and total
liabilities increased by $2,412,842 or 1%.
As of September 30, 2022, the City’s governmental funds reported combined ending fund
balances of $130,731,687 an decrease of $12,844,229 or 9% in comparison to the previous year.
As of September 30, 2022, $28,615,271 or 22% of the fund balance, is available for spending at the
government’s discretion (unassigned fund balance).
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements.
Government-wide financial statements - The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances in a manner like that of a private-sector
business.
The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources,
and liabilities and deferred inflows of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as useful indicators of whether the financial position of
the City is improving or deteriorating. To assess the overall health of the City, other non-financial factors
should also be taken into consideration, such as changes in the City’s property tax base and the condition
of the City’s infrastructure.
The Statement of Activities presents information that shows how the City’s net position changed during
the fiscal year. All changes in net position are reported when the underlying event that gives rise to the
change occurs, regardless of the timing of related cash flows. Accordingly, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g. uncollected taxes and earned but unused compensated absences). Both the Statement of Net
Position and the Statement of Activities are prepared utilizing the accrual basis of accounting.
8
In the government-wide financial statements, on pages 21 through 23, the City is divided into three kinds
of activities:
Governmental activities - Most of the City’s basic services are reported here, including the police,
fire, library, community development, parks and recreation, municipal court, and general
administration. Property and sales taxes, charges for services, franchise fees, and state and federal
grants finance most of these activities.
Business-type activities - The City’s water, sewer, solid waste, drainage, and golf course operations
are reported here. These are functions intended to recover all or a significant portion of their costs
through user fees and charges.
Component units - The City includes two separate legal entities in this report: the Allen Economic
Development Corporation (AEDC) and the Allen Community Development Corporation (ACDC).
Although legally separate, these component units are important because the City is financially
accountable for them.
Fund financial statements - A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The funds of the City can be divided into three categories: governmental, proprietary,
and fiduciary funds.
Governmental Funds - These funds are used to account for most of the City’s activities, which are
essentially the same functions as governmental activities in the government-wide statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus on
near-term inflows and outflows of spendable resources, as well as resources available for future spending
at fiscal year-end. These funds are reported using the modified accrual basis of accounting, which
measures cash and all other financial assets that can be readily converted to cash. When compared
with similar information in the broader government-wide financial statements, readers may better
understand the long-term impact of the government’s near-term financing decisions. Reconciliation is
provided, which details the relationships or differences between governmental activities and
governmental funds; reconciliation follows the fund financial statements.
The City maintains several individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures,
and changes in fund balances for the General Fund, Debt Service Fund, General Capital Projects Fund,
Grants Fund and General Obligation Bond Fund, all of which are major funds. Data for the other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of the non-major governmental funds is provided in the form of combining statements elsewhere in this
report. The basic governmental fund financial statements can be found on pages 23 through 30 of this
report.
Proprietary Funds - The City maintains two different types of proprietary funds: enterprise funds and internal
service funds. Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The City uses enterprise funds to account for its water and
sewer operations, solid waste collection and disposal services, drainage operations, and golf course
operations. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses its internal service funds to account for vehicle,
machinery, and equipment replacements and costs associated with workers compensation, liability and
property insurance, and employee medical and dental insurance programs. These services have been
included within governmental activities in the government-wide financial statements as they
predominantly benefit governmental rather than business-type functions.
9
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 31 through 35 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
of the primary government. Fiduciary funds are not reported in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements are located on pages 36 and 37 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 41 through 81 of this report.
Required Supplementary Information includes budgetary comparison schedules that have been
provided for the general fund and grants fund to demonstrate compliance with the budget. Required
supplementary information also includes schedules of changes in net liabilities and related ratios and on
contributions to the City's pension and other postemployment benefits (OPEB). The City participates in
Texas Municipal Retirement System (TMRS) for its pension plan and provides its employees with
post-retirement healthcare benefits (OPEB). The required supplementary information is found on pages
84 through 92 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 $666,066,842 at September 30, 2022.
By far the largest portion of the City’s net position, $501,323,754 or 75%, reflects its net investment in capital
assets (i.e. land, buildings, infrastructure, vehicles, machinery, and equipment). The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future spending.
An additional portion of the City’s net position, $17,331,836 or 3%, represents resources that are subject to
external restrictions on how those resources can be used. The remaining balance of $147,411,252 (22%) is
available to be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City reported a positive balance in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
10
The net position for governmental activities and business-type activities are summarized as follows:
2022 2021 2022 2021 2022 2021
187,962,485$ 195,021,780$ 87,665,268$ 83,767,718$ 275,627,753$ 278,789,498$
481,832,657 455,623,057 131,379,364 126,714,228 613,212,021 582,337,285
669,795,142 650,644,837 219,044,632 210,481,946 888,839,774 861,126,783
10,041,701 13,438,962 1,252,185 1,664,766 11,293,886 15,103,728
153,972,967 154,118,063 33,303,148 36,272,031 187,276,115 190,390,094
25,320,841 21,517,657 5,090,349 3,366,712 30,411,190 24,884,369
179,293,808 175,635,720 38,393,497 39,638,743 217,687,305 215,274,463
14,678,073 12,324,295 1,701,440 1,456,351 16,379,513 13,780,646
Net investment in capital assets 392,949,598 388,795,081 108,374,156 113,396,556 501,323,754 502,191,637
Restricted 16,101,110 14,807,800 1,230,726 764,763 17,331,836 15,572,563
Unrestricted 76,814,254 72,520,903 70,596,998 56,890,299 147,411,252 129,411,202
Total net position 485,864,962$ 476,123,784$ 180,201,880$ 171,051,618$ 666,066,842$ 647,175,402$
Current and other assets
Table 1
Statement of Net Position
Governmental Activities Business-type Activities Total
Deferred inflows of resources
Net position:
Capital assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
As of September 30, 2022, the City had an overall increase in net position of $18,891,440 for the primary
government, which represents an increase of $9,741,178 for governmental activities and an increase of
$9,150,262 for business-type activities. Details are in Table 2 as listed below.
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services 13,259,722$ 11,923,642$ 71,283,519$ 62,161,777$ 84,543,241$ 74,085,419$
Operating grants and contributions 5,477,428 4,874,743 - - 5,477,428 4,874,743
Capital grants and contributions 11,162,094 8,535,198 4,072,343 5,695,888 15,234,437 14,231,086
General revenues:
Property taxes 74,289,475 71,946,802 - - 74,289,475 71,946,802
Sales tax 27,609,918 25,599,945 - - 27,609,918 25,599,945
Franchise taxes 7,481,353 6,821,738 - - 7,481,353 6,821,738
Hotel motel taxes 2,074,533 1,337,147 - - 2,074,533 1,337,147
Other taxes 1,425,226 1,171,378 - - 1,425,226 1,171,378
Investment earnings (4,921,824) 1,118,970 (1,830,191) 398,387 (6,752,015) 1,517,357
Gain on sale of capital assets 291,333 322,084 - 7,585 291,333 329,669
Miscellaneous 8,689,016 5,311,149 1,147,237 444,175 9,836,253 5,755,324
Total revenues 146,838,274 138,962,796 74,672,908 68,707,812 221,511,182 207,670,608
Expenses:
General government 26,469,412 22,940,360 - - 26,469,412 22,940,360
Public safety 63,891,672 49,532,988 - - 63,891,672 49,532,988
Public works 9,148,396 19,661,514 - - 9,148,396 19,661,514
Culture and recreation 36,053,830 29,359,242 - - 36,053,830 29,359,242
Community development 5,587,202 6,330,539 - - 5,587,202 6,330,539
Interest on long-term debt 2,312,561 3,103,192 - - 2,312,561 2,980,513
Water and sewer - - 46,917,817 46,442,937 46,917,817 46,442,937
Solid waste services - - 7,088,901 6,824,441 7,088,901 6,824,441
Drainage - - 1,349,306 1,497,014 1,349,306 1,497,014
Golf course - - 3,800,645 3,557,076 3,800,645 3,557,076
Total expenses 143,463,073 130,927,835 59,156,669 58,321,468 202,619,742 189,249,303
3,375,201 8,034,961 15,516,239 10,386,344 18,891,440 18,421,305
Transfers 6,365,977 4,007,336 (6,365,977) (4,007,336) - -
Change in net position 9,741,178 12,042,297 9,150,262 6,379,008 18,891,440 18,421,305
476,123,784 464,081,487 171,051,618 164,672,610 647,175,402 628,754,097
Net position, end of year 485,864,962$ 476,123,784$ 180,201,880$ 171,051,618$ 666,066,842$ 647,175,402$
Table 2
Changes in Net Position
Net position, beginning of year
Governmental Activities Business-type Activities Total
Change in net position before transfers
11
Governmental activities
Revenues – The following chart visually illustrates the City’s revenue by sources for governmental activities:
Charges for services
9%Operating grants
4%
Capital grants
7%
Property taxes
48%
Sales taxes
18%
Franchise taxes
5%Other
5%
Transfers
4%
Revenues by Source - Governmental Activities
Revenues for the City’s governmental activities totaled $146,838,274, an increase of $7,875,478 (6%). Major
components of revenue increases and decreases are explained as follows:
Property taxes increased by $2,342,673 (3%), due to an increase in assessed value and new
property additions.
Sales taxes increased by $2,009,973 (8%), as a result of better than expected economic
conditions. The City of Allen is largely dependent upon retail sales. The consumer purchased
more goods than expected.
Franchise taxes increased by $659,615 (10%), due to new growth in the City.
Hotel motel taxes increased $737,386 (55%), as a result of increased tourism.
Charges for services increased by $1,336,080 (11%) primarily due to City facilities being operational
for a full year compared to a partial year of operations emerging from COVID.
Operating grants and contributions increased by $602,685 (12%), due to recognition of grant
revenue.
Capital grants and contributions increased by $2,626,896 (31%) with higher construction activities.
Investment earnings decreased by $6,040,794 (540%) over prior year, as a result of interest rates
and a decrease in fair market values of investments during fiscal 2022.
Expenses for governmental activities totaled $143,463,073, an increase of $12,535,238 (10%) from fiscal
year 2021. Components of increases and decreases are explained as follows:
Expenses for General Government increased by $3,529,052 (15%), due primarily to increased costs
related to services.
Expenses for Public Safety increased by $14,358,684 (29%), due primarily to the scheduled salaries
market adjustment for both Fire and Police departments.
Expenses for Public Works decreased by $10,513,118 (53%), because the City is completing its
bond program.
Expenses for Culture and Recreation increased by $6,694,588 (23%), due to increased activities.
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The following chart illustrates the relationship between expenses and program revenues for governmental
type activities:
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Expenses and Program Revenues - Governmental Activities
Expenses
Revenues
Business-type activities –
Revenues from business-type activities totaled $74,672,908, an increase of $5,965,096, or 9%. Major
components of the net decrease are as follows:
Charges for services for business-type activities increased by $9,121,742 (15%), due to an increase
in water and sewer rates and a very dry summer.
Capital grants and contributions decreased by $1,623,545 (29%) over the prior year due to lower
construction activity.
Investment earnings decreased by $2,228,578 (559%) over fiscal 2021 due to higher interest rates
offset by a larger decrease in the fair market value of investments during fiscal year 2022.
Expenses for business-type activities increased by $835,201, or 1%. The increase was due to an increase in
cost of services and supplies. The following chart illustrates the relationship between expenses and
program revenues for business-type activities:
13
Revenues – The following chart visually illustrates the City’s revenue by sources for business-type activities:
Charges for services
94%
Capital grants and
contributions
5%
Other
-1%
Revenues by Source - Business-type Activities
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Water and sewer Solid waste services Drainage Golf course
Expenses and Program Revenues - Business-type Activities
Expenses
Revenues
14
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 $130,731,687, a decrease of $12,844,229 or (9%) in comparison with the prior fiscal year. Approximately
22%, or $28,615,271, 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 $2,639 related to prepaid items and $26,789 associated with inventories. The restricted portion
includes: debt service ($920,207), capital expenditures ($49,769,921), tourism ($2,476,625), asset forfeiture
($94,754), state and federal grants ($238,514), park acquisition and development ($1,700,193), tax
increment financing agreements ($9,506,301), court technology ($118,653), juvenile case manager
($1,610), PEG fees ($1,067,468), radio system ($445,621), court security ($4,991), public safety and library
enhancements ($397,349), and cemetery trust ($64,234). In addition, $35,208,805 was assigned to capital
expenditures and $71,742 to other purposes.
General Fund. The General Fund is the chief operating fund of the City. As of the end of the current fiscal
year, the total unassigned fund balance was $28,615,271, while the total fund balance was $28,779,924.
As a measure of the general fund’s liquidity, it may be useful to compare unassigned fund balance and
total fund balance to total fund expenditures. Unassigned fund balance represents 25% of total General
Fund expenditures.
The original budget included a planned balanced budget with no change in fund balance. However,
the General Fund balance increased by $1,015,631 or 4% during the current fiscal year. This was the result
of achieving actual expenditures below budget and reductions in general government expenditures.
Debt Service Fund. The Debt Service Fund balance of $920,207, all of which is restricted for the payment
of debt, represents an increase from the prior year of $1,828 (less than 1%). The City’s annual debt service
requirements outweighed the higher property valuation.
Capital Projects Fund. The General Capital Projects Fund provides information on cash financed capital
projects and had an ending fund balance of $35,209,556 at September 30, 2022, a decrease of
$7,633,826. Revenues and other financing sources totaled $3,958,460, which includes $2,950,000 from
other funds to cash finance capital projects, and $805,533 in charges for median and streets
improvements. Total expenditures and other uses of $11,592,286 consisted primarily of $2,639,430 for the
Credit Union of Texas Event Center sports lighting and $1,867,638 Alma/Ridgeview Drive construction.
Grants Fund. The Grants Fund accounts for monies received from other governmental agencies that have
restricted legal requirements and multi-year budgets and had an ending fund balance of $238,514, a
decrease of $22,943 (9%) from the prior year. In fiscal year 2022, the Grants Fund had remaining funds
from the 2021 advanced funding of the COVID-19 Emergency Rental Assistance Program (ERAP). ERAP
expenditures of $1,612,722 were recognized as revenue in fiscal year 2022 and the remaining balance of
$545,677 will be returned to Collin County. The Grants Fund also received $2,680,796 advanced funding
from the Shuttered Venue Operators Grant through the Small Business Administration which was
recognized as revenue in fiscal year 2022. Advanced funding of $5,079,935 from the American Rescue
Plan Act (ARPA) was received in fiscal year 2021 and an additional $5,079,935 was received in fiscal year
2022. There was $1,399,057 in ARPA expenditures during fiscal year 2022 and the remaining balance of
$8,760,812 is recorded as unearned revenue.
15
General Obligation Bond Fund. The General Obligation Bond Fund had an ending fund balance of
$49,769,921, which represents a decrease of $7,764,269 (13%) from the prior year. Expenditures totaled
$32,706,880, which consisted mainly of $26,476,191 for the S. G. Terrell Community P&R Center, $570,000
for street and alleys improvements, $1,919,088 for citywide roof replacement and $1,729,157 for roadway
improvements. Other financing sources consisted mainly of issuance of bonds totaling $23,000,000 and
the related premium of $2,777,611.
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, 2022, the unrestricted net position for all enterprise
funds were as follows: Water and Sewer, $62,781,335; Solid Waste, $2,782,907; Drainage, $1,016,255 and
Golf Course, $2,439,517. The total change in net position for these funds was an increase of $8,767,895; a
decrease of $715,306; an increase of $242,553; and an increase of $737,409, respectively.
The Water and Sewer Fund had an increase in net position as a result of an increase in water and sewer
rates. The Solid Waste Fund had a decrease in net position due to a reduction in garbage collection fees.
The Drainage Fund had an increase in net position due to due to an increase in inspection fees and a
decrease in operating expenses. The Golf Course Fund had an increase in net position due to the increase
in driving range and green fee revenues.
General Fund Budgetary Highlights
During April and May each year, all accounts are evaluated to determine whether they are in line with
the original budgets. Accounts that are under or over budget are revised to meet year-end final
estimates. New projects are not added to the year-end estimate; only the cost of maintaining the current
base operation is revised as needed. As is customary, during fiscal year ended September 30, 2022, the
City Council amended the budget for the General Fund one time.
Adjustments made during fiscal year 2022 increased the original revenue budget by $8,982,775 and
increased the expenditure budget by $6,803,649. Due to actual expenditures being $5,203,753 less than
the revised budget and revenues under the revised budget of $2,505,466, the City was able to increase
the unassigned General Fund balance by $1,132,047, after net transfers. The unassigned fund balance of
$28,687,013 is equal to 25%, or 90 days of next year’s operating budget.
CAPITAL ASSETS
The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2022, was $613,212,021 (net of accumulated depreciation). Investment in capital assets
includes land and improvements, buildings, vehicles, machinery and equipment, park land and facilities,
roads and bridges. About 79% of the capital assets are governmental and 21% represent business-type
activities. There was an increase of 5% in the investment in capital assets for the current fiscal year.
2022 2021 2022 2021 2022 2021
Land 164,253,182$ 156,158,009$ 4,091,626$ 4,091,626$ 168,344,808$ 160,249,635$
Buildings 67,379,851 70,134,557 - 67,379,851 70,134,557
- - 107,329,605 111,587,595 107,329,605 111,587,595
Other Improvements 191,827,851 197,377,984 936,316 985,301 192,764,167 198,363,285
Furniture and fixtures 150,386 209,569 - 150,386 209,569
Vehicles 5,374,307 7,197,873 463,267 591,232 5,837,574 7,789,105
Machinery and equipment 6,807,609 2,485,312 1,381,460 915,980 8,189,069 3,401,292
Construction in progress 46,039,471 22,059,753 17,177,090 8,542,494 63,216,561 30,602,247
Total 481,832,657$ 455,623,057$ $131,379,364 126,714,228$ 613,212,021$ 582,337,285$
Towers, tanks, and pump stations
Table 3
Capital Assets at Year-end, Net of Accumulated Depreciation
Governmental Activities Business-type Activities Total
16
The major governmental-type capital improvement projects and developer contributions during the
current fiscal year included the following:
Developer Contributed Street, Alley, and Right of Way 11,162,094$
S. G. Terrell Community P&R Center 26,625,288
Allen Event Center Sports Lightings & Audio/Visual 2,639,430
Fire Station #6 1,547,760
Street construction:
Alma/Ridgeview Roadway Improvements 2,812,321$
Allen Drive Gateway 1,968,022
Street and Alleys Improvements 967,563
Business-type capital improvement projects and developer contributions during the current fiscal year
include the following:
Developer Contributed Water Mains and Sewer Lines 1,577,824$
Windridge 1&2 Water and Sewer Rehabilitation 5,082,311
24" Waterline Sloan Creek 1,464,124
Advanced Meter Infrastructure 815,363
Additional information on the City’s capital assets can be found in Note 4 of this report.
DEBT ADMINISTRATION
As shown in Table 4, the City’s total outstanding debt of the primary government at September 30, 2022,
was $187,276,115. Of this total, $153,972,967 (82%) was associated with governmental activities and
$33,303,148 (18%) was business-type activities. Total gross bonded debt and a note payable accounted
for $163,843,749, which include $95,885,000 of General Obligation (G.O.) bonds and $21,870,000 of
Certificates of Obligation backed by the full faith and credit of the primary government; $27,400,000
secured solely by water and sewer revenues; notes payable balance of $2,200,000 and $16,488,749 in net
premiums and discounts from bond issuances. Other long-term debt relates to accrued compensated
absences, net pension liability, net OPEB liability, and capital leases liability.
Outstanding debts associated with the component units totaled $31,149,477. Out of which, $30,785,000
are secured by future sales tax revenue; and $364,477 are premiums and discounts from bond issuances.
During fiscal year 2022, the City issued General Obligation Bonds in the amount of $23,000,000.
The revenue bond debt for both component units relates to debt issued to support public infrastructure
improvements, land acquisition, and construction of the Allen Event Center. Total debt of the Component
Units decreased by 12%. Total debt for the Allen Economic Development Corporation decreased by 18%,
and for the Allen Community Development Corporation, total debt decreased by 8%.
17
2022 2021 2022 2021 2022 2021 2022 2021
General obligation bonds 95,885,000$ 82,380,000$ -$ -$ 95,885,000$ 82,380,000$ -$ -$
Certificates of obligation 21,870,000 22,945,000 - - 21,870,000 22,945,000 - -
Revenue bonds payable - - 27,400,000 28,955,000 27,400,000 28,955,000 - -
Premiums and discounts 13,419,341 15,370,849 3,069,408 3,480,106 16,488,749 18,850,955 364,477 727,972
Sales tax revenue bonds - - - - - - 30,785,000 33,845,000
Tax notes 2,200,000 3,580,000 - - 2,200,000 3,580,000 - 666,522
Total gross bonded debt 133,374,341 124,275,849 30,469,408 32,435,106 163,843,749 156,710,955 31,149,477 35,239,494
Compensated absences 8,021,323 8,228,298 801,496 836,174 8,822,819 9,064,472 - -
Net pension liability 9,390,772 19,586,451 1,302,113 2,435,432 10,692,885 22,021,883 - -
Net OPEB liability 2,165,664 1,924,927 259,532 232,784 2,425,196 2,157,711 - -
Right-to-use leases 1,020,867 - 279,154 - 1,300,021 - - -
Financed purchases - 102,538 191,445 332,535 191,445 435,073 - -
Total other long-term debt 20,598,626 29,842,214 2,833,740 3,836,925 23,432,366 33,679,139 - -
Total 153,972,967$ 154,118,063$ 33,303,148$ 36,272,031$ 187,276,115$ 190,390,094$ 31,149,477$ 35,239,494$
Bonds and Other Long-Term Liabilities
Outstanding Debt at Year-end
Table 4
Gross bonded debt
Other long-term debt
Governmental Activities Business-type Activities Total Primary Government Component Units
The underlying credit ratings from both Moody’s Investors Service and Standard and Poor’s for the City’s
General Obligation Bonds, Certificates of Obligation, Waterworks and Sewer System Revenue Bonds,
Community Development Corporation’s Sales Tax Bonds, and Economic Development Sales Tax Revenue
Bonds are shown below in Table 5. Additional information on the City’s long-term debt can be found in
Note 5 to the basic financial statements.
Table 5
Bond Ratings
Moody's
Investors
Service
Standard &
Poor's
General Obligation Bonds Aaa AAA
Certificates of Obligation Aaa AAA
Water & Sewer Revenue
Bonds Aa2 AAA
CDC Sales Tax Revenue Bonds Aa2
EDC Sales Tax Revenue Bonds Aa2
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City of Allen, Texas continues to be financially strong. Although the economy is the primary factor,
the City’s elected and appointed officials considered many factors when setting the fiscal year
2023budget, tax rates and fees that will be charged for the business-type activities. The priority for fiscal
year 2023 continues to be maintaining quality service while observing prudent spending practices.
Highlights of the 2023 budget include:
Balanced budget, with total revenues equal to or greater than total expenditures
• Property tax rate reduced by 4.88 cents to $0.4212 per $100 assessed value
• Total City budget $303 million
• General Fund budget $118 million
• Sustained funding for equipment and facilities improvements
• Proposed general obligation bonds issues of about $14.2 million, with $4.9 million for streets
and drainage and $6 million for the Parks, and $3.3 million for Public Safety.
