HomeMy Public PortalAboutFY 2009 Certified Comprehensive Annual Financial Report-ix-
June 10, 2010
Honorable President
Members of the Board of Trustees
Citizens of the Village of Glenview
State law requires that every general-purpose local government publish, within six months of the close
of each fiscal year, a complete set of audited financial statements. The Comprehensive Annual Financial
Report of the Village of Glenview, Illinois, for the fiscal year ended December 31, 2009 is published to
fulfill that requirement.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal controls that are established
for this purpose. Because the cost of internal controls should not exceed the anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial statements are free
of any material misstatements.
Miller, Cooper & Co., Ltd, Certified Public Accountants, has issued an unqualified (“clean”) opinion on
the Village of Glenview’s (the “Village”) financial statements for the year ended December 31, 2009.
The independent auditor’s report is located at the front of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile of the Village of Glenview
The Village, incorporated in 1899, is located in northern Cook County and is 20 miles north of the City
of Chicago. The Village serves a population of approximately 44,600. The Village is considered to be a
primary government and provides a full range of general governmental services. The Village is
empowered to levy a property tax on real property located within its boundaries. It also is empowered by
state statute to extend its corporate limits by annexation, which it has done from time to time.
The Village’s legislative body consists of the Village President and Board of six Trustees, all elected on
an at-large basis to overlapping four-year terms. The Village Manager is responsible for the day-to-day
operations of the Village. The Village of Glenview is a home rule municipality as defined by the Illinois
Constitution.
-xiv-
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-3- .
Our discussion and analysis of the Village of Glenview’s financial performance provides an overview of the
Village’s financial activities for the fiscal year ended December 31, 2009. Please read it in conjunction with the
transmittal letter, which begins on page ix and the Village’s financial statements, which begin on page 20.
FINANCIAL HIGHLIGHTS
• The Village’s net assets decreased as a result of this year’s operations. Net assets of governmental
activities increased by $395,277, or .2%, while net assets of the business-type activities decreased by
$894,577, or 1.7%, resulting in total ending net assets for the year of $249,573,390.
• During the year, government-wide revenues before transfers for the governmental and business-type
activities totaled $99,253,846, while expenses totaled $99,753,146, resulting in the decrease in net
assets of $499,300.
• The Village’s net assets totaled $249,573,390 on December 31, 2009, which includes $132,813,507
invested in capital assets, net of related debt, $39,881,012 subject to external restrictions, and
$76,878,871 unrestricted net assets that may be used to meet the ongoing obligations to citizens and
creditors.
• The General Fund reported a surplus for the year of $3,925,369, primarily as a result of expense
management during the year resulting in expenses being $4,883,923 lower than budget. Some of the
larger savings were realized in personnel costs ($1,849,794) due to staff reductions and Transfers Out
($2,000,000) due to a delay in the Pfingsten Road project.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets and the Statement of
Activities (on pages 20-23) provide information about the activities of the Village as a whole and present a
longer-term view of the Village’s finances. Fund financial statements begin on page 24. For governmental
activities, these statements tell how these services were financed in the short term as well as what remains for
future spending. Fund financial statements also report the Village’s operations in more detail than the
government-wide statements by providing information about the Village’s most significant funds. The remaining
statements provide financial information about fiduciary activities for which the Village acts solely as a trustee or
agent for the benefit of those outside of the government.
Government-Wide Financial Statements
The government-wide financial statements provide readers with a broad overview of the Village’s finances, in a
matter similar to a private-sector business. The government wide financial statements can be found on pages 20-
22 of this report.
The Statement of Net Assets reports information on all of the Village’s assets and liabilities, with the difference
between the two 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. Consideration of other
nonfinancial factors, such as changes in the Village’s property tax base and the condition of the Village’s
infrastructure, is needed to assess the overall health of the Village.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-4- .
USING THIS ANNUAL REPORT – Continued
Government-Wide Financial Statements - Continued
The Statement of Activities presents information showing how the government’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related 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 (e.g., uncollected taxes and
earned but unused vacation leave).
