HOMEWOOD-FLOSSMOOR PARK DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED APRIL 30, 2015

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2 HOMEWOOD-FLOSSMOOR PARK DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED APRIL 30, 2015 Prepared by the Business Department Renae Ross Superintendent of Finance and Administration

3 Table of Contents PAGE INTRODUCTORY SECTION Principal Officials Organization Chart Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Facility Locations Park District Map i ii iii-vi vii viii ix FINANCIAL SECTION EXHIBIT INDEPENDENT AUDITOR S REPORT 1-3 MANAGEMENT S DISCUSSION AND ANALYSIS 4-10 BASIC FINANCIAL STATEMENTS District-Wide Financial Statements Statement of Net Position A Statement of Activities A Fund Financial Statements Balance Sheet Governmental Funds A Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position A-4 17 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds A Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities A-6 20 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund A-7 21 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Recreation Fund A-8 22

4 Table of Contents PAGE FINANCIAL SECTION (CONT.) EXHIBIT BASIC FINANCIAL STATEMENTS (CONT.) Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Museum Fund A-9 23 Statement of Net Position Enterprise Funds A Statement of Revenues, Expenses, and Changes in Net Position Enterprise Funds A Statement of Cash Flows Enterprise Funds A Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Analysis of Funding Progress Illinois Municipal Retirement Fund B-1 50 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet C Combining Statement of Revenues, Expenditures, and Changes in Fund Balances C GENERAL FUND Schedule of Revenues Budget and Actual D-1 55 Schedule of Expenditures Budget and Actual D SPECIAL REVENUE FUNDS Recreation Fund Schedule of Revenues Swimming Pool Budget and Actual E-1 58 Schedule of Expenditures Budget and Actual E

5 Table of Contents PAGE FINANCIAL SECTION (CONT.) EXHIBIT COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONT.) GOVERNMENTAL FUND TYPES (CONT.) SPECIAL REVENUE FUNDS (CONT.) Museum Fund Schedule of Expenditures Budget and Actual E Audit Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual E-4 63 Illinois Municipal Retirement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual E-5 64 Social Security / Medicare Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual E-6 65 Special Recreation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual E-7 66 Schedule of Expenditures Budget and Actual E-8 67 DEBT SERVICE FUND Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual F-1 68 CAPITAL PROJECTS FUNDS Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual G-1 69 Schedule of Expenditures Budget and Actual G-2 70

6 Table of Contents PAGE FINANCIAL SECTION (CONT.) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONT.) EXHIBIT GOVERNMENTAL FUND TYPES (CONT.) CAPITAL PROJECTS FUNDS (CONT.) Iron Oaks Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual G-3 71 PROPRIETARY FUND TYPES ENTERPRISE FUNDS Racquet Club Fund Supplemental Schedule Schedule of Operating Expenses - Budget and Actual H Artificial Ice Skating Rink Fund Supplemental Schedule Schedule of Operating Expenses - Budget and Actual H Golf Course Fund Supplemental Schedule Schedule of Operating Expenses - Budget and Actual H LONG-TERM DEBT REQUIREMENTS General Obligation Refunding Bond Series 2009 (Refunded Bond Series 1998) 1 78 Golf Course, Racquet Club and Ice Arena General Obligation Refunding Park Bonds (Alternate Revenue Source), Series 2011B Refunded Bond Series 2003A and 2005A 2 79 General Obligation Park Bonds (Limited Tax Park Bonds), Series 2013A 3 80 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2013B 4 81 General Obligation Park Bonds (Limited Tax Park Bonds), Series 2014A 5 82 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2014B 6 83

7 Table of Contents PAGE STATISTICAL SECTION TABLE Financial Trends Net Position by Component I Changes in Net Position II Fund Balances of Governmental Funds III Changes in Fund Balances of Governmental Funds IV Revenue Capacity Property Value, Construction, and Bank Deposits V 94 Assessed and Estimated Actual Value of Taxable Property VI Property Tax Rates - Direct and Overlapping Governments VII Principal Taxpayers VIII Property Tax Levies and Collections IX 101 Debt Capacity Outstanding Debt by Type X Schedule of Direct and Overlapping Bonded Debt XI 104 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita XII Demographic and Economic Information Demographic and Economic Statistics XIII 107 District Employers XIV Operating Information Full-Time Equivalent Employers XV Operating Indicators XVI Capital Asset Statistics and Function/Program XVII Surety Bond of Principal Officials XVIII 116

8 INTRODUCTORY SECTION

9 Principal Officials April 30, 2015 PRESIDENT Robert Haderlein VICE PRESIDENT Steve Johnson COMMISSIONERS Dallas Collins Susan Bertram Patrick Nevins EXECUTIVE DIRECTOR TREASURER SECRETARY Deborah Kopas Howard Blumstein Deborah Kopas ATTORNEY FOR THE DISTRICT Matthew N. Lulich i