• Additional 78.48 full-time equivalent (FTE) positions (58 for recreational employees).
18
Request for Information
The financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional information,
please contact the Finance Department at 305 Century Parkway, Allen, Texas, 75013, or call (214) 509-4626.
19
Basic Financial Statements
20
City of Allen, Texas Exhibit 1
Statement of Net Position
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
21
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Cash and cash equivalents 75,170,752$ 26,638,083$ 101,808,835$ 29,935,091$
Investments 102,979,067 33,180,920 136,159,987 29,020,307
Receivables (net of allowance
for uncollectibles) 9,919,516 12,532,273 22,451,789 5,145,887
Internal balances (1,576,984) 1,576,984 - -
Prepaid items and other assets 492,151 10,594,325 11,086,476 -
Net OPEB asset 951,194 - 951,194 -
Inventories 26,789 - 26,789 -
Restricted cash and cash equivalents - 3,142,683 3,142,683 -
Capital assets:
Non-depreciable 210,292,653 21,268,716 231,561,369 17,192,450
Depreciable (net of depreciation/amortization) 271,540,004 110,110,648 381,650,652 41,758,481
TOTAL ASSETS 669,795,142 219,044,632 888,839,774 123,052,216
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 2,703 25,587 28,290 510,177
Deferred outflows of resources - OPEB 657,448 65,831 723,279 -
Deferred outflows of resources - pension 9,381,550 1,160,767 10,542,317 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 10,041,701 1,252,185 11,293,886 510,177
LIABILITIES
Accounts payable 8,753,577 3,009,658 11,763,235 706,730
Accrued liabilities 3,708,090 200,677 3,908,767 17,551
Accrued interest payable 766,143 336,957 1,103,100 77,696
Customer deposits - 1,223,960 1,223,960 -
Unearned revenue 10,360,635 - 10,360,635 -
Retainage payable 1,732,396 319,097 2,051,493 70,376
Non-current liabilities:
Due within one year 20,593,881 2,808,727 23,402,608 3,277,799
Due in more than one year 133,379,086 30,494,421 163,873,507 27,871,678
TOTAL LIABILITIES 179,293,808 38,393,497 217,687,305 32,021,830
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - OPEB 568,518 34,394 602,912 -
Deferred inflows of resources - pension 14,109,555 1,667,046 15,776,601 -
TOTAL DEFERRED INFLOWS OF RESOURCES 14,678,073 1,701,440 16,379,513 -
NET POSITION
Net investment in capital assets 392,949,598 108,374,156 501,323,754 35,948,162
Restricted for:
Debt service 192,791 1,230,726 1,423,517 1,245,087
Tourism 2,476,625 - 2,476,625 -
Park acquisition and development 1,700,193 - 1,700,193 -
State and federal grants 94,754 - 94,754 -
Tax increment financing 9,506,301 - 9,506,301 -
Other purposes 2,130,446 - 2,130,446 -
Unrestricted 76,814,254 70,596,998 147,411,252 54,347,314
TOTAL NET POSITION 485,864,962$ 180,201,880$ 666,066,842$ 91,540,563$
Primary Government
City of Allen, Texas
Statement of Activities
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
22
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental activities:
General government 26,469,412 570,560$ -$ -$
Public safety 63,891,672 2,221,519 1,685 -
Public works 9,148,396 484,796 - 3,066,921
Culture and recreation 36,053,830 7,154,042 3,222,212 -
Community development 5,587,202 2,828,805 2,253,531 8,095,173
Interest on long-term debt 2,312,561 - - -
Total governmental activities 143,463,073 13,259,722 5,477,428 11,162,094
Business-type activities:
Water and sewer 46,917,817 57,519,014 - 4,072,343
Solid waste 7,088,901 7,278,382 - -
Drainage 1,349,306 1,984,067 - -
Golf course 3,800,645 4,502,056 - -
Total business-type activities 59,156,669 71,283,519 - 4,072,343
TOTAL PRIMARY GOVERNMENT 202,619,742$ 84,543,241$ 5,477,428$ 15,234,437$
COMPONENT UNITS:
Allen Economic Development Corporation 5,742,913$ -$ -$ -$
Allen Community Development Corporation 9,110,109 - - -
TOTAL COMPONENT UNITS 14,853,022$ -$ -$ -$
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Hotel motel taxes
Other taxes
Investment earnings (loss)
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
23
Governmental Business - Type COMPONENT
Activities Activities TOTAL UNITS
(25,898,852)$ -$ (25,898,852)$ -$
(61,668,468) - (61,668,468) -
(5,596,679) - (5,596,679) -
(25,677,576) - (25,677,576) -
7,590,307 - 7,590,307 -
(2,312,561) - (2,312,561) -
(113,563,829) - (113,563,829) -
- 14,673,540 14,673,540 -
- 189,481 189,481 -
- 634,761 634,761 -
- 701,411 701,411 -
- 16,199,193 16,199,193 -
(113,563,829)$ 16,199,193$ (97,364,636)$ -$
-$ -$ -$ (5,742,913)$
- - - (9,110,109)
-$ -$ -$ (14,853,022)$
74,289,475$ -$ 74,289,475$ -$
27,609,918 - 27,609,918 27,118,734
7,481,353 - 7,481,353 -
2,074,533 - 2,074,533 -
1,425,226 - 1,425,226 -
(4,921,824) (1,830,191) (6,752,015) (721,684)
291,333 - 291,333 5,572,117
8,689,016 1,147,237 9,836,253 136,408
6,365,977 (6,365,977) - -
123,305,007 (7,048,931) 116,256,076 32,105,575
9,741,178 9,150,262 18,891,440 17,252,553
476,123,784 171,051,618 647,175,402 74,288,010
485,864,962$ 180,201,880$ 666,066,842$ 91,540,563$
Changes in Net Position
Net (Expense) Revenue and
Primary Government
City of Allen, Texas
Balance Sheet
Governmental Funds
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
24
General
Debt Capital
General Service Projects
ASSETS
Cash and cash equivalents $ 1,195,024 924,885$ 6,338,357$
Investments 26,813,425 - 29,080,761
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes 146,499 38,785 -
Sales taxes 5,025,306 - -
Accounts receivable - - -
Accrued interest 64,176 - 154,175
Other 3,537,082 - 420,043
Inventories 26,789 - -
Prepaid items 1,888 - 751
TOTAL ASSETS 36,810,189$ 963,670$ 35,994,087$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 3,850,269 4,736 455,168$
Accrued liabilities 2,213,120 - 240,480
Unearned revenue 986,248 - -
Retainage payable 63,372 - 88,883
TOTAL LIABILITIES 7,113,009 4,736 784,531
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 145,439 38,727 -
Unavailable revenue - charges for services 702,051 - -
Unavailable revenue - miscellaneous 8,689 - -
Unavailable revenue - interest 15,691 - -
Unavailable revenue - fines 45,386 - -
TOTAL DEFERRED
INFLOWS OF RESOURCES 917,256 38,727 -
FUND BALANCES
Nonspendable
Prepaid items 1,888 - 751
Inventories 26,789 - -
Restricted
Debt service - 920,207 -
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 64,234 - -
Assigned
Capital expenditures - - 35,208,805
Other purposes 71,742 - -
Unassigned 28,615,271 - -
TOTAL FUND BALANCES 28,779,924 920,207 35,209,556
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 36,810,189$ 963,670$ 35,994,087$
Exhibit 3
25
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
9,936,738$ 32,927,668$ 7,579,597$ 58,902,269$
- 21,288,682 8,121,340 85,304,208
- - - 185,284
- - - 5,025,306
88,830 - 231,870 320,700
- 59,011 44,087 321,449
- - - 3,957,125
- - - 26,789
406,958 - - 409,597
10,432,526$ 54,275,361$ 15,976,894$ 154,452,727$
783,069$ 2,961,855$ 43,766$ 8,098,863$
- - 119,563 2,573,163
9,374,387 - - 10,360,635
36,556 1,543,585 - 1,732,396
10,194,012 4,505,440 163,329 22,765,057
- - - 184,166
- - - 702,051
- - - 8,689
- - - 15,691
- - - 45,386
- - - 955,983
- - - 2,639
- - - 26,789
- - - 920,207
- 49,769,921 - 49,769,921
- - 2,476,625 2,476,625
- - 94,754 94,754
238,514 - - 238,514
- - 1,700,193 1,700,193
- - 9,506,301 9,506,301
- - 118,653 118,653
- - 1,610 1,610
- - 1,067,468 1,067,468
- - 445,621 445,621
- - 4,991 4,991
- - 397,349 397,349
- - - 64,234
- - - 35,208,805
- - - 71,742
- - - 28,615,271
238,514 49,769,921 15,813,565 130,731,687
10,432,526$ 54,275,361$ 15,976,894$ 154,452,727$
City of Allen, Texas Exhibit 4
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
26
Total fund balance of governmental funds balance sheet 130,731,687$
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. 481,832,657
Funds comprising the net OPEB asset are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 951,194
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred charges on refunding 2,703$
Deferred outflows of resources - OPEB 657,448
Deferred outflows of resources - pension 9,381,550
Deferred inflows of resources - OPEB (568,518)
Deferred inflows of resources - pension (14,109,555) (4,636,372)
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.(766,143)
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 ($39,813,307) are net of the
amount allocated to business-type activities ($1,576,984) and to capital
assets ($7,467,400).30,768,923
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 955,983
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
General obligation bonds (95,885,000)$
Certificates of obligation (21,870,000)
Tax notes (2,200,000)
Right-to-use leases (1,020,867)
Premiums/discounts (13,419,341)
Compensated absences (8,021,323)
Net OPEB liability (2,165,664)
Net pension liability (9,390,772) (153,972,967)
Net position of governmental activities 485,864,962$
27
City of Allen, Texas
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
28
General
Debt Capital
General Service Projects
REVENUES
Ad valorem taxes, penalties and interest 56,716,915$ 15,557,736$ -$
Municipal sales tax 27,386,273 - -
Franchise taxes 7,342,205 - -
Licenses, permits and fees 2,810,280 - -
Charges for services 9,531,473 - 1,428,280
Fines 1,313,927 - -
Gifts and contributions 2,917,033 - -
Hotel / motel fees - - -
Intergovernmental 2,934,604 - 769,934
Investment earnings (loss) (1,407,248) 54,610 (1,455,693)
Miscellaneous 2,841,103 - 265,939
Total revenues 112,386,565 15,612,346 1,008,460
EXPENDITURES
Current
General government 21,986,036 - 3,257,907
Public safety 51,483,662 - -
Public works 6,532,462 - 1,889,075
Culture and recreation 28,059,988 - 635
Community development 3,736,000 - 71,968
Capital outlay 615,725 - 6,372,701
Debt service:
Principal retirement 454,530 12,052,538 -
Interest and fiscal charges 37,744 4,374,306 -
Total expenditures 112,906,147 16,426,844 11,592,286
Excess (deficiency) of revenues
over (under) expenditures (519,582) (814,498) (10,583,826)
OTHER FINANCING SOURCES (USES)
Issuance of bonds - - -
Premium on bonds issued - - -
Right-to-use leases 318,698 - -
Transfers in 6,095,044 816,326 2,950,000
Transfers out (4,934,474) - -
Proceeds from sale of capital assets 55,945 - -
Total other financing sources (uses)1,535,213 816,326 2,950,000
NET CHANGE IN FUND BALANCES 1,015,631 1,828 (7,633,826)
FUND BALANCES, BEGINNING OF YEAR 27,764,293 918,379 42,843,382
FUND BALANCES, END OF YEAR 28,779,924$ 920,207$ 35,209,556$
Exhibit 5
29
General Other Total
Obligation Governmental Governmental
Grants Bond Funds Funds
-$ -$ 2,025,808$ 74,300,459$
- - 223,645 27,609,918
- - 139,148 7,481,353
- - 291,540 3,101,820
- - - 10,959,753
- - 111,299 1,425,226
- - - 2,917,033
- - 2,074,533 2,074,533
3,649,774 - 157,185 7,511,497
(179) (549,609) (276,237) (3,634,356)
- - 41,485 3,148,527
3,649,595 (549,609) 4,788,406 136,895,763
- 273,991 735,063 26,252,997
12,669 - 111,252 51,607,583
2,584,498 3,550,898 - 14,556,933
30,539 435,974 2,024,011 30,551,147
- - - 3,807,968
1,049,364 28,446,017 265,115 36,748,922
- - - 12,507,068
- - - 4,412,050
3,677,070 32,706,880 3,135,441 180,444,668
(27,475) (33,256,489) 1,652,965 (43,548,905)
- 23,000,000 - 23,000,000
- 2,777,611 - 2,777,611
- - - 318,698
4,532 - - 9,865,902
- (285,391) (94,818) (5,314,683)
- - 1,203 57,148
4,532 25,492,220 (93,615) 30,704,676
(22,943) (7,764,269) 1,559,350 (12,844,229)
261,457 57,534,190 14,254,215 143,575,916
238,514$ 49,769,921$ 15,813,565$ 130,731,687$
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, 2022
The Notes to Financial Statements are an integral part of this statement.
30
Net change in fund balances - total governmental funds (12,844,229)$
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. 36,748,922
Governmental funds report gain (loss) on disposal of capital assets. However, in the statement
of activities the gain (loss) is reported.(6,864)
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. 11,162,094
Depreciation/amortization expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation/amortization
expense is not reported as expenditures in the governmental funds. (22,394,653)
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. 71,121
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:
Bonds issued (23,000,000)
Premium on bonds issued (2,777,611)
Issuance of right-to-use lease (318,698)
Bond and lease principal retirement 12,507,068
Amortization of bond premiums 4,729,119
Deferred charges on refunding changes (13,518) (8,873,640)
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. 4,424,396
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. (220,470)
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net operating and
non-operating income and transfers of the internal service funds is reported with
governmental activities net of amounts allocated to business-type activities. 1,894,594
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.(220,093)
Change in net position of governmental activities 9,741,178$
City of Allen, Texas Exhibit 7
Statement of Net Position
Proprietary Funds
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
31
Governmental
Activities
Water and Solid Golf Internal Service
Sewer Waste Drainage Course Total Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 22,172,198$ 1,331,682$ 1,013,099$ 2,121,104$ 26,638,083$ 16,268,483$
Investments 31,092,564 872,950 - 1,215,406 33,180,920 17,674,859
Receivables, net of allowance for uncollectibles:
Accounts 8,771,261 768,633 236,304 - 9,776,198 16,711
Accrued interest 157,332 4,849 - 10,328 172,509 92,941
Other 2,040,368 521,569 4,200 17,429 2,583,566 -
Inventories - - - - - 82,554
Restricted cash and cash equivalents 3,142,683 - - - 3,142,683 -
Total current assets 67,376,406 3,499,683 1,253,603 3,364,267 75,493,959 34,135,548
NONCURRENT ASSETS
CAPITAL ASSETS
Land 4,091,626 - - - 4,091,626 -
Construction in progress 17,177,090 - - - 17,177,090 1,596,139
Other improvements - - 1,230,546 - 1,230,546 -
Towers, tanks, and pump stations 217,485,078 - - - 217,485,078 -
Vehicles 817,002 140,440 151,554 - 1,108,996 18,117,806
Machinery and equipment 2,997,356 - 486,135 2,001,628 5,485,119 5,683,003
Total capital assets 242,568,152 140,440 1,868,235 2,001,628 246,578,455 25,396,948
Less: accumulated depreciation/amortization (112,826,704) (91,286) (726,698) (1,554,403) (115,199,091) (17,929,548)
Capital assets, net of accumulated depreciation/amortization 129,741,448 49,154 1,141,537 447,225 131,379,364 7,467,400
PREPAID ASSETS
Prepaid items 10,594,325 - - - 10,594,325 -
Total noncurrent assets 140,335,773 49,154 1,141,537 447,225 141,973,689 7,467,400
TOTAL ASSETS 207,712,179 3,548,837 2,395,140 3,811,492 217,467,648 41,602,948
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 25,587 - - - 25,587 -
Deferred outflows of resources - OPEB 42,488 5,462 5,329 12,552 65,831 -
Deferred outflows of resources - pension 759,442 89,399 87,398 224,528 1,160,767 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 827,517 94,861 92,727 237,080 1,252,185 -
AND NET POSITION
CURRENT LIABILITIES
Accounts payable 2,346,705 401,945 44,500 216,508 3,009,658 654,714
Accrued liabilities 97,673 64,177 8,586 30,241 200,677 74
Retainage payable 319,097 - - - 319,097 -
Accrued compensated absences - current 321,127 72,948 32,618 177,922 604,615 -
Incurred but not reported claims - - - - - 1,134,853
Payable from restricted assets:
Revenue bonds payable - current 1,898,399 - - - 1,898,399 -
Finance Purchases - current - - - 143,931 143,931
Right-to-use leases - current - - - 161,782 161,782 -
Accrued interest payable 336,957 - - - 336,957 -
Customer deposits payable 1,166,304 - - 57,656 1,223,960 -
Total current liabilities 6,486,262 539,070 85,704 788,040 7,899,076 1,789,641
NONCURRENT LIABILITIES
Revenue bonds payable 28,571,009 - - - 28,571,009 -
Financed purchases - - - 47,514 47,514
Right-to-use leases - - - 117,372 117,372 -
Net OPEB liability 167,548 21,204 19,780 51,000 259,532 -
Net pension liability 892,194 81,964 78,919 249,036 1,302,113 -
Accrued compensated absences 104,569 23,754 10,621 57,937 196,881 -
Total noncurrent liabilities 29,735,320 126,922 109,320 522,859 30,494,421 -
TOTAL LIABILITIES 36,221,582 665,992 195,024 1,310,899 38,393,497 1,789,641
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 1,077,043 142,857 132,246 314,900 1,667,046 -
Deferred inflows of resources - OPEB 22,171 2,788 2,805 6,630 34,394 -
TOTAL DEFERRED INFLOWS OF RESOURCES 1,099,214 145,645 135,051 321,530 1,701,440 -
NET POSITION
Net investment in capital assets 107,206,839 49,154 1,141,537 (23,374) 108,374,156 7,467,400
Restricted for revenue bond principal and interest 1,230,726 - - - 1,230,726 -
Unrestricted 62,781,335 2,782,907 1,016,255 2,439,517 69,020,014 32,345,907
TOTAL NET POSITION 171,218,900$ 2,832,061$ 2,157,792$ 2,416,143$ 178,624,896$ 39,813,307$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 8
Reconciliation of the Statement of Net Position
of Proprietary Funds to the
Government – Wide Statement of Net Position
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
32
Amounts reported for business-type activities in the statement of net
position are different because:
Total net position per statement of net position 178,624,896$
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. 1,576,984
Total net position of business-type activities 180,201,880$
City of Allen, Texas Exhibit 9
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
33
Governmental
Activities
Water and Solid Golf Internal
Sewer Waste Drainage Course Total Service Funds
OPERATING REVENUES
Charges for sales and services:
Water sales 32,986,635$ -$ -$ -$ 32,986,635$ -$
Sewer charges 23,782,267 - - - 23,782,267 -
Connection fees 80,401 - - - 80,401 -
Garbage collections - 7,278,382 - - 7,278,382 -
Service charges 669,711 - 171,800 4,502,056 5,343,567 16,971,122
Drainage fees - - 1,812,267 - 1,812,267 -
Miscellaneous 1,030,145 36,500 25,328 55,264 1,147,237 382,942
Total operating revenues 58,549,159 7,314,882 2,009,395 4,557,320 72,430,756 17,354,064
OPERATING EXPENSES
Personnel services 5,410,351 681,525 597,523 1,747,739 8,437,138 492,001
Contractual services 32,566,425 6,264,875 164,756 1,198,867 40,194,923 12,618,132
Maintenance 754,408 12,594 241,930 222,099 1,231,031 540,234
Supplies 504,821 41,943 59,834 278,003 884,601 -
Depreciation and amortization 6,134,294 14,044 105,063 319,573 6,572,974 2,456,787
Other 999,642 73,920 180,200 19,745 1,273,507 -
Total operating expenses 46,369,941 7,088,901 1,349,306 3,786,026 58,594,174 16,107,154
OPERATING INCOME 12,179,218 225,981 660,089 771,294 13,836,582 1,246,910
NON-OPERATING REVENUES (EXPENSES)
Investment earnings (loss) (1,772,268) (46,168) 7,511 (19,266) (1,830,191) (1,290,411)
Interest expense (665,587) - - (14,619) (680,206) -
Gain on disposal of capital assets - - - - - 241,048
Total non-operating revenues (expenses) (2,437,855) (46,168) 7,511 (33,885) (2,510,397) (1,049,363)
INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 9,741,363 179,813 667,600 737,409 11,326,185 197,547
CAPITAL CONTRIBUTIONS AND TRANSFERS
Development fees 2,494,519 - - - 2,494,519 -
Capital contributions 1,577,824 - - - 1,577,824 -
Transfers in 50,811 - - - 50,811 1,814,758
Transfers out (5,096,622) (895,119) (425,047) - (6,416,788) -
Total capital contributions and transfers (973,468) (895,119) (425,047) - (2,293,634) 1,814,758
CHANGE IN NET POSITION 8,767,895 (715,306) 242,553 737,409 9,032,551 2,012,305
NET POSITION, BEGINNING OF YEAR 162,451,005 3,547,367 1,915,239 1,678,734 169,592,345 37,801,002
NET POSITION, END OF YEAR 171,218,900$ 2,832,061$ 2,157,792$ 2,416,143$ 178,624,896$ 39,813,307$
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, 2022
The Notes to Financial Statements are an integral part of this statement.
