CARY PARK DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT

Transcription

1 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2018

2 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2018 Daniel C. Jones Executive Director Vicki A. Krueger Director of Finance and Administration Prepared by: Finance and Administration Department

3 TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Principal Officials... i Organizational Chart... ii Transmittal Letter...iii - viii Certificate of Achievement for Excellence in Financial Reporting... ix FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT MANAGEMENT S DISCUSSION AND ANALYSIS... MD&A 1-9 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet Governmental Funds...7 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position Governmental Activities...8 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds...9 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Activities...10 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund...11 Statement of Net Position Proprietary Fund...12 Statement of Revenues, Expenses and Changes in Net Position Proprietary Fund...13 Statement of Cash Flows Proprietary Fund...14 Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund...47 Schedule of Changes in the Employer s Net Pension Liability Illinois Municipal Retirement Fund...48

4 TABLE OF CONTENTS FINANCIAL SECTION Continued PAGE COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Debt Service Fund...49 Combining Balance Sheet Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Illinois Municipal Retirement (IMRF)/Social Security Special Revenue Fund...54 Liability Insurance Special Revenue Fund...55 Audit Special Revenue Fund...56 Special Recreation Special Revenue Fund...57 Paving and Lighting Special Revenue Fund...58 Schedule of Revenues, Expenses and Changes in Net Position Budget and Actual Foxford Hills Golf Course Enterprise Fund...59 SUPPLEMENTAL SCHEDULES Long-Term Debt Requirements General Obligation Alternate Revenue Source Bonds Series 2013A...60 General Obligation Limited Tax Park Bonds Series Debt Certificates Series STATISTICAL SECTION Net Position by Component Last Ten Fiscal Years Changes in Net Position Last Ten Fiscal Years Fund Balances of Governmental Funds Last Ten Fiscal Years Changes in Fund Balances for Governmental Funds Last Ten Fiscal Years Assessed Value and Actual Value of Taxable Property Last Ten Tax Levy Years Direct and Overlapping Property Tax Rates Last Ten Tax Levy Years Principal Property Tax Payers Current Fiscal Year and Nine Fiscal Years Ago...75 Property Tax Extensions and Collections Last Ten Fiscal Years...76 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years...79 Schedule of Direct and Overlapping Governmental Activities Debt...80 Schedule of Legal Debt Margin Last Ten Fiscal Years Demographic and Economic Statistics Last Ten Fiscal Years...83 Principal Employers Current Fiscal Year and Nine Fiscal Years Ago...84 Full-Time Equivalent District Employees by Function Last Ten Fiscal Years Operating Indicators by Function/Program Last Ten Fiscal Years Capital Asset Statistics by Function/Program Last Ten Fiscal Years

5 INTRODUCTORY SECTION This section includes: Principal Officials Organizational Chart Transmittal Letter Certificate of Achievement for Excellence in Financial Reporting

6 Principal Officials April 30, 2018 BOARD OF COMMISSIONERS Michael Renner, President Keith Frangiamore, Vice President Josh Howell, Commissioner Erin Hauck, Commissioner Philip Stanko, Commissioner PARK DISTRICT STAFF Daniel Jones, Secretary/Executive Director Vicki Krueger, Treasurer/Director of Finance and Administration i

7 Dan Jones Executive Director Authorization Cary Park District Organizational Chart Fun & Part Time Employees Policy 2-002, Attachment A Board of Commissioners Executive Director Director of Finance & Administration Deputy Director/ Superintendent of Recreation Director of Planning & Development Superintendent of Park and Facilities Director of Communications & Marketing Administrative Assistant Assistant Director of Finance & Administration Safety & Risk Manager Facilities & Program Manager Program Manager (2) Park Maintenance Manager Parks Staff (PT-2/Seasonal) Communications & Marketing Support (Pt-2) Golf Division (Contract Service) Accountant I Senior Coordinator (PT-I) Facility Maintenance Manager Human Resources & Billing Specialist Registration Manager (PT-I) Fae. Maint. Staff (PT-2) Recreation Staff (PT-I) Facilities Maintenance Specialist Recreation Staff (PT-2/Seasonal) Park Specialist (6) Mechanic (I) ii Annual Staff Review: 5/7/2018