10 Homewood-Flossmoor Park District Chain of Command Electorate Attorney Board of Park Commissioners Secretary Treasurer Executive Director Executive Secretary Superintendent of Recreation Superintendent of Parks & Planning Superintendent of Finance & Administration and Safety Coordinator Golf Course Superintendent and Golf Course Pro/Manager H-F Racquet & Fitness Club Manager Irons Oaks Environmental Learning Center Manager Administrative Assistant Ice Arena Manager Recreation Programming Buildings Accounting Operations Tennis Environmental Goldberg Center Office Mgmt Hockey Irwin Center Grounds IT Course Mgmt Fitness Adventure Training Figure Skating Facilities & Rentals Vehicles & Equipment Risk Management Restaurant Mgmt Pool Rentals Splash Pad Pro Shop Marketing Aquatics HR Pro Shop Office Special Projects Office ADA Office Maintenance Leisure Services Maintenance Created: June 2008 Revised: August 2009, March 2010, November 2011, February 2012, June 2012 II

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16 Homewood-Flossmoor park district viii HOMEWOOD FA C I L I T Y L O C AT I O N S FLOSSMOOR Apollo Park (31.75 acres) Morgan Street & Bowling Green Road Walking/Bike Path, Sand Volleyball Courts, Playground, Ball Fields, Football Field, Picnic Area with BBQ, Tennis Courts, Playfield & Soccer Fields Butterfield Park (26 acres) Center Avenue & Center Court Bike and Walking Paths Cedar Park (.3 acres) Highland Avenue & Cedar Road Playground Dolphin Lake Park (8.5 acres) 183rd Street & Gov s Hwy Clubhouse, Fishing and Meeting Rooms extreme Scene Skate Park (1 acre) Harwood Ave. Skateboard and In-Line Skating Area H-F Park District Auditorium 2010 Chestnut Basketball and Volleyball Courts, Theatre Stage H-F Racquet & Fitness Club 2920 W. 183rd Street Fitness Center, Tennis Courts, Racquetball and Basketball Courts, Track, Lap Pool, Pro Shop and Child Care H-F Sports Complex Aberdeen Street Basketball and Volleyball Courts and Table Tennis Center Heritage Park (2.5 acres) Riegel Road & Idlewild Lane Playground and Playfield Hillcrest Park (10 acres) Locust Road & Rockwell Avenue Playground, Ball Field, Picnic Area with BBQ, Seasonal Sledding Hill, Playfield and Soccer Hollydale Park (4 acres) Turtlecreek Drive Playground and Playfield Homewood Estates Park (15.1 acres) 2920 W. 183rd Street Playground, Ball Fields and Playfield Independence Park (.3 acre) Hickory Road & Dixie Highway Outdoor Seating Area \ Indian Trails Park (4.6 acres) Riegel Road & Willow Road Walking and Bike Path (1/2 mile) and Tennis Courts Lions Club Park & Pool (8.5 acres) 1041 Ridge Road Pool and Waterslide, Ballfield, Concessions, Tennis and Playfield Millennium Park (6.5 acres) Harwood Avenue Walking Path (4/10 mile), Moss Memorial Garden, Splash Pad, Soccer Field, Roller Hockey, Playground with Picnic Shelter and BBQ, Nardoni Memorial Garden Orchard Park (3 acres) 1701 Olive Road Playground, Tennis Courts, Ballfield and Playfield Patriots Park (11 acres) 187th Street & Center Avenue Playground, Walking Path (4/10 mile), Ballfield and Picnic Shelter with BBQ, Soccer Field, Disc Golf Pinewood Park (5.5 acres) Hedgerow Lane & Fresno Avenue Sand Volleyball Court, Soccer, Playground, Ballfield and Playfield Richard D. Irwin Park & Marie Irwin Community Center (6 acres) S. Highland Avenue Playground, Gazebo, Plaza Area, Fountain, Ballfield, Playfield and Picnic Area Rover s Run Dog Park (3 acres) 191st St., 2 blocks east of Center Ave. Open Play Area and Doggie/Owner Water Fountain Scandia Park (1 acre) Hickory & Rockwell Playground Tower Park (.6 acre) Pierce Avenue & Evergreen Road Tot Lot Willowview Park (5 acres) Highland Avenue & Willow Road School Playground, Ballfield, Seasonal Ice Skating and Sledding, Playfield and Soccer Woodborough Park (8.75 acres) Aberdeen Street Walking and Bike Path (3/10 mile), Soccer, Playground and Playfield OLYMPIA FIELDS Irons Oaks (38 acres) Western Avenue Walking Trails (1-1/2 miles), Picnic Area, Nature Trails, Adventure Course, Meeting Rooms and Cross-Country Skiing Ballantrae Park (6 acres) Antholl & Kinross Streets Walking Path (3/10 mile), Playground, Playfield and Picnic Shelter with BBQ Coyote Run Golf Course (140 acres) 800 Kedzie Avenue Hole Golf Course, 3-Hole Learning Course, Driving Range and Pro Shop Wiley s Grill at Coyote Run Golf Course 800 Kedzie Avenue Restaurant, Bar, Scenic Patio, Parties and Banquets Flossmoor Hills Park (.5 acres) Hamlin Avenue & 188th Street Walking Path (4/10 mile), Tennis Courts, School Playground Flossmoor Park & Fieldhouse (6.5 acres) 2523 Flossmoor Road Flossmoor Fieldhouse, School Playground, Ballfield, Seasonal Ice Skating, Tennis Courts, Meeting Rooms and Playfield Goldberg Center & Park (3.3 acres) 3301 Flossmoor Road Administration Center, Walking Path (1/10 mile), Playground and Picnic Area with BBQ H-F Ice Arena 777 Kedzie Avenue Ice Rinks, Party Room, Pro Shop and Concessions Heather Hill Park (1 acre) Lawrence Crescent Tennis Courts, School Playground Highlands Park (5 acres) Crescent Drive & Kathleen Lane Walking and Bike Path (2/10 mile), Playground, Ball Field and Playfield Leavitt Park (3.75 acres) 1010 Leavitt Avenue Perennial Garden, Gazebo, Playground, Sculpture Park, Ballfield and Playfield Parks Department S. Kedzie Avenue Pheasant Trails Park (6 acres) Hanover Lane & Dixie Highway Playground and Tennis Courts Pinehurst Park (.5 acres) 1501 Tina Lane Passive Recreation

