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HomeMy WebLinkAboutVillage of Beach Park - Public Financial Report 2021 Popular Annual Financial Report For Fiscal Year ended April 30, 2021 Village of Beach Park Beach Park, Illinois TABLE OF CONTENTS Mayoral Message .................... 2 Village Demographics… ........... 3 Village Revenue ....................... 4 Village Expenditures ............... 5 Revenue & Expense Trends .... 6 Village Financial Health ........... 7 Net Position ............................ 7 Village Officials ....................... 8 2 A Message From the Mayor: Dear Reader, On behalf of the Village Board and staff, I would like to thank you for taking the time to review the 4th edition of our Popular Annual Financial Report (PAFR). Our goal is to communicate important ffnancial information in a manner that is easily understood. These days, having a clear picture of how your government is administered continues to be of utmost importance. The PAFR is only a snapshot of important financial information contained in the Village’s Comprehensive Annual Financial Report. We have selected what we believe to be the most relevant and interesting data to be included here. Please feel free to comment on the report and tell us what you would like to see in future editions. After all, this report is intended to be a tool for its reader regardless of financial training or background. This report is not intended to replace the full disclosure financial statements that can be viewed in our Comprehensive Annual Financial Report. Rather, by reading this report, our hope is that you will be able to gain a general understanding and take a summary level look at the Village’s financial activities and position for the fiscal year ended April 30, 2021. If you are interested in additional detail, the Comprehensive Annual Financial Report is available on the Village website or you can call the Finance department for a hard copy if you prefer. Completing the Comprehensive Annual Financial Report fulfills the Village’s requirement under Illinois State law. It is a very detailed report and is the result of the annual independent audit. Despite the year of uncertainty due to the pandemic, the Village ended fiscal year 2021 in a good financial position with sufficient reserves, low debt, and a lean staff. The Village does rely on state shared revenues, however, because of not levying a municipal property tax, so our Village Board and staff closely monitor the revenue trends throughout the year, while also keeping a check on spending. I hope you find our 2021 PAFR to be highly informative. If you ever have any questions about the Village’s finances, do not hesitate to contact me or the administration team at Village Hall at 847-746- 1770. The Government Finance Oificers Association (GFOA) of the Unit- ed States and Canada has given an Award of Outstanding Achieve- ment in Popular Annual Financial Reporting to the Village of Beach Park for its Popular Annual Financial Report for the ffscal year end- ed April 30, 2020. This prestigious, national award recognizes con- formance with the highest standards for preparation of state and local government popular reports. To receive an Award for Out- standing Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report that conforms to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The Village of Beach Park believes our current report continues to conform to the Popular Annual Report- ing requirements and we are submitting it to the GFOA. 3 The Village of Beach Park - A Village of Rural Spirit Background The Village of Beach Park was incorporated in 1989 and is located along Lake Michigan, approximately 40 miles north of Chicago and 49 miles south of Milwaukee. It encompasses approximately 7.5 square miles of Lake County in northeastern Illinois with the City of Zion to the north and the City of Waukegan to the south. The village has a President/Board form of government consisting of a Village President (Mayor) and six Trustees, all elected on an at-large basis to four overlapping terms. The seven-member board is responsible for the approval of the annual budget and adoption of ordinances. The village currently has 16 full-time employees and 2 part-time employees. The village is a non-home rule unit of government with a population of 14,249. Community Life Village residents enjoy a variety of recreational fa- cilities in the area including Illinois Beach State Park, North Point Marina, and Thunderhawk Golf Course. Illinois Beach State Park offers camping, lodging, a health spa, ffshing ponds, nature trails, wetlands, and dunes. Surrounding area attractions include the Winthrop Harbor Yacht Club, Gurnee Mills Shopping Mall, Six Flags Amusement Park, the Volo Auto Museum, Ravinia Outdoor Music Theater and the Great Lakes Naval Museum. 2021 Demographic Snapshot Data Source: Lake County Clerk, US Census Bureau—Census 2010 and 2020, & U.S Bureau of Labor Statistics 4 Where the money comes from... GENERAL FUND REVENUE BY SOURCE General Fund Revenues This chart clearly depicts the Village’s dependence on state distributed income tax, sales and use taxes to fund governmental activities. In fact, state shared revenues account for 70% of the total revenue in the General Fund. The Village does not levy a municipal property tax and hasn't since its inception in 1989. Beach Park Funds A fund is a set of accounts that are segregated to report on speciffc activity conducted by a government. The Village has three major fund groupings; governmental, proprietary and ffduciary. Organized under these headings are nine individual governmental funds and the Village adopts an annual budget for all funds. The only fund presented in this document is the General Fund, which falls under governmental fund grouping. For information on all funds, please see the Comprehensive Annual Financial Report available on the village’s website at www.villageofbeachpark.com. Village Infrastructure Village Roads 72 miles Street lights 168 Water Mains 46 miles Fire Hydrants 737 Water delivered to customers 162,307,000 gallons Sewer Lines 51 miles 5 ...and where the money goes. General Fund Expenses The majority of the expenses in the General Fund relate to services provided to our residents. Streets and