annual budget 2015-2016 allen, texas

309 Pages·2015·10.88 MB·English

ANNUAL BUDGET
2015‐2016
Fire Station #2
Casey Bennett
ALLEN, TEXAS
Financial Analyst
In accordance with the passage of S.B. No. 656, Local Government Code, Sec. 102.007, was
amended to require that an adopted municipal budget must contain a cover page that includes the
following information:

“This budget will raise more revenue from property taxes than last
year's budget by an amount of $3,623,956, which is a 7.30 percent
increase from last year's budget. The property tax revenue to be
raised from new property added to the tax roll this year is
$1,267,372.”

The members of the governing body voted on the budget as follows:

FOR: Stephen Terrell, Mayor
Gary L. Caplinger, Mayor Pro Tem, Place 5
Kurt Kizer, Place 1
Ross Obermeyer, Place 2
Joey Herald, Place 3
Robin L. Sedlacek, Place 4
Baine Brooks, Place 6

AGAINST: None
P RESENT and not voting: None

A BSENT: None

Property Tax Rate Comparison
2015-2016 2014-2015

Property Tax Rate: $0.530000/100 $0.540000/100
Effective Tax Rate: $0.499257/100 $0.515184/100
Effective Maintenance & Operations Tax Rate: $0.368306/100 $0.383205/100
Rollback Tax Rate: $0.521497/100 $0.555500/100
Debt Rate: $0.123727/100 $0.141639/100

Total debt obligation for City of Allen secured by property taxes:
$96,180,000
CITY OF ALLEN, TEXAS
PROPOSED ANNUAL BUDGET
FISCAL YEAR 2015 – 2016

Presented to the City Council 
September 8, 2015 

Councilmembers 

Mayor            Stephen Terrell 
Mayor Pro Tem, Place No. 5      Gary L. Caplinger 
Councilmember, Place No. 1                Kurt Kizer 
Councilmember, Place No. 2      Ross Obermeyer 
Councilmember, Place No. 3      Joey Herald 
Councilmember, Place No. 4      Robin L. Sedlacek 
Councilmember, Place No. 6      Baine Brooks 

Management Staff 

City Manager          Peter H. Vargas 
Chief Financial Officer        Eric Cannon 
Assistant Chief Financial Officer     Joanne Stoehr 
Budget Officer          Chris Landrum
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
Economic Outlook ......................................................................................................... 9
Demographics……………………………………………………………………………….10
Fund Structure ............................................................................................................. 16
Budget Process – Basis, Process, and Amendments ................................................. 20
Budget Calendar .......................................................................................................... 22
Budget Process – Strategic Plan and Capital Budget ................................................. 23
Strategic Plan .............................................................................................................. 24
Financial Policies and Practices .................................................................................. 32
Revenue Summary ...................................................................................................... 37
Combined Budget Summaries .................................................................................... 42
Organizational Chart .................................................................................................... 47
Staffing Summary ........................................................................................................ 48

GENERAL FUND
OVERVIEW
Revenue and Expenditure Summary ........................................................................ 49
Revenue and Expenditures by Function Charts ......................................................... 51
Revenues ................................................................................................................... 52
Tax Structure .............................................................................................................. 54
Budget Assumptions ................................................................................................... 55
Expenditures by Function ........................................................................................... 56
Expenditures by Classification ................................................................................... 57

GENERAL FUND DEPARTMENTS
City Administration ...................................................................................................... 59
City Secretary ............................................................................................................. 65
Community Development ........................................................................................... 71
Community Services ................................................................................................... 83
Engineering .............................................................................................................. 103
Finance ..................................................................................................................... 109
Fire ........................................................................................................................... 115
Human Resources .................................................................................................... 121
Information Technology ............................................................................................ 127
Internal Services ....................................................................................................... 133
Library ....................................................................................................................... 137
Municipal Court ......................................................................................................... 147
Parks and Recreation ............................................................................................... 153
Event Center………………………………………………………………………………167
Police ........................................................................................................................ 175
Public and Media Relations Office ........................................................................... 185
TABLE OF CONTENTS continued…

DEBT SERVICE FUND
Debt Policy and Fund Balance Summary ................................................................. 191
Debt Service Requirements .................................................................................... 192

TAX INCREMENT FINANCING FUND
Revenue and Expenditure Summary ....................................................................... 197
Tax Increment Financing .......................................................................................... 198

WATER AND SEWER FUND
Revenue and Expense Summary ............................................................................. 203
Revenue and Expenses by Function Charts ............................................................ 204
Revenue Detail ......................................................................................................... 205
Expenses by Classification ....................................................................................... 206
Water and Sewer ..................................................................................................... 207
Utility Collections ...................................................................................................... 214

