HomeMy WebLinkAboutVillage of Algonquin - Public Financial ReportPOPULAR ANNUALPOPULAR ANNUALFINANCIAL REPORTFINANCIAL REPORT
VILLAGE OF ALGONQUIN, ILLINOISVILLAGE OF ALGONQUIN, ILLINOIS
FOR THE FISCAL YEAR ENDED APRIL 30, 2021FOR THE FISCAL YEAR ENDED APRIL 30, 2021
Ted Spella Community Park | Photo credit: Rachel ShieldsTed Spella Community Park | Photo credit: Rachel Shields
Mission Statement
The mission of the people of Algonquin is to foster a harmonious, distinctive
community with a strong sense of place, preserving its ecological and historical
richness, providing a safe and comfortable environment, through a responsible
use of community resources, and developing ownership and pride in the
community through significant citizen involvement in all civic, social, and
cultural affairs.
To this end, we will provide for the needs of today, prepare for the demands of
tomorrow, and Remain mindful and respectful of the past.
Values
Respect
We are committed to fairness, inclusion, justice, compassion, and equal
outcomes for all. We are open-minded and treat all individuals with respect and
dignity.
Integrity
We are committed to the highest ideals of honor and integrity in all public and
professional relationships.
Stewardship
We are committed to our natural, fiscal, and social resources and will care for
such with transparency and openness, further considering how our work will be
sustained by future generations.
Collaboration
We are committed and accountable to organizational success and celebrate our
shared dedication to public service.
Innovation
We are committed to a forward-thinking environment that embraces change and
supports learning, creativity, calculated risks, and continuous improvement.
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report Preface
Message from Village President
The Village of Algonquin is pleased to present our
Popular Annual Financial Report (PAFR) to give
you a snapshot of the Village’s financial condition
and our strategic priorities. A PAFR summarizes
information from the Village’s Comprehensive
Annual Financial Report (annual report or audit)
into a short document that is readily accessible
and easily understandable to our residents and
other interested parties without necessarily
needing a background in public finance to read it.
The fiduciary responsibilities that we have as a Village Board are taken very
seriously. We work tirelessly to set policy that is fiscally-disciplined and that
provides our community with great value to meet the service needs of today,
while making sound investments in our operations and infrastructure for a
successful tomorrow.
If you haven’t already, I encourage you to visit our Transparency Portal online at
www.algonquin.org/transparency to review the specific information about the
Village’s finances, including our budgets, Comprehensive Annual Financial
Reports, expense transactions, Treasurer’s reports, and much more. If you have
specific questions regarding these reports, please contact our Finance staff online
at www.algonquin.org/finance or by phone at 847-658-2700.
Sincerely,
Debby Sosine
Village President
Contents
Message from Village President ....... 1 Expenses ............................................. 6
About Algonquin ............................... 2 Revenue and Expense Trends ............ 7
Statement of Net Position ................ 3 Long-term Debt .................................. 8
Statement of Activities ...................... 4 About PAFR ........................................ 9
Revenues ........................................... 5
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 1
ABOUT ALGONQUIN
Algonquin Government
Algonquin is formally organized under the Trustee-Village form of government,
and combines the strong political leadership of elected officials with the strong
professional experience of an appointed local government administrator. The
Board consists of a President, six Trustees, and a Village Clerk, elected at-large to
serve overlapping four-year terms.
From left to right: Fred Martin, Village Clerk; Brian Dianis, Village Trustee; Maggie Auger, Village Trustee; Jerry
Glogowski, Village Trustee; Debby Sosine, Village President; John Spella, Village Trustee; Laura Brehmer, Village
Trustee; and Bob Smith, Village Trustee.
Major Accomplishments & Initiatives
Village staff, following specific goals of the Village Board and Village Manager,
have been involved in a variety of projects throughout the year. These reflect the
Village’s commitment to ensuring that citizens are provided cost effective and
quality services. Some notable items from the fiscal year include:
➢ acquisition of approximately $5.7 million in federal funding through the
Coronavirus Aid, Relief, and Economic Security (CARES) Act and American
Rescue Plan Act (ARPA);
➢ established the Algonquin Impacted Business Relief program, providing
$15,000 to $25,000 to local businesses impacted by COVID-19;
➢ adoption of the Parks and Recreation Master Plan, which identifies and
outlines strategic goals and projects over the course of the next ten years;
➢ approval of Trails of Woods Creek, a 279-unit residential development
featuring homes ranging from $294,000 to the upper $400,000s;
➢ significant completion of the Old Town Algonquin redevelopment
project, including streetscape and sanitary sewer enhancements.
