village of hazel crest, illinoisvillageofhazelcrest.org/wp-content/uploads/2020/08/... ·...

Village of Hazel Crest, Illinois

Comprehensive Annual Financial Report

For the Fiscal Year Ended April 30, 2019

sŝůůĂŐĞ�ŽĨ�,ĂǌĞů��ƌĞƐƚ͕�/ůůŝŶŽŝƐ �ŽŵƉƌĞŚĞŶƐŝǀĞ��ŶŶƵĂů�&ŝŶĂŶĐŝĂů�ZĞƉŽƌƚ zĞĂƌ��ŶĚĞĚ��Ɖƌŝů�ϯϬ͕�ϮϬϭϵ

Prepared by Village of Hazel Crest Finance Department

Village of Hazel Crest, Illinois Table of Contents

Introductory Section

Letter of Transmittal i�v Principal Officials vi Organization Chart vii Certificate of Excellence in Financial Reporting viii

Financial Section

Independent Auditors͛ Report 1�2 DĂŶĂŐĞŵĞŶƚ͛Ɛ��ŝƐĐƵƐƐŝŽŶ�ĂŶĚ��ŶĂůǇƐŝƐ 3�11 Basic Financial Statements

Government�Wide Financial Statements Statement of Net Position 12�13 Statement of Activities 14

Fund Financial Statements Balance Sheet ʹ Governmental Funds 15 Reconciliation of the Balance Sheet ʹ Governmental Funds to the

Statement of Net Position 16 Statement of Revenues, Expenditures and Changes in Fund Balances ʹ

Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund

Balances ʹ Governmental Funds to the Statement of Activities 18 Statement of Net Position ʹ Proprietary Funds 19 Statement of Revenues, Expenses and Changes in Net Position ʹ Proprietary Funds

20

Statement of Cash Flows ʹ Proprietary Funds 21 Combined Statement of Fiduciary Net Position ʹ Pension Trust Funds 22 Combined Statement of Changes in Fiduciary Net Position ʹ Pension Trust Funds 23 Notes to Financial Statements 24�66

Required Supplementary Information Other Postemployment Plan Schedule of Changes in the Total OPEB Liability and Related Ratios 67 Illinois Municipal Retirement Fund � Regular

Schedule of Changes in the Net Pension Liability and Related Ratios 68 Schedule of Contributions 69

Illinois Municipal Retirement Fund � SLEP Schedule of Changes in the Net Pension Liability and Related Ratios 70 Schedule of Contributions 71

Police Pension Plan Schedule of Changes in Net Pension Liability, Total Pension Liability and Related Ratios and Investment Return 72

&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ�WůĂŶ Schedule of Changes in Net Pension Liability, Total Pension Liability and Related Ratios and Investment Returns 73 Required Supplementary Information ʹ Schedule of Contributions Police and Fire Pension Plans 74 Schedule of General Fund Revenues ʹ Budget and Actual 75�76 Schedule of General Fund Expenditures ʹ Budget and Actual 77�84 Schedule of Revenues, Expenditures and Changes in Fund Balances ʹ Budget and Actual ʹ Special Revenue Fund ʹ MFT Fund 85 Note to Required Supplementary Information 86

Supplementary Information Governmental Funds

Combining Balance Sheet ʹ Nonmajor Governmental Funds 87 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances ʹ Nonmajor Governmental Funds 88

Village of Hazel Crest, Illinois Table of Contents

Financial Section (Continued)

Supplementary Information

Governmental Funds Combining Balance Sheet ʹ Nonmajor Debt Service Funds 89 Combining Statement of Revenues, Expenditures and Changes in Fund

Balances ʹ Nonmajor Debt Service Funds 90 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ʹ

Budget and Actual � Nonmajor Debt Service Funds 91 Combining Balance Sheet ʹ Nonmajor Capital Projects Funds 92 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances ʹ Nonmajor Capital Projects Funds 93

Major Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position ʹ

Budget and Actual ʹ Waterworks and Sewerage Fund

94�96

Schedule of Expenses ʹ Budget and Actual Commuter Parking Lot Fund 97

Other Schedules

Schedule of Debt Service Requirements 98

Statistical Section

Net Position by Component 99 Change in Net Position 100�101 Fund Balances of Governmental Funds 102 Changes in Fund Balances of Governmental Funds 103�104 Schedule of Assessed Valuations, Tax Rates, Tax Extensions and Tax Collections 105�106 Assessed Value and Actual Value of Taxable Property 107 Property Tax Rates ʹ Direct and Overlapping Governments 108 Principal Property Taxpayers 109 Property Tax Levies and Collections 110 Sales Tax Base and Number of Principal Payers 111 Direct and Overlapping Sales Tax Rates 112 Ratios of Outstanding Debt by Type 113 Ratios of General Bonded Debt Outstanding 114 Direct and Overlapping Governmental Activities Debt 115 Schedule of Legal Debt Margin 116 Demographic and Economic Information 117 Principal Employers 118 Full�Time Equivalent Employees 119 Operating Indicators 120 Capital Asset Statistics 121

i

October 22, 2019 Honorable Village President Alsberry and the Board of Trustees Village of Hazel Crest Hazel Crest, Illinois 60429 Board Members: In accordance with State Statutes and local ordinance provisions, we hereby transmit the Comprehensive Annual Financial Report of the Village of Hazel Crest, Illinois (the Village) for the fiscal year ended April 30, 2019. Responsibility for both the accuracy of presented data and completeness of the presentation, including all disclosures, rests with the Village. Management believes that the data as presented is accurate in all material aspects and is presented in a manner designed to fairly set forth the financial position, results of operations and cash flows of the Village, as measured by the financial activity of its various fund types and opinion units and that all ĚŝƐĐůŽƐƵƌĞƐ� ŶĞĐĞƐƐĂƌǇ� ƚŽ� ĞŶĂďůĞ� ƚŚĞ� ƌĞĂĚĞƌ� ƚŽ� ŐĂŝŶ�ŵĂǆŝŵƵŵ� ƵŶĚĞƌƐƚĂŶĚŝŶŐ� ŽĨ� ƚŚĞ� sŝůůĂŐĞ͛Ɛ� ĨŝŶĂŶĐŝĂů�affairs have been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. This letter of transmittal is designed to complement the DĂŶĂŐĞŵĞŶƚ͛Ɛ��ŝƐĐƵƐƐŝŽŶ�ĂŶĚ��ŶĂůǇƐŝƐ�;MD&A) and should be read in conjunction with it. The Village of ,ĂǌĞů��ƌĞƐƚ͛Ɛ�D�Θ��ĐĂŶ�ďĞ�ĨŽƵŶĚ�ŝŵŵĞĚŝĂƚĞůǇ�ĨŽůůŽǁŝŶŐ�ƚŚĞ�ƌĞƉŽƌƚ�ŽĨ�ƚŚĞ�ŝŶĚĞƉĞŶĚĞŶƚ�ĂƵĚŝƚŽƌƐ͘ /Ŷ�ĚĞǀĞůŽƉŝŶŐ�ĂŶĚ�ĞǀĂůƵĂƚŝŶŐ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĂĐĐŽƵŶƚŝŶŐ�ƐǇƐƚĞŵ͕�ĐŽŶƐŝĚĞƌĂƚŝŽŶ�ŝƐ�ŐŝǀĞŶ�ƚŽ�ƚŚĞ�ĂĚĞƋƵĂĐǇ�Žf ŝŶƚĞƌŶĂů�ĂĐĐŽƵŶƚŝŶŐ�ĐŽŶƚƌŽůƐ͘�tĞ�ďĞůŝĞǀĞ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ŝŶƚĞƌŶĂů�ĂĐĐŽƵŶƚŝŶŐ�ĐŽŶƚƌŽůƐ�ĂĚĞƋƵĂƚĞůǇ�ƐĂĨĞŐƵĂƌĚ�assets and provide reasonable assurance of proper recording of financial transactions. BACKGROUND INFORMATION A presentation of general governmental functions of the Village of Hazel Crest refers to operations directly supervised or controlled by the Village of Hazel Crest Municipal Corporation. The operations include police and fire protection, water supply, sanitary and storm sewer collections, public works operations, commuter parking facilities, operations and maintenance, road and bridge maintenance, community economic development, community relations, civil defense and general administrative services.