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 works, public safety,
and development. The business-type activities of the Village include water services, North Maine water and sewer
operations, sanitary sewerage operations, wholesale water operations, and commuter parking operations.
The Village includes one separate legal entity in its report. The Glenview Public Library is presented as a
discretely presented component unit. Although legally separate, this “component unit” is important because the
Village is financially accountable for it. Financial information for the component unit is reported separately from
the financial information presented for the primary government itself.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Village, like other 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, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of
the fiscal year. Such information may be useful in evaluating the Village’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 fund balance
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate the comparison between governmental funds and governmental activities.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-5- .
USING THIS ANNUAL REPORT – Continued
Governmental Funds - Continued
The Village maintains eighteen 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, Special Tax Allocation Fund, Village Permanent Fund, The Glen Land
Sales Fund and the General Obligation Taxable Bond Series of 2009E fund, all of which are considered to be
major funds. Data from the other thirteen 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 Village adopts an annual appropriated budget for all of the governmental funds. Budgetary comparison
schedules for all budgeted funds have been provided to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 24-29 of this report.
Proprietary Funds
The Village maintains two proprietary fund types: enterprise and internal service. Enterprise funds are used to
report the same functions presented as business-type activities in the government–wide financial statements. The
Village utilizes enterprise funds to account for its water services, North Maine water and sewer operations,
sanitary sewerage operations, wholesale water operations, and commuter parking operations. 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 capital equipment replacement program, municipal
equipment repair program, facilities replacement program, insurance program, and risk management program.
These services predominantly benefit governmental rather than business-type functions, and therefore, have been
included within governmental activities in the government-wide financial statements.
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
Glenview Water Fund, the North Maine Water and Sewer Fund, and the Glenview Sanitary Sewer Fund, all of
which are considered to be major funds of the Village. Data from the other two proprietary funds are combined
into a single, aggregated presentation. Conversely, the internal service fund is presented in the proprietary fund
financial statements in a single column. Individual fund data for the internal service funds is provided elsewhere
in this report.
The basic proprietary fund financial statements can be found on pages 30–39 of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reflected in the government-wide financial statements because the resources of those funds are not
available to support the Village’s own programs. The accounting use for fiduciary funds is much like that used for
proprietary funds. The basic fiduciary fund financial statements can be found on pages 40-41 of this report.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-6- .
USING THIS ANNUAL REPORT – Continued
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 42-
104 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the Village’s Illinois Municipal Retirement Fund, police and fire, and
other post-employment benefit employee pension obligations. The required supplementary information also
contains budget to actual comparison schedules for the General Fund and major special revenue funds. Required
supplementary information can be found on pages 105-113 of this report. The combining statements referred to
earlier in connection with non-major governmental funds and internal service funds are presented immediately
following the required supplementary information on pensions. Combining and individual fund statements and
schedules for the Village can be found on pages 114-190 of this report. Additionally, the combining and
individual fund statements for the Component Unit can be found on pages 191-214.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over time as a useful indicator of a government’s financial position. The following tables
show that in the case of the Village of Glenview, assets exceeded liabilities by $249,573,390 at December 31,
2009, compared to $250,072,690 at December 31, 2008.
