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HomeMy WebLinkAboutVillage of North Aurora - Public Financial ReportContents Village President’s Message Community Proflle Accomplishments & Goals Fund Categories & Structure General Fund Other Village Funds Photo Gallery Development & Taxes Statement of Net Position Statement of Activities Contact Information North Aurora Facts The Village of North Aurora Popular Annual Financial Report 2021 Popular Annual Financial Report |2 2 3 5 6 7 8 9 10 11 12 13 As the Village President of North Aurora, I am excited to present the Popular Annual Financial Report (PAFR) for Fiscal Year 2021. This document has been created to provide North Aurora citizens and other stakeholders with a comprehensive, but understandable guide to the Village’s flnancial activities. The flnancial information in this report is derived from the Village’s 2021 Comprehensive Annual Financial Report, which represents the Village’s official audited flnancial statements, and conforms with Generally Accepted Accounting Principles (GAAP). The Village received its 20th consecutive Certiflcate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for the Comprehensive Annual Financial Report as of May 31, 2020. The Certiflcate of Achievement is considered the highest form of recognition in the area of gov-ernmental accounting and flnancial reporting. The Village also received the Distinguished Budget Presentation Award from the GFOA for the flscal year 2021-2022.This represents the 16th consecutive year the Village has received this award. The Village also received for the 4th consecutive year the PAFR Award from GFOA. These awards not only attest to the dedication and professionalism of the entire Finance Department staff, but refiect the Village’s strong commitment to flscal accountability and integrity. All of these flnancial reports, along with other fl-nancial documents are available on the Village’s website at https://northaurora.org/departments/flnance-department/flnancial-reports-budgets/ If you have any questions regarding the information presented on the following pages, or any other Village flnancial reports, please contact Finance Director Bill Hannah at (630) 906-7374. Geographic Area 7.73 square miles Form of Government Trustee-Administrator Village President & 6-Trustee Board Demographics (U.S. 2020 Census) Residents 18,261 Race (U.S. 2020 Census) White 70.8% Black and African American 5.8% Asian 5.1% Some Other Race 8.4% Two or More Races 9.9% Hispanic or Latino (any race)** 19.2% Household Income (ACS 2019) Median $86,537 Bond Rating (S&P) AA+ Equalized Accessed Valuation (EAV) EAV- Up 5.5% to $589,911,090 General Merchandise Sales Tax- 7.5% *ACS is the American Community Survey organized by the U.S.. Census Bureau ** Hispanics or Latinos can identify with any race listed above Mark Gaffino Mark Gaffino Village President Sincerely 2021 Popular Annual Financial Report |3 The Village was incorporated in 1905 and operates under the trustee-administrator form of government. The Village Board consists of a Village President and a six-member Board of Trustees. The President and Trustees are elected on an at-large basis with overlapping four-year terms. The Village Administrator is appointed by the Village Board and is responsible for carrying out the policies of the Village Board and for overseeing the day-to-day administration of the Village. The Village is a non-home rule community as deflned by the Illinois Constitution. The Village of North Aurora has tripled its population over the past twenty-flve years. Current, official population is 18,261 based upon the 2020 Census of the Village. The Village population is expected to reach 21,000 residents by 2025. Village President Mark Gaffino Village Trustee Mark Carroll Village Trustee Michael Lowery Village Trustee Laura Curtis Village Trustee Mark Guethle Village Trustee Carolyn Bird Salazar Village Trustee Todd Niedzweidz Village Board of Trustees “An Attentive Municipal Organization that Connects with Community, Commerce, and Nature” The above serves as the Village of North Aurora’s vision statement and demonstrates the Vil-lage’s dedication to the many things that make up North Aurora. Community Profile The Fox River is a 202-mile long tributary of the Illinois River. It fiows from southeastern Wiscon-sin to Ottawa, Illinois, and right through North Aurora. Pictured: North Aurora’s State Street Bridge that crosses over the Fox River. Community Profile The Village provides a full range of services including police protection and investigation, maintenance of streets and infrastructure, water production, treatment and service, maintenance of water lines, sanitary and storm sewer lines, building in-spection and code enforcement, and general administrative/flnance services. As of May 31, 2021, the Village of North Aurora has 64.55 full-time equivalent employees. In addition to the Village of North Aurora, there are several other organizations that provide additional services to North Aurora residents and the community. Solid waste collection and recycling services are administered by the Village through a contract with a private flrm, at this time Groot Industries, Inc. Fire protection services are provided by the North Aurora