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rviffaSE ofHOMERGLEN
Village of Homer Glen, Illinois
Comprehensive Annual Financial Report
Audit Report
For the Fiscal Year Ending April 30, 2012
VILLAGE OF HOMER GLEN,ILLINOIS
COMPREHENSI VEANNUAL FINANCIAL REPORTYEAR ENDED APRIL 30, 2012
PREPARED BY:FINANCE DEPARTMENT
JOHN SAWYERSVILLAGE TREASURLR
VILL GF: OF HOMER GLEN, ILLINOISCOMP"REHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED APRIL 30,2012
CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal
GrOA Certificate of Achievement
Names and Titles of Principal Officials
The Vi llagc of Homer G len, Illinois Organization Chart
FlNANCIAL SECTION:
Independcnt Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement ofNct Assets
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of Total Governmental Fund Balance to Net Assets ofGovernmental Activities
Statement of Revenues, Expenditures and Changes 1ll fund Balances -Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes inFund Balances of Governmental Funds to the Statement of Activities
Vif
Vlli
IX
x -XI
XII- XIX
2
3 - 4
5
6-7
8
VILLAGE OF HOI\'1ER GLEN, ILLINOISCOMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED APRIL 30, 2012
CONTENTS
Statements of Revenues, Expenditures and Changes III Fund Balances -Budget and Actual (l\'on-GAAP Budgetary Basis):
General Fund
Motor Fuel Tax Fund 12 - 13
Park Fund 14 - 15
Statement of Fiduciary Assets and Liabilities - Agency Fund - RevolvingEscrow Fund 16
Notes to Basic Financial Statements 17 - 28
Required Supplementary Information:
Schedule of Analysis of Funding Progress -Illinois Municipal Retirement Fund 29 - 30
Supplementary Information;
Capital Projects Fund:
Schedule of Revenues, Expend iturcs and Changes in Fund Balances - Budgetand Actual (Non-GAAP Budgetary Basis) 31 - 32
Agency Fund:
Revolving Escrow Fund:
S taternent of C han ges in Assets and Liab iIit ies 33
STATISTICAL SECTION:
Net Assets by Component 34
Change in Net Assets 35 - 36
VILL GE OF 1I0l\lER GLEN, ILLINOISCOMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED APRIL 30, 2012
CONTENTS
Fund Balances of Governmental Funds 37
Changes in Fund Balances of Governmental Funds 38Intergovernmental Revenues by Source 39
Governmental Own-Source Revenues 40
Direct and Overlapping Bonded Debt 41
Demographic and Economic Information 42Full-time Equivalent Employees 43
Capital Asset Statistics 44
Operating Indicators by Function 45
INTRODUCTORY SECTION
Qh[[a9£ of
HOMERGLEN
14933 S. Founders CrossingHomer Glen, Illinois 60491
Phone (708) 301-0632Fax (70S) 301-S407
Community wId c!Valuu ... in dtaunony
October 1912012
Dear Residents of the Village of Homer Glen, the Honorable Mayor James Daley and theVillage Board of Trustees:
We are happy to provide you with the Comprehensive Annual Financial Report (CAFR) for theVillage of Homer Glen. This Comprehensive Annual Financial Report covers all aspects ofVillage finances. The remainder of this letter of transmittal is divided into various sectionsdiscussing different aspects of the Village of Homer Glen's financial performance.
:finance Reporting AwaraThe Government Finance Officer's Association of the United States and Canada (GFOA)awarded a "Certificate of Achievement for Excellence in Financial Reporting" to the Village ofHomer Glen for its comprehensive annual financial report for the fiscal year ending April 30,2011. This was the tenth consecutive year that the Village of Homer Glen has achieved thisprestigious award. In order to be awarded a Certificate of Achievement, a government mustpublish an easily readable and efficiently organized comprehensive annual financial report. Thisreport must satisfy both generally accepted accounting principals and applicable legalrequiremen is.
A Certificate of Achievement is valid for a period of one year. We believe that our currentcomprehensive annual financial report meets the Certificate of Achievement Program'srequirements and we are submitting it to the GFOA to determine its eligibility for anotherccrt iiicate award.
IntroductionManagement Responsibility for Financial InformationThis CAFR covers the fiscal year May 1, 20 II to April 30, 2012. The Village believes that thedata. as presented, is accurate in all material respects. Responsibility for the accuracy andcompleteness of this data rests with the Village.
The management of the Village of Homer Glen is responsible for maintaining accurate financialrecords in order to ensure efficiency and thc accountability of public funds. The accounts of theVillage of Homer Glen arc both organized and operated on the basis of funds. A fund is anindependent fiscal and accounting entity with a self-balancing set of accounts. fund accountingsegregates funds according to their intended purpose and is used to aid management inaccounting for resources. The Village maintains a minimum number of funds to account for itsoperations. At this time the Village utilizes only governmental funds, which include the GeneralFund, Motor fuel Tax Fund, Park Fund and Capital Projects Fund. The Village also maintainsan Agency Fund to account for funds held in escrow for professional fees incurred in connectionwith development. A more detailed explanation of the funds utilized is available in the financialsection of the CArR report.
In order to ensure the accuracy of its financial position the Village engages an independentauditor to examine the Village s financial statements. The Village has received an unqualifiedopinion from the independent audit firm of Mulcahy, Pauritsch, Salvador, Ltd., verifying theaccuracy of the Village's financial statements for the fiscal year.
'Economic Condition anaOutiook
Overview of Local EconomyThe Village of Homer Glen is one of Illinois' newest municipalities. By referendum vote, theVillage was incorporated on April 17.2001. It had a population of 25,069 as of October 31,2008 and therefore functions as a Home Rule community. The official 20 10 Decennial Censusfigures were certified on March 3, 2011 indicating a population of 24,220. The Village coversan area of approximately 22 square miles. Homer Glen is a residential community withsignificant amounts of open space and farmland.
The Village has commercial areas that generate a significant amount of sales tax revenue. Theexistence of sales tax revenue currently helps the Village operate without levying eithermunicipal property or utility taxes. The Village officially adopted a Comprehensive Plan in early2005 to help define and manage future growth.
Information Regarding Major Industries Affecting the Local EconomyThere is no one significant employer of Village residents located within the Village of HomerGlen. There are several senior care and residential facilities, educational facilities, commercialstores and governmental offices that employ significant numbers of individuals. Sales texreceipts, from commercial retail establishments, are the most important contributor to the Villageorganization's revenue stream. The completion of the 1-355 tollway extension, through WillCounty, will be spurring additional commercial development in the community, especially along1591h Street.
Future Economic OutlookThe Village of Homer Glen has shown an upward trend in growth, increasing from an estimatedpopulation of 22,269 (2000 census) to 24,083 (2004 special census) and then an increase to25,069 (2008 special census). The 25.000 population threshold certified the Village as a homerule community. The recent 2010 Decennial Census shows a slight decline in population to
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24.220. Consequently, the residents will be asked to consider a referendum in 2012 to re-committo the Village's home rule status.
Homer Glen is located almost wholly in Homer Township and constitutes a majority of theTownship's area and population. A 2004 annexation extended the Village's southeast boundaryinto New Lenox Township. Horner Township ligures indicate a growth of 35% over the past 10years. Other census Ligures for Homer Township show a significant growth in income and homevalues, (See Fig, 1)
'lg,
Median I-Iouschold Incomc Median Value OwnerOccupied Housing
1999 2010 1999 2010Homer Township S79.793 $103,603 S217,800 $356,000will County S62,238 $85,488 S154,300 $240.500
There arc over 5,000 acres of land in the Village of Homer Glen that are currently being farmed.For the most part, this acreage is owned by developers or investors. This leaves an incrediblepotential for growth that must be managed carefully. The Village has enacted construction andcommercial development ordinances to help preserve the Village's character, along with recentupdates to the Village's zoning ordinance. Fire codes have been unified throughout the Village.Another ordinance established exterior construction standards for residential and commercialstructures requiring first floor masonry. In 2006, the Village Board approved a ConservationDesign Ordinance for new residential development that will require between 20-50% of the landto be reserved for open space and help preserve environmentally sensitive areas.
Major Initiatives
Current Planning and Capital ProjectsSeveral initiati ves were successfully implemented III f.Y 11-12. Those initiatives arc J istcdbelow,
• Negotiated & obtained a lease agreement with ComEd for the construction of the firstphase 0f the Heroes T rai I mult i-usc path.
• Completed construction 0 r the Iirst phase of the Heroes Trail.• Continue final design/development or the Oak Valley Drainage Project, Phase II,
including the acquisition of casement,• Continue final design of the Mcadowcrest Drainage Project.• Completed the first phase or the 151~l Street & Bell Road Landscape project.• Completed Phase II of the Fiddyment Creek Sanitary Sewer project.• Met with Village officials, lOOT & 1591b Street Business Group representatives to
discuss the future 1591h Street Improvements,• Worked with County officials to facilitate future 143nl Street Improvements.• Worked with developers to complete and accept the public improvements 111 three
subdivisions within the Village.
III
• Applied for and was awarded an infrastructure grant from DCEO for storm sewerimprovement projects in the Village.
• Participated in the 1-355 Corridor Consortium which continues to meet to discussplanning and development activities within the corridor. Homer Glen is an activepartner in this group along with Lemont, New Lenox, Lockport and Will County.
• Developed a welcome packet for businesses looking to open, relocate or expand inHomer Glen.
• Revised the Village's Zoning Ordinance in order to add two (2) new zoning districtsand to ensure the ordinance remains current.
• Created a comprehensive Iisting of available sites and properties located within theVillage for use on the Village's Business Connect website.
• Purchased an additional .47 acre lot in Erin Hills Unit 4D to add to the existing parksite in the subdivision.
• Worked with the communities of Bolingbrook, Lemont, Woodridge anel Romeoville onthe certain formation of the Northern Will County Water Agency in an effort topurchase and, in the future, operate the Bedford Park Water Transmission Line.
Street Resurfacing ProgramThe Vi llage of Homer Glen completed a significant street resurface program during the 20 11~2012 construction year. The annual resurfacing program covered 4.66 miles of the Village'sroads this year. The Village ronds resurfaced with Village money this year included thefollowi ng:
• 15151 Street - 1,325' West. of Will Cook Road to Will Cook Road• Spaniel Dri ve - 16ih Street to End.• Beaver Lake Drive - Lost Boy Lane to Bell Road.• Wcdgewood Drive - Hadley Road to Deer Path Drive.• Deer Path Drive - 250' North of Wedge wood Drive to End.• Burr Oak Road - Bentwood Drive to Wedgewood Drive.• Bentwood Drive - Burr Oak Road to Dccrpath Drive.• Shellbark Drive - Burr Oak Road to Dccrpath Drive.• Thorn Apple Drive - ISO' West of Burr Oak Drive to Deerpath Drive.• Comandra Circle - Wedgewood Drive to End.• Meadowview Lane - 1SO' West of Trailside Drive to Bell Road.• Trailside Drive - Bramble Court to End.• Woodland Drive - Weather Vane Lane to Bell Road.• Arrow Court - Trailside Drive to End.• Buttercup Court - Trailside Drive to End.• Meadowlark Court - Trailside Drive to End.• Mulberry Court - Woodland Drive to End.• Finch Court - Trailside Drive to End.• Morning Glory Court - Trailside Drive to End.• Sage Court - Trailside Drive to End.• Sparrow Court - Trailside Drive to End.• Spring Court - Trailside Drive to End.• Thistle Court - Trailside Drive to End.
