Village of Gurnee, Illinois

Transcription

Village of Gurnee,
Illinois
Comprehensive
Annual
Financial Report
Year Ended April 30, 2010
VILLAGE OF GURNEE,
ILLINOIS
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
April 30, 2010
Issued by
Diane Lembesis, CPA, CPFO
Director of Finance
and
Kim Britt
Rhonda Evans
Nadine Martinez
Members of the Finance Department
VILLAGE OF GURNEE, ILLINOIS
April 30, 2010
CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal From the Village Administrator and Finance Director
And Certificate of Achievement for Excellence in Financial Reporting...................
i
Principal Officials ...................................................................................................................
viii
Organizational Chart .............................................................................................................
ix
FINANCIAL SECTION
Independent Auditors’ Report ....................................................................................................
1
Required Supplementary Information:
Management’s Discussion and Analysis .............................................................................
3
Basic Financial Statements:
Village-Wide Financial Statements
Statement of Net Assets .........................................................................................................
Statement of Activities ...........................................................................................................
24
25
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................................................
26
Reconciliation of Governmental Funds Balance Sheet to Statement of
Net Assets ..............................................................................................................................
27
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ...........................................................................................................
28
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ....................
29
Statement of Net Assets – Proprietary Funds.....................................................................
30
Statement of Revenues, Expenses and Changes in Net Assets –
Proprietary Funds.................................................................................................................
31
April 30, 2010
CONTENTS
FINANCIAL SECTION (Continued)
Statement of Cash Flows – Proprietary Funds ...................................................................
32
Statement of Fiduciary Net Assets – Fiduciary Funds ......................................................
33
Statement of Changes in Fiduciary Net Assets – Fiduciary Funds .................................
34
Notes to Financial Statements ...............................................................................................
35
Required Supplementary Information:
Budgetary Comparison Schedule
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual – General Fund ..........................................................
Notes to Required Supplementary Information .......................................................................
Schedules of Funding Progress ...................................................................................................
Schedules of Employer Contributions .......................................................................................
68
69
70
74
Combining and Individual Fund Financial Statements and Schedules:
Major Governmental Funds
General Fund
Budget (GAAP Basis) and Actual ......................................................................................
Schedule of Detailed Revenues – Budget (GAAP Basis) and Actual ..............................
Schedule of Expenditures – Budget (GAAP Basis) and Actual .......................................
77
78
81
Capital Projects Fund:
Capital Improvement Fund
Budget (GAAP Basis) and Actual ................................................................................
84
Non-major Governmental Funds
Combining Balance Sheet ......................................................................................................
85
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances .......................................................................................................................
87
April 30, 2010
CONTENTS
Special Revenue Funds:
911 Fund
89
Motor Fuel Tax Fund
90
Impact Fund
91
Asset Forfeiture Fund
Schedule of Revenues and Changes in Fund Balance –
92
Debt Service Fund:
Debt Service Fund
93
Proprietary Funds:
Golf Course Fund
Schedule of Revenues, Expenses and Changes in Net Assets –
94
Water and Sewer Fund
Combining Balance Sheet ...............................................................................................
Combining Statement of Revenues, Expenses and Changes in
Net Assets .......................................................................................................................
96
Water and Sewer Operating Account
97
Water and Sewer Capital Account
98
95
April 30, 2010
CONTENTS
Pension Trust Funds
Combining Statement of Plan Net Assets.....................................................................
Combining Statement of Changes in Plan Net Assets ................................................
99
100
Police Pension Trust Fund
Schedule of Changes in Plan Net Assets – Budget (GAAP Basis)
and Actual .......................................................................................................................
101
Firefighters’ Pension Trust Fund
Schedule of Changes in Plan Net Assets – Budget (GAAP Basis)
and Actual .......................................................................................................................
102
Agency Fund:
Special Service Area #2 Fund
Statement of Changes in Assets and Liabilities ...........................................................
103
STATISTICAL SECTION (Unaudited)
Village-Wide Information
Net Assets by Component .....................................................................................................
Changes in Net Assets ...........................................................................................................
Program Revenues by Function/Program .........................................................................
Fund Balances, Governmental Funds ..................................................................................
Changes in Fund Balances, Governmental Funds .............................................................
Tax Revenues by Source, Governmental Funds.................................................................
Equalized Assessed Value (EAV) and Estimated Actual Value
Of Taxable Property .............................................................................................................
Direct and Overlapping Property Tax Rates ......................................................................
Principal Property Tax Payers, Current Year and Nine Years Ago ................................
Taxable Sales by Category .....................................................................................................
Direct and Overlapping Sales Tax Rates, Last Ten Fiscal Years ......................................
Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years ..............................
Direct and Overlapping Governmental Activities Debt ...................................................
Debt Margin Information ......................................................................................................
Pledged-Revenue Coverage ..................................................................................................
Demographic and Economic Statistics ................................................................................
Principal Employers ...............................................................................................................
Full-time-Equivalent Employees by Function/Program ..................................................
Operating Indicators by Function/Program ......................................................................
Capital Asset Statistics by Function/Program ...................................................................
104
105
106
107
108
110
111
112
113
115
117
118
119
120
122
123
124
125
126
128
INTRODUCTORY SECTION
This section includes miscellaneous data regarding the Village of Gurnee including the
following: Principal Officials, Organizational Chart, Certificate of Achievement for Excellence
in Financial Reporting, and Letter of Transmittal from Village Administrator and Finance
Director.
September 24, 2010
To the Mayor, Village Trustees, and Citizens of the Village of Gurnee:
Transmittal of the Comprehensive Annual Financial Report:
Please read this Transmittal Letter in conjunction with Management’s Discussion and
Analysis, which begins on page 3.
The Comprehensive Annual Financial Report (CAFR) of the Village of Gurnee for the
year ended April 30, 2010, is submitted herewith. The CAFR is the management’s annual
report to its taxpayers, governing board, oversight bodies, investors and creditors.
The CAFR was prepared generally in accordance with Standards prescribed by the
Governmental Accounting Standards Board (GASB), the Government Finance Officers
Associations (GFOA) of the United States and Canada, the State Auditor’s Office, State
of Illinois and Village ordinances.
Village Management is responsible for all financial transactions for the Village of Gurnee
and for the content of this CAFR. We believe the data, as presented, are accurate in all
material aspects and are reported in a manner designed to present fairly the financial
position and results of operations of the various funds of the Village. All disclosures
necessary to enable the reader to gain an understanding of the Village of Gurnee’s
financial activities have been included.
Management is responsible for its system of internal accounting controls. Internal
accounting controls are designed to provide reasonable, but not absolute, assurance
regarding: 1) The safeguarding of assets against loss from unauthorized use or
disposition; and 2) The reliability of financial records for preparing financial reports and
maintaining accountability for assets. The concept of reasonable assurance recognizes
that: 1) The cost of control should not exceed the benefits likely to be derived; and 2) The
valuation of costs and benefits requires estimates and judgments by management.
The modified accrual basis of accounting is utilized for general government operations
such as the General, Special Revenue and Capital Project Funds; while the Enterprise
i.
funds such as Waterworks and Sewage, and Golf Course, are accounted for on an accrual
basis.
Independent Audit
State statutes require an annual audit by independent certified public accountants. The
accounting firm of Crowe Horwath LLP was selected for this purpose. Crowe Horwath
LLP audited the Village’s records and their opinion is included in this report.
Profile of the Village of Gurnee
The Village of Gurnee (the “Village”) was incorporated as a Village in 1928 with 200
residents and has grown to approximately 31,170 residents. The Village experienced a
majority of its growth from 1970 to 2000. During that timeframe, the Village population
grew from 2,738 to 28,834 residents which equates to a 1053% increase in population
over a 30-year period. The Village is located in central Lake County, Illinois and lies
approximately 38 miles north of the City of Chicago, Illinois and eight miles west of
Lake Michigan. The Village covers an area of approximately thirteen and one-half square
miles. Located within commuting distance of Chicago, Illinois and Milwaukee,
Wisconsin, the Village has experienced strong growth in taxable valuation with new
residential, commercial, and industrial construction. Neighboring communities include
Waukegan and North Chicago to the east, Libertyville and Lake Bluff to the south,
Wadsworth and Old Mill Creek to the north and Grayslake and Lindenhurst to the west.
Gurnee is a balanced community with approximately 59% of its land zoned residential,
21% commercial, 8% industrial, and 12% parks/open space. With the amount of
undeveloped land in the community becoming increasingly scarce, and the existence of
boundary agreements with surrounding communities, the Village is approaching buildout. Given this situation, the Village has started to shift its focus towards in-fill
development.
Residents of Gurnee enjoy a plethora of exceptional services, programs, and facilities in a
cost-effective and efficient manner. Gurnee’s children receive a well-rounded, quality
education via two elementary school districts and one high school district. The
community is also fortunate to have a DeVry University Center and a Columbia College
campus in the Tri-State Business Park. Recreational facilities, parks and preserves are
provided by the Gurnee Park District. The Park District offers 27 park sites including 2
community centers, an outdoor aquatic center, bike paths, 24 playgrounds, 14 basketball
courts, 6 tennis courts, 5 volleyball courts, 20 soccer fields, 9 baseball fields, 3 skate
parks and a 4,000 square foot fitness center. The Gurnee Park District provides a full
range of activities, recreation services and programs including aquatics, fitness, athletic
leagues, before and after school programs, trips, day camps, arts & crafts, music, martial
arts, and dance. Programs and services are provided for persons with disabilities through
the Park District’s participation in the Warren Special Recreation Association. Special
ii.
programs and luncheons for seniors are held monthly at the Viking Park Dance Hall. The
Park District sponsors the Viking Park Singers, an adult chorus that performs several
concerts throughout the year. A variety of special events are offered annually in Gurnee,
including the Farmer’s Market, the annual 10K Race and 2 Mile Fun Run/Walk, Lunch
with the Easter Bunny, the Halloween Trick or Treat Path, Italian Fest, Breakfast with
Santa, and a Summer Concert Series in Viking Park. Brochures featuring recreational
programs are mailed quarterly to residents. The Village also has a very active library
district that offers many innovative features and services. The Village’s senior population
is served by the Warren Township Senior Center. The Center provides services such as
health screening, exercise programs, educational opportunities and a variety of social
clubs tailored to senior residents.
Gurnee successfully maintains its small-town feel. The annual Gurnee Days celebration,
established by a group of devoted residents over 35 years ago, gives friends and
neighbors a chance to get together and enjoy a family-oriented festival. The Village is
home to more than 33 grassroots organizations that focus on improving the community
and providing resources to residents.
The Village is a home-rule unit by virtue of its population. As a home-rule unit, the
Village has no tax rate or debt limitations, nor is it required to sponsor a referendum to
issue debt or increase property taxes. The Village President and six-member board,
elected to four-year overlapping terms, govern the Village. The Village Clerk is elected
for a four-year term, and the Village Treasurer is appointed by the Board. In addition the
Board appoints a Village Administrator, Attorney and other key department heads. The
Village Administrator oversees the day-to-day operations of the Village. The Village’s
Mission Statement provides guidance to elected officials, department heads, and staff in
the day-to-day management of the Village.
It is the Mission of the Village of Gurnee to provide quality services,
programs, and facilities to all citizens of the community in a cost-effective
and efficient manner, as well as to facilitate partnership with all members
of the community to make Gurnee a better place to live, work, and play.
Village services are divided among five major areas, including Administration,
Community Development, Police, Fire, and Public Works. Within each department are
specialized divisions, which further delineate responsibility centers. The Village
has approximately 228 full-time equivalent positions, with approximately 155 of those
dedicated to public safety operations. Most police officers are represented by the
Fraternal Order of Police (FOP). The most recent collective bargaining agreement
expired on April 30, 2010. A smaller number of police officers are represented by the
Illinois Council of Police (ICOPs); their agreement expires April 30,
2011. Firefighter/Paramedics and Fire Lieutenants are represented by the International
Association of Firefighters; their collective bargaining agreement expires on April 30,
2011. The International Union of Operating Engineers represents groups in the Public
Works Department and a second Administrative Unit that includes clerical, building,
iii.
engineering and fire inspectors. The contract between the Village and these units expired
on April 30, 2010.
Additionally, the International Union of Operating Engineers - Local 150 represents two
groups of employees - Public Works and Administrative (administrative support,
building, engineering, and fire inspection) personnel. The current collective bargaining
agreements covering these groups expired on April 30, 2010.
The Village prepares a budget for all funds on an annual basis. The budget develops
through the financial and operational planning process, and serves as the guide for
implementing those plans. The process brings together input from the elected officials,
executive-level managers, department staff, and the public to shape the Village’s goals
and objectives. The proposed budget is made available to the public, both in hardcopy
format at Village Hall and electronic format on the Village’s website, www.gurnee.il.us.
A series of public hearings are held in the spring. The Village Administrator, Finance
Director and individual department heads are present at the hearings to address issues and
concerns by the Mayor, Trustees, and general public. After the public hearings, the
budget may be further revised and passed without further inspection, notice or hearing.
The final budget is usually passed in April. The appropriation ordinance, the legally
binding spending limit, is prepared by the Finance Director. The Village appropriates the
budget by fund, and further delineates by cost center and expenditure category. In
general, appropriations for operational units are set 25% higher than the budgeted
amounts to allow departments the flexibility to affect budget transfers within their cost
centers, as needed. Departments must manage their operations within the adopted plan.
Any transfers necessary to adjust the budget may be made by Village Management, as
long as the changes do not exceed the approved appropriation. Transfers within an
expenditure category must be approved by the Finance Director, and if transfers cross
expenditure categories, they require further approval by the Village Administrator. If
these circumstances arise, changes to the appropriation must be brought back before the
Board as an Appropriation Transfer Ordinance for approval. If there is a significant
change to the total budget, a Supplemental Appropriation Ordinance must be submitted to
the Board for approval.
Village officials believe a formalized strategic plan integrates
operational financial and long-term goals. By developing a
multi-year strategic plan, the Village garners data and
stakeholder input critical to establishing a sound base for future
financial and non-financial decision making. The Village’s
strategic plan is based on its Vision. Working together, elected
officials, staff and representative members of the community articulated four key visions.
The first vision is for our community to be effectively defined by a sense of place,
collaboration, entrepreneurial spirit, and openness to diversity and traditions. From this,
our strategic goals include fostering a unique identity that promotes community pride,
collaborating with other groups to promote a sense of place and improve the character of
the Village, improve retail opportunities, and implement an attainable housing program.
iv.
To help achieve our vision/strategic goals, we participated in the first annual Heritage
Festival and continued to participate in the “Welcome to Gurnee” event.
Our second vision is that we communicate and educate, in multiple ways, to multiple
audiences. The strategic goals stemming from this vision include effectively using the
Village website and newsletter, increasing communication with business constituents,
and engaging citizens in various Village activities. During the year, we distributed over
150 e-mail announcements via the Village listserv, released over 40 press notices to the
local media, and conducted the eighth annual Community Feedback Survey.
The third vision is for motorists, pedestrians, and bicyclists to enjoy efficient local,
regional, and mass transportation options. Strategic goals are to pursue and advance
mass transit, expand the inter-connectedness of non-vehicular roadways, and improve
area mobility. The fourth vision is to regularly employ green initiatives in Village
operations and throughout the community. Strategic goals are to increase and improve
public spaces, increase environmental consciousness, mitigate potential long-term
flooding, and encourage recycling. The third and fourth visions are more long-range and
as such, are on-going.
Many factors have a long-term perspective when formulating the Village’s budget plan
for the year. The Engineering Department prepares a Capital Improvement Plan (CIP) on
a rolling five-year basis to identify capital projects and needed equipment replacement.
The capital plan provides for the preparation and maintenance of a long range
comprehensive plan for the continued physical development of the community. Capital
planning is imperative to control land use, determine the location and character of public
improvements, and provide for Village needs in a logical and efficient fashion while
staying within available financial resources. The CIP helps to evaluate proposals on
several criteria including need, availability of funds, infrastructure requirements, and
citizen input.
Consideration is given to the Village’s financial policies, including the Debt Policy and
General Corporate Fund Balance Policy. The Debt Policy provides guidance to the
Village not only as to how it manages the repayment of outstanding debt, but also
augments the Capital Improvement Plan by promoting long-term financial stability, and
assures that borrowing is done at the lowest cost to the community. The Village’s Fund
Balance Policy requires a minimum amount of unreserved fund balance, 35% of the
subsequent years’ expenditures, must remain in the General Fund at all times. The policy
further dictates that the unreserved fund balance for the General Fund must be reviewed
annually during the budget process.
Lastly, the Village Board appoints a Finance Committee made up of a Village Trustee as
Chairperson and at least four citizens. This Committee meets on a quarterly basis, and
working in conjunction with the Village Administrator and/or Finance Director, reviews a
financial forecast and provides feedback to the Village Board on financial trends,
concerns and solutions.
v.
Factors Affecting Financial Condition
The general financial condition of the Village remains stable with operating expenditures
funded from current revenues. The Village of Gurnee has not levied a property tax since
2000, instead relying on sales, amusement, food & beverage, state income and hotel and
resort taxes to fund government operations. While the economic downturn has taken a
toll on municipalities across the nation, the Village continues to work with area
businesses and retailers to ensure a viable economy that is attractive to residents and
visitors alike.
Six Flags Great America, a 300-acre amusement/water park, continues to attract
approximately 3 million visitors annually. The Village receives 3% of each admission
ticket sold, generating approximately $1.57 million in amusement tax revenue each year.
Six Flags Great America and Hurricane Harbor are top-notch family entertainment
destinations featuring thrilling rides and spectacular shows. Hurricane Harbor is a
Caribbean paradise boasting hundreds of wild and wet water activities for all ages. Six
Flags also has a third area called, “Wiggles World.” Devoted to kids, this area offers
pint-sized adventures designed for its younger visitors. In May 2008, the Six Flags
opened its new indoor rollercoaster – the Dark Knight. This new attraction has proved
highly popular. In 2009, Six Flags Great America declared bankruptcy. The bankruptcy
was used for debt restructuring as the amusement park continues to operate throughout
bankruptcy.
Gurnee Mills Mall continues to be a significant source of sales tax revenue for the
Village. Gurnee Mills ranks as one of the top tourist and shopping attractions in the State
of Illinois, hosting approximately 24 million shoppers annually. Gurnee Mills features the
best names in manufacturers’ and retail outlets including Bass Pro Shop, Banana
Republic Factory Outlet, Gap Outlet, Kohl’s, Sears Grand, Neiman Marcus Last Call and
Victoria’s Secret.
The Village’s newest regional attraction opened in February 2008. Located at the
northeast corner of I-94 & Grand Ave, Key Lime Cove Indoor Waterpark Resort & Spa
features a 414 room hotel, an indoor water park, world-class day spa, and unique dining,
entertainment, and shopping. Key Lime Cove Waterpark declared bankruptcy in 2009,
but continues to operate and experienced increased hotel occupancy rates in 2010.
While new commercial development slowed throughout 2009, several new businesses
opened including Rhapsody Café, Assured Home Health, and Nieman Marcus Last Call.
Redevelopment activity and renovation of existing businesses was apparent when the
former Monkey Dish restaurant converted to Timothy O’Toole’s Pub, Sebastian’s
restaurant converted to Gurneez Diner, and Value City converted to Value City Furniture.
Sam’s Club, Wal-Mart, Jewel/Osco, and Dominick’s all completed remodels of their
facilities, including the conversion of Wal-Mart to a Super Center with the addition of
60,000 square feet. Several new medical office buildings are currently under
construction.
vi.
Principal Officials
MAYOR
VILLAGE CLERK
Kristina Kovarik
Andy Harris
TRUSTEES
Jeanne Balmes
Greg Garner
Michael Jacobs
Kirk Morris
Cheryl G. Ross
Hank Schwarz
CITY ADMINISTRATOR
James T. Hayner
VILLAGE ATTORNEY
FINANCE DIRECTOR
Bryan Winter
Diane Lembesis, CPA, CPFO
POLICE CHIEF
FIRE CHIEF
Robert Jones
Fred Friedl III
PUBLIC WORKS DIRECTOR
VILLAGE ENGINEER
Tom Rigwood
Scott Drabicki, P.E.
INFORMATION SYSTEMS DIRECTOR
HUMAN RESOURCES DIRECTOR
Christopher Velkover
Christine Palmieri
COMMUNITY DEVELOPMENT DIRECTOR
ASST. TO CITY ADMINISTRATOR
David Ziegler, P.E.
Patrick Muetz
viii.
FINANCIAL SECTION
This section includes:
•
Independent Auditors’ Report
•
Management’s Discussion and Analysis
•
Basic Financial Statements
•
Required Supplementary Information
•
Combining and Individual Fund Financial Statements and Schedules
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
The Honorable Village President and
Members of the Board of Trustees
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Village of Gurnee, Illinois (“the Village”) as of and for the year ended April 30, 2010, which
collectively comprise the Village’s basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the Village’s management.
Our
responsibility is to express opinions on these basic 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 basic financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the basic financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall basic financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the Village as of April 30, 2010,
and the respective changes in financial position and cash flows, where applicable, for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
The Management’s Discussion and Analysis, schedules of funding progress and employer
contributions for pensions and other post employment benefits and budgetary comparison
schedule are not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted in the United State of
America. We have applied certain limited procedures, which consisted primarily of inquiries of
management regarding the methods of measurement and presentation of the supplementary
information. However, we did not audit the information and express no opinion on it.
1.
Our audit was conducted for the purpose of forming opinions of the financial statements that
collectively comprise the Village’s basic financial statements.
The accompanying
supplementary information, including the introductory section, the combining and individual
fund financial statements and schedules, and statistical section for the year ended April 30,
2010, as listed in the accompanying table of contents 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 have been subjected to the auditing
procedures applied by us in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied by us in the audit of the basic financial statements and, accordingly, we express no
opinion on them.
Crowe Horwath LLP
Oak Brook, Illinois
September 24, 2010
2.
MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION & ANALYSIS
April 30, 2010
The Village of Gurnee’s discussion and analysis is designed to explain significant
financial issues, provide an overview of the Village’s financial activity, identify changes
in the Village’s financial position, identify material deviations from budget, and identify
individual issues and concerns.
This document should be read in conjunction with the Transmittal Letter and financial
statements.
FINANCIAL HIGHLIGHTS

Net Assets. The Village’s net assets as a result from operations are $158.9 million
for fiscal year ending April 30, 2010. Governmental net assets are $93.7 million
and business-type assets are $65.2 million. Governmental net assets decreased
$986 thousand and business-type net assets decreased $854 thousand for a total
decrease $1.8 million.

Revenues. For the fiscal year ended April 30, 2010, revenues from all activities
totaled $39.1 million. This is an increase of $303 thousand from the prior fiscal
year. Revenues increased $217 thousand or 1% in the governmental funds and
$86 thousand or 1% in the business–type funds.

Cost of Village Programs. The cost of all Village programs totaled $40.9 million.
This is an increase of $243 thousand or 1 % from the prior fiscal year. Expenses
increased $979 thousand or 3% in the governmental funds and decreased $737
thousand or 10% in the business-type funds.

