POPULAR ANNUAL FINANCIAL REPORT
FISCAL YEAR 2020 October 1, 2019-September 30, 2020
CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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CITY MANAGER
ERIC ELLWANGER
From the City of Allen
Dear Citizens, The City of Allen is proud to present the Popular Annual Financial Report for the Fiscal Year ended September 30, 2020. The financial information contained within this report is taken from the financial statements that are a part of the City of Allen’s 2020 Comprehensive Annual Financial Report, which is prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and is audited by an independent firm of certified public accountants, Weaver & Tidwell, LLP of Dallas, TX. The comprehensive annual financial report contains additional detailed and extensive information, such as notes, statistical information, investments and debt service obligations. It may be viewed at CityofAllen.org/Accounting. The purpose of the popular report is to convey the information presented in the comprehensive report in a condensed and easily understood format. This report is intended to provide an overview of the City’s audited financial position, local taxing information and economic climate. This report represents another indication of the City of Allen’s commitment to financial transparency and accountability. If you should have any questions or concerns, please do not hesitate to contact the City of Allen Finance Department at 214.509.4626 or by email at finance@cityofallen.org.
Eric Ellwanger March 26, 2021
Allen City Council Chambers
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
9/11 Remembrance Day
TABLE OF CONTENTS 4 About Allen 6 Meet the Leaders 7 Major Projects 8 Milestones 10 Serving Our Community 12 Accolades 13 Award-Winning Reporting 14 Financial Highlights
Historic Downtown Allen
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About Allen OUR CITY
Allen is located in Collin County at the intersection of Central Expressway (US-75) and Sam Rayburn Tollway (SH-121), 25 minutes north of downtown Dallas. Allen is bordered by incorporated cities on all sides: to the north lie McKinney (the county seat) and Fairview; Plano borders Allen on the south and west, and Lucas borders Allen to the east. Allen features several important transportation connections. Central Expressway (US-75) bisects the City in a north/south direction toward downtown Dallas and I-30. Sam Rayburn Tollway (SH-121) offers a direct 30-mile route to DFW International Airport and a 10-mile route the Dallas North Tollway, home to many of the region’s largest corporate headquarters. State Highway 5 connects with Greenville Avenue in Allen and continues into the Dallas urban core. Dallas Love Field Airport is 25
Spirit Park
miles from Allen and McKinney National Airport is 9 miles away.
27.11 SQUARE MILES
POPULATION
109,591
OPERATING BUDGET OF
$226 MILLION
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
Allen Public Library
HISTORY Allen was settled in the early 1850s as a farming community and remained relatively small until 1953 when the City was officially incorporated with a Council-Manager form of government. In the 1960s, the relocation of technology companies to North Dallas and Richardson—as well as the completion of Central Expressway and Lavon Lake—dramatically increased employment and development opportunities for Allen’s citizens.
DEMOGRAPHICS
EDUCATION
home price in Allen was $334,040.
Residents in Allen are serviced by three independent school districts with the majority of students residing within Allen ISD boundaries. These districts operate independently from the City of Allen, guided by their own administrations and boards and funded by their own taxes.
CITY SERVICES
Allen Independent School District • 18 elementary schools with 10,881 students enrolled
Allen’s population growth placed it among the fastest-growing cities in the country, more than doubling every 10 years from 8,324 in 1980 to 84,246 in 2010. The city’s population reached 109,591 by the end of fiscal year 2020 and is expected to reach 123,018 by 2025. Allen’s median household income is $115,349 and per capita income is $44,493. More than 57% of adults possessing at least a bachelor’s degree - twice the national average. In 2020, the median
The City of Allen employs 846 full-time equivalent employees, including 118 in the fire department and 201 in the police department. The City boasts 1,196 acres of park land, 60 parks, seven recreation facilities, one library, five fire stations, one police headquarters and three police storefronts among many
•
3 middle schools with 3,460 students enrolled
•
1 freshman center with 1,806 students enrolled
•
1 high school with 5,391 students enrolled
other amenities.
CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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MEET THE LEADERS
Allen City Council
MAYOR
KENNETH M. FULK
ABOUT CITY COUNCIL
CITY COUNCIL MEETINGS
The Allen City Council consists
City
of the mayor and six council
held on the second and fourth
members elected citywide to
Tuesday of each month at 7
serve three-year, staggered
p.m. in the Council Chambers of
terms of office. In addition
City Hall, 305 Century Parkway.
to
and
Prior to the Council meeting,
WHAT’S ON THE AGENDA?
approving the annual budget,
a workshop is conducted at
The City Council agenda is
the
policy,
6 p.m. in the Council Conference
available at CityofAllen.org 72
enacts ordinances establishing
Room, located next to Council
hours prior to every meeting.
municipal law and regulates
Chambers.
