VILLAGE OF SCHAUMBURG, ILLINOIS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended April 30,2010
Prepared by:
Department of Finance
Douglas R. Ellsworth, Director of Finance VILLAGE OF SCHAUMBURG, ILLINOIS TABLE OF CONTENTS
INTRODUCTORY SECTION
Officers and Officials ...... i . . Organization Chart ...... 11 ... Certificate of Achievement for Excellence in Financial Reporting ...... 111
Letter of Transmittal ...... iv-viii
FINANCIAL SECTION
Independent Auditors' Report ...... 1-2
Management's Discussion and Analysis ...... 3-1 7
Basic Financial Statements
Government-Wide Financial Statements Statement of Net Assets ...... 18 Statement of Activities ...... 19-20
Fund Financial Statements
Governmental Funds Balance Sheet ...... 21 -22 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Assets ...... 23 Statement of Revenues, Expenditures and Changes in Fund Balances ...... 24-25 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ...... 26
Proprietary Funds Statement of Net Assets ...... 27-28 Statement of Revenues, Expenses and Changes in Net Assets ...... 29-30 Statement of Cash Flows ...... 3 1-32
Fiduciary Funds Statement of Fiduciary Net Assets ...... 33 Statement of Changes in Fiduciary Net Assets - Pension Trust Funds ...... 34
Notes to Financial Statements ...... 35-74 VILLAGE OF SCHAUMBURG. ILLINOIS TABLE OF CONTENTS
Page(s) FINANCIAL SECTION (Continued)
Required Supplementary Information
Schedule of Revenues. Expenditures and Changes in Fund Balance .Budget and Actual General Fund ...... Developer Contribution Fund ...... Schedule of Funding Progress Illinois Municipal Retirement Fund ...... Police Pension Fund ...... Firefighters' Pension Fund ...... Other Postemployment Benefit Plan ...... Schedule of Employer Contributions Illinois Municipal Retirement Fund ...... Police Pension Fund ...... Firefighters' Pension Fund ...... Other Postemployment Benefit Plan ...... Notes to Required Supplementary Information ......
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds Combining Balance Sheet ...... Combining Statement of Revenues. Expenditures and Changes in Fund Balances ......
Nonmajor Special Revenue Funds Combining Balance Sheet ...... Combining Statement of Revenues. Expenditures and Changes in Fund Balances ...... Schedule of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund ...... Schaumburg Transit Program Fund ...... Community Development Block Grant Fund ...... Energy Efficiency and Conservation Block Grant Fund ...... Community Development Block Grant - Recovery Fund ...... Justice Assistance Grant Fund ...... VILLAGE OF SCHAUMBURG. ILLINOIS TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Nonmajor Governmental Funds (Continued)
Nonmajor Debt Service Funds Combining Balance Sheet ...... Combining Statement of Revenues. Expenditures and Changes in Fund Balances ...... Schedule of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual General Obligation Bonds. Series 2004A ...... General Obligation Bonds. Series 2004B ...... General Obligation Bonds. Series 2005A ...... General Obligation Bonds. Series 2005B ...... General Obligation Bonds. Series 2008 ......
Nonmajor Capital Projects Funds Combining Balance Sheet ...... Combining Statement of Revenues. Expenditures and Changes in Fund Balances ...... Schedule of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual Star Line TOD TIF Fund ...... Special Assessment #3 - Construction Fund ......
Nonmajor Enterprise Funds Combining Balance Sheet ...... Combining Statement of Revenues. Expenses and Changes in Net Assets ...... Combining Statement of Cash Flows ......
Internal Service Funds Combining Statement of Net Assets ...... Combining Statement of Revenues. Expenses and Changes in Net Assets ...... Combining Statement of Cash Flows ...... Schedule of Revenues. Expenses and Changes in Net Assets - Budget and Actual Vehicle Replacement Fund ...... Technology Replacement Fund ...... Building Replacement Fund ...... Risk Management Fund ...... VILLAGE OF SCHAUMBURG, ILLINOIS TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Fiduciary Funds
Agency Funds Combining Balance Sheet - Agency Funds ...... 121 Combining Statement of Changes in Assets and Liabilities - Agency Funds ...... 122- 125
Supplemental Data
Schedule of Revenues - Budget and Actual - General Fund ...... Schedule of Expenditures - Budget and Actual - General Fund ...... Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Obligation Bonds, Series 2002A ...... Olde Schaumburg Centre Special Allocation Fund ...... Capital Improvements Fund ...... 2008 Project Fund ...... 20 10A Project Fund ...... Waterworks and Sewerage Fund Schedule of Operating Revenues - Budget and Actual ...... Schedule of Operating Expenses - Budget and Actual ...... Schaumburg Regional Airport Fund Schedule of Operating Revenues and Expenses - Budget and Actual ...... Schaumburg Baseball Stadium Fund Schedule of Operating Revenues and Expenses - Budget and Actual ...... Schaumburg Hotel and Convention Center Fund Schedule of Operating Revenues - Budget and Actual ...... Schedule of Operating Expenses - Budget and Actual ...... Commuter Parking Lot Fund Schedule of Operating Revenues and Expenses - Budget and Actual ...... VILLAGE OF SCHAUMBURG. ILLINOIS TABLE OF CONTENTS
STATISTICAL SECTION (Unaudited)
Financial Trends Net Assets by Component ...... 153 Changes in Net Assets ...... 154-157 Fund Balances. Governmental Funds ...... 158 Changes in Fund Balances. Governmental Funds ...... 1 59- 160
Revenue Capacity Assessed and Estimated Actual Value of Taxable Property ...... Property Tax Rates .Direct and Overlapping Governments ...... Principal Property Taxpayers ...... Property Tax Levies and Collections ...... Sales Tax by Category ...... Direct and Overlapping Sales Tax Rates ...... Sales Tax Receipts ...... Sales Tax Receipts by Month ...... Home Rule Sales Tax Receipts by Month ...... Retail Sales Volume ...... Hotel Tax Revenues ...... Other Village Revenues ......
Debt Capacity Ratios of Outstanding Debt by Type ...... 173 Ratio of General Bonded Debt Outstanding ...... 174 Direct and Overlapping Governmental Activities Debt ...... 175
Demographic and Economic Information Demographic and Economic Statistics ...... 176 Principal Employers ...... 177
Operating Information Full-Time Employees ...... 178 Operating Indicators ...... 179 Capital Asset Statistics by FunctionIProgram ...... 180 VILLAGE OF SCHAUMBURG, ILLINOIS
OFFICERS AND OFFICIALS
April 30,2010
LEGISLATIVE
VILLAGE BOARD OF TRUSTEES
A1 Larson, President
Marge Connelly Frank Kozak
Hank Curcio Mark Madej
George Dunharn Jack Sullivan
Marilyn J. Karr, Clerk
ADMINISTRATION
Kenneth Fritz, Village Manager
DEPARTMENT OF FINANCE
Douglas R. Ellsworth, CPA, Director of Finance Jodie K. Andrew, CPA, Assistant Director of Finance VILLAGE OF SCHAUMBURG ORGANIZATION CHART
Residents
Village President and Board of Trustees
Boards J . [ Vi11,age J Village J 1 Commissions Manager 1 Attorney Committees
f 1 f \ f \ \ I' \ Manager's Office Community Human Fmance Engineering and Hotel and General Development Resources Department Public Works Convention Government Department Department Departments Center \ J \ / \ / \ J
Transportation Information Fire Department Technology Services Department Department Department Certificate of Achievement for Excellence
Reporting Presented to Village of Schaumburg Illinois
For its Comprehensive Annual Financial Report for the Fiscal Year Ended April 30,2009
A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.
President
Executive Director September 22,2010
The Honorable Al Larson, Village President Members of the Village Board of Trustees Citizens of the Village of Schaumburg, Illinois
The Finance Department is pleased to submit herewith the Comprehensive Annual Financial Report (CAFR) of the Village of Schaumburg, Illinois (the Village) for the fiscal year ended April 30,2010. This report provides a broad view of the Village's financial activities for the 2010 fiscal year and its financial position at April 30,2010. Although addressed to the elected officials and citizens of the Village, this report has a number of other users. Foremost among these other users are bondholders of the Village, financial institutions, credit rating agencies, educational institutions, and other government entities. Illinois statutes require that Illinois municipalities publish financial statements on an annual basis that are prepared in accordance with generally accepted accounting principles and are audited by independent accountants. In producing a CAFR, the Village of Schaumburg has chosen to provide financial information that is significantly greater than that which is required under state law.
Responsibility for both the accuracy of the information presented in the CAFR as well as the completeness and fairness of the presentation, including all disclosures, rests with the Village. We believe that the information, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position of the Village and the results of its operations; and that all disclosures necessary to enable the reader to gain the maximum understanding of the Village's financial affairs have been included.
Baker Tilly Virchow Krause, LLP (Certified Public Accountants) has issued an unqualified ("clean") opinion on the Village's financial statements for the fiscal year ended April 30, 2010. The independent auditor's report is located at the front of the financial section of this report.
The management of the Village has established a system of internal control that is designed to assure that the assets of the Village are safeguarded against loss, theft, or misuse. The system of internal control also assures that the accounting system compiles reliable financial data for the preparation of financial statements in conformity with generally accepted accounting principles. Internal accounting controls are designed to provide reasonable, but not absolute, assurance that these objectives will be met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of the costs and benefits requires estimates and judgments by management.
This letter of transmittal should be read in conjunction with management's discussion and analysis to obtain the most complete assessment of the Village's current financial status and its future prospects.
Profile of the Village of Schaumburg
The Village of Schaumburg was incorporated on March 7, 1956, and is located approximately 26 miles northwest of downtown Chicago. The Village is bordered by Interstate 290 on the east, and Interstate 90 runs near its northern border. More than 99% of the Village is located in Cook County, with a small portion located within DuPage County. The Village currently has a land area of 19.13 square miles and serves a population of 75,936. The Village is a home-rule community as defined by the Illinois Constitution, meaning that it has no tax rate or debt limits, nor is it required to conduct a referendum to authorize additional debt or to raise taxes.
The Village operates under the council-manager form of government. Policy making and legislative authority are vested in the Village Board, which consists of a Village President and six trustees elected at large. A Village Manager is hired by the Village Board to carry out the policies and ordinances of the Board and to oversee the day-to-day operations of the Village. The Village provides a full range of municipal services, including public safety, roadway maintenance, public improvements, planning and zoning, inspections, water and sewer services, cultural and other social services, transportation, and general administrative services. The Village also operates a convention center and 500 room hotel, a regional airport, and shares ownership in a minor league baseball stadium with the Schaumburg Park District.
Additional demographic information about the Village can be found in the statistical section of this report.
The Reporting Entity
This report includes all activities and functions of the Village that are under the jurisdiction of the Board of Trustees, as set forth in state and local law. There are two blended component units included in this report, those being the Police Pension Fund and the Firefighters' Pension Fund. These two pension plans are governed by separate boards, but the Village is obligated to fund the two plans based on actuarial valuations.
The Village's Renaissance Schaumburg Hotel and Convention Center operates on a different fiscal year than other Village operations. The Hotel and Convention Center Fund is reported on a fiscal year ending the Friday closest to December 3 1". This report includes the financial position of the hotel and convention center as of January 1,2010, and the results of operations for the year beginning January 3,2009 and ended January 1,2010.
Accounting System and Budgetary Control
The accounts of the Village are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balances, revenues, and expenditures. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
The Village's accounting records are generally maintained on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when measurable and available to liquidate obligations of the current period and expenditures are recorded when a liability is incurred that is expected to draw upon current financial resources. The modified accrual accounting records are the basis for assessing budgetary compliance. After the end of the year, the Village's management makes certain adjustments to the accounting records to permit the preparation of certain financial statements on the accrual basis of accounting to comply with generally accepted accounting principles. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when incurred.
The annual budget serves as the foundation for the Village's financial planning and control. It also serves as the legal authority to spend public funds. The Village Board has adopted the Budget Act for purposes of legally appropriating public funds. The Village Manager has been designated by the Village Board as the Budget Officer. All departments submit their budget requests to the Village Manager on or before January 1". The Director of Finance prepares an estimate of revenues to be received during the fiscal year. The Village Manager, Director of Finance, and appropriate staff review all budget requests and revenue estimates and develop a proposed budget. The Village Manager presents his proposed budget to the Village Board and public at least two weeks prior to a formal public hearing in April. By state law, the annual budget must be adopted by the Village Board prior to the first day of the fiscal year. The hotel and convention center budget is prepared each fall by the Director of Finance and the management of Renaissance Hotel Management Company. The proposed Hotel budget is then presented to the Village Board and public hearings are held. The Hotel budget is adopted by the Village Board prior to the end of the calendar year. The Budget Officer may approve the transfer of budgeted funds from one account to another, provided the two accounts are within the same object class and within the same department and fund. Any other amendments or increases to the annual budget may be done only by a two-thirds vote of the Village Board.
Factors Affecting Economic Condition
Local Economy: The Village of Schaumburg is one of the leading economic centers in the State of Illinois. Within the Village's corporate boundaries there is in excess of 9.0 million square feet of commercial space, 12 million square feet of office space, and over 12 million square feet of industrial development. Located in the Village is the 2.7 million square foot Woodfield Mall. The Village is the largest producer of retail sales in the state of Illinois outside the City of Chicago. Retail sales totaled $25 billion in the fiscal year ended April 30,2010.
The global economic recession that started in December of 2007 continued to adversely affect the Village's economic condition in fiscal year 2009110. Significant declines in retail sales, and hotel revenues continued through most of the fiscal year. The Village has begun to see improvement in late January of 2010, with sales gains being reported in retail sales, hotel stays, and restaurant sales. State income tax receipts, of which one-tenth is distributed to local governments on a per capita basis, continue to show declines fi-om the preceding year.
While overall retail sales fell during the fiscal year due to the recent recession, the Village fared relatively well when it came to retaining business. The Village's retail occupancy rate is currently 9.9%, which is an improvement from the 10.9% reported at the end of June of 2009. The Village's office space vacancy rate is at 19.4%, while the industrial vacancy rate is at 11.7%. During the past year the Village lost eleven mid-size businesses, however it saw nineteen businesses locate to Schaumburg, including the headquarters of Career Education Corporation (1,100 employees), FDIC regional.office (320 employees), and Whole Foods (1 60 employees).
Long-term Financial Planning. The Village uses a number of processes and resultant planning documents to accomplish its financial planning. As discussed above, the Village adopts an annual budget. The Village's departments and Village Manager have established goals and programs of work to accomplish the mission of the Village. The Finance Department maintains a five-year financial forecast for all funds, which are updated at least quarterly. These forecasts project revenues, expenditures, fund balance levels, and cash and investment levels. The forecasts are used for purposes of monitoring the long-term financial outlook of the Village, determining available funding for the Capital Improvements Plan, and assisting the Village Manager in setting initial budget goals for department directors.
The Village prepares a comprehensive multi-year Capital Improvements Plan (CIP) which lays out in detail all planned capital projects and major capital expenditures for the current fiscal year and five subsequent fiscal years. The CIP is reviewed and adjusted to reflect expected available resources. The CIP is reviewed by the Manager's Office and presented to both the Committee of the Whole and the Village Board prior to the annual budget being prepared and presented to the Village Board. Financial Policies. The Village has established several specific policies to guide its financial operations. These policies help ensure that the Village is in a position to continue meeting immediate and long-term service objectives. Some of the more significant policies include:
An investment policy, providing for market investment returns while protecting principal; A purchasing policy, setting forth the procedures for ensuring that the best products and services are received at the lowest possible price; A policy requiring a six-month review of revenues and expenditures compared to budget, ensuring that the Village Board is aware of major variances; A capital policy, setting forth the thresholds for capitalizing capital assets; and A fund balance policy, setting forth the benchmark reserve levels to be maintained in the various funds to ensure proper working capital; rainy-day funds are maintained to protect against unforeseen economic events.
Major Accomplishments and Initiatives
The fiscal year ended April 30,2010 saw many accomplishments and major initiatives come to fruition, including:
The Village issued $13,735,000 Series 201 0A Refunding Bonds in April to advance refund $13,255,000 of its Series 2002A bonds. The refunding resulted in net present value savings of $878,506, or 6.6% of the refunded bonds. The Village issued $8,650,000 of 2010B General Obligation Bonds in April to fund a major street resurfacing/reconstructionprogram. Despite the severe recession of 2008 and 2009, and falling revenues, the Village's bond rating by Moody's was increased to Aaa, and the AA+ rating by Standard and Poor's was affirmed, in 2010. After several years of operating deficits in the General Fund, the Village was able to present a balanced budget for the 201011 1 fiscal year. This was accomplished through the passage of a property tax levy. A comprehensive upgrade was made to the Village's web site, making it more functional and easier to use. The Village initiated monthly electronic newsletter distribution to better inform residents and businesses about Village news. The Village undertook a succession planning process to prepare for the continuing sound management of the Village. A technology upgrade was made to the Village's emergency operation center, to allow for more effective and efficient management of any emergencies. Service levels remain high despite reductions in staffing over the past few years. The Fire Department's benchmark of six minutes to respond to all emergencies continued to be met. The Police Department reported the lowest crime rates in thirty-four years, and Engineering & Public Works met their maintenance goals and coordinated several large construction projects, including the resurfacing of 3.5 miles of streets and the reconstruction of Write Boulevard.
Some of the more significant initiatives planned for the 201011 1 fiscal year are as follows:
Take over responsibility for providing residential refuse collection services effective January 1, 2011. Resurface 9 miles of streets and reconstruct 6 miles of streets.
- vii - Undertake a comprehensive e~nployeecompensation study. Remodel the recently acquired historic Turret House for use as the new family counseling center.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Schaumburg for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended April 30,2009. This represented the twenty-fifth consecutive year that the Village has received this prestigious award. In order to be awarded a Certificate of Achievement, the Village must publish an easily readable and efficiently organized CAFR that satisfies both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that this CAFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. In particular, we would like to acknowledge the work of Jodie Andrew, Assistant Finance Director; Rosemary McAdarns, Accounting Supervisor, Catherine Boyer, Senior Accountant, and Patty Fisher, Accountant.
The Village President and Village Board of Trustees must be acknowledged and thanked for setting the highest standards of professionalism in the oversight and management of the Village's finances.
Respectf~illysubmitted,
Kenneth Fritz ~ou~las'R. Ellsworth, CPA 1 Village Manager Director of FinanceWillage Treasurer
... - Vlll - 9BAKER TILLY
Baker Tilly Virchow Krause, LLP 1301 W 22nd St, Ste 400 Oak Brook, IL 60523-3389 tel630 990 3131 fax 630 990 0039 bakertilly.com
INDEPENDENT AUDITORS' REPORT
Honorable President and Board of Trustees Village of Schaumburg 101 Schaumburg Court Schaumburg, Illinois 60193
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the Village of Schaumburg, Illinois, as of and for the year ended April 30, 2010, which collectively comprise Village of Schaumburg's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Village of Schaumburg's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the operations (assets, liabilities, revenues, and expenses) of the Renaissance Schaumburg Hotel and Convention Center as of January 1, 2010 which constitute 3%, 2%, 84%, and 56%, respectively of the consolidated totals. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Schaumburg Hotel and Convention Center Fund, is based solely on the report of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditinq Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinions. The financial statements of the Renaissance Schaumburg Hotel and Convention Center were not audited in accordance with Government Auditinq Standards.
In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities,each major fund, and the aggregate remaining fund information of the Village of Schaumburg as of April 30, 2010, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditinq Standards, we have also issued a report dated September 22, 2010 on our consideration of Village of Schaumburg's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditinq Standards and should be considered in assessing the results of our audit.
*Bii;idemdyi;; Page 1 INTERNATIONAL Honorable President and Board of Trustees Village of Schaumburg
The management's discussion and analysis and the required supplementary information as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Schaumburg's basic financial statements. The introductory section, the combining and individual nonmajor fund financial statements and other schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and other schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
Oak Brook, lllinGis September 22,201 0
Page 2 VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Fiscal Year Ended April 30,2010 Unaudited
As the management of the Village of Schaumburg, Illinois (the "Village"), we offer readers of the Village's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended April 30, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which may be found in the Introductory Section of this report.
FINANCIAL HIGHLIGHTS
Assets of the Village exceeded liabilities by $229,439,030. The Village's total net assets decreased by $24,5 12,542 during the year. Combined revenue totaled $138,430,869, a decrease of 13% from the preceding year. Overall expenses totaled $162,943,411, a decrease of 6% from the preceding year. As of the close of the current fiscal year, the Village's governmental funds reported combined ending fund balances of $56,006,421, compared to $56,515,998 reported at April 30,2009. For the year ended April 30, 2010, the Village's General Fund reported expenditures exceeding revenues by $7,467,918. Other financing sources exceeded other financing uses by $768,624, resulting in a net reduction in fund balance of $6,699,294. Total fund balance in the General fund was $22,511,818 at April 30, 2010. Unreserved fund balance in the General Fund totaled $21,168,772 on April 30, 2010, representing 28.3% of total General Fund expenditures for the current fiscal year and 26.0% of the 201011 1 fiscal year's budget for expenditures. The Village's Waterworks and Sewerage Fund reported net assets increasing by $101,048. Operating income before depreciation and amortization expense was $2,657,325. The Village's Hotel and Convention Center reported $3,014,783 of operating income before depreciation and amortization for the fiscal year that began January 3, 2009 and ended December January 1, 2010. Net assets decreased a total of $14,918,202, after factoring in non-operating income of $5,940,695, interest expense of $1 1,424,263, a loss of $626,099 on the disposal of capital assets, and depreciation and amortization expense of $9,895,3 18. The Village's total bonded indebtedness increased by $580,000 during the current fiscal year, for a total of $308,125,000 outstanding at April 30,2010.
OVERVIEW OF THE FINANCIAL STATEMENTS
In accordance with generally accepted accounting principles, the Village presents its financial statements so as to offer two perspectives of its financial position and results of operation. The government-wide perspective presents financial information for the government as a whole. The fund perspective involves the presentation of financial information for individual accounting entities established by the Village for specific purposes. The focus of the fund statements is on major funds. Both perspectives (government-wide and major fund) address likely user questions, provide a broad basis for comparison (year to year or government to government), and enhance the Village's accountability.
Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village of Schaumburg's finances, in a manner similar to a private-sector business. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
The Statement of Net Assets presents information on all of the Village's assets and liabilities, with the difference between the two being reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating.
The Statement of Activities presents information showing how the Village's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as an event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, public safety, highways and streets, health and welfare, cultural and recreation, and interest expense on debt. The business-type activities of the Village include waterworks and sewerage, a regional airport, commuter parking lots, a minor league baseball stadium, and the convention center and hotel.
The government-wide financial statements can be found on pages 18 through 20 of this report.
Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Village maintains 20 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Development Contribution Fund, 2002A Debt Service Fund, Olde Schaumburg Centre Special Allocation Fund, Capital Improvements Fund, 2008 Capital Projects Fund, and the 2010B Capital Projects Fund, all of which are considered to be "major" funds. Data from the other 13 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 21 through 26 of this report. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
Proprietary funds. The Village maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village uses enterprise funds to account for its water and sewer operations, commuter parking lot, regional airport, minor league baseball stadium, and the hotel and convention center. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village's various functions. The Village uses internal service funds to account for its fleet of vehicles, computers and other office equipment, system repairs and improvements to its public buildings, and insurance programs including property and casualty, workers compensation and health benefits. The internal service funds have been allocated between the governmental and business-type activities in the government-wide financial statements based on service charges paid into each fund by the user department.
Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Waterworks and Sewerage Fund, Schaumburg Regional Airport Fund, Schaumburg Baseball Stadium Fund, and Schaumburg Hotel and Convention Center Fund, all of which are considered to be major funds of the Village. The Village's Commuter Parking Lot Fund and the Performing Arts Center Fund are the only nonmajor business-type finds. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 27 through 32 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains eight fiduciary funds: the Police Pension Fund, Firefighters' Pension Fund, Builders Escrow Fund, and Special Service Areas Nine through Thirteen.
The basic fiduciary fund financial statements can be found on pages 33 and 34 of this report.
Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 35 through 74 of this report.
Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Included in this report is a budgetary comparison statement for the General Fund and information regarding the Village's progress in funding its obligation to provide pension and other postemployment benefits to its employees. Required supplemental information can be found on pages 75 through 86. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Assets As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Village of Schaumburg, assets exceeded liabilities by $229,439,030 at April 30, 2010. Following is a table that shows total net assets of the Village as of April 30, 2010 with a comparison to the preceding fiscal year. Table 1 Statement of Net Assets As of April 30,2010 and 2009 (in thousands)
Net assets: Invested in capital assets, net of related debt 84,348 85,296 66,491 78,593 150,839 163,889 Restricted 21.196 13.517 0 0 21,196 13,517 Unrestricted 29,372 42,834 28,032 33,711 57,404 76,545
Total net assets $134,916 $141,647 $94,523 $1 12,304 $229,439 , $253,951
The Village's investment in capital assets (e.g., land, buildings, machinery and equipment, and infrastructure), less any related debt used to acquire those assets still outstanding, is by far the largest portion of the Village's net assets. As of April 30, 2010, capital assets net of related debt totaled $150,839,090, representing 66% of total net assets. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
Just under $2 1.2 million (or 9.2%) of the Village's net assets represents resources that are subject to external restrictions on how they may be used, such as for debt service, capital projects, and pensions. The remaining balance of unrestricted net assets, $57,404,111, may be used to meet the Village's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Village is able to report positive balances in all three categories of net assets, both for the government as a whole, and for its separate governmental and business-type activities. The same situation held true for the prior fiscal year.
Net assets invested in capital assets (net of related debt) of $150.8 million decreased $13.0 million from the preceding year. Net assets invested in capital assets of the business-type activities decreased $12.1 million due to the payment of scheduled bond principal payments and depreciation expense. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
There was an increase of $7,678,739 in restricted net assets. The amount reported last year included $5.3 million of negative restricted amounts which should have been classified as unrestricted. The current year classification properly classifies the negative restricted net assets as being unrestricted.
