Allen, Texas

284 Pages·2010·3.43 MB·English

by  C Landrum

ANNUAL BUDGET
2010‐2011
Allen, Texas
Service Center
This service center is a part of the 2007‐2013
Capital Improvement Program and will support
street, drainage, traffic, water, sewer, parks
and recreation operations, solid waste and
recycling services, engineering inspection, fleet
maintenance and storage. This facility has
been designed to accommodate material
warehousing, centralized fleet maintenance
(including vehicle washing and fueling) and
administrative functions. A public safety
training facility, consisting of classroom space
and a driving track, has also been included in
this project. Construction was completed in
September of 2010.
Find out more about Allen, Texas at www.cityofallen.organd www.allentx.com.
CITY OF ALLEN, TEXAS
ANNUAL BUDGET
FISCAL YEAR 2010 – 2011

Approved by the City Council
September 14, 2010

Councilmembers

Mayor Stephen Terrell
Mayor Pro Tem Debbie Stout
Councilmember, Place No. 2 Ross Obermeyer
Councilmember, Place No. 3 Joey Herald
Councilmember, Place No. 4 Robin L. Sedlacek
Councilmember, Place No. 5 Gary L. Caplinger
Councilmember, Place No. 6 Jeff McGregor

Management Staff

City Manager Peter H. Vargas
Finance Director Kevin Hammeke
Assistant Finance Director Joanne Stoehr
Budget Manager Trish Featherston
C I T Y O F A L L E N

Our Mission

To achieve excellence in managing development of the
community and in providing city services so that conditions of living and
public confidence are continually enhanced.

Our Pledge
to fulfill our mission in a way that:

RESPECTS AND VALUES CITIZENS AND EMPLOYEES § NURTURES
COMMUNITY INVOLVEMENT § DEMONSTRATES THE HIGHEST ETHICAL
STANDARDS § IMPROVES EFFECTIVE COMMUNICATIONS § MODELS
SAFETY § EXEMPLIFIES PROFESSIONALISM § PROMOTES TEAMWORK §
DEMONSTRATES STEWARDSHIP § REWARDS MERITORIOUS PERFORMANCE
§ MAXIMIZES THE USE OF TECHNOLOGY § ENCOURAGES FLEXIBILITY,
INNOVATION AND CREATIVITY § UTILIZES EFFECTIVE PLANNING §
PROVIDES OPPORTUNITIES FOR PERSONAL AND PROFESSIONAL GROWTH
FOR ALL PERSONNEL § AND ASSIGNS APPROPRIATE RESPONSIBILITY AND
ACCOUNTABILITY.

TABLE OF CONTENTS
BUDGET OVERVIEW
Letter from City Manager ............................................................................................... 1
Fund Structure ............................................................................................................... 9
Budget Process – Basis, Process, and Amendments ................................................. 13
Budget Calendar .......................................................................................................... 15
Budget Process – Strategic Plan and Capital Budget ................................................. 16
Strategic Plan .............................................................................................................. 17
Financial Policies and Practices .................................................................................. 25
Economic Outlook ....................................................................................................... 30
Revenue Summary ...................................................................................................... 31
Combined Budget Summaries .................................................................................... 36
Organizational Chart .................................................................................................... 41
Staffing Summary ........................................................................................................ 42

GENERAL FUND
OVERVIEW
Revenue and Expenditure Summary ........................................................................ 43
Revenue and Expenditures by Function Charts ......................................................... 45
Revenues ................................................................................................................... 46
Tax Structure .............................................................................................................. 48
Budget Assumptions ................................................................................................... 49
Expenditures by Function ........................................................................................... 50
Expenditures by Classification ................................................................................... 51