Algonquin at a Glance…
Incorporated February 25, 1890 Households 11,107
Government Trustee-Village Median Home
Value $255,700
Full-time
Employees 128 Median Family
Income $102,856
Area 12.23 sq. mi. Population with
Bachelor’s Degree 46.2%
Population 29,700 Unemployment
Rate 5.9%
Median Age 40.9 years Poverty Rate 3.5%
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 2
Statistical information sourced through the United States Census Bureau and Illinois
Department of Economic Security.
Algonquin
STATEMENT OF NET POSITION
This Statement of Net Position is presented in much more detail in the Village’s
Comprehensive Annual Financial Report. This is a very high-level summary that
captures total assets and liabilities and compares them to prior years. This may
serve as a useful overall indicator of the Village’s financial position and trends
over the last two years.
The Village’s activities are presented in two following categories:
➢ Governmental activities: include most of the Village’s core services, such
as general government (administration, building, and zoning), public
safety (police), and Public Works (street, parks, and forestry
maintenance). Property taxes and state shared revenues (including sales
tax) finance most of these activities.
➢ Business-type activities: include water and sewer utilities, which are
primarily financed through user fees and charges.
The largest portion of the Village’s net position reflects its investment in capital
assets such as land, buildings and improvements, vehicles, machinery and
equipment, and construction, less any outstanding debt used to acquire those
assets. The Village uses these capital assets to provide services to its citizens;
consequently, these assets are not available for future spending.
Following the Fiscal Year Ended April 30, 2021, the Village’s net position
increased $10.9 million, mostly due to increases in net capital assets. The
Village’s Statement of Net Position is also impacted by several other transactions.
Completion of capital improvement projects in 2021 account for a significant
amount of the increase in net capital assets. Under general government,
construction progress in the Village resulted in a $5.2 million increase, as well as
a $1.9 million increase in improvements other than buildings. An additional
increase of $18.6 million occurred through water and sewer improvements and a
$9.0 million increase in construction progress.
The increase in current and other assets can be attributed to an increase in
other taxes and cash investments. During the fiscal year, other taxes (taxes other
than property, income, and sales taxes) increased $0.8 million and cash and
investments increased $0.6 million.
General government expenses decreased by 8 percent ($2.1 million) compared
to 2020, general government expenses decreased 21 percent ($1.2 million) and
public safety expenses decreased 18 percent ($1.8 million). The decreases were
offset by increases in Public Works expenses, which increased by 9 percent ($0.9
million).
Water and sewer expenses decreased by 18 percent ($2.2 million) following
completion of the Village’s water meter replacement program in 2020.
Statement of Net Position for the Fiscal Year Ended
April 30, 2021
2021 2020
Assets
Current and other assets $ 55,499,098 $ 51,155,732
Capital assets, net 273,945,520 251,157,572
Total Assets $ 329,444,618 $ 302,313,304
Deferred Outflows of Resources
Deferred Outflows $ 3,086,887 $ 3,874,938
Total Assets & Deferred Outflows $ 332,531,505 $ 306,188,242
Liabilities
Current and other liabilities $ 8,249,401 $ 6,353,875
Long-term liabilities 38,759,910 31,924,234
Total Liabilities $ 47,009,311 $ 38,278,109
Deferred Inflows of Resources
Deferred Inflows $ 16,860,752 $ 10,078,496
Total Liabilities & Deferred Inflows $ 63,870,063 $ 48,356,605
Net Position $ 268,661,442 $ 257,831,637
Total liabilities increased by approximately $8.7 million from 2020. The increase
was largely due in part to an increase in non-current liabilities ($16.0 million) for
low-interest loans secured through the Illinois Environmental Protection Agency
(IEPA) for water and sewer improvements. These liabilities were offset by $8.5
million decreases in total liabilities for governmental activities and $1.0 million in
total liabilities for business-type activities.
3 Village of Algonquin, Illinois | 2021 Popular Annual Financial Report
STATEMENT OF ACTIVITIES
Statement of Activities, often referred to as the Village’s income statement,
reflects all of the financial activity for the Village during the fiscal year ended April
30, 2021. This statement presents information to show how the Village’s net
position changed during the year as a result of the financial activity (i.e., revenues
and expenses). Over time, increases or decreases in net position may serve as a
useful indicator of whether the Village’s financial position is improving or
deteriorating. Below is a summarized version of the detailed statement of
activities found in the Village’s Comprehensive Annual Financial Report.
