Comprehensive Annual Financial Report. DeKalb, IL

Transcription

1 Comprehensive Annual Financial Report DeKalb, IL For the Year Ended February 29, 2016

2 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended February 29, 2016 Prepared by: Nancy McCaul Interim Superintendent of Finance

3 TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Letter of Transmittal... List of Principal Officials... Organizational Chart... Certificate of Achievement for Excellence in Financial Reporting... i-v vi vii viii FINANCIAL SECTION INDEPENDENT AUDITOR S REPORT GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management s Discussion and Analysis... MD&A 1-9 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position... 4 Statement of Activities... 5 Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position... 8 Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities Notes to Financial Statements

4 TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund Recreation Fund Special Recreation Fund Golf Course Fund Schedule of Employer Contributions Illinois Municipal Retirement Fund Other Postemployment Benefit Plan Schedule of Changes in the Employer s Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund Schedule of Funding Progress Other Postemployment Benefit Plan Notes to Required Supplementary Information COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Fund Capital Projects Fund NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Insurance Fund Audit Fund Social Security Fund Illinois Municipal Retirement Fund Museum Fund Hopkins Pools Fund... 55

5 TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION Financial Trends Net Position by Component Change in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Revenue Capacity Assessed and Estimated Actual Value of Taxable Property Principal Property Taxpayers Property Tax Rates - Direct and Overlapping Governments Property Tax Levies and Collections Debt Capacity Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Computation of Direct and Overlapping Bonded Debt Legal Debt Margin Information Demographic and Economic Information Demographic and Economic Information Principal Employers Operating Information Employees by Function Operating Indicators Capital Asset Statistics... 81

6 INTRODUCTORY SECTION

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8 In addition to providing parks and recreational facilities, the DeKalb Park District provides diverse recreation and athletic activities for youth and adults who pay fees for services. The fees for these participatory programs are accounted for in the Recreation Fund. Two golf courses, River Heights and Buena Vista, and the Hopkins Aquatic Center provide opportunities for fun and exercise, and are reflected in their own respective funds. The District is one of three park district agency members of Kishwaukee Special Recreation Association (KSRA) which serves the communities of DeKalb, Sycamore and Genoa in order to provide special recreation programs for the disabled. The three member districts share the governance of, and expenses of such programs on a cooperative basis. In addition to KSRA, disabled individuals are included in Park District programs and facilities. KSRA is considered to be a jointly governed organization pursuant to GASB Statement No. 14. The Park Board adopts a budget and appropriation ordinance within the first quarter of the fiscal year. This annual budget serves as the foundation for the DeKalb Park District s financial planning and control. A detailed budget is prepared for each fund and department. All expenditures are approved by the Board of Commissioners at their monthly meeting. Budgetary control is provided by a system of purchasing authority and monthly review of all accounts compared to appropriations. Local economy The largest employer in DeKalb County, and also within the DeKalb Park District, is Northern Illinois University (NIU) in DeKalb. NIU is the second largest university in the state of Illinois with an undergraduate and graduate enrollment of approximately 22,000 students. Employment at the University has been relatively stable for the past ten years. On the other hand, as a public institution, the real property at the university campus is not taxable by local governmental units, which tends to shift the property tax burden to homeowners and local businesses. Kishwaukee Health Systems is also a significant employer with over 1,200 healthcare professionals and staff. Other large private employers include 3M, Target, Wal-Mart, and the Nestle Corporation. While the current global economic climate has produced a significant slow-down in new commercial property locally, DeKalb is poised to attract new property development in the future. Due to close proximity to several highways, the Chicago area and the central Midwest states, DeKalb is a desirable location for business. In the last five years fiber optic cable has been installed throughout the area connecting businesses, schools, and university locations. Three main DeKalb Park District locations are now connected via the fiber optic network: Hopkins Administration Office, Sports & Recreation Center and River Heights Golf Course. The DeKalb Park District currently has 26 full-time employees, 3 part-time employees and each year hires nearly 230 seasonal employees, contributing over $2.0 million directly to the local economy. There continues to be a large number of applicants for seasonal positions, which makes it possible for the District to hire highly qualified and skilled ii

9 individuals in several key areas such as parks maintenance and capital projects construction. Long-term financial planning The Capital Improvement Plan is a major component of long-term financial planning for the District so that future capital needs are recognized and prioritized. The Park Board regularly assesses the five-year capital plan and, with staff, develops the fiscal year capital improvement projects plan in order to insure that the community s needs are met. Staff use a Capital Improvement Plan (CIP) form to suggest and request consideration for capital equipment and projects. These requests are prepared in detail with cost estimates, diagrams, photos, and justification narrative. Planning also continues for replacement of two older facilities, Hopkins Aquatic Center (40 years) and the Maintenance Campus North Building (80+ years.) The District uses a portion of its $1.2 million annual bond proceeds for needed infrastructure improvements and major upgrades to older parks as well as funding for new park developments. Additional capital funds come from revenues that the City has declared as surplus TIF proceeds that can be used for a variety of unrestricted park projects throughout the city. The DeKalb Park District, DeKalb School District #428, City of DeKalb, and Northern Illinois University continue to work together on many facility-sharing opportunities including parks, golf, aquatics, soccer, and softball facilities. The District recently entered into an intergovernmental agreement with the Sycamore Park District to provide access to recreation classes to Sycamore residents while a new facility is being constructed in that community. Partnering with Northern Illinois University will continue to also be an important resource for project funding through work-study grants and internships. Relevant financial policies The District has adopted several key financial policies including a fund balance policy, an investment policy, capitalization policy and a purchasing policy as well as a five year capital improvement plan. These policies set fund balance goals, investment guidelines and provide planning tools for capital projects and expenditures. The DeKalb Park District has established and maintained certain internal controls designed to ensure that the assets of the Park District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled for the preparation of financial statements. The District continues to update its computer and security systems with the purchase of several new workstations each year and the installation of security cameras. Last fiscal year, the Park Board decided to change the method of accounting for two of the District s funds. Both the Golf Course Enterprise Fund and the Hopkins Enterprise Fund became Special Revenue Funds reflecting the desire to treat these operations in a similar manner as other recreation and athletic functions. iii

10 Major Initiatives and Accomplishments this Year The District is in the fifth year of an ADA transition plan to implement recommendations received in a report from Recreation Accessibility Consultants, LLC regarding its audit of the District s buildings and park sites for accessibility. The recommendations are to assure that the benefits of recreation remain available to all Park District residents, including those with disabilities. Playground replacements continue to proceed with several more playgrounds scheduled to be upgraded. District staff has been trained and certified to install new playground equipment at a substantial savings for the project. This replacement program, along with upgrading the standard of care for all parks and facilities continues to make a great improvement in the District. The District was awarded an OSLAD grant in FY 2015 to redevelop Lion s Park. The project entails all new playground equipment, interactive play features, ADA accessible pathways, a volleyball area, and improved parking. Unfortunately, the State of Illinois has put a hold on all OSLAD projects pending funding approval. Several major paying projects were completed on park roadways and pathways. These include: Hopkins Park entrance road, path through Prairie Creek Park and access road to athletic fields at Katz Park. A permanent location was selected for the dog park. Improvements this year include: fencing this 2.5 acre site, planting over 30 trees, adding shade structures, creating an ADA ramp, installing water fountains with dog bowls and a double-gated entrance. Dark Sky lighting fixtures were continued to be installed at several locations throughout the District with the intent to upgrade all fixtures in the next three years. The fixtures use LED lights and are more energy efficient as well as minimizing the amount of light pollution. A new playground was installed at Shipman Park and the playground at Pappas Park was moved to Garden of Eden Park. The shelter at Lions Park was renovated. A new VoIP phone system was installed. This system connects all facilities and improves customer service and internal communication. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the DeKalb Park District for its comprehensive annual financial report (CAFR) for the fiscal year ended February 28, This was the twenty-first consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish iv

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12 LIST OF PRINCIPAL OFFICIALS February 29, 2016 ******** Board of Commissioners Phil Young, President Keith Nyquist, Vice-President Dean Holliday, Treasurer Bryant C. Irving, Secretary Dag Grada, Commissioner ******** Administrative Staff Nancy McCaul, CPRP, Interim Superintendent of Finance - vi -

13 DeKalb Park District Organizational Chart February 29, 2016 Citizens of the DeKalb Park District Board of Commissioners Advisory Legal Services Executive Director Superintendent of Finance Superintendent of Parks & Development Superintendent of Recreation Superintendent of Golf Finance Administrator Park Foreman Recreation Supervisor BVGC Supervisor Accounting System Mgr Landscape Supervisor Athletic Supervisor Food/Clubhouse Maintenance 2 (3 positions) Maintenance 1 (3 positions) Athletic Coordinator Rec Office Coord. Project Manager Facility & Mktg Supervisor Construction 2 (2 positions) Facilities Specialist - vii -

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15 FINANCIAL SECTION

16 INDEPENDENT AUDITOR S REPORT Board of Commissioners DeKalb Park District DeKalb, Illinois We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the DeKalb Park District, DeKalb, Illinois (the District), as of and for the year ended February 29, 2016, and the related notes to financial statements, which collectively comprise the District s 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 these 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 of 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 District 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 District 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

17 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 DeKalb Park District, DeKalb, Illinois, as of February 29, 2016 and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 10, the District adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which established standards for measuring and recognizing liabilities, deferred inflows and outflows of resources and expenses; modified certain disclosures in the notes to financial statements; and the required supplementary information. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis and other required supplementary information identified in the accompanying table of contents 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 District s basic financial statements. The introductory section, combining and individual fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial 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 the audit of the basic financial statements

18 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 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. Naperville, Illinois July 15,

19 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS

20 DeKalb Park District Management s Discussion and Analysis For the Year ended February 29, 2016 The DeKalb Park District (the District ) management s 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 after the initial year of implementation. 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 i) and the District s financial statements (beginning on page 4). Financial Highlights Total assets of the District exceeded liabilities at February 29, 2016 by $13,613,014. The District s net position decreased by $990,334 during the year. This was due entirely to a change in accounting principle for recording of pensions. Revenues for governmental activities were $5,467,028 which includes Program Revenues of $1,513,926. Expenses for governmental activities were $5,231,530. At February 29, 2016 the governmental funds reported combined fund balances of $4,158,684 which is an 11.3 percent increase from the prior year s combined fund balance of $3,736,418. Property and replacement taxes collected were $3,676,157 and $104,736, respectively, which is an increase of $66,161 or 1.8 percent over last year s combined total taxes collected. The District invested $339,910 in capital assets in FY2016. Depreciation expense on all capital assets totaled $657,923. Net total capital assets of the District decreased from $13,540,843 at the close of FY2015 to $13,222,830 in FY2016, a decrease of ($318,013). Additional information regarding capital assets can be found in Note 4 of the financial statements. MD&A 1

21 Overview of the Financial Statements The District s financial section of the CAFR includes four primary components: (1) Management s Discussion and Analysis introduces the District s basic financial statements. (2) Basic Financial Statements which include three components: (a) governmentwide financial statements, (b) fund financial statements, and (c) notes to the financial statements contain additional detailed information to explain the basic financial statements. (3) Required Supplementary Information follows the Basic Financial Statements and provides financial information that further explains and supports the information in the financial statements. (4) Additional Supplementary Information provides statistical information and additional financial and non-financial data. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the long-term and short-term status of the District. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting. The Statement of Net Position (page 4) is the District-wide statement of financial position presenting information that includes all of the District s assets and deferred outflows and liabilities and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District as a whole is improving or deteriorating. Evaluation of the overall health of the District includes other non-financial factors, such as diversification of the taxpayer base, condition of the District s infrastructure, in addition to the financial information provided in this report. The Statement of Activities (pages 5 & 6) 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 distinct activities or functions on revenues provided by the District s taxpayers. The District s activities are considered to be governmental type activities and include the operations of parks, recreation & athletic programs, two golf courses, aquatic center, two museums, and administration. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. All of the funds of the District are governmental funds. MD&A 2