OTHER FUNDS
Solid Waste .............................................................................................................. 219
Drainage ................................................................................................................... 229
Golf Course .............................................................................................................. 237
Asset Forfeiture ........................................................................................................ 245
Hotel Occupancy Tax ............................................................................................... 249
Grant Fund ............................................................................................................... 257
Replacement Fund ................................................................................................... 261
Risk Management ..................................................................................................... 265
Economic Development Corporation........................................................................ 273
Community Development Corporation ..................................................................... 279

CAPITAL PROJECTS
Locator Map .............................................................................................................. 285
Major Projects - Highlights ....................................................................................... 286
Relationship between Operating and Capital Budgets ............................................ 289
Capital Projects Funding Summary .......................................................................... 291
Debt .......................................................................................................................... 295

APPENDIX
Budget and Tax Ordinances ..................................................................................... 301
Debt Management and Fund Balance Reserve Policy ............................................ 306
Glossary .................................................................................................................... 321

Strateegic Planninng
The Strategic Plan is a worrking documment that setts the commmunity’s higghest prioritiies and
proviides guidancce to City sstaff when mmaking budggetary deterrminations. The strategiic plan
allowws City stafff to properrly align thhe City’s vaaluable resoources with the commuunity’s
prioriities, a vital step in accomplishing thhe city’s goaals. The goalls for the upccoming fiscaal year,
as artticulated by the City Couuncil, are listed below.

Strategic Goals for tthe City of AAllen, Fiscal Year 2016 
Goaal 1     Enhance community livabilityy and safetyy. 
Goaal 2     Cultivvate regionaal alliances and partnerships with aggencies and ggovernmenttal 
units that affect AAllen. 
Goaal 3     Improove regionall mobility through transpportation initiatives. 
Goaal 4     Signiffy, enhance and commuunicate Allenn’s identity too the regionn and the nattion. 
Goaal 5     Systeematically invvest in publiic infrastructture. 
Goaal 6     Maintain operational excellence in city ggovernment services. 
Goaal 7     Provide economic investmennt that increaases employyment opporrtunity, the ttax 
base,, and providees desired goods and seervices for reesidents and contributess to 
the community character andd identity. 
Goaal 8      Proacctively work to protect, cconserve annd manage wwater resourrces. 

Propeerty Values
Accoording to thee Central Apppraisal Disttrict, the tottal assessed property vaalue for 20155-2016
equalls $10.18 biillion, whichh equates to an overall increase off approximattely $1.017 billion
(11.1%) from thee previous yyear. This reppresents the largest perccent increasee in propertyy value
since fiscal year 22009.

Asssessed Property Valuaation (iin Billioons)
10.18
9.16
8.37
8.00
7.02 7.322 7.39 7.60
6.45
5.72
5.16
2006 20007 2008 2009 2010 2011 22012 2013 2014 20015 2016

City of Allen 2 FY2016 Annual Budget
Tax RRate

The aadopted budgget reduces tthe city’s taxx rate to $0.5530, and conntinues the CCity’s commmitment
to prooviding highh quality services. The CCity continuees to preparee for its futuure obligatioons and
adherres to the Ciity’s long-term financiall plan. Of thhe total tax rrate, $0.4062273 is dedicated to
operaations and mmaintenancee (O&M) inn the Generral Fund, annd $0.1237227 is dedicaated to
generral obligationn debt servicce. The porttion of the taax rate dediccated to debtt service is 223.34%
of thee overall taxx rate. This raate is consisttent with thee City’s currrent policy too maintain thhe debt
servicce portion beelow 35%.
History of Taax Rate
0.553 0.552
0.55
0.544
0.53
2011‐20112 2012‐2013 2013‐2014 2014‐22015 20015‐2016
Total Tax RRate

The aaverage singgle-family hoome value inn Allen is cuurrently $280,816, an inncrease of $225,695,
or 100.07% from tthe previouss year. At a pproperty taxx rate of $0.5530, the munnicipal tax ppaid on
the avverage single family homme will be $1,488.

Homee Value  Tax raate  Prooperty Tax  
$1000,000   $0.553  $530 
$280,816 (2015 avg.) $0.553  $1,488 
$255,121 (2014 avg.) $0.554  $1,378 
$234,966 (2013 avg.) $0.555  $1,292 
$225,256 (2012 avg.) $0.5552  $1,243 
$220,809 (2011 avg.) $0.5553  $1,221 

Debt Service
A poortion of the City’s propperty tax ratte is assigneed to the debbt service fuund to pay for the
Geneeral Obligation (G.O.) BBonds and Certificates of Obligationn that have bbeen issued for the
acquiisition of puublic land or constructionn of public infrastructurre and facilities. In Mayy 2014,
the raatings on thhe City’s Geeneral Obligation debt wwere reaffirmmed at AAAA by Standaard and
Poor’’s, and were reaffirmed aat Aa1 by MMoody’s. At tthe beginninng of fiscal yyear 2016, thhe total
outstaanding debtt balance wwill be $96.18 million, and the deebt service payments oon this
outstaanding balannce will be $$12.80 millioon for the yeear.

City of Allen 3 FY2016 Annual Budget