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Transcript of Comprehensive Annual Financial · PDF fileINTRODUCTORY SECTION ... Schedule of Revenues, ......
A component unit of the County of McHenry, Illinois
US Highway 14, Woodstock, IL 60098 • MCCDistrict.org • 815.338.6223
Comprehensive Annual Financial Report
Fiscal Year, beginning April 1, 2012 and ending March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
MCHENRY COUNTY, ILLINOIS
(A Component Unit of the County of McHenry, Illinois)
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended
March 31, 2013
Prepared by:
Andy Dylak
Director of Finance
MCHENRY COUNTY CONSERVATION DISTRICT MCHENRY COUNTY, ILLINOIS TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION Principal Officials ............................................................................................................. i Organization Chart ............................................................................................................ ii Letter of Transmittal ......................................................................................................... iii-ix Certificate of Achievement for Excellence in Financial Reporting .................................. x
FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ........................................................................ 1-3 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis .................................................................. MD&A 1-17 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ................................................................................... 4 Statement of Activities ....................................................................................... 5 Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................. 6 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position .................... 7 Statement of Revenues, Expenditures, and Changes in Fund Balances ........ 8 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ...................................................... 9 Notes to Financial Statements ................................................................................. 10-31
MCHENRY COUNTY CONSERVATION DISTRICT MCHENRY COUNTY, ILLINOIS TABLE OF CONTENTS (Continued)
Page(s) FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund .......................................................................... 32 Schedule of Funding Progress Illinois Municipal Retirement Fund ................................................................... 33 Other Postemployment Benefits Plan ................................................................. 34 Schedule of Employer Contributions Illinois Municipal Retirement Fund ................................................................... 35 Other Postemployment Benefits Plan ................................................................. 36 Notes to Required Supplementary Information ....................................................... 37 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual ................................................................. 38 Schedule of Expenditures - Budget and Actual ........................................................... 39-49 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ......................................................... 50 Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ......................................................... 51 Dedicated Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .................................................... 52 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Fund Combining Balance Sheet ............................................................................................ 53 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................... 54 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Insurance Fund ........................................................................................................ 55 Natural Resources Fund ...................................................................................... 56
MCHENRY COUNTY CONSERVATION DISTRICT
MCHENRY COUNTY, ILLINOIS TABLE OF CONTENTS (Continued)
Page(s)
STATISTICAL SECTION
Financial Trends Net Position by Component ......................................................................................... 57 Change in Net Position ................................................................................................. 58-59 Fund Balances of Governmental Funds ....................................................................... 60 Changes in Fund Balances of Governmental Funds .................................................... 61-62 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property ............................. 63 Property Tax Rates - Direct and Overlapping Governments ....................................... 64 Principal Property Taxpayers ....................................................................................... 65 Property Tax Levies and Collections ........................................................................... 66 Debt Capacity Ratios of Outstanding Debt by Type ............................................................................ 67 Ratios of General Bonded Debt Outstanding .............................................................. 68 Direct and Overlapping Governmental Activities Debt .............................................. 69 Legal Debt Margin........................................................................................................ 70 Demographic and Economic Information Demographic and Economic Statistics ........................................................................ 71 Principal Employers ..................................................................................................... 72 Operating Information Full-Time Equivalent Employees by Function ............................................................ 73 Operating Indicators by Function ................................................................................. 74 Capital Asset Statistics by Function ............................................................................. 75
OTHER INFORMATION - UNAUDITED
Municipal Securities Disclosure Requirements of the
Securities Exchange Commission (SEC) Rule 15c2-12
Debt Service Extension Base .................................................................................. 76
Debt Service Schedule ............................................................................................. 77
Balance Sheet - General Fund ................................................................................. 78
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - General Fund ............................................................. 79-81
INTRODUCTORY SECTION
- i -
Board of Trustees
Stephen Barrett, President Trout Valley
Matthew Ewertowski, Vice President
Crystal Lake
Bonnie Leahy, Treasurer Marengo
David Brandt, Secretary
Wonder Lake
Kent Krautstrunk Crystal Lake
Bona Heinsohn, Trustee
Harvard
Brandon Thomas, Trustee Huntley
Peter Merkel
County Board Liaison
Senior Leadership
Elizabeth S. Kessler, MBA, CPRP Executive Director
John Kremer
Director of Operations
Andrew Dylak Director of Finance
- ii -
iii
September 19th, 2013
To: The Board of Trustees and Citizens of the McHenry County Conservation District
We are pleased to submit the Comprehensive Annual Financial Report of the McHenry County Conservation District for the fiscal year ended March 31, 2013. The report is presented in a manner designed to fairly present the financial activity of the various funds of the District. These financial statements were prepared by District Management, who is responsible for both the accuracy of the data presentation, and the completeness and fairness of the report taken as a whole.
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. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and changes in financial position of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain maximum understanding of the District’s financial affairs have been included.
This report is prepared in accordance with generally accepted accounting principles and in conformance with standards of financial reporting as established by the Government Finance Officers Association of the United States and Canada. Based on these guidelines, the report consists of three sections:
First, is a narrative Introductory Section that gives an overview of the District. This section is intended to familiarize readers with the District’s organizational structure, the nature of the services provided and the specifics of the legal operating environment.
Second, is the Financial Section. This section includes the financial statements and data of the District, along with the Management Discussion and Analysis (MDA), which should be read by all users of these financial statements along with this letter of transmittal. These items are accompanied by the independent auditor’s report.
Third, is the Statistical Section which depicts changes over a period of time, of various Conservation District parameters, not found within the accounting records and other sections of this report.
iv
Profile of the Conservation District
The Conservation District is a separate, autonomous, special –purpose taxing district created by a group of ecologically conscientious citizens in 1971 and supported by the Illinois Conservation District Act of 1963. It is governed by a seven-member, volunteer Board of Trustees who each serve a five-year term.
The District exists to preserve, restore, and manage natural areas and open spaces within McHenry County for their intrinsic value and for the benefits to present and future generations. The District owns and manages 25,022 acres of open land, diverse with woodlands, prairies, wetlands, ponds, creeks, and rivers. Within the District’s land holdings there are 16 dedicated State Nature Preserves and forty- two sites are now open to the public; featuring trails, picnic shelters, camp sites, fishing sites, rare plant and animal examples, and educational facilities. Safety and security at its sites is provided by the efforts of the District’s own police department.
Local Economy
The McHenry County Conservation District is statutorily restricted to fulfilling its mission within the geographic area of McHenry County. McHenry County covers a total area of 611 square miles and is located in the northeastern part of Illinois. The estimated population for the calendar year 2012 is 308,145. The County is approximately 50 miles northwest of Chicago and consists of over 30 communities with residential growth covering the eastern half and more countryside toward the west.
The U.S. Census Bureau estimates the County’s population to be 308,145 for 2012, which is down slightly from the previous year’s estimated population of 308,944. This represents a significant change from a growth rate which had averaged almost 3% during the fifteen years prior to 2010. More specifically, from 2000 through 2008, the County’s population grew 23.4% and ranked fourth in the state with a population growth of 60,884 residents over the nine year period. The State of Illinois experienced only a 3.95% population increase over the same nine year period. The County’s growth was also more significant in the 1990’s with an overall increase of 41.9% from 1990 to 2000.
The following chart shows the County’s population by decade from 1950 through 2010 and also includes the U.S. Census Bureau’s estimated population for calendar years 2011 and 2012.
50,656
84,210
111,555
147,897
183,241
260,077
308,760 308,944 308,145
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
1950 1960 1970 1980 1990 2000 2010 2011 2012
McHenry County Population History
McHenry County’s economy has not been immune to the national economic slowdown experienced over the last several years, including a weak housing market and lagging consumer demand. The Illinois Association of Realtors reports that the median sales price of a single family home in McHenry County was $141,000 for the calendar year 2012. This is down 7.2% from the prior 2011 median single family
v
home sales price of $152,000. More significantly, this represents a 38% decrease from the calendar year 2006 median single family home sales price which was $229,500.
The following chart shows the median single family home sales price by year from 2004-2012. It also includes the median sales price for the first quarter of calendar year 2013.
$213,000
$226,000 $229,500
$227,000
$200,000
$181,000
$171,000
$152,000
$141,000 $135,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
$240,000
$260,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Median Home Sales Value
McHenry County is beginning to see signs of a slow recovery from the national recession, which began in December 2007 and lasted until mid 2009. The County realized a solid improvement in its average annual unemployment rate which fell from 9.4% for 2011 to 8.4% 2012. This represents an even greater improvement from the 9.6% average unemployment rate for the 2009 and 2010 years. For the State of Illinois, the average annual unemployment rates were 8.9% for 2012 and 9.8% for 2011. The U.S. unemployment rate for 2012 was 8.1%. In 2012, the total County annual average labor force was 176,716, consisting of 161,900 employed and 14,816 unemployed. The comparable statistics for 2011 relate to a slightly lower total labor force of 174,823, with 158,436 employed and a higher number, 16,387, of unemployed individuals. Long-Term Financial Planning While there are many financial challenges that lie ahead, some of them known and others that could arise out of the somewhat volatile national and global economies, the current financial position of the Conservation District is still relatively strong. There are two main reasons for the relative strength of the District’s current financial position.
The District’s financial stability is largely the result of conservative and fiscally responsible management by the Board of Trustees and the senior leadership team. From 2000- 2008, when the equalized assessed value of the tax base was growing rapidly, along with the related property tax revenues, the District maintained a conservative growth practice. Employees were only added when it was absolutely necessary to meet the growing needs of the agency. Through this practice, the District has been able to keep total personnel expenses to less than 70% of the total annual operating budget. This has helped to ensure that the funding is available to meet the rising costs of other operating expenditures such as utilities and fuel, as well as provide for the long term maintenance and replacement of the District’s infrastructure. The practice has also provided an operating cushion to help manage the reduced revenues and rising operating costs that the District has experienced in recent past years and will continue to face for at least the next one or two years. Additionally, the District uses financial modeling to evaluate the impact of a variety of economic scenarios on the District’s financial performance. This
vi
allows the District to proactively initiate changes to operations and services to position the District for continued success.
The second factor that is integral to the District’s financial stability is that property taxes account for approximately 81% of the District’s total operating revenue. Property taxes are a very stable and reliable source of revenue and help ensure the District has the resources needed to carry out its operations. The stability of this main source of revenue allows the District’s Board of Trustees to set the minimum level of General Fund unassigned reserves at just 25% (or 3 months) of total annual operating expenses.
The District’s ability to increase its property tax levy is statutorily restricted by the Illinois Property Tax Extension Limitation Law (PTELL) which limits the increase to 5% or the change in the Consumer Price Index (CPI) for the previous calendar year, whichever is lower. Under the PTELL, the General Fund’s most recent operating levy was limited to a 3.0% increase over the prior year’s actual extended levy. However, in order to provide some relief to McHenry County property tax payers, who have been faced with falling home values and rising property tax bills, the District’s Board of Trustees elected to not increase the 2012 General Fund levy. As such, the amount levied for the General Fund in the fall of 2012 was the same amount that had been levied in the previous 2011 year.
The District’s General Fund levy is also subject to a maximum statutory tax rate as established within the Illinois Conservation District Act (70 ILCS 410/). The maximum statutory rate is 1/10th of 1% of the Equalized Assessed Value (EAV) in the County. As property values have been falling since 2006, the EAV (which represents a three year average of the assessed property values) has been falling since 2009. During the last four years, the total McHenry County EAV has fallen by 24.8%.
The graph below shows the EAV of McHenry County for the calendar years 2006 through 2012.
$9.42
$10.16
$10.53 $10.44
$9.73
$8.84
$7.91
$-
$2
$4
$6
$8
$10
$12
2006 2007 2008 2009 2010 2011 2012
Bill
ion
s
McHenry CountyEqualized Assessed ValueCalendar Years 2006-2012
The District anticipates that the County’s EAV will continue to fall another 5% to 12% over the next two to three years, before returning to a growth mode. As the EAV continues to fall, the District expects to reach its maximum statutory General Fund rate cap, and as such, will likely have to reduce its levy request for 2014, by $250,000- $350,000 below the amount most recently levied for 2012. The Board of Trustees will rely on the unassigned reserve balance within the General Fund to help offset this likely reduction of revenue.
vii
The District’s General Fund unassigned reserves (fund balance) reflects the District’s success at conservatively managing its financial resources and efficiently managing the operations of the District. The following chart shows a history the General Fund’s Unassigned Reserves for fiscal years 2004 through fiscal year 2013. The chart shows the number of months of the District’s General Fund annual operating expenses that the Unassigned Reserve balance could fund. For comparative purposes, expenditures for capital outlays have been excluded from consideration.
8.5 8.8
7.4 6.8
7.2 6.8
7.2 6.6 6.7
6.4
3
4
5
6
7
8
9
10
11
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
General Fund
Unassigned Fund Balance
FY 2004- FY 2013
Relevant Financial Policies
Internal Controls Management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls Each departmental manager is responsible for developing their department’s operational budget that conforms to the guidelines established by the District’s Board of Trustees and senior leadership of the District. A Tentative budget is developed annually and is formally presented to the Board and public and then made available for review for a period of 30 days. After the 30 day review period, there is a formal public hearing held on the Tentative Budget, followed by another public presentation of any changes made to the Tentative budget before it is formally approved by the Board of Trustees. Once these steps are completed, the budget is statutorily required to be approved by the McHenry County of Illinois, Board of Trustees. During the fiscal year, budget variances are reviewed by District management on a monthly basis and reviewed by the Board of Trustees on a quarterly basis.
viii
Debt Administration As of March 31, 2013 the District had $132,965,000 of General Obligation bonds outstanding. The contractual payments of this debt are funded by a separate tax levy, not subject to the PTELL or a statutory rate cap, which ensures its continued and timely retirement. The District also has an outstanding installment loan contract for a land acquisition with a principal balance of $4,800,000. Under current statutes, the District’s total debt is subject to a legal limitation not to exceed 1.725% of the assessed valuation of the County. As of March 31, 2013, the District carried a debt rating assigned by Moody’s Ratings Services of “Aaa” which is the highest rating available under the rating service. Cash Management The District invests all temporary cash surpluses in accordance with the District’s investment policy. The District’s investment policy is more restrictive than that allowed under Illinois statute and focuses on the safety and liquidity of the investments. The District’s policy requires that all investments be either insured under the Federal Deposit Insurance Corporation or collateralized at 105% of the aggregate balance of principal and interest. Typical investments for the District include bank certificate of deposits, investment in U.S. Treasuries, and investments in other U.S. Agency securities. Risk Management The District is a member of the Park District Risk Management Agency (PDRMA). PDRMA is an intergovernmental risk management pool that provides the District with comprehensive insurance coverage including: general liability, automobile liability, public official’s errors and omissions coverage, employment practices, law enforcement liability, and worker’s compensation. PDRMA also provides loss control reviews and training and education in areas of risk management. The District provides health, dental and life insurance for its fulltime employees. In order to help mitigate the increasing costs of health insurance, the District has implemented a Health Savings Account and is requiring employees to share in paying for the cost of their insurance coverage. These efforts have helped the District keep the net contractual insurance premium annual increases below 4% for the last three consecutive years. Major Initiatives
In July of 2007, the District issued $73 million of General Obligation bonds approved through a referendum. From the original $73 million of bond proceeds, the District’s Board of Trustees designated $62.5 million dollars toward land acquisitions, $8.5 million dollars toward site and trail improvements and $2 million dollars toward natural restoration initiatives. As of March 31st, 2013, all of the principal bond proceeds had been expended and over the last five years, the Conservation District has acquired and protected an additional 4,140 acres of open space, provided public access and amenities to nine (9) new conservation areas, added 8.5 miles of regional trails, 7.5 miles of hiking trails, seven (7) picnic shelters, and three (3) fishing/canoe access points. There is a detailed listing of major initiatives and accomplishments for the current reporting period provided in the Management Discussion and Analysis that is included in this report.
ix
Acknowledgements This Comprehensive Annual Financial Report is being submitted to the Government Finance Officers Association of the United States and Canada in pursuit of a Certificate of Achievement for Excellence in Financial Reporting. In order to be awarded the certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The certificate is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment. The preparation of this report could not have been accomplished without the services of the Accounting Supervisor and Administrative Services team, and the department managers who assisted in gathering information. I would also like to express my appreciation for the support and encouragement provided by our Executive Director and Board of Trustees. And lastly, I would like to acknowledge our independent auditors, Sikich LLP, whose professional assistance and guidance were instrumental in completing this report.
Respectfully submitted,
Andy Dylak Director of Finance
FINANCIAL SECTION
- 2 -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the District as of and for the year ended March 31,
2013, in conformity with accounting principles generally accepted in the United States of
America. We have previously audited the District’s financial statements, and our report dated
August 10, 2012, expressed an unmodified opinion on those audited financial statements. In our
opinion, the summarized comparative information presented herein as of and for the year ended
March 31, 2012, is consistent, in all material respects, with the audited financial statements from
which it has been derived.
Emphasis of Matter
The District adopted GASB Statement No. 63, Financial Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position and GASB Statement No. GASB
Statement No. 65, Items Previously Reported as Assets and Liabilities during the year ended
March 31, 2013. Statement No. 63 added new classifications on the statements of net position
and changed net assets to net position. Statement No. 65 changed the classifications of certain
items on the statement of position to the new classifications contained in GASB Statement
No 63. The adoption of this statement had no effect on any of the District’s net positions or fund
balances as of and for the year ended March 31, 2013, except for a prior period adjustment
associated with bond issuance costs.
Retrospective Adjustment
As discussed in Note 12 to the financial statements, the District has adjusted its fiscal year 2012
financial statements to retrospectively apply the implementation of GASB Statements No. 63 and
65. Our opinion is not modified with respect to this matter.
Other Matters
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the required supplementary information listed in the
table of contents be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
- 2 -
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
(See independent auditor’s report)
- MD&A 1 -
MANAGEMENT DISCUSSION AND ANALYSIS
This section of the McHenry County Conservation District’s Comprehensive Annual Financial Report presents
management’s discussion and analysis of the District’s financial activity during the fiscal year ended March 31,
2013. As the management of the District, we welcome this opportunity to offer readers this narrative overview
and analysis designed to focus on current activities, comparative changes and currently known facts. For a more
complete perspective of the District’s financial condition, please read this discussion and analysis in conjunction
with the District’s basic financial statements and footnotes.
PROFILE OF THE DISTRICT
Created by a group of ecologically conscientious citizens in 1971 and supported by the Illinois Conservation
District Act of 1963, the McHenry County Conservation District began with the mission to preserve open space,
and to provide environmental education programs and resources for recreational opportunities to the public.
Forty-two years later, the McHenry County Conservation District (MCCD) continues as a special district
governed by a seven-member Board of Trustees appointed by the McHenry County Board.
MCCD has its own taxing authority to accomplish its mission of preservation, education, and recreation. The
majority of funding for the District’s operations is generated through a General Fund (‘Corporate’) tax levy and
is limited to 1/10th of one percent of the assessed value of all properties in McHenry County. The District also
has the statutory authority to issue both referendum and non-referendum debt for the purposes of land
acquisition, site improvements and the protection and restoration of wildlife and natural habitats. The funding
requirements for the levy and budget are guided by District goals and objectives, which are approved by the
MCCD Board of Trustees.
FINANCIAL HIGHLIGHTS
The key financial highlights for fiscal year 2013 are as follows:
The total net position of the District, the amount by which assets plus deferred outflows of resources
exceeds liabilities plus deferred inflows of resources, was $106,055,966 as of March 31, 2013 and includes:
o $10,609,893 is unrestricted and available to meet the on-going needs of the agency.
o $2,512,344 is restricted for specific purposes
o $92,933,729 is the net investment in capital assets.
The District’s net position increased by $4,907,625 or 4.9% during the fiscal year. This is the amount by
which total revenues exceeded total expenses for the reporting period.
As of March 31, 2013, the District’s governmental funds reported a combined ending fund balance of
$14,986,699. This is a decrease of $2,132,083 from the prior year and is largely the result of the District
expending approximately $2.5 million dollars for land acquisitions, site improvements and natural
restorations.
Approximately $628,111 dollars were expended to acquire 39.9 acres of land and an additional $1.9 million
dollars were expended for site and trail improvements and natural restoration projects.
$12,474,355 or 83.2% of the combined ending fund balance constitutes unrestricted fund balance. The
District has ‘committed’ or ‘assigned’ $8.1 million dollars of the unrestricted fund balance for future land
acquisitions and site improvements.
(See independent auditor’s report)
- MD&A 2 -
The District’s equalized assessed value (EAV) for all taxable properties declined from $8,842,348,966 to
$7,907,055,158 or by 10.6% during the fiscal year. This is the third consecutive year that the EAV has
decreased significantly, with the EAV falling 9.1% and 6.8% during the previous two years.