Mayor Village of Hazel Crest Trustees Vernard L. Alsberry Jr. Mary E. Grant

Kevin Moore Sr. Clerk Benjamin Ramsey

Isaac R. Wiseman Marlon D. Rias

Java Rogers Village Manager Sandra Slayton

Dante Sawyer

ii

The following units of government are schools or special�purpose districts that serve the entire community or a part hereof not included in the accompanying financial statements because they are autonomous of the Village and report to separately elected boards. The Village of Hazel Crest exerts no direct or indirect control or authority over these boards:

Grande Prairie Public Library District Hazel Crest Park District Prairie Hills School District #144 Hazel Crest School District #152 ½ Flossmoor School District #161 Homewood School District #153 Hillcrest High School District #228 Homewood�Flossmoor School District #223 Thornwood School District #205 Metropolitan Water Reclamation District

State law requires that the financial statements of the Village of Hazel Crest be audited by Certified Public �ĐĐŽƵŶƚĂŶƚƐ͘� dŚŝƐ� ƌĞƋƵŝƌĞŵĞŶƚ� ŚĂƐ� ďĞĞŶ� ĐŽŵƉůŝĞĚ� ǁŝƚŚ� ĂŶĚ� ƚŚĞ� �ƵĚŝƚŽƌ͛Ɛ� ŽƉŝŶŝŽŶ� ŝƐ� ŝŶĐůƵĚĞĚ� ŝŶ� ƚŚĞ�Financial Section of this report. dŚĞ�sŝůůĂŐĞ�ŽĨ�,ĂǌĞů��ƌĞƐƚ͛Ɛ�ŐŽǀĞƌŶŵĞŶƚ�Đoncluded fiscal year ended April 30, 2019, in sound financial condition. ECONOMIC CONDITION AND OUTLOOK Communities in Cook County continue to use the prior year Assessed Value to determine their Tax Levy. Public Act 89�1 established a 5 percent limit on the increase in extensions from the prior levy year to the current levy yĞĂƌ͕�ǁŝƚŚŽƵƚ�ŚŽůĚŝŶŐ�ǁŚĂƚ�ŝƐ�ŬŶŽǁŶ�ĂƐ�Ă�͞dƌƵƚŚ�ŝŶ�dĂǆĂƚŝŽŶ͟�ŚĞĂƌŝŶŐ͘ The Village has four established tax increment financing (TIF) districts. The 183rd Street TIF was established to redevelop French Village by aiding in securing tenants and promoting landscaping and remodeling. The 170th Street TIF was established to initiate Transit Oriented Development (T.O.D.) for the train station and its surrounding areas, develop parking and pedestrian access and institute infrastructure and landscaping improvements. The Cherry Creek TIF remains essentially inactive, although there is an approved Planned Unit Development (P.U.D.) proposal for this site. Along 167th Street a TIF was created to promote development and promote expansion of Mi�Jack products. MAJOR INITIATIVES The Village is continuing its local housing adjudication court. Better control of property maintenance and better enforcement of ordinances has resulted. The administrative adjudication process has been expanded to include minor traffic offenses, quasi�criminal offenses and business licensing infractions. Hazel Crest is one of the participating municipalities in the E�COM joint dispatch center along with Homewood, Flossmoor, Glenwood, Riverdale, South Holland, Country Club Hills, Thornton and East Hazel Crest. Participating with other municipalities allows the Village to upgrade dispatch equipment through economies of scale.

iii

Additionally, the Village has improved operational efficiencies with technology upgrades, professional development with our existing accounting software, and a process improvement plan for our financial transitions to ensure proper quality controls. Over the last 10 years there has been a 39.1 percent decrease in Equalized Assessed Value (EAV); the first five of the 10 years saw an 34.9 percent decrease compared to the 2009 EAV, while the last five years saw a 6.4 percent decrease from the 2013 EAV. The following table illustrates this trend:

218,670,034 217,567,030

167,719,937

155,447,524

142,168,928

130,489,050 127,689,756 132,299,977

141,445,871

133,000,748

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Equ

aliz

ed

Ass

ess

ed

Va

lue

Levy Year

Village of Hazel CrestTrend of Equalized Assessed Value

2009�2018

iv

PROPERTY TAXES The allocations of Property Tax rate by generic fund type of tax levy for Levy Year 2018 and the preceding five levy years are as follows:

Purpose 2013 2014 2015 2016 2017 2018

General 4.159 4.597 4.910 4.820 4.783 5.410

GO Debt 0.200 0.214 0.154 0.203 0.479 0.508

Pensions 0.484 0.603 0.837 0.956 1.478 1.699

Totals 4.843 5.414 5.901 5.979 6.739 7.617

INTERNAL ACCOUNTING SYSTEM AND BUDGETARY CONTROLS /Ŷ�ĞǀĂůƵĂƚŝŶŐ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĂĐĐŽƵŶƚ�ƐǇƐƚĞŵ͕�ƚŚĞ�ĂĚĞƋƵĂĐǇ�ŽĨ� ŝŶƚĞƌŶĂů�ĂĐĐŽƵŶƚŝŶŐ�ĐŽŶƚƌŽůƐ�ǁĞƌĞ�ĂŶĂůǇǌĞĚ�ĂŶĚ�found to provide reasonable assurances related to the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of controls should not exceed benefits likely to be derived and (2) evaluation of cost and benefits requires evaluation and judgment by management. All ŝŶƚĞƌŶĂů� ĞǀĂůƵĂƚŝŽŶƐ� ŽĐĐƵƌ� ǁŝƚŚŝŶ� ƚŚĞ� ĂďŽǀĞ� ĨƌĂŵĞǁŽƌŬ͘�tĞ� ďĞůŝĞǀĞ� ƚŚĂƚ� ƚŚĞ� sŝůůĂŐĞ͛Ɛ� ŝŶƚĞƌŶĂů� ĂĐĐŽƵŶƚŝŶŐ�controls provide reasonable assurance of proper recording of financial transactions. The challenges of financing services and maintaining infrastructure in the Village continue to dominate the budget process. Fiscal responsibilities, public safety, infrastructure maintenance, and economic development leading to increasing the revenue base continue to be the priority of the Village Board of Trustees. The Village remains committed to meeting its prescribed fiscal controls. ILLINOIS MUNICIPAL RETIREMENT FUND The State of Illinois created a separate entity to provide retirement, death and disability benefits to certain municipal and school district employees. All full�time Village personnel other than qualifying police and firefighters are enrolled in this retirement fund known as the Illinois Municipal Retirement Fund (IMRF). The plan requires employees enrolled to pay 4.5 percent of earnings toward the plan while the Village pays the balance of the amount necessary to pay normal retirement costs for the year. Comprehensive IMRF Plan Benefits are available at IMRF Offices, 2211 York Road, Oak Brook, IL 60523�2337. DEBT ADMINISTRATION The ratio of bonded debt to assessed valuation and the amount of bonded debt per capita were useful ŝŶĚŝĐĂƚŽƌƐ�ŽĨ� ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĚĞďƚ�ƉŽƐŝƚŝŽŶ�ƚŽ�ŵƵŶŝĐŝƉĂů�ŵĂŶĂŐĞŵĞŶƚ͕� ĐŝƚŝǌĞŶƐ�ĂŶĚ� ŝŶǀĞƐƚŽƌƐ͘�dŚĞ�ĚĂƚĂ� ĨŽƌ� ƚŚĞ�Village of Hazel Crest for the 2019 fiscal year is found in the Statistical Section of the report. During the past year $265,000 of General Obligation Debt was retired as scheduled. CAPITAL ASSETS Capital assets are those assets used in the performance of general governmental functions. Capital assets include infrastructure (roads, bridges, curbs and gutters, street and sidewalks, drainage and lighting systems). All capital assets are valued at estimated historical cost, if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated at rates intended to amortize the cost over each asset͛s useful life. TRUST AND AGENCY FUNDS The Police Pension Fund is the direct responsibility of the Hazel Crest Police Pension Board. As administrators of the Police Pension Fund, the Board is responsible for a variety of tasks including qualifications of participants, certification of benefit amounts and investment of funds.

