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HomeMy WebLinkAboutVillage of Orland Park - Public Financial ReportA VILLAGE OF ORLAND PARK FISCAL YEAR ENDING DECEMBER 31,2020 POPULAR ANNUAL FINANCIAL REPORT B Message to Our Readers Presented here is the Village of Orland Park’s Popular Annual Financial Report (PAFR) for the fiscal year ending December 31, 2020. The purpose of the PAFR is to provide the community with a simplified presentation of the Village’s financial activities and position, in a transparent and easily understood format. This report presents summarized financial information from the Village’s Comprehensive Annual Financial Report, which is available on the Village’s website at orlandpark. org/financialreports. The Comprehensive Annual Financial Report is a more thorough, independently audited financial presentation prepared in accordance with generally accepted accounting principles (GAAP). The Village received an unmodified opinion on its Comprehensive Annual Financial Report, meaning that the financial statements fairly present the financial position and operations of the Village. The Popular Annual Financial Report is not required to present the same level of detail as the Comprehensive Annual Financial Report. Financial data for the primary government is included in the PAFR, mainly focusing on the Village’s governmental activities. The Village has component units (such as Historical Museum Foundation, E-911 fund, etc.) whose financial activities are included in the Comprehensive Annual Financial Report, but they are not part of the financial information presented here. Award for Presented to Village of Orland Park Executive Director/CEO For its Annual Financial Reportfor the Fiscal Year Ended December 31, 2019 Financial ReportingPopular AnnualAchievement inOutstanding Text38:Illinois Government Finance Officers Association The Village has applied for and received the Government Finance Officers Association (GFOA) Award for Outstanding Achievement in Popular Annual Financial Reporting for the past 4 years. The award shown is for last year’s report. GFOA Award 1 ELECTED OFFICIALS Keith Pekau Mayor Patrick O’Sullivan Village Clerk TRUSTEES William Healy Sean Kampas Joni Radarszewski Cynthia Katsenes Brian Riordan Michael Milani VILLAGE STAFF Village Manager Assistant Village Manager Chief of Police Director of Development Services Director of Engineering Programs & Services Finance Director Human Resources Director Information Technology Director Public Works Director Director of Recreations & Parks George Koczwara Greg Summers Joe Mitchell Ed Lelo Khurshid Hoda Kevin Wachtel Denise Maiolo David Buwick Joel Van Essen Ray Piattoni The Village of Orland Park| Village Organization The Village of Orland Park| Table of Contents 1 ABOUT THE VILLAGE OF ORLAND PARK EXPENDITURES - WHERE THE MONEY GOES 3 4 5 6 8 10 ORLAND PARK BY THE NUMBERS 11 12 WHERE THE MONEY COMES FROM 13 14 15 16 18 19 20 CAPITAL INVESTMENTS -WHAT WE OWN 21 22 LONG TERM DEBT - WHAT WE OWE 23 24 25 VILLAGE OFFICIALS & STAFF MESSAGE FROM THE FINANCIAL DIRECTOR VILLAGE ORGANIZATIONAL CHART ORLAND PARK PROFILE ALLOCADES, LOCATION & DEMOGRAPHIC WHAT WE DO COMMUNITY DEVELOPMENT ORLAND PARK BY THE NUMBERS 2020 BALANCE SHEET GOVERNMENT FUNDS & REVENUE TRENDS REVENUE BY SOURCE BREAKDOWN OF TAXES PROPERTY TAXES LAND USE PERCENTAGE EXPENSES BY FUNCTION BUDGETED EMPLOYEES & EXPENDITURE TREND FIVE YEAR CAPITAL INVESTMENT & CAPITAL ASSETS BY CATEGORY REHABILITATION & CONSTRUCTION VILLAGE DEBT 2020 SIGNIFICANT DEBT ACTIVITY LONG TERM DEBT VillageOrlandPk villageoforlandpark VillageofOrlandParkVillageofOrlandParkVillageOrlandPkvillageoforlandparkVillageofOrlandParkVillageofOrlandPark VillageOrlandPk villageoforlandpark VillageofOrlandParkVillageofOrlandParkVillageOrlandPkvillageoforlandparkVillageofOrlandParkVillageofOrlandPark 26 CONTACT INFORMATION 3 It is my pleasure to present the Popular Annual Financial Report (PAFR) to the Orland Park community. This financial report highlights important financial information for the Village of Orland Park and provides a high level overview of the Village’s financial condition. This PAFR is made available in a format that allows all stakeholders an understanding