Due to the falling EAV, the District’s legal debt margin was reduced from $9,850,520 as of March 31st,
2012 to a ‘negative’ ($1,368,299) for the reporting fiscal year ended March 31st, 2013. (The District had no
statutory capacity to issue any type of debt as of March 31st, 2013.)
OVERVIEW OF THE FINANCIAL STATEMENTS
The McHenry County Conservation District’s basic financial statements comprise three components: 1)
District-wide Financial Statements; 2) Fund Financial Statements; and 3) Notes to the Financial Statements.
Required Supplementary Information is included in addition to the basic financial statements.
District-wide Financial Statements are designed to provide readers with a broad overview of the District’s
finances, in accordance with full accrual accounting concepts, in a manner similar to a private-sector business.
Revenues are recognized as soon as they are earned, and expenses are recognized as soon as a liability is
incurred, regardless of the timing of the cash flows.
The statement of net position presents information on all of the District’s assets plus deferred outflows of
resources and liabilities plus deferred inflows of resources, with the difference between the two reported as the
net position. ([assets + deferred outflows of resources] – [liabilities + deferred inflows of resources] = net
position) Certain revenues and expenses are reported in this statement for items that will only result in cash
flows in future fiscal periods such as uncollected taxes and earned but unused vacation leave. Over time,
increases and decreases in the net position may serve as a useful indicator of whether the financial position of
the District is improving or deteriorating.
The statement of activities presents information showing how the District's net position changed during the most
recent fiscal year. All changes in the net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows.
The District-wide Financial Statements can be found on pages 4 and 5 of this report.
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 District, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The District has only one type of fund: governmental funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities
in the District-wide Financial Statements. However, governmental fund financial statements focus on near-term
inflows and outflows of expendable resources, as well as on the balance of expendable resources available at the
end of the fiscal year. This information is useful in evaluating the District’s near-term financial position.
Because the focus of governmental funds is narrower than that of the District-wide Financial Statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the District-wide Financial Statements. By doing so, readers may better understand
the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenue, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
(See independent auditor’s report)
- MD&A 3 -
The District maintains six individual governmental funds. Information is presented separately in the
governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balance for the
General Fund, Debt Service Fund, Dedicated Projects Fund and Capital Projects Fund, which are considered to
be major funds. Information for the Insurance Special Revenue Fund and the Natural Restorations Special
Revenue Fund have been combined and are presented in the non-major caption in the financial statements.
The Governmental Fund Financial Statements can be found on pages 6-8 of this report.
Notes to the Financial Statement provide additional information that is essential to a full understanding of the
data provided in the District-wide and Fund Financial Statements.
The Notes to the Financial Statements can be found on pages 10-31 of this report.
Required Supplementary Information is presented concerning the District’s General Fund budgetary schedule,
as well as the funding progress and employer contributions for the Illinois Municipal Retirement Fund (IMRF)
and Other Postemployment Benefits Plan. The District adopts an annual appropriated budget for its General
Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance
with this budget. The IMRF and Other Postemployment Benefits Plan schedules have been provided to present
IMRF’s and the District’s progress in funding its obligation to provide pension and other postemployment
benefits to District employees.
Required supplementary information can be found on pages 32-37 of this report.
DISTRICT-WIDE FINANCIAL ANALYSIS:
The District-wide Financial Statements include all governmental and proprietary activities of a government.
The District has only governmental activities and no proprietary activities, therefore only governmental
activities are reported in the Government-wide Financial Statements.
Statement of Net Position. As noted earlier, the net position may serve over time as a useful indicator
of the District’s financial position. As of March 31, 2013 the District’s assets and deferred outflows of
resources exceeded liabilities and deferred inflows of resources by $106,055,966. This is an increase of
$4,907,625 or 4.9% over the previous year and is explained in detail in the ‘Change in Net Position’
section of this report.
(See independent auditor’s report)
- MD&A 4 -
The table on the next page reflects a condensed comparative Statement of Net Position.
District's Net Position
As of March 31, 2013, 2012 and 2011
2013 2012 2011
Assets
Current assets 35,145,987$ 36,970,057$ 41,190,503$
Capital assets 232,430,525 230,398,519 226,861,587
Total Assets 267,576,512 267,368,576 268,052,090
Defferred Outflows of Resources
None - - -
Total deferred outflow of resources - - -
Liabilities
Current and other liabilities 1,941,094 1,920,269 2,510,726
Long term liabilities 140,209,939 145,175,246 151,225,756
Total liabilities 142,151,033 147,095,515 153,736,482
Defferred inflows of Resources
Unavailable revenue- property tax 19,369,513 19,124,720 18,775,623
Total deferred inflow of resources 19,369,513 19,124,720 18,775,623
Net Position
Net investment in capital assets 92,933,729 85,900,708 78,570,784
Restricted 2,512,344 2,468,915 1,824,552
Unrestricted 10,609,893 12,778,718 15,144,649
Total net position 106,055,966$ 101,148,341$ 95,539,985$
Current assets include cash, short- term investments, deferred charges and receivables of the District. The total
current assets decreased by $1,824,070 or 4.9% during the current fiscal year. The decrease is largely the result
of $2.5 million dollars expended on land acquisitions, site and trail improvements, and natural restoration
initiatives.
Capital assets included land and land improvements, buildings and improvements, fixtures and equipment and
vehicles. Capital assets increased by $2,032,006 or .9% and will be discussed further in the Capital Asset
section.
Current and other liabilities include accounts payable, accrued liabilities, interest payable and unearned revenue.
Current liabilities increased by $20,285 or 1.1% over the prior period. The increase is largely the result of the
following:
The District’s accounts payable increased by $48,132 over the prior period. This is simply the result of
the timing of the receipt of invoices and the payment of expenses for the fiscal year ended March 31st,
2013.
The District received $116,306 in farm rents in March of 2012 which were prepayments of rents due
and payable for the fiscal year ending March 31, 2013. These rents were recognized as revenue during
the current reporting period and as such, prepaid rents (unearned revenue) decreased respectively.
The District received $42,080 dollars for mitigation work that was not completed as of March 31, 2013.
The income was reported as Unearned Revenue increasing current liabilities accordingly for the current
reporting period.
(See independent auditor’s report)
- MD&A 5 -
Real estate taxes payable increased by approximately $23,000.
Accrued payroll, which includes wages earned, but not actually paid, increased by $4,136.
Interest payable decreased by $42,395 which is the result of the District continuing to pay down the
principal balance of its outstanding general obligation bonds.
Long-term liabilities consist of debt in the form of general obligation bonds and the related unamortized
premium as well as an installment contract for a land acquisition. Long-term liabilities decreased by $4.9
million dollars or 3.4% from the prior year and will be discussed in more detail in the Long-term Debt section
below.
Deferred inflows of resources includes property taxes levied in September of 2012, but that were not collected
until after March 31, 2013. In prior years, these taxes were reported in the ‘Liability’ section of the report with
the title of ‘Deferred Revenue’. Because the District will not receive the property taxes associated with the 2012
levy until the next fiscal year, the tax revenues cannot be utilized to finance expenditures of the reporting period
ending March 31, 2013. As such, GASB 65 requires that these no longer be reported as a liability, but as a
Deferred Inflow of Resources. For comparative purposes, all three years have been restated accordingly. The
total deferred property taxes increased by $244,793 or 1.3% over the prior year. The increase is largely due to
the tax levy increase of $244,732 within the District’s Debt Service Fund which was required to make the
contractual payments on the District’s outstanding General Obligation bonds.
The largest portion of the District’s net position is the $92,933,729 invested in capital assets (net of related debt)
and accounts for 87.6% of total net position. Assets invested in capital assets (net of related debt) increased $7.
million dollars or 8.2% over the prior period. The change in capital assets (net of related debt) includes the
following:
The District paid down its outstanding General Obligation bonds by $4.9 million dollars.
Depreciation expense for capital assets was $1.9 million dollars for the fiscal year.
$2.5 million dollars, from non-debt related sources, was invested into site and trail improvements and
land acquisitions. An additional $850,240 was invested into equipment, vehicles and building
improvements.
$495,594 dollars of capital asset were ‘retired’ (sold or disposed of) during the fiscal year.
Although the District’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 of the District’s net position; $2,512,344 or 2.4%, represents resources that are subject to
restrictions on how they may be used. The portion of the net position that is restricted includes assets held for
the specific purposes of tort liability, scholarships, natural restoration mitigation agreements and debt service.
The restricted portion of the net position increased by $43,429 dollars or 1.8%, which is largely the ‘net’
revenue (revenue less related expenditures) recognized during the reporting period from wetland mitigation
agreements the District has entered into. Under the mitigation agreements, the District receives revenue to cover
both the upfront costs of restoring specific wetland areas, as well as providing for their long term maintenance
needs. As such, the associated net position is restricted for the mitigation purposes.
The remaining balance of $10.6 million dollars of unrestricted net position represents the portion of net assets
that have no restrictions and are available to meet the District’s ongoing obligations to citizens and creditors.
This is a $2.2 million dollar decrease from the prior period and represents the amount by which total expenses
exceeded total revenues, less the amount invested in capital (net of related debt), for the reporting period. The
(See independent auditor’s report)
- MD&A 6 -
District is able to report positive balances in all three categories of net position which is consistent with the last
several reporting periods.
The Statement of Net Position can be found on page 4 of the audited financial statements.
Change in Net Position. The Following table summarizes the District’s Change in Net Position for the current
reporting and prior reporting periods ended March 31, 2013, 2012 and 2011.
District's Change in Net Position
For the Fiscal Years Ended March 31, 2013, 2012 and 2011
2013 2012 2011
Revenues
Charges for services 1,812,495$ 2,533,472$ 1,584,796$
Grant revenues 427,427 266,190 834,259
Tax revenues 19,457,061 19,093,307 18,618,238
Other sources 615,031 685,504 389,083
Total Revenues 22,312,014 22,636,180 21,607,415
Governmental activities
General governmental 1,792,437 1,664,297 1,577,512
Operation and programs 8,503,359 7,934,298 7,824,053
Land develop & acquisition 242,379 287,629 585,681
Interest on debt 6,866,214 7,141,600 7,203,457
Total expenses 17,404,389 17,027,824 17,190,703
Change in net position 4,907,625 5,608,356 4,416,712
Net position April 1st 101,148,341 95,539,985 92,088,504
Prior period adjustments - - (965,231)
Net position- April 1st restated 101,148,341 95,539,985 91,123,273
Net position March 31st 106,055,966$ 101,148,341$ 95,539,985$
In prior reporting periods, the costs associated with the issuance of the District’s General Obligations had been
reported as an asset, net of the accumulated annual amortization expense. Starting with this fiscal year ending
March 31, 2013, GASB 65 requires that the related bond issuance costs be considered a current period outflow
of resources and fully expensed in the fiscal year that the bonds were issued. Therefore, the District is showing
a prior period adjustment for $965,231 the total amount of the unamortized issuance costs for the fiscal period
ending March 31, 2011, and restating the Statement of Net Position accordingly.
(See independent auditor’s report)
- MD&A 7 -
Governmental Activities. The revenues and expenditures resulting from the District’s operations are discussed
below. The following table shows a comparative summary of revenues for the District for the fiscal years ended
March 31st, 2013, 2012 and 2011.
District's Comparative Statement of Revenues
For the Fiscal Years Ended March 31, 2013, 2012 and 2011
% Change
2013 vs 2012 2013 2012 2011
Revenues
Tax revenues 1.9% 19,457,061$ 19,093,307$ 18,618,238$
Grants 60.6% 427,427 266,190 832,136
Rental income -2.2% 1,286,772 1,315,966 973,113
Programs & services -56.8% 525,723 1,217,506 611,683
Investment income -6.8% 53,755 57,707 181,039
Contributions -16.5% 503,642 602,841 2,123
Miscellaneous -26.3% 34,650 47,028 350,686
Gain (loss) on disposal assets -35.5% 22,984 35,635 38,397
Total Revenues -1.4% 22,312,014$ 22,636,180$ 21,607,415$
Tax Revenues: Total tax revenues were $19,457,061 for the fiscal year and include property taxes revenues of
$19,286,175 and personal property replacement taxes of $170,886. Collectively, tax revenues make up 87.2%
of the District’s total revenue for the fiscal year. Total tax revenues increased $363,754 or 1.9% over the prior
period and include the following changes:
The General Fund’s property tax revenue increased by $129,451 or 1.8%.
The Debt Service Fund’s property tax revenue increased by $222,189 or 1.9%.
The Insurance Fund’s property tax revenues increased by $13,589 or 6.3%.
Personal property replacement tax revenue decreased by $1,475 or -.9%.
When the ‘one-time’ sources of grant revenues, contributions, and gain on disposal of capital assets are excluded
from total revenues, the property tax revenues account for 90.3% of total on-going revenues. The District’s
General Fund and Insurance Fund property tax levies (which collectively makeup the Aggregate Levy) are
limited by the Illinois Property Tax Extension Limitation Laws (PTELL). This limits the District’s ability to
increase the Aggregate levy to the change in the Consumer Price Index during the previous calendar year. Over
the last ten years, this statutory limitation has been significantly offset by new development within McHenry
County which has allowed the District’s tax levy and associated revenue to exceed what would otherwise be
available under the PTELL. However, during the last three most recent years, there has been a significant
decline in new development, resulting in a substantial reduction of associated tax revenues. For the period
ended March 31st, 2013, the new development within McHenry County provided a potential tax levy increase of
just $27,231 dollars, which was $10,981 less than the previous year.
Rental Income: 97% of the rental income is derived from over 5,900 acres of land that is leased to farmers and
is actively under some type of agricultural production. The District’s farm lease program works with farmers to
incorporate conservation oriented principals into their farming practices. The conservation farm lease program
uses the commodities market value of the corn and projected yield of each individual farm to determine the
corresponding annual lease value of the property. Therefore, the amount of rental income the District receives
will fluctuate annually with changes in the commodity price of corn.
(See independent auditor’s report)
- MD&A 8 -
Investment Income: Investment income fell by $3,952 or 6.8% percent from the prior year. This is due to
expending $3.3 million dollars on land acquisitions, site and trail developments, building improvements and
other capital outlays which reduced cash and investment balances. Additionally, investment yields remained at
historically low levels during the reporting period.
Grant Revenues: Grant revenues recognized during the fiscal year were $427,427 dollars which is a 60.6%
increase over the prior year. Substantially all grant revenues are related to specific land acquisitions, site and
trail improvements or new natural restoration initiatives. As such, the grant related revenues fluctuate from
year-to-year, depending on the projects identified by the District, their success at attracting available grant
funding, and their ability to make progress on particular projects during the reporting period. The grant
revenues do not significantly impact the financial performance of the District as the District does not rely on
grant revenues to support its on-going operations.
Contributions: Contributions are a one-time source of funding and as such or not considered as part of the on-
going revenues which support the operations of the District. Total contributions for the reporting period were
$503,642 dollars.
Gain on Disposal of Capital Assets: The District reported $22,984 of gains on the disposition of fixed assets
for the reporting period. The majority of this revenue is derived from the sale of vehicles that are fully
depreciated. The District has a comprehensive Capital Asset Management Plan (CAMP) that provides for the
replacement of four to six vehicles on an annual basis. The sale of assets is not a regular or significant source of
revenue for the District.
Expenses: The following table shows a comparative summary of expenses for the District for the fiscal years
ended March 31st, 2013, 2012 and 2011.
District's Comparative Statement of Expenses
For the Fiscal Years Ended March 31, 2013, 2012 and 2011
% Change
2013 vs 2012 2013 2012 2011
General government 7.7% 1,792,437$ 1,664,297$ 1,577,512$
Operations & services 7.2% 8,503,359 7,934,298 7,824,053
Land development & acquisition -15.7% 242,379 287,629 585,681
Deb service Debt service -3.9% 6,866,214 7,141,600 7,203,457
Total Expenses 2.2% 17,404,389$ 17,027,824$ 17,190,703$
Expenses:
The costs of materials, supplies and services utilized by the District in carrying out its mission and daily
operations, are directly impacted by inflationary pressures. The change in the Consumer Price Index on a
national level, which is the most widely accepted measure of inflation, was 2.5% for the calendar year ended
December 31, 2012. While the District does realize some benefit from this moderate level of inflation, there are
numerous other issues that impact the operational costs of the District. Some of the more significant issues
include:
(See independent auditor’s report)
- MD&A 9 -
General Government and Operations & Services
The District took a part-time Accounting Assistant position to fulltime during the fiscal year. The total
associated costs were approximately $20,000.
The Natural Resource Management Department has four fulltime Restoration Technicians. In prior
years, the cost of the health insurance benefits related to the positions was paid for out of the related
Special Revenue Fund. For fiscal year 2013, and all future years, the cost of the benefits are paid for
out of the General Fund and allocated to the department accordingly.
Employee related expenses, such as wages and benefits, make up almost 70% of the District’s total
operating costs. Employees received a 2% combined economic and merit-based wage increase at the
beginning of the 2013 fiscal year, which was consistent with most other employers within the region.
Additionally, the District completed a compensation study during the year and found that its
compensation structure was 4-9% below the average of other area employers. In order to move the
District’s compensation structure closer to the market, all the salary ranges were increased by 3%. The
total cost of these wage adjustments were approximately $95,550 dollars.
The District provides health, dental, vision and life insurance for its employees. Employees are required
to pay a portion of the related premiums and the amount of their cost sharing is dependent on the
individual plan they select. The District’s net cost of related insurance increased approximately 2.8%
over the previous period.
The District has made significant investments in its computer infrastructure during the last several years
as well as numerous other capital improvements. The depreciation expense related to these capital
investments, continue to grow accordingly. Total depreciation expense increased by $192,686 over the
previous year.
Fuel costs rose approximately 6% over the previous year, far exceeding the 2.5% growth of the CPI.
Land Development and Acquisition
The costs related to land development and acquisition have decreased by $45,250. The remaining
principal bond proceeds were fully expended in the previous fiscal year ending March 31, 2012,
resulting in considerably less available funding for land acquisitions in the current reporting period.
Therefore, there were significantly less land acquisition related expenditures during the current
reporting period. As the District continues to acquire land, develop sites and trails for public use, and
restore its natural areas, the costs to manage and maintain these efforts will continue to rise
proportionately. The District has accelerated its efforts to develop sites and trails and open land to
public access over the last several years. Some of the more significant accomplishments are highlighted
in the Capital Assets and Long-Term Debt Activity section which can be found on pages 14-16 of this
MD&A report.
Debt Service
The total interest expense to service the District’s outstanding debt decreased by $275,386 or 3.9% from
the previous year. This is the result of the District making its annual contractual principal payments on
the General Obligations bonds which reduced the outstanding debt by approximately $4.9 million
dollars during the 2013 fiscal year.
(See independent auditor’s report)
- MD&A 10 -
The following chart shows the operational expenses by major operating department as a percentage of total
governmental activities. In order to better illustrate the allocation of resources by operational department,
expenses related to land acquisition and development and interest on debt have been intentionally omitted.
General Govt.
17%
Education
8%
Police & Safety
13%
Land & Facilities
Management24%
Natural Resource
Management15%
Wildlife
Resources2%
Planning &
Developmnt14%
Communications
4%Research
Field Station
1%
Lost Valley Visitor
Center2%
Expenses by Operational DepartmentFiscal Year Ended March 31, 2013
(See independent auditor’s report)
- MD&A 11 -
GOVERNMENTAL FUND FINANCIAL ANALYSIS:
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The focus of the District’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s
financial condition.
The general government functions are presented in the General, Dedicated Projects, Debt Service, Capital
Projects, Natural Restorations, and Insurance funds.
As of the end of the 2013 fiscal year, the District’s governmental funds reported combined ending fund
balances of $14,986,699 which is a decrease of $2,132,083 from the prior year’s total of $17,118,782. The
decrease is largely the result of the District expending $2.5 million dollars of Fund Balance for land
acquisitions, trail and site improvements, natural restorations and other capital outlays. More detailed
explanations for changes in fund balance are provided in the narratives of the individual funds below.
General Fund
The General Fund is the main operating fund of the District. At the end of the reporting fiscal year, the total
fund balance of the General Fund was $4,389,010. This is a decrease of $66,229 or 1.49% from the previous
year and represents the amount by which revenues exceeded total expenses within the General Fund for the
reporting period. The decrease of the General Fund’s fund balance was anticipated and budgeted for. The entire
amount of this fund balance is ‘Unrestricted’ and ‘Unassigned’ and is available to meet the immediate needs of
the District.