Unrestricted net assets decreased by $19,14 1,579 from the prior year, of which $1 3,462,266 was in the governmental activities. As previously mentioned, there was the reclassification of $5.3 million of negative restricted assets to unrestricted net assets. Also, expenses exceeded revenues of the General Fund by $6.7 million this year due to the economic downturn and the Village's decision to draw down reserved in order to continue providing the same level of service.
During the current fiscal year, total net assets of the Village decreased by $24,512,542. A more detailed explanation of the changed in net assets of the governmental activities and business-type activities is provided below. I Activities I The following table summarizes the revenue and expenses of the Village's activities. Table 2 Changes in Net Assets For the Fiscal Year Ended April 30,2010 and 2009 (in thn~lsands)
Revenues Program revenues Charges for services Operating grants Capital grants & contrib. General revenues Taxes Intergovernmental
Expenses General government Public safety Highways and streets Health and welfare Culture and recreation Interest on long-term debt Water and sewer Airport Baseball stadium Hotel and convention center Commuter parking 0 1 0 1 756 1 782 1 756 1 782
Total expenses ! ' , 91,842 1 95,530 1 71,101 1 77,807 1 162,943 [ 173,337 Change in net assets before I I I I I I VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
Governmental Activities. As is typical for governmental activities of local governments, program revenues cover a very small percentage of program expenses, with general revenues covering the majority of expenses. For 200911 0, governmental program expenses of $91,842,298 exceeded program revenues of $8,55 1,185 by $83,29 1,113. General revenues made up all but $6,73 1,488 of the deficiency.
Due to declining tax and intergovernmental revenues over the past several years, the Village has been reducing expenses wherever possible without seriously diminishing the level of services provided to the public. For 2009110 expenses of the governmental activities decreased $3.7 million, or 3.9%. However, total revenues decreased by $6.9 million, or 7.8%, resulting in a deficit $3.2 million larger than the preceding year. The Village offset a portion of the current year's deficit by transferring $4 million from the business- type activities.
Charges for services decreased by $394,000, or 4%, mostly due to declining building activity and related building permits. Tax revenue of $35.4 million is $1.8 million, or 4.9%, less than the preceding year. The worst economic recession since the Great Depression has resulted in lower revenues from the hotel tax, home-rule sales tax, food and beverage tax, and real estate transfer tax. Intergovernmental revenues totaled $35.7 million, a decrease of $1.8 million, or 4.7%. Significant decreases were experienced in the state sales tax and state income tax remittances.
The following graph indicates the breakdown of 2009110 revenues by type.
Revenue of Governmental Activities
-- IIntergovernmental o Service Charges1 Grants Other Revenue I
As previously mentioned, expenses associated with governmental activities decreased a total of $3.7 million, or 3.9%, from the preceding year. General government expenses decreased $2.9 million from the prior year, with the more material decreases being related to (a) a $1.1 million reduction in capital outlay, (b) a $496,000 decrease in transit system service expenses, a $210,000 reduction in redevelopment planning expenses in the Olde Schaumburg Tax Increment Financing District, and a $698,000 reduction in general administrative expenses in the General Fund. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
The following pie chart shows the breakdown of governmental expenses by activity.
Expenses of Governmental Activities
I 1 ValGovernmental public safety 1 I 1 Highways & Streets Health &Welfare I I Culture & Recreation Interest on Debt
Business-Type Activities. For business-type activities, net assets decreased a total of $17,781,054. Program expenses of $7 1,10 1,113 exceeded program revenues of $5 1,038,770 by $20,062,343. Depreciation and amortization expenses of $13,882,002 account for the majority of the deficit, as the Village has not historically funded depreciation through current user charges. The hotel and convention center operations experienced a $5 million loss (excluding depreciation expense) due to declining revenues and the transfer of $1.9 million of excess construction funds to the General Fund.
Revenues associated with business-type activities totaled $57.3 million, a decrease of $13.9 million, or 19.6% from the preceding year.
Charges for services decreased $1 1.9 million, or 19.0% to $50.6 million. Water and sewer user charges generated $18.3 million, 1.3% more than last year. Airport operations generated $328,000 less revenue (27.5%) due to a reduction in flying on account of the recession. Hotel and convention center revenues fell $1 1.8 million, or 27.7%, due to a reduction in corporate and vacation travel and a pullback in average daily rates due to increased competition.
Tax revenue reported in the Hotel and Convention Center Fund totaled $5.7 million, a reduction of $802,000, or 42%, from the $6.5 million reported last year, again resulting from the recession.
Expenses of the business-type activities totaled $7 1,10 1,113, a decrease of $6.7 million, or 8.6%, from the preceding year. Hotel and convention center expenses totaled $49.8 million, representing a decrease of $5.6 million, or 10.1'34, from the preceding year. Airport expenses decreased by $531,000, or 23.8%, due to reduced activity. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
The following table summarizes the financial results of the various business-type activities operated by the Village. As previously stated, expenses and the net change in net assets include $13,882,002 of depreciation and amortization expense, which does not result in an outlay of cash.
Table 3 Change in Net Assets Business-Type Activities Fiscal Year Ended April 30,2010
FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS
Governmental Funds
At April 30, 2010, the governmental funds had combined fund balances of $56,006,421, a decrease of $509,577 from the prior year. Approximately 62% ($34,522,370) constitutes unreserved, undesignated fund balance, which is available for spending at the Village's discretion. The remainder of fund balance is reserved or designated, to indicate that it is not available for new spending because it has already been committed: I) to liquidate contracts and purchase orders for the previous year, 2) to pay debt service, or 3) for a variety of other restricted purposes. Fund balance of the General Fund dropped from $29,2 1 1,112 last year to $22,511,818 due to the Village's decision to draw down fund balance rather than reduce service levels during the recession. The Village issued $8.65 million of bonds in 2010 for road construction, generating $7,778,946 of fund balance at April 30,2010.
General Fund. The General Fund is the primary operating fund of the Village. At April 30, 201 0, total fund balance was $22,5 1 1,818, of which $2 1,168,772 was classified as unreserved. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 28% of total expenditures, while total fund balance represents 30% of expenditures. The Village's fund balance policy states that the General Fund's unreserved fund balance benchmark is 40% of the subsequent year's budgeted expenditures and other financing uses. As of April 30, 2010, the Village's unreserved fund balance represented 26% of budgeted expenditures and other financing uses for the 201011 1 fiscal year. The unreserved fund balance benchmark was increased from 25% to 40% several years ago due to there being a heavy reliance on elastic revenue sources to fund General Fund operations. With a restructuring of revenues that was implemented as part of the 201011 1 fiscal year budget, the Village will be looking at whether the fund balance benchmark should be dropped back to 25%.
Fund balance of the General Fund decreased by $6,699,294 during the current fiscal year. This was the fourth consecutive year the General Fund experienced an operating deficit. While the decrease in fund VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited) balance can generally be attributed to the great recession that began in 2007, key factors resulting in the decrease include:
Revenues decreased by 7.8% from the prior year, while expenditures decreased only 4.3%. Tax revenue decreased by 7%, with declines being seen in every tax source, including: home-rule sales tax (-7.2%), food & beverage tax (-4.6%), hotel tax (-1 I.]%), and the telecommunications tax (-5.6%). Intergovernmental revenue decreased by 5.6% from the prior year. State sales tax revenue was down 5.8%. State income tax revenue was down 10.9%. Grant revenue was up 71%, due mostly to a $562,500 state grant for a low-income child care center. Fine revenue was down 37% due to the elimination of the photo enforcement camera in 2009110. Investment earnings fell 70% as interest rates remained at historic lows. Salaries and wages were down 3.3% due to the continuation of the hiring freeze imposed in 2008. Pension expenses of $9.3 million were up 21.2% over the prior year due to poor investment returns and an increase in the number of disability pension awards. Contractual services decreased 1696, due to the temporary elimination of internal service fund charges for equipment and building replacement funds.
The Village Board took action during the 2009110 fiscal year to address the structural deficit problem of the General Fund. In December of 2009 the Board adopted a property tax levy for the first time in the Village's history. The $23,739,500 that was levied will be available during the 201011 1 fiscal year, and resulted in a $2.1 million budget surplus.
2002A G.O. Debt Service Fund: The Village advance refunded the callable portion of its Series 2002A bonds on April 1, 2010. Proceeds from the sale of the Series 2010A Refunding bonds in the amount of $14,659,072 were used to make a $14,524,128 payment to the escrow agent. The transaction resulted in a total debt service savings of $997,563.86, and net present value savings of $878,506 (6.63% of the refunded bonds).
Olde Schaumburg Centre Special Allocation Fund. This fund was created in 1989 to account for the revenues and expenditures related to the redevelopment of the Village's Town Square area. A total of $3.66 million was expended during 2009110 on the redevelopment project. A total of $2,020,282 was transferred to the Series 2008 Debt Service Fund to cover the principal and interest on bonds issued to fund redevelopment projects. $799,122 was spent on the acquisition of a small strip shopping center, which was recently demolished and made ready for redevelopment.
Capital Improvements Fund. The Capital Improvements Fund was created to account for financial resources to be used for the acquisition or construction of major capital facilities and improvements. Revenues exceeded expenditures by $680,075, as several projects that were planned were delayed. Projects totaling $4.4 million were planned and budgeted in 2009110, but only $2.6 million was actually expended. The delays can in part be attributed to staffing shortages and delays in obtaining required permits.
2008 Capital Projects Fund. The 2008 Capital Projects Fund was created to account for the proceeds from the Series 2008 bond sale which closed in December, 2008. Bond proceeds are being used to fund the construction of various improvements within the Olde Schaumburg Centre Tax Increment Financing District. A total of $1.6 million was expended on TIF redevelopment projects in 2009110, compared to a budget of $7.8 million. The Village had expected to spend significant monies on the planned Pleasant Square and Waterbury Lane developments this year, but the projects have been delayed due to the recession and a pull- VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited) back in residential and commercial development. A total of $6.9 million was still on hand as of April 30, 20 10.
Proprietary Funds
At April 30, 2010, net assets of the proprietary funds totaled $92,070,154. This was a reduction of $17,649,651 from the prior year. Following is a brief discussion of the financial results of the major proprietary funds.
Waterworks and Sewerage Fund: The fund's financial condition continues to improve. Net assets increased $10 1,048 to a total of $4 1,2 1 1,025. Cash and investments at April 30, 20 10 totaled $5,340,992, an increase of $736,118. Operating revenues of $1 8,289,061 increased 1.3% over the previous year. Revenue from water and sewer billings increased 1.4% from the prior year. There was a 6.5% rate increase that took effect at the beginning of the year, but there was a 5% reduction in water consumption during the year. The decrease in consumption can be attributed to a rainy summer of 2009 and cooler than normal summer temperatures.
Operating expenses (including depreciation) of $1 7,992,772 were nine-tenths of one percent higher than the previous year. Salaries and wage expense decreased 6% due to vacant positions created by the hiring freeze. Contractual services were up 4.4%, due mostly to a 10.8% increase in the cost of water purchased from the City of Chicago through the Northwest Suburban Municipal Joint Action Water Agency. After factoring in the decline in water consumption, the net cost of water purchased increased 5.7%. A total of $717,977 was transferred to the General Fund in 2009110 as a distribution of profit equating to 4% of revenues.
Schaumburg Regional Airport Fund: The Airport Fund was adversely impacted by the recession this fiscal year. Net assets of $21.7 million were down $832,120 from the prior year. There was an operating loss before depreciation of $58,674. The Village did decide to hold off on the construction of two new T- hangars again this year, due to some slippage in demand for hangar space.
Schaumburg Baseball Stadium Fund: The Baseball Stadium Fund reported a $390,251 increase in net assets, after depreciation expense of $361,929. Operating revenues of $33 1,953 fell just short of the $333,017 budget, although the outstanding receivable from the Schaumburg Flyers LLC is growing. The Village is currently working with the Schaumburg Flyers LLC baseball team on a sale to new owners. The outstanding receivables are expected to be settled as part of the closing process. Operating expenses came in significantly under budget, due to a delay in replacing steel railings in the ball park.
Performing Arts Center Fund: The Village concluded that it was not feasible to construct a second performing arts center building anytime in the near future, so the fund was closed in 2009110. The $1,903,326 that had accumulated in the fund was transferred to the General Fund to help offset the operating deficit.
Hotel and Convention Center Fund: The Village-owned 500 room hotel and 150,000 square foot convention center opened for business on July 17, 2006. As explained in the notes to the financial statements, the fiscal year-end of the Hotel and Convention Center Fund was established as the Friday closest to December 3 lS'to coincide with the fiscal year of Renaissance Hotel Management Company, the facility's operating manager. The CAFR for the year ended April 30, 2010 includes the financial results of the hotel and convention center for the year ended January 1,2010 (the "2009 calendar year"). VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
The financing plan approved by the Village Board anticipated the operating revenues of the hotel covering only a portion of the debt service on the bonds issued to fund construction. The balance was expected to be covered by direct taxes generated by the property and other Village-wide tax revenues. For the first few years of its operation, revenues exceeded projections, and the Village was able to grow its reserves in this fund. The recession that began in 2007 continued to hurt the hospitality industry in 2009, and the Village's hotel and convention center was no exception. The net assets of the hotel decreased by $14,918,202 in 2009.
Operating revenues from the hotel and convention center totaled $30,908,274, a decrease of 72% from the previous year. Operating income before depreciation and amortization expense was $3,014,783, compared to $8,616,449 reported last year. Nonoperating revenue recorded in the Hotel and Convention Center Fund totaled $5,940,695, consisting of $64,180 of investment income and $5,876,515 from various tax revenues earmarked for a portion of the hotel and convention center's debt service. Nonoperating expense s consisted of $1 1,424,263 of interest expense and $626,099 of losses on the disposal of capital assets.
Fiduciary Funds
Police and Firefighters' Pension Funds: The Village's two single-employer pension plans experienced solid growth in the fiscal year ended April 30, 2010. The Police Pension Fund reported a $10,016,613 increase in net assets, with investment earnings of $10,480,379 (approximately 17%). The Firefighters' Pension Fund reported a $10,992,405 increase in net assets, with investment earnings of $10,472,126 (approximately 16%).
GENERAL FUND HIGHLIGHTS
Amendments to Budget
Amendments to the budget are made throughout the year. The Village Manager, as Budget Officer, is authorized to implement a budget transfer between accounts within the same object class, provided it is within the same department and fund. Numerous transfers were authorized by the Budget Officer during the year. Budget transfers between object classes and any increases or decreases to the total budget must be approved by the Village Board. The Village Board approved various amendments to the budget on April 28, 2009 and again on January 12,2010.
Due to the continuation of the recession that began in late 2007, the Village revised its revenue and other financing source projections downward by $4,521,961 after the mid-year review. Some of the more significant reductions included hotel tax (-19%), home-rule sales tax (-9%), state sales tax (-7%), and state income tax (- 15%).
No significant changes were made to the expenditure budget in 2009110. The final budget for expenditures and other financing uses totaled $81.4 million, a decrease ofjust one-half of one percent.
Change in Fund Balance
When the original budget was adopted in April of 2009, a deficit of $4.4 million was expected. The planned deficit was the result of declining tax and intergovernmental revenues relating to the recession, and increased operating costs. By November of 2010 it was apparent that revenues were coming in even lower than projected, and revenue projections were lowered by $4.5 million. The Village Board further revised the budget in January of 2010, reflecting a deficit of $8.5 million. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
Actual results for the year were mixed, but the end result was that the deficit was $6.7 million rather than $8.5 million. Revenues and other financing sources came in at $71.0 million for the year, $6.4 million less than the original budget and $1.8 million less than the revised budget. Expenditures and other financing uses totaled $77.7 million, which was $4.1 million less than the original budget and $3.7 million less than the revised budget. The variance from the revised budget was a negative 2.6% for revenues and a positive 4.5% for expenditures.
The following table summarizes General Fund revenues and expenditures, with a comparison to budget, for the fiscal year ended April 30,20 10.
Table 4 General Fund Budgetary Highlights Fiscal Year Ended April 30,2010
I Revenues and Other I I I I Financing Sources Taxes $28,172 $25,824 $25,114 Licenses and permits 3,570 3,569 3,321 Intergovernmental 34,846 3 1,928 3 1,560 Charges for services 4,707 4,700 4,161 Other revenue 2,449 3,181 3,248 Other financing sources 3,660 3,680 3,605 Total Revenues and Other Financing Sources $77,404 $72,882 $71,009 Expenditures and Other Financing Uses General government $13,521 $13,288 $12,874 Public safety 46,269 45,839 43,779 Highways and streets 13,372 13,252 12,479 Health and welfare 3,276 3,741 3,710 Culture and recreation 2,252 2,192 2,030 Other financing uses 3,141 3,084 2,837 Total Expenditures and Other Financing Uses $8 1,83 1 $81,396 $77,709 Change in Fund Balance $(4,427) $(8,514) $(6,700)
As previously stated, the recent recession caused significant declines in Village revenues. The following table shows how the major tax and intergovernmental revenues of the General Fund have changed over the past two years. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
Table 5 Major Tax and Intergovernmental Revenues - General Fund
Taxes Hotel Tax $2,437 (1 8.3)% $2,167 (ll.l)% Home-Rule Sales Tax $18,906 (9.4)% $17,542 (7.2)% Food & Beverage Tax $3,78 1 (1.4)% $3,608 (4.6)% Telecommunications Tax $1,665 (2.6)% $1,571 (5.61% Intergovernmental State Sales Tax $26,556 (1 1.4)% $25,028 (5.8)% State Income Tax $6,770 (2.2)% $6,03 1 (10.9)%
Hotel tax revenues declined almost 30% over the past two years, which is consistent with industry trends. Sales tax and home-rule sales tax revenues declined 7% and 6%, respectively, in 2009/10, which was not as severe a drop as that experienced in 2008109. State income tax receipts, which are distributed on a per capita basis by the state, fell significantly in 2009/10 as unemployment and lower corporate profits took a toll on state tax revenue.
Expenditures in every service area came in under budget, with total spending of $81.4 million coming in 4.5% less than final budget. The positive budget variance in spending can be attributed to unfilled vacant positions, a freeze on travel and training, and close scrutiny of all discretionary spending. Services levels were not reduced in any material way.
CAPITAL ASSETS
The following schedule reflects the Village's capital asset balances as of April 30, 2010.
Table 6 Capital Assets As of April 30,2010 and 2009 (in thousands) Governmental Business-Type Activities Activities Total FY2010 I ' FY2009 1 FY2010 I FY2009 FY2OlO I FY2009
As can be seen in the above table, there was little capital assets acquired during the fiscal year that ended April 30, 2010. Total capital assets increased just $1.8 million. The Village undertook a major building program the past several years. The Village's buildings and infrastructure are sufficient at the present time to VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
service the public for years to come. However, there will always be significant maintenance expense associated with the Village's capital assets.
Total capital assets of the Village are valued at $681.6 million. Accumulated depreciation of $239.4 million brings the net value of capital assets down to $442.2 million at April 30, 2010.
Further information regarding the Village's capital assets can be found in Note 5 of the notes to the financial statements on pages 49 through 50 of this report.
DEBT ADMINISTRATION
At April 30, 2010, the Village of Schaumburg had total bonded debt outstanding of $308,125,000, a reduction of $580,000 from the preceding year. All of the Village's bonded debt is backed by the full-faith and credit of the Village. The Village has both fixed rate and variable rate debt outstanding. The following table summarizes the type of debt outstanding as of the end of both the current and preceding fiscal years.
Table 7 Total Bonded Debt As of April 30,2010 and 2009 (in thousands)
The Village issued $13.7 million of Series 2010A general obligation bonds on April 1, 2010 to advance refund $13,255,000 of its Series 2002A Bonds, resulting in net present value savings of $878,506 (6.63% of the refunded bonds). The Village also issued $8,650,000 of Series 2010B general obligation bonds on April 1, 2010 to fund a major street resurfacing and reconstruction program. Excluding the $13,255,000 of refunded bonds, the Village retired $8,550,000 of outstanding bonds during the year.
The interest rate on the tax-exempt variable rate debt was 0.33% as of April 30, 2010, compared to 0.51% on April 30, 2009. The interest rate on the taxable variable rate debt was 0.29% on April 30, 2010, compared to 1.15% one year earlier.
I As an Illinois home-rule community, the Village is not subject to any debt limitation. The Village of Schaumburg's general obligation bonds have been rated Aal by Moody's Investors Service and AA+ by Standard and Poor's, since 1987. In April of 2010 Moody's Investors Service announced it had recalibrated , state and local government bond ratings, and changed the Village's bond rating to Aaa, the highest bond I rating available.
Additional information on the Village's long-term debt can be found in Note 7 on pages 52 through 58 of this report. VILLAGE OF SCHAUMBURG, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) (Unaudited)
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The fiscal year ended April 30, 2010 marked the fourth consecutive year that the Village's General Fund reported expenditures and other financing uses in excess of revenues and other financing sources. The growth in sales taxes, hotel taxes, state income taxes, and food and beverage taxes were not keeping pace with the growth in spending. While the recession which began in late 2007 was a big contributor to the budget shortfalls, revenues were beginning to fall short of expenditures even before that. To resolve the structural operating deficit of the General Fund, the Village Board imposed a property tax for the first time in the Village's fifty-three year history in December of 2009. The $23,739,500 property tax levy will be used to: (1) eliminate the General Fund's operating deficit, (2) provide $1,000,000 for the debt service on the Series 201 0B general obligation bonds, (3) provide $4 million for residential refuse disposal, which residents were currently paying directly to a refuse hauler, and (4) replace the $1.1 million reduction in license revenue resulting from the elimination of the vehicle sticker. The 2009 tax levy is extended and collected by the counties in fiscal year 201 1. The Village estimates that the levy will result in a tax rate of $0.503 per $100 of equalized assessed valuation. The impact to the overlapping property tax bill is estimated to be an increase of 8.1%.
The Village's tax base remains extremely strong. The Village's 2008 equalized assessed value for property tax purposes (the most recent information available) totaled $4,724,117,989, of which35.35% was residential, 50.43% was commercial and 14.22% was industrial. Vacancy rates in the Village remain higher than normal, but are showing improvement as the following chart illustrates.
Table 8
During the fiscal year ended April 30, 2010 the Village saw twelve businesses close or relocate to other communities. However, the Village also saw the nineteen businesses move into the community, including the headquarters of Career Education Corporation (1,100 employees), Whole Foods (160 employees), Glass Mountain Capital (125 employees), and FDIC (320 employees).