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9 The Cary Park District is empowered to levy a property tax on real property located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The tax base is largely residential. A five-member Board of Park Commissioners, elected at large for overlapping six-year terms, governs the Cary Park District. The Cary Park District provides for recreation, parks and open space opportunities. The Park District has 47 parks and open space sites totaling 863 acres. The Park District operates a Community Center with outdoor swimming, diving and children s pools, fitness equipment and programming/meeting rooms including kitchen facilities. Outdoor facilities include playgrounds, athletic fields, tennis courts, picnic facilities, a dog park, a skate park, a prairie nature preserve, trails, and an outdoor amphitheater for concerts and movies. The Park District owns and, through contracted management, operates an 18-hole golf course and lighted driving range. The Park District also operates a senior center, preschool and before and after school programs. The Board of Commissioners is required to pass a Combined Annual Budget and Appropriation of Funds Ordinance before or within the first quarter of that budget s fiscal year. This annual budget serves as the foundation for the Cary Park District s financial planning and control. The budget is prepared by fund, department/program area, and object. Expenditures may not legally exceed appropriations, including Board approved appropriation transfers, at the object category level. All appropriations lapse at fiscal yearend. Local Economy The Cary Park District is located in a substantially residential area with limited commercial and industrial development. Residential real estate taxes continue to account for approximately 86% of the total property tax collected. The local economy is showing signs of recovery. For the third year in a row, since 2008, the total taxable assessed value for the District increased. The increase in the total taxable assessed value for the District in tax year 2017 is $35,365,228 or 6.49% more than tax year As a result, the District s tax rate decreased by.0310 to.8049 per $100 of Assessed Value in tax year The District s tax collections continue to remain high at 99.95% of taxes extended. As demographic information is not available specifically to the Cary Park District, the following demographic information is for the Village of Cary which comprises approximately 80% of the Park District s land area and equalized assessed valuation. According to the US Census Bureau, American Factfinder, the Village of Cary had a median household income of $97,122. This compares to $79,836 for McHenry County and $59,196 for the State of Illinois. - iv -

10 Long-term Financial Planning The Board of Commissioners adopted the 2016 Comprehensive Master Plan Update (CMP) at a special meeting held on September 8 th, The previous CMP was approved in On April 12, 2018, the Board of Commissioners approved a 2018 CMP Action Plan update. This document updated the five year strategic plan within the ten year vision and is intended to be a tool to guide the Park District in its decision making thru FY 25/26. The District updated the 10 Year Capital Financial Projection and presented the updated projection to the Board of Commissioners during the budget process. In addition, the District developed and maintains a five (5) year financial modeling tool (FMT) to provide an overview of the Park District s long term financial future. Relevant Financial Policies The Park District places a high priority on maintaining what it currently owns. The capital equipment replacement fund (CERF) provides the financial plan to provide for timely replacement of equipment, including mechanical equipment and building components. A ten year estimated replacement schedule is used with monies budgeted annually from available revenues for placement into this fund. In order to aid in the accumulation of funding for capital projects, the Park District policy provides for investment interest received in certain operating funds to be set aside for future capital needs. The District has also established policies for minimum fund balance requirements for both the Corporate Fund and the Recreation Fund. Both Funds are part of the General Fund. These amounts are determined annually during the budget process and are based on three months of next year s budgeted operating expenditures. Major Initiatives The District s CMP is the working master plan document for the District going forward and can be found on the District s website; Chapter four is the Action Plan which outlines the highest priority strategies into a five-year action plan. The CMP 2018 Action Plan has been updated, as stated above, to allow for an analysis in FY 18/19 of an indoor recreation center and/or an outdoor aquatic facility. The Action Plan designates when strategies will occur, how to accomplish them, and the leadership in charge of implementing each initiative. For the Year. Disc Golf Course Construction of an 18-hole disc golf course and a 6-hole short course at Hoffman Park. is nearly complete. The course traverses some of the best landscapes including some flat - v -

