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Home My WebLink AboutCity of Geneva - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING APRIL 30, 2021 INF ORMATION FRO M THIS DOCUMENT CAN B E FOUND IN OUR ANNUAL COMPREHENSIVE FINA NCIAL REPORT AT WW W.GENEVA.IL .US 2021 GENEVA, ILLINOISCITY OF Dear Residents, The City of Geneva is pleased to present the Fiscal Year (FY) 2021 Popular Annual Financial Report (PAFR). As City staff, we strongly believe in maintaining good communication with our residents to promote transparency and responsible government. This report is designed to provide a summary view of the City’s financial activities for the three largest City funds. The information in this report is based on the City’s FY 2021 Annual Comprehensive Financial Report (ACFR) which represents the City’s official audited financial statements and conforms to the generally accepted accounting principles (GAAP). All information in this report and about all other City funds not mentioned in this report can be found in greater detail in the City's ACFR, which is available on the City’s website at www.geneva.il.us. The City received its eighth consecutive Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) of the United States and Canada for the fiscal year ending April 30, 2020. The Certificate of Achievement is considered the highest form of recognition in the area of government accounting and financial reporting. Additionally, the City received its eleventh consecutive Distinguished Budget Presentation Award from GFOA for the fiscal year beginning May 1, 2021. For the fifth year in a row, the City was awarded the Outstanding Achievement in Popular Annual Financial Reporting for FY 2020. These awards show the City’s commitment to fiscal accountability and integrity. We hope upon reading this report, you will have greater insight into the City’s financial condition. If you have any questions or comments regarding the information in this document or any City financial report, please contact the Finance Department at 630.232.0854. Sincerely, Stephanie K. Dawkins Rita Kruse CITY ADMINISTRATOR FINANCE DIRECTOR A LETTER FROM MANAGEMENT TABLE OF CONTENTS Letter from Management...................... About Geneva.................... Officials and Management...................... Fiscal Condition................. General Fund...................... Electric Fund........................ Water/Sewer Fund.......... Property Tax Assessment........................... Property Tax........................... Sales Tax.................................. Long Term Debt................... Capital Improvement Program................................... Glossary................................... 2 3-4 5 6 7-8 9 10 11 12 13 14 15 16 City of Geneva, Illinois 2 CITY HALL 630.232.7494 FINANCE 630.232.0854 PUBLIC WORKS 630.232.1501 BUILDING DIV. 630.262.0280 COMMUNITY DEV. 630.232.0818 ECONOMIC DEV. 630.232.7449 POLICE 630.232.4736 FIRE 630.232.2530 WEBSITE www.geneva.il.us CONTACT INFORATION Popular Financial Annual Report 2021 3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20% 15% 10% 5% 0% 1860 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2021 25,000 20,000 15,000 10,000 5,000 0 ABOUT THE CITY OF GENEVA Founded in 1835 and selected as the Kane County seat, Geneva is located in the Fox River Valley about 40 miles west of Chicago. The City of Geneva, a non-home rule community, is known for an exceptional quality of life with abundant recreational opportunities and open space, a full selection of shopping, and quality employers. The City is also known for its historic downtown business district, the Geneva Commons Lifestyle Shopping Center, the Geneva Business Park, Kane County Cougar baseball, festivals, bike trails and more. TOP TEN EMPLOYERS (2021) EMPLOYER EMPLOYEES 1. Northwestern Medicine Delnor Hospital 2. Geneva School District #304 3. Hearthside Food Solution 4. Geneva Park District 5. MSI Express 1,600 909 450 391 360 6. Clarios, LLC 7. Kane County 8. Burgess Norton 9. Fox Valley Orthopedics 10. FONA International 320 312 257 250 221 EMPLOYER EMPLOYEES Source: City of Geneva, Economic Development Department. 