of the Village finances, which is a hallmark of transparency and accountability. The Village of Orland Park offers a wide variety of services to the community, including Police, Recreation & Parks, Public Works, and Development Services. We have many parks, trails, and recreational opportunities throughout the community and offer several events throughout the year. In addition, Orland Park serves as a premiere retail hub as the tenth highest sales tax generating community in Illinois. The Village provides critical infrastructure such as road and sidewalks, water and sewer service, and storm water management. Providing and maintaining these programs and infrastructure requires investment of tax dollars and user fees, which must be accounted for and reported. You can find our complete Comprehensive Annual Financial Report on the Village’s website (www.orlandpark.org). The Comprehensive Annual Financial Report includes more detailed financial statements, footnotes, supplemental information, and statistics. Please contact me at kwachtel@orlandpark.org if you have any questions or to learn more. Sincerely, Kevin Wachtel | Finance Director Leadership | Message from the Financial Director 4 The Village of Orland Park| Village Organization Residents of Orland Park Village President/Mayor Village Board of Trustees Village Clerk Assistant Village Manager Public Works Director Development Services Director Information Technology Director Engineering Director Chief of Police Recreations & Parks Director Human Resources Director Finance Director Elected Officials Appointed Members Village Executive Staff Legend: Boards & Commissions Village Manager 5 Located 25 miles southwest of downtown Chicago, the Village has grown into an upscale suburban community of approximately 58,000 residents, with full build-out population expected to peak at approximately 75,000. The Village utilizes the council-manager form of government and is directed by a board of six trustees and a Village president. The council- manager form of government has been adopted by many local communities with a population of more than 25,000 and governs more than 3,000 cities and municipalities in the United States. The Board of Trustees constitutes the primary policy making body of the Village. The Board determines Village policy, approves the annual budget, levies taxes, authorizes the payment of bills, approves bids and contracts involving Village business, and adopts Village ordinances. Since 1984, when home rule status was obtained, a Village Manager has been appointed as the Chief Administrative Officer of the Village. The Village Manager is directly responsible to the Board of Trustees for the proper administration of all day-to-day affairs of the Village. He is vested with the enforcement of all Village laws and ordinances, and has the authority to appoint and direct all employees. The Village encourages communication with its residents. A wide range of information is available online, at www.orlandpark.org, such as meeting dates and times, community events, and more. The Village also utilizes various social media platforms to communicate with its residents. ABOUT THE VILLAGE The Village of Orland Park| Orland Park Profile VillageOrlandPk villageoforlandpark VillageofOrlandParkVillageofOrlandParkVillageOrlandPkvillageoforlandparkVillageofOrlandParkVillageofOrlandParkVillageOrlandPkvillageoforlandparkVillageofOrlandParkVillageofOrlandParkVillageOrlandPkvillageoforlandparkVillageofOrlandParkVillageofOrlandPark 6 ORLAND PARK AND TRINITY SERVICES AWARDED A USDOJ GRANT FOR MENTAL HEALTH The three-year grant has allowed the Orland Park Police Department, in partnership with Trinity Services, to develop and implement a regional cross-system collaboration program that will enhance the outcomes for persons with mental illness or co-occurring mental illness and substance abuse who come in contact with law enforcement. This awarded project has specifically targeted recidivism, the use of a diversionary program in lieu of an arrest and train approximately 300 law enforcement officers in mental health first aid and drug abuse awareness. GFOA TRIPLE CROWN FOR 2019 - CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING, POPULAR