17 PA R K D I S T R I C T M A P Homewood 1. Apollo Park 2. Butterfield Park 3. Cedar Park 4. Dolphin Lake Park & Clubhouse 5. extreme Scene Skate Park 6. Patriots Park 7. Heritage Park 8. Hillcrest Park 9. Hollydale Park 10. Homewood Estates Park 11. Park District Auditorium 12. Independence Park 13. Indian Trails Park 14. Lions Club Park & Pool 15. Millennium Park 16. Orchard Park 17. Pinewood Park 18. H-F Racquet & Fitness Club 19. Richard D. Irwin Park & Marie Irwin Community Center 20. Rover s Run Dog Park 21. Scandia Park 22. Tower Park 23. Willowview Park 24. Woodborough Park 25. H-F Sports Complex Flossmoor 26. Pinehurst Park 27. H-F Ice Arena 28. Highlands Park 29. Ballantrae Park 30. Flossmoor Hills Park 31. Flossmoor Park 32. Gretchen Goldberg, M.D., Memorial Park & Goldberg Administration Center 33. Heather Hill Park 34. Leavitt Avenue Park 35. Parks Department 36. Pheasant Trails Park 37. Coyote Run Golf Course & Wiley s Grill olympia Fields 38. Irons Oaks Environmental Learning Center a cooperative facility with Olympia Fields Park District ix Programs are also hosted at the following community facilities: Homewood 39. Churchill School, 190th St. & Center Ave. 40. James Hart JHS, Aberdeen St. 41. Willow School, 1804 Willow Rd. Flossmoor 42. Flossmoor Hills School, 3721 Beech 43. Heather Hills School, 1439 Lawrence Crescent 44. H-F High School-North, Governors Highway 45. H-F High School-South, 999 Kedzie Ave. 46. Parker JHS, 2810 School 47. Western Ave. School, 940 Western Ave. olympia Fields The Barn at Sgt. Means Park, S. Western Ave. Tinley park SSSRA, th Ave.

18 FINANCIAL SECTION

19 INDEPENDENT AUDITOR S REPORT

20 Independent Auditor s Report Members of the Board of Park Commissioners Homewood-Flossmoor Park District Flossmoor, Illinois We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information for the Homewood-Flossmoor Park District, Illinois, and budgetary comparisons for the General, Recreation and Museum Funds as of and for the year ended April 30, 2015, and the related notes to the basic financial statements, which collectively comprise the Homewood-Flossmoor Park District, Illinois basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

21 Members of the Board of Park Commissioners Homewood-Flossmoor Park District Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Homewood-Flossmoor Park District, Illinois, as of April 30, 2015, and the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparisons for the General, Recreation and Museum Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Prior-Year Comparative Information The basic financial statements include partial prior-year comparative information. Such information does not include all of the information required to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the basic financial statements for the year ended April 30, 2014, from which such partial information was derived. Those statements were audited by other auditors, whose report dated October 23, 2014, expressed an unmodified opinion on such information. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis on pages 4 through 10, and pension funding and budgetary comparison information on page 50, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Homewood-Flossmoor Park District, Illinois basic financial statements. The introductory section, combining and individual fund financial statements and schedules, supplemental data and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The 2015 combining and individual fund statements and 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