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the Village's finances and to demonstrate the Village's accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Douglas R. Ellsworth, Director of Finance, Village of Schaumburg, 10 1 Schaumburg Court, Schaumburg, IL 60193. VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF NET ASSETS
April 30,2010
Primary Government Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents Investments Receivables, net of allowance where applicable Property taxes Locally imposed taxes Customer accounts Unbilled services Accrued interest Other Prepaid items Inventories Deposits Due from other governments Internal balances Internal balances - advances Advances to fiduciary funds Land held for resale Net pension asset Capital assets Nondepreciable Depreciable, net of accumulated depreciation Bond issuance costs, net of amortization Bond discount, net of amortization
Total assets 248,203,091 342,927,508 591,130,599
LIABILITIES Accounts payable Accrued interest Accrued payroll Other liabilities Unearned revenue Long-term liabilities Due within one year Due in more than one year Premium on bonds issued, net of amortization Net postemployment obligation
Total liabilities 1 13,287,401 248,404,168 361,691,569
NET ASSETS Invested in capital assets, net of related debt 84,347,898 66,491,192 150,839,090 Restricted for Debt service 1,931,446 1,931,446 Highways and streets 927,023 927,023 Traffic impact 5,202,338 5,202,338 Other 13,135,022 - 13,135,022 Unrestricted 29,371,963 28,032,148 57,404,111
TOTAL NET ASSETS $134,915,690 $ 94,523,340 $229,439,030
See accompanying notes to financial statements. - 18- VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF ACTIVITIES
For the Year Ended April 30,2010
Program Revenues Operating Capital Charges Grants and Grants and FUNCTIONSIPROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government Public safety Highways and streets Health and welfare Culture and recreation Interest on debt Total governmental activities
Business-Type Activities Waterworks and sewerage Schaumburg regional airport Schaumburg baseball stadium Schaumburg hotel and convention center Commuter parking lot Total business-type activities
TOTAL PRIMARY GOVERNMENT
General Revenues Taxes Property Telecommunications Home rule sales Hotellmotel Real estate transfer tax Amusement Food and beverage Other Intergovernmental - Unrestricted Personal property replacement tax Roadlbridge tax Sales tax Use tax State income tax Motor fuel tax Other Investment income Miscellaneous Transfers in (out) Total
CHANGE IN NET ASSETS NET ASSETS, MAY 1 NET ASSETS, APRIL 30
See accompanying notes to financial statements Net (Expense) Revenue and Change in Net Assets Primarv Government Governmental Business-Type Activities Activities Total VILLAGE OF SCHAUMBURG. ILLINOIS
BALANCE SHEET GOVERNMENTAL FUNDS
April 30,20 10
Olde Schaumburg 2008 2010B Nonmajor Total Development 2002A Centre Special Capital Capital Capital Governmental Governmental General Contribution Debt Service Allocation Improvements Project Project Funds Funds
ASSETS Cash and cash equivalents Investments Receivables Property taxes Locally imposed taxes Fines and fees Accrued interest Other Inventories Loan receivable Due from other governments Due from other funds Advances to other funds Prepaid items Land held for resale
TOTAL ASSETS $ 51,714,398 $ 7,924,588 $ 1,579,913 $ 2,914,550 $ 4,384,931 $ 7,592,783 $ 8,619,740 $ 3,971,204 $ 88,702,107 Olde Schaumburg 2008 20 10B Nonmajor Total Development 2002A Centre Special Capital Capital Capital Governmental Governmental General Contribution Debt Service Allocation Improvements Project Project Funds Funds
LIABILITIES Accounts payable Accrued payroll Other liabilities Unearned revenue Due to other funds Advances from other funds Total liabilities
FUND BALANCES Reserved Advances Inventories Prepaid items Loan receivable Land held for resale Public safety Debt service Highway and streets Capital projects Traffic impact Other Unreserved Designated General Special revenue funds Undesignated General Capital projects funds Total fund balances TOTAL LIABILITIES AND FUND BALANCES
See accompanying notes to financial statements. - 22 - VILLAGE OF SCHAUMBURG, ILLINOIS
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS
April 30, 2010
FUND BALANCES OF GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds
Bond issuance costs and premiums/discounts on bonds are expensed in governmental funds but capitalized and amortized in the statement of net assets
Interest payable is not due and payable in the current period and, therefore, is not reported in the governmental funds
Net pension assets are not financial resources and, therefore, are not reported in governmental funds
Net postemployment obligations are not funded and, therefore, are not reported in governmental funds
Long-term liabilities, including bonds payable, are not due and payable in the currect period and, therefore, are not reported in the governmental funds
The net assets of the internal service funds are included in the governmental activities in the statement of net assets
NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements - 23 - VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
For the Year Ended April 30,20 10
Olde Schaumburg 2008 2010B Nonrnajor Total Development 2002A Centre Special Capital Capital Capital Governmental Governmental General Contribution Debt Service Allocation Improvements Project Project Funds Funds
REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Grants Contributions Investment income Miscellaneous
Total revenues 67.403.728 110.575 3.238.006 2.800.908 2.356.281 13.639 884 6,408,026 82.332.047
EXPENDITURES Current General government Public safety Highways and streets Health and welfare Culture and recreation Debt service Principal Interest Bond issuance costs Miscellaneous Capital outlay
Total expenditures 74,87 1,646 125,098 3,785,073 1,64 1,007 2,640,206 1,589,146 985,365 10,091,970 95,729,5 11 Olde Schaumburg 2008 20 10B Nonmajor Total Development 2002A Centre Special Capital Capital Capital Governmental Governmental General Contribution Debt Service Allocation Improvements Project Project Funds Funds
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (7,467,9 18) (14,523) (547,067) $ 1,159,901 $ (283,925) $(1,575,507) $ (984,481) $ (3,683,944) $ (13,397,464)
I OTHER FINANCING SOURCES (USES) Transfers in 3,605,303 964,000 - 4,297,174 8,866,477 Transfers (out) (2,836,679) (2,020,282) (20,000) (4,876,961) Bond preceeds - 8,650,000 8,650,000 Refinding bond proceeds 13,735,000 - 13,735,000 Premium on bonds issued 924,072 - 113,427 1,037,499 Payment to escrow agent - (14,524,128) - (14,524,128) Total other financing sources (uses) 768,624 134,944 (2,020,282) 964,000 8,763,427 4,277,174 12,887,887
NET CHANGE IN FUND BALANCES (6,699,294) (14,523) (4 12,123) (860,38 1) 680,075 (1,575,507) 7,778,946 593,230 (509,577)
FUND BALANCES, MAY 1
FUND BALANCES, APRIL 30
See accompanying notes to financial statements - 25 - VILLAGE OF SCHAUMBURG, ILLINOIS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES
For the Year Ended April 30,2010
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures, however, they are capitalized and depreciated in the statement of activities Fixed assets Capital leases
Changes in net pension assets are reported only in the statement of activities
The issuance of long-term debt is reported as an other financing source in governmental funds but as an increase of principal outstanding in the statement of activities Principal Premium Issuance costs
The amortization of issuance costs on long-term debt is reported as an expense on the statement of activities
The amortization of premium on long-term debt is reported as revenue on the statement of activities
The amortization of discounts on long-term debt is reported as an expense on the statement of activities
The repayment of the principal portion of long-term debt payable is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities Debt service payments Refunding of bonds Changes in net postemployment obligations are reported only in the statement of activities
Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Depreciation expense Changes in accrued interest payable Changes in compensated absences
The change in net assets of certain internal service activities in governmental funds
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements - 26 - VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF NET ASSETS PROPRIETARY FUNDS
April 30,2010
Governmental Business-Type Activities Activities Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmajor and Regional Baseball Convention Enterprise Internal Sewerage Airport Stadium Center Funds Total Service Funds
CURRENT ASSETS Cash and cash equivalents Investments Receivables Locally imposed taxes Customer accounts Unbilled services Accrued interest Other Deposits Due from other funds Due from other governments Advance to other hnds Prepaid expenses Inventory Total current assets
NONCURRENT ASSETS Capital Assets Non-depreciable 695,200 13,878,500 1,212,651 12,908,164 724,599 29,419,114 Depreciable 114,464,497 20,365,122 9,080,406 257,204,398 4,574,452 405,688,875 16,671,570 Less accumulated depreciation (78,233,449) (13,712,812) (3,675,854) (34,025,998) (3,992,981) (133,641,094) (7,630,813) Net capital assets 36,926,248 20,530,810 6,617,203 236,086,564 1,306,070 301,466,895 9,040,757
Other Advance to other funds 661,284 66 1,284 Due from other governments - 2,000,000 2,000,000 Other receivables 94,050 94,050 Bond issuance costs, net of amortization 33,181 77,425 2,500,055 2,610,661 Discount on bonds issued 1,307,025 1,307,025 Other noncurrent assets 694,465 - 2,171,475 3,807,080 6,673,020 Total noncurrent assets 37,620,713 20,530,810 8,788,678 239,893,644 1,306,070 308,139,915 9,040,757 Total assets Governmental Business-Type Activities Activities
Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmajor and Regional Baseball Convention Enterprise Internal Sewerage Airport Stadium Center Funds Total Service Funds
CURRENT LIABILITIES Accounts payable Accrued payroll Accrued interest payable Unearned revenue Due to other funds Due to others General obligation variable rate demand bonds payable General obligation bonds payable Taxes payable Advance from other funds Claims payable Compensated absences Other liabilities
Total current liabilities
LONG-TERM LIABILITIES General obligation variable rate demand bonds payable General obligation bonds payable Compensated absences Advances from other funds Premium on bonds issued, net of amortization
Total long-term liabiliites
Total liabilities
NET ASSETS Invested in capital assets, net of related debt 32,506,248 20,135,8 10 4,017,203 7,396,564 1,306,070 65,361,895 9,040,757 Unrestricted (deficit) 8,704,777 1,594,214 (38,639) 15,851,559 596,348 26,708,259 10,551,010
TOTAL NET ASSETS $ 41,211,025 $ 21,730,024 $ 3,978,564 $ 23,248,123 $ 1,902,418 92,070,154 $ 19,591,767 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 2,453,186 $ 94,523,340
See accompanying notes to financial statements -28- VILLAGE OF SCHAUMBURG. ILLINOIS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS
For the Year Ended April 30.2010
Governmental Business-Type Activities Activities Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmajor and Regional Baseball Convention Enterprise Internal Sewerage Airport Stadium Center Funds Total Service Funds
OPERATING REVENUES Charges for services Tap on fees Miscellaneous Total operating revenues
OPERATING EXPENSES EXCLUDING DEPRECIATION AND AMORTIZATION Personnel services 3,957,62 1 177,113 20,758 4,155,492 Supplies 388,745 433,593 1,066 44,235 867,639 Services and charges 10,222,850 265,713 63,184 27,623,476 143,733 38,3 18,956 12,968,817 Capital outlay 583,235 270,O 15 65,844 9 19,094 450,635 Administrative charge by General Fund 475,688 475,688 Miscellaneous 3,597 22,25 1 25,848 Capital projects 22,520 22,520 Total operating expenses excluding depreciation and amortization 15,63 1,736 921,190 85,008 27,893,491 253,812 44,785,237 13,419,452
OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 2,657,325 (58,674) 246,945 3,014,783 3,154 5,863,533 5 12,222
DEPRECIATION AND AMORTIZATION 2,361,036 761,719 36 1,929 9,895,3 18 502,000 13,882,002 1,180,822
OPERATING INCOME (LOSS) $ 296,289 $ (820,393) $ (114,984) $ (6,880,535) $ (498,846) $ (8,018,469) $ (668,600) Governmental Business-Type Activities Activities Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmajor and Regional Baseball Convention Enterprise Internal Sewerage Airport Stadium Center Funds Total Service Funds
NONOPERATING INCOME (EXPENSES) Investment income $ 63,850 $ 1,968 $ 127 $ 64,180 $ 1,544 $ 131,669 $ 68,342 Amusement tax - 1,212,367 1,212,367 Telecommunications tax - 2,085,472 2,085,472 Hotel tax - 2,010,792 2,O 10,792 Home rule sales tax 133,142 133,142 Sales tax 133,142 133,142 Food and beverage tax 278,945 278,945 Other income 262,62 1 22,655 285,276 572,210 Interest expense (1 93,735) (13,695) (44,679) (1 1,424,263) (1 1,676,372) Gain (loss) on disposal of capital assets - (626,099) (626,099) ,167,893 Total nonoperating income (expenses) 132,736 (1 1,727) (44,552) (6,109,667) 1,544 (6,03 1,666) 808,445
INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS 429,025 (832,120) (159,536) (12,990,202) (497,302) (14,050,135) 139,845
TRANSFERS Transfers in Transfers (out) Total transfers
CONTRIBUTIONS
CHANGE IN NET ASSETS
NET ASSETS, MAY 1
NET ASSETS, APRIL 30
Change in net assets Adjustment to reflect the consolidation of internal service hnd activities related to enterprise funds (1 3 1,403) Change in net assets of business-type activities
See accompanying notes to financial statements. - 30- VILLAGE OF SCHAUMBURG. ILLINOIS
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
For the Year Ended April 30,2010
Governmental Business-Type Activities Activities
Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmajor and Regional Baseball Convention Enterprise Internal Sewerage Airport Stadium Center Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund service transactions Receipts from miscellaneous revenues Receipts of funds held for others Payments for interfund service transactions Payments to suppliers Payments to employees Other receipts (payments)
Net cash from (for) operating activities
CASH FLOWS FROM CAPITAL AND RELATED FmANCING ACTlVITIES Due from other governments Payments on bonds payable Deposit for capital acquisition Acquisition of capital assets Contribution of capital assets Sale of capital assets Unearned revenue Interest paid
Net cash from (for) capital and related financing activities (998,027) (1 06,768) (270,536) (824,811) - (2,200,142) (1,853,023)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (3,061,676) (7 13,955) - (28,539,496) (1,006,727) (33,321,854) (9,960,308) Proceeds from sales of investments 2,187,648 900,998 - 16,793,857 2,85 1,924 22,734,427 11,305,594 Investment income received 72,563 1,968 127 68,698 1,544 144,900 71,121
Net cash from (for) investing activities Governmental Busmess-Type Act~v~t~es Act~v~t~es
Schaumburg Waterworks Schaumburg Schaumburg Hotel and Nonmqor and Reg~onal Baseball Convent~on Enterprise Internal Sewerage Airport Stad~um Center Funds Total Sew~ceFunds
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer ~n $ - $ - $ 559,787 $ - $ - $ 559,787 $ Transfer out (7 17,977) (10,000) $ (1,928,000) $ (1,893,326) (4,549,303) Due tolfrom other governments 7,210,292 7,2 10,292 Transfer tolfrom other funds 21,938 (1,090) 24,301 6,22 1 (752) 50,618 94 Advances tolfrom other funds (3 16,030) 145,935 (170,095) Unearned revenue (200,006) (200,006)
Net cash from (for) noncap~talfinanc~ng actlvltles (1,O 12,069) (1,090) 720,023 5,088,507 (1,894,078) 2,901,293 94 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (137,910) (14,797) (1 10,203) (4,162,424) (1 13,492) (4,538,826) 513,312 CASH AND CASH EQUIVALENTS, MAY 1 2,426,723 875,55 1 222,281 13,653,654 310,875 17,489,084 2,534,864
CASH AND CASH EQUIVALENTS, APRIL 30 $ 2,288,813 $ 860,754 $ 112,078 $ 9,491,230 $ 197,383 $ 12,950,258 $ 3,048,176
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operat~ngIncome (loss) $ 296,289 $ (820,393) $ (114,984) $ (6,880,535) $ (498,846) $ (8,018,469) $ (668,600) Adjustments to reconcile operatlng lncome (loss) to net cash from (for) operatlng actlatles Deprec~at~onand amortlzatlon 2,361,036 761,719 36 1,929 9,895,3 18 502,000 13,882,002 1,180,822 Other nonoperat~ngIncome (expense) 262,620 262,620 572,210 Changes m Rece~vables (76,9 18) (5 1,687) (421,244) 21,942 (527,907) Depos~ts (13,080) (13,080) Prepa~dltems 2,906 42,603 45,509 80,741 Inventory (12,711) (12,711) Accounts payable (189,889) 9,333 (385,518) (397,092) (92,304) (1,055,470) (141,754) Accrued payroll (4,628) (4,628) Clams payable (73,585) Compensated absences 35,315 35,315 Other assets 5,078 603,238 1,053 609,369
NET CASH FROM (FOR) OPERATING ACTIVITIES $ 2,673,651 $ (95,950) $ (559,817) $ 3,250,821 $ (66,155) $ 5,202,550 $ 949,834 SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Increase (decrease) m fa~rvalue of ~nvestments $ (145) $ (123) $ - $ 15,701 $ 450 $ 15,883 $ TOTAL NONCASH TRANSACTIONS $ - (145) $ (123) $ - $ 15,701 $ 450 $ 15,883 $
See accompanying notes to financial statements -32- VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS
April 30, 2010
Pensioii Trust Agency
ASSETS Cash and cash equivalents Investments U.S. government obligations U.S. agency obligations Mutual funds Municipal bonds Equity securities Receivables Accrued interest Other
Total assets
LIABILITIES Accounts payable Deposits Advance from other funds
Total liabilities
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS
See accompanying notes to financial statements. - 33 - VILLAGE OF SCHAUMBURG, ILLINOIS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS PENSION TRUST FUNDS
For the Fiscal Year Ended April 30,2010
ADDITIONS Contributions Employer Plan members Miscellaneous revenue Creditable service transfer
Total contributions
Investment income Net appreciation in fair value of investments Interest and dividends
Total investment gain Less investment expense
Net investment gain
Total additions
DEDUCTIONS Benefits Administrative
Total deductions
NET INCREASE
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS
May 1
April 30
See accompanying notes to financial statements. - 34 - VILLAGE OF SCHAUMBURG, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
April 30,2010
INDEX
Note Title Page
1 Summary of Significant Accounting Policies 36
2 Legal Compliance and Accountability 43
3 Deposits and Investments 44
4 Receivables 47
5 Capital Assets 49
6 Risk Management 5 1
7 Long-Term Debt 52
8 Tax Increment Financing 5 8
9 Interfund Balances 59
10 Contingent Liabilities 62
11 Joint Venture 63
12 Baseball Stadium 63
13 Defined Benefit Pension Plans 64
14 Other Postemployment Benefits 72
15 Effect of New Accounting Standards on Current-Period Financial Statements 74 VILLAGE OF SCHAUMBURG, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
April 30,201 0
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Schaumburg, Illinois (the Village) was incorporated on March 7, 1956. The Village operates under a board-manager form of government as a home rule community (as defined by the State of Illinois Constitution) and provides the following services as authorized by its charter: public safety (police and fire), highway and street maintenance, water and sewer utility, public improvements, planning and zoning, health and social services, culture, recreation and general governmental administrative services.
The accompanying financial statements of the Village have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing govemmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below.
The Village of Schaumburg's fiscal year end is April 30 of each year. The accompanying financial statements of the Village are for the fiscal year ended April 30, 2010. The Schaumburg Hotel and Convention Center has a fiscal year-end as of the Friday closest to December 31 in any calendar year, effective with the fiscal period beginning May 1, 2006. Amounts included in this report are as of and for the year ended January 1,2010.
a. Reporting Entity
The financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as:
1) Appointment of a voting majority of the component units board, and either a) the ability to impose will by the primary government, or b) the possibility that the component unit will provide a financial benefit to, or impose a financial burden on, the primary government; or
2) Fiscal dependency on the primary government.
Blended Component Units
Police Pension Plan: The Village's police employees participate in the Police Pension Plan, which is governed by a separate board. The Village is obligated to fund the Police Pension Plan costs based upon actuarial valuations.
Firefighters Pension Plan: The Village's firefighter employees participate in the Firefighterd Pension Plan, which is governed by a separate board. The Village is obligated to fund the Firefighter9 Pension Plan costs based upon actuarial valuations. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLIClES (Continued) I b. Basis of Presentation-Fund Accounting The accounts of the Village are organized based on funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. Funds are classified into the following categories: governmental, proprietary, and fiduciary.
Governmental Funds
Governmental funds are those through which most governmental functions of the Village are financed. The Village's expendable financial resources (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is based upon determination of changes in financial position, rather than upon net income determination. The following are the Village's governmental fund types:
General Fund-The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds-The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes.
Debt Service Funds- The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general obligation long-term debt principal, interest, and related costs (other than those financed by proprietary funds).
I Capital Projects Funds-The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital items (other than those financed by proprietary funds). I Proprietary Funds Proprietary Funds are used to account for the Village's ongoing activities that are similar to those found in the private sector. The measurement focus is based on the determination of net income. These funds account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The following are the Village's proprietary fund types:
Enterprise Funds-Enterprise Funds provide goods and services to customers outside the primary government.
Internal Service Funds-Internal Service Funds are used to account for goods and services where the customers are withn the primary government. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I b. Basis of Presentation-Fund Accounting (Continued) Fiduciary Funds
Fiduciary Funds are used to account for assets held by the Village in a trust capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. The Village utilizes pension trust funds and agency funds, which are generally used to account for assets that the Village holds in a fiduciary capacity or on behalf of others as their agent.
c. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expense of a given function, segment, or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and shared revenues that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded fiom the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
The Village reports the following major governmental funds:
The General Fund is used to account for the resources traditionally associated with governments which are not required to be accounted for in another fund.
The Development Contribution Fund is used to account for the financial resources received from fees imposed by the Village for development of Village improvements such as traffic signals, streetlights, utilities, and sidewalks.
The General Obligation Capital Improvement Bonds, Series 2002A Debt Service Fund is used to account for the payment of principal and interest of 2002A Series, $33,875,000 General Obligation Capital Improvement Bonds. These bonds were issued to finance the improvements to fire stations, emergency communications center, utility burials and renovation of the Public Works Center. Financing is being provided by revenues other than property taxes. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Government-Wide and Fund Financial Statements (Continued)
The Olde Schaumburg Centre Special Allocation Fund (Tax Increment Area Number One) is used to account for the financial resources to be used for the construction of various corporate, public works, and community development projects. Financing is provided by incremental property taxes.
The Capital Improvements Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. Financing is provided by developer and intergovernmental contributions.
The 2008 Project Fund is used to account for the financial resources to be used for the Village's current capital improvement program consisting of various public works improvements and community development projects within the tax increment financing district, including, but not limited to, Pleasant Square detention and infrastructure improvements, parking lot expansion, various traffic signals, streets and sidewalk improvements, and to pay the costs of the issuance of the bonds.
The 2010B Project Fund is used to account for the financial resources to be used to finance road improvements at various locations throughout the Village and to pay the costs of the issuance of the bonds.
The Village reports the following major enterprise funds:
The Waterworks and Sewerage Fund accounts for the provision of water and sewer services to the residents and businesses of the Village financed by user fees.
The Schaumburg Regional Airport Fund accounts for the operating revenue and expenses of the Village of Schaumburg Regional Arport.
The Schaurnburg Baseball Stadium Fund accounts for the operating revenue and expenses of the Village's share of the Schaumburg Baseball Stadium.
The Schaumburg Hotel and Convention Center Fund accounts for the operating revenue and expenses of the Village of Schaumburg Hotel and Convention Center.
Additionally, the Village reports the following internal service funds:
The Vehicle Replacement Fund accounts for the costs of providing certain operating vehicles used by Village departments. Financing is provided by charges to other funds.
The Technology Replacement Fund accounts for the costs of providing certain office equipment used by Village departments. Financing is provided by charges to other funds.
The Building Replacement Fund accounts for the costs of maintaining certain buildings used by Village departments. Financing is provided by charges to other funds.
The Risk Management Fund accounts for the servicing and payment of claims for liability, property, casualty, workefs compensation, and medical benefits. Financing is provided by charges to the various Village funds. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Government-Wide and Fund Financial Statements (Continued)
The Village reports pension trust funds as fiduciary funds to account for the Police Pension Fund and Firefighters' Pension Fund. Furthermore, the Village reports the following agency funds as fiduciary funds: Builders' Escrow and Special Service Area Numbers Nine through Thirteen.
d. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements, with the exception of the agency fund financial statements, which have no measurement focus. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenuestexpenses directly related to providing enterprise fund services. Incidental revenues/expenses are reported as nonoperating.
Pursuant to GASB Statement No. 20, Accounting and Financial Reportingfor Pvoprietaly Funds, the Village has chosen to apply all GASB pronouncements and have elected not to follow Financial Accounting Standards Board pronouncements issued after November 30, 1989 to account for enterprise funds.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except sales and telecommunications taxes, which are 90 days, and intergovernmental revenues which are individually determined by their own legal and contractual requirements. Expenditures generally are recorded when a fund liability is incurred. However, debt service expenditures are recorded only when payment is due.
Property taxes, sales taxes owed to the state at year-end, franchise taxes, licenses, and interest associated with the current fiscal period are all considered susceptible to accrual and are recognized as revenues of the current fiscal period. Licenses and permit fees, charges for services (other than enterprise funds), and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received.
In applying the susceptible to accrual concept to intergovernmental revenues (i.e., federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditurestexpenses recorded. In the other, monies are virtually unrestricted as to purpose of expendituretexpense and are generally revocable only for failure to comply with prescribed eligibility requirements, such as equal employment opportunity. These resources are reflected as revenues at the time of receipt or earlier if they meet the availability criterion. 1 VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
The Village reports unearned revenue on its financial statements. Unearned revenues arise when potential revenue does not meet both the measurable and available or earned criteria for recognition in the current period. Unearned revenues also arise when resources are received by the Village before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the incurrence of qualifying expenditures/expenses. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability for unearned revenue is removed from the financial statements and revenue is recognized.
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
e. Cash and Investments
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Village's proprietary funds consider their equity in pooled cash and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Investments
Investments with a maturity of one year or greater at the time of purchase and all investments of the pension funds are stated at fair value except for non-negotiable certificates of deposit which are recorded at cost. Fair value has been based on quoted market prices at April 30, 2010 for debt and equity securities.
f. Interfimd Receivables/Payables
During the course of operations, numerous transactions occur between individual hds for goods provided or services rendered. These short-term receivables and payables are classified as6'duefrom other fund3'or"due to other fund$ on the balance sheet. Long-term interfund loans are classified as advances tolfrom.
g. Receivables
Receivables consist primarily of property taxes, intergovernmental, user fees, and other miscellaneous amounts due the Village.
h. Inventories
Inventories are valued at cost, which approximates market, using the first-idfirst-out (FIFO) method. The costs of govemmental inventories, if any, are recorded as expenditures when consumed rather than when purchased. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Compensated Absences
Vested or accumulated vacation leave, compensatory time off, longevity pay, and accumulated sick leave for those eligible for the sick time reimbursement plan that is due to employees who have retired or terminated by the end of the year is reported as an expenditure and a hdliability of the governmental fund that will pay it. Vested or accumulated vacation leave, compensatory time off, longevity pay, and accumulated sick leave for those eligible for the sick time reimbursement plan of proprietary funds and governmental activities are recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits, as this liability is recognized only when the rights are used.
j . Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type financial statements. Bond premiums and discounts, as well as issuance costs, are unearned and amortized over the life of the bonds. Bond issuance costs are reported as unearned charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld fiom the actual debt proceeds received, are reported as expenditures.
k. Fund Balances/Net Assets
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of hdbalance represent management plans that are subject to change. In the government-wide fmancial statements, restricted net assets are legally restricted by outside parties for a specific purpose. Capital assets, net of related debt, is the book value of the capital assets less the outstanding principal balance of long-term debt issued to construct or acquire the capital asset.
$1,302,402 of the Village's restricted net assets (all highways and streets and a portion of restricted for other) is a result of enabling legislation. This number is comprised of $274,417 for foreign fire insurance expenses, $59,744 for DUI technology expenses, $41,2 18 for drug seizure expenses, and $927,023 for Motor Fuel Fund expenses. When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
k. Fund Balances/Net Assets (Continued)
$4,004,014 of the Village's net assets are designated for specific projects and programs as follows:
General Fund designated for Development Contribution Fund designated for Historic district improvements $1,200,000 Street lights $1,605,119 Dare program 8,400 ~idewalkslbike~aths Child pass safety program 2,753 Traffic signals Health department 23,843 Parkway trees SYO fund raising 48,240 Right of ways Teen center 5,642 Community assistance 3,85 1
1. Interfund Transactions
Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures1 expenses in the fund that is reimbursed.
All other interfund transactions, except interfund service transactions and reimbursements, are reported as transfers.
m. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000 ($50,000 for infrastructure) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs, including street overlays, that do not add to the value or service capacity of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:
Land improvements ...... 7- 10 years Buildings and improvements ...... 20-45 years Furniture and fixtures ...... 3-1 5 years Machinery and equipment ...... 3-15 years Roads ...... 40 years Bridges ...... 40 years Wells and water mains ...... 40 years VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
2. LEGAL COMPLIANCE AND ACCOUNTABILITY
a. Other Net Assets Restricted for Other Purposes as of April 30,2010:
Advances $813,537 Inventories 243,289 Prepaid items 83,397 Loan receivable 66,144 Land held for resale 747,044 Public safety 8,186,246 Other 995,365 Total other net assets restricted $1 1,135,022
b. Deficit Fund Balancesmet Assets of Individual Funds
The following funds had a deficit fund balancelnet assets as of April 30,2010:
Deficit Fund Balance Star Line Transit Oriented Development $64,603
Special Assessment #3-Construction $23,700
This deficit will be funded by future operating revenues.