200920082009200820092008
Current and Other Assets$131,757,163$139,338,975$9,366,283$12,498,835$141,123,446$151,837,810
Capital Assets207,226,175206,837,92256,235,67856,046,222263,461,853262,884,144
Total Assets338,983,338346,176,89765,601,96168,545,057404,585,299414,721,954
Long-Term Debt 111,820,53792,894,67210,503,51511,007,025122,324,052103,901,697
Other Liabilities30,655,76657,170,4672,032,0913,577,10032,687,85760,747,567
Total Liabilities142,476,303150,065,13912,535,60614,584,125155,011,909164,649,264
Net Assets
Invested in Capital Assets,
Net of Related Debt87,607,48878,477,14145,206,01943,348,719132,813,507121,825,860
Restricted39,881,01249,074,532- - 39,881,01249,074,532
Unrestricted (Deficit)69,018,53568,560,0857,860,336 10,612,21376,878,87179,172,298
Total Net Assets$196,507,035$196,111,758$53,066,355 $53,960,932$249,573,390$250,072,690
Net Assets
Total
Governmental
Activities
Business-type
Activities
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-7- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
A large portion of the Village’s net assets, $132,813,507 or 53.2%, reflects its investment in capital assets (for
example, infrastructure, land, buildings and improvements, machinery, and equipment), less any related debt used
to acquire those assets that is still outstanding. 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 sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion, $39,881,012 or 16.0%, of the Village’s net assets represents resources that are subject to
external restrictions on how they may be used, including restrictions for future street improvements, debt service
payments, public safety, and future capital development. The remaining 30.8%, or $76,878,871, represents
unrestricted net assets and may be used to meet the government’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, as well as for its separate governmental and business-type activities.
The same situation held true for the previous fiscal year, as reflected in the table above.
Normal Impacts
There are six basic (normal) transactions that will affect the comparability of the Statement of Net Assets
summary presentation:
• 1) Net Results of Activities – which will impact (increase/decrease) current assets and unrestricted net
assets.
• 2) Borrowing for Capital – which will increase current assets and long-term debt outstanding.
• 3) Spending Borrowed Proceeds on New Capital – which will reduce current assets and increase
capital assets. There is a second impact, an increase in invested in capital assets and an increase in
related net debt, which will not change the investment in capital assets, net of related debt total.
• 4) Spending Nonborrowed Current Assets on New Capital – which will (a) reduce current assets and
increase capital assets and (b) will reduce unrestricted net assets and increase investment in capital
assets, net of related debt.
• 5) Principal Payment on Debt – which will (a) reduce current assets and reduce long-term debt and
(b) reduce unrestricted net assets and increase investment in capital assets, net of related debt.
• 6) Reduction of Capital Assets through Depreciation – which will reduce capital assets and reduce
investment in capital assets, net of related debt.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-8- .
200920082009200820092008
Revenues
Program Revenues
Charges for Services$10,817,726$9,327,348$19,721,204$18,860,140$30,538,930$28,187,488
Operating Grants/Contrib.1,172,8991,401,777- - 1,172,8991,401,777
Capital Grants/Contrib.1,267,384- - - 1,267,384-
General Revenues
Taxes
Property Taxes33,863,90737,030,734- - 33,863,90737,030,734
Home Rule Sales Tax5,920,7425,531,093- - 5,920,7425,531,093
Telecommunication Taxes2,583,4572,562,607- - 2,583,4572,562,607
Utility Taxes3,313,2183,541,338- - 3,313,2183,541,338
Other Taxes841,6581,109,982- - 841,6581,109,982
Intergovernmental
Sales Tax11,943,63313,118,090- - 11,943,633 13,118,090
State Income Tax3,612,2824,207,152- - 3,612,2824,207,152
Local Use Tax519,587648,277- - 519,587648,277
Road and Bridge Tax294,331292,977- - 294,331292,977
Property Replacement Tax228,225273,588- - 228,225273,588
Other 357,770271,803- - 357,770271,803
Other General Revenues2,706,5465,535,90889,277268,0192,795,8235,803,927
Total Revenues79,443,36584,852,67419,810,48119,128,15999,253,846103,980,833
Expenses
General Government29,780,62127,195,744- - 29,780,62127,195,744
Public Works12,741,12913,998,908- - 12,741,12913,998,908
Public Safety26,456,77127,622,472- - 26,456,77127,622,472
Development8,467,3407,306,324- - 8,467,3407,306,324