22 Members of the Board of Park Commissioners Homewood-Flossmoor Park District Page 3 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, based on our audit, the combining and individual fund statements and schedules for the year ended April 30, 2015, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The other information consisting of the combining and individual fund statements and schedules for the year ended April 30, 2014, was audited by other auditors whose report dated October 23, 2014, expressed an unmodified opinion on such information in relation to the basic financial statements for the year ended April 30, 2014, taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Oakbrook Terrace, Illinois October 27, 2015

23 MANAGEMENT S DISCUSSION AND ANALYSIS

24 Homewood-Flossmoor Park District Management s Discussion and Analysis April 30, 2015 The Homewood-Flossmoor Park District (the District ) discussion and analysis is designed to: (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the District s financial activity, (3) identify changes in the District s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. The Management s Discussion and Analysis ( MD&A ) is an element of the reporting model adopted by the Governmental Accounting Standards Board (GASB) in their Statement No. 34, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments, issued June Certain comparative information between the current year and the prior year is required to be presented in the MD&A. In the fiscal year ended April 30, 2013, the District implemented new government standards (GASB Statements Nos. 63 and 65) which changed the name of the government-wide balance sheet from the Statement of Net Assets to the Statement of Net Position as well as terminology used to refer to certain line items within that statement. This was done to recognize that certain balance sheet elements do not fit the definition of either assets or liabilities. These elements are now disclosed as deferred outflows and deferred inflows of resources, respectively. Consequently, statements, schedules and tables which use data from previous fiscal years for comparison have been restated to agree with these changes. Since the MD&A is designed to focus on the current year s activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page iii) and the District s financial statements (beginning on page 11). Financial Highlights The assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows at the close of the fiscal year ended April 30, 2015 by $25,040,330. Of this new position, $602,163 is unrestricted and may be used to meet ongoing and future obligations to citizens and creditors. The District s overall expenses of $12,028,296 exceeded revenues of $11,995,030 resulting in a slight decrease in the District-wide net position of $33,266. Property-related taxes received during the year were $4,971,970 compared to $5,177,890 last year, a decrease of $205,920, or 4%. Tax increment financing receipts (TIF) for the year were $3,396 compared to $31,150 last year. Recreational activities for the year resulted in charges for services of $1,808,190, or 58%, of program costs. Revenues increased slightly by $1,634, or less than 1%, from last year s total of $1,806,556, while related expenses of $3,127,582 increased by $219,369, or 7.5%, from last year s total of $2,908,213. Resources spent on capital improvements by governmental funds were $1,831,579, an increase of $1,074,499, or 142%, from last year. The District s total outstanding long-term debt was $16,663,950 as of April 30, 2015, a net increase of $2,584,932 from the prior year end as new debt exceeded that retired through repayment. 4

25 OVERVIEW OF THE FINANCIAL STATEMENTS Management s Discussion and Analysis introduces the District s basic financial statements. The basic financial statements include: (1) District-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. The District also includes in this report additional information to supplement the basic financial statements. District-wide Financial Statements The comprehensive annual financial report includes two District-wide financial statements. These statements provide both long-term and short-term information about the District s overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of these District-wide statements is the Statement of Net Position. This statement of financial condition as of a point in time compares all of the District s assets and deferred outflows of resources to its liabilities and deferred inflows of resources, 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 condition of the District as a whole is improving or deteriorating. Evaluation of the overall financial health of the District would extend to other non-financial factors such as diversification of the taxpayer base or the condition of the District s infrastructure in addition to the financial information provided in this report. The second District-wide statement is the Statement of Activities which reports how the District s net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. An important purpose of the design of this statement is to show the financial reliance of the District s distinct activities or functions on revenues provided by the District s taxpayers. Both of the District-wide financial statements distinguish governmental activities of the District that are supported by taxes and intergovernmental revenues, such as grants, from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Business-type activities include the Racquet and Fitness Club, the Ice Arena and the Coyote Run Golf Course. Fiduciary activities, such as employee pension plans, are not included in the District-wide statements since resources from these activities are not available to fund District programs. The District-wide financial statements are presented on pages of this report. Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The District uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the District s most significant funds rather than the District as a whole. Major funds are separately reported while all others are combined into a single aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combining statements in a later section of this report. The District has two kinds of funds: Governmental funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the District-wide financial statements. However, the focus is very different, with fund statements providing a distinctive view of the District s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable 5

