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HomeMy WebLinkAboutVillage of Gilberts - Public Financial ReportV ILLAGE OF G ILBERTS Popular Annual Financial Report For fiscal year ending April 30, 2021 Village President’s Message To the Citizens of Gilberts: I am pleased to present the Popular Annual Financial Report (PAFR) for Fiscal Year 2021 for the Village of Gilberts. I would like to note that the Village has again received the Govern- ment Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting for our FY 2020 Comprehensive Annual Financial Report (CAFR) as well as the Award for Outstanding Achievement in Popular Annual Financial Reporting for our FY 2020 PAFR. Each year the Village of Gilberts publishes a Comprehensive Annual Financial Report which contains a review of Village fi- nances presented in accordance with Generally Accepted Ac- counting Principles. These accounting guidelines are set by the Governmental Accounting Standards Board. These principles and standards are intended to provide all re- porting governmental entities with a consistent and uniform financial reporting standard. Unfortunately, many of the Gen- erally Accepted Accounting Principles requirements result in dense technical financial documents which do not convey much in the way of information to the average non-financial person. As part of the Village of Gilberts effort to manage a transpar- ent government, the Village publishes the Popular Annual Fi- nancial Report (PAFR) which provides a less technical over- view of Village finances. If you have any questions about this Popular Annual Financial Report please contact me or the Vil- lage Finance Director for assistance. Thank you, Guy Zambetti, Acting Village President 2 - Message from the President 3 - Government Organization 4 - About Gilberts 5 - 2021 Notable Achievements 6-7 - General Fund 8 - Statement of Revenues & Expenditures 9 - Property Tax & EAV 10 - Debt Management 11 - Water & Wastewater Enterprise Fund 12 - Statement of Net Position by Component 13 - Demographic Data 14 - About the PAFR Table of Contents Government Organization Top (l to r): Acting President Guy Zambetti, Trustee Jeanne Allen, Trustee Dan Corbett and Trustee Nancy Farrell Second row (l to r): Trustee Kurt Kojzarek and Trustee Lou Hacker. There was one vacant trustee position at April 30, 2021. Village of Gilberts President and Board of Trustees as of April 30, 2021 Gilberts is a non-home rule Village governed by an elected Village President and Board of Trustees functioning as the legislative branch of the Village government. Under State law, the Board of Trustees establishes policies and legislative direction of the Village, adopts all ordinances and resolutions and maintains the authority of final deter- mination of land use. The President and Board of Trustees are elected at-large to four-year terms on a two-year staggered basis. The Village President, with consent of the Board of Trustees, appoints the Village Administrator, who is then responsible for the daily operations of the Village. Citizens Finance Fin. Director/Treasurer Taunya Fischer Village Administrator Brian Bourdeau Village President & Board of Trustees Village Clerk Courtney Baker Building Chief Bldg. Inspector John Swedberg Public Works PW Director Aaron Grosskopf Police Chief of Police Mike Joswick About the Village of Gilberts Gilberts is located 46 miles northwest of Chicago along IL Route 72 with easy access to Inter- state 90 either east via Randall Road or west via IL Route 47. The Village of Gilberts was platted in 1855 and was incorporated in 1890. With an area of 5.5 square miles, the Village has a cur- rent population of 8,366. Gilberts is close to major cities, but far enough away to provide room for healthy growth of families, small businesses and light industrial manufacturing. Here in Gil- berts, we believe that we are growing with vision growing with vision growing with vision growing with vision and pride ourselves on our commitment to our community. The Village of Gilberts began in the spring of 1836 when E.R. Starks and Elijah Rich filed claims to what would be Rutland Township. In 1839, Albro Gilberts arrived and established a farm in what is now the center of Gilberts. Around 1852, a post office established near the railroad station, was named Gilberts Station, a name which generalized to the surrounding community. In 1890 Gilberts incorporated as a village. In 1956, the construction of the Chicago- Northwest Tollway resulted in new industrial development in Gilberts. A light industrial manufacturing area was established in the 1960’s which grew with the devel- opment of three additional industrial parks in the 1970’s. In 1988, a new water system was construct- ed which supported new residential development. Finished in 2014, the Illinois Tollway Authority built a complete interchange on Interstate 90 at Route 47. This interchange provides greater interstate access to the Chicago metro area while preserving the identity and character of the quaint rural living environment that drew the early settlers to the area. With a variety of local business and housing options available, Gilberts’ growth has been steady. This trend is anticipated to continue given the ongoing subdivisions and commercial land ready for development. Gilberts: A Brief History 2021 Notable Achievements The SafeWise Team is pleased to release the seventh annual Safest Cities report. Here are the 10 Safest Cities in Illinois for 2021 Capital