POPULAR ANNUAL FINANCIAL REPORT

Transcription

1 POPULAR ANNUAL FINANCIAL REPORT 2017 PUBLISHED IN AUGUST 2018 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

2 PG.1 MESSAGE FROM THE MAYOR Dear Lake Zurich Residents, I am pleased to present the Village of Lake Zurich s 2017 Popular Annual Financial Report. This report provides a brief outline of the Village s finances for Fiscal Year 2017, from January 1st to December 31st This report provides a shortened, more accessible summary of the Village s Comprehensive Annual Financial Report (CAFR), the annual audit that details the Village s funds, revenues, and expenditures. This past fiscal year marked a significant achievement for the Village as it completed its first fiscal year aligned with the calendar year. This change was made in an effort to save taxpayer money by receiving more competitive bids earlier in the year for significant infrastructure projects such as road resurfacing, water main replacements, and sanitary sewer maintenance. The Village continues to evaluate its current services and operations to identify cost savings, opportunities for intergovernmental cooperation, and new technology to increase overall productivity. The Village prides itself on sound financial management, carefully aligning the community s resources with its infrastructure and service needs. For brevity, this document does not include all funds or details as reported in the Comprehensive Annual Financial Report, which can be found online at lakezurich.org. ELECTED OFFICIALS Jim Beaudoin Mary-Beth Euker John Shaw Marc Spacone Jonathan Sprawka Greg Weider

3 PG.2 HISTORY - DEMOGRAPHICS - MAP The Village of Lake Zurich is located in southwestern Lake County, 37 miles northwest of downtown Chicago. The Village is an established residential community which traditionally served as a popular summer resort in the early 20th century. The population has increased by more than five times since 1960 as the Village has shared in the economic growth from an expanding Chicago metropolitan area. Lake Zurich has above-average wealth and housing values, with a balanced tax base. The Village is a non-home rule community operating under the council-manager form of government. Lake Zurich is governed by a President and six-member Village Board, elected at-large in non-partisan elections to overlapping four year terms. The Board sets policy, passes ordinances, adopts the budget and hires the Village Manager. The Village Manager oversees the daily operations of the Village. Land Area Population Median Household Income Median Home Value Housing Units Persons Below Poverty Level People with Bachelors + Lived in Lake Zurich 5+ Years Mean Travel Time to Work 6.77 Sq. Mi 19,967 $108,669 $319,300 7,082 4% 55.10% 83% 32.2 Min ETHNIC MAKE-UP White Hispanic Asian African-American Other 80.30% 7.90% 9.30% 0.80% 1.60%

4 PG.3 STRATEGIC PLAN - FINANCIAL HIGHLIGHTS - EMPLOYMENT TRENDS STRATEGIC PLAN GOALS Financial Sustainability Development Infrastructure Service Sustainability Civic Engagement HIGHLIGHTS FROM 2017 Established 20-Year Community Investment Plan for sustainable infrastructure improvement Successfully negotiated collective bargaining agreements with Police & Firefighter Unions Developed Five-Year Forecasts for All Municipal Funds Increased organizational efficiencies through restructuring & contracting and Full-time staffing is down 21 positions from just 9 years ago, a drop of 12% Increased public safety pension contributions to $4 million to ensure adequate funding of police and fire long-term statutory and actuarial obligations.

5 PG.4 FINANCES EXPLAINED The Village of Lake Zurich utilizes fund accounting. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific objectives. Fund accounting is used to ensure and demonstrate compliance with specific financial and legal requirements. The Village of Lake Zurich has three fund types: governmental, proprietary and fiduciary. The Village of Lake Zurich has fourteen (14) governmental funds to account for its governmental functions. The General Fund is the general operating fund for the Village and is utilized to account for all activity that is not accounted for in another fund. The Village of Lake Zurich maintains one proprietary fund the Waterworks and Sewerage Fund. This proprietary fund is categorized as an enterprise fund, which is used to report the same functions presented as business-type activities in the government-wide financial statements. Fiduciary Funds account for resources held for the benefit of parties outside the government. Hence, fiduciary funds are not included in the government-wide statements, as their resources are not available to support the Village s own programs. The Village of Lake Zurich has three fiduciary funds the Police Pension Fund, the Firefighters Pension Fund, and the Performance Escrow Fund. GOVERNMENTAL ENTERPRISE FIDUCIARY General Water & Sewer Police Pension Tax Increment Financing Funds Performance Escrow Capital Improvement Firefighters Pension Motor Fuel Hotel/Motel Capital Projects Debt Service

6 PG.5 CATEGORIES & FINANCIAL FIGURES FUND ASSETS LIABILITIES FUND BALANCE General Debt Service Capital Improvements $20,355,842 $9,796,708 $10,559,134 $2,993,339 $1,656,808 $1,336,531 $2,784,689 $225,947 $2,558,742 Tax Increment Financing Funds $5,519,809 $3,361,830 $2,157,979 Non-Major $5,166,338 $229,903 $4,936,435 Governmental Funds - Total $36,820,017 $15,271,196 $21,548,821 FUND ASSETS LIABILITIES FUND BALANCE Waterworks & Sewerage Fund Enterprise Funds - Total $20,355,842 $9,796,708 $10,559,134 $2,993,339 $1,656,808 $1,336,531 FUND ASSETS LIABILITIES FUND BALANCE Pension Trusts Agency Fiduciary Funds - Total $57,035,919 $16,142 $57,019,777 $1,794,457 $1,794,457 $0 $58,830,376 $1,810,699 $57,019,777 FUND ASSETS LIABILITIES FUND BALANCE All Village Funds - Total $149,663,339 $27,792,550 $122,043,542