ANNUAL FINANCIAL REPORT AWARD, AND DISTINGUISHED BUDGET PRESENTATION AWARDS The Village of Orland Park is one of only 24 governments in Illinois, and 231 governments in the United States and Canada, to achieve the GFOA’s Triple Crown of Financial Reporting Awards. The Certificate for Excellence in Financial Reporting was awarded to the Village for its fiscal year 2019 Comprehensive Annual Financial Report. This award is granted in recognition of transparency and full disclosure that goes beyond the minimum requirements of generally accepted accounting principles. The Village has received this award for 33 consecutive years. We have submitted our 2020 Comprehensive Annual Financial Report for consideration of this prestigious award, and we are confident it continues to meet the program’s high standards. Since fiscal year 2006, the Finance Department has been awarded the GFOA Distinguished Budget Presentation Award. To qualify for this award, the Village’s budget document is judged to be outstanding as a financial policy document, operations guide and communications device. The Village has prepared this Popular Annual Financial Report for the past 5 years, receiving recognition for each of our prior reports, which focuses on providing financial information in a transparent manner that can be understood by non-accountants. 2020 | Accolades 7 The Orland Park Police Department received first place honors in the Illinois Association of Chiefs of Police Traffic Safety Challenge Champions Class. Departments only compete in the Champions Class after previously winning a Traffic Safety Challenge. The winning presentation detailed efforts to promote safety belt use, correctly installing child safety seats, speed enforcement, impaired driving enforcement and distracted driving. 2020 | Accolades, Location and Demographics ILLINOIS TRAFFIC SAFETY CHALLENGE CHAMPIONS CLASS AWARD POPULATION (ACS) 58,703 MEDIAN AGE 43 MEDIAN HOUSEHOLD INCOME $90,345 PER CAPITA INCOME $43,940 MEDIAN HOME VALUE $287,700 HOMEOWNERSHIP RATE 87.2% UNEMPLOYMENT RATE 10.9% BACHELOR’S DEGREE OR HIGHER 44.4% QUICK FACTS The Village of Orland Park received the 2020 StarGuard award in recognition of the Centennial Park Aquatic Center’s (CPAC) efforts as above the industry standard, reflecting a proactive approach to aquatic risk prevention. CPAC also earned a five-star safety rating, the highest rating possible. 2020 STARGUARD ELITE AWARD LOCATION The Village of Orland Park| What We Do PUBLIC SAFETY The Orland Park Police Department is committed to responding to the needs of and establishing a working relationship with the Orland Park community. Events such as National Night Out Against Crime, Cook Out with the Cops, Citizens Police Academy and Coffee With the Cops work to strengthen community relationships. Orland Park had the lowest number of index crimes (murder, sex assault, robbery, aggravated assault and battery, burglary, theft, motor vehicle theft, arson and human trafficking) since 1994. In addition, according to the FBI 2019 annual statistics for Crime in the United States, Orland Park had the second lowest number of violent crimes (26) of any community over 50,000 in Illinois. PUBLIC WORKS Repair and replacement of aging infrastructure continued to be a Village priority in 2020. The Village street maintenance program spent $8.2 million to replace, repair and maintain aging streets, curbs, gutters and sidewalks. In addition, the village continues to prioritize the maintenance of the aging water main system. In 2020, over $4.4 million was spent on replacement and rehabilitation of existing water main throughout the village. The Village holds many community events throughout the year, which are administered by the Recreation Department with logistical support provided by the Parks Division. These events include the Taste of Orland, Turkey Trot, free concerts at Centennial Park West and Crescent Park, a Ticketed Concert at Centennial Park, Market at the Park, Easter Egg Hunt, Brewfest, Pumpkin Party and Winter Festival. Staff also supports many non-profit organizations and community outreach programs. The Recreation & Parks Department has consistently provided access to premier recreation and leisure locations and amenities that reflect the changing needs of a growing diverse population. 