v

An actuary annually reviews the financial status of this fund and recommends the amount to be provided by the Village. This amount together with employee contributions will assure proper funding of the Police Pension Fund given reasonable actuarial assumptions. On an annual basis, the Board requests and receives the amount recommended as the employer contribution for the Police Pension Fund. The Village funded $1,628,636 during the fiscal year ended April 30, 2019. dŚĞ�&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ�&ƵŶĚ� ŝƐ� ƚŚĞ�ĚŝƌĞĐƚ� ƌĞƐƉŽŶƐŝďŝůŝƚǇ�ŽĨ�ƚŚĞ�,ĂǌĞů��ƌĞƐƚ�&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ��ŽĂƌĚ͘��Ɛ�ĂĚŵŝŶŝƐƚƌĂƚŽƌƐ�ŽĨ�ƚŚĞ�&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ�&ƵŶĚ͕�ƚŚĞ��ŽĂƌĚ�ŝƐ�ƌĞƐƉŽŶƐŝďůĞ�ĨŽƌ�Ă�ǀĂƌŝĞƚǇ�ŽĨ�ƚĂƐŬƐ�ŝĚĞŶƚŝĐĂů�ƚŽ�ƚŚŽƐĞ�of the Police Pension Fund, including qualification of participants, certification of benefit amounts and investment of funds. An actuary annually reviews the financial status of these funds and recommends an amount to be provided by the Village, which when combined with the employee contributions, will assure ƉƌŽƉĞƌ�ĨƵŶĚŝŶŐ�ŽĨ�ƚŚĞ�&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ�&ƵŶĚ͕�ŐŝǀĞŶ�ƌĞĂƐonable actuarial assumptions. On an annual basis, the Village Board reviews and approves the amount recommended as the employer ĐŽŶƚƌŝďƵƚŝŽŶ�ĨŽƌ�ƚŚĞ�&ŝƌĞĨŝŐŚƚĞƌƐ͛�WĞŶƐŝŽŶ�&ƵŶĚ͘�dŚĞ�sŝůůĂŐĞ�ĨƵŶĚĞĚ�Ψ509,297 during the fiscal year ended April 30, 2019. REVENUE RECOGNITION In the governmental funds, the Village recognizes revenues as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal year (60 days for property taxes). All other funds recognize revenue on the full accrual basis (when earned). CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Hazel Crest for its comprehensive annual financial reports (CAFR) for the fiscal year ended April 30, 2018. This was the 37th consecutive year that the government has achieved this prestigious award (fiscal years ended 1982�2018). In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS Preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire office staff. Our appreciation is extended to all Village Board members for their interest in planning and conducting the financial operations of the Village in a responsible and progressive manner. This report continues the efforts made by the Village to ensure that its financial operations are captured accurately and responsibly. Respectfully submitted, Dante Sawyer, Village Manager

Village of Hazel Crest Principal Officials

President Vernard Alsberry Jr.

Village Board of Trustees

Mary Grant Kevin Moore Ben Ramsey Marlon Rias Java Rogers

Sandra Slayton

Village Manager

Dante Sawyer

Village Clerk

Isaac R. Wiseman

Village Attorney

John Murphey of Rosenthal, Murphey, Coblentz & Donahue

&LWL]HQV�RI+D]HO�&UHVW�

0D\RU�(OHFWHG�

7UXVWHHV�(OHFWHG�

9LOODJH�&OHUN�(OHFWHG�

9LOODJH�0DQDJHU�$SSRLQWHG�

)LUH�DQG�5HVFXH

&RPPXQLW\�DQG�%XVLQHVV�5HODWLRQV�

3ROLFH +XPDQ�5HVRXUFH

)LQDQFH ,QVSHFWLRQDO�6HUYLFHV�

3XEOLF�:RUNV�

9LOODJH�RI�+D]HO�&UHVW�2UJDQL]DWLRQDO�&KDUW

9LOODJH�$VVLVWDQW�0DQDJHU

�$SSRLQWHG�

(FRQRPLF�'HYHORSPHQW�

Independent Auditors' Report

To the Honorable Village President and Members of the Board of TrusteesVillage of Hazel CrestHazel Crest, Illinois

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Village of Hazel Crest (the"Village"), as of and for the year ended April 30, 2019, and the related notes to the financial statements, whichcollectively comprise the Village's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States; this includes the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, weexpress no such opinion. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and the aggregateremaining fund information of the Village of Hazel Crest, as of April 30, 2019, and the respective changes infinancial position and, where applicable, cash flows thereof, for the year then ended in accordance withaccounting principles generally accepted in the United States.

1

Change in Accounting Principle

As discussed in Note 1 to the financial statements, in 2019 the Village implemented GASB Statement No. 75,Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinion is notmodified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States require that the management's discussion andanalysis and the required supplementary information listed in the table of contents be presented to supplementthe basic financial statements. Such information, although not a part of the basic financial statements, isrequired by the Governmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, or historical context.We have applied certain limited procedures to the required supplementary information in accordance withauditing standards generally accepted in the United States, which consisted of inquiries of management aboutthe methods of preparing the information and comparing the information for consistency with management'sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit ofthe basic financial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Village’s basic financial statements. The introductory section, combining and individual fundfinancial statements and schedules and statistical section are presented for purposes of additional analysis andare not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility of management andwas derived from and relates directly to the underlying accounting and other records used to prepare thefinancial statements. Such information have been subjected to the auditing procedures applied in the audit of thefinancial statements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the basic financial statements or to thebasic financial statements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States. In our opinion, the information is fairly stated, in all material respects, inrelation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the auditof the basic financial statements and, accordingly, we do not express an opinion or provide any assurance onthem.

Chicago, IllinoisOctober 22, 2019

2

Village of Hazel Crest, Illinois DĂŶĂŐĞŵĞŶƚ͛Ɛ��ŝƐĐƵƐƐŝŽŶ�ĂŶĚ��ŶĂůǇƐŝƐ

The management of the Village of Hazel Crest (the Village) is providing this overview and analysis of the financial activities of the Village for fiscal year ended April 30, 2019. Please read it in conjunction with the Transmittal Letter and the Financial Statements in this report. Financial Highlights The liabilities and deferred inflows of resources of the governmental activities of the Village exceeded its assets and deferred outflows of resources at the close of the most recent fiscal year by $30,677,532. This includes an unrestricted deficit of $(41,414,179). During the fiscal year, the total governmental activities net position decreased by $9,137,026. The adoption of GASB No. 75 decreased beginning of year net position by $7,187,622. The remaining $1,949,404 represents a current change in net position as governmental activities expenses exceeded program and general revenues. At the end of the current fiscal year, unassigned fund balance for the general fund was $2,232,893 or 14 percent of total general fund expenditures and transfers. Overview of the Financial Statements dŚŝƐ�ĚŝƐĐƵƐƐŝŽŶ�ĂŶĚ�ĂŶĂůǇƐŝƐ�ŝƐ�ŝŶƚĞŶĚĞĚ�ƚŽ�ďĞ�ĂŶ�ŝŶƚƌŽĚƵĐƚŝŽŶ�ƚŽ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ďĂƐŝĐ�ĨŝŶĂŶĐŝĂů�statements. The basic financial statements are comprised of three components: government�wide financial statements, fund financial statements and notes to the financial statements. This report also contains other supplementary and statistical information in addition to the basic financial statements. Government�wide financial statements. The government�wide financial statements provide a broad ŽǀĞƌǀŝĞǁ�ŽĨ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĨŝŶĂŶĐĞƐ�ŝŶ�Ă�ŵĂŶŶĞƌ�ƐŝŵŝůĂƌ�ƚŽ�Ă�ƉƌŝǀĂƚĞ�sector business. dŚĞ�ŐŽǀĞƌŶŵĞŶƚ͛Ɛ�current financial resources are combined and consolidated with capital assets and long�term obligations using the accrual basis of accounting. The statement of net position ƉƌĞƐĞŶƚƐ�ŝŶĨŽƌŵĂƚŝŽŶ�ŽŶ�Ăůů�ŽĨ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĂƐƐĞƚƐ�and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them reported as net position. In the future, the increase or decrease in net position may be a useful indicator ŽĨ�ǁŚĞƚŚĞƌ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ĨŝŶĂŶĐŝĂů�ƉŽƐŝƚŝŽŶ�ŝƐ�ŝŵƉƌŽǀŝŶŐ�Žƌ�ĚĞƚĞƌŝŽƌĂting. dŚĞ�ƐƚĂƚĞŵĞŶƚ�ŽĨ�ĂĐƚŝǀŝƚŝĞƐ�ƉƌĞƐĞŶƚƐ�ŝŶĨŽƌŵĂƚŝŽŶ�ƐŚŽǁŝŶŐ�ŚŽǁ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ŶĞƚ�position changed during the most recent fiscal year. All changes in net position are reported as soon as they occur, regardless of the timing of cash flow. Therefore, revenues and expenses are reported for some items that will result in cash flows in future fiscal periods. The costs of various governmental services and any subsidy to business activities are presented. Both of these government�wide financial statements distinguish the functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or most of their costs through user fees and charges (business�type activities). dŚĞ�sŝůůĂŐĞ͛Ɛ�ŐŽǀĞƌŶŵĞŶƚĂů�ĂĐƚŝǀŝƚŝĞƐ�ŝŶĐůƵĚĞ�ŐĞŶĞƌĂů�ƐĞƌǀŝĐĞƐ͕�ƉƵďůŝĐ�ǁŽƌŬƐ͕�ĂŶĚ�ƉƵďůŝĐ�safety. Property, sales, utility and income taxes pay for most of those activities. dŚĞ�sŝůůĂŐĞ͛Ɛ�ďƵƐŝŶĞƐƐ�type activities include water and sewer operations and a municipal parking operation. The government�wide financial statements include only the financial activities of the Village. There are no component units.