Interest on Long-Term Debt6,001,8866,068,865- - 6,001,8866,068,865
Water Services- - 7,733,0488,254,5417,733,0488,254,541
North Maine Water and Sewer- - 5,782,2166,148,1515,782,2166,148,151
Sanitary Sewerage- - 1,238,3831,473,3181,238,3831,473,318
Wholesale Water- - 1,074,8121,110,1761,074,8121,110,176
Commuter Parking- - 476,940381,133476,940381,133
Total Expenses83,447,74782,192,31316,305,39917,367,31999,753,14699,559,632
Change in Net Assets
Before Transfers(4,004,382)2,660,3613,505,0821,760,840(499,300)4,421,201
Transfers4,399,659287,180(4,399,659)(287,180)- -
Change in Net Assets395,2772,947,541(894,577)1,473,660(499,300)4,421,201
Net Assets-Beginning 196,111,758193,164,21753,960,93252,487,272250,072,690245,651,489
Net Assets-Ending$196,507,035$196,111,758$53,066,355$53,960,932$249,573,390$250,072,690
Changes in Net Assets
Total
Governmental
Activities
Business-Type
Activities
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-9- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
Normal Impacts
There are eight basic (normal) impacts on revenues and expenses as reflected below:
Revenues:
• 1) Economic Condition – which can reflect a declining, stable, or growing economic environment and
has a substantial impact on state income, sales, and utility tax revenue as well as public spending
habits for building permits, elective user fees, and levels of consumption.
• 2) Increase/Decrease in Village-Approved Rates – while certain tax rates are set by statute, the
Village Board has significant authority to impose and periodically increase/decrease rates (property
taxes, water, sewer, impact fees, building fees, home rule sales tax, etc.).
• 3) Changing Patterns in Intergovernmental and Grant Revenue (both Recurring and Nonrecurring) –
certain recurring revenues (state-shared revenues, etc.) may experience significant changes
periodically, while nonrecurring (or one-time) grants are less predictable and often distorting on their
impact on year-to-year comparisons.
• 4) Market Impacts on Investment Income – the Village’s investment policy is managed using a similar
average maturity to most governments. Market conditions may cause investment income to fluctuate.
Expenses:
• 5) Introduction of New Programs – within the functional expense categories (general government,
public works, public safety, etc.), individual programs may be added or deleted to meet changing
community needs.
• 6) Change in Authorized Personnel – changes in service demand may cause the Village Board to
increase/decrease authorized staffing. Personnel costs (salary and related benefits) represent
approximately 64.9% of the Village’s General Fund and approximately 14.4% of enterprise operating
costs at December 31, 2009.
• 7) Salary Increases (Annual Adjustments and Merit) – the ability to attract and retain human and
intellectual resources requires the Village to strive to approach a competitive salary range position in
the marketplace.
• 8) Inflation – while overall inflation appears to be reasonably modest, the Village is a major consumer
of certain commodities such as supplies, fuels, and parts. Some functions may experience unusual
commodity-specific increases.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-10- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
Net assets of the Village’s governmental activities increased by .2%, or $395,277 ($196,507,035 in 2009
compared to $196,111,758 in 2008). The increase in the prior year for governmental activities was $2,947,541.
Unrestricted net assets, the part of net assets that can be used to finance day-to-day operations without constraints,
totaled $69,018,535 at December 31, 2009, an increase of $458,450 from 2008. Net assets of business-type
activities decreased by 1.7%, or $894,577 ($53,066,355 in 2009 compared to $53,960,932 in 2008). The increase
in the prior year for business-type activities was $1,473,660. Unrestricted net assets totaled $7,860,336 at
December 31, 2009, a decrease of $2,751,877.
Governmental Activities
Revenues:
Revenues for governmental activities totaled $79,443,365 at December 31, 2009 and $84,852,674 at December
31, 2008, a decrease of $5,409,309. Some key changes during the year for the governmental activity revenues are
described below:
• In 2008, the Village received proceeds from sale of land held for resale of $3,126,283. In 2009 there
was no sale of land held for resale.
• Property Taxes decreased 8.6%, or $3,166,827, as a result of a decrease of $3,415,842 in TIF
incremental taxes ($23,897,485 in 2009 compared to $27,313,327 in 2008).
