COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2007 Prepared by: Scott M. Silver Superintendent of Finance
TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION List of Principal Officials... Organizational Chart... Certificate of Achievement for Excellence in Financial Reporting... Transmittal Letter... i ii iii iv-vii FINANCIAL SECTION INDEPENDENT AUDITOR S REPORT... 1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management s Discussion and Analysis... MD&A 1-9 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets... 3 Statement of Activities... 4 Fund Financial Statements Governmental Funds Balance Sheet... 5-6 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Assets... 7 Statement of Revenues, Expenditures and Changes in Fund Balances... 8-9 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities... 10
TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Fund Financial Statements (Continued) Proprietary Fund Statement of Net Assets... 11 Statement of Revenues, Expenses and Changes in Fund Net Assets... 12 Statement of Cash Flows... 13-14 Notes to Financial Statements... 15-33 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund... 34 Recreation Fund... 35-36 Illinois Municipal Retirement Fund Schedule of Employer Contributions... 37 Schedule of Funding Progress... 38 Notes to Required Supplementary Information... 39 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... 40 Capital Projects Fund... 41 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet... 42 Combining Statement of Revenues, Expenditures and Changes in Fund Balances... 43
TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS (Continued) Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Liability Fund... 44 Museum Fund... 45 IMRF and Social Security Fund... 46 Audit Fund... 47 Paving and Lighting Fund... 48 Special Recreation Fund... 49 PROPRIETARY FUND Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual River Bend Golf Course Fund... 50 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Schedule by Source... 51 Schedule by Function and Activity... 52 Schedule of Changes by Function and Activity... 53 LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long-Term Debt... 54 Schedule of Long-Term Debt Requirements 2003 Installment Contract... 55 2001 General Obligation Refunding Park Bonds... 56 2002A General Obligation Park Bonds... 57 2002 General Obligation Park Bonds... 58 2007 General Obligation Park Bonds... 59 LONG-TERM DEBT PAYABLE BY PROPRIETARY FUND Schedule of Long-Term Debt Requirements 2002 General Obligation Park Bonds... 60
TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION Financial Trends Net Assets by Component... 61 Change in Net Assets... 62-63 Fund Balances of Governmental Funds... 64 Changes in Fund Balances of Governmental Funds... 65-66 Changes in Net Assets - River Bend Golf Course Fund... 67-68 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property... 69 Principal Property Taxpayers... 70 Property Tax Rates - Direct and Overlapping Governments... 71 Property Tax Levies and Collections... 72 Debt Capacity Ratios of Outstanding Debt by Type... 73 Ratios of General Bonded Debt Outstanding... 74 Direct and Overlapping Governmental Activities Debt... 75 Legal Debt Margin Information... 76-77 Pledged-Revenue Coverage... 78 Demographic and Economic Information Demographic and Economic Information... 79 Principal Employers... 80 Operating Information Employees by Function... 81 Operating Indicators... 82 Capital Asset Statistics... 83
INTRODUCTORY SECTION
LIST OF PRINCIPAL OFFICIALS December 31, 2007 BOARD OF PARK COMMISSIONERS Donald R. Cook Margaret M. Hough Janis Kanzler Anthony J. Carballo Debra Morse President Vice-President Treasurer Commissioner Commissioner LEADERSHIP TEAM Dan Garvy Aaron Cerutti Michael Toohey Lisa Leone Scott M. Silver Mike Reilly Tracy Welge David Zajicek Director of Parks and Recreation Superintendent of Parks Superintendent of Recreation Superintendent of Operations Superintendent of Finance Superintendent of Golf Human Resource Manager Genreal Manager, The View Restaurant & Bar i
ORGANIZATIONAL CHART COMMUNITY PARK BOARD DIRECTOR OF PARKS AND RECREATION ATTORNEY/ CONSULTANTS SUPERINTENDENT OF OPERATIONS SUPERINTENDENT OF PARKS & FACILITIES HUMAN RESOURCE MANAGER SUPERINTENDENT OF RECREATION FINANCE SUPERINTENDENT GENERAL MANAGER HEAD GOLF PRO ADVERTISING AND PR SPECIALIST PARKS MANAGER FACILITES & SAFETY MANAGER FITNESS & AQUATIC SUPERVISOR RECREATION SUPERVISOR ATHLETIC SUPERVISOR MEADOWS CENTER SUPERVISOR PART-TIME MUSEUM CURATOR FINANCE SUPPORT (3) HEAD CHEF FOOD & BEV MGR PART-TIME PGA ASS T ADMINISTRATIVE ASST. (3) PR & GRAPHIC DESIGN COORDINATOR FLEET MANAGER PARKS SPECIALIST (4) ATHLETIC FIELD SPECIALIST FACILITY GROUNDS SUPERVISOR SEASONAL PARKS STAFF (10-12) FACILITY SPECIALIST PLAYGROUND/ FACILITY SPECIALIST BUILDING MAINTENANCE SUPERVISOR CUSTODIAN (2) TRADES SPECIALIST SEASONAL MAINTENANCE (4-5) PT FITNESS CENTER ATTENDANTS SEASONAL POOL MANAGER (4) SEASONAL LIFEGUARDS (50) GUEST SVCS (22) INSTRUCTORS (10-20) COACHES (4) CLERKS (5) SEASONAL CONSCESSION STAND STAFF (12) PART-TIME PROGRAM LEADERS PART-TIME PROGRAM & FIELD SUPERVISORS VOLUNTEER COACHES SEASONAL CAMP DIRECTOR SEASONAL CAMP STAFF FRONT DESK SUPERVISOR/SR. TRIPS COORD. ADMIN. ASST. (2) PART-TIME TEACHERS (4-6) AIDES (4-6) PROGRAM LEADERS (4-6) PART-TIME LINE CHEF (2) PART-TIME COOKS DISHWASHERS ASS T F & B MGR. PART-TIME SERVERS (10-15) SERVERS ASST. (6) HOSTS (3) BARTENDERS (4) PART-TIME PRO- SHOP STAFF (7) CART ATT. (8) PT RANGERS & STARTERS (15) ii