3


Fund financial statements. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities. Fund accounting is used to ensure and demonstrate compliance with finance�related legal requirements. The Village funds are divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government�wide financial statements. Unlike government�wide financial statements, governmental fund financial statements focus on near�term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such ŝŶĨŽƌŵĂƚŝŽŶ�ŵĂǇ�ďĞ�ƵƐĞĨƵů�ŝŶ�ĞǀĂůƵĂƚŝŶŐ�Ă�ŐŽǀĞƌŶŵĞŶƚ͛Ɛ�ŶĞĂƌ�term financing requirements. Because the focus of governmental fund statements is narrower than that of the government�wide financial statements, it may be useful to compare similar information to better understand the long�ƚĞƌŵ�ŝŵƉĂĐƚ�ŽĨ�ƚŚĞ�ŐŽǀĞƌŶŵĞŶƚ͛Ɛ�ŶĞĂƌ�term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The Village maintains 10 individual governmental funds, two proprietary funds and two fiduciary funds. Information is presented separately in the governmental fund statement of revenues, expenditures and changes in fund balances for four major funds: the General fund, the MFT fund, the 183rd Street TIF fund and the Hazel Crest Proper TIF fund. Data from the other six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in this report. The Village adopts an annual appropriated budget for five of its funds. No budgets were prepared for any TIF funds, the Community Development Block Grant fund, or the Capital Projects fund. A budgetary comparison statement has been provided where appropriate to demonstrate compliance with this budget. One type of proprietary fund is an enterprise fund. The Village maintains two enterprise funds to report the same functions presented as business�type activities in the government�wide financial statements, only in more detail. Those two functions are a municipal parking operation and sewer and water operations. Sewer and water operations are considered to be a major fund of the Village. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government�wide financial statement because the resources of those funds are not available to support the VŝůůĂŐĞ͛Ɛ�ŽǁŶ�ƉƌŽŐƌĂŵƐ͘ The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government�wide and fund financial statements.

4


Other information. In addition to the basic financial statements and accompanying notes, this report ĂůƐŽ�ƉƌĞƐĞŶƚƐ�ĐĞƌƚĂŝŶ�ƌĞƋƵŝƌĞĚ�ƐƵƉƉůĞŵĞŶƚĂƌǇ�ŝŶĨŽƌŵĂƚŝŽŶ�ĐŽŶĐĞƌŶŝŶŐ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�pension plans and net pension liability, and obligation to provide pension benefits to its employees. Government�Wide Financial Analysis The following table is the Condensed Statement of Net Position as of April 30, 2019:

Governmental Business�Type Total Primary

Activities Activities Government

Current and other assets 19,631,200$ 2,854,853$ 22,486,053$

Capital assets 11,757,589 1,948,311 13,705,900 Total assets 31,388,789 4,803,164 36,191,953 Deferred outflows of resources 4,607,202 381,176 4,988,378 Current liabilities 2,681,362 564,330 3,245,692 Non�current liabilities 50,474,057 841,306 51,315,363 Total liabilities 53,155,419 1,405,636 54,561,055 Deferred inflows of resources 13,518,104 69,869 13,587,973 Net position

Net investment in capital assets 7,758,453 1,925,429 9,683,882

Restricted for various purposes 2,978,194 0 2,978,194

Unrestricted (41,414,179) 1,783,406 (39,630,773) Total net position (30,677,532)$ 3,708,835$ (26,968,697)$

The following table is the Condensed Statement of Net Position as of April 30, 2018:



Current and other assets 23,425,835$ 2,594,233$ 26,020,068$

Capital assets 9,322,607 2,181,538 11,504,145 Total assets 32,748,442 4,775,771 37,524,213 Deferred outflows of resources 3,122,817 121,592 3,244,409 Current liabilities 1,687,727 521,457 2,209,184 Non�current liabilities 42,750,903 425,998 43,176,901 Total liabilities 44,438,630 947,455 45,386,085 Deferred inflows of resources 12,973,135 322,656 13,295,791 Net position

Net investment in capital assets 8,606,253 2,136,839 10,743,092

Restricted for various purposes 13,591,465 0 13,591,465

Unrestricted (43,738,224) 1,490,413 (42,247,811) Total net position (21,540,506)$ 3,627,252$ (17,913,254)$

5


TŚĞ�sŝůůĂŐĞ͛Ɛ�ŶĞƚ�ƉŽƐŝƚŝŽŶ�ŝŶĐůƵĚĞƐ�Ψ9,683,882 of net investments in capital assets that are used to provide services to the citizens of the Village. Although they are reported net of debt, it should be noted that the resources needed to repay any debt must be provided from other sources since the related assets cannot be liquidated to repay liabilities. The Village also has restricted net position of $2,978,194, with a majority of this balance being resources restricted for capital projects and use within the TIF districts. Primarily as a result of noncurrent liabilities related to pension and OPEB plans, the Village has an unrestricted net deficit of $(39,630,773). The Village continues to manage its expenditures and revenues with an eye towards increasing the unrestricted fund amount to desired levels. The water and sewer fund has been improving operationally mainly due to passing along rate increases to water users. In previous years, the unrestricted net position of the business�type activities was a net deficit; however, due to increases over the past several years the fund now has positive unrestricted net position. For more detailed information, see the Statement of Net Position on pages 12 and 13. The following table is the condensed statement of activities for the fiscal year ended April 30, 2019:



Revenues

Program Revenues

Charges for Services 2,717,112$ 3,864,252$ 6,581,364$

General Revenues

Property taxes 8,874,371 0 8,874,371

Other taxes 4,486,467 0 4,486,467

Other 1,307,427 (2,181) 1,305,246

Total revenues 17,385,377 3,862,071 21,247,448

Expenses

General government 7,489,287 0 7,489,287

Public works 3,222,463 0 3,222,463

Public safety 8,226,566 0 8,226,566

Interest 396,465 0 396,465

Waterworks and sewerage 0 3,752,924 3,752,924

Municipal parking 0 27,564 27,564

Total expenses 19,334,781 3,780,488 23,115,269

Changes in Net Position (1,949,404) 81,583 (1,867,821)

6


The following table is the condensed Statement of Activities for the fiscal year ended April 30, 2018:



Revenues

Program Revenues

Charges for Services 2,173,014$ 3,898,186$ 6,071,200$

General Revenues

Property taxes 7,274,439 0 7,274,439

Other taxes 4,694,182 0 4,694,182

Other 1,270,614 1,807 1,272,421

Total revenues 15,412,249 3,899,993 19,312,242

Expenses

General government 6,546,920 0 6,546,920

Public works 3,131,270 0 3,131,270

Public safety 9,495,856 0 9,495,856

Interest 180,149 0 180,149

Waterworks and sewerage 0 3,847,978 3,847,978

Municipal parking 0 32,645 32,645

Total expenses 19,354,195 3,880,623 23,234,818

Changes in Net Position (3,941,946)$ 19,370$ (3,922,576)$

This chart summarizes how governmental activities are funded for the year ended April 30, 2019:

47%

0%14%

8%

30%

Revenues by Source � Governmental Activities

Property Grants Charges for services Misc. Intergovernmental

7


Property taxes fund 47 percent of governmental activities. This strong reliance on property tax limits Village spending. The Village has continued to provide the same level of services for its residents by continuing to adhere to its prescribed fiscal controls. The challenges presented by limited revenue have been met through sound budget planning, resulting in an improved fiscal outlook for the Village The following table shows expenditures by function and related programming revenues. As shown, all governmental functions rely significantly on general revenues to help fund expenditures.