9 RECREATION & PARKS 4,500 park trees 95-acre, stocked lake 55 playgrounds 25K sq. ft. outdoor water park Outdoorice rink 90K sq. ft. sports recreation and fitness center 78K sq. ft. health and fitness center 63 miles of walking & bicycle paths Over 100 athletic fields and courts The Village’s Recreation & Parks Departments works to support and maintain more than 800 acres of public space including 64 park properties, which include: 10 In 2020, the Village continued to experience growth in both residential and commercial development. The Development Services Department issued: COMMUNITY DEVELOPMENT MAJOR DEVELOPMENT PROJECTS INCLUDED: Single Family Home: $9,023,360 21 671 5 PERMITS ISSUED 2,557 Villas of Cobblestone: 18 Dwelling Units | 9 Duplex Building Orland Ridge: 57.72-Acre Mixed-Use Development 104 Attached Dwelling Units | 190 Attached Townhomes Sertoma Centre: 3-Story | 16 Dwelling Unit Multi-Family Building Commercial Remodel & Additions: $22,622,907 Other Residential Related: $24,161,448 Townhome: $35,470,000 New Commercial: $10,350,000 $ = valuation$ = VALUATION LEGEND: 281 Townhomes at Collete Highlands: 60 Unit Townhome Development 10 Megan Nicole Ridge: 9 Single-Family Home Lots Orland Ridge Townhomes 11 The Village of Orland Park| Orland Park By The Numbers Government financial statements are designed to provide readers with a broad overview of the Village’s finances, consistent with a private-sector business presentation. Government financial statements distinguish functions of the Village into government activities and business type activities. Government activities are ones that are principally supported by taxes and intergovernmental revenues. Business type activities are intended to recover all or a significant portion of associated costs through user fees and charges, similar to private business. The Village’s governmental activities include administration & finance, public safety, development & engineering services, public works and recreation & parks. Business-type activities of the Village include the water and sewerage system and the commuter parking lots. Government financial statements are provided by fund. 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. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds (business type activities as listed above) and fiduciary funds (such as trust funds). A budgetary system is maintained for all funds and serves as the foundation of the Village’s financial planning and control. The budget for fiscal year 2020 was developed using a “target budget” process. Target budgeting adheres to the premise that the Village provides certain basic services and attempts to “target funds” for these basic service levels. Beyond these basic service levels, additional services are considered discretionary and are evaluated, prioritized, and matched against available revenues. Patterns of service can therefore be modified to meet the changing needs of the Village without disrupting basic services. 12 The Balance Sheet presents information on what the Village’s owns (assets) and owes (liabilities) as of a specific moment in time. The difference between total assets and liabilities are reported as the net position, which represents the Village’s investment in the assets it uses to provide services to the community. Over time, increases or decreases in the Village’s net position may serve as a useful indicator of whether the financial position of the Village is improving, deteriorating or remaining constant. The Village’s net position for Government Activities as of December 31, 2020 increased 11.59% to $70,434,117 over the net position as of December 31, 2019. The Village’s net position for Business Activities as of December 31, 2020 increased 1.87% to $165,666,731 over the net position as of December 31, 2019. The Village of Orland Park| 2020 Balance Sheet GOVERNMENTAL ACTIVITIES BALANCE SHEET BUSINESS ACTIVITIES BALANCE SHEET 2020 2019 Change Assets $179,969,767 $175,415,735 $4,554,032 Liabilities $14,303,036 $12,792,626 $1,510,410 Net Fund Balance $165,666,731 $162,623,109 $3,043,622 2020 2019 Change Assets $142,135,900 $131,321,863 $10,814,037 