Investment income exceeded budget by approximately $47,000. The District has followed its financial investment policy ensuring all of its investments are protected by collateralization and/or FDIC insurance. PROFILE OF THE PARK DISTRICT The Lisle Park District is located 25 miles west of Chicago in DuPage County, Illinois. The Park District was incorporated in 1967 and currently serves a population of approximately 32,000 residents covering 12 square miles. While the current boundaries of the Village of Lisle encompass approximately 22,000 people, the Lisle Park District boundaries extend beyond those of the Village, serving small sections of Naperville, Woodridge, and parts of unincorporated DuPage County. The Lisle Park District is a Board-Manager form of government, comprised of a 5-member elected Board of Park Commissioners whose chief executive officer is the Director of Parks and Recreation. The District maintains 36 parks covering over 380 acres. Facilities include an administrative office building with fitness center, one 9-hole golf course and restaurant, one programming center, one outdoor aquatic facility, a museum site with 4 historical structures, 29 playgrounds, 8 basketball courts, 23 tennis courts and numerous sports fields for baseball, softball, soccer and football. In fiscal year 2007, the District provided facilities for approximately 11,000 registered recreation program participants, 30,000 rounds of golf and 42,000 pool customers. A five member Board of Park Commissioners elected for staggered four-year terms governs the District. The day-to-day administration of the District is the responsibility of the Director of Parks and Recreation. The District employs 36 full-time staff and up to 400 temporary staff throughout the year. This report includes all of the funds of the District. The District participates in the Illinois Municipal Retirement Fund, the South East Association for Special Parks and Recreation, and the Park District Risk Management Agency. These organizations are separate governmental units because: (1) they are legally separate organized entities, (2) are fiscally independent of the District, and (3) are governed by their own boards. Audited financial statements for these organizations are not included in this report. However, such statements are available upon request from their respective business offices. LOCAL ECONOMY Economic Outlook. The District is located in DuPage County. The economic condition and outlook of the Park District continues to be strong as evidenced by the Moody s bond rating of Aa3. Over the last ten years, the average EAV growth has been 6.56%. We look for that trend to continue for the short term. According to ESRI Business Information Solutions, the estimated 2007 median household income is $76,491. The estimated 2000 employed work force in the Lisle Park District is 16,479 or 58% of the population 16 years and over (ESRI v
Business Information Solutions). The employed work force in the State of Illinois was 47%, and the Nation was 46% of the population 16 years and over. Of the employed work force in the Lisle Park District, 76.8% are engaged white collar professions such as management, business, financial and sales and the balance of the work force is engaged in service (10.5%) and blue collar (12.7%) professions. The high white collar work force is reflective of the District's high educational attainment and high average household income. From the early 1970s through the early 1990s, the Lisle Park District enjoyed periods of rapid land acquisition and development, extensive recreation programming growth, facility acquisition and construction, and significant growth in personnel. As the Lisle area has become built out, opportunities for growth have been sparse. As a result, from the mid 1990s to present day the focus of the District has been more on renovating existing facilities, maintaining current assets, and most recently marketing and seeking alternative sources of revenue. Presently the District is dedicating resources to evaluate long-term indoor programming space needs based on the community's growing demand for facilities. MAJOR INITIATIVES For the Year. In March 2007, the District completed a comprehensive review of its rules and regulations ordinance and adopted a new conduct ordinance. In April the District adopted a revised purchasing ordinance that empowers staff and the Board to exercise more efficiency and accountability. During 2007 the District authorized the implementation of new financial software and recreation registration software. The planning for this comprehensive software upgrade began in the fourth