22 Governmental Funds. The governmental fund financial statements provide more detailed information about each of the District s primary or major funds rather than the District as a whole. The focus of governmental funds is on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. These statements 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 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. The District adopts an annual budget for its General Fund, Recreation Fund as well as for other special revenue funds. Budget versus actual statements for four of the major governmental funds, the General Fund, the Recreation Fund, the Special Recreation Fund and the Golf Course Fund, can be found in the required supplemental information, on pages 35 through 38. The other special revenue funds budget versus actual comparisons can be found in a later section of this report, on pages The basic governmental fund financial statements can be found on pages 6 through 11 of this report. Proprietary Funds. In previous years, the District had two proprietary funds. At the beginning of fiscal year 2015, the District changed the accounting for enterprise funds from proprietary funds to governmental funds. Therefore, there are no longer any proprietary funds for the District. Notes to the Financial Statements The accompanying notes to the financial statements provide additional information that is essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 12 of this report. 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 and budgetary comparisons. Information including detail by fund for receivables, payables, transfers, and payments within the reporting entity can be found in the notes to the financial statements. Required supplementary information can be found on pages of this report and the supplementary footnotes can be found on page 43. MD&A 3

23 Government-wide Financial Analysis The following is a summary of assets, deferred outflows, liabilities, deferred inflows and net position as of February 29, 2016 and February 28, The most significant portion of net position is invested in capital assets and consists of land, recreation facilities, maintenance equipment and infrastructure improvements. GOVERNMENT-WIDE STATEMENTS Table 1 DeKalb Park District s Net Position Governmental Governmental Activities Activities Current Assets $ 7,939,173 $ 7,493,130 Capital Assets 13,222,830 13,540,843 Deferred Outflows 917,196 22,320 Total Assets & Deferred Outflows 22,079,199 21,056,293 Current Liabilities 234, ,143 Long Term Liabilities Due within one year 1,626,533 1,623,942 Due in more than one year 3,049,669 1,061,261 Total Liabilities 4,910,922 2,922,346 Deferred Inflows 3,555,263 3,530,599 Total Deferred Inflows 3,555,263 3,530,599 NET POSITION: Net Investment in Capital Assets 12,540,860 12,052,013 Restricted 1,651,272 1,487,385 Unrestricted (deficit) (579,118) 1,063,950 TOTAL NET ASSETS $ 13,613,014 $ 14,603,348 The net position of the District increased $235,498 or 1.6 percent. The two largest components of Current Assets are Cash and Investments and Property Taxes Receivable. Deferred Outflows of Resources has increased by $894,876 due to the implementation of GASB 68. Long Term Liabilities are general obligation bonds, capital lease payable, compensated absences and net OPEB obligation. Deferred Inflows reflect unearned property tax revenues. MD&A 4

24 The District s Restricted Net Position is primarily for park development and other capital projects. For more detailed information, see the Statement of Net Position on page 4. GOVERNMENT-WIDE STATEMENTS Table 2 Statement of Activities Governmental Governmental Business-type Business-type Total Total Activities Activities Activities Activities Activities Activities REVENUES Program Revenues: Charges for services $ 1,503,810 $ 1,577,924 $ - $ - $ 1,503,810 $ 1,577,924 Operating grants 1,116 1, ,116 1,116 Capital grants 9,000 7, ,000 7,982 General Revenues: Taxes 3,780,893 3,714, ,780,893 3,714,732 TIF Income-Unrestricted 146, , , ,422 Investment Income 4,435 4, ,435 4,328 Miscellaneous 21,548 1, ,548 1,519 Total Revenues 5,467,028 5,457, ,467,028 5,457,023 EXPENSES Program Expenses: General government 2,366,151 2,243, ,366,151 2,243,839 Recreation 2,787,273 2,844, ,787,273 2,844,922 Interest 78,106 89, ,106 89,424 Total Expenses 5,231,530 5,178, ,231,530 5,178,185 CHANGE IN NET POSITION BEFORE TRANSFERS 235, , , ,838 Transfers in (out) - 2,876,170 - (2,876,170) - - CHANGE IN NET POSITION 235,498 3,155,008 - (2,876,170) 235, ,838 NET POSITION, MARCH 1 14,603,348 11,448,340-2,876,170 14,603,348 14,324,510 Change in accounting principle (1,225,832) (1,225,832) - NET POSITION, FEBRUARY 29/28 $ 13,613,014 $ 14,603,348 $ - $ - $ 13,613,014 $ 14,603,348 MD&A 5

25 In 2015, revenues and expenses from business-type activities were combined with governmental activities. A transfer of the March 1 net position in the business-type activities, totaling $2,876,170 was made to the governmental activities net position. Overall the District s net position increased $235,498 at February 29. Total revenues increased 0.2 percent or $10,005 from the prior year due to a combination of increased tax receipts and miscellaneous income, offset by a reduction in charges for services in golf revenues. Miscellaneous revenue in 2016 reflects the receipts from sales of surplus fixed assets and a grant from the DeKalb County Community Foundation for a movie projector. Total expenses were also slightly higher in 2016, up $53,345, or 1 percent District-wide. For more detailed information, see the Statement of Activities on page 5. GOVERNMENTAL FUNDS The major governmental funds of the District are the General Fund, Recreation Fund, Special Recreation Fund, Golf Course Fund, Debt Service Fund and the Capital Projects Fund. The non-major governmental funds are the Insurance Fund, Audit Fund Social Security Fund, Illinois Municipal Retirement Fund, Museum Fund and the Hopkins Pool Fund. Revenues: Fiscal Year Fiscal Year 2016 % of total 2015 % of total Change Property taxes $ 3,676,157 55% $ 3,605,301 53% $ 70,856 Replacement taxes 104,736 2% 109,431 2% (4,695) Investment income 4,435 0% 4,328 0% 107 Rental income 346,209 5% 337,044 5% 9,165 Charges for services 1,157,604 17% 1,219,563 18% (61,959) Donations 3,000 0% 5,395 0% (2,395) Intergovernmental 152,226 2% 173,326 2% (21,100) Bond proceeds 1,200,000 18% 1,200,000 18% - Proceeds from capital lease - 0% 128,653 2% (128,653) Miscellaneous 22,665 0% 2,635 0% 20,030 Total Revenues and other Financing Sources $ 6,667, % $ 6,785, % $ (118,644) Total Revenues and other Financing Sources for the Governmental Funds experienced an overall decrease of 1.7%, or ($118,644) compared to Property tax revenues increased $70,856 or 2%, and Property Replacement Taxes decreased $4,695 or 4.3%. Investment income continues to reflect very low interest rates. The decrease in 2016 for charges for services are mostly due to lower recreation program revenues and revenues at the golf courses. Intergovernmental Revenues are ($21,100) less in 2015 than last year, reflecting a reduction in TIF revenues and impact fees. The prior year also included proceeds from a capital lease of $128,653, which did not occur again in MD&A 6

26 Expenditures: Fiscal Year Fiscal Year 2016 % of total 2015 % of total Change General government $ 1,981,590 32% $ 1,945,192 30% $ 36,398 Recreation 2,168,540 35% 2,201,123 34% $ (32,583) Operating Expenditures 4,150,130 66% 4,146,315 64% 3,815 Capital outlay 491,465 8% 817,566 12% $ (326,101) Debt service: Principal 1,529,107 24% 1,501,717 23% $ 27,390 Interest 74,062 1% 82,537 1% $ (8,475) Total Expenditures 6,244, % $ 6,548, % (303,371) Total expenses for the Governmental Funds decreased by 4.6% or $(303,371) from last year. That decrease is comprised mostly from ($326,101) of reduced capital spending at the golf courses, fewer ADA compliance projects and grant projects. The prior year included $128,653 of capital outlay, which was financed through a capital lease. There was a modest increase in general government expenditures in the general fund due to implementation of an early retirement incentive for long-term staff, which was mostly offset by a reduction in recreation expenditures due to lower utility costs and program expenses. Capital Assets Approximately 60% percent of the District s total assets reflect its investment in capital assets (e.g. land, buildings, vehicles, and equipment). Depreciation expense reported in government activities was $657,923 for the fiscal year ended February 29, Although the District s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. Major capital highlights for 2016 include the following: - Ellwood House museum building improvements including repairs to the terrace and new displays in the Visitor Center - Playground equipment for Shipman Park - Purchase of new park maintenance mowers - District wide paving improvements including pathways and roadways - Replacement of outdated district-wide phone system - Purchase of new chaise lounge chairs and teaching platforms for swim lessons at the pool - Renovation of Lion s Park shelter - Planted 68 trees in the District MD&A 7

27 Table 3 Capital Assets Governmental Governmental Activities Activities Land and improvements $ 10,047,135 $ 9,935,798 Buildings 11,892,212 11,848,685 Vehicles 429, ,263 Equipment 2,506,464 2,347,940 Total Capital Assets 24,875,074 24,561,686 Less Accumulated depreciation 11,652,244 11,020,843 Total Capital Assets, Net $ 13,222,830 $ 13,540,843 For more information on the District s capital assets, see Note 4 in the Notes to the Financial Statements on pages Long-term debt As of February 29, 2016, the District had a total of $2,180,000 in bonded indebtedness outstanding. The total is composed of $1,200,000 in general obligation park bonds, due in one payment on December 1, 2016, and $980,000 in alternate revenue source bonds due in installments through February 1, Other long-term debt includes a golf course capital lease payable of $77,829, compensated absences of $86,530, net pension liability of $2,318,164 and net Other Post-Employment Benefits obligation of $13,679. For more information on the District s long-term debt see Note 5 in the Notes to the Financial Statements on page 22. Economic Factors Historically, commercial and residential development contributed to an increase in equalized assessed valuation (EAV) of the District by approximately $20 million per year, from 2005 through New property coming into the District was half that, or $10 million in 2008 only $6.3 million in 2009, $3.1 million in 2010, $3.3 million in 2011, $5.3 million in 2012, $.8 million in 2013 and $1.9 million in However, in 2015, there was an increase of $4.7 million in new property. Further, the local housing market, while making a small comeback, is still depressed with a slight reduction in Residential EAV in 2015 of $2.8 million. MD&A 8

28 The 2015 Rate Setting EAV is $470,178,217 compared to the 2014 EAV of $466,388,972. The Park District s annual tax levy is subject to the Property Tax Extension Limitation Law (PTELL). The law limits the increase in property tax extensions to 5% or the percent increase in the National Consumer Price Index (CPI), whichever is less. For the 2016 tax levy, the CPI to be used for computing the extension limitation will be 0.7%, compared to the 2015 CPI of 0.8%, 2014 CPI of 1.5% and 2013 CPI of 1.7%, The voters in a referendum must approve property tax levy increases greater than 5% or the CPI amount. The law contains significant limitations on the amount of property taxes that can be extended and on the ability of such taxing districts to issue non-referendum general obligation bonds. Contacting the District s Financial Management This financial report is designed to provide our citizens with a general overview of the District s finances, comply with finance-related laws and regulations, and to demonstrate the District s commitment to public accountability. Questions concerning this report or requests for additional financial information may be directed to Nancy McCaul, Interim Superintendent of Finance, DeKalb Park District, 1403 Sycamore Road, DeKalb, IL MD&A 9