The
zoning and development. The
meetings and workshops are
outside of City Hall in a glass
council also appoints board
open to the public and citizen
public notice case adjacent to
and commission members.
input is welcome. Citizens may
the main City Hall entrance.
strategic council
planning sets
MAYOR PRO TEM, PLACE 6
BAINE BROOKS
COUNCILMEMBER, PLACE 1
KURT KIZER
Council
meetings
City
COUNCILMEMBER, PLACE 2
speak at council meetings are
Council
CARL CLEMENCICH
on agenda and non-agenda items
by
completing
and
submitting a public meeting appearance card.
agendas
COUNCILMEMBER, PLACE 3
LAUREN DOHERTY
are
posted
COUNCILMEMBER, PLACE 4
CHRIS SCHULMEISTER
COUNCILMEMBER PLACE 5 WAS VACANT AT TIME OF PUBLICATION
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
JayRyCo announces development of “The Farm” on southeast corner of Sam Rayburn Tollway and Alma Drive City website and MyAllen mobile app redesigned
Collin College Technical Campus opens
Texas Health Allen opens major hospital expansion
New Allen Post Office breaks ground
MA JOR PROJECTS 2019-2020
Small business grant program aids with COVID hardships
One Bethany West opens in Watters Creek District
Renovations at Allen Central Fire Station and Administrative Offices completed
Heritage Park renovations completed Utility billing system receives major upgrade
CITY OF OF ALLEN ALLEN CITY POPULAR ANNUAL ANNUAL FINANCIAL FINANCIAL REPORT REPORT POPULAR
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Milestones
Allen’s newest recreation center and adjoining park will bear the name of longtime Allen Mayor Stephen Terrell. Mayor Terrell vacated office in March 2020 after 30 years on Allen City Council and 23 years as Mayor.
Stephen G. Terrell Recreation Center Rendering
>>>
CHANGE IN LEADERSHIP
>>>
March 24, 2020: Mayor Debbie Stout (L) with former mayor Stephen Terrell following her swearing-in
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
November 24, 2020: Mayor Kenneth Fulk takes the oath of office
When longtime Allen Mayor Stephen Terrell vacated office in March 2020, Allen City Council appointed Debbie Stout to the interim position. The appointment was expected to last only until the May 2 election, but was quickly extended when Texas postponed all elections to November. Mayor Kenneth Fulk was sworn in on November 24, 2020 after receiving more than 58% of the vote.
Allen welcomes two new members to its Executive team: Deputy City Manager Eric Strong (left) and Allen Parks and Recreation Director Kate Meacham.
Centers for Disease Control and Prevention
First COVID-19 case is reported in Allen on March 19, 2020. Statewide stay-at-home orders, hospital surges and economic impacts followed.
Spirit in the Sky
Allen Parks and Recreation hosts a drive-in fireworks display to help residents celebrate July 4 amidst social distancing recommendations.
Allen Community Enhancement Department supports 2020 Census
Allen Convention Allen Event Center & Visitors Bureau launches #ShopLocal campaign to support Allen businesses.
CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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2019 Holiday Parade
Adopt-a-Spot Volunteers
Drive-thru snowcones at Allen Senior Recreation Center
Blood donations at Clear the Shelters event
Serving Our Community
We’re passionate about serving the Allen community with PRIDE This means we put People First, treat others with Respect, display Integrity, Deliver proven results and Excel in our work. These five principles power everything we do, from planting trees to organizing litter clean-ups to helping seniors prepare for their U.S. citizenship exam. This was especially true in FY 2019-2020 as the global COVID-19 pandemic disrupted many typical City operations. Through innovative programs and dedicated employees, Allen proved to be a community that rises to even the most difficult of challenges.
Allen Fire Department provides Allen Police Department COVID-19 tests at nursing homes
Pop-up drive-thru event at Allen Senior Recreation Center
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Fill the Bus campaign at Allen City Hall
CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
Allen invests in Block Party trailer/mobile rec center vehicle
SERVICE BY THE NUMBERS
2019 Toys for Tots at Allen Event Center
66,762 lbs. of recyclable materials were collected on Allen Recycles Day
10,407 gifts were collected thanks to a partnership between Toys for Tots and Allen Event Center
Allen Recycles Day 2019
Allen Allen Police Public Department Library StoryWalk
Allen Fire Department distributes Stop the Bleed kits
56 animals found forever homes during the Clear the Shelters campaign, month-long adoption event at Allen Animal Shelter
24 homes received needed repairs, funded with federal grants administered by Allen Community Enhancement Department
175 miles of roadways, creeks and trails were cleared of litter by thousands of volunteers with Keep Allen Beautiful CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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Celebration Park
A+ Overall Grade
SAFEST CITY #5 in the United States for 2020
BEST REAL ESTATE MARKETS #14 in 2020
Accolades
AAA Bond Rating
8TH PLACE Population 75,000-124,999
We don’t set out to win awards, but our everyday excellence has caught the eye of some of the country’s most prestigious publications and organizations. In 20192020, we were named one of the best real estate markets by WalletHub, one of the
safest cities in the U.S. by Homes.com and the Best Place to Live in the South by Money Magazine. In Allen City Hall you’ll find trophy cases brimming with local, state and national honors earned across our departments, including our sixth consecutive Achievement of Library Excellence and the coveted Texas Best Practice Agency designation for Allen Police Department. This year we ranked 8th in our population category in the Digital Cities Survey, an annual recognition of cities using technology to tackle social challenges, enhance cyber security, improve transparency and more.