General Fund. The General Fund reported revenues of $30.2 million and
expenditures of $29.8 million, resulting in an operating gain of $397 thousand.
Including net other financing uses of $550 thousand, there was a negative net
change in fund balance of $154 thousand in fiscal year 2010. The fund balance as
of April 30, 2010 was $21.7 million.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Village’s basic
financial statements.
The Village’s basic financial statements comprise three
components: 1) Village-wide financial statements; 2) fund financial statements; and 3)
notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements.
3.
April 30, 2010
USING THE FINANCIAL SECTION OF THIS ANNUAL REPORT
In the past, the primary focus of local government financial statements were
summarized by fund type and presented on a current financial resource basis. Now,
financial statements are presented from two perspectives: government-wide and major
fund. These perspectives allow the user to address relevant questions, broaden a basis
for comparison and enhance the Village’s accountability.
Village-wide Financial Statements
The Village-wide financial statements are designed to be corporate-like. Governmental
and business-type activities are consolidated into columns, which add to a total of
government activities.
The Statement of Net Assets combines and consolidates governmental funds, current
financial resources with capital assets and long-term obligations. It uses the accrual
basis of accounting and economic resources measurement focus. The Statement of Net
Assets can be found on page 24 of this report.
The Statement of Activities focuses on the growth and net costs of various activities.
General taxes and other resources pay for these activities. The Statement of Activities
summarizes the costs of various governmental services and can be found on page 25 of
this report.
The governmental activities reflect the Village’s basic services, which are police, fire,
emergency dispatch, public works, community development and administration.
Shared state sales and income taxes, amusement taxes, food & beverage and hotel and
resort taxes finance the majority of these services. The Village has not levied a property
tax for corporate purposes since 2000.
The business-type activities reflect private sector type operations, where the fees for
service are intended to cover the costs of operation, including debt service and
depreciation. The Village’s water and sewer user fees finance the majority of these
services. The Village also maintains a Golf Fund to account for the land owned by the
Village, but is currently privately operated under a long-term lease agreement.
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 Village uses fund
accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Village can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
4.
April 30, 2010
Traditional users of governmental financial statements will find the fund financial
statements presentation more familiar. The focus is on major funds rather than fund
types.
The governmental fund presentation is presented on a sources and uses of liquid
resources (cash & cash equivalents) basis. This is the manner in which the financial plan
is usually developed. The flow and availability of liquid resources is a clear and
appropriate focus of any analysis of the government. Funds are established for various
purposes and the fund financial statements allow the demonstration of sources and uses
and/or budgeting compliance associated therewith.
While the total column of the enterprise funds’ financial statements are the same as the
business type column on the Village-wide financial statements, the governmental funds’
total column requires reconciliation because of the different measurement focus (current
financial resources versus total economic resources) which is reflected on the page
following each statement. The flow of current financial resources will reflect bond
proceeds and inter-fund transfers as other sources and uses, as well as capital
expenditures and bond principal payments as expenditures. The reconciliation
eliminates these transactions and incorporates the capital assets and long-term
obligations into the governmental activities column in Village-wide statements. The
fund financial statements can be found on pages 26 – 32 of this report.
The Village as Trustee
The Village is trustee, or fiduciary, for its police and fire pension plans. All of the
Village’s fiduciary activities are reported in a separate Statement of Fiduciary Net Assets
and Statement of Changes in Fiduciary Net Assets. The Village excludes these activities
from the Village’s other financial statements because the Village cannot use these assets
to finance its operations. The Village is responsible for ensuring that assets reported in
these funds are used for their intended purposes. The fiduciary financial statements can
be found on pages 33 - 34 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the
information provided in the Village-wide and fund financial statements. The notes to
the financial statements can be found on pages 35 - 67.
Other Information
In addition to the basic financial statements, this report also includes certain required
supplementary information related to budgetary information and the Village’s progress
in funding its obligation to provide pension benefits to employees. Non-major fund
information can be found immediately following the required supplementary
information.
5.
April 30, 2010
VILLAGE-WIDE STATEMENTS & ANALYSIS
GOVERNMENTAL ACTIVITIES
Statement of Net Assets
The following chart reflects the condensed Statement of Net Assets:
CONDENSED STATEMENT OF NET ASSETS, AS OF APRIL 30
Governmental Governmental Increase/
Activities
Activities (Decrease)
2010
(in thousands)
Assets:
Current Assets
Net Pension Surplus
Unamortized bond issuance costs, net
Capital Assets, net of Depreciation
$
35,617 $
406
54
71,448
2009
34,533 $ 1,084
388
18
54
72,404
(956)
107,525
107,325
200
5,662
8,146
3,157
9,465
2,505
(1,319)
Total Liabilities
13,808
12,622
1,186
Net Assets:
Investment in Capital Assets,
net of Related Debt
Restricted Assets
Unrestricted Assets
63,055
3,499
27,163
63,265
4,357
27,081
(210)
(858)
82
93,717 $
94,703 $
(986)
Total assets
Liabilities:
Curent Liabilities
Non-Current Liabilities
Total Net Assets
$
The current
fiscal year’s
governmental activities left the Village with $93.7 million in net assets, of which $63
million is invested in capital assets (net of related debt), $3.5 million is restricted and
$27.2 million is unrestricted. Overall, net assets have decreased by $1 million since the
last fiscal year.
6.
April 30, 2010
Statement of Activities
Governmental activities are broken out by functional area for program revenues and
expenses: General Government; Public Safety; Highway and Streets; and Interest on
Long-Term Debt. General Revenues are separated by Taxes, Investment Earnings,
Gain/Loss on Sale of Property and Miscellaneous Revenues.
CONDENSED STATEMENT OF ACTIVITIES, AS OF APRIL 30
Governmental Governmental Increase/
Activities
Activities
(Decrease)
2010
2009
(in thousands)
Revenues:
Program Revenues:
Charges for Services
$
6,590 $
5,719 $
871
Operating Grants
and Contributions
93
69
24
Capital Grants
and Contributions
1,382
329
1,053
General Revenues:
Taxes
24,710
26,145
(1,435)
Investment Earnings
80
380
(300)
Gain/Loss on Property Sale
49
12
37
71
(33)
Miscellaneous Revenue
38
Total Revenues
32,942
32,725
217
Expenses:
General Government
Public Safety
Highways & Streets
Interest on Long-Term Debt
5,890
21,498
6,604
516
6,866
19,550
6,837
275
(976)
1,948
(233)
241
Total Expenses
34,508
33,528
Excess (Deficiency) before transfers
Net transfers
Change in net assets
Net assets, beginning of year
(1,566)
580
(986)
94,703
(803)
550
(253)
94,956
Net assets, end of year
$
93,717
$
$
980
94,703
7.
April 30, 2010
Expenses for the fiscal year exceeded revenues, resulting in a decrease to net assets,
before transfers, of $986 thousand. Overall revenues remained relatively stagnant with
last fiscal year; revenues increased $217 thousand or .007%. Expenses increased by $980
thousand or 3%.
Charges for services revenue had a sizable increase over last fiscal year, 15% (after a 10%
decrease the preceding year), which demonstrates that the Village might be slowly
recuperating from the economic downturn. This revenue category includes building
permits and inspection fees.
There was a 5.5% or $1.4 million decrease in total tax revenues from the last fiscal year.
Sales tax declined by $580 thousand 4% versus the prior year. Sales tax is highly
dependent on economic conditions and consumer confidence; therefore, it is not
surprising this revenue declined. The Village receives 1% of the state collections from
the 7% state rate for retail sales of general merchandise, and receives 100% of the
collections from the 1% state rate for sales of qualifying food, drugs, and medical
appliances. In addition, the Village imposes a 0.5% “home rule” sales tax.
The Village imposes a 3% amusement tax on net receipts. Total revenues declined $166
thousand or 8% from the previous fiscal year.
Six Flags generates the bulk of
amusement tax. In June 2009 Six Flags filed for bankruptcy mostly to restructure debt;
the Gurnee location is one of the organization’s highest grossing locations. Village
8.
April 30, 2010
management is in constant contact with the park’s management to monitor the viability
of their operation.
The food and beverage tax decreased $51 thousand or 3% from the prior fiscal year. This
relatively modest decrease was a sign of the economic recession.
Other taxes, including cable TV, alarm, and telecomm franchise taxes, decreased $310
thousand, from 16%, from last year. These taxes are a percentage of fees charged by
providers. The cable franchise tax is 5%, the resort tax is 2%, and the hotel tax is 5% of
rent receipts. Combined, resort and hotel taxes declined $199 thousand or 16%.
KeyLime Cove Resort and Conference Center, which opened in the spring of 2008,
declared bankruptcy in 2009, but like Six Flags, this bankruptcy was for debt
restructuring.
General Revenues: Intergovernmental Taxes
3,000
(in thousands)
2,500
2,000
1,500
1,000
500
-
Motor Fuel Tax
Income Tax
2010
865
2,568
2009
856
2,757
The motor fuel tax is imposed on the privilege of operating motor vehicles on public
highways and recreational watercraft on waterways in Illinois. It is paid by distributors
and suppliers who collect the tax from their customers. The State collects this tax and
distributes according to population. Total receipts increased $9 thousand or 1%. Fuel
costs fluctuated throughout the year and demand remained stagnant throughout the
recession.
Income tax decreased $189 thousand or 7% from the prior fiscal year. Individuals,
trusts and estates pay 3% of net income and corporations pay 4.8% of net income. Local
9.
April 30, 2010
governments receive one-tenth of the net collections of all income tax received based on
their population in proportion to the total state population. The population figures are
determined based on the latest census conducted by the United States Bureau of the
Census and certified by the Office of the Secretary of State. The Census Bureau began
the process of taking a new census in the spring of 2010. Due to the state’s fiscal crisis,
State officials have suggested raising the state income tax rate and/or decreasing the
municipalities’ percentage share of income tax receipts. The state of Illinois has
significantly declared forwarding income taxes to municipalities; often receipts are five
months delinquent.
Interest income declined $300 thousand, or 79%, as the Village’s cash balances were
invested in short-term, government securities that were negatively impacted by the low
interest rate environment.
General Governmental Expenses
25,000
(in thousands)
20,000
15,000
10,000
5,000
-
General
Govt
Public
Safety
Highway &
Street
Interest
2010
5,890
21,498
6,604
516
2009
6,866
19,550
6,837
275
Governmental Expenses include the costs of providing services to Village residents in
the areas of Administration and Community Development, Public Safety and Public
Works. In addition, the interest payment toward outstanding long-term debt, and
depreciation expense on capital assets are included in the Statement of Activities.
General Government expenses decreased $976 thousand or 14% from the prior fiscal
year. Once elected officials and staff realized that revenues would be stagnant or
decreasing, they curtailed any and all discretionary expenses. General Government
expenses include the costs associated with the Administration, Human Resources,
10.
April 30, 2010
Finance, Information Systems, Engineering and Building & Zoning divisions, as well as
the Village’s contractual obligations which include tax sharing agreements,
contributions to the Gurnee Park District, Gurnee Days Corporation, and Lake County
Convention Bureau.
Public Safety expenses increased $1.9 million or 10% from the prior fiscal year. This
reflects the general feeling that public safety expenses are the last to be cut in times of
budget constraints. Public Safety consists of the operation of the Village’s Police
Department, Fire Department, Emergency Dispatch and 911 related projects.
Highways & Streets, including Public Works, Vehicle Maintenance and the Village’s
routine repair and maintenance projects, decreased $233 thousand or 3% from the prior
year.
The Village issued refunding bonds in December 2009 and continues to pay down
existing debt. The Village abates the property tax levy related to debt service on
outstanding bonds; fund balances are used to meet the General Governmental share of
debt service.
Net transfers account for the in and out-flow of funding from one individual fund to
another. These transfers represent the transfer of funding from the Utility (Water &
Sewer) Fund to the General Fund in order to cover its share of administrative overhead
costs.
BUSINESS-TYPE ACTIVITIES
Statement of Net Assets
The following chart reflects the condensed Statement of Net Assets:
11.
April 30, 2010
CONDENSED STATEMENT OF NET ASSETS, AS OF APRIL 30
Business-type Business-type
Activities
Activities
2010
2009
(in thousands)
Assets:
Current Assets
Capital Assets, net of
Depreciation
$
4,514 $
Increase/
(Decrease)
4,243 $
271
61,624
62,772
(1,148)
66,138
67,015
(877)
Liabilities:
Curent Liabilities
Non-Current Liabilities
925
45
897
95
28
(50)
Total Liabilities
970
992
(22)
61,624
3,544
62,542
3,480
(918)
64
65,168 $
66,022 $
(854)
Total assets
Net Assets:
Investment in Capital Assets
Unrestricted Assets
Total Net Assets
$
The current year’s business-type activities left the Village with $65 million in net assets,
of which $61.6 is investment in capital assets (net of related debt) and $3.5 million is
unrestricted. Overall, net assets have decreased by $854 thousand since last year.
Statement of Activities
Business-type activities are distributed by functional area for Water & Sewer and Golf
Course. Water & Sewer revenues are, for the most part, fees charged for water
consumption and sewage transmission, as well as limited revenues from connection fees
and investment income. As the Golf Course is currently operated by a private party, the
only source of revenue for both fiscal years is investment income.
12.
April 30, 2010
CONDENSED STATEMENT OF ACTIVITIES, AS OF APRIL 30
Business-type Business-type Increase/
Activities
Activities (Decrease)
2010
2009
(in thousands)
Revenues:
Program Revenues:
$
6,098 $
5,864 $
234
Operating Grants
and Contributions
12
133
(121)
General Revenues:
Investment Earnings
11
37
(26)
Total Revenues
6,121
6,034
87
Expenses:
Water & Sewer
Golf Course
6,395
-
6,731
400
(336)
(400)
Total Expenses
6,395
7,131 $
(736)
Excess (Deficiency) before transfers
Net transfers
Net assets, beginning of year
Net assets, end of year
$
(274)
(580)
(854)
66,022
(1,097)
(550)
(1,647)
67,671
65,168 $
66,022
Expenses for the fiscal
year exceeded revenue, resulting in a deficiency before transfers of $274 thousand.
Overall revenues increased $87 thousand or 1% from last fiscal year. Expenses
decreased by $736 thousand or 10% from last year.
13.
April 30, 2010
Business-type Revenues
7,000
6,000
(in thousands)
5,000
4,000
3,000
2,000
1,000
-
Charges for
Service
Connection Fees
Interest
2010
6,098
12
11
2009
5,863
133
37
Charges for services increased $234 thousand or 4% from last fiscal year. The Village
increased water rates effective January 2010. Before this, the last time water rates were
increased was 2002. KeyLime Cove Resort and Conference Center, which opened in the
spring of 2008, is a high volume water user. This facility declared bankruptcy in 2009,
but continues to operate and remains a going concern.
Connection fees decreased $121 thousand or 10%. This is consistent with the number of
building permits issued and the decline in development due to the economic downturn.
Interest income declined $26 thousand, or 73%. The Village’s cash balances are invested
in short-term, government securities that were negatively impacted by the low interest
rate environment.
14.
April 30, 2010
Business-type Operating Expenses
5,000
4,500
(in thousands)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Operations
Depreciation
Interest Payment
2010
5,242
1,147
6
2009
5,570
1,147
14
Business-type expenses decreased 10% from last fiscal year. The expenses include the
costs of providing Village’s water and sewage services to residents and business. The
costs are broken down into two areas, operations and depreciation. Within the $5.2
million of operations expenses, $3.1 million, or 60%, accounts for payments made to the
Central Lake County Joint Action Water Agency (CLC-JAWA). The Village purchases
water from CLC-JAWA and then “re-sells” the water to the Village’s water customers.
The current Village rate for water is $4.45 per 1,000 gallons, with a minimum charge
based on meter size. Depreciation remained the same as the prior year. Interest expense
decreased by $8 thousand over the prior year which correlates to a decrease in the total
debt outstanding – see page 52 for additional information on the long-term debt
outstanding.
Net transfers account for the in and out-flow of funding from one individual fund to
another. These transfers represent the transfer of funding from the Utility (Water &
Sewer) Fund to the General Fund in order to cover its share of administrative overhead
costs.
15.
April 30, 2010
BUDGET HIGHLIGHTS
The Village adopts a budget on a fund basis consistent with generally accepted
accounting principles. The budget document is the result of the Village’s financial and
operational planning process and serves as the guide for implementing those plans. The
process brings together input from the elected officials, executive-level managers,
departmental staff and the public to shape the Village’s goals and objectives. While the
Finance Director projects what fund balances will remain at the end of the current fiscal
year to determine a “bottom line,” as well as standard increases as dictated in union
contracts and the like, the Departments are responsible for assessing current conditions,
programs and needs. The Village Administrator and Finance Director meet with the
individual department heads to discuss their initial funding requests. They review
major operating changes, discuss objectives and review capital project requests. An
effort is made to combine requests across departments and to discuss more efficiently
accomplishing departmental goals. Any unjustified items are cut from the budget at this
time.
A series of public hearings are held in the spring. The Village Administrator, Finance
Director and individual department heads are present at the hearings to address issues
and concerns by the Mayor, Trustees and public. The tentative budget must be available
for public inspection at least ten days prior to passage and a notice of public hearing
must be published in a local newspaper at least one week prior to the hearing. After the
public hearings, the budget may be further revised and passed without further
inspection, notice or hearing. The final budget and appropriation ordinance is usually
passed in April.
A budget and actual comparison is provided in the General Fund. The General Fund is
the major fund component of the Governmental Activities statements and accounts for
the bulk of the Village’s revenue receipts and disbursements related to government
services. The Schedule of Revenues, Expenditures and Changes in Fund Balance,
Budget and Actual, can be found on page 77, the Schedule of Detailed Revenues Budget
and Actual, on pages 78 - 80, and the Schedule of Expenditures Budget and Actual
beginning on pages 81 -83 of this report.
16.
April 30, 2010
General Fund, Fiscal Year Ended April 30, 2010
Budget
Revenues
Taxes
Licenses & Permits
Charges for Service
Fines & Forfeitures
Donations
Intergovernmental
Interest
$
Actual
Variance
from Budget
22,195,400 $ 21,214,521 $
821,400
717,158
1,222,175
1,180,125
978,100
1,644,058
8,800
31,065
5,737,980
5,355,649
60,990
300,000
(980,879)
(104,242)
(42,050)
665,958
22,265
(382,331)
(239,010)
-4%
-13%
-3%
68%
253%
-7%
-80%
Total Revenues
31,263,855
30,203,566
(1,060,289)
-3%
Expenditures
General Government
Public Safety
Highways & Streets
Capital Outlay
6,285,231
20,392,282
3,583,099
294,660
5,873,843
20,156,325
3,508,533
268,355
(411,388)
(235,957)
(74,566)
(26,305)
-7%
-1%
-2%
-9%
Total Expenditures
30,555,272
29,807,056
(748,216)
-2%
708,583
396,510
(312,073)
Excess (deficiency) of revenues
over expenditures
Other Financing Sources/(Uses)
Transfers in
Sale of Assets
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balance
Fund Balance beginning of year
Fund Balance end of year
$
580,000
35,000
(1,157,000)
600,665
105,104
(1,256,258)
20,665
70,104
(99,258)
4%
200%
9%
(542,000)
(550,489)
(8,489)
2%
166,583
(153,979) $
(320,562)
21,828,465
$ 21,674,486
The Village’s largest revenue source is made up of taxes consisting of sales tax,
amusement tax, food and beverage tax, hotel tax, resort tax and other taxes. General
Taxes, Licenses & Permits, Charges for Services, Intergovernmental Revenues (Income
Taxes), and Interest Income were less than budget. These under budget revenues are all
signs and results of the economic recession. The Village of Gurnee is particularly
dependent upon sales tax which came in $429 thousand or 3% under budget. Two
revenue categories, Fines & Forfeitures and Donations exceeded budget. Fines &
Forfeitures exceeded budget principally because of Redlight traffic revenues. Total taxes
were $981 thousand or 4% under budget.
17.
April 30, 2010
General Fund Revenues
25,000
(in thousands)
20,000
15,000
10,000
5,000
-
Fines &
Donate
Forfeit
Intergo
Interest
v
Taxes
License
Permit
Charge
Serv
Budget
22,195
821
1,222
978
9
5,738
300
Actual
21,215
717
1,180
1,644
31
5,356
61
Licenses and Permits are mostly made-up of Building Permits, but also include Liquor
Licenses and Impact Fees. The actual revenues were 13% less than budget because of
the continued economic downturn and slowed development.
Charges for Services include, among other items, Ambulance Rescue Fees, Engineering
Fees and Inspections, DARE/School Police Liaison Charges, Insurance Proceeds, and
Cell Tower / Antenna rent. This category came in 3% under budget.
Fines and Forfeitures were 68% above budgeted revenue and include court fines, DUI
fines, parking fines and false alarm fines. The Village continues to aggressively enforce
and prosecute traffic, liquor and other laws and ordinances.
Donations exceeded budget projections by 250% because the Police and Fire
Departments each obtained a $11,000 grant from Key Lime Cove.
The Intergovernmental Revenues consist, most notably, of State Income Tax and Warren
Waukegan Fire Protection District contract payments. Income Tax receipts totaled $2.6
million which was $372 thousand lower than budget. Current Illinois income tax rates
are 3% for individuals, trusts and estates and 4.8% for corporations. Local governments
receive one-tenth of the net collections of all income tax received based on their
population in proportion to the total state population. The population figures are
determined based on the latest census conducted by the United States Bureau of the
Census and certified by the Office of the Secretary of State. The Village has a three-year
contract with the Warren-Waukegan Fire Protection District to provide Fire/Paramedic
18.
April 30, 2010
and Dispatch services. Revenues were $2.5 million, which was $33 thousand or 1% over
budget.
Interest income was significantly less than budgeted as the Village’s cash balances were
invested in short-term, government securities that were negatively impacted by the low
interest rate environment.
General Fund Expenditrues
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
General
Govt
Public
Safety
Highway &
Street
Capital
Budget
6,285,231
20,392,282
3,583,099
294,660
Actual
5,873,843
20,156,325
3,508,533
268,355
Total General Fund expenditures were less than budget by $748 thousand or 2%.
General Government expenses include the costs associated with the Administration,
Human Resources, Finance, Information Systems, Engineering, Building & Zoning
divisions as well as the Village’s Contractual Obligations cost center which covers tax
sharing arrangements, contributions to the Gurnee Park District, Gurnee Days
Corporation, Lake County Convention Bureau, and emergency expenses. Actual
expenses came under budget with a favorable variance of $411 thousand, or 7% below
budget. The Village aggressively monitored its expenditures during the fiscal year due
to revenue shortfalls related to the economic downturn. In addition, all departments
realized positive budget variances in the Employee Benefits line item due to health and
dental insurance premium increases being below budgeted estimates.
Public Safety consists of the operation of the Village’s Police Department, Fire
Department, Emergency Dispatch and 911 related projects. Public Safety expenses were
19.
April 30, 2010
$236 thousand or 1% under budget. Wages, Employee Benefits and Personnel Expense
account for 89% of the total Public Safety expenditures in the General Fund.
Highways & Streets, which includes the Public Works divisions of Streets and Vehicle
Maintenance, realized budget savings of $75 thousand or 2%. The primary reason for
the positive budget variance was due to cost savings in Street Maintenance
Commodities and Miscellaneous Vehicle Maintenance expenses.
Capital projects totaled $268 thousand for the fiscal year and were 26% under budget.
Capital purchases are fully expensed (versus capitalized) and are not depreciated in the
General Fund. Generally, the items are under $25 thousand and include computer
replacements, vehicle replacement, and other machinery and equipment. Savings were
accomplished through the careful bidding and award of contracts related to building
repair and equipment replacement.
Transfers into the General Fund relate to an allocation of administrative overhead
charged to the Utility (Water & Sewer) Fund. This covers costs associated with the
Village Administrator, Finance, Information Systems and Human Resources expenses
that would not otherwise be recouped from supporting the Utility operations and staff.
The Village’s General Fund Balance Policy requires 35% of the subsequent years’
budgeted expenditures to be held in reserve. For the year ended April 30, 2010, the
policy requires a reserve in excess of $11.3 million. The Village’s highly elastic revenues,
as well as the volatility of operating expenditures, make having sufficient balances
critical to achieve financial stability. For the same reason, credit rating agencies carefully
monitor levels of fund balance and unreserved fund balance in a government’s general
fund to evaluate a government’s continued credit-worthiness.
20.
April 30, 2010
General Fund
April 30, 2010 Fund Balance v. Reserve Requirement
25
$21.7
(in millions)
20
15
$11.3
10
5
Ending Fund Balance
Reserve Requirement
CAPITAL ASSETS
The Village’s investment in capital assets for its governmental and business-type
activities as of April 30, 2010 is shown below (net of accumulated depreciation). Readers
desiring more detailed information on capital asset activity should refer to Note 2 –
Detail Notes on All Funds, Capital Assets, beginning on page 50 of this report.
21.
April 30, 2010
CAPITAL ASSETS NET OF ACCUMULATED DEPRECIATION
AS OF APRIL 30
Increase/
2010
2009
(Decrease)
(in thousands)
Governmental Activities
Land (not depreciated)
$ 33,350 $
33,381 $
(31)
Construction in Process
562
562
Building & Improvements
13,961
14,319
(358)
Equipment
863
1,145
(282)
Vehicles
1,564
1,800
(236)
Infrastructure
21,148
21,759
(611)
Total Net Capital Assets
$
Land (not depreciated)
Building & Improvements
Water Plants & Mains
Sewer Plants & Main
Storm Sewers
Equipment
Vehicles
$
Total Net Capital Assets
$
Grand Total
71,448 $
72,404 $
Business-Type Activities
4,953 $
4,953 $
1,713
1,755
25,770
26,315
16,585
16,881
12,376
12,596
49
57
179
215
(956)
(42)
(545)
(296)
(220)
(8)
(36)
61,624 $
62,772 $
(1,148)
$ 133,072 $
135,176 $
(2,104)
The Village’s total capital assets, net of accumulated depreciation, decreased by $2.1
million from last fiscal year to the current fiscal year. Governmental Activities capital
assets declined by $956 thousand and Business-Type Activities decreased by $1.1
million. Depreciation expense for the fiscal year exceeded the additions to the Village’s
capital assets.
DEBT ADMINISTRATION
The Village issued refunding bonds in December 2009. The outstanding debt as of
April 30, 2010 is as follows:
Series 2002B General Obligation Bond
Series 2004 General Obligation Bond
Series 2009 General Obligation Bond
Total Outstanding
$
600,000
2,275,000
5,320,000
$
8,195,000
22.
April 30, 2010
The Village has abated property taxes for the General Obligation Bonds each year. To
date, the Illinois General Assembly has set no limits for home rule municipalities on the
amount of debt outstanding; however, the Village adopted a Debt Policy in December
2005 that uses the non-home rule limitation of 8.625% of the most recent Equalized
Assessed Valuation (EAV) of the property within the Village’s corporate limits. The
Village’s outstanding debt as of April 30th is .61% of EAV. Readers desiring more
detailed information on debt activity should refer to Note 2 – Detail Notes on All Funds,
Long-Term Debt, on page 52 of this report.
FUTURE EVENTS
Management is not aware of any currently known facts, decisions, or conditions that
would have a significant impact on the Village’s financial position (net assets) or results
of operations (revenues, expense, and other changes in net assets).
Elected officials and senior staff will work together to carefully weather the continuing
financial storm. By carefully monitoring expenses, the Village limited fiscal year general
fund losses to $154 thousand, maintained a healthy fund balance, limited lay-offs to
attrition, and most importantly continued providing exceptional services to residents.
CONTACTING THE VILLAGE’S FINANCIAL MANAGEMENT
This financial report is designed to provide residents, customers, investors and creditors
with a general knowledge of the Village’s finances and to demonstrate the Village’s
accountability for the money it receives. Questions concerning this report may be
directed to Diane Lembesis, Director of Finance, Village of Gurnee, 325 N. O’Plaine
Road,
Gurnee,
Illinois
60031.
E-mail
inquires
may
be
sent
to
[email protected].
23.
BASIC FINANCIAL STATEMENTS
The basic financial statements include integrated sets of financial statements as required by the
GASB. The sets of statements include:

Village-Wide Financial Statements

o
Governmental Funds
o
Proprietary Funds
o
Fiduciary Funds
In addition, the notes to the financial statements are included to provide information that is
essential to a user’s understanding of the basic financial statements.
STATEMENT 1
STATEMENT OF NET ASSETS
APRIL 30, 2010
Governmental
Activities
ASSETS
Current:
Cash and Cash Equivalents
Taxes Receivable
Receivables - Other, Net
Due from Pension Trust Fund
Inventories
Prepaid Items
Other Assets
Non-Current:
Net Pension Surplus
Unamortized bond issuance costs, net
Capital Assets:
Capital Assets not being Depreciated
Capital Assets, being Depreciated, Net
$
TOTAL ASSETS
LIABILITIES
Current:
Accounts Payable
Accrued Payroll
Claims Payable
Recapture Payable
Interest Payable
Other Payable
Unearned Revenue
Long-Term Obligations, Due Within One Year:
Bonds Payable
Fire Truck Note Payable
Compensated Absences
Non-Current:
Long-Term Obligations, Due in More Than One Year:
Other Post Employment Benefits
Bonds Payable
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted Assets:
Debt Service
Motor Fuel Tax
Unrestricted
Total Net Assets
$
28,229,966
5,974,740
971,305
80,675
160,907
187,264
11,987
Business-type
Activities
$
2,594,191
1,895,949
23,855
-
Total
$
30,824,157
5,974,740
2,867,254
80,675
160,907
211,119
11,987
406,353
54,324
-
406,353
54,324
33,912,312
37,535,690
4,953,190
56,671,272
38,865,502
94,206,962
107,525,523
66,138,457
173,663,980
1,426,676
403,325
314,945
88,591
419,347
1,278,937
320,348
16,614
4,237
334,225
204,657
-
1,747,024
419,939
319,182
334,225
88,591
624,004
1,278,937
1,000,000
52,508
678,080
45,204
1,000,000
52,508
723,284
678,083
127,799
7,340,303
13,808,594
45,204
970,489
723,287
127,799
7,340,303
14,779,083
63,055,191
61,624,462
124,679,653
1,365,412
2,133,593
27,162,733
93,716,929
3,543,506
65,167,968
1,365,412
2,133,593
30,706,239
158,884,897
See accompanying notes to financial statements.
$
$
24.
STATEMENT 2
STATEMENT OF ACTIVITIES
YEAR ENDED APRIL 30, 2010
Functions/Programs
Primary Government:
Governmental Activities:
General Government
Public Safety
Highways and Streets
Interest on Long-Term Debt
Total Government Activities
Business-Type Activities:
Water and Sewer
Golf
Total Business-Type Activities
Total Primary Government
Charges for
Services
Expenses
$
$
5,890,375
21,498,155
6,603,539
515,962
34,508,031
6,394,720
6,394,720
40,902,751
$
$
940,341
5,495,140
154,344
6,589,825
6,097,973
6,097,973
12,687,798
Program Revenues
Operating
Grants and
Contributions
$
$
92,986
92,986
12,121
12,121
105,107
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental
Business-Type
Activities
Activities
Total
Capital
Grants and
Contributions
$
$
1,382,231
1,382,231
$
1,382,231
(4,950,034)
(15,910,029)
(5,066,964)
(515,962)
(26,442,989)
$
$
General Revenues:
Taxes:
Municipal Sales Tax
Amusement Tax
Other Taxes
Motor Fuel Tax
Income Tax
Unrestricted Investment Earnings
Gain/Loss on Sale of Property
Miscellaneous Revenues
Transfers
Total General Revenues and Transfers
Change in Net Assets
(26,442,989)
(284,626)
(284,626)
(284,626)
(284,626)
(284,626)
(26,727,615)
15,244,824
1,832,389
4,199,602
865,169
2,568,297
79,747
48,698
38,622
580,008
25,457,356
10,409
(580,008)
(569,599)
15,244,824
1,832,389
4,199,602
865,169
2,568,297
90,156
48,698
38,622
24,887,757
(854,225)
(1,839,858)
(985,633)
Net Assets - Beginning
66,022,193
94,702,562
Net Assets - Ending
$
(4,950,034)
(15,910,029)
(5,066,964)
(515,962)
(26,442,989)
93,716,929
$
65,167,968
160,724,755
$
158,884,897
25.
STATEMENT 3
GOVERNMENTAL FUNDS
BALANCE SHEET
APRIL 30, 2010
General
Fund
ASSETS
Current:
Taxes Receivable
Receivables - Other
Due from Other Funds
Inventories
Prepaid Items
Other Assets
TOTAL ASSETS
$
$
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts Payable
Accrued Payroll
Claims Payable
Other Payable
Deferred Revenue
TOTAL LIABILITIES
$
FUND BALANCE
Reserved for:
Debt Service
Inventories
Prepaid Items
Other Assets
Unreserved, Reported in:
General Fund
Special Revenue Fund
Capital Projects Fund
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
$
Major Funds
Capital
Improvement Fund
18,833,150
5,841,711
943,850
80,675
160,907
48,105
11,987
25,920,385
1,284,437
403,325
314,945
418,346
1,824,846
4,245,899
$
$
$
2,397,460
139,159
2,536,619
139,914
650,285
790,199
Nonmajor
Governmental
Funds
$
$
$
6,999,356
133,029
27,455
7,159,840
2,325
1,001
3,326
Total
$
$
$
28,229,966
5,974,740
971,305
80,675
160,907
187,264
11,987
35,616,844
1,426,676
403,325
314,945
419,347
2,475,131
5,039,424
160,907
48,105
11,987
139,159
-
1,365,412
-
1,365,412
160,907
187,264
11,987
21,453,487
21,674,486
1,607,261
1,746,420
-
21,453,487
5,791,102
1,607,261
30,577,420
25,920,385
$
2,536,619
5,791,102
7,156,514
$
7,159,840
$
35,616,844
______________________________________________________________________________________________________________
26.
STATEMENT 4
RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET
TO STATEMENT OF NET ASSETS
APRIL 30, 2010
Total Fund Balances - Governmental Funds
$
30,577,420
Amounts reported for governmental activities in the net assets are
different because:
Capital assets used in governmental activities are not financial resources and therefore
are not reported in the funds:
Capital Assets
Accumulated Depreciation
90,457,437
(19,009,435)
Net Capital Assets
Some liabilities reported in the statement of net assets do not require the use of current
financial resources and therefore are not reported as liabilities in governmental funds.
These liabilities consist of :
General Obligation Bonds Payable
Note Payable
Other Post Employment Benefits
Interest Payable
71,448,002
8,340,303
52,508
678,083
127,799
88,591
Total Long-term liabilities
(9,287,284)
Some assets reported in the statement of net assets do not require the use of current
financial resources and therefore are not reported as assets in governmental funds.
These assets consist of the net pension surplus.
406,353
Costs related to the issuance of long-term debt are recorded as expenditures when incurred in
governmental funds, but are capitalized and amortized over the life of the debt issue in
the statement of net assets.
54,324
Some of the state's revenues will be collected after year-end but are not available soon
enough to pay for the current period's expenditures and therefore are deferred in the funds:
State Revenues Deferred in Funds
Net assets of governmental activities
1,196,194
$
94,395,009
________________________________________________________________________________________________________
27.
STATEMENT 5
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Major Funds
General
Capital
Improvement Fund
Fund
REVENUES
Taxes
Licenses and Permits
Charges for Service
Fines and Forfeitures
Donations
Intergovernmental
Interest
TOTAL REVENUES
$
EXPENDITURES
Current:
General Government
Public Safety
Capital Outlay
Debt Service:
Principal Payments
Interest Payments
Fees and Issuance Costs
TOTAL EXPENDITURES
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Sale of Assets
Proceeds from Bond Issuance
Premium on Bond Issuance
Payment to Bond Escrow
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
Fund Balance at beginning of year
Fund Balance at end of year
21,214,521
717,158
1,180,125
1,644,058
31,065
5,355,649
60,990
30,203,566
$
$
66,055
381,965
50
869,626
16,025
1,333,721
Total
$
21,214,521
783,213
1,562,090
1,644,058
31,115
7,711,006
79,747
33,025,750
5,873,843
20,156,325
3,508,533
268,355
1,243,694
187,209
1,009,106
850,900
5,873,843
20,343,534
4,517,639
2,362,949
29,807,056
102,093
5,407
1,351,194
910,000
346,258
55,024
3,358,497
1,012,093
351,665
55,024
34,516,747
396,510
137,269
(2,024,776)
(1,490,997)
600,665
105,104
(1,256,258)
(550,489)
-
1,256,258
5,320,000
145,303
(5,405,933)
(20,657)
1,294,971
1,856,923
105,104
5,320,000
145,303
(5,405,933)
(1,276,915)
744,482
(153,979)
137,269
(729,805)
(746,515)
21,828,465
$
1,485,731
2,732
1,488,463
Nonmajor
Governmental
Funds
21,674,486
1,609,151
$
1,746,420
7,886,319
$
7,156,514
31,323,935
$
30,577,420
______________________________________________________________________________________________________________
See accomapnying notes to financial statements.
28.
STATEMENT 6
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds
$
(746,515)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities
report depreciation expense to allocate those expenditures over the life of the assets.
Capital Outlay
Depreciation
666,054
(1,487,352)
Depreciation in Excess of Capital Outlay
(821,298)
Repayment of principal on long-term debt is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets:
Principal Retirement
1,012,093
In governmental funds, long-term debt is considered as an other financing source, but
in the Statement of Net Assets, debt is reported as a liability. In the current period, proceeds
were received from General Obligation Bonds.
(5,320,000)
The payment of $5,399,528 to a refunding escrow agent was recorded as other financing uses
in the governmental funds.
5,399,528
Bond premiums and issuance costs on the issuance were reported in the governmental
funds. However, these amounts have been deferred and amortized in the Statement of Net Assets.
Bond Premium
(145,303)
Issuance Costs
54,324
(90,979)
Gain on sale of assets is not included on fund statements.
(31,302)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the fund statements.
The change from fiscal year 2009 to 2010 consists of:
State Revenues
Contribution Revenue
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported in the governmental funds:
Increase in Compensated Absences
Increase in Net Pension Surplus
Increase in Other Post Employment Benefits
Decrease in Accrued Interest on Debt
Total Expenses of Non-Current Resources
Change in net assets of governmental activities
(662)
(301,704)
(81,331)
18,806
(64,605)
42,336
(84,794)
$
(985,633)
______________________________________________________________________________________________________________
29.
STATEMENT 7
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
APRIL 30, 2010
Golf
Course Fund
ASSETS
Current Assets:
Receivables - Other
Prepaid Items
$
Total Current Assets
Water and
Sewer Fund
10,122
-
$
2,584,069
1,895,949
23,855
Total
$
2,594,191
1,895,949
23,855
10,122
4,503,873
4,513,995
4,494,436
4,494,436
4,504,558
458,754
56,671,272
57,130,026
61,633,899
4,953,190
56,671,272
61,624,462
66,138,457
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Payroll
Medical Claims Payable
Recapture Payable
Other Payable
-
320,348
16,614
4,237
334,225
204,657
45,204
320,348
16,614
4,237
334,225
204,657
45,204
Total Current Liabilities
-
925,285
925,285
Noncurrent Liabilities
Total Noncurrent Liabilities
Total Liabilities
-
45,204
45,204
970,489
45,204
45,204
970,489
4,494,436
10,122
57,130,026
3,533,384
61,624,462
3,543,506
Noncurrent Assets:
Capital Assets:
Total Noncurrent Assets
TOTAL ASSETS
NET ASSETS
Invested in Capital Assets
Unrestricted
Total Net Assets
$
4,504,558
$
60,663,410
$
65,167,968
30.
STATEMENT 8
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
Golf
Course Fund
OPERATING REVENUES
Charges for Service
Total operating revenues
$
Water and
Sewer Fund
-
$
6,097,973
6,097,973
Total
$
6,097,973
6,097,973
OPERATING EXPENSES
Operations
Depreciation
Total operating expenses
-
Operating Income (Loss)
-
(291,038)
(291,038)
NONOPERATING REVENUES (EXPENSES)
Connection Fees
Interest Income
Interest Expense
Total nonoperating revenues (expenses)
14
14
12,121
10,395
(5,709)
16,807
12,121
10,409
(5,709)
16,821
Income (loss) before transfers
14
(274,231)
(274,217)
-
238,855
(818,863)
(580,008)
238,855
(818,863)
(580,008)
14
(854,239)
(854,225)
TRANSFERS
Transfers In
Transfers Out
Total transfers
Net Assets at beginning of year
Net Assets at end of year
5,241,807
1,147,204
6,389,011
4,504,544
$
4,504,558
5,241,807
1,147,204
6,389,011
61,517,649
$
60,663,410
66,022,193
$
65,167,968
31.
STATEMENT 9
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Golf
Course Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers
Payments to Suppliers
Payments to Employees
Net cash provided (used) by operating activities
$
Water and
Sewer Fund
-
$
5,671,918
(4,100,375)
(928,597)
642,946
Total
$
5,671,918
(4,100,375)
(928,597)
642,946
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Connection Fees
Transfers (to) from Other Funds
Interfunds
Net cash provided (used) by noncapital financing activities
-
12,121
(580,008)
(2,527)
(570,414)
12,121
(580,008)
(2,527)
(570,414)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Interest Payment on Bonds
Principal Payment on Bonds
Net cash provided (used) by capital and related financing activities
-
(9,030)
(230,000)
(239,030)
(9,030)
(230,000)
(239,030)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest
Net cash provided (used) by investing activities
14
14
10,395
10,395
10,409
10,409
Net increase (decrease) in cash and cash equivalents
14
(156,103)
(156,089)
Cash and Cash Equivalents - beginning of the year
Cash and Cash Equivalents - end of year
Reconciliation of operating income (loss) to net cash provided by
operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net cash provided by
operating activities:
Depreciation
Change in assets and liabilities:
Decrease (Increase) Receivables, net
Decrease (Increase) Prepaid Items
(Decrease) Increase Payables and Accruals
Net cash provided (used) by operating activities
10,108
2,740,172
$
10,122
$
$
-
$
-
$
-
2,584,069
(291,038)
2,750,280
$
$
1,147,204
$
(426,055)
1,422
211,413
642,946
2,594,191
(291,038)
1,147,204
$
(426,055)
1,422
211,413
642,946
The change in fair value of investments that are not cash and cash equivalents is not significant.
32.
STATEMENT 10
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
APRIL 30, 2010
Agency Fund
Special Service
Area #2 Fund
ASSETS
Investments:
$
Governmental Securities
Illinois Funds
Equities
Total Investments
Accrued Interest Receivable
Miscellaneous Receivables
Total Assets
LIABILITIES
Due to Bondholders
Due to Village
Accounts Payable
Total Liabilities
$
$
$
NET ASSETS
Held in Trust for Pension Benefits
Total Net Assets
Pension
Trust Funds
9,483
$
-
25,728,993
1,346,793
11,261,409
38,337,195
9,483
34,079
11,324
38,889,454
9,483
9,483
$
$
$
506,856
80,675
8,862
89,537
38,799,917
38,799,917
33.
STATEMENT 11
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Pension
Trust Funds
ADDITIONS
Contributions:
Employer
Plan Members
Total Contributions
$
Investment earnings:
Interest
Total Investment earnings
870,121
1,902,557
2,772,678
3,989,949
3,989,949
Less Investment Expenses
(56,632)
Total additions
6,705,995
DEDUCTIONS
Benefits and Refunds
Total deductions
1,364,666
1,364,666
5,341,329
Net assets - beginning of year
33,458,588
Net assets - end of year
$
38,799,917
34.
VILLAGE OF GURNEE
NOTES TO FINANCIAL STATEMENTS
April 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Gurnee, Illinois (“the Village”), incorporated in 1928, is a municipal corporation
governed by an elected president and six-member Board of Trustees. The Village’s major
operations include police and fire safety, highway and street maintenance and reconstruction,
building code enforcement, public improvements, economic development, planning and
zoning, water and sanitary sewerage services, golf course services, and general administrative
services.
The financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) as applied to government units. The
Governmental Accounting Standards Board (“GASB”) is responsible for establishing GAAP for
state and local governments through its pronouncements (Statements and Interpretations).
Governments are also required to follow the pronouncements of the Financial Accounting
Standards Board (FASB) issued through November 30, 1989 that do not conflict with or
contradict GASB pronouncements. The Village has the option to apply FASB pronouncements
issued after that date to its business-type activities and enterprise funds, but the Village has
chosen not to do so. The significant accounting policies used by the Village are described
below.
Reporting Entity: The Village’s financial reporting entity comprises the following:
Primary Government:
Village of Gurnee
Blended Component Units:
Police Pension Employees Retirement System,
Firefighters’ Pension Employees Retirement
System
In determining the financial reporting entity, the Village complies with the provisions of GASB
Statement No. 14 and 39, and includes all component units that have a significant operational or
financial relationship with the Village.
Blended Component Units – Blended component units are separate legal entities that meet the
component unit criteria described above and whose governing body is the same or substantially
the same as the Village Board or the component unit provides services entirely to the Village.
These component units’ funds are blended into those of the Village’s by appropriate activity
type to compose the primary government presentation.
(Continued)
35.
VILLAGE OF GURNEE
April 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Blended Component Units:
o
Police Pension Employees Retirement System
The Village’s sworn police employees participate in the Police Pension Employees
Retirement System (PPERS). PPERS functions for the benefit of these employees
and is governed by a five-member pension board. Two members appointed by the
Village’s President, one elected pension beneficiary and two elected police
employees constitute the pension board. The participants are required to contribute
a percentage of salary as established by state statute and the Village is obligated to
fund all remaining PPERS costs based upon actuarial valuations. The State of
Illinois is authorized to establish benefit levels and the Village is authorized to
approve the actuarial assumptions used in the determination of contribution levels.
Although it is legally separate from the Village, the PPERS is reported as if it were
part of the primary government because its sole purpose is to provide retirement
benefits for the Village’s police employees. The PPERS is reported as a pension
trust fund.
o
Firefighters’ Pension Employees Retirement System
The Village’s sworn firefighters participate in the Firefighters’ Pension Employees
Retirement System (FPERS). FPERS functions for the benefit of these employees and
is governed by a nine-member pension board. The Village’s President, Treasurer,
Clerk, Attorney and Fire Chief, one elected pension beneficiary, and three elected
firefighters constitute the pension board. The participants are required to contribute
a percentage of salary as established by state statute and the Village is obligated to
fund all remaining FPERS costs based upon actuarial valuations. The State of Illinois
is authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Although it
is legally separate from the Village, the FPERS is reported as if it were part of the
primary government because its sole purpose is to provide retirement benefits for
the Village’s sworn firefighters. The FPERS is reported as a pension trust fund.
Basis of Presentation: The Village’s basic financial statements consist of Village-wide
statements, including a statements of net assets, statement of activities and fund financial
statements, which provide a more detailed level of financial information. The Village-wide
focus is more on the sustainability of the Village as an entity and the change in aggregate
financial position resulting from activities of the fiscal period.
(Continued)
36.
VILLAGE OF GURNEE
April 30, 2010
Village-Wide Financial Statements: The statement of net assets and the statement of activities
display information about the Village as a whole. These statements include the financial
activities of the primary government, except for fiduciary activities. The Village’s police and
fire safety, highway and street maintenance and reconstruction, forestry, building code
enforcement, public improvements, economic development, planning and zoning, and general
administrative services are classified as governmental activities. The Village’s water and sewer
services and golf course services are classified as business-type activities.
In the Village-wide statement of net assets, both the governmental and business-type activities
columns are (a) presented on a consolidated basis by column and (b) reported on a full-accrual,
economic-resource basis, which recognizes all long-term assets and receivables as well as longterm debt and obligations. The Village’s net assets are reported in three parts: invested in
capital assets, net of related debt; restricted net assets; and unrestricted net assets. The Village
first utilizes restricted resources to finance qualifying activities.
The Village-wide statement of activities reports both the gross and net cost of each of the
Village’s functions and business-type activities (general government, public safety, public
works, etc.). The functions are supported by general government revenues (property, sales and
use taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The statement
of activities reduces gross expenses (including depreciation) by related program revenues,
operating and capital grants. Program revenues must be directly associated with the function
(general government, public safety, public works, etc.) or a business-type activity. Operating
grants include operating-specific and discretionary (either operating or capital) grants while the
capital grants column reflects capital-specific grants.
The net costs (by function or business-type activity) are normally covered by general revenue
(property tax, sales tax, intergovernmental revenues, interest income, etc.).
The Village does not allocate indirect costs. An administrative service fee is charged by the
General Fund to the other operating funds that is eliminated like a reimbursement (reducing the
revenue and expense in the General Fund) to recover the direct costs of General Fund services
provided (finance, personnel, purchasing, legal, technology management, etc.).
This government-wide focus is more on the sustainability of the Village as an entity and the
change in the Village’s net assets resulting from the current year’s activities.
(Continued)
37.
VILLAGE OF GURNEE
April 30, 2010
Eliminations have been made in the statement of net assets to remove the “grossing-up” effect
on assets and liabilities within the governmental activities column for amounts reported in the
individual funds as interfund receivables and payables and advances. Similarly, operating
transfers between funds have been eliminated in the statement of activities. Amounts reported
in the governmental funds as receivable from or payable to fiduciary funds have been
reclassified in the statement of net assets as accounts receivable or payable to external parties.
Fund Financial Statements: The financial transactions of the Village are reported in individual
funds. Each fund is defined as a fiscal and accounting entity with a self-balancing set of
accounts that comprises its assets, liabilities, reserves, fund equity, revenues, and
expenditures/expenses. Funds are organized into three major categories: governmental,
proprietary, and fiduciary. The emphasis in fund financial statements is on the major funds in
either the governmental or business-type activities categories. Non-major funds by category are
summarized into a single column.
Governmental Funds: The focus of the governmental funds’ measurement (in the fund
statements) is upon determination of financial position and changes in financial position
(sources, uses, and balances of financial resources) rather than upon net income. The following
is a description of the governmental funds of the Village:

The Village reports the following major governmental funds:
o
General Fund is the general operating fund of the Village. It is used to account
for all financial resources except those required to be accounted for in another
fund.
o
Capital Improvement Fund is a capital projects fund that is used to account for
the acquisition or construction of major capital facilities (other than those
financed by business-type/proprietary funds). The majority of the Village’s
construction projects are included in this fund.
The Village also uses the following governmental fund types:
o
Special Revenue Funds account for the proceeds of specific revenue sources
(other than debt service or major capital expenditures) that are legally restricted
to expenditures for specified purposes.
o
Debt Service Fund is used to account for the accumulation of funds for the
periodic payment of principal and interest on general long-term debt.
(Continued)
38.
VILLAGE OF GURNEE
April 30, 2010
Proprietary Funds: The focus of proprietary fund measurement is upon determination of
operating income, changes in net assets, financial position, and cash flows. The GAAP
applicable is similar to businesses in the private sector. The following is a description of the
proprietary funds of the Village:
The Village maintains one major enterprise fund, the Water and Sewer Fund, and one
non-major enterprise fund, the Golf Course Fund. The Water and Sewer Fund accounts
for the provision of potable water and wastewater treatment services to the residents of
the Village. All activities necessary to provide such services are accounted for in this
fund, including, but not limited to, administration, operations and maintenance,
financing and related debt service, billing, and collection. The Golf Course Fund
accounts for the construction and operation of a municipal golf course.
Enterprise funds are required to account for operations for which a fee is charged to external
users for goods or services and the activity (a) is financed with debt that is solely secured by a
pledge of the net revenues, (b) has third-party requirements that the cost of providing services,
including capital costs, be recovered with fees and charges, or (c) establishes fees and charges
based on a pricing policy designed to recover similar costs.
Fiduciary Funds: Fiduciary funds are used to report assets held in a trustee or agency capacity
for others and, therefore, are not available to support Village programs. The reporting focus is
on net assets and changes in net assets and is reported using GAAP similar to proprietary
funds.
Pension Trust Funds are used to account for assets held in a trustee capacity for pension benefit
payments. The Police and Firefighters’ Pension Trust Funds account for money received from
non-enterprise fund sources and held by a governmental unit in the capacity of trustee for
individuals, entities, and nonpublic organizations.
Agency Funds are used to account for assets held by the Village in a purely custodial capacity.
The Special Service Area Fund accumulates monies for the payment of special service area
bonds, proceeds of which were used to finance improvements, with financing provided by an
annual property tax levy upon the benefiting property owners.
The Village’s fiduciary funds are presented in the fiduciary fund financial statements by type
(pension trust and agency). Since by definition these assets are being held for the benefit of a
third party (other local governments, private parties, pension participants, etc.) and cannot be
used to address activities or obligations of the Village, these funds are not incorporated into the
government-wide statements.
(Continued)
39.
VILLAGE OF GURNEE
April 30, 2010
Measurement Focus and Basis of Accounting: Measurement focus is a term used to describe
“which” transactions are recorded within the various financial statements. Basis of accounting
refers to “when” transactions are recorded regardless of the measurement focus applied.
Measurement Focus: On the government-wide statement of net assets and the statement of
activities, both governmental and business-like activities are presented using the economic
resources measurement focus as defined below.
In the fund financial statements, the “current financial resources” measurement focus or the
“economic resources” measurement focus is used as appropriate.
All governmental funds utilize a “current financial resources” measurement focus. Only
current financial assets and liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available spendable financial resources during
a given period. These funds use fund balance as their measure of available spendable financial
resources at the end of the period.
All proprietary and pension trust funds utilize an “economic resources” measurement focus.
The accounting objectives of this measurement focus are the determination of operating income,
changes in net assets (or cost recovery), financial position, and cash flows. All assets and
liabilities (whether current or non-current) associated with their activities are reported.
Proprietary and pension trust fund equity is classified as net assets.
Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
Basis of Accounting: In the government-wide statement of net assets and statement of activities,
both governmental and business-like activities are presented using the accrual basis of
accounting. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred regardless of the timing of related cash
flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and
exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when “measurable and available.” Measurable means knowing or being able to reasonably
estimate the amount. Available means collectible within the current period or within 60 days
after year end. The Village recognizes property taxes when they become both measurable and
available. Expenditures (including capital outlay) are recorded when the related fund liability
is incurred, except for general obligation bond principal and interest, which are recognized
when due.
(Continued)
40.
VILLAGE OF GURNEE
April 30, 2010
In applying the susceptible to accrual concept under the modified accrual basis, those revenues
susceptible to accrual are property taxes, sales and use taxes, franchise taxes, licenses, interest
revenue, and charges for services. All other revenues are not susceptible to accrual because
generally they are not measurable until received in cash.
For the year ended April 30, 2010, a portion of the Village’s share of the State Income Tax was
received past 60 days of year end due to the current fiscal issues facing the State of Illinois. As
such, the Village elected to recognize the portion received after 60 days as revenue, or $858,653,
in order to properly present 12 months of revenue on the financial statements. The Village does
not anticipate this event to recur in future years.
All proprietary, pension trust, and agency funds utilize the accrual basis of accounting. Under
the accrual basis of accounting, revenues are recognized when earned and expenses are
recorded when the liability is incurred or economic asset used.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the Village’s enterprise funds are charges to customers for sales
and services resulting from exchange transactions associated with the principal activity of the
fund. Exchange transactions are those in which each party receives and gives up essentially
equal values. The Village also recognizes as operating revenue the portion of tap fees intended
to recover the cost of connecting new customers to the system. Operating expenses for
enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses. Non-operating revenues, such
as subsidies and investment earnings, result from non-exchanges transactions or ancillary
activities.
Differences occur from the manner in which the governmental activities and the Village-wide
financial statements are prepared due to the inclusion of capital asset and long-term debt
activity. Governmental fund financial statements, therefore, include a reconciliation with brief
explanations to better identify the relationship between the Village-wide statements and the
statements for governmental funds.
(Continued)
41.
VILLAGE OF GURNEE
April 30, 2010
Assets, Liabilities, and Net Assets or Equity:
Cash and Cash Equivalents: Cash and cash equivalents on the statement of net assets are
considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of
the statement of cash flows, cash and cash equivalents are considered to be cash on hand,
demand deposits, cash with fiscal agent, and all highly liquid investments with an original
maturity of three months or less.
Investments are reported at fair value. Short-term investments are reported at cost, which
approximates fair value. Securities traded on national exchanges are valued at the last reported
sales price. Investments that do not have any established market, if any, are reported at
estimated fair value.
Interfund Receivables, Payables, and Activity: Interfund activity is reported as loans, services
provided reimbursements or transfers. Loans are reported as interfund receivables and
payables as appropriate and are subject to elimination upon consolidation. Services provided,
deemed to be at market or near market rates, are treated as revenues and
expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the
appropriate benefiting fund and reduces its related cost as a reimbursement. All other
interfund transactions are treated as transfers. Transfers between governmental or proprietary
funds are netted as part of the reconciliation to the Village-wide financial statements.
Inventories: Inventories are valued at cost, which approximates market, using the first-in/firstout (“FIFO”) method. The costs of governmental fund-type inventories are recorded as
expenditures when consumed rather than when purchased.
Prepaid Items: Payments made to vendors for services that will benefit periods beyond the date
of this report are recorded as prepaid items.
Receivables: In the government-wide financial statements, receivables consist of all revenues
earned at year end and not yet received. Allowances for uncollectible accounts receivable are
based upon historical trends and the periodic aging of accounts receivable. Major receivables
balances for governmental activities include property taxes, sales and use taxes, franchise taxes,
and grants. Business-type activities report utility charges as their major receivables.
Capital Assets: Capital assets purchased or acquired with an original cost of $25,000 more are
reported at historical cost or estimated historical cost. Contributed assets are reported at fair
market value as of the date received. Additions, improvements, and other capital outlays that
significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs
and maintenance are expensed as incurred.
(Continued)
42.
VILLAGE OF GURNEE
April 30, 2010
General capital assets are long-lived assets of the Village as a whole. Infrastructure such as
streets, traffic signals, and signs are capitalized. The valuation basis for general capital assets
are historical cost or, where historical cost is not available, estimated historical cost based on
replacement costs.
Capital assets in the proprietary funds are capitalized in the fund in which they are utilized.
The valuation bases for proprietary fund capital assets are the same as those used for the
general capital assets. Donated capital assets are capitalized at estimated fair market value on
the date donated.
Depreciation on all assets except land and construction-in-progress is computed and recorded
using the straight-line method of depreciation over the following estimated useful lives:
Buildings and improvements
Vehicles
Water plant and mains
Sewer plant and mains
Storm sewers
Equipment
Infrastructure
20 – 50 Years
8 – 15 Years
40 – 75 Years
75 Years
75 Years
5 – 10 Years
50 Years
Compensated Absences: The Village accrues accumulated unpaid vacation and associated
employee-related costs when earned (or estimated to be earned) by the employee. A liability is
not recorded for non-vesting accumulation rights to receive sick pay benefits. However, a
liability is recognized for that portion of accumulated sick leave that is estimated to be taken as
“terminal leave” prior to retirement.
The liability for these compensated absences is recorded as long-term debt in the governmentwide statements. The current portion of this debt is estimated based on historical trends. In the
fund financial statements, governmental funds report only the compensated absences that have
matured, while the proprietary funds report the liability as it is incurred.
Long-Term Obligations: In the government-wide financial statements and proprietary fund
types in the fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as deferred charges and amortized over the term of the related debt.
(Continued)
43.
VILLAGE OF GURNEE
April 30, 2010
In the fund financial statements, governmental fund types 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. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
Deferred Revenue: Governmental funds report deferred revenue in connection with receivables
for revenues that are not considered to be available to liquidate liabilities of the current period.
Governmental funds also defer revenue recognition in connection with resources that have been
received, but not yet earned.
Fund Equity: In the government-wide financial statements, equity is classified as net assets and
displayed in three components:
Invested in capital assets, net of related debt – Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by the
outstanding balances of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
Restricted net assets – Consists of net assets with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulations of
other governments; or (2) law through constitutional provisions or enabling legislations.
Unrestricted net assets – All other net assets that do not meet the definition of
“restricted” or “invested in capital assets, net of related debt.”
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management plans
that are subject to change.
Use of Estimates: Management has made a number of estimates and assumptions relating to
the reporting of assets and liabilities to prepare these financial statements in conformity with
generally accepted accounting principals. Actual results could differ.
Deposits and Investments: The Village maintains a cash and investment pool that is available
for use by all funds except the pension trust funds. Each fund type’s portion of this pool is
displayed on the financial statements as “cash and investments.” In addition, investments are
separately held by several of the Village’s funds. The deposits and investments of the pension
trust funds are held separately from those of other funds.
(Continued)
44.
VILLAGE OF GURNEE
April 30, 2010
NOTE 2 - DETAIL NOTES ON ALL FUNDS
Cash
The carrying amount of cash, excluding the Pension Trust Funds, was $14,727,632 at April 30,
2010, while the bank balances were $15,015,686. All account balances at banks were either
insured by the Federal Deposit Insurance Corporation (FDIC) for $250,000 or collateralized with
securities of the U.S. government.
At April 30, 2010, the Pension Trust Funds’ carrying amount of cash was $41,488, while the
bank balances were $56,278. All account balances at banks were either insured by the Federal
Deposit Insurance Corporation (FDIC) for $250,000 or collateralized with securities of the U.S.
Government.
Investments (excluding Pension Trust Fund)
Statutes authorize the Village to make deposits/invest in commercial banks, savings and loan
institutions, certificates of deposit, obligations of the U.S. Treasury and U.S. agencies,
obligations of states and their political subdivisions, credit union shares, repurchase
agreements, money market mutual funds regulated by the Securities and Exchange
Commission and whose portfolios consist only of dollar-denominated securities, Illinois Funds,
and the Illinois Metropolitan Investment Fund. The Illinois Funds and the Illinois Metropolitan
Investment Fund are external investment pools regulated by state statutes; the pools value
participant’s shares on a fair value basis.
The following schedule reports the fair values and maturities (using the segmented time
distribution method) for the Village’s investments at April 30, 2010.
Investment Type
State Treasurer Illinois Fund
Illinois Metropolitan Investment Fund
Total
Fair Value
15,088,322
1,017,686
$
16,106,008
$
Investment
Maturities
Less than
One Year
$
15,088,322
1,017,686
$
16,106,008
Interest Rate Risk: According to the investment policy, the Village minimizes the risk that the
market value of securities in the portfolio will fall because of changes in general interest rates by
structuring the investment portfolio so that securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity and investing operating funds primarily in shorter-term securities, money market
mutual funds or similar investment pools.
(Continued)
45.
VILLAGE OF GURNEE
April 30, 2010
NOTE 2 - DETAIL NOTES ON ALL FUNDS (Continued)
The Village shall also attempt to match its investments with anticipated cash flow requirements.
Investment maturities in the General Fund, Capital Projects, Debt Service, Enterprise and
Special Revenue Funds shall be limited to a maximum maturity of two years from the date of
purchase. Investments in reserve funds and other funds with longer-term investment horizons
may be invested in securities exceeding two years if the maturity of such investments are made
to coincide with the expected use of funds. The intent to invest in securities with longer
maturities shall be disclosed in writing to the Village Board prior to the investment transaction
being executed.
Credit Risk: The Village’s general investment policy is to apply the prudent-person rule:
Investments are made as a prudent person would be expected to act, with discretion and
intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative
investments.
Credit ratings for the Village’s investments in debt securities as described by Standard & Poor’s
at April 30, 2010 are as follows:
% of
% of
Credit
Investment
Total
Investment Type
Ratings
Type
Investments
State Treasurer Illinois Funds
AAA
100%
100%
Illinois Metropolitan Investment Fund
AAA
100%
100%
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Village will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. The Village’s investment
policy requires that all amounts in excess of any insurance limits be collateralized. The Village
is fully collateralized as of April 30, 2010.
Concentration of Credit Risk: The Village’s policy limits investments to avoid overconcentration
in securities from a specific issuer or business sector (excluding U.S. Treasury securities), limits
investment in securities that have higher credit risk, requires investments in securities with
varying maturities, and requires continuously investing a portion of the portfolio in readily
available funds.
Trust Funds’ Investments
The Pension Trust Funds are authorized to invest in bonds, notes, and other obligations of the
U.S. government; corporate debentures and obligations; insured mortgage notes and loans;
common and preferred stocks; stock options; and other investment vehicles as set forth in the
Illinois Compiled Statutes.
(Continued)
46.
VILLAGE OF GURNEE
April 30, 2010
The Firefighters’ Pension Trust Fund’s (Fire Pension) current policy is to maintain long-term
focus on its investment decision-making process. Specifically, the Fire Pension’s benefit
liabilities extend many years into the future. As such, the investment focus should be on longterm results.
The Police Pension Trust Fund (Police Pension) was unable to provide their investment policy.
distribution method) for the Fire Pension’s investments at April 30, 2010.
Investment Type
Equity Mutual Funds
Governmental Security Mutual Funds
Total
Investment Maturities
Less Than
One to
Five to
More than
Fair Value
One Year
Five Years
Ten Years
Ten Years
$ 5,308,831 $ 5,308,831 $
- $
- $
11,339,070 11,339,070
- $
- $
$16,647,901 $16,647,901 $
distribution method) for the Police Pension’s investments at April 30, 2010.
Investment Type
Federated U.S. Treasury Cash Reserve
U.S. Treasury Strips
FNMA
FHLMC
Equity Mutual Funds
Total
Investments Not Sensitive to
Interest Rate Risk:
Common and Preferred Stock
Total Investments
Fair Value
$
14,562
11,389,426
1,060,280
404,631
1,346,793
1,986,392
16,202,084
Investment Maturities
Less Than
One to
Five to
More than
One Year
Five Years
Ten Years
Ten Years
$
14,562 $
- $
- $
7,867,385
3,522,041
1,060,280
321,210
83,421
1,346,793
1,986,392
7,867,385 $
4,903,531 $
83,421
$ 3,347,747 $
5,952,578
$22,154,662
(Continued)
47.
VILLAGE OF GURNEE
April 30, 2010
Credit Risk: The Fire Pension’s policy requires all fixed income investments to be of investmentgrade quality or higher at purchase. Also, according to the provisions of the Illinois Compiled
Statutes, fixed income purchases shall be limited to obligations issued or guaranteed as to
principal and interest by the U.S. government or any agency or instrumentality thereof or to
corporate and municipal issues. All securities shall be of “investment grade” quality, that is, at
the time of purchases, rated no lower than “Baa” by Moody’s and no lower than “BBB” by
Standard & Poor’s. The Board, at their discretion, may impose a higher standard on an
individual investment manager basis as circumstances or investment objectives dictate.
The Police Pension does not have an investment policy to limit credit risk.
Credit ratings for the Fire Pension and Police Pension investments in debt securities at April 30,
2010 (excluding investments in U.S. Treasuries, which are not considered to have credit risk) are
as follows:
Disclosure Ratings for Debt Securities (Moody’s)
(As a percentage of total fair value for debt securities)
Investment Type
AAA
100%
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Fire and Pension Funds will not be able to recover the value of
its investments or collateral securities that are in the possession of an outside party. The Fire
and Pension Funds are fully collateralized as of April 30, 2010.
(Continued)
48.
VILLAGE OF GURNEE
April 30, 2010
Concentration of Credit Risk: The Fire Pension places the following limits on issuers: Equity
securities cannot be more than 45% of portfolio balance and fixed income securities and cash
cannot be more than 100%. As of April 30, 2010, 32% of the portfolio was held in equity
securities and 68% of the portfolio was held in government fixed income securities and cash.
The Police Pension does not have an investment policy to limit concentration of credit risk.
More than 5% of the Police Pension’s investments are in the Illinois funds. These investments
are 6% of the Police Pension’s total investments.
The following is a reconciliation between the notes and the basic financial statements:
Cash and Investment Note
Carrying Amount of Village’s Cash
Carrying Amount of Pension’s Funds
Villages Investments
Police Pension Fund Investments
Fire Pension Fund Investments
Total Cash and Investment per Note
$ 14,727,632
41,488
16,106,008
22,154,662
16,647,901
$ 69,677,691
Basic Financial Statements
Statement 1 – Cash and Cash Equivalent
Statement 10 – Cash and Investments
Pension Funds’ Cash
Pension Funds’ Investments
Agency Fund Cash
$ 30,824,157
506,856
38,337,195
9,483
$ 69,677,691
Property Taxes:
Property taxes for 2008 attach as an enforceable lien on January 1, 2008 on property values
assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by
passage of a Tax Levy Ordinance). Tax bills are prepared by Lake County and are payable in
two installments, on or about June 1, 2009, and September 1, 2009. The County collects such
taxes and remits them periodically. The Village did not levy property taxes for the 2009 tax levy
year, however the Village did receive Road and Bridge, and Special Service Area taxes in the
amounts of $596,871 and $40,950, respectively.
(Continued)
49.
VILLAGE OF GURNEE
April 30, 2010
Capital Assets:
Governmental capital asset activity for the year was as follows:
Balance at
May 1, 2009
Capital assets not being depreciated:
Land
Construction in process
Subtotal
$ 33,381,060 $
33,381,060
Deletions
Balance at
April 30, 2010
103,500
562,554
666,054
$ 134,802
134,802
$ 33,349,758
562,554
33,912,312
Additions
Capital assets being depreciated:
Building and improvements
Equipment
Vehicles
Infrastructure
Subtotal
17,496,099
4,066,214
4,218,134
30,764,678
56,545,125
-
-
17,496,099
4,066,214
4,218,134
30,764,678
56,545,125
Accumulated depreciation
Equipment
Vehicles
Infrastructure
Total accumulated depreciation
3,176,763
2,921,226
2,417,811
9,006,283
17,522,083
358,362
282,155
236,522
610,313
1,487,352
-
3,535,125
3,203,381
2,654,333
9,616,596
19,009,435
39,023,042
(1,487,352)
-
37,535,690
$ 72,404,102 $ (821,298)
$ 134,802
$ 71,448,002
Total capital assets being depreciated, net
Governmental activities capital assets, net
Depreciation expense was charged to governmental activities as follows:
General government
Public safety
Highways and streets
$
50,471
668,832
768,049
$ 1,487,352
(Continued)
50.
VILLAGE OF GURNEE
April 30, 2010
Business-type capital asset activity for the year was as follows:
Balance at
May 1, 2009
Capital assets not being depreciated:
Land
$
Additions
4,953,190 $
-
Deletions
Balance at
April 30, 2010
$
$
-
4,953,190
Capital assets being depreciated:
Water plants and mains
Sewer plants and mains
Storm sewers
Equipment
Vehicles
Subtotal
2,067,677
35,703,954
22,175,977
16,537,689
1,051,156
634,652
78,171,105
-
-
2,067,677
35,703,954
22,175,977
16,537,689
1,051,156
634,652
78,171,105
Accumulated depreciation
Water plants and mains
Sewer plants and mains
Storm sewers
Equipment
Vehicles
Total accumulated depreciation
313,356
9,388,699
5,295,207
3,941,568
993,728
420,071
20,325,629
41,636
545,318
295,680
220,503
8,810
35,257
1,147,204
-
354,992
9,934,017
5,590,887
4,162,071
1,002,538
455,328
21,499,833
57,818,476
1,147,204
-
56,671,272
-
$ 61,624,462
Total capital assets being depreciated, net
Business-type capital assets, net
$ 62,771,666 $ 1,147,204
$
Depreciation expense was charged to the Water and Sewer Fund.
Interfund Receivables, Payables, and Transfers:
Interfund Receivables and Payables:
Interfund receivable and payables for the year consisted of the following:
Payable
Pension
Trust
Receivable
General
$
$
80,675
80,675
Totals
$
$
80,675
80,675
(Continued)
51.
VILLAGE OF GURNEE
April 30, 2010
The interfund outstanding at year-end was due to the Pension Trust Fund not fully reimbursing
the General Fund for all expenses that were paid from the General Fund.
Interfund Transfers:
Interfund transfers for the year consisted of the following:
General
Transfers In:
Debt Service
General
$
$
1,256,258 $
1,256,258 $
Water and
Capital
Sewer Improvement
580,008
580,008
$
$
20,657
20,657
Totals
$ 1,256,258
600,665
$ 1,856,923
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect
them to the fund that statute or budget requires to expend them, (2) move receipts restricted to
debt service from the funds collecting the receipts to the debt service fund as debt service
payments become due, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary
authorizations.
Long-Term Debt:
General Obligation Bonds:
The Village issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds are direct obligations and
pledge the full faith and credit of the Village. Alternate revenue source bonds provide for the
collection, segregation, and distribution of certain sales and amusement taxes received by the