29 STATEMENT OF NET POSITION February 29, 2016 Primary Government Governmental Activities ASSETS Cash and investments $ 4,353,802 Property taxes receivable (net, where applicable, of allowances for uncollectibles) 3,555,263 Prepaid items 29,380 Other receivables 728 Capital assets not being depreciated 6,624,907 Capital assets being depreciated (net of accumulated depreciation) 6,597,923 Total assets 21,162,003 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 900,456 Unamortized loss on refunding 16,740 Total deferred outflows of resources 917,196 Total assets and deferred outflows of resources 22,079,199 LIABILITIES Accounts payable 172,720 Accrued interest payable 9,494 Unearned revenue 52,506 Noncurrent liabilities Due within one year 1,626,533 Due in more than one year 3,049,669 Total liabilities 4,910,922 DEFERRED INFLOWS OF RESOURCES Unearned revenue - property taxes 3,555,263 Total deferred inflows of resources 3,555,263 Total liabilities and deferred inflows of resources 8,466,185 NET POSITION Net investment in capital assets 12,540,860 Restricted for Special recreation 868,319 Debt service 5,304 Insurance 152,429 Audit 5,200 Social Security 199,552 IMRF 124,853 Museum 295,615 Unrestricted (579,118) TOTAL NET POSITION $ 13,613,014 See accompanying notes to financial statements

30 STATEMENT OF ACTIVITIES For the Year Ended February 29, 2016 Net (Expense) Program Revenues Revenue and Change Operating Capital in Net Position FUNCTIONS/PROGRAMS Charges Grants and Grants and Governmental PRIMARY GOVERNMENT Expenses for Services Contributions Contributions Activities Governmental Activities General government $ 2,366,151 $ 135,092 $ - $ - $ (2,231,059) Recreation 2,787,273 1,368,718 1,116 9,000 (1,408,439) Interest 78, (78,106) TOTAL PRIMARY GOVERNMENT $ 5,231,530 $ 1,503,810 $ 1,116 $ 9,000 (3,717,604) General Revenues Taxes Property 3,676,157 Replacement 104,736 TIF income - unrestricted 146,226 Investment income 4,435 Miscellaneous 21,548 Total 3,953,102 CHANGE IN NET POSITION 235,498 NET POSITION, MARCH 1 14,603,348 Change in accounting principle (1,225,832) NET POSITION, MARCH 1, RESTATED 13,377,516 NET POSITION, FEBRUARY 29 $ 13,613,014 See accompanying notes to financial statements

31 BALANCE SHEET GOVERNMENTAL FUNDS February 29, 2016 Special General Recreation Recreation ASSETS Cash and investments $ 1,056,040 $ 23,493 $ 870,072 Property taxes receivable (net, where applicable, of allowances for uncollectibles) 1,049, , ,668 Other receivables Prepaid items 20,650 2,260 - Advance to other funds 30, ,387 - TOTAL ASSETS $ 2,158,119 $ 753,958 $ 1,048,740 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 60,405 $ 45,303 $ 1,753 Unearned revenue 37,636 4,409 - Advance from other funds Total liabilities 98,041 49,712 1,753 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 1,049, , ,668 Total deferred inflows of resources 1,049, , ,668 FUND BALANCES (DEFICIT) Nonspendable 51,589 2,260 - Restricted Debt service Capital projects Insurance Audit Social Security IMRF Museum Special recreation ,319 Unrestricted Assigned Recreation - 194,168 - Unassigned (deficit) 958, Total fund balances (deficit) 1,010, , ,319 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 2,158,119 $ 753,958 $ 1,048,

32 Nonmajor Total Golf Debt Capital Governmental Governmental Course Service Projects Funds Funds $ - $ 5,304 $ 1,585,959 $ 812,934 $ 4,353,802-1,168, ,439 3,555, ,012-2,458-29, ,326 $ 4,012 $ 1,173,880 $ 1,588,417 $ 1,463,373 $ 8,190,499 $ 8,347 $ - $ 18,837 $ 38,075 $ 172,720-10,461-52, , , , ,267-29,298 80, ,552-1,168, ,439 3,555,263-1,168, ,439 3,555,263 4,012-2,458-60,319-5, , ,556,661-1,556, , , ,200 5, , , , , , , , ,168 (217,267) - - (45,196) 696,264 (213,255) 5,304 1,559, ,453 4,158,684 $ 4,012 $ 1,173,880 $ 1,588,417 $ 1,463,373 $ 8,190,499 See accompanying notes to financial statements

33 RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION February 29, 2016 FUND BALANCES OF GOVERNMENTAL FUNDS $ 4,158,684 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 13,222,830 Unamortized loss on refunding is deferred and amortized on the statement of net position 16,740 Accrued interest on long-term liabilities is shown as a liability on the statement of net position (9,494) Differences between expected and actual experiences, assumption changes, net differences between projected and actual earnings, and contributions subsequent to the measurement date for the Illinois Municipal Retirement Fund are recognized as deferred outflows of resources on the statement of net position 900,456 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds General obligation bonds (2,180,000) Capital leases (77,829) Compensated absences (86,530) Net pension liability (2,318,164) Other postemployment benefit obligation (13,679) NET POSITION OF GOVERNMENTAL ACTIVITIES $ 13,613,014 See accompanying notes to financial statements

34 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended February 29, 2016 Special General Recreation Recreation REVENUES Taxes $ 1,185,923 $ 472,085 $ 184,536 Investment income 4, Rental income 107,439 84,675 - Charges for services 27, ,087 - Contributions Intergovernmental Miscellaneous 1,547 1,123 - Total revenues 1,326, , ,536 EXPENDITURES Current General government 1,336, Recreation - 860,109 98,615 Capital outlay ,113 Debt service Principal retirement Interest and fiscal charges Total expenditures 1,336, , ,728 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (9,306) 125,861 71,808 OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) - (26,196) - Bonds issued Total other financing sources (uses) - (26,196) - NET CHANGE IN FUND BALANCES (9,306) 99,665 71,808 FUND BALANCES (DEFICIT), MARCH 1 1,019,622 96, ,511 FUND BALANCES (DEFICIT), FEBRUARY 28 $ 1,010,316 $ 196,428 $ 868,

35 Nonmajor Total Golf Debt Capital Governmental Governmental Course Service Projects Funds Funds $ - $ 1,216,776 $ - $ 721,574 $ 3,780, , , , , , ,117 1,157, ,000-3, , , ,495 1,500 22, ,554 1,216, , ,478 5,467, , ,648 1,981, , ,027 2,168, ,847 7, ,465-1,505,000 24,107-1,529,107-70,273 3,789-74, ,789 1,575, , ,180 6,244,764 (53,235) (358,497) (616,661) 62,298 (777,732) - 357, , (331,196) - (357,392) - - 1,200,000-1,200, , ,804-1,200,000 (53,235) (1,105) 252,143 62, ,268 (160,020) 6,409 1,306, ,155 3,736,416 $ (213,255) $ 5,304 $ 1,559,119 $ 732,453 $ 4,158,684 See accompanying notes to financial statements

36 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended February 29, 2016 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 422,268 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures; however, they are capitalized and depreciated in the statement of activities 339,910 Depreciation on capital assets is reported as an expense in the statement of activities (657,923) Net book value of assets disposed is converted to gain on sale of capital assets in the statement of activities - The issuance of long-term debt is reported as an other financing source in governmental funds but as an increase of principal outstanding in the statement of activities (1,200,000) Governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities (5,580) The change in the Illinois Municipal Retirement Fund net pension liability is not a source or use of a financial resource (1,049,179) The change in deferred inflows and outflows of resources for the Illinois Municipal Retirement Fund is reported only in the statement of activities 857,303 The change in accrued interest payable in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds 1,534 The change in the compensated absences liability is reported as an expense on the statement of activities 4,516 The change in the other postemployment benefit liability is reported as an expense on the statement of activities (6,458) The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 1,529,107 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 235,498 See accompanying notes to financial statements

37 NOTES TO FINANCIAL STATEMENTS February 29, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the DeKalb Park District, DeKalb, Illinois (the District) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the District s accounting policies are described below. a. Reporting Entity The District is a body corporate and politic established under Illinois Compiled Statutes (ILCS). The District is considered to be a primary government as defined by GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and GASB Statement No. 61, The Financial Reporting Entity: Omnibus, since its board is separately elected and fiscally independent. In accordance with these pronouncements, the basic financial statements include all funds for which the District is financially accountable. The District participates with two other park districts in the organization known as Kishwaukee Special Recreation Association (KSRA). KSRA is governed by a board appointed by the three districts. The District levies property taxes in the Special Recreation Fund to provide for its share of the cost of the operations of KSRA. KSRA is considered to be a jointly governed organization of the three districts. During the fiscal year ended February 29, 2016, the District contributed $93,614 to KSRA. b. Fund Accounting The District uses funds to report on its financial position and changes in financial position. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into the following categories: governmental and proprietary

38 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Governmental funds are used to account for all or most of a government s general activities, including the collection and disbursement of restricted or assigned monies (special revenue funds), the funds committed, restricted or assigned for the acquisition or construction of capital assets (capital projects funds) and the funds committed, restricted or assigned for the servicing of governmental long-term debt (debt service funds). The General Fund (corporate) is used to account for all activities of the government not accounted for in some other fund. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the District (internal service funds). The District does not report any proprietary funds. c. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the District. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated on these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Contributions of land by developers under land/cash ordinances are reported as general revenues - contributions on the statement of activities. Separate financial statements are provided for governmental funds, proprietary funds and, if applicable, fiduciary funds. Major individual governmental funds are reported as separate columns in the fund financial statements

39 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) The District reports the following major governmental funds: The General Fund is the general operating fund of the District. It is used to account for all financial resources traditionally associated with the District which are not accounted for in another fund. The Recreation Fund is used to account for the operations of the recreation fund. Financing is provided by a specific property tax levy to the extent user charges are not sufficient to provide such financing. The Special Recreation Fund is used to account for restricted revenues derived from a specific annual tax levy and expenditures in connection with the operations of KSRA. The Golf Course Fund accounts for the operations and maintenance of two golf courses. Operations include golf activities, food sales and the sale of related merchandise. The Debt Service Fund is used to account for the accumulation of restricted resources and payments of general obligation bond principal and interest. The Capital Projects Fund is used to account for the acquisition and construction of major capital facilities. d. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and all liabilities associated with the operation of these activities/funds are included on the statement of net position. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues and expenses are directly attributable to the operation of the proprietary funds. Non-operating revenue/expenses are incidental to the operations of these funds

40 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period (60 days). The District recognizes property taxes when they become both measurable and available in the year intended to finance. Expenditures are recorded when the related liability is incurred. Principal and interest on general long-term debt are recorded as expenditures become due. Those revenues susceptible to accrual are property taxes, interest revenue and charges for services. The District reports unavailable/deferred/unearned revenue on its financial statements. Unavailable/deferred/unearned revenues arise when potential revenue does not meet both the measurable and available criteria for recognition in the current period for governmental funds or earned at the government-wide level. Unavailable/deferred/unearned revenues also arise when resources are received by the government before it has legal claim to them as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when revenue recognition criteria are met, or when the government has a legal claim to the resources by meeting all eligibility requirements, the liability/deferred inflow for unavailable/deferred/unearned revenue is removed from the financial statements and revenue is recognized. e. Cash and Cash Equivalents For purposes of the statement of cash flows, the District s proprietary funds consider their equity in pooled cash and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. f. Investments The District s investments are recorded at fair value, except for non-negotiable certificates of deposits and investments with a maturity less than one year when purchased, which are reported at cost or amortized cost. Fair value is based on published market prices as of February 29,

41 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g. Prepaid Items/Expenses Certain payments to vendors reflect costs applicable to future accounting periods, and are recorded as prepaid items/expenses, if any using the consumption method. Such amounts are offset by nonspendable fund balance in the governmental fund financial statements. h. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., bike trails, paths and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are reported at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Years Machinery and equipment 5 Land improvements 15 Buildings and improvements Vehicles 10 i. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities financial statements. Bond premiums and discounts, as well as gains/losses on refunding, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as expenses

