HomeMy WebLinkAboutVillage of Northbrook - Public Financial ReportInside:GFOA Award . . . . . . . . . . . . . . . . . . . . . . . . . .2Local Economy . . . . . . . . . . . . . . . . . . . . . . . . .2Council-Manager Government . . . . . . . . .3Village History . . . . . . . . . . . . . . . . . . . . . . . . . .3Accomplishments . . . . . . . . . . . . . . . . . . . . . .4Planned Initiatives . . . . . . . . . . . . . . . . . . . . . .4Sales Tax Funding . . . . . . . . . . . . . . . . . . . . . .5General Fund Operating Results . . . . . . . .5General Fund Expenditures . . . . . . . . . . . .6Village Share of Property Tax . . . . . . . . . . . .7Property Tax Rate . . . . . . . . . . . . . . . . . . . . . . .7Invested Resources . . . . . . . . . . . . . . . . . . . . .8Statement of Net Position . . . . . . . . . . . . . . .8Statement of Activities . . . . . . . . . . . . . . . . . .9Enterprise Management Funds . . . . . . . .10Debt to Finance Capital Projects . . . . . . .11Contact Information . . . . . . . . . . . . . . . . . . .12Resident Feedback . . . . . . . . . . . . . . . . . . . .12
Popular Annual Financial Report
Village of Northbrook, Illinois
A Message to the Village of Northbrook
Dear Reader,
On behalf of the Village Board and staff, I would like to thank you for taking the time to review the 17th edition of our Popular Annual Financial Report (PAFR) . You should be commended for taking the time to gain an understanding of the Village of Northbrook from a financial perspective. All of the previous editions of the PAFR received recognition from the Government Finance Officers’ Association. We are proud of this accomplishment and hope that you will continue to benefit from our award-winning publication . Our goal is to communicate important financial information in a manner that is easily understood. These days, having a clear picture of how your government is administered is of utmost importance .
The financial information contained in the PAFR is only a snapshot of data presented in our Comprehensive Annual Financial Report (CAFR). We have selected what we believe to be the most relevant and interesting data to be shown here . 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 background or training. You should also know that this report is not intended to replace the full disclosure financial statements that can be viewed in our CAFR at northbrook.il.us/yourtaxdollarsatwork. Rather, by reading this report, you will be able to gain a general understanding and summary of the Village’s financial activities and position for the fiscal year ended April 30, 2021.
Lastly, we would like to encourage you to continue to take an active part in your local government and community. While the elected officials and administration of the Village of Northbrook are committed to financial accountability and soundness, our financial capacity is greatly magnified when the people who call Northbrook home invest their resources of time and talents . Thank you for partnering with us!
Sincerely,
Sandra E . Frum Village President
Board of Trustees Sandra E . Frum, PresidentKathryn L . Ciesla Robert P . IsraelMuriel J . CollisonHeather E . RossJohannah K . HeblDaniel H . Pepoon
Village ClerkDebra J . Ford
AS OF APRIL 30, 2021
p2
Northbrook Numbers at a GlancePopulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,222Median Income . . . . . . . . . . . . . . . . . . . . . . . . $131,544Median Age . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Unemployment Rate . . . . . . . . . . . . . . . . . . . 4/2021 - 5 .4%Median Home Value . . . . . . . . . . . . . . . . . . . . $541,450Number of FT Employees, FY 20/21 Budget 267Equalized Assessed Valuation, TY 2020 . . . . $2,859,973,023Total Housing Units . . . . . . . . . . . . . . . . . . . . . 13,603
Sources: Village of Northbrook Finance Department, 2015-2019 American Community Survey 5-Year Estimates, 2010/2020 US Census, GIS Consortium & Illinois Department of Employment Security
PAFR 2021
Northbrook’s Local EconomyNorthbrook combines factors of unusual personal wealth among residents; a strong diversification of employment; a diversity of industrial, commercial and office development; high home values; convenient transportation; and proximity to Chicago and other geographic factors that contribute to a strong local economy . As the location for a number of corporate headquarters, it has the additional distinction as a residential community for a number of corporate executives and of high home values . As an industrial community, it offers convenient transportation and proximity to Chicago .