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:financia{ InformationInternal Control Framework and Budgetary ControlsIn developing and evaluating the Village's accounting system, consideration is given to theadequacy of internal accounting controls. Internal accounting controls are designed to providereasonable, but not absolute, assurance regarding: the safeguarding of assets against loss fromunauthorized use or disposition; the reliability of financial records for preparing financialstatements and maintaining accountability for assets; and the promoting of operationalefficiency.
The concept of reasonable assurance recognizes that the costs of internal control should notexceed the benefits likely to be desired and that the evaluation of cost and benefits requiresjudgements by management. All internal control evaluations take place within the aboveframework. The relationship of internal control to basic management responsibilities emphasizesthe relationship of the accounting system with all other management control systems. I believethat the Village's internal accounting controls adequately safeguard assets and providereasonable assurance of proper recording 0 f all financial transactions.
I3udgetary control is maintained through an annual budget passed by the Village of HomerGlen's Village Board. The FY 2012-13 budget is balanced and is based 011 actual expectedreceipts for the year plus any unexpended surplus from prior years. The Village may transferbudgeted amounts between departments within a fund. The budget is appropriately controlledthrough a computerized accounting system to assure effective fiscal management andaccountability.
Financial reports, which compare actual to-date performance with the approved budget, arcprepared monthly and presented to the Mayor. Village Board, Treasurer and Village Manager.In this manner, the Village is able to review the financial status of the various activities andfunds on a monthly basis and determine the cffccti veness of budgetary controls.
Other InformationIndependent AuditThe Village of Homer Glen is required by state law to be audited annually by an independentcertified public accountant. The Village Board has selected Mulcahy, Pauritsch, Salvador andCo., Inc. for this task.
For the Fiscal Year Ending April 30 2012, the Village has received an unqualified opinion fromthe independent auditor, meaning the auditor has determined that the financial statements or theVillage arc an accurate representation of the Village's financial position.
For additional financial highlights see management discussion and analysis contained 111 theCAFR, directly behind the independent auditor's report.
V
AcknowledgementsThe preparation of the Village ofl-Iomer Glen's comprehensive annual financial report was madepossible by the cooperative efforts of the Village's administrative staff. In addition, we wouldalso like to thank our accounting firm, Mulcahy, Pauritsch, Salvador, and Co. Inc., for theirguidance to the Village through this process.
Respectfully submitted,
~Cameron Davis,Village Manager
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Certificate ofAchievementfor Excellencein FinancialReporting
Presented to
Village of Homer GlenIllinois
For II:;Comprehensive AnnualFinancial Report
for the Fiscal Year EndedApril 30, 2011
A Ccrti ficatc Q f Achievement for Excellence in FinancialReporting is presented by the Government Finance Officers
Association of'the Unilcd Slates and Canada 10government units and public employee retirementsystems whose comprehensive annual financial
reports (CAFIL~) achieve the higheststandards in government accounting
and financial reporting.
President
Executive Director
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VILLAGE OF HOMER GLI<:N, ILLINOIS
NANtES AND TITLES OF PRINCIPAL OFFICIALS
APRIL 30,2012
LEGISLA TIVE
VILLAGE PRESIDENT
James P. Daley
TRUSTEES
Michael Costa
Russell Knaack
Mary Niemiec
Margaret Sabo
Laurel Ward
George Yukich
***
Gale Skrobuton
Village Clerk
John Sawyers
Village Treasurer
VIII
Village of Horner GI'en Organizational Chart
Citizens of the Village of Homer Glen
Administration Economic DevelopmentBuilding Department Development services
DepartmentDepartment Department
x
Assistant to theChief Building village Manager-Official] (1) Admin. (1)
txrector (1) Director (I)
Assistant to theManager-Planning &Zoning (1)
DeputyClerk/Office Mange'
(1)
Department Recepttonist/
Admlnlstratlve Account Clerk
Assistant (1) (1)
FINANCIAL SECTION
~s MULCAHY, PAURITSCH,SAI\/ADOR,,,uo
Cetlif:ecJ PubiICAccoun/OMliBu.lJ'n8SS on(l PeISOl'lOI CO11suiion Is
To thc Honorahlc Village President and Board of TrusteesVi Ilage of Homer G len, IllinoisHomer G len, III inois
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying financial statements of tile governmental acuviiics. each major fund,and the fiduciary fund of the Village of Homer Glen, Hlinois as of and for the year ended April 30,2012,which collectively comprise the Village's basic financial statements as listed ill the table of contents.These fi nancia I statements arc the responsibi Iity of the Vi llage's management. Our responsibi lity is toexpress opinions on these finane ial statements based on our audit. The prior year summarized comparativeinformation has been derived from the Vi llage's 20 II finunc in I statements and, in our report dilled October10, 2011, we expressed unqual ified opinions on the respective f nancial statements of the governmentalactivities. each major fund, and the fiduciary fund.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements arc free of material misstatement. An audit inc ludes exam ining, on a testbas is, ev id c nce 51l p port in g the a mou n ts and disclosures in the fi na IlC ial sta tem ell ts. A l\ a ud ita 1so inclu desassessing the accounting princ ipies used lind sign ifieant est imates made by management, as well asevaluating the overall financial statement presentation. We believe that our audit provides a reasonablebasis for our opin ions.
In our opinion, the financial statements referred to abov present fairly, in all material respects, therespective financial position of the governmental activities, each major fund, and the fiduciary fund of theVillage of Homer Glen, Illinois as of Apri I 30, 2012, and the respective changes in financial positionthereof and the budgetary comparisons for the General Fund, Motor Fuel Tax Fund, and Park Fund for theyear then ended in conformity with accounting principles generally accepted in the United States ofAmerica.
Accounting principles generally accepted in the United States of A merica require that the management'sdiscussion and analysis and schedule of funding progress 011 pages XII through XIX and 29 and 30 bepresented to supplement the basic financial statements. Such information, although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board, who considers it to bean essential part of financial reporting for placing the basic financial statements ill an appropriateoperational, cconom ic, or historica I context. We have applied certain Iim ited procedures to the requ Iredsupplementary information in accordance with auditing standards generally accepted in the United Statesof America, which consisted of inquiries of management about the methods of preparing the Informationand comparing the information for consistency with management's responses to our inquiries, the basicfinancial statements, and other knowledge we obtained during our audit of the bas ic financial statements.We do not express an opinion or provide any assurance on the information because the limited proceduresdo not provide us with suffic ient evidence to express an opinion or provide any assurance.
x1..\300 Ra vinia A ve .. S 1I ue 200 • Orland Park, I L. 60..\62 • 7081J49-6999 • Fax 708/349-6639
40 I S. Lasalle 51. • S uite 606 • Chicago, IL 60605 • 3 t 2J786-5979 • Fax 708/3..\9.66397500 S. County L inc Rd .• Burr Ridge. IL 60527 • 630/887 -7838 • Fax 6301887-7895
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the financial statements of the Village of Homer Glen, Illinois as a whole. The introductorysection, supplementary information, and statistical section are presented for purposes of additional analysisand arc not a required part of the financial statements, The supplementary information is the responsibil ityof management and was derived from and relates directly 10 the underlying accounting and other recordsused to prepare the financial statements, The information has been subjected to the auditing proceduresapplied in the aud it of the financial statements and certain additional procedures, including comparing andreconci ling such information directly to the underlying accounting and other records used to prepare thefinancial statements or to the financial statements themselves, and other additional procedures inaccordance with auditing standards generally accepted in the United States of America. In our opinion, theinformation is fairly stated in all material respects in relation to the financial statements as a whole. Theintroductory 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 assuranceon them.
Orland Park, IllinoisOctober 19, 2012
Xl
MANAGEMENTtS DISCUSSION AND ANALYSIS (Unaudited)
Village of Horner Glen IllinoisManagement's Discussion lind Analysis (Unaudited)April 30, 2012
As management of the Village of Homer Glen, we offer readers of the Village of Horner Glcnsfinancial statements this narrative overview and analysis of the financial activities of the Village ofHomer Glen for the fiscal year ended April 30,2012.
Financial Highlights·The assets ofthc Village of Horner Glen exceeded its liabilities per the Statement of Net Assets asof April 30, 2012 by $37,144,246 (net assets). Of this amount, $1,701 009 was restricted forhighways and streets, and $]24,014 was restricted for parks.
·As of April 30,2012, the Village of Horner Glen's Governmental Funds Balance Sheet reported acombined ending fund balance of $13,203,842.
•Fa r the fiscal year ending Apri I 30 2012, the Statement or Ac tivities change in net assets was$2,740,815.
·The Village of Homer Glen has entered into a note payable with the Illinois State HighwayAuthority for the construction of entrance and exit ramps on the south extension of Interstate 355.Total debt with regards to this agreement at April 30, 2012 was $1,250,000.
Overview of the Financial StatementsThis discussion and analysis is intended to serve as an introduction to the Village of Homer Glen'sbasic financial statements. These basic financial statements are comprised of three components: I)government-wide financial statements, 2) fund financial statements, and 3) notes to the financialstatements. This report also contains other supplementary information in addition to the basicfinancial statements themselves.
Government-wide Financial Statements. The government-wide financial statements are designedto provide readers with a broad overview of the Village of Homer Glen's finances, in a mannersimilar to a private-sector business. The statement of net assets presents information on all of theVillage of Homer Glen's assets and liabilities, with the difference between the two reported as netassets. Over time, increases or decreases in net assets may serve as a useful indicator of whether thefinancial position of the Village of Homer Glen is improving or deteriorating. The statement ofactivities presents information showing how the government's net assets changed during the mostrecent fiscal year. All changes in net assets are reported as soon as the underlying event giving riseto the change occurs, regardless of the timing of related cash flows. Thus, revenues and expensesare reported in this statement for some items that will only result in cash flows in future fiscalperiods (e.g., uncollected taxes and earned, unused vacation and sick leave). Both of the
XII
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30, 2012
uovernment-wide financial statements distinuuish functions of the Villaue of Homer Glen that aree __
principally supported by taxes and intergovernmental revenues (governmental activities) from otherfunctions that are intended to recover all or a signi ficant portion of their costs through user fees andcharges (business-type activities). The governmental activities or the Village of Homer Gleninclude general govenunent, public safety building. highways and streets, and culture andrecreation.
The Village of Homer Glen has no business-type activities because sewer and water services areprovided by a privately owned utility company.
The government-wide financial statements include only the activities of the Village of Homer Glen.The Village has no component units.