Business�type activities are to be funded through charges for related services. This year, water and sewerage revenues were over its expenses by $89,089, which includes depreciation expense of $238,563. The commuter parking lot had expenses of $7,506 more than its revenue this year due to lagging growth in commuter parking revenues. The Village continues to work to ensure these operations are funded through charges and not dependent on general revenues. &ŝŶĂŶĐŝĂů��ŶĂůǇƐŝƐ�ŽĨ�ƚŚĞ�'ŽǀĞƌŶŵĞŶƚ͛Ɛ�&ƵŶĚƐ Governmental funds provide information on near�term inflows, outflows and balances of spendable ƌĞƐŽƵƌĐĞƐ͘�hŶĂƐƐŝŐŶĞĚ�ĨƵŶĚ�ďĂůĂŶĐĞ�ŵĂǇ�ƐĞƌǀĞ�ĂƐ�Ă�ƵƐĞĨƵů�ŵĞĂƐƵƌĞ�ŽĨ�Ă�ŐŽǀĞƌŶŵĞŶƚ͛Ɛ�ŶĞƚ�ƌĞƐŽƵƌĐĞƐ�available for spending at the end of a fiscal year. �ƚ�ƚŚĞ�ĞŶĚ�ŽĨ�ƚŚĞ�ĐƵƌƌĞŶƚ�ĨŝƐĐĂů�ǇĞĂƌ͕�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�governmental funds reported combined ending fund balances of $13,019,928, a decrease of $4,496,391 from the prior year. The unassigned fund balance of the total governmental funds represents 17 percent of total governmental fund expenditures. Proprietary funds provide the same type of information found in the government�wide financial statements, but in more detail. Unrestricted net position of the waterworks and sewerage fund was $1,717,125. The majority of the unrestricted amount was comprised of receivables. After several years of negative balances, the waterworks and sewerage fund has returned to a positive balance, allowing

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

General Services Public Works Public Safety

Expenditures and Program Revenues by Function

Expenses Program Revenues

8


the Village to proactively address water�related infrastructure issues without the need to borrow funds. The unrestricted net position of the commuter parking lot fund was $66,281. General Fund Budgetary Highlights There were no amendments made to the original budget this year. Actual general fund revenues were higher than budgeted revenues by $469,927, with higher than expected building permits and miscellaneous revenues. General expenditures were higher than budgeted expenditures by $913,392 driven by increases in general services and police department expenses. This ǇĞĂƌ͛Ɛ�'ĞŶĞƌĂů�&ƵŶĚ�ƐŚŽǁƐ�Ă�Ψ(413,814) fund balance decrease. The Village continually tries to keep expenditure increases in line with revenue increases. In fiscal year 2019, property tax revenue was $8,022,868, a significant increase compared to 2018 property tax revenue of $6,775,460. /ŶƚĞƌŐŽǀĞƌŶŵĞŶƚĂů�ƌĞǀĞŶƵĞƐ͕�ǁŚŝĐŚ�ŝƐ�ƉƌŝŵĂƌŝůǇ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ƉŽƌƚŝŽŶ�of state sales, home rules sales, fuel and utilitiy, and income taxes, decreased $57,749 (1.4 percent) to $4,070,590 from $4,128,339. Expenditures for the General Fund increased $879,960 from the prior year, due to increased public safety payroll and increases in insurance costs. The percent increases in expenditures by major functions of the Village are shown in the following tabulations:

Expenditure by Function

2019 Amount

Percent of Total

2018 Amount

Percent of Total

Increase (Decrease)

Amount %

General Services $5,800,344 35% $4,713,128 30% $1,087,216

Administrative Office 301,416 2% 310,914 2% (9,498)

Communications and

Community Relations 188,113 1% 200,191 1% (12,078)

Capital Outlay 79,572 1% 99,378 1% (19,806)

Public Works 1,612,640 10% 1,575,133 10% 37,507

Police 4,829,479 29% 4,503,593 29% 325,886

Fire 2,424,301 15% 2,538,323 16% (114,022)

Inspection 905,273 5% 1,032,311 7% (127,038)

Insurance 385,956 2% 674,163 4% (288,207)

$16,527,094 $15,647,134 $879,960

The unassigned fund balance of the General Fund as of April 30, 2019 was $2,232,893. Special Revenue Fund Highlights The Village receives revenue from various sources that are restricted by law to expenditures for specific purposes. These are identified as Special Revenue Funds. dŚĞ�sŝůůĂŐĞ͛Ɛ�^ƉĞĐŝĂů�ZĞǀĞŶƵĞ�&ƵŶĚ�ŝŶĐůƵĚĞƐ�the Motor Fuel Tax Fund.

9


Motor Fuel Tax (MFT) revenues are collected by the state on the sale of fuels and distributed based primarily upon a per capita figure. MFT funds are special revenues due to the restrictions to utilize them on transportation projects, related maintenance repairs or improvements. MFT Fund revenues in fiscal year 2019 were $389,676, an increase of $23,833 (6 percent) compared to $365,843 in fiscal year 2018. Expenditures exceeded revenues and other financing sources during the year by $397,703, resulting in the current fund balance of $67,503. Other Major Fund Highlights The Village has established TIF District funds to account for incremental property taxes of the TIF Districts and the use of those funds. Of these four TIF funds, two were considered major funds in fiscal year 2019, Hazel Crest Proper TIF and 183rd Street TIF. The Hazel Crest Proper TIF had a fund balance decrease of $63,194 and the 183rd Street TIF had a fund balance decrease of $211,787. Both funds had minimal activity during the year and have fund balances of $1,038,940 and $1,673,074, respectively, restricted for capital projects within the TIF districts. The 2017 Bond Fund was created to account for the proceeds from the 2017 general obligation bond proceeds. During the year ended April 30, 2019, the fund had a decrease in fund balance of $3,600,298 due to the use of proceeds in the Village Hall construction project. Waterworks and Sewerage Fund Highlights For fiscal year ended April 30, 2019, water revenues totaled $3,844,194, a decrease of $(26,751) over the prior year. Expenses for the year totaled $3,752,924, a decrease of $(95,054) over the prior year. A net positive change in net position of $91,270 resulted from operations of the Waterworks and Sewerage Fund for fiscal year 2019. The following table presents key statistical information over the past five years for the water and sewerage system.

2019 2018 2017 2016 2015

Number of Metered Accounts (estimate)

4630 4630 4630 4630 4630

Gross Revenue $3,844,194 $3,870,945 $3,863,390 $3,833,445 $4,191,507

Expense $3,752,924 $3,847,978 $3,948,927 $4,017,054 $3,644,168

Operating Income (Loss) $91,270 $22,967 $(85,537) $(183,609) $547,339

Capital Asset and Debt Administration dŚĞ�sŝůůĂŐĞ͛Ɛ�ŝŶǀĞƐƚŵĞŶƚ�ŝŶ�ĐĂƉŝƚĂů�ĂƐƐĞƚƐ�ĨŽƌ�ŝƚƐ�ŐŽǀĞƌŶŵĞŶƚĂů�ĂŶĚ�ďƵƐŝŶĞƐƐ�type activities as of April 30, 2019, amounts to $13,705,900, net of depreciation. This investment in capital assets includes land and improvements, buildings and improvements, machinery and equipment, streets, sidewalks, storm sewers, manholes, hydrants, valves, streetlights and the water distribution system. More details on the sŝůůĂŐĞ͛Ɛ�ĐĂƉŝƚĂů�ĂƐƐĞƚƐ�ĐĂŶ�ďĞ�ĨŽƵŶĚ�ŝŶ�EŽƚĞ�ϰ�ŽĨ�ƚŚĞ�ĨŝŶĂŶĐŝĂů�ƐƚĂƚĞŵĞnts. At the end of the current year, the Village had total general obligation bond debt of $10,020,000 and general obligation debt certificates of $77,000. DŽƌĞ�ĚĞƚĂŝůƐ�ŽŶ�ƚŚĞ�sŝůůĂŐĞ͛Ɛ�ůŽŶŐ�term debt obligations can be found in Note 5 of the financial statements.