11 and some rolling terrains. It also includes some tree hedgerows, old agriculture fields, and farmstead acres creating an interesting, challenging, rewarding, and of course fun experience for everyone at all experience levels. The six hole family course is short and provides an introduction to the sport perfect for families or those who are brand new to playing. The official opening took place on August 30, Kaper and Lions Park Revitalization Projects The Kaper and Lions Park Revitalization Projects were identified as priorities in the 2016 CMP Update. Throughout the summer, plans of each park were developed. The plans provide for the improvement of aging amenities, replacement of park features, and the addition of support facilities. Plans were presented for review, and feedback was collected at a public open house for residents in September At the October 12, 2017 Special Board Meeting the Park Board of Commissioners accepted the final schematic designs for both park projects. The Kaper Park and Lions Park Revitalization Projects were bid in the winter of Multi Use Trail In the summer of 2017, the Park District received a donation of $50,000 to be used towards a multi-use trail, grant application and Phase I Engineering at Hoffman Park. Sands Main Street Prairie A site evaluation of Sands Main Street Prairie related to potential site enhancements as highlighted in the Action Plan was undertaken during the fiscal year. For the Future. Kaper and Lions Park Revitalization Projects Construction at both Lions & Kaper Parks has begun during the summer of Improvements to Kaper Park include the replacement of Timbertown Playground with a new playground area, restrooms and storage building, splash pad, and a new walkway from the parking lot to the playground. Improvements to Lions Park include ballfield renovations, lacrosse and football field improvements, a refurbished plaza with picnic shelter, benches, spectator bleachers, and the renovation and expansion of restrooms and concession building. The focus of the ADA transition plan for FY 18/19 is ADA required improvements in conjunction with, and necessitated by, the replacement of playground equipment as part of the Lions & Kaper Park Revitalization Projects. Both projects are expected to be completed by the end of Multi Use Trail/ITEP Grant During May 2018, the Cary Park District was awarded a $1,104,000 Illinois Transportation Enhancement Project (ITEP) Grant from the Illinois Department of Transportation to construct a 1.4 mi. trail at Hoffman Park. In the summer of 2018, the Park District received a donation of $300,000 to be used towards a multi-use trail, Phase II & III Engineering at Hoffman Park. Together, these funds will be used to fund the trail extension to connect - vi -

12 the existing 2.1 miles of trail at Hoffman Park and provide for a continuous loop throughout the park, as well as, connections to the Meyer-Lafarge gravel pit which is in its final stages of restoration and the Route 31 trail. Once constructed, the Park District will manage over 8 miles of trail throughout the community which link many local residents to parks, neighborhoods, natural areas and several Cary community resources. The trail is expected to be constructed in Sands Main Street Prairie In June of 2017, the Board of Commissioners approved the Sands Main Street Prairie Nature Preserve Opportunity Plan. Feasibility Study The budget for FY 18/19 includes funds for a feasibility study to allow for an analysis of an indoor recreation center and/or an outdoor aquatic facility; including funding strategy, schematic design, and design and engineer of an indoor recreation center and/or aquatic facility. Hampton Park Hampton Park Playground Replacement and ADA improvements to include new playground equipment, concrete access route and play curb containment improvements, grading, landscaping, per the plans and specifications were budgeted for in FY 18/19. Lightning Prediction System The Park District will be implementing a Lightning Prediction System in the fall of 2018 to provide coverage throughout the District. This sophisticated computer system provides warning when dangerous conditions are detected. An alarm will sound providing an 8 12 minute warning for patrons to leave the area and seek shelter. Awards & Acknowledgements The Cary Park District earned the Distinguished Accredited Agency Award presented by the Illinois Association of Park Districts and the Illinois Park and Recreation Association in The Cary Park District has held this designation since 2000 and is a four time recipient of this honor. This award is the highest accreditation possible in the state of Illinois for a park and recreation agency. The goal of this accreditation program is to improve the delivery of recreation services through an extensive and detailed review in six categories including General Management, Finance and Business Operations, Facilities and Parks, Personnel, Recreation Services, and Legal. Prior to this award, the Park District had been recognized as an Illinois Distinguished Park and Recreation Agency. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Cary Park District for its comprehensive annual financial report (CAFR) for the fiscal year ended April 30, This was the twelfth consecutive year that the Park District has applied for and received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive - vii -

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14 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Cary Park District Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended April 30, 2017 Executive Director/CEO ix

15 FINANCIAL SECTION This section includes: Independent Auditors Report Management s Discussion and Analysis Basic Financial Statements Required Supplementary Information Combining and Individual Fund Statements and Schedules Supplemental Schedules

16 INDEPENDENT AUDITORS REPORT This section includes the opinion of the District s independent auditing firm.

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18 Cary Park District, Illinois August 17, 2018 Page 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not 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 Cary Park District, Illinois basic financial statements. The introductory section, combining and individual fund financial statements and budgetary comparison schedules, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements 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. LAUTERBACH & AMEN, LLP 2