Highways, Public Safety and Parks and Recreation account for 59% of total general fund expenses. All functional expense areas in the General Fund came in below budget for the ffscal year ended April 30, 2021. The Village pays for its capital projects from either the Capital Fund or the Water and Sewer Fund. Several planned capital initiatives were delayed in FY 2021 due to the ongoing uncertainty caused by the COVID-19 pandemic, but the Village did continue its road improvement program, paving 1.74 miles of road. In addition to the roads, the Village purchased a Peterbilt dump truck and plow. General Fund Balance: Financial Policy As of April 30, 2021, the unassigned fund balance of the General Fund was $879,904, or 29% of the total fund balance of the General Fund. In addition, the unassigned fund balance was 33.6% of total General Fund expenditures. These strong measures of liquidity demonstrate the Village’s commitment to closely monitoring expenditures and living within its means. GENERAL FUND EXPENSES BY FUNCTION The cost per capita to provide general services to each Beach Park resident was $192.16 for FY 2021. 6 FY21 General Fund revenues of $4,120,656 were higher than 2020 by $523,968, or 14.6%. As you can see in the chart above, state shared revenues such as income and local use tax have been increasing over the last several years . The increased income tax revenue helps the Village fund general fund activities. Sales tax revenue has increased because of two new businesses— Speedway and a Dollar General. The COVID-19 pandemic did not have as signiffcant an impact on Village ffnances as originally expected. As depicted in the chart below, FY21 General Fund expenses of $2,620,653 decreased from last year by $1,719,453, due in large part to last year’s debt retirement of $1,495,000 which was a one time expense. Debt service expense was $0 in FY 21. Revenue and Expense Trends 7 The Village was founded in 1989, upon the principal that government should be financially sound and self-sustaining without a municipal property tax. Our mission is to be business and resident friendly, while assuring the health, safety and welfare of Beach Park as a whole. The Statement of Net Position looks at Beach Park as a whole and can be a useful indicator of the Village’s ffnancial position. Total Net Position was 55,837,129 at the end of 2020 and increased to 57,930,517 in 2021. This table shows that, net position increased in 2021 from 2020 which is a demonstration of the sustainable ffnancial health of the Village of Beach Park. The increase is a result of mindful ffnancial decisions. Net position of business-type activities increased $19,433, or .2 percent, and net position of the governmental activities increased $2,03,955, or 4.7 percent. Overall, government-wide revenues totaled $7,926,754, while expenses totaled $5,833,366, resulting in an increase to net position of $2,093,388. Village Financial Health Measures The Village keeps a watchful eye on several measures to ascertain the overall health of the Village’s ffnances. See below for particular items of note in each category. Sales Tax Revenue: The Village strives to grow its sales tax base and works to attract new business development in its 4 TIF Districts. Bond Debt Liability: The Village has paid off both of its outstanding GO bond issues over the last two years. In the Fall of 2020 the Village reffnanced the TIF backed bond to take advantage of lower interest rates. That bond and an IEPA loan funded by SSA taxes are still on the books at the end of FY 2021. Road Improvements: The Village continues its aggressive Road Improvement Program funded by MFT funds from the state and utility tax revenue earmarked for this purpose. EAV: For the sixth year in a row, since the downturn in 2010, estimated actual value of property in the Village has increased. While the Village does not collect any property tax, this is still an important measure of the health of the Village as we continue to work toward developing available locations by reaching out to potential developers. With a concentrated effort in code enforcement, the Village has been improving curb appeal within the residential and business districts in the Village, making it more attractive to new development. Municipal Property Tax: Finally, the Village is proud of its ability to provide the services its residents expect without levying a municipal property tax. Statement of Changes in Net Position Don’t forget to visit the Village of Beach Park website for information on current events, forms, online services, meeting agendas, minutes, Village Codes, contact information and more! www.villageofbeachpark.com Find us on Facebook at Village of Beach Park, Illinois The ffnancial data in this report is derived from the Comprehensive Annual Financial Report for the ffscal year ended April 30, 2021, and is presented in conformity with GAAP (Generally Accepted Accounting Procedures ). Copies of the full ffnancial statements of the Village, can be obtained through the Finance Department as well as the Village website at www.villageofbeachpark.com. Additional copies of this report can be obtained through the Finance Department and can also be viewed on the Village website. Questions? If you have questions concerning this report or would like to offer your ideas on how to improve the information that is provided in future editions, please feel free to contact Village Hall at 847-746-1770. L A K E C O U N T Y I L L I N O I S The Village of Beach Park 11270 W. Wadsworth Road Beach Park, IL 60099 H O U R S Monday through Friday: 8:00 a.m. – 4:30 p.m. Village Hall 847-746-1770 Village Hall Fax 847-746-1797 L-R: Trustee Mark Ottersen, Trustee Linda Sittig, Trustee Larry Wells, Mayor John Hucker, Village Clerk Mary Jo McDonald, Trustee Don Jensen, Trustee Regina Miller, Trustee Richard Gust The Village Board is comprised of eight elected oificials, including a Village President (Mayor), six Trustees and a Village Clerk. The elected oificials serve staggered four-year terms and are elected “at-large”, meaning each oificial represents the whole Village. Village Board meetings are open to the public and are usually held at 7:00 p.m. on the second and fourth Thursday of every month at Village Hall. About the Village Board