Comprehensive Annual Financial · PDF fileINTRODUCTORY SECTION ... Schedule of Revenues, ... We are pleased to submit the Comprehensive Annual Financial Report of the McHenry County

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, 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.

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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

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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.

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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.

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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.


- 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.


- 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.


- 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.


- 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


- 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.


- 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


% 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.


- 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


% 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:


- 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.


- 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


- 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.


- 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.


- 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.


- 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,


- 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


- 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.


- 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


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)


STATEMENT OF ACTIVITIES

For the Year Ended March 31, 2013



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


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


TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES


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


RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION



STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


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$


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$



RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES

EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE


- 9 -


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 -


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 -



- 11 -


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 -



- 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 -



- 13 -


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 -



- 14 -


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 -



- 15 -


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.

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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 $ - $ -

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- 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.

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- 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

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- 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.

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- 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

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- 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


(Continued)


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


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


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


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

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- 22 -


c. Changes in Long-Term Liabilities (Continued)

Debt

Retired

By

Balances

April 1

Additions

Reductions

Balances

March 31

Due Within

One Year


(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

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- 23 -


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.

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- 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

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- 25 -


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.

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- 26 -


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.

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- 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 -



- 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%

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- 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 -



- 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.

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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)


OVER EXPENDITURES (642,177) (121,112) 521,065


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$


SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND


(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


SCHEDULE OF FUNDING PROGRESS

ILLINOIS MUNICIPAL RETIREMENT FUND


(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


2012 - 145,721 0.00% 145,721 4,160,902 3.50%


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.


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


SCHEDULE OF EMPLOYER CONTRIBUTIONS

ILLINOIS MUNICIPAL RETIREMENT FUND


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.


SCHEDULE OF EMPLOYER CONTRIBUTIONS

OTHER POSTEMPLOYMENT BENEFITS PLAN

March 31, 2013


- 35 -


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


SCHEDULE OF REVENUES - BUDGET AND ACTUAL


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


Donations 250 1,738

Miscellaneous 17,275 30,589

TOTAL REVENUES 8,959,855$ 8,991,411$

GENERAL FUND


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


SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL

GENERAL FUND


(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





Life insurance 855 781

Total personnel 653,717 628,830


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



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



SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)

GENERAL FUND




Original and

Final

Budget Actual


GENERAL FUND



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


Utilities 34,399 28,392



Total educational services 778,258 731,936

Police and safety services

Personnel

Salaries 755,196 734,007

Seasonal - 239





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


Bike patrol expense 6,100 4,342

Employee expense 1,500 1,504

Communication equipment maintenance 14,000 15,069


Safety training 9,500 9,102

Supplies 5,684 10,935


Janitorial 621 439

Waste disposal 375 -

Building maintenance 960 -

Vehicle maintenance 10,000 13,197





Original and

Final

Budget Actual


GENERAL FUND



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



Total police and safety services 1,344,528 1,272,910

Land and facilities management

Personnel

Salaries 1,158,666 1,145,498






Employee mileage reimbursement 200 187

Meetings - 213

Employee relations 3,700 4,598



Utilities - all facilities 79,217 85,407

Janitorial services 1,995 962


Dues, subscriptions, and memberships 1,200 438





Road and bridge maintenance 34,542 23,367

Water and sewer maintenance 33,073 30,818

Fence and gate maintenance 4,280 6,829


Original and

Final

Budget Actual


GENERAL FUND



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


Commodities

Office supplies 1,500 8,234

Office equipment rental and maintenance 3,900 3,060


Site maintenance supplies 123,195 107,563

Shop tools 17,085 12,942


Supplies 28,980 23,266

Signs and display materials 8,685 9,248

Tables, grills, and trash cans 9,661 8,726



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






Meetings 1,020 701

Employee relations - 32



Original and

Final

Budget Actual


GENERAL FUND



Natural resources management (Continued)


Resource management supplies and maintenance 76,849$ 71,408$



Building maintenance 530 306

Water and sewer maintenance - -

Vehicle repair 7,500 3,853




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


Utilities 25,956 14,998


Stewardship program 1,000 969


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







Employee relations 125 116



Original and

Final

Budget Actual


GENERAL FUND



Wildlife resource center (Continued)


Dues, subscriptions, and memberships 469$ 369$


Waste disposal 2,200 908

IT support services 1,968 803

Building maintenance 360 204

Vehicle maintenance 250 -


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



Total wildlife resources 222,791 212,057

Planning and development

Personnel

Salaries 193,177 194,547










IT support services 656 1,757


Janitorial 690 439

Waste disposal 375 -


Vehicle repair 500 198



Original and

Final

Budget Actual


GENERAL FUND



Planning and development (Continued)