3. DEPOSITS AND INVESTMENTS
Deposits and investments are held separately and in pools by several of the Village's funds. The Village invests these funds pursuant to investment guidelines established by the Board of Trustees and by the Village's Director of Finance. The deposits and investments of the Pension Trust Funds are held separately.
Investments in The Illinois Funds, a money market pool created by the Illinois State Legislature under the control of the Illinois State Treasurer, are reported at $1 per share value, which equals the Village's fair value of the pool.
Illinois Metropolitan Investment Fund (MET) is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. lMET is not registered with the Securities and Exchange Commission (SEC) as an investment company. Investments in MET are valued at IMETs share price, the price for which the investment could be sold.
a. Deposits
At year-end, the carrying amount of the Village's deposits, including the pension funds, totaled $25,150,274 and the bank balances totaled $24,982,314 (cash on hand of $3,350 has been excluded). The bank balances are covered by federal depository insurance or by collateral held by the Village, or its agent, in the Village's name.
To guard against credit risk for deposits with financial institutions, the Village's investment policy requires that deposits with financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) insurance be collateralized with collateral in an amount of 110% of the uninsured deposits. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
3. DEPOSITS AND INVESTMENTS (Continued)
b. Investments
As of April 30,2010, the Village had the following investments and maturities.
Investment Maturities 0 to 6 months 1 to 5 Fair Value 6 months to 1 year years The Illinois Funds $34,539,971 $ 34,539,971 $ - $ - Money Market Mutual Fund 110,766 1 10,766 - MET 85 1,402 - - 85 1,402 U.S. Treasury Bills - U.S. Treasury Strips 23,120,005 12,746,298 7,887,282 2,486,425 U.S. Agency Securities 1,570,905 1,570,905 TOTAL $ 60,193,049 $47,397,035 $ 7,887,282 $4,908,732
As of April 30,2010, the Police Pension Fund had the following investments and maturities.
Investment Maturities Fair Less than More than Value 1 year 1 to 5 years 6 to 10 years 10 years The Illinois Funds $ 317,693 $ 317,693 $ - $ - $ Equity Securities U.S. Treasury Strips U.S. Treasury Notes U.S. Treasury Bonds U.S. Agency Securities Mortgage-Backed Securities TOTAL
As of April 30,2010, the Firefighters' Pension Fund had the following investments and maturities.
Investment Maturities Fair Less than More than Value 1 year 1 to 5 years 6 to 10 years 10 years The Illinois Funds $ 444,209 $ 444,209 $ $ $ Mutual Funds 9,879,720 9,879,720 Equity Securities 2 1,4 15,906 21,415,906 Municipal Bonds 1,160,902 524,892 280,272 355,738 U.S. Treasury Bill 25 1,307 25 1,307 - U.S. Treasury Strips 7,336,571 4,526,745 2,166,754 643,072 U.S. Treasury Notes 5,950,145 355,551 1,939,974 1,431,176 2,223,444 U.S. Treasury Bonds 4,362,848 2,090,803 2,272,045 U.S. Agency Securities Mortgage-Backed Securities TOTAL VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
3. DEPOSITS AND INVESTMENTS (Continued)
b. Investments (Continued)
Interest Rate Risk
In accordance with the investment policy, the Village, Police Pension Fund, and FirefighterS Pension Fund limit their exposure to interest rate risk by structuring the portfolios to meet the daily cash flow demands while providing the highest investment return with the maximum security. The portion of the Village's portfolio that is invested with the Illinois Metropolitan Investment Fund (IMET) has an average maturity of 1.66 years and a duration of 1.59 years, and is subject to interest rate risk.
Credit Risk
The Village, Police Pension Fund, and Firefighters Pension Fund limit their exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in securities issued by agencies of the United States Government that are legally or implicitly guaranteed by the United States Government. The various agency securities are not rated, but the overall ratings of the agency's long-term debt are Aal as rated by Moody's Investors Service and AA+ by Standard & Poor's.
The Illinois Funds, a state investment pool, was rated AAAm by Standard & Poor's and the IMET fund was rated AAAfIsl by Moody's Investors Service. The money market mutual fund held by the Bank of New York was rated Aaa by Moody's Investors Service and AA by Standard & Poor's.
Concentration of Credit Risk
In order to limit its exposure to concentration of credit risk, the Village's investment policy limits the investment in any one financial institution to twenty-five percent (25%), exclusive of any United States treasury or agency securities held in safekeeping by that institution on the Village's behalf, up to forty percent (40%) in Illinois Funds, and up to twenty-five percent (25%) for MET. At April 30, 2010, the Village had 42.9% invested in The Illinois Funds. Concentration of credit risk excludes investments that are issued or explicitly guaranteed by the U.S. government and investments in mutual funds.
At April 30, 2010, the Police Pension Fund had 5.65% invested in FHLB's, 6.30% in FHLMCs and 13.69% in FNMA's. It is the policy of the Police Pension Fund to invest a maximum of 85% in U. S. Treasury Bonds and Agency Securities.
At April 30,2010, the Firefighters Pension Fund had 17.79% invested in FNMRs. It is the policy of the Fire Pension Board to invest a maximum of 85% in U.S. Treasury Bonds and Agency Securities. The Pension Fund also owns five municipal bonds. All bonds are insured and have received at least an Aal rating from Moody's and AA+ from Standard and Poor's.
Custodial Credit Risk
The Village, Police Pension Fund, and Firefighters Pension Fund limit their exposure to custodial credit risk, the risk that, in the event of the failure of the counterparty, the Village or Pension Funds will not be able to recover the value of their investments or collateral securities that are in the possession of an outside party, by utilizing independent third-party institutions, selected by the Village or Pension Funds, to act as custodians for their securities and collateral. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
3. DEPOSITS AND INVESTMENTS (Continued)
b. Investments (Continued)
Foreign Currency Risk
The Village's investments are not denominated in foreign currency and, therefore, are not subject to foreign currency risk.
The Police Pension Funds investment policy permits it to invest up to twenty percent (20%) of total investments in international equity funds, and its current position is 7.4%. The Fund's investments are not denominated in foreign currency and, therefore, are not subject to foreign currency risk.
The Firefighter$ Pension Fund's investment policy permits it to invest up to five percent (5%) of total investments in international equity funds and its current position is 4.8%. The Funds investments are not denominated in foreign currency and, therefore, are not subject to foreign currency risk.
4. RECEIVABLES
a. Property Taxes
The Village is a home-rule community under the 1970 Illinois Constitution and, accordingly, does not have a statutory property tax rate limit. In 2009 the Village levied, for the first time, a property tax for corporate, Police Pension and Fire Pension purposes. The Village also levies taxes for the payment of special service area bonds and receives, but does not levy for, road and bridge and tax increment financing district property taxes.
The Village does not record a receivable for property taxes related to the Tax Increment Financing (TIF) districts. Due to the nature of TIF revenues, the Village does not levy a direct tax upon the districts. Instead, the property taxes are bases solely upon the incremental increase in the property value utilizing the tax rates of all the taxing bodies whose boundaries encompass the districts. As such, the Village can not reasonably estimate the receivable and records the revenue on the cash basis.
The Village's property tax is levied each calendar year on all taxable real property located in the Village. Governmental funds' property taxes which are due within the current fiscal year, the year intended to finance, and collected within 60 days subsequent to year-end, are recorded as revenue.
The Cook and DuPage County Assessors are responsible for assessment of all taxable real property except for certain railroad property, which is assessed directly by the state. Reassessments occur based on market conditions. The County Clerk computes the annual tax for each parcel of real property and prepares tax books used by the County Collector as the basis for issuing tax bills to all taxpayers in the County.
Property taxes are collected by the County Collector and are submitted to the County Treasurer, who remits to the units of government their respective shares of the collections. Taxes levied in one year become due and payable in two installments on March 1 and September 1 during the following year. Taxes must be levied by the last Tuesday in December of the levy year and the levy becomes an enforceable lien against the property as of January 1 of the levy year. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
4. RECEIVABLES (Continued)
a. Property Taxes (Continued)
The 2009 tax levy collections are intended to finance the 20 10-201 1 fiscal year, are not considered available for current operations, and are, therefore, shown as unearned revenue. The 2010 tax levy has not been recorded as a receivable at April 30, 2010, as the tax attached as a lien on property as of January 1,2010; however, the tax will not be levied until December 201 0 and, accordingly, is not measurable at April 30, 2010. A 1% provision for uncollectible taxes has been factored into the property tax receivable.
b. Other Receivables Governmental Activities Business-Type Activities Locally imposed Hotel Tax Amusement tax Food and beverage tax Total locally imposed Other receivables Fines and fees Ambulance fees False alarms Miscellaneous Total fines and fees Community grant rehabilitation * Hotel charges Airport rentals Baseball rentals Loans Miscellaneous Total other Total Other Receivables
*The Village expects all receivables to be collected within one year with the exception of $824,5 13 of the Community Grant Rehabilitation receivable.
c. Due From Other Governments Governmental Business-Type Activities Activities Sales tax $ 5,928,637 $46,144 Income tax 2,096,044 Home rule sales tax 4,112,095 46,144 Transit program 39,82 1 Motor fuel tax allotments 164,7 17 - Telecommunications tax 962,030 520,924 Schaumburg Park District 2,600,000 Miscellaneous 214,102 Total Due From Other Governments $ 13,517,446 $ 3,213,212 - 48 - VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
5. CAPITAL ASSETS
The following is a summary of capital asset activity during the fiscal year:
Beginning Ending Balance Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated
Land $ 13,498,725 $ 332,497 $ - $ 13,831,222 Land right of way 35,488,291 - 35,488,291 Construction in progress - 32,461 - 32,461 Internal service assets Construction in progress 628,427 12,229 628,427 12,229 Total capital assets not being depreciated 49,615,443 377,187 628,427 49,364,203
Capital assets being depreciated Land improvements Buildings Machinery and equipment Roads Bridges Internal service assets Land improvements Building improvements Machinery and equipment Total capital assets being depreciated
Less accumulated depreciation for Land improvements Buildings Machinery and equipment Roads Bridges Internal service assets Land improvements Building improvements Machinery and equipment
Total accumulated depreciation
Total capital assets being depreciated, net 93,663,953 (3,379,338) (1,383) 90,285,998
GOVERNMENT ACTIVITIES CAPITAL ASSETS, NET $143,279,396 $(3,002,151) $ 627,044 $139,650,201 Reconciling item to account for internal service fund assets (7,911,459)
Total governmental activities capital assets, excluding internal service funds $131,738,742 - 49 - VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
5. CAPITAL ASSETS (Continued)
Beginning Ending Balance Increases Decreases Balance BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 29,419,114 $ Construction in progress - - Total capital assets not being depreciated 29,419,114 - 29,419,114
Capital assets being depreciated Land improvements Buildings Machinery and equipment Furniture and fixtures Wells and water mains Internal service equipment Total capital assets being depreciated
Less accumulated depreciated for Land improvements Buildings Machinery and equipment Furniture and fixtures Wells and water mains Internal service equipment Total accumulated depreciation
Total capital assets being depreciated, net
BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $3 15,660,215 $(12,430,955) $ 633,069 $302,596,191
Depreciation expense was charged to the governmental activities functionsiprograms as follows:
GOVERNMENTAL ACTIVITIES General government Public safety Public works, including depreciation of general infrastructure assets Health and welfare Culture and recreation Internal service funds
TOTAL DEPRECIATION EXPENSE-GOVERNMENTAL ACTIVITIES rn VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
6. FUSK MANAGEMENT
Self-Insurance Program
The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the Village's employees. The Village also offers two health plans for employee health and dental insurance: a self-insured indemnity plan and a conventional HMO plan.
These risks are provided for through a limited self-insurance program. The Village is self-insured for the first $50,000 for property claims, $125,000 per employee for medical claims, $100,000 for liability claims, and $550,000 for workds compensation claims. The Village has contracted with third-party administrators (TPAs) to administer these insurance programs and to review and process claims. Commercial insurance is carried for amounts in excess of the self-insured amounts. There have been no significant reductions in insurance coverage during the current year. For all insured programs, settlement amounts have not exceeded insurance coverage for the current or two prior years. The Villagets self- insurance activities are reported in the Risk Management Fund.
Premiums are paid by the Risk Management Fund based upon historical cost estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
A reconciliation of claims liability for the current year and that of the preceding year is reported below.
General Liability Worker's Compensation Medical 2010 2009 2010 2009 2010 2009 Claims Liability, May 1 $ 789,609 $499,422 $1,353,319 $ 1,083,806 $938,396 $ 636,218 Add Claims Incurred 392,409 718,949 1,160,915 1,335,434 6,010,322 6,166,411
Less Claims Paid (479,327) (428,762) (1,089,587) (1,065,921) ( 6,068,317) (5,864,233) Liability, April 30 $702,691 $ 789,609 $ 1,424,647 $ 1,353,319 $ 880,401 $938,396 VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
I 7. LONG-TERM DEBT The following is a summary of changes in bonds, notes, and other long-term liabilities during the year ended April 30,20 10.
Refundingst Due Within Mav 1 Additions Reductions April 30 One Year GOVERNMENTAL ACTIVITIES General Obligation Bonds $67,025,338 $22,385,000 $19,990,338 $69,420,000 $7,280,000 Compensated absences payable 6,075,246 1,0011056 570,957 6,505,345 479,056 Capital lease payable 18.319 12,980 5,339 5,339 TOTAL GOVERNMENTAL ACTIVITIES $73.1 18.903 $23.386.056 $20.574.275 $75930.684 $7.764.395
In governmental activities, compensated absences are liquidated by the General Fund.
The following is a summary of changes in bonds, notes, and other long-term liabilities during the year ended April 30,2010.
Refundingst Due Within Mav 1 Additions Reductions Avril30 One Year BUSINESS-TYPE ACTMTIES General Obligation Bonds Schaumburg Regional Airport General Obligation Bonds $ 500,000 $ - $105,000 $ 395,000 $ 105,000 Schaumburg Baseball Stadium General Obligation Bonds 6,300,000 - 1,100,000 5,200,000 1,200,000 Waterworks and Sewerage General Obligation Bonds 5,029,662 - 609,662 4,420,000 370,000 Schaumburg Convention Center General Obligation Bonds 228,690,000 - 228,690,000 Compensated absences payable 571,025 36,417 21.558 585.884 16.203
TOTAL BUSINESS-TYPE ACTIVITIES I In business-type activities, compensated absences are liquidated by the Waterworks and Sewerage Fund and the Au-pok Fund. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
a. Bonds Payable
General Obligation Bonds Due Within Total One Year GOVERNMENTAL ACTIVITIES
$33,875,000 2002A General Obligation serial bonds, due in annual installments of $1,125,000 to $2,585,000 through 2012 plus interest from 4.00% to 5.50% due January 1 and July 1 $ 5,160,000 $2,580,000
$17,050,000 2004A General Obligation serial bonds, due in annual installments of $655,000 to $1,185,000 through 2024 plus interest from 3.00% to 5.00% due June 1 and December 1 13,690,000 710,000
$4,505,000 2004B General Obligation serial bonds, due in annual installments of $1 60,000 to $325,000 through 2025 plus interest from 2.00% to 5.25% due June 1 and December 1 3,670,000 185,000
$21,180,000 2005A General Obligation serial bonds, due in annual installments of $8 15,000 to $1,540,000 through 2024 plus interest from 3.250% to 4.375% due June 1 and December 1 17,785,000 910,000
$8,500,000 2008 General Obligation serial bonds, due in annual installments of $945,000 to $2,010,000 through 20 13 plus interest from 3.00% to 3.25% due June 1 and December 1 6,730,000 1,770,000
$13,735,000 20 10A General Obligation serial bonds, due in annual installments of $120,000 to $1,160,000 through 2021 plus interest from 1% to 4% due January 1 and July 1 13,735,000 265,000
$8,650,000 2010B General Obligation serial bonds, due in annual installments of $800,000 to $965,000 through 2019 plus interest from 1.5% to 3.25% due June 1 and December 1 8.650.000 860,000
TOTAL $ 69.420.000 $ 7 780.000
Advance Refunding:
On April 1,2010 the Village issued its $1 3,735,000 Series 2010A General Obligation Refunding Bonds, with an average interest rate of 2.5219%, to advance refund $13,255,000 of outstanding Series 2002A General ObIigation Bonds with an average interest rate of 5.320%. The refbnding bonds were sold at a premium of $924,072. The net proceeds of $14,524,128 (after payment of $58,374 in underwriting fees and $76,570 in costs of issuance) were used to purchase U.S. Government State and Local Government Series securities, which were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the refhnded Series 2002A bonds. As a result, the refunded Series 2002A bonds are considered to be defeased and the liability for those bonds has been removed fro the government-wide statement of net assets. On April 30, 2010 $13,255,000 of bonds outstanding are considered defeased. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
a. Bonds Payable (Continued)
General Obligation Bonds (Continued)
The Village completed the advance refunding to reduce its total debt service payments over the next twelve years by $997,564, and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $878,506. The present value savings represents 6.396% of the refunding bonds.
Due Within Total One Year BUSINESS-TYPE ACTIVITIES
Schaumburg Convention Center Fund $228,690,000 2004B General Obligation serial bonds, due in annual installments of $390,000 to $19,450,000 from 201 1 through 2042 plus interest from 2.50% to 5.25% due June 1 and December 1 $228,690,000 $ -
Schaumburg Baseball Stadium Fund *$12,200,000 1998A General Obligation variable rate demand bonds, due in annual installments of $600,000 to $1,100,000 through 20 13 plus variable interest due monthly $ 4,100,000 $ 1,000,000 *$2,800,000 1998B General Obligation variable rate demand bonds, due in annual installments of $1 00,000 to $300,000 through 20 13 plus variable interest due monthly $ 1,100,000 $ 200.000 Total Schaumburg Baseball Stadium Fund $ 5,200,000 $ 1,200,000
Waterworks and Sewerage Fund $6,125,000 2004B General Obligation serial bonds, due in annual installments of $325,000 to $525,000 through 2020 plus interest from 2.50% to 5.25% due June 1 and December 1 $ 4,420.000 $ 370,000
Total Waterworks and Sewerage Fund $ 4,420,000 $ 370.000
Schaumburg Airport Fund
$500,000 2008 General Obligation serial bonds, due in annual installments of $55,000 to $120,000 through 2013 plus interest from 3.00% to 3.25% due June 1 and December 1 $ 395.000 $ 105.000
*These bonds described above from time to time bear interest under three different modes and may be converted from one mode to another, and each series may be outstanding in more than one mode. The modes permitted by the indenture provide for payment to the holder of par and accrued interest on notice of a weekly period, commercial paper periods of up to 360 days, and adjustable periods of not less than one month and other periods up to maturity of the bonds. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
a. Bonds Payable (Continued)
General Obligation Bonds.(Continued)
Effective March 1, 2000, purchases of the bonds tendered for all issues described above, to the extent not remarketed, will initially be funded under Stand-by Bond Purchase Agreements with JP Morgan Chase Bank, National Association, and the Northern Trust Company (the Banks). The Stand-by-Bond Purchase Agreements initially expired on March 1,2003, and, as such, amendments extending the expiration date were executed. The current agreements expire on March 31,2012. The Stand-by-Bond Purchase Agreements are subject to a commitment fee of 0.125% of the outstanding principal balance of the bonds not purchased under these agreements.
Bonds purchased by the Banks under these agreements shall thereupon come payable to the Banks in ten semiannual installments beginning after the expiration date of these agreements in effect at the time of bond purchase.
b. Capital Lease
Due Within Governmental Activities (General Fund) Total One Year
$21,825 Capital lease agreement with GE Capital Public Finance commencing September 9, 2005, due in monthly installments of $363.75 through August 1,2010. $ 1,442 $ 1,442
$47,700 Capital lease agreement with Oce Financial Services Inc. commencing October 3, 2005, due in monthly installments of $795 through September 3,2010. 3,897 3,897
TOTAL VILLAGE OF SCHAUMRURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
c. Debt Requirements to Maturity (Continued)
The annual requirements to amortize all debt outstanding as of April 30,2010 are as follows:
Government Activities Business-Type Activities General Obligation Bonds General Obligation Bonds* April 30 Principal Interest Total Principal Interest Total VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
c. Debt Requirements to Maturity (Continued)
Total General Obligation Bonds* April 30 Principal Interest Total
201 1 2012 2013 201 4 2015 2016 2017 2018 201 9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
*An interest rate of 2.50% is assumed for tax-exempt and 3.75% for taxable General Obligation variable rate demand bonds. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
d. Noncommitment Debt
Special Assessment Debt
Special assessment bonds outstanding as of the date of this report totaled $2,887,000. The Village is not obligated in any manner for any portion of this debt and is not acting as the agent for the assessed property owners.
e. Conduit Debt
The Village has issued Industrial Development Revenue Bonds (IDRBs) to provide financial assistance to private organizations for the construction and acquisition of industrial and commercial facilities deemed to be in the public interest. The bonds are secured solely by the property or mortgages fmanced and are payable solely from the payments received on the underlying mortgage loans on the property. The Village is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds outstanding are not reported as a liability in these financial statements.
The Village has four issues outstanding as of April 30,2010. The aggregate principal amount payable for the four series which could be determined was $10,921,702.
8. TAX INCREMENT FINANCING
The Village has two Tax Increment Financing Districts. The Village has designated the approximately one square mile area at the intersection of Schaumburg and Roselle Roads ('Olde Schaumburg Centrs') as a redevelopment project area and the 360 acre Star Line Transit Oriented Development Tax Increment Financing District, that is generally bounded by Algonquin Road on the north, Golf Road on the south, Arbor Drive on the east and Meacham Road on the west, as a redevelopment project area. Both are in accordance with the Tax Increment Allocation Redevelopment Act of the State of Illinois. The act provides for tax increment financing to fund the cost of approved property redevelopment. Under tax increment financing, tax revenues are derived from the increase in the current equalized assessed valuation of real property within the redevelopment area over and above the certified initial equalized assessed valuation of the property. These tax revenues are to be exclusively utilized for the redevelopment of the project areas. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
9. INTERFUND BALANCES a. Due ToIFrom Other Funds
All hdsas of April 30,2010:
Receivable Fund Payable Fund Amount General Debt Service $ 172 General Enterprise 19,853 General Nonmajor governmental 212,438 General Internal Service 2,962 Capital Improvements General 1,295 Internal Service General 25 Debt Service Nonmaj or governmental 3,107 Enterprise Nonmaj or governmental 118 Enterprise Internal Service 269 *Hotel and Convention Center General 730
TOTAL
Hotel and Convention Center as of January 1,2010:
Receivable Fund Payable Fund Amount Hotel and Convention Center General $ 61,334 Total due to/fioms as of January 1,2010 61,334
*Net of due to/fi-omsas of April 30,2010 due to the Hotel and Convention Center being reported on a different fiscal year-end 730 Reconciliation of internal balances: $ 60.604
The purpose of the major due tolfiom other funds is as follows:
$147,322 of the General Fund receivable from a nonmajor governmental fund relates to the Schaumburg Transit Program Fund. The Village's fund balance policy requires that the fund balance in the Schaumburg Transit Program Fund always be $0 at each fiscal year-end.
As such, after all journal entries are posted for GAAP purposes, the fund balance in the Schaumburg Transit Program Fund is analyzed and adjusted accordingly.
$64,603 of the General Fund receivable from a nonmajor governmental fund relates to the Star Line TOD TIF Fund. Expenditures for postage and professional services were incurred and paid for by the General Fund. Reimbursements will be made once property tax receipts are received. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
9. INTERFUND BALANCES (Continued)
b. Advances To/From Other Funds
Receivable Fund Payable Fund Amount General Schaumburg Baseball Stadium $ 574,837 Capital Improvements Schaumburg Baseball Stadium 215,000 Capital Improvements Nonrnaj or governmental 23,700 Enterprise Agency 753,120 Enterprise 2008 Project Fund 504,297
TOTAL
The purpose of the advances to/from other funds is as follows:
Due to construction costs of the baseball stadium and related off-site improvements being higher than the bond proceeds received for the project, the General Fund advanced the Schaumburg Baseball Stadium Fund money. Annually, a cash flow analysis is performed to determine the amount of the advance reduction. However, in the current year additional funding of $20,935 was needed to cover expenditures and the balance increased to $574,837 as of April 30,2010.
The Capital Improvements Fund advanced the Schaumburg Baseball Stadium Fund a net $125,000 in the fiscal year to paint the stadium. The balance as of April 30,2010 was increased to $215,000.
The Capital Improvements Fund advanced the Special Assessment #3 Construction Fund $130,746 in the summer of 2003 for roadway improvements related to McLin Boulevard. Financing to repay the advance is provided by annual special assessments on all property located within the special assessment area. As of the April 30,2010, the advance balance was reduced down to $23,700 due to special assessment payments.
The Special Service Area No. 12 and 13 were added this fiscal year. The Special Service Area No. 9, 10, 11, 12 and 13 project costs were charged to the Waterworks and Sewerage Fund. Advances were created to show the receivables that are reduced annually as special service area property taxes are received. The Fiduciary Fund type payable for Special Service Area No. 9, 10, 11, 12 and 13 exists solely to collect the special service area tax and repay the Waterworks and Sewerage Fund.