26 resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near term. Since the District-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. Summary budgetary comparison statements are included in the basic financial statements for certain major funds - the General Fund, Recreation Fund and Museum Fund. Detailed budgetary comparison schedules for these and other special revenue funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the District s adopted annual appropriated budget. The basic governmental fund budgetary financial statements are presented on pages of this report. Proprietary funds are also included in the fund financial statements. These funds generally report services for which the District charges customer fees and are intended to be self-sufficient. The District reports three enterprise funds in this category. Enterprise funds essentially encompass the same functions reported as business-type activities in the District-wide statements. Proprietary fund statements provide both long-term and short-term financial information consistent with the focus provided by the District-wide financial statements but with more detail for major enterprise funds. The basic enterprise fund financial statements are presented on pages of this report. Notes to the Financial Statements The accompanying notes to the financial statements provide information essential to a full understanding of the District-wide and fund financial statements. The notes to the financial statements follow the basic fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District s progress in funding its obligation to provide pension benefits to its employees. While major funds are reported in the basic financial statements as discussed, combining and individual statements and schedules for nonmajor funds are presented in a subsequent section of this report following the required supplementary information. District-wide Financial Analysis An analysis of the District s net position may serve as a useful indicator of the government s financial condition. The largest portion of the District s net position is an investment in capital assets such as land, buildings and improvements, and equipment. The District uses these capital assets to provide services to customers; consequently, these assets are not available for future spending. Although the District s investment in its capital assets is presented net of related debt used to acquire those assets, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to pay off these liabilities. As year-to-year financial information is accumulated on a consistent basis, changes in net position may be observed and used to understand the changing financial condition of the District as a whole. 6

27 The following chart summarizes the net position reported in statements on pages of this report. SUMMARY OF DISTRICT-WIDE NET POSITION April 30, 2015 and 2014 Governmental Activities Business-type Activities Total Current Assets $ 10,846,870 8,178, , ,958 11,238,131 8,567,731 Internal Balances 3,518,531 3,424,099 (3,518,531) (3,424,099) Capital Assets 17,100,865 16,101,410 17,584,412 17,981,435 34,685,277 34,082,845 Deferred Outflows of Resources 268, , , ,382 Total Assets and Deferred Outflows 31,735,026 27,993,664 14,457,142 14,946,294 46,192,168 42,939,958 Current Liabilities (2,214,699) (1,935,525) (910,377) (1,288,527) (3,125,076) (3,224,052) Noncurrent Liabilities (13,790,704) (10,343,552) (1,855,509) (2,054,323) (15,646,213) (12,397,875) Deferred Inflows of Resources (2,380,549) (2,244,435) (2,380,549) (2,244,435) Total Liabilities and Deferred Inflows (18,385,952) (14,523,512) (2,765,886) (3,342,850) (21,151,838) (17,866,362) Net Position Net Investment in Capital Assets 6,740,728 6,873,691 15,602,949 15,434,566 22,343,677 22,308,257 Restricted 2,094,490 1,870,006 2,094,490 1,870,006 Unrestricted 4,513,856 4,726,455 (3,911,693) (3,831,122) 602, ,333 Total Net Position 13,349,074 13,470,152 11,691,256 11,603,444 25,040,330 25,073,596 SUMMARY OF CHANGES IN DISTRICT-WIDE NET POSITION Fiscal Years Ended April 30, 2015 and 2014 Governmental Activities Business-type Activities Total Revenues Program Revenues Charges for Services $ 1,808,190 1,806,556 5,028,335 5,004,652 6,836,525 6,811,208 Operating Grants and Contributions 45,411 21,124 45,411 21,124 Capital Grants and Contributions Total Program Revenues 1,853,601 1,827,680 5,028,335 5,004,652 6,881,936 6,832,332 General Revenues Property Tax 4,971,970 5,177,890 4,971,970 5,177,890 Replacement and Other Taxes 89, ,044 89, ,044 Investment Income 3,530 4,434 2,530 3,435 6,060 7,869 Miscellaneous 45,511 42,755 45,511 42,755 Total General Revenues 5,110,564 5,339,123 2,530 3,435 5,113,094 5,342,558 Total Revenues 6,964,165 7,166,803 5,030,865 5,008,087 11,995,030 12,174,890 Expenses General Government 3,004,612 3,305,066 3,004,612 3,305,066 Recreational 3,127,582 2,908,213 3,127,582 2,908,213 Interest and Issuance Costs 545, , , ,167 Racquet Club 2,554,317 2,491,685 2,554,317 2,491,685 Ice Arena 835, , , ,505 Golf Course 1,961,256 1,952,165 1,961,256 1,952,165 Total Expenses 6,677,682 6,700,446 5,350,614 5,278,355 12,028,296 11,978,801 Change in Net Position Before Transfers 286, ,357 (319,749) (270,268) (33,266) 196,089 Transfers (407,561) (460,246) 407, ,246 Change in Net Position (121,078) 6,111 87, ,978 (33,266) 196,089 7