The government-wide financial statements can be found on pages 1-2 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintaincontrol over resources that have been segregated for specific activities or objectives. The Village ofHomer Glen, like other state and local governments, uses fund accounting to ensure anddemonstrate compliance with finance-related legal requirements.
All of the funds of the Village of Homer Glen can be categorized as governmental funds.
Governmental Funds. Governmental funds are used to account for essentially the same functionsreported as governmental activities in the government-wide financial statements. However, unlikethe 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 resourcesavailable at the end of the fiscal year- Such information may be useful in evaluating a government'snear-term financing requirements. Because the focus of governmental funds is narrower than thatof the government-wide financial statements, it is useful to compare the information presented forgovernmental funds with similar information presented for governmental activities in thegovernment-wide financial statements. By doing so, readers may better understand the long-termimpact of the government's near-term financing decisions. Both the governmental fund balancesheet and the governmental fund statement of revenues, expenditures, and changes in fund balancesprovide a reconciliation to facilitate this comparison between governmentalfunds and governmentalactivities.
The Village of Homer Glen maintains four individual governmental funds. The governmental fundsare considered to be major funds. There were no nonmajor governmental funds. Information ispresented separately in the Balance Sheet - Governmental Funds and in the Statement of Revenues,Expenditures, and Changes in Fund Balances - Governmental Funds. The basic governmental fundfinancial statements can be found on pages 3-16 of this report
XIII
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30, 2012
Notes to the Financial Statements. The notes provide additional information that is essential to afull understanding of the data provided in the government-wide and fund financial statements. Thenotes to the financial statements can be found on pages 17-28 of this report.
Other Information. In addition to the basic financial statements and accompanying notes, requiredsupplementary information presents a schedule of funding progress of the Illinois MunicipalRetirement Fund requirement.
Government-wide Financial AnalysisAs noted earlier, net assets may serve over time as a useful indicator of a government's financialposition. In the case of the Village of Homer Glen, assets exceeded liabilities by $37,144,246 at theclose of the most recent fiscal year.
A large portion of the Village of Homer Glen's net assets reflects its investment in capital assets(c.g. roads received via contribution, equipment and vehicles). The Village of Homer Glen usesthese capital assets to provide services to citizens; consequently, these assets are 110/ available forfuture spending. The Village of Horner Glen investment in its capital assets, reported net of relateddebt, is not a spendable resource. At April 30, 2012, the Village of Homer Glen had no debt on itscapital assets.
VILLAGE OF HOMER GLEN'S NET ASSETSAPRIL 30, 2012 AND 2011
Govern menta IActivities
2012 2011
Cash and investmentsReceivablesOther assetsCapital assets
Total Assets
S 1\,785,613 $ 8,688,5632,218,873 2,052,814
278 27825,190,404 25,978,17039,195,168 36,550,795
1,250,000 1,350,000800,922 797364
2,050,922 2,147,364
Noncurren t Iiab iIiticsOther liabilities
Total liabilities
Nct assets:Invested in capital assets,
net of related debtRestrictedUn rcstri ctcd
Total net assets
25,190,404 25,978,1701,825,023 1,780,12210,128,819 6,645,139
$37,144,246 $ 34,403,43 I
XIV
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30, 2012
This summary reflects a large net asset balance due primarily to the reporting of capital assets,including infrastructure assets that were reported as required by GASB 34.
Governmental Activities. The Village of Homer Glen's "net assets" at April 30, 2012 were$37,144,246, which was an increase of $2,740,815 from the prior year. The increase in "net assetsis the result of reporting a net operating surplus.
VILLAGE OF HOMER GLEN'S CHANGES IN NET ASSETSFOR THE YEARS END ING APRIL 30, 2012 AND 2011
GovernmentalActivities
20112012
RevenuesIntergovernmental
Motor fuel taxesState sales taxesState income taxesUse taxes
Licenses, Permits & FeesContributions and GrantsReimb urscmentsInvestment IncomeOther
Total revenues
$731,7425,776,1582,052,065353493813,89375,579
1,27040144,34349,045
$7596485,238,7341,940,015357,233835,38178,470
1,358,9236916114,089
11,166,719 10651,654
2018,581 2,260,5493 737,634 3496,309335,560 370,340
2,093,884 2,122~057240,245 .59,02§.
8,425,904 8,308,281
2,740,815 2,343,373
34,403,431 32,060,058
$37.144,246 $34403,431
ExpensesGeneral governmentPublic safetyBuildingHighways and streetsCulture and recreation
Total expenses
Cha 1ge in net assets
Net assets - beginning
Net assets - ending
xv
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30, 2012
Revenues increased by $515,065 from the previous period. The increase was due primarily to theVillage receiving home rule status, therefore receiving more sales tax income.
Public safety activities accounts for approximately 44 percent of the total expenditures within thegovernmental funds of the Village of Homer Glen. The Village subcontracts its public safety to theWill County Sheriffs Department. The Village paid $3.445.816 for public safety to the WillCounty's Sheriffs Department for the fiscal year ending April 30.2012.
Highway and street activities account for approximately 25 percent of the total expenditures withinthe governmental funds of the Village of Homer Glen. The Village has an intergovernmentalagreement with the Homer Township Road District for maintenance of. the streets. Themaintenance cost for the year ended April 30 2012 was $1,267,803.
As shown by the following graphs and identified by the Statement of Activities on page 2. stateincome taxes and state sales taxes not restricted or applicable to specific programs provide themajor revenue sources for governmental activities.
Revenues by Source - Governmental Activities
Investment lncome 0A 0,'0
C ib Reimbursements [ I~%on tn unonsand Grants
0.1%
LOth~rl-0%.Motor Fuel Taxes 6.6%
Licenses. Permits "" Fe~s7.3%
XVI
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30, 2012
Expenditures - Governmental Activities
Culture and Recreation2.9%
Building -l.O%
Public Safety -l4.-l%
Highways and Streets24.9%
__ General Government. 2-l.0%
Financial Analysis of the Government's FundsAs noted earlier, the Village of Homer Glen uses fund accounting to ensure and demonstratecamp Iiance with finance- reIated legal requirernents.
Governmental Funds. The locus of the Village of Homer Glen s governmentalfunds is to provideinformation on near-term inflows, outflows, and balances of spendable resources. Such informationis useful in assessing the Village of Homer Glen's financing requirements. In particular, unassignedfund balance may serve as a useful measure of a government' net resources available for spendingat the end of the fiscal year.
As of April 30, 2012, the Village of Homer Glen's governmental funds balance sheet reportedcombined ending fund balances of $13,203,842. The unassigned general fund balance at April 30,2012 was $5,692,440 which was an increase of $965,654 from the previous year. The increase infund balance was the result of the Village proactively reducing expenditures to match the decline inper capita taxes and decline in other revenues impacted by the economic down turn.
XVII
Village of Homer Glen, IllinoisManagement's Discussion and Analysis (Unaudited)April 30,2012
The motor fuel tax fund balance at April 30,2012 was $1,701,009, which was restricted. This wasan increase of $300,895 from the previous year. The increase in fund balance resulted from adecline in capital expenditures.
The park fund balance at April 30, 2012 was $833,744, of which $124!0 14 was restricted and$709,730 was assigned. This was decrease of $188, 194 from the previous year. The decrease infund balance resulted from an increase in capital expenditures.
The capital projects fund balance at April 30, 2012 was $4,976,649, of which all was assigned. Thefund balance increased by $2,350,226 from the previous year. The increase is the result of the fundreceiving transfers from other funds.
General Fund Budgetary HighlightsThe 2012 annual program budget for the Village of Homer Glen's general fund identified thebudgeted level of spending at $7,915,557. Actual expenditures of $7064,435 (budgetary basis)were less than budgeted expenditures by $851,122. A large portion of the decrease in expenditurescompared to budget resulted from a $108,000 reduction in general government contractual services,$471,000 reduction in general government professional fees and $272,000 in general governmentother expenditures.
The 2012 annual program budget for the Village of Homer Glen's general fund identified thebudgeted revenues at $9,351,132. Actual revenues of $9,948,178 (budgetary basis) were more thanbudgeted revenues in the general fund by $597 046. A large portion of the increase in actualrevenues resulted from the increase in income tax and state sales tax.
Capital AssetsThe Village of Homer Glen's investment in capital assets for its governmental activities as of April30, 2012, is $25,190,404, net of accumulated depreciation. This investment in capital assetsincludes land, vehicles, equipment, signage, and infrastructure. The infrastructure assets, measuredat replacement cost - net of depreciation, were received via contribution from Homer Township as aresult of the Village's incorporation on April 3, 2001. The infrastructure assets consist of roads,curbs and storm sewers,
The capital asset activity for the fiscal year can be found on page 24 - footnote 4 of this report.
Economic Factors and Next Year's Budgets and Rates• The Village continues to pursue commercial development to expand its tax base and secure new
sales tax revenue.• The Village projects stabilization in residential and commercial building permit revenue.• The Village projects moderate growth in sales tux revenue based on previous year's trended
performance.• The Village continues to proactively manage expenditures to match declines in revenues.
XVIII
Rcq uests for lnforma lionThis financial report is designed to provide a general overview or the Village of Homer Glen'sfi nanccs for all those wi til an imerest in the government' s finances. Questions concerning any of theinformation provided in this report or requests for additional financial information should beaddressed to the Office of the Village Treasurer or the Office of the Village Manager 14933 S.Founders Crossing, Homer Glen, IL 60491.
General information relating to the Village of Homer Glen, Illinois, can be found at the Village'swebsite, http://www.homerglcn.org.
XIX
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF NET ASSETS
APRIL 30, 2012WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2011
Governmental Activities2012 2011
ASSETS
Cash and investments $ 11,785,613 $ 8,688,563Receivables:
Intergovernmental 2,068,700 1,669,269Interest 4,140 7,734Other 146,033 206,781
Other assets 278 278Capital assets not being depreciated 13,693,913 13,681,005Other capital assets, net of accumulated depreciation 11,496.491 12.297,165
Total assets 39,195,168 36,550,795
LIABILITIES
Accounts payable 639,286 631,068Other payables 29,861 21,716Deferred grant revenue 131,775 144,580Noncurrent liabilities:
Due within one year 100,000 100,000Due in more than one year 1.150,000 1.250,000
Total liabilities 2,050,922 2,147.364
NET ASSETS
Invested in capital assets 25,190,404 25,978,170Restricted for highways and streets 1,701,009 1,400,114Restricted for parks 124,014 380,008Unrestricted 10,128,819 6,645,139
Total net assets $ 37,144,246 $ 34.403.431
See notes to basic financial statements.
