VILLAGE OF HINSDALE, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended April 30, 2017 Prepared by Finance Department Darrell Langlois Assistant Village Manager/Finance Director VILLAGE OF HINSDALE, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials ......................................................................................................... i Organizational Chart ..................................................................................................... ii Certificate of Achievement for Excellence in Financial Reporting................................................................................................. iii Letter of Transmittal ..................................................................................................... iv-vii FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT .................................................................... 1-3 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis .................................................................. MD&A 1-12 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ............................................................................... 4 Statement of Activities ................................................................................... 5-6 Fund Financial Statements Governmental Funds Balance Sheet ............................................................................................. 7 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position ................ 8 Statement of Revenues, Expenditures and Changes in Fund Balances ..... 9 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities .................................................. 10 VILLAGE OF HINSDALE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Fund Statement of Net Position .......................................................................... 11-12 Statement of Revenues, Expenses and Changes in Net Position ............... 13 Statement of Cash Flows ........................................................................... 14-15 Fiduciary Funds Statement of Fiduciary Net Position .......................................................... 16 Statement of Changes in Fiduciary Net Position ....................................... 17 Index to Notes to Financial Statements ............................................................... 18-19 Notes to Financial Statements ............................................................................. 20-68 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund .................................................................... 69 Schedule of Funding Progress and Employer Contributions Other Postemployment Benefit Plan .............................................................. 70 Schedule of Employer Contributions Illinois Municipal Retirement Fund ............................................................... 71 Police Pension Fund ....................................................................................... 72 Firefighters’ Pension Fund ............................................................................. 73 Schedule Employer’s Proportionate Share of the Net Pension Liability Illinois Municipal Retirement Fund ............................................................... 74 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Police Pension Fund ....................................................................................... 75 Firefighters’ Pension Fund ............................................................................. 76 VILLAGE OF HINSDALE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Required Supplementary Information (Continued) Schedule of Investment Returns Police Pension Fund ....................................................................................... 77 Firefighters’ Pension Fund ............................................................................. 78 Notes to Required Supplementary Information .................................................. 79 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Expenditures - Budget and Actual - General Fund ......................... 80-91 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual MIP Infrastructure Fund ................................................................................. 92 Debt Service Fund .......................................................................................... 93 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................... 95 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund ...................................................................................... 96 Foreign Fire Insurance Tax Fund ................................................................... 97 Annual Infrastructure Fund ............................................................................ 98 MAJOR ENTERPRISE FUND Waterworks and Sewerage Fund Schedule of Net Position - by Subfund .......................................................... 99-100 Schedule of Revenues, Expenses and Changes in Net Position - by Subfund ......................................................... 101 Schedule of Operating Expenses - Budget and Actual Operations and Maintenance Subfund .......................................................... 102-103 VILLAGE OF HINSDALE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Fiduciary Net Position ................................................ 104 Combining Statement of Changes in Fiduciary Net Position ............................. 105 AGENCY FUNDS Combining Statement of Changes in Assets and Liabilities - Agency Funds ............................................................................... 106-107 SUPPLEMENTAL DATA Long-Term Debt Requirements 2008 Fire Ladder Truck Installment Loan .............................................................. 108 2008 Library HVAC Installment Loan ................................................................... 109 General Obligation Bonds (Water and Sewerage Systems Alternate Revenue Source), Series 2008C ............................................................ 110 General Obligation Limited Tax Bonds, Series 2009 ............................................. 111 Taxable General Obligation Bonds (Alternate Revenue Source), Series 2011 ............................................................................................................ 112 General Obligation Bonds (Alternate Revenue Source), Series 2012A .................. 113 General Obligation Refunding Bonds (Library Fund Tax Alternate Revenue Source), Series 2013A ............................................................ 114 General Obligation Bonds (Waterworks and Sewerage Systems Alternate Revenue Source), Series 2014A ............................................................ 115 General Obligation Bonds (Alternate Revenue Source), Series 2014B .................. 116 IEPA Loan L17-4511 .............................................................................................. 117 IEPA Loan L17-450900 .......................................................................................... 118 STATISTICAL SECTION Financial Trends Net Position by Component ......................................................................................... 119-120 Change in Net Position ................................................................................................. 121-124 Fund Balances of Governmental Funds ....................................................................... 125-126 Changes in Fund Balances of Governmental Funds .................................................... 127-128 VILLAGE OF HINSDALE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Revenue Capacity Assessed Value and Actual Value of Taxable Property .............................................. 129 Property Tax Rates - Direct and Overlapping Governments ....................................... 130 Principal Property Taxpayers ....................................................................................... 131 Property Tax Levies and Collections ........................................................................... 132 Sales Tax by Category .................................................................................................. 133 Direct and Overlapping Sales Tax Rates ....................................................................