• Home Rule Sales Tax increased from $5,531,093 at December 31, 2008 to $5,920,742 at December
31, 2009, reflecting a 7.04% increase due to the first full year recognition of the newly adopted rate of
.75% effective July 2008.
• Charges for Services revenues in Development activity increased $1,197,837, or 59% in part due to
an increase in Licenses and Permits revenues. This increase is attributable to the building permits and
engineering fees for a number of large development projects in the Village during the year.
• Charges for Services Revenues in Public Safety activity increased $1,198,131, or 29.4% due to a
large increase in the Ambulance Fees received during 2009 as this was the first full year of the
Village receiving the fee which was initiated in late 2008.
• General Sales Tax decreased $1,174,457, or 8.9% from 2008 and Income Tax decreased $594,870, or
14.1% due in large part to the declining economic environment.
• Another significant decrease in revenues for the governmental activities occurred in the Investment
Income category. Investment earnings for the governmental activities totaled $2,234,453 at
December 31, 2008, while this total was only $975,360 at December 31, 2009, a decrease of
$1,259,093, or 56.0%. The declining economic environment and drastically lower interest rates have
greatly affected investment returns on the Village’s holdings. The Village has been working with an
investment management firm to address cash flow needs and long-term investment returns in the
hopes of improving investment returns and to position the Village to take advantage of higher interest
rates when they do start to rebound.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-11- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
Governmental Activities – Continued
Revenues – Continued
Overall, for the year ended December 31, 2009, the large decrease in proceeds from sale of land, Property Taxes,
General Sales Tax and Investment Income were somewhat offset by increases in Home Rule Sales Tax, Charges
for Services revenues in both development and public safety resulting in the overall decrease in revenues in 2009
of $5,409,309 as compared to 2008.
The following table graphically depicts the major revenue sources of the Village. It depicts very clearly the
reliance of Property Taxes and Sales Taxes to fund governmental activities. It also clearly identifies the less
significant percentage the Village receives from Income Taxes, Telecommunication Taxes, and Utility Taxes.
Charges for
Services
14%
Operating
Grants/Contrib.
1%
Capital
Grants/Contrib.
2%
Property Taxes
43%
Sales Taxes
22%
Income Taxes
5%
Telecomm Taxes
3%
Utility Taxes
4%
Other General
Revenues
6%
Revenues by Source -Governmental Activities
December 31, 2009
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-12- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
Governmental Activities – Continued
Expenditures
For the year ended December 31, 2009, governmental activities expenses totaled $83,447,747, an increase of
$1,255,434, or 1.5%. For the most part, governmental operating expenses decreased during the year due in large
part to the Village management’s approach to closely managing expenditures in response to the projected
decrease in several sources of revenues. The village wide cost cutting initiatives included staff reductions and
lower spending in the contractual services and commodities categories. However, these expense reductions were
offset by a substantial one-time governmental expenditure during the year of $3,215,448. This expense was for
the employer portion of the Early Retirement Incentive (ERI) payment. This ERI program was offered to eligible
employees as a part of the comprehensive staff reduction plan initiated by the Village.
The ‘Expenses and Program Revenues’ Table identifies those governmental functions where program expenses
exceed revenues. These deficits are expected due to the fact that the governmental functions are primarily support
by General Revenues (for instance Property Taxes and Sales Taxes) rather than the Program Revenues.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
General
Government
Public WorksPublic SafetyDevelopmentInterest on
Long-Term
Debt
Expenses and Program Revenues -Governmental Activities
December 31, 2009
Revenues
Expenses
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-13- .
GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued
Business-Type activities
Business-Type activities posted total revenues of $19,810,481, while the cost of all business-type activities totaled
$16,305,399. This results in a surplus of $3,505,082 prior to net transfers out of $4,399,659. In 2008, revenues of
$19,128,159 exceed expenses of $17,367,319, resulting in a surplus of $1,760,840 prior to net transfers out of
$287,180.