1
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF ACTIVITIESYEAR ENDED APRIL 30, 2012
WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED APRIL 30, 2011
Program Revenue
ExpensesCharges forServices
CapitalGrants and
Contributions
Net (Expense) Revenueand Changes in Net Assets2012 2011
Functions/programs:Governmental activities:
General governmentPublic safetyBuildingHighways and streetsCulture and recreation
Total governmental activities
$ 2,018,581 $ 813,893 $ 12,805 $ (1,191,883) $ (l,346,698)3,737,634 (3,737,634) (3,496,309)335,560 (335,560) (370,340)
2,093,884 1,270,401 (823,483) (835,190)240,245 62,774 077,471) (59,026)
$ 8,425,904 $ 2,084,294 $ 75,579 (6,266,031 ) (6,107,563)
8,913,458 8,295,63044,343 69,16149,045 86,145
9,006,846 8,450,936
2,740,815 2,343,373
34,403,431 32,060,058
$ 37,144,246 $ 34,403,431
General revenues:IntergovernmentalInterest incomeOther income
Total general revenues
Change in net assets
Net assets at beginning of year
Net assets at end of year
See notes to basic financial statements.
2
FUND FINANCIAL STATEMENTS
VILLAGE OF HOMER GLEN, ILLINOISBALANCESHEET-GOVERNMENTALFUNDS
APRIL 30, 2012WITH COMPARATIVE TOTALS FOR APRIL 30, 2011
Special RevenueMotor Fuel
General Tax ParkASSETS
Cash and investments $ 4,175,881 $ 1,660,140 $ 833,744Receivables:
Intergovernmental 2,021,680 47,020Interest 4,140Other 145,033
Other assets 278
Total assets $ 6,347,012 $ 1,707.160 $ 833,744
LIABILITIES AND FUND BALANCES
Liabilities:Accounts payable $ 624,711 $ 6,151 $Other payables 29,861Deferred grant revenue
Total liabilities 654,572 6,151
Fund balances:Restricted 1,701,009 124,014Assigned 709,730Unassigned 5,692.440
Total fund balances 5,692.440 1,701,009 833,744
Total liabilities and fund balances $ 6,347,012 $ 1,707.160 s 833,744
See notes to basic financial statements.
3
Capital TotalsProjects 2012 2011
$ 5,115,848 $ 11,785,613 $ 8,688,563
2,068,700 1,669,2694,140 7,734
1,000 146,033 206,781278 278
s 5,116,848 $ 14,004,764 $ 10,572,625
$ 8,424 $ 639,286 $ 631,06829,861 21,716
131.775 131.775 144,580
140,199 800,922 797,364
1,825,023 1,863,7704,976,649 5,686,379 3,268,353
5,692.440 4,643,138
4,976,649 13,203,842 9,775.261
$ 5,116,848 $ 14,004,764 $ 10,572,625
4
VILLAGE OF HOMER GLEN, ILLINOISRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE
TO NET ASSETS OF GOVERNMENTAL ACTIVITIESAPRIL 30, 2012
Total governmental fund balance $ 13,203,842
Amounts reported for governmental activities in the statement of net assets aredifferent because:
Capital assets used in governmental activities of $36,640,292, net ofaccumulated depreciation of $11,449,888, are not financial resources and,therefore, are not reported in the funds. 25,190,404
Long-term liabilities are not due and payable in the current year and,therefore, are not reported as liabilities in the funds. Long-term liabilities atyear-end consist of a note payable to the Illinois State Toll HighwayAuthority. (1,250,000)
Net assets of governmental activities $ 37.144,246
See notes to basic financial statements.
5
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDSYEAR ENDED APRIL 30, 2012
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED APRIL 30, 2011
Special RevenueMotor Fuel
General Tax Park
Revenues:Intergovernmental $ 9,452,117 $ 731,742 $Licenses, fees and permits 813,893ContributionsGrants 62,774Interest income 16,914 6,389 5,026Other income 49,045
Total revenues 10,331,969 738,131 67,800
Expenditures:Current operations:
General government 1,826,821 2,980Public safety 3,599,402Building 333,612Highways and streets 1,267,803 213,904Culture and recreation 123
Capital outlay 38,554 23,332 253,014Debt service:
Principal
Total expenditures 7,066,315 237,236 255,994
Excess (deficiency) of revenues over (under)expenditures 3,265,654 500,895 088,194)
Other financing sources (uses):Transfers inTransfers out (2,300,000) (200,000)
Total other fmancing sources (uses) (2,300,000) (200,000)
Net change in fund balances 965,654 300,895 (188,194)
Fund balances at beginning of year 4,726,786 1,400,114 1,021,938
Fund balances at end of year $ 5,692,440 $ 1,701,009 $ 833,744
See notes to basic financial statements.
6
Capital TotalsProjects 2012 2011
$ $ 10,183,859 $ 9,553,727813,893 835,381
12,805 75,579 78,47016,014 44,343 69,161
49,045 114,915
28,819 11,166,719 10,651,654
7
VILLAGE OF HOMER GLEN, ILLINOISRECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED APRIL 30, 2012
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities aredifferent because:
Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of those assets is allocated over theirestimated useful lives and reported as depreciation expense. This is theamount by which depreciation ($1,160,287) exceeded capitalizedexpenditures ($372,521) in the current period.
Repayment of long-term debt principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the governmentalactivities.
Change in net assets of governmental activities
See notes to basic financial statements.
8
$ 3,428,581
(787,766)
100,000
$ 2,740,815
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) - GENERAL FUNDYEAR ENDED APRIL 30, 2012
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, 2011
2012 2011Variance with
Original Final Budgetand Final PositiveBudget Actual (Negative) Actual
Revenues:Intergovernmental $ 8,451,682 $ 9,052,238 $ 600,556 $ 8,860,816Licenses, fees and permits 777,950 834,781 56,831 840,041Contributions 2,500 5,349 2,849 5,844Interest income 15,000 18,812 3,812 46,455Other income 104,000 36,998 (67,002) 36,647
Total revenues 9,351.132 9,948,178 597,046 9,789,803
Expenditures:General government:
Current:Personnel 649,969 712,365 (62,396) 684,623Communication 17,000 14,199 2,801 14,117Contractual services 203,600 95,353 108,247 137,041Maintenance 44,500 42,065 2,435 26,970Professional development 47,000 32,921 14,079 23,872Professional fees 792,500 321,600 470,900 411,805Supplies 72,950 41,736 31,214 54,845Other 792,464 519,933 272,531 605,958
Capital outlay 22,000 13,167 8,833 6,890Public safety:
Current:Personnel 10,000 10,000 10,208Contractual services 3,420,000 3,490,225 (70,225) 3,183,030Supplies 10,250 8,170 2,080 10,654Other 119,800 135,416 (15,616) 142,940
Capital outlay 33,500 23,439 10,061 19,151Building:
Current:Personnel 326,124 317,737 8,387 342,074Contractual services 19,900 6,773 13,127 4,680Maintenance 2,500 2,500 448Supplies 7,000 6,985 15 11,698Other 5,000 2,477 2,523 11,080
Capital outlay 17,500 1,948 15,552
See notes to basic financial statements.
9
2012 2011Variance with
Original Final Budgetand Final PositiveBudget Actual (Negative) Actual
Highways and streets:Current:
Contractual services 1,300,000 1,267,803 32,197 1,258,351Culture and recreation:
Current:Other 2,000 123 1,877 14,410
Total expenditures 7,915,557 7,064,435 851.122 6,974,845
Excess of revenues over expenditures 1,435,575 2,883,743 1,448,168 2,814,958
Other financing uses:Transfers out (1,200,000) (2,300,000) (1.1 00,000) (1,400,000)
Net change in fund balances 235,575 583,743 348,168 1,414,958
Fund balances at beginning of year (non-GAAPbudgetary basis) 3,349,742 3.349,742 1,934,784
Fund balances at end of year (non-GAAPbudgetary basis) $ 3,585,317 $ 3,933,485 $ 348,168 $ 3,349,742
(continued)
10
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) - GENERAL FUNDYEAR ENDED APRIL 30, 2012
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, 2011
Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures:
Sources / inflows of resources:
Actual amounts (budgetary basis) "available for appropriation" from the budgetarycomparison statement $ 9,948,178
Difference - budget to GAAP:Receivables:
Other taxesInterestOther
404,151(1,898)
08,462)
Total revenues as reported on the statement of revenues, expenditures and changes in fundbalances - governmental funds $ 10,331,969
Uses / outflows of resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetarycomparison statement $ 7,064,435
Differences - budget to GAAP:Accounts payableOther payables
(6,265)8,145
Total expenditures as reported on the statement of revenues, expenditures and changesin fund balances - governmental funds $ 7,066,315
See notes to basic financial statements.
11
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) - MOTOR FUEL TAX FUND
YEAR ENDED APRIL 30, 2012WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, 2011
2012 2011Variance with
Original Final Bud~etand Final PositiveBud~et Actual (Ne~ative) Actual
Revenues:Intergovernmental:
Motor fuel tax allotments $ 642,622 $ 736,462 $ 93,840 $ 762,286Other 2,048,133 (2,048,133) 75,689
Interest income 2,500 6,942 4.442 13,393
Total revenues 2,693,255 743.404 (1,949,851 ) 851.368
Expenditures:Current:
Highways and streets:Maintenance 34,000 30,304 3,696 29,911Contractual services 183,600 183,600 183,600
Capital outlay 2,507,277 17,181 2.490,096 92.306
Total expenditures 2,724,877 231,085 2.493,792 305,817
Excess (deficiency) of revenuesover (under) expenditures (31,622) 512,319 543,941 545,551
Other financing uses:Transfers out C200,000) C200,000) C200,000)
Net change in fund balances (231,622) 312,319 543,941 345,551
Fund balances at beginning of year(non-GAAP budgetary basis) 1,847,821 1,847,821 1,302,270
Fund balances at end of year(non-GAAP budgetary basis) $ 1,816,199 $ 2,360,140 $ 543,941 $ 1,847,821
See notes to basic financial statements.
12
Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures:
Sources / inflows of resources:
Actual amount (budgetary basis) "available for appropriation" from the budgetarycomparison statement
Difference - budget to GAAP:Receivables:
Motor fuel tax allotmentsInterest
Total revenues as reported on the statement of revenues, expenditures and changesin fund balances - governmental funds
Uses / outflows of resources:
Actual amount (budgetary basis) "total charges to appropriations" from thebudgetary comparison statement
Difference - budget to GAAP:Accounts payable
Total expenditures as reported on the statement of revenues, expenditures andchanges in fund balances - governmental funds
13
$ 743,404
(4,720)(553)
738,131
$ 231,085
6,151
237,236
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) - PARK FUNDYEAR ENDED APRIL 30, 2012
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, 2011
2012 2011Variance with
Original Final Budgetand Final PositiveBudget Actual (Negative) Actual
Revenues:Grants $ 110,900 $ 62,774 $ (48,126) $Interest income 3,000 6,169 3,169 7,234Intergovernmental 266.314 43,286 (223,028) 74,369
Total revenues 380,214 112,229 (267,985) 81.603
Expenditures:Current:
Contractual services 395,600 395,600Other 2,980 (2,980)
Capital outlay 928,693 253,014 675,679 82.359
Total expenditures 1.324,293 255,994 1.068,299 82,359
Deficiency of revenues underexpenditures (944,079) (143,765) 800,314 (756)
Other financing sources:Transfers in 350,000
Net change in fund balances (944,079) (143,765) 800,314 349,244
Fund balances at beginning of year(non-GAAP budgetary basis) 972.439 972.439 623,195
Fund balances at end of year(non-GAAP budgetary basis) $ 28.360 $ 828,674 $ 800,314 $ 972.439
See notes to basic financial statements.