34
Amounts reported for business-type activities in the statement of activities
are different because:
Net change in fund net position- total proprietary funds 9,032,551$
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. 117,711
Change in net position of business-type activities 9,150,262$
City of Allen, Texas Exhibit 11
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
35
Governmental
Activities
Water and Solid Golf Internal
Sewer Waste Drainage Course Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 56,544,655$ 6,924,006$ 2,010,801$ 4,573,090$ 70,052,552$ -$
Cash received from transactions with other funds - - - - - 17,367,867
Cash paid to employees for services (5,890,071) (763,262) (653,384) (1,881,296) (9,188,013) (508,141)
Cash paid for goods and services (43,490,181) (6,228,730) (648,726) (1,633,232) (52,000,869) (3,135,504)
Cash paid for claims - - - - - (9,653,313)
Net cash provided by (used in) operating activities 7,164,403 (67,986) 708,691 1,058,562 8,863,670 4,070,909
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 50,811 - - - 50,811 1,814,758
Transfers out to other funds (5,096,622) (895,119) (425,047) - (6,416,788) -
Net cash provided by (used in)
non-capital financing activities (5,045,811) (895,119) (425,047) - (6,365,977) 1,814,758
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities (1,555,000) - - - (1,555,000) -
Interest and fees paid on long-term debt (1,044,535) - - (14,620) (1,059,155) -
Acquisition and construction of capital assets (9,124,641) - (86,604) - (9,211,245) (2,000,189)
Proceeds from sale of capital assets - - - - - 241,048
Financed purchases payments - - - (159,929) (159,929)
Right-to-use lease principal payments - - - (151,048) (151,048) -
Contributions from developers 2,494,519 - - - 2,494,519 -
Net cash used in capital and related
financing activities (9,229,657) - (86,604) (325,597) (9,641,858) (1,759,141)
CASH FLOWS FROM INVESTING ACTIVITIES
(Purchases) sales of investment securities (6,882,566) 1,119,958 500,085 (1,215,406) (6,477,929) 1,406,132
Interest on investments 280,202 (42,912) 10,070 (29,594) 217,766 (1,305,750)
Net cash provided by (used in) investing activities (6,602,364) 1,077,046 510,155 (1,245,000) (6,260,163) 100,382
NET CHANGE IN CASH AND CASH EQUIVALENTS (13,713,429) 113,941 707,195 (512,035) (13,404,328) 4,226,908
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 39,028,310 1,217,741 305,904 2,633,139 43,185,094 12,041,575
CASH AND CASH EQUIVALENTS, END OF YEAR 25,314,881$ 1,331,682$ 1,013,099$ 2,121,104$ 29,780,766$ 16,268,483$
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income 12,179,218$ 225,981$ 660,089$ 771,294$ 13,836,582$ 1,246,910$
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation and amortization expense 6,134,294 14,044 105,063 319,573 6,572,974 2,456,787
Change in assets and liabilities:
Accounts receivable (825,160) 33,739 5,314 - (786,107) 13,803
Other receivables (2,032,426) (390,876) (3,908) 6,539 (2,420,671) -
Prepaids (9,638,015) - - - (9,638,015) (82,554)
Inventories 90,598 - - - 90,598 -
Deferred outflows - pension 250,533 33,593 26,900 74,484 385,510 -
Deferred outflows - OPEB 3,224 432 347 957 4,960 -
Accounts payable 1,625,193 135,782 (2,006) 85,386 1,844,355 435,963
Retainage payable 80,683 - - - 80,683 -
Accrued liabilities (151,703) (24,285) (20,757) (51,447) (248,192) -
Net OPEB liability 17,387 2,327 1,872 5,162 26,748 -
Net pension liability (736,515) (98,757) (79,081) (218,966) (1,133,319) -
Compensated absences (20,107) (21,324) (2,242) 8,995 (34,678) -
Deposits 27,922 - - 9,231 37,153 -
Deferred inflows - pension 162,319 21,765 17,428 48,257 249,769 -
Deferred inflows - OPEB (3,042) (407) (328) (903) (4,680) -
Total adjustments (5,014,815) (293,967) 48,602 287,268 (4,972,912) 2,823,999
Net cash provided by (used in) operating activities 7,164,403$ (67,986)$ 708,691$ 1,058,562$ 8,863,670$ 4,070,909$
NON-CASH INVESTING ACTIVITIES:
Change in the fair value of investments (2,102,789)$ (2,074)$ (521)$ (29,594)$ (2,134,978)$ (19,825)$
NON-CASH FINANCING ACTIVITIES:
Initiation of right-to-use leases -$ -$ -$ 18,839$ 18,839$ -$
Initiation of financed purchases -$ -$ -$ 430,202$ 430,202$ -$
Contributions of capital assets from developers 1,577,824$ -$ -$ -$ 1,577,824$ -$
Reconciliation of total cash to the statement of net position
Cash and cash equivalents - current 22,172,198$ 1,331,682$ 1,013,099$ 2,121,104$ 26,638,083$ 16,268,483$
Restricted cash and cash equivalents 3,142,683 - - - 3,142,683 -
CASH AND CASH EQUIVALENTS, END OF YEAR 25,314,881$ 1,331,682$ 1,013,099$ 2,121,104$ 29,780,766$ 16,268,483$
Enterprise Funds
Business-type Activities
City of Allen, Texas Exhibit 12
Statement of Fiduciary Net Position
Fiduciary Fund
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
36
Other
Postemployment
Benefits
Trust Fund
ASSETS
CURRENT ASSETS
Cash and deposits 53,738$
Investments:
Domestic Equities 240,435
Fixed Income 710,962
International Equity 50,646
Real Estate 10,449
Total current assets 1,066,230
TOTAL ASSETS 1,066,230
NET POSITION
Restricted for postemployment benefits other than pensions 1,066,230
TOTAL NET POSITION 1,066,230$
City of Allen, Texas Exhibit 13
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
37
Other
Postemployment
Benefits
Trust Fund
DEDUCTIONS
Net decrease in fair value of investments 179,315$
Benefit payments 86,570
Administrative expense 7,943
TOTAL DEDUCTIONS 273,828
CHANGE IN NET POSITION (273,828)
NET POSITION, BEGINNING OF YEAR 1,340,058
NET POSITION, END OF YEAR 1,066,230$
City of Allen, Texas Exhibit 14
Statement of Net Position
Component Units
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
38
Allen Allen
Economic Community
Development Development
Corporation Corporation Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 15,392,780$ 14,542,311$ 29,935,091$
Investments 14,789,577 14,230,730 29,020,307
Sales tax receivable 2,473,496 2,473,496 4,946,992
Accounts receivable - 23,141 23,141
Accrued interest receivable 116,111 59,643 175,754
Total current assets 32,771,964 31,329,321 64,101,285
NONCURRENT ASSETS
CAPITAL ASSETS
Land 12,785,529 2,239,201 15,024,730
Construction in progress - 2,167,720 2,167,720
Buildings 1,004,091 36,202,922 37,207,013
Machinery & equipment - 3,282,211 3,282,211
Vehicles - 702,596 702,596
Improvements other than buildings - 39,801,391 39,801,391
Total capital assets 13,789,620 84,396,041 98,185,661
Less: accumulated depreciation (175,717) (39,059,013) (39,234,730)
Capital assets, net of accumulated depreciation 13,613,903 45,337,028 58,950,931
Total noncurrent assets 13,613,903 45,337,028 58,950,931
TOTAL ASSETS 46,385,867 76,666,349 123,052,216
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 267,137 243,040 510,177
TOTAL DEFERRED OUTFLOWS OF RESOURCES 267,137 243,040 510,177
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable 128,639 578,091 706,730
Retainage payable - 70,376 70,376
Accrued interest payable 30,983 46,713 77,696
Accrued and other liabilities 17,551 - 17,551
Current portion of long-term debt 1,427,799 1,850,000 3,277,799
Total current liabilities 1,604,972 2,545,180 4,150,152
NONCURRENT LIABILITIES
Noncurrent portion of long-term debt 9,006,678 18,865,000 27,871,678
Total noncurrent liabilities 9,006,678 18,865,000 27,871,678
TOTAL LIABILITIES 10,611,650 21,410,180 32,021,830
NET POSITION
Net investment in capital assets 11,608,903 24,339,259 35,948,162
Restricted for debt service 731,827 513,260 1,245,087
Unrestricted 23,700,624 30,646,690 54,347,314
TOTAL NET POSITION 36,041,354$ 55,499,209$ 91,540,563$
City of Allen, Texas Exhibit 15
Statement of Activities
Component Units
For the year ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
39
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 5,742,913$ -$ -$ (5,742,913)$ -$ (5,742,913)$
Allen Community
Development Corporation 9,110,109 - - - (9,110,109) (9,110,109)
TOTAL COMPONENT UNITS 14,853,022$ -$ -$ (5,742,913)$ (9,110,109)$ (14,853,022)$
General revenues:
Sales taxes 13,559,367$ 13,559,367$ 27,118,734$
Investment income (loss) (46,189) (675,495) (721,684)
Gain on disposition of capital assets 5,559,098 13,019 5,572,117
Miscellaneous 66,384 70,024 136,408
Total general revenues 19,138,660 12,966,915 32,105,575
CHANGE IN NET POSITION 13,395,747 3,856,806 17,252,553
NET POSITION, beginning of year 22,645,607 51,642,403 74,288,010
NET POSITION, end of year 36,041,354$ 55,499,209$ 91,540,563$
Component Units
40
City of Allen, Texas
Notes to Financial Statements
41
Note 1. Summary of Significant Accounting Policies
General Statement
The City of Allen (the City) was incorporated in 1953, under the provisions of Chapter 11, Title 28, Texas
Revised Civil Statutes of 1925. In 1979, the City adopted a charter making it a home rule city operating
under a Council-Manager form of government. The City provides such services as are authorized by its
charter to advance the welfare, health, comfort, safety and convenience of its inhabitants.
The accounting and reporting policies of the City relating to the funds included in the accompanying
basic financial statements conform to accounting principles generally accepted in the United States of
America applicable to state and local governments. Generally accepted accounting principles for local
governments include those principles prescribed by the Governmental Accounting Standards Board
(GASB), and the American Institute of Certified Public Accountants in the publication entitled Audits of
State and Local Governmental Units. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, the financial
statements of the City include the primary government and organizations for which the primary
government is financially accountable and other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the reporting entity's
financial statements to be misleading or incomplete.
The City is financially accountable for legally separate organizations if its officials appoint a voting majority
of an organization's governing body and either it can impose its will on that organization or there is a
potential for the organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially accountable for
governmental organizations that are fiscally dependent on it.
A primary government can impose its will on an organization if it can significantly influence the programs,
projects, or activities of, or the level of services performed or provided by, the organization. A financial
benefit or burden relationship exists if the primary government (a) is entitled to the organization's
resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization.
Some organizations are included as component units because of their fiscal dependency on the primary
government. An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes, set rates or charges, or issue bonded debt without approval by the primary
government. The following entities were found to be component units of the City and are included in the
basic financial statements:
Allen Economic Development Corporation (AEDC) - The AEDC is responsible for aiding, promoting
and furthering economic development within the City.
Allen Community Development Corporation (ACDC) - The ACDC is responsible for supporting the
improvements in community parks and recreation, streets and sidewalks, public safety and the
community library.
The members of both the AEDC’s and ACDC’s Boards of Directors are appointed by the City Council.
Both the AEDC and ACDC are fiscally dependent upon the City as the City Council approves their
budgets and must approve any debt issuance. However, the component units do not qualify for blending
because the component services directly benefit the community rather than the City itself. The AEDC and
ACDC are discretely presented as governmental fund types and do not issue separate financial
statements.
City of Allen, Texas
Notes to Financial Statements
42
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.
Adoption of New Accounting Standards- GASB 87 (Leases)
During fiscal year 2022, the City adopted GASB Statement No. 87, Leases (GASB 87), which establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under GASB 87, a lessee is required to recognize a lease liability and an
intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow
of resources, thereby enhancing the relevance and consistency of information about governments’
leasing activities. Implementation of GASB 87 resulted in no impact to the City’s beginning fund
balance/net position.
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate funds to aid financial
management and to demonstrate legal compliance. Separate statements are presented for
governmental funds, proprietary funds, and fiduciary funds. These statements present each major fund
as a separate column on the fund financial statements; all nonmajor funds are aggregated and
presented in a single column.
Governmental funds are those funds through which most governmental functions typically are financed.
The measurement focus of governmental funds is on the sources, uses and balances of current financial
resources. The City has presented the following major governmental funds:
General Fund
The General Fund is the general operating fund of the City. It is used to account for all financial resources
not accounted for in other funds. All general tax revenues and other receipts that are not restricted by
law or contractual agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges and capital improvement costs that are not paid through other funds are
paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial resources for the payment of
principal, interest and related costs on general long-term debt paid primarily from taxes levied by the
City. The fund balance of the Debt Service Fund is reserved to signify the amounts that are restricted
exclusively for debt service expenditures.
City of Allen, Texas
Notes to Financial Statements
43
General Capital Projects Fund
The General Capital Projects Fund is used to account for resources used for the acquisition and/or
construction of capital facilities by the City, except those financed by proprietary funds and not
accounted for by another capital projects fund.
Grants Fund
The Grants Fund is used to account for monies received from other governmental agencies that have
restricted legal requirements and multi-year budgets.
General Obligation Bond Capital Projects Fund
The General Obligation Bond Fund is used to account for financing, acquisitions, and construction of
improvements to City facilities and infrastructure not accounted for by other bond funds.
Business-type activities and all proprietary and fiduciary funds are accounted for on a flow of economic
resources measurement focus and the accrual basis of accounting. The accounting objectives are
determinations of net income, financial position and cash flow. All assets and liabilities are included on
the Statement of Net Position.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
relating to a proprietary fund’s principal ongoing operations. Operating expenses for the proprietary funds
include the cost of personnel and contractual services, supplies and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
The City reports the following major proprietary funds:
Enterprise Funds
Water and Sewer Fund
The Water and Sewer Fund is used to account for the provision of water and sewer services to the residents
of the City. Activities for the fund include administration, operations and maintenance of the water and
sewer system and billing and collection activities. The fund also accounts for the accumulation of
resources for, and the payment of, long-term water and sewer debt. All costs are financed through
charges to utility customers with rates reviewed regularly and adjusted, if necessary, to ensure integrity of
the fund.
Solid Waste Fund
The Solid Waste Fund is used to account for the provision of solid waste services to residents of the City.
Drainage Fund
The Drainage Fund is used to account for the provision of developing and maintaining proper drainage
services to the residents of the City.
Golf Course Fund
The Golf Course Fund is used to account for activities associated with the operations of The Courses at
Watters Creek Golf Course purchased by the City in October 2004.
Additionally, the City reports the following Internal Service Funds:
Internal Service Funds
Replacement Fund
The Replacement Fund is an internal service fund that accounts for the costs associated with the
acquisition and replacement of vehicles, machinery, and equipment through the rental of such items to
other departments.
City of Allen, Texas
Notes to Financial Statements
44
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 Fiduciary Fund is used to hold assets for the benefit of third parties (pension participants) and cannot
be used to address activities or obligations of the primary government. This fund is not incorporated into
the government-wide financial statements. The City’s fiduciary fund accounts for the assets of the
postemployment benefits trust.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured. Basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
The government-wide statements, fund financial statements for proprietary funds, and fiduciary fund
statements are reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and liabilities (whether current
or non-current) are included on the statement of net position and the operating statements present
increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water and sewer services which
are accrued. Expenses are recognized at the time the liabilities are incurred.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual, i.e., when they become both measurable and
available. “Measurable” means the amount of the transaction can be determined, and “available”
means collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. The City considers all revenues as available if they are collected within 60 days after year
end.
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on
general long-term debt which is recognized when due, and certain compensated absences and claims
and judgments which are recognized when the obligations are expected to be liquidated with
expendable available financial resources. The revenues susceptible to accrual are property and sales
taxes, franchise taxes and interest income. Other receipts (special assessments) become measurable and
available when cash is received by the City and are recognized as revenue at that time.
Cash, Cash Equivalents, and Investments
State statutes and policy as established by the City Council authorize the City to invest in certificates of
deposit, direct obligations of the U.S. Treasury, investment pools consisting of such U.S. Treasury obligations,
repurchase agreements, commercial paper and mutual funds. Substantially all operating cash and cash
equivalents are maintained in pooled cash and time deposit accounts. Interest income relating to pooled
deposits is allocated to the individual funds based on each fund’s pro rata share of total pooled deposits.
City of Allen, Texas
Notes to Financial Statements
45
For purposes of the statement of cash flows, the proprietary funds consider all highly liquid investments
(including restricted assets) with an original maturity of three months or less when purchased to be cash
equivalents, as they are available for withdrawal on demand. Investments are recorded at amortized
cost when original maturity at the time of purchase is less than one year or at market if greater than one
year.
Encumbrances
To preserve portions of applicable appropriations, encumbrance accounting is used in governmental
funds for purchase orders, contracts, and other commitments on the expenditure of funds. Under the
City’s budgetary process, appropriations lapse at fiscal year-end. Encumbrances are reported as
assigned fund balance because they do not constitute expenditures or liabilities. Encumbrances included
in assigned fund balance include $71,742 for the General Fund and $18,361,004 for the Capital Projects
Fund.
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 2021 levy was based is $15,447,172,127. Taxes are due
on October 1st and are delinquent after the following January 31st. The City is permitted by Article XI,
Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for
general governmental services, including the payment of principal and interest on general obligation
long-term debt. For the year ended September 30, 2022, the combined tax rate to finance general
government services, including the payment of principal and interest on long-term debt, was $0.47 per
$100 of assessed valuation.
In Texas, countywide central appraisal districts are required to assess all property within the appraisal
district based on 100% of its appraised value and are prohibited from applying any assessment ratios. The
value of property within the appraisal district must be reviewed every three years; however, the City may,
at its own expense, require annual reviews of appraised values. The City may challenge appraised values
established by the appraisal district through various appeals and, if necessary, legal action. Under this
legislation, the City continues to set tax rates on City property. However, if the effective maintenance and
operations tax rate, increased by 8% excluding other contractual obligations, adjusted for new
improvements, plus the calculated debt tax rate is less than the proposed city tax rate, then qualified
voters of the City may petition for an election to determine whether to limit the tax rate to no more than
the rollback tax rate.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are reported as “due to/from other funds”. Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances”.
Transactions Between Funds and Between Funds and Component Units
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund
and as a reduction of expenditures/expenses in the fund reimbursed. All other interfund transactions,
except transactions between the component units and the primary government are recorded as
transfers.
City of Allen, Texas
Notes to Financial Statements
46
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, 2022, ACDC
contributed $450,446 and AEDC contributed $108,126 to the General Fund for administrative costs. The
ACDC contributed $1,885,400 to the General Fund to service debt related to the Terrell Recreation
Center. These revenues were reflected as operating grants and contributions for the primary government
in the government-wide statement of activities.
Inventories and Prepaid Items
Inventories are valued at cost using the first-in, first-out method for fuel. 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 value to assets or materially extend asset lives are not capitalized. Renewals and betterments
are capitalized. Interest has not been capitalized during the construction period on property, plant and
equipment. Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Financed purchase assets are City owned assets and follow the depreciation of regular capital assets.
Capital assets and right-to-use assets of the City are depreciated and amortized using the straight-line
method over the following estimated useful lives:
Buildings 10 - 40 Years
Towers, tanks, and pump stations 5 - 40 Years
Infrastructure 3 - 50 Years
Machinery and equipment 3 - 15 Years
Vehicles 2 - 15 years
Furniture and fixture 5 - 10 Years
Other improvements 2 - 30 Years
Right-to-use leased equipment Lease Term
The City has established the Replacement Fund to account for the replacement of the City-owned
vehicles, machinery, and equipment. Charges for use in the form of user payments are made by City
departments to the Replacement Fund to provide for future acquisitions and replacements.
City of Allen, Texas
Notes to Financial Statements
47
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.
Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s
OPEB Plan and the additions to/deductions from the City’s OPEB Plan’s net fiduciary position have been
determined on the same basis as they were reported by the City’s Other Postemployment Benefit Plan.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with the benefit terms. The investments are reported at fair value.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net assets that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has the following items
that qualify for reporting in this category:
Deferred charges on refunding – A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
Contributions after measurement date – These contributions are deferred and recognized in the
following fiscal year.
Difference between expected and actual pension and OPEB experience – This difference is
deferred and amortized over a closed period.
Changes in actuarial assumptions – these are deferred and recognized over the remaining lives of
all members as of the measurement date.
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets
that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The City has three types of items that qualify for reporting in this category. In the statement of net
position, the City reports the difference in expected and actual pension and OPEB experience, the changes
in actuarial assumptions and the difference in projected and actual investment earnings. These are
deferred and recognized over the estimated average remaining lives of all members as of the
measurement date. In the balance sheet for the governmental funds, the City reports unavailable revenue
for revenue not received within 60 days of year end.
City of Allen, Texas
Notes to Financial Statements
48
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 fund balance amounts that cannot be spent because they are either not in
spendable form, or for legal or contractual reasons, must be kept intact. This classification includes
inventories, prepaid items and long-term receivables.
Restricted -- includes fund balance amounts that are either constrained for specific purposes imposed by
external providers, such as creditors, or restricted due to constitutional provisions or enabling legislation.
This classification includes retirement of long-term debt, construction programs, and other federal and
state grants.
Committed -- includes fund balance amounts that are constrained for specific purposes imposed
internally by the City through formal action of the highest level of decision-making authority. Committed
fund balance is reported pursuant to resolutions passed by the City Council.
Assigned -- includes fund balance amounts that are self-imposed by the City to be used for a particular
purpose. Fund balance can be assigned by the City Manager or the Chief Financial Officer. This
classification includes insurance deductibles, encumbrances, program start-up costs, projected budget
deficit for subsequent years and other legal uses.
Unassigned -- includes residual positive fund balance within the General Fund which has not been
classified within the other above-mentioned categories. Unassigned fund balance may also include
negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or
assigned for those specific purposes.
When multiple categories of fund balance are available for expenditure, the City will start with the most
restricted category and spend those funds first before moving down to the next category with available
funds.
Minimum General Fund Unassigned Fund Balance - It is the goal of the City to achieve and maintain an
unassigned General Fund balance that is within a range of 60 to 90 days of annual expenditures. If
unassigned General Fund balance falls below the goal or has a deficiency, the City will establish a
timeframe and work plan to replenish the fund balance. The work plan may include tax increases, fee
increases, reduction of services, and/or reduction of expenditures (i.e. hiring freeze, salary freeze, or
reduction of travel/training).
City of Allen, Texas
Notes to Financial Statements
49
Note 2. Deposits, Investments and Investment Policies
Deposits – State statutes require all deposits to be fully collateralized by U.S. Government obligations or
obligations of Texas and its agencies with market values not less than the principal amount of the deposits.
Pursuant to the Texas Public Funds Investment Act (PFIA) and the City's investment policy, all deposits of
the City that exceed the federal depository insurance coverage level must be collateralized with
irrevocable letters of credit and/or by governmental obligations pledged to the City with market values
of at least 103% of the deposit balances plus accrued interest.
The City’s demand deposits and certificates of deposit were fully insured or collateralized at
September 30, 2022, with collateral required by state statutes. At year’s end, the carrying amount of the
City’s deposits was $7,436,525, and the bank balance was $6,867,585. 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,
2022, was $23,909. The carrying amount of deposits for ACDC and AEDC, discretely presented
component units, were $4,289,689 and $5,393,757, respectively, with no corresponding bank balances as
they are pooled with the City’s deposits.
Investments – State statutes authorize the City to invest in U.S. Government obligations, obligations of
Texas and its agencies and fully collateralized repurchase agreements. The City, AEDC and ACDC invest
in TexPool which is an investment fund authorized by the Texas Legislature and administered by the Texas
State Treasury. The Texas Treasury Safekeeping Trust Company is trustee of TexPool and is a limited purpose
trust company authorized pursuant to Texas Government Code. The purpose of TexPool is to allow for the
pooling of public funds to provide a higher yield on the pooled investment than would be possible with
the investment of the individual public entity’s funds. TexPool investments are subject to the same
investment policies maintained by the State Treasury for all state funds. The Legislature has authorized only
certain investment instruments for public funds, including repurchase agreements, U.S. Treasury bills and
bonds, securities of other U.S. Government agencies, commercial paper and other safe instruments.