Fire Protection District and Batavia Fire District, both separate governmental entities. Sanitary sewer treatment service is provided by the Fox Metropolitan Water Reclamation District, an independent unit of government. Recreational services are provided primarily by the Fox Valley Park District, which maintains 168 parks and 48 miles of inter-connected regional trails amid 2,500 acres of parkland, including 14 parks in North Aurora. The Messenger Public Library of North Aurora provides library services. The Library reported in Fiscal Year 2021 they had 199,122 items borrowed, 88,950 annual visits, and 15,760 reference questions answered. Supporting Organizations 2021 Popular Annual Financial Report |4 The Village of North Aurora is home to many parks and recreational bike and walking trails looked after by the Fox Valley Park District. Two of those parks rest alongside the Fox River: North Aurora Riverfront Park and North Aurora Island Park. Major Goals Planned for Fiscal Year 2021-2022 1. Anticipated initiation of construction of a new 750,000 gallon water tower 2. Establish new Planner position for Community Development 3. Increase public works staffing with the addition of a Street Laborer and Water Laborer 4. Complete the 2021 Street Improvement Program (3.2 miles) 5. Oversee the next phase of construction of Lincoln Valley on the Fox, a 374 unit age targeted residential development 6. Continue process to replace 59 street light poles on Orchard Gateway and Hansen Blvd 7. Continue with the comprehensive review of all of the Village’s three (3) TIF Districts in-volving the consolidation of a majority of current parcels into a new TIF District 8. Commence full architectural design services for an expanded Public Works facility as well as site engineering and analysis 9. Finalization of design and scope of improvements for the construction of a plaza and other improvements at Riverfront Park situated next to Village Hall 10. Develop plan for use of approximate $2,500,000 in American Rescue Plan Act (ARPA) federal funds for pandemic aid and other uses Village Accomplishments & Goals The Village continues to move forward advancing its goals and objectives, and planning for needs into the future while maintaining an excellent flnancial position. Below are the major ac- complishments completed in flscal year 2020-2021 and upcoming goals for flscal year 2021- 2022. Major Accomplishments Completed in Fiscal Year 2020-2021 Fiscal year begins June 1st and ends May 31st. 1. Completed the painting and programmed decorative lighting for the Berman Tower Silo utilizing TIF funds 2. On a trial basis, contracted a social worker for one day a week at the Police Department 3. Completed the process for the hiring of an in-house Village Engineer 4. Completed the 2020 Street Improvement Program consisting of 1.8 miles 5. Completed replacement of watermain on Maple and Elm Avenues 6. Completed major improvements for the Village’s website making it more user-friendly 7. Moved the process forward to consolidate most of the Village’s three (3) current TIF Dis-tricts into one new TIF District 8. Completed the initial space needs assessment of the public works site along with relat-ed facilities and began the selection process for full architectural services 9. Completed design development for a new 750,000 gallon water tower 2021 Popular Annual Financial Report |5 2021 Popular Annual Financial Report |6 The Village of North Aurora uses an accounting system known as “fund accounting.” A fund is a sep-arate accounting entity with a self-balancing set of accounts. Revenues refer to money that is re-ceived. Expenditures/Expenses refers to the amount of money spent on goods and services. Ex-penditures are used for governmental funds while Expenses are used for business-type funds. Funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds use modifled accrual basis of accounting which means revenues are recognized when they become measurable and available. Proprietary and fiduciary funds use the accrual basis of accounting which means revenues are recorded when measurable and earned. Financial information for non-major funds are not in the PAFR, but can otherwise be found in the Comprehensive Annual Financial Report. Governmental Funds The Village has four different types of governmental funds; general, special revenue, capital projects, and debt service. The general fund is the largest fund and is utilized to account for all activity that is not accounted for in another fund. Special revenues funds are used to account for and report proceeds of speciflc revenue sources that are restricted or committed to expenditures for specifled purposes other than debt service and capital projects. The Village has eight special revenue funds. The capital projects fund is used to account for projects related to village facilities or infrastructure improvements. The Village also has two debt service funds that are used to account for the payment of principal and interest on debt. The two debt service funds include the library and police station. The Village maintains 12 individual governmental funds which are located in the table below. Proprietary Funds The Village has two different types of proprietary funds; enterprise funds and