14
Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures:
Sources / inflows of resources:
Actual amount (budgetary basis) "available for appropriation" from the budgetarycomparison statement
Difference - budget to GAAP:Receivables:
OtherInterest
Total revenues as reported on the statement of revenues, expenditures and changesin fund balances - governmental funds
Uses / outflows of resources:
Actual amounts (budgetary basis) "total charges to appropriations" from thebudgetary comparison statement
Difference -budget to GAAP:Accounts payable
Total expenditures as reported on the statement of revenues, expenditures andchanges in fund balances - governmental funds
15
$ 112,229
(43,286)(1,143)
$ 67,800
$ 255,994
$ 255,994
Cash
Other payables
VILLAGE OF HOMER GLEN, ILLINOISSTATEMENT OF FIDUCIARY ASSETS AND LIABILITIES -
AGENCY FUND - REVOLVING ESCROW FUNDAPRIL 30, 2012
WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2011
2012 2011ASSETS
$ 56,625 iI:.$==-=_~81~,5.:.l;O~O
LIABILITIES
$ 56,625 ll:,$====_~81~,5.:.l;O~O
See notes to basic financial statements.
16
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED APRIL 30, 2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
The Village of Homer Glen, Illinois was incorporated April 3, 2001. The Village operates under Council-Manager form of government and provides the following services as authorized by its charter: publicsafety (police), highways and streets, building, culture-recreation, public improvements, and generaladministrative services.
These financial statements include the Village and its component units, entities for which the Village isconsidered to be financially accountable. At April 30, 2012, no entities were considered component unitsof the Village.
B. Basis of Presentation - Fund Accounting
The accounting system is organized and operated on a fund basis. A fund is defined as a fiscal andaccounting entity with a self-balancing set of accounts, which is segregated for the purpose of carrying onspecific activities or attaining certain objectives in accordance with special regulations, restrictions orlimitations.
The Village's governmental funds are comprised of the following:
The General Fund is the Village's primary operating fund. It accounts for all financial resources ofthe general government, except those required to be accounted for in another fund.
The Motor Fuel Tax Fund accumulates motor fuel tax allotments that are used for highways andstreets throughout the Village.
The Park Fund accumulates donations from developers to be used for parks throughout the Village.
The Capital Projects Fund accounts for the acquisition or construction of major capital projectsthroughout the Village.
c. Basis of Accounting
Government-wide Financial Statements:
The statement of net assets and statement of activities display information about the Village as awhole. They include all funds of the Village. Individual funds are not displayed. These statementsreflect governmental activities, which are generally supported by taxes, intergovernmental revenues,and other nonexchange revenues.
The government-wide financial statements are prepared using the economic resources measurementfocus and the accrual basis of accounting. This differs from the manner in which governmental fundfinancial statements are prepared. Therefore, governmental fund financial statements include areconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds.
17
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
The government-wide statement of activities presents a comparison between expenses and revenuesfor each governmental program. Program revenues include charges paid by the recipients of thegoods or services offered by the programs and grants and contributions that are restricted to meetingthe operational or capital requirements of a particular program. Revenues which are not classified asprogram revenues are presented as general revenues. The comparison of program revenues andexpenses identifies the extent to which each program is self-financing or draws from the generalrevenues of the Village.
Net assets should be reported as restricted when constraints placed on net assets are either externallyimposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulationsof other governments or imposed by law through constitutional provisions or enabling legislation.
Fund Financial Statements:
Fund financial statements report detailed information about the Village. The focus of governmentalfund financial statements is on major funds rather than reporting funds by type. Each major fund ispresented in a separate column. Nonmajor funds are aggregated and presented in a single column.The Village had no nonmajor funds at April 30, 2012.
Governmental Funds:
All governmental funds are accounted for using the modified accrual basis of accounting and thecurrent financial resources measurement focus. Under this basis, revenues are recognized in theaccounting period in which they become measurable and available. Expenditures are recognized inthe accounting period in which the fund liability is incurred, if measurable.
Fiduciary Funds:
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and thereforeare not available to support Village programs. Agency funds are used to account for assets held bythe Village in purely a custodial capacity. The reporting focus is on net assets and changes in netassets and is reported using accounting principles similar to those applied to businesses in theprivate sector.
The Village's fiduciary fund, the Revolving Escrow Fund, is presented in the fiduciary fundfinancial statements. Since, by definition, these assets are being held for the benefit of a third party(other local governments, private parties, etc.) and cannot be used to fund activities or obligations ofthe Village, these funds are not incorporated into the government-wide statements.
D. Revenue Recognition
Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e.,when they are "measurable and available"). "Measurable" means the amount of the transaction can bedetermined and "available" means collectible within the current period or soon enough thereafter to payliabilities of the current period. For this purpose, the Village considers revenues to be available if they arecollected within 60 days of the end of the current fiscal period.
18
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
Per capita taxes, investment income and charges for services are susceptible to accrual. Intergovernmentalrevenues (sales taxes, road and bridge reimbursements, motor fuel taxes, income taxes) and fines collectedand held by the State or County at year end on behalf of the Village are also recognized as revenue. Otherreceipts and taxes become measurable and available when cash is received by the Village and arerecognized as revenue at that time. As of April 30, 2012, the State of Illinois, as a result of its financialdifficulties, was several months in arrears in remitting state income tax collections to the Village. Theavailability period for state income tax revenue has been extended so that twelve months of revenue arereflected in the accompanying financial statements.
Entitlement and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrualcriteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditureshave been incurred and all other grant requirements have been met.
E. Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial resources(expenditures) rather than expenses. Most expenditures are measurable and are recorded when the relatedfund liability is incurred. Allocations of costs, such as depreciation and amortization, are not recognized inthe governmental funds.
F. Cash and Investments
Cash and cash equivalents of the Village are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.
Investments are reported at fair value which is determined using selected bases. Short-term investmentsare reported at cost, which approximates fair value. Securities traded on a national exchange are valued atthe last reported sales price and investments that do not have an established market are reported atestimated fair value. Cash deposits are reported at carrying amount which reasonably approximates fairvalue. Investments in the Illinois Funds are reported at fair value which is the same as the Village'sposition in the pool.
G. Receivables
Receivables at April 30, 2012 for intergovernmental and other revenues are deemed collectible in full.
H. Capital Assets and Depreciation
The accounting and reporting treatment applied to capital assets depends on whether the assets are used ingovernmental fund operations or proprietary fund operations and whether they are reported in thegovernment-wide or fund financial statements. The capitalization threshold of the Village for capital assetsis $5,000. The Village has elected not to capitalize infrastructure assets constructed prior to January 1,1980. The Village currently does not own any buildings and does not have any proprietary fund operations.
19
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
Government-wide Financial Statements:
In the government-wide financial statements, all capital assets are valued at historical cost, orestimated historical cost if actual is unavailable, except for donated capital assets, which arerecorded at their estimated fair value at the date of donation.
Depreciation of all exhaustible capital assets is recorded as an expense in the statement of activities,with accumulated depreciation reflected in the statement of net assets. Depreciation is provided overthe asset's estimated useful life using the straight-line method. The range of estimated useful lives bytype of asset is as follows:
EquipmentImprovements (including infrastructure)Leasehold improvementsSignageVehicles
7 years20-50 yearsLease term
7 years5 years
Fund Financial Statements:
In the fund financial statements, capital assets used in governmental fund operations are accountedfor as capital outlay expenditures of the governmental fund upon acquisition.
I. Equity Classifications
Government-wide Financial Statements:
Equity is classified as net assets and displayed in three components:
Invested in capital assets - Consists of capital assets including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,notes, or other borrowings that are attributable to the acquisition, construction, or improvementof those assets.
Restricted net assets - Consists of net assets with constraints placed on the use either by (l)external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments; or (2) law through constitutional provisions or enabling legislation.
Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or"invested in capital assets."
20
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
Fund Financial Statements:
Beginning with fiscal year 2012, the Village implemented GASB Statement No. 54, Fund BalanceReporting and Governmental Fund Type Definitions. This Statement provides more clearly definedfund balance categories to make the nature and extent of the constraints placed on a government'sfund balances more transparent. The following classifications describe the relative strength of thespending constraints:
Nonspendable - amounts that are not in spendable form (such as inventory) or are required to bemaintained intact.
Restricted - amounts constrained to specific purposes by their providers (such as grantors,bondholders, and higher levels of government), through constitutional provisions, or by enablinglegislation.
Committed - amounts constrained to specific purposes by the Village itself, using its highest level ofdecision-making authority (i.e., Board of Trustees). To be reported as committed, amounts cannot beused for any other purpose unless the Village takes the same highest level action to remove or changethe constraint.
Assigned - amounts the V illage intends to use for a specific purpose. Intent can be expressed by theBoard of Trustees or by an individual or body to which the Village delegates the authority.
Unassigned - amounts that are available for any purpose. Positive amounts are reported only in theGeneral Fund.
Beginning fund balances for the Village's governmental funds have been restated to reflect the aboveclassifications.
The Board of Trustees establishes (and modifies or rescinds) fund balance commitments by passageof an ordinance or resolution. This is typically done through adoption and amendment of the budget.A fund balance commitment is further indicated in the budget document as a designation orcommitment of the fund (such as for special incentives). Assigned fund balance is established by theBoard of Trustees through adoption or amendment of the budget as intended for specific purpose(such as the purchase of capital assets, construction, debt service, or for other purposes).
J. Use of Restricted Resources
When an expense is incurred that can be paid using either restricted or unrestricted resources, the Village'spolicy is to first apply the expense toward restricted resources and then toward unrestricted resources. Ingovernmental funds, the Village's policy is to first apply the expenditure toward restricted fund balanceand then to other, less-restrictive classifications - committed and then assigned fund balances before usingunassigned fund balances.
21
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
K. Interfund Transfers
Transfers are used to move unrestricted revenues collected in a fund to finance various programsaccounted for in other funds in accordance with budgetary authorizations. $2,300,000 was transferred fromthe General Fund to the Capital Projects Fund and $200,000 was transferred from the Motor Fuel TaxFund to the Capital Projects Fund during the year ended April 30, 2012.
L. Estimates
Management uses estimates and assumptions in preparing financial statements. Those estimates andassumptions affect the reported amount of assets and liabilities, the disclosure of contingent assets andliabilities, and the reported revenues and expenditures/expenses. Actual results could differ from thoseestimates.
M. Reclassifications
Certain amounts as previously reported for 2011 have been reclassified to conform to the 2012presentation.
NOTE 2. COMPLIANCE AND ACCOUNTABILITY
A. Budget Requirements, Accounting and Reporting
The Village adopts its budgets on an annual basis. The Village has adopted the budgetary system for thecurrent and future fiscal years. The Village follows these procedures in establishing the budgetary data:
1. All departments of the Village submit requests for appropriation to the Village Treasurer whoprepares the budget for submission to the Village Manager. The budget is prepared by fund,function, and activity, and includes information on current year estimates and requestedappropriations for the next fiscal year.
