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POPULAR
ANNUAL
FINANCIAL
REPORT
847-742-5780
10 N Water Street, South Elgin, IL 60177
Fiscal year ending April 30, 2021
Village of South Elgin, Illinois
Thank you for your interest in the financial condi on of the Village of
South Elgin. The Popular Annual Financial Report (PAFR) is intended to
provide a snapshot of the financial statements of the Village for the
fiscal year ending April 30, 2021.
As you read through the following pages, you will learn about the
organiza on of the Village’s financial opera ons by fund (page 3). In
addi on, the report highlights the Village’s net posi on (page 4), which
has remained rela vely consistent over the last 10 years. The Village
con nues to meet its healthy fund balance policy for all governmental
funds (page 5). The Village receives 48% of its governmental revenue
through sales tax and property tax, however, the Village’s property tax
represents only 7% of the typical property tax bill (page 6). The Village
spends its governmental funds on a variety of ac vi es, with 70% going
to Public Safety and Highways & Streets (page 7). The Village’s
proprietary funds for Refuse and Water/Sewer operate as a healthy
business, separate from the governmental funds (page 8). The Village’s
capital assets total $116.5 million, with $52.8 million of Bridges, Streets
and Sewers (page 8). The Village con nues to u lize a small amount of
debt for capital projects (page 9). This report is meant to briefly
summarize the Village’s financial statements.
The primary focus of the PAFR are the Governmental and Proprietary
funds and the Net Posi on. As a summary document, it does not comply
with generally accepted accoun ng principles (GAAP). The Village also
publishes a much more detailed, audited and GAAP compliant,
Comprehensive Annual Financial Report on the Village's website-
www.southelgin.com. The Village is pleased to announce receipt of
GFOA’s (Government Finance Officer Associa on) award for Outstanding
Achievement in Popular Repor ng for FY20. If you have any ques ons or
there is something you would like to see included for next year, please
contact Megan Golden, Director of Administra ve Services or Sylvia
Olsen, Accoun ng Manager at 847-742-5780. Addi onal copies of this
PAFR are available at , at Village Hall and at www.southelgin.com/PAFR
various Village events.
Table of Contents
Fund Structure
Net Position
Governmental Funds
Governmental Revenue
Governmental Expenses
Proprietary Funds
Capital Assets
Debt
3
4
5
6
7
8
8
9
Popular Annual Financial Report2021Village of South Elgin, Illinois
2
With high-performing schools, convenient shopping, friendly neighborhoods and an array
of light industry, South Elgin is a thriving village of 23,865 residents.
One doesn't need to travel far to see exci ng growth in South Elgin. From single-family
and townhome residences to luxury apartments and over-55 communi es, the Village
buzzes with new construc on. Along the way, it would be impossible to miss the 20 public
parks, miles of bike trails and more than 200 acres of protected natural areas. The Village
Center boasts the fes val-style park at Panton Mill, the award-winning SEBA Park, scenic
Fox River, community fes vals and room for more business and residen al growth.
South Elgin at a Glance
The Village of
South Elgin is
located along the
Fox River, 40 miles
west of Chicago in
Kane County, IL.
GOVERNMENTAL FUNDS: These funds are used to account for all or
most of the Village’s general ac vi es, including the collec on and
disbursement of earmarked monies, the acquisi on or construc on of
general capital assets and the servicing of general long-term debt.
Governmental funds include the General, Debt Service, Capital Projects,
Infrastructure Improvements, and Special Revenue Funds. Governmental
Funds are also referred to as Governmental Ac vi es.
The General Fund is used to account for resources tradi onally
associated with governments, which are not required to be accounted
for in another fund. For the purpose of financial repor ng, the General
Fund also includes expenses related to the Village’s Tax Increment
Financing (TIF) Districts. TIF is used for redevelopment within par cular
areas. Developer obliga ons collected on behalf of other taxing districts
as part of new develppment are also included in the General Fund for
financial repor ng only.
The Debt Service Fund accounts for the accumula on of resources for
revenue and expenditures related to principal and interest of general
long- term debt. This revenue ensures that all principal and interest
payments are made in-full and on-schedule.