Village for the payment of principal and interest on the alternate revenue source bonds. In
addition, general obligation refunding bonds have also been issued to refund prior general
obligation bonds.
(Continued)
52.
VILLAGE OF GURNEE
April 30, 2010
General obligation bonds currently outstanding are as follows:
Issue
Fund Debt
Retried By
Balances
May 1
Issuances
Retirements
Balances
April 30
Waterworks and Sewerage
General Obligation Bond
Series of 2002 – Due in
annual installments of
$185,000 to $230,000 plus
interest at 1.70% to 3.85%
through December 15, 2009
Water
and
Sewer
Series of 2002B – Due in
annual installments of
$425,000 to $850,000 plus
interest at 2.60% to 4.40%
through December 15, 2017
Debt
Service
6,375,000
-
(5,775,000)
600,000
Series of 2004 – Due in annual
installments of $15,000 to
$410,000 plus interest at
2.00% to 3.60% through
December 15, 2015.
Debt
Service
2,610,000
-
(335,000)
2,275,000
Series of 2009 – Due in annual
Installments of $50,000 to
$830,000 plus interest at
2.00% to 3.25% through
December 15, 2017.
Debt
Service
-
5,320,000
$
$
230,000 $
9,215,000 $
-
$
5,320,000 $
(230,000) $
(6,340,000) $
-
5,320,000
8,195,000
(Continued)
53.
VILLAGE OF GURNEE
April 30, 2010
Long-Term Liability Activity:
Changes in long-term liabilities during the fiscal year were as follows:
Beginning
Balances
Type of Debt
Governmental activities
Compensated absences
General obligation bonds
Premium on bonds
Net OPEB obligation
Fire Truck Loan
$
$
Business-type activities
Compensated absences
General obligation bonds
$
$
1,274,832
8,985,000
63,194
154,601
10,477,627
95,151
230,000
325,151
Additions
$
$
$
$
Deductions
Amounts
Due Within
One Year
Ending
Balances
1,356,163 $
5,320,000
145,303
64,605
6,886,072 $
1,274,832 $
6,110,000
102,093
7,486,925 $
1,356,163 $
8,195,000
145,303
127,799
52,508
9,876,774 $
678,080
1,000,000
52,508
1,730,588
90,408 $
90,408 $
95,151 $
230,000
325,151 $
90,408 $
90,408 $
45,204
45,204
The Debt Service and Water and Sewer Funds make payments on the general obligation bonds.
The Debt Service Fund makes payments on the alternate revenue source bonds. Compensated
absences are paid from the General Fund and Water and Sewer Fund. The fire truck loan will
be paid out of the Capital Improvement Fund. The Village expects no retirements in the next
fiscal year and expects none of the liability balance to be paid out thus, all compensated
absences have been classified as long term.
Loan Payable: On August 31, 2007 the Village entered into a Loan to buy a fire truck. The face
value of the loan was $300,000 at a rate of 4.19%. The Village is responsible for semi-annual
payments of $53,750 until the end of the loan on August 31, 2010.
Fiscal Year
Ended
April 30,
2011
$
$
Principal
52,508
52,508
Interest
$
$
1,100
1,100
$
$
Total
Payments
53,608
53,608
(Continued)
54.
VILLAGE OF GURNEE
April 30, 2010
Debt Service Requirements to Maturity-Bonds:
The annual debt service requirements to maturity for the bonds, including principal and
interest, are as follows:
Governmental Activities
General Obligation
Bonds
Principal
Interest
Fiscal Year
Ending
April 30
2011
2012
2013
2014
2015
2016
2017
2018
Total
$
$
1,000,000
1,050,000
1,070,000
1,105,000
1,160,000
1,185,000
795,000
830,000
8,195,000
$
242,525
214,508
189,458
159,934
125,436
88,836
50,826
26,976
$ 1,098,499
Non-Commitment Debt — Special Service Area Bonds:
Special service area bonds outstanding as of the date of this report totaled $341,000. These
bonds are not an obligation of the Village and are secured by the levy of real estate taxes on
certain property within the special service areas. The Village is in no way liable for repayment,
but is only acting as an agent for the property owners in levying and collecting the property
taxes and forwarding collections to bondholders.
Legal Debt Margin: Article VII, Section 6(k) of the 1970 Illinois Constitution governs the
computation of legal debt margin. To date the Illinois General Assembly has set no limits for
home rule municipalities. The Village is a home rule municipality.
The General Assembly may limit by law the amount and require referendum
approval of debt to be incurred by home rule municipalities, payable from ad
valorem property tax receipts, only in excess of the following percentages of the
assessed value of its taxable property . . . (2) If its population is more than 25,000
and less than 500,000 an aggregate of one percent: indebtedness which is
outstanding on the effective date (July 1, 1971) of this constitution or which is
thereafter approved by referendum . . . shall not be included in the foregoing
percentage amounts.
(Continued)
55.
VILLAGE OF GURNEE
April 30, 2010
Enterprise Receivable: The Village entered into a lease agreement on October 24, 1994 with
Bittersweet Venture for the real property on which the golf course is located. The lease was
amended on July 30, 2001 and expires on December 31, 2031. The Village has the option on
November 1, 2011, 2016, 2021, and 2026 to terminate the lease by making certain payments and
assuming the development loan.
Under the lease agreement, Bittersweet is to retain an annual management fee equal to 6% of
Gross Revenues. In a year when Net Operating Income is not available, Bittersweet may
accumulate the management fee for up to three years. After the management fee, 100% of Net
Operating Income is due to the Village until the initial $423,093 loan is repaid. Once the Village
has received $423,093, the management fee is increased to 7%. After the management fee, the
balance of Net Operating Income is to be spent 75% to Bittersweet and 25% to the Village until
Bittersweet has retained a total of $1,250,000. After the $1,250,000 has been retained, the
management fee is increased to 8% and the balance of Net Operating Income is retained 50% to
Bittersweet and 50% to the Village for the duration of the lease.
At this point, the Village has not received any payments because the Golf Course is not turning
a profit. The entire amount originally loaned to Bittersweet remains outstanding and recorded
as a receivable at year end. It was noted in the December 31, 2007 financial statements of
Bittersweet, a going concern was issued. Furthermore, Bittersweet went into administrative
receivership in January 2009. Based on this information, the Village recorded an allowance for
doubtful accounts for $423,093, which represents the principal and interest portion on the
receivable.
Risk Management:
The Village is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; natural disasters; and injuries to the Village’s
employees. The Village currently reports all its risk management activities in its General Fund.
The Village is a member of the Municipal Insurance Cooperative Agency (MICA) for claims
relating to workers’ compensation, liability, auto, and property insurance. MICA is a pooled
insurance program for Illinois Public Entities. Fund contributions are held by MICA and
premiums are paid to carriers for comprehensive excess insurance. As of April 30, 2010, the
fund deficit owed to MICA was $103,103 and the Village health claims payable was $216,079.
The fund deficit owed and health claims payable totaled $319,182 and is represented as health
claims payable in the basic financial statements.
(Continued)
56.
VILLAGE OF GURNEE
April 30, 2010
NOTE 3 - OTHER INFORMATION
The Village is self-insured for health insurance and uses a third-party administrator to process
claims. The Village is responsible for the first $75,000 of any claim after which stop-loss
coverage has been purchased. The aggregate stop loss for the plan is $1,000,000.
Claims Payable
2009
2010
Beginning
of Year
Incurred
Payments
End
of Year
$ 193,093
$ 105,921
$ 2,192,514
$ 2,642,894
$ 2,279,686
$ 2,532,736
$ 105,921
$ 216,079
Post-Employment Benefits:
Plan Description: The Village provides certain healthcare insurance benefits for retired
employees. In accordance with the personnel policy, substantially all of the Village’s employees
may become eligible for those benefits if they reach normal retirement age while working for
the Village. A separate, audited GAAP-basis postemployment benefit plan report is not
available.
Annual OPEB Cost and Net OPEB Obligation: The Village’s annual other post employment
benefit (OPEB) cost is calculated on the annual required contribution (ARC). Actuarial
calculations reflect a long-term perspective. The ARC represents a level of funding that, if paid
on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded
actuarial liabilities over a period not to exceed thirty years. For fiscal year 2010, the Village’s
annual OPEB cost was $128,940. The calculations are based on the OPEB benefits provided
under the substantive plan in effect at the time of each evaluation on the pattern of sharing of
costs between the employer and plan members to this point.
Annual required contribution
Interest on net OPEB obligation
Adjustment to the ARC
Annual OPEB Cost
2009
$ 127,529
127,529
2010
$ 127,886
3,160
(2,106)
128,940
Contributions made
Increase in net OPEB obligation
Net OPEB obligation beginning of year
Net OPEB obligation end of year
(64,335)
63,194
$ 63,194
(64,335)
64,605
63,194
$ 127,799
(Continued)
57.
VILLAGE OF GURNEE
April 30, 2010
NOTE 3 - OTHER INFORMATION (Continued)
Funded Status and Funding Progress: As of April 30, 2010 the actuarial accrued liability for
benefits was $2,454,861.
Actuarial
Valuation
Date
4/30/2009
4/30/2010
Actuarial
Value
of Assets
$
-
Actuarial
Accrued
Liability
$ 2,454,861
2,454,861
Unfunded
AAL
$ 2,454,861
2,454,861
Funded Covered
Ratio
Payroll
0%
$17,361,998
0%
17,361,998
AAL as a
Percentage of
Covered Payroll
14.1%
14.1%
Note: Information for proceeding year not available.
Actuarial Assumptions: In the actuarial valuation for the fiscal year ended April 30, 2009, the
entry age normal cost method was used. The actuarial assumptions included an annual
healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate rate of 6%. The
valuation included a 3% inflation assumption. The Unfunded Accrued Actuarial Liability is
being amortized as level percentage of pay over 30 years. A discount (interest) rate of 5% was
used and salary increases of 5% per year. Probabilities of death for participants were according
to the 1971 Group Mortality Table for Males and Females. 40% of employees were assumed to
elect the benefit. Actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future, and actuarially determined
amounts are subject to continual revision as results are compared to past expectations and new
estimates are made about the future. 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.
Contingent Liabilities:
Commitments: Central Lake County Joint Action Water Agency (CLC-JAWA)
The Village has committed to purchase water from the Central Lake County Joint Action Water
Agency (CLC-JAWA). The Village expects to pay the following minimum amounts:
Year Ending
2011
2012
2013
2014
2015
2016-2032
Amount
2,144,965
2,155,030
2,163,380
2,170,769
2,181,202
18,817,472
$ 29,632,818
$
These amounts have been calculated using the Village’s current allocation percentage of 19%.
In future years, this allocation percentage will be subject to change.
(Continued)
58.
VILLAGE OF GURNEE
April 30, 2010
Litigation:
The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, in the opinion of the Village’s attorney, the resolution of these matters
will not have a material adverse effect on the financial condition of the Village.
Grants:
Amounts received or receivable from grantor agencies are subject to audit and adjustment by
grantor agencies, principally the federal government. Any disallowed claims, including
amounts already collected, may constitute a liability of the applicable funds. The amount, if
any, of expenditures that may be disallowed by the grantor cannot be determined at this time
although the Village expects such amounts, if any, to be immaterial.
Employee Retirement System – Defined Benefit Pension Plans, Plan Descriptions: The Village
contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund
(IMRF), a defined benefit agent multiple-employer public employee retirement system; the
Police Pension Plan, which is a single-employer pension plan; and the Firefighters’ Pension
Plan, which is also a single-employer pension plan. The Village’s plan is affiliated with the
Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit
provisions are established by statute and may only be changed by the General Assembly of the
State of Illinois. IMRF issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained on-line at
www.imrf.org.
IMRF Funding Policies:
Plan Description: The Village’s defined benefit pension plan for employees provides retirement
and disability benefits, post-retirement increases, and death benefits to plan members and
beneficiaries. The Village’s plan is affiliated with the Illinois Municipal Retirement Fund
(IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and
may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly
available financial report that includes financial statements and required supplementary
information. That report may be obtained on-line at www.imrf.org.
Funding Policy: As set by statute, plan members are required to contribute 4.50% of their
annual covered salary. The statutes require employers to contribute the amount necessary, in
addition to member contributions, to finance the retirement coverage of its own employees.
The employer contribution rate for calendar year 2009 was 10.36% of annual covered payroll.
The Village also contributes for disability benefits, death benefits, and supplemental retirement
benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death
benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate
is set by statute.
(Continued)
59.
VILLAGE OF GURNEE
April 30, 2010
Annual Pension Cost: For the fiscal year ending December 31, 2009, the Village’s annual
pension cost of $685,594 for the plan was equal to the Village’s required and actual
contributions.
Three-Year Trend Information
Fiscal
Year
Ending
12/31/09
12/31/08
12/31/07
Annual Pension
Cost (APC)
$
685,594
703,361
641,760
Percentage
of APC
Contributed
100%
100%
100%
Net Pension
Obligation
$
-
The required contribution for 2009 was determined as part of the December 31, 2007, actuarial
valuation using the entry age normal actuarial cost method. The actuarial assumptions at
December 31, 2007, included (a) 7.50% investment rate of return (net of administrative and
direct investment expenses); (b) projected salary increases of 4.00% a year, attributable to
inflation; (c) additional projected salary increases ranging from 0.40% to 10.00% per year
depending on age and service, attributable to seniority/merit; and (d) post-retirement benefit
increases of 3.00% annually. The actuarial value of your employer plan assets was determined
using techniques that spread the effects of short-term volatility in the market value of
investments over a five-year period with a 15.00% corridor between the actuarial and market
value of assets. The plan’s underfunded actuarial accrued liability is being amortized as a level
percentage of projected payroll on a closed basis. The remaining amortization period at
December 31, 2007, was 23 years.
Funded Status and Funding Progress: As of December 31, 2009, the most recent actuarial
valuation date, the plan was 73.87% funded. The actuarial accrued liability for benefits was
$17,485,421 and the actuarial value of assets was $12,916,656, resulting in an underfunded
actuarial accrued liability (UAAL) of $4,568,765. The covered payroll (annual payroll of active
employees covered by the plan) was $6,617,703 and the ratio of the UAAL to the covered
payroll was 69 percent. In conjunction with the December 2009 actuarial valuation the market
value of investments over a five-year period with a 20% corridor between the actuarial and
market value of assets. In 2010, the unfunded actuarial accrued liability is being amortized on a
level percentage of projected payroll on an open 30 year basis.
The schedule of funding progress, presented as RSI following the notes to the financial
statements, presents multi-year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
(Continued)
60.
VILLAGE OF GURNEE
April 30, 2010
Police Pension and Firefighters’ Pension Plans:
Plan Description: The Police Pension Plan is a single-employer defined benefit pension plan
that covers all sworn police personnel. Although this is a single-employer pension plan, the
defined benefits and employee and employer contribution levels are governed by Illinois State
Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan
as a pension trust fund. The Police Pension Fund does not issue its own stand-alone financial
statements.
For the plan year ended April 30, 2010, the Police Pension Fund membership consisted of:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them
Current employees
Vested and non-vested
18
62
80
As provided for in Illinois State Statutes, the Police Pension Plan provides retirement benefits as
well as death and disability benefits. Covered employees attaining the age of 50 or more with
20 or more years of creditable service are entitled to receive an annual retirement benefit of onehalf of the salary attached to the rank held on the last day of service or for one year prior to the
last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each
additional year of service over 20 years up to 30 years to a maximum of 75% of such salary.
Employees with at least 8 years but less than 20 years of credited service may retire at or after
age 60 and receive a reduced benefit. The monthly benefit of a police officer who retires with 20
or more years of service after January 1, 1977 shall be increased annually, following the first
anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of
the original pension and 3% compounded annually thereafter.
Plan Description: The Firefighters’ Pension Plan is a single-employer defined pension plan that
covers all sworn fire personnel. Although this is a single-employer pension plan, the defined
benefits and employee and employer contribution levels are governed by Illinois State Statutes
and may be amended only by the Illinois legislature. The Village accounts for the plan as a
pension trust fund. The Firefighters’ Pension Fund does not issue its own stand-alone financial
statements.
(Continued)
61.
VILLAGE OF GURNEE
April 30, 2010
For the plan year ended April 30, 2010, the Firefighters’ Pension Fund membership consisted of:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them
Current employees
Vested and non-vested
12
48
60
The following is a summary of the Firefighters’ Pension Plan as provided for in Illinois State
Statutes.
The Firefighters’ Pension Plan provides retirement benefits as well as death and disability
benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable
service are entitled to receive an annual retirement benefit of one-half of the monthly salary
attached to the rank at the date of retirement. The pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of service through 30 years of
service to a maximum of 75% of such monthly salary. Employees with at least 10 years but less
than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The
monthly pension of a firefighter who retire with 20 or more years of service after January 1, 1977
shall be increased annually, following the first anniversary date of retirement and be paid upon
reaching the age of at least 55 years, by 3% of the original pension and 3% compounded
annually thereafter.
Summary of Significant Accounting Policies and Plan Asset Matters Basis of Accounting:
Basis of Accounting: - The financial statements are prepared using the accrual basis of
accounting. Employee and employer contributions are recognized when due, pursuant to
formal commitments, as well as statutory or contractual requirements. Benefits and refunds are
recognized when due and payable in accordance with the terms of the plan.
Method Used to Value Investments: Investments are reported at fair value. Short-term
investments are reported at cost, which approximates fair value. Securities traded on national
exchanges are valued at the last reported sales price.
Related-Party Transactions: There are no securities of the employer or any other related parties
included in plan assets.
(Continued)
62.
VILLAGE OF GURNEE
April 30, 2010
Funding Policy and Annual Pension Cost: If an employee leaves covered employment with less
than 20 years of service, accumulated employee contributions may be refunded without
accumulated interest. The Village is required to contribute the remaining amounts necessary to
finance the plan, including administrative costs, as actuarially determined by an enrolled
actuary. By the year 2033, the Village’s contributions must accumulate to the point where the
past service cost is fully funded.
Contribution rates:
Employer
Employee
Annual pension cost
Contributions made
Police
Pension
Firefighters’
Pension
20.55%
9.91%
$999,880
$1,007,857
22.59%
9.46%
$893,597
$894,700
Actuarial Methods and Assumptions: The following is information as of the most recent
actuarial valuation:
Police
Firefighters’
Pension
Pension
Actuarial valuation date
4/30/10
4/30/10
Actuarial cost method
Entry Age
Normal
Entry Age
Normal
Amortization method
Level % of
Projected Payroll
Closed Basis
Level % of
Projected Payroll
Closed Basis
Remaining amort. period
23 Years
23 Years
Asset valuation method
Market
Market
7.50%
Compounded
Annually
7.50%
Compounded
Annually
Projected salary increases
5.50%
5.50%
Inflation rate included
3.00%
3.00%
Cost-of-living adjustments
3.00%
3.00%
Actuarial assumptions
Investment rate of return
(Continued)
63.
VILLAGE OF GURNEE
April 30, 2010
Three-Year Trend Information
Year
Police
Pension
Firefighters’
Pension
Annual pension cost (APC)
2008
2009
2010
$859,938
918,253
999,880
$783,863
804,621
893,597
Percentage of APC contributed
2008
2009
2010
101.0%
100.9%
100.8%
100.1%
100.2%
100.1%
Net pension obligation (surplus)
2008
2009
2010
$(342,294)
(350,641)
(358,618)
$(45,253)
(46,632)
(47,735)
Annual Pension Cost and Net Pension Obligation: The pension liability was determined in
accordance with GASB Statement No. 27, Accounting for Pensions by State and Local Governmental
Employers. The pension liability (asset) for the Police and Firefighters’ Pension Plans is as
follows for April 30, 2010:
Police
Firefighters’
Pension
Pension
Totals
Annual required contribution
Interest on the NPO
Adjustment to the ARC
$1,007,857
(26,298)
18,321
Annual pension cost
Contributions made
$ 1,902,515
(29,795)
20,757
999,880
893,597
1,893,477
1,007,857
894,700
1,902,557
Increase (Decrease) in the NPO
(7,977)
(1,103)
(9,080)
(350,641)
(46,632)
(397,273)
$ (358,618)
$ (47,735)
NPO beginning of year
NPO end of year
$ 894,658
(3,497)
2,436
$
(406,353)
Employer annual required contributions (ARC), actual contributions, and the net pension
obligation (NPO) are as follows: The NPO is the cumulative difference between the ARC and
the contributions actually made.
(Continued)
64.
VILLAGE OF GURNEE
April 30, 2010
Funded Status and Funding Progress:
The following is funded status information for each plan as of 4/30/10, the most recent
actuarial valuation date:
(6)
UAAL
(4)
(Excess of
Unfunded
Assets over
(2)
AAL
AAL) as a
(1)
Actuarial
(3)
(Excess of
Percentage
Actuarial
Accrued
Funded Assets over
(5)
of Covered
AAL)
Covered
Payroll
Value of Liability (AAL) Ratio
Assets
- Entry Age (1)/(2)
(2) - (1)
Payroll
(4) / (5)
Police
Fire
$ 22,107,205
16,657,558
$ 33,500,561 65.99% $ 11,393,356
23,496,288 70.89%
6,838,730
$ 4,904,906
232.28%
3,960,443
172.68%
The schedule of funding progress, presented as RSI following the notes to the financial
statements, presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the AAL for benefits.
Condensed Financial Statement Information Related to Fire and Police Pension:
PENSION TRUST FUNDS
COMBINING STATEMENT OF PLAN NET ASSETS
April 30, 2010
Police Pension
ASSETS
Cash and Investments
Prepaid Items
Miscellaneous Receivables
Total assets
LIABILITIES
Due to Village
Accounts Payable
Total Liabilities
NET ASSETS
Total Net Assets
$
22,186,029
500
11,324
22,197,853
Fire Pension
$
80,675
9,972
90,647
$
22,107,206
22,107,206
16,658,022
67
16,658,089
530
530
$
16,657,559
16,657,559
(Continued)
65.
VILLAGE OF GURNEE
April 30, 2010
PENSION TRUST FUNDS
COMBINING STATEMENT OF
CHANGES IN PLAN NET ASSETS
Police Pension
ADDITIONS
Contributions:
Employer
Plan Members
Total Contributions
$
Interest
$
2,440,129
2,440,129
DEDUCTIONS
Total deductions
Net assets – beginning of year
$
381,608
894,700
1,276,308
1,515,741
1,515,741
(60,885)
Total additions
Net assets – end of year
488,513
1,007,857
1,496,370
Fire Pension
(9,283)
3,875,614
2,782,766
787,390
787,390
564,813
564,813
3,088,224
2,217,953
19,018,982
14,439,606
22,107,206
$
16,657,559
NOTE 4 - NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) recently issued the following
statements:
In June 2007, the GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible
Assets. It defines an intangible asset’s required characteristics, and generally requires that they
be treated as capital assets. Statement 51 is effective for the Village’s fiscal year ending April 30,
2011.
(Continued)
66.
VILLAGE OF GURNEE
April 30, 2010
NOTE 4 - NEW ACCOUNTING PRONOUNCEMENTS (Continued)
In June 2008, GASB issued Statement No. 53, Accounting and Financial Reporting for Derivative
Instruments. This Statement addresses the recognition, measurement, and disclosure of
information regarding derivative instruments entered into by state and local governments.
Statement 54 is effective for financial statements for periods beginning after June 15, 2009.
In March 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund
Type Definitions. This Statement is intended to improve the usefulness of information provided
to financial report users about fund balance by providing clearer, more structured fund balance
classifications, and by clarifying the definitions of existing governmental fund types. Fund
balance amounts will be reported in the following classifications: restricted, committed,
assigned, and unassigned. Statement 54 is effective for financial statements for periods
beginning after June 15, 2010.
In December 2009, the GASB issued Statement No. 57, OPEB Measurements by Agent Employers
and Agent Multiple-Employer Plans. The objective of this Statement is to address issues related to
the use of the alternative measurement method and the frequency and timing of measurements
by employers that participate in agent multiple-employer other postemployment benefit plans.
The provisions related to the use and reporting of the alternative method are effective
immediately. The provisions related to the frequency and timing of measurements are effective
for actuarial valuations first used to report funded status information in OPEB plans financial
statements for financial periods beginning after June 15, 2011.
In June 2010 the GASB issued Statement No. 59, Financial Instruments Omnibus. The Statement
updates and improves existing standards regarding financial reporting of certain financial
instruments and external investment pools. Statement No. 59 is effective for fiscal years
beginning after June 15, 2010, with earlier application encouraged.
Management has not determined the impact these statements will have on the financial position
and results of operations of the Village.
67.
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information includes financial information and disclosures that are
required by the GASB but are not considered a part of the basic financial statements. Such
information includes:

Budgetary Comparison Schedule – General Fund

Notes to Required Supplementary Information

Schedule of Funding Progress
o Illinois Municipal Retirement Fund
o Other Post Employment Benefits
o Police Pension Fund
o Firefighters’ Pension Fund

Schedule of Employer Contributions
o Illinois Municipal Retirement Fund
o Police Pension Fund
o Firefighters’ Pension Fund
RSI - 1
BUDGETARY COMPARISON SCHEDULE
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET (GAAP BASIS) AND ACTUAL
GENERAL FUND
General Fund
Original
Budget
REVENUES
Taxes
Charges for Service
Donations
Intergovernmental
Interest
TOTAL REVENUES
$
22,195,400
821,400
1,222,175
978,100
8,800
5,737,980
300,000
31,263,855
Final
Budget
$
22,195,400
821,400
1,222,175
978,100
8,800
5,737,980
300,000
31,263,855
Actual
$
21,214,521
717,158
1,180,125
1,644,058
31,065
5,355,649
60,990
30,203,566
Variance
Positive (Negative)
from Final Budget
$
(980,879)
(104,242)
(42,050)
665,958
22,265
(382,331)
(239,010)
(1,060,289)
EXPENDITURES
Current:
General Government
Public Safety
Capital Outlay
TOTAL EXPENDITURES
expenditures
6,365,231
20,537,282
3,358,099
294,660
30,555,272
6,285,231
20,392,282
3,583,099
294,660
30,555,272
5,873,843
20,156,325
3,508,533
268,355
29,807,056
708,583
708,583
396,510
411,388
235,957
74,566
26,305
748,216
(312,073)
Transfers In
Sale of Assets
Transfers Out
580,000
35,000
(1,157,000)
(542,000)
$
166,583
580,000
35,000
(1,157,000)
(542,000)
$
600,665
105,104
(1,256,258)
(550,489)
166,583
(153,979)
20,665
70,104
(99,258)
(8,489)
$
(320,562)
21,828,465
$
21,674,486
______________________________________________________________________________________________________________
68.
VILLAGE OF GURNEE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
April 30, 2010
NOTE 1 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information: Budgets are adopted on a basis consistent with GAAP. All
departments of the Village submit requests for budgets to the government’s administrator so
that a budget may be prepared. The budget is prepared by fund, function, and activity and
includes information on the past year, current year estimates, and requested budgets for the
next fiscal year. The proposed budget is presented to the governing body for review. The
governing body holds public hearings and may add to, subtract form, or change budgeted
amounts, but may not change the form of the budget.
Once the governing body approves the operating budget, budgeted amounts in several funds
are increased by 25% to form the Village’s appropriations. The administrator is authorized to
transfer budgeted amounts between departments within any fund; however, the governing
body must approve any revisions that alter the total budgeted expenditures of any fund.
Expenditures may not legally exceed budgeted appropriations at the fund level. During the
year, supplementary appropriations were necessary. All funds, except for the Capital Projects
Fund have legally adopted budgets.
Excess of Actual Expenditures/Expenses Over Budget in Individual Funds: The following
funds had an excess of actual expenditures over budget:
Debt Service Fund
Water and Sewer Operating Account
Police Pension Trust Fund
Firefighters’ Pension Trust Fund
Asset Forfeiture Fund
$
53,582
521,695
69,901
119,065
2,276
69.
RSI-2
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT FUND
APRIL 30, 2010
(6)
Unfunded
(Overfunded)
(1)
Actuarial
(2)
Actuarial
Actuarial
Valuation
Value
of Plan
Date
Assets
12/31/04
$
9,490,911
$
(4)
Actuarial
Accrued
Unfunded
Liability
(3)
(Overfunded)
Actuarial
(5)
as a
Percentage
Accrued
Liability
Funded
Ratio
Accrued
Liability
Annual
Covered
of Covered
Payroll
- Entry Age
(1)/(2)
(2) - (1)
Payroll
(4) / (5)
11,203,492
84.71%
$
1,712,581
$
5,724,670
29.92%
12/31/05
10,665,807
12,492,998
85.37%
1,827,191
5,813,340
31.43%
12/31/06
11,682,592
13,643,564
85.63%
1,960,972
6,168,192
31.79%
12/31/07
12,614,154
14,802,764
85.21%
2,188,610
6,322,757
34.61%
12/31/08
12,450,675
16,409,703
75.87%
3,959,028
6,916,040
57.24%
12/31/09
12,916,656
17,485,421
73.87%
4,568,765
6,617,703
69.04%
On a market value basis, the actuarial value of assets as of December 31, 2008 is $12,552,326. On a market
basis, the funded ratio would be 71.79%.
___________________________________________________________________________________________________________
70.
RSI - 2
OTHER POST EMPLOYMENT BENEFITS
APRIL 30, 2010
(6)
Unfunded
(Overfunded)
Actuarial
(4)
Accrued
Unfunded
Liability
(1)
(2)
Actuarial
Actuarial
(3)
(Overfunded)
Actuarial
as a
(5)
Percentage
Actuarial
Value
Accrued
Funded
Accrued
Annual
of Covered
Valuation
of Plan
Liability
Ratio
Liability
Covered
Payroll
Date
Assets
- Entry Age
(1)/(2)
(2) - (1)
Payroll
(4) / (5)
17,361,998
14.14%
17,361,998
14.14%
4/30/09
4/30/10
$
-
$
2,454,861
0.00%
2,454,861
0.00%
$
2,454,861
2,454,861
$
Note: Additional years will be presented as information is available.
________________________________________________________________________________________________________________
71.
POLICE PENSION FUND
APRIL 30, 2010
(1)
Actuarial
Value
of Plan
Assets
Actuarial
Valuation
Date
4/30/05
$
14,783,193
(2)
Actuarial
Accrued
Liability
- Entry Age
$
(3)
Funded
Ratio
(1)/(2)
19,640,606
75.27%
RSI-2
(4)
Unfunded
(Overfunded)
Actuarial
Accrued
Liability
(2) - (1)
$
4,857,413
(5)
Annual
Covered
Payroll
$
(6)
Unfunded
(Overfunded)
Actuarial
Accrued
Liability
as a
Percentage
of Covered
Payroll
(4) / (5)
4,093,652
118.66%
4/30/06
16,122,225
22,291,977
72.32%
6,169,752
4,300,496
143.47%
4/30/07
18,079,792
24,936,181
72.50%
6,856,389
4,496,908
152.47%
4/30/08
19,592,938
28,379,408
69.04%
8,786,470
4,308,985
203.91%
4/30/09
19,018,983
30,994,957
61.36%
11,975,974
4,831,080
247.89%
4/30/10
22,107,205
33,500,561
65.99%
11,393,356
4,904,906
232.28%
____________________________________________________________________________________________________________
72.
FIREFIGHTERS' PENSION FUND
APRIL 30, 2010
(1)
Actuarial
Value
of Plan
Assets
Actuarial
Valuation
Date
4/30/05
$
10,383,226
(2)
Actuarial
Accrued
Liability
- Entry Age
$
(3)
Funded
Ratio
(1)/(2)
13,422,201
77.36%
RSI-2
(4)
Unfunded
(Overfunded)
Actuarial
Accrued
Liability
(2) - (1)
$
3,038,975
(5)
Annual
Covered
Payroll
$
(6)
Unfunded
(Overfunded)
Actuarial
Accrued
Liability
as a
Percentage
of Covered
Payroll
(4) / (5)
3,035,168
100.13%
4/30/06
11,374,349
15,184,068
74.91%
3,809,719
3,273,462
116.38%
4/30/07
12,982,478
16,812,697
77.22%
3,830,219
3,423,863
111.87%
4/30/08
14,478,961
18,624,030
77.74%
4,145,069
3,750,365
110.52%
4/30/09
14,439,606
21,555,730
66.99%
7,116,124
3,844,582
185.09%
4/30/10
16,657,558
23,496,288
70.89%
6,838,730
3,960,443
172.68%
______________________________________________________________________________________________________________
73.
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
APRIL 30, 2010
Actuarial
Valuation
Date
12/31/04
Annual
Required
Contribution
Employer
Contributions
$
526,097
$
RSI-3
Percent
Contributed
526,097
100.00%
12/31/05
581,915
581,915
100.00%
12/31/06
634,707
634,707
100.00%
12/31/07
641,760
641,760
100.00%
12/31/08
703,361
703,361
100.00%
12/31/09
685,594
685,594
100.00%
_____________________________________________________________________________________________________________
74.
POLICE PENSION FUND
APRIL 30, 2010
Actuarial
Valuation
Date
4/30/05
Annual
Required
Contribution
Employer
Contributions
$
628,650
$
RSI-3
Percent
Contributed
573,208
109.67%
4/30/06
677,710
628,623
107.81%
4/30/07
789,800
789,715
100.01%
4/30/08
868,588
868,588
100.00%
4/30/09
926,600
926,606
100.00%
4/30/10
1,007,857
1,007,857
100.00%
_____________________________________________________________________________________________________________
75.
FIREFIGHTERS' PENSION FUND
APRIL 30, 2010
Actuarial
Valuation
Date
4/30/05
Annual
Required
Contribution
Employer
Contributions
$
610,750
$
RSI-3
Percent
Contributed
609,534
100.20%
4/30/06
686,400
686,393
100.00%
4/30/07
698,300
698,243
100.01%
4/30/08
785,006
785,006
100.00%
4/30/09
806,000
805,725
100.03%
4/30/10
894,700
894,658
100.00%
_____________________________________________________________________________________________________________
76.
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
Other supplementary information includes financial statements and schedules not required by
the GASB and not a part of the basic financial statements, but are presented for purposes of
additional analysis.
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
GENERAL FUND
The General Fund accounts for all financial resources except those required to be accounted for
in another fund.
CAPITAL IMPROVEMENT FUND
The Capital Improvements Fund is used to account for the acquisition and improvement of
Village property including infrastructure and general fixed assets. The Capital Improvement
Fund is a Capital Project Fund. Capital Project Funds are used to account for all resources used
for the acquisition of capital facilities by a governmental unit except those financed by
Proprietary and Trust Funds.
911 FUND
The 911 Fund is used to account for the installation and operation of the emergency telephone
system (911). Revenues are provided by a surcharge on telephone bills. The 911 Fund is a
Special Revenue Fund. Special Revenue Funds are used to account for revenue derived from
specific taxes or other earmarked revenue sources.
MOTOR FUEL TAX FUND
The Motor Fuel Tax Fund is used to account for the maintenance and construction of streets and
roads as approved by the Illinois Department of Transportation (IDOT). Financing is provided
by the Village’s share of gasoline taxes. The Motor Fuel Tax Fund is a Special Revenue Fund.
Special Revenue Funds are used to account for revenue derived from specific taxes or other
earmarked revenue sources.
IMPACT FUND
The Impact Fee Fund is used to account for fees collected from developers for necessary
improvements to be made by the Village when deemed necessary by the Village. The Impact
Fee Fund is also used to collect county impact fees for county road improvements within the
Village. The Impact Fee Fund is a Special Revenue Fund. Special Revenue Funds are used to
account for revenue derived from specific taxes or other earmarked revenue sources.
ASSET FORFEITURE FUND
The Asset Forfeiture Fund is used for seized drug money. The Village receives a percentage of
money back any time there is a drug arrest and money is recovered. This money is to be used
for drug awareness.
DEBT SERVICE FUND
The Debt Service Fund accounts for the accumulation of resources for, and the payment of,
general long-term debt principal and interest.
PROPRIETARY FUNDS
Proprietary Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises where the intent is that costs of providing goods
or services to the general public on a continuing basis be financed or recovered primarily
through user charges; or where it has been decided that periodic determination of revenues
earned, expenses incurred and/or net income is appropriate for capital maintenance, public
policy, management control, accountability, or other purpose.
GOLF COURSE FUND
The Golf Course Fund is used to account for the construction and operation of a municipal golf
course.
WATER AND SEWER OPERATING ACCOUNT
The Water and Sewer Fund is used to account for the provision of potable water and
wastewater treatment services to the residents of the Village. All activities necessary to provide
such services are accounted for in this fund, including, but not limited to, administration,
operations and maintenance, financing and related debt service, billing and collection.
WATER AND SEWER CAPITAL ACCOUNT
The Water and Sewer Capital Fund is used to account for acquisition and improvement of the
Village’s utility system. Financing is provided from surplus funds generated in the Water &
Sewer Operating Fund.
TRUST AND AGENCY FUNDS
PENSION TRUST FUNDS
Police Pension Fund
The Police Pension Fund is used to account for the accumulation of resources to be used for
retirement annuity payments to employees on the police force at appropriate amounts and
times in the future. Resources are contributed by employees at rates fixed by law and by the
Village at amounts determined by an annual actuarial study.
Firefighters’ Pension Fund
The Firefighters’ Pension Fund is used to account for the accumulation of resources to be used
for retirement annuity payments to employees on the fire department at appropriate amounts
and times in the future. Resources are contributed by employees at rates fixed by law and by
the Village at amounts determined by an annual actuarial study.
AGENCY FUNDS
Special Service Area #2 Fund
The Special Service Area Fund is used to account for payments made by property owners on
related special assessments and special service area debt. This is administered but not backed
by the Village. The Village collects the payments and subsequently pays the related debt.
EXHIBIT 1
GENERAL FUND
Final
Budget
REVENUES
Taxes
Charges for Service
Donations
Intergovernmental
Interest
TOTAL REVENUES
$
22,195,400
821,400
1,222,175
978,100
8,800
5,737,980
300,000
31,263,855
Actual
$
21,214,521
717,158
1,180,125
1,644,058
31,065
5,355,649
60,990
30,203,566
Positive
(Negative) from
Final Budget
$
(980,879)
(104,242)
(42,050)
665,958
22,265
(382,331)
(239,010)
(1,060,289)
EXPENDITURES
Current:
General Government
Public Safety
Capital Outlay
TOTAL EXPENDITURES
expenditures
6,285,231
20,392,282
3,583,099
294,660
30,555,272
5,873,843
20,156,325
3,508,533
268,355
29,807,056
708,583
396,510
411,388
235,957
74,566
26,305
748,216
(312,073)
Transfers In
Sale of Assets
Transfers Out
580,000
35,000
(1,157,000)
(542,000)
$
600,665
105,104
(1,256,258)
(550,489)
166,583
(153,979)
20,665
70,104
(99,258)
(8,489)
$
(320,562)
21,828,465
$
21,674,486
______________________________________________________________________________________________________________
77.
EXHIBIT 2
GENERAL FUND
SCHEDULE OF DETAILED REVENUES
Final
Budget
REVENUES
Taxes
Property Taxes
Municipal Taxes
Sales Taxes
Amusement Tax
Resort Tax
Hotel Tax
Food and Beverage Tax
Telecommunications Tax
Cable TV Franchise Tax
Alarm Franchise Tax
Foreign Fire Insurance Tax
Total Taxes
$
578,000
455,000
15,300,000
1,988,000
225,000
1,300,000
1,600,000
257,000
425,000
32,000
35,400
22,195,400
Actual
$
596,871
373,345
14,870,817
1,832,389
243,980
1,077,417
1,490,610
247,711
404,931
31,560
44,890
21,214,521
Positive
(Negative) from
Final Budget
$
18,871
(81,655)
(429,183)
(155,611)
18,980
(222,583)
(109,390)
(9,289)
(20,069)
(440)
9,490
(980,879)
Liquor License
Business Licenses
General Building Permits
Right Of Way Permits
Burning Permits
Vehicle Licenses
Fire Impact
Police & Public Works
Total Licenses and Permits
115,000
250,000
450,000
900
100
3,000
1,400
1,000
821,400
117,125
278,025
304,898
3,405
325
13,130
150
100
717,158
2,125
28,025
(145,102)
2,505
225
10,130
(1,250)
(900)
(104,242)
Fire Plan Review
Engineering Fees
Engineering Inspection
Zoning & Subdivision Fees
Off Duty Police Service
Fire Dept Charges
Non Resident Rescue Fees
Resident Rescue Fees
Miscelleaneous Services
IRB Fees
Recycling Revenue
Plat Filing Fee
Dare/Liason Officer
Elevator Inspection
26,000
5,000
1,000
16,000
135,000
28,000
360,000
375,000
100
6,000
5,000
1,000
110,250
9,400
24,047
1,110
1,310
40,432
122,723
9,352
331,995
320,122
(35,985)
6,498
400
118,831
15,540
(1,953)
(3,890)
310
24,432
(12,277)
(18,648)
(28,005)
(54,878)
(36,085)
(6,000)
1,498
(600)
8,581
6,140
____________________________________________________________________________________________________
(Continued)
78.
EXHIBIT 2
GENERAL FUND
90
4,750
13,104
24,618
11,776
4,000
2,510
123,030
1,815
38,057
1,180,125
Positive
(Negative) from
Final Budget
$
(160)
2,050
13,104
18,118
2,776
4,000
(490)
14,855
(2,985)
28,057
(42,050)
410,000
30,000
45,000
38,000
5,600
4,500
75,000
370,000
978,100
382,296
9,775
43,998
36,846
11,335
6,500
117,000
1,036,308
1,644,058
(27,704)
(20,225)
(1,002)
(1,154)
5,735
2,000
42,000
666,308
665,958
5,800
3,000
8,800
4,225
12,604
3,000
11,236
31,065
(1,575)
9,604
3,000
11,236
22,265
12,600
18,900
18,900
800
3,000
34,500
5,400
63,180
2,940,000
1,825
19,456
2,970
24,112
5,225
3,876
63,180
2,568,297
(10,775)
556
(18,900)
(800)
(30)
(10,388)
(175)
3,876
(371,703)
Final
Budget
Maps
Ordinances
Insurance Proceeds
Misc. Other Charges
Public Works Charges
Fire Charges
Police Charges
Tower/Antennae Lease
Parkway Tree Program
Reimburseable Charges
Total Charges for Services
Court Fines
Dui Fines
Prison Review Agency
Parking Fines
Alarm Fines
Liquor License Violations
Impoundment Fine
Red Light Enforcement
Total Fines and Forfeitures
Donations
Dare Contributions
Fire Dept Donations
Citizens Police Academy
Police - Misc Contributions
Total Donations
Intergovermental
Training Reimbursement
Image Grant-DUI
Drug Enforcement Grant
Police Vest Grant
Tobacco Grant
Seat Belt Enforcement
K-9 Program Grant
Training
ESDA Reimbursement
State Income Tax
$
250
2,700
6,500
9,000
3,000
108,175
4,800
10,000
1,222,175
Actual
$
____________________________________________________________________________________________________
(Continued)
79.
EXHIBIT 2
GENERAL FUND
Replacement Tax
Warren Fire District
Newport Fire Phone
COBRA Subsidy
Nssd Information
Total Intergovernmental
$
Interest
Interest Income
TOTAL REVENUES
Final
Budget
125,000
2,486,000
27,300
2,400
5,737,980
$
300,000
$
31,263,855
$
Actual
106,522
2,519,305
26,809
11,632
2,440
5,355,649
Positive
(Negative) from
Final Budget
$
(18,478)
33,305
(491)
11,632
40
(382,331)
60,990
(239,010)
30,203,566
$
(1,060,289)
____________________________________________________________________________________________________
(Continued)
80.
EXHIBIT 3
GENERAL FUND
SCHEDULE OF EXPENDITURES
Final
Budget
EXPENDITURES
General Government
Administration
Salaries and Wages
Employee Benefits
Personnel Expenditures
Professional Services
Contractual Services
Insurance
Commodities
Utilities
Repairs and Maintenance
Miscellaneous
Total Administration
Information Systems
$
Salaries and Wages
Employee Benefits