Liabilities $71,701,783 $68,205,121 $3,496,662 Net Fund Balance $70,434,117 $63,116,742 $7,317,375 Government Revenue is money received from taxes and non-tax sources to enable it to undertake government expenditures (amounts spent). The primary revenues of the Village of Orland Park included taxes, licenses & permits, intergovernmental revenue, charges for services, investment income and fines and forfeitures. The decrease in governmental revenues of $5,313,032 or -7.42% when comparing the year ended December 31, 2020 to December 31, 2019 is primarily due to the Covid-19 government mandated quarantine, direct impact on sales tax revenues. Higher revenues in 2017 were due to a onetime payment received in 2017 from the liquidation of the Village’s interest in a public-private partnership related to the Ninety 7 Fifty on the Park development. Additionally, 2016 revenues include a one-time reimbursement from the University of Chicago for cost incurred in the construction of the parking deck. Governmental activities are mostly supported by taxes, such as property and sales taxes, and intergovernmental revenues. Intergovernmental revenues continue to be the largest governmental revenue source for the Village comprising 41% of total governmental revenues. Intergovernmental revenues include state shared revenue for Sales Tax, Income Tax, Motor Fuel Tax, Use Tax, and other taxes collected and distributed by the State of Illinois. REVENUE TREND The Village of Orland Park| Where the Money Comes From GOVERNMENTAL FUNDS 2017 2018 2019 2020$71,627 $90,708 $76,940 $73,995 13 $ = valuation$ = SHOWN IN 1,000’S 14 1% REVENUES BY SOURCE Governmental activities are mostly supported by taxes, such as property and sales taxes, and intergovernmental revenues. Intergovernmental revenues continue to be the largest governmental revenue source for the Village comprising 41% of total governmental revenues. Intergovernmental revenues include state shared revenue for sales tax, income tax, motor fuel tax, use tax, and other taxes collected and distributed by the State of Illinois. INVESTMENT INCOME INTERGOVERNMENTAL CHARGES FOR SERVICES TAXES LICENSES AND PERMITS FINES AND FORFEITURES 41% 35% 11%REVENUESBY SOURCE 3% 2% 1% MISCELLANEOUS 14 15 INTERGOVERNMENTALTAXES CHARGES FOR SERVICESLICENSES AND PERMITS INVESTMENTINCOME FINES ANDFORFEITURES MISCELLANEOUS $26.1 $24.8 $2.9 $1.9 $31.9 $33.8 $11.8 $7.9 $1.6 $1.5 $1.2 $0.9 $1.4 $0.8 0 5 10 15 20 25 30 35 Total: $76,939,681 2019 Total: $73,995,387 2020 Miscellaneous: includes any revenues not accounted for in the categories above. This category tends to fluctuate as one- time revenue sources are received by the Village. Taxes: includes home rule sales tax, property tax, hotel occupancy tax, cable franchise tax, video gaming tax and telecommunications tax. Licenses and Permits: includes business, contractor, vehicle, and liquor licenses, and new and existing construction permits. Intergovernmental: includes general sales tax, income and use taxes and motor fuel tax. Charges for Services: includes fees for recreation programs and events, rental fees, and other miscellaneous service fees. Investment Income: includes income earned through the investment of available cash that is pooled from various governmental funds, following the Village’s investment policies. Fines and Forfeitures: includes circuit court fines, and fines for municipal and ordinance violations. $ = SHOWN IN MILLIONS 16 Other Taxes: include hotel occupancy tax, cable franchise tax, video gaming tax and telecommunications tax. Sales Tax: the largest tax (34%) revenue is the 1% general sales tax collected by the state on eligible sales within the Village. Home Rule Sales Tax: 0.75% home rule sales tax is received on eligible sales within the Village. Property Tax: the second largest tax (26%) revenue is property taxes which are levied by the Village to property owners. The Village has lowered the lax levy for the first time in 10 years to reduce the tax burden on our residents and businesses Income & Use Tax: income and use taxes are collected by the State and distributed to the Village on a per capita basis. Motor Fuel Tax: fuel taxes are collected by the State on gas purchases and distributed to the Village on a per capita basis. 