quarter of 2007 with implementation scheduled for January 1, 2008 for financial applications, and various dates throughout the first half of 2008 for the many recreation registration applications. The District also began investigating the feasibility of constructing a new multiple use indoor recreation facility. In October 2007 an outside architectural firm was hired to perform a conceptual design study and to aid the District in gauging overall design parameters and public support. District administration also began the development of a comprehensive capital equipment replacement schedule with an anticipated completion date of mid 2008. Lastly, District administrative staff experienced turnover in three key positions superintendent of golf, superintendent of recreation, and superintendent of parks. For the Future. The most important project for the next several months is that of researching indoor programming space options. Strong consideration of a tax increase referendum will be given in 2008, and determining short and long range costs and revenue projections for a new community center is a top priority. The completion of a long range capital plan to include replacement schedules as well as provisions for other capital improvements and land acquisition will aide in determining the overall impact large community investments will have on the future operations of the Lisle Park District. vi
FINANCIAL SECTION
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31, 2007 As the management of the Lisle Park District (the District ), we offer readers of the District s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31, 2007. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which may be found on pages iii through xii of this report. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT In the past, the primary focus of local government financial statements has been summarized fund type information on a current financial resource basis. Since 2004, this approach has been modified and the District s financial statements now present two kinds of statements, each with a different snapshot of the District s finances. The focus of the new financial statements is on both the District as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the District s accountability. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District s finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the District s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the District s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave). The Net (Expenses) Revenue shows the financial burden that was placed on the District s taxpayers by each of these functions. Providing this information allows our citizens to consider the cost of each function in comparison to the benefits they believe are provided by that function. Both of the government-wide financial statements distinguish functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental MD&A 1
activities of the District include general government, and culture and recreation. The business-type activities are the golf course and restaurant. The government-wide financial statements can be found on pages 3 through 4 of this report. 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 finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spend able resources, as well as balances of spend able resources available at the end of the fiscal year. Such information may be useful in evaluating a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmentwide financial statements. By doing so, readers may better understand the long-term impact of the government s near-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 facilitate this comparison between governmental funds and governmental activities as shown on pages 7 and 10 respectively. The District maintains 10 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Recreation Fund, Debt Service Fund, and Capital Projects Fund all of which are considered to be major funds. Data from the other 6 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in this report as shown on pages 42-43. The District adopts an annual budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget shown on page 34. MD&A 2
The basic governmental fund financial statements can be found on pages 5-6 and 8-9 of this report. Proprietary Funds. The District maintains one type of proprietary funds: enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The District uses enterprise funds to account for its golf course. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Golf Course, which is considered to be a major fund of the District. The basic proprietary fund financial statements can be found on pages 11 through 14 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 15 through 33 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 benefits to its employees. Required supplementary information can be found on pages 34 through 39 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 40 through 60 of this report. Financial Analysis of the District as a Whole Beyond presenting current-year financial information in the government-wide and major individual fund formats, the District also presents comparative information from the prior years in the Management s Discussion and Analysis. By doing so, the District believes that it is providing the best means of analyzing its financial condition and position as of December 31, 2007. MD&A 3