Equipment In fiscal year 2021, the Village was able to make several capital equipment purchases. These include a 2021 Ford Police Interceptor for the police department, a Ford F550 dump truck for public works and a ramjet trailer that will be used in public works by both the water and street de- partments. Prairie Business ParkPrairie Business ParkPrairie Business ParkPrairie Business Park While several commercial lots are waiting to be developed in Prai- rie Business Park, the final industrial build- ing has been completed. The new occu- pant, Toynk Toys, will employ roughly 100 people, some in seasonal positions and is a welcome addition to Gilberts. With the Shell gas station and Dunkin Do- nuts anchoring the commercial lots off of IL Route 72, the Village anticipates more in- terest in the remaining lots off both Tyrell Road and IL Route 72 in the future. General Fund Revenues The Village operates under the Budget System of financial planning and management. As this more truly reflects anticipated receipts and disbursements it enables the Village Board of Trus- tees to prioritize their expectations with regard to where those monies are to be spent. The General Fund accounts for the daily operations of Administration, Finance, Police, Building, Public Works and Parks. The Village’s fund balance policy requires that a minimum of 25% of current operating expendi- tures be available in unrestricted fund balance. The sustained prudent practices the Village has followed through the years allows for the level of services expected by our residents as well as the availability of unrestricted funds, presently $2.6 million, should the need arise. The largest portion of Village revenues comes from taxes; including, but are not limited to, prop- erty tax, sales tax, local use tax, income tax, video gaming tax and cannabis taxes. While there have been slight fluctuations, for the most part these taxes have remained consistent. Addition- ally, with the completion of the decennial census, the Village’s population has grown from 6,879 to 8,366. This growth will allow for modestly larger deposits from the State of Illinois through the Local Government Distributive Funds (LGDF) that will not only help the General Fund, but the Motor Fuel Tax Fund as well. General Fund Expenditures $ 1,733,663$ 1,733,663$ 1,733,663$ 1,733,663 $ 896,870$ 896,870$ 896,870$ 896,870 $ 782,562$ 782,562$ 782,562$ 782,562 $ 583,076$ 583,076$ 583,076$ 583,076 Public SafetyPublic SafetyPublic SafetyPublic Safety The Police Department is part of the Village’s Gen- eral Fund and provides for the safety and well- being of our community. Continually developing relationships with resi- dents and businesses is essential and contributes to the success of the de- partment. General GovernmentGeneral GovernmentGeneral GovernmentGeneral Government General Government encom- passes managing the daily operations of the Village while following the Board approved budget. Items in- cluded here are planning & zoning, building permit, fi- nance office and other gen- eral inquiries. Garbage ServicesGarbage ServicesGarbage ServicesGarbage Services The Village has contract- ed with MDC for refuse removal services, which include regular trash pickup, recycling pickup, yard waste removal and even large item pickup for a set monthly fee. Public WorksPublic WorksPublic WorksPublic Works The Village’s Public Works department han- dles the maintenance and upkeep of our streets, storm sewers, all village-owned properties, all public park mainte- nance, parkway tree re- movals, as well as snow removal. Statement of Revenues & Expenditures For Governmental Funds TOTAL REVENUES $6,947,133TOTAL REVENUES $6,947,133TOTAL REVENUES $6,947,133TOTAL REVENUES $6,947,133 TOTAL EXPENDITURES $5,055,091TOTAL EXPENDITURES $5,055,091TOTAL EXPENDITURES $5,055,091TOTAL EXPENDITURES $5,055,091 This page summarizes all of the governmental operating funds of the Village; including General Fund, Community Days, Infrastructure, Motor Fuel Tax (MFT), TIF #1, TIF #2 and Drug Forfeiture. The 8% sales tax in Gilberts on general merchandise is distributed as follows: State of Illinois: 6.25% Gilberts Non-Home Rule: 1.00% Regional Transportation Authority: 0.75% The Village met the eligibility require- ments of the federally passed Corona- virus Aid, Relief, and Economic Sup- port Act (CARES Act) based on front- line policer officer salaries, safety equipment purchases and small build- ing upgrades necessary to protect employees. These emergency funds totaling $475,322 were passed through Kane County to the Village and are recognized in the grant revenue section of the general fund budget. The expenditures were absorb into various accounts throughout the Village’s overall budget and documentation was provided to Kane County. Without these funds the Village would have had a difficult time providing the regular services village residents have become accustom to. Nonmajor Governmental Nonmajor Governmental Nonmajor Governmental Nonmajor Governmental FundsFundsFundsFunds Community Days Infrastructure MFT TIF 1 TIF 2 Drug Forfeiture Property Tax & Equalized Assessed Valuation All Gilberts residents live within Kane Coun- ty and a majority reside in Rutland Town- ship. Your property taxes are distributed amongst as many as eleven different tax- ing bodies. The largest of these is Dundee School District 300 which collects 69%; Rutland Dundee Fire District comes in sec- ond at 8%; and the Village of Gilberts with 7% is third on the