Allen EDC wins Texas Economic Development Council award
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State of Texas Alliance for Recycling volunteer award
CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
Emmy-winning productions by Allen City Television
AWARD-WINNING REPORTING Certificate of Achievement for Excellence in Financial Reporting The City has earned the Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report from the Government Finance Officers Association for the twenty-first consecutive year. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.
The
comprehensive report is compiled by the finance department and audited by an independent firm of certified public accountants. The purpose of the comprehensive report is to give a detailed overview of the City’s financial status, including various funds, investments and debt service obligations. Distinguished Budget Presentation Award The City has earned the Distinguished Budget Presentation Award from the Government Finance Officers Association for the twentyfirst consecutive year. It reflects the commitment of the City’s staff to meet the highest principles of governmental budgeting and the award represents a significant achievement. The budget presents the plan for accomplishing the City’s goals and objectives during the fiscal year. Preparation of this document requires a comparison of the anticipated revenues with adopted programs and priorities that are based on City Council’s priorities, service demands and prior year project commitments. Achievement for Excellence in Procurement The City has also earned the Achievement for Excellence in Procurement (AEP) from the National Procurement Institute for the twentieth consecutive year. The AEP is designed to recognize organizational excellence in public procurement. This prestigious award is earned by those organizations that demonstrate excellence by meeting or exceeding criteria designed to measure innovation, professionalism,
productivity,
e-procurement
and
leadership
attributes of the procurement organization.
Children’s Area at Allen Public Library CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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Watters Creek at Montgomery Farm
Financial Highlights
The City, like other state and local governments, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for specific activities or objectives. The City of Allen currently maintains eighteen individual funds, including five major funds: General Fund, Debt Service Fund, General Capital Projects Fund, General Obligation Bond Fund and Grant Fund. More information can be found in the Comprehensive Annual Financial Report on the City’s website. Changes in Net Position The Statement of Net Position presents information
on
all
the
City’s
assets,
liabilities, and deferred inflows/outflows with
the
difference
reported
as
net
position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. In total, the City’s total net position increased $18,110,556. Revenue decreased by $10,509,430 from fiscal year 2019. Major components of revenue increases and decreases can be attributed to decreases in Grants and Contributions by $9,719,185, decreases in Other Taxes by $1,967,065, decreases in Charges for Services by
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
$1,807,063, increases in Property Taxes by $2,052,257, increase in Other by $893,692, and increase Sales Tax by $37,934. Expenses increased $283,069 from fiscal year 2019 and can be attributed to increases in expenses in General Government by $3,699,026, Public Safety by $2,375,577, Community Development by
$2,075,183,
Water by
and
Sewer
$1,013876,
Waste
Solid
by $277,356, Drainage
and
by
$158,635, and offset by
decreases
Public
Works
$4,646,685, and
in by
Culture
Recreation
$4,272,013,
by
Interest
on Long-Term Debt by $234,815, and Golf Course by $166,071, respectively. Total Net Position The
assets
and
deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources
by
$628,754,097, which is the City’s net position. The of
largest the
portion
City’s
net
position, $505,723,816 or 80.43%, is in capital assets (land, buildings, infrastructure, equipment, and construction in progress), less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. A portion of the City’s net position is restricted resources of $14,404,933 or 2.29%, which are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $108,625,348 or 17.28%, may be used to meet the government’s ongoing obligations to citizens and creditors.
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The City has two funds that are not included in total net position of the primary government, both of which are considered discretely presented component units: the 4A Economic Development Corporation (EDC 4A) and the 4B Community Development Corporation (CDC 4B) Fund. The City Council appoints the EDC 4A and CDC 4B and can impose its will on their day-to-day operations. The combined fiscal year 2020 net position of EDC 4A and CDC 4B was $62,892,691, of which $40,104,301 is in capital assets, $700,778 is restricted for debt service, and $22,087,612 is unrestricted. This is an increase of $6,406,640 from last fiscal year. Capital Assets The City’s net investment in capital assets for its governmental and business-type activities at the end of fiscal year 2020 amounts to $505,723,816 (net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements other than buildings, utility system, machinery and equipment, and construction in progress. The total increase in the City’s investment in capital assets for the current year was $1,003,162, or 0.002%.