GOVERNMENT-WIDE STATEMENTS Net Assets The following table reflects the condensed Statement of Net Assets. Table 1 Statement of Net Assets As of December 31, 2007 and 2006 (In thousands) The District s Statement of Net Assets for the Government activities increased $1.362 million from $22,557 to $23,919 million during 2007. The District had a favorable increase in current assets totaling $2.126 million. It is made up of an increase in cash and investments of $1.376 million due to a new bond issued in December, increase in property tax receivable by.298 million and a decrease in due from other funds of.372 million. Also the District had a net increase in capital assets due to donated land, accumulated depreciation, additions and deletion totaling $.824 million. The liabilities increased by.764 million comprised of a increase in unearned revenue related to property tax receivable of $.298, increase in long term debt in the amount of.512 million and a increase in current payables of.014 million. The Statement of Net Assets for Business-type activities increase $.277 million related to the reduction in the due from (to) other funds by $.372 million less the decrease in net change to the capital assets due to accumulated depreciation, additions and deletion totaling $.162 million netting out to an increase of.210 million in assets. The liabilities had a favorable reduction of.067 million comprised of an increase in current accounts payables in the amount of $.052 million with a reduction of long term liabilities by $.119 million in the Golf Course. MD&A 4
For more detailed information, see the Statement of Net Assets on page 3. Statement of Activities The following table summarizes the revenue and expenses of the District s activities. Table 2 Changes in Net Assets For the Fiscal Year Ended December 31, 2007 and 2006 (In thousands) 2007 Revenues 2% 34% 50% 14% Charges for Services Capital Grants, Contributions and Other Property Taxes Investment Income MD&A 5
In 2007, the revenue from government activities increased by $1.734 million from 2006. The largest component of the increase is in Land Contribution. In 2007 the District received $1.304 million in land donations and verses nothing in 2006. The District s largest single source of revenue is property taxes. It increased by $.300 million to $4.780 million. Property taxes support governmental activities, to include the District s contribution to the Illinois Municipal Retirement Fund, Insurance Fund, Audit Fund and Special Recreation Fund. Between 2006 and 2007, property tax revenues increased by 6.70% due to higher equalized assessed value (EAV) in the District. The District s property tax rate changed from.3772 in 2006 to.3674 in 2007, a decrease of.0098, related to the impact of the tax cap limitation and Public Act 93-0601, which provided for District s debt service extension base tax levy be recalculated. Excluding the impact of this new legislation, the District s remaining tax rate of.2513 decreased.0064, or 2.48%. The Park District s EAV of roughly $1.313 billion increased by $70 million, or 5.63 %, due to new construction and property reassessments. The major revenue component of the charges for services classification is fees from the District s users. User fee revenue increased $.113 million from $1.319 million in 2006 to $1.432 million in 2007. The increase in revenue reflects an increase in usage of the District s programs and facilities. In addition, the District s investment income increased by $.013 million. The major revenue component for Business-Type activities is charges for services classification is fees from the District s users. User fee revenue was $1.866 million in 2007, compared with $1.535 million in 2006. The increase in revenue reflects an increase in usage of the District s programs and facilities. 2007 Expenses 26% 40% 5% 29% General Government Culture and Recreation Interest and Fiscal charges Golf Operations The District s Governmental Activities expenses amounted to a total of $5.921 million in 2007. This reflects an increase of 6.97% over the prior year. General government expenses related to the operations of the District accounted for the largest share of total MD&A 6