2021 Illinois Manufacturers Directory, 2021 Illinois Services Directory, and a selective telephone survey. Median Household Income Median Home Value Per Capita Income Total Housing Units Total Companies Persons in Poverty High School Graduate or Higher Full-Time City Positions 2019 Equalized Assessed Value $111,916 $338,300 $53,704 8,302 2,768 3.9% 96.1% 151 $1,072,103,159 GENEVA FACTS Source: 2015-2019 American Community Survey 5-year profiles from the U.S. Census BureauInternet site; and Geneva ACFR FY 2021.Source: IL Department of Employment Security, Economic Information& Analysis Division. UNEMPLOYMENT RATE POPULATION 21,393 6.4% MORE ABOUT GENEVA City of Geneva, Illinois 4 Besides being a popular dining and shopping destination, Geneva is the host of multiple events throughout the year. The largest festival is Swedish Days, which features family-friendly activities, live musical entertainment, a carnival, Kids’ Day fun, Sweden Väst, a Grand Parade, and multi-ethnic food. Other events include the Festival of the Vine, Shakespeare in the Park, Concours d’Elegance (featuring classic automobiles), the French Market (Sundays April-November), RiverPark Concerts, and the Geneva Art Fair. Contact the City of Geneva (630.232.7494) or the Geneva Chamber of Commerce (630.232.6060) for more information regarding events and festivals in Geneva. The City of Geneva was awarded its fifth Popular Annual Financial Reporting (PAFR) award for the fiscal year 2020. This was the fifth consecutive year the City prepared a PAFR. The PAFR is a summary of the Annual Comprehensive Financial Report (ACFR) issued by the City and is meant to communicate financial information to residents in an easy, condensed fashion. Geneva Wins its 5th PAFR Award! The City received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) of the United States and Canada, as well as the Distinguished Budget Presentation Award. The City prides itself on its outstanding service delivery and its commitment to providing its residents with quality living. ELECTED OFFICALS Popular Financial Annual Report 2021 5 The Geneva City Council is comprised of a Mayor, City Clerk, City Treasurer, and ten Alderpersons elected from five wards (serving four-year, staggered terms). The Mayor, Clerk, and Treasurer are elected at-large. Alderpersons are elected by ward, two per ward. The Mayor, with the advice and consent of the Council, appoints a full-time City Administrator who is responsible for the day-to-day operations of the City. Together, these individuals lead the City. (As of April 30, 2021) (AS OF APRIL 30, 2021) CITYTREASURER CITIZENS OF GENEVA MAYOR &CITY COUNCIL CITYCLERK CITY ADMINISTRATOR'SOFFICE ADMINISTRATIVESERVICES COMMUNITYDEVELOPMENT ECONOMIC DEVELOPMENT FIRE POLICE PUBLIC WORKSFINANCE ADMINISTRATION HUMANRESOURCES INFORMATIONTECHNOLOGIES BUILDING& ZONING PLANNING OPERATIONS PREVENTION SUPPORT SERVICES OPERATIONS ELECTRIC ENGINEERING STREETS& FLEET WATER &WASTEWATER CITY COUNCIL MAYOR Kevin Burns CITY CLERK Roger Godskesen CITY TREASURER Patrick McQueeny 1ST WARD Tara Burghart Mike Bruno 2ND WARD Richard Marks Michael Clements 3RD WARD Becky Hruby Dean Kilburg 5TH WARD Craig Maladra Robert Swanson 4TH WARD Gabriel Kaven Jeanne McGowan SENIOR MANAGEMENT TEAM CITY ADMINISTRATORStephanie K. Dawkins DIRECTOR OF COMMUNITY DEVELOPMENTDavid DeGroot DIRECTOR OF ECONOMIC DEVELOPMENTCathleen Tymoszenko FINANCE DIRECTORRita Kruse ASST. CITY ADMIN/DIR. OF ADMIN SERVICESBen McCready DIRECTOR OF PUBLIC WORKSRich Babica CHIEF OF POLICEEric Passarelli FIRE CHIEFMike Antenore ORGANIZATION CHART Net position over time may serve as a useful indicator of a government’s financial position. In the case of the City of Geneva, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $150.8 million at the close of the most recent fiscal year. The City uses a Statement of Net Position to demonstrate condition based on the year’s financial activities. The table below combines information about the City’s assets and liabilities to illustrate the net position in millions. The City is in a better fiscal position than last year due to an increase of $11.9 million from the total 2020 net position. During this fiscal year, the net position for governmental activities increased by $7.4 million or 24.34% from the prior fiscal year for an ending balance of $37.8 million. The increase is mainly due to the CARES Act funding and actual expenditures coming in under budget. The net position for business-type activities increased by $4.5 