42 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i. Long-Term Obligations (Continued) In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. j. Accrued Compensated Absences Accumulated unpaid vacation pay is accrued by the District in the governmental activities on the statement of net position. The liability for accumulated unpaid vacation pay is based upon accumulated days at February 29, 2016, times the current pay rate (including certain benefits) for each employee. The District s policy is that vacation time must be used within one year. Sick time is paid out to employees who retire, and at 50% of the accumulated value. The District accrued sick time for any employees that were eligible for retirement at February 29, k. Property Taxes The District s property taxes are required to be levied by ordinance. A certified copy of the levy ordinance must be filed with the county clerk no later than the last Tuesday in December of each year. Taxes are due and collectible one-half in June and one-half in September of the following year. Property taxes attach as an enforceable lien on property as of January 1. Property taxes which have been levied but are not due before the end of the fiscal year are recorded as receivable. The entire receivable is offset by deferred inflows of resources as they are intended to finance the subsequent fiscal year. The provision for uncollectible taxes is computed based upon 5% of the total current levy as extended. The District s policy is to write off the uncollected taxes receivable of prior years. l. Net Position/Fund Balance In the fund financial statements, governmental funds report nonspendable fund balance for amounts that are either not in spendable form or legally or contractually required to be maintained intact. Restrictions of fund balance are reported for amounts constrained by legal restrictions from outside parties for use for a specific purpose or externally imposed by outside entities. None of the restricted fund balance result from enabling legislation adopted by the District. Net investment in capital assets represents the District s investments in the book value of capital assets, less any outstanding debt that was issued to construct or acquire the capital asset. Committed fund balance is

43 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l. Net Position/Fund Balance (Continued) constrained by formal actions of the District s Board of Commissioners, which is considered the District s highest level of decision-making authority. Formal actions include ordinances approved by the Board of Commissioners. Assigned fund balance represents amounts constrained by the District s intent to use them for a specific purpose. The authority to assign fund balance has been delegated to the District s executive director through the approved fund balance policy of the District. Any residual fund balance in the General Fund is reported as unassigned. Deficit fund balances in any other governmental fund is also reported as unassigned. The District has adopted targeted fund balances for several of its funds. The General Fund has a targeted fund balance of 25% to 50% of annual budgeted expenditures. The Recreation Fund has a targeted fund balance of 10% to 25% of annual operating expenditures. The Insurance, Audit, Social Security, IMRF, Museum and Special Recreation Funds all have a targeted fund balance of 10% to 25% of annual operating expenditures. The District s flow of funds assumptions prescribes that the funds with the highest level of constraint are expended first. If restricted or unrestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels of unrestricted funds are available for spending, the District considers committed funds to be expended first, followed by assigned, and then unassigned funds. The Debt Service and Capital Projects Fund s fund balances are restricted due to the origins of the fund balance. The remaining fund s restriction of fund balance is based on the origins of fund balance. m. Interfund Transactions Reciprocal interfund transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers

44 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n. Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds (i.e., the current portion of interfund loans) or advances to/from other funds (i.e., the noncurrent portion of interfund loans). o. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. p. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2. DEPOSITS AND INVESTMENTS Illinois Compiled Statutes (ILCS) authorizes the District to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States Government or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services and Illinois Funds

45 NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) In addition, the District s Board of Commissioners has adopted an investment policy which provides further restrictions on the investment of district funds. It is the policy of the District to invest its funds in a manner which will minimize credit and market risks yet maintain competitive interest yields. Because the District is a community tax supported agency, it also strives to invest in banks and savings and loan institutions which reside within the District. Deposits at any single institution at any one time shall not exceed $250,000 unless there is a perfected pledge of United States Government securities. Repurchase agreements tied to securities of the United States Government may be considered as an appropriate pledge. All pledged securities of the United States Government must be held with a third party bank or savings and loan and acknowledgement of the holding must be provided to the District by the third party. a. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the District s deposits may not be returned to it. All of the District s deposits were insured or collateralized at February 29, b. Investments Interest rate risk is the risk that change in interest rates will adversely affect the fair value of an investment. The District s investment policy does not specifically address interest rate risk and does not strictly limit the maximum maturity lengths of investments. Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The District limits this risk by investing in money market mutual funds which, in turn, are invested in obligations guaranteed by the United States Government. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the District will not be able to recover the value of its investments that are in possession of an outside party. The money market mutual fund is not subject to custodial credit risk. The District s investment policy is silent on custodial credit risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the District s investment in a single issuer. The District s investment policy does not address concentration of credit risk. The District s investment policy does not specifically prohibit the use of or the investment in derivatives

46 NOTES TO FINANCIAL STATEMENTS (Continued) 3. PROPERTY TAX CALENDAR The following information gives significant dates on the property tax calendar of the District. - The property tax lien date is January 1; - The annual tax levy ordinance for 2015 was passed December 17, 2015; - Property taxes are due to the County Collector in two installments, June 1 and September 1; and - Property taxes for 2015 are normally received monthly beginning in June 2016 and generally ending by November The 2015 taxes are intended to finance the 2017 fiscal year and are not considered available for current operations and are, therefore, shown as deferred inflows of resources. The 2016 tax levy, which attached as an enforceable lien on property as of January 1, 2016, has not been recorded as a receivable as of February 29, 2016 as the tax has not yet been levied by the District and will not be levied until December 2016 and, therefore, the levy is not measurable at February 29, CAPITAL ASSETS Capital asset activity for the year ended February 29, 2016 was as follows: Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 6,624,907 $ - $ - $ 6,624,907 Total capital assets not being depreciated 6,624, ,624,907 Capital assets being depreciated Land improvements 3,310, ,337-3,422,228 Buildings and improvements 11,848,685 43,527-11,892,212 Vehicles 429, ,263 Equipment 2,347, ,046 (26,522) 2,506,464 Total capital assets being depreciated 17,936, ,910 (26,522) 18,250,167 Less accumulated depreciation for Land improvements 1,969, ,732-2,129,051 Buildings and improvements 6,788, ,874-7,149,258 Vehicles 313,304 22, ,309 Equipment 1,949, ,312 (26,522) 2,038,626 Total accumulated depreciation 11,020, ,923 (26,522) 11,652,244 Total capital assets being depreciated, net 6,915,936 (318,013) - 6,597,923 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 13,540,843 $ (318,013) $ - $ 13,222,

47 NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) Depreciation expense reported in government activities was $657,923 for the fiscal year ended February 29, Depreciation expense was charged to functions/programs of the District s governmental activities as follows: GOVERNMENTAL ACTIVITIES General Government $ 279,914 Recreation 378,009 TOTAL GOVERNMENTAL ACTIVITIES $ 657, LONG-TERM DEBT The following is a summary of changes in long-term debt for governmental activities for the year ended February 29, 2016: Beginning Balances Additions Reductions Ending Balances Current Portion Long-Term Portion GOVERNMENTAL ACTIVITIES General obligation bonds $ 2,485,000 $ 1,200,000 $ 1,505,000 $ 2,180,000 $ 1,515,000 $ 665,000 Capital lease payable 101,936-24,107 77,829 25,003 52,826 Compensated absences* 91,046 86,530 91,046 86,530 86,530 - Net pension liability* 1,268,985 1,049,179-2,318,164-2,318,164 Net OPEB obligation* 7,221 20,181 13,723 13,679-13,679 TOTAL GOVERNMENTAL ACTIVITIES $ 3,954,188 $ 2,355,890 $ 1,633,876 $ 4,676,202 $ 1,626,533 $ 3,049,669 *The General Fund and Recreation Fund have typically been used to liquidate these obligations. The net pension liability has been restated to retroactively record the net pension liability at the beginning of the year due to the implementation of GASB Statement No

48 NOTES TO FINANCIAL STATEMENTS (Continued) 5. LONG-TERM DEBT (Continued) Long-term debt for governmental activities at February 29, 2016 is comprised of the following: Park Bonds Total Outstanding Current Portion $3,180,000 Alternate Revenue Source Refunding Park Bonds, dated August 25, 2005 due in annual installments of $15,000 to $340,000 from February 1, 2006 to February 1, 2019 interest at 2.85% to 4.15% per annum. $ 980,000 $ 315,000 $600,000 General Obligation Limited Tax Park Bonds, Series 2015A and $600,000 General Obligation Limited Tax Park Bonds, Series 2015B, dated December 1, 2015 due in one payment on December 1, 2016, interest at 1.49% per annum. 1,200,000 1,200,000 TOTAL BONDS $ 2,180,000 $ 1,515,000 At February 29, 2016, $5,304 is available in the Debt Service Fund to service these bonds. The annual requirements to amortize the general obligation bonds outstanding as of February 29, 2016 are as follows: Year Ending General Obligation Bonds February 28, Principal Interest 2017 $ 1,515,000 $ 49, ,000 27, ,000 14,110 TOTAL $ 2,180,000 $ 90,677 Capital Leases The District leases golf carts through a capital lease. The original lease was for $128,653 and was entered into on May 22, The lease is payable in annual installments of $27,896 including interest at 3.8%. The cost of the assets acquired under the capital lease was $128,

49 NOTES TO FINANCIAL STATEMENTS (Continued) 5. LONG-TERM DEBT (Continued) Capital Leases (Continued) The annual requirements to amortize the capital leases outstanding as of February 29, 2016 are as follows: Year Ending Capital Leases February 28, Principal Interest 2017 $ 25,003 $ 2, ,932 1, , TOTAL $ 77,829 $ 4, INDIVIDUAL FUND DISCLOSURES a. Interfund Receivables/Payables Advances to/from other funds at February 29, 2016 is as follows: Advances To Other Funds Advances From Other Funds General Fund $ 30,939 $ - Recreation Fund 220,387 - Golf Fund - 208,920 Nonmajor Governmental (Hopkins Pool) - 42,406 TOTAL $ 251,326 $ 251,326 Advances to/from other funds are the result of: $30,939 and $220,387 in the General Fund and Recreation Fund are to eliminate negative cash balances in the Golf Course Fund and Hopkins Pool Fund. These are not expected to be repaid in one year

50 NOTES TO FINANCIAL STATEMENTS (Continued) 6. INDIVIDUAL FUND DISCLOSURES (Continued) b. Interfund Transfers Individual fund interfund transfers are as follows: Transfers In Transfers (Out) MAJOR GOVERNMENTAL FUNDS Capital Projects Fund $ - $ 331,196 Recreation Fund - 26,196 Debt Service Fund 357,392 - TOTAL $ 357,392 $ 357,392 The transfers resulted from: $331,196 transfer from the Capital Projects Fund to the Debt Service Fund for debt service payments on the 2005 Alternate Revenue Source Park Bonds. $26,196 transfer from the Recreation Fund to the Debt Service Fund for debt service payments on the 2005 Alternate Revenue Source Park Bonds. c. Deficit Fund Balance 7. INSURANCE The Golf Course Fund and the Hopkins Pool Fund had deficit fund balances of $213,255 and $45,196, respectively, as of February 29, The District is exposed to various risks related to torts; theft of, damage to and destruction of assets; errors and omissions; employee health; injuries to employees; and net income losses. The District purchases private insurance for its employee health risk. Since March 1, 2008, the District has been a member of the Park District Risk Management Agency (PDRMA) Property/Casualty Program, a joint risk management pool of park and forest preserve districts, and special recreation associations through which property, general liability, automobile liability, crime, boiler and machinery, public officials liability, employment practices liability, workers compensation, and pollution liability coverage is provided in excess of specified limits for the members, acting as a single insurable unit. Losses exceeding the per occurrence self-insured and reinsurance limit would be the responsibility of the District. The District is not aware of any additional amounts owed to PDRMA at February 29,