19 MANAGEMENT S DISCUSSION AND ANALYSIS

20 Cary Park District Management s Discussion and Analysis April 30, 2018 As management of the Cary Park District (District), we offer readers of the District s financial statements this narrative overview and analysis of its financial activities for the fiscal year ended April 30, We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages iii viii of this report. Financial Highlights The District s net position continued to increase in the current year. At $29,162,149, net position was $1,820,944 or 6.7% higher than the prior year. Governmental fund balances also grew during the year to $3,838,510, a $240,356 or 6.7% increase. Collection of current property taxes at 99.95% remains at a level consistent with prior years. With an allowed CPI increase of.7% for tax capped funds, the District collected $4,553,461 for the current year, an increase of $49,550. Overview of the Financial Statements Management s Discussion and Analysis introduces the District s basic financial statements. The basic financial statements include: (1) government-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. Government-wide Financial Statements The District s annual report includes two government-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 of internal transactions. The first of these government-wide statements is the Statement of Net Position. This statement presents information that includes all of the District s assets and deferred outflows of resources as compared to the District s liabilities and deferred inflows of resources. The difference is 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. The second government-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 the Statement of Activities is to show the financial reliance of the District s activities on revenues provided by the District s taxpayers. Both government-wide financial statements distinguish governmental activities of the District that are principally supported by taxes and some user charges, from the District s business-type activities that are intended to recover all of their costs through user charges. - MD&A 1 -

21 Government-wide Financial Statements (cont d) The government-wide financial statements are presented on pages 3-6 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 and therefore provide additional information that won t be found in the Statement of Net Position or the Statement of Activities. 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 government-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 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 government-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 Balance Sheet - Governmental Funds and the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds provide reconciliations to assist in understanding the differences between these two perspectives. In addition, a budgetary comparison statement for the District s general fund is presented. The District maintains seven individual governmental funds for external financial reporting purposes. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General and Debt Service Funds, each of which is considered to be a major fund. Data from the other five governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The governmental fund financial statements are presented on pages 7-11 of this report. Proprietary funds are reported in the fund financial statements and report services for which the District charges customers a fee intended to recover the District s cost for these services. Proprietary fund statements provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements. There are two kinds of proprietary funds, enterprise and internal service funds. Enterprise funds essentially encompass the same functions reported as businesstype activities in the government-wide statements. The District reports the financial results of the Foxford Hills Golf Course as an enterprise fund. The District does not have internal service funds. The Enterprise Fund financial statements are presented on pages MD&A 2 -

22 Fund Financial Statements (cont d) Notes to the Financial Statements The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 15 of this report. Required Supplementary Information This section presents information concerning the District s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on pages of this report. Other Supplementary Information: The combining statements referred to earlier in connection with non-major governmental funds are presented in the supplementary information section of the report. In addition, a budgetary comparison schedule for the debt service fund, a major fund, is included within this section. Combining and individual fund statements and schedules can be found on pages of this report. - MD&A 3 -

23 Government-wide Financial Analysis In compliance with Governmental Accounting Standards Board Statement 34, year-to-year changes in the District s net position are being reported and compared for use in analyzing the changing financial condition of the District as a whole. Governmental Activities Business-type Activities Total Current and Other Assets $ 8,922,590 $ 8,622,312 $ (490,266) $ (475,450) $ 8,432,324 $ 8,146,862 Capital Assets 27,686,451 27,748,180 4,601,400 4,610,979 32,287,851 32,359,159 Total Assets 36,609,041 36,370,492 4,111,134 4,135,529 40,720,175 40,506,021 Deferred Outflows of Resources 373, , , ,256 Total Assets and Deferred Outflows of Resources $ 36,982,964 $ 36,691,748 $ 4,111,134 $ 4,135,529 $ 41,094,098 $ 40,827,277 Long Term Liabilities Outstanding $ 913,056 $ 1,696,528 $ 2,615,348 $ 3,996,948 $ 3,528,404 $ 5,693,476 Other Liabilities 1,620,805 2,782,028 1,591, ,615 3,212,724 3,179,643 Total Liabilities 2,533,861 4,478,556 4,207,267 4,394,563 6,741,128 8,873,119 Deferred Inflows of Resources 5,190,821 4,612, ,190,821 4,612,953 Total Liabilities and Deferred Inflows of Resources $ 7,724,682 $ 9,091,509 $ 4,207,267 $ 4,394,563 $ 11,931,949 $ 13,486,072 Net Position: Net Investment in Capital Assets $ 26,472,872 $ 25,032,959 $ 604,452 $ 435,544 $ 27,077,324 $ 25,468,503 Restricted 664, , , ,662 Unrestricted 2,120,733 1,780,618 (700,585) (694,578) 1,420,148 1,086,040 Total Net Position $ 29,258,282 $ 27,600,239 $ (96,133) $ (259,034) $ 29,162,149 $ 27,341,205 During the current fiscal year, the District s total net position for governmental activities increased by $1,658,043 to $29,258,282; a percentage increase of approximately 6.0%. While the total net position for business-type activities is ($96,133) at April 30, 2018, this is an increase of $162,901 or 62.9% over the prior year. Overall, the total net position of the District has increased by $1,820,944 or approximately 6.7%. The largest portion of the District s net position, net investment in capital assets, continues to grow with a net change this year of $1,608,821 from $25,468,503 to $27,077,324. This increase is due to the pay down of debt during the year of $1,617,000 and net capital additions of $561,793 offset by depreciation and amortization recorded during the year of $569,972. The District uses these capital assets to provide services to the community; consequently, these assets are not available for future spending. Another category of the District s net position represents resources that are subject to external restrictions on how they may be used; i.e. audit fees and insurance costs or capital projects and purchases. The current year saw a decrease of $121,985 or 15.5% in total restricted funds, from $786,662 to $664,677. The amount restricted for capital projects and purchases decreased by $222,943. This was due to a transfer out to the Capital Projects Fund of $227,500 to provide funding for master plan development, the design and bid of Kaper and Lions Park Improvements. Partially offsetting this was a fund surplus for the year of $80,255 in the Special Recreation Fund increasing restricted funds by a like amount. The budget for the Special Recreation Fund reflects a net addition to fund balance of $63,986. The intent was to aid in the buildup of fund balance to be used for the cost of improvements related to the accessibility of the District s facilities and implementation of the District s ADA Transition Plan. Specifically the upcoming - MD&A 4 -