With a broad-based distribution of Village revenues and relatively low tax rates, the Village is able to offer a high level of governmental services to its residents and businesses . A substantial land area has also permitted development of corporate offices and commercial shopping centers. Northbrook Court includes such stores as Neiman Marcus, Crate & Barrel and features over 100 specialty shops like the Apple Store, H&M, Tiffany’s, Coach, and Louis Vuitton. Northbrook is home to corporate headquarters for international and national companies such as Crate & Barrel, Underwriters’ Laboratories, Inc., Barilla America, and Wiss, Janney, Elstner Associates. It also serves as the Northern Illinois distribution center for United Parcel Service . The careful planning and development of Northbrook helps to ensure a stable economic base for the foreseeable future . The wise development of the remaining property within the Village will add to that stability .
It is clear that the business community continues to see Northbrook as an attractive place to grow and expand . The retail sector remains healthy; anchored by the 800,000-square foot high-end Northbrook Court mall, the 417,000-square foot Willow Festival shopping center, and the 335,000-square foot Village Square shopping center .
Despite the many changes taking place in the world of retailing, the Village’s retail market maintained a low 4.6 vacancy rate as of September 2021 . Two large luxury apartment complexes along the Skokie Boulevard corridor, the 347-unit Northshore 770 building and the 304-unit 1000 Skokie apartment building will only increase the demand for shopping and dining experiences in the community and surrounding area for years to come .
Significant changes are underway at Northbrook Court shopping center. The owner, Brookfield Properties, purchased the Macy’s department store structure and related property and parking field. In June 2019, the Village approved a
major redevelopment plan for the east end of the mall . The 280,000-square foot Macy’s store was demolished in early-2020. It will be replaced by 109,500 square feet of open-air retailers and restaurants, including a grocery store . There will also be 315 luxury apartments integrated into the center .
The Village is fortunate to have large industrial and office areas to bolster our property tax base . Due to increased demand for warehouse and industrial space in areas well-served by major transportation routes, CoStar reports the Northbrook industrial vacancy rate to be only 3 .9% for the 4th quarter of 2021 . The Northbrook office market is not as strong, with an overall vacancy rate of 17 .6% for the 4th quarter of 2021 .
Redevelopment continues in downtown Northbrook. With the addition of new restaurants and retailers, as well as the expansion of an existing restaurant, the vacancy in the downtown remains low . The third phase of the 68-unit townhome development along Shermer Road in downtown Northbrook is underway . The Village also added additional streetscape and areas for expanded outdoor dining throughout the downtown which has assisted in providing additional outdoor gathering spaces .
Elsewhere in the Village, sales at the 84-unit townhome development by national builder M/I Homes on Techny Road, which broke ground in 2020, are particularly strong as they offer new homes at an attractive price point . Redevelopment of existing infill sites continues throughout the community with new homes replacing older homes . The excellent public school system and the park system are a major draw for new residents and have led to the community’s high residential property values and strong real estate market .
Village of Northbrook Garners 16th Consecutive AwardThe Government Finance Officers Association (GFOA) of the United States and Canada has given an Award of Outstanding Achievement in Popular Annual Financial Reporting to the Village of Northbrook for its Popular Annual Financial Report for the fiscal year ended April 30, 2020.
This prestigious, national award recognizes conformance with the highest standards for preparation of state and local government popular reports . In order to receive an Award for Outstanding 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 Northbrook believes our current report continues to conform to the Popular Annual Reporting requirements and we are submitting it to the GFOA .
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
Village of Northbrook
Illinois
For its Annual Financial Report for the Fiscal Year Ended 2020
Executive Director/CEO
northbrook.il.us p3
Village of Northbrook Organization Chart
Professionalism Abounds in Northbrook’s Council-Manager Form of GovernmentBorn out of the U.S. progressive reform movement at the turn of the 20th century, the council-manager system was designed to create professionalism in local government by promoting effective management within a responsive and accountable structure.
Council-manager government combines the strong political leadership of elected officials with the strong managerial experience of an appointed manager or administrator . Power and authority to set policy rests with an elected governing body, which includes a chairperson and members of the council, commission, or board . The governing body in turn hires a nonpartisan manager to run the day-to-day operations of the organization .
Northbrook’s council-manager form of government was adopted by referendum in 1953 . The Village President and Board of Trustees are elected by the registered voters on an at-large basis for staggered, four-year terms . The Village Board of Trustees is also assisted by a variety of advisory boards, commissions and standing committees made up of citizen volunteers . Each board, commission or committee has their own special area of responsibility and expertise .
The President as of April 30, 2021, Sandra Frum, has served on the Village Board since 1987 . The current President, Kathryn Ciesla, was sworn on May 11, 2021 . The Village Manager as of April 30, 2021, Richard Nahrstadt, has served Northbrook since 1991 and was appointed Village Manager in 2008 . The current Village Manager, Cara Pavlicek, was appointed as of September 1, 2021 .