28 Governmental Activities (referring to the preceding chart) The District-wide net position from governmental activities decreased $121,078 compared to a minimal increase last year. While net spending for recreational activities, to maintain parks and facilities and to make capital asset contributions to business-type activities remained relatively constant, property tax collections declined by $205,920 from last year. Even so, the current level of restricted and unrestricted net position allows the District to meet its debt service needs, provide for future improvements, and support struggling business-type activities. Although the District continued its strategy of keeping cash not immediately needed for operations in low-risk, highly liquid investments, persistently low interest rates resulted in insignificant income from this type of investment. On the other hand, interest expense, including debt issuance costs, increased by $58,321 from last year reflecting the impact of newly issued debt. Business-type Activities (referring to the preceding chart) Excluding transfers and contributions sourced in governmental activities, business-type activities reduced the District-wide net position by $319,749 compared to a reduction of $270,268 last year. An improvement in combined operating revenues was more than offset by increases in combined operating expenses. More discussion follows in the analysis of the District s individual funds. Financial Analysis of the District s Funds (referring primarily to pages and pages of this report) Governmental Funds As discussed, Governmental Funds are reported in the fund statements with a short-term inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental Funds reported ending fund balances of $11,214,844, an increase of $2,341,449 from last year. Of the year-end total, $8,267,691 is available for continuing the District s future operations as assigned fund balances. Major Governmental Funds The General, Recreation, Museum, Debt Service and Improvement Funds are the primary operating funds of the District. As of April 30, 2015, the General Fund balance was $852,663, most of which was dedicated to advances to support ice arena and golf course operations. In the Improvement Fund, $2,666,954 has been advanced to support ice and golf course operations, leaving $4,304,518 available to support the District s future operations. The General Fund balance decreased by $373,390 during the year compared to a reduction of $551,741 last year. Property tax revenues declined $183,482, or 7.7% from last year echoing the full impact of successive years of lowering property tax valuations on the ability to levy taxes. The Recreation Fund balance decreased by $73,661. Although overall expenses remained stable, revenues from activity fees and charges declined from the prior year, primarily at the swimming pool. 8

29 While the continued popularity of the programs and services offered by the Irons Oaks Environmental Learning Center remained strong, the Museum Fund balance decreased by $109,580, due to a planned reduction in levied taxes and increased capital expenditures. The remaining fund balance of $823,463 will allow for major repairs and capital improvements in the future. The Improvement Fund balance increased by $2,771,126 reflecting new debt proceeds expected to be spent in future years. All of the Debt Service Fund balance of $556,268 is available for future debt obligations. Business-type Activities, Major Proprietary Funds The Racquet Club Fund is an enterprise fund used to account for the operation and maintenance of the Racquet and Fitness Club. Operations include racquet sports and related programs, fitness programs, lap pool, pro-shop and administration. The cost of operations is recovered through membership fees and user charges. The net position of the Racquet Club Fund was $2,988,601 as of April 30, 2015, a decrease of $77,568 from last year end. A general decline in memberships and participation in both tennis and fitness programs resulted in lowered operating revenue and net operating income which was not sufficient to cover depreciation and financing expenses. The Artificial Ice Skating Rink Fund is used to account for the operation and maintenance of the Ice Arena. Operations include figure skating and hockey related programs, pro-shop and administration. The cost of operations is recovered through user charges. The net position of the Skating Rink Fund increased by $220,969 during the year. Of the increase, operating income of $130,431 continued the reversal of several years of declines in net position from operating losses. Improvements in operating revenue from large arena ice rentals and reductions in parttime labor costs contributed to the strong operating income. Nevertheless, excluding net capital assets, the Skating Rink Fund had a deficit net position of $2,496,034 at year end. Advances from the Racquet Club Fund and Improvement Fund totaling $2,558,546 are being used to support ice arena operations. The Golf Course Fund is used to account for the operation and maintenance of Coyote Run Golf Course. Operations include a golf course, learning center, pro-shop, restaurant and administration. The cost of operations is recovered through user charges. Excluding financing transfers and capital asset contributions from other funds, the net position of the Golf Course Fund declined $329,185. While an operating loss at Wiley s Grill was cut by 70% during its third full year of operations, it offset profitable course play resulting in a combined operating gain of $38,815 which was not sufficient to cover depreciation and financing expenses. Excluding net capital assets, the Golf Course Fund had a deficit net position of $2,236,099 at year end. Advances from the General and Improvement Funds totaling $2,205,404 are being used to support operations. Budgetary Highlights (referring to page 21, Exhibit A-7 of this report) The General Fund accounts for all of the resources for services traditionally associated with a park district, except those for which a special fund has been created. Each year, approximately 25% of the District s total governmental revenues and expenditures are budgeted in this fund. During the 2015 budget year, the District did not revise the annual operating budget. 9