10


�ĐŽŶŽŵŝĐ�&ĂĐƚŽƌƐ�ĂŶĚ�EĞǆƚ�zĞĂƌ͛Ɛ��ƵĚŐĞƚ The Village continues to attract new businesses into its boundaries, providing both increased convenience for its residents and a fiscal benefit to the Village. Several franchised stores and others have expressed interest in opening in the Village. With help from incentives offered by the State of Illinois, the Village was able to convince Mi�Jack Products, Inc., one of its largest employers, to keep Hazel Crest as its corporate headquarters; indeed, Mi�Jack has begun to expand its operations in the area. The lowering of the 171st Street viaduct in the Hazel Crest Proper area is anticipated to be a trigger for the Transit Oriented Development Plan, which was initiated in fiscal year 2007. A Tax Incremental Financing District is already in place and the Village rezoned the area delineated within the TIF District to promote the Plan. Transit Oriented Development (TOD) focuses on development in and around transit stations, serving the commuter and the local community. The Hazel Crest Metra Electric Station will be the focal point for this development. The area is a nexus point for commuters arriving by bus, auto and on foot to board the train to Chicago. The goal of the TOD plan is to redevelop the area to serve these commuters as well as the local community, with convenient services. In efforts to make the Village of HĂǌĞů��ƌĞƐƚ�͞^ĞŶŝŽƌ�&ƌŝĞŶĚůǇ͕͟�ƚŚĞ�sŝůůĂŐĞ has instituted a full range of Senior Services. The Village offers transportation for seniors 60 years of age and older, as well as physically challenged individuals. Other major developments are as follows: � Local cable programming, Hazelnut Festival and Chamber of Commerce reinstitution � Beginning seventh year with E�Com Emergency Dispatch Center � Water station improvements � Village of Hazel Crest cellular application Requests for Information This financial report is designed to provide a general overvŝĞǁ�ŽĨ�ƚŚĞ�sŝůůĂŐĞ�ŽĨ�,ĂǌĞů��ƌĞƐƚ͛Ɛ�ĨŝŶĂŶĐĞƐ�ĨŽƌ�Ăůů�ƚŚŽƐĞ�ǁŝƚŚ�ĂŶ�ŝŶƚĞƌĞƐƚ�ŝŶ�ƚŚĞ�ŐŽǀĞƌŶŵĞŶƚ͛Ɛ�ŽƉĞƌĂƚŝŽŶƐ͘�YƵĞƐƚŝŽŶƐ�ĐŽŶĐĞƌŶŝŶŐ�ĂŶǇ�ŽĨ�ƚŚĞ�ŝŶĨŽƌŵĂƚŝŽŶ�provided in this report or requests for additional financial information should be addressed to the Hazel Crest Village Manager, Dante Sawyer, 3601 W. 183rd Street, Hazel Crest, IL 60429.

11

Basic Financial Statements

Governmental Business�type

Activities Activities Total

ASSETSCash and cash equivalents 11,772,667$ 1,900,524$ 13,673,191$

Receivables

Property taxes 4,793,110 0 4,793,110

Accounts 544,001 954,329 1,498,330

Intergovernmental 1,037,243 0 1,037,243

Prepaid items 942,206 0 942,206

Property held for resale 541,973 0 541,973

Noncurrent

Capital assets, not being depreciated 6,353,806 120,337 6,474,143

Capital assets, net of depreciation 5,403,783 1,827,974 7,231,757

Total assets 31,388,789$ 4,803,164$ 36,191,953$

DEFERRED OUTFLOWS OF RESOURCES

Pension items � IMRF 1,511,937$ 381,176$ 1,893,113$

Pension items � Firefighters' Pension Fund 2,034,964 0 2,034,964

Pension items � Police Pension Fund 272,430 0 272,430

OPEB items 787,871 0 787,871

Total deferred outflows of resources 4,607,202 381,176 4,988,378

Total assets and deferred outflows of resources 35,995,991$ 5,184,340$ 41,180,331$

Village of Hazel Crest, IllinoisStatement of Net Position

April 30, 2019

See Accompanying Notes

12

Governmental Business�type

Activities Activities Total

LIABILITIESAccounts payable 1,595,113$ 242,802$ 1,837,915$

Accrued payroll and related liabilities 13,478 0 13,478

Unearned revenue 44,608 0 44,608

Deposits 256,530 283,346 539,876

Accrued interest 164,351 0 164,351

Noncurrent liabilities

Due within one year 607,282 38,182 645,464

Due in more than one year 50,474,057 841,306 51,315,363

Total liabilities 53,155,419$ 1,405,636$ 54,561,055$

DEFERRED INFLOWS OF RESOURCES

Deferred revenue � property tax 4,701,543$ 0$ 4,701,543$

Pension items � IMRF 274,083 69,869 343,952

Pension items � Firefighters' Pension Fund 3,306,467 0 3,306,467

Pension items � Police Pension Fund 2,805,589 0 2,805,589

OPEB items 2,430,422 0 2,430,422

Total deferred inflows of resources 13,518,104$ 69,869$ 13,587,973$

Total liabilities and deferred inflows of resources 66,673,523$ 1,475,505$ 68,149,028$

Net investment in capital assets 7,758,453$ 1,925,429$ 9,683,882

Restricted:

MFT projects 67,503 0 67,503

Capital projects 2,910,691 0 2,910,691

Unrestricted (deficit) (41,414,179) 1,783,406 (39,630,773)

Total net position (30,677,532)$ 3,708,835$ (26,968,697)$

Total liabilities, deferred inflows of resources,

and net position 35,995,991$ 5,184,340$ 41,180,331$

NET POSITION

Village of Hazel Crest, IllinoisStatement of Net Position (continued)

April 30, 2019


13

Operating Capital

Charges for Grants and Grants and Governmental Business�Type

Expenses Services Contributions Contributions Activities Activities Total

Primary government:

Governmental activities:

General services 7,489,287$ 2,245,395$ 0$ 0$ (5,243,892)$ 0$ (5,243,892)$

Public works 3,222,463 0 0 0 (3,222,463) 0 (3,222,463)

Public safety 8,226,566 471,401 0 0 (7,755,165) 0 (7,755,165)

Interest 396,465 316 0 0 (396,149) 0 (396,149)

Total governmental activities 19,334,781 2,717,112 0 0 (16,617,669) 0 (16,617,669)

Business�type activities:

Waterworks and sewerage 3,752,924 3,844,194 0 0 0 91,270 91,270

Commuter parking lot 27,564 20,058 0 0 0 (7,506) (7,506)

Total business�type activities 3,780,488 3,864,252 0 0 0 83,764 83,764

Total primary government 23,115,269$ 6,581,364$ 0$ 0$ (16,617,669)$ 83,764$ (16,533,905)$

General revenues:

Taxes:

Property 8,874,371 0 8,874,371

Intergovernmental / unrestricted 4,486,467 0 4,486,467

Licenses and permits 191,576 0 191,576

Miscellaneous 1,013,599 (2,181) 1,011,418

Interest 102,252 0 102,252

Total general revenues 14,668,265 (2,181) 14,666,084

Change in net position (1,949,404)$ 81,583$ (1,867,821)$

Net position

May 1, 2018 (as restated) (28,728,128) 3,627,252 (25,100,876)

April 30, 2019 (30,677,532)$ 3,708,835$ (26,968,697)$

Village of Hazel Crest, IllinoisStatement of Activities

Year Ended April 30, 2019

Program Revenues

Net (Expense) Revenue and Changes in Net Position


14

TIF District TIF District Nonmajor Total

MFT 183rd Street Hazel Crest 2017 Bond Governmental Governmental

General Fund Fund Fund Proper Fund Fund Funds Funds

ASSETS

Cash and cash equivalents 660,347$ 2,500$ 1,732,453$ 667,500$ 7,355,231$ 1,354,636$ 11,772,667