A Little Background About a Village Once Called ShermervilleThe earliest recorded residents of the Northbrook area were the Potawatomi tribe under Chief Shabbona .
In 1833, the tribe ceded their land in Illinois and relocated near Council Bluffs, Iowa . Joel Sterling Sherman and his family were among the early settlers . The Sherman family bought 159 acres for $1 .25 per acre in the northwest quarter of Section 10 . This is the site of the current Central Business District . Soon after Mr . Sherman bought that land, the area was named Shermerville, after Mr. Frederick Schermer, who donated the land for the first railroad station (Schermer Station and later Shermer Station) . By the 1870s, the region was a farm town .
In 1901, following a close referendum, the town was incorporated as Shermerville with about 60 homes and 311 residents .
By 1921, residents felt that the Shermerville name had a bad reputation . After a contest, the new name of Northbrook, submitted by Edward Landwehr, was adopted as the official name in 1923 . At that time, there were 500 residents . Northbrook did not grow rapidly until after World War II when subdivisions of homes were first developed. In 1940, the population was 1,265, but by 1960 the population was 11,635 . In 1963, another growth spurt was stimulated by the completion of a water line to bring Lake Michigan water to Northbrook’s new water treatment plant. By 1970, the population had more than doubled to 25,422 . The current population is 35,222, as of the 2020 US Census .
Village of NorthbrookOrganization Chart
Boards and Commissions
Architectural ControlArts CommissionCommunity Relations CommissionEconomic Development CommissionElectrical CommissionEmergency Telephone SystemEnvironmental Quality CommissionFire & Police CommissionersFirefighters’ Pension Foreign Fire InsuranceIndustrial & Commercial DevelopmentPlan CommissionPolice PensionSenior Services CommissionStormwater ManagementYouth Commission
Standing Committees
Finance CommitteePublic Works Committee Planning & Zoning Committee Community CommitteePublic Safety CommitteeLegislative & Communications Committee
Electorate
Village Manager
Assistant Village Manager
Corporate Legal ServicesVillage Attorney
Enforcement Legal ServicesVillage Prosecutor
Boards & Commissions Standing Committees
Board of Trustees &Village Clerk
Management of Public Improvements
Director of Public Works
Development Regulation & Community Planning
Director of Development Planning Services
Fire Emergency Services
Fire Chief
Law Enforcement Services
Chief of Police
Technology Services
Chief Information Officer
Fiscal Administration
Chief Financial Officer
Village Manager’s Office
Director of Administrative Services
Board of Trustees as of April 30, 2021 Sandra E . Frum, Kathryn L . Ciesla, Robert P . Israel, Muriel J . Collison, Heather E . Ross, Johannah K . Hebl, Daniel H . Pepoon
p4 PAFR 2021
Departments Highlight Accomplishments of Fiscal Year 2020/2021
• Provided supplemental contributions to mental health and social service agencies to provide new or expanded resources to Northbrook residents in response to COVID-19 .
• Committed significant time and resources to plan, prepare, implement, and mitigate the effects of the worldwide COVID-19 pandemic on Northbrook .
• The Board adopted the inclusionary housing plan in December of 2020 .
• Promoted existing recycling programs by supplying textile recycling bags, providing space for teracycle containers, and collecting plastic film products at Village Hall.
• Partnered with the Northbrook Chamber of Commerce to establish the Live Shop Dine Mobile Text Program that promotes local business offerings .
• Developed and tested the Cybersecurity Incident Response Plan with a “table top” exercise . Implemented additional cybersecurity systems to detect and respond to cybersecurity threats and incidents, while mitigating the risk to the Village’s systems and data from such events.
• Installed and trained on the use of a Next Generation 911 capable communications logging system to share communications via alternate means such as text, picture, and video .
• Continued leading sustainability efforts on behalf of the
community, including staffing the Village’s Environmental Quality Commission, managing the Village’s Greenest Region Corps Sustainability Fellow, and coordinating efforts with external groups focused on sustainability .
• The Village’s consultant, staff and the Climate Action Planning Team worked on developing a draft of a Climate Action Plan . This plan was available for the general public to begin reviewing in August 2021 .
• Completed satellite-based leak detection study to proactively identify and repair leaks .
• Developed an online permit portal for several building permit application processes to be completed on the Village website .