GENERAL FUND DEPARTMENTS
Allen Event Center ...................................................................................................... 53
Building and Code Compliance .................................................................................. 57
City Administration ...................................................................................................... 61
City Secretary ............................................................................................................. 65
Community Services ................................................................................................... 67
Engineering ................................................................................................................ 79
Finance ....................................................................................................................... 83
Fire ............................................................................................................................. 87
Human Resources ...................................................................................................... 91
Information Technology .............................................................................................. 95
Internal Services ......................................................................................................... 99
Library ....................................................................................................................... 103
Municipal Court ......................................................................................................... 107
Parks and Recreation ............................................................................................... 111
Planning and Development ..................................................................................... 121
Police ........................................................................................................................ 125
Public and Media Relations Office ........................................................................... 131
The Village at Allen ................................................................................................... 135
TABLE OF CONTENTS continued…

DEBT SERVICE FUND
Debt Policy and Fund Balance Summary ................................................................. 139
Debt Service Requirements .................................................................................... 140

TAX INCREMENT FINANCING FUND
Revenue and Expenditure Summary ....................................................................... 145
Tax Increment Financing .......................................................................................... 146

WATER AND SEWER FUND
Revenue and Expense Summary ............................................................................. 149
Revenue and Expenses by Function Charts ............................................................ 150
Revenue Detail ......................................................................................................... 151
Expenses by Classification ....................................................................................... 152
Water and Sewer ..................................................................................................... 153
Utility Collections ...................................................................................................... 158

OTHER FUNDS
Solid Waste Fund ..................................................................................................... 161
Drainage Fund .......................................................................................................... 167
Golf Course .............................................................................................................. 173
Asset Forfeiture ........................................................................................................ 179
Hotel Occupancy Tax Fund ..................................................................................... 183
Grants and Special Revenue ................................................................................... 189
Replacement Fund ................................................................................................... 195
Risk Management Fund ........................................................................................... 199
Economic Development Corporation........................................................................ 205
Community Development Corporation ..................................................................... 211

CAPITAL PROJECTS
Locator Map .............................................................................................................. 217
Major Projects - Highlights ....................................................................................... 218
Relationship between Operating and Capital Budgets ............................................ 220
Capital Projects Funding Summary .......................................................................... 222
Debt .......................................................................................................................... 225

APPENDIX
Budget and Tax Ordinances ..................................................................................... 229
Debt Management and Fund Balance Reserve Policy ............................................ 234
Demographics .......................................................................................................... 239
Departmental Performance Measures ..................................................................... 247
Glossary .................................................................................................................... 291
October 1, 2010

Mayor Steve Terrell
Members of the City Council
City of Allen
Allen, Texas

Mayor Steve Terrell and Members of the City Council:

I am pleased to present the 2010-2011 City of Allen Annual Budget for Municipal Services. This
budget represents the expected revenues and planned expenditures for the City’s fiscal year from
October 1, 2010, to September 30, 2011. It has been prepared in conformance with the
requirements of Article IV of the City Charter, City financial policies, and State law. The public
hearings on the proposed 2010-2011 budget and tax rate were held on August 10, 2010, and
August 24, 2010. The budget and tax rate were adopted on September 14, 2010.

The recommended budget for fiscal year 2011 is a conservative budget that “holds the line” for
existing City services and allows for the City to assume management of the Allen Event Center.
This budget maintains the City’s fiscal strength and enables City Staff to focus on providing high
quality City services. By focusing on the services we currently offer and the staff we currently
employ, the City will be able to continue to effectively implement the City Council’s strategic
vision for Allen during a time when cities across the state are freezing or reducing programs and
services. This budget is designed to meet the existing and emerging needs of our vibrant and
growing community.

The 2011 fiscal year total combined budget revenue plus beginning fund balance equals
$197,067,057 and total budgetary expenditures are estimated at $157,339,417. Balancing the
needs of the community with available financial resources presents an annual challenge in the
development of the budget. The 2010-2011 budget reflects the efforts of the Governing Body
and City staff to address the need to provide services and facilities to our citizens while
maintaining a strong financial position during a period of economic uncertainty. This budget
represents the overall plan for accomplishing our goals and objectives for the 2011 fiscal year.