51 NOTES TO FINANCIAL STATEMENTS (Continued) 8. RETIREMENT FUND COMMITMENTS Illinois Municipal Retirement Fund The District s defined benefit pension plan, Illinois Municipal Retirement Fund (IMRF), provides retirement, disability, annual cost of living adjustments and death benefits to plan members and beneficiaries. IMRF is an agent multiple-employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole but not by individual employer. That report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois Plan Administration All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Plan Membership At December 31, 2015, IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 22 Inactive employees entitled to but not yet receiving benefits 11 Active employees 30 TOTAL

52 NOTES TO FINANCIAL STATEMENTS (Continued) 8. RETIREMENT FUND COMMITMENTS (Continued) Illinois Municipal Retirement Fund (Continued) Benefits Provided IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011 are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. Contributions Participating members are required to contribute 4.5% of their annual covered salary to IMRF. The District is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer contribution rate for the calendar year ended December 31, 2015 was 14.18% of covered payroll. Actuarial Assumptions The District s net pension liability was measured as of December 31, 2015 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of the same date using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2015 Actuarial cost method Entry-age normal Assumptions Price inflation 2.75% Salary increases 3.75% to 14.50% Interest rate 7.50% Asset valuation method Market value

53 NOTES TO FINANCIAL STATEMENTS (Continued) 8. RETIREMENT FUND COMMITMENTS (Continued) Illinois Municipal Retirement Fund (Continued) Actuarial Assumptions (Continued) For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Discount Rate The discount rate used to measure the total pension liability was 7.43%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the District contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the District s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments of 7.50% was blended with the index rate of 3.57% for tax exempt general obligation municipal bonds rated AA or better at December 31, 2015 to arrive at a discount rate of 7.43% used to determine the total pension liability. Changes in the Net Pension Liability (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability BALANCES AT JANUARY 1, 2015 $ 7,340,591 $ 6,071,606 $ 1,268,985 Changes for the period Service cost 184, ,353 Interest 545, ,572 Difference between expected and actual experience 611, ,

54 NOTES TO FINANCIAL STATEMENTS (Continued) 8. RETIREMENT FUND COMMITMENTS (Continued) Illinois Municipal Retirement Fund (Continued) Changes in the Net Pension Liability (Continued) (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability Changes for the period (Continued) Changes in assumptions $ 45,094 $ - $ 45,094 Employer contributions - 245,258 (245,258) Employee contributions - 107,075 (107,075) Net investment income - 30,593 (30,593) Benefit payments and refunds (258,523) (258,523) - Administrative expense Other (net transfer) - (45,674) 45,674 Net changes 1,127,908 78,729 1,049,179 BALANCES AT DECEMBER 31, 2015 $ 8,468,499 $ 6,150,335 $ 2,318,164 Changes in assumptions related to retirement age and mortality were made since the prior measurement date. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended February 29, 2016, the District recognized pension expense of $413,034. At February 29, 2016, the District reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 492,012 $ - Changes in assumption 36,288 - Net difference between projected and actual earnings on pension plan investments 341,266 - Employer contributions after the measurement date 30,890 - TOTAL $ 900,456 $

55 NOTES TO FINANCIAL STATEMENTS (Continued) 8. RETIREMENT FUND COMMITMENTS (Continued) Illinois Municipal Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: Year Ending February 28, 2017 $ 244, , , , ,476 Thereafter - TOTAL $ 900,456 Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the District calculated using the discount rate of 7.43% as well as what the District s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.43%) or 1 percentage point higher (8.43%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.43%) (7.43%) (8.43%) Net pension liability $ 3,554,244 $ 2,318,164 $ 1,304,

56 NOTES TO FINANCIAL STATEMENTS (Continued) 9. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the District provides postemployment health care benefits (OPEB) for retired employees through a single-employer defined benefit plan. The benefits, benefit levels, employee contributions and employer contributions are governed by the District and can be amended by the District through its personnel manual, except for the implicit subsidy which is governed by the State Legislature and ILCS. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the District s governmental activities. b. Benefits Provided The District provides continued health insurance coverage at the active employer rate to all eligible employees in accordance with ILCS, which creates an implicit subsidy of retiree health insurance. To be eligible for benefits, an employee must qualify for retirement under the District s retirement plan. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the retiree is no longer eligible to participate in the plan, but can purchase a Medicare supplement plan from the District s insurance provider. c. Membership At February 28, 2015, (most recent available) membership consisted of: Retirees and beneficiaries currently receiving benefits 1 Terminated employees entitled to benefits but not yet receiving them - Active employees - vested 2 Active employees - nonvested 15 TOTAL 18 Participating employers 1 d. Funding Policy The District is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the plan until retirement

57 NOTES TO FINANCIAL STATEMENTS (Continued) 9. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation The District had its first valuation completed as of February 28, 2015 as the retirees first entry into the plan began during that fiscal year. The District s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015 and 2016 is as follows: Fiscal Year Ended Annual OPEB Cost Employer Contributions Percentage of Annual OPEB Cost Contributed Net OPEB Obligation February 28, 2015 $ 19,522 $ 12, % $ 7,221 February 29, ,181 13, % 13,679 The net OPEB obligation as of February 29, 2016 was calculated as follows: Annual required contribution $ 20,303 Interest on net OPEB obligation 289 Adjustment to annual required contribution (411) Annual OPEB cost 20,181 Contributions made 13,723 Increase in net OPEB obligation 6,458 Net OPEB obligation, beginning of year 7,221 NET OPEB OBLIGATION, END OF YEAR $ 13,679 Funded Status and Funding Progress. The funded status of the plan as of February 28, 2015 (most recent valuation) was as follows: Actuarial accrued liability (AAL) $ 211,982 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 211,982 Funded ratio (actuarial value of plan assets/aal) 0.00% Covered payroll (active plan members) $ 1,004,934 UAAL as a percentage of covered payroll 21.09%

58 NOTES TO FINANCIAL STATEMENTS (Continued) 9. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions - Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the February 28, 2015, actuarial valuation, the entry-age actuarial cost method was used. The actuarial assumptions included a discount rate of 4.0% and an initial healthcare cost trend rate of 7.9% with an ultimate healthcare inflation rate of 5.0%. Both rates include a 3.0% inflation assumption. The actuarial value of assets was not determined as the District has not advance funded its obligation. The plan s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at February 28, 2015 was 30 years

59 NOTES TO FINANCIAL STATEMENTS (Continued) 10. CHANGE IN ACCOUNTING PRINCIPLE With the implementation of GASB Statement No. 68, the District is required to retroactively record the net pension liability and related deferred outflows. The District recorded the following change in accounting principle during the year ended February 29, 2016: CHANGE IN ACCOUNTING PRINCIPLE - GOVERNMENTAL ACTIVITIES Increase (Decrease) Change in accounting principle To record the IMRF net pension liability $ (1,268,985) To record the IMRF deferred outflows 43,153 TOTAL CHANGE IN ACCOUNTING PRINCIPLE - GOVERNMENTAL ACTIVITIES $ (1,225,832)

60 REQUIRED SUPPLEMENTARY INFORMATION

61 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 1,062,000 $ 1,081,187 $ 19,187 Illinois personal property replacement taxes 85, ,736 19,736 Rental income 109, ,439 (2,261) Sales 28,000 27,653 (347) Investment income 3,800 4, Miscellaneous - 1,547 1,547 Total revenues 1,288,500 1,326,997 38,497 EXPENDITURES Current General government Salaries 946, ,330 (67,158) Administration 271, ,765 (24,929) Commodities 22,250 21,267 (983) Contractual and legal services 80,170 98,852 18,682 Maintenance and operations 181, ,988 (26,912) Utilities 60,228 72,212 11,984 Landscaping 7,850 7,661 (189) Less salary and administrative fees reimbursed by the Recreation Fund (135,600) (144,772) (9,172) Total expenditures 1,434,980 1,336,303 (98,677) NET CHANGE IN FUND BALANCE $ (146,480) (9,306) $ 137,174 FUND BALANCE, MARCH 1 1,019,622 FUND BALANCE, FEBRUARY 29 $ 1,010,316 (See independent auditor's report.)

62 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL RECREATION FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 463,500 $ 472,085 $ 8,585 Rentals 84,150 84, Sales 2,450 3, Program fees 530, ,793 (105,886) Miscellaneous 100 1,123 1,023 Total revenues 1,080, ,970 (94,909) EXPENDITURES Current Recreation Salaries 453, , Utilities 85,018 64,502 (20,516) Maintenance and operations 88,139 78,788 (9,351) Administration 70,393 64,364 (6,029) Programs 258, ,997 (60,517) Sales Total expenditures 955, ,109 (95,799) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 124, , OTHER FINANCING SOURCES (USES) Transfers (out) (26,196) (26,196) - NET CHANGE IN FUND BALANCE $ 98,775 99,665 $ 890 FUND BALANCE, MARCH 1 96,763 FUND BALANCE, FEBRUARY 29 $ 196,428 (See independent auditor's report.)

63 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL RECREATION FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 182,000 $ 184,536 $ 2,536 Total revenues 182, ,536 2,536 EXPENDITURES Recreation Salaries 5,000 5,000 - Program reimbursement 121,000 93,615 (27,385) Capital outlay Capital improvements 100,400 14,113 (86,287) Total expenditures 226, ,728 (113,672) NET CHANGE IN FUND BALANCE $ (44,400) 71,808 $ 116,208 FUND BALANCE, MARCH 1 796,511 FUND BALANCE, FEBRUARY 29 $ 868,319 (See independent auditor's report.)

64 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GOLF COURSE FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Rental income $ 145,660 $ 137,807 $ (7,853) Charges for services - recreation 434, ,185 (64,789) Charges for services - sales 149, ,562 (13,309) Total revenues 730, ,554 (85,951) EXPENDITURES Recreation Salaries 414, ,318 (771) Utilities 44,315 39,093 (5,222) Sales 85,611 84,223 (1,388) Administration 21,650 28,141 6,491 Maintenance and operations 164, ,014 (31,826) Total expenditures 730, ,789 (32,716) NET CHANGE IN FUND BALANCE $ - (53,235) $ (53,235) FUND BALANCE (DEFICIT), MARCH 1 (160,020) FUND BALANCE (DEFICIT), FEBRUARY 29 $ (213,255) (See independent auditor's report.)

65 SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND February 29, Actuarially determined contribution $ 233,421 Contributions in relation to the actuarially determined contribution 233,421 CONTRIBUTION DEFICIENCY (Excess) $ - Covered-employee payroll $ 1,729,311 Contributions as a percentage of covered-employee payroll 13.50% Notes to Required Supplementary Information The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year. Additional information as of the latest actuarial valuation presented is as follows: the actuarial cost method was entry-age normal; the amortization method was level percent of pay, closed and the amortization period was 28 years; the asset valuation method was 5-year smoothed market; and the significant actuarial assumptions were an investment rate of return at 7.5% annually, projected salary increases assumption of 4.4% to 16.0% compounded annually and postretirement benefit increases of 3.0% compounded annually. (See independent auditor's report.)

66 DEKALB GROVE PARK DISTRICT DEKALB, ILLLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFIT PLAN February 29, 2016 Annual Required Employer Contribution Percentage Fiscal Year Contributions (ARC) Contributed 2015 $ 12,301 $ 19, % ,723 20, % Note: The District had its first actuarial valuation at February 28, (See independent auditor's report.)