The PFIA (Government Code Chapter 2256) contains specific provisions in the areas of investment
practices, management reports, and establishment of appropriate policies. In compliance with PFIA, the
City has adopted an investment policy and is authorized to invest in obligations of, or guaranteed by,
governmental entities, certificates of deposit, Texas Public Funds Investment Pools, collateralized
repurchase agreements, commercial paper, banker's acceptances, no-load money market mutual
funds and guaranteed investment contracts. The table below identifies the investment types that are
authorized for the City under Government Code Chapter 2256. The table also identifies certain provisions
of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Authorized Maximum Investment
Investment Type Maturity in One Issuer
Certificates of Deposit 5 years 35%
Repurchase Agreements 5 years 35%
U. S. Treasure Obligations 5 years None
Municipal Investment Pool 5 years None
Commercial Bank Savings Account 5 years None
Money Market Mutual Fund 5 years 35%
U. S. Government Securities (non-callable) 5 years None
U. S. Government Securities (callable) 5 years None
U. S. Government Sponsored Corp. 5 years None
Instruments: non-callable
U. S. Government Sponsored Corp. 5 years None
Instruments: callable
Commercial Paper 5 years 35%
Bankers’ Acceptance 5 years 35%
Guaranteed Investment Contracts 5 years 35%
State or Local Governmental Obligations 5 years 35%
City of Allen, Texas
Notes to Financial Statements
50
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application
provides a framework for measuring fair value by establishing a three-level fair value hierarchy that
describes the inputs used to measure assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that
a government can access at the measurement date.
Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique that maximizes the use of relevant observable inputs and minimizes the use
of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than
one level of the fair value hierarchy, the measurement is based on the lowest priority level input that is
significant to the entire measurement.
The City’s investments are measured as presented in the table below. The City’s investment balances,
weighted average maturity, and credit risk of such investments are as follows:
Significant
Other
Other Total Observable % of Total We ighted
Investment Primary Postemployment September 30, Inputs Government-w ide Av g. Maturity Credit
Type Government AEDC ACDC Benefits Trust 2022 (Level 2)Investments (Years ) Rating
Government-wide:
Investments Measured at Amortized Cost:
TexPool 8,554,964$ 608,031$ 1,022,349$ -$ 10,185,344$ -$ 3.48% 0.03 AAAm
TexSTAR 2,694,503 191,143 305,381 - 3,191,027 - 1.09% 0.01 AAAm
Investments Measured at NAV:
Money Market Accounts 6,267 - - - 6,267 - 0.00% - AAAm
Texas CLASS 95,925,062 9,199,849 8,924,892 - 114,049,803 - 38.98% 0.39 AAAm
Investments Measured at Cost:
Certificates of Deposit 9,932,213 - - - 9,932,213 - 3.39% 9.71 n/a
Investments Subject to Fair Value:
U.S. Agencies 77,614,251 3,030,597 10,026,364 - 90,671,212 90,671,212 30.99% 320.65 AA+
Certificates of Deposit 3,521,303 1,467,748 - - 4,989,051 4,989,051 1.71% 6.50 n/a
Corporate bonds 924,350 - - - 924,350 924,350 0.32% 2.59 A+
Municipal Bonds 44,161,604 10,291,232 4,204,366 - 58,657,202 58,657,202 20.05% 94.75 A to AAA
PARS OPEB Trust Program:
Domestic Equities - - - 240,435 240,435 -
Fixed Income - - - 710,962 710,962 -
International Equity - - - 50,646 50,646 -
Real Estate - - - 10,449 10,449 -
Total Government-wide Plus PARS OPEB Trust 243,334,517$ 24,788,600$ 24,483,352$ 1,012,492$ 293,618,961$ 155,241,815$
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.
City of Allen, Texas
Notes to Financial Statements
51
In order to meet the criteria to be recorded at amortized cost, investment pools must transact at a stable
net asset value per share and maintain certain maturity, quality, liquidity and diversification requirements
within the investment pool. The investment pools transact at a net asset value of $1.00 per share, have
weighted average maturity of 60 days or less and weighted average life of 120 days or less, investments
held are highly rated by a nationally recognized statistical rating organization, have no more than 5% of
portfolio with one issuer (excluding US government securities), and can meet reasonably foreseeable
redemptions. TexPool and TexSTAR have a redemption notice period of one day and no maximum
transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the
event of a general suspension of trading on major securities market, general banking moratorium, or
national or state emergency that affects the pools’ liquidity.
TexPool is an external investment pool measured at amortized cost. The Texas Comptroller of Public
Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company,
which is authorized to operate TexPool. In addition, the TexPool Advisory Board advises on TexPool’s
Investment Policy. This Board is composed equally of participants in TexPool and other persons who do
not have a business relationship with TexPool who are qualified to advise TexPool.
TexSTAR is duly chartered by the State of Texas Interlocal Cooperation Act, is administered by Hilltop
Securities, Inc. and J.P. Morgan Investment Management, Inc. (JPMIM), and managed by JPMIM, who
provides custody and investment management. The primary objectives of TexSTAR are, in order of priority,
preservation and protection of principal, maintenance of enough liquidity to meet participants’ needs,
and yield. The portfolio will maintain a dollar-weighted average maturity that does not exceed 60 days
and seeks to maintain a net asset value of $1.00 per share. TexSTAR uses amortized costs rather than fair
value to report net position to compute share prices. Accordingly, the fair value of the position in TexSTAR
is the same as the value of TexSTAR’s shares.
Texas CLASS (Texas Cooperative Liquid Assets Security System) is an external investment pool measured
at its net asset value. Texas CLASS’ strategy is to seek preservation of principal, liquidity and current
income through investment in a diversified portfolio of short-term marketable securities. The City has no
unfunded commitments related to the investment pool. Texas CLASS has a redemption notice period of
one day and may redeem daily. Authority over the investment pool may only impose restrictions on
redemptions in the event of a general suspension of trading on major securities market, general banking
moratorium or national or state emergency that affects the pool’s liquidity. Texas CLASS was organized in
March 1996 under a trust agreement executed by and among Texas local governmental entities in
accordance with the Public Funds Investment Act, and the Texas Government Code and remains in full
compliance with Government Code Chapter 2256. The fund is administered by Public Trust Advisors, LLC
and is rated AAAm by Standard & Poor’s Rating Services.
Investments in the Other Postemployment Benefit Trust Program (the “Trust”) are held by a bank trust
department separate from the City’s cash and investments. The City has contracted with Public Agency
Retirement Services (PARS) to manage the investment portfolio of the Trust Fund. The investments are
subject to the policies and guidelines established by the committee members of the Trust.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Investments with interest rates that are fixed for longer periods of time are more likely to be
subject to increased variability in their fair values due to changes in the market interest rates. The City
manages its exposure to market price changes by avoiding over-concentration of assets in a specific
maturity sector, limitation of average maturity of operating funds investments to less than eighteen
months, and avoidance of over-concentration of assets in specific instruments other than U.S. Treasury
Securities, U.S. Agency Obligations or Securities and authorized investment pools.
City of Allen, Texas
Notes to Financial Statements
52
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, 2022.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in
a single issuer. The City's investment policy controls concentration of credit risk by limiting the amount of
investment with a single issuer to no more than 35% of the total portfolio except for State approved
investment pools and U.S. Government Securities and Agency Obligations. As of September 30, 2022,
apart from funds invested in TexPool, TexSTAR, or Texas CLASS, the City did not have any investments with
a single issuer exceeding 5% or more of the City’s investments.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover deposits or will not be able to recover collateral
securities that are in the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral securities that
are in the possession of an outside party. The City’s investment policy minimizes custodial credit risk by
requiring pledged securities to be in the name of the City.
The Public Funds Investment Act requires financial institutions to secure deposits made by state or local
governmental bodies by pledging securities in an undivided collateral pool held by a depository
regulated under state law. The market value of the pledged securities of the collateral must always
remain at least equivalent to the bank balance less the FDIC insurance.
As of September 30, 2022, the City’s deposits with financial institutions above the federal depository limits
were fully collateralized.
City of Allen, Texas
Notes to Financial Statements
53
Note 3. Receivables
Receivables at September 30, 2022, 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 482,812$ 5,025,306$ -$ 64,176$ 5,569,648$ 11,141,942$
Debt Service 135,264 - - - - 135,264
General Capital Projects - - - 154,175 420,043 574,218
Grants Fund - - 88,830 - - 88,830
G.O. Bond Fund - - - 59,011 - 59,011
Nonmajor Governmental Funds - - 231,870 44,087 - 275,957
Water and Sewer Fund - - 9,048,663 157,332 2,040,368 11,246,363
Solid Waste Fund - - 811,313 4,849 521,569 1,337,731
Drainage Fund - - 246,275 - 4,200 250,475
Golf Course Fund - - - 10,328 17,429 27,757
Internal Service Funds - - 16,711 92,941 - 109,652
Gross Receivables 618,076 5,025,306 10,443,662 586,899 8,573,257 25,247,200
Less: Allowance for
Uncollectibles (432,792) - (330,053) - (2,032,566) (2,795,411)
Total Net Receivables,
Primary Government 185,284$ 5,025,306$ 10,113,609$ 586,899$ 6,540,691$ 22,451,789$
Component Units -$ 4,946,992$ -$ 175,754$ 23,141$ 5,145,887$
The Water and Sewer Fund, Solid Waste Fund, and Drainage Fund accounts receivable include unbilled
charges for services rendered through September 30, 2022.
City of Allen, Texas
Notes to Financial Statements
54
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2022, was as follows:
Governmental Activities
Balance Balance
September 30 Adjustments/ September 30,
2021 Additions Dispositions Transfers 2022
Governmental Funds:-
General capital assets
not being depreciated:
Land and land improvements 156,158,009$ 8,095,173$ -$ -$ 164,253,182$
Construction in progress 22,059,752 33,432,894 - (11,049,314) 44,443,332
Total capital assets
not being depreciated/amortized 178,217,761 41,528,067 - (11,049,314) 208,696,514
General capital assets
being depreciated/amortized:
Buildings 108,898,789 - (350,114) - 108,548,675
Improvements
other than buildings 545,196,769 3,066,921 (6,272,959) 9,666,287 551,657,018
Furniture and fixtures 4,836,510 - (273,024) - 4,563,486
Vehicles 1,971,036 29,729 (207,475) - 1,793,290
Machinery and equipment 8,750,359 2,967,601 (2,682,327) 1,383,027 10,418,660
Machinery and equipment - right-to-use - 1,475,397 - - 1,475,397
Total capital assets being
depreciated/amortized 669,653,463 7,539,648 (9,785,899) 11,049,314 678,456,526
Less accumulated
depreciation/amortization for:
Buildings (38,764,231) (2,754,705) 350,112 - (41,168,824)
Improvements
other than buildings (347,818,785) (18,283,342) 6,272,960 - (359,829,167)
Furniture and fixtures (4,626,941) (59,183) 273,024 - (4,413,100)
Vehicles (1,308,489) (203,856) 207,476 - (1,304,869)
Machinery and equipment (7,653,719) (632,038) 2,675,463 - (5,610,294)
Machinery and equipment - right-to-use - (461,529) - - (461,529)
Total accumulated
depreciation/amortization (400,172,165) (22,394,653) 9,779,035 - (412,787,783)
Total general capital assets
being depreciated/amortized, net 269,481,298 (14,855,005) (6,864) 11,049,314 265,668,743
General capital assets, net 447,699,059$ 26,673,062$ (6,864)$ -$ 474,365,257$
City of Allen, Texas
Notes to Financial Statements
55
Balance Balance
September 30, Adjustments/ September 30,
2021 Additions Dispositions Transfers 2022
Internal service funds assets
not being depreciated:
Construction in progress -$ 1,596,139$ -$ -$ 1,596,139$
Total capital assets
not being depreciated - 1,596,139 - - 1,596,139
Internal service funds
assets being depreciated:
Vehicles 18,261,748 367,979 (511,921) - 18,117,806
Machinery and equipment 5,801,606 36,071 (154,674) - 5,683,003
Total internal service
assets being depreciated 24,063,354 404,050 (666,595) - 23,800,809
Less accumulated
depreciation for:
Vehicles (11,726,422) (2,017,419) 511,921 - (13,231,920)
Machinery and equipment (4,412,934) (439,368) 154,674 - (4,697,628)
Total accumulated
depreciation (16,139,356) (2,456,787) 666,595 - (17,929,548)
Total Internal service funds
capital assets being depreciated, net 7,923,998 (2,052,737) - - 5,871,261
Total Internal service funds
capital assets, net 7,923,998 (456,598) - - 7,467,400
Governmental activities
capital assets, net $ 455,623,057 $ 26,216,464 (6,864)$ -$ $ 481,832,657
Business-Type Activities
Balance
September 30,
2021 Additions
Dispositions /
Transfers
Balance
September 30,
2022
Water and Sewer Activities:
Capital assets not being depreciated:
Land 4,091,626$ -$ -$ 4,091,626$
Construction in progress 8,542,494 8,634,596 - 17,177,090
Total capital assets not
being depreciated 12,634,120 8,634,596 - 21,268,716
Capital Assets Being depreciated:
Towers, tanks, & pumps stations 222,547,151 1,577,824 (6,639,897) 217,485,078
Machinery and equipment 3,314,105 490,045 (806,794) 2,997,356
Vehicles 850,418 - (33,416) 817,002
Total capital assets
being depreciated 226,711,674 2,067,869 (7,480,107) 221,299,436
Less accumulated depreciation for:
Towers, tanks, & pumps stations (110,959,556) (5,835,814) 6,639,897 (110,155,473)
Machinery and equipment (2,829,946) (198,032) 806,794 (2,221,184)
Vehicles (383,015) (100,448) 33,416 (450,047)
Total accumulated
depreciation (114,172,517) (6,134,294) 7,480,107 (112,826,704)
Total capital assets
being depreciated, net 112,539,157 (4,066,425) - 108,472,732
Water and sewer activities
capital assets, net 125,173,277$ 4,568,171$ -$ 129,741,448$
City of Allen, Texas
Notes to Financial Statements
56
Balance
September 30,
2021 Additions
Dispositions /
Transfers
Balance
September 30,
2022
Solid Waste Activities:
Capital assets being depreciated:
Vehicles 140,440$ -$ -$ 140,440$
Total capital assets
being depreciated 140,440 - - 140,440
Less accumulated depreciation for:
Vehicles (77,242) (14,044) - (91,286)
Total accumulated
depreciation (77,242) (14,044) - (91,286)
Solid waste activities
capital assets, net 63,198$ (14,044)$ -$ 49,154$
Drainage Activities:
Capital assets being depreciated:
Other improvements 1,230,546$ -$ 1,230,546$
Vehicles 151,554 - - 151,554
Machinery and equipment 593,962 86,604 (194,431) 486,135
Total capital assets
being depreciated 1,976,062 86,604 (194,431) 1,868,235
Less accumulated
depreciation for:
Other improvements (245,245) (48,985) - (294,230)
Vehicles (90,923) (13,473) - (104,396)
Machinery and equipment (479,898) (42,605) 194,431 (328,072)
Total accumulated
depreciation (816,066) (105,063) 194,431 (726,698)
Drainage activities
capital assets, net 1,159,996$ (18,459)$ -$ 1,141,537$
Golf Course Activities:
Capital assets being depreciated/amortized:
Machinery and equipment - right-to-use -$ 430,202$ -$ 430,202$
Machinery and equipment 1,552,587 18,839 - 1,571,426
Total capital assets
being depreciated/amortized 1,552,587 449,041 - 2,001,628
Less accumulated
depreciation/amortization for:
Machinery and equipment - right-to-use - (152,550) - (152,550)
Machinery and equipment (1,234,830) (167,023) - (1,401,853)
Total accumulated
depreciation/amortization (1,234,830) (319,573) - (1,554,403)
Golf course activities
capital assets, net 317,757 129,468 - 447,225
Business-type activities
capital assets, net 126,714,228$ 4,665,136$ -$ 131,379,364$
City of Allen, Texas
Notes to Financial Statements
57
Balance Balance
September 30, Adjustments/ September 30,
2021 Additions Dispositions Transfers 2022
Economic Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 18,799,062$ -$ (6,013,533)$ -$ 12,785,529$
Total capital assets
not being depreciated 18,799,062 - (6,013,533) - 12,785,529
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 (125,512) (50,205) - - (175,717)
Total accumulated depreciation (125,512) (50,205) - - (175,717)
Total capital assets being depreciated, net 878,579 (50,205) - - 828,374
Economic Development Corporation
capital assets, net 19,677,641$ (50,205)$ (6,013,533)$ -$ 13,613,903$
Community Development Corporation:
Capital assets not being depreciated:
Land and Land Improvements 2,239,201$ -$ -$ -$ 2,239,201$
Construction in progress 2,217,403 1,770,690 - (1,820,373) 2,167,720
Total capital assets
not being depreciated 4,456,604 1,770,690 - (1,820,373) 4,406,921
Capital assets being depreciated:
Buildings 36,225,091 - (22,169) - 36,202,922
Machine & Equipment 3,099,175 229,043 (46,007) - 3,282,211
Improvements other than buildings 38,207,511 - (226,493) 1,820,373 39,801,391
Vehicles 783,228 - (80,632) - 702,596
Total capital assets being
depreciated 78,315,005 229,043 (375,301) 1,820,373 79,989,120
Less accumulated depreciation for:
Buildings (10,683,208) (912,819) 22,169 - (11,573,858)
Machinery & Equipment (2,431,805) (275,189) 46,007 - (2,660,987)
Improvements other than buildings (22,181,824) (2,238,651) 226,493 - (24,193,982)
Vehicles (668,667) (42,151) 80,632 - (630,186)
Total accumulated depreciation (35,965,504) (3,468,810) 375,301 - (39,059,013)
Total capital assets being depreciated, net 42,349,501 (3,239,767) - 1,820,373 40,930,107
Community Development Corporation
capital assets, net 46,806,105$ (1,469,077)$ -$ -$ 45,337,028$
Component units capital assets, net 66,483,746$ (1,519,282)$ (6,013,533)$ -$ 58,950,931$
City of Allen, Texas
Notes to Financial Statements
58
Depreciation expense was charged as direct expense to programs of the primary government and
component units as follows:
Governmental activities:
General government 1,360,332$
Public safety 1,326,031
Public works 16,266,579
Culture and recreation 3,414,999
Community development 26,712
Total depreciation and amortization expense - General capital assets 22,394,653
Internal Service Funds 2,456,787
Total depreciation/amortization expense - Governmental activities 24,851,440$
Business-type activities:
Water and sewer 6,134,294$
Solid waste 14,044
Drainage utility 105,063
Golf course 319,573
Total depreciation/amortization expense - Business-type activities 6,572,974$
Component units:
Allen Economic Development Corporation 50,205$
Allen Community Development Corporation 3,468,810
Total depreciation/amortization expense - Component units 3,519,015$
Outstanding commitments at September 30, 2022, under authorized construction contracts totaled
$63,894,530. 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, 2022, 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 $115,000 through August 15, 2026;
interest at 4.0% to 4.2%.430,000$
$5,065,000 Series 2013 Bonds due in annual installments
of $190,000 to $340,000 through August 15, 2032;
interest at 2.0% to 3.5%.2,975,000
$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%.6,860,000
$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%. 11,700,000
City of Allen, Texas
Notes to Financial Statements
59
General Obligation Bonds – continued
$6,910,000 Series 2016 Refunding Bonds due in annual
installments of $775,000 to $1,000,000 through
August 15, 2028; interest at 2.0% to 4.0%.5,135,000$
$11,845,000 Series 2017 Bonds due in annual installments
of $645,000 to $1,130,000 through August 15, 2032;
interest at 2.25% to 5.0%.8,065,000
$8,355,000 Series 2018 Bonds due in annual installments
of $400,000 to $725,000 through August 15, 2033;
interest at 2.0% to 5.0%.6,395,000
$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%.5,715,000
$23,385,000 Series 2020 Refunding and Improvement Bonds
due in annual installments of $1,020,000 to $3,355,000 through
August 15, 2035; interest at 2.0% to 4.0%.17,710,000
$10,595,000 Series 2021 Refunding and Improvement Bonds
due in annual installments of $120,000 to $2,575,000 through
August 15, 2036; interest at 3.0% to 5.0%.7,900,000
$23,000,000 Series 2022 General Obligation Bonds
due in annual installments of $775,000 to $1,705,000 through
August 15, 2041; interest at 4.0% to 5.0%.23,000,000
Unamortized premium on general obligation bonds. 8,771,037
104,656,037$
Certificates of Obligation:
$22,945,000 Series 2021 Tax & Revenue Certificates due
in annual installments of $1,075,000 to $2,035,000
through August 15, 2036; interest at the rate of 4%-5%. 21,870,000$
Unamortized premium on certificates of obligation. 4,468,466
26,338,466$
Tax Notes:
$3,175,000 Series 2020 Tax Notes due in annual
installments of $475,000 to $580,000 through
August 15, 2026; interest at the rate of 4%.2,200,000$
Unamortized premium on tax notes.179,838
2,379,838$
City of Allen, Texas
Notes to Financial Statements
60
Business-type
Water and Sewer Revenue Bonds:
$3,370,000 Series 2013 Refunding Bonds due in installments
of $90,000 to $385,000 through June 1, 2025; with
interest at the rate of 2.0% to 3.0%. 1,015,000$
$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%. 240,000
$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%. 7,990,000
$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%. 3,385,000
$4,880,000 Series 2020 Bonds due in installments
of $175,000 to $360,000 through June 1, 2040; with
interest at the rate of 2.0% to 5.0%. 4,500,000
$10,675,000 Series 2021 Bonds due in installments
of $400,00 to $715,000 through June 1, 2036; with
interest at the rate of 2.0% to 5.0%. 10,270,000
Unamortized premium on water and sewer revenue bonds. 3,069,408
30,469,408$ AEDC Sales Tax Revenue Bonds:
$11,810,000 Series 2017A Refunding Bonds due in
annual installments of $880,000 to $1,335,000 through
September 1, 2027; interest at 2.0% to 5.0%. 6,065,000$
$2,110,000 Series 2020 Sales Tax Revenue Bonds
due in annual installments of $200,000 to $225,000
through September 1, 2030; interest at .75% to 2.0%. 1,710,000
$2,295,001 Series 2020 Sales Tax Revenue Bonds
due in annual installments of $160,000 to $200,000
through September 1, 2036; interest at .65% to 2.45%. 2,295,000
Unamortized premium on AEDC sales tax revenue bonds. 364,477
10,434,477$
ACDC Sales Tax Revenue Bonds:
$31,235,000 Series 2016 Refunding Bonds due in
annual installments of $1,715,000 to $3,825,000 through
September 1, 2025; interest at 0.750% to 2.353%. 20,715,000$
20,715,000$
City of Allen, Texas
Notes to Financial Statements
61
The following is a summary of long-term debt transactions, including current portion, of the City for the
year ended September 30, 2022:
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Governmental Activities
General obligation bonds 82,380,000$ 23,000,000$ (9,495,000)$ 95,885,000$ 9,515,000$
Certificates of obligation 22,945,000 - (1,075,000) 21,870,000 1,130,000
Tax notes 3,580,000 (1,380,000) 2,200,000 520,000
Financed purchases 102,538 (102,538) - -
Right-to-use leases - 1,475,397 (454,530) 1,020,867 430,581
Premiums (discounts) 15,370,849 2,777,611 (4,729,119) 13,419,341 2,285,673
Compensated absences 8,228,298 5,840,689 (6,047,664) 8,021,323 6,712,627
Net OPEB liability 1,924,927 240,737 - 2,165,664 -
Net pension liability 19,586,451 - (10,195,679) 9,390,772 -
Governmental activity
long-term debt 154,118,063$ 33,334,434$ (33,479,530)$ 153,972,967$ 20,593,881$
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 28,955,000$ -$ (1,555,000)$ 27,400,000$ 1,575,000$
Financed purchases 332,535 18,839 (159,929) 191,445 143,931
Right-to-use leases - 430,202 (151,048) 279,154 161,782
Premiums (discounts) 3,480,106 - (410,698) 3,069,408 323,399
Net pension liability 2,435,432 - (1,133,319) 1,302,113 -
Net OPEB liability 232,784 26,748 - 259,532 -
Compensated absences 836,174 594,851 (629,529) 801,496 604,615
Business-type activity long-term debt 36,272,031$ 1,070,640$ (4,039,523)$ 33,303,148$ 2,808,727$
Component Units
Allen Community Development Corporation
Sales tax revenue bonds 22,530,000$ -$ (1,815,000)$ 20,715,000$ 1,850,000$
ACDC long-term debt 22,530,000$ -$ (1,815,000)$ 20,715,000$ 1,850,000$
Allen Economic Development Corporation
Sales tax revenue bonds 11,315,000$ -$ (1,245,000)$ 10,070,000$ 1,305,000$
Note payable 666,522 - (666,522) - -
Premiums (discounts) 727,972 - (363,495) 364,477 122,799
AEDC long-term debt 12,709,494$ -$ (2,275,017)$ 10,434,477$ 1,427,799$
Component units long-term debt 35,239,494$ -$ (4,090,017)$ 31,149,477$ 3,277,799$
City of Allen, Texas
Notes to Financial Statements
62
Bond Issuances
On June 1, 2022, the City issued City of Allen, Texas General Obligation Bonds, Series 2022, in the amount
of $23,000,000 for acquiring, constructing, improving, and equipping park and recreational facilities,
including the acquisition of land, constructing, renovating , improving and expanding municipal library
facilities, acquiring, constructing, renovating, improving, expanding and equipping public safety facilities
and the acquisition of land, including fire stations and police training facility, acquiring, constructing,
improving and maintaining streets, thoroughfares, bridges, alleyways and sidewalks within the City,
including related storm drainage improvements, traffic signalization and signage, streetscaping and
median improvements, and utility relocations and the acquisition of land and right of way. Total bond
proceeds totaled $25,777,611 and includes a premium of $2,777,611. Expenses incurred to deliver the
Series 2022 bonds, including issuance costs, underwriter’s discount, and agents’ fees amounted to
$256,611. The Series 2022 bonds incur an average cost over the life of the debt at a rate of 4.00%-5.00%
and mature annually, with semi-annual interest payments.