30 Actual revenues were lower than budgeted in the General Fund due to a variance in property tax revenues of $156,260. A significant reduction from the tri-annual reassessment of property values within the District coupled with legal caps on the ability to levy taxes for the General Fund resulted in less tax revenue than anticipated. Offsetting was a variance in general government contractual expenses which were $59,857 less than budgeted primarily due to lower than expected spending for employee health insurance and loss prevention programs. Combined with other minor effects, the net negative variance from budget before debt service was $126,847. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of April 30, 2015, the District s investment in capital assets net of accumulated depreciation for governmental and business-type activities was $17,100,865 and $17,584,412, respectively. Much of the major capital spending during the year centered on facility upgrades including parking lot repaving and tennis court lighting at the Racquet and Fitness Club, replacement of the air conditioning system at the Irwin Community Center, replacement of the ropes course at the Irons Oaks Environmental Learning Center, playground renovations at the Highlands and Pheasant Trails parks, replacement of the roof at the Goldberg administration building and the ongoing complete renovation of the Dolphin Lake Clubhouse and grounds to be completed in the following fiscal year. Other expenditures were for a new ice resurfacing machine, significant computer upgrading, parks and golf course maintenance equipment, ADA and accessibility upgrades and the replacement of various other equipment throughout the District. For more detailed information, see Notes to the Financial Statements, Note 5. Debt Administration As of April 30, 2015, the District had general obligation bond issues outstanding totaling $16,663,950. Of this amount, $1,945,000 is being paid from alternate revenue sources. During the year, the District repaid $1,784,825 and issued $4,385,000 in new general obligation bonds, primarily for future expenditures related to the Dolphin Lake facility. For more detailed information, see Notes to the Financial Statements, Note 6. Factors Bearing on the District s Future Although it was uncertain whether a significant grant previously awarded by the State of Illinois would eventually be disbursed, the District did not expect that this or any other existing circumstance would adversely affect its financial health in the near future. CONTACTING THE DISTRICT S FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the District s finances, comply with finance-related laws and regulations, and demonstrate the District s commitment to public accountability. If you have any questions about this report or would like to request additional information, please contact: Renae Ross Superintendent of Finance & Administration Homewood-Flossmoor Park District 3301 Flossmoor Road Flossmoor, IL

31 BASIC FINANCIAL STATEMENTS

32 Exhibit A-1 Statement of Net Position April 30, 2015 Assets Current Assets Governmental Business-Type Activities Activities Total Cash and Investments $ 8,370,167 8,370,167 Receivables Property Taxes 2,417,433 2,417,433 Accounts 83,277 83,277 Other 43,346 43,346 Prepaid Items 15,924 56,055 71,979 Inventory 251, ,929 Total Current Assets 10,846, ,261 11,238,131 Non-Current Assets Internal Balances 3,518,531 (3,518,531) Capital Assets Not Being Depreciated 9,101,755 8,547,678 17,649,433 Capital Assets Depreciable, Net 7,999,110 9,036,734 17,035,844 17,100,865 17,584,412 34,685,277 Total Non-Current Assets 20,619,396 14,065,881 34,685,277 Deferred Outflows of Resources Deferred Charge on Debt Refunding 268, ,760 Total Assets 31,735,026 14,457,142 46,192,168 See Notes to Financial Statements 11 (Cont.)

33 Exhibit A-1 Statement of Net Position (Cont.) April 30, 2015 Liabilities Current Liabilities Governmental Business-Type Activities Activities Total Accounts Payable $ 555,185 91, ,314 Accrued Interest Payable 162,155 21, ,154 Accrued Liabilities 144, , ,517 Unearned Revenue 70, , ,794 Compensated Absences Payable 31,661 14,761 46,422 General Obligation Bonds Payable 1,250, ,000 1,435,875 Total Current Liabilities 2,214, ,377 3,125,076 Noncurrent Liabilities Compensated Absences Payable 94,982 59, ,028 General Obligation Bonds Payable 13,695,722 1,796,463 15,492,185 Total Noncurrent Liabilities 13,790,704 1,855,509 15,646,213 Deferred Inflows of Resources Deferred Revenue - Property Taxes 2,380,549 2,380,549 Net Position Net Investment in Capital Assets 6,740,728 15,602,949 22,343,677 Restricted for Debt Service 556, ,268 Restricted for Employee Benefits 1,374,209 1,374,209 Restricted for Working Capital 164, ,013 Unrestricted 4,513,856 (3,911,693) 602,163 Total Net Position 13,349,074 11,691,256 25,040,330 Total Liabilities, Deferred Inflows of Resources and Net Position 31,735,026 14,457,142 46,192,168 12

