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Home My WebLink AboutVillage of Skokie - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT VILLAGE OF SKOKIE ILLINOIS FOR THE FISCAL YEAR ENDING APRIL 30, 2021 www.skokie.org @VillageofSkokieGov @VillageofSkokie Village of Skokie Dear Skokie Residents and Businesses, The Village believes that strong communication with our residents, business owners and stakeholders, is vital in order to maintain a responsible and responsive government. To continue this long-standing practice, we are pleased to present the Popular Annual Financial Report (PAFR). This is the first time that the Village has created this report and hopes that the information inside provides an overview of the Village's financial situation, property tax levy, debt and economic development efforts for the fiscal year ending April 30, 2021. The PAFR is a snapshot of data representing the financial activities of the Village and is drawn from information found in the 2020-2021 Comprehensive Annual Financial Report (CAFR) which represents the Village's audited financial statements. The Village received a favorable opinion from independent auditors affirming that the financial statements contained within the CAFR are presented in conformity with the generally accepted accounting principles (GAAP). It is important to note that the information contained in the PAFR omits certain detailed financial information for Fiduciary funds and is not intended to replace the financial statements and note disclosures contained in the CAFR, but rather to provide the reader with a general understanding of the Village's financial activities without having to have a background in government finance. For those interested in viewing current and previous versions of the CAFR, annual budget and more, visit the Village's website at www.skokie.org and choose Transparency under the Your Government tab. Thank you for the active role that you play in the Village and community. We hope you find this report to be a glimpse into the Village's finances and operations. Sincerely, POPULAR ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING APRIL 30, 2021 G E O R G E V A N D U S E N Mayor INSIDE THIS REPORT 2 Introduction 3 About Skokie 4 Elected Officials 4 Village Government 5 About Government Finance 6 Financial Highlights 7 Condensed Financial Statements 8 Revenues & Expenditures 9 Village Debt 10 Property Taxes 11 Economic Development 12 Village Directory LETT E R FROM THE MAYOR 2 The Village of Skokie, Illinois, located 16 miles northwest of downtown Chicago and 12 miles east of O'Hare International Airport, provides high-quality government services to over 24,000 households and 2,400 businesses. Skokie was founded in the mid-1800s by Henry Harms, a Prussian immigrant, and was originally named the "Village of Niles Centre." Skokie began as a farming community but grew rapidly as railroad advancements allowed more people from Chicago to reach its borders. At one point, Skokie's population grew so rapidly that Skokie was established as "The World's Largest Village." Today, Skokie is home to over 67,000 residents and is rich in cultural and ethnic diversity. Accessibility to transportation is a key advantage in Skokie, with the Edens Expressway (Interstate 94) spanning the community's western edge, seven Chicago Transit Authority and 10 Pace suburban bus lines and the CTA's Skokie Swift rail line offering numerous options for public transportation. Those looking to shop in Skokie don't have to look far. Located on its northern edge is Westfield Old Orchard, one of Illinois' largest outdoor shopping malls and home to numerous nationally recognized restaurants and stores. On Skokie's southern edge is the Village Crossing Shopping Center which offers a variety of national retail outlets and dining options. Skokie's downtown district hosts the Illinois Science + Technology Park, multiple mixed-use developments and an appealing mix of unique retailers and restaurants. In addition to its abundant retail, Skokie was the first community in the entire United States to have nationally accredited Fire, Police and Public Works Departments. These superior services together with one of four state certified, municipal Health and Human Services Departments, the nationally acclaimed Skokie Park District, superb Skokie Public Library, preeminent North Shore Center for the Performing Arts in Skokie, exceptional Skokie Northshore Sculpture Park and outstanding school districts make Skokie an excellent place to live. ABOUT SKOKIE Skokie Snapshot Population (2020 Census)..............................................................67,824 Per Capita Income........................................................................