Commodities
Utilities
Total Information Systems
731,720
288,690
9,000
153,120
666,900
12,920
15,100
5,325
33,700
1,715,750
3,632,225
Actual
$
733,552
250,029
8,941
160,877
536,354
13,603
13,749
5,724
31,006
1,606,763
3,360,598
Positive
(Negative) from
Final Budget
$
(1,832)
38,661
59
(7,757)
130,546
(683)
1,351
(399)
2,694
108,987
271,627
306,800
115,426
5,200
7,000
4,480
2,050
2,600
11,200
454,756
287,850
106,212
2,246
4,680
3,427
1,360
2,587
8,324
416,686
18,950
9,214
2,954
2,320
1,053
690
13
2,876
38,070
Cable Television
Commodities
Total Cable Television
25,400
10,400
500
36,300
27,086
9,810
253
37,149
(1,686)
590
247
(849)
Building Maintenance
Insurance
Commodities
Utilities
Total Building Maintenance
32,000
4,380
3,450
300
21,300
61,430
31,058
4,760
2,330
300
18,100
56,548
942
(380)
1,120
3,200
4,882
Planning
Salaries and Wages
762,850
748,575
14,275
Employee Benefits
298,975
261,976
36,999
9,200
4,275
4,925
63,900
91,883
(27,983)
9,800
9,851
(51)
______________________________________________________________________________________________________________
(Continued)
81.
EXHIBIT 3
GENERAL FUND
Insurance
Commodities
Utilities
Total Planning
$
Final
Budget
15,170
19,500
7,600
13,800
1,200,795
$
Actual
15,688
17,580
7,667
10,921
1,168,416
Positive
(Negative) from
Final Budget
$
(518)
1,920
(67)
2,879
32,379
Engineering
Salaries and Wages
Employee Benefits
Insurance
Commodities
Utilities
Total Engineering
Total General Government
575,600
243,915
8,300
9,700
6,500
14,810
15,100
5,650
20,150
899,725
6,285,231
559,390
208,269
3,080
1,136
6,438
15,284
15,936
6,731
18,182
834,446
5,873,843
16,210
35,646
5,220
8,564
62
(474)
(836)
(1,081)
1,968
65,279
411,388
Public Safety
Police
Salaries and Wages
Employee Benefits
Insurance
Commodities
Utilities
Total Police
6,835,742
3,000,715
100,500
148,350
171,010
106,700
275,710
65,975
252,200
10,956,902
6,656,543
2,911,288
77,088
531,898
150,805
117,953
212,349
65,912
247,663
10,971,499
179,199
89,427
23,412
(383,548)
20,205
(11,253)
63,361
63
4,537
(14,597)
Fire
Salaries and Wages
Employee Benefits
Insurance
Commodities
Utilities
Total Fire
5,070,700
2,280,680
92,800
22,300
87,500
76,700
180,400
40,600
181,300
8,032,980
4,967,050
2,252,883
63,570
68,334
73,895
91,512
139,445
41,720
164,085
7,862,494
103,650
27,797
29,230
(46,034)
13,605
(14,812)
40,955
(1,120)
17,215
170,486
______________________________________________________________________________________________________________
(Continued)
82.
EXHIBIT 3
GENERAL FUND
Final
Budget
Communications
Salaries and Wages
Employee Benefits
Insurance
Commodities
Total Communications
Total Public Safety
$
Street Maintenance
Salaries and Wages
Employee Benefits
Insurance
Commodities
Utilities
Total Street Maintenance
Vehicle Maintenance
Salaries and Wages
Employee Benefits
Insurance
Commodities
Miscellaneous
Total Vehicle Maintenance
Total Highways and Streets
Capital Outlay
Total Expenditures
$
957,839
400,681
13,250
5,400
3,360
9,920
3,400
8,550
1,402,400
20,392,282
Actual
$
931,543
364,928
5,034
287
2,771
10,920
1,829
5,020
1,322,332
20,156,325
Positive
(Negative) from
Final Budget
$
26,296
35,753
8,216
5,113
589
(1,000)
1,571
3,530
80,068
235,957
1,030,872
591,170
10,425
21,500
264,196
83,579
627,550
213,200
358,559
3,201,051
1,134,522
551,186
6,432
7,462
266,987
90,812
574,696
193,054
349,265
3,174,416
(103,650)
39,984
3,993
14,038
(2,791)
(7,233)
52,854
20,146
9,294
26,635
286,238
131,395
2,440
200
650
1,770
103,805
4,950
(149,400)
382,048
3,583,099
276,181
106,575
1,121
170
433
1,949
168,199
3,804
(224,315)
334,117
3,508,533
10,057
24,820
1,319
30
217
(179)
(64,394)
1,146
74,915
47,931
74,566
294,660
268,355
26,305
30,555,272
$
29,807,056
$
748,216
______________________________________________________________________________________________________________
(Continued)
83.
EXHIBIT 4
CAPITAL IMPROVEMENT FUND
Final
Budget
REVENUES
Intergovernmental
Interest
TOTAL REVENUES
$
440,000
50,000
490,000
Actual
$
1,485,731
2,732
1,488,463
Positive
(Negative) from
Final Budget
$
1,045,731
(47,268)
998,463
EXPENDITURES
Capital Outlay
Debt Service:
1,275,500
1,243,694
31,806
Principal Payments
Interest Payments
TOTAL EXPENDITURES
102,127
5,373
1,383,000
102,093
5,407
1,351,194
34
(34)
31,806
$
(893,000)
137,269
$
1,030,269
1,609,151
$
1,746,420
______________________________________________________________________________________________________________
84.
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
April 30, 2010
Special Revenue Funds
Motor Fuel
Tax Fund
Impact Fund
911 Fund
ASSETS
Taxes Receivable
Receivables - Other
Prepaid Items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts Payable
Other Payable
Deferred Revenue
TOTAL LIABILITIES
$
$
$
1,032,713
27,455
1,060,168
$
2,005
2,005
$
$
2,000,884
133,029
2,133,913
$
320
320
$
$
Asset
Forfeiture Fund
2,543,816
2,543,816
$
-
$
$
56,531
56,531
1,001
1,001
FUND BALANCE
Fund Balance - Reserved for Prepaids
Fund Balance - Unreserved
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
1,058,163
1,058,163
$
1,060,168
2,133,593
2,133,593
$
2,133,913
2,543,816
2,543,816
$
2,543,816
55,530
55,530
$
56,531
_________________________________________________________________________________________________________________
85.
EXHIBIT 5
Total
Special
Revenue Funds
$
$
$
5,633,944
133,029
27,455
5,794,428
$
2,325
1,001
3,326
$
$
5,791,102
5,791,102
$
5,794,428
Capital Projects
Capital
Projects Fund
Debt Service
Fund
1,365,412
1,365,412
$
-
$
$
1,365,412
1,365,412
$
1,365,412
Total Nonmajor
Governmental
Funds
-
$
-
$
$
$
-
6,999,356
133,029
27,455
7,159,840
2,325
1,001
3,326
7,156,514
7,156,514
$
7,159,840
_________________________________________________________________________________________________________________
86.
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Special Revenue Funds
Motor Fuel
Tax Fund
Impact Fund
911 Fund
REVENUES
Charges for Service
Donations
Intergovernmental
Interest
TOTAL REVENUES
$
EXPENDITURES
Current:
Public Safety
Capital Outlay
Debt Service:
Principal Payments
Interest Payments
TOTAL EXPENDITURES
Excess (deficiency) of revenues
over expenditures
381,965
7,480
389,445
$
865,169
2,921
868,090
$
Asset
Forfeiture Fund
66,055
3,937
69,992
$
50
4,457
237
4,744
184,933
128,104
1,009,106
722,796
-
2,276
-
313,037
1,731,902
-
2,276
69,992
2,468
76,408
(863,812)
Transfers In
Transfers Out
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
-
-
-
-
76,408
69,992
2,468
2,473,824
53,062
Fund Balances at beginning of year
Fund Balances at end of year
(863,812)
981,755
$
1,058,163
2,997,405
$
2,133,593
$
2,543,816
$
55,530
______________________________________________________________________________________________________________
87.
EXHIBIT 6
Total
Special
Revenue Funds
$
66,055
381,965
50
869,626
14,575
1,332,271
Debt Service
Fund
$
Total Nonmajor
Governmental
Funds
$
$
-
66,055
381,965
50
869,626
16,025
1,333,721
187,209
1,009,106
850,900
-
-
187,209
1,009,106
850,900
2,047,215
910,000
346,258
55,024
1,311,282
-
910,000
346,258
55,024
3,358,497
(1,309,832)
-
(2,024,776)
(714,944)
-
1,256,258
5,320,000
145,303
(5,405,933)
(20,657)
-
1,256,258
(20,657)
5,320,000
145,303
(5,405,933)
-
1,315,628
(20,657)
1,294,971
5,796
(20,657)
(714,944)
6,506,046
$
1,450
1,450
Capital Projects
Capital
Projects Fund
5,791,102
1,359,616
$
1,365,412
(729,805)
20,657
$
-
7,886,319
$
7,156,514
______________________________________________________________________________________________________________
88.
EXHIBIT 7
911 FUND
Final
Budget
REVENUES
Charges for Service
Interest
TOTAL REVENUES
$
331,500
13,000
344,500
Actual
$
381,965
7,480
389,445
Positive
(Negative) from
Final Budget
$
50,465
(5,520)
44,945
EXPENDITURES
Current:
Public Safety
Salaries and Wages
Employee Benefits
Total Public Safety
7,000
750
9,750
1,500
88,600
134,600
242,200
6,785
83,105
95,043
184,933
7,000
750
2,965
1,500
5,495
39,557
57,267
Capital Outlay
245,150
128,104
117,046
TOTAL EXPENDITURES
487,350
313,037
174,313
(142,850)
76,408
$
Fund Balances at beginning of year
Fund Balances at end of year
$
219,258
981,755
$
1,058,163
______________________________________________________________________________________________________________
89.
EXHIBIT 8
MOTOR FUEL TAX FUND
Final
Budget
REVENUES
Intergovernmental
Interest
TOTAL REVENUES
$
EXPENDITURES
Current:
Total Highways and Streets
Capital Outlay
TOTAL EXPENDITURES
$
815,000
50,000
865,000
Actual
$
$
50,169
(47,079)
3,090
71,700
1,012,200
1,083,900
71,696
937,410
1,009,106
4
74,790
74,794
726,100
722,796
3,304
1,810,000
1,731,902
78,098
(945,000)
(863,812)
865,169
2,921
868,090
Positive
(Negative) from
Final Budget
$
81,188
2,997,405
$
2,133,593
______________________________________________________________________________________________________________
90.
EXHIBIT 9
IMPACT FUND
SCHEDULE OF REVENUES AND CHANGES IN FUND BALANCE
Final
Budget
REVENUES
Interest
TOTAL REVENUES
$
40,000
40,000
$
40,000
Actual
$
Positive
(Negative) from
Final Budget
66,055
3,937
69,992
$
66,055
(36,063)
29,992
69,992
$
29,992
2,473,824
$
2,543,816
______________________________________________________________________________________________________________
91.
EXHIBIT 10
ASSET FORFEITURE FUND
Final
Budget
REVENUES
Intergovernmental
Interest
TOTAL REVENUES
$
EXPENDITURES
Current:
Public Safety
TOTAL EXPENDITURES
$
Actual
100
100
$
-
2,276
2,276
100
2,468
4,507
237
4,744
Positive
(Negative) from
Final Budget
$
4,507
137
4,644
(2,276)
(2,276)
$
2,368
53,062
$
55,530
______________________________________________________________________________________________________________
92.
EXHIBIT 11
DEBT SERVICE FUND
Final
Budget
REVENUES
Interest
TOTAL REVENUES
$
23,000
23,000
Actual
$
1,450
1,450
Positive
(Negative) from
Final Budget
$
(21,550)
(21,550)
EXPENDITURES
Debt Service:
Principal Payments
Interest Payments
TOTAL EXPENDITURES
Excess (deficiency) of revenues over expenditures
910,000
347,000
700
910,000
346,258
55,024
742
(54,324)
1,257,700
1,311,282
(53,582)
(1,234,700)
(1,309,832)
(75,132)
1,157,000
-
1,256,258
5,320,000
145,303
(5,405,933)
99,258
5,320,000
145,303
(5,405,933)
1,157,000
1,315,628
OTHER FINANCING SOURCES
Transfers In
TOTAL OTHER FINANCING SOURCES
$
(77,700)
5,796
158,628
$
83,496
1,359,616
$
1,365,412
______________________________________________________________________________________________________________
93.
EXHIBIT 12
GOLF COURSE FUND
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
Final
Budget
OPERATING EXPENSES
Operations
$
Actual
2,000
2,000
$
(2,000)
Interest Income
$
(1,850)
14
2,000
2,000
2,000
14
14
-
150
150
$
Positive
(Negative) from
Final Budget
-
(136)
(136)
$
1,864
4,504,544
$
4,504,558
______________________________________________________________________________________________________________
94.
EXHIBIT 13
WATER AND SEWER FUND
COMBINING BALANCE SHEET
April 30, 2010
ASSETS
Current Assets:
Receivables - Other, Net
Due from Other Funds
Prepaid Items
Noncurrent Assets:
Capital Assets:
Water and Sewer
Operating Account
Water and Sewer
Capital Account
$
$
TOTAL ASSETS
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Payroll
Medical Claims Payable
Recapture Payable
Interest Payable
Due to Other Funds
Other Payable
Noncurrent Liabilities:
Total Liabilities
NET ASSETS
Invested in Capital Assets
Unrestricted
Total Net Assets
2,584,069
1,895,949
13,919
$
2,584,069
1,895,949
7,639,811
23,855
458,754
56,671,272
-
458,754
56,671,272
61,623,963
7,649,747
69,273,710
320,290
16,614
4,237
334,225
7,639,811
204,657
45,204
58
-
320,348
16,614
4,237
334,225
7,639,811
204,657
45,204
45,204
-
45,204
8,610,242
58
8,610,300
7,649,689
57,130,026
3,533,384
57,130,026
(4,116,305)
$
7,639,811
9,936
Total
53,013,721
$
7,649,689
$
60,663,410
______________________________________________________________________________________________________________
95.
EXHIBIT 14
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
WATER AND SEWER FUND
Water and Sewer
Operating Account
OPERATING REVENUES
Charges for Service
$
OPERATING EXPENSES
Operations
Depreciation
6,097,973
6,097,973
Water and Sewer
Capital Account
$
5,208,067
1,147,204
6,355,271
$
33,740
33,740
(257,298)
Connection Fees
Interest Income
Interest Expense
-
Total
5,241,807
1,147,204
6,389,011
(33,740)
2,221
10,394
(5,709)
6,906
6,097,973
6,097,973
(291,038)
9,900
1
9,901
12,121
10,395
(5,709)
16,807
(250,392)
(23,839)
(274,231)
TRANSFERS
Transfers In
Transfers Out
Total transfers
238,855
(580,008)
(341,153)
(238,855)
(238,855)
238,855
(818,863)
(580,008)
(591,545)
(262,694)
(854,239)
53,605,266
$
53,013,721
7,912,383
$
7,649,689
61,517,649
$
60,663,410
______________________________________________________________________________________________________________
96.
EXHIBIT 15
WATER AND SEWER OPERATING ACCOUNT
Final
Budget
OPERATING REVENUES
Charges for Service
$
5,686,000
5,686,000
Actual
$
6,097,973
6,097,973
Positive
(Negative) from
Final Budget
$
411,973
411,973
OPERATING EXPENSES
Operations
Salaries and Wages
Employee Benefits
Insurance
Commodities
Utilities
Capital Outlay
Depreciation
935,340
479,530
12,745
24,000
57,800
77,485
3,928,200
119,500
197,126
1,850
5,833,576
924,368
471,203
5,049
15,234
56,264
76,161
3,348,915
113,253
196,113
1,507
1,147,204
6,355,271
10,972
8,327
7,696
8,766
1,536
1,324
579,285
6,247
1,013
343
(1,147,204)
(521,695)
(147,576)
(257,298)
(109,722)
Connection Fees
Interest Income
Interest Payment
50,000
(239,350)
(189,350)
2,221
10,394
(5,709)
6,906
2,221
(39,606)
233,641
196,256
(336,926)
(250,392)
239,000
(580,000)
(341,000)
238,855
(580,008)
(341,153)
(677,926)
(591,545)
86,534
TRANSFERS
Transfers In
Transfers Out
Total transfers
$
(145)
(8)
(153)
$
86,381
53,605,266
$
53,013,721
______________________________________________________________________________________________________________
97.
EXHIBIT 16
WATER AND SEWER CAPITAL ACCOUNT
Final
Budget
Actual
Positive
(Negative) from
Final Budget
OPERATING EXPENSES
Operations
$
216,000
216,000
$
33,740
33,740
$
182,260
182,260
(216,000)
(33,740)
182,260
65,000
5,000
70,000
9,900
1
9,901
(55,100)
(4,999)
(60,099)
(146,000)
(23,839)
122,161
TRANSFERS
Transfers Out
Total transfers
(239,000)
(239,000)
(238,855)
(238,855)
145
145
(385,000)
(262,694)
Connection Fees
Interest Income
$
$
122,306
7,912,383
$
7,649,689
______________________________________________________________________________________________________________
98.
EXHIBIT 17
PENSION TRUST FUNDS
COMBINING STATEMENT OF PLAN NET ASSETS
April 30, 2010
Police
Pension
ASSETS
Investments:
$
Governmental Securities
Illinois Funds
Equities
Total Investments
Accrued interest receivable
Miscellaneous accounts receivable
Total Assets
31,367
Firefighters'
Pension
$
475,489
Total
$
506,856
14,855,291
1,346,793
5,952,578
22,154,662
10,873,702
5,308,831
16,182,533
25,728,993
1,346,793
11,261,409
38,337,195
34,079
11,324
22,231,432
16,658,022
34,079
11,324
38,889,454
80,675
7,697
88,372
1,165
1,165
80,675
8,862
89,537
LIABILITIES
Due to Village
Accounts Payable
Total Liabilities
NET ASSETS
Total Net Assets
$
22,143,060
22,143,060
$
16,656,857
16,656,857
$
38,799,917
38,799,917
______________________________________________________________________________________________________________
99.
EXHIBIT 18
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
Police
Pension
Firefighters'
Pension
Total
ADDITIONS
Contributions:
Employer
Plan Members
Total Contributions
$
488,513
1,007,857
1,496,370
$
381,608
894,700
1,276,308
$
870,121
1,902,557
2,772,678
Interest
2,474,208
1,515,741
3,989,949
2,474,208
1,515,741
3,989,949
(9,283)
(47,349)
Total additions
(56,632)
3,923,229
2,782,766
6,705,995
799,151
565,515
1,364,666
799,151
565,515
1,364,666
3,124,078
2,217,251
5,341,329
19,018,982
14,439,606
33,458,588
DEDUCTIONS
Total deductions
$
22,143,060
$
16,656,857
$
38,799,917
______________________________________________________________________________________________________________
100.
EXHIBIT 19
POLICE PENSION TRUST FUND
SCHEDULE OF CHANGES IN PLAN NET ASSETS
Final
Budget
ADDITIONS
Contributions:
Employer
Plan Members
Total Contributions
$
497,000
1,008,000
1,505,000
Interest
725,000
725,000
(71,500)
Total additions
DEDUCTIONS
Total deductions
$
Actual
$
$
2,474,208
2,474,208
2,158,500
3,923,229
729,250
729,250
799,151
799,151
1,429,250
3,124,078
(8,487)
(143)
(8,630)
1,749,208
1,749,208
(47,349)
488,513
1,007,857
1,496,370
Positive
(Negative) from
Final Budget
24,151
1,764,729
(69,901)
(69,901)
$
1,694,828
19,018,982
$
22,143,060
______________________________________________________________________________________________________________
101.
EXHIBIT 20
FIREFIGHTERS' PENSION TRUST FUND
SCHEDULE OF CHANGES IN PLAN NET ASSETS
Final
Budget
ADDITIONS
Contributions:
Employer
Plan Members
Total Contributions
$
389,000
895,000
1,284,000
Interest
525,000
525,000
(18,000)
Total additions
DEDUCTIONS
Total deductions
$
Actual
$
$
1,515,741
1,515,741
1,791,000
2,782,766
446,450
446,450
565,515
565,515
1,344,550
2,217,251
(7,392)
(300)
(7,692)
990,741
990,741
(9,283)
381,608
894,700
1,276,308
Positive
(Negative) from
Final Budget
8,717
991,766
(119,065)
(119,065)
$
872,701
14,439,606
$
16,656,857
______________________________________________________________________________________________________________
102.
EXHIBIT 21
AGENCY FUND - SPECIAL SERVICE AREA #2 FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balances
April 30, 2009
Additions
Deductions
Balances
April 30, 2010
ASSETS
Total Assets
$
$
9,354
9,354
$
$
41,429
41,429
$
$
(41,300)
(41,300)
$
$
9,483
9,483
LIABILITIES
Due to Bondholders
Total Liabilities
$
$
9,354
9,354
$
$
41,429
41,429
$
$
(41,300)
(41,300)
$
$
9,483
9,483
______________________________________________________________________________________________________________
103.
STATISTICAL SECTION
STATISTICAL SECTION
(Unaudited)
This statistical section of the comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary, and required supplementary information says
about the Village’s overall financial heath. Below is a description of the types of statistical
schedules.