As a measure of the General Fund’s liquidity, it may be useful to compare the unrestricted fund balance and
total fund expenditures. The General Fund’s ‘Unrestricted’ fund balance represents 48.2% of the total annual
fiscal year operating expenditures, including capital outlays, and is considered to be a very strong reserve
position by the District. This represents a small decrease from the previous year where the ‘Unrestricted’ fund
balance represented 51.4% of the total annual operating expenses.
Capital Projects Fund
The Capital Projects Fund provides for the majority of the District’s land acquisitions and site and trail
developments. It consists of investment earnings on the proceeds from a 2007 General Obligation Bond
issuance. (All of the principal bond proceeds have been fully expended.) The Capital Projects Fund’s fund
balance decreased by $1.9 million dollars during the current fiscal year. The reduction in fund balance is the
result of expending $1.9 million dollars for capital initiatives including; land acquisitions, site and trail
improvements, natural restorations and building improvements.
Debt Service Fund
Principal and interest payments on the District’s outstanding debt are made from the Debt Service Fund. The
debt service payments are made from the receipt of property tax revenues which are legally restricted for the
liquidation of the debt. As previously mentioned, the District issued $73 million dollars of general obligation
bonds during the 2007 calendar year. The bonds were issued through a referendum which stipulated that the
proceeds could only be used by the District to acquire land, improve and develop sites and facilities and protect
and restore natural habitats and wildlife. The Debt Service Fund’s fund balance decreased to $859,181 for the
reporting period. This represents a decrease of $18,753 from the prior period’s balance and is the result of
actual property tax receipts falling short of the amount levied. This District will attempt to collect this levy
shortfall in a future debt service levy.
(See independent auditor’s report)
- MD&A 12 -
Dedicated Projects Fund
The Dedicated Projects Fund was established to account for the assets generated from grant awards, other
unique revenue sources, and the investment income earned on these assets. The majority of the funding in this
account is derived from grant recoveries which are largely reimbursements grants, where the funding is received
after the completion of the project. As such, the District does not recognize the revenue until the projects are
completed and/or revenue can be recognized under the modified accrual basis of accounting. Grant related
projects include; land acquisitions, large and small-scale natural restoration projects, and the improvement and
development of sites, trails and facilities. Generally, the assets in this fund are not restricted externally; as the
grant recoveries are not received until all of the grant requirements have been satisfied. The District internally
has committed the use of the funds for capital projects which are similar in nature to the project from which the
grant recovery originated.
In Fiscal Year 2011, the District established a new Natural Restoration Special Revenue Fund. The Natural
Restoration Special Revenue Fund is considered a non-major fund and it is combined with the
Insurance/Liability Special Revenue Fund for reporting purposes. The fund was established to segregate the
reporting and accounting of the assets, liabilities and financial activities related to specific restoration initiatives,
most notably wetland mitigations. Prior to Fiscal Year 2011, these assets, liabilities and financial activities
were included within the Dedicated Accounts Fund.
The fund balance of the Dedicated Projects Fund decreased by $174,967 dollars or 3.2% from the prior year.
The decrease is largely the result of expending $522,721 for land acquisitions and site and trail improvements.
The decrease was anticipated and budgeted for accordingly. Because this fund is a ‘capital fund’, fluctuations in
the fund balance levels are expected, as the timing of the expense for capital projects will frequently not align
with the receipt of revenues.
Natural Resources Management- Special Revenue Fund
The Natural Restoration Special Revenue Fund is considered a non-major fund and it is combined with the
Insurance Special Revenue Fund for reporting purposes. The fund was established to improve the reporting and
accounting of the assets, liabilities and financial activities related to specific restoration initiatives, the most
significant of which are wetland mitigations. Prior to Fiscal Year 2011, these assets and activities were
accounted for within the Dedicated Accounts Fund. The majority of the funding in this account is presently
derived from mitigation fees whereby the District will enter into a contractual agreement with a third party to
‘mitigate’ developmental impacts that have been made to a wetland area. The agreements will require that the
third party pays a specified amount to the District and the District will be required to use those resources to
restore a wetland area on District owned property. Where the impacts affect waters which empty into an
interstate waterway, the agreements are overseen by the U.S. Army Corps of Engineers. If the impacted waters
are local and/or isolated, than the agreement would be administered by McHenry County or other public body
that is certified to implement the Stormwater Ordinance of McHenry County. Generally, the District will only
enter into a mitigation agreement when the wetland area to be restored has already been identified for restoration
by the District. This reduces the costs of both the initial restoration process as well as the long term
management of the site, leaving a substantial portion of the mitigation revenue to provide for the long term
maintenance needs of the restored site.
The Fund Balance grew by $69,219 or 4.9% and represents the amount by which total revenues exceeded
expenses within the fund. The growth of the Fund Balance is largely due to grant and mitigation revenues that
were received during the reporting period.
(See independent auditor’s report)
- MD&A 13 -
Insurance- Special Revenue Fund
The Special Revenue Fund is considered a non-major fund and provides for the District’s risk management and
loss control needs, including general and commercial liability insurance. The District is in its ninth year as a
member agency of the Park District Risk Management Association (PDRMA), which is an inter-governmental
insurance pool made up of 160 member agencies. Under PDRMA the District has enjoyed minimal annual
premium increases and has improved its risk management in day-to-day operations. During the current fiscal
year, expenditures exceeded revenues by $6,030 dollars and fund balance decreased respectively to $160,092.
The fund balance level is considered very strong, as it represents 68% of the fund’s total annual operating
expenses.
GENERAL FUND BUDGETARY HIGHLIGHTS
In May of each year, after a public hearing, the Board approves a fiscal year budget for all funds. The total
actual expenditures for the fiscal year 2013 were $9,112,523 which was $489,509 less than the total $9,602,032
which was budgeted for the period. This represents a 5.1% favorable total budget variance for the fiscal year
2013. A schedule of the General Fund’s Budget and Actual Expenditures can be found on pages 38-49 of this
report. Some of the more significant variances from budget include the following:
The Land & Facilities Department had several positions unfilled for portions of the reporting period.
The total actual related expense of wages and benefits related to the unfilled positions were $38,977
lower than the budgeted amounts.
Maintenance costs for buildings, roads and other infrastructure were $60,614 less than the budgeted
amounts. This includes several maintenance related projects that were not completed and were
budgeted for again in the fiscal year 2014 budget.
$71,043 was budgeted for trail resurfacing projects that were not completed. The projects were
budgeted for again in the fiscal year 2014 budget.
$22,000 was budgeted for the District to purchase a Microsoft Enterprise license agreement. This
expenditure was not made. The initiative was budgeted for again in the fiscal year 2014 budget.
$45,000 was budgeted for emergency and other unanticipated expenses, and was not expended.
The vehicle fuel expense was $22,000 under the budgeted amount. This is largely the result of the wide
price fluctuations of retail fuel over the last several years, which makes it very difficult to accurately
estimate the cost of fuel over the next budget cycle.
Utility expenses were $16,277 under the budgeted amount. This is also largely due to the price
fluctuations of the costs of utilities, which makes it difficult to accurately estimate the cost of fuel over
the next budget cycle.
$17,000 was budgeted to purchase an electronic time capture system for payroll. The purchase was not
made and the initiative has been budgeted for again in the fiscal year 2014 budget.
The Police Department had several positions unfilled for portions of the reporting period. The total
actual related expense of wages and benefits were $68,046 lower than the budgeted amounts.
(See independent auditor’s report)
- MD&A 14 -
CAPITAL ASSETS AND LONG-TERM DEBT ACTIVITY
Capital Assets. Below is a comparative summary of the District’s capital assets. The District’s financial
statements present capital assets in two groups: those assets subject to depreciation, such as buildings and
equipment, and those assets not subject to depreciation such as land and construction-in-progress.
District's Capital Assets (Net of Depreciation)
As of March 31, 2013, 2012 and 2011
2013 2012 2011
Capital assets, not being depreciated:
Land 204,641,148$ 203,957,860$ 201,250,064$
Construction in progress 2,875,692 2,913,539 3,389,163
Total capital assets not being depreciated 207,516,840 206,871,399 204,639,227
Capital assets being depreciated:
(net of depreciation)
Land improvements and roads 14,444,259 13,547,619 11,990,124
Buildings and improvements 8,456,240 8,502,992 8,841,616
Furniture and office equipment 844,272 653,295 475,437
Other equipment 197,929 203,277 167,190
Vehicles 970,985 619,937 747,993
Total capital assets being depreciated 24,913,685 23,527,120 22,222,360
Governmental activities capital assets, net of depr. 232,430,525$ 230,398,519$ 226,861,587$
The District’s investment in capital assets for governmental activities, net of accumulated depreciation at
March 31, 2013, was $232,430,525. This is an increase of $2,032,006 dollars or .9 % over the prior year. These
investments include land, land improvements (both completed and in progress), roads and improvements,
buildings, vehicles, and furniture and equipment. See note 4 in the Notes to the Financial Statements for further
information.
Major capital asset events during the current fiscal year included the following:
Site and Trail Improvements: $1.6 million dollars were expended on a variety of site and trail developments.
Some of the more significant accomplishments include:
Construction was completed on the site improvements on the Fel Pro RRR (Detrana Fen grant addition).
This is a 56 acre conservation site in Cary. Amenities include a restroom, permeable paver parking lot
and walkway, informational kiosk, recycling trash receptacles and rain gardens, native landscaping,
picnic shelter and a .35-mile asphalt trail loop with two educational/sensory stations; a rain maker and a
stone abacas. This new access connects to the existing 2.5 mile nature trail system.
Construction began on the site improvements for Boone Creek. This is a 633-acres conservation site
located between Rt. 120, Bull Valley Road and Cold Springs Road. The site helps to protect the
valuable resources of Boone Creek and its headwater stream system. The new site will offer an array of
recreational opportunities such as; hiking, picnicking, birding and horseback riding. Amenities include:
entrance drive/parking area, restroom, bike rack, shelter with observation deck, viewing scopes,
entrance sign, kiosk and will eventually provide nature trails for hiking.
Construction began on the site improvements for Dufield Pond - McConnell Road Access. The entire
site is 78-acres located within the City of Woodstock. Amenities include: entrance drive/parking area,
(See independent auditor’s report)
- MD&A 15 -
permeable paver patio with bike rack and unique benches, kiosk, .75-miles of nature trail for hiking
under the beautifully restored oak canopy and native prairie landscaping.
Natural Restoration Initiatives: Approximately $254,000 dollars were expended on a variety of natural
restoration projects. Some of the more significant accomplishments include the following:
At Goose Lake Conservation Area, an inline water control structure was installed to regulate water
levels in the main lake/marsh basin. This project involved close coordination with Ducks Unlimited, the
North American Waterfowl Conservation Grant Program and the Hebron Drainage District. The costs
were $15,000.
At High Point Conservation Area the District restored incised stream channels on four headwater
streams that feed the Alden Sedge Meadow Conservation Area further downstream. This was done by
installing several dozen riffle and pool structures that stabilize these channels and prevent future
erosion. The cost was $30,000 with over half being reimbursed by the USEPA’s 319 program.
At the Winding Creek Conservation Area brush removal and reseeding of approximately 5 acres of
prairie was completed as part of an acquisition and restoration grant from the Illinois Clean Energy
Foundation. The cost was $20,000 with half of that reimbursed by the grant.
At the Pleasant Valley Conservation Area a massive hydrological analysis of several hundred acres was
completed by the USACOE through a PAS206 grant program. The District contributed $35,000 to a
project that was $70,000 in scope. The resulting study will allow long term planning to occur that will
someday result in the restoration of a 500 acre marsh along the Kishwuakee River.
At Marengo Ridge Conservation Area a $40,000 private grant secured through the McHenry County
Conservation Foundation allowed a focused brush removal project to occur along Collins Road. The
managed size of high quality woodland area was doubled through this work.
At Coral Woods Conservation Area a mitigation project was completed for wetland fill violations by the
Prairie Materials Corporation in Riley Township. The District received reimbursement of $165,000 in
project costs to restore over 20 acres of wetland habitat.
Long-term Debt. At the end of the fiscal year the District had total debt outstanding of $137,765,000. This
includes $132,965,000 of General Obligation bonds and a $4,800,000 land acquisition installment contract. As
noted earlier, the District issued $73 million dollars of General Obligation Bonds during the fiscal year ending
March 31st, 2008. The bond issuance was approved through a referendum. The debt service payments for all of
the District’s bond debt are funded from a separate property tax levy which ensures the continued and timely
retirement of debt. The District currently holds a “Aaa” rating by Moody’s financial rating service. This is the
highest rating available by Moody’s and reflects the prudent financial management and strong financial position
of the District.
As of December 31st, 2012, the Equalized Assessed Valuation (EAV) of the District was certified at
$7,907,055,158. This is the EAV applicable to the current reporting period ending March 31, 2013 and reduces
the District’s maximum statutory debt limit from $152,530,520 as of March 31st, 2012, to $136,396,701 as of
March 31st, 2013. This is a $16.1 million dollar decrease from the prior year. With $137.8 million dollars of
debt outstanding as of March 31st, 2013, the District currently exceeds its maximum statutory debt limit and
therefore has no legal capacity to take on additional debt. Because the existing debt was issued within the
District’s legal debt capacity at that time of issuance, the District is not in violation of any statute and is
considered to be in good legal standing. The District anticipates that as the housing market continues to recover,
the EAV of McHenry County will recover with it, allowing them to regain some statutory debt capacity by the
(See independent auditor’s report)
- MD&A 16 -
2016 calendar year. See Note 6 in the Notes to the Financial Statements for further information about the
District’s debt.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The average unemployment rate for the District’s property tax base (McHenry County) fell from 9.4%
for the 2011 calendar year to 8.4% for the 2012 calendar year. While this is still a relatively high level
of unemployment by historical standards, it is still a very positive sign that McHenry County’s local
economy is starting to see meaningful improvement. Additionally, the County’s average unemployment
rate has remained below the State’s rate throughout the recession and more recent recovery years. The
State’s unemployment rate averaged 8.9% for the 2012 calendar year.
The U.S. Census Bureau estimates the population of McHenry County to be 308,145 as of December
31st, 2012. This is relatively unchanged from 308,944 as of December 31
st, 2011.
As previously mentioned, the Equalized Assessed Valuation (EAV) of the District was $7,907,055,158
as of December 31st, 2012. This represents a 10.6% decrease from December 31, 2011 EAV which was
$8,842,348,966. This is the third consecutive year where the District has realized a decrease in the EAV
of its property tax base. This is also consistent with a national trend of falling property values, and
minimal new residential and commercial construction. During the first of half the 2013 calendar year,
home values have realized significant increases on both a national and local county level. If this trend
continues, McHenry County should begin to see a return to growth of its EAV (which represent a three
year average of assessed values) during the 2015 or 2016 calendar year.
The District will continue to face challenges providing a consistent level of quality services and
programs. As the number of sites, trails, amenities, and natural areas have grown significantly over the
last five years, the associated operational costs have risen proportionately, but tax revenues have
remained relatively unchanged. The District’s ability to increase its General Fund’s levy is limited by
two statutory restrictions, as well as political pressures. The first is the Illinois Property Tax Extension
Limitation Laws. (PTELL). The PTELL limits the District’s levy increase to the lower of the change in
the Consumer Price Index for all Urban Consumers (CPI-U) for the prior year or 5%. For the levy
requested in September of 2011, which was collected as revenue during the 2013 fiscal year, the
applicable CPI- U change was 1.5%. For the next fiscal year ending March 31st, 2014, the applicable
maximum levy rate increase would have been 3%, however the District decided to follow the lead of the
McHenry County governing body (who also has final approval authority over the District’s budget) and
not increase its General Fund levy. This neutral levy further increases the financial challenges the
District faces over the next several years.
The second statutory restriction exists within the Illinois Conservation District Act and limits the
District’s maximum General Fund levy to 1/10th of 1% of the EAV of the County. The District
anticipates that the falling EAV will likely force the District to reduce its General Fund levy requests for
calendar year 2013 and 2014. As previously mentioned, if home values continue to rise at even a
moderate pace, the County should see a return of growth in the EAV by calendar year 2015 or 2016 at
the latest.
All of these factors, to the extent that they were known, were considered in preparing the District’s budget for
the 2014 fiscal year. The District has budgeted to reduce the General Fund’s reserve balance by $333,107
during the 2014 fiscal year.
(See independent auditor’s report)
- MD&A 17 -
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a
general overview of the District’s finances and to show the District’s accountability for the money it received.
We encourage all citizens to read the audited financial statements and hope that this reporting format will inform
our fellow citizens of the progress they have made toward “meaningful open space” in McHenry County, our
home. If you have questions about this report or need additional financial information, contact the McHenry
County Conservation District at 18410 U.S. Highway 14, Woodstock, Illinois 60098.