Planned Initiatives for Fiscal Year 2021/2022
• Continue the implementation of cybersecurity policies and procedures with the objective of mitigating the risks associated with cyber incidents .
• Migrate Village email services to the cloud reducing the amount of maintenance required on the email system .
• Assist in the solicitation of bids and selection of a purchaser(s) for 1657 Shermer to accommodate the desired type of development .
• Review any proposed redevelopment plans for Green Acres Country Club (916 Dundee Road) .
• Complete work with the Architectural Control Commission and Plan Commission on proposed amendments to the Village Zoning Code concerning the bulk standards associated with unfinished attic space above garages and present recommendations to the Board of Trustees .
• Implement the Village’s Affordable Housing program, following the adoption of new regulations .
• Evaluate the feasibility of expanding additional recycling opportunities .
• Continue participation in the Climate Action Planning Team and development of a climate action plan .
• Work with the Architectural Control Commission and Environmental Quality Commission to comprehensively revise the “green building initiatives” in the Northbrook Municipal Code and Zoning Code .
• Promote the use of tap water and reusable beverage
containers to reduce the use of bottled water .
• Continue to work on Downtown streetscape improvements and design initiatives with the assistance of a consultant(s) .
• Continue to seek opportunities to include projects from the Bicycle and Pedestrian Plan in the construction of other Village projects and to request grant funding for these projects .
• Complete work on the Risk and Resilience Assessment required under the America’s Water Infrastructure Act.
• Continue to identify Village-owned stormwater detention facilities and right-of-ways as candidates for conversion to native plantings to further the Village’s best practice of using prairie plants to help stormwater infiltrate the ground.
• Research and review an incentive program for the conversion of turf grass lawns to native plantings .
northbrook.il.us p5
Sales Taxes Continue to Provide Majority of General Operating Revenues
The General Corporate 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. This fund has the most diverse sources of revenue . The principal revenue sources for FY 20/21 for the General Corporate Fund continued to be the sales tax on retail sales within the Village, property taxes on real property located within the Village, fees for services, and the state income tax. The accompanying chart illustrates actual sales tax collection experience for the past 10 fiscal years combined with an estimate for FY 21/22 . FY 20/21 sales taxes were lower due to the COVID-19 pandemic . FY 21/22 sales taxes are projected to be 9% higher, primarily due to additional local portion of sales taxes collected from certain remote sellers . Total General Fund revenues for FY 20/21 were $40,822,734 .
Retail Sales Tax
As of April 30, 2021, the total sales tax rate was 10 .00% . The state of Illinois base rate is 6 .25%, with 1 .00% of that amount returned to the Village . In addition, the Village imposes a 1 .00% home rule sales tax . Cook County and the RTA also impose a sales tax . Below is a breakdown of the total sales tax:
General Fund Operating Results for FY 20/21
The General Fund reported an overall operating deficit of $3,740,989 before transfers out and bond proceeds as compared to a prior year deficit of $1,112,059. The FY 20/21 deficit was primarily due to revenue losses associated with the COVID-19 pandemic and higher expenditures due to voluntary separation inventive agreements offered to non-sworn employees to reduce future personal expenditures .
On April 30, 2021, the General Fund reserve was at 47% of General Fund revenues . The Village Board has made it a policy objective to maintain an unreserved General Fund balance equal to 40% of revenues .
State 5 .25%Village 2 .00% RTA 1 .00% County 1 .75% Total 10 .00%
Effective July 1, 2018, the rate of the local home rule sales tax increased from .75% to 1 .00% . The increased rate is in line with the prevailing rate charged by municipalities in the area . The home rule sales tax is not applied to sales of automobiles, groceries, and medicine .
11,000,000
12,000,000
13,000,000
14,000,000
15,000,000
16,000,000
17,000,000
2012Actual 2013Actual 2014Actual 2015Actual 2016Actual 2017Actual 2018Actual 2019Actual 2020Actual 2021Actual 2022Projected
Dollars
For Fiscal Year Ending April 30
Sales Tax Collections
Actual FY 2020/21 = $12,671,607
Property Tax21%
Sales Tax28%
Telecom. Tax
4%
State Income Tax11%
Utility Tax2%
Licenses/Permits6%
Fees/Fines/Charges14%
Interfund Transfer
6%
Miscellaneous8%
General Fund Revenues By Source
$0
$10
$20
$30
$40
$50
$60
2014 2015 2016 2017 2018 2019 2020 2021
Millions
General Fund Revenues and Expenditures FY 2014-2021
Expenditures Revenues
p6 PAFR 2021
General Fund Expenditure Breakdown by Department
As the general operating fund of the
Village, the general corporate fund
provides for basic public service
operations - Police, Fire, Public
Works, Code Enforcement, Planning
and Economic Development, etc.