In 2008, the Village issued General Obligation Bonds for various projects, including $500,000 for T- Hangar construction at the Schaumburg Airport. Including the accrued interest and bond premium, $504,297 was transferred from the Aqort Fund to the 2008 Project Fund to cover construction expense related to the hangar project. In the current year, no reduction was made and the balance remains the same as of April 30,2010 at $504,297. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
9. INTERFUND BALANCES (Continued)
c. Interfund Transfers
Interfund transfers during the year ended April 30,2010 consisted of the following:
Transfers In Transfers Out Net Transfers General Fund $3,605,303 $2,836,679 $ 768,624 Olde Schaumburg Centre Special Allocation 2,020,282 (2,020,282) Capital Improvements Fund 964,000 964,000 Nonmaj or governmental fhds 4,297,174 20,000 4,277,174 Waterworks and Sewerage Fund 717,977 (71 7,977) Schaumburg Regional PortFund 10,000 - 10,000 Schaumburg Baseball Stadium Fund 559,787 10,000 549,787 Hotel and Convention Center 1,928,000 (1,928,000) Nonmaj or enterprise funds 1,903,326 (1,903,326) Total all funds $9,436,264 $9,436,264 $ -
Reconciliation for GASB 34 adjustment: Transfers In Transfers Out Net Transfers Governmental fimds $8,866,477 $4,876,961 $3,989,516 Enterprise funds 569,787 4,559,303 (3,989,516) Total transfers $9,436,264 $9,436,264 $ -
The purposes of interfund transfers are as follows:
The General Fund transfers in include a transfer of $717,977 from the Waterworks and Sewage Fund for a 4% return of profit; a transfer of $1,903,326 of excess equity due to the closure of the Performing Arts Center Fund; a $20,000 transfer from the Energy Efficiency & Conservation Block Grant Fund; and a $964,000 transfer from the Hotel and Convention Center Fund for one-half of the projected fund surplus.
The General Fund transfers out include $1,279,754 to the Schaumburg Transit Program Fund to cover the cost of the transit programs above the financing provided by fares and operating grants; $559,787 was transferred to the Schaumburg Baseball Stadium Fund for the 1998 Series debt service payments that occurred in fiscal year-end 2010. The amount represents one-half of the overall debt service payments as the Schaumburg Park District shares in the responsibility of the annual debt service payments; $656,013 was transferred to the General Obligation Bonds Series 2005B Fund for the annual debt service payments and to set up a small reserve; $341,125 was transferred to the General Obligation Bonds Series 2004B Fund for the debt service payments that occurred in fiscal year-end 2010.
The Capital Improvements Fund transfer in of $964,000 is from Hotel and Convention Center Fund for one-half of the projected find surplus.
The Capital Improvements Fund transfer out of $2,020,282 to the General Obligation Bonds Series 2008 Fund is for the debt service payment that occurred in fiscal year-end 201 0.
The transfers in for nonrnajor governmental funds include the Schaumburg Transit Program Fund of $1,279,754 from the General Fund. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
9. INTERFUND BALANCES (Continued)
d. Interfund Transfers (Continued)
The transfers out from nonmajor governmental funds include the $20,000 from the Energy Efficiency & Conservation Block Grant to the General Fund.
Transfers out for the Water & Sewerage Fund are $717,977 for operating expenses for the General Fund.
The Schaumburg Baseball Stadium Fund received $559,787 from the General Fund for the 1998 Series debt service payments that occurred in fiscal year-end 2009. The Schaumburg Baseball Stadium Fund transferred out $10,000 to the Commuter Parking Lot Fund for lot maintenance. The amount represents the payment to the Village from the Schaumburg Flyer's professional baseball team for a METRA parking lot use fee per an agreement between the Village and the team.
Transfers out of the Hotel and Convention Center are $964,000 each to General Fund and Capital Improvements for the projected fund surplus.
The Performing Arts Fund transferred out $1,903,326 to General Fund due to the closing of the fund.
10. CONTINGENT LIABILITIES
a. Contractual Commitments
The Village has contractual commitments for various construction and other projects of $15,192,162.
The Village has committed to purchase water from the Northwest Suburban Municipal Joint Action Water Agency (JAWA). This agreement expires in 2022, with minimum amounts of gallons required for purchase every five years. The Village expects to pay minimum amounts totaling $7,180,138 through fiscal year 2014. This amount has been computed using the minimum amount to be purchased per the agreement between the Village and JAWA multiplied by the average cost per gallon of $2.67 charged by JAWA in the fiscal year-end 20 10.
b. Grants
Amounts received or receivable from grantors are subject to audit and adjustment by the grantors. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. This amount, if any, of the expenditures which may be disallowed by the grantor cannot be determined at this time. The Village believes that there is no liability.
c. Litigation
The Village has several pending legal proceedings that, in the opinion of management, are ordinary routine matters incidental to the normal business conducted by the Village. In the opinion of management, the outcome is neither probable nor estimable, and the ultimate dispositions of such proceedings are not expected to have a material adverse effect on the Village's net assets or activities. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
I I. JOINT VENTURE
Northwest Suburban Municipal Joint Action Water Agency
The Village is a member of the Northwest Suburban Municipal Joint Action Water Agency (the Agency), which consists of seven municipalities. The Agency is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). The Agency is empowered under the Act to plan, construct, improve, extend, acquire, finance, operate, and maintain a joint water supply system to serve its members and other potential water purchasers.
The members form a contiguous geographic service area, which is located 15 to 30 miles northwest of downtown Chicago, Illinois. Under the agreement, additional members may join the Agency upon the approval of each member.
The Agency is governed by a Board of Directors, which consists of one elected official fiom each member municipality. Each director has an equal vote, and the officers of the Agency are appointed by the Board of Directors. The Board of Directors determines the general policy of the Agency, makes all appropriations, approves contracts for sale or purchase of water, adopts resolutions providing for the issuance of bonds or notes by the Agency and adopts bylaws.
Complete financial statements for the Agency can be obtained from the Agency's administration offices at 903 Brantwood Avenue, Elk Grove, Illinois.
12. BASEBALL STADIUM
On March 21, 1998, the Village entered into an intergovernmental agreement with the Schaumburg Park District (the District) for the ownership, development, and operation of the Schaumburg Baseball Stadium. All operating revenues and costs associated with the stadium are shared equally by the Village and the District, unless otherwise agreed to. The Village's shared operating costs (net of shared revenues) are reimbursed by the District and any intergovernmental receivables related to these costs are considered short-term in nature.
The District is also obligated for its share of the 1998A and 1998B General Obligation Variable Rate Demand Bonds. Only the principal portion is considered long-term in nature, with the interest portion included in operating costs. The long-term receivable to be paid by the District each year is as follows:
201 1 2012 2013 2014 TOTAL RECEIVABLE VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent, multiple-employer public employee retirement system, the Police Pension Plan, which is a single-employer pension plan, and the Firefighters' Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly.
None of the pension plans issue separate reports on the pension plans. However, IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained online at www.imrf.org.
A. Illinois Municipal Retirement Fund
1. Plan Description
All employees (other than those covered by the Police or Firefighters' plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. Pension benefits vest after eight years of service. Participating members who retire at or after age 60 with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 213% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter.
2. Funding Policy
Participating members are required to contribute 4.50% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the IMRF as specified by statute. The employer contribution rate for calendar year 2010 is 12.66% of covered payroll. The employer contribution rate for the calendar year 2009, 2008, and 2007 was 10.56%, 10.38%, and 10.98%, of covered payroll, respectively. The Village also contributes to IMRF for disability benefits, post retirement increase, and death benefits to plan members and beneficiaries, all of which are pooled at the IMRF 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.
3. Annual Pension Cost
For fiscal year ended April 30, 2010, with a valuation date of December 31, 2009 the Village's annual pension cost for IMRF of $2,269,135 for the regular plan was equal to the employer required and actual contributions.
Three-Year Trend Information for the Regular Plan
Annual Pension Percentage of Net Pension Valuation Date Cost (APC) APC Contributed Obligation 12/3112009 $2,269,135 100% $0 12/3112008 2,288,162 100% 0 12/31/2007 2,360,558 100% 0 VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
A. Illinois Municipal Retirement Fund (Continued)
3. Annual Pension Cost (Continued)
The required contribution for 2009 was determined as part of the December 31, 2007 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2007 included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to senioritylmerit, and (d) postretirement benefit increases of 3% annually. The actuarial value of the Village's Regular Plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 15% corridor between the actuarial and market value of assets. The Village's Regular Plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at the December 31, 2007 valuation was twenty- three years.
4. Funded Status and Funding Progress
For fiscal year 2010, using the most recent actuarial valuation date of December 31, 2009, the Regular Plan was 71.83% funded. The actuarial accrued liability for benefits was $64,256,689 and the actuarial value of assets was $46,156,791, resulting in an underfbnded actuarial accrued liability (UAAL) of $18,099,898. The covered payroll (annual payroll of active employees covered by the plan) was $21,488,019 and the ratio of the UAAL to the covered payroll was 84%.
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
B. Police Pension Plan
1. Plan Description
Police sworn personnel are covered by the Police Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 513-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At April 30,2010, the Police Pension Plan membership consisted of:
Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them Current employees Vested Nonvested TOTAL I VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
B. Police Pension Plan (Continued)
1. Plan Description (Continued)
The Police Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75.00% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement upon reaching the age of at least 55 years, by 3.00% of the original pension. Beginning with increases granted on or after July 1, 1993, the second and subsequent increases shall be calculated as 3.00% compounded annually thereafter. Benefits and refunds are recorded when due in accordance with the terms of the plan. The pension trust funds utilize the accrual basis of accounting. The costs of administering the plan are financed through interest earnings.
2. Funding Policy
Employees are required by ILCS to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully bdthe past service cost for the Police Pension Plan. For the year ended April 30, 2010, the Village's contribution was 27.34% of covered payroll.
3. Annual Pension Cost
Employer contributions have been determined as follows: Actuarial valuation date April 30,2010 Actuarial cost method Entry-age Normal Asset valuation method Market Amortization method Level Percentage of Payroll Amortization period 23 Years, Closed Significant actuarial assumptions a) Rate of return on present and future assets 7.50% Compounded Annually b) Projected salary increase attributable to inflation 4.50%Compounded Annually c) Additional projected salary increases for seniority/merit Not Available
Employer annual required contributions (ARC), actual contributions and the net pension obligation (NPO) follow in Note 13-D. The NPO is the cumulative difference between the ARC and the contributions actually made. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
B. Police Pension Plan (Continued)
4. Funded Status and Funding Progress
As of April 30,2010 the Police Pension Plan was 62.2% funded. The actuarial accrued liability for benefits was $1 14,296,875 and the actuarial value of assets was $71,045,374, resulting in an underfinded actuarial accrued liability (UAAL) of $43,25 1,501. The covered payroll (annual payroll of active employees covered by the plan) was $9,772,970 and the ratio of the UAAL to the covered payroll was 442.6%.
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
C. Firefighters Pension Plan
1. Plan Description
Fire sworn personnel are covered by the Firefighters Pension Plan. Although this is a single- employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust hd. At April 30, 2010, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 80 Current employees Vested 92 Nonvested 2 8 TOTAL 200
The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the monthly salary attached to the rank held in the fre service at the date of retirement. The monthly pension shall be increased by 1/12 or 2.50% of such monthly salary for each additional month over 20 years of service through 30 years of service, to a maximum of 75.00% of such monthly salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60, and ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a covered employee who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement upon reaching the age of at least 55 by 3.00% of the original pension and 3.00% compounded annually thereafter. Benefits and refunds are recorded when due in accordance with the terms of the plan. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
C. Fire Pension Plan (Continued)
2. Funding Policy
Covered employees are required to contribute 9.455% of their base salary to the Firefighter$ Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully fund the past services costs for the Firefighter3 Pension Plan. For the year ended April 30, 2010, the Village's contribution was 37% of covered payroll.
3. Annual Pension Cost Employer contributions have been determined as follows: Actuarial valuation date April 30,201 0 Actuarial cost method Entry-age Normal Asset valuation method Market Amortization method Level Percentage of Payroll Amortization period 23 Years, Closed Significant actuarial assumptions a) Rate of return on present and future assets 7.50% Compounded Annually b) Projected salary increase attributable to inflation 4.50% Compounded Annually c) Additional projected salary increases for seniority/merit Not Available
4. Funded Status and Funding Progress
As of April 30, 2010 the Fire Pension Plan was 65.4% funded. The actuarial accrued liability for benefits was $116,768,412 and the actuarial value of assets was $76,422,615, resulting in an underfimded actuarial accrued liability (UAAL) of $40,345,797. The covered payroll (annual payroll of active employees covered by the plan) was $10,314,267 and the ratio of the UAAL to the covered payroll was 391.2%.
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FJNANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
D. Statement of Plan Net Assets
For Illinois Fiscal Municipal Police Firefighter3 Year Retirement Pension Pension
Annual pension cost 2008 $ 2,360,558 $ 2,374,669 $ 2,451,070 2009 2,288,162 2,433,940 2,832,375 2010 2,269,135 2,894,240 3,265,53 1
Actual contribution 2008 $ 2,360,558 $ 2,590,962 $ 2,877,568 2009 2,288,162 2,627,456 3,03 1,946 2010 2,269,135 3,403,822 3,817,077
Percentage of APC contributed 2008 100.00% 109.11% 117.81% 2009 100.00 107.95 107.05 2010 100.00 117.61 116.89
NPO (asset)
The NPO at April 30,2010 has been calculated as follows: Police Firefighters' Pension Pension Annual required contribution $2,959,845 $3,319,197 Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made Decrease in net pension obligation Net pension asset beginning of year NET PENSION ASSET END OF YEAR VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
d. Statement of Plan Net Assets (Continued) Police Firefighter9 Pension Pension Total ASSETS Cash and cash equivalents Investments, at fair value U.S. government obligations 1 1,126,428 17,900,871 29,027,299 U.S . agency obligations 25,385,898 23,244,533 48,630,431 Mutual funds 9,879,720 9,879,720 Municipal bonds 1,160,902 1,160,902 Equity securities 31,829,310 21,415,906 53,245.216 Total investments, at fair value 68,341,636 73,601,932 141.943.568 Receivables Due from participants 22,784 8,586 31,370 Accrued interest 328.977 359.932 688.909 Total receivables 351.761 368.51 8 720.279
Total assets 71,058.1 76 76,459,720 147.5 17,896
LIABILITIES Accounts payable Total liabilities
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $71.045.374 $76.433 615 $147.467.989 VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
13. DEFINED BENEFIT PENSION PLANS (Continued)
e. Combining Statement of Changes in Plan Net Assets Police FirefirghterS Pension Pension Total ADDITIONS Contributions Employer $ 3,403,822 $ 3,817,077 $ 7,220,899 Employee 963,993 944,002 1,907,995 Miscellaneous revenue 203 510 713 Creditable service transfer 18.801 18,801 Total contributions 4,386.8 19 4,761,589 9,148,408
Investment income Net appreciation in fair value of investments 8,981,167 8,388,791 17,369,958 Interest and dividends 1,499.21 2 2.083.335 3,582.547 Total investment income 10,480,379 10,472,126 20,952,505 Less investment expense: Miscellaneous bank fees 27,558 25,350 52,908 Investment managers/advisors fees 199.033 235,641 434,674 Net investment income 10,253,788 10.21 1.135 20,464.923 Total additions 14,640,607 14,972.724 29.61 3.33 1
DEDUCTIONS Benefits Retirement Non-duty disability Duty disability Surviving spouse Occupational disease Pension refunds Administrative expenses Travel, meetings and training Fiduciary liability insurance Professional services Dues and subscriptions Legal fees ID01 compliance fee Supplies Minor capital outlay Total deductions NET INCREASE
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 April 30 ~ VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
14. OTHER POSTEMPLOYMENT BENEFITS
a. Plan Description
In addition to providing the pension benefits described, the Village provides postemployment health care and life insurance benefits (OPEB) for retired employees through a single-employer defined benefit plan. The benefits, benefit levels, employee contributions and employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the Village's Risk Management Fund, an internal service fund.
b. Benefits Provided
The Village provides postemployment health care and life insurance benefits to its retirees. To be eligible for benefits, an employee must qualify for retirement under one of the Village's retirement plans. Elected officials are eligible for benefits if they qualify for retirement through the Illinois Municipal Retirement Fund.
All health care benefits are provided through the Village's self-insured health plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous, and substance abuse care; vision care; dental care; and prescriptions. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer, and the Village's plan becomes secondary.
c. Membership
At April 30,2010, membership consisted of:
Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not yet receiving benefits Active vested plan members Active nonvested plan members
TOTAL VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
14. OTHER POSTEMPLOYMENT BENEFITS (Continued)
e. Annual OPEB Costs and Net OPEB Obligation
The Village had an actuarial valuation performed for the plan as of April 30, 2010 to determine the funded status of the plan as of that date as well as the employer)^ annual required contribution (ARC) for the fiscal year ended April 30,2010. The OPEB liability is based on an imputed rate subsidy for retirees and retirees pay 100% of the insurance premium. The Village's annual OPEB cost (expense) of $600,453 was greater than the ARC for the fiscal year. The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 201 0 were as follows:
Fiscal Annual Percentage of Year OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation April 30,2008 $614,777 $406,222 66.1% $285,240 April 30,2009 $520,045 $401,864 77.3 % $403,421 April 30,2010 $600,453 $ 506,694 84.4% $497,180
Cumulative net OPEB obligation $497.180
The net OPEB'obligation (NOPEBO) as of April 30,2010 was calculated as follows:
Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation beginning of year
Net OPEB obligation end of year iLLtaL@
Funded Status and Funding Progress. The funded status of the plan as of April 30,2010 was as follows:
Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/&) Covered payroll (active plan members) UAAL as a percentage of covered payroll
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued)
14. OTHER POSTEMPLOYMENT BENEFITS (Continued)
d. Annual OPEB costs and Net OPEB Obligation (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
In the April 30, 2010 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 5.0% investment rate of return (net of administrative expenses) and an annual health care cost trend rate of 8.0% initially and 6.0% ultimately. A11 rates include a 3.0% inflation assumption. The actuarial value of assets was not determined, as the Village has not advance funded its obligation. The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at April 30, 2010 was thirty years.
15. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FTNANCLAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 5 1, Accounting and Financial Reporting for Intangible Assets, Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, and Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Application of these standards may restate portions of these financial statements. REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF SCHAUMBURG. ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under) REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Grants Investment income Miscellaneous Total revenues
EXPENDITURES Current General government Public safety Highways and streets Health and welfare Culture and recreation Total expenditures 78,690,129 78,3 1 1,909 74,87 1,646 (3,440,263)
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES) Transfers in Waterworks and sewerage 785,224 785,224 7 17,977 (67,247) Hotel and Convention Center 964,000 964,000 964,000 Performing Arts Center 1,911,093 1,911,093 1,903,326 (7,767) Energy Efficiency Conservation Block Grant 20,000 20,000 Transfers (out) Schaumburg Transit Program Fund (1,476,3 18) (1,4 19,703) (1,279,754) (1 39,949) General Obligation Bonds, 2005B Fund (656,379) (656,379) (656,013) (366) General Obligation Bonds, 2004B Fund (341,125) (341,125) (341,125) Schaumburg Baseball Stadium Fund (666,849) (666,849) (559,787) (107,062) Total other financing sources (uses) 5 19,646 596,261 768,624 172,363
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 $ 22,511,818
See auditors' report and accompanying notes to required supplementary information. - 75- VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEVELOPER CONTRIBUTION FUND
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES Investment income Miscellaneous income Street lights Traffic impact Parkway trees
Total revenues
EXPENDITURES Capital outlay Enhancement improvements Roadway improvements Street lighting improvements Miscellaneous Bad debt expense
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30
See auditors' report and accompanying notes to required supplementary information. - 76 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND
April 30,2010
UAAL (2) (4) (OAAL) Actuarial Unfunded As a (1) Accrued (3) (Overfunded) Percentage Actuarial Liability Funded AAL (5) of Covered For Fiscal Value of (AAL) Ratio (UAAL) Covered Payroll Year Ended Assets -EntryAge (1)/(2) (2)-(1) Payroll (4) /(5)
Actuarial Valuation date is from December 3 1 st of the the prior year for each year above.
See auditors' report and accompanying notes to required supplementary information. VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY MFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND
April 30, 2010
UAAL (2) (4) (OAAL) Actuarial Unfunded As a Actuarial (1 Accrued (3) (Overfunded) Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll April 30, Assets - Entry Age (1) /(2) (2) - (1) Payroll (4) /(5)
See auditors' report and accompanying notes to required supplementary information. - 78 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS' PENSION FUND
April 30,2010
UAAL (2) (4) (OAAL) Actuarial Unfunded As a Actuarial (1 Accrued (3) (Overfunded) Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll April 30, Assets - Entry Age (1) /(2) (2) - (1) Payroll (4) /(5)
See auditors' report and accompanying notes to required supplementary information. - 79 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFIT PLAN
April 30,2010
(2) (4) UAAL Actuarial Unfunded (5) As a Actuarial (1) Accrued (3 (Overfunded) Active Percentage Valuation Actuarial Liability Funded AAL Members of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll April 30, Assets - Entry Age (1) / (2) (2) - (1) Payroll (4) /(5)
See auditors'report and accompanying notes to required supplementary information. - 80 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND
A~ril30.2010
Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC) Contributed
2005 $ 1,865,918 $ 1,865,918
2006 1,895,17 1
2007 2,406,398
2008 2,360,558
2009 2,288,162
2010 2,269,135
See auditors' report and accompanying notes to required supplemntary information. - 81 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND
April 30, 2010
Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC) Contributed
2005 $ 2,258,563
2006 2,459,398
2007 2,606,962
2008 2,590,962
2009 2,627,456
2010 3,403,822
See auditors' report and accompanying notes to required supplementary information. - 82 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND
April 30, 2010
Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC) Contributed
2005 106.00%
2006 103.82%
2007 106.52%
2008 115.41%
2009 105.OO%
2010 115.00%
See auditors' report and accompanying notes to required supplementary information. - 83 - VILLAGE OF SCHAUMBURG, ILLINOIS
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFIT PLAN
April 30, 201 0
Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC) Contributed
See auditors' report and accompanying notes to required supplementary information. - 84 - VILLAGE OF SCHAUMBURG, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
April 30,201 0
A. Budgets
The governmental, proprietary and trust funds (excluding the pension funds) have legally adopted annual budgets prepared in accordance with generally accepted accounting principles (GAAP). Budgetary comparisons are reflected in the financial statements for all governmental and enterprise funds. The Village follows these procedures in establishing the budgetary data reflected in the financial statements.
1. The Village Manager, who also serves as the Budget Officer, submits a proposed budget ordinance to the Village Board for review and approval. The proposed ordinance is made available for public inspection at least 10 days prior to final Board action.
2. Public hearings are conducted to obtain taxpayer comments on the proposed fiscal year budget ordinance.
3. The budget ordinance is legally enacted prior to May 1. Budgets lapse at year-end.
4. The Budget Officer may approve the transfer of budgeted funds fiom one account to another provided they are within the same object class, same department, and same fund.
5. The Board of Trustees may:
a. By two-thirds vote, transfer within any hdamounts budgeted for an object or purpose to another object or purpose.
b. Adopt a supplemental budget ordinance in an amount not to exceed any additional revenue available, including unappropriated fund balances or amounts estimated to be received after adoption of the annual budget ordinance. In the fiscal year ended April 30, 2010 there were two supplemental budget ordinances adopted by the board. The first amendment was adopted on April 28, 2009 and the second was adopted on January 12,2010.
6. Expenditures may not legally exceed budgets at the fund level.
B. Excess of Actual Expenditures/Expenses over Budget in Individual Funds
Below are the hds that had an excess of actual expenditures/expenses (exclusive of depreciation, amortization and transfers) over budget for the fiscal year:
2002A Debt Service Fund - $129,741 Olde Schaurnburg Centre Special allocation Fund - $652,299 2010B Project Fund - $985,365 Risk Management Fund - $342,527 Special Service Area #10 Fund - $3,679 Special Service Area #l 1 Fund - $2,736
See auditors' report - 85 - VILLAGE OF SCHAUMBURG, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (Continued)
C. Defined Benefit Pension Plan - Digest of Changes
Assumptions for the Illinois Municipal Retirement Fund:
The actuarial assumptions used to determine the actuarial accrued liability for the 2010 Fiscal year are based on the 2005-2007 Experience Study. The accrued liability for the 2009 fiscal year was based on the 2005-2007 Experience Study.
D. Other Postemployment Benefits
The employer contributions reported on the schedule of employer contributions represents the current amount paid by the Village for the current year cost of the benefits, which were entirely paid out on behalf of retirees. Accordingly, as disclosed on the schedule of funding progress, no assets have been placed in trust to advance fund the employer's obligation.
See auditors' report - 86 - COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
April 30, 2010
Special Debt Capital Revenue Service Projects Total
ASSETS Cash and cash equivalents Receivables Locally imposed taxes Other Due from other governments Total assets
LIABILITIES Accounts payable Accrued salaries Unearned revenue - Rehab loans Unearned revenue - Meadow Knolls Due to other funds Advances from other funds Total liabilities
FUND BALANCES Reserved for public safety Reserved for debt service Reserved for highways and streets Reserved for other Reserved for capital projects Unreserved Undesignated - capital projects Total fund balances (deficit)
TOTAL LIABILITIES AND FUND BALANCES VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended April 30,20 10
Special Debt Capital Revenue Service Projects Total
REVENUES Taxes Intergovernmental Charges for services Contributions Investment income Miscellaneous ~ Total revenues 3,352,075 3,048,05 1 7,900 6,408,026 EXPENDITURES Current General government Public safety Debt service Principal Interest Miscellaneous Capital outlay Total expenditures 4,047,209 5,980,158 64,603 10,09 1,970
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES) Transfers in 1,279,754 3,O 17,420 - 4,297,174 Transfers (out) (20,000) (20,000) Total other financing sources (uses) 1,259,754 3,O 17,420 - 4,277,174
NET CHANGE IN FUND BALANCES 564,620 85,3 13 (56,703) 593,230
FUND BALANCES, MAY I 995,887 1,127,329 (3 1,600) 2,09 1,6 16
FUND BALANCES, APRIL 30 NONMAJOR SPECIAL REVENUE FUNDS
Motor Fuel Tax Fund - to account for revenues received from the State of Illinois for the maintenance, ilnprovement and construction of streets and roads.