2013 2012
ASSETS
Cash and cash equivalents 15,506,825$ 17,777,721$
Property taxes receivable 19,369,513 19,124,720
Interest receivable 6,339 5,221
Other receivable 9,025 13,682
Due from other governments 254,285 48,713
Capital assets
Nondepreciable 207,516,840 206,871,399
Depreciable, net of accumulated depreciation 24,913,685 23,527,120
Total assets 267,576,512 267,368,576
DEFERRED OUTFLOWS OF RESOURCES
None - -
Total deferred outflows of resources - -
LIABILITIES
Accounts payable 328,423 280,291
Accrued liabilities 418,117 438,764
Interest payable 1,151,319 1,193,714
Unearned revenue 43,235 7,500
Noncurrent liabilities
Due within one year 5,706,648 5,188,768
Due in more than one year 134,503,291 139,986,478
Total liabilities 142,151,033 147,095,515
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 19,369,513 19,124,720
Total deferred inflow of resources 19,369,513 19,124,720
NET POSITION
Net investment in capital assets 92,933,729 85,900,708
Restricted for
Tort liability 160,092 166,122
Scholarships 16,167 15,807
Debt service 859,181 877,934
Land acquisition and site improvement 1,476,904 1,409,052
Unrestricted 10,609,893 12,778,718
TOTAL NET POSITION 106,055,966$ 101,148,341$
(with prior year totals for 2012)
March 31, 2013
STATEMENT OF NET POSITION
MCHENRY COUNTY CONSERVATION DISTRICT
See accompanying notes to financial statements.- 4 -
2013 2012
Net (Expense) Net (Expense)
Revenue and Revenue and
Change in Change in
Net Position Net Position
Operating Capital
FUNCTIONS/PROGRAMS Charges Grants and Grants and Governmental Governmental
Expenses for Services Contributions Contributions Activities Activities
PRIMARY GOVERNMENT
Governmental Activities
General government 1,792,437$ 1,352,001$ 2,131$ -$ (438,305)$ (295,835)$
Educational services 786,522 46,940 127 - (739,455) (745,214)
Police and safety services 1,380,822 - 25 - (1,380,797) (1,259,494)
Land and facilities management 2,411,810 - - - (2,411,810) (2,277,559)
Natural resources management 1,520,796 359,920 - 309,433 (851,443) (521,861)
Wildlife resource center 217,837 - 375 - (217,462) (221,129)
Planning and development 1,388,652 - - 361,900 (1,026,752) (852,210)
Communications 392,676 - - - (392,676) (358,715)
Land development and acquisition 242,379 - - 257,078 14,699 372,300
Trail of history 31,354 46,074 - - 14,720 5,533
Research field station 141,337 7,560 - - (133,777) (152,638)
Lost Valley visitor center 231,553 - - - (231,553) (176,899)
Interest on long-term debt 6,866,214 - - - (6,866,214) (7,141,600)
TOTAL PRIMARY GOVERNMENT 17,404,389$ 1,812,495$ 2,658$ 928,411$ (14,660,825) (13,625,321)
General Revenues
Taxes
Property 19,286,175 18,920,946
Replacement 170,886 172,361
Investment income 53,755 57,707
Miscellaneous 34,650 47,028
Gain on disposal of capital assets 22,984 35,635
Total 19,568,450 19,233,677
CHANGE IN NET POSITION 4,907,625 5,608,356
NET POSITION, APRIL 1 101,148,341 96,434,981
Prior period adjustment - (894,996)
NET POSITION, APRIL 1, RESTATED 101,148,341 95,539,985
NET POSITION, MARCH 31 106,055,966$ 101,148,341$
Program Revenues
(with prior year totals for the year ended March 31, 2012)
MCHENRY COUNTY CONSERVATION DISTRICT
STATEMENT OF ACTIVITIES
For the Year Ended March 31, 2013
See accompanying notes to financial statements.- 5 -
MCHENRY COUNTY CONSERVATION DISTRICT
BALANCE SHEET
March 31, 2013
Debt Capital Dedicated
General Service Projects Projects Nonmajor Total
ASSETS
Cash and cash equivalents 5,639,765$ 55,852$ 2,940,297$ 5,344,643$ 1,526,268$ 15,506,825$
Property taxes receivable 7,238,290 11,905,112 - - 226,111 19,369,513
Interest receivable - - - 6,339 - 6,339
Other receivables 9,025 - - - - 9,025
Due from other governmental units 40,386 - - 204,699 9,200 254,285
Due from other funds 300,549 808,550 - 420 213,883 1,323,402
Total assets 13,228,015$ 12,769,514$ 2,940,297$ 5,556,101$ 1,975,462$ 36,469,389$
None - - - - - -
Total deferred outflows of resources - - - - - -
13,228,015$ 12,769,514$ 2,940,297$ 5,556,101$ 1,975,462$ 36,469,389$
LIABILITIES
Accounts payable 164,966$ -$ 58,043$ 51,623$ 53,791$ 328,423$
Accrued liabilities 418,117 - - - - 418,117
Due to other funds 1,017,632 5,221 19,096 269,479 11,974 1,323,402
Unearned revenue - - - - 43,235 43,235
Total liabilities 1,600,715 5,221 77,139 321,102 109,000 2,113,177
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 7,238,290 11,905,112 - - 226,111 19,369,513
Total deferred inflows of resources 7,238,290 11,905,112 - - 226,111 19,369,513
8,839,005 11,910,333 77,139 321,102 335,111 21,482,690
FUND BALANCES
Restricted
Debt service - 859,181 - - - 859,181
Tort liability - - - - 160,092 160,092
Scholarships - - - 16,167 - 16,167
Land acquisition and site improvements - - - - 1,476,904 1,476,904
Unrestricted
Committed
Land acquisition and site improvements - - - 5,218,832 - 5,218,832
Assigned
Land acquisition and site improvements - - 2,863,158 - 3,355 2,866,513
Unassigned 4,389,010 - - - - 4,389,010
Total fund balances 4,389,010 859,181 2,863,158 5,234,999 1,640,351 14,986,699
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCES 13,228,015$ 12,769,514$ 2,940,297$ 5,556,101$ 1,975,462$ 36,469,389$
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES
ASSETS AND DEFERRED OUTFLOWS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
GOVERNMENTAL FUNDS
OF RESOURCES
DEFERRED OUTFLOWS OF RESOURCES
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
See accompanying notes to financial statements.- 6 -
FUND BALANCES OF GOVERNMENTAL FUNDS 14,986,699$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are
not financial resources and, therefore, are not
reported in the governmental funds 232,430,525
Long-term liabilities are not due and payable in the
current period and, therefore, are not
reported in the governmental funds
Bonds and installment contract payable (137,765,000)
Unamortized premium on bonds issued (1,865,461)
Unamortized loss of refunding 133,665
Compensated absences (667,347)
Net other postemployment benefits obligation (45,796)
Interest payable (1,151,319)
NET POSITION OF GOVERNMENTAL ACTIVITIES 106,055,966$
March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION
See accompanying notes to financial statements.- 7 -
MCHENRY COUNTY CONSERVATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended March 31, 2013
Debt Capital Dedicated
General Service Projects Projects Nonmajor Total
REVENUES
Taxes
Property 7,299,335$ 11,758,839$ -$ -$ 228,001$ 19,286,175$
Intergovernmental revenue 172,486 - - 322,693 103,134 598,313
Charges for services 161,197 - - - 359,920 521,117
Rental income 1,291,378 - - - - 1,291,378
Investment income 34,688 2,254 2,007 13,437 1,369 53,755
Donations 1,738 - - 139,084 920 141,742
Miscellaneous 30,589 - - 4,061 - 34,650
Total revenues 8,991,411 11,761,093 2,007 479,275 693,344 21,927,130
EXPENDITURES
Current
General government 1,531,959 1,742 - - 234,033 1,767,734
Educational services 731,936 - - - - 731,936
Police and safety services 1,272,910 - - - - 1,272,910
Land and facilities management 2,186,364 - 17,250 - - 2,203,614
Natural resources management 1,270,069 - 46,000 - 188,067 1,504,136
Wildlife resource center 212,057 - - - - 212,057
Planning and development 290,706 - 1,154,171 - - 1,444,877
Communications 383,854 - - - - 383,854
Land development and acquisition - - 719,909 102,707 - 822,616
Trail of history 31,354 - - - - 31,354
Research field station 140,064 - - - - 140,064
Lost Valley visitor center 211,010 - - - - 211,010
Debt service
Principal retirement - 4,915,000 - - - 4,915,000
Interest - 6,863,104 - 131,521 - 6,994,625
Capital outlay 850,240 - - 420,014 208,055 1,478,309
Total expenditures 9,112,523 11,779,846 1,937,330 654,242 630,155 24,114,096
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (121,112) (18,753) (1,935,323) (174,967) 63,189 (2,186,966)
OTHER FINANCING SOURCES (USES)
Sale of capital assets 54,883 - - - - 54,883
Total other financing sources (uses) 54,883 - - - - 54,883
NET CHANGE IN FUND BALANCES (66,229) (18,753) (1,935,323) (174,967) 63,189 (2,132,083)
FUND BALANCES, APRIL 1 4,455,239 877,934 4,798,481 5,409,966 1,577,162 17,118,782
FUND BALANCES, MARCH 31 4,389,010$ 859,181$ 2,863,158$ 5,234,999$ 1,640,351$ 14,986,699$
See accompanying notes to financial statements.- 8 -
NET CHANGE IN FUND BALANCES -
TOTAL GOVERNMENTAL FUNDS (2,132,083)$
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. 3,636,111
Contributions of capital assets are reported only on the statement of activities 361,900
A loss on the sale of capital assets is reported only on the statement
of activities. (31,899)
The repayment of long-term debt is reported as an expenditure when due
in governmental funds but as a reduction of principal outstanding in the
statement of activities. 4,915,000
Changes in interest payable are reported only in the statement
of activities. 42,395
Governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items.
Amortization of premium on bonds issued 160,083
Amortization of loss on refunding (74,067)
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in governmental funds.
Change in compensated absences (29,784)
Change in net other postemployment benefits obligation (5,925)
Depreciation (1,934,106)
CHANGES IN NET POSITION OF GOVERNMENTAL ACTIVITIES 4,907,625$
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE
See accompanying notes to financial statements.- 9 -
- 9 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the McHenry County Conservation District (the District) 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 governmental accounting
and financial reporting principles. The more significant of the District’s accounting
policies are described below.
a. Reporting Entity
The District was established by the voters of McHenry County in 1971. Its purpose,
as defined, by the state statutes, is to acquire and maintain land as open space for
preservation, education, and recreation. The District is governed by a seven-member
Board of Trustees who are appointed by the McHenry County Board. The District
has authority to levy taxes and receives federal and state grants for land acquisition
and development.
In evaluating how to define the reporting entity, management has considered all
potential component units as required by generally accepted accounting principles.
The decision to include a potential component unit in the reporting entity was made
based upon the significance of their operational or financial relationships with the
District. The District has determined there are no component units required to be
reported in the District’s financial statements. The District is considered by
McHenry County (the County) to be a component unit of the County and is included
in the financial statements of the County.
b. Fund Accounting
The accounts of the District are organized and operated on the basis of funds. Funds
are independent fiscal and accounting entities with self-balancing sets of accounts.
Fund accounting segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with finance-related legal and
contractual provisions. A minimum number of funds are maintained for this
purpose.
- 10 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 10 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Fund Accounting (Continued)
The following fund categories are used by the District:
Governmental funds are used to account for the District’s general activities. The
General Fund is the primary operating fund; accounting for all financial resources not
required to be accounted for in another fund. Special Revenue Funds account for and
report the proceeds of specific revenue sources that are legally restricted or committed
to expenditure for specific purposes other than debt service or capital projects. The
Debt Service Fund accounts for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest. Capital Projects
Funds account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition and construction
of capital facilities and other capital assets.
c. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the
District. The effect of material interfund activity has been eliminated from these
statements. 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 expenses 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
contributions 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. Special items are significant
transactions within the control of management that are either unusual in nature or
infrequent in occurrence.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
- 11 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 11 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Government-Wide and Fund Financial Statements (Continued)
The District reports the following major governmental funds:
The General Fund is the District’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The Debt Service Fund is used to account for the payment of principal and
interest on the District’s bonds, funded by an annual property tax levy.
The Dedicated Projects Fund is used to account for financial resources restricted,
committed or assigned for specific acquisitions or projects.
The Capital Projects Fund is used to account for restricted, committed or assigned
financial resources, including bond proceeds, to be used for the acquisition or
construction of major capital facilities other than those financed by proprietary,
special assessment, or trust funds.
The District reports the following nonmajor governmental funds:
The Insurance Fund is used to account for the collection and disbursement of
restricted monies for third-party indemnity insurance coverage.
The Natural Resources Fund is used to account for the collection and disbursement
of restricted wetland mitigation monies.
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. Revenues are recorded when
earned and expenses 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.
- 12 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 12 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a fund liability is incurred. However, debt service expenditures are recorded only when payment is due.
The District reports unearned revenue on its financial statements. Unearned revenues
arise when potential revenue does not meet both the measurable and available criteria for recognition in the current period, under the modified accrual basis of accounting, or is measurable but not earned under the accrual basis of accounting. Unearned revenues also arise when resources are received by the District 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. In subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim to the resources, the liability for unearned revenue is removed from the financial statements and revenue is recognized.
e. Cash and Cash Equivalents The District considers all highly liquid investments with an original maturity of three
months or less when purchased and all certificates of deposit regardless of maturity to be cash equivalents.
f. Investments
Investments with a maturity of less than one year when purchased and nonnegotiable certificates of deposit are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is based on prices listed on national exchanges as of March 31 for debt and equity securities. Mutual funds, investment funds, and insurance separate accounts are valued at contract value as of March 31.
g. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”
- 13 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 13 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
h. Prepaid Items/Expenses
Payments made to vendors for services that will benefit periods beyond the date of this
report, if any, are recorded as prepaid items/expenses.
i. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.,
bike trails, paths, roads, bridges, 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 District as assets with an initial, individual
cost of more than $5,000 and an estimated useful life in excess of two years. 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 that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Property, plant, and equipment are depreciated using the straight-line
method over the following estimated useful lives:
Assets Years
Buildings and improvements 20
Land improvements 15
Roads 40
Furniture and equipment 5-10
Office equipment 5
Vehicles 5
j. Compensated Absences
District employees accumulate vacation and sick leave hours for subsequent use or
payment upon termination, death, or retirement. Up to a maximum of 30 working days
of earned vacation pay and a percentage (based on length of employment) of sick leave
may be paid upon termination of employment.
Vested or accumulated vacation and sick leave are reported as expenditures and a fund
liability of the governmental fund that will pay it once retirement or separation has
occurred. Vested or accumulated vacation and sick leave of governmental activities
are recorded as an expense and liability as the benefits accrue to employees.
- 14 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 14 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
k. Long-Term Obligations
In the government-wide financial statements and proprietary funds 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
financial statements. Bond premiums and discounts and gains/losses on refunding are
deferred and amortized over the life of the bonds. Bonds payable are reported net of the
applicable bond premium or discount. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as expenditures in the period incurred.
In the fund financial statements, governmental funds 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 from the actual debt
proceeds received, are reported as expenditures in the period incurred.
l. Net Positions/Fund Balances
In the fund financial statements, governmental funds report nonspendable fund balance
for amounts that are either not in spendable form or legally or contractually required to
be maintained intact. Restrictions of fund balance are reported for amounts
constrained by legal restrictions from outside parties for use for a specific purpose, or
externally imposed by outside entities. None of the restricted fund balance result from
enabling legislation adopted by the District. Committed fund balance is constrained by
formal actions of the District’s Board, which is considered the District’s highest level
of decision making authority. Formal actions include ordinances approved by the
Board. Assigned fund balance represents amounts constrained by the District’s intent
to use them for a specific purpose. The authority to assign fund balance has been
delegated to the District’s finance director at the direction of the District’s Board. Any
residual fund balance of the General Fund is reported as unassigned.
The District’s flow of funds assumption prescribes that the funds with the highest level
of constraint are expended first. If restricted or unrestricted funds are available for
spending, the restricted funds are spent first. Additionally, if different levels of
unrestricted funds are available for spending the District considers committed funds to
be expended first followed by assigned and then unassigned funds.
In the government-wide financial statements, restricted net positions are legally
restricted by outside parties for a specific purpose. Net investment in capital assets
represents the District’s investment in the book value of capital assets, less any
outstanding debt that was issued to construct or acquire the capital asset.
- 15 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 15 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
m. Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element
represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The District
does not have any items that meet the definition of deferred outflows of resources. In
addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element
represents an acquisition of net position that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time. The District has only
one item that meets this definition and qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported in the governmental funds
balance sheet and statement of net position. The District reports unavailable revenue
from one source: property taxes. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
n. Comparative Data
Comparative total data for the prior year have been presented in selected sections of the
accompanying financial statements in order to provide an understanding of changes on
the District’s financial position and operations. Such information is presented in a
summarized comparative format and should be read in conjunction with the District’s
financial statements for the year ended March 31, 2012, from which the information
was summarized.
o. Accounting Estimates
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/expenses during the reporting period. Actual results could
differ from those estimates.
- 16 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 16 -
2. DEPOSITS AND INVESTMENTS
The District’s investment policy authorizes the District to invest in obligations issued by the
United States Government, investments constituting direct obligations of any bank, short-
term commercial paper of U.S. corporations with assets exceeding $500 million, short-term
obligations issued by the Federal National Mortgage Association, shares or other securities
issued by savings and loan associations, share accounts of credit unions chartered in the
United States with its principal office located in Illinois, and securities issued by Illinois
Funds.
Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer,
which allows governments within the state to pool their funds for investment purposes.
Illinois Funds is not registered with the SEC as an investment company, but does operate in a
manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in
Illinois Funds are valued at Illinois Funds’ share price, which is the price for which the
investment could be sold.
It is the policy of the District to invest its funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of
the District and conforming to all state and local statutes governing the investment of public
funds, using the “prudent person” standard for managing the overall portfolio. The primary
objectives of the policy, in order of priority are; legality, safety (preservation of capital and
protection of investment principal), liquidity, and yield. The Board of Trustee’s policy
requires collateralization at 105% of the aggregate balance of principal and accrued interest
on deposits in financial institutions. a. Deposits with Financial Institutions
Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires pledging of collateral in the name of the District.
b. Investments The following table presents the investments and maturities of the District’s securities
with interest rate risk as of April 30, 2013:
Investment Maturities in Years
Investment Type
Fair
Value
Less than
1
1-5
6-10
Greater than
10
Negotiable Certificates of
Deposits
$ 2,225,000
$ 1,125,000
$ 1,100,000
$ -
$ -
TOTAL $ 2,225,000 $ 1,125,000 $ 1,100,000 $ - $ -
- 17 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 17 -
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments (Continued) Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. In accordance with its investment policy, the District limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed with a budgetary or economic cycle. The investment policy does not strictly limit the maximum maturity lengths of investments.
Credit risk is the risk that the issuer of a debt security will not pay its par value upon
maturity. The District limits its 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 Illinois Funds. Illinois Funds are rated AAA.
Custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to the investment, the District will not be able to recover the value of its investments that are in possession of an outside party. Illinois Funds are not subject to custodial credit risk.
Concentration of credit risk is the risk that the District has a high percentage of its
investments invested in one type of investment. The District’s investment policy requires diversification of investments to avoid unreasonable risk. At March 31, 2013, the District had greater than five percent of its overall portfolio invested in Illinois Funds. This is in accordance with the District’s investment policy.
3. RECEIVABLES a. Property Taxes Property taxes for 2012 attach as an enforceable lien on January 1, 2012 on property
values assessed as of the same date. Taxes are levied by December of the subsequent year (by passage of Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about May 1, 2013 and August 1, 2013 and are payable in two installments, on or about June 1, 2013 and September 1, 2013. The County collects such taxes and remits them periodically. The allowance for uncollectible taxes has been stated at 1% of the tax levy, to reflect actual collection experience. Since the 2012 levy is intended to fund the 2014 fiscal year, the levy has been recorded as a receivable and deferred revenue.
- 18 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 18 -
3. RECEIVABLES (Continued) a. Property Taxes (Continued) The 2013 tax levy, which attached as an enforceable lien on property as of January 1,
2013, has not been recorded as a receivable as of March 31, 2013 as the tax has not yet been levied by the District and will not be levied until December 2013 and, therefore, the levy is not measurable at March 31, 2013.
b. Due From Other Governments Due from other governments for the year ended March 31, 2013 was as follows:
State tax receivable $ 40,386 Grants receivable 213,899
TOTAL $ 254,285
4. CAPITAL ASSETS Capital asset activity for the year ended March 31, 2013 was as follows:
Balances Balances April 1 Increases Decreases March 31
GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 203,957,860 $ 683,288 $ - $ 204,641,148 Construction in progress 2,913,539 1,864,062 1,901,909 2,875,692
Total capital assets not being depreciated 206,871,399 2,547,350 1,901,909 207,516,840
Capital assets being depreciated Land improvements and roads 23,363,469 1,954,561 - 25,318,030 Buildings and improvements 12,674,118 440,813 156,240 12,958,691 Furniture and equipment 1,825,050 359,370 61,911 2,122,509 Office equipment 394,557 28,630 - 423,187 Vehicles 1,837,600 569,196 277,443 2,129,353
Total capital assets being depreciated 40,094,794 3,352,570 495,594 42,951,770
Less accumulated depreciation for Land improvements and roads 9,815,850 1,057,921 - 10,873,771 Buildings and improvements 4,171,126 455,666 124,341 4,502,451 Furniture and equipment 1,171,755 168,393 61,911 1,278,237 Office equipment 191,280 33,978 - 225,258 Vehicles 1,217,663 218,148 277,443 1,158,368
Total accumulated depreciation 16,567,674 1,934,106 463,695 18,038,085
Total capital assets being depreciated, net 23,527,120 1,418,464 31,899 24,913,685
GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 230,398,519 $ 3,965,814 $ 1,933,808 $ 232,430,525
- 19 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 19 -
4. CAPITAL ASSETS (Continued) Depreciation expense was charged to functions/programs of the primary government as
follows:
GOVERNMENTAL ACTIVITIES General government $ 30,915 Educational services 48,464 Police and safety services 98,923 Land and facilities management 412,530
Natural resources 98,384 Wildlife resource center 3,696 Planning and development 1,098,966 Communications 350 Land development and acquisition 123,762 Lost Valley visitor center 18,116
TOTAL $ 1,934,106
5. RISK MANAGEMENT The District is exposed to various risks of loss related torts; theft of, or damage to, and
destruction of assets; errors and omission; injuries to employees; employee health; and natural disasters.
Park District Risk Management Agency (PDRMA) The District participates in the Park District Risk Management Agency (PDRMA). PDRMA is
a public entity risk pool whose members are Illinois governments. PDRMA manages and funds first party property losses, third party liability claims, boiler and machinery claims, workers’ compensation claims, and public officials’ liability claims of its members. The District’s payments to PDRMA are displayed on the financial statements as expenditures in the Insurance Fund.
Each member assumes the first $1,000 of property claims each occurrence and has self-
insurance retentions at various amounts. Management consists of a Board of Directors comprised of one appointed representative from each member. In addition, there are two officers, a Risk Manager and a Treasurer. The District does not exercise any control over the activities of PDRMA beyond its representation on the Board of Directors.
Initial contributions are determined in advance of each membership year based on the
individual member’s expenditures as defined in the bylaws of PDRMA, assessment factors based on past member experience, and the funding needs for the membership year. The Board of Directors may require that supplemental contributions be made by members to ensure that adequate funds are available to meet the obligations applicable to the membership year. Members have a contractual obligation to fund any deficit of PDRMA attributable to a membership year during which they were a member.
- 20 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 20 -
5. RISK MANAGEMENT (Continued)
Park District Risk Management Agency (PDRMA) (Continued)
At December 31, 2012, the total equity of PDRMA’s Property/Casualty Program’s balance
sheet was $ 36,724,654. For the year ended December 31, 2012, the increase in net position of
PDRMA was $3,558,488. The District made $205,083 of payments to PDRMA during the
year ended March 31, 2013.
In the event of a liability loss exceeding $21,500,000 per occurrence, self-insured and
reinsurance limit, the members would be responsible for funding the excess amount.
Health Insurance
The District purchases employee health insurance from third party insurance company
providers.