Strategic Planning

On January 30, 2010, the City Council articulated eight goals for the City of Allen. The goals set
by the Council become the City’s Strategic Plan, a working document that sets the community’s
highest priorities and provides guidance to City Staff when making budgetary determinations.
The Strategic Plan allows City staff to properly align the City’s valuable resources with the
community’s priorities, a vital step in accomplishing the City’s goals. The City’s vision, as
articulated by the goals developed within the Strategic Plan, is listed on the following page.

305 CENTURY PARKWAY • ALLEN, TX 75013-8042 • 214-509-4100
WEB: www.cityofallen.org • EMAIL: [email protected]
Strategic Goals for the City of Allen, Fiscal Year 2011 
Goal 1     Enhance community livability and safety. 
Goal 2     Cultivate regional alliances and partnerships with agencies and governmental units 
that affect Allen. 
Goal 3     Improve regional mobility through transportation initiatives. 
Goal 4     Signify, enhance, and communicate Allen’s identity to the region and the nation. 
Goal 5     Systematically invest in public infrastructure. 
Goal 6     Maintain operational excellence in City government services. 
Goal 7     Provide economic investment that increases employment opportunity, the tax 
base, and provides desired goods and services for residents and contributes to the 
community character and identity. 
Goal 8      Proactively work to protect, conserve and manage water resources. 

Property Values

According to the Central Appraisal District, the final total assessed property value for 2010-2011
equals $7.39 billion, which equates to an overall increase of approximately $72 million (0.99%)
from the previous year. Assessed property values have increased 29.20% over the past five years,
as illustrated in the following graph, and reflect the significant growth we have experienced.

Assessed Property Valuation (in Billions)
7.02 7.32 7.39
6.45
5.72
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011

Tax Rate

The adopted budget reduces the City’s tax rate for the eighteenth consecutive year. The tax rate
of $0.554 continues the City’s commitment to providing high quality services. The City
continues to prepare for its future obligations and adheres to the City’s long-term financial plan.
Of the total tax rate, $0.409082 is dedicated to operations and maintenance (O&M) in the
General Fund, and $0.144918 is dedicated to general obligation debt service. The portion of the
tax rate dedicated to debt service is 26.16% of the overall tax rate. This rate is consistent with the
City’s policy to maintain the debt service portion below 40%.
City of Allen 2 FY 2011 Budget
History of Tax Rate
0.558 0.557 0.556 0.555 0.554
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011
Debt Service Rate O&M Rate Total Tax Rate

The average single family home value is currently $218,575, an increase of $48 (0.02%) from
the previous year. At the property tax rate of $0.554, the municipal tax paid on the average single
family home will be $1,210.

Home Value  2010 Property Tax ($0.554) 
$100,000   $554  
$218,575 (2010 avg.)  $1,210 
$218,527 (2009 avg.)  $1,213 
$217,600 (2008 avg.)  $1,210 
$210,600 (2007 avg.)  $1,173 
$198,000 (2006 avg.)  $1,105 

Debt Service

A portion of the City’s property tax rate is assigned to the debt service fund to pay for the
General Obligation (G.O.) Bonds and Certificates of Obligation that have been issued for the
acquisition of public land or construction of public infrastructure and facilities. The City Council
continues to place a high priority on the strategic goal of investing in the community’s
infrastructure. This is the fourth year the City issued debt from the 2007 election. In May 2010,
G.O. Bonds totaling $12.0 million were issued bringing the total outstanding debt balance to
$110.235 million. The debt service payments on this outstanding balance will be $11.677 million
in fiscal year 2011.

Programs and Staffing Levels

The budget continues the City’s mission of providing high quality services to the community,
enhancing living conditions and public confidence without reducing current service levels or
creating new services.

With the addition of the Allen Event Center, the City currently supports a staff of 706.70 full-
time equivalent employees allocated among the operating departments. This budget recommends
City of Allen 3 FY 2011 Budget