34% 26% 15%BREAKDOWN OF TAXES RECEIVED 16% 3% 6% 16 17 PROPERTY TAXES The Village’s property tax rate continues to remain stable as the Village Equalized Assessed Valuation (EAV) rebounds from prior year declines. Since 2012, the Village’s overall property tax levy amount was lowered to $13.02 million. The Village’s efforts to continuously enhance development within the Village contain costs and minimize taxes collected from its residents, along with the recovery of property values, are reflected in the Village property tax rate. 2009 $2.80 $2.77 $2.37 $2.18 $2.06 $2.01 $1.95 $2.05 $2.34 $2.28 2010 2011 2012 2013 2014 2015 2016 2017 2018 Equalized Assessed Valuation ($Billions)Village Property Tax Rate $0.44 $0.48 $0.57 $0.61 $0.65 $0.67 $0.69 $0.65 $0.57 $0.59 $2.28 2019 $0.59 Top 10 Real Estate Taxpayers 2019 EAV Simon Property Group $82,190,338 IRC: Orland Park Road, Ravinia Park Plaza $49,266,869 Village of Orland Park $46,084,075 Lakeview Plaza $24,852,027 Metra Triangle LLC $13,058,670 Constance Oswald $12,202,504 B&G Realty Co.$11,330,742 Edwards Realty Co.$11,002,242 Ryan LLC $9,289,886 Residents of Orland Crossing $8,912,976 $268,190,329 Simon Property Group 18 40% 10%2% 2% 34% OTHER-OPEN LANDS & RIGHT OF WAY RESIDENTIAL 2% 9% 1% UNDEVELOPED COMMERCIAL OFFICE CIVIC & INSTITUTIONAL INDUSTRIAL & MANUFACTURING MIXED USE LAND USE – PERCENTAGE OF TOTAL ACREAGE 19 Government expenditures are amounts spent on the acquisition of goods and provision of services for residents. The primary expenditures of the Village of Orland Park include those for public safety, the administration of the Village, culture and recreation, capital outlay and debt service. The Village’s governmental activities’ expenses are categorized into the following functions, which are typical to most municipal governments. EXPENDITURES BY FUNCTION Debt Service: includes payments related to outstanding debt obligations. The Village of Orland Park| Where the Money Goes General Government: includes the departments of administration, finance, building maintenance, officials and other general administration. Public Safety: includes the police and emergency service disaster agency (ESDA) departments. Planning and Development: includes planning, code enforcement, transportation and engineering. Public Works: includes streets, transportation and vehicle and equipment departments. Recreation and Parks: includes the Village’s parks, recreational facilities, programs and general recreation administration. Capital Outlay: includes capital expenditures related to Village infrastructure and equipment. PUBLIC SAFETY GENERAL GOVERMENT RECREATION & PARKS CAPITAL OUTLAY DEBT SERVICEPUBLICWORKSPLANNING & DEVELOPMENT Total: $79,068,4912019 Total: $77,394,608 2018 $20 , 7 7 5 , 4 8 9 $20 , 5 9 4 , 7 3 7 $13.8 $14.4 $20.8 $22.8 $2.9 $2.8 $7.0 $7.2 $12.9 $11.3 $11.8 $10.2 $10.2 $6.8 0 5 10 15 20 25 INTERGOVERNMENTALTAXES CHARGES FOR SERVICESLICENSES AND PERMITS INVESTMENTINCOME FINES ANDFORFEITURES MISCELLANEOUS $26.1 $24.8 $2.9 $1.9 $31.9 $33.8 $11.8 $7.9 $1.6 $1.5 $1.2 $0.9 $1.4 $0.8 0 5 10 15 20 25 30 35 Total: $76,939,681 2019 Total: $73,995,387 2020 $ = SHOWN IN MILLIONS 2020 BUDGETED EMPLOYEES BY FUNCTION EXPENDITURES TREND Expenditures in 2017 reflect significantly higher debt service costs than 2018 through 2020 due to the liquidation of the Village’s interest in the Ninety 7 Fifty on the Park development as debt related to the development was paid off utilizing proceeds from the liquidation. PLANNING & DEVELOPMENT GENERAL GOVERNMENT PUBLIC WORKS PUBLIC SAFETY130 65 51 20 17 6 38 631 31 13 CULTURE & RECREATION 2020201720182019 $75,594 $113,784 $79,068$73,395 Full-Time EmployeesTotal: 267 Part-Time EmployeesTotal: 735 $ = SHOWN IN 1,000’S 20 21 Governmental Activities Business-Type Activities Village Total Land $155.2 $34.5 $189.6 Buildings & Land Improvements $99.9 $10.1 $110.0 Centennial Pool $11.7 -$11.7 Machinery, Vehicles, & Equipment $18.1 $5.5 $23.6 Infrastructure $178.2 $213.8 $392.0 Construction in Progress $5.6 $1.2 $6.7 Less: Accumulated Depreciation ($184.9)($97.0)($281.9) Total $283.8 $168.0 $451.8 FIVE YEAR CAPITAL INVESTMENT CAPITAL ASSETS BY CATEGORY Investments in Capital Assets | What We Own The Village continues to invest in its capital assets. Assets procured primarily with tax resources are classified as governmental, while capital assets associated with fee-based operations have a business-type classification. 