67 SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS ILLINOIS MUNICIPAL RETIREMENT FUND February 29, TOTAL PENSION LIABILITY Service cost $ 184,353 Interest 545,572 Changes of benefit terms - Differences between expected and actual experience 611,412 Changes of assumptions 45,094 Benefit payments, including refunds of member contributions (258,523) Net change in total pension liability 1,127,908 Total pension liability - beginning 7,340,591 TOTAL PENSION LIABILITY - ENDING $ 8,468,499 PLAN FIDUCIARY NET POSITION Contributions - employer $ 245,258 Contributions - member 107,075 Net investment income 30,593 Benefit payments, including refunds of member contributions (258,523) Other (45,674) Net change in plan fiduciary net position 78,729 Plan net position - beginning 6,071,606 PLAN NET POSITION - ENDING $ 6,150,335 EMPLOYER'S NET PENSION LIABILITY $ 2,318,164 Plan fiduciary net position as a percentage of the total pension liability 72.63% Covered-employee payroll $ 1,729,311 Employer's net pension liability as a percentage of covered-employee payroll % NOTE: Changes in assumptions related to retirement age and mortality were made since the prior measurement date. Also, this schedule is for the plan year ended December 31, (See independent auditor's report.)

68 SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFIT PLAN February 29, 2016 (2) UAAL Actuarial (4) as a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll April 30, Assets Entry-Age (1) / (2) (2) - (1) Payroll (4) / (5) 2015 $ - $ 211, % $ 211,982 $ 1,004, % 2016 N/A N/A N/A N/A N/A N/A Note: The District had its first actuarial valuation at February 28, No valuation was performed at February 29, A valuation is only required for the District every three years per GASB Statement No. 54 (See independent auditor's report.)

69 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION February 29, 2016 BUDGETS AND BUDGETARY ACCOUNTING The budget numbers included in the financial statements represent the original and amended numbers officially appropriated by the District for governmental funds and have been prepared on the modified accrual basis of accounting. Expenditures may not legally exceed budgeted appropriations at the object level. The budget may be amended by the Board of Commissioners by supplemental appropriation ordinance or by transferring between object items. A supplemental appropriation was approved by the Board of Commissioners in the current year. All annual appropriations lapse at fiscal year end. The District follows these procedures in establishing the budgetary data reflected in the required supplementary information. 1. At the January board meeting, the Director submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing the following March 1. The operating budget includes proposed expenditures and the means of financing them. 2. An executive budget work session is conducted at the District administrative office. 3. A public hearing is conducted at the District administrative office at the regularly scheduled March board meeting to obtain taxpayer comments. 4. At the regularly scheduled March board meeting, the budget is legally enacted through passage of an ordinance. 5. Once adopted, the Board of Commissioners can make transfers between objects within any fund up to 10% of the total appropriation of that fund. 6. Formal budgets are adopted and budgetary integration is employed as a management control device, at the object level, during the year for the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Fund

70 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

71 MAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUND Debt Service Fund - to account for the accumulation of restricted resources and payments of general obligation bond principal and interest. CAPITAL PROJECTS FUND Capital Projects Fund - to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

72 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 1,220,000 $ 1,216,776 $ (3,224) Total revenues 1,220,000 1,216,776 (3,224) EXPENDITURES Debt service Principal retirement 1,505,000 1,505,000 - Interest and fiscal charges 70,273 70,273 - Total expenditures 1,575,273 1,575,273 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (355,273) (358,497) (3,224) OTHER FINANCING SOURCES (USES) Transfers in 357, ,392 - Total other financing sources (uses) 357, ,392 - NET CHANGE IN FUND BALANCE $ 2,119 (1,105) $ (3,224) FUND BALANCE, MARCH 1 6,409 FUND BALANCE, FEBRUARY 29 $ 5,304 (See independent auditor's report.)

73 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL PROJECTS FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Intergovernmental grants $ 310,000 $ 152,226 $ (157,774) Donations - 3,000 3,000 Miscellaneous 300,000 18,495 (281,505) Total revenues 610, ,721 (436,279) EXPENDITURES Current General government Salaries 237, ,484 (5) Administration 43,257 33,040 (10,217) Utilities 2, (1,642) Maintenance and operations 17,000 14,323 (2,677) Bond issuance costs 10,000 6,885 (3,115) Capital outlay Equipment 62, ,194 73,184 Facilities improvement projects 1,479, ,499 (1,210,569) Park development projects 521,012 66,154 (454,858) Debt service Principal - 24,107 24,107 Interest - 3,789 3,789 Total expenditures 2,372, ,382 (1,582,003) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,762,385) (616,661) 1,145,724 OTHER FINANCING SOURCES (USES) Bonds issued 1,200,000 1,200,000 - Transfers (out) - Debt Service Fund (331,196) (331,196) - Total other financing sources (uses) 868, ,804 - NET CHANGE IN FUND BALANCE $ (893,581) 252,143 $ 1,145,724 FUND BALANCES, MARCH 1 1,306,976 FUND BALANCE, FEBRUARY 29 $ 1,559,119 (See independent auditor's report.)

74 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Insurance Fund - to account for restricted revenues derived from a specific annual property tax levy and expenditures for tort and workers compensation insurance of the District. Audit Fund - to account for restricted revenues derived from a specific annual property tax levy and expenditures of these monies for the annual audit of the District. Social Security Fund - to account for restricted revenues derived from a specific annual property tax levy and expenditures for the District s share of Social Security contributions. Illinois Municipal Retirement Fund (IMRF) - to account for restricted revenues derived from a specific annual property tax levy and employee contributions which are fixed by law and subsequently paid to the state-sponsored Illinois Municipal Retirement Fund. Museum Fund - to account for restricted revenues derived from a specific annual property tax levy and expenditures of these monies for the maintenance and operations of the museum. Hopkins Pool Fund - to account for committed revenues from user fees and expenditures for the operation and maintenance of the outdoor swimming facilities and the rental of the community center facilities.

75 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS February 29, 2016 Special Revenue Insurance Audit ASSETS Cash and investments $ 152,557 $ 7,450 Property taxes receivable (net, where applicable, of allowances for uncollectibles) 135,921 22,333 TOTAL ASSETS $ 288,478 $ 29,783 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 128 $ 2,250 Advance from other funds - - Total liabilities 128 2,250 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 135,921 22,333 Total deferred inflows of resources 135,921 22,333 FUND BALANCES (DEFICIT) Restricted Insurance 152,429 - Audit - 5,200 Social Security - - IMRF - - Museum - - Unassigned (deficit) - - Total fund balances (deficit) 152,429 5,200 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCE AND FUND BALANCES $ 288,478 $ 29,

76 Special Revenue Social Hopkins Security IMRF Museum Pool Total $ 204,409 $ 145,430 $ 303,088 $ - $ 812, , , , ,439 $ 325,099 $ 395,297 $ 424,716 $ - $ 1,463,373 $ 4,857 $ 20,577 $ 7,473 $ 2,790 $ 38, ,406 42,406 4,857 20,577 7,473 45,196 80, , , , , , , , , , , , , , , , , (45,196) (45,196) 199, , ,615 (45,196) 732,453 $ 325,099 $ 395,297 $ 424,716 $ - $ 1,463,373 (See independent auditor's report.)

77 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended February 29, 2016 Special Revenue Insurance Audit REVENUES Property taxes $ 162,111 $ 23,068 Rental income - - Charges for services - - Miscellaneous 1,500 - Total revenues 163,611 23,068 EXPENDITURES Current General government 129,444 23,590 Recreation - - Capital outlay - - Total expenditures 129,444 23,590 NET CHANGE IN FUND BALANCE 34,167 (522) FUND BALANCES (DEFICIT), MARCH 1 118,262 5,722 FUND BALANCES (DEFICIT), FEBRUARY 29 $ 152,429 $ 5,

78 Special Revenue Social Hopkins Security IMRF Museum Pool Total $ 149,149 $ 246,953 $ 140,293 $ - $ 721, , , , , , , , , , ,478 81, , ,648 79, ,450 90, , , ,505-7, , ,421 97, , ,180 (12,392) 13,532 58,400 (30,887) 62, , , ,215 (14,309) 670,155 $ 199,552 $ 124,853 $ 295,615 $ (45,196) $ 732,453 (See independent auditor's report.)

79 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INSURANCE FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 159,000 $ 162,111 $ 3,111 Miscellaneous - 1,500 1,500 Total revenues 159, ,611 4,611 EXPENDITURES General government Administration 10,000 3,526 (6,474) Insurance premiums 139, ,037 (22,213) Salaries and wages 5,500 5,500 - Contractual services 11,050 3,381 (7,669) Total expenditures 165, ,444 (36,356) NET CHANGE IN FUND BALANCE $ (6,800) 34,167 $ 40,967 FUND BALANCE, MARCH 1 118,262 FUND BALANCE, FEBRUARY 29 $ 152,429 (See independent auditor's report.)

80 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL AUDIT FUND For the Year Ended February 29, 2016 Variance Original Final Over Budget Budget Actual (Under) REVENUES Property taxes $ 24,000 $ 24,000 $ 23,068 $ (932) Total revenues 24,000 24,000 23,068 (932) EXPENDITURES General government Salaries 3,000 3,000 3,000 - Audit supplies and postage (500) Audit fees 18,500 20,750 20,590 (160) Total expenditures 22,000 24,250 23,590 (660) NET CHANGE IN FUND BALANCE $ 2,000 $ (250) (522) $ (272) FUND BALANCE, MARCH 1 5,722 FUND BALANCE, FEBRUARY 29 $ 5,200 (See independent auditor's report.)

81 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SOCIAL SECURITY FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 146,500 $ 149,149 $ 2,649 Total revenues 146, ,149 2,649 EXPENDITURES General government Employer contributions 86,423 81,643 (4,780) Recreation Employer contributions 84,577 79,898 (4,679) Total expenditures 171, ,541 (9,459) NET CHANGE IN FUND BALANCE $ (24,500) (12,392) $ 12,108 FUND BALANCE, MARCH 1 211,944 FUND BALANCE, FEBRUARY 29 $ 199,552 (See independent auditor's report.)

82 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ILLINOIS MUNICIPAL RETIREMENT FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 242,500 $ 246,953 $ 4,453 Total revenues 242, ,953 4,453 EXPENDITURES General government Employer contributions 121, ,971 (3,325) Recreation Employer contributions 118, ,450 (3,254) Total expenditures 240, ,421 (6,579) NET CHANGE IN FUND BALANCE $ 2,500 13,532 $ 11,032 FUND BALANCE, MARCH 1 111,321 FUND BALANCE, FEBRUARY 29 $ 124,853 (See independent auditor's report.)

83 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MUSEUM FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Property taxes $ 137,800 $ 140,293 $ 2,493 Rental income 16,500 15,805 (695) Intergovernmental grants 101,400 - (101,400) Miscellaneous 10,000 - (10,000) Total revenues 265, ,098 (109,602) EXPENDITURES Recreation Salaries and wages 53,700 33,326 (20,374) Utilities 37,580 31,324 (6,256) Maintenance and operations 44,350 20,667 (23,683) Contractual services 5,480 4,876 (604) Capital outlay Facilities improvement projects 37,500 7,505 (29,995) Park development projects 101,400 - (101,400) Total expenditures 280,010 97,698 (182,312) NET CHANGE IN FUND BALANCE $ (14,310) 58,400 $ 72,710 FUND BALANCE, MARCH 1 237,215 FUND BALANCE, FEBRUARY 29 $ 295,615 (See independent auditor's report.)

84 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOPKINS POOL FUND For the Year Ended February 29, 2016 Variance Original and Over Final Budget Actual (Under) REVENUES Rental income $ 500 $ 482 $ (18) Charges for services - recreation 230, ,823 (37,412) Charges for services - sales 1,500 2, Total revenues 232, ,599 (36,636) EXPENDITURES Recreation Salaries 160, ,434 (7,839) Utilities 37,700 33,733 (3,967) Sales Administration 7,885 6,657 (1,228) Maintenance and operations 36,000 20,185 (15,815) Program expenditures 15,784 13,409 (2,375) Total expenditures 257, ,486 (31,156) NET CHANGE IN FUND BALANCE $ (25,407) (30,887) $ (5,480) FUND BALANCE (DEFICIT), MARCH 1 (14,309) FUND BALANCE (DEFICIT), FEBRUARY 29 $ (45,196) (See independent auditor's report.)