Financial Trends – These schedules contain trend information to help the reader
understand how the Village’s financial performance has changed over time.

Revenue Capacity – These schedules contain information to help the reader assess the
Village’s most significant local revenue source, the property tax.

Debt Capacity – These schedules represent information to help the reader assess the
affordability of the Village’s current levels of outstanding debt and the Village’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
Village’s financial activities take place.

Operating Information – These schedules contain service and infrastructure data to help
the reader understand how the information in the Villages report relates to the services
the Village provides and the activities it performs.
Schedule 1
Net Assets by Component
2005
Fiscal Year End April 30
2007
2008
2006
2009
2010
(in thousands)
Invested in capital assets, net of related debt
Restricted Assets
Unrestricted Assets
$
62,742
1,284
23,418
$
63,667
1,331
24,083
$
63,935
1,301
28,035
$
63,622
1,343
29,991
$
63,265
4,357
27,081
$
63,055
3,499
27,163
Total governmental activities net assets
$
87,444
$
89,081
$
93,271
$
94,956
$
94,703
$
93,717
Unrestricted Assets
$
64,102
4,230
$
63,791
4,349
$
63,994
4,583
$
63,429
4,242
$
62,542
3,480
$
61,624
3,544
Total business-type activities net assets
$
68,332
$
68,140
$
68,577
$
67,671
$
66,022
$
65,168
$
126,844
1,284
27,648
$
127,458
1,331
28,432
$
127,930
1,301
32,617
$
127,051
1,343
34,233
$
125,807
4,357
30,561
$
124,679
3,499
30,707
$
155,776
$
157,221
$
161,848
$
162,627
$
160,725
$
158,885
Primary government
Restricted Assets
Unrestricted Assets
Total primary government net assets
Source: Financial Section, Statement of Net Assets.
104.
Schedule 2
Changes in Net Assets
2005
2006
2007
2008
2009
2010
Expenses
Governmental activities:
General government
$
Public Safety
Highways & Streets / Capital Projects
Interest on long-term debt
Total governmental activities expenses
5,820,352
$
6,736,416
$
6,678,575
$
6,515,179
$
6,865,650
$
5,890,375
16,384,625
18,207,459
18,588,123
19,833,977
19,550,384
21,498,155
4,573,290
5,024,153
5,044,439
6,687,893
6,837,413
6,603,539
459,423
471,054
439,926
356,288
275,128
515,962
27,237,690
30,439,082
30,751,063
33,393,337
33,528,575
34,508,031
5,838,342
6,041,979
6,083,543
6,295,783
6,731,539
6,394,720
157
-
-
23,093
400,000
-
Business-type activities:
Water & Sewer
Golf Course
Total business-type activities expenses
Total primary government expenses
5,838,499
6,041,979
6,083,543
6,318,876
7,131,539
6,394,720
$
33,076,189
$
36,481,061
$
36,834,606
$
39,712,213
$
40,660,114
$
40,902,751
$
5,312,390
$
5,409,360
$
5,926,773
$
6,382,353
$
5,719,156
$
6,589,825
Program Revenues (see Schedule 3)
Charges for services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
98,973
199,851
170,496
148,021
68,742
92,986
133,550
-
146,571
32,470
328,753
1,382,231
5,544,913
5,609,211
6,243,840
6,562,844
6,116,651
8,065,042
6,232,781
6,086,732
5,656,854
5,536,970
5,863,435
6,097,973
470,189
512,595
1,187,999
273,770
132,820
12,121
-
-
-
-
-
-
6,702,970
6,599,327
6,844,853
5,810,740
5,996,255
6,110,094
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
$
12,247,883
$
12,208,538
$
13,088,693
$
12,373,584
$
12,112,906
$
14,175,136
Net (Expense)/Revenue
$
Total primary government net expense
$
(21,692,777) $
(24,829,871) $
(24,507,223) $
(26,830,493) $
864,471
557,348
761,310
(508,136)
(20,828,306) $
(24,272,523) $
(23,745,913) $
(27,338,629) $
(27,411,924) $
(1,135,284)
(26,442,989)
(284,626)
(28,547,208) $
(26,727,615)
General Revenues and Other Changes in Net Assets
Taxes
$
Intergovernmental
20,456,320
$
21,508,341
$
22,288,636
$
22,938,055
$
22,532,255
$
21,276,815
2,893,854
3,094,936
3,479,551
3,834,460
3,613,264
333,781
831,069
1,292,234
1,171,971
380,624
79,747
(180,692)
29,741
27,902
34,438
11,741
48,698
Miscellaneous
133,402
112,476
34,654
10,705
70,544
38,622
Transfers
563,155
890,916
501,000
526,000
550,108
580,008
24,199,820
26,467,479
27,623,977
28,515,629
27,158,536
25,457,356
Investment earnings
Gain / Loss on Property Sale
Total governmental activities
3,433,466
Investment earnings
$
Transfers
Total business-type activities
Total primary government
69,677
$
142,004
$
(890,916)
(563,155)
(748,912)
(493,478)
176,513
$
(501,000)
127,668
$
(526,000)
(324,487)
36,815
$
(550,108)
(398,332)
(513,293)
(569,599)
$
23,706,342
$
25,718,567
$
27,299,490
$
28,117,297
$
$
2,507,043
$
1,637,608
$
3,116,754
$
1,685,136
$
(253,388) $
$
2,878,036
$
1,446,044
$
3,553,577
$
(1,901,965) $
26,645,243
10,409
(580,008)
$
24,887,757
370,993
(191,564)
436,823
(906,468)
$
778,668
(1,648,577)
(985,633)
(854,225)
(1,839,858)
Note: The Golf Course has never had any revenues, thus revenues for that function is not provided above.
Source: Financial Section, Statement of Activities
105.
Schedule 3
Program Revenues by Function/Program
2005
Function/Program
General government
Public Safety
$
Subtotal governmental activities
1,405,906
3,618,624
520,383
2007
2008
2006
$
1,452,533
3,651,746
504,932
$
1,798,846
3,966,396
478,598
$
1,650,376
4,299,741
612,727
2009
$
1,079,448
4,430,502
606,701
2010
$
940,341
5,588,126
1,536,575
5,544,913
5,609,211
6,243,840
6,562,844
6,116,651
8,065,042
Water & Sewer
6,702,970
6,599,327
6,884,853
5,810,740
5,996,255
6,110,094
Subtotal business-type activities
6,702,970
6,599,327
6,884,853
5,810,740
5,996,255
6,110,094
12,373,584
$ 12,112,906
$
12,247,883
$
12,208,538
$
13,128,693
$
$
14,175,136
Source: Financial Section, Statement of Activities
106.
Schedule 4
Fund Balances, Governmental Funds
2002
2001
2003
2005
2006
2004
2007
2008
2009
2010
General Fund
Reserved
Unreserved
$
135,492
12,959,575
$
1,101,559
13,282,067
$
1,232,519
14,704,393
$
831,735
14,102,980
$
562,201
15,948,128
$
563,742
16,744,216
$
130,065
17,325,633
$
59,538
20,378,150
$
390,493
21,437,972
$
220,999
21,453,487
Total general fund
$
13,095,067
$
14,383,626
$
15,936,912
$
14,934,715
$
16,510,329
$
17,307,958
$
17,455,698
$
20,437,688
$
21,828,465
$
21,674,486
$
1,277,148
$
1,336,834
$
1,392,619
$
1,877,521
$
1,283,537
$
1,331,263
$
1,312,847
$
1,580,764
$
1,372,712
$
1,504,571
All Other Governmental Funds
Reserved
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
Total governmental funds
$
4,365,354
6,084,949
1,828,273
7,847,400
4,781,536
8,529,118
4,897,529
2,795,174
5,912,065
3,090,202
6,474,073
1,979,532
6,416,650
4,376,845
6,334,075
3,747,686
6,492,950
1,629,808
5,791,102
1,607,261
11,727,451
11,012,507
14,703,273
9,570,224
10,285,804
9,784,868
12,106,342
11,662,525
9,495,470
8,902,934
24,822,518
$
25,396,133
$
30,640,185
$
24,504,939
$
26,796,133
$
27,092,826
$
29,562,040
$
32,100,213
$
31,323,935
$
30,577,420
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2004; prior to 2004, all governmental funds are included; however they are reported on a
modified accrual basis.
Source: Financial Section, Governmental Funds Balance Sheet
107.
Schedule 5
Changes in Fund Balances, Governmental Funds
2001
Revenues
Taxes (see Schedule 6)
Intergovernmental
Fines and forfeitures
Investment earnings
Other revenues
$
16,923,432
851,847
5,808,665
1,438,074
362,121
362,121
1,402,554
2003
2004
2002
$
18,222,437
781,720
5,367,557
1,413,945
368,270
608,035
604,539
$
18,559,804
896,292
5,066,374
1,515,481
462,543
463,750
682,179
$
18,459,999
691,436
5,062,001
1,482,051
403,376
262,187
324,275
2005
$
20,384,300
1,187,956
5,415,053
1,483,213
480,647
333,781
60,367
27,148,814
27,366,503
27,646,423
26,685,325
29,345,317
5,573,946
12,574,836
2,925,042
6,545,236
6,378,926
13,585,151
2,904,319
3,702,219
6,518,150
14,219,897
3,019,421
7,238,898
6,514,039
15,768,793
3,257,265
5,742,193
5,749,445
15,288,353
3,233,283
1,526,919
685,139
370,430
-
820,494
381,844
-
1,394,621
500,579
-
1,185,439
755,316
-
1,382,136
458,976
-
Total expenditures
28,674,629
27,772,953
32,891,566
33,223,045
27,639,112
Excess of revenues over
(under) expenditures
(1,525,815)
(406,450)
(5,245,143)
(6,537,720)
1,706,205
Other Financing
Sources (Uses)
Bonds issued
Payment to escrow
Sale of Assets
Transfers in
Transfers out
4,217,428
(3,572,428)
3,845,845
(2,865,780)
10,000,000
1,919,868
(1,430,673)
4,950,959
(4,838,200)
2,283,735
(1,993,020)
21,834
2,672,961
(2,109,806)
Total revenues
Expenditures
General government
Public Safety
Capital outlay
Debt service
Principal
Interest
Fees
Total other financing
sources (uses)
Net change in
fund balances
Debt service as a
percentage of noncapital
expenditures
645,000
$
(880,815) $
4.8%
980,065
573,615
5.0%
10,489,195
$
5,244,052
403,474
$
7.4%
(6,134,246) $
7.1%
584,989
2,291,194
7.1%
Note: The Village began to report accrual information when it implemented GASB Statement 34 in fiscal year 2004;
prior to 2004, all governmental funds are included; however they are reported on a modified accrual basis.
Source: Financial Section, Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balance
108.
Schedule 5
2006
$
21,282,264
1,503,431
5,539,993
1,356,747
479,304
831,069
13,782
$
22,352,488
1,730,789
6,146,102
1,435,431
518,238
1,292,234
13,872
$
22,820,400
1,707,524
6,482,397
1,710,473
600,335
1,171,971
12,892
$
22,583,971
889,621
6,558,240
1,875,881
551,237
380,624
8,898
2010
$
21,214,521
783,213
7,711,006
1,562,090
1,644,058
79,747
31,115
31,006,590
33,489,154
34,505,992
32,848,472
33,025,750
6,635,096
17,210,075
3,718,634
2,201,628
6,654,913
17,533,292
3,894,096
1,634,650
6,389,124
18,347,782
4,276,190
2,540,457
6,686,712
18,679,042
4,130,100
3,377,435
5,873,843
20,343,534
4,517,639
2,362,949
1,405,176
459,945
-
1,402,435
429,456
-
887,465
414,568
-
977,934
383,324
700
1,012,093
351,665
55,024
31,630,554
31,548,842
32,855,586
34,235,247
34,516,747
1,940,312
1,650,406
(1,386,775)
(1,490,997)
27,902
4,975,905
(4,474,905)
300,175
61,592
2,766,467
(2,240,467)
60,389
1,873,866
(1,323,758)
5,465,303
(5,405,933)
105,104
1,856,923
(1,276,915)
(623,964)
29,741
2,323,454
(1,432,538)
920,657
$
2008
2009
2007
296,693
6.3%
528,902
$
2,469,214
6.1%
887,767
$
2,538,173
4.3%
610,497
$
(776,278) $
4.4%
744,482
(746,515)
4.2%
109.
Schedule 6
Tax Revenues by Source, Governmental Funds
Fiscal
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Change
2001 - 2010
Sales tax (a)
$
15,244,162
16,267,115
16,908,594
17,061,951
17,052,628
16,835,073
15,210,633
15,664,132
15,209,009
12,514,956
21.8%
Hotel/Motel tax
Food &
(c)
Amusement tax Beverage tax (b)
Property tax (d)
$
$
1,832,389
1,998,299
1,991,106
1,972,369
2,298,544
1,820,863
1,801,462
1,879,036
1,968,185
1,948,145
-5.9%
$
1,490,610
1,541,686
1,495,457
1,207,109
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$
1,077,417
1,528,343
950,949
759,694
691,081
627,434
617,184
656,654
716,689
731,139
47.4%
Misc. tax (e)
596,871 $
533,423
501,169
456,686
424,457
395,024
356,312
328,173
306,457
1,706,443
-65.0%
973,072 $
715,105
973,125
894,679
815,554
705,906
474,408
31,809
22,097
22,749
4177.4%
Total
21,214,521
22,583,971
22,820,400
22,352,488
21,282,264
20,384,300
18,459,999
18,559,804
18,222,437
16,923,432
25.4%
Notes:
0.5% home rule sale tax implemented in 2001.
b
1% Food & beverage tax implemented in 2007.
a
c
2% Resort tax implemented in 2008. 5% hotel/motel tax existed previously.
Property tax levy was eliminated in the 2000 levy year, amount shown above is Road & Bridge collections.
e
Beginning in 2004, Telecommunications, Cable TV, and Alarm Franchise taxes were reclassified from user fees to taxes.
d
Source: Financial Section, General Fund Schedule of Detailed Revenues Budget (GAAP Basis) and Actual
110.
Schedule 7
Equalized Assessed Value (EAV) and
Estimated Actual Value of Taxable Property
Levy
Year
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Real
Estate
$
1,349,612,905
1,376,370,503
1,336,439,067
1,235,716,058
1,140,160,313
1,047,979,228
994,572,294
938,681,653
865,146,736
806,406,257
Total
EAV
Railroads
$
376,417
311,575
270,930
254,220
256,766
281,225
276,408
258,570
212,427
195,696
$
1,349,989,322
1,376,682,078
1,336,709,997
1,235,970,278
1,140,417,079
1,048,260,453
994,848,702
938,940,223
865,359,163
806,601,953
Estimated
Actual
Value
Tax
Rate
-
$
-
-
4,499,964,407
4,588,940,260
4,455,699,990
4,119,900,927
3,801,390,263
3,494,201,510
3,316,162,340
3,129,800,743
2,884,530,543
2,688,673,177
Source: Office of the County Clerk of Lake County Certificate of Rates and Extensions.
Note: Assume total EAV is 1/3rd of Estimated Actual Value
111.
Schedule 8
Direct and Overlapping Property Tax Rates
Overlapping Rates, Grade School District 56 a
Tax
Levy
Year
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Lake
County
Lake
County
Forest
Warren
Township
North
Shore
Sanitary
0.464
0.453
0.444
0.450
0.454
0.465
0.490
0.502
0.516
0.521
0.200
0.199
0.201
0.204
0.210
0.219
0.225
0.232
0.221
0.231
0.438
0.201
0.193
0.197
0.198
0.433
0.438
0.441
0.453
0.449
0.124
0.121
0.120
0.125
0.132
0.139
0.144
0.152
0.160
0.167
Gurnee
Park
District
0.364
0.356
0.350
0.358
0.654
0.374
0.370
0.307
0.314
0.310
School
District
56
3.396
3.290
3.241
3.348
3.327
3.383
3.473
3.537
3.637
3.585
High
School
121
Warren
Newport
Library
1.620
1.549
1.590
1.638
1.691
1.730
1.704
1.752
1.815
1.812
0.234
0.227
0.220
0.227
0.234
0.239
0.243
0.247
0.254
0.255
CLCJAWA
Water
0.042
0.042
0.042
0.046
0.049
0.054
0.058
0.064
0.066
0.072
College of
Lake
County
0.200
0.196
0.192
0.195
0.197
0.200
0.201
0.208
0.211
0.235
Overlapping Rates, Grade School District 50 a
Tax
Levy
Year
Lake
County
Lake
County
Forest
Warren
Township
North
Shore
Sanitary
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0.464
0.453
0.444
0.450
0.454
0.465
0.490
0.502
0.516
0.521
0.200
0.199
0.201
0.204
0.210
0.219
0.225
0.232
0.221
0.231
0.438
0.201
0.193
0.197
0.198
0.433
0.438
0.441
0.453
0.449
0.124
0.121
0.120
0.125
0.132
0.139
0.144
0.152
0.160
0.167
Gurnee
Park
District
0.364
0.356
0.350
0.358
0.654
0.374
0.370
0.307
0.314
0.310
School
District
50
3.261
3.290
3.062
3.185
3.265
3.330
3.392
3.436
3.565
3.580
High
School
121
1.620
1.549
1.590
1.638
1.691
1.730
1.704
1.752
1.815
1.812
Warren
Newport
Library
0.234
0.227
0.220
0.227
0.234
0.239
0.243
0.247
0.254
0.255
CLCJAWA
Water
0.042
0.042
0.042
0.046
0.049
0.054
0.058
0.064
0.066
0.072
College of
Lake
County
0.200
0.196
0.192
0.195
0.197
0.200
0.201
0.208
0.211
0.235
Source: Lake County Clerk Tax Extension Office
Notes: The Village is a home-rule municipality, and as such has the flexibility to levy property taxes. Rates for debt service are
set based on each year's requirements; however the Village has abated those taxes annually since 2000.
a
Overlapping rates are those of local and county governments that apply to property owners
within the Village of Gurnee. They have been further broken down into the two grade school
districts that straddle the Village, Grade School District 56 and District 50.
112.
Schedule 9
Principal Property Tax Payers,
Current Year and Nine Years Ago
2009 Levy Year
Percentage
of Total City
Taxable
Taxable
Assessed
Assessed
Value
Value
Taxpayer
The Mills Corporation
Property Tax Services Co/Six Flags G.A.
AMLI/BPMT Osprey Lake
Wal-Mart Property
KLCG Property/KeyLime Cove
Inland Western Gurnee, LLC
B&S/Woodlake Apartments
Northwestern Mutual Life Ins Co
Advocate Health & Hospital Corp/Condell
Centerpoint Properties Trust
$
Watson Pharma, Inc
Grand Avenue Associates, LLC
Greenleaf Center East, LLC
Lowe's Home Centers, Inc
Buckingham Companies/Northlake Farms Apts
58,642,766
29,213,880
14,778,449
9,784,593
8,332,500
7,612,239
7,315,934
7,165,950
5,940,331
5,558,486
4.34%
2.16%
1.09%
0.72%
0.62%
0.56%
0.54%
0.53%
0.44%
0.41%
5,000,000
4,821,304
4,427,302
4,193,743
4,175,677
0.37%
0.36%
0.33%
0.31%
0.31%
13.11%
Total
$
176,963,154
Total Gurnee Equalized Assessed Valuation
$
1,349,989,322
Source: Lake County Clerk, Tax Extension Office
Source - 2000 Information - Warren Township, 4/30/00 Village of Gurnee CAFR
113.
Schedule 9
2000 Levy Year
Percentage
of Total City
Taxable
Taxable
Assessed
Assessed
Value
Value
Gurnee Mills
Great America
Sams & Walmart
TRLP LLC - Industrial/Office Park
Pembrook Apartments
Buckingham Companies - Apartments
Grand Avenue Associates - Retail
Gurnee Industrial Park - Manuf.
Chicago Title & Trust Co. - Apartments
Manufacturers Life Insur Co. - Manuf.
$
44,007,898
25,276,904
5,420,665
4,709,302
4,574,558
3,618,000
3,368,995
3,116,576
2,967,650
2,954,200
3.26%
1.87%
0.40%
0.35%
0.34%
0.27%
0.25%
0.23%
0.22%
0.22%
$
100,014,748
13.33%
$
750,377,329
114.
Schedule 10
Taxable Sales by Category
Classification
2000
General Merchandise
$
Food
Drinking & Eating
Apparel
Furniture & Fixtures
Lumber & Hardware
Auto & Filling Stations
Drugs & Other Retail
Agriculture & All Others
Manufacturers
Total
$
% of
Total
2001
% of
Total
2002
% of
Total
Calendar Year
% of
2003
Total
2004
2,155,185
786,660
868,484
1,202,500
751,945
871,750
1,434,810
1,556,141
1,318,843
76,439
19.6% $
7.1%
7.9%
10.9%
6.8%
7.9%
13.0%
14.1%
12.0%
0.7%
3,289,921
882,448
1,339,274
1,533,367
1,067,892
1,227,248
1,650,314
2,377,219
1,984,974
89,363
21.3% $
5.7%
8.7%
9.9%
6.9%
7.9%
10.7%
15.4%
12.9%
0.6%
3,360,168
899,570
1,463,370
1,529,735
1,223,995
1,278,909
1,552,004
2,403,669
1,733,705
104,805
21.6% $
5.8%
9.4%
9.8%
7.9%
8.2%
10.0%
15.5%
11.1%
0.7%
3,443,426
891,174
1,525,775
1,560,574
1,222,718
1,277,172
1,516,533
2,430,570
1,365,531
133,026
22.4% $
5.8%
9.9%
10.2%
8.0%
8.3%
9.9%
15.8%
8.9%
0.9%
3,954,473
865,856
1,615,018
1,689,857
1,441,981
1,334,733
1,586,348
2,463,591
1,027,702
140,702
11,022,758
100.0% $
15,442,021
100.0% $
15,549,929
100.0% $
15,366,499
100.0% $
16,120,262
Source: Illinois Department of Revenue
Notes: Retail sales information is not available on a fiscal-year basis.
115.
Schedule 10
% of
Total
2005
% of
Total
2006
% of
Total
2007
% of
Total
2008
% of
Total
2009
% of
Total
24.5% $
5.4%
10.0%
10.5%
8.9%
8.3%
9.8%
15.3%
6.4%
0.9%
3,686,155
827,453
1,635,597
1,784,101
1,503,081
1,307,339
1,905,127
2,656,034
1,576,945
127,227
24.5% $
5.4%
10.0%
10.5%
8.9%
8.3%
9.8%
15.3%
6.4%
0.9%
3,527,375
795,635
1,670,304
1,845,067
1,466,647
1,233,211
2,024,612
2,790,064
1,499,061
136,688
20.8% $
4.7%
9.8%
10.9%
8.6%
7.3%
11.9%
16.4%
8.8%
0.8%
3,519,674
824,532
1,706,240
1,748,986
1,456,450
1,112,584
2,092,393
2,774,272
1,689,288
165,145
20.6% $
4.8%
10.0%
10.2%
8.5%
6.5%
12.2%
16.2%
9.9%
1.0%
3,194,658
818,037
1,764,513
1,653,242
1,248,132
1,141,634
2,044,221
2,627,616
1,504,141
172,265
19.8% $
5.1%
10.9%
10.2%
7.7%
7.1%
12.6%
16.3%
9.3%
1.1%
3,165,712
780,922
1,690,524
1,481,138
1,050,980
1,034,372
1,811,463
2,372,380
1,230,714
204,694
21.4%
5.3%
11.4%
10.0%
7.1%
7.0%
12.2%
16.0%
8.3%
1.4%
100.0% $
17,009,059
100.0% $
16,988,663
100.0% $
17,089,564
100.0% $
16,168,462
100.0% $
14,822,899
100.0%
116.
Direct and Overlapping Sales Tax Rates,
Last Ten Fiscal Years
Fiscal
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Home Rule
Sales Tax
0.50%
0.50%
0.50%
0.50%
0.50%
0.50%
0.50%
0.50%
0.50%
0.50%
Schedule 11
State of IL
Sales Tax
7.00%
7.00%
7.00%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
Sources: Illinois Department of Revenue
Note: Home rule sales tax of 0.5% was implemented January 1, 2001.
The State Sales Tax Rate is broken into 6.25 (IDOR), and 0.75% ( Regional
Transportation Authority).
117.
Schedule 12
Ratios of General Bonded Debt Outstanding,
Last Ten Fiscal Years
Fiscal
Year
Population
2001
28,834
Equalized
Assessed
Value
$
806,601,953
General
Obligation
Bonded Debt
$
Ratio of
General
Obligation
Bonded Debt
to Assessed
Value
4,400,000
0.55%
General
Obligation
Bonded Debt
Per Capita
$
152.60
2002
29,452
865,359,163
5,840,000
0.67%
198.29
2003
30,002
938,940,233
16,980,000
1.81%
565.96
2004
30,196
994,572,294
16,025,000
1.61%
530.70
2005
30,331
1,048,260,453
14,505,000
1.38%
478.22
2006
30,709
1,140,417,079
12,945,000
1.14%
421.54
2007
31,170
1,235,970,278
11,365,000
0.92%
364.61
2008
31,536
1,336,709,997
10,315,000
0.77%
327.09
2009
32,770
1,376,682,078
9,215,000
0.67%
281.20
2010
32,770
1,349,989,322
8,195,000
0.61%
250.08
Source: US Census Bureau, Office of the County Clerk of Lake County
118.
Schedule 13
Direct and Overlapping Governmental Activities Debt
As of April 30, 2010
Governmental Unit
Village of Gurnee
(000s)
Gross Debt
$
*Percentage of
Debt
Applicable
to Village
(000s)
Village's
Share of
Debt
8,195
100.00%
4,493
6.45%
290
24,360
18.53%
4,514
5,757
97.09%
5,589
Waukegan Park District2
27,142
1.06%
288
Warren Newport Library
11,755
60.55%
7,118
Lake County
36,770
4.75%
1,747
315,400
4.75%
14,982
7,783
5.02%
391
School District 60
55,486
3.00%
1,665
School District 50
70,810
49.77%
35,242
School District 56
13,910
60.87%
8,467
High School District 121
97,915
53.72%
52,600
North Shore Sanitary
Central Lake County Joint Action Water Agency 1
Gurnee Park District
Lake County Forest Preserve
Community College #532
Subtotal
Totals
$
$
8,195
671,581
132,891
679,776
$ 141,086
* Determined by the ratio of assessed value of property in the Village of Gurnee subject to taxation
by the Governmental Unit to the total assessed value of property of the Governmental Unit.
1. Includes total debt for County-wide operations
Source: Lake County Tax Extension Department.
119.
Schedule 14
Debt Margin Information
2000
Equalized Assessed Valuation
$
GO Bonded Debt - Gov
806,601,953
$
4,300,000
Ratio of GO Debt to EAV
4,400,000
865,359,163
$
5,840,000
938,940,233
$
16,980,000
994,572,294
$
1.38%
1,250,000
$
16,025,000
1,048,260,453
13,445,000
1.61%
1,435,000
$
2004
14,775,000
1.81%
1,635,000
$
2003
15,545,000
0.67%
100,000
$
2002
4,205,000
0.55%
GO Bonded Debt - Business
Total Debt
2001
1,060,000
$
14,505,000
Note: Under state law, as a homerule municipality, the Village has no legal limit on the amount of
outstanding general obligation debt it may issue; however, in 2005, the Village adopted a self-imposed limit
of 8.625% of EAV, consistent with the legal limit set forth for non-homerule communities in Illinois.
120.
Schedule 14
Legal Debt Margin Calculation for Fiscal Year 2009
2009 Equalized Assessed Value
Debt limit (8.625% of equalized assessed value)
Outstanding Debt as of April 30
Levy Year
2005
$
2006
1,140,417,079
$
12,080,000
$
11,365,000
1,336,709,997
$
$
10,315,000
1,376,682,078
$
0.61%
230,000
$
9,215,000
1,349,989,322
8,195,000
0.67%
450,000
1,349,989,322
116,436,579
8,195,000
2009
8,985,000
0.77%
660,000
$
2008
9,865,000
0.92%
865,000
12,945,000
1,235,970,278
10,705,000
1.14%
$
2007
$
$
8,195,000
121.
Schedule 15
Pledged-Revenue Coverage
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Gross
Revenue
$
5,882,229
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Operating
Expenses
$
4,295,670
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Net Revenue
Available
for Debt
Service
$
1,586,559
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Principal
$
125,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Interest
$
110,966
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total
$
235,966
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Coverage
6.72
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
The Village had no outstanding revenue bonds as of 4/30/02.
122.
Schedule 16
Demographic and Economic Statistics
Calendar
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Population
*
28,834
29,452
30,002
30,196
30,331
30,709
31,170
31,536
32,770
32,046
Personal
Income
(thousands
Per
Capita
Personal
Median
Education
Level in Years
School
Unemployment
of dollars)
Income (1)
Age (1)
of Schooling (1)
Enrollment
Rate
34.2
34.6
34.4
34.5
34.5
34.7
14.1
14.2
14.2
14.2
14.3
14.3
34.8
14.2
36.1
14.2
34.8
34.2
14.2
17%
11,497
11,899
12,476
12,679
12,844
12,922
13,248
13,760
14,035
13,597
2.4%
3.5%
4.7%
4.8%
5.1%
4.1%
3.5%
4.3%
5.7%
8.7%
$964,612
1,017,095
990,156
1,003,231
1,041,232
1,078,377
1,092,757
1,114,671
1,125,818
88,889
^
$33,454
34,534
33,003
33,224
34,329
35,116
35,058
35,346
35,876
37,323
-
Sources: U.S. Census Bureau, American Community Survey, Illinois Department of Employment Security, Woodland
School District #50, Gurnee School District #56, Warren Township High School District 121, Village of Gurnee.
Note: Population, median age, and education level information are based on surveys conducted during the last
quarter of the calendar year. Personal income information is a total for the year. School enrollment is the total of
Elementary and High School. Unemployment rate information is an adjusted yearly average.
(1)
Data not available at local level. Lake County data utilized.
* Sources:
2009 - Unemployment Rate, IL Dept of Employment Security. Other Data: Google city-data.com
^
Median Income. Illinois Median Income = $56,235, Gurnee Median Income, yr 2000 = $75,742
17% of Gurnee residents over age 25 have a graduate or professional degree; 47.8% have a
Bachelors Degree or higher; 94.1% have a High School Diploma or higher
123.
Schedule 17
Principal Employers
Calendar Year 2009
Percentage
of Total
Employees
Employment
Employer
Six Flags Inc
Woodland Consolidated School
Wal-Mart Stores Inc
County of Lake School District
Illinois Bone & Joint Inst
KeyLime Cove
Bass Pro Inc
Target Corp
Jewel Food Stores Inc
Heritage Inn of Gurnee Inc
Amusement Park
Elementary/Secondary School
Retail
School District
Medical
Amusement Park
Retail
Retail
Retail
Hotel
Sub Total Principal Employers
Estimated Total Number of Employees
3,500
850
500
422
400
350
350
250
250
220
18.03%
4.38%
2.58%
2.17%
2.06%
1.80%
1.80%
1.29%
1.29%
1.13%
7,092
36.53%
19,413
Source: Lake County Partners, IL Department of Employment Security (2009 Where Workers Work Report)
and Six Flags HR Dept.
Note: Information for Calendar Year 2000 not available.
124.
Schedule 18
Full-time-Equivalent Employees by Function/Program
2001
2002
2003
Full-time-Equivalent Employees as of April 30
2004
2005
2006
2007
2008
2009
2010
Function/Program
General government
Administration
Planning / Building
Engineering
Public Safety
Fire
Police
Communications
Public Works
Streets
Vehicle Maintenance
Utility
Total
11.00
10.50
8.25
11.00
10.50
9.00
12.00
10.50
8.75
12.00
10.25
8.75
12.75
11.25
9.75
12.75
11.25
9.75
13.00
11.25
9.75
13.00
12.25
8.75
13.00
12.25
8.75
12.50
9.50
7.50
48.00
70.00
13.00
48.00
75.00
13.00
48.00
76.00
13.00
52.00
77.00
13.00
56.00
78.00
13.00
56.00
82.50
13.00
54.25
82.50
13.00
57.25
83.50
13.00
57.25
83.50
13.00
54.00
80.00
13.50
18.50
2.00
13.50
18.50
3.00
13.50
18.50
3.00
13.25
18.50
3.00
13.25
21.50
3.00
13.25
21.50
3.00
13.50
21.50
3.00
14.50
21.50
3.00
14.50
21.50
3.00
14.50
17.50
4.00
13.50
194.75
201.50
203.00
207.75
218.50
223.25
222.75
226.75
226.75
212.00
Source: Finance Department, Budget Book
Notes: A full-time employee is scheduled to work a standard 2,080 hours per year, or 2,756 for sworn fire personnel
(including vacation and sick leave). Full-time-equivalent employment is calculated by dividing total labor hours by
standard.
125.
Schedule 19
Operating Indicators by Function/Program
2001
Fiscal Year*
2002
2003
2004
Function/Program
General government
General business licenses issued
(a)
Number of Commercial Units Constructed
Value of Commercial Construction
Number of Residential Units Constructed
Value of Residential Construction
Public Safety
911 Calls*
Police Responses*
(b)
Physical arrests*
Traffic Citations Written *
Parking violations*
Fire Responses*
(c)
Emergency Medical Responses*
Fire Department Mutual Aid Responses*
Streets & Highways
Miles of streets resurfaced
Inches of snowfall
Tons of salt used in snow plowing
Number of parkway trees planted
Utility
Number of water main breaks*
Total water consumption (millions of gallons)
Number of Water Meters Replaced
Average daily consumption (millions of gallons)
$
$
N/A
14
9,515,588 $
165
26,006,777 $
N/A
11
19,134,070 $
185
29,268,087 $
N/A
6
7,553,049 $
98
16,554,268 $
N/A
11
15,475,592
40
6,477,542
14,447
21,616
25,528
29,702
39,230
2,336
6,802
1,116
42,608
3,039
7,462
1,243
45,921
2,303
8,646
1,105
44,502
1,310
7,295
807
4,849
2,964
436
4,858
2,996
448
5,125
3,417
455
5,075
3,135
425
5.8
55.0
3,870
112
3.4
20.0
2,158
88
3.0
25.0
980
61
2.9
30.5
1,978
173
30
1,360
3.7
15
1,351
3.7
28
1,444
4.0
18
1,381
101
3.8
Sources: Various city departments.
Notes:
a The Village implemented a general business license requirement in fiscal year 2007; no such requirement existed prior.
b Police responses include contact through 9-1-1, non-emergency lines, walk-up window traffic, self initiated by officer
c Fire responses include all emergency responses such as fires, false alarms, emergency medical, auto accidents, and mutual aids.
* These indicators are reported on a calendar year.
N/A - not available
126.
Schedule 19
2005
$
$
2006
Fiscal Year*
2007
2008
2009
2010
N/A
6
40,261,542 $
70
14,914,013 $
N/A
26
26,209,744 $
81
29,317,437 $
759
10
71,630,326 $
87
27,676,605 $
1,173
6
20,923,594 $
47
16,393,961 $
1,162
8
2,823,893 $
3
971,803 $
1,024
4
1,613,910
2
715,000
26,595
23,210
23,497
28,395
24,636
N/A
45,925
1,972
8,368
1,174
46,245
2,279
9,689
1,174
47,458
2,110
8,201
1,121
47,312
2,205
8,111
837
50,283
2,006
10,309
1,177
N/A
N/A
N/A
N/A
5,420
3,137
441
5,288
3,284
489
5,636
3,482
506
5,742
3,648
711
5,294
3,438
432
N/A
N/A
N/A
2.8
43.0
3,564
161
3.5
30.5
2,625
217
5.5
42.5
4,277
87
5.4
81.0
7,250
180
4.9
76.3
2,576
200
4.0
48.5
2,318
185
20
1,449
70
4.0
29
1,520
423
4.2
20
1,408
451
3.9
24
1,444
396
4.0
N/A
1,488
354
4.1
N/A
1,234
244
3.4
127.
Schedule 20
Capital Asset Statistics by Function/Program
2001
2002
Fiscal Year Ended April 30
2004
2005
2006
2007
2003
2008
2009
2010
Function/Program
Municipal Buildings
Police Station / Dispatch Center
Fire Stations
Public Works Facilities
Village Hall
Streets & Highways
Miles of Streets
Village
County
US & State
Private
Number of Street Lights
Village
ComEd
County
Private
State
Utility
Miles of watermain
Miles of Sanitary Sewers
Miles of Storm Sewers- Village
Miles of Storm Sewers - Other
Number of Sanitary force mains
Facilities not included in the reporting entity
Number of elementary schools
Number of high schools
Number of libraries
Park District acres
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
1
2
1
1
105
N/A
N/A
N/A
105
N/A
N/A
N/A
114
17
31
24
114
17
31
24
114
17
31
24
121
17
33
24
121
17
33
24
121
17
33
24
118
17
33
24
118
17
33
24
1,520
N/A
N/A
N/A
N/A
1,542
N/A
N/A
N/A
N/A
1,551
466
19
19
N/A
1,551
466
19
19
N/A
1,551
466
19
19
N/A
1,677
466
19
19
34
1,688
466
25
19
34
1,678
462
25
19
34
1678
460
25
19
34
1678
460
25
19
34
167
133
114
N/A
N/A
167
133
117
N/A
N/A
167
133
117
N/A
4
167
133
117
N/A
4
167
133
117
N/A
4
167
139
127
20
5
175
139
129
22
5
181
140
130
25
5
182
140
135
26
5
182
140
135
26
5
8
2
1
256
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
8
2
1
322
Sources: Various city departments.
128.

Village of Gurnee, Illinois

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