$37,484 Median Household Income............................................................$82,798 Total Taxable Assessed Value..........................................$2,834,532,480 Current Village Bond Rating (Moody's)................................................Aa2 Number of Full/Part-Time Employees.........................................454/93.5 3 YOUR GOVERNMENT 4 George Van Dusen Mayor george.vandusen@skokie.org Pramod Shah Clerk pramod.shah@skokie.org James Johnson Trustee trustee.johnson@skokie.org Khem Khoeun Trustee trustee.khoeun@skokie.org Ralph Klein Trustee rklein.webinfo@skokie.org Keith A. Robinson Trustee info-krobinson@skokie.org Alison Pure Slovin Trustee info-aslovin@skokie.org Edie Sue Sutker Trustee esutker.webinfo@skokie.org Village Elected Officials Village Government The Village of Skokie is a home-rule unit under the 1970 Illinois Constitution. Skokie's Council-Manager form of government was inaugurated in 1957, when residents overwhelmingly voted to adopt the Council-Manager form. This government system combines the strong political and policy making leadership of elected officials, such as the Mayor and Board of Trustees, with the strong managerial experience of an appointed village manager. Skokie's Village Board includes the Mayor, Village Clerk and Board of Trustees who are the leaders and policy makers elected to represent the community and to concentrate on policy issues that respond to citizens' needs and wishes. In Skokie, six Trustees serve on an "at large" basis and do not represent any one particular geographical area of the community. The Village Manager is appointed by the Mayor and Board of Trustees to carry out policy and ensure that the entire community is being serviced. The Village Board meets on the first and third Monday of every month at 8:00 p.m. at Village Hall. The Village of Skokie, like many municipalities, uses an accounting system known as "fund accounting." Fund accounting is a form of accounting where assets and liabilities are grouped according to the purpose for which they are to be used. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds The Village maintains 16 individual governmental funds which represent the majority of the Village's activities. Resources in these funds are intended to be expended within a specific period of time, usually a budget year. Their primary function is to measure the flow of resources, in the form of revenues and expenditures, into and out of the funds. Skokie's Governmental Funds include the General Fund, Special Revenue Funds, Debt Service Fund and the Capital Projects Fund. Proprietary Funds The resources in these funds are not meant to be exhausted within a specific time period. Their activities more closely resemble ongoing profit making businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. The Village maintains two different types of proprietary funds, Enterprise Funds and Internal Service Funds. Enterprise Funds account for activities which are usually self-sustaining through user charges for the service. The Village uses Enterprise Funds to account for its municipal water operations (Water Fund), its parking system operations, and the operations of the Northshore Center for the Performing Arts (Performing Arts Center Fund). Internal service funds are used to accumulate and allocate costs internally among the Village’s various functions. The Village uses an internal service fund to account for its risk management (insurance) operations. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The Village maintains two Fiduciary Funds for Police and Fire Pensions. ABOUT GOVERNMENT FINANCE 5 Special Revenue Skokie Finances Governmental Proprietary Fiduciary General Fund Debt Service Capital Fund Motor Fuel Tax CDBG IMRF NSCVB TIF Enterprise Internal Service Water Fund Performing Arts Center Fund Risk Management Police Pension Fire Pension At the close of the most recent fiscal year, the assets of the Village’s governmental activities exceeded its liabilities by $39,167,068 (net position). In total, net position from operations increased by $14,501,346. A review of the factors contributing to this increase is contained on page 7 of this report. As of the close of the current fiscal year, the Village’s governmental funds reported combined ending fund balances of $33,568,869, an increase of $2,494,830 in comparison with the prior year. General revenues (net of transfers) accounted for $75,788,077 in