Revenues
For the fiscal year ended December 31, 2009, revenues for the business-type activities totaled $19,810,481, an
increase of $682,322, or 3.6%, due primarily to increased charges for services ($19,721,204 in 2009 compared to
$18,860,140 in 2008).
Expenses
Expenses for the year ended December 31, 2009 totaled $16,305,399, a decrease of $1,061,920, or 6.1%,
primarily as a result of a combined decrease of $1,055,128 in operational expenses in all of the Enterprise Funds
(Glenview Water Fund, North Maine Water and Sewer Fund, Glenview Sanitary Sewer Fund, Wholesale Water
Fund and Commuter Parking Fund).
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Water ServicesNorth Maine
Water and
Sewer
Sanitary
Sewerage
Wholesale
Water
Commuter
Parking
Expenses and Program Revenues -Business-Type Activities
December 31, 2009
Revenues
Expenses
The above graph compares program revenues to expenses for utility operations.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-14- .
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. In particular, unreserved fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
The Village’s governmental funds reported combining ending fund balances of $91,322,307, which is $7,634,237,
or 7.7%, lower than last year’s total of $98,956,544. Of the $91,322,307 total, $31,946,509, or approximately
35.0%, of the fund balance constitutes unreserved fund balance.
General Fund
The General Fund reported a surplus for the year of $3,925,369, an increase of 24.2%. As previously discussed,
this surplus was primarily a result of managing expenses during the year. Total expenditures were $4,883,923
lower than budget. Some of the larger savings were realized in Personnel Costs $1,849,794 due to staff reductions
and Transfers Out $2,000,000 due to a delay in the Pfingsten Road project.
The General Fund is the chief operating fund of the Village. At December 31, 2009, unreserved fund balance in
the General Fund was $20,044,782, which represents 99.6% of the total fund balance of the General Fund. As a
measure of the General Fund’s liquidity, it is useful to compare unreserved fund balance to total fund
expenditures. Unreserved fund balance in the General Fund represents approximately 41.4% of total General
Fund expenditures.
Other Major Funds
The Special Tax Allocation Fund is used to account for the incremental property tax revenue that is generated
through the growth of the assessed valuation at The Glen, (formally referred to as Glenview Naval Air Station)
and the ‘Make-Whole’ payments to core jurisdictions within the boundaries of the Tax Increment Financing
District. The core jurisdictions consist of: the Village of Glenview, School District 34, School District 225, the
Glenview Park District, and the Glenview Public Library, a discretely presented component unit of the Village.
This fund also accounts for the service and incentive fees within the Tax Increment Financing District. At
December 31, 2009 the Special Tax Allocation Fund reported a surplus of $1,402,199, due primarily to a transfer
in from the Glen Land Sales Fund.
The Village Permanent Fund, reported as a capital projects fund, was formed from 20% of the land sales proceeds
of The Glen (formally referred to as Glenview Naval Air Station). Ongoing, the resources are used for Village-
wide improvements as well as short-term liquidity for the Villlage’s Tax Increment Financing (TIF) projects at
The Glen. For the year ended December 31, 2009 the Village Permanent Fund reported a deficit of $5,809,551,
primarily the result of a budgeted transfer to the Capital Projects Fund of $3,100,974 for TIF related capital
projects and a one-time personnel expenditure of $3,215,448 for an early retirement program offered to
employees.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-15- .
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued
Governmental Funds – Continued
Other Major Funds – Continued
The Glen Land Sales Fund, also reported as a capital projects fund, accounts for resources and expenditures
related to the sale of properties in The Glen TIF District. For the year ended December 31, 2009 The Glen Land
Sales Fund reported a deficit of $2,649,261, primarily as the result of land sales revenue of $373,671 and
operating transfers in from other funds of $1,576,259 that was offset by operating transfers out to other funds of
$3,878,489, including the $3,578,489 transfer to the Special Tax Allocation Fund.