million or 4.14% from the prior fiscal year for an ending balance of $113.3 million. The growth is attributable to the Electric and Waterworks and Sewerage Fund reporting operating income of $2.5 million. FISCAL CONDITION City of Geneva, Illinois 6 GENERAL FUND Total General Fund Expenditures for Fiscal Year 2021 were $17,119,662. The expenditures of the General Fund include General Government, Community Development, Economic Development, Public Safety, Highway and Streets, and Public Works. Actual total expenditures were $1.3 million less than the amount appropriated in the final budget as actual costs were less than what was planned. The City’s General Fund seeks to maintain a minimum of 25% or 3 months of expenditures to provide for cash flow and reserves. Popular Financial Annual Report 2021 7 Total General Fund revenues for Fiscal Year 2021 were $20,468,596. The General Fund is the City’s primary operating fund which supports core municipal services. Various types of taxes provide a majority of the resources for the General Fund. The City’s General Fund tax revenues include property, utility, non-home rule sales, and telecommunication taxes. Intergovernmental revenues are revenues collected by the State and remitted to the City on a monthly basis, these include state-shared sales, state income, and local use taxes. General Fund Revenues: Where the Money Comes From General Fund Expenditures: Where the Money Goes Taxes Intergovernmental Licenses and Permits Charges for Services Fines and Forfeits Investment Income Miscellaneous TOTAL $9,941,053 9,026,108 328,286 575,302 196,594 3,138 398,115 $20,468,596 REVENUES General Government Public Works Economic Development Community Development Public Safety Highway & Streets TOTAL $ 1,269,982 718,494 88,765 966,801 12,730,522 1,345,098 $ 17,119,662 EXPENDITURES City of Geneva, Illinois 8 GENERAL FUND The City of Geneva keeps a vigilant eye on income and spending. The charts on this page show trends of major revenue sources and expenditures by category for the last five years. The Last Five Years ELECTRIC FUND Popular Financial Annual Report 2021 9 The Electric Fund accounts for the provision of electric service to the businesses and residents of the City. In the Electric Fund, charge for services revenues returned to pre-pandemic levels in FY 2021. Electric Fund operating expenses decreased .6%, or $.2 million, when compared to the prior fiscal year. The decrease was mainly due to delay in capital projects due to uncertainty of the pandemic. Capital projects included the overhead/underground cable replacement program, substation improvements and vehicle replacement. For the fiscal year, the Electric Fund reported a $2.4 million increase in net position compared to $.9 million decrease in the prior fiscal year. Charges for Services Fines & Forfeitures MiscellaneousNon-Operating Revenues Service Fees TOTAL $36,023,930 46,449 393,59272,300 - $36,536,271 REVENUES Operations & Maintenance Electric Purchases Electric Generation/Substations GIS Administration Fiber Optics/New Service Customer Accounting Repairs and Maintenance Depreciation and Amortization Non-Operating Expenses TOTAL 45,748 235,818 1,682,840 1,998,700 2,112,730 $37,917,573 $2,103,407 27,584,584 757,625 77,582 1,318,539 EXPENSES City of Geneva, Illinois 10 In the Waterworks and Sewerage Fund, sales of water and sewer increased by $2.5 million or 6.7% compared to the fiscal year 2020. The operating expenses of the Waterworks & Sewerage Fund increased $.5 million or 8.1% over the prior fiscal year mainly due to an increase in depreciation compared to the prior fiscal year. WATERWORKS AND SEWERAGE FUND $10,256,470 138,668 36,646 263,596 45,362 881,622 $11,622,364 Water Distribution Water Production Water Treatment Wastewater Treatment Wastewater Collection Industrial Wastewater GIS Repairs & Maintenance Depreciation & Amortization Non-Operating Expenses TOTAL EXPENSES Charges for Services Service Fees Fines & Forfeitures Miscellaneous Non-Operating Revenues Transfers in TOTAL REVENUES $1,343,160 298,541 1,058,032 1,041,848 1,042,500 118,240 95,051 2,720,287 2,819,595 2,974,469 $13,511,723 $732,020,594 2,397,767 195,310,534 46,637,112 1,698,183 $978,064,190 PROPERTY TAX ASSESSMENT Popular Financial Annual Report 2021 11 Equalized Assessed Valuation (EAV) has a direct effect on the