Major capital asset events during fiscal year 2020 included the following:
Long-Term Debt Obligations The City’s primary government had total outstanding bonded debt at September 30, 2020 of $125,481,911. Of this total, $103,900,840 was associated with governmental activities and $21,581,071
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
was associated with business-type activities. The total gross bonded debt includes $88,395,000 of General Obligation (G.O.) bonds backed by the full faith and credit of the City; $19,450,000 secured solely by water and sewer revenues; notes payable of $4,920,000; and $12,716,911 in net premiums and discounts from bond issuances. Outstanding debts associated with the component units totaled $36,720,305. Out of which, $34,540,000 are secured by future sales tax revenue; $1,319,975 (notes payable) are secured by land; and $860,300 are premiums and discounts from bond issuances. During fiscal year 2020, the City issued $23,385,000 of General Obligation Bonds; $4,880,000 in Waterworks and Sewer System Revenue Bonds; and $3,175,000 of Tax Notes.
Governmental Fund Balance The focus of the City’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 financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of fiscal year 2020, the City’s governmental funds reported a combined fund balance of $108,013,555, an increase of $18,529,258 or 21%. The increase is due to actual expenditures being less than the revised budget, revenues exceeding the revised budget, and the issuance of bonds. 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 $26,826,184. The total fund balance increased $883,450 or 3% during the fiscal year due to reductions in general government expenditures and revenues exceeding the revised budget. The Debt Service Fund balance of $1,858,730, all of which is restricted for the payment of debt, represents an increase from the prior year of $145,410 or 8%. Higher property valuations and increased investment income outweighed the City’s annual debt service requirements. CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
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The General Capital Projects Fund provides information on cash financed capital projects and had an ending fund balance of $34,703,970 at September 30, 2020, an increase of $2,679,286. Revenues and other financing sources totaled $5,688,046, which includes $1.5M received from Allen Sports Association for S. G. Terrell Community P&R Center, $736,251 in roadway impact fees for street improvements, $2,061,121 from other funds to cash finance capital projects, $436,888 received from HHSC for reimbursement of Fire Department ambulances service, and $426,893 in charges for median and streets improvements. Total expenditures and other uses of $3,008,760 consisted primarily of $354,453 for Cricket Field at Spirit Park, $914,728 for street and alleys improvements, $249,731 for Central Fire Station remodel and $291,845 for Public Safety hardware and software. The General Obligation Bond Fund had an ending fund balance of $31,887,306, which represents an increase of $13,696,884 or 75% from the prior year. Expenditures totaled $8,718,082, which consisted mainly of $3,856,019 for Central Fire Station remodel, $2,109,629 for S. G. Terrell Community P&R Center, $690,000 for street and alleys improvements, and $378,164 for storm sirens. Other financing sources consisted mainly of issuance of bonds totaling $18,830,000 and the related premium of $3,077,585. The Grants Fund accounts for monies received from other governmental agencies that have restricted legal requirements and multi-year “Perpetual Flux” at Allen Event Center
budgets and had an ending fund balance of $281,538, an increase of $17,809 or 7% from the prior year. In fiscal year 2020, the Grants Fund received $4,468,747 in advanced funding from the CARES Act related to the COVID-19 pandemic. CARES Act expenditures of $1,416,965 plus a refund to Collin county of $1,545,319 were recognized as revenue in fiscal year 2020 and the remaining balance of $1,506,463 is recorded as unearned revenue. The fund balance of non-major governmental funds increased by $1,106,419 primarily due to actual expenditures being less than the revised budget. General Fund Budgetary Highlights During April and May each year, all accounts are evaluated to determine whether they are in line with
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CITY OF ALLEN POPULAR ANNUAL FINANCIAL REPORT
Central Fire Station Renovations
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, 2020, the City Council amended the budget for the General Fund one time. Adjustments made during fiscal year 2020 decreased the original revenue budget by $7,678,155 and decreased the expenditure budget by $6,706,137. Due to actual expenditures being $1,311,896 less than the revised budget and revenues exceeding the revised budget by $1,700,790, the City was able to transfer $1,761,121 to the General Capital Projects Fund to cash finance future capital projects and transfer $900,000 to the Vehicle Replacement Fund for vehicle purchases. The General Fund’s unrestricted operational expenditure in reserve increased to 95 days from the amended budget of 92 days, which is well above the City’s financial policy to maintain an operational expenditure reserve of 60- to 90-days.
One Bethany West construction
Caboose at Allen Heritage Center
Glendover Park renovations
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305 CENTURY PARKWAY ALLEN, TX 75013 CITYOFALLEN.ORG