Annual Requirements to Retire Debt Obligations
The City intends to retire all its general long-term liabilities, plus accrued interest, from ad valorem taxes
and other current revenues. The proprietary fund type long-term debt, plus accrued interest, will be repaid
from operating revenues of the Water and Sewer Fund. The annual aggregate maturities for each bond
type for the years subsequent to September 30, 2022, are on the following pages.
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2023 9,515,000$ 4,079,524$ 13,594,524$
2024 8,655,000 3,548,558 12,203,558
2025 7,790,000 3,214,736 11,004,736
2026 8,085,000 2,920,657 11,005,657
2027 8,315,000 2,567,646 10,882,646
2028-2032 32,065,000 8,332,628 40,397,628
2033-2037 15,025,000 2,798,150 17,823,150
2038-2042 6,435,000 656,200 7,091,200
Total 95,885,000$ 28,118,099$ 124,003,099$
Governmental Activities
City of Allen, Texas
Notes to Financial Statements
63
Certificates of Obligation
Annual debt service requirements to maturity for certificates of obligation, including interest, are as
follows:
Fiscal Year Ending
September 30, Principal Interest Total
2023 1,130,000$ 982,750$ 2,112,750$
2024 1,190,000 926,250 2,116,250
2025 1,250,000 866,750 2,116,750
2026 1,310,000 804,250 2,114,250
2027 1,370,000 738,750 2,108,750
2028-2032 7,950,000 2,609,950 10,559,950
2033-2037 7,670,000 782,400 8,452,400
Total 21,870,000$ 7,711,100$ 29,581,100$
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
2023 520,000$ 88,000$ 608,000$
2024 540,000 67,200 607,200
2025 560,000 45,600 605,600
2026 580,000 23,200 603,200
Total 2,200,000$ 224,000$ 2,424,000$
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
2023 1,575,000$ 1,019,366$ 2,594,366$
2024 1,645,000 970,308 2,615,308
2025 1,420,000 929,700 2,349,700
2026 1,200,000 892,950 2,092,950
2027 1,230,000 862,950 2,092,950
2028-2032 6,880,000 3,556,050 10,436,050
2033-2037 8,490,000 1,939,800 10,429,800
2038-2042 4,960,000 371,450 5,331,450
Total 27,400,000$ 10,542,574$ 37,942,574$
Business-type Activities
City of Allen, Texas
Notes to Financial Statements
64
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
2023 1,305,000$ 371,792$ 1,676,792$
2024 1,515,000 314,743 1,829,743
2025 1,580,000 253,845 1,833,845
2026 1,645,000 189,015 1,834,015
2027 1,715,000 120,468 1,835,468
2028-2032 1,540,000 170,508 1,710,508
2033-2037 770,000 46,927 816,927
Total 10,070,000$ 1,467,298$ 11,537,298$
AEDC
ACDC Sales Tax and Revenue Bonds
Sales Tax Revenue bond debt service requirements to maturity, including interest, are as follows
Fiscal Year Ending
September 30, Principal Interest Tota l
2023 1,850,000$ 560,560$ 2,410,560$
2024 1,890,000 521,192 2,411,192
2025 1,935,000 476,721 2,411,721
2026 1,980,000 431,190 2,411,190
2027 2,030,000 382,423 2,412,423
2028-2032 11,030,000 1,027,080 12,057,080
Total 20,715,000$ 3,399,167$ 24,114,167$
ACDC
A schedule of authorized but unissued direct General Obligation Bonds as of September 30, 2022, is as
follows:
Date of Original Amount Issued in Issued Unissued
Purpose Authorization Authorized Prior Fiscal Years in 2022 Balance
Service Center Facilities 5/12/2007 $ 14,500,000 $ 12,500,000 -$ $ 2,000,000
Library 5/7/2016 16,045,000 2,431,000 13,614,000 -
Streets and Drainage 5/7/2016 23,890,000 18,228,000 762,000 4,900,000
Parks 5/7/2016 27,000,000 18,000,000 3,000,000 6,000,000
Public Art Projects 5/7/2016 1,770,000 867,940 - 902,060
Public Safety 5/7/2016 24,445,000 13,000,000 8,145,000 3,300,000
$ 107,650,000 $ 65,026,940 $ 25,521,000 $ 17,102,060
City of Allen, Texas
Notes to Financial Statements
65
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 $1,230,726 at September 30, 2022, 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, 2022, of $3,142,683 are adequate to meet the reserve requirements.
At September 30, 2022, restricted assets, which include amounts in the Water and Sewer Revenue Bond
Debt Service and the Revenue Bond Reserve Fund, were as follows:
Revenue bond reserve fund 2,034,419$
Revenue bond debt service 1,108,264
3,142,683$
Net position reserved for Water and Sewer revenue bond retirement is detailed as follows:
Restricted assets, revenue bond debt
Service and reserve funds 3,142,683$
Accrued interest, payable from restricted assets (336,957)
Current maturities of revenue bonds,
payable from restricted assets (1,575,000)
Reserved for water and sewer revenue bonds principal and interest 1,230,726$
The City complies with the various requirements of the bond ordinances.
Financed Purchases
The City has acquired office equipment, a building, and land under various agreements accounted for
as financed purchases. As of September 30, 2022, the capitalized costs of business-type property under
financed purchase arrangements were $790,281.
City of Allen, Texas
Notes to Financial Statements
66
The terms of the leases range from 3 - 5 years and call for monthly and annual payments over the life of the
agreements. The future minimum payments under financed purchase arrangements and the net present
value of the future minimum payments at September 30, 2022, are as follows:
Fiscal Year Ending
September 30, Principal Interest Total
2023 143,931$ 4,915$ 148,846$
2024 15,540 1,964 17,504
2025 16,311 1,193 17,504
2026 15,663 383 16,046
Total 191,445$ 8,455$ 199,900$
Business-type Activities
Leases
Lessee
The City is a lessee for noncancellable leases of buildings, copiers, and other equipment. The City
recognizes a lease liability, reported with long-term debt, and a right-to-use lease asset (leased asset),
reported with other capital assets, in the government-wide and proprietary fund financial statements. The
City recognizes lease liabilities with lease payments of $20,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the
principal portion of lease payments made. The lease asset is initially measured as the initial amount of the
lease liability, adjusted for lease payments made at or before the lease commencement date, plus
certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the shorter
of the lease term or its useful life. Key estimates and judgments related to leases include how the City
determines (1) the discount rate it uses to discount the expected lease payments to present value,
(2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the City generally uses its estimated incremental borrowing
rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed
payments, variable payments fixed in substance or that depend on an index or a rate, purchase
option price that the City is reasonably certain to exercise, lease incentives receivable from the
lessor, and any other payments that are reasonably certain of being required based on an
assessment of all relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its leases and will
remeasure the lease asset and liability if certain changes occur that are expected to significantly affect
the amount of the lease liability.
City of Allen, Texas
Notes to Financial Statements
67
The future principal and interest lease payments as of fiscal year-end are as follows:
Fiscal Year Ending
September 30, Principal Interest Total Principal Interest Total
2023 430,581$ 33,246$ 463,827$ 161,782$ 5,535$ 167,317$
2024 407,324 17,241 424,565 108,430 1,071 109,501
2025 146,856 4,277 151,133 8,942 6 8,948
2026 36,106 80 36,186 - - -
Total 1,020,867$ 54,844$ 1,075,711$ 279,154$ 6,612$ 285,766$
Governmental Activities Business-type Activities
Note 6. Interfund Transfers
Individual fund operating transfers for fiscal year ended September 30, 2022, were as follows:
Fund Transfers In Transfers Out
Major Governmental Funds:
General Fund 6,095,044$ 4,934,474$
General Capital Projects 2,950,000 -
General Obligation Bonds - 285,391
Grant Fund 4,532 -
Debt Service Fund 816,326 -
9,865,902 5,219,865
Nonmajor Governmental Funds:
Special Revenue - 92,113
Hotel Occupancy Tax - 2,705
Total Nonmajor Governmental Funds - 94,818
Major Enterprise Funds:
Water and Sewer Fund 50,811 5,096,622
Solid Waste Fund - 895,119
Drainage Utility Fund - 425,047
Total Major Enterprise Funds 50,811 6,416,788
Internal Service Funds:
Facility Maintenance Fund 414,758 -
Risk Management Fund 1,400,000 -
Total Internal Service Funds 1,814,758 -
Total Transfers $ 11,731,471 $ 11,731,471
Total Major Governmental Funds
Transfers are used 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.
City of Allen, Texas
Notes to Financial Statements
68
The fund financial statements show:
Governmental funds: Total transfer in of $9,865,902 into the governmental funds were made to fund
capital projects, and provide funding for technology, procurement, human resources, building
maintenance, financial, and administrative support. Transfers out totaling $5,314,683 includes cash
financing for capital projects, and support to programs recorded in non-major governmental and internal
service funds.
Proprietary funds: Total transfers in of $50,811 into the enterprise funds mainly represents amounts
transferred into Water and Sewer Funds to support operations. The total transfers out of $6,416,788
represents the amount provided by other funds for technology, procurement, human resources, building
maintenance, financial and administrative support. The internal service funds total transfers in of
$1,814,758 represents the amounts needed for repairs of aging facility infrastructure and risk administration
support.
Note 7. Retirement Plan
Plan Description
The City participates as one of 901 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit
pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a
publicly available comprehensive annual financial report that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also
choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12,
24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest.
A summary of plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
Years required for vesting 5
Service retirement eligibility 20 years at any age, 5 years
at age 60 and above
Updated Service Credit 100% Repeating
Annuity Increase to retirees 70% of CPI Repeating
City of Allen, Texas
Notes to Financial Statements
69
Employees Covered by Benefit Terms:
At the December 31, 2021, valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 303
Inactive employees entitled to, but not yet receiving benefits 546
Active employees 761
Total 1,610
Contributions
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The City’s contribution to TMRS for the year ended September 30, 2022 was $8,810,782, which equaled the
annual contribution for the year.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2021, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2021, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.50% to 11.50% including inflation
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members are based on
the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table
used for females. Mortality rates for healthy retirees and beneficiaries are based on the gender-distinct
2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries
are projected on a fully generational basis by scale UMP to account for future mortality improvements.
For disabled annuitants, the same mortality tables for healthy retirees are used with a 4-year set-forward
for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is
applied, for males and females, respectively, to reflect the impairment for younger members who
become disabled. The rates are projected on a fully generational basis by Scale UMP to account for
future mortality improvements subject to the floor.
Actuarial assumptions used in the December 31, 2021 valuation were based on the results of actuarial
experience studies. This experience study was for the period December 31, 2014 through December 31,
2018. Healthy post-retirement mortality rates and annuity purchase rates are based on a Mortality
Experience Investigation Study covering 2014 through 2018, and dated December 31, 2019. Plan assets
are managed on a total return basis with an emphasis on both capital appreciation as well as the
production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
City of Allen, Texas
Notes to Financial Statements
70
The long-term expected rate of return on pension plan investments was determined using a building block
method in which best estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal
year 2022 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)
Global Equity 35.0% 7.55%
Core Fixed Income 6.0% 2.00%
Non-Core Fixed Income 20.0% 5.68%
Other Public and Private Markets 12.0% 7.22%
Real Estate 12.0% 6.85%
Hedge Funds 5.0% 5.35%
Private Equity 10.0% 10.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected
to be available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the Total Pension Liability.
City of Allen, Texas
Notes to Financial Statements
71
Changes in the Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
Balance at 12/31/2021 251,464,896$ 229,443,013$ 22,021,883$
Changes for the year:
Service cost 10,401,936 - 10,401,936
Interest 17,039,222 - 17,039,222
Difference between expected
and actual experience 4,068,814 - 4,068,814
Change in assumptions - -
Contributions - employer - 8,906,713 (8,906,713)
Contributions - employee - 4,111,437 (4,111,437)
Net investment income - 29,958,269 (29,958,269)
Benefit payments, including
refunds of employee contributions (8,465,892) (8,465,892) -
Administrative expense - (138,398) 138,398
Other changes - 949 (949)
Net changes 23,044,080 34,373,078 (11,328,998)
Balance at 12/31/2021 274,508,976$ 263,816,091$ 10,692,885$
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 54,732,873$ 10,692,885$ (24,991,764)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued TMRS
financial report. That report may be obtained on the Internet at www.tmrs.com.
City of Allen, Texas
Notes to Financial Statements
72
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2022, the City recognized pension expense in the amount of $4,409,328.
At September 30, 2022, the City reported deferred outflows and inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 3,870,693$ (433,526)$
Changes in actuarial assumptions 156,023 -
Difference between projected and
actual investment earnings - (15,343,075)
Contributions subsequent to the
measurement date 6,515,601 -
Total 10,542,317$ (15,776,601)$
Deferred outflows of resources in the amount of $6,515,601 related to pensions that resulted from
contributions made subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the fiscal year ending September 30, 2023. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement
year ending
December 31:
2022 (1,723,247)$
2023 (5,252,705)
2024 (2,522,205)
2025 (2,251,728)
Total (11,749,885)$
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, 2022, the cost of water purchased under this contract
was $18,152,931.
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 2022, the cost for transportation, treatment and disposal of sewage and
other wastes was $11,100,663.
City of Allen, Texas
Notes to Financial Statements
73
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 to the
claims of the City’s general creditors. As a result, at September 30, 2022, 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, 2022, was $1,134,853. Changes in the Risk Management liability during the past five fiscal
years were as follows:
Balance at Current Year Claims Balance at
Year Ending Beginning of and Changes in Claim End of
September 30, Fiscal Year Estimates Payments Fiscal Year
2018 1,160,834$ 7,857,200$ 7,953,825$ 1,064,209$
2019 1,064,209 8,909,032 8,771,234 1,202,007
2020 1,202,007 8,285,276 8,433,972 1,053,311
2021 1,053,311 9,400,218 9,386,807 1,066,722
2022 1,066,722 9,789,575 9,721,444 1,134,853
Workers Compensation & Property and Liability Insurance
The City participates in the Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for workers’
compensation claims, liability (general, automobile, law enforcement, and errors/omissions), and
property insurance. The cost is based on the pool’s claims cost, which is adjusted to reflect the City’s
individual claims experience. As claims arise they are submitted to and paid by TMLIRP. To cover annual
costs, premium payments are reported as operating revenues of the Risk Management Fund and
operating expenditures/expenses of the participating funds.
City of Allen, Texas
Notes to Financial Statements
74
The City has a workers’ compensation deductible of $25,000 per occurrence, with an annual aggregate
deductible of $330,000. During fiscal 2022, the City contributed $934,787 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 2022, the City contributed $1,269,581 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, 2022, retirees paid
$51,001 in the form of premiums and incurred $72,725 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, 2022:
Inactive employees or beneficiaries currently receiving benefits 5
Inactive employees entitled to but not yet receiving benefits -
Active plan members 722
Total members 727
City of Allen Retiree Healthcare Plan
Funding Policy
Due to the significant increase in retiree premium costs, the City elected to create a separate Other
Postemployment Defined Benefit Medical Plan for retirees, effective January 1, 2013. The single employer
defined benefit plan is created by City ordinance and appoints the City Manager as Plan Administrator
for the program. The trust was established with Public Agency Retirement Services Company (PARS) and
is used to accumulate resources to fund future benefits. However, it does not represent the activities of
the plan. Related medical costs are incurred in and paid from the City’s Risk Management Fund. The plan
benefit provisions and obligations to contribute are established by City Council action and are actuarially
determined.
City of Allen, Texas
Notes to Financial Statements
75
Net OPEB Liability (Asset)
Actuarial Methods and Assumptions - The City’s net OPEB liability (asset) was measured as of
October 1, 2021, and the total OPEB liability used to calculate the net OPEB liability (asset) was determined
by an actuarial valuation as of that date, which was rolled forward using standard update procedures to
determine the September 30, 2022 total OPEB liability based on the following actuarial methods and
assumptions:
Actuarial Assumptions
Valuation Date October 1, 2021
Measurement Date September 30, 2022
Discount Rate 4.00%
Inflation 2.25% per annum
Payroll Growth Rate 3.00% per annum, including inflation
Mortality, Non-Annuitants Sex distinct headcount weighted PUB-2010 general and
safety employees table, with mortality Improvement
scale MP-2021
Mortality, Annuitants Sex distinct headcount weighted PUB-2010 general
retirees table, with mortality improvement scale MP-2021
Healthcare Trend - Medical – 11.87% initial, decreasing to an ultimate rate
of 4.14% in 2043 and later years.
- Dental - 3.0%
Participation Rate 20% of participants eligible for medical or dental benefits
upon retirement are assumed to elect coverage.
Investment Rate of Return 4.00%, net of OPEB plan investment expenses
The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Domestic Equities 25.0% 4.73%
Fixed Income 70.0% 2.44%
International Equity 2.0% 6.70%
Real Estate 1.0% 5.80%
Cash 2.0% 1.30%
Total 100.0%
Discount Rate - The current valuation is based upon last year’s valuation results projected forward to the
new Measurement Date of September 30, 2022.
City of Allen, Texas
Notes to Financial Statements
76
Changes in the Net OPEB Liability (Asset)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(a) - (b)
Balance at 09/30/2020 459,985$ 1,340,058$ (880,073)$
Changes for the year:
Interest 6,770 - 6,770
Difference between expected -
and actual experience (255,282) - (255,282)
Changes of assumptions (25,531) - (25,531)
Net investment income (loss) - (179,315) 179,315
Benefit payments (70,906) (86,570) 15,664
Administrative expense - (7,943) 7,943
Net changes (344,949) (273,828) (71,121)
Balance at 09/30/2021 115,036$ 1,066,230$ (951,194)$
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) (948,682)$ (951,194)$ (953,634)$
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 (6.10%)
Healthcare Cost
Trend Rate (7.10%)
1% Increase in
Trend Rate (8.10%)
City’s net OPEB (Asset) (948,230)$ (951,194)$ (954,113)$
City of Allen, Texas
Notes to Financial Statements
77
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the collective OPEB expense of the City of Allen Retiree
Healthcare Plan was a credit of $66,948. At September 30, 2022, the City reported deferred outflows and
deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ (271,205)$
Changes in actuarial assumptions 16,031 (116,879)
Difference between projected and 132,268
actual investment earnings - -
Total 148,299$ (388,084)$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as part of OPEB expense as follows.
Measurement
year ending Annual
September 30,Amor tization
2023 (28,021)$
2024 (30,635)
2025 (22,071)
2026 (9,393)
2027 (42,032)
Thereafter (107,633)
Total (239,785)$
Supplemental Death Benefits Plan:
Plan Description
Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan
known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which
participating member cities may elect, by ordinance, to provide group-term life insurance coverage for
their active members, including or not including retirees. Employers 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 City has elected to participate in the SDBF for its active members
including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets,
the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in
a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting.
City of Allen, Texas
Notes to Financial Statements
78
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death). The death benefit for retirees is considered an other postemployment
benefit (“OPEB”) and is a fixed amount of $7,500.
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 0.04% for calendar year 2021 and
2022. The City’s contribution to the TMRS SDBF for retirees for the fiscal year ended September 30, 2022,
was $23,494, which was equal to the actuarially determined contribution (ADC).
Summary of Actuarial Assumptions and Other Inputs Used
Inflation 2.5 %
Salary Increases 3.5% to 10.5%, including inflation.
Discount Rate 1.84%
Retirees’ share of benefit-related costs $0.00
Administrative Expenses All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
Mortality Rates – service retirees 2019 Municipal Retirees of Texas Mortality Tables. The
rates are projected on a fully generational basis with
scale UMP.
Mortality Rates – disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4
year set-forward for males and a 3 year set-forward for
females. In addition, a 3.5% and 3% minimum mortality
rate will be applied to reflect the impairment for younger
members who become disabled for males and females,
respectively. The rates are projected on a fully
generational basis by Scale UMP to account for future
mortality improvements subject to the floor.
Note: The actuarial assumptions used in the December 31, 2021, valuation was based on the
results of an actuarial experience study for the period December 31, 2014, to December 31, 2018.