City’s property tax rate. The City’s tax rate has an inverse relationship with the City’s total EAV. A decline in EAV would mean an increase in the property tax rate. The chart and graph below show assessment values since Levy Year 2016. Residential Farm Commercial Industrial Railroad TOTAL 2017 2018 2019 2020 PROPERTY CLASS LEVY YEAR $763,046,052 2,433,801 195,696,971 47,134,749 1,729,996 $1,010,041,569 $796,720,357 2,502,797 199,193,461 47,526,535 1,853,124 $1,047,796,274 $817,512,422 202,660,270 47,510,930 2,403,147 2,016,390 $1,072,103,159 $835,791,791 201,091,555 48,396,551 2,670,084 2,098,452 $1,090,048,433 2016 Assessed Value - determined by multiplying the assessment level for a class of property by its fair market value. Equalized Assessed Valuation (EAV) - determined by multiplying assessed valuation by the equalization factor. Equalization Factor - determined by the Illinois Department of Revenue to ensure an equal assessment among the State’s counties. City of Geneva property owners pay property taxes which generate revenue used to operate the City (including fire and police departments), schools, parks, libraries, and township road districts. The City of Geneva is under the Property Tax Extension Limitation Law which caps increases in property tax extensions for non-home rule taxing districts. Increases in tax extensions are limited to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI) for the year preceding the levy year. This limit slows the growth of property tax revenues to taxing districts when property values and assessments are increasing faster than the rate of inflation. A common misconception about property taxes is that all of the money goes to the City. The City’s portion of a resident’s total tax bill is approximately 6.6%. The City relies more heavily on a combination of sales tax and other miscellaneous taxes, rather than property tax, to provide essential core services to the public. The chart below illustrates the breakdown of a typical residential tax bill per dollar. UNDERSTANDING PROPERTY TAX City of Geneva, Illinois 12 Market Value of Home................................ Assessed Valuation...................................... Current Tax Levy ............................................ Annual Tax Liability for City Services... Monthly Expenses for City Services...... $350,000 $116,655 0.56688 $661.36 $55.11 Example UNDERSTANDING SALES TAX Popular Financial Annual Report 2021 13 State Rate: Tax imposed by the State of Illinois on qualifying purchases (5.0%). Municipal Retailers’ Occupation Tax: Tax collected by the State of Illinois on qualifying purchases within a municipality. Geneva collects a portion of this revenue (1.0%). County Rate: Tax imposed by Kane County on qualifying purchases (0.25%). Municipal Non-Home Rule Rate: Sales tax imposed by the City of Geneva on qualifying purchases (1.0%)*. Regional Transportation Authority Tax: Tax collected by the State to support regional public transit operations (0.75%). Total Sales Tax Rate: 8.0%* Sales Tax for the City of Geneva is broken into five different components to create the total sales tax rate: * Effective July 1, 2018, an additional 0.5% municipal non-home rule sales tax was enacted by referendum. LONG TERM DEBT OBLIGATIONS City of Geneva, Illinois 14 General Obligation Debt: All general obligation notes and bonds payable are backed by the full faith and credit of the City. The chart below illustrates the City’s total outstanding debt service and how it can be expected to change over time. Should the City not issue any more debt, the City’s general obligation would be completely paid off by the year 2030. As a non-home rule government, under Illinois law, the City is limited in issuing debt. Moody's Investor Service has assigned an Aa2 rating to the City's bonds. At the end of the fiscal year, the City has $27.0 million in long-term debt outstanding. The long-term debt obligation has decreased due to principal payments. The City paid the revenue bonds early due to the lack of parking revenue from the commuter parking fund. CAPITAL IMPROVEMENT PROGRAM Popular Financial Annual Report 2021 15 Municipalities continually face challenges of maintaining, worn down and antiquated, facilities and infrastructure. To look beyond the year-to-year budgeting to determine what, when, and where