Schaumburg Transit Program Fund - to account for the cost of providing local public transportation. Financing is provided by fares and operating grants.
Community Development Block Grant Fund - to account for the use of grant monies earmarked for specific projects.
Energy Efficiency & Conservation Block Grant Fund - to account for the use of grant monies earmarked for implementation of commercial and residential audits, energy efficient retrofits and municipal energy efficient lighting retrofits.
Community Development Block Grant - Recovery Fund - to account for the use of grant monies earmarked for hard development costs associated with infrastructure activities and to promote energy efficiency and conservation through rehabilitatioti or retrofitting of existing buildings.
Justice Assistance Grant Fund - to account for the use of grant monies used to provide a safe and educational environment for youths during the evening hours of the summer. VILLAGE OF SCI-IAUMBURG, ILLlNOlS
COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS
April 30,2010
Energy Community Motor Schauinburg Community Efficiency Development Justice Fuel Transit Development & Conservation Block Grant Assistance Tax Program Block Grant Block Grant - Recovery Grant Total ASSETS
Cash and cash equivalents $ 763,385 $ 253,429 $ 2,151 $ 648,038 $ - $ - $ 1,667,003 Receivables Other - 849,513 - 849,5 13 Due from other governments Allotments 164,7 17 164,717 Other 39,821 20,442 91 13,498 73,852
Total assets $ 928,102 $ 293,250 $ 872,106 $ 648,038 $ 91 $ 13,498 $ 2,755,085
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts payable $ 1,079 $ 141,610 $ 22.593 $ 28,000 $ - $ - $ 193,282 Accrued salaries 4,200 4,200 Unearned revenue -Rehab loans - 849,452 - 849,452 Unearned revenue -Meadow Knolls 6 1 6 1 Due to other funds 147,440 52 9 1 147,583 Total liabilities 1,079 293,250 872,106 28,052 9 1 - 1,194,578
FUND BALANCES Reserved for highways and streets 927,023 - 927,023 Reserved for public safety - 13,498 13,498 Reserved for other 6 19,986 - 619,986 Unreserved Total fund balances 927,023 6 19,986 - 13,498 1,560,507
TOTAL LIABILITIES AND FUND BALANCES $ 928,102 $ 293,250 $ 872,106 $ 648,038 $ 91 $ 13,498 $ 2,755,085 VILLAGE OF SCHAUMBURG. ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended April 30, 20 10
Energy Community Motor Schaumburg Com~nun~ty Effic~ency Development Just~ce Fuel Trans11 Develop~nent & Conservat~on Block Grant Ass~stance Tax Program Block Grant Block Grant - Recovery Grant Total
REVENUES Intergovernmental $1,955,714 $ 215,733 $ 285,417 $ 776,500 $ 1,182 $ 13,498 $3,248,044 Charges for services 67,892 67,892 Investment income 1,208 298 499 2,005 Miscellaneous 400 33,734 34,134
Total revenues 1,956,922 284,323 3 19,15 1 776,999 1,182 13,498 3,352,075
EXPENDITURES Current General government - 1,564,077 180,008 137,013 1,182 - 1,882,280 Public safety - 3,910 3,910 Capital outlay 2,021,876 - 139,143 - 2,161,019
Total expenditures 2,02 1,876 1,564,077 3 19,15 1 137,013 1,182 3,9 10 4,047,209
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (64,954) (1,279,754) 639,986 - 9,588 (695,134)
OTHER FINANCING SOURCES (USES) Transfers in - 1,279,754 - 1,279,754 Transfers (out) (20,000) - (20,000)
Total other financing sources (uses) - 1,279,754 (20,000) - 1,259,754
NET CHANGE IN FUND BALANCE (64,954) 6 19,986 - 9,588 564,620
FUND BALANCES, MAY 1
FUND BALANCES, APRIL 30 $ 927,023 $ - $ - $ 619,986 $ - $ 13,498 $1,560,507 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND
For the Year Ended April 30, 2010
Original Variance and Final Over Budget Actual (Under)
Intergovernmental Motor fuel tax Motor fuel tax - high growth Invest~nentincome Total revenues
EXPENDITURES Capital outlay Roadway improve~nents Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 $ 927,023 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL SCHAUMBURG TRANSIT PROGRAM FUND
For tlie Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under) REVENUES Intergovernmental Operating assistalice - RTA Charges for services Mass transit fares Investment income Miscellaneous Total revenues
EXPENDITURES General government DART Program Personnel services Supplies Services and charges Total DART Program
Taxi Subsidy Program Personnel services 4,O 10 Supplies 125 Services and charges 6,200 6,200 3,715 (2,485) Total Taxi Subsidy Program 10,335 10,228 7,724 (2,504)
PACE Route 554 Personnel services Services and charges Total PACE Route 554
(This schedule is continued on the follo\ving page.) - 92 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL SCHAUMBURG TRANSIT PROGRAM FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES (Continued) General government (Continued) PACE Route 602 Personnel services Services and charges Total PACE Route 602
Woodfield Trolley Service Personnel services Supplies Services and charges Total Woodfield Trolley Service
Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES Transfers in - General Fund Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Intergovernmental Entitlements Miscellaneous
Total revenues 412.403 604.476 3 19.15 1 (285,325)
EXPENDITURES General government Personnel services Supplies Travel, meetings and trainings Advertising Dues and subscriptions Public services - CDBG Miscellaneous Capital outlay Building i~nprovements
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT
For the Year Ended April 30, 2010
Variance Original Final Over Biidget Budget Actual (Under)
REVENUES Intergovernmental Entitlements Investment income
Total revenues
EXPENDITURES General government Supplies Travel, meetings and trainings Advertising Dues and subscriptions Professional services
Total expenditures
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING USE Transfer out - General Fund Total other financing uses (20,000) (20,000)
NET CHANGE IN FUND BALANCE $ - $ 422,870 619,986 $ 197,116
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT - RECOVERY
For the Year Ended April 30, 201 0
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Intergovernmental Entitlements
Total revenues
EXPENDITURES General government Personnel services Supplies Travel, meetings and trainings Advertising Professional services
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL JUSTICE ASSISTANCE GRANT FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Intergovernmental Grants
Total revenues
EXPENDITURES Public safety Grant expense
Total expenditures
NET CHANGE IN FUND BALANCE $ - $ (3,911) 9,588 $ 13,499
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 NONMAJOR DEBT SERVICE FUNDS
General Obligation Bonds, Series 2004A - to accumulate monies for payment of 2004A Series, $1 7,050,000 General Obligation Bonds which are Serial Bonds due in annual installments until maturity in 2024. These bonds were issued to finance improvements within the Village. Financing is being provided by revenues other than property taxes.
I General Obligation Bonds, Series 2004B - to accumulate monies for payment of 2004B Series, $4,505,000 General Obligation Bonds which are Serial Bonds due in annual installments until maturity in 2025. These bonds were issued to acquire land for future Village development. Financing is being provided by revenues other than property taxes.
General Obligation Bonds, Series 2005A - to accumulate monies for payment of 2005A Series, $2 1,180,000 General Obligation Bonds which are Serial Bonds due in annual installments until maturity in 2024. These bonds were issued to finance ilnprovements within the Village. Financing is being provided by revenues other than property taxes.
General Obligation Bonds, Series 2005B - to accumulate monies for payment of 2005B Series, $3,320,000 General Obligation Bonds which are Serial Bonds due in annual installments until maturity in 2009. These bonds were issued to finance a portion of the pension liability created by the Village offering non-sworn employees the option of participating in an early retirement incentive program in calendar year 2004. Financing is being provided by revenues other than property taxes.
General Obligation Bonds, Series 2008 - to accun~ulatemonies for payment of 2008 Series, $8,500,000 General Obligation Bonds which are Serial Bonds due in annual installments until maturity in 2013. These bonds were issued to finance improvements within the Village. Financing is being provided by revenues other than property taxes. VILLAGE OF SCf MBURG, ILLINOIS
COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS
April 30, 20 10
General General General General General Obligation Obligation Obligation Obligation Obligation Bonds, Bonds, Bonds, Bonds, Bonds Series 2004A Series 2004B Series 2005A Series 2005B Series 2008 Total
ASSETS Cash and cash equivalents $ 438,880 $ - $ 483,684 $ 366 $ 5,803 $ 928,733 Receivables Hotel tax 19,109 19,109 Food and beverage tax 127,585 140,692 268,277
Total assets $ 566,465 $ - $ 643,485 $ 366 $ 5,803 $ 1,216,119
LIABILITIES AND FUND BALANCES
LIABILITIES Due to other funds
Total liabilities
FUND BALANCES Reserved for debt service Total fund balances 566,465 640,374 5,803 1,2 12,642
TOTAL LIABILITIES AND FUND BALANCES $ 566,465 $ - $ 643,485 $ 366 $ 5,803 $ 1,216,119 VILLAGE OF SCl MBURG. ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUNDS
For the Year Ended April 30,20 10
General General General General General Obligation Obligation Obligation Obligation Obligation Bonds, Bonds, Bonds, Bonds, Bonds, Series 2004A Series 2004B Series 2005A Series 2005B Series 2008 Total REVENUES Taxes Hotel/motel $ - $ - $ 196,776 $ - $ - $ 196,776 Food and beverage 1,355,457 1,494,698 2,850,155 Investment income 55 1 553 7 9 1,120 Total revenues 1,356,008 1,692,027 7 9 3,048,05 1
EXPENDITURES Professional fees Debt service Bond principal Interest Total expenditures 1,327,596 341,125 1,635,094 661,855 2,014,488 5,980,158
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 28,412 (341,125) 56,933 (66 1,848) (2,O 14,479) (2,932,107)
OTHER FINANCING SOURCES Transfers in 341,125 656,013 2,020,282 3,O 17,420 Total other financing sources 341,125 656,013 2,020,282 3,O 17,420
NET CHANGE IN FUND BALANCES 28,412 56,933 (5,835) 5,803 85,3 13
FUND BALANCES, MAY 1
FUND BALANCES, APRIL 30 $ 566,465 $ - $ 640,374 $ - $ 5,803 $ 1,212,642 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION BONDS, SERIES 2004A
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES Taxes Food and beverage Investinent income
Total revenues
EXPENDITURES Professional fees Debt service Bond principal Interest
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLlNOlS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION BONDS, SERIES 2004B
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES None
Total revenues
EXPENDITURES Debt service Bond principal Interest
Total expenditures 341,125 341,125
(DEFICIENCY) OF REVENUES OVER EXPENDITURES (341,125) (341,125)
OTHER FINANCING SOURCES Transfers in - General Fund 341,125 34 1,125
Total other financing sources 341,125 341,125
NET CHANGE IN FUND BALANCE $ - $
FUND BALANCE, MAY 1 -
FUND BALANCE, APRIL 30 $ VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION BONDS, SERIES 2005A
For the Year Ended April 30, 2010
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Taxes Hotel/motel Food and beverage Investlnent income Total revenues
EXPENDITURES Professional fees Debt service Bond principal Interest Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES n\r FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION BONDS, SERIES 2005B
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES Investment income
Total revenues
EXPENDITURES Professional fees Debt service Bond principal Interest
Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES Transfers in - General Fund
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLlNOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION BONDS, SERIES 2008
For tlie Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES Investinent income
Total revenues
EXPENDITURES Professional fees Debt service Bond principal Interest
Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES Transfers in - Olde Schaumburg Center
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY I
FUND BALANCE, APRIL 30 NONMAJOR CAPITAL PROJECTS FUNDS
Star Line Transit Oriented Development Tax Increment Financing Fund - to account for the financial resources to be used for community develop~nentprojects. Financing is provided by incremental property taxes.
Special Assessment #3 - Construction Fund - to account for the financial resources to be used for the construction of McLin Boulevard. Financing is provided by an annual special assessment on all property located within the special assessment area. VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS
April 30,2010
Special Assessment Star Line #3 - TOD TIF Construction Total
ASSETS Cash and cash equivalents
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts payable Advances from other funds Due to other funds
Total liabilities
FUND BALANCES (DEFICITS) Reserved for capital projects Unreserved Undesignated
Total fund balances (deficit) (64,603) (23,700) (88,303)
TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ - $ - $ - VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS
For the Year Ended April 30, 20 10
Special Assessment Star Line #3 - TOD TIF Construction Total
REVENUES Contributions Total revenues 7,900 7,900
EXPENDITURES General Government Total expenditures
NET CHANGE IN FUND BALANCES (64,603) 7,900 (56,703)
FUND BALANCES (DEFICIT), MAY 1 (3 1,600) (3 1,600)
FUND BALANCES (DEFICIT), APRIL 30 $ (64,603) $ (23,700) $ (88,303) VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STAR LINE TOD TIF FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
REVENUES None Total revenues
EXPENDITURES General Government Supplies Services and charges Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT), MAY 1
FUND BALANCE (DEFICIT), APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL ASSESSMENT #3 - CONSTRUCTION FUND
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under)
REVENUES Contributions
Total revenues
EXPENDITURES None
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT), MAY 1
FUND BALANCE (DEFICIT), APRIL 30 NONMAJOR ENTERPRISE FUNDS
Commuter Parking Lot Fund - to account for the financial resources involved in operating the commuter parking lot. Financing is provided primarily from user charges and supplemented with investment earnings. Expenses are primarily contractual services to maintain the lot as well as some expenses for supplies.
Performing Arts Center Fund - to account for the financial resources to be used for the construction of a performing arts center to be built in future years on the property adjacent to the Schaumburg Hotel and Convention Center. Financing is provided currently by a percentage of intergovernmental revenues, transfers from other funds, and interest income. VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING BALANCE SHEET NONMAJOR ENTERPRISE FUNDS
April 30, 20 10
Commuter Performing Parking Arts Lot Center Total ASSETS Cash and cash equivalents Investments Receivables Other Capital assets Land Land improvements Buildings Machinery and equipment Less accumulated depreciation Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts payable Deposits Total liabilities
NET ASSETS Net invested in capital assets Unreserved Total net assets
TOTAL LIABILITIES AND NET ASSETS VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS NONMAJOR ENTERPRISE FUNDS
For the Year Ended April 30,2010
Commuter Performing Parking Arts Lot Center Total
OPERATING REVENUES Charges for services Total operating revenues
OPERATING EXPENSES EXCLUDING DEPRECIATION AND AMORTIZATION Supplies Services and charges Capital outlay Total operating expenses excluding depreciation and amortization
OPERATING INCOME BEFORE DEPRECIATION AND AMORTlZATlON
DEPRECIATION AND AMORTIZATION
OPERATING (LOSS)
NONOPERATING INCOME Investment income Total nonoperating income
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS Transfers in Transfers (out) Total transfers
CHANGE IN NET ASSETS
NET ASSETS, MAY 1
NET ASSETS, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS
For the Year Ended April 30,20 10
Commuter Performing Parking Arts Center Total
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from miscellaneous revenues Payments to suppliers Other receipts (payments) Net cash from operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Net cash from capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Sale of investments Investment income received Net cash from investing activities 201,712 1,645,029 1,846,74 1
CASH FLOWS FROM NONCAPlTAL FINANCING ACTIVITIES Transfers in (out) 10,000 (1,903,326) (1,893,326) Due tolfrom other funds (752) (752) Net cash from noncapital financing activities 9,248 (1,903,326) (1,894,078)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, MAY 1
CASH AND CASH EQUIVALENTS, APRIL 30 $ 197,383 $ - $ 197,383
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Increase (decrease) in fair value of investments VILLAGE OF SCHAUMBURG, ILLlNOlS
COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS (Continued)
For the Year Ended April 30,2010
Commuter Performing Parking Arts Center Total
RECONCILIATION OF OPERATING (LOSS) TO NET CASH FLOWS FROM (FOR) OPERATING ACTIVITIES Operating (loss) Adjustments to reconcile operating (loss) to net cash from operating activities Depreciation Miscellaneous nonoperating income Changes in assets and liabilities Receivables Accounts payable INTERNAL SERVICE FUNDS
Vehicle Replacement Fund - to account for costs of providing certain operating vehicles used by Village departments. Financing is provided by charges to other funds.
Technology Replacement Fund - to account for costs of providing certain equipment used by Village departments. Financing is provided by charges to other funds.
Building Replacement Fund - to account for costs of major repairs and improvements of certain buildings used by Village departments. Financing is provided by charges to other funds.
Risk Management Fund - to account for the servicing and payment of claims for liability, property and casualty coverage, workers' compensation, and medical benefits. Financing is provided by charges to the various Village funds. VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS
April 30,20 10
Vehicle Technology Building Risk Replacement Replacement Replacement Management Total
CURRENT ASSETS Cash and cash equivalents $ 1,002,070 $ 3 13,071 $ 149,390 $ 1,583,645 $ 3,048,176 Investments 2,306,560 249,988 647,425 6,624,265 9,828,238 Receivables Accrued interest 1,990 1,418 6,774 10,182 Due from other funds 2 5 25 Prepaid expenses 380,392 466,776 847,168
Total current assets 3,691,012 563,084 798,233 8,681,460 13,733,789
PROPERTY AND EQUIPMENT Veliicles 12,875,561 - 12,875,561 Construction in progress 12,229 12,229 Land improvements 737,728 737,728 Building improvements - 2,382,485 - 2,382,485 Machinery and equipment 166,252 497,3 15 663,567 Less accumulated depreciation (6,877,350) (1 00,692) (652,771 ) - (7,630,8 13)
Net property and equipment 5,998,21 1 65,560 2,976,986 - 9,040,757
Total assets 9.689.223 628.644 3.775.21 9 8.68 1.460 22.774.546
CURRENT LIABILITIES Accounts payable 5,849 73,897 92,063 171,809 Due to other funds 3,23 1 3,23 1 Claims payable - 3,007,739 3,007,739
Total current liabilities 5,849 73,897 3,103,033 3,182,779
Total liabilities 5,849 73,897 3,103,033 3,182,779
NET ASSETS Invested ill capital assets, net of related debt 5,998,211 65,560 2,976,986 - 9,040,757 Unrestricted 3,691,012 557,235 724,336 5,578,427 10,55 1 ,O 10
Total net assets $ 9.689.223 $ 622.795 $ 3.701.322 $ 5.578.427 $19,591.767 VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS
For the Year Ended April 30,20 10
Vehicle Technology Building Risk Replacement Replacement Replacement Management Total
OPERATING REVENUES Charges for services $ 1,174,026 $ 95,000 $ - $12,662,648 $13,93 1,674
OPERATING EXPENSES (EXCLUDING DEPRECIATION) Capital outlay 14,500 310,172 125,963 450,635 Services and charges 45,989 12,922,828 12,968,8 17
Total operating expenses excluding depreciation 14,500 310,172 171,952 12,922,828 13,419,452
OPERATING INCOME (LOSS) BEFORE DEPRECIATION I, 159,526 (2 15,172) (1 7 1,952) (260,180) 5 12,222
DEPRECIATION 878,243 59,678 242,90 1 - 1,180,822
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES) Investment income 19,617 1,246 12,74 1 34,738 68,342 Miscellaneous revenue 144,638 427,572 572,2 10 Gain (loss) on disposal of capital assets 173,099 (5,206) 167,893
Total nonoperating revenue (expenses) 337,354 (3,960) 12,74 1 462,3 10 808,445
CHANGE IN NET ASSETS 6 18,637 (278,8 10) (402,112) 202,130 139,845
NET ASSETS, MAY 1 9,070,586 90 1,605 4,103,434 5,376,297 19,45 1,922
NET ASSETS, APRIL 30 $ 9,689,223 $ 622,795 $ 3,701,322 $ 5,578,427 $19,591,767 VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS
For the Year Ended April 30,2010
Vel~icle Technology Building Risk Replacement Replacement Replacement Management Total
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund service transactions $ 1,174,026 $ 95,000 $ - $12,662,648 $13,93 1,674 Receipts from ~niscellaneousrevenues 144,637 427,573 572,2 10 Payments to suppliers (14,500) (3 1 1,323) (266,693) (12,961,534) (13,554,050) Net cash from operating activities 1,304,163 (2 16,323) (266,693) 128,687 949,834
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of property and equipment (1,585,958) (440,544) (2,026,502) Proceeds from the sale of equipment 173,099 3 80 173,479 Net cash from (for) capital and related financing activities (1,412,859) 380 (440,544) (1,853,023)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (1,s 18,254) (250,s 15) (995,500) (6,895,739) (9,960,308) Sale of investments 2,303,120 650,095 1,477,027 6,875,352 1 1,305,594 Investment income received 19,565 1,245 19,156 31,155 71,121 Net cash from (for) investing activities 504,43 1 400,525 500,683 10,768 1,4 16,407
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Due tolfrom other funds 13 8 1 94 Net cash from (for) noncapital financing activities 13 8 1 94
NET INCREASE IN CASH AND CASH EQUlVALENTS 395,735 184,595 (206,554) 139,536 513,312
CASH AND CASH EQUIVALENTS, MAY 1 606,335 128,476 355,944 1,444,109 2,534,864
CASH AND CASH EQUIVALENTS, APRIL 30 $ 1,002,070 $ 3 13,07 1 $ 149,390 $ 1,583,645 $ 3,048,176
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Increase (decrease) in fair value of investments $ (31,137) $ (1,828) $ (428) $ (47,418) $ (80,811) VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS (Continued)
For the Year Ended April 30,2010
Vehicle Technology Building Risk Replacement Replacement Replacement Management Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ 281,283 $ (274,850) $ (414,853) $ (260,180) $ (668,600) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation 878,243 59,678 242,901 1,180,822 Miscellaneous nonoperating income 144,637 427,573 572,2 10 Changes in assets and liabilities Prepaid items 80,74 1 80,74 1 Accounts payable (1,15 1) (94,741) (45,862) (141,754) Claims payable (73,585) (73,585)
NET CASH FROM OPERATING ACTIVITIES $ 1,304,163 $ (216,323) $ (266,693) $ 128,687 $ 949,834 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND
For the Year Ended April 30, 20 10
Original Variance and Final Over Budget Actual (Under)
OPERATING REVENUES Charges for services Vehicle rental charges
OPERATING EXPENSES EXCLUDING DEPRECLATION Capital outlay 1,750,800 1,068,257 (682,543) Less: Amount capitalized - (1,053,757) (1,053,.757) Total operating expenses excluding depreciation
OPERATING INCOME (LOSS) BEFORE DEPRECIATION
DEPRECIATION
OPERATING INCOME (LOSS)
NONOPERATING REVENUE lnvest~nentincome Miscellaneous revenue Gain on disposal of capital assets Total nonoperating revenue
CHANGE IN NET ASSETS
NET ASSETS, MAY 1
NET ASSETS, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL TECHNOLOGY REPLACEMENT FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
OPERATING REVENUES Charges for services Eq~~ip~nerltrental charges
OPERATING EXPENSES (EXCLUDING DEPRECIATION) Capital outlay 342,750 466,082 310,172 (155,910)
Total operating expenses excluding depreciation 342,750 466,082 310,172 (155,910)
OPERATING INCOME (LOSS) BEFORE DEPRECIATION
DEPRECIATION
OPERATING INCOME (LOSS)
NONOPERATING REVENUE (EXPENSES) Investment income 8,100 8,100 1,246 (6,854) Loss on sale of assets (5,206) (5,206)
Total nonoperating revenue (expenses) 8,100 8,100 (3,960) (12,060)
CHANGE IN NET ASSETS
NET ASSETS, MAY 1 90 1,605
NET ASSETS, APRIL 30 $ 622,795 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL BUILDING REPLACEMENT FUND
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
OPERATING REVENUES Charges for services Building rental charges $ - $ - $ - $
OPERATING EXPENSES EXCLUDING DEPRECIATION Capital outlay 775,000 780,000 533,393 (246,607) Less: Ainount capitalized - (407,430) (407,430) Contractual services 75,000 100,000 45,989 (54,011) Total operating expenses excluding depreciation 850,000 880,000 171,952 (708,048)
OPERATING INCOME (LOSS) BEFORE DEPRECIATION
DEPRECIATION 74,000 74,000 242,90 1 168,90 1
OPERATING INCOME (LOSS) (924,000) (954,000) (414,853) 539,147
NONOPERATING REVENUE (EXPENSES) Investment income 18,034 18,034 12,74 1 (5,293) Grants 25,000 (25,000) Total nonoperating revenue (expenses) 18,034 43,034 12,74 1 (30,293)
CHANGE IN NET ASSETS
NET ASSETS, MAY 1
NET ASSETS, APRIL 30 $3,701,322 1 VlLLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL RISK MANAGEMENT FUND I For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
OPERATING REVENUES Charges for services Property and casualty $ 1,136,768 $ 1,136,768 $ 1,136,768 $ Workers colnpensation 1,233,197 1,233,197 1,233,197 Elnployee benefits 10,335,038 1 0,250,46 1 10,292,683 42,222
Total operating revenues 12,705,003 12,620,426 12,662,648 42,222
OPERATING EXPENSES Contractual services Property and casualty 1,036,768 1,036,768 1,075,904 39,136 Workers cornpensation 1,233,195 1,233,195 1,313,021 79,826 E~nployeebenefits 10,394,9 15 10,3 10,338 10,533,903 223,565
Total operating expenses 12,664,878 12,580,301 12,922,828 342,527
OPERATING INCOME (LOSS) 40,125 40,125 (260,180) (300,305)
NONOPERATING REVENUE Investment income 85,287 85,287 34,738 (50,549) Miscellaneous revenue Claim settlement 250,028 250,028 Recovery reimbursememt 174,277 174,277 Other 3,267 3,267
Total nonoperating revenue 85,287 85,287 462,3 10 377,023
CHANGE IN NET ASSETS
NET ASSETS, MAY 1 5,376,297
NET ASSETS, APRIL 30 $ 5,578,427 AGENCY FUNDS
Builders' Escrow Fund -to account for the retention of escrow deposits.