The General Corporate Fund is broken
into the specific departments which
make up the fund. As you can see in
the graph to the right, public safety
(Police and Fire) expenditures account
for the (61%) of the general fund
operations. Total actual expenditures,
not including transfers out, for the
entire fund totaled $44,563,723.
Actual expenditures were $1,103,857
above FY 19/20 actual due to
voluntary separation incentive
agreements offered in FY 20/21. Actual
expenditures were $1,027,928 below
the amended budget due to timing
of capital expenditures and lower
contractual services, offset by voluntary
separation incentive agreement costs.
Actual contractual services and
capital expenditures were lower as
compared to the amended budget
due to lower than anticipated requests
for Northbrook Strong grants, 4th of
July fireworks being cancelled, lower
than budgeted Fire Prevention Bureau
consulting services and timing of
planned capital expenditures.
Detailed quarterly budget reviews
assist the Village Board in keeping a
watchful eye on budgeted revenues
and expenditures and making mid-
year adjustments as necessary.
Legislative – President and Board of Trustees develop policies and enact resolutions and ordinances to ensure the health, safety, and welfare of Northbrook residents.
Administrative – carries out direction of the Board and oversees day to day operations of the Village staff.
Legal – provides for counsel and representation services.
Finance – administers the fiscal operations of the Village.
Information Services – provides information technology
services to support Village operations.
Police – provides law enforcement, maintenance of
order, preservation of property, and crime prevention.
Fire – preserves life and property through planning,
education, enforcement, and emergency intervention.
Public Works – designs, constructs, manages, maintains,
operates, and repairs the Village’s infrastructure and
related assets including the Village water system.
Development and Planning Services – reviews
construction and promotes orderly development within
the Village.
Administrative
6%Legal
2%
Fire28%
Finance
3%Police33%
Legislative1%
Public Works
18%
Development and
Planning Services
5%
Information Service
4%
General Fund Expenditures
By Department
FY 18/19 includes acquisition of the "Grainger Property and Building"
25
30
35
40
45
50
55
2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
General Fund Expenditures
FY 2014 - 2021
(actual, in millions)
Expenditures (in millions)
northbrook.il.us p7
As indicated in the
graphic to the right, the
Village of Northbrook only
receives 9.89 cents for
every dollar of property
tax that is collected. This
compares to 10.05 cents
for the 2019 tax year.
These taxes are used to
support the day-to-day
operations of the Village
as well as our public
safety pension funds and
previously committed
debt service payments.
Village water, sewer,
stormwater services,
senior housing, and
parking facilities are self-
supported through their
own user fees.
While the Village’s assessed
valuation has increased over
time, the Village board has been
committed to keeping property
taxes low while offering a high
quality of services to its residents.
In the last 5 years, the equalized
assessed valuation of the
property within the Village limits
has increased 15%. During the
same time period, the property
tax rate has increased by 23%.
When the economy places
downward pressure on property
values, tax rates rise. Despite the
Village’s efforts to contain costs
and leverage purchasing power,
an increase in the property
tax rate is inevitable given the
inverse relationship between
the property tax rate and the
equalized assessed valuation of
the underlying property. Since
property values hit their peak
in 2009, the property tax rate
has increased by 143%, even
though the actual amount levied
increased by 122% during that
period.
Village Share of Property Tax Bill Decreases Slightly
Village Property Tax Rate Influenced by Assessed Property Values
2.41
2.88
3.113.13
2.89
2.59
2.41
2.15 2.18 2.08
2.482.59 2.53
2.87 2.86
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
3.25
3.5
Tax Levy Year
Village Property Tax Rate per $100 Assessed Valuation vs. EAV
2006-2020
Equalized AssessedValuation (Billions)
Tax Rate
Tax Levy (x $10 million)
2020 EAV = $2,859,973,023
2020 Tax Rate = $0.765
p8 PAFR 2021
Village Resources Invested in Capital Assets
The Statement of Net Position reports information on all of the Village’s assets
and liabilities, with the difference between the two reported as net position.
Net position may serve over time as
a useful indicator of a government’s
financial position. The following tables
show that the Village’s assets exceeded
liabilities by $4.2 million.