internal service funds. Enterprise funds are used to account for a government’s business-type activities. These activities receive a signiflcant portion of their funding through user charges and fees. The Village’s water system fund, the Waterworks fund, is considered an enterprise fund. The Village also has two internal service funds that are used for flnancing goods and services from one department to another. The two internal service funds include vehicle and equipment and employee compensated absences. The Village maintains three individual proprietary funds which are listed in the table below. Fiduciary Funds Fiduciary funds account for funds that the Village is holding for someone else and are used to account for resources held for the beneflt of parties outside of the government. The Village of North Aurora maintains one flduciary fund; the police pension trust fund. Fiduciary funds are not refiected in the government-wide flnancial statements because the resources of those funds are not available to support the Village’s own programs. Fund Categories & Structure Governmental Proprietary Fiduciary General Tourism Waterworks Police Pension Trust Motor Fuel Tax Special Service Areas Vehicle and Equipment Route 31 TIF Sanitary Sewer Employee Compensated Absences Sperry TIF Capital Projects North Lincolnway TIF Library Debt Insurance Police Station Debt General Fund 2021 Popular Annual Financial Report |7 The General Fund is the major operating fund of the Village. It is used to account for all flnancial re- sources except those accounted for in another fund. It provides funding for the majority of operating services to the community including police protection, public works, and Village Hall services including administration, community development, and flnance. The primary sources of funding for these ser- vices are sales taxes, state-shared income taxes and property taxes. The Village has established a fund balance policy for the General Fund at 40% to 50% of annually adopted expenditures and transfers of resources out for the purpose of debt repayment. All graphs are for flscal year ended May 31, 2021. 2017 2018 2019 2020 2021 Revenues $10,136,829 $10,428,222 $11,420,135 $11,569,990 $14,516,855 Expenditures $9,388,868 $9,637,716 $10,120,715 $10,126,712 $10,645,656 Other Financing Sources/(Uses) $ (446,101) $(615,528) $(981,404) $(1,319,361) $(3,716,040) Net Change in Fund Balance $301,860 $174,978 $318,016 $123,917 $155,159 2021 Popular Annual Financial Report |8 * All graphs on this page are flscal year ended May 31, 2021 ** All non-major funds are not in the PAFR, but can be found in the Comprehensive Annual Financial Report. Route 31 TIF Fund. The Route 31 TIF Fund is used to account for the tax increment flnancing reve-nues and redevelopment expenditures within the Village’s Route 31 TIF District. The Village anticipates using another portion of this reserve in the following year for future redevelopment projects in the TIF. The Route 31 TIF fund flnished the year with a $54,698 decrease in fund balance. The fund balance at May 31, 2021 is $1,853,425. Waterworks Fund. This fund accounts for the revenue and operating and capital expenses associated with the provision of water service to residents and businesses in the Village. The Waterworks fund is what the Village uses to pay for operating, repair and maintenance on the Village’s water facility’s and infrastruc-ture. In the upcoming year, a water tower will be constructed partially using bond proceeds payable by Wa-terworks fund revenues. The Waterworks fund had a $629,593 positive change in net position for the year, with the total net position at the end of the year $27,284,209. Capital Projects Fund. This fund accounts for various tax revenues restricted or committed for roads, infrastructure, or other purposes as well as impact fees and other contributions. This fund accounts for expenditures related to the Village’s annual road improvement program, or capital projects related to village facilities or various right-of-way (ROW)/pedestrian infrastructure improvements. The fund flnished the year with a $3,651,400 increase in fund balance. The fund balance for the Capital Projects fund is $7,317,618 which meets the cash fiow reserve requirement for the fund. During the year $3,200,000 was transferred from the General Fund to the Capital Projects Fund. Other Major Village Funds 2021 Popular Annual Financial Report |9 The Crossroads On the Fox The Outlook Gazebo is situated above the Fox River by the Fox River Dam and along-side the Fox River Trail. Water Wonders is located at Riverfront Park and encourages residents to splash and play in this attraction. A Fox statue, in honor of the Fox River, is perched on the State Street Bridge; a main thoroughfare of North Aurora. Berman Tower is a 98-foot tall grain silo by the river that is illuminated with a different color theme each week. A view of State Street Bridge and the Fox River with the Silo rising in the background. 