expenses in governmental activities. These costs include all contractual agreements, wages and other overhead costs, which increased 30.16% over prior year. The Culture and Recreation expenses decreased by 12.06% compared to last year. In addition, Interest and fiscal charges also decreased 7.19% verse 2006. The District s Business-Type Activities expenses amounted to a total of $2.124 million in 2007 vs. $1.972 million in 2006. This reflects an increase of 7.71% over the prior year. For more detailed information, see the Statement of Activities for the Changes in Net Assets on page 4. Capital Assets The following schedule reflects the District s capital asset balances as of December 31, 2007. Table 3 Capital Assets As of December 31, 2007 and 2006 (In thousands) At year-end, the District s investment in capital assets for both its governmental and business-type activities was $34.419 million (net of accumulated depreciation). This represents a increase of 1.9% from December 31, 2006. Major capital highlights for 2007 include the following: The District received two donated parcels of land at Abbeywood. For more information on the District s capital assets, see Note 3 in the notes to the financial statements. Long-Term Debt As of December 31, 2007, the District had a total of $12.2 million in bonded indebtedness outstanding. The total is composed of $9.85 million in general obligation bonds backed by the full faith and credit of the District. The debt service on the general obligation bonds is paid with property taxes. MD&A 7
Also outstanding at the end of 2007 were $2.3 million of alternate revenue bonds. In 2007, the District issued debt of $1,328,930 out of the Debt Service Extension Base. In addition, the District has a total of $76,137 of installment contract certificates. The installment contract was issued to provide resources to purchase Peach Creek. The table below summarizes the District s bonded and similar indebtedness. Table 4 Bonded and Similar Indebtedness As of December 31, 2007 and 2006 (In thousands) The District computation of legal debt margin is subject to a statutory debt limitation of 2.875% of equalized assessed valuation with referendum and.575% of equalized assessed valuation without referendum. The schedule is shown on pages 76-77. The District s general obligation bonds have been given a credit rating of Aa3 (The Aa3 rating are judged to be high quality by all standards. They are generally known as highgrade obligations. It demonstrates very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues) by Moody s Ratings Services. For more detailed information on the District s bonded and similar indebtedness, see Note 4 in the notes to the financial statements. Individual Fund The District s Fund Balance over all increased by $1.587, million from -$.539 million in 2006 to 1.048 million in 2007. The Capital Projects Fund increased by $1,108,902 from - $277,572 in 2006 to $831,330 in 2007 because the District issued General Obligation bonds in December. The General Fund Balance increased slightly by $22,721 to $130,354 in 2007 compared to $107,633 in 2006. The Recreation increased by $263,380 from -$256,042 to $6,338 in 2007. The increase in the Recreation Fund was mainly due to the fact the Enterprise Fund didn t need as much support as it did in 2006. The Debt Service Fund net change in fund balance had an increase of $13,935 from $12,248 in 2006 to $26,183 in 2007. The Nonmajor Funds had an increase of $179,741 from - $125,795 in 2006 to $53,946 in 2007. MD&A 8
For more detailed information on the District s individual funds, see Note 5 in the notes to the financial statements. Budget Variances In 2006 the District s General Fund of Actual vs. Budget was better than expected. The District was budgeted to have a decrease in net change in Fund Balance of $89,810. In actuality, it had an increase of $107,633 resulting in a swing increase of $197,443. In 2007 the District Actual vs. Budget was less than expected. The District budgeted to have a positive net change in Fund Balance of $196,747. The actual had a positive net change in Fund Balance of $130,354 resulting in a decrease of $66,393. In 2006 the District s Recreation Fund of Actual vs. Budget was worse than expected. The District was budgeted to have a increase in net change in Fund Balance of $48,798. In actuality, it had an decrease of $256,045 resulting in a swing decrease of $304,843. In 2007 the District Actual vs. Budget was less than expected. The District budgeted to have a positive net change in Fund Balance of $14,688. The actual had a positive net change in Fund Balance of $6,338 resulting in a decrease of $8,350. The major reason for that was the Other Financing Sources (Uses). The District had no significant budget variance for 2007. Required supplementary information can be found on pages 34 through 39 of this report. Economic Factors Commercial and residential development, while slow, still is contributing to an increase in equalized assessed valuation. Growth, having a positive impact on the equalized assessed valuation, also presents significant challenges in maintaining the present high level of service. CONTACTING THE DISTICT S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the District s finances and to demonstrate the District s accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Scott M. Silver, Superintendent of Finance, Lisle Park District, 1825 Short Street, Lisle, Illinois 60532. MD&A 9