revenue or 78.5% of all governmental activities revenues. Program specific revenues in the form of charges for services, fees, and grants accounted for $20,722,518 or 21.5% of total governmental activities revenues of $96,510,595. In FY21, the Village retired $4,035,000 of long-term debt and no new debt was issued. The unemployment rate for the Village as of April 2021 decreased to 7.1%, down from 19% the prior year. The reduction is indicative of the improved labor market at year end thanks to the easing of COVID-19 restrictions. The total taxable assessed value in the Village increased by $58 million over the prior year, due in large part to the continued efforts to reassess commercial property more in line with market values. Fiscal year 2021 saw continued reductions to revenue from the spread and mitigation efforts against COVID-19. Sales, use, food and beverage, transfer, hotel, and telecom taxes were down compared to prior year by a combined 8.7%. FY21 FINANCIAL HIGHLIGHTS 6 CONDENSED FINANCIAL STATEMENTS 7 Statement of Net Position The Statement of Net Position presents information on all of the Village’s assets/deferred outflows and liabilities/deferred inflows, with the difference between the two reported as net position. Simply stated, it is total assets minus total liabilities. Over time, increases or decreases in the net position may serve as a useful indicator of whether the Village’s financial position is improving or deteriorating. At the close of the most recent fiscal year, assets exceeded liabilities by $104,897,152, a 13.8% increase from the previous year. The largest portion of the Village’s net position reflects its net investment in capital assets (e.g., land, construction in progress, streets and land improvements, buildings, furniture, equipment and vehicles, water storage tanks, meters, pump houses, and hydrants, and underground water and sewer system). The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Another portion, restricted net assets ($14,500,862), represents resources that can only be used for the redemption of debt, purposes specified by law, or are subject to other external pending restrictions. The remaining balance of unrestricted net position may be used to meet any other of the Village’s ongoing obligations. REVENUES & EXPENDITURES 8 Change in Net Position Below is a summary of the changes in Skokie's Net Position. The Governmental activities' net position increased by $7,816,346 over the prior year net position due largely in part to marked reductions in all three public pension funds thanks to improved market performance during the fiscal year. Respectively, the IMRF, Police and Fire pension funds reported reductions in net pension liabilities of $10.3 million, $17.5 million, and $9.1 million. The business-type activities increased the Village's net position by $6,685,000. This is largely due to decreased expenses in the Water fund as a result of one-time adjustments recorded in the prior year pertaining to contingent liabilities related to water rate negotiations with the City of Evanston. VILLAGE DEBT 9 The Village’s outstanding debt can be compared to owing a balance on several mortgages. Each year the Village makes debt payments on outstanding bonds. Each bond has a different maturity (pay-off) schedule, which has historically not exceeded 20 years. Although the Village pays down the outstanding balance every year, the annual payment remains relatively steady year over year, unless a bond is completely matured and retired. The following chart illustrates this principle, that even though the outstanding debt balance is paid down each year, the annual payment remains relatively the same Principal and Amounts to be Paid by Property Taxes Due to the Village’s very strong tax base, the Village has relied on non-property tax revenues to support debt service requirements for many years. The Village has dedicated revenues such as a portion of the hotel/motel tax, home rule sales tax, and telecommunications taxes to mitigate reliance on the property tax for debt. As a home rule municipality, the Village is not subject to any legal debt limits. Lowest Risk Highest Risk Aaa Aa1, Aa2, Aa3 A1, A2, A3 Baa1, Baa2, Baa3 Ba1, Ba2, Ba2 B1, B2, B3 Caa1, Caa2, Caa3 Ca C Moody's Long-Term Debt Rating Scale Moody’s Investors Service has assigned an Aa2 rating to the Village's outstanding municipal bond issues. Aa2 ratings are judged to be of high quality and are subject to very low credit risk. PROPERTY TAXES 10 In 1990, the Village of Skokie froze its property tax levy at $15.4 million. Over thirty-one years later, the Village's annual property tax levy remains the same. This is in part to strategic economic development and the austere budgeting measures that the Village has undertaken. The below 'dollar bill' tax allocation graphic shows, on top, the approximate per-property percentage of property taxes assessed by various entities in 1990, and the bottom graphic is adjusted to the 2020 tax bill allocation percentages. As can be seen, the Village's portion of an average property tax bill is approximately 6.24 percent, a 10 percent decrease from what the Village collected when the property tax freeze was first instituted in 1990. 