Statement of Activities for the Fiscal Year
Ended April 30, 2021
2021 2020
Revenues
Program Revenues $ 18,734,557 $ 14,687,148
General Revenues 25,442,880 25,493,816
Total Revenues $ 44,177,437 $ 40,180,964
Expenses
Governmental Activities $ 23,340,788 $ 25,515,520
Business-type Activities 10,006,844 12,030,471
Total Expenses $ 33,347,632 $ 37,545,991
Changes in Net Position
Net Position (beginning of year) $ 257,831,637 $ 255,196,664
Changes in Net Position 10,829,805 2,634,973
Net Position (end of year) $ 268,661,442 $ 257,831,637
The Statement of Activities shows that the Village’s total net position has
improved over the beginning net position during the course of the fiscal year.
Revenue trends reflect an increase of $4.0 million, or 10 percent, in total
revenues. Increases in capital grants and operating grants related to a total
increase of $2.5 million mostly due to increases from Motor Fuel tax allotments
($1.0 million); an OSLAD grant for Stoneybrook Park ($0.4 million); Local CURES
reimbursement ($0.9 million); and Coronavirus Relief Fund grant ($0.5 million).
Modest increases in Income tax ($0.5 million) and Sales and Use tax (0.3 million)
were also contributing factors.
Total expenses decreased $4.3 million, or 11 percent, primarily due to
government wide adjustments for capital assets and police pension expenses.
Despite decreases in overall expenses, the Village continued to complete
substantial capital projects throughout the Village during the year:
➢ Wastewater Treatment Facility Improvements Phase 6B: $12.7 million
➢ Terrace Hill Road Construction: $4.6 million
➢ Randall Road Watermain Relocation: $1.2 million
Moreover, significant projects completed in Old Town Algonquin included:
➢ Downtown Streetscape Utility Improvements: $7.6 million
➢ MCCD Trailhead & La Fox River Drive Bridge Improvements: $1.8 million
A tax increment financing (TIF) district was established in the Old Town Algonquin
to help facilitate and finance infrastructure improvements in the area, ultimately
leading to private redevelopment and investment in this beautiful, pedestrian-
friendly business district.
Revenue and Expense History
Revenues and expenses over the five-year period shown above are stable. In
response to the pandemic, the Village adopted a Financial Resiliency Plan which
has resulted in decreased expenses in 2020 and 2021. Increases in revenues
shown during the most recent year can be attributed to funding received through
grants, such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The Village’s overall financial condition is strong and stable and current financial
policies have provided opportunities for continued investment in programs and
services that make Algonquin great.
$-
$15,000,000
$30,000,000
$45,000,000
2017 2018 2019 2020 2021
Expenses Revenues
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 4
REVENUES
The Village Board and management are focused on efforts to maintain long-term
financial health through diversified revenue sources while strategically investing
in community initiatives. These decisions range from increasing efficiencies to
using valuable intergovernmental partnerships to maintain municipal service
value to residents.
Total Primary Government Revenue by Source
Over 95 percent of Village revenues are comprised of the following categories:
intergovernmental, taxes, and charges for services. Intergovernmental revenues
are distributed by the State of Illinois and include sales and use tax and income
tax. Locally assessed taxes include property tax and home rule sales tax. The
charges for services category is made up of primarily water and sewer utility user
fees. Other sources of revenue the Village receives include licenses and permits;
fines and forfeitures; investment income, and miscellaneous revenue.
Overall, the Village benefits from large concentrations of sales tax and home rule
sales tax revenue, as a significant portion of this revenue stream is paid by non-
residents.
Property Tax Breakdown
School Fire County Village Other
60% 10% 9% 6% 15%
Several taxing bodies comprise local property tax bills in Algonquin. The Village
portion of the property tax is approximately 6 percent. In other words, for every
dollar that is paid by residents in property tax, the Village receives six cents.
Schools, fire protection, county, and other taxing bodies (library, township,
conservation, community college, etc.) comprise the remainder of the property
tax bill.
Property Tax Rate History
The Village’s property tax rate remains flat following considerable reductions in
recent years with little to no change in service quality. Recent property tax levy
freezes, combined with new construction growth and increases in equalized
assessed valuation, have led to lower property tax rates over the past five years.
40%
27%
29%
4%
Intergovernmental
Taxes
Charges for Services
Other
0.66 0.62 0.59 0.57 0.57
0.00
0.20
0.40
0.60
0.80
1.00
2016 2017 2018 2019 2020
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 5
EXPENSES
The chart below illustrates the uses and percentages of the Village’s expenses
across all funds totaling $33.3 million for the fiscal year ending 2021. The majority
of expenses relate to public safety (police) and Public Works (operations,
maintenance, and construction), with waterworks and sewerage and general
government (administration) making up the remainder.