City of Allen, Texas
Notes to Financial Statements
79
Employees Covered by Benefit Terms*
At December 31, 2021, the actuarial valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 217
Inactive employees entitled to, but not yet receiving benefits 123
Active employees 761
Total 1,101
Changes in Total OPEB Liability
Total OPEB Liability – beginning of year 2,157,711$
Changes for the year:
Service Cost 170,331
Interest on Total OPEB Liability 44,623
Differences between expected and actual experience (7,796)
Changes in assumptions or other inputs 83,821
Benefit payments (23,494)
Net Change 267,485
Total OPEB Liability - end of year 2,425,196$
The City’s total OPEB liability of $2,425,196 was measured at December 31, 2021, and determined by an
actuarial valuation as of that date. Accordingly, no roll-forward is required.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower (0.84%) or 1-percentage-
point higher (2.84%) than the current discount rate:
1.0% Decrease Current 1.0% Increase
in Discount Rate Discount Rate in Discount Rate
(.84%) (1.84%) (2.84%)
Total OPEB Liability 3,045,707$ 2,425,196$ 1,957,353$
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the City recognized OPEB expense of $295,176. OPEB expense
recognized is as follows
Components of OPEB Expense:
Service Cost 170,331$
Interest on Total OPEB Liability 44,623
Differences between expected and actual experience (24,410)
Change in assumptions or other input 104,632
Total OPEB Expense 295,176$
City of Allen, Texas
Notes to Financial Statements
80
At September 30, 2022, 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 18,406$ -$
Differences between expected and actual experience 43,914 (166,673)
Changes in assumptions or other inputs 512,660 (48,155)
Total 574,980$ (214,828)$
Deferred outflows of resources in the amount of $18,406 related to OPEB that resulted from contributions
made subsequent to the measurement date but before September 30, 2022, will be recognized as a
reduction of the net OPEB liability in the subsequent fiscal period rather than in the current fiscal period.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in future OPEB expense as follows:
Year Ending Net deferred outflows/
September 30, (inflows) of resources
2023 80,222$
2024 80,222
2025 63,877
2026 62,979
2027 44,625
Thereafter 9,821
Total 341,746$
Combined Totals for Retiree Healthcare Plan and Supplemental Death Benefits Plan
The combined totals for the two OPEB plans are as follows:
Retiree
Healthcare
Plan SDBF Total
OPEB asset 951,194$ -$ 951,194$
OPEB liability - (2,425,196) (2,425,196)
Deferred inflows (388,084) (214,828) (602,912)
Deferred outflows 148,299 574,980 723,279
OPEB expense (credit) (66,948) 295,176 228,228
City of Allen, Texas
Notes to Financial Statements
81
Note 12. Tax Abatements and Economic Incentives
The City enters into economic development agreements designed to promote development and
redevelopment within the City, spur economic improvement, stimulate commercial activity, generate
additional sales tax, and enhance the property tax base and economic vitality of the City. These
programs abate or rebate property and sales taxes and include incentive payments and rebates of fees
that are not tied to taxes. The City’s economic development agreements are authorized under
Chapter 380 of the Texas Local Government Code, Chapter 311 (Tax Increment Financing Act), and 312
(Property Redevelopment and Tax Abatement Act) of the Texas Tax Code. Recipients may be eligible to
receive economic assistance based on the employment impact, economic impact, or community
impact of the project requesting assistance. Recipients of assistance generally commit to building or
remodeling real property and related infrastructure, demolishing and redeveloping outdated properties,
expanding operations, renewing facility leases, or bringing targeted businesses to the City. Agreements
generally contain recapture provisions that may require repayment or termination if recipients do not
meet the required provisions of the economic incentives. The following are the three categories of
economic development agreements City has contracted:
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 2022, the City rebated
$8,519,984 in taxes and rebated fees of $258,783 under these agreements. Additionally, for fiscal year
2022, the Allen Economic Development Corporation rebated taxes in the amount of $120,322 and made
incentive payments of $3,573,817, while the Allen Community Development Corporation rebated taxes
in the amount of $120,322, and made an incentive payment of $1,500,000.
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 $86,877 for the fiscal
year ended September 30, 2022.
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 $586,849 in payments for TIF obligations during fiscal year
2022.
Note 13. Commitments and Contingent Liabilities
Federal Grants -The City participates in several State and Federal assisted grant programs. Amounts
received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the Federal Government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the City expects such amounts, if any, to be
immaterial.
City of Allen, Texas
Notes to Financial Statements
82
Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
Economic Development Grant -The City has several economic development agreements whereby the
City has agreed to pay a grant(s) to a developer and/or business in return for the design, construction,
operating, and/or managing of the business within the City of Allen. All grants are performance based
and do not constitute liabilities on the City’s financial records.
83
Required Supplementary
Information
84
City of Allen, Texas Exhibit A-1
Schedule of Changes in Total OPEB Liability and Related Ratios -
Supplemental Death Benefits Fund
Last Five Measurement Years
85
2021*2020*2019*2018*2017*
Total OPEB liability:
Service cost 170,331$ 126,390$ 94,165$ 97,628$ 83,658$
Interest (on the total pension liability) 44,623 49,783 56,186 45,926 42,992
Changes in benefit terms - - - - -
Difference in expected and actual experience (7,796) (78,736) (183,037) 101,506 -
Change in assumptions or other inputs 83,821 315,925 317,781 (111,311) 121,271
Benefit payments **(23,494) (5,495) (5,231) (4,881) (4,648)
Net change in total OPEB liability 267,485 407,867 279,864 128,868 243,273
Total OPEB liability, beginning of year 2,157,711 1,749,844 1,469,980 1,341,112 1,097,839
Total OPEB liability, end of year 2,425,196$ 2,157,711$ 1,749,844$ 1,469,980$ 1,341,112$
Covered-employee payroll 58,734,814$ 54,952,114$ 52,314,010$ 48,814,159$ 46,476,391$
Total OPEB liability as a percentage of covered-employee payroll 4.13% 3.93% 3.34% 3.01% 2.89%
Notes to Schedule:
*GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
**Due to the SDBP being considered an unfunded plan under GASB 75, benefit payments
are treated as being equal to the employer's yearly contributions for retirees.
There are no assets accumulated in trust to pay related benefits for the OPEB Plan.
City of Allen, Texas Exhibit A-2
Schedule of OPEB Contributions -
Supplemental Death Benefits Fund
Last Five Fiscal Years
86
2022* 2021* 2020* 2019* 2018*
Actuarially determined contributions 24,889$ 18,595$ 5,394$ 5,156$ 4,778$
Contributions in relation to actuarially determined contribution 24,889 18,595 5,394 5,156 4,778
Contributions deficiency (excess) -$ -$ -$ -$ -$
Covered-employee payroll 62,223,037$ 58,367,657$ 53,937,361$ 51,562,996$ 47,782,955$
Contributions as a percentage of covered-employee payroll 0.04% 0.03% 0.01% 0.01% 0.01%
Notes to Schedule of OPEB Contributions
GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be presented as it becomes available.
GASB 75, paragraph 57, requires that the data in this schedule be presented as of the
City’s fiscal year as opposed to the time period covered by the measurement date.
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 Five Measurement Years
87
Measurement Year Ended September 30,
2022* 2021* 2020* 2019* 2018*
Total OPEB liability
Service cost -$ -$ -$
Interest (on the total OPEB liability)6,770 21,215 29,520 38,887 41,469
Changes in benefit terms - - - - -
Difference in expected and actual experience (255,282) - (5,299) - (91,701)
Change in assumptions (25,531) - (120,997) 28,859 (30,415)
Benefit payments (70,906) (183,188) (49,154) (155,176) 29,767
Net change in total OPEB liability (344,949) (161,973) (145,930) (87,430) (50,880)
Total OPEB liability, beginning of year 459,985 621,958 767,888 855,318 906,198
Total OPEB liability, end of year (a)115,036$ 459,985$ 621,958$ 767,888$ 855,318$
Plan fiduciary net position:
Contributions -employer -$ -$ -$ -$ -$
Contributions -employee - - - - -
Net investment income (loss)(179,315) 116,827 99,920 66,177 94,484
Benefit payments (86,570) (222,665) (212,086) (142,438) (252,781)
Administrative expense (7,943) (8,523) (9,065) (8,119) (10,442)
Net change in plan fiduciary net position (273,828) (114,361) (121,231) (84,380) (168,739)
Plan fiduciary net position - beginning 1,340,058 1,454,419 1,575,650 1,660,030 1,828,769
Plan fiduciary net position - ending (b) 1,066,230$ 1,340,058$ 1,454,419$ 1,575,650$ 1,660,030$
Plan Net OPEB liability (asset) - ending (a) - (b)(951,194)$ (880,073)$ (832,461)$ (807,762)$ (804,712)$
Plan fiduciary net position as a % of total OPEB liability 926.87% 291.33% 233.85% 205.19% 194.08%
Covered payroll 62,223,037$ 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Net OPEB liability (asset) as a % of covered payroll -1.53% -1.51% -1.54% -1.69% -1.94%
Notes to Schedule:
Benefit changes. There have been no material benefit changes during the valuation periods shown above.
Changes in assumptions . There have been no material benefit changes during the valuation period.
*GASB 75 requires 10 fiscal years of data to be provided in this schedule.
However, information for additional years will be displayed as it becomes available.
City of Allen, Texas Exhibit A-4
Schedule of OPEB Contributions -
Defined Benefit Retiree Healthcare Plan
Last Five Fiscal Years
88
Fiscal Year Ended September 30,
2022* 2021* 2020* 2019* 2018*
Actuarially determined contributions -$ -$ -$ -$ -$
Contributions in relation to actuarially determined contribution - - - - -
Contributions deficiency (excess) -$ -$ -$ -$ -$
Covered payroll 62,223,037$ 58,367,657$ 53,973,541$ 47,857,137$ 41,451,256$
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 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, 2021
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 2.25% per annum
Healthcare cost trend rates 11.87% initial, decreasing to an ultimate rate of 4.14% in the year 2043
Investment Rate of Return 4.0%, net of OPEB plan investment expense
Retirement Age Rates are the same as those used for the TMRS retirement plan
Mortality Sex distinct headcount weighted PUB-2010 general safety employees mortality
tables and general retirees table in conjunction with martality improvement
scale MP-2021
City of Allen, Texas Exhibit A-5
Schedule of Changes in Net Pension Liability and Related Ratios –
Retirement Plan (TMRS)
Last Eight Measurement Years
89
2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021*
Total pension liability:
Service cost 6,407,942$ 7,377,440$ 7,740,829$ 8,091,540$ 8,503,427$ 9,118,332$ 9,715,534$ 10,401,936$
Interest (on the total pension liability) 9,749,386 10,562,818 11,165,087 12,232,446 13,379,960 14,492,431 15,828,804 17,039,222
Changes in benefit terms - - - - - - - -
Difference in expected and actual experience (1,791,341) 196,259 894,580 1,293,282 (680) 1,564,808 - 4,068,814
Change in assumptions - (231,950) - - - 409,038 (735,396) -
Benefit payments, including refunds of
employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230) (6,195,996) (5,974,169) (8,465,892)
Net change in total pension liability 11,152,869 14,657,132 15,898,007 17,193,500 16,660,477 19,388,613 18,834,773 23,044,080
Total pension liability, beginning of year 137,679,525 148,832,394 163,489,526 179,387,533 196,581,033 213,241,510 232,630,123 251,464,896
Total pension liability, end of year 148,832,394$ 163,489,526$ 179,387,533$ 196,581,033$ 213,241,510$ 232,630,123$ 251,464,896$ 274,508,976$
Plan fiduciary net position:
Contributions -employer 5,455,902$ 6,063,051$ 6,473,617$ 7,130,557$ 7,423,200$ 8,050,585$ 8,425,764$ 8,906,713$
Contributions -employee 2,754,779 3,021,766 3,129,050 3,274,594 3,423,774 3,661,981 3,850,652 4,111,437
Net investment income 6,648,346 188,559 9,039,319 20,569,321 (5,239,779) 27,097,746 15,770,860 29,958,269
Benefit payments, including refunds of
employee contributions (3,213,118) (3,247,435) (3,902,489) (4,423,768) (5,222,230) (6,195,996) (5,974,168) (8,465,892)
Administrative expense (69,397) (114,830) (102,024) (106,520) (101,162) (152,888) (101,906) (138,398)
Other (5,706) (5,671) (5,497) (5,400) (5,285) (4,592) (3,976) 949
Net change in plan fiduciary net position 11,570,806 5,905,440 14,631,976 26,438,784 278,518 32,456,836 21,967,226 34,373,078
Plan fiduciary net position - beginning 116,193,427 127,764,233 133,669,673 148,301,649 174,740,433 175,018,951 207,475,787 229,443,013
Plan fiduciary net position - ending 127,764,233$ 133,669,673$ 148,301,649$ 174,740,433$ 175,018,951$ 207,475,787$ 229,443,013$ 263,816,091$
Net pension liability - ending 21,068,161$ 29,819,853$ 31,085,884$ 21,840,600$ 38,222,559$ 25,154,336$ 22,021,883$ 10,692,885$
Plan fiduciary net position as a % of total pension liability 85.84% 81.76% 82.67% 88.89% 82.08% 89.19% 91.24% 96.10%
Covered payroll 39,335,988$ 43,142,910$ 44,410,952$ 46,476,391$ 48,814,159$ 52,314,010$ 54,952,114$ 58,734,814$
Net pension liability as a % of covered payroll 53.56% 69.12% 70.00% 46.99% 78.30% 48.08% 40.07% 18.21%
* 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 Eight Fiscal Years
90
2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022*
Actuarially determined contributions 5,785,220$ 6,028,939$ 6,217,858$ 6,678,295$ 7,228,643$ 7,555,689$ 8,333,070$ 8,810,782$
Actual contributions (5,797,651) (6,181,797) (6,545,488) (6,927,485) (7,736,900) (7,890,278) (8,739,669) (8,810,782)
Contributions deficiency (excess) (12,431)$ (152,858)$ (327,630)$ (249,190)$ (508,257)$ (334,589)$ (406,599)$ -$
Covered payroll 40,985,314$ 43,564,466$ 45,962,313$ 47,782,955$ 51,562,996$ 53,937,361$ 58,367,657$ 62,223,037$
Ratio of actual contributions to covered payroll amount 14.15% 14.19% 14.24% 14.50% 15.00% 14.63% 14.97% 14.16%
*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 24 years
Asset Valuation Method 10 year smoothed market; 12% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 11.5% including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated
for the 2019 valuation pursuant to an experience study of the period 2014 - 2018
Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected
on a fully generational basis with scale UMP.
Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the
General Employee table used for females. The rates are projected on a fully generational
basis with scale UMP.
Other information:There were no benefit changes during the year.
Actuarial determined contribution rates are calculated as of December 31st
each year and become effective in January 13 months later.
Fiscal Year Ended September 30,
City of Allen, Texas Exhibit A-7
General Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2022
91
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes, penalties and interest 56,742,452$ 56,885,649$ 56,716,915$ (168,734)$
Municipal sales tax 22,644,387 28,156,146 27,386,273 (769,873)
Franchise taxes 6,899,740 6,744,698 7,342,205 597,507
Licenses, permits and fees 3,093,375 3,152,375 2,810,280 (342,095)
Charges for services 9,594,467 9,470,437 9,531,473 61,036
Fines 834,577 1,204,869 1,313,927 109,058
Gifts and contributions 2,792,705 2,857,101 2,917,033 59,932
Intergovernmental 123,652 2,911,264 2,934,604 23,340
Investment earnings 593,751 872,811 (1,407,248) (2,280,059)
Miscellaneous 2,590,150 2,636,681 2,841,103 204,422
Total revenues 105,909,256 114,892,031 112,386,565 (2,505,466)
EXPENDITURES
Current:
General government 22,598,579 23,549,672 21,986,036 1,563,636
Public safety 49,697,712 51,917,314 51,483,662 433,652
Public works 6,863,481 7,162,443 6,532,462 629,981
Culture and recreation 27,514,154 29,353,706 28,059,988 1,293,718
Community development 4,094,576 4,269,808 3,736,000 533,808
Capital Outlay 45,475 1,364,683 615,725 748,958
Debt Service
Principal retirement - - 454,530 (454,530)
Interest and fiscal charges - - 37,744 (37,744)
Total expenditures 110,813,977 117,617,626 112,906,147 5,203,753
Excess (deficiency) of revenues
over (under) expenditures (4,904,721) (2,725,595) (519,582) 2,698,287
OTHER FINANCING SOURCES (USES)
Transfers in 6,261,414 6,095,044 6,095,044 -
Transfers out (1,366,693) (1,768,148) (4,934,474) (3,166,326)
Right-to-use leases - - 318,698 318,698
Sale of capital assets 10,000 32,926 55,945 23,019
Total other financing sources (uses) 4,904,721 4,359,822 1,535,213 (2,824,609)
NET CHANGE IN FUND BALANCE - 1,634,227 1,015,631 (126,322)
FUND BALANCES, BEGINNING OF YEAR 27,764,293 27,764,293 27,764,293 -
FUND BALANCES, END OF YEAR 27,764,293$ 29,398,520$ 28,779,924$ (126,322)$
Budgeted Amounts
City of Allen, Texas Exhibit A-8
Grants Fund Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual
For the Year Ended September 30, 2022
92
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 684,242$ 8,087,897$ 3,649,774$ (4,438,123)$
Investment earnings (loss) 7,790 - (179) (179)
Total revenues 692,032 8,087,897 3,649,595 (4,438,302)
EXPENDITURES
Current:
Public safety 9,974 60,080 12,669 47,411
Public works 524,898 2,961,282 2,584,498 376,784
Culture and recreation 31,370 31,789 30,539 1,250
Community development - 3,800,000 1,049,364 2,750,636
Total expenditures 566,242 6,853,151 3,677,070 3,176,081
Excess (deficiency) of revenues
over (under) expenditures 125,790 1,234,746 (27,475) (1,262,221)
OTHER FINANCING SOURCES (USES)
Transfers in 3,077 4,532 4,532 -
Transfers out (207,690) - - -
Total other financing sources (uses) (204,613) 4,532 4,532 -
NET CHANGE IN FUND BALANCE (78,823) 1,239,278 (22,943) (1,262,221)
FUND BALANCES, BEGINNING OF YEAR 261,457 261,457 261,457 -
FUND BALANCES, END OF YEAR 182,634$ 1,500,735$ 238,514$ (1,262,221)$
Budgeted Amounts
City of Allen, Texas
Notes to Required Supplementary Information
For the Year Ended September 30, 2022
93
Budgetary Information
The City Council adheres to the following procedures in establishing the budgets reflected in the financial
statements:
1. Each year the City Manager is required to submit to the City Council a proposed budget for the
fiscal year beginning on the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to each October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. Annual budgets are legally adopted for the General Fund, Grants Fund and Debt Service Fund
on a basis consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is not employed for proprietary funds. However, the City
adopts an annual budget for those funds for managerial control purposes.
5. The City Manager is authorized to adjust budgeted amounts. However, such revisions may not
result in total expenditures (appropriations) in excess of budgeted expenditures without approval
of the City Council. Therefore, the legal level of budgetary control is the combined total budgeted
expenditures for all fund types.
6. Formal budgetary integration is not employed for nonmajor Special Revenue Funds, Proprietary
Funds or Capital Projects Funds. However, the City also adopts an annual budget for those funds
for managerial control purposes.
7. Budgetary data for the non-major Special Revenue Funds and Capital Projects Funds has not
been presented in the accompanying basic financial statements because such funds are
budgeted over the life of the respective grant or project and not on an annual basis. Budgetary
information for the Proprietary Funds has not been presented since reporting on such budgets is
not legally required.
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — General
Fund and Grants Fund present a comparison of budgetary data to actual results. The General Fund and
Grants Fund utilizes the same basis of accounting for both budgetary purposes and actual results.
94
95
Combining and Budgetary
Comparison Schedules
96
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, 2022
97
Variance With
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Ad valorem taxes 15,632,416$ 15,632,416$ 15,557,736$ (74,680)$
Investment earnings 83,122 16,469 54,610 38,141
Total revenues 15,715,538 15,648,885 15,612,346 (36,539)
EXPENDITURES
Principal retirement 11,997,278 12,041,975 12,052,538 (10,563)
Interest and fiscal charges 4,377,904 4,378,628 4,374,306 4,322
Total expenditures 16,375,182 16,420,603 16,426,844 (6,241)
Excess (deficiency) of revenues
over (under) expenditures (659,644) (771,718) (814,498) (42,780)
OTHER FINANCING SOURCES (USES)
Transfers in - - 816,326 816,326
Total other financing sources (uses) - - 816,326 816,326
NET CHANGE IN FUND BALANCES (659,644) (771,718) 1,828 773,546
FUND BALANCE, BEGINNING OF YEAR 918,379 918,379 918,379 -
FUND BALANCE, END OF YEAR 258,735$ 146,661$ 920,207$ 773,546$
Budgeted Amounts
98
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Hotel Occupancy Tax Fund – To account for funds received from hotel occupancy tax and expend as
allowed by state law.
Asset Forfeiture Fund –- To account for activities associated with assets legally seized and forfeited.
Special Revenue Fund – To account for monies that have external legal restrictions associated with their
use.
Gift Permanent Fund – To account for funds received through substantial gifts from the public.
Park Dedication Fund – To account for funds received and expended for the acquisition of additional
park land and for the development of neighborhood parks.
Tax Increment Financing Fund – To account for the tracking of property tax and sales tax revenue and
associated expenses for the City’s Tax Increment Financing agreements.