The Capital Projects Fund accounts for revenue and expenditures
rela ng to major improvements including construc on of general capital
improvements and the purchase of capital equipment, including
vehicles. Infrastructure Improvements Fund accounts for the
accumula on of resources from State of Illinois tax based on the
consump on of motor fuel, on the opera on of motor vehicles upon
public highways and on the opera on of recrea on water cra upon the
waters of the State (MFT); developer dona ons received for park and
recrea onal purposes, police protec on, administra ve facili es and
street maintenance (Developer Contribu ons); and major
improvements, including construc on, of the Village’s system of parks
(Parks Improvement Program). Together the Infrastructure
Improvements Fund and the Capital Projects Fund are o en referred to
as the Capital Projects Funds.
PROPRIETARY FUNDS/ENTERPRISE FUND: These funds account for
revenue restricted for the disposal of residen al municipal solid waste
(Refuse Fund) as well as accoun ng for the accumula on of resources
for maintenance, replacement and opera on of the Village’s water
supply system (Water Fund.) These funds are also referred to as Business
Type Ac vi es.
FIDUCIARY FUNDS: These funds are used to report assets held in a
trustee or agency capacity for others and do not support government
programs (Police Pension Fund).
Fund Structure
Like other local governments,
the Village uses fund
accoun ng to ensure and
demonstrate compliance with
finance-related legal
requirements. A fund is a group
of related accounts that is used
to maintain control over
resources that have been
segregated for specific ac vi es
or objec ves. All of the funds of
South Elgin are divided into
three categories:
. Governmental
. Proprietary/Enterprise
. Fiduciary
3
Popular Annual Financial Report2021Village of South Elgin, Illinois
Net Position
When looking at the Village’s
financial condi on, focus is
placed on net posi on: assets
minus liabili es. Total net
posi on represents the
amount the Village owns
compared to the amount
owed. Net investment in
Capital Assets represents the
Village’s investment in capital
less deprecia on and debt.
Restricted net posi on
represents resources subject to
external imposed restric ons.
Unrestricted net posi on
represents resources available
to provide service to residents,
if no other resources or
revenues are available. Over
me, net posi on may serve as
a useful indicator of a
government’s financial
posi on.
Fiscal Year
Total Net Posi on (in Millions of Dollars)
Current Assets: Assets that one can reasonably expect to be converted to
cash or consume within one year.
Capital Assets: Long-term investments in land, buildings, equipment,
improvements, infrastructure and construc on in progress.
Deferred Ou lows: A consump on of net assets by the government that is
applicable to a future repor ng period.
Current Liabili es: Debts that can typically be paid off in one year or less.
Other Liabili es: Noncurrent debts i.e. net pension liability and bonds
payable.
Net Posi on (in Millions)
Current and Other Assets
Capital Assets
Total Assets
Deferred Ou lows
Total Assets/Ou lows
Current Liabili es
Other Liabili es
Total Liabili es
Deferred Inflows
Total Liabili es/Inflows
Net Posi on
Net Investment in
Capital Assets
Restricted
Unrestricted
Total Net Posi on
GovernmentalAc vi es Business-typeAc vi es Total
32.2
81.2
113.4
2.1
115.5
2.6
20.3
22.9
10.8
33.7
2021
73.2
8.4
0.2
81.8
10.5
35.3
45.8
1.9
47.7
2.0
18.9
20.9
0.4
21.3
2021
17.4
0.6
8.4
26.4
42.7
116.5
159.2
4.0
163.2
4.6
39.2
43.8
11.2
55.0
2021
90.6
9.0
8.6
108.2
4
NOTE: Net posi on increased by $7.2 million, which was largely
due to investments in infrastructure capital assets.
Popular Annual Financial Report2021Village of South Elgin, Illinois
90
92
94
96
98
100
102
104
106
108
110
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
99.1 100.3
102.6 103.1
107.4
96.9 98.5 99.7
102.3
101
108.2
44.8
110.5
155.3
5.6
160.9
6.4
46.5
52.9
7.0
59.9
2020
83.2
8.8
9.0
101.0
11.8
34.0
45.8
2.1
47.9
2.0
20.0
22.0
0.2
22.2
2020
15.5
0.4
9.8
25.7
33.0
76.5
109.5
3.5
113.0
4.4
26.5
30.9
6.8
37.7
2020
67.7
8.4
(0.8)
75.3
Governmental Funds
Governmental fund
balance is simply the
difference between
assets and liabili es.