Total Primary Government Expense by Source
General Government expenses are incurred by the Village’s administrative
departments, including the Village Manager’s Office, Finance, Human Resources,
Innovation & Technology, Recreation, Community Development and other non-
departmental costs.
Public Safety expenses are those incurred by the Village to provide police services
to the public.
Public Works expenses are related to the design, construction, maintenance, and
operation of all roadways, sidewalks, trails, parks, forestry, drainage, and related
infrastructure within the Village.
Debt Service (Interest/Fees) reflects the interest costs for long-term debt, such as
bonds and loans. This does not include any interest costs on water/sewer-related
debt.
Water and Sewer expenses are those incurred by the Village to provide:
1. pumping, treatment, and distribution of potable water;
2. sanitary sewer conveyance and treatment of wastewater.
Annual Comparison of Total Primary
Government Expenses
A year-to-year comparison of expenses show decreases in every category
except Public Works. Decreases in public safety expenses can be attributed to
personnel costs (salaries) and government-wide adjustments in police pension
expenses. Similarly, general government experienced decreases in personnel
costs, professional services, and government-wide adjustments in capital assets,
while water and sewer experienced a subtle decrease. Increases in public works
expenses are primarily attributed to government-wide adjustments in capital
assets and personnel costs. A decrease in expenses related to debt service
resulted from maturity of Bond Series 2014A, which completed repayment in
2020.
16%
28%
37%
18%
General Government
Public Safety
Public Works
Waterworks & Sewerage
$-
$3,000,000
$6,000,000
$9,000,000
$12,000,000
General
Government
Public Safety Public Works Debt Service Water &
Sewer
2020 2021
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 6
REVENUE AND EXPENSE TRENDS
Revenue Trends
The General Fund, which serves as the Village’s primary checking account to fund
day-to-day operations, is comprised of several sources of revenue (or income).
Similar to a typical household, there are a couple of revenue streams that make
up most of the Village’s overall revenue. This includes sales tax, property tax, and
income tax. These revenues sources account for approximately 81 percent of
General Fund revenue.
Annual General Fund Revenues by Source
In the five-year period shown above, the three major revenue sources in
aggregate are flat, comprising of approximately $18.4 million of revenue
annually. Sales tax, the largest of the three revenue sources, decreased in 2021
by $247,000. This is the third consecutive year that this revenue item decreased
since 2013. Property tax over this period has remained flat; however, the tax levy
was increased slightly in 2021 to capture new growth in the Village. Income tax
increased by $481,000 in 2021, which offsets decreases in other tax revenues for
the Village and offers some additional revenue to fund Village operations and
mitigate the continued impacts of COVID-19.
Expense Trends
In 2021, the Village had $22.0 million in General Fund expenses, which includes
transfers to other funds. Of this total, approximately $9.6 million (44 percent)
was allocated to police and public safety. Public Works is the next largest
expense category in the General Fund, allocating approximately $4.3 million for
day-to-day maintenance activities.
Annual General Fund Total Expenditures
Over the five-year period shown, annual General Fund expenses (excluding
transfers) have declined 7.8 percent through 2021. General government
expenses decreased $1.1 million due mainly to reductions in expenses for
professional services ($0.3 million) and the swimming pool ($0.3 million), which
did not open during the 2020 season due to COVID-19.
Personnel expenses (salaries, health insurance, pension, social
security/Medicare, etc.) are the largest expense category in the General Fund,
comprising of 60 percent of overall expenses. During 2021, these expenses
reduced $0.3 million through a combination of reducing overtime, pooling health
insurance benefits with other municipalities, increasing the use of part-time and
seasonal employees, and utilizing contracted services.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
2017 2018 2019 2020 2021
Property tax Sales tax Income tax
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
2017 2018 2019 2020 2021
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 7
LONG-TERM DEBT
As of April 30, 2021, the Village had $24.5 million in long-term debt outstanding
with $1.0 million due within one year. The outstanding debt relates to general
obligation bonds and low-interest loans administered through the Illinois
Department of Environmental Protection (IEPA).
General Obligation Bonds
General obligation bonds are direct obligations and pledge the full faith and credit
of the Village and are payable from both governmental funds and business-type
funds. These bonds are used to finance long-lived capital improvements,
including the construction and improvement of Village facilities. Water and sewer
utility revenues are pledged as repayment for the Wastewater Treatment Facility
expansion debt (Bond Series 2013). Bond Series 2013 is scheduled to mature on
April 1, 2025.