STATEMENT OF NET ASSETS December 31, 2007 Primary Government Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 4,882,349 $ 1,400 $ 4,883,749 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 4,823,211-4,823,211 Inventory - 47,672 47,672 Deposits - 19,000 19,000 Capital assets not being depreciated 17,543,172 2,563,398 20,106,570 Capital assets being depreciated net of accumulated depreciation 11,623,487 2,689,820 14,313,307 Total assets 38,872,219 5,321,290 44,193,509 LIABILITIES Accounts payable 202,639 89,040 291,679 Accrued payroll 55,164 21,017 76,181 Unearned revenue 4,765,460-4,765,460 Noncurrent liabilities Due within one year 847,454 120,000 967,454 Due in more than one year 9,082,613 2,195,000 11,277,613 Total liabilities 14,953,330 2,425,057 17,378,387 NET ASSETS Invested in capital assets, net of related debt 19,236,592 2,938,218 22,174,810 Restricted for Recreation programs 727,773-727,773 Special purposes 17,688-17,688 Special recreation 79,211-79,211 Debt service 145,557-145,557 Construction and development 1,734,902-1,734,902 Unrestricted (deficit) 1,977,166 (41,985) 1,935,181 TOTAL NET ASSETS $ 23,918,889 $ 2,896,233 $ 26,815,122 See accompanying notes to financial statements. - 3 -
STATEMENT OF ACTIVITIES For the Year Ended December 31, 2007 Net (Expense) Revenue and Change in Net Assets Program Revenues Primary Government Operating Capital Charges Grants and Grants and Governmental Business-Type FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions Activities Activities Total PRIMARY GOVERNMENT Governmental Activities General government $ 2,030,500 $ 440 $ 935 $ - $ (2,029,125) $ - $ (2,029,125) Park maintenance 1,153,897 - - 1,338,459 184,562-184,562 Culture and recreation 2,349,229 1,431,778 4,808 - (912,643) - (912,643) Interest and fiscal charges 387,426 - - - (387,426) - (387,426) Total governmental activities 5,921,052 1,432,218 5,743 1,338,459 (3,144,632) - (3,144,632) Business-Type Activities River Bend Golf Course Fund 2,123,696 1,866,260 - - - (257,436) (257,436) Total business-type activities 2,123,696 1,866,260 - - - (257,436) (257,436) TOTAL PRIMARY GOVERNMENT $ 8,044,748 $ 3,298,478 $ 5,743 $ 1,338,459 (3,144,632) (257,436) (3,402,068) General Revenues Taxes Property 4,719,825-4,719,825 Replacement 59,893-59,893 Investment income 216,814-216,814 Miscellaneous 43,953-43,953 Transfers (534,499) 534,499 - Total 4,505,986 534,499 5,040,485 CHANGE IN NET ASSETS 1,361,354 277,063 1,638,417 NET ASSETS, JANUARY 1 22,557,535 2,619,170 25,176,705 NET ASSETS, DECEMBER 31 $ 23,918,889 $ 2,896,233 $ 26,815,122 See accompanying notes to financial statements. - 4 -
BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2007 Nonmajor Total Debt Capital Governmental Governmental General Recreation Service Projects Funds Funds ASSETS Cash and investments $ 1,373,937 $ 733,740 $ 130,874 $ 2,563,431 $ 80,367 $ 4,882,349 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 1,578,615 888,257 1,240,420-1,115,919 4,823,211 Due from other funds 42,462 38,087 - - 27,440 107,989 TOTAL ASSETS $ 2,995,014 $ 1,660,084 $ 1,371,294 $ 2,563,431 $ 1,223,726 $ 9,813,549-5 -
Nonmajor Total Debt Capital Governmental Governmental General Recreation Service Projects Funds Funds LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 35,462 $ 35,253 $ - $ 37,984 $ 93,940 $ 202,639 Accrued payroll 25,422 18,937 - - 10,805 55,164 Deferred revenue 1,557,441 878,121 1,225,737-1,104,161 4,765,460 Due to other funds - - - - 107,989 107,989 Total liabilities 1,618,325 932,311 1,225,737 37,984 1,316,895 5,131,252 FUND BALANCES Reserved for recreation programs - 727,773 - - - 727,773 Reserved for audit - - - - 17,688 17,688 Reserved for special recreation - - - - 79,211 79,211 Reserved for debt service - - 145,557 - - 145,557 Reserved for construction and development - - - 2,525,447-2,525,447 Unreserved Undesignated - General Fund 1,376,689 - - - - 1,376,689 Undesignated (deficit) - Special Revenue Fund - - - - (190,068) (190,068) Total fund balances (deficit) 1,376,689 727,773 145,557 2,525,447 (93,169) 4,682,297 TOTAL LIABILITIES AND FUND BALANCES $ 2,995,014 $ 1,660,084 $ 1,371,294 $ 2,563,431 $ 1,223,726 $ 9,813,549 See accompanying notes to financial statements. - 6 -
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS December 31, 2007 FUND BALANCES OF GOVERNMENTAL FUNDS $ 4,682,297 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 29,166,659 Long-term liabilities, including bonds, are not due and payable in the current period and, therefore, are not reported in the governmental funds (9,930,067) NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 23,918,889 See accompanying notes to financial statements. - 7 -
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Nonmajor Total Debt Capital Governmental Governmental General Recreation Service Projects Funds Funds REVENUES Property taxes $ 1,731,343 $ 827,744 $ 1,200,144 $ - $ 960,594 $ 4,719,825 Replacement taxes 59,893 - - - - 59,893 Intergovernmental 135 - - 1,000-1,135 Charges for services - 467,149 - - 375 467,524 Swimming pool - 445,937 - - - 445,937 Fitness center - 57,031 - - - 57,031 Investment income 76,479 45,644 6,295 87,368 1,028 216,814 Rentals and concessions - 18,355 - - 285 18,640 Donations 935 4,712 - - 4,000 9,647 Miscellaneous 60,984 420,493-33,786 1,096 516,359 Total revenues 1,929,769 2,287,065 1,206,439 122,154 967,378 6,512,805 EXPENDITURES Current General government 832,003 499,571-10,600 372,747 1,714,921 Park maintenance 836,794 - - - 137,430 974,224 Culture and recreation Recreational programs - 698,911 - - 382,362 1,081,273 Special facilities - 3,465 - - - 3,465 Building maintenance 125,930 99,763 - - - 225,693 Swimming pool - 529,876 - - - 529,876 Fitness center - 77,076 - - - 77,076-8 -