24 Government-wide Financial Analysis (cont d) Lions & Kaper Park Revitalization Project along with the playground replacement at Hampton Park. Additional fund surplus of $16,269 was realized in various expenditure categories. Similarly, minimal expenditures were budgeted in the Paving and Lighting Fund to aid in the buildup of fund balance, resulting in an increase in restricted funds of $10,429. The final group of net position, categorized as unrestricted, increased in total from $1,086,040 to $1,420,148 or $334,108. Although the governmental activities saw an increase of $340,115 in unrestricted net position, this was offset by a slight decrease in the District s business-type activities. Governmental activities Governmental activities increased the District s net position by $1,658,043 to $29,258,282; a 6.0% change. Governmental Activities Business-type Activities Total Revenues: Program Revenues: Charges for Services $ 1,178,776 $ 1,094,181 $ 1,400,940 $ 1,340,403 $ 2,579,716 $ 2,434,584 Operating Grants/Contributions 13,032 19, ,032 19,026 Capital Grants/Contributions 54,557 19, ,557 19,078 General Revenues: Property Taxes 4,553,461 4,503, ,553,461 4,503,911 Other Taxes 49,328 51, ,328 51,851 Interest Income 52,714 19, ,714 19,629 Miscellaneous 5,173 3,660 3,679 14,825 8,852 18,485 Total Revenues 5,907,041 5,711,336 1,404,619 1,355,228 7,311,660 7,066,564 Expenses: Recreation and Open Space 4,039,071 3,987,596 1,262,142 1,302,313 5,301,213 5,289,909 Interest 101, ,405 87,759 93, , ,368 Total Expenses 4,140,815 4,150,001 1,349,901 1,396,276 5,490,716 5,546,277 Change in Net Postion Before Transfers 1,766,226 1,561,335 54,718 (41,048) 1,820,944 1,520,287 Transfers (108,183) (35,067) 108,183 35, Change in Net Position 1,658,043 1,526, ,901 (5,981) 1,820,944 1,520,287 Net Postion - Beginning 27,600,239 26,073,971 (259,034) (253,053) 27,341,205 25,820,918 Net Position - Ending $ 29,258,282 $ 27,600,239 $ (96,133) $ (259,034) $ 29,162,149 $ 27,341,205 Property tax revenue, including prior year taxes collected in the current year, at $4,553,461 are $49,550 more than the prior year. The District experienced an increase in EAV of 6.49% for tax levy year 2017; this is the third consecutive year the EAV increased since tax levy year The District has sufficient tax rate limits to capture allowed tax revenue under current tax cap legislation. During the current fiscal year, the District saw program revenues, specifically charges for services, increase by $84,595 to $1,178,776 when compared to the prior year. This increase was a result of the District s efforts to add activities and to enhance member benefits in the following areas: extended time, preschool, day camp and the community/fitness center. - MD&A 5 -