85 STATISTICAL SECTION This part of the DeKalb Park District s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information displays about the District s overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the District s financial performance and well-being have been changed over time Revenue Capacity These schedules contain information to help the reader assess the District s most significant local revenue source, the property tax Debt Capacity These schedules present information to help the reader assess the affordability of the District s current levels of outstanding debt and the District s ability to issue additional debt in the future Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the District s financial activities take place Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the District s financial report relates to the services the District provides and the activities it performs Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

86 NET POSITION BY COMPONENT Last Ten Fiscal Years Fiscal Year GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 5,846,646 $ 5,895,551 $ 6,257,735 Restricted 1,080,145 1,189,431 1,347,683 Unrestricted 476, , ,316 TOTAL GOVERNMENTAL ACTIVITIES $ 7,403,780 $ 7,651,930 $ 8,215,734 BUSINESS-TYPE ACTIVITIES Net investment in capital assets $ 3,834,075 $ 3,774,501 $ 3,665,528 Restricted Unrestricted (208,140) (122,696) (184,376) TOTAL BUSINESS-TYPE ACTIVITIES $ 3,625,935 $ 3,651,805 $ 3,481,152 PRIMARY GOVERNMENT Net investment in capital assets $ 9,680,721 $ 9,670,052 $ 9,923,263 Restricted 1,080,145 1,189,431 1,347,683 Unrestricted 268, , ,940 TOTAL PRIMARY GOVERNMENT $ 11,029,715 $ 11,303,735 $ 11,696,886 Note: The Golf Course Fund and Hopkins Pool Fund were changed from enterprise funds to governmental funds as of March 1, Data Source Audited Financial Statements

87 $ 6,899,200 $ 7,833,401 $ 8,212,257 $ 8,573,255 $ 8,976,019 $ 12,052,013 $ 12,540,860 1,578, ,427 1,069,735 1,325,283 1,434,922 1,487,385 1,651, , , , ,605 1,037,399 1,063,950 (579,118) $ 9,195,652 $ 9,530,138 $ 10,136,271 $ 10,830,143 $ 11,448,340 $ 14,603,348 $ 13,613,014 $ 3,135,502 $ 3,050,574 $ 3,033,331 $ 3,046,738 $ 3,021,303 $ - $ (141,441) (124,063) (101,912) (91,353) (145,133) - - $ 2,994,061 $ 2,926,511 $ 2,931,419 $ 2,955,385 $ 2,876,170 $ - $ - $ 10,034,702 $ 10,883,975 $ 11,245,588 $ 11,619,993 $ 11,997,322 $ 12,052,013 $ 12,540,860 1,578, ,427 1,069,735 1,325,283 1,434,922 1,487,385 1,651, , , , , ,266 1,063,950 (579,118) $ 12,189,713 $ 12,456,649 $ 13,067,690 $ 13,785,528 $ 14,324,510 $ 14,603,348 $ 13,613,

88 CHANGE IN NET POSITION Last Ten Fiscal Years Fiscal Year EXPENSES Governmental activities General government $ 1,439,234 $ 1,545,843 $ 1,805,773 Recreation 2,062,604 2,210,929 1,849,567 Interest 186, , ,944 Total governmental activities expenses 3,688,226 3,938,300 3,818,284 Business-type activities Golf Course 1,007, , ,045 Hopkins Pool 377, , ,837 Total business-type activities expenses 1,384,794 1,371,655 1,432,882 TOTAL PRIMARY GOVERNMENT EXPENSES $ 5,073,020 $ 5,309,955 $ 5,251,166 PROGRAM REVENUES Governmental activities Charges for services General government $ 15,950 $ 20,850 $ 18,975 Recreation 634, , ,082 Operating grants and contributions 4,969 35,664 21,915 Capital grants and contributions 2,500-1,000 Total governmental activities program revenues 657, , ,972 Business-type activities Charges for services Golf Course 937, , ,726 Hopkins Pool 311, , ,896 Operating grants and contributions - 42,286 14,872 Capital grants and contributions 193, ,726 36,735 Total business-type activities program revenues 1,442,746 1,397,525 1,262,229 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES $ 2,100,263 $ 2,244,382 $ 2,212,

89 $ 1,959,806 $ 1,899,913 $ 2,204,319 $ 2,202,451 $ 2,218,400 $ 2,243,839 $ 2,366,151 1,845,774 1,922,012 1,559,816 1,649,239 1,801,533 2,844,922 2,787, , , , ,587 92,520 89,424 78,106 3,962,276 3,969,887 3,884,817 3,959,277 4,112,453 5,178,185 5,231, , , , , , , , , , , ,137,047 1,105,922 1,033,949 1,120,915 1,076, $ 5,099,323 $ 5,075,809 $ 4,918,766 $ 5,080,192 $ 5,188,882 $ 5,178,185 $ 5,231,530 $ 111,146 $ 119,373 $ 118,439 $ 112,489 $ 121,049 $ 124,104 $ 135, , , , , ,933 1,453,820 1,368,718 1,921 2,658 12,968-1,410 1,116 1,116 88,350 70,731 70, , ,037 7,982 9,000 1,100, , , , ,429 1,587,022 1,513, , , , , , , , , , , ,162 16,580 71, ,004 91, ,112,713 1,038,372 1,038,857 1,144, , $ 2,212,797 $ 1,826,840 $ 1,843,678 $ 2,085,207 $ 1,875,643 $ 1,587,022 $ 1,513,

90 CHANGE IN NET POSITION (Continued) Last Ten Fiscal Years Fiscal Year NET REVENUE (EXPENSE) Governmental activities $ (3,030,709) $ (3,091,443) $ (2,868,312) Business-type activities 57,952 25,870 (170,653) TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE) $ (2,972,757) $ (3,065,573) $ (3,038,965) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities Taxes Property $ 2,973,747 $ 3,109,052 $ 3,211,629 Replacement 104, , ,586 TIF Income - Unrestricted Investment income 69,595 89,739 47,092 Gain on sale of capital assets Contributions 5, Miscellaneous 79,537 13,792 7,109 Transfers in Total governmental activities 3,233,076 3,339,593 3,383,416 Business-type activities Transfers (out) Total business-type activities TOTAL PRIMARY GOVERNMENT $ 3,233,076 $ 3,339,593 $ 3,383,416 CHANGE IN NET POSITION Governmental activities $ 202,367 $ 248,150 $ 515,104 Business-type activities 57,952 25,870 (170,653) TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION $ 260,319 $ 274,020 $ 344,451 Note: The Golf Course Fund and Hopkins Pool Fund were changed from enterprise funds to governmental funds as of March 1, Data Source Audited Financial Statements

91 $ (2,862,192) $ (3,181,419) $ (3,079,996) $ (3,018,951) $ (3,234,024) $ (3,591,163) $ (3,717,604) (24,334) (67,550) 4,908 23,966 (79,215) - - $ (2,886,526) $ (3,248,969) $ (3,075,088) $ (2,994,985) $ (3,313,239) $ (3,591,163) $ (3,717,604) $ 3,245,177 $ 3,387,892 $ 3,363,701 $ 3,439,704 $ 3,541,145 $ 3,605,301 $ 3,676, , , ,890 98, , , , , , , , ,226 16,179 11,567 6,831 4,944 4,041 4,328 4, , ,373 7,636 30,224 24,428 15,911 1,519 21, , ,876,170-3,842,110 3,515,905 3,686,129 3,748,379 3,852,221 6,746,171 3,953,102 (462,757) (2,876,170) - (462,757) (2,876,170) - $ 3,379,353 $ 3,515,905 $ 3,686,129 $ 3,748,379 $ 3,852,221 $ 3,870,001 $ 3,953,102 $ 979,918 $ 334,486 $ 606,133 $ 729,428 $ 618,197 $ 3,155,008 $ 235,498 (487,091) (67,550) 4,908 23,966 (79,215) (2,876,170) - $ 492,827 $ 266,936 $ 611,041 $ 753,394 $ 538,982 $ 278,838 $ 235,

92 FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year GENERAL FUND Nonspendable $ 20,866 $ 22,875 $ 6,542 Unassigned 339, , ,930 TOTAL GENERAL FUND $ 360,561 $ 440,955 $ 554,472 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ 2,572 $ 2,862 $ 1,810 Restricted Special recreation 198, , ,784 Golf Course* Debt service 55,645 39,027 37,852 Capital projects 718, , ,276 Insurance Audit 5,999 5,346 4,089 Social Security 15,323 34,364 51,245 IMRF - 7,982 11,913 Museum 85, , ,321 Assigned Recreation 74,210 99,931 99,631 Unassigned Golf Course* Hopkins Pool* TOTAL ALL OTHER GOVERNMENTAL FUNDS $ 1,156,927 $ 1,292,224 $ 1,447,921 * The Golf Course Fund and Hopkins Pool funds were changed from enterprise funds to governmental funds as of March 1, Data Source Audited Financial Statements

93 $ 10,539 $ - $ 14,637 $ - $ 10,554 $ 13,085 $ 20, , , , , ,207 1,006, ,727 $ 659,869 $ 822,494 $ 812,259 $ 884,786 $ 957,761 $ 1,019,622 $ 979,377 $ 2,651 $ - $ 21,800 $ - $ 4,390 $ 4,006 $ 4, , , , , , , , ,012 7,194 12,927 13,496 13,022 4,125 6,410 5, ,688 1,153,548 1,476,121 1,601,604 1,073,405 1,305,056 1,556, ,403 74,783 66, , ,429 3,117 4,298 6,901 6,134 4,821 5,722 5,200 74, , , , , , ,552 15,279 14,320 17,646 70, , , , , , , , , , ,615 91,637 82,762 91, , ,157 94, , (160,092) (217,267) (14,308) (45,196) $ 1,672,463 $ 2,065,737 $ 2,659,454 $ 3,046,920 $ 2,669,874 $ 2,716,796 $ 3,148,

94 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year REVENUES Taxes $ 3,078,106 $ 3,236,062 $ 3,329,214 Investment income 69,595 89,739 47,092 Rental income 77,358 94, ,737 Charges for services 570, , ,724 Donations 2,525 3,303 4,073 Intergovernmental 82, , ,498 Miscellaneous 10,254 25,146 35,050 Total revenues 3,890,593 4,186,450 4,333,388 EXPENDITURES General government 1,432,979 1,625,102 1,777,026 Recreation 1,230,704 1,308,370 1,160,112 Capital outlay 547, , ,903 Debt service Principal 1,280,000 1,290,000 1,305,000 Interest 177, , ,833 Total expenditures 4,668,680 5,136,542 5,182,874 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (778,087) (950,092) (849,486) OTHER FINANCING SOURCES (USES) Transfers in 462, , ,046 Transfers (out) (462,165) (432,409) (576,046) Bonds issued 1,070,000 1,070,000 1,070,000 Capital lease proceeds 93,252 95,783 - Total other financing sources (uses) 1,163,252 1,165,783 1,070,000 NET CHANGE IN FUND BALANCES $ 385,165 $ 215,691 $ 220,514 DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 32.13% 30.35% 31.19% Note: The Golf Course Fund and Hopkins Pool Fund were changed from enterprise funds to governmental funds as of March 1, Data Source Audited Financial Statements