The General Obligation Taxable Bond Series of 2009E Fund is used to account for monies collected and paid for
the Series 2009E taxable bonds, issued in the amount of $29,125,000 to acquire land in the Glenview Naval Air
Station Economic Development Project Area. For the year ended December 31, 2009 the General Obligation
Taxable Bond Series of 2009E Fund reported a deficit of $1,634,165, due to the refunding during the year of the
outstanding Bond Series 2006B which resulted in Bond Proceeds of $28,125,000 offset by Interest and fiscal
charges combined with Payment to escrow agent of $29,423,363.
Proprietary Funds
The Village’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
The Village reports the Glenview Water, the North Maine Water and Sewer, and the Glenview Sanitary Sewer
Funds as major proprietary funds. The Village also reports two nonmajor proprietary funds, the Wholesale Water
Fund and the Commuter Parking Fund. The Glenview Water Fund accounts for the provision of water services to
the property owners in the Village. The North Maine Water Fund accounts for the provision of water and sewer
services to the property owners in an unincorporated area southwest of the Village. The Glenview Sanitary Sewer
Fund accounts for the provision of sanitary sewer services to property owners in both incorporated and
unincorporated areas of the Village.
The Village purchases Lake Michigan water from neighboring Wilmette. The spread between purchase and sale
rates is intended to finance the operations of the utility system, including labor costs, supplies, and infrastructure
maintenance.
The deficit in the Glenview Water Fund during the current fiscal year was $537,955, while the previous fiscal
year reported a surplus of $271,683. Transfers out to other funds of $1,210,892 were $924,690 higher than last
year. Unrestricted net assets in the Glenview Water Fund totaled $3,391,510 at December 31, 2009.
The North Maine Water and Sewer Fund reported a surplus for the current year of $668,094, compared to the
prior year when it reported a deficit of $17,270. Operating revenues of $7,206,186 were $381,550 higher than last
year and operating expenses of $5,508,732 were $233,216 lower than last year. Total net assets at December 31,
2009 were $1,752,502.
The surplus in the current year in the Glenview Sanitary Sewer Fund was $603,152, resulting in ending net assets
of $13,951,375. In the prior year the Glenview Sanitary Sewer Fund also reported a surplus of $493,316.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-16- .
GENERAL FUND BUDGETARY HIGHLIGHTS
The Village Board made no budget amendments to the General Fund during the year. General Fund actual
revenues for the year totaled $52,296,245, compared to budgeted revenues of $55,156,017, a shortfall of
$2,859,772. As stated earlier, due to the economic downturn, several revenues came in much lower than
budgeted. Budgeted general sales tax was $13,000,000 for the year, while actual general sales tax was
$11,943,633 for the year, reflecting a shortfall of $1,056,367. State shared income tax of $3,612,282 fell $794,418
lower than the budgeted amount of $4,406,700. Utility tax receipts were $1,123,325 below budget due to an
electric service rate reduction and a drop in the price of natural gas. Furthermore, investment income of $130,382
was $304,618 lower than the budgeted investment income of $435,000 due to reduced interest rates across all
investments. These declines were offset, however, by 2008 enacted ambulance fees of $1,346,132 being
$646,132 higher than the anticipated amount of $700,000.
The General Fund original budgeted expenditures for the year of $53,254,799 were $4,883,923 higher than actual
expenditures of $48,370,876. These lower than anticipated expenditures were due to the Village senior
management team taking a proactive approach to the expected shortfall in revenues by aggressively managing
expenditures for the year. Personnel expenditures were $1,849,794 lower than budget due to staff reductions.
Actual expenditures for transfers to Capital Projects were $2,000,000 lower than budget due to the decision to
delay a major road project as a result of the downturn in the economy.