6. LONG-TERM DEBT
a. General Obligation Bonds
The District issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. In addition, general obligation bonds have been
issued to refund general obligation bonds.
b. Installment Contract Payable
The District issued an installment contract payable in order to acquire certain land.
c. Changes in Long-Term Liabilities
The following is a summary of changes in long-term debt for the year ended March 31,
2013:
Debt
Retired
By
Balances
April 1
Additions
Reductions
Balances
March 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
$20,330,000 General Obligation
Bonds, Series 1998A, dated July 1,
1998, due in annual installments
ranging from $115,000 to
$1,785,000, interest is due
semiannually at rates from 4.7% to
5.5%. The final payment is due
February 1, 2018.
Debt
Service
$ 6,940,000
$ -
$ 155,000
$ 6,785,000
$ 165,000
- 21 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 21 -
6. LONG-TERM DEBT (Continued)
c. Changes in Long-Term Liabilities (Continued)
Debt
Retired
By
Balances
April 1
Additions
Reductions
Balances
March 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
(Continued)
$12,335,000 General Obligation
Limited Refunding Bonds, Series
2001B, dated June 1, 2001, due in
annual installments ranging from
$150,000 to $1,410,000, interest is
due semiannually at rates from
4.25% to 5.00%, the final payment
is due February 1, 2016.
Debt
Service
$ 1,955,000
$ -
$ 1,410,000
$ 545,000
$ 195,000
$58,825,000 General Obligation
Refunding Bonds, Series 2005A,
dated March 10, 2005, due in
annual installments ranging from
$135,000 to $9,850,000, interest is
due semiannually at rates from
3.0% to 5.0%, the final payment is
due February 1, 2021.
Debt
Service
54,690,000
-
3,345,000
51,345,000
3,760,000
$1,315,000 General Obligation
Refunding Tax Bonds, Series
2005B, dated March 10, 2005, due
in periodic installments ranging
from $5,000 to $1,295,000
beginning in 2013, interest is due
semiannually at rates from 3.5% to
4.0%, the final payment is due
February 1, 2014.
Debt
Service
1,300,000
-
5,000
1,295,000
1,295,000
$73,000,000 General Obligation
Bonds, Series 2007, dated July 12,
2007, due in periodic installments
ranging from $5,000 to
$13,695,000 beginning in 2012,
interest is due semiannually at rates
from 4.000% to 5.125%, the final
payment is due February 1, 2027.
Debt
Service
72,995,000
-
-
72,995,000
-
Total bonds 137,880,000 - 4,915,000 132,965,000 5,415,000
Unamortized bond premium 2,025,544 - 160,083 1,865,461 -
Unamortized loss on refunding (207,732) - (74,067) (133,665) -
Total debt service fund bonds 139,697,812 - 5,001,016 134,696,796 5,415,000
- 22 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 22 -
6. LONG-TERM DEBT (Continued)
c. Changes in Long-Term Liabilities (Continued)
Debt
Retired
By
Balances
April 1
Additions
Reductions
Balances
March 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
(Continued)
$6,300,000 2006 Installment
Contract, dated November 16,
2006, interest due in semiannual
installments at a rate of 2.5%, with
final payment of principal and
interest due on November 1, 2016.
Dedicated
Projects
$ 4,800,000
$ -
$ -
$ 4,800,000
$ -
Compensated absences General 637,563 303,552 273,768 667,347 291,648
Net postemployment benefits
obligation
General
39,871
5,925
-
45,796
-
TOTAL GOVERNMENTAL
ACTIVITIES
$ 145,175,246
$ 309,477
$ 5,274,784
$ 140,209,939
$ 5,706,648
d. Debt Service Requirements to Maturity
Debt service requirements to maturity are as follows:
Governmental Activities
Fiscal Year
Ending
Total General Obligation Bonds
March 31 Principal Interest Total
2014 $ 5,415,000 $ 6,610,379 $ 12,025,379
2015 5,940,000 6,351,604 12,291,604
2016 6,510,000 6,050,779 12,560,779
2017 7,110,000 5,721,254 12,831,254
2018 7,690,000 5,421,082 13,111,082
2019 8,370,000 5,032,119 13,402,119
2020 9,085,000 4,613,619 13,698,619
2021 9,850,000 4,159,369 14,009,369
2022 10,730,000 3,666,869 14,396,869
2023 11,270,000 3,130,368 14,400,368
2024 11,830,000 2,566,868 14,396,868
2025 12,425,000 1,975,368 14,400,368
2026 13,045,000 1,354,118 14,399,118
2027 13,695,000 701,869 14,396,869
TOTAL $ 132,965,000 $ 57,355,665 $ 190,320,665
- 23 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 23 -
6. LONG-TERM DEBT (Continued)
d. Debt Service Requirements to Maturity (Continued)
Fiscal Year
Ending
Total Installment Contract
March 31 Principal Interest Total
2014 $ - $ 120,000 $ 120,000
2015 - 120,000 120,000
2016 - 120,000 120,000
2017 4,800,000 70,356 4,870,356
TOTAL $ 4,800,000 $ 430,356 $ 5,230,356
e. Legal Debt Margin
The schedule of the District’s legal debt margin as of March 31, 2013 is as follows:
ASSESSED VALUATION - 2012
(Latest information available)
$ 7,907,055,158
Statutory debt limitation (1.725% of assessed valuation) $ 136,396,701
Less general obligation bonds (132,965,000)
Less installment contracts (4,800,000)
LEGAL DEBT MARGIN $ (1,368,299)
7. OTHER POSTEMPLOYMENT BENEFITS
a. Plan Description
In addition to providing the pension benefits described, the District provides
postemployment health care benefits (OPEB) for retired employees through a single-
employer defined benefit plan (the Plan). The benefits, benefit levels, employee
contributions, and employer contributions are governed by the District and can be
amended by the District through its personnel manual and union contracts. Certain
benefits are controlled by state laws and can only be changed by the Illinois
Legislature. 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 District’s governmental activities.
- 24 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 24 -
7. OTHER POSTEMPLOYMENT BENEFITS (Continued)
b. Benefits Provided
The District provides pre and post-Medicare postretirement health insurance to retirees,
their spouses and dependents (enrolled at time of employee’s retirement). To be
eligible for benefits, the employee must qualify for retirement under one of the
District’s retirement plans. The retirees pay the blended premium. Upon a retiree
becoming eligible for Medicare, the amount payable under the District’s health plan
will be reduced by the amount payable under Medicare for those expenses that are
covered under both.
c. Membership
At March 31, 2012 (latest information available), membership consisted of:
Retirees and beneficiaries currently receiving
benefits 2
Terminated employees entitled
to benefits but not yet receiving them -
Active employees 76
TOTAL 78
Participating employers 1
d. Funding Policy
The District is not required to and currently does not advance fund the cost of benefits
that will become due and payable in the future. Active employees do not contribute to
the Plan until retirement.
e. Annual OPEB Costs and Net OPEB Obligation
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to
the Plan, and the net OPEB obligations for March 31, 2011 - 2013 were as follows:
Fiscal
Year
Ended
Annual
OPEB
Cost
Employer
Contributions
Percentage of
Annual OPEB
Cost Contributed
Net OPEB
Obligation
March 31, 2011 $ 15,594 $ 4,115 26.39% $ 33,917
March 31, 2012 15,300 9,346 61.08% 39,871
March 31, 2013 15,271 9,346 61.20% 45,796
- 25 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 25 -
7. OTHER POSTEMPLOYMENT BENEFITS (Continued)
e. Annual OPEB Costs and Net OPEB Obligation (Continued)
The net OPEB obligation as of March 31, 2013 was calculated as follows:
Annual required contribution $ 15,005
Interest on net OPEB obligation 1,595
Adjustment to annual required contribution (1,329)
Annual OPEB cost 15,271
Contributions made 9,346
Increase in net OPEB obligation 5,925
Net OPEB obligation, beginning of year 39,871
NET OPEB OBLIGATION, END OF YEAR $ 45,796
Funded Status and Funding Progress: The funded status of the Plan as of March 31,
2012 (latest information available) was as follows:
Actuarial accrued liability (AAL) $ 145,721
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL) 145,721
Funded ratio (actuarial value of plan assets/AAL) 0%
Covered payroll (active plan members) $ 4,160,902
UAAL as a percentage of covered payroll 3.50%
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
healthcare 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 financial statements, presents multi-year 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.
Actuarial methods and assumptions - 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.
- 26 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 26 -
7. OTHER POSTEMPLOYMENT BENEFITS (Continued)
e. Annual OPEB Costs and Net OPEB Obligation (Continued)
In the March 31, 2012 actuarial valuation, the entry-age normal actuarial cost method
was used. The actuarial assumptions included a 4.0% investment rate of return and an
initial healthcare cost trend rate of 8.0% with an ultimate healthcare inflation rate of
6.0%. Both rates include a 3.0% inflation assumption and 4.0% wage inflation
assumption. The actuarial value of assets was not determined as the District has not
advance funded its obligation. The Plan’s unfunded actuarial accrued liability is being
amortized as a level percentage of projected payrolls on an open, 30-year basis.
8. EMPLOYEE RETIREMENT SYSTEMS
a. Plan Description
Illinois Municipal Retirement Fund
The District contributes to one defined benefit pension plan: the Illinois Municipal
Retirement Fund (IMRF), an agent multiple-employer public employee retirement
system. The benefits, benefit levels, employee contributions, and employer
contributions for all plans are governed by Illinois Compiled Statutes and can only be
amended by the Illinois General Assembly. IMRF does not issue a separate report.
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 from IMRF, 2211 York Road, Suite
500, Oak Brook, Illinois 60523.
All employees hired in positions that meet or exceed the prescribed annual hourly
standard must be enrolled in IMRF as participating members. IMRF provides two tiers
of pension benefits. Employees hired prior to January 1, 2011, are eligible for Tier 1
benefits. For Tier 1 employees, pension benefits vest after eight years of service.
Participating members who retire at age 55 (reduced benefits) or after age 60 (full
benefits) with eight years of credited service are entitled to an annual retirement
benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of
earnings, for each year of credited service up to 15 years, and 2% for each year
thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits.
For Tier 2 employees, pension benefits vest after 10 years of service. Participating
members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with 10
years of credited service are entitled to an annual retirement benefit, payable monthly
for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of
credited service up to 15 years, and 2% for each year thereafter. The District is
required to contribute the remaining amounts necessary to fund IMRF as specified by
statute. The employer contribution for the calendar year ended December 31, 2012
was 11.73% of covered payroll.
- 27 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 27 -
8. EMPLOYEE RETIREMENT SYSTEMS (Continued)
b. Annual Pension Cost
Employer contributions have been determined as follows:
Illinois Municipal
Retirement
Actuarial valuation date December 31, 2010
Actuarial cost method Entry-Age Normal
Asset valuation method 5 Year Smoothed Market
Amortization method Level Percentage of Payroll
Amortization period 30 Years, Open
Significant actuarial assumptions
(a) Rate of return on 7.50%
present and future assets Compounded Annually
(b) Projected salary increase 4.00%
attributable to inflation Compounded Annually
(c) Additional projected .40% to 10.00%
salary increases - seniority/merit
- 28 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 28 -
8. EMPLOYEE RETIREMENT SYSTEMS (Continued)
b. Annual Pension Cost (Continued)
Employer annual pension costs (APC), actual contributions, and the net pension
obligation (asset) (NPO) are as follows. The NPO is the cumulative difference
between APC and the contributions actually made.
Fiscal
Year
Illinois
Municipal
Retirement
Annual pension cost (APC) 2011 $ 473,923
2012 496,670
2013 525,832
Actual contribution 2011 $ 473,923
2012 496,670
2013 525,832
Percentage of APC contributed 2011 100.00%
2012 100.00%
2013 100.00%
NPO (asset) 2011 $ -
2012 -
2013 -
c. Funded Status and Funding Progress
The funded status and funding progress of the plan as of December 31, 2012 were as
follows:
Illinois
Municipal
Retirement
Actuarial accrued liability (AAL) $ 9,610,061
Actuarial value of plan assets 6,563,413
Unfunded actuarial accrued liability (UAAL) 3,046,648
Funded ratio (actuarial value of plan assets/AAL) 68.30%
Covered payroll (active plan members) $ 4,328,735
UAAL as a percentage of covered payroll 70.38%
- 29 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 29 -
9. RESTRICTED FUND BALANCE
The District received a $5,000 donation from Smith Engineering. The donation and the
interest earned from the donation are intended for a scholarship program in which the interest
earned will be distributed to an eligible recipient. The District sets up the criteria for the
scholarships, selects a recipient, and awards the scholarships. The Dedicated Projects Fund
balance includes $16,167 restricted for future scholarships.
10. INTERFUND ACTIVITY
a. Interfund Receivables/Payables
Amounts due to/from other funds at March 31, 2013 consist of the following:
Receivable Fund Payable Fund Amount
Debt Service General $ 808,550
Dedicated Projects General 420
General Capital Projects 19,096
Nonmajor Governmental General 208,662
Nonmajor Governmental Debt Service 5,221
General Nonmajor Governmental 11,974
General Dedicated Projects 269,479
TOTAL $ 1,323,402
The District maintains one central operating checking account, within the General
Fund, from which all operating expenses are paid. As such, expenses from other funds
flow through the General Fund’s operating checking account, resulting in temporary
interfund receivable/payable balances.
The purpose of the significant amounts due is as follows:
$808,550 due to the Debt Service Fund from the General Fund represents
residual balances from bond issuances and refunding, and the interest earned on
the debt service tax levy receipts prior to the debt payments being made.
$208,662 due to the Nonmajor Funds from the General Fund represents the
maintenance of fund balance for unforeseen circumstances with the Insurance
Fund.
$269,479 due to the General Fund from the Dedicated Projects Fund represents
payroll amounts that were paid out of the General Fund.
- 30 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO FINANCIAL STATEMENTS (Continued)
- 30 -
11. CONTINGENT LIABILITIES
a. Litigation
The District is a defendant in various lawsuits. Although the outcome of these lawsuits
is not presently determinable, in the opinion of the District’s attorney, the resolution of
these matters will not have a material adverse effect on the financial condition of the
District.
b. Grants
Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any disallowed
claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of expenditures which may be disallowed by the grantor
cannot be determined at this time although the District expects such amounts, if any, to
be immaterial.
12. PRIOR PERIOD ADJUSTMENT
During the year ended March 31, 2013, the District adopted GASB Statement No. 63,
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and
Net Position and GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities. As comparative financial statement information is presented as described in
Note 1.n, the District restated beginning net position at April 1, 2011 by $(894,996) to
expense bond issuance costs.
- 31 -
REQUIRED SUPPLEMENTARY INFORMATION
Original and Variance
Final Over/
Budget Actual (Under)
REVENUES
Taxes
Property taxes, net 7,304,926$ 7,299,335$ (5,591)$
Intergovernmental
State replacement taxes 170,000 170,886 886
Grants 5,550 1,600 (3,950)
Charges for services 144,899 161,197 16,298
Receipts from use of facilities
Rental income 1,282,454 1,291,378 8,924
Investment income 34,501 34,688 187
Donations 250 1,738 1,488
Miscellaneous 17,275 30,589 13,314
Total revenues 8,959,855 8,991,411 31,556
EXPENDITURES
Current
General government 1,609,153 1,531,959 (77,194)
Educational services 778,258 731,936 (46,322)
Police and safety services 1,344,528 1,272,910 (71,618)
Land and facilities management 2,285,526 2,186,364 (99,162)
Natural resources management 1,312,535 1,270,069 (42,466)
Wildlife resource center 222,791 212,057 (10,734)
Planning and development 295,936 290,706 (5,230)
Communications 412,411 383,854 (28,557)
Trail of history 38,685 31,354 (7,331)
Research field station 145,067 140,064 (5,003)
Lost Valley visitor center 171,805 211,010 39,205
Capital outlay 985,337 850,240 (135,097)
Total expenditures 9,602,032 9,112,523 (489,509)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (642,177) (121,112) 521,065
OTHER FINANCING SOURCES (USES)
Sale of capital assets 30,000 54,883 24,883
Total other financing sources (uses) 30,000 54,883 24,883
NET CHANGE IN FUND BALANCE (612,177)$ (66,229) 545,948$
FUND BALANCE, APRIL 1 4,455,239
FUND BALANCE, MARCH 31 4,389,010$
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended March 31, 2013
(See independent auditor's report.)- 32 -
(4)
(2) Unfunded
Actuarial Actuarial UAAL
Accrued Accrued as a
Actuarial (1) Liability Liability Percentage
Valuation Actuarial (AAL) Funded UAAL (5) of Covered
Date Value of Entry-Age Ratio (OAAL) Covered Payroll
December 31 Assets Normal (1) / (2) (2) - (1) Payroll (4) / (5)
2007 3,779,647$ 5,542,087$ 68.20% 1,762,440$ 3,388,994$ 52.00%
2008 4,007,472 6,142,502 65.24% 2,135,030 3,669,347 58.19%
2009 4,546,970 7,288,433 62.39% 2,741,463 4,089,649 67.03%
2010 5,321,250 7,966,498 66.80% 2,645,248 4,086,677 64.73%
2011 5,837,449 8,726,340 66.89% 2,888,891 4,160,902 69.43%
2012 6,563,413 9,610,061 68.30% 3,046,648 4,328,735 70.38%
March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)- 33 -
(6)
Underfunded
(Overfunded)
Actuarial
(4) Accrued
(2) Unfunded Liability
(1) Actuarial (Overfunded) as a
Actuarial Actuarial Accrued (3) Actuarial (5) Percentage
Valuation Value of Liability Percentage Accrued Annual of Covered
Date Plan (AAL) Funded Liability Covered Payroll
March 31 Assets Entry-Age (1) / (2) (2) - (1) Payroll (4) / (5)
2009 -$ 131,224$ 0.00% 131,224$ 4,046,737$ 3.24%
2010 N/A N/A N/A N/A N/A N/A
2011 N/A N/A N/A N/A N/A N/A
2012 - 145,721 0.00% 145,721 4,160,902 3.50%
2013 N/A N/A N/A N/A N/A N/A
N/A - Acturial valuation not performed.
Information for prior years is not available as the District's first acturial valuation was
performed April 1, 2008.
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF FUNDING PROGRESS
OTHER POSTEMPLOYMENT BENEFITS PLAN
March 31, 2013
(See independent auditor's report)- 34 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC) Contributed
2008 376,178$ 376,178$ 100%
2009 410,967 410,967 100%
2010 442,345 442,345 100%
2011 473,923 473,923 100%
2012 496,670 496,670 100%
2013 525,832 525,832 100%
March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)- 35 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC) Contributed
2009 4,115$ 15,263$ 26.96%
2010 4,115 15,220 27.04%
2011 4,115 15,220 27.04%
2012 9,346 15,075 62.00%
2013 9,346 15,005 62.29%
Information for prior years is not available as the District's first acturial valuation was
performed April 1, 2008.
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF EMPLOYER CONTRIBUTIONS
OTHER POSTEMPLOYMENT BENEFITS PLAN
March 31, 2013
(See independent auditor's report.)- 36 -
- 35 -
MCHENRY COUNTY CONSERVATION DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
March 31, 2013
1. BUDGETS
Budgets are adopted on a basis consistent with the modified accrual basis of accounting
used for governmental funds. Annual appropriations are adopted within the first quarter of
each fiscal year for the General, Special Revenue, Debt Service, and Capital Projects
Funds. All annual appropriations lapse at fiscal year end.
The appropriated budget is prepared by fund and department. Management may make
transfers of appropriations between departments within the same fund. Transfers of
appropriations between funds require the approval of the governing board. There were no
budget amendments during the fiscal year.
Expenditures may not legally exceed budgeted appropriations at the fund level.