City of Allen, Texas Exhibit B-2
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2022
99
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
ASSETS
Cash and cash equivalents 1,829,128$ 206,540$ 610,747$ 397,349$ 1,106,990$ 3,428,843$ 7,579,597$
Investments 491,357 - 994,062 - 589,368 6,046,553 8,121,340
Accounts receivable 199,301 - 32,569 - - - 231,870
Accrued interest 3,119 - 6,228 - 3,835 30,905 44,087
TOTAL ASSETS 2,522,905$ 206,540$ 1,643,606$ 397,349$ 1,700,193$ 9,506,301$ 15,976,894$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 38,503$ -$ 5,263$ -$ -$ -$ 43,766$
Accrued liabilities 7,777 111,786 - - - - 119,563
TOTAL LIABILITIES 46,280 111,786 5,263 - - - 163,329
FUND BALANCES
Restricted
Tourism 2,476,625 - - - - - 2,476,625
Asset forfeiture - 94,754 - - - - 94,754
Park acquisition and development - - - - 1,700,193 - 1,700,193
Tax increment financing agreement - - - - - 9,506,301 9,506,301
Court technology - - 118,653 - - - 118,653
Juvenile case manager - - 1,610 - - - 1,610
PEG fees - - 1,067,468 - - - 1,067,468
Radio system - - 445,621 - - - 445,621
Court security - - 4,991 - - - 4,991
Public safety and library enhancements - - - 397,349 - - 397,349
TOTAL FUND BALANCES 2,476,625 94,754 1,638,343 397,349 1,700,193 9,506,301 15,813,565
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 2,522,905$ 206,540$ 1,643,606$ 397,349$ 1,700,193$ 9,506,301$ 15,976,894$
Special Revenue
City of Allen, Texas Exhibit B-3
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2022
100
Total
Hotel Tax Non-major
Occupancy Asset Special Gift Park Increment Governmental
Tax Forfeiture Revenue Permanent Dedication Financing Funds
REVENUES
Ad valorem taxes, penalties and interest -$ -$ -$ -$ -$ 2,025,808$ 2,025,808$
Franchise taxes - - 139,148 - - - 139,148
Municipal sales tax - - - - - 223,645 223,645
Licenses, permits, and fees - - - - 291,540 - 291,540
Fines - - 111,299 - - - 111,299
Hotel / motel taxes 2,074,533 - - - - - 2,074,533
Intergovernmental - - - - - 157,185 157,185
Investment earnings (loss) (6,883) 1,410 (34,902) 1,152 (22,259) (214,755) (276,237)
Miscellaneous - 41,485 - - - - 41,485
Total revenues 2,067,650 42,895 215,545 1,152 269,281 2,191,883 4,788,406
EXPENDITURES
General government - - 118,214 - - 616,849 735,063
Public safety - 93,295 220 17,737 - - 111,252
Culture and recreation 1,790,824 - - - 233,187 - 2,024,011
Capital outlay - - 154,076 29,580 81,459 - 265,115
Total expenditures 1,790,824 93,295 272,510 47,317 314,646 616,849 3,135,441
Excess (deficiency) of revenues
over (under) expenditures 276,826 (50,400) (56,965) (46,165) (45,365) 1,575,034 1,652,965
OTHER FINANCING SOURCES (USES)
Transfers out (2,705) - (92,113) - - - (94,818)
Sale of capital assets - 1,203 - - - - 1,203
Total other financing sources (uses)(2,705) 1,203 (92,113) - - - (93,615)
NET CHANGE IN FUND BALANCES 274,121 (49,197) (149,078) (46,165) (45,365) 1,575,034 1,559,350
FUND BALANCES, BEGINNING OF YEAR 2,202,504 143,951 1,787,421 443,514 1,745,558 7,931,267 14,254,215
FUND BALANCES, END OF YEAR 2,476,625$ 94,754$ 1,638,343$ 397,349$ 1,700,193$ 9,506,301$ 15,813,565$
SPECIAL REVENUE
101
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, 2022
102
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
ASSETS
CURRENT ASSETS
Cash and cash equivalents 12,096,698$ 2,677,394$ 1,494,391 16,268,483$
Investments 8,399,028 8,500,077 775,754 17,674,859
Accounts receivable - 16,711 - 16,711
Accrued interest receivable 35,955 53,665 3,321 92,941
Prepaid items - 82,554 - 82,554
Total current assets 20,531,681 11,330,401 2,273,466 34,135,548
CAPITAL ASSETS
Machinery and equipment 5,683,003 - - 5,683,003
Vehicles 18,117,806 - - 18,117,806
Construction in progress 1,596,139 - - 1,596,139
Accumulated depreciation (17,929,548) - - (17,929,548)
Capital assets,
net of accumulated depreciation 7,467,400 - - 7,467,400
TOTAL ASSETS 27,999,081 11,330,401 2,273,466 41,602,948
LIABILITIES AND NET POSITION
LIABILITIES
Accounts payable 204,073 245,506 205,135 654,714
Accrued liabilities - 74 - 74
Incurred but not reported claims - 1,134,853 - 1,134,853
TOTAL LIABILITIES 204,073 1,380,433 205,135 1,789,641
NET POSITION
Net investment in capital assets 7,467,400 - - 7,467,400
Unrestricted 20,327,608 9,949,968 2,068,331 32,345,907
TOTAL NET POSITION 27,795,008$ 9,949,968$ 2,068,331$ 39,813,307$
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, 2022
103
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
OPERATING REVENUES
Charges for services 3,807,548$ 13,163,574$ -$ 16,971,122$
Other income 42,268 340,674 - 382,942
Total operating revenues 3,849,816 13,504,248 - 17,354,064
OPERATING EXPENSES
Personal services - 492,001 - 492,001
Contractual services - 12,618,132 - 12,618,132
Maintenance - - 540,234 540,234
Depreciation 2,456,787 - - 2,456,787
Total operating expenses 2,456,787 13,110,133 540,234 16,107,154
OPERATING INCOME (LOSS)1,393,029 394,115 (540,234) 1,246,910
NON-OPERATING REVENUES (EXPENSES)
Investment earnings (loss) (631,220) (597,843) (61,348) (1,290,411)
Gain on disposal of capital assets 241,048 - - 241,048
Total non-operating revenues (expenses) (390,172) (597,843) (61,348) (1,049,363)
INCOME (LOSS) BEFORE TRANSFERS 1,002,857 (203,728) (601,582) 197,547
TRANSFERS
Transfers in - 414,758 1,400,000 1,814,758
Total transfers - 414,758 1,400,000 1,814,758
CHANGE IN FUND NET POSITION 1,002,857 211,030 798,418 2,012,305
NET POSITION, BEGINNING OF YEAR 26,792,151 9,738,938 1,269,913 37,801,002
NET POSITION, END OF YEAR 27,795,008$ 9,949,968$ 2,068,331$ 39,813,307$
City of Allen, Texas Exhibit C-3
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2022
104
Risk Facility
Replacement Management Maintenance
Fund Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from transactions with other funds 3,849,816$ 13,518,051$ -$ 17,367,867$
Cash paid to employees for services - (508,141) - (508,141)
Cash paid for goods and services 164,965 (2,792,744) (507,725) (3,135,504)
Cash paid for claims - (9,653,313) - (9,653,313)
Net cash provided by (used in) operating activities 4,014,781 563,853 (507,725) 4,070,909
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in - 414,758 1,400,000 1,814,758
Net cash provided by non-capital financing activities - 414,758 1,400,000 1,814,758
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (2,000,189) - - (2,000,189)
Proceeds from sale of capital assets 241,048 - - 241,048
Net cash used in capital and related financing activities (1,759,141) - - (1,759,141)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities 3,305,974 (2,017,244) 117,402 1,406,132
Interest on investments (619,570) (625,143) (61,037) (1,305,750)
Net cash provided by (used in) investing activities 2,686,404 (2,642,387) 56,365 100,382
NET CHANGE IN CASH AND CASH EQUIVALENTS 4,942,044 (1,663,776) 948,640 4,226,908
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 7,154,654 4,341,170 545,751 12,041,575
CASH AND CASH EQUIVALENTS, END OF YEAR 12,096,698$ 2,677,394$ 1,494,391$ 16,268,483$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net operating income (loss) 1,393,029$ 394,115$ (540,234)$ 1,246,910$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 2,456,787 - - 2,456,787
Change in assets and liabilities:
Accounts receivable - 13,803 - 13,803
Prepaids - (82,554) - (82,554)
Liabilities 164,965 238,489 32,509 435,963
Total adjustments 2,621,752 169,738 32,509 2,823,999
Net cash provided by (used in) operating activities 4,014,781$ 563,853$ (507,725)$ 4,070,909$
NON-CASH INVESTING ACTIVITIES
Change in the fair value of investments (12,148)$ (6,747)$ (930)$ (19,825)$
105
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, 2022
106
ASSETS
CURRENT ASSETS
Cash and cash equivalents 15,392,780$
Investments 14,789,577
Sales tax receivable 2,473,496
Accrued interest receivable 116,111
TOTAL ASSETS 32,771,964$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 128,639$
Accrued and other liabilities 17,551
TOTAL LIABILITIES 146,190
FUND BALANCE
Restricted
Debt service 731,827
Unassigned 31,893,947
TOTAL FUND BALANCE 32,625,774
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 32,771,964$
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, 2022
107
Total fund balance of governmental fund balance sheet 32,625,774$
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. 267,137
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.(30,983)
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. (10,434,477)
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. 13,613,903
Net position of governmental activities 36,041,354$
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, 2022
108
REVENUES
Sales and other taxes 13,559,367$
Investment earnings (loss)(46,189)
Miscellaneous 66,384
Total rev enues 13,579,562
EXPENDITURES
Current:
Economic development 5,572,201
Debt service:
Principal retirement 1,911,522
Interest and fiscal charges 438,219
Total expenditures 7,921,942
Excess of revenues over expenditures 5,657,620
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 11,572,631
Total other financing sources 11,572,631
NET CHANGE IN FUND BALANCE 17,230,251
FUND BALANCE, BEGINNING OF YEAR 15,395,523
FUND BALANCE, END OF YEAR 32,625,774$
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, 2022
109
Net change in fund balance - total governmental fund 17,230,251$
Amounts reported for governmental activities in the statement of activities
are different because:
The book value of capital assets disposed are recorded as reductions of the capital asset
in the governmental activities statement of activities and proceeds, whereas, they are
recorded as sale of capital assets in the governmental funds.
(6,013,533)
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Accordingly, depreciation
expense is not reported as expenditures in the governmental funds. (50,205)
The payment of the principal of long-term debt consumes the current financial resources
of governmental funds. Also, governmental funds report the effect of premiums, discounts,
and similar items when debt is first issued. However, these amounts are amortized
in the government-wide financial statements:
Bond principal retirement 1,245,000$
Note principal retirement 666,522
Amortization of bond premiums 363,495
Amortization of deferred charges on refunding (54,333) 2,220,684
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. 8,550
Change in net position of governmental activities 13,395,747$
City of Allen, Texas Exhibit D-5
Balance Sheet
Allen Community Development Corporation
September 30, 2022
110
ASSETS
CURRENT ASSETS
Cash and cash equivalents 14,542,311$
Investments 14,230,730
Sales tax receivable 2,473,496
Accounts receivable 23,141
Accrued interest receivable 59,643
TOTAL ASSETS 31,329,321$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable 578,091$
Retainage payable 70,376
TOTAL LIABILITIES 648,467
FUND BALANCES
Restricted
Debt service 513,260
Unassigned 30,167,594
TOTAL FUND BALANCE 30,680,854
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE 31,329,321$
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, 2022
111
Total governmental fund balance 30,680,854$
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. 243,040
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.(46,713)
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. (20,715,000)
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. 45,337,028
Net position of governmental activities 55,499,209$
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, 2022
112
REVENUES
Sales and other taxes 13,559,367$
Investment earnings (loss)(675,495)
Miscellaneous 70,024
Total rev enues 12,953,896
EXPENDITURES
Current:
Community development 4,966,731
Capital projects:
Community development 1,999,735
Debt service:
Principal retirement 1,815,000
Interest and fiscal charges 596,485
Total expenditures 9,377,951
Excess of revenues over expenditures 3,575,945
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 13,019
Total other financing sources (uses)13,019
NET CHANGE IN FUND BALANCE 3,588,964
FUND BALANCE, BEGINNING OF YEAR 27,091,890
FUND BALANCE, END OF YEAR 30,680,854$
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, 2022
113
Net change in fund balance - total governmental fund 3,588,964$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets are allocated over their estimated
useful lives and reported as depreciation expense. 1,999,735
Governmental funds report the effect of premiums, discounts, and similar items when
debt is first issued. However, these amounts are amortized in the
government-wide financial statements. (81,013)
Current year changes in accrued interest payable do not require the use of current
financial resources and, accordingly, are not reported as expenditures in
governmental funds.2,930
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. (3,468,810)
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. 1,815,000
Change in net position of governmental activities 3,856,806$
114
115
Statistical Section
(Unaudited)
116
117
Contents Table #s
Financial Trends 1, 2, 3 & 4
These tables contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity 5, 6, 7 & 8
These tables contain information to help the reader assess the City's two most significant
local revenue sources, the property and sales taxes.
Debt Capacity 9, 10, 11 & 12
These tables present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Economic and Demographic Information 13 & 14
These tables offer economic and demographic indicators to help the reader understand
the environment within which the City's financial activities take place.
Operating Information 15, 16 & 17
These tables contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides.
STATISTICAL SECTION
This part of the City of Allen's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, notes disclosures, and required
supplementary information says about the City's overall financial health. This information has not been
audited by the independent auditor.
Source: Unless otherwise noted, the information in these tables is derived from the annual comprehensive
financial reports for the relevant year.
City of Allen, Texas Table 1 Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 118 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Governmental activitiesNet investment in capital assets 369,314,466$ 363,168,607$ 355,756,224$ 364,667,251$ 366,322,218$ 379,153,944$ 391,261,029$ 392,368,425$ 388,795,081$ 392,949,598$ Restricted 26,511,231 26,066,205 31,476,026 32,485,173 38,303,226 39,588,223 44,872,796 13,891,413 14,807,800 16,101,110 Unrestricted 8,960,703 12,436,903 16,596,955 14,435,604 15,902,576 15,312,432 20,238,419 57,821,649 72,520,903 76,814,254 Total governmental net position 404,786,400$ 401,671,715$ 403,829,205$ 411,588,028$ 420,528,020$ 434,054,599$ 456,372,244$ 464,081,487$ 476,123,784$ 485,864,962$ Business-type activitiesNet investment in capital assets 99,544,466$ 100,991,443$ 102,340,588$ 106,174,191$ 107,926,811$ 103,762,241$ 113,459,625$ 113,355,391$ 113,396,556$ 108,374,156$ Restricted for debt service 364,510 26,859 344,421 216,664 195,485 46,350 571,053 513,520 764,763 1,230,726 Unrestricted 33,860,716 32,720,930 34,165,174 33,592,809 31,920,455 43,785,615 40,240,619 50,803,699 56,890,299 70,596,998 Total business-type net position 133,769,692$ 133,739,232$ 136,850,183$ 139,983,664$ 140,042,751$ 147,594,206$ 154,271,297$ 164,672,610$ 171,051,618$ 180,201,880$ Primary governmentNet investment in capital assets 468,858,932$ 464,160,050$ 458,096,812$ 470,841,442$ 474,249,029$ 482,916,185$ 504,720,654$ 505,723,816$ 502,191,637$ 501,323,754$ Restricted for debt service 26,875,741 26,093,064 31,820,447 32,701,837 38,498,711 39,634,573 45,443,849 14,404,933 15,572,563 17,331,836 Unrestricted 42,821,419 45,157,833 50,762,129 48,028,413 47,823,031 59,098,047 60,479,038 108,625,348 129,411,202 147,411,252 Total primary government net position 538,556,092$ 535,410,947$ 540,679,388$ 551,571,692$ 560,570,771$ 581,648,805$ 610,643,541$ 628,754,097$ 647,175,402$ 666,066,842$ Source:City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 2 Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 119 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022ExpensesGovernmental activities:General government 22,271,050$ 24,940,939$ 24,464,246$ 25,304,811$ 28,251,550$ 26,764,210$ 21,238,061$ 24,937,087$ 22,940,360$ 26,469,412$ Public safety 28,935,911 30,408,487 31,607,444 35,199,937 39,624,788 39,213,768 44,993,635 47,369,212 49,532,988 63,891,672 Public works 17,807,948 18,252,130 18,349,569 19,083,214 20,209,785 24,161,991 27,039,953 22,393,268 19,661,514 9,148,396 Culture and recreation 29,983,224 30,987,689 32,407,934 32,851,598 28,968,534 33,791,438 33,287,645 29,015,632 29,359,242 36,053,830 Community development 2,230,968 2,689,517 2,861,704 3,251,555 3,007,047 3,079,242 3,160,050 5,238,233 6,330,539 5,587,202 Interest on long-term debt 4,067,303 3,955,305 3,921,989 3,356,234 2,980,513 2,920,824 2,888,831 2,745,698 3,103,192 2,312,561 Total governmental activities expenses 105,296,404 111,234,067 113,612,886 119,047,349 123,042,217 129,931,473 132,608,175 131,699,130 130,927,835 143,463,073 Business-type activities:Water and sewer 29,160,281 30,081,379 32,304,628 35,604,182 39,527,816 41,134,685 44,511,123 45,524,999 46,442,937 46,917,817 Solid waste 5,495,654 5,383,215 5,560,294 5,870,269 6,078,853 6,223,788 6,248,035 6,525,391 6,824,441 7,088,901 Drainage 910,179 951,973 914,322 1,146,138 1,193,057 1,260,262 1,396,935 1,555,570 1,497,014 1,349,306 Golf Course 2,483,467 2,839,098 2,911,476 3,089,041 3,135,144 3,397,180 3,332,927 3,166,856 3,557,076 3,800,645 Total business-type activities expenses 38,049,581 39,255,665 41,690,720 45,709,630 49,934,870 52,015,915 55,489,020 56,772,816 58,321,468 59,156,669 Total primary government expenses 143,345,985$ 150,489,732$ 155,303,606$ 164,756,979$ 172,977,087$ 181,947,388$ 188,097,195$ 188,471,946$ 189,249,303$ 202,619,742$ Program RevenuesGovernmental activities:Charges for Services:General government 675,196$ 823,801$ 705,064$ 467,786$ 497,243$ 525,542$ 500,122$ 509,691$ 598,846$ 570,560$ Public safety 1,541,985 1,568,294 1,647,407 1,801,984 2,712,076 2,171,332 1,954,810 2,189,114 2,063,311 2,221,519 Public works 196,685 154,418 233,808 210,687 293,559 1,333,506 1,485,962 725,209 587,112 484,796 Culture and recreation 8,443,286 8,425,791 9,177,211 10,289,465 8,747,206 9,803,084 9,744,309 3,793,429 4,649,476 7,154,042 Community development 2,220,438 3,103,410 3,021,708 3,216,799 4,266,140 4,025,326 4,798,471 2,530,977 4,024,897 2,828,805 Operating grants and contributions 2,067,482 1,121,356 1,749,567 1,557,260 2,443,054 2,423,768 2,056,001 3,427,631 4,874,743 5,477,428 Capital grants and contributions 14,737,780 9,571,206 10,552,610 16,039,869 15,327,094 18,942,856 19,888,044 10,639,664 8,535,198 11,162,094 Total governmental activities program revenues 29,882,852 24,768,276 27,087,375 33,583,850 34,286,372 39,225,414 40,427,719 23,815,715 25,333,583 29,899,244 Business-type activities:Charges for services:Water and sewer 30,808,084 28,955,282 34,135,714 36,335,868 37,163,882 42,453,681 43,103,920 49,461,636 49,099,338 57,519,014 Solid waste 6,114,951 6,309,729 6,474,386 6,687,182 6,735,559 6,933,356 7,006,423 7,116,831 7,039,328 7,278,382 Drainage 1,352,671 1,378,662 1,465,044 1,519,405 1,648,681 1,907,407 1,763,694 2,162,770 1,826,950 1,984,067 Golf Course 1,924,706 2,537,564 2,361,384 2,705,799 2,959,361 2,810,424 3,138,144 3,199,136 4,196,161 4,502,056 Operating grants and contributions 1,000,000 1,000,000 1,000,000 - - - - - - - Capital grants and contributions 3,788,300 3,685,960 4,416,642 6,172,301 5,622,911 9,734,528 10,175,397 8,332,962 5,695,888 4,072,343 Total business-type activities program revenues 44,988,712 43,867,197 49,853,170 53,420,555 54,130,394 63,839,396 65,187,578 70,273,335 67,857,665 75,355,862 Total primary government program revenues 74,871,564$ 68,635,473$ 76,940,545$ 87,004,405$ 88,416,766$ 103,064,810$ 105,615,297$ 94,089,050$ 93,191,248$ 105,255,106$ (continued) (continued) (continued)Fiscal Year Ended September 30