Receivables

Property taxes 4,455,568 0 0 0 0 337,542 4,793,110

Accounts 544,001 0 0 0 0 0 544,001

Intergovernmental 972,233 65,010 0 0 0 0 1,037,243

Due from other funds 852,080 0 0 0 0 0 852,080

Prepaid items 942,206 0 0 0 0 0 942,206

Property held for resale 0 0 0 541,973 0 0 541,973

Total assets 8,426,435$ 67,510$ 1,732,453$ 1,209,473$ 7,355,231$ 1,692,178$ 20,483,280$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable 564,204$ 7$ 47,454$ 4,375$ 948,544$ 30,529$ 1,595,113$

Accrued payroll and related 13,478 0 0 0 0 0 13,478

Unearned revenue 44,608 0 0 0 0 0 44,608

Deposits 256,530 0 0 0 0 0 256,530

Due to other funds 0 0 11,925 166,158 510,123 163,874 852,080

Total liabilities 878,820$ 7$ 59,379$ 170,533$ 1,458,667$ 194,403$ 2,761,809$

Deferred inflows of resources:

Unavailable property taxes 4,372,516 0 0 0 0 329,027 4,701,543

Fund balances: ` `

Nonspendable:

Prepaid items 942,206$ 0$ 0$ 0$ 0$ 0$ 942,206$

Committed:

Property held for sale 0 0 0 541,973 0 0 541,973

Restricted:

MFT projects 0 67,503 0 0 0 0 67,503

Debt service 0 0 0 0 5,896,564 428,098 6,324,662

Capital projects 0 0 1,673,074 496,967 0 740,650 2,910,691

Unassigned 2,232,893 0 0 0 0 0 2,232,893

Total fund balances 3,175,099 67,503 1,673,074 1,038,940 5,896,564 1,168,748 13,019,928

Total liabilities, deferred inflows

of resources and fund balances 8,426,435$ 67,510$ 1,732,453$ 1,209,473$ 7,355,231$ 1,692,178$ 20,483,280$

Village of Hazel Crest, IllinoisBalance Sheet � Governmental Funds

April 30, 2019

Major Funds


15

Total Fund Balance � Governmental Funds 13,019,928$

Amounts reported for governmental activities are different because:

Capital assets used in governmental activities are not financial resources

and therefore not reported in the funds:

Capital assets 134,442,417

Accumulated depreciation (122,684,828)

Net capital assets 11,757,589

Net pension liabilities for the Illinois Municipal Retirement Fund,

Police Pension Fund, and Firefighters' Pension Funds are recorded in

the statement of net position:

Illinois Municipal Retirement Fund (3,243,405)

Firefighters' Pension Fund (5,285,142)

Police Pension Fund (17,762,578)

Differences between expected and actual experiences, assumption changes, and

net differences between projected and actual earnings are recognized as

deferred outflows and deferred inflows of resources.

Illinois Municipal Retirement Fund 1,237,854

Firefighters' Pension Fund (1,271,503)

Police Pension Fund (2,533,159)

Other postemployment benefit obligations (1,642,551)

Net other postemployment benefit libaility is not recorded in

governmental funds but is recorded as a liability in the statement

of net position. (14,032,100)

Some liabilities reported in the statement of net assets do not require

the use of current financial resources and therefore are not reported as

liabilities in governmental funds.

These liabilities consist of:

General obligation bonds (10,246,798)

General obligation debt certificates (77,000)

Compensated absences (434,316)

Accrued interest (164,351)

Net Position of Governmental Activities (30,677,532)$

Village of Hazel Crest, IllinoisReconciliation of Balance Sheet � Governmental Funds

to Statement of Net Position

April 30, 2019


16

TIF District TIF District Non�major Total

MFT 183rd Street Hazel Crest Proper 2017 Bond Governmental Governmental

General Fund Fund Fund Fund Fund Funds Funds

REVENUES

Taxes:

Property 8,022,868$ 0$ 20,408$ 130,349$ 0$ 700,746$ 8,874,371$

Intergovernmental 4,070,590 385,519 0 0 0 30,358 4,486,467

Fines and forfeitures 1,590,869 0 0 0 0 0 1,590,869

Licenses and permits 191,576 0 0 0 0 0 191,576

Charges for services 1,125,927 0 0 0 0 316 1,126,243

Interest 97,851 4,157 18 226 0 0 102,252

Miscellaneous 1,013,599 0 0 0 0 0 1,013,599

Total revenues 16,113,280$ 389,676$ 20,426$ 130,575$ 0$ 731,420$ 17,385,377$

EXPENDITURES

Current:

General services 5,800,344$ 179,114$ 232,213$ 193,769$ 23,451$ 30,619$ 6,459,510$

Administrative office 301,416 0 0 0 0 0 301,416

Communications and

community relations 188,113 0 0 0 0 0 188,113

Insurance 385,956 0 0 0 0 0 385,956

Public works 1,612,640 0 0 0 0 0 1,612,640

Police 4,829,479 0 0 0 0 0 4,829,479

Fire 2,424,301 0 0 0 0 0 2,424,301

Inspection 905,273 0 0 0 0 0 905,273

Debt service:

Principal 0 59,354 0 0 0 315,000 374,354

Interest and fees 0 2,186 0 0 0 383,890 386,076

Capital outlay 79,572 546,725 0 0 3,388,353 0 4,014,650

Total expenditures 16,527,094$ 787,379$ 232,213$ 193,769$ 3,411,804$ 729,509$ 21,881,768$

EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES (413,814) (397,703) (211,787) (63,194) (3,411,804) 1,911 (4,496,391)

OTHER FINANCING SOURCES (USES)

Transfers in 0 0 0 0 0 188,494 188,494 Transfers out 0 0 0 0 (188,494) 0 (188,494)

Total other financing

sources (uses) 0$ 0$ 0$ 0$ (188,494)$ 188,494$ 0$

NET CHANGE IN FUND BALANCES (413,814) (397,703) (211,787) (63,194) (3,600,298) 190,405 (4,496,391)

FUND BALANCES

3,588,913 465,206 1,884,861 1,102,134 9,496,862 978,343 17,516,319

3,175,099$ 67,503$ 1,673,074$ 1,038,940$ 5,896,564$ 1,168,748$ 13,019,928$

May 1, 2018

April 30, 2019

Year Ended April 30, 2019Governmental Funds

Statement of Revenues, Expenditures, and Changes in Fund Balances

Village of Hazel Crest, Illinois

Major Funds


17

Net Change in Fund Balances � Total Government Funds (4,496,391)$

Amounts reported for governmental activities in the

Statement of Activities are different because:

Governmental funds report capital outlays as expenditures while

governmental activities report depreciation expense to allocate

those expenditures over the life of the assets.

Capital outlay 4,014,650

Depreciation (1,579,667)

The issuance of long�term debt provides current financial resources to

governmental funds, but repayment reduces long�term liabilities

in the statement of net assets.

Principal retirement 374,354

The change in the net pension liability is not a source or use

of a financial resource.

Illinois Municipal Retirement Fund (1,947,412)

Firefighters' Pension Fund (249,684)

Police Pension Fund 443,129

The change in the net other postemployment benefit liability

is not a source or use of a financial resource. 902,403

The change in the deferred outflows/inflows of resources

is not a source or use of a financial resource.

Illinois Municipal Retirement Fund 1,933,701

Firefighters' Pension Fund 196,093

Police Pension Fund 143,107

Other postemployment benefit obligations (1,642,551)

Some items reported in the Statement of Net Position do not require

financial resources and, therefore, are not reported as liabilities

in government funds.