Net position was $4.2 million in
FY 20/21, an increase of $2 million.
Of the Village’s net position, $81.1
million was net investment in capital
assets. The Village uses these capital
assets to provide services to citizens;
consequently, these assets are not
available for future spending. An
additional portion of the net position,
$3.6 million, is subject to external
restrictions on how they may be used.
The unrestricted net position
which may be used to finance the
ongoing obligations to its citizens,
creditors, and even pension liability
is negative $80.5 million.
During FY 18/19, the Village implemented
GASB Statement No. 75, related to
the reporting of the total liability and
related items for the postemployment
benefits other than pensions.
Retirees meeting age and service
requirements for retirement may
continue coverage by paying 100%
of the blended average active group
cost. The subsidy is an implied age-
related cost differential based upon
the expected higher cost of coverage
for retired employees versus the
average cost for the entire group.
Beginning FY 14/15, the Village
implemented GASB Statement
No. 68. This statement relates to
reporting of the net pension liability
for the Illinois Municipal Retirement
Fund, the Police Pension Fund, and
the Firefighters’ Pension Fund.
GASB Statement No. 75 and No. 68
require liabilities previously included
in footnotes to the financial statements
to be moved into the statements
themselves and calculated in the
funds’ net positions with the recording
of additional expenses (see page
9 for explanation of expenses).
These changes required inclusion
of $85.3 million in net liability. It is
important to note that this is only
a change in financial reporting
procedure, and does not change the
Village’s actual financial resources.
Village services classified as Governmental Activities
include: police and fire safety, highway and street
maintenance and construction, forestry, building
code enforcement, public improvements, economic
development, planning and zoning, and general
administrative services.
Village services classified as Business-type Activities
include: water, stormwater, and sanitary sewer services,
parking system services, and senior housing services.
As of April 30, 2021
(in millions)
2021 2020 2021 2020 2021 2020
Current, Other Assets 73.9 84.0 20.3 24.9 94.2 108.9
and Deferred Outflows
Capital Assets 99.4 100.2 73.2 71.7 172.6 171.9
Total Assets/Deferred Outflows 173.3 184.2 93.5 96.6 266.8 280.8
Long-Term Debt Outstanding 149.3 183.3 46.9 50.2 196.2 233.5
Other Liabilities/Deferred Inflows 61.4 40.6 5.00 4.5 66.4 45.1
Total Liabilities/Deferred Inflows 210.7 223.9 51.9 54.7 262.6 278.6
Net Position
Net Investment in Capital Assets 51.8 49.4 29.3 29.5 81.1 78.9
Restricted 3.6 3.5 3.6 3.5
Unrestricted -92.7 -92.6 12.2 12.4 -80.5 -80.2
Total Net Position -37.3 -39.7 41.5 41.9 4.2 2.2
Governmental Activities Business-type Activities Total Primary Government
Statement of Net Position
northbrook.il.us p9
Village of Northbrook Financial Activities
The Statement of Activities presents information showing how the Village’s net position changed during the most recent fiscal year.
You’ll notice on the chart below that total revenues are $1.3
million higher than FY 19/20. Charges for services, grants
and property taxes accounted for majority of this increase,
offset by decrease in sales and telecommunications taxes.
The total cost of all programs and services decreased
by $7.7 million, primarily due to decrease in net pension
liability.
As noted below, the net position of the Village’s
governmental activities increased by $2.4 million (negative
$37.3 million compared to negative $39.7 million). The
unrestricted net position of the Village’s governmental
activities was negative $92.7 million (see page 8).
The negative net position is entirely attributable to the
incorporation of GASB Statement No. 68 and GASB
Statement No. 75. The General Fund reported an operating
deficit of $3.7 million before transfers out and bond
proceeds for the fiscal year ending April 30, 2021, mainly
due to revenue losses associated with the COVID-19
pandemic and voluntary separation incentive agreements
cost.
Net position of business-type activities decreased by
$376,168 from the prior year ($41.5 million compared
to $41.9 million). These assets, however, cannot be used
to supplement activities reported in the governmental
funds. The Village generally can only use these net assets
to finance the continuing operations of the waterworks,
sewerage, stormwater, senior housing, and parking funds.