2. EXCESS OF EXPENDITURES OVER BUDGET
Fund
Budget
Actual
Expenditures
Insurance Fund $ 232,568 $ 234,033
- 37 -
MAJOR GOVERNMENTAL FUNDS
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
For the Year Ended March 31, 2013
Original and
Final
Budget Actual
REVENUES
Taxes
Property taxes, net 7,304,926$ 7,299,335$
Intergovernmental
State replacement taxes 170,000 170,886
Grants 5,550 1,600
Charges for services 144,899 161,197
Receipts from use of facilities
Rental income 1,282,454 1,291,378
Investment income 34,501 34,688
Donations 250 1,738
Miscellaneous 17,275 30,589
TOTAL REVENUES 8,959,855$ 8,991,411$
GENERAL FUND
(See independent auditor's report.)- 38 -
Original and
Final
Budget Actual
General government
Personnel
Salaries 753,398$ 733,699$
Health insurance 103,481 99,931
Retirement contribution 88,374 87,604
HSA contribution 4,950 6,013
Social Security contribution 57,635 52,320
Life insurance 1,498 914
Employee mileage reimbursement 2,165 722
Meetings - noneducational 2,675 768
Employee relations 12,506 11,904
Total personnel 1,026,682 993,875
Contractual services
Printing 5,925 2,869
Postage 6,300 4,648
Dues, subscriptions, and memberships 15,139 15,375
Audits 25,126 19,835
Nuisance wildlife control 4,000 -
Appraisals and surveys 3,700 4,560
Legal services 98,000 116,311
Legal notices 6,120 6,517
Hunting program 11,730 12,435
Farm lease program 36,750 34,929
Real estate tax 85,000 115,988
Travel/meeting expense 17,754 12,503
Trustee expenses 12,805 8,859
Special events, meetings, and dedications 250 -
Office equipment, rental, and maintenance 7,873 10,083
IT maintenance service 36,735 38,870
Employee physical exams 1,700 800
Janitorial 2,755 2,145
Building maintenance 3,478 26
Vehicle repair 650 1,774
Unanticipated expenditures 45,000 21,200
Contractual services 46,016 35,944
Total contractual services 472,806 465,671
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended March 31, 2013
(This schedule is continued on the following pages.)- 39 -
Original and
Final
Budget Actual
General government (Continued)
Commodities
Office supplies 7,139$ 6,120$
Computer supplies 54,627 28,566
Uniforms 2,650 1,358
Utilities - ISDN line 40,505 29,846
Gas, grease, and oil 4,744 6,523
Total commodities 109,665 72,413
Total general government 1,609,153 1,531,959
Educational services
Personnel
Salaries 479,775 469,212
Health insurance 83,808 75,533
Retirement contribution 50,067 47,244
HSA contribution 2,700 2,700
Social Security contribution 36,512 33,360
Life insurance 855 781
Total personnel 653,717 628,830
Contractual services
Printing 3,850 2,197
Postage 3,215 1,873
Dues and subscriptions 639 494
School services 6,175 2,243
Workshops and programs 20,230 18,665
Travel/meeting expense 7,900 6,231
Janitorial 13,000 10,875
Waste disposal 3,500 1,518
Building maintenance 2,250 1,498
Office equipment rental 3,846 6,358
Vehicle maintenance 650 495
IT support services 5,248 5,243
Contractual services 3,700 2,820
Total contractual services 74,203 60,510
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
(This schedule is continued on the following pages.)- 40 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Educational services (Continued)
Commodities
Materials and displays 2,045$ 584$
Office supplies 7,664 7,647
A/V supplies 500 60
Library 1,500 770
Uniforms 1,800 1,337
Utilities 34,399 28,392
Gas, grease, and oil 2,430 3,806
Total commodities 50,338 42,596
Total educational services 778,258 731,936
Police and safety services
Personnel
Salaries 755,196 734,007
Seasonal - 239
Health insurance 207,143 164,314
Retirement contribution 88,584 88,929
HSA contribution 4,950 2,813
Social Security contribution 57,772 55,703
Life insurance 1,553 1,148
Employee mileage reimbursement 225 -
Meetings 550 555
Employee relations 689 1,237
Total personnel 1,116,662 1,048,945
Contractual services
Bike patrol expense 6,100 4,342
Employee expense 1,500 1,504
Communication equipment maintenance 14,000 15,069
Dues, subscriptions, and memberships 2,795 2,730
Safety training 9,500 9,102
Supplies 5,684 10,935
Travel/meeting expense 11,600 14,289
Janitorial 621 439
Waste disposal 375 -
Building maintenance 960 -
Vehicle maintenance 10,000 13,197
IT support services 4,592 5,423
Contractual services 3,900 5,166
Total contractual services 71,627 82,196
(This schedule is continued on the following pages.)- 41 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Police and safety services (Continued)
Commodities
Supplies 750$ 548$
Leased equipment 7,050 6,379
Library 2,116 921
Security and safety equipment 19,920 22,834
Police uniforms and equipment 14,710 12,738
Police vehicle supplies 14,640 15,459
Utilities 27,509 23,428
Gas, grease, and oil 69,544 59,462
Total commodities 156,239 141,769
Total police and safety services 1,344,528 1,272,910
Land and facilities management
Personnel
Salaries 1,158,666 1,145,498
Health insurance 240,696 230,002
Retirement contribution 121,179 128,885
HSA contribution 6,450 5,250
Social Security contribution 88,638 86,509
Life insurance 2,059 1,634
Employee mileage reimbursement 200 187
Meetings - 213
Employee relations 3,700 4,598
Total personnel 1,621,588 1,602,776
Contractual services
Utilities - all facilities 79,217 85,407
Janitorial services 1,995 962
Waste disposal 13,000 12,715
Dues, subscriptions, and memberships 1,200 438
Building maintenance 102,361 71,574
Travel/meeting expense 12,310 12,124
IT support services 3,936 2,410
Contractual services 20,500 15,990
Road and bridge maintenance 34,542 23,367
Water and sewer maintenance 33,073 30,818
Fence and gate maintenance 4,280 6,829
(This schedule is continued on the following pages.)- 42 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Land and facilities management (Continued)
Contractual services (Continued)
Maintenance equipment rental 2,500$ 885$
Maintenance equipment repair 14,400 13,897
Vehicle and trailer maintenance 28,930 27,414
License and inspection 1,500 2,427
Total contractual services 353,744 307,257
Commodities
Office supplies 1,500 8,234
Office equipment rental and maintenance 3,900 3,060
Computer supplies 4,118 3,281
Site maintenance supplies 123,195 107,563
Shop tools 17,085 12,942
Uniforms 8,690 7,727
Supplies 28,980 23,266
Signs and display materials 8,685 9,248
Tables, grills, and trash cans 9,661 8,726
Gas, grease, and oil 104,380 92,284
Total commodities 310,194 276,331
Total land and facilities management 2,285,526 2,186,364
Natural resources management
Personnel
Salaries 713,803 708,317
Intern salaries 8,160 8,498
Health insurance 161,650 156,495
Retirement contribution 82,410 85,882
HSA contribution 5,400 5,175
Social Security contribution 55,230 53,883
Life insurance 1,445 1,174
Meetings 1,020 701
Employee relations - 32
Total personnel 1,029,118 1,020,157
(This schedule is continued on the following pages.)- 43 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Natural resources management (Continued)
Contractual services
Resource management supplies and maintenance 76,849$ 71,408$
Travel/meeting expense 11,500 11,645
Waste disposal 3,000 1,654
Building maintenance 530 306
Water and sewer maintenance - -
Vehicle repair 7,500 3,853
IT support services 7,872 5,741
Contractual services 16,500 14,494
Total contractual services 123,751 109,101
Commodities
NRM safety supplies 4,200 4,427
Animal rearing and reintroduction supplies 8,240 7,457
Nursery plants and seeds 50,963 49,501
Supplies 14,343 10,066
Uniforms 5,600 6,444
Utilities 25,956 14,998
Gas, grease, and oil 49,364 46,949
Stewardship program 1,000 969
Total commodities 159,666 140,811
Total natural resources management 1,312,535 1,270,069
Wildlife resource center
Personnel
Salaries 140,785 139,743
Intern salaries 4,000 3,710
Health insurance 11,479 11,320
Retirement contribution 16,514 16,688
HSA contribution 1,500 1,500
Social Security contribution 11,076 10,784
Life insurance 235 185
Employee mileage reimbursement 500 540
Employee relations 125 116
Total personnel 186,214 184,586
(This schedule is continued on the following pages.)- 44 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Wildlife resource center (Continued)
Contractual services
Dues, subscriptions, and memberships 469$ 369$
Travel/meeting expense 2,600 1,006
Waste disposal 2,200 908
IT support services 1,968 803
Building maintenance 360 204
Vehicle maintenance 250 -
Total contractual services 7,847 3,290
Commodities
Wildlife resource program supplies 5,113 3,303
Wildlife care and supplies 12,600 11,584
Uniforms 650 394
Office equipment leases 400 340
Utilities 8,755 7,510
Gas, grease, and oil 1,212 1,050
Total commodities 28,730 24,181
Total wildlife resources 222,791 212,057
Planning and development
Personnel
Salaries 193,177 194,547
Health insurance 29,134 27,988
Retirement contribution 22,660 23,085
Social Security contribution 14,778 14,726
Life insurance 396 279
Employee relations 300 253
Total personnel 260,445 260,878
Contractual services
Travel/meeting expense 4,500 3,355
Contractual services 2,500 2,531
IT support services 656 1,757
Dues, subscriptions, and memberships 1,350 1,281
Janitorial 690 439
Waste disposal 375 -
Building maintenance 637 -
Vehicle repair 500 198
Total contractual services 11,208 9,561
(This schedule is continued on the following pages.)- 45 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Planning and development (Continued)
Personnel (Continued)
Commodities
Planning supplies 18,252$ 14,720$
Uniforms 300 76
Utilities 3,246 3,765
Gas, grease, and oil 2,485 1,706
Total commodities 24,283 20,267
Total planning and development 295,936 290,706
Communications
Personnel
Salaries 149,917 149,998
Health insurance 30,089 28,004
Retirement contribution 17,585 18,017
Social Security contribution 11,469 10,999
Life insurance 314 265
Employee mileage reimbursement 900 816
Meetings 200 123
Employee relations 375 235
Total personnel 210,849 208,457
Contractual services
Printing 16,900 11,552
Promotions and public relations 13,900 14,686
Advertising 29,600 28,969
Newsletter and postage 59,600 59,558
Travel/meeting expense 2,285 2,759
Special events, meetings, and dedications 7,120 5,780
Dues, subscriptions, and memberships 525 666
Volunteer and committee expense 20,436 13,767
Janitorial 890 439
Building maintenance 587 -
Vehicle maintenance - 42
IT support services 656 2,530
Contractual services 37,500 25,421
Total contractual services 189,999 166,169
(This schedule is continued on the following pages.)- 46 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Communications (Continued)
Commodities
A/V supplies 4,473$ 4,186$
Office supplies 4,050 979
Uniforms 300 25
Utilities 2,740 4,036
Gas, grease, and oil - 2
Total commodities 11,563 9,228
Total communications 412,411 383,854
Trail of history 38,685 31,354
Research field station
Personnel
Salaries 57,750 57,892
Intern wage expense 40,800 40,159
Health insurance 16,612 16,226
Retirement contribution 6,774 6,932
HSA contribution 1,500 1,500
Social Security contribution 7,539 7,020
Life insurance 124 103
Total personnel 131,099 129,832
Contractual services
IT support services 656 414
Contractual services 1,400 1,050
Total contractual services 2,056 1,464
Commodities
Supplies 5,400 5,255
Utilities 3,212 1,361
Display 2,100 799
Field supplies 1,200 1,353
Total commodities 11,912 8,768
Total research field station 145,067 140,064
(This schedule is continued on the following pages.)- 47 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Lost Valley visitor center
Personnel
Salaries 46,939$ 48,655$
Seasonal 9,935 10,386
Retirement contribution 5,506 6,337
Social Security contribution 4,351 4,840
Health insurance 16,700 16,239
Life insurance 81 66
Total personnel 83,512 86,523
Contractual services
Contractual services 4,000 12,000
IT support services 3,280 15,460
Utilities 29,931 40,451
Building maintenance 15,000 22,634
Road maintenance 2,600 4,103
Septic system 1,000 -
Janitorial 15,000 16,127
Equipment maintenance 2,150 645
Total contractual services 72,961 111,420
Commodities
Office supplies 250 414
Computer supplies 1,482 2,806
Food and beverage for conference 700 2,400
Other conference expenses 350 3,038
Office furniture and equipment rental 750 1,418
Office furniture and equipment 4,450 1,229
Materials and displays 5,350 1,226
Site maintenance supplies 1,500 536
Sign and display 500 -
Total commodities 15,332 13,067
Total Lost Valley visitor center 171,805 211,010
(This schedule is continued on the following page.)- 48 -
Original and
Final
Budget Actual
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
Capital outlay
Administration
Office furniture and equipment 57,600$ 21,046$
Vehicle and trailer 1,200 949
Educational services
Office furniture and equipment 26,000 -
Police and safety services
Communication equipment 137,800 131,384
Land and facilities management
Maintenance and equipment purchase 314,807 234,756
Road and bridge infrastructure 19,300 17,499
Fuel station 15,000 8,500
Vehicle and trailer 194,257 220,272
Water and sewer infrastructure 12,000 13,350
Natural resource management
Building improvements 48,000 38,103
Equipment 93,250 87,215
Restoration equipment 19,500 18,128
Wildlife Resource center
Building improvements 15,000 23,739
Communication
Office furniture and equipment 350 -
Lost Valley visitor center
Building improvements 31,273 35,299
Total capital outlay 985,337 850,240
TOTAL EXPENDITURES 9,602,032$ 9,112,523$
(See independent auditor's report.)- 49 -
Original and
Final
Budget Actual
REVENUES
Property taxes, net 11,778,104$ 11,758,839$
Investment income 1,514 2,254
Total revenues 11,779,618 11,761,093
EXPENDITURES
Debt service
Principal retirement 4,915,000 4,915,000
Interest 6,863,104 6,863,104
Administrative fees 2,000 1,742
Total expenditures 11,780,104 11,779,846
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (486) (18,753)
OTHER FINANCING SOURCES (USES)
Transfers (out) (500,000) -
NET CHANGE IN FUND BALANCE (500,486)$ (18,753)
FUND BALANCE, APRIL 1 877,934
FUND BALANCE, MARCH 31 859,181$
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DEBT SERVICE FUND
(See independent auditor's report.)- 50 -
Original and
Final
Budget Actual
REVENUES
Investment income 1,475$ 2,007$
Total revenues 1,475 2,007
EXPENDITURES
Land development and acquisition
Other expenditures 983 -
Capital outlay 2,690,032 719,909
Land and facilities management
Capital outlay 275,000 17,250
Natural resources management
Capital outlay 49,096 46,000
Planning and development
Capital outlay 1,889,551 1,154,171
Total expenditures 4,904,662 1,937,330
NET CHANGE IN FUND BALANCE (4,903,187)$ (1,935,323)
FUND BALANCE, APRIL 1 4,798,481
FUND BALANCE, MARCH 31 2,863,158$
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
(See independent auditor's report.)- 51 -
Original and
Final
Budget Actual
REVENUES
Intergovernmental 212,700$ 322,693$
Investment income 24,151 13,437
Donations - 139,084
Miscellaneous - 4,061
Total revenues 236,851 479,275
EXPENDITURES
Current
General government 1,000 -
Land development and acquisition 102,017 102,707
Land and facilities management 8,500 -
Capital outlay 1,143,568 420,014
Debt service
Principal - -
Interest 120,000 131,521
Total expenditures 1,375,085 654,242
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,138,234) (174,967)
OTHER FINANCING SOURCES (USES)
Transfers in 500,000 -
Sale of capital assets - -
Total other financing sources (uses) 500,000 -
NET CHANGE IN FUND BALANCE (638,234)$ (174,967)
FUND BALANCE, APRIL 1 5,409,966
FUND BALANCE, MARCH 31 5,234,999$
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DEDICATED PROJECTS FUND
(See independent auditor's report.)- 52 -
NONMAJOR GOVERNMENTAL FUNDS
Natural
Insurance Resources Total
ASSETS
Cash and cash equivalents -$ 1,526,268$ 1,526,268$
Receivables
Property taxes 226,111 - 226,111
Due from other governmental units - 9,200 9,200
Due from other funds 213,883 - 213,883
Total assets 439,994 1,535,468 1,975,462
DEFERRED OUTFLOWS OF RESOURCES
None - - -
Total deferred outflows of resources - - -
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 439,994$ 1,535,468$ 1,975,462$
LIABILITIES
Accounts payable 53,791$ -$ 53,791$
Due to other funds - 11,974 11,974
Unearned revenue - 43,235 43,235
Total liabilities 53,791 55,209 109,000
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 226,111 - 226,111
Total deferred inflows of resources 226,111 - 226,111
Total liabilities and deferred inflows of resources 279,902 55,209 335,111
FUND BALANCES
Restricted
Tort liability 160,092 - 160,092
Land acquisition and site improvements - 1,476,904 1,476,904
Unrestricted
Assigned
Land acquisition and site improvements - 3,355 3,355
Total fund balances 160,092 1,480,259 1,640,351
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 439,994$ 1,535,468$ 1,975,462$
RESOURCES, AND FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
MCHENRY COUNTY CONSERVATION DISTRICT
COMBINING BALANCE SHEET
March 31, 2013
Special Revenue
LIABILITIES, DEFERRED INFLOWS OF
ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES
(See independent auditor's report.)- 53 -
Natural
Insurance Resources Total
REVENUES
Property taxes, net 228,001$ -$ 228,001$
Mitigation - 359,920 359,920
Intergovernmental - 103,134 103,134
Investment income 2 1,367 1,369
Donations - 920 920
Total revenues 228,003 465,341 693,344
EXPENDITURES
Current
General government 234,033 - 234,033
Natural Resources Management - 188,067 188,067
Capital outlay - 208,055 208,055
Total expenditures 234,033 396,122 630,155
NET CHANGE IN FUND BALANCES (6,030) 69,219 63,189
FUND BALANCES, MAY 1 166,122 1,411,040 1,577,162
FUND BALANCES, APRIL 30 160,092$ 1,480,259$ 1,640,351$
MCHENRY COUNTY CONSERVATION DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended March 31, 2013
Special Revenue
NONMAJOR GOVERNMENTAL FUNDS
(See independent auditor's report.)- 54 -
Original and
Final
Budget Actual
REVENUES
Property taxes, net 232,568$ 228,001$
Investment income - 2
Total revenues 232,568 228,003
EXPENDITURES
General government
Contractual services
Liability insurance 41,509 35,880
Commercial insurance 54,726 56,342
Workers' compensation insurance 112,583 112,860
Unemployment insurance 18,750 26,951
Training and education 250 -
Contractual services 4,500 2,000
Commodities
Safety equipment 250 -
Total expenditures 232,568 234,033
NET CHANGE IN FUND BALANCE -$ (6,030)
FUND BALANCE, APRIL 1 166,122
FUND BALANCE, MARCH 31 160,092$
For the Year Ended March 31, 2013
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
INSURANCE FUND
(See independent auditor's report.)- 55 -
Original and
Final
Budget Actual
REVENUES
Mitigation 686,000$ 359,920$
Intergovernmental - 103,134
Investment income 1,347 1,367
Donations 47,735 920
Total revenues 735,082 465,341
EXPENDITURES
Natural resources management
Personnel
Salaries 156,415 127,083
Social Security contribution 11,966 9,729
Health insurance 5,494 4,008
Life insurance 96 43
Retirement contribution 6,719 6,705
Unemployment insurance 2,070 1,674
HSA Contribution - 125
Contractual services 43,000 38,700
Capital outlay 498,903 208,055
Total expenditures 724,663 396,122
NET CHANGE IN FUND BALANCE 10,419$ 69,219
FUND BALANCE, APRIL 1 1,411,040
FUND BALANCE, MARCH 31 1,480,259$
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
NATURAL RESOURCES FUND
For the Year Ended March 31, 2013
(See independent auditor's report.)- 56 -
STATISTICAL SECTION
STATISTICAL SECTION
This part of the McHenry County Conservation District’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 District’s
overall financial health.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand how the
District’s financial performance and well-being have changed over time.
57-62
Revenue Capacity
These schedules contain information to help the reader assess the District’s most
significant local revenue source, the property tax.
63-66
Debt Capacity
These schedules present information to help the reader assess the affordability of
the District’s current levels of outstanding debt and the District’s ability to issue
additional debt in the future.
67-70
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take
place.
71-72
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the District’s financial report relates to the
services the District provides and the activities it performs.