Nonmajor Total Debt Capital Governmental Governmental General Recreation Service Projects Funds Funds EXPENDITURES (Continued) Capital outlay $ 4,688 $ 2,984 $ - $ 437,110 $ 20,893 $ 465,675 Debt service Principal retirement - - 792,830 25,379-818,209 Interest and fiscal charges - - 387,426 - - 387,426 Total expenditures 1,799,415 1,911,646 1,180,256 473,089 913,432 6,277,838 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 130,354 375,419 26,183 (350,935) 53,946 234,967 OTHER FINANCING SOURCES (USES) Transfers in - - - 1,165-1,165 Transfers (out) - (369,081) - (166,583) - (535,664) Issuance of bonds - - - 1,328,930-1,328,930 Proceeds from sale of capital assets - - - 18,753-18,753 Total other financing sources (uses) - (369,081) - 1,182,265-813,184 NET CHANGE IN FUND BALANCES 130,354 6,338 26,183 831,330 53,946 1,048,151 FUND BALANCES (DEFICIT), JANUARY 1 1,246,335 721,435 119,374 1,694,117 (147,115) 3,634,146 FUND BALANCES (DEFICIT), DECEMBER 31 $ 1,376,689 $ 727,773 $ 145,557 $ 2,525,447 $ (93,169) $ 4,682,297 See accompanying notes to financial statements. - 9 -
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 December 31, 2007 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 1,048,151 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 44,000 Some expenses in the statement of activities (e.g. depreciation) do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds (495,252) Contributions of capital assets are not a current financial resource of governmental funds 1,304,100 Proceeds from the disposal of capital assets are recognized in governmental funds but the gain (loss) is recognized on the statement of activities (28,924) The issuance of long-term debt is reported as an other financing source in governmental funds but as an increase in principal outstanding in the statement of activities (1,328,930) 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 818,209 CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 1,361,354 See accompanying notes to financial statements. - 10 -
STATEMENT OF NET ASSETS PROPRIETARY FUND December 31, 2007 River Bend Golf Course CURRENT ASSETS Cash $ 1,400 Inventory 47,672 Deposits 19,000 Total current assets 68,072 CAPITAL ASSETS Capital assets not being depreciated 2,563,398 Capital assets being depreciated 5,106,249 Accumulated depreciation (2,416,429) Total capital assets 5,253,218 Total assets 5,321,290 CURRENT LIABILITIES Accounts payable 89,040 Accrued payroll 21,017 Bonds payable due within one year 120,000 Total current liabilities 230,057 NONCURRENT LIABILITIES Bonds payable due in more than one year 2,195,000 Total noncurrent liabilities 2,195,000 Total liabilities 2,425,057 NET ASSETS Invested in capital assets, net of related debt 2,938,218 Unrestricted (deficit) (41,985) TOTAL NET ASSETS $ 2,896,233 See accompanying notes to financial statements. - 11 -
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUND For the Year Ended December 31, 2007 River Bend Golf Course OPERATING REVENUES Greens fees $ 404,217 Lessons/program fees 6,710 League fees and outings 114,356 Rentals 77,773 Restaurant/concessions 1,202,713 Miscellaneous 60,491 Total operating revenues 1,866,260 OPERATING EXPENSES Salaries 688,225 Employee benefits 35,196 Contractual services 431,025 Materials and supplies 580,241 Utilities 69,042 Maintenance and repair 35,597 Miscellaneous 534 Depreciation 180,671 Total operating expenses 2,020,531 OPERATING INCOME (LOSS) (154,271) NONOPERATING REVENUE (EXPENSE) Interest and fiscal charges (103,165) Total nonoperating revenue (expense) (103,165) INCOME (LOSS) BEFORE TRANSFERS (257,436) TRANSFERS Transfers in 534,499 Total transfers 534,499 CHANGE IN NET ASSETS 277,063 NET ASSETS, JANUARY 1 2,619,170 NET ASSETS, DECEMBER 31 $ 2,896,233 See accompanying notes to financial statements. - 12 -
STATEMENT OF CASH FLOWS PROPRIETARY FUND For the Year Ended December 31, 2007 River Bend Golf Course CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 1,866,260 Payments to suppliers (1,087,181) Payments to employees (722,501) Net cash from operating activities 56,578 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund transfer 162,687 Net cash from noncapital financing activities 162,687 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on bonds (115,000) Bond interest and fiscal agent fees (103,165) Net cash from capital and related financing activities (218,165) CASH FLOWS FROM INVESTING ACTIVITIES None - Net cash from investing activities - NET INCREASE IN CASH AND CASH EQUIVALENTS 1,100 CASH AND CASH EQUIVALENTS, JANUARY 1 300 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,400 (This statement is continued on the following page.) - 13 -
STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUND For the Year Ended December 31, 2007 River Bend Golf Course RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (154,271) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation 180,671 Changes in assets and liabilities Inventory and deposits (17,413) Accounts payable 46,671 Accrued payroll 920 NET CASH FROM OPERATING ACTIVITIES $ 56,578 See accompanying notes to financial statements. - 14 -
NOTES TO FINANCIAL STATEMENTS December 31, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Lisle Park District (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. Financial Reporting Entity The Lisle Park District, DuPage County, Illinois, was established in 1967. The District is duly organized and existing under the provisions of the laws of the State of Illinois and is operating under the provisions of the Park District Code of the State of Illinois, approved July 8, 1947, and all laws amendatory thereto. The District operates under the commissioner-director form of government (an elected Board of five District Commissioners) and provides a variety of recreational facilities, programs and services. The District (primary government) includes all funds of its governmental operations and its component units based on financial accountability. Financial accountability includes appointment of the entity s governing body, imposition of will and fiscal dependency. The accompanying financial statements include only those funds of the District, as there are no other organizations for which it has financial accountability. b. Fund Accounting The District uses funds to report on its financial position and the changes in its 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. The District s funds are classified into the following categories: governmental and proprietary. - 15 -
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 District s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general (corporate) fund 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). Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds, the District has chosen to apply all GASB pronouncements as well as those FASB pronouncements issued on or before November 30, 1989 to account for its enterprise funds. c. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the District. The effect of material inter-fund activity other than interfund sales and services has been eliminated from 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. - 16 -
NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The District reports the following major governmental funds: The General Fund accounts for the resources traditionally associated with general government, except those required to be accounted for in another fund. The Recreation Fund accounts for the operations of the District s recreational programs and park maintenance. Financing is provided from an annual property tax levy and fees charges for programs and activities. The Debt Service Fund accounts for the accumulation of funds that are restricted for repayment of various general obligations bond issues where repayment is financed by an annual property tax levy. The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital expenditures not being financed by the proprietary fund. The District reports the following major proprietary fund: The River Bend Golf Course Fund accounts for the activities of the District which operate the River Bend Golf Course, the golf pro shop, and the View Restaurant. 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, as are the proprietary fund financial statements. 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. Nonoperating revenue/expenses are incidental to the operations of these funds. - 17 -
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. 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, replacement taxes and interest on investments. The District reports deferred/unearned revenue on its financial statements. 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. Deferred/unearned revenues also arise when resources are received by the District 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 District has a legal claim to the resources by meeting all eligibility requirements, the liability for deferred/unearned revenue is removed from the financial statements and revenue is recognized. e. Deposits and Investments For purposes of reporting cash flows, the District considers all cash on hand, demand deposits and highly liquid investments with a maturity of three months or less when purchased to be cash and cash equivalents. Investments with maturities of one year or more from the date of purchase, other than non-negotiable certificates of deposit, are stated at fair value based on quoted market prices. Investments with maturities of one year or less from the date of purchase and non-negotiable certificates of deposit are stated at cost or amortized cost. All other investments which do not consider market rates are stated at cost. Investment income has been allocated to each fund based on investments held by the fund. - 18 -