Statement of Activities
As of April 30, 2021
(in millions)
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues
Charges of Services 8.3 8.7 13.0 11.7 21.3 20.4
Capital Grants/Contributions
Operating Grants/Contributions 2.9 1.5 0.2 0.2 3.1 1.7
General Revenues
Property Taxes 22.8 21.1 22.8 21.1
Sales Taxes 12.7 15.0 12.7 15.0
State Income Taxes 4.3 3.3 4.3 3.3
Utility Taxes 1.0 0.9 1.0 0.9
Other Taxes 3.6 4.3 3.6 4.3
Other General Revenues 0.6 1.2 0.1 0.3 0.7 1.5
Total Revenues 56.2 56.0 13.3 12.2 69.5 68.2
Expenses
General Government 7.1 6.3 7.1 6.3
Public Safety 33.8 43.0 33.8 43.0
Public Works 10.4 10.4 10.4 10.4
Interest on Long-Term Debt 2.5 2.4 2.5 2.4
Water 8.3 7.7 8.3 7.7
Sewer 1.9 2.0 1.9 2.0
Storm Water 2.4 2.4 2.4 2.4
Senior Housing 0.9 0.8 0.9 0.8
Parking Facilities 0.2 0.2 0.2 0.2
Total Expenses 53.8 62.1 13.7 13.1 67.5 75.2
Change in Net Position 2.4 -6.1 -0.4 -0.9 2.0 -7.0
Net Position - Beginning -39.7 -33.6 41.9 42.8 2.2 9.2
Net Position - Ending -37.3 -39.7 41.5 41.9 4.2 2.2
Governmental Activities Business-type Activities Total Primary Government
p10 PAFR 2021
Village Enterprise Management Funds
The Village utilizes enterprise funds to account for its waterworks, sewerage, stormwater, senior housing, and parking operations.
The goal of these funds is to be
self-supporting, as if they were their
own business, relying solely on the
revenues received from user fees for
their respective services. Property
taxes, sales taxes, etc., do not support
the provision of these services.
During FY 11/12, the Village
completed work on a Master
Stormwater Management Plan.
Due to the loss of over land flood
routes, outdated infrastructure, and
varying volumes and intensities
of rain, the Village created a new,
community-wide approach to
alleviate flooding issues.
The Stormwater Management
Commission determines which
projects, from neighborhood
improvements to large watershed
designs, are necessary to most
effectively accomplish the goals of:
• Reduced structure flooding/
damage
• Reduced street and front yard
flooding to maintain access for
emergency responders
• Manage property flooding
• Manage development/
redevelopment
A Stormwater Management Fund
with a dedicated revenue source
was created to account for the
maintenance and construction
of the Village’s stormwater
management system.
All activities necessary to provide
these services are accounted for in
this fund, including, but not limited
to, operation, maintenance and
repair, construction, and related
debt service.
System Overviews
Water System:
• Water Mains - 205 miles
• Number of Valves - 2,145
• Number of Fire Hydrants - 2,751
• Water delivered to customers -
1,917,757 gallons
Sanitary Sewer System :
• Sanitary System Mains - 133 miles
Stormwater System:
• Storm Sewers - 123 miles
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Water Fund Sewer Fund Storm WaterFund Senior HousingFund Parking Fund
Dollars
(in
millions)
Revenues vs. Expenses
Enterprise Funds
FY 20/21
Expenses
Revenues
0
1
2
3
4
5
6
7
8
9
Dollars per 1000 gallons
Rates as of April 30
Historical Water, Sewer and Stormwater Rates
Sewer
Storm
Water
Current Rates per 1,000 gallons:Water - $5.88Sanitary Sewer - $1.26
Stormwater - $1.00
northbrook.il.us p11
Village Issues Debt to Finance Capital Projects
The Village issues general obligation bonds to provide funds for streets, stormwater, and water system improvements.
General obligation bonds are direct obligations of the Village and pledge the full faith and credit of the Village . As a home-rule unit of local government, the Village has no legal limit on the amount of debt that can be outstanding .
As the Village faces continuing capital and infrastructure expenses to meet the increasing needs of our community, the Village Board is committed to minimizing its annual debt requirements . The Village conducts detailed analyses of existing debt structures, current and projected cash flows, and potential future debt levels before making a decision to issue each new debt obligation . The term of the bonds will not exceed the useful life of the asset .
In FY 20/21, due to the favorable market conditions, the Village refunded the 2011 bonds and realized $255,000 savings on future interest costs .
As the pie chart illustrates, more than 50% of the General Obligation Bonds are supported by revenue other than property taxes .