2. The proposed budget is presented to the governing body for review. The governing body holdspublic hearings and may add to, subtract from, or change appropriations, but may not change theform of the budget.
3. The budget is legally enacted through passage of an ordinance. The budget for the year endedApril 30, 2012 was adopted through the passage of ordinance number 11-007 on April 12, 2011.
4. The Village Treasurer is authorized to transfer budgeted amounts within any fund; however, anyrevisions that alter the total expenditures of any fund must be approved by the governing body.The budget was not amended during this fiscal year.
5. Budgets are adopted on the cash basis of accounting for governmental funds. The level ofcontrol (level at which expenditures may not exceed budget/appropriations) is the fund.Appropriations lapse at the end of the fiscal year.
22
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
NOTE 3. DEPOSITS AND INVESTMENTS
Policies and Practices
State statutes authorize the Village to invest in obligations of the U.S. Treasury, commercial paper,corporate bonds, repurchase agreements, and The Illinois Funds, which is regulated by the State of Illinois.
Deposits
Custodial credit risk for deposits is the risk that, in the event of a bank failure, the Village's deposits mightnot be recovered. The Village does not have a deposit policy for custodial credit risk. As of April 30,2012, $2,092,506 of the Village's bank balances of $2,342,506 was uninsured and collateralized withsecurities held by pledging financial institutions.
Investments
As of April 30, 2012, the Village had the following investments:
Average WeightedFair Valuel Credit AverageCarrying Qualityl Days to
Type of Investment Amount Ratings (1) Maturitv (2)
The Illinois Funds $ 1,252,670 AAAm 28 daysIllinois Metropolitan Investment Fund 7,030,949 AAAf/Sl 5 daysCertificates of deposit 1.340.432 N/A 360 days
Total investments $ 9,624,051
(1) Ratings are provided where applicable to indicate associated Credit Risk. N/A indicates not applicable.(2) Interest Rate Risk is estimated using weighted average days to maturity.
Investment Policies
The Village's investments are subject to the following risks:
Concentration of credit risk is the risk of loss attributed to the magnitude of the Village's investmentin a single issuer.
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill itsobligations.
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of aninvestment.
23
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty toa transaction, the Village will not be able to recover the value of investment or collateral securitiesthat are in the possession of an outside party.
The Village does not have an investment policy for the above risks.
NOTE 4. CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended April 30, 2012 was as follows:
DeletionsBeginning and EndingBalance Additions Adjustments Balance
Governmental activities:Capital assets not being depreciated:
Land $ 13,681,005 $ 12,908 $ $ 13,693,913
Capital assets being depreciatedEquipment 204,486 7,322 211,808Infrastructure 20,908,405 90,727 20,999,132Land improvements 1,274,250 253,014 1,527,264Signage 7,800 7,800Vehicles 191,825 8,550 200,375
Total 22,586,766 359,613 22,946.379
Less accumulated depreciation for:Equipment (81,393) (29,735) (111,128)Infrastructure (9,864,509) (1,045,494) (10,910,003)Land improvements (178,384) (70,038) (248,422)Signage (7,800) (7,800)Vehicles 057,515) 05,020) 072,535)
Total 00.289,601) ( 1,160,287) 01.449,888)
Total capital assets beingdepreciated, net 12.297,165 (800,674) 11.496.491
Total capital assets $ 25,978,170 $ (787,766) $ $ 25,190.404
For the year ended April 30, 2012, depreciation of $99,002, $1,045,494, and $15,791 was charged to thegeneral government, public safety, and highways and streets functions, respectively.
24
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
NOTE 5. LONG- TERM LIABILITIES
Long-term liability activity for the year ended April 30, 2012 was as follows:
BeginningBalance Additions Reductions
EndingBalance
Due WithinOne Year
Note payable $ 1.350,000 ",$========.......;,_ $ 100,000 $ },250,000 =$===0•.••1•••00-.,_00•••0
The Village entered into a note payable in a prior year with the Illinois State Toll Highway Authority forthe construction of entrance and exit ramps on the south extension of Interstate 355. The note is to berepaid in annual installments of principal only in amounts as determined by the Village, with the finalpayment of all unpaid principal due in December, 2014. The outstanding balance due at April 30, 2012was $1,250,000.
NOTE 6. OPERATING LEASES
The Village leases office and garage space under operating lease agreements expiring in May, 2013 andAugust, 2013. The lease agreements require the Village to make minimum monthly rental payments. Rentexpense for the year ended April 30, 2012 was $223,451.
Future minimum lease payments required under these leases in years ending April 30 are as follows:
20132014
$ 222,08768,037
Total $ 292,135
NOTE 7. FUND BALANCES
As of April 30, 2012, fund balances were comprised of the following:
Capital TotalGeneral Motor Fuel Park Projects GovernmentalFund Fund Fund Fund Funds
Restricted for:Highway and street construction
and maintenance $ $ 1,701,009 $ $ $ 1,701,009Park development 124,014 124,014
Assigned to:Park development 709,730 709,730Capital projects 4,976,649 4,976,649
Unassigned 5.692.440 5,692.440
Total fund balances $ 5.692.440 $ 1.701.009 $ 833,744 $ 4,976,649 $ 13,203,842
25
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
NOTE 8. DEFINED BENEFIT PENSION PLAN
Plan Description. The Village's defined benefit pension plan for Regular employees provides retirementand disability benefits, post retirement increases, and death benefits to plan members and beneficiaries.The Village's plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be changed by the GeneralAssembly of the State of Illinois. IMRF issues a publicly available financial report that includes financialstatements and required supplementary information. That report may be obtained on-line at www.imrf.org.
Funding Policy. As set by statute, the Village's Regular plan members are required to contribute 4.5percent of their annual covered salary. The statute requires employers to contribute the amount necessary,in addition to member contributions, to finance the retirement coverage of its own employees. Theemployer contribution rate for calendar year 2011 was 9.63 percent. The Village also contributes fordisability benefits, death benefits and supplemental retirement benefits, all of which are pooled at theIMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees,while the supplemental retirement benefits rate is set by statute.
Annual Pension Cost. The required contribution for the fiscal year ended April 30, 2012 was $71,054.
Three-Year Trend Information for the Regular Plan.
FiscalYearEnding
AnnualPension
Cost CAPe)
PercentageofAPC
ContributedNet PensionObligation
4/30/124/30/114/30110
$ 71,05467,10473,733
100100100
$ ooo
The required contribution for the fiscal year ended April 30, 2012 was determined as part of the December31, 2009 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptionsat December 31,2009 included (a) 7.5 percent investment rate of return (net of administrative and directinvestment expenses), (b) projected salary increases of 4 percent a year, attributable to inflation, (c)additional projected salary increases ranging from 0.4 percent to 10 percent per year depending on age andservice, attributable to seniority/merit, and (d) post-retirement benefit increases of 3 percent annually. Theactuarial value of the Village's Regular plan assets was determined using techniques that spread the effectsof short-term volatility in the market value of investments over a five-year period with a 20 percentcorridor between the actuarial and market value of assets. The Village's Regular plan's unfunded actuarialaccrued liability at December 3 1, 2009 is being amortized as a level percentage of projected payroll on anopen 30 year basis.
26
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
Funded Status and Funding Progress. As of December 31, 2011, the most recent actuarial valuation date,the Regular plan of the Village was 56.66 percent funded. The actuarial accrued liability for benefits was$632,329 and the actuarial value of assets was $358,272, resulting in an underfunded actuarial accruedliability (UAAL) of $274,057. The covered payroll for calendar year 2011 (annual payroll of activeemployees covered by the plan) of the Village was $686,243 and the ratio ofUAAL to the covered payrollwas 40 percent.
The schedule of funding progress, presented as required supplementary information following the notes tobasic financial statements, presents multiyear trend information about whether the actuarial value of planassets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
NOTE 9. CONTINGENCIES
A. Litigation
The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presentlydeterminable, in the opinion of the Village's management, the resolution of these matters will not have amaterial adverse effect on the financial condition of the Village.
NOTE 10. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors and omissions; injury to employees; and natural disasters. In order to protect against suchlosses, the Village has purchased insurance from private insurance companies, and has joined an insurancecooperative, as discussed below. The amount of coverage has not decreased nor have the amount ofsettlements exceeded coverage in any of the past three fiscal years. Insurance expense for the year endedApril 30, 2012 was $28,414.
Southwest Agency for Health Management - The Village is a participant in the Southwest Agency forHealth Management (SWARM), which provides medical, dental, and life insurance benefits to Villageemployees. SWARM is a sub-pool of the Intergovernmental Personnel Benefit Cooperative (lPBC). Themember agreement provides that SWAHM will be self-sustaining through member premiums and willreinsure through commercial companies for claims in excess of $75,000 per occurrence. The Villagecontributes on a monthly basis to meet its obligations to SWAHM and IPBC. The members have acontractual obligation to fund any deficits.
One representative from each member serves on the Board of IPBC. The president of SWARM serves asthe representative to IPBC. Each member has one vote on the Board. None of the members of SWARM orIPBC have any direct equity interest in the agencies.
27
VILLAGE OF HOMER GLEN, ILLINOISNOTES TO BASIC FINANCIAL STATEMENTSYEAR ENDED APRIL 30, 2012
NOTE 11. SUBSEQUENT EVENTS
Subsequent to April 30, 2012, the Village issued $15,640,000 of General Obligation Bonds, Series 2012Ato fulfill certain economic development objectives of the Village.
Management has evaluated subsequent events through October 19, 2012, which is the date the financialstatements were available to be issued.