Bonded Debt per Capita
The graphic above displays the Village’s bonded debt per capita for Bond Series
2013. The level of debt per capita is a good measure of a government’s ability to
pay its debt service costs through its current levels of tax revenue. The lower the
level, the greater capacity the government has. The Village’s bonded debt per
capita has decreased 69 percent in the five-year period shown and will continue
this trend as the Village continues to pay off its debt service.
The Village continues to maintain excellent investment grade ratings on its
outstanding general obligation bonds, rated “AAA” by Standard & Poor’s rating
service. The AAA rating is the highest possible rating the agency provides, and
indicates a minimal risk to investors and achieves cost-savings to the Village via
lower interest rates. This is largely achieved by the Village Board’s goal of strong
financial management by continuing to diversify the Village’s revenue base and
maintaining strong fund balance reserves in the General Fund.
IEPA Loans
During the fiscal year ended 2020, the Village acquired funding for capital
improvements through the Illinois Environmental Protection Agency (IEPA) low-
interest loan program. These capital projects include additional improvements to
the Wastewater Treatment Facility and other water and sewer improvements.
IEPA Loaned Debt per Capita
As shown above, the Village’s loaned debt per capita for the IEPA loans has
increased with the acquisition of debt for the capital projects listed above. The
increase when compared to 2020 is largely due in part to the issuance of two
additional loans for water and sewer improvements. The payable balances on the
debt service for all three loans totals $21.3 million. The acquisition of the loans
allows the Village to distribute the costs of the capital improvements over time.
Distributing the costs allows the Village to manage additional financial obligations
and pursue additional capital projects as needed.
$264.10
$222.85
$179.26
$134.24
$81.25
$-
$75
$150
$225
$300
2017 2018 2019 2020 2021
$122.69
$709.50
$-
$200.00
$400.00
$600.00
$800.00
2017 2018 2019 2020 2021
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 8
ABOUT PAFR
We are proud to present the Village of Algonquin Popular Annual Financial Report
(PAFR) for the fiscal year ended April 30, 2021. The purpose of the PAFR is to
provide a user-friendly summary of the financial position of the Village of
Algonquin and other interesting information for citizens who want a better
understanding of the Village’s finances. The financial information in the PAFR is
taken from the Village’s Comprehensive Annual Financial Report (annual report
or audit). The annual report outlines the Village’s financial position and operating
activities each fiscal year presented in conformity with generally accepted
accounting principles (GAAP) and includes financial statements audited by Sikich,
LLP, an independent firm of certified public accountants. The auditors’ report
concluded that the financial statements fairly reflect the financial condition of the
Village in all material respects.
While the numbers in the PAFR come from an audited source, they are presented
in a summarized, unaudited non-GAAP format that is more accessible to the
public. Citizens who wish to review the audited, GAAP-based, full disclosure
financial statements can refer to the Village’s annual report available on the
Village’s website at www.algonquin.org/transparency or contact the Village at
2200 Harnish Drive, Algonquin, IL 60102. For more information, please contact
Michael Kumbera, Assistant Village Manager, at michaelkumbera@algonquin.org
or Susan Skillman, Comptroller, at susanskillman@algonquin.org.
Stoneybrook Park was reconstructed during the fiscal year, partially with funding secured through
an Open Space and Land Acquisition Development (OSLAD) grant from the Illinois Department of
Natural Resources (IDNR). The park offers open space and walking paths; basketball and tennis
courts; bocce ball, cornhole, and gaga ball facilities; off-street parking and updated playground
equipment.
Interested in Learning More?
If you are interested in learning more about the Village, remember that you can
view documents such as the Village’s budgets, annual reports, and community
survey results online at www.algonquin.org/transparency.
Connect with Us at…
Village Website
At the Village website, www.algonquin.org, visitors may...
➢ Make payments towards building permits, municipal citations, and water
and sewer utility bills;
➢ Read official documents such as budgets, audits, and community surveys;
➢ Submit permit application and Freedom of Information Records Request
forms;
➢ View meeting agendas and minutes of the Village Board, Committee of
the Whole, and various Village commissions.
Algonquin e-News
Subscribe to the Algonquin e-News for monthly updates from the Village at
www.algonquin.org/e-news.
Social Media
Village of Algonquin, Illinois | 2021 Popular Annual Financial Report 9