This balance is
divided into four
components:
nonspendable,
restricted, assigned
and unassigned for the
purpose of indica ng both
constraints on how resources
of the fund can be spent and
the sources of those
constraints.
Fiscal Year
Unassigned General Fund Balance
(in Millions of Dollars)
Total Fund Balance: $24,293,813
General Fund
(includes non-major SSA fund balance)
$14,345,150
General Fund
59%
Debt Service
$657,275
Capital Projects
$6,280,905
Infrastructure
Improvements
$3,010,483
Debt Service
3%
Capital Projects
26%
Infrastructure
Improvements 12%
The unassigned fund balance of
the General Fund are amounts
available for any purpose. At the
end of fiscal year 2021, this
balance was $14.2 million and
remains in excess of the 25-50%
funding level u lized by the
Village Board available for
unforeseen revenue shor alls,
cutbacks or ming issues with
State revenues, and/or major
emergency expenditures. Having
a strong fund balance is cri cal to
maintaining quality services
during economic downturns and
put the Village in strong posi on
to weather the COVID-19
pandemic.
5
Popular Annual Financial Report2021Village of South Elgin, Illinois
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
10.4 11.1 12 12.1 12.9
10.2
11.7 12.6 13.7 14.2
Revenues by Source
The chart exhibits the major
revenue sources of the
Village of South Elgin
governmental funds.
It depicts clearly the
reliance of property
and sales taxes to
fund governmental
ac vi es. Under the
Village Board's leadership
and with the coopera on
of the Planning and Zoning
Commission, and the
Community Development
department, the Village
con nues to focus their
a en ons on commercial and
residen al growth, either on
vacant land parcels, or
renova on of exis ng structures.
Recent developments of
emphasis include: South Pointe
subdivision, Park Pointe
townhomes and build-outs
along Randall Road.
1 2 3 4 5
6
7
School Districts 69.5%1
Fire District 10.3%2
Village 7%3
County 5.7%4
Library District 5.2%5
Township 2%6
Water Reclama on District 0.3%7
A representa on of how the average property tax
dollars are distributed to various taxing bodies.
The Village only received 7.0 cents of every dollar
paid in property taxes to support Village
opera ons for fiscal year ending in 2021.
At ending FY21 the full effects of
COVID-19 revenue reduc ons was
felt by the Village. This reduc on
was most notable in Interest
Income and Charges for Services.
However the CARES Act funding
offset these reduc ons with
increased Grant revenue. Notably,
Capital Grants rebounded due to
large construc on projects that
paid developer dona ons in FY21.
Property Tax 24%
Property Tax Alloca on
Sales Tax 24%
Charges for Services 8%
Illinois Income Tax
10%
Capital
Grants
16%
Other 2%
Opera ng Grants
7%
Other Taxes 9%
6
Popular Annual Financial Report2021Village of South Elgin, Illinois
0
1
2
3
4
5
6
Revenues by Source - Governmental Ac vi es (in millions)
2021 2020 2019
Total General Revenues
2021: $24.1
2020: $19.4
2019: $22.7
Expenses by Source
The chart graphically
depicts the expenses
by source for the
Village of South Elgin
governmental funds.
Slightly under three-
quarters of the
Village expenses
involve Public Safety
and Highway and
Streets projects, with the
remaining split among
Economic Development,
Culture and Recrea on and
General Government (plus a
small percentage toward
Interest).
Highway and Streets 34%
Public Safety 36%
General
Government
10%Culture
and Recrea on 9%
Economic Development
9%
Interest on
Long-Term Debt 2%
7
Expenses by Source - Governmental Ac vi es
(in millions)
Expenses by Source show reduced expenses in nearly all sources
due to the efforts of the COVID-19 pandemic. One- me projects
were reduced or delayed, and filling open staffing posi ons was
delayed. One major excep on to this was the Panton Mill Park
improvement project, most notably seen in the increase in Culture
and Recrea on expenses.