28
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF HOMER GLEN, ILLINOISSCHEDULE OF ANALYSIS OF FUNDING PROGRESS -
ILLINOIS MUNICIPAL RETIREMENT FUNDAPRIL 30, 2012
Actuarial Actuarial UnfundedActuarial Value Accrued Actuarial Accrued
Valuation Date of Assets Liability Liability (UAAL)
December 31, 2011 $ 358,272 $ 632,329 $ 274,057
December 31,2010 348,679 530,121 181,442
December 31, 2009 445,963 618,203 172,240
December 31, 2008 340,169 472,043 131,874
December 31, 2007 265,460 372,118 106,658
December 31, 2006 160,397 300,922 140,525
December 31, 2005 75,977 195,314 119,337
December 31, 2004 27,381 95,804 68,423
NOTE: On a market value basis, the actuarial value of assets as of December 31, 2011 was $331,503. On amarket basis, the funded ratio would be 52.43%
29
UAALasaFunded Covered Percentage ofRatio Payroll Covered Payroll
56.66 % $ 686,243 39.94 %
65.77 759,662 23.88
72.14 765,163 22.51
72.06 731,746 18.02
71.34 733,615 14.54
53.30 675,978 20.79
38.90 368,552 32.38
28.58 168,427 40.62
30
SUPPLEMENTARY INFORMATION
CAPITAL PROJECTS FUND
VILLAGE OF HOMER GLEN, ILLINOISCAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUNDBALANCES - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
YEAR ENDED APRIL 30, 2012WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED APRIL 30, 2011
2012 2011Variance with
Original Final Budt:etand Final PositiveBudt:et Actual (Net:ative) Actual
Revenues:Contributions $ 159,420 $ $ (159,420) $Grants 375,000 11,805 (363,195) 79,853Interest income 12,000 16,014 4,014 18,057
Total revenues 546.420 27,819 (518,601) 97,910
Expenditures:Capital outlay 1,639,595 70,261 1,569,334 269,562Debt service:
Principal 100,000 100,000 50,000
Total expenditures 1.739,595 170,261 1.569,334 319.562
Deficiency of revenues underexpenditures (1,193,175) (142,442) 1,050,733 (221,652)
Other financing sources:Transfers in 1.400,000 2,500,000 1.100,000 1,250,000
Net change in fund balances 206,825 2,357,558 2,150,733 1,028,348
Fund balances at beginning of year 2,677,179 2,677,179 1,648,831
Fund balances at end of year $ 2,884,004 $ 5,034,737 $ 2,150,733 $ 2,677,179
31
Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures:
Sources / inflows of resources:
Actual amount (budgetary basis) "available for appropriation" from the budgetarycomparison schedule
Difference - budget to GAAP:Receivables:
Other
Total revenues as reported on the statement of revenues, expenditures and changesin fund balances - governmental funds
Uses / outflows of resources:
Actual amounts (budgetary basis) "total charges to appropriations" from thebudgetary comparison schedule
Differences - budget to GAAP:Accounts payable
Total expenditures as reported on the statement of revenues, expenditures, andchanges in fund balances - governmental funds
32
$ 27,819
1.000
$ 28,819
$ 170,261
8.332
$ 178.593
AGENCY FUND
REVOLVING ESCROW FUND
VILLAGE OF HOMER GLEN, ILLINOISAGENCY FUND
REVOLVING ESCROW FUNDSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED APRIL 30, 2012
ASSETS
BalanceMay 1,2011 Additions
BalanceDeductions April 30, 2012
Cash $ 81,500 $ 4,000 $ (28,875) 0!:$===5;.;;;;6,~62!;O;;O,5
LIABILITIES
Other payables $ 81,500 $ 4,000 $ (28,875) 0!:$===5;.;;;;6,~62!;O;;O,5
33
STATISTICAL SECTION
VILLAGE OF HOMER GLEN, ILLINOISSTATISTICAL SECTION
YEAR ENDED APRIL 30, 2012
This part of the comprehensive annual financial report of the Village of Homer Glen, Illinois presentsdetailed information as a context for understanding what the information in the financial statements, notedisclosures, and required supplementary information says about the government's overall financial health.The section is divided into five sections as follows:
Financial Trends - These schedules contain trend information to help the reader understand how thegovernment's financial performance and well-being have changed over time.
Revenue Capacity - These schedules contain information to help the reader assess the government'smost significant local revenue sources.
Debt Capacity - These schedules present information to help the reader assess the affordability of thegovernment's current levels of outstanding debt and the government's ability to issue additional debtin the future.
Demographic and Economic Information - These schedules contain demographic and economicindicators to help the reader understand the environment within which the government's financialactivities take place.
Operating Information - These schedules contain service and infrastructure data to help the readerunderstand how the information in the government's financial report relates to the services thegovernment provides and the activities it performs.
Only schedules applicable to the Village are presented.
VllL
AGE
OF
HOMER
GLE
N,ILLINOIS
NET
ASSET
SBY
COMPO
NEN
T
Last
TenFiscal
Years
2003
2004
2005
2006
Fiscal
Year
2007
2008
2009
2010
2011
2012
Primary
Governm
ent/G
overnm
ental
Activities
Invested
inCapitalAssets
s28,540,723
s27,628,503
s26,447,522
s25,620,277
s25,235,317
s26,413,030
s27,104,039
s26,621,275
s25,978,170
s25,190,404
Restricted
for:
Highw
ays
andstreets
Parks
CapitalProjects
Unrestricted
749,625
82,385
1,480,580
1,699,262
917,882
890,813
1,076,178
852,269
855,456
710,125
646,640
703,502
221,995
648,494
1,213,253
1,150,399
715,401
(20,970)
(31,944)
425,849
1,471,033
2,451,594
2,934,745
3))54,751
2,C)~3,7
.02.
nM45J}9._
10,128,819
991,495
393,340
1,143,121
592,637
1,400,114
380,008
1,701,009
124,lH4
TotalPrimary
Governm
ent/G
overnm
ental
Activities
s29,351,763
s28,981,394
s28,609,129
s29,646,154
s30,890,123
s32,189,035
s32,846,642.s.3
2,060,058
$34,403,431$.37,141,246
Data
Source
Audited
Financial
Statem
ents
w .;::.
Note:
Accounting
standards
require
that
netassets
bereported
inthree
components
inthefinancial
statem
ents;
invested
incapitalassets,netof
related
debt;restricted;
andunrestricted.
Net
assets
areconsidered
restricted
when
(I)an
external
party,such
asthestateor
federalgovernment,
places
arestriction
onhow
theresources
may
beused,
or(2)enabling
legislation
isenacted
bytheVillage.
VILLAGEOFHOMERGLEN,ILLINOIS
CHANGEIN
NETASSETS
LastTenFiscalYears
FiscalYear
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Expenses
PrimaryGovenunentlG
ovenunentalActivities
Generalgovernment
Publicsafety
Building
Highw
aysandstreets
Cultureandrecreation
s580,451
$988,514s
1,342,664s
1,624,433s
1,845,939s
2,472,786s
2,547,421s
2,797,616
2,341,976
2,304,253
2,437,583
2,653,975
2,804,030
3,053,374
3,258,898
3,344,424
8,780
319,033
321,058
384,753
454,805
460,203
430,456
414,521
2,464,718
2,654,649
2,871,332
2,252,932
2,454,143
2,393,694
2,110,419
3,603,112
3,584
11,707
13,467
33,425
59,741
35,907
62,463
61,427
2,260,549
3,496,309
370,340
2,122,057
59,026
2,018,581
3,737,634
335,560
2,093,884
240,245
TotalPrimaryGovenunentlG
ovenunentalActivitiesExpenses
5,399,509s
6,278,156s
6,~86,!9"_s
6,949,518
$7,618,658s
8,415,964s
8,409,657s
10,221,100
s8,308,281s
8,425,904
Program
Revenues
PrimaryGovenunentlG
ovenunentalActivities
ChargesforServices
Generalgovenunent
Highw
aysandstreets
OperatingGrantsandContributions
Generalgovernment
Cultureandrecreation
CapitalG
rantsandContributions
Generalgovenunent
Cultureandrecreation
132,840
880,375
717,580
1,153,567
1,026,670
1,174,061
1,307,635s
1,037,219
1,209,519s
1,196,295
1,032,351
1,384,192
903,089
1,219,817
785,615
1,303,197
835,381
1,286,867
813,893
1,270,401
109,720
481,827
219,772
279,454
204,889
341,604
114,767
73,342
75,000
50,000
78,470
12,805
10,816
615,635
818,460
29,770
62,774
w VITotalPrimaryGovernm
ent/TotalGovernm
entalA
ctivitiesProgramRevenues
s1,122,935s
2,352,974s
2,420,503s
2,624,308s
2,621,519s
3,373,782s
3,106,133s
2,266,924s
2,200,718s
2,159,873
TotalPrimaryGovenunentNet(Expense)Revenue
(4,276,574)s
(3,925,182)s
(4,565,601)s
(4,325,210)s
(4,997,139)s
(5,042,182)s
(5,303,524)s
(7,954,176)s
(6,107,563)s
(6,266,031)
VILLAGEOFHOMERGLEN,ILLINOIS
CHANGEIN
NETASSETS
LastTenFiscalYears
FiscalYear
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Gen
eral
Rev
enue
san
dO
ther
Cha
nges
InN
etA
sset
sGovenunentalA
ctivities
Intergovernm
ental
InvestmentEarnings
Oth
erin
com
e
TotalPrimaryGovenunentiG
ovenunentaiActivities
s
3,348,563s
3,527,933
$3,941,855s
5,014,789s
5,516,675s
5,732,705
$5,550,988s
6,850,402s
8,295,630s
8,913,458
20,497
26,137
37,301
113,162
244,669
271,507
143,997
99,269
69,161
44,343
1,107
743
214,180
234,284
479,764
336,882
266,146
217,921
86,145
49,045
3,370,167s
3,554,813s
4,193,336s
5,362,235
$6,241,108s
6,341,094s
5,961,131s
7,167,592s
8,450,936s
9,006,846
(906,407)s
(370,369)s
(372,265)s
1,037,025s
1,243,969s
1,298,912s
657,607s
(786,584)s
2,343,373s
2,740,815
Gov
enun
enta
lAct
ivit
ies
Donations
ofcapitalassets
TotalPrimaryGovenunentChangeinNetAssets
~06,407)s
(370,369)s
(372,265)s
1,037,025s
1,243,969s
1,298,912s
657,607s
(786,584)s
2,343,373s
2,740,815
~ AuditedFinancialStatements
W 0'1
Not
.:Net(expense)/revenueisthedifferenoebetweentheexpenses
andprogramrevenuesofafunctionorprogram.
Itindicatesthedegreetowhich
afunctionorprogramissupportedwith
itsow
nfeesandprogram-specificgrantsversus
itsr
elia
nceu
pon
fund
ingf
rom
taxe
san
dot
herg
ener
alre
venu
es.N
umbe
rsin
pare
nthe
sesi
ndic
atet
hate
xpen
sesw
ere
greaterthanprogramrevenuesandthereforegeneralrevenueswereneeded
tofinancethatfunctionorprogram.Num
bers
wit
hout
pare
nthe
sesm
ean
that
prog
ram
reve
nues
wer
emor
eth
ansu
ffic
ient
toco
ver
expe
nses
.
VILLA
GE
OFHOMER
GLE
N,ILLINOIS
FUND
BALA
NCES
OFGOVER
NMEN
TAL
FUNDS
Last
TenFiscal
Years
2003
2004
2006
Fiscal
Year
2007
2008
2012
2009
2010
2011
2005
General
Fund
Unreserved
Unassigned
TotalGeneral
Fund
W -.J
AllOther
Governm
ental
Funds
Designated
forintergovernm
enta1
agreem
ents
Designated
forcapitalprojects
Reserved
for:
Highw
ays
andstreets
Parks
Capitalprojects
Restricted
for:
Highw
ays
andstreets
Parks
Assignedto:
Parks
Capitalprojects
TotalAllOther
Governenm
tal
Funds
DataSource
AuditedFinancialStatem
ents
$$
(31,944)
$425,849
$1,471,033
$2,451,594
$2,734,745
$2,735,836
$3,459,914
$(20,970)
$
4,726,786
5,692,440
$(20,970)
$(31,944)
$425,849
$1,471,033
$2,451,594
$2,734,745
$2,735,836
$3,459,914
$4,726,786
$5,692,440
$-
$-
$-
$-
$-
$200,000
$318,915
$423,830
$$
459,958
749,625
991,495
1,143,121
1,480,580
1,699,262
917,882
890,813
1,076,178
82,385
393,340
592,637
852,269
855,456
710,125
646,640
703,502
221,995
648,494
1,213,253
1,150,399
715,401
1,400,114
1,701,009
380,008
124,014
641,930
709,730
2,626,423
4,976,649
$832,010
$1,384,835
$1,735,758
$2,554,844_$
3,203,212
$3,041,260
$3,006,767
$3,378,869
$5,048,475
$7,511,402
TheDistrict
beganto
classify
fund
balances
inaccordance
with
therequirements
ofGASB
54with
theyear
ended4/30/11.