2016 201920172018 $7.4 2020 Governmental Activities Business-Type Activities $10.2 $4.8 $23.5 $6.9 $5.9 $11.6 $9.8 $4.6 $6.5 0 5 10 15 20 25 $ = SHOWN IN MILLIONS $ = SHOWN IN MILLIONS Capital outlay in 2020 funded the construction and rehabilitation of multiple street, water main and storm water infrastructure projects throughout the Village. In the past 5 years, the Village has invested approximately $91 million in capital improvements. Below are some of the highlights: • Neighborhood Road Improvement Program • Fairway Estates Main Water and Storm Water Improvements • Fernway Subdivision Roadway and Ditch Grading Improvements • Programmable Logic Controller Modernization for All Water and Waste Facilities • Elevated Take 5 Rehabilitation • Sportsplex Phase 2 HVAC Energy Saving Contract and Improvement • John Humphrey Complex Renovation, Phase II • 151st Street Improvements • Playground Renovations • Roofing Restoration for Public Works Administration and V&E Building • Sanitary Sewer Rehabilitation REHABILITATION AND CONSTRUCTION PROJECTS Village of Orland Park Sportsplex 22 23 The Village’s policy for issuance of long-term debt confines borrowing to significant capital improvements only if current revenue sources are not available. At the end of fiscal year 2020, the Village had total debt outstanding of $73.5 million, an increase of approximately $7.3 million, or 9.93% higher than fiscal year 2019. Long Term Debt | What We Owe 2012 201520132014 2016 2018 2019 20202017 $92.3 $122.4 $120.7 $117.6 $109.6 $78.6 $70.4 $66.2 $73.5 0 30 60 90 120 150 VILLAGE DEBT - PRINCIPAL OUTSTANDING $ = SHOWN IN MILLIONS 24 The Village of Orland Park continues to receive high ratings from the two major bond ratings agencies. In 2019 and again in 2021, Standard and Poor’s affirmed the Village’s AA+ rating, noting that the rating reflects the Village’s very strong economy, management and financial policies, budgetary flexibility, and liquidity. Moody’s also reaffirmed its Aa1 rating for the Village, due to the Village’s large and affluent tax base and healthy financial profile. As a home rule municipality, there are no limits imposed by the State of Illinois on long-term borrowing. However, the Village’s debt to EAV ratio, at 3.23%, is well below the 8.625% limit on non-home rule municipalities. The Village borrowed additional funds for capital projects through existing Lines of Credit. The Village drew $11,643,499 for Governmental Activities and $2,505,000 for Business-type activities. Total outstanding Lines of Credit ($14,769,499 for Governmental Activities and $3,000,000 for Business-type Activities) were subsequently refunded by G.O. Bonds in 2021. 2020 SIGNIFICANT DEBT ACTIVITY INCLUDED: 02 03 All general obligation notes and bonds payable are backed by the full faith and credit of the Village. Notes and bonds in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Long Term Debt | Debt Activity VILLAGE RATINGS CAPITAL PROJECT OUTSTANDING LINES OF CREDIT FUNDING 25 All general obligation notes and bonds payable are backed by the full faith and credit of the Village. Notes and bonds in governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. As a home rule municipality, there are no limits imposed by the State of Illinois on long-term borrowing. However, the Village’s debt to EAV ratio, at 3.23%, is well below the 8.625% limit on non-home rule municipalities. LONG TERM DEBT Governmental Debt Business Type Debt $8.6 $64.8 FREDERICK T. OWENS VILLAGE HALL 14700 S. RAVINIA AVE. ORLAND PARK, IL 60462 orlandpark.org Please visit orlandpark.org to view the full Comprehensive Annual Financial Report. $ = SHOWN IN MILLIONS PREPARED BY: Village of Orland Park Finance Department 14700 S. Ravinia Ave. Orland Park, IL 60462 DESIGN THEME BY: Village of Orland Park Communications & Marketing Department 14700 S. Ravinia Ave. Orland Park, IL 60462 FREDERICK T. OWENS VILLAGE HALL 14700 S. RAVINIA AVE. ORLAND PARK, IL 60462 orlandpark.org November 10,2021