Property Tax42%
Home Rule Sales Tax11%
Water User Fees20%
Sanitary Sewer User Fees4%
Stormwater User Fee19%
Motor Fuel Tax4%
General Obligations BondsPayment Sources as of April 30, 2021
2012 Debt Service 3,002,520$
Water 78,460
Stormwater 392,940
2013A Debt Service 5,184,312
Water 1,003,848
Sanitary Sewer 478,022
Stormwater 768,818
2014 Debt Service 12,351,500
Water 3,176,100
Sanitary Sewer 1,411,600
Stormwater 705,800
2015A Debt Service 14,250,000
2015B Debt Service 3,219,330
Water 6,317,430
Sanitary Sewer 902,490
Stormwater 3,030,750
2016 Debt Service 5,521,600
Water 1,062,495
Sanitary Sewer 165,048
Stormwater 10,480,857
2018A Debt Service 5,899,250
Water 6,910,550
Sanitary Sewer 842,750
Stormwater 3,202,450
2018B Debt Service 8,200,000
2019 Debt Service 3,230,000
Water 3,650,000
Sanitary Sewer 135,000
Stormwater 1,885,000
2020 Infrastructure 2,025,000
Total 109,483,920$
Total 112,860,083$
Total Net GO Debt (i.e.
supported by property taxes) $ 49,389,853
General Obligation Bonds Outstanding as of April 30,
2021
Premium on General
Obligation Bonds 3,376,163
Debt Supported by Revenue
Other Than Property Tax (63,470,230)
2012 31,352,425 2,592,235,389 1.21%
2013 29,288,033 2,411,371,438 1.21%
2014 31,831,316 2,145,411,161 1.48%2015 34,583,366 2,184,047,934 1.58%2016 50,419,442 2,076,011,238 2.43%2017 48,181,740 2,483,856,521 1.94%2018 60,060,567 2,590,166,983 2.32%
2019 55,763,681 2,533,423,242 2.20%
2020 56,037,878 2,866,844,264 1.95%
2021 49,389,853 2,859,973,023 1.73%
* Net General Obligation Debt equals gross general
obligation debt less debt supported by a revenue source
other than property taxes
Ratio of Net* General Obligation Bonded Debt to EAV
FY 2012-2021
Year Net G.O. Debt EAV Ratio
General Obligation Bonds Outstanding as of April 30, 2021
1
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Village of Northbrook northbrook .il .us village@northbrook .il .us 1225 Cedar Lane Northbrook, IL 60062
Hours: Monday–Friday, 8:30am–4:30pm
Village Hall 847-272-5050 Village Hall Fax 847-272-1892
Police and Fire Emergency 911
Important Numbers and AddressesPolice Headquarters 1401 Landwehr Road Police Non-Emergency 847-564-2060
Fire Department Headquarters 740 Dundee Road Fire Non-Emergency 847-272-2141
Public Works Center 655 Huehl Road Public Works 847-272-4711
Village Seeks Input for Next Popular Annual Financial Report
The financial data in this report is derived from Generally
Accepted Accounting Procedures (GAAP) amounts, but is
not intended to be a complete financial statement of the
Village of Northbrook nor does it include any component
units of the Village (for example, the Northbrook Public
Library). The summary financial data provided here in the
Popular Annual Financial Report (PAFR) was taken from the
Village of Northbrook Comprehensive Financial Report
(CAFR) as of the fiscal year ending April 30, 2021.
Copies of the CAFR, the full financial statements of
the Village, can be obtained through the Finance
Department, at the Village Hall and on the Village
website at northbrook.il.us/yourtaxdollarsatwork.
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 offer your ideas on how to improve the information
that is provided in future editions, please feel free to
contact the Village of Northbrook Finance Department
at 847-664-4032 or email village@northbrook.il.us
Visit the Village of Northbrook website for current events, forms, maps, meeting agendas, minutes, Village codes, staff contact information, and more at northbrook .il .us
Staff Directory
Village Manager: Cara Pavlicek
Assistant Village Manager: Madeline Farrell
Director of Administrative Services:Debbie Ford Chief Financial Officer:Iwona Petryszak
Deputy Chief Financial Officer:Anita Bozic
Director of Public Works:Kelly Hamill
Fire ChiefAndrew Carlson
Police Chief:Christopher Kennedy
Director of Development and Planning Services:Michaela Kohlstedt
Village Engineer:Matt Farmer
Chief Information Officer: Lori Baker
Facebook .com/northbrookillinoisInstagram: @villageofnorthbrookTwitter: @northbrookgov