Popular Annual Financial Report2021Village of South Elgin, Illinois
0
1
2
3
4
5
6
7
8
9
Public Safety Highway and
Streets General
Government Culture & Rec Economic
Development Interest
2021 2020 2019
Total Expenses
2021: $19.6
2020: $21.6
2019: $20.4
Waterworks
and Sewerage
Opera ng Expenses and Opera ng Revenues -
Business Type Ac vi es (in millions)
Garbage (Refuse)
Opera ng Expenses
Opera ng Revenues
Proprietary Funds
Actual revenues for the Village’s
business-type ac vi es exceeded
expenses by $1.17 million. This
was largely the result of fees
associated with new development,
and occurred even though the
Village had two u lity rate credits
for all customers in FY21.
Summary of
Capital Assets
Balances at April 30, 2021
The Village of South Elgin's
investments in capital assets for
its governmental and business
type ac vi es as of April 30,
2021 was $116.5 million (net of
accumulated deprecia on.)
This investment in capital assets
includes land; buildings and
improvements; vehicles; land
improvements; machinery and
equipment; park facili es;
roads; sidewalks; and bridges.
Village Wide Capital Assets by Category (in millions)
La
n
d
Bu
i
l
d
i
n
g
s
Im
p
r
o
v
e
m
e
n
ts
Ot
h
e
r
t
h
a
n
b
l
d
g
s
Au
t
om
o
v
e/
Ot
h
e
r
E
qu
i
p
m
e
n
t
Br
i
d
g
e
s
,
S
t
r
e
e
ts
an
d
S
e
w
er
s
Wat
e
r
a
n
d
Se
wer
S
ys
tem
Fiscal year ending 2021 major addi ons to capital assets:
Acquis on of former WeeDee’s, Fire Sta on and Lions Club $0.87M
Panton Mill Park Shelter, Stage and Comfort Sta on $0.94M
Public Improvements at Springs of South Elgin and Sagebrook,
Kingsport neighborhood resurfacing $3.93M
Panton Mill Park Renova on $3.39M
Vehicle & Equipment Replacements - PW and PD $0.21M
Phase II of Route 31 Water Main Reloca on Project $2.88M
Total $12.21M
8
Popular Annual Financial Report2021Village of South Elgin, Illinois
0
1
2
3
4
5
6
4.83
5.83
2.16 2.33
0
10
20
30
40
50
60
8.4 11.3
7.2
1.8
52.8
33.735.0
Debt Obligations
Bond ra ngs are a measure of a
municipality’s credit risk and
ability to pay debt. The Village’s
bond ra ng of Aa2 established
by Moody’s Investors Service
reflects the Village’s ability to
fulfill its debt obliga ons on an
annual basis, and this puts the
Village in a strong posi on to
obtain debt at low interest rates
if needed in the future.
Debt Descrip on
G.O. Bonds
G.O. Bonds/ARS
Tax Increment Revenue Note
Loan Agreements
19.4
3.1
1.4
3.93.7
20.4
3.3
1.6
2021 2020
About the Village of South Elgin
Population: 2021 estimate 23,865
Median age: 38
Unemployment rate: 6.4%
Employees per 1,000 residents: 3.85
The Village of South Elgin was
incorporated on April 20, 1897
for the purpose of
administering the public affairs
of its inhabitants for the
common good. Its affairs are
directed and managed by the
Village President and a six-
member Board of Trustees.
Village President: Steven Ward
Village Clerk: Margaret M Gray
Trustees: Jennifer Barconi, Lisa
Guess, Michael Kolodziej,
Gregory Lieser, Sco Richmond
(and one vacancy).
$726,132,145
Total Assessed Property Valua on
Miles of street: 87
Streetlights: 2,032
9
Total $27.6 $29.2
Village Officials
$99,451
Median Family Income
Fire Hydrants: 974
Miles of Water Main: 77
8,176
Total Housing Units
Median home value: $235,500
Median household size: 3.04
Top 10 Property Tax Payers
1. Continental 368 Fund
2. Lake Street Plaza
3. PMAT SEC
4. EIG Elgin
5. Target Corporation
6. BMC Marc Randall
7. CJR Enterprises
8. Pure Incontinental
9. Randall/McDonald Partners
10. AAA Storage Inc
Outstanding Debt (in millions)
At year-end, the Village of South Elgin had total outstanding debt of $27.6
million, as compared to $29.2 million the previous year.
Popular Annual Financial Report2021Village of South Elgin, Illinois