Final2009
BudgetActual
Revenues
Taxes$23,450,727$23,450,727$22,625,497
Intergovernmental22,378,67822,378,67820,372,319
Other6,636,9586,636,9586,784,427
Total Revenues52,466,36352,466,36349,782,243
Expenditures(50,224,309)(52,224,309)(45,315,254)
Transfers In2,689,6542,689,6542,514,002
Transfers Out(3,030,490)(1,030,490)(3,055,622)
Total Expenditures & Transfers(50,565,145)(50,565,145)(45,856,874)
Net Change in Fund Balance$1,901,218$1,901,218$3,925,369
General Fund Budgetary Highlights
Original
Budget
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The Village’s investment in capital assets for its governmental and business type activities as of December 31,
2009 was $263,461,853 (net of accumulated depreciation). This investment in capital assets includes land,
buildings and improvements, machinery, equipment, and vehicles, water and sanitary sewer system
improvements, and other infrastructure improvements.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-17- .
CAPITAL ASSETS AND DEBT ADMINISTRATION - Continued
Capital Assets - Continued
200920082009200820092008
Construction in Progress$1,003,290$939,207$209,803$- $1,213,093$939,207
Land11,860,69811,860,698802,851802,85112,663,54912,663,549
Land Right of Way55,142,28355,141,318- - 55,142,28355,141,318
Buildings and Improvements61,013,20759,516,854978,2551,026,87261,991,46260,543,726
Machinery, Equipment and Vehicles2,329,8582,672,576 596,087705,1692,925,9453,377,745
Infrastructure75,876,83976,707,269- - 75,876,83976,707,269
Water System- - 38,259,32838,590,07038,259,32838,590,070
Sanitary Sewer System- - 15,389,35414,921,26015,389,35414,921,260
Total$207,226,175$206,837,922$56,235,678$56,046,222 $263,461,853$262,884,144
Capital Assets - Net of Depreciation
Total
Business-typeGovernmental
Activities Activities
This year’s major additions included:
Buildings and Improvements$3,395,182
Infrastructure, including roadways, etc.2,038,522
Construction in Progress (pump station, road program)1,003,290
Total $6,436,994
Additions
Additional information on the Village’s capital assets can be found in Note D on pages 64-67 of this report.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-18- .
CAPITAL ASSETS AND DEBT ADMINISTRATION - Continued
Debt Administration
At year-end, the Village had total outstanding debt of $130,162,645 as compared to $141,188,909 the previous
year, a decrease of $11.0 million, or 7.8% which included two bond refundings during the year coupled with
principal retirements that reduced the outstanding liability on the bonds. The following is a comparative statement
of outstanding debt:
200920082009200820092008
General Obligation Bonds$118,865,000$128,505,000$9,629,897$10,889,470$128,494,897$139,394,470
Corporate Purpose Notes- - 1,667,7481,794,4391,667,7481,794,439
Total$118,865,000$128,505,000$11,297,645$12,683,909 $130,162,645$141,188,909
Long-Term Debt Outstanding
Total
Business-typeGovernmental
ActivitiesActivities
The Village maintains an Aaa rating from Moody’s for general obligation debt. This rating has not changed in the
past six years. As the Village is a home rule community, there is not legal limit for outstanding debt.
Additional information on the Village’s long-term debt can be found in Note F on pages 70-78 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The Village’s elected and appointed officials considered many factors when setting the fiscal-year 2010 budget,
tax rates, and fees that will be charged for its governmental and business-type activities. One of those factors is
the economy. Unemployment rates for the Village were 6.9% for 2009, an increase of 2.7% from 2008, or 64%.
Rising unemployment, declining interest rates and downturn in the stock market have created a tough economic
environment which has not left the Village unscathed. All of these indicators were taken into account when
adopting the budget for 2010. At the time of preparing the 2010 budget, it was projected that the Village would
continue to experience decreases in revenues. However, expenditures in most areas were also trimmed to the
fullest extent possible without impacting core services provided. Plans for beyond 2010 are also being developed
to ensure the Village’s long term economic sustainability.
VILLAGE OF GLENVIEW, ILLINOIS
Management’s Discussion and Analysis
December 31, 2009
-19- .
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Village of Glenview’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this report
or requests for additional information should be directed to the Administrative Services Department, Village of
Glenview, 1225 Waukegan Road, Glenview, Illinois 60025.