25 Government-wide Financial Analysis (cont d) Recreation and open space expenses showed a slight increase of 1.3% to $4,039,071 as compared to last year. Business-type activities. The business-type activities net position increased by $162,901 to ($96,133) or 62.9 %. The budgeted change in net position was $161,590. The increase in net position is a combination of an increase green fees/cart rental, a decrease in repairs and maintenance expense on vehicles, a decrease in commodities and an increase in the transfer in from governmental activity for the replacement of capital equipment when compared to last year. The District continues to closely monitor its expenses, while maintaining the quality of play. Charges for services for the year at the golf course increased by $60,537 to $1,400,940; a 4.5% increase. This is primarily due to the increase in green fees/cart rental. The District saw rounds increase slightly in the current fiscal year by 3.0% or 842 rounds when compared to last year. Starting with FY 16/17, as a long term planning tool, the District added equipment at Foxford Hills Golf Course to the Capital Equipment Replacement Schedule. As such, funds of $108,183 were transferred in from governmental activities for the replacement of capital equipment. During the current fiscal year, Foxford Hills Golf Course saw operating net income increase by $100,708 or 264.4% to $138,798. Recreation and open space expenses showed a decrease of 3.1% to $1,262,142 as compared to last year. Financial Analysis of the District s Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. Governmental funds. The focus of the District s governmental funds is to provide information on nearterm inflows, outflows, and balances of spendable resources. This information is useful in assessing the District s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the year. As of the end of the current fiscal year, the District s governmental funds reported combined ending fund balances of $3,838,510 an increase of $240,356, as compared to the prior year. This change is due, in part, to an increase of $139,398 or 4.5% in the General Fund balance resulting in an ending fund balance of $3,235,359. Additionally, the fund balance for non-major funds increased by $100,958 or 20.1% to $603,151. Due to the current and expected near future level of capital expenditures, the District s capital projects do not qualify as a major fund. As such, it is being reported in the General Fund with its fund balance being reported as assigned in the General Fund. During the current year, the District paid $120,474 in interest and fiscal charges and $2,195,616 in principal through the debt service funds. The debt service payments were funded through (1) $699,926 of taxes received for the repayment of the general obligation limited tax park refunding bond, (2) net transfer from the General Fund of $909,855, (3) $704,005 in proceeds from the issuance of General Obligation Bond Limited Tax Park Refunding Bonds and (4) interest earned on fund balances. - MD&A 6 -

26 Financial Analysis of the District s Funds (cont d) The final category within the governmental funds includes the non-major special revenue funds of the District. These include the Illinois Municipal Retirement (IMRF)/Social Security Fund, the Liability Insurance Fund, the Audit Fund, the Special Recreation Fund and the Paving and Lighting Fund. At fiscal year-end, this category had fund balances totaling $603,151, an increase of $100,958 as compared to the prior year. All of the non-major special revenue funds experienced an increase in fund balance during the current fiscal year. The majority of the increase, $80,255, was in the Special Recreation Fund. Budgetary Variances The District s revenues in the General Fund at $4,544,922 were $32,110 or.7% over budget. Charges for program revenue, and interest income were over budget by $30,239 and $21,091 respectively as the District saw increase demand for programs and higher interest rates. Increases in program revenue in the following areas were recognized: extended time, preschool, day camp and the community/fitness center. This was offset in the following areas where the actual results were less than budgeted: rental income was $6,744 or 5.4% below budget and donations/developer contributions were below budget by $12,411 or 15.5%. Expenditures in the General Fund were $3,389,044 or $634,244 under budget. Personnel and payroll related costs, services, repairs and maintenance and capital outlay were under budget by $109,122, $111,394, $31,624, and $349,163, respectively. For FY 17/18, funds were budgeted for an external administrative office lease and operating costs to address the shortage of office space. In addition, the 17/18 budget reflects the re-organization of the recreation department which included an additional recreation manager. Since additional office space was not secured, a new recreation manager was not hired. The District anticipates hiring an additional recreation manager in the current budget year and exploring opportunities for additional office space. As a result, personnel and payroll costs, in addition to services and repairs, were under budget. Additionally, services were under budget in the following areas in the recreation fund: contracted services were under budget by $9,349, ET building rental by $10,335 and electricity by $8,761. The capital budget was under for a variety of reasons. Some projects, such as the disc golf course and the multi-use trail, were a work in progress on April 30, A few equipment purchases, boom truck, batwing mower and auger unit, are being pushed out one to two years. In addition, some projects were under budget or are being delayed until the feasibility study, mentioned in the transmittal letter, is completed in FY 18/19. Capital Asset and Debt Administration Capital Assets. Capital assets include vacant and improved land (natural areas, athletic fields, golf course, open space), developed parks, constructed trails, various facilities, (community center, golf clubhouse, maintenance facilities, other) and equipment. The District s investment in capital assets for its governmental and business-type activities as of April 30, 2018, amounts to $32,287,851 (net of accumulated depreciation), a decrease of $71,308 from the prior year. Net additions during the current year of $561,793 were offset by current year depreciation of $633, MD&A 7 -