1990 2020 Less than 7¢ of every dollar that is paid in property tax goes to the Village of Skokie. ECONOMIC DEVELOPMENT 11 Economic Development in the Village of Skokie continued at brisk pace this Fiscal Year, with a total construction value reaching $105 million. Here are some of the many projects that the Village accomplished in FY21: Completion of the 8000 North Parking garage in Downtown Skokie. Construction on the residential tower began in October 2020 with substantial completion expected by winter 2021. The 8000 North project includes 153 luxury residential rental units, approximately 14,000 square feet of retail space and 240 parking spaces. Building occupancies are expected to begin in early 2022. Northfield Group Ltd. recently completed a $12 million, 40-unit mixed use project at 8025 Skokie Boulevard. Named the BLVD., this project began pre-leasing in March 2021 with nearly half of the units leased within the first five weeks. This project is the first multi-family rental residential project built as such in Skokie in over 50 years. Additionally, the BLVD. features two ground floor commercial spaces which are approximately 1,500 square feet each. Following several years of Village efforts to market the property at 4901 Main Street for potential brewery/taproom purposes, the owners of Evanston-based Sketchbook Brewing Company signed a lease for the property. Construction commenced in early 2020 and continued during the pandemic with production of the brewery and opening of the taproom occurring in spring/summer 2020. The brewery has partnered with the Village on a variety of initiatives with local restaurants via food truck and pop-up events. Luxury on Lincoln, a 16-unit townhome development began construction in early 2020 with the last remaining units expected for occupancy during the first half of 2022. This highly successful project sold out much quicker than expected as all units were under contract prior to the beginning of construction. Approximately 53 Skokie-based small businesses received a total of $220,000 in grants for COVID-related costs and assistance during the pandemic ranging from $2,000 - $5,000 under the Village’s CDBG-CV Small Business Assistance program. VILLAGE DIRECTORY 12 John Lockerby, Village Manager 847-933-8210 • john.lockerby@skokie.org Nick Wyatt, Assistant Village Manager 847-933-8283 • nicholas.wyatt@skokie.org Michael Lorge, Corporation Counsel 847-933-8270 • michael.lorge@skokie.org Brian Baker, Police Chief 847-982-5910 • brian.baker@skokie.org Jeffrey Hoeflich, Fire Chief 847-982-5963 • jeffrey.hoeflich@skokie.org Max Slankard, Public Works Director 847-933-8272 • max.slankard@skokie.org Russ Rietveld, Engineering Director 847-933-8289 • russ.rietveld@skokie.org Mike Charley, Health & Human Services Director 847-933-8251 • michael.charley@skokie.org Matt Brandmeyer, Community Development Director 847-933-8448 • matt.brandmeyer@skokie.org Leonard Becker, Economic Development Manager 847-933-8471 • leonard.becker@skokie.org Debra Stinson, Human Resources Director 847-933-8212 • debra.stinson@skokie.org Julian Prendi, Finance Director 847-933-8246 • julian.prendi@skokie.org Tomasz Tarasiuk, IT Director 847-933-8414 • tomasz.tarasiuk@skokie.org Debra Prottsman, Risk Manager 847-933-8282 • debra.prottsman@skokie.org Village Hall General Information 847-933-0500 • info@skokie.org Mayor's Office 847-933-8269 Manager's Office 847-933-8210 Police Non-Emergency 847-982-5900 Health & Human Services 847-933-8252 Building & Zoning 847-933-8223 Village Facilities Village Hall 5127 Oakton St. Skokie, IL 60077 Police Department 7300 Niles Center Rd. Skokie, IL 60077 Public Works 9050 Gross Point Rd. Skokie, IL 60077 Fire Department Station 16 (HQ) 7424 Niles Center Rd. Skokie, IL 60077 Fire Department Station 17 8157 Central Park Ave. Skokie, IL 60077 Fire Department Station 18 9024 Gross Point Rd. Skokie, IL 60077 Northshore Center for the Performing Arts 9501 Skokie Blvd. Skokie, IL 60077 Village Staff