95 $ 3,348,801 $ 3,496,700 $ 3,465,591 $ 3,538,152 $ 3,653,783 $ 3,714,732 $ 3,780,894 16,179 11,567 6,831 4,943 4,041 4,328 4,435 99, ,274 98, , , , , , , , , ,474 1,219,563 1,157,604 4,785 24,381 29,179 1,800 1,200 5,395 3, ,303 61, , , , , ,226 13,962 9,429 32,666 23,858 27,321 2,635 22,665 4,479,437 4,304,373 4,490,950 4,678,705 4,729,289 5,457,023 5,467,032 1,896,315 1,865,267 1,894,613 1,889,333 1,922,986 1,945,192 1,981,590 1,114,972 1,088,328 1,132,954 1,056,550 1,212,079 2,201,123 2,168, , , , ,948 1,565, , ,465 1,315,000 1,325,000 1,330,000 1,375,000 1,440,000 1,501,717 1,529, , , , ,881 87,567 82,537 74,062 5,219,498 4,921,230 5,007,468 5,378,712 6,228,360 6,548,135 6,244,764 (740,061) (616,857) (516,518) (700,007) (1,499,071) (1,091,112) (777,732) 591, , , , , , ,392 (591,686) (557,933) (564,004) (513,259) (514,171) (604,416) (357,392) 1,070,000 1,070,000 1,100,000 1,160,000 1,185,000 1,200,000 1,200, , ,653-1,070,000 1,172,756 1,100,000 1,160,000 1,185,000 1,199,895 1,200,000 $ 329,939 $ 555,899 $ 583,482 $ 459,993 $ (314,071) $ 108,783 $ 422, % 30.47% 28.99% 30.80% 30.41% 26.52% 27.15%

96 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years Ratio of Total Assessed Tax Residential Commercial Other Property Total Equalized Estimated Value to Levy Equalized Equalized Equalized Assessed Actual Total Direct Total Estimated Year Assessed Value Assessed Value Assessed Value Value Value Tax Rate Actual Value (1) 2006 $ 371,215,957 $ 155,977,869 $ 38,544,819 $ 565,738,645 $ 1,697,215, % ,466, ,055,372 43,174, ,695,540 1,844,086, % ,228, ,540,230 55,123, ,892,676 1,952,678, % ,859, ,460,160 56,565, ,885,030 1,952,655, % ,577, ,212,443 53,184, ,973,963 1,838,921, % ,784, ,273,557 51,559, ,617,402 1,753,852, % ,559, ,779,646 47,280, ,619,713 1,606,859, % ,062, ,603,425 43,764, ,430,310 1,462,290, % ,987, ,803,579 42,598, ,388,972 1,399,166, % ,208, ,500,620 43,469, ,178,217 1,410,534, % (1) Assessed values set by the County Assessor on an annual basis. Data Source DeKalb County Tax Extension Offices

97 PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Percentage Percentage of Total of Total District District 2015 Taxable 2006 Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuation American Realty Capital $ 12,737, % Target Corporation 9,468, % $ 6,659, % Panduit Corp. 6,279, % $ 5,989, % NE DeKalb Portfolio LP (Nestles) 5,668, % 7,862, % Mason Properties 5,475, % Northland Plaza Shopping Center 5,127, % 6,089, % DeKalb Retirement Center 3,767, % 3,577, % Fairview MSFP (3M) 3,541, % 5,348, % Slate US Acquisitions Inc. 3,465, % Dream Fund LLC 3,448, % 4,449, % Goodyear Tire & Rubber Co. 8,452, % University Village 4,767, % JLAR 3,853, % TOTAL $ 58,979, % $ 57,051, % Data Source Office of the DeKalb County Treasurer

98 PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year DISTRICT DIRECT RATES Corporate General Insurance Recreation Special Revenue Funds Special Recreation Museum Illinois Municipal Retirement Social Security Audit Debt Service TOTAL DISTRICT DIRECT RATES OVERLAPPING RATES City of DeKalb DeKalb Library DeKalb County DeKalb Township Forest Preserve District Sanitary District Kishwaukee Community College School District TOTAL OVERLAPPING RATES TOTAL TAX RATE PER $100 ASSESSED VALUATION SHARE OF TOTAL TAX RATE LEVIED BY DEKALB PARK DISTRICT 6.93% 6.76% 6.23% Data Source Office of the DeKalb County Clerk

99 % 6.19% 6.17% 6.18% 6.14% 6.20% 6.08%

100 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Data Source Collected within the Fiscal Year of the Levy Levy Percentage Year Tax Levied Amount of Levy 2005 $ 2,972,774 $ 2,973, % ,107,942 3,109, % ,225,308 3,211, % ,255,522 3,245, % ,389,549 3,387, % ,436,455 3,363, % ,499,929 3,439, % ,612,969 3,541, % ,664,842 3,605, % ,710,880 3,676, % Notes: Property in the District is reassessed each year. Property is assessed at 33% of actual value levy year collections received during fiscal year Subsequent years collections are not available from the County and, therefore, some years will have greater than 100% collected. Office of the County Clerk

101 RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities Business-Type Activities General Alternative Capital Installment Capital Total Percentage Percentage Fiscal Obligation Revenue Lease Loan Lease Primary of of Personal Per Year Bonds Bonds Payable Payable Payable Government EAV Income Capita* 2007 $ 1,070,000 $ 3,345,000 $ 72,750 $ - $ 176,702 $ 4,664, % 0.64% $ ,070,000 3,125, , ,700-4,497, % 0.60% ,070,000 2,890,000 89, ,177-4,185, % 0.56% ,070,000 2,645,000 46,381 91,923-3,853, % 0.52% ,070,000 2,390,000 75,023 46,889-3,581, % 0.46% ,100,000 2,130,000 51, ,281, % 0.42% ,160,000 1,855,000 26, ,041, % 0.37% ,185,000 1,575, ,760, % 0.33% ,200,000 1,285, , ,586, % 0.30% ,200, ,000 77, ,257, % 0.27% Note: Details of the District's outstanding debt can be found in the notes to financial statements. * See the schedule of Demographic and Economic Information on page 76 for personal income and population data

102 RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years Percentage of Less Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 2007 $ 4,415,000 $ 55,645 $ 4,359, % $ ,195,000 39,027 4,155, % ,960,000 37,852 3,922, % ,715,000 7,194 3,707, % ,460,000 12,927 3,447, % ,230,000 13,496 3,216, % ,015,000 13,022 3,001, % ,760,000 4,125 2,755, % ,485,000 6,410 2,478, % ,180,000 5,304 2,174, % Note: Details of the District's outstanding debt can be found in the notes to financial statements. * See the schedule of Assessed and Estimated Actual Value of Taxable Property on page 66 for property value data

103 COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT February 29, 2016 *Percentage of Debt Gross Applicable to District's Governmental Unit Bonded Debt District Share of Debt DeKalb Park District $ 2,180, % $ 2,180,000 Schools: School District #427 57,308, % 481,387 School District #428 95,321, % 71,328,973 Community College #523 56,242, % 13,604,967 Total Schools 85,415,327 Others: DeKalb County 13,405, % 3,604,605 DeKalb County Forest Preserve District % - City of DeKalb 33,730, % 33,480,398 Total Others 37,085,003 TOTAL OVERLAPPING BONDED DEBT $ 122,500,330 TOTAL DIRECT AND OVERLAPPING DEBT $ 124,680,330 PER CAPITA OVERLAPPING DEBT $ 2, * Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the City of DeKalb. Data Source Office of the DeKalb County Clerk

104 LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Fiscal Year Equalized Assessed Valuation $ 510,277,314 $ 565,738,645 $ 614,695,540 Statutory Debt Limitation: 2.875% of assessed valuation $ 14,670,473 $ 16,264,986 $ 17,672,497 General Bonded Debt: General Obligation Bonds Dated: December 1, ,070, December 1, ,070,000 - December 1, ,070,000 December 1, December 1, December 1, December 1, December 2, December 1, December 1, Total General Bonded Debt 1,070,000 1,070,000 1,070,000 General Obligation Capital Lease Payable Dated: June ,750 56,096 39,958 May ,368 49,976 May May Total Capital Lease 72, ,464 89,934 General Obligation Bonds (Alternate Revenue Source): February 1, , August 25, ,145,000 3,125,000 2,890,000 Total Alternate Revenue Source Bonds 3,345,000 3,125,000 2,890,000 Total Bonded Debt 4,487,750 4,320,464 4,049,934 Legal Debt Margin $ 10,182,723 $ 11,944,522 $ 13,622,563 Under Illinois State Statutes general obligation "alternate revenue source" bonds are not regarded or included in any computation of indebtedness for the purposes of the overall 2.875% of EAV debt limit or the nonreferendum 0.575% of EAV limit so long as the debt service levy for the bonds is abated annually and not extended

105 $ 650,892,676 $ 650,885,030 $ 612,973,963 $ 584,617,402 $ 535,619,713 $ 487,430,310 $ 466,388,972 $ 18,713,164 $ 18,712,945 $ 17,623,001 $ 16,807,750 $ 15,399,067 $ 14,013,621 $ 13,408, ,070, ,070, ,100, ,160, ,185, ,200, ,200,000 1,070,000 1,070,000 1,100,000 1,160,000 1,185,000 1,200,000 1,200,000 20, , ,023 51,423 26, ,936 77,829 46,381 75,023 51,423 26, ,936 77, ,645,000 2,390,000 2,130,000 1,855,000 1,575,000 1,285, ,000 2,645,000 2,390,000 2,130,000 1,855,000 1,575,000 1,285, ,000 3,761,381 3,535,023 3,281,423 3,041,442 2,760,000 2,586,936 2,257,829 $ 14,951,783 $ 15,177,922 $ 14,341,578 $ 13,766,308 $ 12,639,067 $ 11,426,685 $ 11,150,

106 DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years Per Capita Median Fiscal Personal Personal Family Unemployment Year Population Income Income Income Rate ,003 $ 731,793,783 $ 16,261 $ 53, % , ,924,489 16,261 53, % , ,331,117 16,261 53, % , ,575,032 16,261 53, % , ,673,260 17,730 60, % , ,761,910 17,730 60, % , ,026,640 18,488 60, % , ,853,600 19,120 60, % , ,999,920 19,464 60, % , ,854,370 19,155 59, % Data Sources City of DeKalb Records U.S. Census Bureau Office of the County Clerk

107 PRINCIPAL EMPLOYERS Current Fiscal Year and Nine Years Ago Percent of Percent of Total District Total District Employer Employees Rank Population Employees Rank Population Northern Illinois University 3, % 3, % Kishwaukee Community Hospital 1, % % DeKalb School District % 3M % % Sonoco-Alloyd Company % Target Distribution Center % % Wal-Mart % % Tegrant % % Nestle Distributing % % City of DeKalb % Jewel Osco % Ideal Industries % GE Motors % Data Sources Illinois Manufacturers Directory, Illinois Services Directory, DeKalb County Economic Development Corporation, City of DeKalb Records 8, % 6, %

108 EMPLOYEES BY FUNCTION Last Ten Fiscal Years Fiscal Year GENERAL GOVERNMENT Regular employees Part-time employees Seasonal employees RECREATION AND GOLF Regular employees Part-time employees Seasonal employees Total regular employees Total part-time/seasonal employees GRAND TOTAL Data Source District Records

109 OPERATING INDICATORS Last Ten Fiscal Years Fiscal Year Ending February 28/ FACILITY USES Number of golf facility uses 40,000 40,000 42,000 41,890 35,492 27,146 32,650 30,390 31,286 26,559 Number of aquatics facility uses 44,000 44,000 42,658 32,288 44,221 42,801 43,586 34,041 32,677 30,665 Golf Rounds Played FY2016 RH Daily 8,040 30% BV Daily 7,409 28% BV Pass % RH Pass 4,411 17% Outings 1,737 6% Pool Attendance FY2016 Daily Admissions % Evening Swim % Season Passes % Camp Pass % Other Admissions 436 1% Data Sources Park District Records Includes only those programs that require formal registration (excludes special events.)