27 Governmental Activities Business-type Activities Total Land $ 21,636,103 $ 21,636,103 $ 3,435,755 $ 3,435,755 $ 25,071,858 $ 25,071,858 Land Improvements 1,837,153 2,002, , ,926 2,096,052 2,278,756 Buildings 2,109,462 2,218, , ,254 2,397,480 2,508,451 Playground and Other equipment 1,776,623 1,842, , ,044 2,395,351 2,452,028 Construction in Progress 327,110 48, ,110 48,066 Total $ 27,686,451 $ 27,748,180 $ 4,601,400 $ 4,610,979 $ 32,287,851 $ 32,359,159 Additional information on the District s capital assets can be found in Note 3 of this report. Debt Administration. At the end of the current year, the District had total bond debt of $5,703,635 with $2,466,109 being current and $3,237,526 being long-term. This debt includes alternate bonds totaling $4,999,630. Alternate bonds are general obligation bonds payable from a revenue source, other than a direct tax levy, with the general obligation of the District acting as backup security for the bonds. The specific intent of these bonds is that revenue sources be sufficient to pay the debt service so that direct taxes need not be levied and extended. In addition, the District carries debt in the form of debt certificates. As of fiscal year end, the District owes $253,000. Payment of the principal and interest on the general obligation (alternate revenue source) Series 2005 bond was guaranteed by municipal bond insurance issued by XL Capital Assurance Inc. In addition, the District applied to Standard & Poor s for an underlying rating (SPUR) for this issue. Due to the lack of financial strength of XL Capital Assurance resulting in the inability to provide investment grade insurance, this issue now carries the underlying rating of the District which is AA with a stable outlook. Series 2005 was paid off on December 15, The District debt also includes Series 2013A, General Obligation Refunding Bonds (Alternate Revenue Source) which is rated by Standard & Poor s as AA with a stable outlook. The District also issues, on an annual basis, General Obligation Bond Limited Tax Park Refunding Bonds. These bonds are not classified as long-term debt as bonds are due and payable in less than one year from date of issue. As of April 30, 2018, $704,005 of bonds were outstanding as compared to $692,990 for the prior year. State statutes limit the amount of general obligation debt the District may issue to 2.875% of assessed valuation. The current debt limitation for the District is $16,687,286 of which $957,005 is applied to the Series 2017 debt certificates and the General Obligation Limited Tax Park Refunding Bond Series 2017 balances outstanding on the general obligation bonds alternate revenue source do not apply against the limitation. Therefore, as of April 30, 2018 the District has a legal debt margin of $15,730, MD&A 8 -

28 Governmental Business-type Activities Activities Total General obligation bonds: Alternate revenue source $ 1,149,349 $ 2,651,975 $ 3,575,651 $ 3,643,025 $ 4,725,000 $ 6,295,000 Limited tax 704, , , ,990 Debt certificates , , , ,000 Total $ 1,853,354 $ 3,344,965 $ 3,828,651 $ 3,943,025 $ 5,682,005 $ 7,287,990 Additional information on the District s debt can be found in Note 3 of this report. Factors Bearing on the District s Future There are currently no known facts, decisions, or conditions that are expected to have a significant effect on financial position (net assets) or results of operations (revenues, expenses, and other changes in net assets). 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; Vicki Krueger, Director of Finance & Administration, Cary Park District, 255 Briargate Road, Cary, IL MD&A 9 -

29 BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: Government-Wide Financial Statements Fund Financial Statements Governmental Funds Proprietary Fund In addition, the notes to the financial statements are included to provide information that is essential to a user s understanding of the basic financial statements.

30 Statement of Net Position April 30, 2018 See Following Page

31 Statement of Net Position April 30, 2018 Governmental Activities Business-Type Activities Totals Current Assets Cash and Investments $ 3,625,198 1,500 3,626,698 Receivables - Net of Allowances 4,719,117 4,463 4,723,580 Internal Balances 562,120 (562,120) - Prepaids/Inventories 16,155 65,891 82,046 Total Current Assets 8,922,590 (490,266) 8,432,324 Noncurrent Assets Capital Assets ASSETS Nondepreciable 21,963,213 3,435,755 25,398,968 Depreciable 11,621,022 2,184,865 13,805,887 Accumulated Depreciation (5,897,784) (1,019,220) (6,917,004) Total Noncurrent Assets 27,686,451 4,601,400 32,287,851 Total Assets 36,609,041 4,111,134 40,720,175 DEFERRED OUTFLOWS OF RESOURCES Unamortized Loss on Refunding 42,103-42,103 Deferred Items - IMRF 331, ,820 Total Deferred Outflows of Resources 373, ,923 Total Assets and Deferred Outflows of Resources 36,982,964 4,111,134 41,094,098 The notes to the financial statements are an integral part of this statement. 3