Special Service Area #9, #lo, #11, #12, #13 Bonds and Interest Funds - to account for the financial resources to be used for the construction of certain sanitary sewage and water main syste~ns.Financing is provided by levy of an annual tax on all property located within the special service area. VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING BALANCE SHEET AGENCY FUNDS
April 30, 20 10
Special Special Special Special Special Builders' Service Service Service Service Service Escrow Area #9 Area # 10 Area # 11 Area # 12 Area # 13 Total
ASSETS Cash and cash equivalents Receivables Due from property owners
Total assets
LIAB lLITIES Accounts payable Deposits Advance from other funds
Total liabilities $210.368 $86.54 1 $148.687 $ 127.892 $245.000 $145.000 $963.488 VILLAGE OF SCHAUMBURG, lLLlNOIS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS
For the Year Ended April 30,2010
Balances Balances May 1 Additions Deductions April 30
ALL FUNDS
ASSETS Cash and cash equivalents Receivables Due from property owners
Total assets
LIABILITIES Accounts payable Deposits Advance from other funds
Total liabilities $ 607,477 $ 647,978 $ 291,967 $ 963,488
BUILDERS' ESCROW FUND
ASSETS Cash and cash equivalents $ 170,387 $ 132,878 $ 92,897 $ 210,368
Total assets $ 170.387 $ 132.878 $ 92.897 $ 210.368
LIABILITIES Accounts payable $ 5,000 $ 125,100 $ 90,100 $ 40,000 Deposits 165,387 132,878 127,897 170,368
Total liabilities $ 170,387 $ 257,978 $ 217,997 $ 210,368
(This statement is continued on the following pages) - 122 - VILLAGE OF SCHAUMBURG, ILLINOIS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS
For the Year Ended April 30,201 0
Balances Balances May 1 Additions Deductions April 30
SPECIAL SERVICE AREA #9 FUND
ASSETS Cash and cash equivalents Receivables Due from property owners
Total assets $ 105,898 $ 24,556 $ 43,913 $ 86,541
LIABILITIES Advance from Waterworks and Sewerage Fund $ 105,898 $ - $ 19,357 $ 86,541
Total liabilities
SPECIAL SERVICE AREA #10 FUND
ASSETS Cash and cash equivalents $ - $ 51,527 $ 51,527 $ Receivables Due from property owners 187,780 39,093 148,687
Total assets $ 187,780 $ 51,527 $ 90,620 $ 148,687
LIABILITIES Advance from Waterworks and Sewerage Fund $ 187,780 $ - $ 39,093 $ 148,687
Total liabilities $ 187,780 $ - $ 39,093 $ 148,687
(This statement is continued on the following pages.) - 123- I VILLAGE OF SCHAUMBURG, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS
For the Year Ended April 30,2010
Balances Balances Mav 1 Additions Deductions April 30
SPECIAL SERVICE AREA #11 FUND
ASSETS Cash and cash equivalents Receivables Due from property owners
Total assets
1 LIABILITIES Advance from Waterworks and Sewerage Fund $ 143,412 $ - $ 15,520 $ 127,892
Total liabilities $ 143,412 $ - $ 15,520 $ 127,892
SPECIAL SERVICE AREA #12 FUND
ASSETS Receivables Due from property owners
Total assets $ - $ 245,000 $ - $ 245,000
LIABILITIES Advance from Waterworks and Sewerage Fund $ - $ 245,000 $ - $ 245,000
Total liabilities
(This statement is continued on the following page.) - 124 - VILLAGE OF SCHAUMBURG, lLLINOlS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS
For the Year Ended April 30,201 0
Balances Balances May 1 Additions Deductions April 30
SPECIAL SERVICE AREA #13 FUND
ASSETS Receivables Due from property owners
Total assets $ - $ 145,000 $ - $ 145,000
LIABILITIES Advance from Waterworks and Sewerage Fund $ - $ 145,000 $ - $ 145,000
Total liabilities
(This statement is continued on the following page.) - 125 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND
For the Year Ended April 30, 2010
Variance Original Final Over Budget Budget Actual (Under) TAXES Telecommunications tax $ 1,600,206 $ 1,600,206 $ 1,571,474 $ (28,732) Hotel tax 2,648,366 2,150,000 2,167,357 17,357 Food and beverage taxes 3,809,350 3,809,350 3,608,260 (20 1,090) Foreign fire insurance tax 92,000 92,000 99,796 7,796 Automobile rental tax 147,000 147,000 125,326 (2 1,674) Home rule sales tax 19,875,500 18,025,000 17341,795 (483,205) Total taxes
LICENSES AND PERMITS Licenses Liquor Class A Class B Class C Class D Class E Class F Class G Class I Class J Class K Class L Class M Business Vending machines Weights and measures fees Vehicle licenses Animal license Rental license Other Entertainment Permits Building Single family Townhouses Other Commercial Industrial Additions and conversions Fences Public improvements Sign Special events Utility Permits Total licenses and permits
(This schedule is continued on the following pages.) VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30, 2010
Variance Original Final Over Budget Budget Actual (Under) INTERGOVERNMENTAL Revenues ftom other agencies Sales tax $ 27,570,500 $ 25,650,000 $ 25,027,806 $ (622,194) Income tax 6,836,954 5,840,387 6,031,125 190,738 County gasoline tax rebate 16,500 16,500 14,897 (1,603) Village share of township road and bridge tax 392,700 392,700 465,428 72,728 Personal property replacement tax 28,800 28,800 2 1,207 (7,593) Total intergovernmental
CHARGES FOR SERVICES Cable TV franchise fees Plan and specification fees Zoning fees Plans' examination fees Plan review - fire systems Plat recording fees Framing inspection fees Electrical inspection fees Elevator inspection fees Code violation fees Occupancy permit fees Sign variation fees Nicor franchise fees Sale of ordinance, maps and codes Street signs Family counseling fees Security alarm service and fees Ambulance service fees Police - youth consultant fees Police - traffic and miscellaneous details Police accident reports Fire permit fees Plumbing and fixture fees Health inspection fees Health department - flu shot revenue Health department - miscellaneous revenue Prairie Center ticket sales Building rentals Building labor Building commission PCA miscellaneous fees Fast track review fees Other penalty fees Total charges for services 4,707,400 4,700,058 4,160,894 (539,164)
(This schedule is continued on the following pages.) - 127 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
FINES AND FORFEITS County Village Other fines - Village Administrative tow fine Photo enforecement fines Total fines and forfeits
GRANTS 201,860 787,324 763,118 (24,206)
INVESTMENT INCOME
MISCELLANEOUS PCA book sales Septemberfest Program ads Concession sales Community Grant program SYO fund raising Donations Foundation gifts Nursing donations Police training reimbursement Seizure fund DUI technology Auction - miscellaneous items Insurance claim settlements Accident reimbursement Employee reimbursement Police/fire donations JAWA fuel and maintenance reimbursement Committee on Aging AT&T VRAD landscaping fee Miscellaneous Total miscellaneous
TOTAL REVENUES VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND
For the Year Ended April 30, 201 0
Variance Original Final Over Budget Budget Actual (Under)
GENERAL GOVERNMENT Village President and Board of Trustees Mayor's Office Personnel services Supplies Services and charges Total
Clerk's Office Personnel services Supplies Services and charges Total
Boards and Commissions Plan Comimission Personnel services Services and charges Total
Zoning Board Personnel services Services and charges Total
Blood Program Committee Personnel services Supplies Total
Fire and Police Commission Personnel services Supplies Services and charges Total
Board of Health Personnel services Supplies Total
F.C.C. Advisory Committee Personnel services
(This schedule is continued on the follo\ving pages.) - 129 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
GENERAL GOVERNMENT (Continued) Boards and Commissions (Continued) Environmental Committee Personnel services Supplies Total
Business Development Commission Personnel services Supplies Services and charges Total
Olde Schaumburg Commission Personnel services
Electrical Commission Personnel services
Teen Center Advisory Board Personnel services
Committee on Aging Personnel services Supplies Total
Bikeways Advisory Committee Personnel services Services and charges Total
Peer Jury Personnel services Supplies Total
Cultural Commission Personnel services
Sister Cities Commission Personnel services Supplies Services and charges Total
(This schedule is continued on the following pages.) - 130 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30, 20 10
Variance Original Final Over Budget Budget Actual (Under)
GENERAL GOVERNMENT (Continued) Boards and Commissions (Continued) Septemberfest Committee Personnel services
Manager's Office Management Personnel services Supplies Services and charges Miscellaneous Total
Legal Services Personnel services Supplies Services and charges Total
Public Relations Personnel services Supplies Services and charges Total
Finance Department Financial Management Personnel services Supplies Services and charges Capital outlay Total
Financial Reporting Personnel services Supplies Services and charges Miscellaneous Total
Procurement Personnel services Supplies Services and charges Total
(This schedule is continued on the following pages.) - 131 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued) 1 For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under) GENERAL GOVERNMENT (Continued) Finance Department (Continued) Revenue Management Personnel services Supplies Services and charges Total
Licensing Personnel services Supplies Services and charges Total
Information Technology Department Support Services Personnel services Supplies Services and charges Capital outlay Miscellaneous Total
Application Acquisition and Development Personnel services 964,626 93 1,875 929,522 (2,353) Supplies 6,200 6,200 236 (5,964) Services and charges 3 1,793 3 1,793 29,190 (2,603) Capital outlay Total
Maintenance Personnel services Supplies Services and charges Capital outlay Total
Training Personnel services Supplies Services and charges Total
Customer Service Center Personnel services Supplies Services and charges Total
(This schedule is continued on the following pages.) - 132 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under)
GENERAL GOVERNMENT (Continued) Human Resources Department Administration Personnel services Supplies Services and charges Total
Benefits Personnel services Supplies Services and charges Total
Organizational Development Personnel services Supplies Services and charges Total
Risk Management and Safety Personnel services Supplies Services and charges Total
Employee Labor Relations Personnel services Supplies Services and charges Total
Recruitment and Compensation Personnel services Supplies Services and charges Total
Community Development Department Support Services Personnel services Supplies Services and charges Total
(This schedule is continued on the following pages.) - 133 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under)
GENERAL GOVERNMENT (Continued) Community Development Department (Continued) Permit Services Personnel services Supplies Services and charges Total
Economic Development Personnel services Supplies Services and charges Total
Planning Personnel services Supplies Services and charges Total
Subtotal
Reimbursements from the Water and Sewer Fund (475,688) (475,688) (475,688)
Total general government $ 13,521,447 $ 13,287,878 $ 12,873,523 $ (414,355)
PUBLIC SAFETY Police Department Administration Personnel services Supplies Services and charges Total
Patrol Personnel services Supplies Services and charges Miscellaneous 1 Total
(This schedule is continued on the following pages.) - 134 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Contin~ied)
For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under)
PUBLIC SAFETY (Continued) Police Department (Continued) Traffic Services Personnel services Supplies Services and charges Capital outlay Miscellaneous Total
Investigative Services Personnel services Supplies Services and charges Capital outlay Miscellaneous Total
Crime Prevention Services Personnel services Supplies Services and charges Total
Fire Department Support Services Personnel services Supplies Services and charges Capital outlay Total
Special Operations Personnel services Supplies Services and charges Capital outlay Total
(This schedule is continued on the following pages.) - 135- VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under)
PUBLIC SAFETY (Continued) Fire Department (Continued) Fire Suppression Personnel services Supplies Services and charges Capital outlay Total
Emergency Medical Services Personnel services Supplies Services and charges Capital outlay Total
Emergency Management Agency Personnel services Supplies Services and charges Capital outlay Total
Fire Prevention Personnel services Supplies Services and charges Total
Logistical Support Personnel services Supplies Services and charges Total
Public Education Personnel services Supplies Services and charges Total
Total public safety
(This schedule is conti~luedon the following pages.) - 136 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
HIGHWAYS AND STREETS Engineering and Public Works Administration Personnel services Supplies Services and charges Total
Building Maintenance Personnel services Supplies Services and charges Capital outlay Total
Engineering Personnel services Supplies Services and charges Total
Landscape Division Personnel services Supplies Services and charges Capital outlay Total
Street Maintenance Personnel services Supplies Services and charges Total
After Hours Customer Service Personnel services Supplies Services and charges Total
Fleet Operations Personnel services Supplies Services and charges Capital outlay Miscellaneous Total
(This schedule is continued on the following pages.) - 137 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30, 2010
Variance Original Final Over Budget Budget Actual (Under)
HIGHWAYS AND STREETS (Continued) 'I'ransportation Department Administration Personnel services Supplies Services and charges Total
Bikeways Personnel services Supplies Services and charges Total
Traffic Personnel services Supplies Services and charges Total
Total highways and streets
HEALTH AND WELFARE Human Services Personnel services Supplies Services and charges Capital outlay Miscellaneous Total
Public Health and Nursing Personnel services Supplies Services and charges Total
Inspection Services Personnel services Supplies Services and charges Total
Total health and welfare
(This schedule IS continued on the follo\ving pages.) - 138 - VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND (Continued)
For the Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
CULTURE AND RECREATION Department of Cultural Services Administration Personnel services Supplies Services and charges Capital outlay Total
Special Events Personnel services Supplies Services and charges Miscellaneous Total
Prairie Center Programming Personnel services Supplies Services and charges Total
Total culture and recreation
TOTAL EXPENDITURES VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2002A
For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Taxes Telecommunications tax Hotel motel tax Food and beverage tax Investment income I Total revenues
EXPENDITURES Debt service Principal expense Interest expense Bond issuance costs Miscellaneous I Total expenditures ~ (DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES) Bond proceeds Pay~neritto escrow agent Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OLDE SCHAUMBURG CENTRE SPECIAL ALLOCATION FUND
For tlie Year Ended April 30,2010
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Property taxes Charges for services Investment income Miscella~ieousincome
Total revenues
EXPENDITURES General government Postage Professional services Consulting services Annual audit Debt service Interest expense Capital outlay Other improvements Purchase of land Enhancement improvements
Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING USES Trasfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND
For the Year Ended April 30,20 1 0
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Taxes Telecommunications tax Food and beverage tax Real estate transfer tax intergovernmental Use tax Grants Investment income Miscellaneous revenue Total revenues
EXPENDITURES Capital Projects Capital projects Bikeway improvements Enhancement improvements Roadway improvements Sidewalk irnprovelnents Stormwater improvements Street lighting irnprovelnents Traffic signal improvements
Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY I
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 2008 PROJECT FUND
I For the Year Ended April 30, 2010 i
Variance Original Final Over Budget Budget Actual (Under)
REVENUES Investment income Total revenues
EXPENDITURES General projects Services and charges Capital outlay Building improvements Other improvements Purchase of land Enhancement improvements Roadway improvements Sidewalk improvelnents Traffic signal improvements Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 20 10A PROJECT FUND
For the Year Ended April 30, 20 10
Original Variance and Final Over Budget Actual (Under)
REVENUES Investment income Total revenues
EXPENDITURES Engineering and public works Personnel services Capital outlay Roadway i~nprovements Debt service Bond issuance costs Total expenditures
(DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES Bond proceeds Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE, MAY 1
FUND BALANCE, APRIL 30 VILLAGE OF SCMAUMBURG. ILLINOIS
SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL WATERWORKS AND SEWERAGE FUND
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under)
CHARGES FOR SERVICES Metered services Penalties Total charges for services
TAP-ON FEES Residential Sewer Water Other
Total tap-on fees
MISCELLANEOUS Other Water meters Hydrant rentals Turn-on and turn-off fees Total miscellaneous
Total operating revenues VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATERWORKS AND SEWERAGE FUND
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under) FINANCE Revenue Management Personnel services Supplies Services and charges Miscellaneous Total finance department
ENGINEERING AND PUBLIC WORKS Administration Personnel services Supplies Services and charges Total Storm Sewer Personnel services Supplies Services and charges Capital outlay Total Water Distribution Personnel services Supplies Services and charges Capital outlay Total Sanitary Sewer Personnel services Supplies Services and charges Capital outlay Total After Hours Customer Services Personnel services Supplies Services and charges Total Special Service Area 12 Services and charges Capital outlay Total VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATERWORKS AND SEWERAGE FUND (Continued)
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under)
ENGINEERING AND PUBLIC WORKS (Continued) Special Service Area 13 Services and charges 25,000 17,245 (7,755) Capital outlay 1 1 1,000 (1 11,000) Total 136,000 17,245 (1 18,755) Utility Projects Capital outlay Total
Total Engineering Public Works $ 16,720,812 $ 16,530,200 $ 14,539,686 $ (1,990,514) Administrative charge by the General Fund 475,688 475,688 475,688
Total operating expenses $ 17,840,515 $ 17,638,232 $ 15,63 1,736 $ (2,006$496) VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING REVENUES AND EXPENSES - BUDGET AND ACTUAL 'SCHAUMBURG REGIONAL AIRPORT FUND
For the Year Ended April 30,20 10
Variance Original Final Over Budget Budget Actual (Under) OPERATING REVENUES Charges for services Rental income Rental income - restaurant Fuel sales Miscellaneous Total operating revenues
OPERATING EXPENSES ENGINEERING AND PUBLIC WORKS Building Maintenance Supplies $ 8,920 $ 8,920 $ 669 $ (8,251) Services and charges 56,992 56,992 41,144 (1 5,848) Total Building Maintenance 65,912 65,912 4 1,8 13 (24,099)
Landscape Services Supplies 1,000 1,000 108 (892) Services and charges 44,555 44,555 3 1,798 (12,757) Total Landscape Services 45,555 45,555 3 1,906 (1 3,649)
Street Maintenance Supplies 500 500 490 (10) Services and charges 32,803 32,803 17,977 (14,826) Total Street Maintenance 33,303 33,303 18,467 (14,836)
After Hours Customers Service Supplies
Total Engineering and Public Works
AIRPORT OPERATIONS Personnel servces Supplies Services and charges Capital projects Miscellaneous Total Airport Operations Total operating expenses VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING REVENUES AND EXPENSES - BUDGET AND ACTUAL SCHAUMBURG BASEBALL STADIUM FUND
For the Year Ended April 30,2010
Original Variance and Final Over Budget Actual (Under) OPERATING REVENUES Charges for services Rental income Miscellaneous Naming rights 80,000 80,000 Reimbursement - Schaumburg Park District 95,167 9,787 (85,380) Total ~niscellaneous 175,167 89,787 (85,380)
Total operating revenues $ 333,017 $ 331,953 $ (1,064) I OPERATING EXPENSES ENGINEERING AND PUBLIC WORKS Building Maintenance Services and charges $ 23,444 $ 18,004 $ (5,440) Landscape Services Services and charges
Total Engineering and Public Works $ 30,052 $ 20,671 $ (9,381)
BASEBALL OPERATIONS Baseball Operations Personnel services $ 23,838 $ 20,758 $ (3,080) Supplies 1,06 1 1,066 5 Services and charges 153,954 42,s 13 (1 11,441) Total Baseball Operations $ 178,853 $ 64,337 $ (1 14,516)
Total operating expenses $ 208,905 $ 85,008 $ (123,897) VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL SCHAUMBURG HOTEL AND CONVENTION CENTER FUND
For the Fiscal Year Ended January 1,2010
Variance Original Final Over Budget Budget Actual (Under)
OPERATING REVENUES Charges for services Hotel room Telephone Restaurant Lounge Audio visual Banquet Convention center Inducement fee Exhibit Space Rental Total charges for services
Total operating revenues $41,453,360 $39,356,503 $30,908,274 $ (8,448,229)
NOTE: All Hotel and Convention Center Fund activity reported elsewhere throughout this document is referenced as of April 30,20 10, but figures are all as of the fiscal year ended January 1, 20 10. VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SCHAUMBURG HOTEL AND CONVENTION CENTER FUND
For the Fiscal Year Ended January I, 20 10
Variance Original Final Over Budget Budget Actual (Under)
OPERATING EXPENSES
Service and charges Hotel rooms Telephone department Restaurant Lounge Kitchen Audio visual Banquet Other expenses Administrative costs Central training and relocation Sales and marketing Primary management fees Equipment leasing Owners expense Leisure and recreation Secondary management fees Senior executive compensation Exhibit space rental Property insurance Liability claims Utilities - gas and electric Professional services Repair and maintenance of building Total service and charges
Capital outlay Minor capital outlay
Total operating expenses
NOTE: All Hotel and Convention Center Fund activity reported elsewhere througho~~tthis document is referenced as of April 30,201 0, but figures are all as of the fiscal year ended January I, 201 0 VILLAGE OF SCHAUMBURG, ILLINOIS
SCHEDULE OF OPERATING REVENUES AND EXPENSES- BUDGET AND ACTUAL COMMUTER PARKING LOT FUND
For the Year Ended April 30,201 0
Variance Original Final Over Budget Budget Actual (Under) OPERATING REVENUES Charges for services Parking fees Rental income Total operating revenues
OPERATING EXPENSES FINANCE Revenue Management Supplies Services and charges Total Revenue Management
Total Finance
ENGINEERING AND PUBLIC WORKS Building Maintenance Supplies Services and charges Total Building Maintenance
Landscape Services Supplies 500 500 712 212 Services and charges 43,015 43,015 18,588 (24,427) Total Landscape Services 43,5 15 43,5 15 19,300 (24,2 15)
Street Maintenance Supplies 46,7 15 46,7 15 41,1 12 (5,603) Services and charges 47,595 47,595 82,122 34,527 Total Street Maintenance 94,3 10 94,3 10 123,234 28,924
Parking Lot Services and charges Capital outlay Total Parking Lot
Total Engineering and Public Works $ 358,782 $ 362,782 $ 247,584 $ (1 15,198)
Total operating expenses $ 362,135 $ 368,635 $ 253,812 $ (1 14,823) STATISTICAL SECTION
This part of the Village of Schaumburg's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health.
Contents Page(s)
Financial Trends 153-160 These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time.
Revenue Capacity 161-172 These schedules contain information to help the reader assess the Village's most significant local revenue source. In addition, continuing disclosure requirements are satisfied through additional tax revenue schedules.
Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future.
Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place.
Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village's financial report relates to the services the Village provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implemented GASB Statement 34 in 2004; schedules presenting government-wide information include information beginning in that year. VILLAGE OF SCHAUMBURG, ILLINOIS
NET ASSETS BY COMPONENT
Last Seven Fiscal Years
~overnmentalactivities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets
Business-type activities Invested in capital assets, net of related debt Unrestricted Total business-type activities net assets
Primary government Invested in capital assets, net of related debt $ 180,983,075 $ 186,546,818 $ 117,126,716 $ 175,374,805 $169,059,492 $163,888,792 $150,839,090 Restricted 3 1,423,069 35,698,468 32,62 1,398 22,800,140 19,408,905 13,5 17,090 21,195,829 Unrestricted 39,539,604 41,059,883 117,506,177 75,066,45 1 79,s 15,795 76,545,690 57,404,111 Total primary government net assets $251,945,748 $263,305,169 $267,254,291 $273,24 1,396 $267,984,192 $253,95 1,572 $229,439,030
Source: Current and prior year audited financial statements.
Note: The Village implemented GASB 5-34 in FY04 and will report prospectively until a full ten-year trend has been compiled. VILLAGE OF SCHAUMBURG, ILLINOIS
CHANGES IN NET ASSETS
Last Seven Fiscal Years
Expenses Governmental activities: General government Public safety Highways and streets Health and welfare Culture and recreation Interest on debt Total governmental activities expenses
Business-type activities: Waterworks and sewerage Schaumburg regional airport Schaumburg baseball stadium Schaumburg hotel and convention center Commuter parking lot Total business-type activities expenses
Total primary government expenses
Program Revenues Governmental activities: Charges for services: General government Public safety Highways and streets Health and welfare Prairie Center and community events Operating grants and contributions Capital grants and contributions Total governmental activities program revenues VILLAGE OF SCHAUMBURG, ILLINOIS
CHANGES IN NET ASSETS (Continued)
Last Seven Fiscal Years
Business-type activities: Charges for services: Waterworks and sewerage Schaumburg regional airport Schaumburg baseball stadium Schaumburg convention center Commuter parking lot Operating grants and contributions Capital grants and contributions Total business-type activities program revenues
Total primary government program revenues
Net (Expense)/Revenue Governmental activities Business-type activities Total primary government net expense VILLAGE OF SCHAUMBURG, ILLINOIS
CHANGES IN NET ASSETS(Continued)
Last Seven Fiscal Years
General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property Telecommunications Home rule sales Hotellmotel Real estate transfer tax Food and beverage Other Intergovernmental Personal property replacement tax Roadbridge tax Sales tax Use tax State income tax Motor fuel tax Other Investment income Miscellaneous Contributions Special item Transfers out Total governmental activities VILLAGE OF SCHAUMBURG, ILLINOIS
CHANGES IN NET ASSETS(Continued)
Last Seven Fiscal Years
Business-type activities Taxes Telecommunications Home rule sales HoteVmotel Amusement Food and beverage Other Intergovernmental Sales tax State income tax Other Investment income Miscellaneous Contributions Special item Transfers in Total business-type activities Total primary government
Change in Net Assets Governmental activities Business-type activities Total primary government
Source:Current and prior year audited financial statements.
Note: The Village implemented GASB Statement 34 in FY04 and will report prospectively until a full ten-year trend has been compiled. VILLAGE OF SCHAUMBURG, ILLINOIS
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
General Fund Reserved Unreserved 28,255,887 25,206,425 18,703,685 22,300,273 30,142,816 37,161,063 38,252,777 34,274,232 27,895,490 21,168,772 Total general fund $41,134,221 $34,175,762 $27,229,478 $28,841,652 $35,642,983 $42,055,892 $39,743,074 $35,522,131 $29,211,112 $22,5 11,818
All Other Governmental Funds Reserved $ 1,416,966 $ 900,000 $ 667,150 $26,908,261 (2) $3 1,230,279 $27,726,569 $15,366,999 $12,095,264 $13,894,399 $16,136,991 Unreserved, reported in: Special revenue funds 3,255,086 3,419,760 2,761,712 1,051,564 3,336,997 3,618,876 2,520,973 3,960,178 $ 4,949,985 $ 2,711,285 Capital projects funds 8,800,536 40,755,825 (I) 24,691,438 6,079,615 3,468,118 897,876 1,138,227 7,547,457 8,460,502 14,646,327
Debt service funds 5.809.579, , 5.813.557 , , 4.705.987, , Total all other governmental funds $19,282,167 $50,889,142 $32,826,287 $34,039,440 $38,035,394 $32,243,321 $19,026,199 $23,602,899 $27,304,886 $33,494,603
Source: Current and prior year audited financial statements.