list. The remaining 16% is split between Elgin Community College #509, Kane County, Dundee Township Li- brary district, and others depending on your address. EAV is the total dollar value of all property within Gil- berts, similar to an individ- ual’s net worth. All EAV’s are determined by the Kane County Tax Asses- sor’s Office and play an important part in determin- ing all property tax collec- tions. As the Village’s overall EAV grows the rates assessed on individual properties trend lower, but dollars collected by the Village tend to grow due to the increased valuation. Between 2015 and 2020 the rate for Gilberts’ resi- dents has decreased from $621.88 per $100,000 to $535.79 per $100,000 in assessed value. As Kane County is a PTELL county (Property Tax Exten- sion Limitation Law) the Village is limited to increas- ing property taxes by the lesser of 5% or CPI year over year. Thus, the in- creases in total property tax collections has stayed relatively constant. New construction valuations are the only values not capped by PTELL. Debt Management Debt is a tool available to local governments that enables the Village to provide infrastructure improvements and finance that debt over time using various revenues received. Gilberts has several different types of debt: Alternate Revenue Bonds (also know as General Obligation or GO Bonds), Tax Increment Financing (TIF) notes, an Installment note and an Illinois Environmental Protection Agency (IEPA) loan. - - - The Village prides itself on continued prudent practices, which has enabled Gilberts to maintain a rating of ‘AAAAAAAA’ with Standard & Poor’s. This rating demon- strates our creditworthiness and ena- bles the Village to obtain lower interest rates on loans and bonds. Water & Wastewater Enterprise Fund Statement of Revenues, Expenses and Net Position for Water & Sewer - - What is an Enterprise Fund?What is an Enterprise Fund?What is an Enterprise Fund?What is an Enterprise Fund? Much like a private business, an Enterprise Fund is designed to be self-sustaining. The Village deliv- ers water and wastewater (sewer) services to resi- dents and then provides an accounting for those services within this enterprise fund. All repairs or improvements to the water and sewer infrastruc- ture are funded through the fees collected. Fund AnalysisFund AnalysisFund AnalysisFund Analysis While the net position of the Water and Wastewater Fund is healthy, the majority of the balance is held in the physical infrastructure or “Assets” within the Village. Only 30%, or $6 million is available for needed improvements to facilities, maintenance or infrastructure. The Village has been able to maintain consistent rates for water and wastewater since 2016. Statement of Net Position by Component 5 Year Trends - - In the government-wide financial statements, equity is classified as net position and displayed in three components: Net Investment in Capital Assets Net Investment in Capital Assets Net Investment in Capital Assets Net Investment in Capital Assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. RestrictedRestrictedRestrictedRestricted – Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislations. Unrestricted Unrestricted Unrestricted Unrestricted – All other net positions balances that do not meet the definition of “restricted” or “net in- vested in capital assets.” Analysis of Net PositionAnalysis of Net PositionAnalysis of Net PositionAnalysis of Net Position Over the past five years the Village’s Net Position has fluctuated slightly; specifically due to a road pro- gram that occurred in 2019, which accounts for the $1.7 million drop from 2018 to 2019. Net position of the Village’s governmental activities for 2021 had an increase from the prior year due to an increase in revenues and slight decreases in expenses for the year. A portion of that increase came from the CARES Act federal funding for COVID-19 related expenses. Net position of the business-type activities increased by less than one percent or $73,072 from the prior year. Prudent practices currently in place concerning expenditures will enable the Village to continue in a positive trajectory for the near future. Demographic Data Five-Year Trends About the PAFR The Popular Annual Financial Report, or PAFR, is designed to present the Village’s financial infor- mation in an accessible and understandable format for it’s citizens and other interested par- ties. The Village of Gilberts values sharing finan- cial information and presenting it in a format that is easy to comprehend and obtainable to the general public, encouraging citizens inter- ested in the Village’s finances to utilize this re- source. The PAFR is designed to present the Village of Gil- berts’ Comprehensive Annual Financial Report in a summarized and simplified format and is con- sistent with GAAP. The document also focuses heavily on trends since more information can be derived from data over time. Although information presented in the PAFR is accurate and presents the Village's finances objectively, the public can obtain the most reliable source for financial infor- mation within the 2021 Comprehensive Annual Financial Report by visiting the financial docu- ments section of www.villageofgilberts.com. In ad- dition, eight years of financial reports are also available for any interested parties. Comments, suggestions, and questions are welcome and can be addressed to: Taunya Fischer, Finance Director Phone: 847-428-4167 Email: tfischer@villageofgilberts.com