future improvements are to be made, staff prepares a capital improvement plan. The plan is analyzed and updated on an annual basis. The plan helps the City Council and staff prepare for the future needs of the community while ensuring adequate resources are available to finance those needs. Without this long-range planning tool, public improvements may be given the wrong priorities, be poorly located, or be unrealistic due to a lack of available financial resources. Below is a partial list of projects completed in the fiscal year 2021: Continued upgrades and maintenance to various substations throughout the City. Replaced aging underground and overhead electric cables at various locations throughout the City. Continued to work with the developer on the design phases of a road project to extend Kautz Road to Fabyan Road as described in the Southeast Master Plan. Maintained the Annual Roadway Improvement Program by focusing on ADA upgrades and additional streets that required resurfacing. Completed the replacement of an old and undersized water main on Andover, Normandy, and Greenwich streets. Began the design phases of a road project in conjunction with St. Charles to improve Kautz Road between US RT 38 and US RT 64 to a designated truck route. Replaced several older and non-functioning water meters with radio read meters. Rehabilitated three shallow drinking water wells. Completed the painting of the Dodson Street Water Tower. Replaced the sanitary sewer on W. State Street from River Lane to First Street. The sewer was collapsed in several sections and could not be lined. Rehabilitated the sanitary sewers and manholes in the Geneva East Subdivision to eliminate groundwater infiltration which can cause Sanitary Sewer Overflows. ELECTRIC INFRASTRUCTURE WATER EQUALIZED ASSESSED VALUATION The assessed valuation of real property raised or lowered by an equalizing factor as applied by a countywide and a statewide authority, so that all property is assessed at a consistent level for purposes of levying taxes. In Illinois, equalized valuation of real property is one-third of fair market value. EXPENDITURE The actual outlay of or obligation to pay cash. This does not include encumbrances. EXPENSES Decreases in net total assets. Expenses represent the total cost of operations during a period regardless of the timing of related expenditures. GENERAL OBLIGATION BONDS Bonds in which the full faith and credit of the issuing government are pledged. INTERGOVERNMENTAL REVENUE Revenue received from or through the Federal, State or County Government. OPERATING EXPENSES Fund expenses that are ordinary, recurring in nature and directly related to the fund’s primary service activities. OPERATING REVENUES Funds that the City receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings and grant revenues. Operating revenues are used to pay for day- to-day services. AMORTIZATION The reduction of debt through regular payments of principal and interest, of which the principal payments are sufficient to retire the debt instrument at a predetermined date known as maturity. APPROPRIATION The legal authorization to incur obligations and to make expenditures for specific purposes. ASSESSED VALUE A value set upon real property for use as a basis for levying taxes. DEBT SERVICE Expenditures to pay the principal and interest of all bonds and other debt instruments according to a predetermined payment schedule. DEFERRED INFLOW OF RESOURCES An acquisition of net assets by the government that is applicable to a future reporting period. For example, deferred revenue and advance collections. DEFERRED OUTFLOW OF RESOURCES A consumption of net assets by the government that is applicable to a future reporting period. For example, prepaid items and deferred charges. DEPRECIATION A calculation of the estimated decrease in value of physical assets due to usage and passage of time. GLOSSARY OF ACCOUNTING TERMS City of Geneva, Illinois 16 WWW.GENEVA.IL.US FOLLOW THE CITY OF GENEVA ON SOCIAL MEDIA CITY HAL L 22 S. FI RST ST G ENEVA, I L 6 0134 FINANCE 15 S . FIRST ST. GENEVA, IL 60134 FIRE 200 EAST SI DE DRI VE GEN E VA, IL 601 34 PO L I CE 2 0 POLICE PLAZA GEN E VA, IL 601 34 P U BLIC WOR K S 1800 SOUT H S T. GENEVA, IL 6 0134 GENEVA MAIL NEWSLETTER FACEBOOK GENEVA.IL INSTAGRAM GENEVA.IL TWITTER CITYOFGENEVA YOUTUBE CITYOFGENEVAIL