VILLA
GE
OFHOMER
GLE
N,ILLINOIS
CHANGES
INFU
ND
BALA
NCES
OFGOVER
NMEN
TAL
FUNDS
LastTenFiscal
Years
2003
2004
Fiscal
Year
2007
2008
2011
2012
Revenues
Intergovernm
ental
Licenses,fees
andpermits
Contributions
Grants
Investmentincome
Other
s4,228,938
s132,840
90,484
19,236
20,497
1,107
4,493,102
569,566
2,339,156
8,780
1,109,764
3,584
72,566 -
4,103,416
TotalRevenues
2005
2006
2009
2010
4,681,500
s5,115,916
$6,052,008
s6,712,970
$7,116,897
$6,770,805
s8,153,599
$9,553,727
$10,183,859
717,580
1,026,670
1,307,635
1,209,519
1,032,351
903,089
785,615
835,381
813,893
307,818
188,849
257,287
204,889
311,194
114,767
148,342
173,674
30,923
22,167
-77,635
341,095
29,770
78,470
75,579
26,137
37,301
113,162
244,669
271,507
143,997
99,269
69,161
44,343
1,078
25,722
234,284
479,764
343,292
266,146
217,921
114,915
49,045
5,907,787
6,425,381
7,986,543
8,851,811
9,152,876
8,539,899
9,434,516
10,651,654
11,166,719
Expenditures
w 00
General
government
Public
safety
Building
Highw
aysandstreets
Culture
andrecreation
Capitaloutlay
Debtserviceprincipal
TotalExpenditures
973,015
1,319,630
1,562,520
1,797,982
2,382,473
2,186,160
2,261,834
1,933,252
2,299,638
2,413,224
2,629,616
2,796,921
3,086,132
3,207,710
3,310,882
3,436,319
319,033
321,058
384,753
481,404
460,203
430,456
414,521
370,340
1,299,695
1,327,920
1,355,257
1,616,388
1,435,101
1,442,058
1,480,187
1,471,862
11,707
13,467
33,425
54,563
23,306
18,650
9,689
14,410
462,848
221,366
156,702
475,624
1,644,462
1,288,267
761,223
438,993
100,000
50,000
5,365,936
5,616,665
6,122,273
7,222,882
9,031,677
8,573,301
8,338,336
7,715,176
1,829,801
3,599,402
333,612
1,481,707
123
393,493
100,000
7,738,138
Excess
ofRevenuesover
(under)
Expenditures
389,686
541,851
808,716
1,864,270
1,628,929
121,199
(33,402)
1,096,180
2,936,478
3,428,581
Other
financing
Sources(Uses)
TransfersIn
TransfersOut
220,000
425,000
350,000
285,000
559,958
1,600,000
2,500,000
(220,000)
(425,000)
(350,000)
(285,000)
(559,958)
(1,600,000)
(2,500,000)
TotalOther
FinancingSources(Uses)
NetChangeinFund
Balances
s389,686
s541,851
$808,716
s1,864,270
$1,628,929
s121,199
s(33,402)
s1,096,180
$2,936,478
$3,428,581
DebtServiceas
aPercentage
ofNoncapitalExpenditures
0.00%
1.36%
DataSource
AuditedFinancialStatem
ents
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
1.30%
0.69%
VILLAGE OF HOMER GLEN, ILLINOIS
INTERGOVERNMENTAL REVENUES BY SOURCE
Last Ten Fiscal Years
Fiscal State State State MotorYear Sales Income Use Fuel Total
2012 $ 5,776,158 $ 2,052,065 $ 353,493 $ 731,742 $ 8,913,4582011 5,238,734 1,940,015 357,233 759,648 8,295,6302010 3,963,978 1,936,492 300,677 649,255 6,850,4022009 2,374,212 2,168,781 351,201 656,794 5,550,9882008 2,437,927 2,269,012 337,669 688,097 5,732,7052007 2,412,532 2,077,169 311,733 715,241 5,516,6752006 2,149,928 1,862,857 290,571 711,433 5,014,7892005 1,453,595 1,591,619 236,850 659,791 3,941,8552004 1,334,328 1,343,665 216,595 633,345 3,527,9332003 1,062,995 1,448,540 202,303 634,725 3,348,563
Data Source
Audited Financial Statements
39
VILLAGEOFHOMERGLEN
GOVERNMENTALOWN-SOURCER
EVENUES
LastTenFiscal
Years
2003
2004
2005
2006
Fiscal
Year
2007
2008
2009
2010
2011
2012
Licenses,Permits
andFees
$132,840
$717,580
$1,026,670
$1,307,635
$1,209,519
$1,032,351
$903,089
$785,615
$835,381
$813,893
.j::.
DataSource
oAuditedFinancialStatem
ents
VILLAGE OF HOMER GLEN, ILLINOIS
DIRECT AND OVERLAPPING BONDED DEBT
AS OF APRIL 30, 2009
GOVERNMENTAL UNITDEBT
OUTSTANDING
ESTIMATEDPERCENTAGEAPPLICABLE I
ESTIMATEDSHARE OF
OVERLAPPINGDEBT
Will CountyWill County FPDHomer TownshipSchool Dist #33CSchool Dist #122School Dist #92School Dist #205Comm Coil Dist #525Village of Homer Glen
$2,840,000185,594,5324,095,000155,000
128,721,8677,596,03115,979,147167,220,986
o
4.77% $135,4124.77% 8,849,21568.75% 2,815,35372.55% 112,4570.20% 258,46831.09% 2,361,95040.96% 6,545,4414.92% 8,224,859
10o.o0% ~0
Total Overlapping General Obligation Bonded Debt: $29,303,155
Debt per capita: $1,169
Most recent data available
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimatesthe portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of HomerGlen. This process recognizes that, when considering the government's ability to issue and repay long term debt, the entire debtburden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is aresident, and therefore responsible for repaying the debt, of each overlapping government.
I The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentage were estimatedby determining the portion ofthe county's taxable assessed value that is within the government's boundaries and dividing it by the county'stotal taxable assessed value.
41
VILLAGEOFHOMER
GLEN,ILLINOIS
DEMOGRAPHIC
ANDECONOMIC
INFORMAnON
LastTenFiscalYears
Per
Capita
Fiscal
Personal
Median
School
Unemployment
Year
Population
Income
Age
Enrollment
Rate
2012
24,220
Notavailable
39.0
Notavailable
Notavailable
2011
24,220
Notavailable
39.0
Notavailable
Notavailable
2010
25,069
Notavailable
39.0
Notavailable
Notavailable
2009
25,069
Notavailable
39.0
Notavailable
Notavailable
2008
24,083
Notavailable
39.0
Notavailable
4.80%
2007
24,083
Notavailable
39.0
Notavailable
3.70%
2006
24,083
Notavailable
39.0
Notavailable
3.30%
2005
24,083
Notavailable
39.0
Notavailable
4.70%
2004
22,269
Notavailable
Notavailable
Notavailable
4.90%
2003
22,269
Notavailable
Notavailable
Notavailable
Notavailable
.l:>-
tv
DataSource
U.s.CensusBureau,SpecialCensus
TheVillagewasnotinexistenceatthetimeofthelastcensus.Aspecialcensuswasconductedinfiscalyear2005
thatprovidedonlycertaindemographicinformation.
VIL
LAG
EO
FH
OM
ERG
LEN
,IL
LIN
OIS
FULL
-TIM
EEQ
UIV
ALE
NT
EMPL
OY
EES
Last
Ten
Fisc
alY
ears
..,.
w
Fisc
alY
ear
Func
tion/
Prog
ram
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Gen
eral
gove
rnm
ent
Gen
eral
3.
03
.5
4.
08
.5
7.
01
1.
01
1.
09
.0
7.
07
.0
Bui
ldin
gD
epar
tmen
t1
.0
1.
01
.0
5.
56
.0
6.
05
.0
5.
03
.0
3.
0
Publ
icsa
fety
0.
00
.0
0.
00
.0
0.
00
.0
0.
00
.0
0.
00
.0
Hig
hway
san
dst
reet
s0
.0
0.
00
.0
0.
00
.0
0.
00
.0
0.
00
.0
0.
0
Cul
ture
and
recr
eatio
n0
.0
0.
00
.0
0.
00
.0
0.
00
.0
0.
00
.0
0.
0
Tota
l4
.0
4.
55
.0
14
.0
13
.0
17
.0
16
.0
14
.0
10
.0
10
.0
Dat
aSo
urce
Vill
age
Fina
nce
Dep
artm
ent
VILLA
GE
OFHOMER
GLE
N,ILLINOIS
CAPITA
LASSET
STATIST
ICS
Last
TenFiscal
Years
Fiscal
Year
Function/Program
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
General
government
General
$86,666
$102,025
$95,725
$95,725
$95,725
$59,282
$59,282
$76,674
$123,866
$131,188
Building
departm
ent
34,635
53,343
71,142
71,142
71,142
71,142
71,142
71,142
Public
safety
107,697
107,697
107,697
138,108
182,267
182,267
190,819
209,103
217,653
Highw
ays
andstreets
29,824,126
30,163,700
30,355,476
30,454,986
30,762,472
31,978,154
32,686,234
32,985,657
33,316,251
33,419,886
Culture
andrecreation
217,899
1,074,072
2,147,137
2,448,428
2,547,409
2,800,423
$29,910,792
$30,373,422
$30,593,533
$30,711,751
$31,285,346
$33,364,917
$35,146,062
$35,772,720
$36,267,771
$36,640,292
.j::
:..
.j::
:..
DataSource
VillageFinanceDepartment
VILLAGE OF HOMER GLEN, ILLINOIS
OPERATING INDICATORS BY FUNCTION
Last Two Fiscal Years
FunctionlProgram 2011 2012
General governmentBuilding department
Commerical permitsResidental permitsOther building permits
2217
837
3710
1,158
Public safetyPolice (per Will County Sheriff)
Parking violationsTraffic violations
1822,807
1602,200
Highways and streetsStreets (per Homer Township Road & Bridge District)
Street resurfacing (miles) 5.37 4.66Potholes repaired 40 NA
Data source: The Village subcontractors for the Police and Street Services' records.
Most recent data available
NA - Information not available
45