City of Allen, Texas Table 2 Changes in Net Position Last Ten Fiscal Years (Continued) (Accrual Basis of Accounting) (Unaudited) 120 Net (Expenses) RevenueGovernmental activities (75,413,552)$ (86,465,791)$ (86,525,511)$ (85,463,499)$ (88,755,845)$ (90,706,059)$ (92,180,456)$ (107,883,415)$ (105,594,252)$ (113,563,829)$ Business-type activities 6,939,131 4,611,532 8,162,450 7,710,925 4,195,524 11,823,481 9,698,558 13,500,519 9,536,197 16,199,193 Total primary government net expenses (68,474,421)$ (81,854,259)$ (78,363,061)$ (77,752,574)$ (84,560,321)$ (78,882,578)$ (82,481,898)$ (94,382,896)$ (96,058,055)$ (97,364,636)$ General Revenuesand Other Changes in Net AssetsGovernmental activities:Taxes:Property taxes 44,474,745$ 46,232,565$ 50,143,986$ 54,102,952$ 58,816,876$ 63,929,379$ 68,865,078$ 70,917,335$ 71,946,802$ 74,289,475$ Sales taxes 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,505 21,648,401 21,686,335 25,599,945 27,609,918 Franchise taxes 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 7,481,353 Hotel / Motel taxes 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,759,159 1,156,398 1,337,147 2,074,533 Other taxes 1,389,503 2,151,232 1,851,397 1,621,012 1,912,559 1,704,227 2,204,220 1,195,296 1,171,378 1,425,226 Investment earnings (loss) 177,495 416,828 689,736 735,832 837,577 944,196 4,048,112 4,246,550 1,118,970 (4,921,824) Gain on disposition of capital assets 92,401 - - - 263,627 446,117 - 144,347 322,084 291,333 Miscellaneous 2,079,082 2,445,491 2,650,103 3,794,277 2,703,964 3,592,229 3,460,124 4,188,530 5,311,149 8,689,016 Transfers 5,361,830 5,627,137 6,249,489 4,790,072 4,610,889 4,398,244 4,702,914 4,603,154 4,007,336 6,365,977 Total governmental activities 77,517,121 83,351,106 88,683,001 93,222,322 97,695,837 105,209,055 114,498,101 115,592,658 117,636,549 123,305,007 Business-type activities:Investment earnings (loss) 70,382 134,988 194,051 197,125 199,508 210,045 1,284,728 1,140,957 398,387 (1,830,191) Gain on disposition of capital assets - - - 15,503 - 13,228 - 9,713 7,585 - Miscellaneous 385,842 850,157 1,003,939 - 274,944 21,030 396,719 353,278 444,175 1,147,237 Transfers (5,361,830) (5,627,137) (6,249,489) (4,790,072) (4,610,889) (4,398,244) (4,702,914) (4,603,154) (4,007,336) (6,365,977) Total business-type activities (4,905,606) (4,641,992) (5,051,499) (4,577,444) (4,136,437) (4,153,941) (3,021,467) (3,099,206) (3,157,189) (7,048,931) Total primary government 72,611,515$ 78,709,114$ 83,631,502$ 88,644,878$ 93,559,400$ 101,055,114$ 111,476,634$ 112,493,452$ 114,479,360$ 116,256,076$ Change in Net PositionGovernmental activities 2,103,569$ (3,114,685)$ 2,157,490$ 7,758,823$ 8,939,992$ 14,502,996$ 22,317,645$ 7,709,243$ 12,042,297$ 9,741,178$ Business-type activities 2,033,525 (30,460) 3,110,951 3,133,481 59,087 7,669,540 6,677,091 10,401,313 6,379,008 9,150,262 Total primary government 4,137,094$ (3,145,145)$ 5,268,441$ 10,892,304$ 8,999,079$ 22,172,536$ 28,994,736$ 18,110,556$ 18,421,305$ 18,891,440$ Source:City of Allen Annual Comprehensive Financial Reports
City of Allen, Texas Table 3 Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (Unaudited) 121 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General FundNonspendable 2,098$ 4,767$ 1,486$ 2,129$ 126,833$ 25,747$ 209,323$ 8,777$ 145,700$ 28,677$ Restricted 726,953 752,238 779,185 907,908 58,910 59,386 61,304 63,185 63,627 64,234 Assigned 851,564 748,200 921,030 - 2,000,000 - - - - 71,742 Unassigned 14,672,989 17,368,187 18,407,873 20,911,943 19,684,053 23,626,108 25,744,069 26,826,184 27,554,966 28,615,271 Total General Fund 16,253,604$ 18,873,392$ 20,109,574$ 21,821,980$ 21,869,796$ 23,711,241$ 26,014,696$ 26,898,146$ 27,764,293$ 28,779,924$ All Other Governmental FundsNonspendable -$ -$ -$ -$ -$ -$ 751$ 751$ 751$ 751$ Restricted 34,132,037 42,149,113 51,398,430 46,610,702 57,540,668 27,922,044 31,444,917 46,411,439 72,968,241 66,742,207 Assigned - - - - - 28,349,191 32,023,933 34,703,219 42,842,631 35,208,805 Unassigned (deficit) - - - - - (4,428) - - Total all other governmental funds 34,132,037$ 42,149,113$ 51,398,430$ 46,610,702$ 57,540,668$ 56,266,807$ 63,469,601$ 81,115,409$ 115,811,623$ 101,951,763$ Source:City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 4 Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (Unaudited) 122 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022REVENUESAd valorem taxes 44,725,261$ 46,142,222$ 50,177,840$ 54,104,132$ 58,875,936$ 63,775,055$ 68,884,826$ 71,018,733$ 71,825,685$ 74,300,459$ Municipal sales tax 16,289,761 18,004,636 18,141,683 19,274,983 19,450,088 20,717,504 21,648,401 21,686,335 25,599,945 27,609,918 Franchise taxes 6,302,018 6,973,705 7,412,447 7,295,931 7,553,013 7,990,092 7,810,093 7,454,713 6,821,738 7,481,353 Licenses, permits and fees 2,294,955 2,915,533 3,134,551 3,064,580 4,450,639 4,494,361 5,279,425 3,341,367 4,509,535 3,101,820 Charges for services 10,623,970 10,580,553 11,734,344 13,002,770 11,664,328 13,442,785 13,586,474 6,845,248 8,061,820 10,959,753 Fines 1,402,725 2,160,168 1,805,230 1,579,628 1,851,735 1,710,354 2,214,571 1,195,296 1,171,378 1,425,226 Gifts and contributions 1,322,228 819,408 1,012,103 832,211 712,437 852,322 1,585,613 821,914 1,296,178 2,917,033 Hotel / motel fees 1,350,286 1,499,512 1,544,160 1,607,263 1,547,244 1,487,066 1,758,858 1,156,398 1,337,147 2,074,533 Intergovernmental 5,267,026 1,704,404 3,570,737 2,645,089 1,927,567 3,555,241 1,258,398 4,210,605 9,506,946 7,511,497 Investment earnings 144,604 344,386 577,014 627,760 643,928 851,954 3,280,340 3,648,787 877,724 (3,634,356) Miscellaneous 2,671,410 3,394,197 3,420,441 3,711,870 3,428,366 3,276,677 3,106,994 3,896,892 4,725,411 3,148,527 Total revenues 92,394,244 94,538,724 102,530,550 107,746,217 112,105,281 122,153,411 130,413,993 125,276,288 135,733,507 136,895,763 EXPENDITURESGeneral government 21,785,677 23,544,055 23,996,598 24,101,637 27,182,391 26,141,256 19,902,542 23,770,757 22,222,641 26,252,997Public safety 28,317,603 29,214,552 30,731,310 32,966,265 37,294,550 38,524,578 43,283,984 45,372,064 49,928,774 51,607,583Public works 4,055,500 4,077,961 4,888,798 4,865,431 5,428,996 8,899,247 11,194,393 10,342,827 11,430,042 14,556,933Culture and recreation 20,864,140 21,435,581 22,540,516 24,287,382 23,745,884 29,714,212 30,044,660 24,910,955 25,883,652 30,551,147Community development 2,211,253 2,631,289 2,880,880 2,833,011 2,951,864 3,076,260 3,161,679 3,254,786 3,590,155 3,807,968Capital outlay 6,123,786 6,573,002 6,555,445 15,408,293 7,053,863 13,114,988 11,921,047 9,458,085 8,483,652 36,748,922Debt servicePrincipal retirement 7,964,914 8,364,986 9,322,537 9,135,000 10,445,000 11,181,377 11,382,162 11,094,986 11,049,141 12,507,068Interest and fiscal charges 3,955,639 3,882,394 3,931,548 3,801,812 3,378,943 3,461,414 3,407,768 3,414,094 3,737,148 4,412,050Total expenditures 95,278,512 99,723,820 104,847,632 117,398,831 117,481,491 134,113,332 134,298,235 131,618,554 136,325,205 180,444,668 Excess (deficiency) of revenuesover (under) expenditures (2,884,268) (5,185,096) (2,317,082) (9,652,614) (5,376,210) (11,959,921) (3,884,242) (6,342,266) (591,698) (43,548,905) OTHER FINANCING SOURCES (USES)Refunding bonds issued - - 32,245,000 6,910,000 - 1,660,000 7,730,000 6,340,000 - Premium on bonds issued 350,071 432,879 3,772,133 1,039,610 955,225 978,386 9,570,000 4,034,604 6,881,772 2,777,611 Issuance of debt 5,065,000 10,595,000 - 1,940,000 11,845,000 8,355,000 894,793 18,830,000 27,200,000 23,000,000 Financed purchases - - - 1,700,000 - 75,622 (1,675,000) - 100,674 - Right-to-use leases - - - - - - - - - 318,698 Payment to refund bond escrow agent - - (28,097,931) (7,789,058) - - 33,908 (8,595,000) (7,105,226) - Transfer in 9,598,187 9,257,105 9,711,565 9,137,082 9,805,859 9,682,182 11,412,228 7,388,801 10,180,045 9,865,902Transfer out (4,571,226) (4,484,282) (4,847,771) (6,384,490) (6,295,989) (6,639,012) (8,554,069) (4,554,357) (7,481,221) (5,314,683)Proceeds from sale of capital assets 23,288 21,258 19,585 24,148 43,897 85,327 38,631 37,476 38,015 57,148Total other financing sources 10,465,320 15,821,960 12,802,581 6,577,292 16,353,992 12,537,505 13,380,491 24,871,524 36,154,059 30,704,676 NET CHANGE IN FUND BALANCES 7,581,052$ 10,636,864$ 10,485,499$ (3,075,322)$ 10,977,782$ 577,584$ 9,496,249$ 18,529,258$ 35,562,361$ (12,844,229)$ Debt service as a percentageof noncapital expenditures 13.4% 13.2% 13.6% 12.7% 12.5% 12.1% 12.1% 11.9% 11.6% 11.8%Source: City of Allen Annual Comprehensive Financial ReportsFiscal Year Ended September 30
City of Allen, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 123 Fiscal Year Ended September 30, Real Property Personal PropertyLess: Tax-Exempt PropertyTotal Taxable Assessed ValueTotal Direct Tax Rate2013 7,810,983,131$ 833,800,673$ 643,485,592$ 8,001,298,212$ 0.55200 2014 8,197,352,931 789,414,854 613,723,945 8,373,043,840 0.55000 2015 9,347,795,862 885,946,440 1,071,401,599 9,162,340,703 0.54000 2016 10,892,510,607 949,453,680 1,665,547,504 10,176,416,783 0.53000 2017 12,247,829,044 1,019,719,862 1,799,062,766 11,468,486,140 0.52000 2018 13,546,087,428 1,031,270,509 1,878,212,643 12,699,145,294 0.51000 2019 14,696,634,742 1,158,167,450 1,903,666,393 13,951,135,799 0.49800 2020 15,295,656,455 1,233,701,862 2,005,309,071 14,524,049,246 0.48900 2021 15,713,691,463 1,149,504,775 1,960,955,511 14,902,240,727 0.48500 2022 16,684,318,807 1,139,418,829 2,036,419,680 15,787,317,956 0.47000 Sources:Collin Central Appraisal DistrictEstimated Market Value
City of Allen, Texas Table 6 Direct and Overlapping Property Tax Rates (Per $100 Of Assessed Value) Last Ten Fiscal Years (Unaudited) 124 Fiscal Year Ended September 30Fiscal Year Ended September 30,Operating/General RateGeneral Obligation Debt Service Total DirectAllen Independent School DistrictPlano Independent School DistrictMcKinney Independent School DistrictLove Joy Independent School DistrictCollin CountyCollin County Community College District2013 0.40506 0.14694 0.55200 1.67000 1.37340 1.54000 1.53500 0.24000 0.08630 2014 0.40912 0.14088 0.55000 1.67000 1.45300 1.67000 1.53500 0.23750 0.08364 2015 0.39836 0.14164 0.54000 1.64000 1.44800 1.67000 1.56000 0.23500 0.08196 2016 0.40627 0.12373 0.53000 1.61000 1.43900 1.67000 1.56000 0.22500 0.08196 2017 0.39627 0.12373 0.52000 1.59000 1.43900 1.62000 1.67000 0.20840 0.08122 2018 0.39274 0.11726 0.51000 1.57000 1.43900 1.62000 1.67000 0.19225 0.07981 2019 0.39346 0.10454 0.49800 1.55000 1.43900 1.59000 1.67000 0.18079 0.08122 2020 0.38704 0.10196 0.48900 1.45890 1.33735 1.48835 1.56835 0.17495 0.08122 2021 0.39052 0.09448 0.48500 1.43250 1.32375 1.47470 1.55470 0.17253 0.08122 2022 0.36876 0.10124 0.47000 1.40680 1.32075 1.37670 1.50500 0.16809 0.08122 Source: Collin Central Appraisal DistrictCity Direct Rates Overlapping Rates
City of Allen, Texas Table 7 Principal Property Taxpayers Current Year and Nine Years Ago (Unaudited) 125 TaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValueaTaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValuebVAA Improvements LLC 153,294,617$ 0.97% Village At Allen LP 136,534,873$ 1.71%Watters Creek Owner LLC 131,870,671 0.84% AT&T Mobility LLC 125,277,718 1.57%Allen Premium Outlets LP 119,612,244 0.76% Coventry II DDR/Trademark Montgomery Farm 102,296,075 1.28%Cisco Systems Inc 90,250,000 0.57% Cisco Systems Inc 97,751,725 1.22%AT&T Mobility LLC 75,561,432 0.48% Chelsea Allen Development LP 76,572,529 0.96%DD Andrews Parkway 10.495 LLC 69,122,132 0.44% AT&T Services Inc 61,703,650 0.77%Creekside Acquisition LP 68,054,884 0.43% Allen Station Apartments LLC 37,854,673 0.47%C1-Allen LLC 64,902,702 0.41% EMC Corporation 36,780,077 0.46%Benton Pointe LP 63,423,505 0.40% Oncor Electric Delivery Company 34,789,545 0.43%Settler's Gate Apartments LP 63,000,000 0.40% BH Benton Pointe Apartments LLC 33,710,538 0.42%Total 899,092,187$ 5.70% Total 743,271,403$ 9.30%Total Assessed Valuation 15,787,317,956$ 100.00% Total Assessed Valuation 8,001,298,212$ 100.00%Source: Collin Central Appraisal DistrictNotes: aTaxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year. bTaxpayers are assessed on January 1, 2012 (2012 tax year) for the 2013 fiscal year.20222013
City of Allen, Texas Table 8 Ad Valorem Tax Levies and Collections Last Ten Fiscal Years (Unaudited) 126 Fiscal Year Ended September 30,Total Tax Lev y for Fiscal Year AmountPercentage of LevyCollections in Subsequent Years AmountPercentage of Levy2013 44,390,125$ 44,005,302$ 99.13 % 366,464$ 44,371,766$ 99.96 2014 46,466,114 45,924,321 98.83 % 527,912 46,452,233 99.97 2015 49,958,933 49,472,535 99.03 % 474,539 49,947,073 99.98 2016 54,342,759 53,821,573 99.04 % 512,309 54,333,882 99.98 2017 58,617,868 58,282,589 99.43 % 335,279 58,617,868 100.00 2018 63,184,129 62,950,713 99.63 % 212,586 63,163,300 99.97 2019 67,684,728 67,511,154 99.74 % 99,248 67,610,402 99.89 2020 70,617,878 70,550,256 99.90 % (167,583) 70,382,673 99.67 2021 71,909,214 71,715,864 99.73 % 144,449 71,860,313 99.93 2022 73,930,484 73,746,318 99.75 %- 73,746,318 99.75 Source: Collin County Tax AssessorCollected within the Fiscal Year of the Levy Total Collections to Date
City of Allen, Texas Table 9 Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 127 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax NotesOther ObligationsWater and Sewer Revenue BondsOther ObligationsTotal Primary GovernmentPercentage of Personal IncomeaPer Capitaa2013 96,735,000$ 800,000$ -$ 2,433,439$ 9,370,000$ 456,061$ 109,794,500 3.10% 1,204 2014 99,245,000 530,000 - 4,615,649 8,015,000 691,493 113,097,142 2.87% 1,213 2015 95,690,000 490,000 - 7,258,749 6,735,000 596,700 110,770,449 2.90% 1,171 2016 93,920,844 450,000 1,940,000 1,700,000 5,760,000 448,387 104,219,231 2.60% 1,044 2017 96,184,995 405,000 1,255,000 1,250,000 4,760,000 282,326 104,137,321 2.21% 1,015 2018 94,460,400 - 635,000 864,245 13,850,800 719,391 110,529,836 2.35% 1,032 2019 91,466,739 - 2,600,000 75,991 16,637,388 569,182 111,349,300 2.28% 1,016 2020 98,980,840 - 4,920,000 46,005 21,581,071 423,155 125,951,071 2.58% 1,149 2021 92,079,808 28,278,061 3,917,980 102,538 32,435,106 332,535 157,146,128 3.26% 1,452 2022 104,656,037 26,338,466 2,379,838 1,020,867 30,469,408 279,154 165,143,770 3.14% 1,515 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) 128 Fiscal Year Ended September 30,General Obligation BondsCertificates of Obligation Tax Notes TotalPercentage of Actual Taxable Value of PropertyaPer Capitab2013 96,735,000$ 800,000$ -$ 97,535,000$ 1.22% 1,087 2014 99,245,000 530,000 - 99,775,000 1.19% 1,095 2015 95,690,000 490,000 - 96,180,000 1.05% 1,031 2016 93,920,844 450,000 - 94,370,844 0.93% 998 2017 96,184,995 405,000 1,255,000 97,844,995 0.85% 980 2018 94,460,400 - 635,000 95,095,400 0.75% 927 2019 91,466,739 - 2,600,000 94,066,739 0.67% 878 2020 98,980,840 - 4,920,000 103,900,840 0.72% 948 2021 92,079,808 28,278,061 3,917,980 124,275,849 0.83% 1,149 2022 104,656,037 26,338,466 2,379,838 133,374,341 0.84% 1,223 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, 2022 (Unaudited) 129 Debt OutstandingEstimated Percentage Applicable (a)Estimated Share of Direct and Overlapping DebtDebt repaid with property taxes:Allen I.S.D. 677,381,321$ 85.82% 581,328,649$ Plano I.S.D. 492,195,000 0.84% 4,134,438 McKinney I.S.D. 533,850,000 0.06% 320,310 Lovejoy I.S.D. 146,105,000 9.68% 14,142,964 Collin County543,645,000 9.17% 49,852,247 Collin College498,565,000 9.17% 45,718,411 Subtotal, overlapping debt695,497,018$ City of Allen direct debt outstanding134,395,208 100.00% 134,395,208 Total Direct and Overlapping Debt829,892,226$ 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) 130 Fiscal Year Ended September 30,Total RevenuesaLess: Operating ExpensesbNet Available RevenueAnnual RequirementcTimes Coverage2013 32,199,528$ 23,061,918$ 9,137,610$ 1,588,049$ 5.75 2014 30,887,999 23,754,848 7,133,151 1,585,519 4.50 2015 36,275,063 26,397,770 9,877,293 1,513,860 6.52 2016 36,509,983 29,287,984 7,221,999 1,173,576 6.15 2017 37,609,746 33,023,729 4,586,017 1,169,082 3.92 2018 42,629,369 34,843,950 7,785,419 1,181,675 6.59 2019 44,571,666 38,156,431 6,415,235 1,501,610 4.27 2020 50,750,704 39,026,679 11,724,025 1,501,611 7.81 2021 49,805,566 39,647,944 10,157,622 1,874,030 5.42 2022 56,776,891 40,235,647 16,541,244 2,595,735 6.37 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) 131 Fiscal Year Ended September 30,Estimated PopulationaPersonal Income Per Capita Personal IncomebSchool EnrollmentcUnemployment Rated2013 89,705 3,709,032,635$ 41,347 20,295 5.2%2014 91,157 3,542,543,334 38,862 20,503 4.4%2015 93,261 3,940,277,250 42,250 20,755 3.2%2016 94,576 3,823,896,832 40,432 20,973 3.6%2017 99,852 4,007,759,724 40,137 21,054 3.1%2018 102,632 4,715,221,976 45,943 21,567 3.2%2019 107,151 4,694,285,310 43,810 21,791 2.8%2020 109,591 4,876,032,363 44,493 21,538 6.2%2021 108,207e4,814,454,051 44,493 21,390 3.6%2022 109,039 5,267,128,895 48,305 21,808 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.eThe reduction in population from prior years is due to inaccurate estimates used between the 2010 and 2020 decennial censuses.
City of Allen, Texas Table 14 Principal Employers Current Year and Nine Years Ago (Unaudited) 132 EmployerTotal EmployeesPercentage of Total City Employment EmployerTotal EmployeesPercentage of Total City EmploymentAllen Independent School District 2,779 7.73% Allen Independent School District 2,299 8.28%Experian Information Solutions 817 2.27% Experian 784 2.82%City of Allen 858 2.39% City of Allen 746 2.69%Jack Henry & Associates 662 1.84% Frontier Communications 700 2.52%GC Packaging LLC 600 1.67% Presbyterian Hospital 670 2.41%Texas Health Presbyterian Hospital 425 1.18% PFSweb 450 1.62%Netscout 420 1.17% Andrew Distributing 450 1.62%Crawford and Company 365 1.01% Jack Henry & Associates 422 1.52%Motorola Solutions 351 0.98% Cabela's 260 0.94%Andrew's Distributing 328 0.91% Graphic Converting 215 0.77%Total 7,605 21.14% Total 6,996 25.21%Total Allen Daytime Employees 35,974 Total Allen Daytime Employees 27,756Source: Top ten employers and employee count provided by Allen Fairview Chamber of Commerce and Allen Economic Development Corporation.20222013
City of Allen, Texas Table 15 Full–Time Equivalent City Government Employees by Function & Program Last Ten Fiscal Years (Unaudited) 133 Function/Program2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General Government and Administration 62.00 64.00 67.00 70.50 72.50 75.50 77.00 80.48 82.48 84.73 Public Safety 284.50 286.00 295.00 299.00 299.00 305.00 316.00 319.00 320.00 326.00 Public Works 53.00 54.50 55.50 59.00 59.00 60.50 62.50 63.50 63.50 62.50 Culture and Recreational 214.50 212.27 215.71 221.31 221.31 226.32 228.32 227.82 223.32 223.32 Water and Sewer 66.50 68.00 69.00 70.00 74.00 76.50 79.00 80.00 80.00 83.00 Golf Course 32.54 32.54 33.64 33.64 33.64 33.64 33.64 32.14 32.14 32.14 Community Development 26.00 27.00 27.50 28.50 27.50 30.50 32.00 32.00 34.00 35.00 Risk Management 3.00 4.00 4.00 4.00 4.00 4.00 3.50 3.50 4.50 4.50 Economic Development 4.25 6.25 7.00 7.00 7.00 7.00 7.50 7.50 7.50 7.50 Total 746.29 754.56 774.35 792.95 797.95 818.96 839.46 845.94 847.44 858.69 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) 134 Function/Program2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Public Safety Police Number of Employees 174 175 183 185 185 189 199 201 202 204 Number of Violations (Citations) 13,902 19,943 14,000 13,645 18,778 17,025 21,060 8,774 10,715 11,721 Fire Number of Employees 110 111 112 114 114 116 117 118 122 122 Number of Fire/Other runs 1,377 1,541 1,622 1,822 1,886 1,896 1,899 1,912 2,490 2,406 Number of EMS runs 3,613 3,703 3,812 4,162 4,210 4,667 4,898 4,725 5,753 6,251Development Services Streets paved (miles) 141556228726 Building Permits Issueda6,013 9,538 7,549 7,022 7,116 7,126 9,414 6,440 6,104 5,531Cultural and Recreational Parks and Recreation Park maintained & operated per acre 3,827$ 4,022$ 4,083$ 4,092$ 4,668$ 4,675$ 3,679$ 3,667$ 3,771$ 3,988$ Participants in Leisure Service Programs 666,452 646,719 568,503 638,367 911,064 955,441 1,002,717 528,935 595,869 791,359 Rounds of Golfc33,615 45,546 39,723 44,478 47,010 44,163 49,293 54,556 66,518 70,597 Library Volumes in Collectionb124,226 128,501 132,380 138,041 141,774 139,605 146,699 143,103 142,324 143,495Water and Sewer Number of Water Consumers 28,669 29,124 29,750 30,332 30,920 31,391 31,922 32,334 33,109 33,385 Average Daily Water Consumption (gallons) 14,479,000 11,863,621 13,284,000 14,472,000 15,107,156 15,926,000 15,454,057 15,710,457 16,143,000 15,296,000 Maximum Storage Capacity (million of gallons) 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33 33.0 33.0Sanitation Recyclables Collected (tons) 9,667 9,920 10,015 10,108 10,578 10,723 10,073 10,343 9,838 10,340 Solid Waste Collected (tons) 53,445 55,142 59,591 62,009 63,712 66,333 65,242 66,515 66,773 66,288Source:City of Allen DepartmentsNotes:aIncludes residential, commercial, and miscellaneous permits (e.g. for pools, fences, and roof repairs).bIncludes books and media.c The Golf Course was closed for renovations during fiscal 2012 and was re-opened in January 2013.Fiscal Year Ended September 30
City of Allen, Texas Table 17 Capital Assets Statistics by Function & Program Last Ten Fiscal Years (Unaudited) 135 Function/Program2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Public Safety Police Stations 1111111111 Police Patrol Units 27272728313131314453 Fire Stations 5555555555 Police Motorcycle Units 4444444444Development Services Streets-Paved (miles) 326 330 331 336 341 347 349 351 438 377 Alleys-Paved (miles) 163 165 166 167 168 169 169 169 180 178Cultural and Recreational Parks (acres) 597 599 599 607 614 689 691 691 691 710 Playgrounds 32323232323232323131 Swimming Pools (outdoor) 1111111111 Recreation Centers 1111111111 Senior Center 1111111111 Tennis Courts 5555555555 Natatorium 1111111111 Visitor (Youth) Center 1111111111 Golf Course 1111111111 Event Center 1111111111Water and Sewer Water Mains (miles) 467 471 474 481 494 506 515 524 524 502 Fire Hydrants 4,210 4,329 4,398 4,560 4,675 4,982 4,934 5,316 5,359 5,409 Sanitary Sewers (miles) 352 354 356 361 370 379 386 393 393 372 Storm Sewer Lines (miles) 108 109 110 112 117 123 129 136 224 226Source: City Of Allen DepartmentsFiscal Year Ended September 30