73-75
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
MCHENRY COUNTY CONSERVATION DISTRICT
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GOVERNMENTAL ACTIVITIES
Net investment in capital assets 47,138,076$ 46,489,024$ 52,591,046$ 59,217,210$ 64,417,320$ 65,947,405$ 73,422,264$ 78,570,784$ 85,900,708$ 92,933,729$
Restricted 5,507,446 5,248,884 11,535,655 871,555 1,053,746 1,120,740 1,101,152 1,824,552 2,468,915 2,512,344
Unrestricted 14,297,605 18,509,447 3,580,715 13,256,062 14,586,056 19,844,659 17,565,088 15,144,649 12,708,483 10,609,893
TOTAL GOVERNMENTAL ACTIVITIES 66,943,127$ 70,247,355$ 67,707,416$ 73,344,827$ 80,057,122$ 86,912,804$ 92,088,504$ 95,539,985$ 101,973,102$ 106,055,966$
Source: District's audited financial statements
- 57 -
MCHENRY COUNTY CONSERVATION DISTRICT
CHANGE IN NET POSITION
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EXPENSES
Governmental activities
General government 1,052,123$ 1,356,349$ 1,277,582$ 1,182,361$ 1,383,916$ 1,639,282$ 1,719,847$ 1,647,747$ 1,664,297$ 1,792,437$
Educational services 483,930 526,060 642,539 653,300 709,375 758,036 744,573 774,228 782,942 786,522
Police and safety 582,931 653,910 760,928 768,182 933,015 1,116,740 1,213,723 1,310,849 1,259,494 1,380,822
Land and facilities management 1,480,751 2,146,056 2,013,777 2,310,113 1,552,436 1,895,247 1,423,889 2,413,865 2,277,559 2,411,810
Natural resource management 612,516 837,522 786,735 959,649 1,043,166 880,731 660,703 1,443,130 1,618,444 1,520,796
Wildlife resource center 140,391 148,899 164,261 163,123 186,923 186,049 187,543 203,880 221,229 217,837
Planning and development 129,495 661,948 247,529 769,381 827,163 915,461 921,190 969,836 1,046,152 1,388,652
Communications 385,360 366,583 305,399 356,485 316,527 377,454 339,682 360,580 358,715 392,676
Land development and acquisition 229,910 142,014 826,799 155,751 616,729 914,440 1,924,634 585,681 287,629 242,379
Trail of history 70,880 75,005 47,464 47,188 44,988 39,644 45,404 30,841 35,181 31,354
Research field station 96,113 114,837 113,959 119,181 275,699 149,918 148,044 148,019 157,683 141,337
Lost Valley visitor center - - - 71,019 88,889 108,500 73,445 168,825 176,899 231,553
Interest on long-term debt 4,716,697 4,544,626 4,073,667 4,285,694 6,696,018 7,521,339 7,371,376 7,203,457 7,141,600 6,866,214
Unallocated depreciation expense 1,031,471 - - - - - - - - -
TOTAL PRIMARY GOVERNMENT EXPENSES 11,012,568$ 11,573,809$ 11,260,639$ 11,841,427$ 14,674,844$ 16,502,841$ 16,774,053$ 17,260,938$ 17,027,824$ 17,404,389$
PROGRAM REVENUES
Governmental activities
Charges for services* 648,939$ 942,992$ 747,041$ 824,678$ 535,640$ 908,508$ 1,085,440$ -$ -$ -$
General government - - - - - - - 1,026,971 1,368,102 1,352,001
Educational services - - - - - - - 25,806 37,111 46,940
Natural resource management - - - - - - - 471,519 1,082,500 359,920
Trail of history - - - - - - - 52,030 40,714 46,074
Research field station - - - - - - - 8,470 5,045 7,560
Operating grants 152,932 32,132 27,088 20,397 3,910 - - 2,123 1,077 2,658
Capital grants 809,511 1,399,056 726,787 1,738,724 3,569,118 1,122,990 1,376,805 832,136 867,954 928,411
TOTAL PRIMARY GOVERNMENT
PROGRAM REVENUES 1,611,382$ 2,374,180$ 1,500,916$ 2,583,799$ 4,108,668$ 2,031,498$ 2,462,245$ 2,419,055$ 3,402,503$ 2,743,564$
NET REVENUE (EXPENSE)
Governmental activities programs (9,401,186)$ (9,199,629)$ (9,759,723)$ (9,257,628)$ (10,566,176)$ (14,471,343)$ (14,311,808)$ (14,841,883)$ (13,625,321)$ (14,660,825)$
- 58 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GENERAL REVENUES
Governmental activities
Taxes
Property 11,667,202$ 12,154,306$ 12,146,911$ 12,743,793$ 13,351,739$ 17,536,668$ 18,115,161$ 18,427,173$ 18,920,946$ 19,286,175$
Replacement 115,655 133,469 165,643 191,451 212,089 194,194 171,891 191,065 172,361 170,886
Investment income 383,246 442,572 863,241 1,115,607 3,014,368 2,554,548 928,034 181,039 57,707 53,755
Contributions - - 4,001,643 - 596,209 826,930 8,504 - - -
Miscellaneous - - 12,142 80,192 102,485 214,685 231,602 60,530 47,028 34,650
Gain on disposal of assets 7,802 (226,490) 28,335 13,996 1,581 - 32,316 38,397 35,635 22,984
TOTAL PRIMARY GOVERNMENT 12,173,905$ 12,503,857$ 17,217,915$ 14,145,039$ 17,278,471$ 21,327,025$ 19,487,508$ 18,898,204$ 19,233,677$ 19,568,450$
CHANGE IN NET POSITION
Governmental activities 2,772,719$ 3,304,228$ 7,458,192$ 4,887,411$ 6,712,295$ 6,855,682$ 5,175,700$ 4,056,321$ 5,608,356$ 4,907,625$
Prior period adjustments -$ -$ (9,998,131)$ 750,000$ -$ -$ -$ -$ -$ -$
Source: District's audited financial statements
*Charges for services are presented by function beginning March 31, 2011.
- 59 -
MCHENRY COUNTY CONSERVATION DISTRICT
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013
GENERAL FUND
Reserved 5,048,874$ 4,462,263$ 10,822,344$ -$ -$ -$ -$ -$ -$ -$
Unreserved 3,467,788 4,087,503 3,519,108 3,428,072 3,879,058 4,049,994 4,410,018 4,230,925 - -
Unassigned - - - - - - - - 4,455,239 4,389,010
TOTAL GENERAL FUND 8,516,662$ 8,549,766$ 14,341,452$ 3,428,072$ 3,879,058$ 4,049,994$ 4,410,018$ 4,230,925$ 4,455,239$ 4,389,010$
ALL OTHER GOVERNMENTAL FUNDS
Reserved, reported in
Capital Project Funds -$ -$ 6,409,881$ 1,393,221$ 54,200,643$ 37,586,259$ 24,144,478$ 2,279,818$ -$ -$
Special Revenue Funds - - 130,073 156,563 178,819 190,361 198,200 937,604 - -
Debt Service Fund 200,721 488,214 583,238 701,969 861,791 916,392 887,966 871,862 - -
Unreserved reported in
Special Revenue Funds (38,076) 108,176 - - - - - - - -
Capital Project Funds 25,247,607 10,376,240 - 9,967,208 11,434,405 12,309,088 8,965,184 12,825,198 - -
Restricted - - - - - - - - 2,468,915 2,512,344
Committed - - - - - - - - 5,394,159 5,218,832
Assigned - - - - - - - - 4,800,469 2,866,513
TOTAL ALL OTHER
GOVERNMENTAL FUNDS 25,410,252$ 10,972,630$ 7,123,192$ 12,218,961$ 66,675,658$ 51,002,100$ 34,195,828$ 16,914,482$ 12,663,543$ 10,597,689$
* GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions was implemented for the fiscal year ending March 31, 2012.
Source: District's audited financial statements
- 60 -
MCHENRY COUNTY CONSERVATION DISTRICT
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
REVENUES
Property taxes 11,019,609$ 11,686,411$ 12,146,911$ 12,743,793$ 13,351,739$ 17,536,668$ 18,115,161$ 18,427,173$ 18,920,946$ 19,286,175$
Intergovernmental revenue 815,034 1,507,358 919,518 1,950,572 3,785,117 1,317,184 1,548,696 889,867 438,551 598,313
Rental income 482,717 638,158 593,547 649,831 407,721 787,276 945,276 973,113 1,315,966 1,291,378
Investment income 383,246 442,572 863,241 1,115,607 3,014,368 2,554,548 928,034 181,039 57,707 53,755
Miscellaneous 171,434 319,017 167,279 255,039 488,213 335,917 380,270 1,097,826 1,673,433 697,509
Total revenues 12,872,040 14,593,516 14,690,496 16,714,842 21,047,158 22,531,593 21,917,437 21,569,018 22,406,603 21,927,130
EXPENDITURES
General government
General government 973,732 1,207,705 1,223,780 1,157,492 1,393,978 1,591,579 1,640,575 1,591,669 1,690,451 1,767,734
Educational services 483,930 518,388 573,824 609,287 664,370 705,416 720,062 718,304 728,911 731,936
Police and safety 582,931 623,422 698,817 727,453 923,822 1,068,904 1,167,216 1,222,285 1,245,762 1,272,910
Land and facilities management 1,603,910 1,745,103 1,750,245 1,952,697 1,714,413 1,949,732 1,945,078 2,288,006 2,282,681 2,203,614
Natural resource management 612,516 759,836 822,195 845,390 986,604 1,041,848 1,120,425 1,753,217 1,736,424 1,504,136
Wildlife resource center 140,391 144,239 152,957 161,113 176,036 186,677 202,005 201,092 210,103 212,057
Planning and development 129,495 131,137 179,112 184,685 223,092 243,036 244,964 2,243,623 1,513,719 1,444,877
Communications 385,360 365,949 306,230 361,608 326,875 373,287 342,280 356,058 355,305 383,854
Land development and acquisition 206,044 173,650 3,932,599 11,506,969 23,092,563 18,802,362 14,145,072 14,068,148 1,087,428 822,616
Trail of history 70,880 75,005 47,464 47,188 44,988 45,429 45,404 30,841 35,181 31,354
Research field station 96,113 112,330 108,489 113,043 120,675 142,491 146,709 145,327 155,179 140,064
Lost Valley visitor center - - - 70,927 130,889 104,227 68,878 140,453 168,346 211,010
Debt Service
Principal 1,360,000 1,755,000 2,630,000 2,615,000 2,935,000 3,285,000 3,655,000 4,045,000 5,975,000 4,915,000
Interest 4,726,421 4,668,399 3,925,963 4,130,956 6,048,062 7,557,842 7,411,204 7,247,554 7,201,627 6,994,625
Capital outlay 9,566,124 15,352,806 731,847 5,117,297 3,114,095 946,820 5,541,129 3,016,277 2,082,746 1,478,309
Total expenditures 20,937,847 27,632,969 17,083,522 29,601,105 41,895,462 38,044,650 38,396,001 39,067,854 26,468,863 24,114,096
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (8,065,807) (13,039,453) (2,393,026) (12,886,263) (20,848,304) (15,513,057) (16,478,564) (17,498,836) (4,062,260) (2,186,966)
- 61 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
OTHER FINANCING SOURCES (USES)
Bonds issued -$ -$ -$ -$ 73,000,000$ -$ -$ -$ -$ -$
Issuance of refunding bonds - (4,276,796) - - - - - - - -
Installment contract issued - - - 6,300,000 - - - - - -
Premium on bonds issuance (refunding) - 4,596,625 - - 2,754,406 - - - - -
Transfers in - - - 12,182,551 - - - 331,696 - -
Transfers (out) - - - (12,182,551) - - - (331,696) - -
Sale of capital assets 7,802 7,861 32,509 18,652 1,581 10,435 32,316 38,397 35,635 54,883
Total other financing sources (uses) 7,802 327,690 32,509 6,318,652 75,755,987 10,435 32,316 38,397 35,635 54,883
NET CHANGE IN FUND BALANCES (8,058,005)$ (12,711,763)$ (2,360,517)$ (6,567,611)$ 54,907,683$ (15,502,622)$ (16,446,248)$ (17,460,439)$ (4,026,625)$ (2,132,083)$
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 49.56% 48.29% 52.13% 51.37% 54.67% 58.42% 58.72% 57.37% 61.84% 58.16%
Source: District's audited financial statements
- 62 -
MCHENRY COUNTY CONSERVATION DISTRICT
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Levy Years
Railroad Total Estimated Total
Levy Real Property Property & Assessed Actual Direct
Year Farm Residential Commercial Industrial Other Other Valuation Value Tax Rate
2003 201,634,517$ 5,710,037,487$ 780,498,796$ 326,803,649$ 13,193,732$ 4,590,449$ 7,036,758,630$ 21,110,275,890$ 0.166$
2004 209,598,061 6,266,193,513 863,041,722 347,842,544 13,756,505 5,115,632 7,705,547,977 23,116,643,931 0.158
2005 227,318,495 7,010,406,096 946,541,231 359,681,646 15,933,834 4,780,696 8,564,661,998 25,693,985,994 0.149
2006 242,284,601 7,739,948,744 1,042,482,191 378,488,761 15,210,290 5,075,587 9,423,490,174 28,270,470,522 0.142
2007 255,194,149 8,360,880,272 1,125,071,165 395,468,291 14,396,994 4,909,505 10,155,920,376 30,467,761,128 0.173
2008 270,049,021 8,639,858,959 1,186,655,676 410,478,144 14,245,656 5,356,962 10,526,644,418 31,579,933,254 0.173
2009 276,661,363 8,513,622,624 1,215,583,923 410,116,150 13,427,368 6,172,004 10,435,583,432 31,306,750,296 0.177
2010 275,661,935 7,866,580,876 1,166,707,825 397,434,087 13,403,575 7,692,777 9,727,481,075 29,182,443,225 0.196
2011 263,585,558 7,155,985,786 1,042,866,545 359,374,976 12,328,505 8,207,596 8,842,348,966 26,527,046,898 0.219
2012 246,686,423 6,375,959,804 936,643,061 326,075,383 12,468,064 9,222,423 7,907,055,158 23,721,165,474 0.248
Source: McHenry County Assessor's Office
Note: Property in McHenry County is reassessed annually. The County assesses property at approximately 33.3% of actual value.
Estimated actual value is calculated by dividing total assessed value by that percentage. Tax rates are per $100 of assessed value.
- 63 -
MCHENRY COUNTY CONSERVATION DISTRICT
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Levy Years
Levy Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
DIRECT RATES - DISTRICT
General 0.0717 0.0696 0.0676 0.0660 0.0644 0.0657 0.0669 0.0741 0.0829 0.0927
Loss prevention 0.0032 0.003 0.0023 0.0021 0.0019 0.0019 0.0020 0.0022 0.0026 0.0029
Debt 0.0914 0.0854 0.0791 0.0744 0.1075 0.1055 0.1086 0.1193 0.1336 0.1525
Total Direct Rates - District 0.1663 0.158 0.149 0.1425 0.1738 0.1731 0.1775 0.1956 0.2191 0.2481
OVERLAPPING RATES
Municipalities 0.221-1.526 0.202-1.512 0.191-1.472 0.184-1.467 0.180-1.426 0.175-1.409 0.178-1.447 0.180-1.487 0.192-1.707 .207-1.943
Unit School Districts 3.905-4.920 3.522-4.791 3.654-4.738 3.587-4.517 3.446-4.677 3.378-4.609 3.172-4.693 3.274-4.791 3.503-5.226 3.638-5.894
Elementary School Districts 2.023-3.360 2.029-3.498 1.941-3.743 1.862-3.683 1.919-3.754 1.869-3.714 1.891-3.794 1.956-3.933 2.154-4.229 2.487-5.250
High School Districts 1.815-2.157 1.759-2.093 1.970-2.035 1.659-2.086 1.599-2.154 1.552-2.149 1.559-2.241 1.625-2.279 1.780-2.510 2.093-2.926
Community College Districts 0.318-0.438 0.301-0.453 0.301-0.450 0.256-0.447 0.274-0.491 0.263-0.478 0.258-0.436 0.274-0.467 0.278-0.454 .290-.465
County 0.673 0.715 0.735 0.728 0.706 0.687 0.701 0.716 0.792 0.888
Township and Road Districts 0.128-0.744 0.118-0.736 0.110-0.701 0.105-0.664 0.102-0.644 0.098-0.629 0.099-0.647 0.101-0.658 0.123-0.708 .123-.586
Park Districts 0.025-0.592 0.025-0.577 0.028-0.553 0.300-0.534 0.031-0.524 0.032-0.508 0.029-0.528 0.032-0.535 0.034-0.575 .035-.659
Fire Protection Districts 0.138-0.658 0.134-0.656 0.132-0.660 0.126-0.635 0.189-0.623 0.184-0.612 0.188-0.638 0.193-0.637 0.213-0.718 .243-.722
Library Districts 0.082-0.446 0.080-0.429 0.078-0.418 0.074-0.400 0.071-0.395 0.069-0.383 0.071-0.392 0.072-0.391 0.078-0.419 .089-.467
Sanitary Districts 0.047-0.066 0.044-0.061 0.044-0.060 0.045-0.057 0.044-0.056 0.049-0.054 0.056-0.057 0.057 0.062-0.066 .070-.071
Cemetery Districts 0.001-0.010 0.001-0.009 0.001-0.008 0.001-0.008 0.001-0.008 0.001-0.008 0.001-0.008 0.001-0.008 0.001-0.009 .002-.011
Rescue Squad District 0.096 0.093 0.091 0.088 0.200 0.195 0.199 0.200 0.200 0.200
Sources: McHenry County Assessor's Office
Cited from McHenry County of Illinois' 2012 CAFR
District Records
Note: Property in McHenry County is reassessed annually. The County assesses property at approximately 33.3% of actual value.
Estimated actual value is calculated by dividing total assessed value by that percentage. Tax rates are per $100 of assessed value.
- 64 -
MCHENRY COUNTY CONSERVATION DISTRICT
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2012 2003
% of Total % of Total
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
Wal Mart Stores, Inc 18,273,540$ 1 0.19 7,715,826$ 6 0.11
Nimed Corp 12,797,559 2 0.14 6,744,472 8 0.10
Meijer Stores 9,727,540 3 0.10 11,328,006 3 0.17
Inland Real Estate Corp 9,298,462 4 0.10 - - -
Sky Ridge Partners LP 9,288,195 5 0.10 - - -
Rubloff 8,878,646 6 0.09 - - -
Centro Bradley 8,807,033 7 0.09 - - -
DDR McHenry SQ 8,702,012 8 0.09 - - -
Federal Home Loan Mortgage Co. 8,564,785 9 0.09 - - -
Motorola 8,504,503 10 0.09 20,997,900 1 0.31
Cunat Bros. Inc. - - - 14,153,114 2 0.21
Bradley Real Estate - - - 8,622,415 4 0.13
Crystal Point Center LLC - - - 8,300,828 5 0.12
American Prudential - - - 6,820,420 7 0.10
Home Depot USA inc. - - - 6,441,699 9 0.10
Terra Cotta Realty Co. - - - 6,125,285 10 0.09
102,842,275$ 1.08 97,249,965$ 1.44
Source: McHenry County Assessor's Office
Cited from McHenry County of Illinois' 2012 CAFR
Taxpayer
- 65 -
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Levy Years
Collected
Levy Fiscal Taxes in Subsequent
Year Year Levied Amount % of Levy Years Amount % of Levy
2002 2003/04 11,039,347$ 11,019,609$ 99.82% N/A 11,019,609$ 99.82%
2003 2004/05 11,702,145 11,686,411 99.87% N/A 11,686,411 99.87%
2004 2005/06 12,174,788 12,146,910 99.77% N/A 12,146,910 99.77%
2005 2006/07 12,761,358 12,743,793 99.86% N/A 12,743,793 99.86%
2006 2007/08 13,376,717 13,351,738 99.81% N/A 13,351,738 99.81%
2007 2008/09 17,579,130 17,536,668 99.76% N/A 17,536,668 99.76%
2008 2009/10 18,166,766 18,115,161 99.72% 810$ 18,115,971 99.72%
2009 2010/11 18,462,233 18,426,364 99.81% 2,109 18,428,473 99.82%
2010 2011/12 18,964,957 18,918,837 99.76% 1,010 18,919,847 99.76%
2011 2012/13 19,317,899 19,286,174 99.84% - 19,286,174 99.84%
N/A - not available
Sources: McHenry County Treasurer's Office
District Records
Collected within the Fiscal
Year of the Levy
Total Collections
to Date
MCHENRY COUNTY CONSERVATION DISTRICT
- 66 -
MCHENRY COUNTY CONSERVATION DISTRICT
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
General Total % of
Fiscal Obligation Installment Primary Personal Per
Year Bonds Contract Government Income Capita
2004 88,625,000$ -$ 88,625,000$ 0.91% 309.78
2005 88,520,000 - 88,520,000 0.86% 298.66
2006 85,890,000 - 85,890,000 0.80% 282.54
2007 83,275,000 6,300,000 89,575,000 0.77% 286.76
2008 153,340,000 6,300,000 159,640,000 1.30% 505.28
2009 150,055,000 6,300,000 156,355,000 1.22% 490.69
2010 146,400,000 6,300,000 152,700,000 1.25% 475.76
2011 142,355,000 6,300,000 148,655,000 1.21% 481.46
2012 137,880,000 4,800,000 142,680,000 1.12% 461.83
2013 132,965,000 4,800,000 137,765,000 1.06% 447.08
Sources: District records
Notes: Details regarding the District's outstanding debt can be found in the notes to financial
statements.
See the Demographic and Economic Statistics schedule for the personal income and
population data.