34 Statement of Activities Year Ended April 30, 2015 Functions/Programs Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Governmental Activities General Government $ 3,004,612 Recreational 3,127,582 1,808,190 45,411 Interest Expense and Issuance Costs 545,488 Total Governmental Activities 6,677,682 1,808,190 45,411 - Business-Type Activities Racquet Club 2,554,317 2,437,221 Artificial Ice Skating Rink 835, ,043 Golf Course 1,961,256 1,632,071 Total Business-Type Activities 5,350,614 5,028, ,028,296 6,836,525 45,411 - General Revenues Taxes Property Replacement Other Investment Income Miscellaneous Transfers Total General Revenues Change in Net Position Net Position Beginning - May 1 Ending - April 30 See Notes to Financial Statements 13

35 Exhibit A-2 Net (Expense) Revenue and Changes in Net Position Governmental Business-Type Activities Activities Total (3,004,612) (3,004,612) (1,273,981) (1,273,981) (545,488) (545,488) (4,824,081) - (4,824,081) (117,096) (117,096) 124, ,002 (329,185) (329,185) - (322,279) (322,279) (4,824,081) (322,279) (5,146,360) 4,971,970 4,971,970 73,717 73,717 15,836 15,836 3,530 2,530 6,060 45,511 45,511 (407,561) 407,561 4,703, ,091 5,113,094 (121,078) 87,812 (33,266) 13,470,152 11,603,444 25,073,596 13,349,074 11,691,256 25,040,330 14

36 Balance Sheet - Governmental Funds April 30, 2015 ASSETS General Recreation Museum Fund Fund Fund Cash and Investments $ 39, , ,941 Receivables, Net Property Taxes 1,011, ,903 24,739 Replacement Taxes 18,099 Other ,915 5,275 Advances to Other Funds 851,577 Prepaid Items 15,924 Total Assets 1,937, , ,955 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts Payable $ 43, ,559 3,345 Accrued Liabilities 43,454 46,609 15,179 Unearned Revenue 1,650 45,065 23,590 Total Liabilities 88, ,233 42,114 Deferred Inflows of Resources Unavailable Revenue - Property Taxes 995, ,447 24,378 Fund Balances Nonspendable Advances 836,739 Prepaid Items 15,924 Restricted for Debt Service Employee Benefits Working Capital Assigned to Special Revenue Fund Purposes ,463 Capital Project Fund Purposes Unassigned Total Fund Balances 852, ,463 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,937, , ,955 See Notes to Financial Statements 15

37 Exhibit A-3 Debt Nonmajor Total Service Improvement Governmental Governmental Fund Fund Funds Funds 548,954 4,695,897 2,033,809 8,370, , ,603 2,417,433 18,099 6,468 25,247 2,666,954 3,518,531 15,924 1,031,478 7,369,319 2,697,412 14,365, , ,185 6,013 33, ,518 70, ,847 33, , , ,718 2,380, ,739 15, , ,268 1,374,209 1,374, , , ,704 1,295,714 6,971, ,971, ,268 6,971,472 2,010,431 11,214,844 1,031,478 7,369,319 2,697,412 14,365,401 16

38 Exhibit A-4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position April 30, 2015 Total Fund Balances - Governmental Funds $ 11,214,844 Amounts reported for governmental activities in the Statement of Net Position are different because: Deferred Charge on Debt Refunding, which is reported in the Statement of Net Position, does not provide a current financial resource and, therefore, is not reported as an asset in the governmental funds 268,760 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds balance sheet. 17,100,865 Interest expense is not subject to accrual in governmental funds. (162,155) Some liabilities reported in the Statement of Net Position do not require the use of current financial resources and, therefore, are not reported as liabilities in governmental funds. These activities consist of: General Obligation Bonds Payable, Net (14,946,597) Compensated Absences (126,643) Net Position of Governmental Activities 13,349,074 See Notes to Financial Statements 17

39 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended April 30, 2015 General Recreation Museum Fund Fund Fund Revenues Property Taxes $ 2,197, ,614 44,658 Swimming Pools 180,261 Fees and Charges 975, ,927 Building Rental 124,268 Replacement Taxes 73,717 Investment Income 2,530 Grants and Donations 19,074 18,448 Interfund Services 16,000 Miscellaneous 18,042 22,451 27,424 Total Revenues 2,307,750 1,771, ,457 Expenditures Current General Government 1,808,387 Recreation 1,844, ,600 Retirement Contributions Capital Outlay 16,293 92,486 Debt Service Principal 260,000 15,243 Interest 364, Bond Issuance Costs Total Expenditures 2,448,932 1,844, ,037 Excess (Deficiency) of Revenues over Expenditures (141,182) (73,661) (109,580) Other Financing Sources (Uses) Transfers Out (232,208) Issuance of Long-Term Debt Premium(Discount) on Issuance of Long-Term Debt Total Other Financing Sources (Uses) (232,208) - - Net Change in Fund Balances (373,390) (73,661) (109,580) Fund Balances Beginning - May 1 1,226,053 74, ,043 Ending - April , ,463 See Notes to Financial Statements 18