32 Governmental Activities Business-Type Activities Totals LIABILITIES Current Liabilities Accounts Payable $ 138,051 75, ,835 Accrued Payroll 56,373-56,373 Deposits Payable 1,500 4,900 6,400 Unearned Program and Other Revenue 177,215 73, ,701 Accrued Interest Payable 22,272 56,149 78,421 Other Payables 22,764-22,764 Current Portion of Long-Term Debt 1,202,630 1,381,600 2,584,230 Total Current Liabilities 1,620,805 1,591,919 3,212,724 Noncurrent Liabilities Compensated Absences Payable 17,780-17,780 Net Pension Liability - IMRF 67,098-67,098 Debt Certificates Payable - 206, ,000 General Obligation Bonds - Net 828,178 2,409,348 3,237,526 Total Noncurrent Liabilities 913,056 2,615,348 3,528,404 Total Liabilities 2,533,861 4,207,267 6,741,128 DEFERRED INFLOWS OF RESOURCES Property Taxes 4,672,022-4,672,022 Deferred Items - IMRF 518, ,799 Total Deferred Inflows of Resources 5,190,821-5,190,821 Total Liabilities and Deferred Inflows of Resources 7,724,682 4,207,267 11,931,949 NET POSITION Net Investment in Capital Assets 26,472, ,452 27,077,324 Restricted Capital Projects and Purchases 61,526-61,526 Special Levies Retirement 143, ,533 Liability Insurance 72,903-72,903 Audit 1,880-1,880 Special Recreation 336, ,184 Paving and Lighting 48,651-48,651 Unrestricted (Deficit) 2,120,733 (700,585) 1,420,148 Total Net Position 29,258,282 (96,133) 29,162,149 The notes to the financial statements are an integral part of this statement. 4

33 Statement of Activities For the Fiscal Year Ended April 30, 2018 Expenses Program Revenues Charges Operating Capital for Grants/ Grants/ Services Contributions Contributions Governmental Activities Recreation and Open Space $ 4,039,071 1,178,776 13,032 54,557 Interest on Long-Term Debt 101, Total Governmental Activities 4,140,815 1,178,776 13,032 54,557 Business-Type Activities Foxford Hills Golf Course 1,349,901 1,400, Total Primary Government 5,490,716 2,579,716 13,032 54,557 General Revenues Taxes Property Taxes Intergovernmental - Unrestricted Replacement Taxes Interest Income Miscellaneous Transfers Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement. 5

34 Net (Expenses)/Revenues Total Primary Government Governmental Business-Type Activities Activities Totals (2,792,706) - (2,792,706) (101,744) - (101,744) (2,894,450) - (2,894,450) - 51,039 51,039 (2,894,450) 51,039 (2,843,411) 4,553,461-4,553,461 49,328-49,328 52,714-52,714 5,173 3,679 8,852 (108,183) 108,183-4,552, ,862 4,664,355 1,658, ,901 1,820,944 27,600,239 (259,034) 27,341,205 29,258,282 (96,133) 29,162,149 The notes to the financial statements are an integral part of this statement. 6

35 Balance Sheet - Governmental Funds April 30, 2018 General Debt Service Nonmajor Totals ASSETS Cash and Investments $ 2,970, ,218 3,625,198 Receivables - Net of Allowances Property and Other Taxes 3,304, , ,169 4,681,309 Accounts 37, ,808 Due from Other Funds 562, ,120 Total Assets 6,874, ,075 1,316,387 8,906,435 LIABILITIES Accounts Payable 113,169-24, ,051 Accrued Payroll 52,952-3,421 56,373 Deposits Payable 1, ,500 Unearned Program and Other Revenue 177, ,215 Other Payables ,764 22,764 Total Liabilities 344,836-51, ,903 DEFERRED INFLOWS OF RESOURCES Property Taxes 3,294, , ,169 4,672,022 Total Liabilities and Deferred Inflows of Resources 3,639, , ,236 5,067,925 FUND BALANCES Nonspendable 240, ,000 Restricted 61, , ,677 Assigned 1,471, ,471,557 Unassigned 1,462, ,462,276 Total Fund Balances 3,235, ,151 3,838,510 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,874, ,075 1,316,387 8,906,435 The notes to the financial statements are an integral part of this statement. 7