- 67 -
MCHENRY COUNTY CONSERVATION DISTRICT
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Percentage
Amounts Net of Estimated
General Available General Actual
Fiscal Obligation In Debt Bonded Value of Per
Year Bonds Service Fund Debt Property Capita
2004 88,625,000$ 200,721$ 88,424,279$ 1.26% 318.41
2005 88,520,000 488,214 88,031,786 1.14% 307.71
2006 85,890,000 583,238 85,306,762 1.00% 287.82
2007 83,275,000 701,969 82,573,031 0.88% 271.63
2008 153,340,000 861,791 152,478,209 1.50% 488.13
2009 150,055,000 916,392 149,138,608 1.42% 472.04
2010 146,400,000 887,966 145,512,034 1.39% 456.66
2011 142,355,000 871,862 141,483,138 1.45% 440.81
2012 137,880,000 877,934 137,002,066 1.55% 443.72
2013 132,965,000 859,181 132,105,819 1.67% 428.71
Sources: District's records
Notes: Details regarding the District's outstanding debt can be found in the notes to financial
statements.
See the schedule of Assessed Value and Estimated Actual Value of Taxable Property
for actual value of property information.
- 68 -
MCHENRY COUNTY CONSERVATION DISTRICT
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
March 31, 2013
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Outstanding Applicable Debt
Direct
McHenry County Conservation District 137,765,000$ 100.0% 137,765,000$
Overlapping
Municipalities 142,780,000 5.6 - 100.0 122,875,000
McHenry County 57,678,000 100 57,678,000
Unit School Districts 890,469,000 .1 - 100.0 391,792,000
Elementary School Districts 115,898,000 93.3 - 100.0 112,961,000
High School Districts 61,484,000 98.5 - 100.0 61,198,000
Community College Districts 426,808,000 .1 - 96.3 19,203,000
Township and Road Districts 2,560,000 100 2,560,000
Park Districts 36,519,000 81.5 100.0 33,482,000
Fire Protection Districts 16,374,000 6.3 - 100.0 11,770,000
Library Districts 21,543,000 2.1 - 100.0 6,471,000
Total Estimated Overlapping Debt 819,990,000
Total Direct and Estimate Overlapping Debt 957,755,000$
Sources: Assessed value data used to estimate applicable percentages provided the County Clerk's
Office as reported on the McHenry County's 2012 CAFR. Debt outstanding data obtained
from annual reports submitted to the Illinois Comptroller or Illinois State Board of Education
or from individual comprehensive annual financial reports and was cited from the McHenry
County's 2012 CAFR.
Notes: The estimated percentage of overlapping debt applicable was cited from the McHenry County's
2012 CAFR. Applicable percentages were estimated by determining the portion of another
district's assessed value that is within the County's boundaries and dividing it by that district's
total assessed value.
- 69 -
MCHENRY COUNTY CONSERVATION DISTRICT
LEGAL DEBT MARGIN
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Debt Limit 121,384,086$ 132,920,703$ 147,740,419$ 162,555,206$ 175,189,626$ 181,584,616$ 180,013,814$ 167,799,049$ 152,530,520$ 136,396,701$
Less: total debt applicable to limit (88,625,000) (88,520,000) (89,575,000) (89,575,000) (159,640,000) (156,355,000) (152,700,000) (148,655,000) (142,680,000) (137,765,000)
Legal debt margin 32,759,086$ 44,400,703$ 58,165,419$ 72,980,206$ 15,549,626$ 25,229,616$ 27,313,814$ 19,144,049$ 9,850,520$ (1,368,299)$
Total debt applicable to limit
as a percentage to debt limit 73.0% 66.6% 58.1% 55.1% 91.1% 86.1% 84.8% 88.6% 93.5% 101.0%
Legal Debt Margin Calculation as of March 31, 2013
Assessed valuation December 31, 2012 7,907,055,158$
Debt limitation (1.725% of assessed valuation) 136,396,701$
Less debt outstanding applicable to limit
General Obligation Bonds (132,965,000)
Installment contracts (4,800,000)
Legal Debt Margin as of March 31, 2013 (1,368,299)$
Source: District's audited financial statements
County Clerk's Office
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MCHENRY COUNTY CONSERVATION DISTRICT
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
(2) Per Capita (3) (3) (4)
Fiscal (1) Personal Personal School Number of Unemployment
Year Population Income Income Enrollment Teachers Rate
2004 286,091 9,707,351,000$ 33,931$ 50,097 3,654 5.9%
2005 296,389 10,333,931,000 34,866 51,535 3,638 5.2%
2006 303,990 10,745,175,000 35,347 53,235 3,350 5.1%
2007 312,373 11,684,785,000 37,407 53,917 3,142 3.7%
2008 315,943 12,291,318,000 38,904 54,256 3,523 4.3%
2009 318,641 12,841,866,000 40,302 54,350 3,742 5.8%
2010 320,961 12,221,779,000 38,079 54,080 3,648 9.7%
2011 308,760 12,287,823,000 39,797 53,179 3,456 9.6%
2012 308,944 12,701,822,000 41,114 52,875 3,438 9.4%
2013 308,145 12,946,856,000 42,015 52,209 3,369 8.4%
Sources:
(1) U.S. Census Bureau
(2) Bureau of Economic Analysis, U.S. Dept. of Commerce
(3) Regional Superintendent of Schools
(4) Illinois Dept. of Employment Security
- 71 -
MCHENRY COUNTY CONSERVATION DISTRICT
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2012 2003
% of Total % of Total
County County
Employer Employees Rank Employment Employees Rank Employment
Centegra Health System 3,750 1 2.32 2,830 1 1.88
Wal Mart Stores, Inc 2,400 2 1.48 - - -
Jewel Osco 1,400 3 0.86 - - -
County of McHenry 1,400 4 0.86 1,130 2 0.75
Follett Library Resources 1,200 5 0.74 989 3 0.66
McHenry County College 855 6 0.53 605 7 0.40
Catalent Pharma Solutions 750 7 0.46 - - -
Mercy Health Systems 685 8 0.42 - - -
Brown Printing 650 9 0.40 670 6 0.44
Snap-On Tools, Inc. 639 10 0.39 - - -
Intermatic Inc. - - - 950 4 0.63
Dana Corp/ Brake Parts Inc - - - 750 5 0.50
Cardinal Health Steril Technologies - - - 600 8 0.40
Manpower - - - 600 9 0.40
Tru Serv Corp. - 525 10 0.35
13,729 8.46% 9,649 6.41%
Source: McHenry County Assessor's Office
Cited from McHenry County of Illinois' 2012 CAFR
- 72 -
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
Last Nine Fiscal Years
Function and Program 2005 2006 2007 2008 2009 2010 2011 2012 2013
Administration 10.1 10.1 10.1 11.9 11.9 11.6 11.6 10.6 10.8
Land and facilities 19.6 19.8 20 20.6 20.6 22.2 22.2 28.1 28
Natural resource management 15.4 16.4 16.4 15.4 15.4 15.4 15.4 18.5 18.3
Education 8.8 9 9 9 9 9 8 10.5 10.6
Wildlife resources 2.8 2.8 2.8 2.8 2.8 2.8 2.8 3 3
Communications 3 3 3 3 3 3 3 3 3
Planning and development 3 3 3 3 3 3 3 3 3
Police department 11.8 12 12 12 14 14 14 14 14
TOTAL FULL-TIME EQUIVALENTS 74.5 76.1 76.3 77.7 79.7 81 80 90.7 90.7
Source: District's records
Note: Ten years of information is not available
MCHENRY COUNTY CONSERVATION DISTRICT
- 73 -
MCHENRY COUNTY CONSERVATION DISTRICT
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
DISTRICT OPERATIONS
Acreage owned 18,911 19,728 19,991 20,701 22,121 23,226 23,876 24,783 24,910 25,022
RECREATION
Sites open to the public 25 27 29 31 32 33 35 38 41 42
Miles of bike trails 34.0 34.0 38.0 38.0 38.0 42.0 43.8 43.8 44.8 45
Number of site visitors 484,664 370,348 724,103 1,143,001 885,361 857,810 774,764 672,528 606,706 698,025
NATURAL RESTORATIONS
Number of managed burns 33 24 25 29 40 49 41 49 60 43
Total acres burned 1,894 1,883 1,792 1,765 2,194 3,195 1,840 2,239 3,005 2,225
Number of seeding projects 14 7 15 47 66 71 24 54 41 35
Number of acres seeded 159 90 61 143 416 452 576 370 382 136
WILDLIFE RESOURCES
Number of wildlife programs 175 189 198 177 151 173 163 137 160 143
Total attendance of programs 6,076 6,581 6,041 5,714 4,269 5,839 4,561 3,831 5,159 4,072
EDUCATION
Number of educational programs 674 701 653 677 577 944 621 577 605 634
Total attendance of programs 39,383 33,547 36,502 32,258 35,070 36,359 34,187 32,987 32,137 33,240
POLICE
Public relations programs events NA NA NA NA NA NA 26 31 22 16
District ordinance citations issued 45 41 102 78 71 85 172 208 105 76
Illinois citations issued 135 85 153 94 39 46 79 119 62 50
Warnings 183 520 510 430 335 294 822 1,462 1,169 537
Arrests 58 19 52 28 35 31 21 86 98 29
Sources: District Records
Note: NA means the information was "not available."
- 74 -
MCHENRY COUNTY CONSERVATION DISTRICT
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
BUILDINGS
Primary administrative 1 1 1 1 1 1 1 1 1 1
Education centers 2 2 2 2 2 2 2 2 3 3
Police headquarters 1 1 1 1 1 1 1 1 1 1
Wildlife resource centers 1 1 1 1 1 1 1 1 1 1
Research field stations 1 1 1 1 1 1 1 1 - -
Natural resource management 1 1 1 1 1 1 1 1 1 1
Maintenance shops 5 5 5 5 6 6 6 6 6 6
Ranger shops 1 1 1 1 1 1 1 1 1 1
RECREATIONAL FACILITIES
Sites open to the public 25 27 29 31 32 33 35 38 41 42
Miles of bike trails 34.0 34.0 38.0 38.0 38.0 42.0 43.8 43.8 44.8 44.8
Hiking and walking paths 67.5 74.0 77.5 86.8 86.8 90.8 81.5 90.8 98.1 98.1
Shelters for site users 19 21 21 21 21 21 21 23 25 25
Campgrounds 7 7 7 7 7 7 7 7 7 7
Sources: District Records
- 75 -
OTHER INFORMATION - UNAUDITED
Nonreferendum
Debt Service
Debt Service Nonreferendum Extension Base
Levy Year Extension Base Debt Service Margin
2011 2,401,243$ 2,091,300$ 309,943$
2012 2,401,243 2,090,825 310,418
2013 2,401,243 2,095,050 306,193
2014 2,401,243 2,034,725 366,518
2015 2,401,243 1,877,700 523,543
2016 2,401,243 1,878,713 522,530
2017 2,401,243 - 2,401,243
2018 2,401,243 - 2,401,243
2019 2,401,243 - 2,401,243
2020 2,401,243 - 2,401,243
2021 2,401,243 - 2,401,243
2022 2,401,243 - 2,401,243
2023 2,401,243 - 2,401,243
2024 2,401,243 - 2,401,243
2025 2,401,243 - 2,401,243
2026 2,401,243 - 2,401,243
2027 2,401,243 - 2,401,243
2028 2,401,243 - 2,401,243
12,068,313$
Source: McHenry County Conservation District
MCHENRY COUNTY CONSERVATION DISTRICT
DEBT SERVICE EXTENSION BASE
UNAUDITED
March 31, 2013
- 76 -
Total Debt
Service on New
Fiscal Year Debt Service Bonds and
Ending on Outstanding Outstanding
March 31 Bonds Principal Interest Total Bonds
2014 8,358,510$ -$ 3,666,869$ 3,666,869$ 12,025,379$
2015 8,624,735 - 3,666,869 3,666,869 12,291,604
2016 8,893,910 - 3,666,869 3,666,869 12,560,779
2017 9,164,385 - 3,666,869 3,666,869 12,831,254
2018 9,444,213 - 3,666,869 3,666,869 13,111,082
2019 9,735,250 - 3,666,869 3,666,869 13,402,119
2020 10,031,750 - 3,666,869 3,666,869 13,698,619
2021 10,342,500 - 3,666,869 3,666,869 14,009,369
2022 - 10,730,000 3,666,869 14,396,869 14,396,869
2023 - 11,270,000 3,130,368 14,400,368 14,400,368
2024 - 11,830,000 2,566,868 14,396,868 14,396,868
2025 - 12,425,000 1,975,368 14,400,368 14,400,368
2026 - 13,045,000 1,354,118 14,399,118 14,399,118
2027 - 13,695,000 701,869 14,396,869 14,396,869
74,595,253$ 72,995,000$ 42,730,412$ 115,725,412$ 190,320,665$
Future financing
The District does not expect to issue additional debt within the next 12 months.
Debt service schedule
This table sets forth the total debt service schedule for the District's general obligation bonds.
Default history
There is no record of default on obligations by the District or issuance of obligations to avoid default.
Short-term borrowing
The District does not currently utilize any short-term borrowing.
Source: McHenry County Clerk
Debt Service on New Bonds
DEBT SERVICE SCHEDULE
MCHENRY COUNTY CONSERVATION DISTRICT
UNAUDITED
March 31, 2013
- 77 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ASSETS
Cash and cash equivalents 7,971,708$ 11,402,618$ 14,592,809$ 4,827,161$ 5,162,971$ 5,405,242$ 5,862,355$ 4,876,085$ 5,769,372$ 5,639,765$
Short-term investments 350,271 329,326 152,320 - - - - - - -
Receivables
Property taxes, net of allowance 4,994,918 5,339,945 5,731,826 6,133,577 6,448,648 6,828,295 6,888,651 7,114,699 7,238,254 7,238,290
Due from other governmental units 3,260,264 272,421 2,683,396 42,643 37,663 37,212 31,839 36,220 38,146 40,386
Other receivables - - 31,044 48,333 40,186 62,921 26,590 22,239 8,682 9,025
Prepaid items - - 6,428 - - - - - - -
Due from other funds - - 547 27,439 3,829 3,829 96,815 914,624 259,949 300,549
TOTAL ASSETS 16,577,161 17,344,310 23,198,370 11,079,153 11,693,297 12,337,499 12,906,250 12,963,867 13,314,403 13,228,015
DEFERRED OUTFLOWS OF RESOURCES
None - - - - - - - - - -
Total deferred outflows of resources - - - - - - - - - -
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 16,577,161$ 17,344,310$ 23,198,370$ 11,079,153$ 11,693,297$ 12,337,499$ 12,906,250$ 12,963,867$ 13,314,403$ 13,228,015$
Last Ten Fiscal Years
ASSETS AND DEFERRED
MCHENRY COUNTY CONSERVATION DISTRICT
BALANCE SHEETS - GENERAL FUND
UNAUDITED
OUTFLOWS OF RESOURCES
- 78 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
LIABILITIES
Accounts payable 34,190$ 102,800$ 132,851$ 366,156$ 104,616$ 239,733$ 237,213$ 254,361$ 182,734$ 164,966$
Accrued liabilities 427,084 420,665 218,419 253,116 205,653 290,184 247,583 299,025 438,764 418,117
Due to other funds 503,533 870,463 748,798 898,232 1,026,217 929,293 1,122,785 1,064,857 999,412 1,017,632
Unearned revenue - 2,058,928 2,025,024 - 29,105 - - - - -
Total liabilities 964,807 3,452,856 3,125,092 1,517,504 1,365,591 1,459,210 1,607,581 1,618,243 8,859,164 1,600,715
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 7,095,692 5,341,688 5,731,826 6,133,577 6,448,648 6,828,295 6,888,651 7,114,699 7,238,254 7,238,290
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES 8,060,499 8,794,544 8,856,918 7,651,081 7,814,239 8,287,505 8,496,232 8,732,942 16,097,418 8,839,005
FUND BALANCES
Reserved/Restricted 5,048,874 4,462,263 10,822,344 - - - - - - -
Unreserved/unassigned 3,467,788 4,087,503 3,519,108 3,428,072 3,879,058 4,049,994 4,410,018 4,230,925 4,455,239 4,389,010
Total fund balances 8,516,662 8,549,766 14,341,452 3,428,072 3,879,058 4,049,994 4,410,018 4,230,925 4,455,239 4,389,010
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCE 16,577,161$ 17,344,310$ 23,198,370$ 11,079,153$ 11,693,297$ 12,337,499$ 12,906,250$ 12,963,867$ 20,552,657$ 13,228,015$
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
- 79 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
REVENUES
Taxes
Property 4,721,780$ 5,038,579$ 5,381,543$ 5,781,748$ 6,183,951$ 6,498,054$ 6,877,675$ 6,945,017$ 7,169,884$ 7,299,335$
Licenses and permits - - - 27,100 - - - - - -
Intergovernmental revenue 815,034 1,507,358 919,518 205,245 215,999 194,194 171,891 191,065 172,361 172,486
Charges for services - - - - - - 140,164 140,164 135,006 161,197
Rental income 482,717 638,158 593,547 649,831 407,721 787,276 945,276 973,113 1,315,966 1,291,378
Investment income 87,880 171,564 458,839 252,491 261,462 165,129 117,717 48,628 27,768 34,688
Donations - - - - - - 8,504 2,123 1,077 1,738
Miscellaneous 171,434 319,017 167,279 139,703 223,917 195,235 53,739 51,964 39,787 30,589
Total revenues 6,278,845 7,674,676 7,520,726 7,056,118 7,293,050 7,839,888 8,314,966 8,352,074 8,861,849 8,991,411
EXPENDITURES
General government 776,861 1,059,370 1,043,197 983,848 1,134,573 1,305,320 1,317,502 1,375,284 1,444,993 1,531,959
Education services 483,930 518,388 573,824 609,287 664,370 705,416 720,062 718,304 728,911 731,936
Police and safety services 582,931 623,422 698,817 727,453 923,822 1,068,904 1,167,216 1,222,285 1,245,762 1,272,910
Land and facilities management 1,603,910 1,745,103 1,750,245 1,952,697 1,714,413 1,949,732 1,945,078 2,057,213 2,173,924 2,186,364
Natural resources management 612,516 759,836 812,640 845,390 986,604 1,041,848 1,120,425 1,159,723 1,136,436 1,270,069
Wildlife resources 140,391 144,239 152,957 161,113 176,036 186,677 202,005 201,092 210,103 212,057
Planning and development 129,495 131,137 179,112 184,685 223,092 243,036 244,964 265,829 283,929 290,706
Communications 385,360 365,949 306,230 361,608 326,875 373,287 342,280 356,058 355,305 383,854
Land development and acquisition - - - - - - - - - -
Trail of history 70,880 75,005 47,464 47,188 44,988 45,429 45,404 30,841 35,181 31,354
Promotional expenses - - - - - - - - - -
Pipeline agreement - 3,525 - - - - - - - -
Boger project - 9,855 9,555 - - - - - - -
Kishwaukee ecosystem project 32,400 - - - - - - - - -
Research field station 96,113 112,330 108,489 113,043 120,675 142,491 146,709 145,327 155,179 140,064
Lost Valley Visitor Center - - - 70,927 130,889 104,227 68,878 140,453 168,346 211,010
Capital outlay 1,175,993 421,899 731,847 498,360 397,308 509,020 666,735 897,155 733,601 850,240
Total expenditures 6,090,780 5,970,058 6,414,377 6,555,599 6,843,645 7,675,387 7,987,258 8,569,564 8,671,670 9,112,523
MCHENRY COUNTY CONSERVATION DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GENERAL FUND
UNAUDITED
Last Ten Fiscal Years
- 80 -
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 188,065$ 1,704,618$ 1,106,349$ 500,519$ 449,405$ 164,501$ 327,708$ (217,490)$ 190,179$ (121,112)$
OTHER FINANCING SOURCES (USES) 7,802 7,861 32,509 (12,163,899) 1,581 6,435 32,316 38,397 34,135 54,883
NET CHANGE IN FUND BALANCES 195,867 1,712,479 1,138,858 (11,663,380) 450,986 170,936 360,024 (179,093) 224,314 (66,229)
FUND BALANCES, APRIL 1 3,906,132 8,516,662 8,549,766 14,341,452 3,428,072 3,879,058 4,049,994 4,410,018 4,230,925 4,455,239
Prior period adjustment - (1,679,375) 4,652,828 750,000 - - - - - -
Transfer in 4,414,663 - - - - - - - - -
FUND BALANCES, APRIL 1, RESTATED 8,320,795 6,837,287 13,202,594 15,091,452 3,428,072 3,879,058 4,049,994 4,410,018 4,230,925 4,455,239
FUND BALANCES, MARCH 31 8,516,662$ 8,549,766$ 14,341,452$ 3,428,072$ 3,879,058$ 4,049,994$ 4,410,018$ 4,230,925$ 4,455,239$ 4,389,010$
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