2021 Popular Annual Financial Report |10 West Aurora School District 61.82% Village of North Aurora 4.99% Fire District 10.45% Fox Valley Park District 5.18% Waubonsee College 4.87% Kane County 4.11% Library 3.65% Aurora Township 3.25% Kane County Forest Preserve 1.68% * Property tax allocations are illustrative of typical property tax bills. North Aurora has several taxes that fund village op- erations. Some taxes that the Village receives in- clude property, sales, income, gas & electric, tele- communications, motor fuel, and non-home rule sales tax. Strong economic activity has resulted in sales tax as the largest revenue source for the Vil- lage. Sales taxes, which is $6,473,313, comprise 45% of all General Fund revenues, which funds police protec- tion, public works, and village services. The Village’s top sales tax generating industries are Automotive Dealers/Filling Stations and Food. These two indus- tries make up 51% of the Village’s sales tax revenue. Sales tax revenue of $6,473,313 includes the 1% applied to all sales and the Village’s local 3% recreation- al cannabis sales tax. The Village also has fees (building permits, sewer collection, and water collection) which are allocated towards operations and capital projects in various funds. The Village does not rely signiflcantly on prop- erty taxes to fund Village services. Property taxes received in the General Fund for general government services were $2,249,057 during the year. Overall the Village has a very strong and stable flnancial position due in part to these diversifled revenues sources. Development & Taxes Where Do My Property Taxes Go?* The statement of net position provides a “snapshot” of where the Village stood flnancially at the close of flscal year May 31, 2021. Net position presents information on all of the Village’s assets and liabilities, along with deferred outfiows and infiows of resources. Current assets are usually used within the next year while capital assets refer to longer lived assets such as land, infrastructure, and equipment. Current liabilities are payable within one year (accounts paya- ble, and wages payable) while long-term liabilities refer primarily to bonds payables, pension liabilities, and other long-term liabilities. Over time, increases or decreases in net position may serve as a useful indicator of whether the flnan- cial position of the Village is improving or deteriorating. Governmental activities are for the operation of the Village that relate to general government, public safety, public works and sanitation. Business-type activities refer to the Village’s water provision operations. Total primary government refers to the entire Village (Governmental and Business-Type Activities). The Village’s reported total unrestricted net posi- tion was $12,534,212 as of May 31, 2021. 2021 Popular Annual Financial Report |11 Statement of Net Position 2021 Popular Annual Financial Report |12 The Statement of Activities presents information showing how the Village’s net position changed during the most re- cent flscal year. All changes in net position are reported as soon as the underlying event giving rise to the change oc- curs, regardless of the timing of related cash fiows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash fiows in future fls- cal periods. Both of the government-wide flnancial statements distin- guish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recov- er all or a signiflcant portion of their costs through user fees and charges (business-type activities). Governmental activities refiect the Village’s basic services, includ- ing general government, public safety, public works and sanitation. Business-type activities include the Vil- lage’s water provision operations. The Village’s total Net Position increased $1,832,878 in Fiscal Year 2021. Statement of Activities 2021 Popular Annual Financial Report |13 Village Department Heads Village Administrator Community Development Director Finance Director Police Chief Public Works Director Steve Bosco Mike Toth Bill Hannah David Fisher John Laskowski Additional Financial Data The flnancial data presented in the PAFR is derived from the Village of North Aurora’s Comprehensive Annual Financial Report. The information presented in the PAFR is consistent with Generally Accepted Accounting Principles (GAAP). The PAFR presents selected flnancial information from the Comprehensive Annual Financial Report. Additional information on individual funds is available in the Comprehensive Annual Financial Report. The Comprehensive Annual Financial Re-port also contains more detailed flnancial information and note disclosures regarding the Village’s flnancial position for the year and users should review the Comprehensive Annual Financial Report for more information. The Comprehensive Annual Financial Report can be located on-line at the following address: https://northaurora.org/departments/finance-department/financial-reports-budgets/ In addition to the most current Comprehensive Annual Financial Report, users can flnd an on-line version of the PAFR as well as other documents including the Village’s Annual Budget and annual Treasurer’s Report. Thank you for reading the 2021 Popular Annual Financial Report! If you have any questions regarding the flscal condition of the Village of North Aurora please contact Finance Director Bill Hannah at (630) 906-7374. Follow us on Facebook! Village of North Aurora: @VillageofNorthAurora North Aurora Police Department: @NorthAuroraPolice North Aurora Days: @NorthAuroraDays