Personnel (Continued)

Commodities

Planning supplies 18,252$ 14,720$

Uniforms 300 76




Total planning and development 295,936 290,706

Communications

Personnel

Salaries 149,917 149,998






Meetings 200 123




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


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


Vehicle maintenance - 42

IT support services 656 2,530




Original and

Final

Budget Actual


GENERAL FUND



Communications (Continued)

Commodities

A/V supplies 4,473$ 4,186$

Office supplies 4,050 979

Uniforms 300 25


Gas, grease, and oil - 2


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








IT support services 656 414



Commodities

Supplies 5,400 5,255


Display 2,100 799

Field supplies 1,200 1,353


Total research field station 145,067 140,064


Original and

Final

Budget Actual


GENERAL FUND



Lost Valley visitor center

Personnel

Salaries 46,939$ 48,655$

Seasonal 9,935 10,386









Utilities 29,931 40,451


Road maintenance 2,600 4,103

Septic system 1,000 -


Equipment maintenance 2,150 645


Commodities

Office supplies 250 414


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 Lost Valley visitor center 171,805 211,010

(This schedule is continued on the following page.)- 48 -

Original and

Final

Budget Actual


GENERAL FUND



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


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


Communication

Office furniture and equipment 350 -

Lost Valley visitor center


Total capital outlay 985,337 850,240

TOTAL EXPENDITURES 9,602,032$ 9,112,523$


Original and

Final

Budget Actual

REVENUES

Property taxes, net 11,778,104$ 11,758,839$


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


OVER EXPENDITURES (486) (18,753)


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$





DEBT SERVICE FUND


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


Capital outlay 275,000 17,250



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)







CAPITAL PROJECTS FUND


Original and

Final

Budget Actual

REVENUES

Intergovernmental 212,700$ 322,693$


Donations - 139,084

Miscellaneous - 4,061


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


OVER EXPENDITURES (1,138,234) (174,967)


Transfers in 500,000 -

Sale of capital assets - -

Total other financing sources (uses) 500,000 -

NET CHANGE IN FUND BALANCE (638,234)$ (174,967)







DEDICATED PROJECTS FUND


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


None - - -

Total deferred outflows of resources - - -


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


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



COMBINING BALANCE SHEET

March 31, 2013

Special Revenue


ASSETS AND DEFERRED



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$


COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES


Special Revenue



Original and

Final

Budget Actual

REVENUES

Property taxes, net 232,568$ 228,001$

Investment income - 2


EXPENDITURES

General government


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 -


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$





INSURANCE FUND


Original and

Final

Budget Actual

REVENUES

Mitigation 686,000$ 359,920$

Intergovernmental - 103,134


Donations 47,735 920


EXPENDITURES


Personnel

Salaries 156,415 127,083





Unemployment insurance 2,070 1,674

HSA Contribution - 125



Total expenditures 724,663 396,122

NET CHANGE IN FUND BALANCE 10,419$ 69,219






NATURAL RESOURCES FUND



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.


NET POSITION BY COMPONENT

Last Ten Fiscal Years

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


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 -


CHANGE IN NET POSITION


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EXPENSES


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


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


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$ -$ -$ -$ -$ -$ -$


*Charges for services are presented by function beginning March 31, 2011.

- 59 -


FUND BALANCES OF GOVERNMENTAL FUNDS


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.


- 60 -


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


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


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


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


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


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%


- 62 -


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 -


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 -


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



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


- 66 -


RATIOS OF OUTSTANDING DEBT BY TYPE


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 -


RATIOS OF GENERAL BONDED DEBT OUTSTANDING


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 -


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 -


LEGAL DEBT MARGIN


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)$


County Clerk's Office

- 70 -


DEMOGRAPHIC AND ECONOMIC STATISTICS


(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 -


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%



- 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


- 73 -


OPERATING INDICATORS BY FUNCTION


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 -


CAPITAL ASSET STATISTICS BY FUNCTION


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


DEBT SERVICE EXTENSION BASE

UNAUDITED

March 31, 2013

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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


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


None - - - - - - - - - -

Total deferred outflows of resources - - - - - - - - - -


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$


ASSETS AND DEFERRED


BALANCE SHEETS - GENERAL FUND

UNAUDITED


- 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


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


- 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


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 - - - - - - - - -


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


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GENERAL FUND

UNAUDITED


- 80 -

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


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$

- 81 -

Documents

Comprehensive Annual Financial · PDF fileINTRODUCTORY SECTION ... Schedule of Revenues, ... We are pleased to submit the Comprehensive Annual Financial Report of the McHenry County