These activities consist of:

Change in compensated absences (30,747)

Change in accrued interest (20,006)

Change in unamortized bond premium 9,617

Change in Net Position of Governmental Activities (1,949,404)$

Village of Hazel Crest, IllinoisReconciliation of the Statement of Revenues, Expenditures

and Changes in Fund Balances � Governmental Fundsto the Statement of Activities



18

Major Non�Major

Waterworks and Commuter

Sewerage Fund Parking Lot Total

CURRENT ASSETSCash and cash equivalents 1,834,243$ 66,281$ 1,900,524$

Accounts receivable 954,329 0 954,329

Total current assets 2,788,572 66,281 2,854,853

NONCURRENT ASSETS

Capital Assets:

Land 71,509 48,828 120,337

Land improvements 45,000 263,042 308,042

Buildings and improvements 472,519 0 472,519

Machinery and equipment 2,147,413 0 2,147,413

Infrastructure 11,508,660 0 11,508,660

Less accumulated depreciation (12,459,604) (149,056) (12,608,660)

Total noncurrent assets 1,785,497 162,814 1,948,311

DEFERRED OUTFLOWS OF RESOURCES

Pension items � IMRF 381,176 0 381,176

Total assets and deferred outflows of resources 4,955,245$ 229,095$ 5,184,340$

CURRENT LIABILITIESAccounts payable 242,802$ 0$ 242,802$

Deposits 283,346 0 283,346

Obligation under capital lease, current 22,882 0 22,882

Compensated absences 15,300 0 15,300

Total current liabilities 564,330 0 564,330

NONCURRENT LIABILITIES

Compensated absences 19,707 0 19,707

Obligation under capital lease, long�term 0 0 0 Net pension liability 821,599 0 821,599

Total noncurrent liabilities 841,306 0 841,306

Total liabilities 1,405,636 0 1,405,636

DEFERRED INFLOWS OF RESOURCES

Pension items � IMRF 69,869 0 69,869

Net investment in capital assets 1,762,615 162,814 1,925,429

Unrestricted 1,717,125 66,281 1,783,406

Total net position 3,479,740 229,095 3,708,835

Total liabilities, deferred inflows, and

net position 4,955,245$ 229,095$ 5,184,340$

Village of Hazel Crest, IllinoisStatement of Net Position

April 30, 2019

ASSETS

LIABILITIES

NET POSITION

Proprietary Funds

Business�type Activities � Enterprise Funds


19

Major Non�Major


Sewerage Fund Parking Lot Fund Total

Operating revenues

Charges for services 3,702,500$ 20,036$ 3,722,536$

Fines and fees 133,369 0 133,369

Miscellaneous 8,325 22 8,347

Total operating revenues 3,844,194 20,058 3,864,252

Operating expenses

Operations 3,514,361 22,303 3,536,664

Depreciation 238,563 5,261 243,824

Total operating expenses 3,752,924 27,564 3,780,488

Operating income (loss) 91,270 (7,506) 83,764

Non�operating expenses

Interest Expense (2,181) 0 (2,181)

Change in net position 89,089 (7,506) 81,583

Net position

3,390,651 236,601 3,627,252

3,479,740$ 229,095$ 3,708,835$

Village of Hazel Crest, IllinoisStatement of Revenues, Expenses, and Changes in Net Position

Proprietary Funds


Business�type Activities � Enterprise Funds

April 30, 2019

May 1, 2018


20

Non�major


Sewerage Fund Parking Lot Fund Total

Cash flows from operating activities

Receipts from customers 3,895,448$ 20,058$ 3,915,506$

Payments to suppliers (2,664,628) (22,303) (2,686,931)

Payments to employees (884,174) 0 (884,174)

Net cash from operating activities 346,646 (2,245) 344,401

Cash flows from capital and related financing activities

Principal paid on capital debt (21,817) 0 (21,817)

Purchase of capital assets (10,596) 0 (10,596)

Cash paid for interest (2,181) 0 (2,181)

Net cash from capital and related financing activities (34,594) 0 (34,594)

Net increase (decrease) in cash and cash equivalents 312,052 (2,245) 309,807

Cash and cash equivalents, beginning of year 1,522,191 68,526 1,590,717

Cash and cash equivalents, end of year 1,834,243$ 66,281$ 1,900,524$

Reconciliation of operating loss to net

cash from operating activities

Operating income (loss) 91,270$ (7,506)$ 83,764$

Adjustments to reconcile operating loss to

net cash from operating activities

Depreciation 238,563 5,261 243,824

(Increase) decrease in receivables 39,469 0 39,469

(Increase) decrease in prepaids 9,717 0 9,717

Increase (decrease) in deposits 11,785 0 11,785

(Increase) decrease in prepaids (259,584) 0 (259,584)

Increase (decrease) in deferred inflows (252,787) 0 (252,787)

Increase (decrease) in compensated balances (10,330) 0 (10,330)

Increase (decrease) in net pension liability 445,925 0 445,925

Increase (decrease) in payables 32,618 0 32,618

Net cash provided from operating activities 346,646$ (2,245)$ 344,401$

Village of Hazel Crest, IllinoisStatement of Cash Flows

Proprietary Funds


Major


21

ASSETSCash and cash equivalents 1,574,249$

Accrued interest 57,969

Prepaid expenses 5,415

Investments, at fair value:

U.S. Treasury notes 4,466,114

U.S. Government agencies and mortgage pools 2,854,327

Corporate bonds 3,499,220

Municipal bonds 651,587

Equity mutual funds 13,435,107

Total assets 26,543,988$

LIABILITIES

Accounts payable 14,590

NET POSITION RESTRICTED FOR PENSIONS 26,529,398$

Village of Hazel Crest, IllinoisCombined Statement of Fiduciary Net Position

Pension Trust Funds

April 30, 2019


22

ADDITIONSContributions:

Employer 2,033,583$

Plan members 378,855

Total contributions 2,412,438

Investment income:

Net appreciation in fair value of investments 1,491,012

Interest and dividends 483,456

Total investment income 1,974,468

Less: investment expense (49,923)

Net investment income 1,924,545

Total additions 4,336,983

DEDUCTIONS

Benefits and refunds 1,705,590

Administrative expenses 97,413

Total deductions 1,803,003

NET INCREASE 2,533,980

NET POSITION RESTRICTED FOR PENSIONS

23,995,418

26,529,398$ April 30, 2019

Village of Hazel Crest, IllinoisCombined Statement of Changes in Fiduciary Net Position

Pension Trust Funds


May 1, 2018


23

Village of Hazel CrestNotes to Financial Statements

Note 1: Summary of Significant Accounting Policies

Nature of Activities

The Village of Hazel Crest, Illinois, is located in Cook County, Illinois and was first incorporated in 1912 under theprovisions of the constitution and general statutes of the State of Illinois. The Village operates under a council-manager form of government and provides a full range of services including public safety, roads, planning, zoningand general administrative services.

The accounting policies of the Village of Hazel Crest conform to accounting principles generally accepted in theUnited States as applicable to governments. The Governmental Accounting Standards Board (GASB) is theaccepted standard-setting body for establishing governmental accounting and financial reporting principles.

Financial Reporting Entity

As defined by generally accepted accounting principles established by the GASB, the financial reporting entityconsists of the primary government, as well as component units, which are legally separate organizations forwhich elected officials of the primary government are financially accountable. Financial accountability is definedas:

(1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to impose will bythe primary government, or (b) the possibility that the component unit will provide a financial benefit to orimpose a financial burden on the primary government; or

(2) Fiscal dependency on the primary government and the possibility that the component unit will provide afinancial benefit to or impose a financial burden on the primary government.

Financial benefit or financial burden is created if any one of the following relationships exists:

(1) The primary government is legally entitled to or has access to the component unit’s resources.

(2) The primary government is legally required or has assumed the obligation to finance the deficits of andprovide support to the component unit.

(3) The primary government is obligated in some manner for the other component unit’s debt.

Based upon the application criteria, no component units have been included within the reporting entity.

As a general rule, the effect of interfund services provided and used are not eliminated from the government-wide financial statements. Elimination of those charges would distort the direct costs and program revenues forthe various functions concerned.

24

Village of Hazel CrestNotes to Financial Statements

Note 1: Summary of Significant Accounting Policies (Continued)

Government-Wide and Fund Financial Statements

The government-wide statement of net position and statement of activities report the overall financial activity ofthe Village. Eliminations have been made to minimize the double counting of internal activities of the Village. Thefinancial activities of the Village consist of governmental activities, which are primarily supported by taxes andintergovernmental revenues, and business-type activities, which rely to a significant extent on fees and chargesfor services.

The statement of net position presents the Village’s non-fiduciary assets and liabilities with the differencereported in three categories:

Net investment in capital assets consists of capital assets, net of accumulated depreciation plus unspent bondproceeds to be used for future capital projects, reduced by outstanding balances for bonds, other debt anddeferred inflows of resources that are attributable to the acquisition, construction or improvement of thoseassets.

Restricted net position results when constraints placed on net position use are either externally imposed bycreditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enablinglegislation.

Unrestricted net position consists of net position that does not meet the criteria of the two preceding categories.

When both restricted and unrestricted resources a

village of hazel crest, illinoisvillageofhazelcrest.org/wp-content/uploads/2020/08/... ·...

Documents