7 PG.6 GOVERNMENTAL FUNDS EXAMPLES OF VILLAGE REVENUES INCLUDE... TAXES Property Telecommunications Utility INTERGOVERNMENTAL Income Tax Sales Tax Fire Service Agreements MISCELLANEOUS Investment Income Special Events FINES AND FORFEITS CHARGES FOR SERVICE Ambulance Service Plan Review Fees Permitting Fees Traffic Violations Code Violations

8 PG.7 GOVERNMENTAL FUNDS EXAMPLES OF VILLAGE EXPENDITURES INCLUDE... PUBLIC SAFETY Training Equipment Technology HIGHWAY & STREETS Road Maintenance Utility Maintenance Infrastructure Upgrades ECONOMIC DEVELOPMENT Marketing Economic Incentives PARKS & RECREATION GENERAL GOVERNMENT Technology Human Resources Public Relations Special Events Program Staff Beaches & Playgrounds

9 PG.8 GOVERNMENTAL FUNDS The Village has maintained a balanced budget and operated within its financial means throughout recent history * Note: Governmental Fund expenditures include Capital Improvement and Infrastructure Projects The Village s share of local property taxes has stayed under 15% throughout the last several years Doing more with less. Since 2010, the Village has reduced staff levels by nearly 12%, or 21 full-time positions * Note: Fiscal Year 2016B was a shortened eight-month Fiscal Year running from May-December 2016

10 PG.9 * Note: Fiscal Year 2016B was a shortened eight-month Fiscal Year running from May-December 2016 PROPERTY TAX SHARE - EAV The amount due that appears on tax bills is based on the following equation: Equalized Assessed Value (EAV) / 100 x Tax Rate = Taxes Owed EAV, as determined by the Ela Township assessor equals one-third of the property s fair market value minus any exemptions. EXAMPLE: Property with fair market value of $300,000 determined by township assessor. EAV would be equal to $100,000. The tax rate is expressed as an amount per $100 of equalized assessed value. Given these assumptions and assuming a tax rate of per $100 EAV Taxes owed would be $7, and are calculated as follows: $100,000/100 x = $7,518 Of this total amount, only $1,128 goes to the Village of Lake Zurich

11 PG.10 WHERE YOUR PROPERTY TAX DOLLARS ARE BEING SPENT For the 2015 Levy, the average Lake Zurich resident paid a property tax rate of 8 times the taxable valuation of property. These funds are then divided up among the various agencies with tax levies affecting Lake Zurich. Here is how the funds were distributed for the 2015 levy, paid in School District % Library 4.9% Village 14% Other 4.4% Lake County 8.2% College of Lake 3.7% BOND RATING The Village maintains a AAA, stable outlook, bond rating from Standard and Poors, which had been upgraded from AA in Only about 31% of Illinois municipal governments have AAA bond ratings. MAINTAINING THE AAA WAS BASED ON THE FOLLOWING FACTORS: Strong economy with per capita buying income 167% of national average Very strong budgetary flexibility Strong overall budgetary performance Strong debt and contingent liabilities profile A strong bond rating allows the Village to secure bonds for infrastructure, equipment, and other capital improvements for lower interest rates, which lowers the amount of money the Village pays back on bonds and saves residents money in the long run. STANDARD & POOR S AAA Investment Risk is almost zero AA A BBB BB B CCC CC C D GRADE Investment Investment Investment Speculative Speculative Speculative Speculative Speculative Speculative MEANING Low risk Risk if economy declines Some risk; more if economy declines Risky Risky; expected to get worse Probable bankruptcy Probable bankruptcy In bankruptcy or default In bankruptcy or default

12 PG.11 PROPERTY TAX PAYERS - LARGE EMPLOYERS TAX BASE EAV ($) Village Square Retail Center LLC Landings Capital Partners LLC Echo Incorporated Individual Taxpayer (North Lake Commons) Deerpath Commons Retail Center LLC Deerpath Court Retail Center LLC Costco Greenhill Company LLC Wal-Mart Properties Inc. Roundys Supermarket Inc. 7,005,698 6,246,138 6,028,555 5,143,802 4,990,177 4,699,186 3,986,186 3,887,143 3,743,169 3,717,927 EMPLOYEE COUNT (#) Echo Inc. Peapod School District 95 Smalley Steel Ring Co. Termax Corp. Village of Lake Zurich Lexington Lake Zurich Tredegar Film Products Gere Marie HPL Stampings Inc

13 PG.12 VILLAGE FACILITIES - CONTACT INFO VILLAGE FACILITIES ADDRESS PHONE # Village Hall Police Station Fire Station #1 Park & Recreation Community Services 70 E. Main St. 200 Mohawk Tr. 321 S. Buesching Rd. 200 S. Rand Rd. 505 Telser Rd VILLAGE FACILITIES DEPT. HEAD / Village Manager Human Resources Director Innovation Director Finance Director Public Works Director Fire Chief Police Chief Community Development Director Park & Recreation Director Ray.Keller@LakeZurich.org Doug.Gibson@LakeZurich.org Michael.Duebner@LakeZurich.org Jodie.Hartman@LakeZurich.org Mike.Brown@LakeZurich.org John.Malcolm@LakeZurich.org Steve.Husak@LakeZurich.org Sarosh.Saher@LakeZurich.org Bonnie.Caputo@LakeZurich.org