Note: The Village implemented GASB Statement 34 at April 30,2004. Prior to FY04, the Special Revenue Funds have been restated to include the Medical Facility Fund.
Note (1): The Village issued $33,875,000 of bonds to finance the improvements to fire stations, the emergency communications center, utility burials and the renovation of the Public Works Center.
Note (2): The Village issued $17,050,000 of bonds to finance improvements within the Village. in addition, $4,505,000 of bonds were issued to acquire land for future Village development. VILLAGE OF SCHAUMBURG,.ILLINOIS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues
Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Grants Contributions Investment income Miscellaneous Total revenues
Expenditures
General government 14,829,420 18,190,083 23,615,138 28,827,286 13,920,506 18,685,347 15,878,988 16,062,304 16,082,253 14,909,241 Publlc safety 31,569,181 35,821,394 35,706,495 35,402,967 37,969,283 39,502,210 4 1,905,992 45,016,275 44,035,335 43,783,221 H~ghwaysand streets 7,934,254 8,504,483 8,990,589 8,390,414 10,731,199 10,811,588 13,159,776 14,665,505 14,992,906 12,546,473 Health and welfare 2,050,999 2,3 14,848 2,264,593 2,165,662 4,064,4 18 2,967,325 3,121,697 3,135,360 3,373,823 3,709,942 Culture and recreation 1,718,425 1,894,396 1,962,826 1,889,519 1,919,416 2,304,387 2,316,818 2,63 1,094 2,334,855 2,030,366 Contingency 63,759
Debt service Pr~nc~pal Interest Bond issuance costs Arbitrage rebate 1,664 Miscellaneous 600 Capital outlay 10,846,763 15,055,379 21,950,686 1 1,599,858 14,207,919 23,033,95 1 15,698,451 10,553,680 10,084,271 8,931,262 Total expenditures 73,543,796 85,818,375 99,000,762 92,890,282 90,688,532 119,149,765 101,096,402 100,842,268 99,601,291 95,729,511
Excess (deficiency) of revenues over expenditures 10,327,647 (8,40 1,655) (2 1,709,776) (14,690,923) 294,714 (22,22 1,678) (2,522,02 1) (3,8 18,576) (1 1,542,057) (1 3,397,464) Other Financing Sources (Uses)
Transfers in Transfers out Proceeds on sale of capital assets Bonds issued Refunding bonds issued Premium (D~scount)on bonds issued Payment to escrow agent Total other financing sources (uses)
Residual Equity Transfer
Prior Period Adjustments
Net change in fund balances
Debt service as a percentage of noncap~talexpenditures
Source: Current and prior year audited financial statements.
Note The Village implemented GASB S-34 at April 30,2004 Prior to FY04, the Governmental Funds have been restated to include the Medical Facility Fund VILLAGE OF SC: MBURG, ILLlNOIS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Levy Years
Total Total Equalized Estimated Direct Tax Levy Residental Farm Commercial Industrial Assessed Actual Taxable Equalization Tax Year Property Property Property Property Valuation Value Factor Rate
Source: County Clerks offices, Revenue Division
Note (1): Equalized Assessed Valuation for 2009 not available at time of report Note (2): Property is assessed at 33.33% of actual value. VILLAGE OF SCf MBURG, ILLINOIS
PROPERTY TAX RATES - DIRECT AND OVERLAPPNG GOVERNMENTS
Last Ten Years
Tax Levy Year 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009
Tax rates per $ 100 of EAV Village direct rate The Village of Schaumburg Total Village direct rate
Cook County Cook County Forest Preserve District Metropolitan Water Reclamation District Schaumburg Township Consolidated Elections Suburban TB Sanitarium Schaumburg Park Districct Schaumburg Township Public Library Northwest Mosquito Abatement District Northwest Suburban Mass Transit District School District Number 54 High School District Number 2 1 1 Community College District Number 5 12 Total Rates
N/A - Information not yet available
Source - Cook County Clerk VILLAGE OF SCHAUMBURG, ILLINOIS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2010 200 1 Percentage of Percentage of Total V~llage Total V~llage Equal~zed Equal~zed Equal~zed Equal~zed Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuat~on
Woodfield Retax Administration $ 243,351,602 1 5.15% S 163,214,703 1 6.26% (Woodfield Mall)
Thomson Property Tax (Office, area of Golf & Metcham)
Motorola, Inc. 120,087,805 3 2.54% 48,836,954 3 1.87%
Manulife Financial 89,405,598 4 1.89% 30,906,637 6 1.19%
Real Estate Dept ZNA (Zurich Insurance)
KBS Woodfield Preserve 74,090,209 6 1.57% (Office, fornlerly part of Prudential)
Woodfield Holding Pt 68,4 12,521 7 I .45% (Office, fonnerly part of Prudential)
KF Schaumburg LLC (Streets of Woodfield)
Marc Reality 55,298,746 9 1.17% (Office, perinliter of Woodfield Mall)
(Woodfield Plaza, Nantucket Square, etc)
Prudential Insurance
Woodfield Village Green NIA * 41,373,950 5 1.59%
Marshall Fields NIA * 27,310,109 7 1 05% (Macys)
NIA * 26,965,465 8 1.03%
Hyatt Hotels NIA * 23,976,779 9 0.92%
Sears Roebuck
Note I Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is is possible that some parcels and their valuations have been overlooked.
Note 2 Source: Cook County Clerk
*Some of the highest taxpayers in 201 0 are still in existence for 2010, but are no longer in the top ten highest payers VILLAGE OF SCHAUMBURG, ILLINOIS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Levy Years
Collected within the Fiscal Year of the Levy Total Collections to Date
Levy Percentage Percentage Year Tax Levied Amount of Levy Amount of Levy
2000 $ - $ 0% $ 0%
(1) The 2009 Levy is the first property tax levied by the Village of Schaumburg. VILLAGE OF SCHAUMBURG, ILLINOIS
SALES TAX BY CATEGORY
Last Ten State Fiscal Years
General merchandise $ 4,155,896 $ 4,546,272 $ 4,312,700 $ 4,383,469 $ 4,239,898 $ 3,746,339 $ 3.996,163 $ 3,742,905 $ 3,419,942 $ 3,085.920
Food 1,506,752 1,469,029 1,452,752 1,402,340 1,475,285 1,388,397 1,428,233 1,457,478 1,377,237 1,328,775
Drinking and eating places 2,474,163 2,5 14,255 2,595,409 2,826,690 3,010,978 3,120,234 3,457,879 3,547.727 3,363,3 17 3,077,978
Apparel 3,160,028 2.91 7;023 2,815,444 2,882,589 3,088,509 3,293,53 1 3,523,03 1 3,501,815 3,224,484 2,961,394
Furniture, H.H. and radio 2,528,408 2,405.412 2,910,705 3,637,720 3,966,708 3,729,404 3,351,235 3,245,845 2,833,067 2,500,861
Lumber, building and hardware 644,189 826,379 779,934 8 14,703 796,853 735,146 817,151 803,809 662.675 542.551
Automotive and filling stations 8,165,123 8,875,546 8,425,155 8,445,615 8,346,847 8.226,576 8,998,594 8,524,427 7,194,950 6,805,583
Drugs and other retail 4,981,673 5,037,427 4,520,636 3,783,558 3,711,240 3,691,025 3,749,894 3,580,480 3,178,587 2,997,175
Agriculture and all others 2,282,585 2,236,836 1,041,889 887,3 15 775,197 1,018,575 1,103,279 1,051,642 1.273,281 1,096,268
Manufacturers (I) (353,832) (823,454) (858,595) (547,512) 477,712 544,838 736,327 671,519 754,766 725,366
Total (2) $ 29,544,986 $ 30,004,726 $ 27,996,029 $ 28,5 16,486 $ 29,889,229 $ 29,494,065 $ 3 1,I 61,785 $30,127,649 $27.282,307 $25,121,871
Village direct sales tax rate 1.OO% 1.OO% 1.OO% 1 .OO% 1.OO% 1.OO% 1.OO% 1.OO% 1.OO% 1 .OO%
Source: Illinois Department of Revenue - Local Tax Allocation Division
Note (1): The credits in the Manufacturers category represent reductions in the sales tax allotment by the state for a vendor that was misallocated to the Village of Schaumburg. The state reduced the Village's monthly allotment over a 48-month period, beginning in fiscal year 2001 and ending in fiscal year 2004.
Note (2): Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected between July 1 and June 30 as reported by the State. VILLAGE OF SCHAUMBURG, ILLINOIS
DIRECT AND OVERLAPPING SALES TAX RATES
Last Ten Fiscal Years
(3) (2) (1) Cook Regional Village Cook Village County Transportation Total Fiscal Direct State County Home Rule Home Rule Authority(RTA) Direct Year Rate Rate Rate Sales Tax Sales Tax Tax Rate Rate
Source: Village and County Records
Note: The above tax rates are for General Merchandise.
Note (1): The Home Rule Sales Tax rate increased from 0.50% to 1.00% effective January 1, 2004.
Note (2): RTA Tax rate increased from 0.75% to 1.00% effective April I, 2008.
Note (3): Cook County Home Rule Sales Tax increased from 0.75% to 1.75% effective July 1,2008 and decreased to 1.25% effective July 1, 201 0. VILLAGE OF SCHAUMBURG, ILLINOIS
SALES TAX RECEIPTS CASH BASIS
Last Ten Fiscal Years
% Change % Change % Change Fiscal Year Village Share/ from Home-rule from Total from Ended State Sales Preceding Sales Tax Preceding Sales Tax Preceding April 30, Tax Receipts Year Receipts Year Receipts Year
200 1 $ 29,987,793 (1) 0.5 $ 10,331,361 (1) (1.4) $ 40,319,154 (1) 0.0 % 2002 29,756,859 (0.8) 10,O 10,922 (3.1) 39,767,78 1 (1.4) 2003 28,34 1,629 (4.8) 9,594,090 (4.2) 37,935,719 (4.6) 2004 28,047,300 (1.0) 10,293,325 (2) 7.3 38,340,625 (2) 1.1 2005 30,017,456 (1) 7.0 20,834,828 (1,2) 102.4 50,852,284 (1,2) 32.6 2006 29,6 12,897 (1.3) 21,731,194 4.3 5 1,344,091 1 .O 2007 30,943,276 4.5 2 1,348,661 (1.8) 52,29 1,937 1.8 2008 30,228,598 (2.3) 2 1,046,503 (1 :4) 5 1,275,102 (1.9) 2 009 28,077,130 (7.1) 19,837,326 (5.7) 47,914,456 (6.6) 2010 24,954,677 (11.1) 17,559,293 (1 1.5) 42,513,970 (1 1.3)
Source: Village Records
Note (1): The lllinois Department of Revenue began deducting $102,160 per month from the Village's state sales tax receipts and $5 1,080 per month from the Village's home-rule sales tax receipts on May I, 2000 as repayment of taxes remitted to the Village in error in fiscal years ending April 30, 1999 and 2000. The repayments ended on April 30,2004.
Note (2): The Village's home-rule sales tax rate increased from one-half of one percent to one percent effective January I, 2004 (April 2004 tax receipts). VILLAGE OF SCHAUMBURG, ILLINOIS
STATE SALES TAX RECEIPTS BY MONTH CASH BASIS
Last Three Fiscal Years
Percentage Change Fiscal Year Fiscal Year Fiscal Year From Preceding Year Month Ended 4130108 Ended 4/30/09 Ended 413011 0 FY 2008 FY 2009 FY 20 10
May June July August September October November December January February March April
Total
Source: Village Records VILLAGE OF SCHAUMBURG, ILLINOIS
HOME RULE SALES TAX RECEIPTS BY MONTH CASH BASIS
Last Three Fiscal Years
Percentage Change Fiscal Year Fiscal Year Fiscal Year From Preceding Year Ended 4130108 Ended 4130109 Ended 413011 0 FY 2008 FY 2009 FY 2010
May (8.2%) 3.5% (1 1.9%) June 22.9 (5.0) (1 4.6) J 11ly (1 4.3) 3.4 (20.5) August 1.4 (2.3) (1 5.9) September 0.2 (0.6) (17.7) October 2.4 (6.3) (1 1.7) November 3 .O (6.0) (1 3.8) December (0.9) (7.0) (12.8) January (5.1) (6.5) (6.0) February 4.6 (13.0) (1 0.0) March (6.4) (1 3.3) (0.5) April (1 0.9) (9.7) (2.8)
Total (1.4%) (5.7%) (1 1.5%)
Source: Village Records VILLAGE OF SCHAUMBURG, ILLINOIS
RETAIL SALES VOLUME - TOP TEN ILLINOIS COMMUNITIES STATE COLLECTIONS PERIOD MAY 1,2009 - APRIL 30,20 10
(1 Estimated Sales 2000 Municipality Rank Sales Per Capita Population
Chicago Schaumburg Naperville Springfield Kankakee Rockford Peoria Aurora Joliet Orland Park
Kan kakee
Source: Illinois Department of Revenue - Local Tax Allocation Division and the U.S. Census Bureau.
Note (1): Distributions to municipalities of the 1% municipal tax were used to calculate the estimated retail sales. Actual sales tax amounts were received by the municipalities July 1,2009 through June 30,201 0. VILLAGE OF SCHAUMBURG, ILLINOIS
HOTEL TAX REVENUES HOTEL TAX HISTORY
Last Twenty Quarters
Quarter Fiscal Year Tax Percent Ending Ended April 30 Revenue Change
June 30, 2005 September 30,2005 December 3 1,2005 March 3 1, 2006 June 30, 2006 September 30,2006 December 3 1, 2006 March 3 1,2007 June 30,2007 September 30,2007 December 3 1,2007 March 3 1, 2008 June 30, 2008 September 30,2008 December 3 1,2008 March 3 1, 2009 June 30,2009 September 30,2009 December 3 1,2009 March 3 I, 20 I0
Source: Village Records
Note: Rate increased from 6% to 8% effective January I, 2004.
Note: The Percent Change is based on the change from the same quarter of the previous year. VILLAGE OF SCHAUMBURG, ILLINOIS
OTHER VILLAGE REVENUES CASH BASIS
Last Five Fiscal Years and Projection
Fiscal Year Ended % Change from Prior April 30 Amount Fiscal Year --
Real Estate Transfer Tax
2006 2007 2008 2009 2010 20 1 1 (Projected)
Food and Bevera~eTax
2006 2007 2008 2009 2010 20 1 1 (Projected)
Telecomlnunications Tax
2006 200'7 2008 2009 2010 20 1 1 (Projected)
Source: Village Records
Note: Telecommi~nicatio~~suse tax rate increased from 4% to 6% effective January I, 2004. VILLAGE OF SCHAUMBURG, ILLINOIS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities Business-Type Activities (1) General General Total Percentage (2) Fiscal Obligation Capital Judgments Obligation Capital Primary of Total Per Year BondslNotes Leases Payable Bonds/Notes Leases Government Retail Sales Capita
aource: Village Records
Note (I): Retail Sales tax amounts provided by the Illinois Department of Revenue based on sales taxes received by the Village between July 1 and June 30.
Note (2): See the Schedule of Demographic and Economic Statistics on page 167 for population data.
Note (3): The Village issued $1 5,000,000 of bonds in FY99 for the acquisition of land for the development and constructio~l of the Schaumburg Baseball Stadium.
Note (4): The Village issued $1 6,600,000 of bonds in FYOO for the acquisition of land for future use and for certain street improvements
Note (5): The Village issued $1 7,050,000 of bonds in FY04 for the construction of a new fire station, remodeling of three existing fire stations and the expansion of the Public Works building.
Note (6): The Village issued $239,320,000 of bonds in FY05, of which $228,690,000 was used for the construction of the Hotel and Convention Center, $6,125,000 was used to replace all residential water meters and $4,505,000 to fund property acquisition.
Note (7): The Village issued $33,875,000 of bonds in FY02 for various capital improvements.
Note (8): The Village issued $2 1,180,000 of bonds in FY06 to fund road and bridge improven~entsand to refinance the Series 2000 bonds balloon payment.
Note (9): The Village issued $3,320,000 of taxable bonds in FY06 to fund the employer cost of an employee early retirement incentive plan
Note (10): The Village ~ssued$9,000,000 of bonds in FY09 for various public works improvements, community development projects, airport improvements and to pay the costs of issuance of the Bonds.
Note (1 1): The Village issued $13,735,000 of bonds in FY 10 to provide for the refinancing of the Series 2002A bonds in order to realize debt savings.
..ole (12): The Village issued $8,650,000 of bonds in FY I0 to provide for the costs of projects VILLAGE OF SCHAUMBURG, ILLINOIS
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Govenlmental Business-Type Less: Amounts General Available General Total Percentage of Fiscal Obligation In Debt Total Obligation Primary Taxable Per Year Uonds\Notes Service Fund Governmental BondsfNotes Government Retail Sales Capila
Note: Details of the Village's outstanding debt can be found in the notes to the financial I statements.
Note: Taxable Retail Sales provided by the Illinois Department of Revenue based on sales taxes collected between July I and June 30. VILLAGE OF SCHAUMBURG, ILLINOIS
DIRECT AND OVERLAPPNG GOVERNMENTAL ACTIVITIES DEBT
As of April 30,2010
Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt
OTHER: Cook County Cook County Forest Preserve Metropolitan Water Reclamation District DuPage County DuPage County Forest Preserve DuPage Water Commision
LIBRARY DISTRICTS: Palatine Public Library Schaumburg Township Public Library Poplar Creek Public Library District
PARK DISTRICTS: Hoffman Estates Park District Palatine Park District Roselle Park District Schau~nburgPark District
SCHOOL DISTRICTS: Roselle SD #I2 Palatine CCSD #I 5 Elgin USD #46 Schaumburg CCSD #54 Lake Park (Roselle) CHSD #I08 Palatine HSD #21 1 College of DuPage #SO2 Elgin Community College #SO9 Harper Community College #5 12
Total Indirect Debt
VILLAGE OF SCHAUMBURG
Total Direct and Overlapping Debt
*Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Schaumburg.
*2008 Equalized Assessed Valuations were used in the calculations of this statement
Sources: Offices of the Cook and DuPage County Clerks and the Treasurer of Metropolitan Water Reclamation District of Greater Chicago VILLAGE OF SCHAUMBURG, ILLINOIS
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Per-Capita Education (1) (2) Personal Personal Median Level in Years School Unemployment Year Population Income Income Age of Schooling Enrollment Rate
200 1 75,386 $ 1,931,540,092 $ 25,622 35.3 14 77,394 2.3 % 2002 75,386 2,305,83 1,582 30,587 35.3 14 8 1,657 5.7 2003 75,386 2,305,83 1,582 30,587 35.3 14 82,68 1 4.9 2004 75,386 2,305,83 1,582 30,587 35.3 14 82,68 1 4.8 2005 75,386 2,305,83 1,582 30,587 35.3 14 82,056 4.4 2006 75,386 2,305,83 1,582 30,587 35.3 14 82,056 3.9 2007 75,386 2,305,83 1,582 30,587 35.3 14 81,185 3.5 2008 75,936 2,305,83 1,582 30,587 35.3 14 80,257 4.1 2009 75,936 2,322,654,432 30,587 35.3 14 80,363 8.3 20 10 75,936 2,322,654,432 30,587 35.3 14 80,052 8.7
Source: Village records - Community Development Department
Note (1): Children from Schaumburg attend District 54, District 21 1, District U-46, and District 15.
Note (2): Unelnployment Rates are based on the Village's fiscal year. VILLAGE OF SCHAUMBURG, ILLINOIS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2010 200 1 Percentage Percentage of Total Village of Total Village Emplover Employees Rank Employment Employees Rank Employment
Motorola, Inc. Woodfield Shopping Center Zurich American Insurance Group School District #54 IBM Genworth Financial Capital Comcast Verizon Wireless Nation Pizza Products Village of Schaumburg Experian Cellular One Illinois Department of Transportation Total
Source: Village records - Community Development Department VILLAGE OF SCHALJMBURG,ILLINOIS
FULL-TIME EMPLOYEES
Last Ten Fiscal Years
General Government Managers Office Finance Information Technology Human Resources Planning Community Development Public Safety Police Fire Highways and Streets Engineering Engineering and Public Works Transportation Health and Welfare Building and Code Enforcement Health Culture and Recreation Cultural Services
Total
Note: The Village underwent some organizational changes in FY06, including the creation of the Community Development Department. This department includes what was formerly known as the Planning Department and Building and Code Enforcement Department. Note: In addition, the Engineering Department was rolled into the Public Works Department and renamed as the Engineering and Public Works Department. Note: The Village experienced its period of largest employment in FY04. As can be seen in FY06, there was a decrease of 47 positions, or 7.5%. Management is of the opinion that the service levels provided to Schaumburg residents and businesses have not been reduced despite the reduction in staffing. Further, it is important to note that the Village was able to accomplish the reduction through retirements and attrition, and not through layoffs. Note: The Village Board authorized during FY07 for the Village to join Northwest Central Dispatch Center, which resulted in a decrease of 23 positions in the Police Department for FY08. VILI-AGE OF SCI. ,MBURG, ILLINOIS
OPERATING INDICATORS
Last Ten Fiscal Years
General Government Commuter lot parking permits N/A 6,844 6,913 6,998 7,293 7,6 15 7,488 8,182 8,76 1 8,494 Construction activity (value) Residential $ 995,000 $ 6,582,450 $ 20,352,482 $ 5,105,000 $ 21,414,238 $ 20,528,735 $ 20,153,527 $ 6,915,293 $ 1,918,990 $ 3,441,165 Commercial/lndustriaI 198,737,795 83,15 1,209 68,195,278 55,061,071 249,912,670 153,708,244 95,804,411 126,077,707 61,148,067 69,243,103 Miscellaneous 21,095,915 15,575,9 15 25,490,567 29,636,768 27,165,l 1 1 25,126,409 16,981,086 29.33 1,878 15,172,105 24,563,537 Total $ 220,828,710 $ 105,309,574 $ 114,038,327 $ 89,802,839 $ 298,492,019 $ 199,363,388 $ 132,939,024 $ 162,324,878 $ 78,239,162 $ 97,247,805 Public Safety Police Incidents 56,s 16 59,335 60,242 58,327 50,952 48,352 46,705 47,055 35,658 33,122 Parking violations N/A N/A 25,131 22,686 25,257 2 1,796 2 1,340 2 1,096 2 1,828 25,097 Village crashes 6,824 6,220 6,102 5,884 5,339 5,142 5,043 5,233 4,955 4,21 1 False alarms 5,307 5,05 1 4,302 3,549 3,264 3,011 3,292 2,968 2,953 3,171 9-1-1 call center volume N/A N/A NIA 148,598 140,623 134,02 1 1.31.278 NIA N/A N/A Fire Rescue ~ncidents 3,732 2,002 2,840 2,838 2,862 3,130 2,993 2,986 2,795 2,332 Average response time (minutes) N/A N/ A N/A 6.25 6.55 6.42 5.99 5.23 5.08 5.15 EMS activity 4,68 1 5,032 5,019 4,884 4,836 4,699 4,865 5,873 5,7 12 5,380 Highways and Streets Street resurfacing (miles) 4.10 4.52 5.76 5.5 1 4.85 2.66 2.67 5.34 2.21 6.58 Potholes repaired N/A NIA N/ A 1.240 2,211 4,738 3,996 9,773 1 1,575 15,556 Water Water main breaks 42 66 8 1 74 62 105 49 39 46 43 Number of water bills issued 12 1,353 124,552 124,837 125,240 125,838 126,509 126,483 308,232 3 10,396 3 10,983 Services: Residential Commer~caland manufacturing N/A N/A N/A 2,598 2,622 2,638 2,685 2,639 2,643 2,648 Total N/A N/A N/A 26.01 7 26,017 26,168 26,236 25,898 25,881 25,861 Gallons billed Residential (in thousands) Commercial (in thousands) N/A 1,968,235 1,791,010 1,676,705 1,658,3 16 1,709,756 1,685,540 1,677,149 1,6 10,462 1,495,124 Total (~nthousands) N/A 3,507,367 3,365,302 3,099,205 3,064,457 3,292,244 3,101,743 3,120,939 2,907,3 17 2,762,528
Source: Various Village Departments
Note: Some historical information is no longer available, but the Village will report prospectively until a full ten-year trend has been compiled Fiscal 2008 - 91 1 calls go to Northwest Central Dispatch VILLAGE OF SCHAUMBURG, ILLINOIS
CAPITAL ASSET STATISTICS BY FUNCTIONIPROGRAM
Last Ten Fiscal Years
Public safety Police Stations Vehicles Fire Stat~ons 4 4 4 4 4 4 4 5 5 5 M~ghwaysand streets Miles of streets 217 217 2 17 217 217 2 17 217 217 224 224 Culture and recreation Performing arts theatre I I I 1 1 I I I 1 I Water and sewer Water mains (miles) 260 260 260 260 260 265 275 275 275 275 Fire hydrants 4,400 4,400 4,400 4,400 4,400 4,400 4,600 4,600 4,600 4,600 San~tarysewers (miles) 240 240 240 240 240 240 250 250 250 250 A~rports 1 1 1 I 1 1 1 1 1 1 Baseball Stad~um 1 1 1 I 1 I 1 1 1 I Hotel and convention center Hotels 0 0 0 0 0 0 1 I I 1 Convent~oncenters 0 0 0 0 0 0 I I 1 I Co~n~nuterparking lots I I I 1 I 1 I 1 1 1